The new corporate profile
The main changes to the structure of the Snam group at 31st December 2016 compared with 31st December 2015 involved the exit of Italgas S.p.A. and its subsidiaries.
Two businesses with distinct characteristics focusing on different markets
The separation of Italgas from Snam was completed on 7 November 2016 with the listing of the new Italgas company on the stock exchange: the activities relating to the gas urban distribution sector in Italy, in which Italgas and its subsidiaries and associates are operational, were therefore separated from those of the transportation, regasification and storage of gas in Italy and abroad.
The transaction was implemented for a mainly industrial purpose, starting from the consideration that the business profile of the gas urban distribution segment has essentially different characteristics from the other activities that Snam is involved in in terms of organisational operation, the competitive and regulatory contexts, and investment requirements.
Both companies can therefore focus on their own core business through clearly identified objectives that can be perceived by the market and an ideal operating and financial structure which best accommodates the respective strategic development opportunities, generating benefits for all stakeholders.
Specifically, Snam can concentrate its energies on the development of transportation, storage and regasification activities in Italy and abroad in order to maximise the value of the existing asset portfolio and offer new services aimed at satisfying a constantly evolving market. A strategy that will be pursued while maintaining a rigorous financial policy, as always, a solid budget structure and a low risk profile to ensure the profitable and sustainable growth that shareholders have come to enjoy over the course of time.
The reorganisation of the business
With the distribution business leaving the company’s scope, Snam undertook a reorganisation process to facilitate the development of the Company from a group to one company, in order to improve the oversight of the strategic plan guidelines and allow a more efficient and effective operational management also through simplifying the decision-making processes. In this context, management created a new organisational structure designed to facilitate interfunctional collaboration and capable of ensuring effective process management.
The above reorganisation breaks down into:
- the creation of three business units (BU) respectively focused on: development activities, the management of the Italian subsidiaries and the management of foreign investments. Specifically:
- Commercial, Regulation and Development BU: to ensure the management and coordination of the company’s development levers (including new businesses);
- Italian Assets BU: to ensure the management, coordination and development of company assets (transportation, storage and regasification) throughout Italy;
- Foreign BU: to ensure the consolidation of the Company’s position as a European market leader and to maximise the value of assets abroad;
- the redesigning of staff functions with a view to simplifying processes, efficiency and continuous improvement.