Credit risk

Credit risk is the company’s exposure to potential losses arising from counterparties failing to fulfil their obligations. Default or delayed payment may have a negative impact on the financial balance and results of Snam.

Snam provides business services to a small number of operators in the gas sector, the largest of which by revenue is Eni S.p.A. The rules for client access to the services offered are established by the Electricity and Gas Authority and set out in the Network Codes. For each type of service, these documents explain the rules regulating the rights and obligations of the parties involved in providing said services and have contractual conditions which minimise the risk of non-compliance by the clients. In particular, the Codes require guarantees to be provided to partly cover obligations where the client does not possess a credit rating issued by one of the leading international agencies.

Snam provides its services essentially to counterparties considered solvent by the market. Ultimate parent Eni S.p.A. represents 28% of trade receivables. It cannot be ruled out, however, that Snam may incur liabilities and/or losses due to its customers’ failure to perform payment obligations. Although nearly all receivables are with a small number of clients, there is no credit concentration risk because these clients are so reliable.

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Snam’s presence in the territory

Infrastructure as
at 31 December 2011

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