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|
(€ million) |
2010 |
2011 |
2012 |
Change |
% change | ||||||
| |||||||||||
|
3,475 |
3,539 |
3,730 |
191 |
5.4 | |||||||
|
Other revenue and income |
33 |
66 |
216 |
150 |
| ||||||
|
Total revenue |
3,508 |
3,605 |
3,946 |
341 |
9.5 | ||||||
|
Total revenue net of the effects of IFRIC 12 (*) |
3,159 |
3,245 |
3,621 |
376 |
11.6 | ||||||
|
Operating costs (**) |
(968) |
(993) |
(1,129) |
(136) |
13.7 | ||||||
|
Operating costs net of IFRIC 12 (*) (**) |
(619) |
(633) |
(804) |
(171) |
27.0 | ||||||
|
2,540 |
2,612 |
2,817 |
205 |
7.8 | |||||||
|
Amortisation, depreciation and impairment losses |
(678) |
(654) |
(706) |
(52) |
8.0 | ||||||
|
1,862 |
1,958 |
2,111 |
153 |
7.8 | |||||||
|
(271) |
(313) |
(794) |
(481) |
| |||||||
|
Net income from equity investments |
47 |
51 |
55 |
4 |
7.8 | ||||||
|
Profit before taxes |
1,638 |
1,696 |
1,372 |
(324) |
(19.1) | ||||||
|
Income taxes |
(532) |
(906) |
(593) |
313 |
(34.5) | ||||||
|
Net profit (***) |
1,106 |
790 |
779 |
(11) |
(1.4) | ||||||
|
Adjusted net profit (***) |
1,106 |
978 |
992 |
14 |
1.4 | ||||||
Net profit
Net profit totalled €779 million in 2012, down by €11 million, or 1.4%, compared with 2011. The reduction was caused by higher net financial expense (-€481 million), due essentially to the expense (-€335 million) resulting from the early extinguishment of hedging derivatives in place between Snam and its subsidiaries and eni, the effects of which were partly offset by lower income tax (+€313 million), due mainly to the reduction in profit before taxes and the recognition in 2011 of the tax charge (+€188 million) resulting from the one-off adjustment of deferred tax at 31 December 2010 following the application of the Robin Hood Tax, as well as the increase in EBIT (+€153 million).
Reconciliation of net profit with adjusted net profit
The management of Snam evaluates Group performance based on adjusted profit, obtained by excluding special items from reported profit.
Income entries are classified as special items, if material, when: (i) they result from non-recurring events or transactions or from events which do not occur frequently in the ordinary course of business; or (ii) they result from events or transactions which are not representative of the normal course of business.
The tax rate applied to the items excluded from the calculation of adjusted profit is determined on the basis of the nature of each revenue item subject to exclusion. Neither IFRS nor US GAAP makes provision for adjusted profit. Management believes that this measurement of performance allows the development of the business to be analysed, ensuring a better comparison of results.
The income entries classified as special items in 2012 concerned the financial expense arising from the early extinguishment of 12 IRS contracts in place with eni (-€335 million; -€213 million net of tax effect) on a notional total of €4.2 billion. The extinguishment serves to implement the contractual provisions set out in the event that eni loses control over Snam due to the early termination of the financial agreements in place between Snam and its subsidiaries and eni. For more information, please refer to the paragraph “Main events – Debt refinancing”.
The following table shows the reconciliation of reported net profit with adjusted net profit.
| Download XLS (18 kB) |
|
(€ million) |
2010 |
2011 |
2012 |
Change |
% change | ||
| |||||||
|
EBIT |
1,862 |
1,958 |
2,111 |
153 |
7.8 | ||
|
Net financial expense |
(271) |
(313) |
(794) |
(481) |
| ||
|
- of which special items |
|
|
(335) |
(335) |
| ||
|
Net income from equity investments |
47 |
51 |
55 |
4 |
7.8 | ||
|
Income taxes |
(532) |
(906) |
(593) |
313 |
(34.5) | ||
|
- of which special items |
|
(188) |
122 |
310 |
| ||
|
Reported net profit |
1,106 |
790 |
779 |
(11) |
(1.4) | ||
|
Excluding special items |
|
|
|
|
| ||
|
- financial expense from early extinguishment of derivatives (*) |
|
|
213 |
213 |
| ||
|
- one-off adjustment of deferred tax |
|
188 |
|
(188) |
(100.0) | ||
|
Adjusted net profit |
1,106 |
978 |
992 |
14 |
1.4 | ||
Adjusted net profit in 2012, which excludes special items, amounted to €992 million, an increase of €14 million, or 1.4%, compared with 2011. The increase is due to the rise in EBIT (+€153 million), which was partly offset by increased net financial expense (-€146 million), due mainly to costs connected to the debt refinancing, the rise in the average cost of debt and higher average debt for the period.
The reported tax rate was 43.2% (53.4% in 2011). This reduction was attributable essentially to the one-off adjustment of deferred tax at 31 December 2010 that was carried out in 2011 following the application of the Robin Hood Tax.
The adjusted tax rate, calculated as the ratio between taxes and profit before taxes, net of special items, was 41.9% (42.3% in 2011).
