Financial results

Natural gas distribution revenue amounted to €1,271 million in 2013, a decrease of €127 million, equal to 9.1%, compared with 2012. Excluding revenue from the application of IFRIC 12, distribution revenue decreased by €121 million, or 11.3%. The reduction was due to the effects of the recognition in 2012 of adjustments relating to the 2009-2011 period (€143 million) pursuant to Resolutions 315/2012/R/gas and 450/2012/R/gas of the Electricity and Gas Authority²¹, which amended some of the tariff determination criteria for the third regulatory period (2009-2012). These effects were partly offset by higher revenue from tariff updating mechanisms (+€22 million).

Adjusted net profit in 2013, which excludes special items²², amounted to €516 million, down €110 million, or 17.6%, compared with 2012.

The reduction is mainly due to: (i) lower revenue for the natural gas transmission service (-€121 million); (ii) the reduction in other revenue and income (-€35 million), due mainly to lower capital gains on natural gas distribution concessions; and (iii) higher amortisation, depreciation and impairment losses (-€27 million) due to both the entry into service of new infrastructure and the effects (-€15 million) of the costs incurred in the awarding of the concession for Rome, where Italgas no longer owns assets but holds a concession to use them. These costs, net of the reimbursement as determined by the agreement with the Municipality of Rome, are amortised over the duration of the concession (12 years).

These factors were partly offset by the reduction in operating costs (+€65 million) attributable to provisions for risks and charges, which were considerably lower because of the provisions for environmental expenses set aside in the first nine months of 2012 (€71 million). These expenses are not recorded for the purposes of the consolidated financial statements, since they were paid as indemnification, net of tax effect, by Eni to Snam pursuant to agreements entered into between the parties upon completion of the acquisition of Italgas.