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Financial Highlights

  • The total revenue4 generated by Snam in the first half of 2014 amounted to €1,782 million, up by €7 million, or 0.4%, compared with the first half of 2013. This increase was due to higher revenue from non-regulated activities (+€14 million) relating mainly to storage activities. Net of components offset in costs, total revenue amounted to €1,715 million, up by €19 million, or 1.1%, compared with the first half of 2013.
    Regulated revenue (€1,681 million, net of components offset in costs) rose by €5 million, or 0.3%, compared with the first half of the previous year. The increase was due essentially to greater revenue from natural gas transportation (+€13 million; +1.4%) and storage activities (+€3 million; +1.4%), partly offset by the fall in revenue from natural gas distribution activities (-€9 million; -1.8%) resulting from a change in tariff criteria.
  • In the first half of 2014, Snam generated EBIT5 of €1,044 million, up by €24 million, or 2.4%, compared with the first half of 2013. Higher revenue (+€19 million), together with a reduction in operating costs (+€13 million), was partly offset by the increase in amortisation and depreciation for the period (-€8 million), attributable mainly to the entry into service of new infrastructure. The positive performances of the natural gas storage segment (+€25 million; +14.5%) and the distribution segment (+€5 million; +2.0%), were partly offset by the slight fall recorded by the transportation segment (-€2 million; -0.3%) and the regasification segment (-€2 million; -66.7%).
  • Net profit in the first half of 2014 amounted to €561 million, up by €99 million, or 21.4%, compared with the first half of 2013. The increase was due mainly to the reduction in net financial expense (+€58 million), due mainly to the decrease in the average cost of debt, due partly to measures implemented by Snam in order to improve the Group’s financial structure, and to the increase in EBIT (+€24 million). The increase in net profit was also partly attributable to higher net income from equity investments (+€14 million).
  • The net cash flow from operating activities (€647 million) allowed us to fully cover the financial requirements associated with net investments for the period (€543 million) and to generate a free cash flow of €104 million. Net financial debt of €13,730 million, after the payment to shareholders of the balance of the 2013 dividend of €507 million, increased by €404 million compared with 31 December 2013.
  • Technical investments for the first half of 2014 totalled €526 million (€490 million in the first half of 2013). Around 74% of these investments have returns above the basic rate.
  • Since the beginning of 2014, Snam shares have enjoyed a strong performance (+9.2%), closing the first half of the year with an official price of €4.41. A context of low interest rates, thanks partly to the recent monetary policies implemented by the ECB, together with expected improvements on the macroeconomic front, provided a stimulus for widespread growth in European stock markets in the first half of 2014; the Italian stock market (the FTSE MIB index) closed up 12.2%, while the European utilities sector (the Stoxx Europe Utilities index) climbed 15.4% over the period.
    After a phase of stable prices in the first few months of the year, following the significant growth recorded in late 2013, Snam shares benefited from both the positive response of the financial community to the Group’s 2014-2017 business plan and the current macroeconomic situation, which is characterised by low interest rates.

4 As of 1 January 2014 and purely for the purposes of the reclassified income statement, total revenue is shown net of revenue relating to building and upgrading distribution infrastructures recorded pursuant to IFRIC 12, which is recorded in equal measure alongside the relevant costs incurred (€130 and €140 million respectively in the first half of 2013 and of 2014), and stated as a direct reduction in the respective cost items. The corresponding amounts for the first half of 2013 were reclassified accordingly.

5 EBIT was analysed by isolating only the elements that determined a change therein. To this end, applying gas segment tariff regulations generates revenue components that are offset in costs.

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