Header Background

Operating and financial results

Chapter entry image – Operating and financial results (Image)
Operating performance

 

Activities

Transportation

A total of 67.25 billion cubic metres of gas was injected into the transportation network, an increase of 5 billion (+8.0%) on 2014. This rise was due mainly to higher natural gas demand in Italy (+5.53 billion cubic metres compared with 2014; +8.9%), basically because of greater consumption in the thermoelectric (+16.8%) and residential and tertiary (+11.5%) sectors, offset, in part, by higher withdrawals from storage (-0.53 billion cubic metres).

Regasification

The LNG terminal at Panigaglia (SP) regasified 0.01 billion cubic metres in 2015, in line with the previous year. LNG regasification was carried out as part of the peak shaving service, which was terminated on 31 March 2015.

Storage

A total of 19.58 billion cubic metres was moved through the storage system in 2015, an increase of 3.88 billion cubic metres (+24.7%) on the previous year. This rise was due mainly to higher withdrawals (+2.17 billion cubic metres; +28.7%), arising from considerable use of reserves by system operators, and also to greater injections to replenish reserves (+1.71 billion cubic metres; +21.0%).

Distribution

As at 31 December 2015, Snam had a gas distribution concession in 1,472 municipalities (compared with 1,437 a year earlier), of which 1,401 were operational. The number of active meters at end-user (households, businesses, etc.) redelivery points increased by 1.8% from 6.408 million at 31 December 2014 to 6.526 million.

Financial results*

Despite growing in 2015, gas demand in Italy remained low at 67.4 billion cubic metres. In spite of this, Snam managed to achieve pleasing results: adjusted EBIT was up 0.9% on 2014 to € 2 billion, while adjusted net profit increased by 12.2% year on year to € 1.2 billion. The improved performance was down to better financial management, a greater contribution from subsidiaries and associates and lower taxes brought about by the elimination of the additional IRES charge. The operating cash flows of € 2.1 billion – a five-year high – fully covered € 1.3 billion of technical and financial investments and enabled us to reward Snam shareholders with a dividend of € 0.9 billion.

Based on these results, the Board of Directors intends to put before the Shareholders’ Meeting a dividend of € 0.25 per share, which still represents an attractive return in what are tougher times than we have seen in previous years.

* Please see the Annual Report for more details.

to pagetop