25 Earnings per share

Basic earnings per share, equal to €0.147 (€0.150 per share in the first half of 2016), are calculated by dividing the net profit attributable to Snam (€504 million; €526 million in the first half of 2016) by the weighted average number of Snam shares outstanding during the period, excluding treasury shares.

Diluted earnings per share are calculated by dividing net profit by the weighted average number of outstanding shares during the period, excluding treasury shares, increased by the number of shares which could potentially be added to those outstanding. With reference to the first half of 2017, diluted earnings per share take into consideration the potential effects resulting from the granting of treasury shares in the portfolio following the issuing of the convertible bond loan in Snam ordinary shares.

The weighted average number of outstanding shares used to calculate diluted earnings per share is 3,507,423,882 and 3,499,511,044 respectively for the first half of 2017 and the first half of 2016.

The reconciliation of the weighted average number of outstanding shares used to determine basic and diluted earnings per share is set out below: