Results
Total revenue amounted to 603 million euro, an increase of 2 million euro, or 0.3%, compared with FY 2017. Total revenue net of items offset in costs15 was 507 million euro, representing a decrease of 4 million euro or 0.8% compared with FY 2017.
Regulated revenue (599 million euro) mainly comprised fees for the natural gas storage service (510 million euro) and the fees charged back to users relating to the natural gas transmission service provided by Snam Rete Gas S.p.A. (87 million euro)16. Regulated revenue, net of components offset in costs, total 503 million euro, down 5 million euro or 1.0% on FY 2017. This is mainly due to the tariff update mechanisms and the lesser recognition by the Authority of contribution costs for compensation to Regions pursuant to Italian Law no. 244 of 24 December 200717 (-2 million euro).
The non-regulated revenues equal to 4 million euro (3 million euro in 2017) mainly refer to income derived from insurance reimbursements.
Operating profit achieved in 2017 amounted to 335 million euro, down by 4 million euro or 1.2%, compared to FY 2017. The reduction can be attributed to lower storage revenue (-3 million euro, net of components offset in costs) and higher amortisation, depreciation and impairment (-3 million euro), due to the entry into service of new infrastructures, referring, in particular, to the Bordolano site.
15 These components refer mainly to revenue from the redebiting to storage users of charges relating to the natural gas transportation service provided by Snam Rete Gas S.p.A. For the purposes of the consolidated financial statements, this revenue is eliminated in relation to Stogit S.p.A., together with transportation costs, in order to represent the substance of the operation.
16 Resolution 64/2017/R/gas of 16 February 2017 established that almost all expenses relating to the natural gas transmission service, starting 01 April 2017, shall no longer be debited to storage service users, but rather liquidated directly by the CSEA.
17 With Resolution 855/2017/R/ gas published on 15 December 2017, the Regulatory Authority has established that these costs are allocated to the storage company by applying the revenue restriction (the so-called SG Factor), thus ensuring neutrality.