Analysis of income statement items

Financial income and charges booked for 2018 (737 million euro) increased by 28 million euro, equal to 3.9%, in respect to the previous financial year.

Income from equity investments (775 million euro) consist mainly of the dividends distributed by the subsidiaries Snam Rete S.p.A. (479 million euro), and Stogit S.p.A. (157 million euro), by the joint venture Trans Austria Gasleitung GmbH - TAG (73 million euro), Terēga Holding (19 million euro) and the associate Italgas S.p.A. (23 million euro)³⁵.

The asset interest and other financial revenue (213 million euro) essentially concern: (i) interest income deriving from infra-group loans granted by Snam S.p.A. to the subsidiaries Snam Rete Gas S.p.A. and Stogit S.p.A. (180 million euro in total); (ii) the financial revenue deriving from the recharge to the companies Snam Rete Gas S.p.A. and Stogit S.p.A. of the charges connected to the buyback operation put into effect by Snam in the month of December 2018 (25 million euro in total); (iii) the proceeds connected with the shareholders’ loan granted to TAP (8 million euro).

The Liability Interest and other financial expenses (249 million euro) principally refer: (i) to the expenses connected to the bond buyback operation (47 million euro), equal to the difference between the reacquisition price for the bonds on the market and the relative value to the depreciated cost; (ii) to expenses on bond loans³⁶ (185 million euro) and on loans issued by Banks and other Financial Institutions (17 million euro).

Income from services provided (213 million euro) mainly refers to charge-backs for services provided by Snam to subsidiaries and other investees (totalling 192 million euro). The services provided by Snam S.p.A. are regulated by means of service contracts covering the following areas: ICT, Personnel and Organisation, Planning and Control, Administration, Tax and Corporate Strategy, General and Property Services, Security, Legal and Corporate Affairs, Compliance and ERM, HSEQ, Institutional Relations and Communication, Internal Audit, Commercial, Finance, Technical, Regulation and Procurement. The services also include revenues on projects of the Global Solution Business Unit (16 million euro).

Other income (14 million euro) essentially refers to income from leasing and maintaining fibre-optic telecommunications cables for third parties (13 million euro).

Costs for non-financial services and other costs consist of operating costs (138 million euro) and amortisation/depreciation (8 million euro). The 27 million euro reduction is mainly due to the lesser costs for IT services charged back to the Italgas Group, regulated by means of various contracts stipulated as at 31 December 2017 and the performance of the provision for doubtful debt.

Personnel costs total 94 million euro and record a rise on the same period of last year (13 million euro), mainly due to the greater expenses for incentive to take redundancy and Isopensione (totalling 11 million euro).

The number of employees as at 31 December 2018 (838 people), basically in line with 31 December 2017, is analysed below according to professional status.

Income tax

Income tax amounted to 3 million euro and is substantially in line with the same period of the previous year.