Results
Total revenue amounted to €2,168 million, up by €50 million, or 2.4%, compared with 2018 (€ 2,118 million). Net of components offset in costs10, total revenue amounted to €2,031 million, up by €47 million, or 2.4%, compared with the previous year.
Revenue from regulated activities (€2,106 million, largely related to fees for the natural gas transportation service (€2,087 million) and incentives recognised to the Balancing Manager (€16 million) as set forth in Resolution 554/2016/R/gas. Regulated revenue, net of components that are offset in costs, amounted to € 1,969 million, up by €62 million, or 3.3%, compared with 2018. The increase is essentially due to greater transport revenues (+€61 million) main attributable to the tariff updating mechanisms (+€69 million) which refer, specifically, to the increase in the WAAC, which rose from 5.4% in 2018 to 5.7% in 2019.
Revenue from non-regulated activities (€62 million) fell by €15 million or 19.5% compared with the 2018, due mainly to few charge backs for technical services provided to other group companies (-€17 million). The reduction corresponds to the lower costs incurred for the provision of related services, with no impact on the operating profit.
Adjusted EBIT amounted to €1,122 million, up by €41 million, or 3.8% compared with the adjusted EBIT for 2018 (€1,081 million). The greater revenue from regulated activities (+€62 million net of components offset in costs) together with the reduction in operating costs (+€32 million compared with the adjusted operating costs in 2018, net of components offset in revenues and service costs subject to recharging within the group), were partly absorbed by the greater depreciation and amortisation (-€30 million) due to new infrastructures coming into service and the greater impairment of works in progress relating to projects in previous years (-€23 million).
Specifically, the reduction in operating costs is mainly due to the lower costs related to the use of gas (+€20 million), also thanks to the recognition, in 2019, by the regulatory authority, of several expenses relating to 201811, as well as lower costs for services recharged by the subsidiary Snam S.p.A., also thanks to the management optimisation actions that were implemented for the IT infrastructures.
10 The main revenue items offset in costs relate to modulation and interconnection.
11 The costs associated with the use of gas are reported excluding the amounts recognised by the Authority following the greater costs for the purchase of gas for the years 2018 and 2019. Taking into account the calculation mechanism used by the Authority for recognising the costs relating to 2018, in July 2019, the company quantified the amount recognised for 2019.