Results
Total revenue amounted to €598 million, down by €5 million (0.8%) compared with 2018. Total revenue, excluding the items offset in costs16, amount to €506 million, essentially in line with 2018 (-€1 million -0.2%).
Regulated revenue (€595 million) mainly comprised fees for the natural gas storage service (€508 million) and the fees charged back relating to the natural gas transportation service provided by Snam Rete Gas S.p.A. (€83 million)17, plus output-based incentives connected to the offering of new storage services (€2 million)18. Regulated revenue, excluding components that are offset in costs, amounted to €503 million, which was unchanged when compared to 2018. The increase in the WAAC, which increased from 6.5% in 2018 to 6.7% in 2019, was absorbed by the tariff updating mechanisms.
With reference to the considerations for the storage service, note that 2019 featured an increase in the prices of auctions which meant that the amounts billed to users made it possible to reach the level of revenue recognised without recourse to the compensation mechanisms provided by the rate regulations.
Unregulated revenues equal to €3 million (€4 million in 2018) mainly refer to income derived from insurance reimbursements.
Operating profit in 2018 stood at €337 million, an increase of €2 million or 0.6% compared with 2018, thanks to the stability of revenues and the reduction in operating costs (+€7 million excluding the components that have a matching entry in revenues), partly offset by greater depreciation and amortisation (-€5 million or 5.0%) due to the new infrastructures coming into operation, specifically the Bordolano site. With reference to operating costs, the reduction is mainly due to the lower costs for CO2 emission rights, bought on the market to hedge the requirements for 2019, as well as lower costs for redundancy packages.
16 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.
17 Resolution 64/2017/R/gas of 16 February 2017 established that, from 1 April 2017, almost all expenses relating to the natural gas transportation service should no longer be charged to users of the storage service, but settled directly by the CSEA.
18 Through Resolution 614/2018/R/gas of 30 November 2018, with reference to the 2018-2019 thermal year, the Authority introduced an incentive system for Stogit to offer additional storage capacity compared with the capacity planned under the scope of the “basic” storage services. The same mechanism was also confirmed for the 2019-2020 thermal year through the subsequent resolution 153/2019/R/gas of 16 April 2019.