Snam and the financial markets

Snam share performance

The Snam stock ended 2019 at an official price of €4.6860, up 22.68% compared with the price of €3.8198 recorded at the end of the previous year.

The average share value during the year was €4.4711, reaching a maximum of €4.8200 in mid June.

The stock continued to benefit from both growth prospects in all the economic and financial indicators presented to the market in the strategic plan at the end of 2018 and confirmed in the 2019 plan and the greater visibility and clarity of the regulatory framework. It recorded a slight fall at the end of June at the same time as the payment of the dividend balance and at the end of the year as the result of a slight rise in market rates.

The Company has continued its usual investing activities with the aim of improving the competitiveness and security of gas supplies, which is central to the energy transition to a low-emissions economy, and the country’s commitment to guaranteeing profitable growth to shareholders.

Snam share performance vs FTSE MIB and STOXX Europe 600 Utilities (1 January 2019 - 31 December 2019)

Snam share performance vs FTSE MIB and STOXX Europe 600 Utilities (graphic)
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Snam shareholding at 31 December 2019

Consolidating company


% ownership


CDP S.p.A. owns 59.10% of CDP Reti S.p.A.

Snam S.p.A.

CDP Reti S.p.A. (a)



Romano Minozzi



Snam S.p.A.



Other shareholders





Cassa Depositi e Prestiti (CDP), a financial institution controlled by the Ministry of Economy and Finance, whose mission is to promote the growth and development of the Italian economic and industrial system, is a major shareholder in Snam S.p.A.

At the end of 2019, based on entries in the Shareholders’ Register and other information gathered, CDP Reti S.p.A. held 31.04% of share capital, Snam S.p.A. held 3.02% in the form of treasury shares, and the remaining 65.94% was in the hands of other shareholders.

The share capital at 31 December 2019 was composed of 3,394,840,916 shares with no par value (3,469,038,579 shares at 31 December 2018), following a total value of €2,735,670,475.56 (the same as at 31 December 2018).

As at 31 December 2019, Snam held 102,412,920 treasury shares (168,197,663 as at 31 December 2018), equal to 3.02% of its share capital, with a book value of about €388 million (4.85% at 31 December 2018 for a book value of around €626 million). More information with regard to the changes in treasury shares in the portfolio in 2019 can be found in the chapter “Other information - Treasury shares” of this Report.

Composition of Snam shareholders

Composition of Snam shareholders (pie chart)

Snam ownership structure by geographic area

Snam ownership structure by geographic area (pie chart)

Relations with the financial community and investor relations policy

Snam believes that maintaining constant relations with investors and the entire financial community is of strategic importance for its reputation. In this respect, it endeavours to disseminate comprehensive and timely information, capable of effectively representing the business’s strategy and performance, particularly enhancing the dynamics that ensure the creation of value over time.

2019 Engagement Activity

In addition to the normal activities in presenting the Strategic Plan and conference calls upon the publication of the Company’s results (annual, half-year and quarterly) during 2019, the following were carried out:

  • 11 roadshows and 6 reverse roadshows to meet shareholders and institutional investors in the major financial centres of Europe and North America;
  • 15 industry conferences allowing investors specialising in the utilities and infrastructure sectors to meet senior management;
  • meetings with more than 210 institutional investors during the year, corresponding to more than 40% of shares owned by active managers.

Inclusion of Snam stock in sustainability indices and ESG recognition

The number of investors who also include intangible elements in their investment decisions, such as environmental, social and governance issues, is increasing significantly year on year. With it the disclosure requirement of companies is therefore also increasing with them called upon to make increasingly clearer and more complete financial data and information available to their stakeholders so they can make their investment decisions. In 2019 too, the Snam stock was included in the main international SRI stock exchange indices, an essential tool in terms of transparency towards the market and comparability with peers. This result increases the visibility of the company with regard to investors, and the entire financial market.

The overall share of Snam’s institutional investors that include Corporate Social Responsibility criteria in their investment decisions stood at 13.3% of all institutional investors at the end of 2019.

ESG indices and ratings

Snam's presence in sustainability indices

For the eleventh year in a row, Snam’s stock is listed in the Dow Jones Sustainability World Index, the world’s most important stock market index assessing corporate social responsibility.

Snam’s is once again present in the FTSE4Good, where it has been listed since 2002, an index created by the FTSE Group to encourage investment in companies that meet globally recognised social responsibility standards and is an important point of reference to establish benchmarks and ethical portfolios.

Snam listing is confirmed in the Ethibel Sustainability Index (ESI) Excellence Europe and in the Ethibel Sustainability Index (ESI) Excellence Global. Also reconfirmed in the Ethibel PIONEER and in the Ethibel EXCELLENCE Investment Registers: the Forum Ethibel decision indicates that the company can be characterised as an industry leader in terms of CSR.

Snam’s listing has been confirmed for the fifth year running in the two sustainability indexes MSCI ACWI SRI Index and MSCI ACWI ESG Leaders, by MSCI, an international leader providing IT tools to support the investment decisions of global investors. The MSCI Global Sustainability indices includes companies having high sustainability ratings in their affiliated sectors.

For the tenth consecutive year Snam stock came to form part of the STOXX Global ESG Leaders Indices, a group of indices based on a transparent process of selection of the performance, in terms of sustainability, of 1,800 companies listed worldwide.

Snam is included in five of the main ECPI sustainability indexes. Snam’s inclusion in the family of ECPI indices dates back to 2008. The ECPI methodology consists in screening based on testing more than 100 ESG (Environmental, Social and Governance) indicators

Snam is confirmed to be included in 2019 as well in the (Europe, Eurozone, World) NYSE Euronext Vigeo 120 indices, managed by Vigeo, a leading company on a European level in rating companies with regard to CSR issues.

Snam was also listed, in 2019, for the fifth year running, in the United Nations Global Compact 100 index (GC 100), developed by the United Nations Global Compact with the research firm Sustainalytics, which includes the 100 companies that have distinguished themselves at the global level both for attention to sustainability issues and to financial performance, and that adhere to the ten fundamental principles of the United Nations on the human rights, labour, environment and anticorruption issues.

ESG Rating

It was included for the seventh consecutive year among the highest scorers of CDP, a non-profit organisation which is one of the most important internationally for climate change, and was also included on the A List.

Snam joined the CDP supply chain programme for the first time, the CDP programme aimed at the involvement of its supply chain in the climate change questionnaire. Snam got a score of A-, demonstrating the commitment of its suppliers in engagement activities involving issues related to the reduction of emissions and the development of sustainable strategies.

In 2018, Snam was confirmed at “PRIME” level (with rating B-) by Oekom research, a leading international agency rating socially responsible investments, which operates on behalf of institutional investors and financial services companies.

Snam was also confirmed again in 2019 in the Sustainalytics index, a leading ratings agency that evaluates companies from an ESG perspective, which the company has been part of since 2013.

Debt management and credit rating

Breakdown by duration (%)

Debt management – Breakdown by maturity (pie chart)

Breakdown by rate (%)

Debt management – Breakdown by rate (pie chart)

Snam’s goal is to achieve a debt structure consistent with business requirements in terms of loan term and interest rate exposure.

The Group’s net financial position at 31 December 2019 was €11,923 million, the result of a gross financial debt of €14,774 million and cash and cash equivalents of €2,851 million.

With reference to the capital market, in February 2019 Snam concluded the issue of its first Climate Action Bond for a sum of €500 million, with an annual coupon of 1.25% maturing on 28 August 2025. In June 2019 Snam issued a Private Placement for a nominal amount of €250 million, at a fixed rate maturing on 7 January 2030 with a coupon of 1.625%. In September Snam issued a dual tranche bond for €1.1 billion maturing, respectively, in around 5 year and 15 years (with the longest maturity ever issued by Snam to date), a coupon of 0% (the third zero-coupon issued by Snam) and 1% equal to €500 million and €600 million. In December 2019, Snam successfully completed a buyback on the bond market of bonds with a total nominal value of around €597 million, with an average coupon of approximately 1.3% and a remaining maturity of approximately 3.8 years. The buyback price, including the commission paid to the intermediaries and the interest accrued (€7 million), of €633 million in total, was partly financed through a €200 million reopening transaction of the bond issue at around 5 years at a fixed rate in September, with the same maturity and coupon as the original issue.

With reference to the banking market, in July Snam extended the duration of the bilateral banking lines for a total of €700 million, at the same time improving the margins.

At 31 December 2019, Snam has unused committed long-term credit facilities for an amount of approximately €3.2 billion. During the year, as part of the process to optimise the financial structure of Group, their duration was extended without an increase in margins. In April, as a result of the achievement of the targets defined in the KPIs from an ESG perspective (Environment, Social, Governance) defined in the contractual conditions of the sustainable loan, Snam achieved a reduction in margins.

Following the renegotiation, the two syndicated lines, amounting to €2.0 billion and €1.2 billion, they will expire in July 2023 and December 2024, respectively, with an extension of one year compared with the previous term. Moreover, on that same date, Snam had an active Euro Medium Term Notes (EMTN) programme with a total nominal maximum value of €11 billion8, of which it has used approximately €8.7 billion9.

Snam also has a Euro Commercial Paper Programme (ECP), for a maximum total nominal value of €2 billion. At 31 December 2019 the entire amount of the ECP programme was used as part of the company’s short-/medium-term funding strategy.

These transactions on both the banking and bond market made it possible to optimise medium- and long-term debt maturities by extending their average term and creating conditions for a reduction in average borrowing costs in 2019.

Snam also has a Euro Commercial Paper Programme (ECP), for a maximum total nominal value of €2 billion. At 31 December 2019 the entire amount of the ECP programme was used as part of the company’s short-/medium-term funding strategy.

These transactions on both the banking and bond market made it possible to optimise medium- and long-term debt maturities by extending their average term and creating conditions for a reduction in average borrowing costs in 2019.

At the same time, the communication activity continued with the rating agencies Moody’s, Fitch and Standard & Poor’s, with the maintenance of the creditworthiness rating at the solid investment grade level by Moody’s (Baa2 with a stable outlook), Fitch (BBB + with stable outlook), and Standard & Poor’s (BBB + with a negative outlook).

In addition, when the Commercial Paper programme was renewed by Snam, the agencies confirmed the short-term rating of the company at P-2 for Moody’s, A-2 for S&P and F2 for Fitch.

Snam’s long-term rating by Moody’s, Fitch and Standard & Poor’s is a notch higher than that of Italian sovereign debt.

Moody's, Standard & Poor's and FitchRatings (graphic)

8 On 2 October 2019, the Board of Directors of Snam resolved to renew the EMTN programme increasing the maximum total value from €10 billion to €11 billion. The renewal of the programme allows for the issue, by 2 October 2020, of bonds worth up to a maximum of around €1.9 billion at the resolution date, to be placed with institutional investors operating mainly in Europe.
9 It should be noted that the convertible bond issued in March 2017, for a value of €400 million, is not part of the EMTN programme.

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