Snam has published the results achieved in the July-September period of the current year.
they amounted to 862 million, down by 5,4% on an annual basis but higher than the 850 million estimated by analysts. It should be recalled that from 1 January 2016 lower remuneration rates have been in effect for regulated gas transport and distribution activities. The significant contraction in operating costs of over 12% compared to the third quarter of 2015 allowed the Snam group to generate a gross operating margin of 654 million euro (-3% y/y) in the period under review, substantially in line with the consensus. The Ebitda of distribution is growing (163 million, +5,8% y/y), Italgas' core business.
The increase in depreciation, amortization and write-downs determined a 6,7% drop on an annual basis in Ebit, equal to 429 million, slightly above the 425 million forecast by analysts. The significant improvement in financial management, with the decrease in net financial charges and the increase in net income from equity investments, then allowed the San Donato giant to close the third quarter with a net profit of 257 million, down 6,9% but above the 255 million indicated by the consensus.
The debt net financial position at September 30, 2016 fell to 14,02 billion, in line with estimates and lower than the 14,18 billion at the end of June.
Snam's CEO Marco Alverà commented on the results for the nine months as follows: “The results are in line with expectations and reflect the reduction in the WACC of the new regulatory period. A free cash flow of over 660 million euros, the solidity of the balance sheet and operational and financial efficiency have enabled us to make the investments envisaged in our Strategic Plan and to consolidate Snam's leadership in the European gas market, also thanks the agreement with OMV for the joint acquisition with Allianz of 49% of Gas Connect Austria. The separation of Italgas, which was successfully completed on schedule, will allow us to continue on our growth path thanks to greater financial flexibility".
Il title it is up in Piazza Affari at 10:23: +1,32% to 3,53 euros.
