Snam ended 2013 with a reported net profit of 917 million euro (+17,7%) and an adjusted net profit down by 5,8% to 934 million. Total revenues fell by 2,5% to 3,529 billion, EBITDA fell by 0,5% to 2,8 billion, EBIT fell by 3,6% to 2,03 billion. Cash flow from operating activities rose 76,7% to $1,7 billion. One hour after the opening, the Snam share gained 0,2% in Piazza Affari.
The board of directors which approved the results also resolved to propose to the shareholders' meeting the distribution of a dividend of €0,25 per share, of which €0,10 already distributed in October 2013 as an interim dividend and €0,15 as a balance , to be paid starting from 22 May 2014.
“The solidity of operational management and the efficiency of financial management – commented Carlo Malacarne, CEO of Snam – allowed us to obtain significant results in 2013, despite the unfavorable economic situation and the approximately 9% drop in volumes transported. During 2013 we continued with our investment programs reaching an overall level of 1,9 billion. In Italy, technical investments amounted to approximately 1,3 billion, while approximately 600 million were finalized for the acquisition of the stake in Tigf in France, an important step in pursuing our development strategy abroad. The needs for growth were substantially covered by the cash flow generated by operating activities, with net debt at the end of 2013 of around 13,3 billion".
With reference to the business sectors, the positive performances achieved by the transportation business sectors (+93 million; +8,2%), despite the reduction in gas demand in Italy, and natural gas storage (+48 million; +17,8 .181%), were absorbed by the decline recorded by the distribution sector (-26 million; -322%). The increase in reported net income is essentially due to the reduction in net financial expenses (+97 million), partly offset by higher income taxes (-XNUMX million) following the increase in pre-tax profit.
The reduction in financial expenses reflects the recognition in the third quarter of 2012 of expenses associated with the early termination of Interest Rate Swap hedging contracts outstanding between Snam and its Subsidiaries and Eni (€213 million net of the related tax effect) , to implement what is contractually regulated in the event of loss of control by Eni over Snam.
