Snam archive the first quarter with a Net income of 266 million euros, down by 18,2% compared to the same period last year. The new tariff regime for the remuneration of investments set by the Energy Authority weighs on the result.
I revenues amounted to 852 million euros (-8,3%) while their operating margin amounted to 643 million, down 10,3%, with an Ebit of 429 million euros (-15,9%) .
Snam explains that the reduction in turnover is linked to the lower regulated revenues (-52 million euros, equal to -6,1%), recorded in all the main business sectors, mainly due to the update of the rate of return on capital net invested capital (Wacc), as well as the decrease in non-regulated revenues (-17 million) essentially attributable to lower income from the sale of natural gas.
THEnet financial debt at March 31, 2016 it amounted to 13.543 million euros (13.779 million euros at December 31, 2015). “The positive net cash flow from operating activities (572 million euros) – reads the note – made it possible to fully finance the needs associated with technical investments for the period and to reduce the net financial debt by 236 million euros compared to 31 December 2015”.
In the first quarter of 2016 they were introduced into the national transport network 16,49 billion cubic meters of natural gas, an increase of 0,51 billion cubic meters, equal to 3,2%, compared to the first quarter of 2015. The increase is essentially attributable to the lower use of storage.
"In line with our expectations, the results for the first quarter of 2016 reflect the reduction in the WACC (the weighted average cost of capital, ed) defined by the new regulatory period", commented the CEO of Snam, Marco Alvera.
“The important generation of cash from operating activities – he added – fully covered the investments for the development of our infrastructures, also for the benefit of the integration of the European networks and the entire gas system”.
To the former CEO Carlo Malacarne it was granted a severance pay of 5,84 million euros. "Following the consensual termination of the employment relationship - reads the press release - Malacarne is recognized a gross 4,981 million in indemnity for the termination of the relationships and a gross 860 thousand euros for the commitments undertaken not to carry out activities in competition with Snam for one year ( which provide for the return of the amount received in the event of violation of the commitments)".
In addition, the note continues, "the rights accrued prior to termination under the long-term incentive plans are recognised, as well as ancillary commitments and severance pay pursuant to the law".
Finally, Snam's board of directors, in line with the provisions of the self-regulatory code, has appointed the members of the committees Control and risks and transactions with related parties, Remuneration and appointments and ordered the establishment of the Sustainability Committee, which performs proposal and advisory functions towards the board of directors on corporate social responsibility issues. The latter includes Sabrina Bruno (president), Lucia Morselli and Yunpeng He.
About an hour after opening, Snam stock on the Stock Exchange it dropped 0,28%, to 5,27 euros.
