Grow drivers
Main guidelines for each business investment plan
Transport and regasification:
To assure the development of the gas transportation network to meet rising demand and to improve flexibility and security of the gas system in order to:
- increase supply sources diversification;
- allow the transit of gas to foreign countries.
The planned investments will allow the company to increase the transportation capacity by extending the transport network by around 1,300 km, which is an approximate 4% increase on the 2009 year end network of more than 31,000 km, and by increasing the installed power of the compression stations by around 20% compared to 2009 (857 MW).
Storage:
- improve the overall flexibility and security of the storage system through an increase in both the modulation and peak capacity;
- support the liquidity of the gas system in Italy.
The investments in the storage business are expected to deliver a 35% increase in the modulation capacity in the period (from 8.9 billion standard cubic meters in 2009 to around 12 billion standard cubic meters in 2013) and up to a 13% increase in the peak capacity.
Distribution:
- selective network development in order to optimise the portfolio of concessions with the aim of maximizing profitability;
- improve the quality of the gas distribution service.
Efficiency programme
Snam Rete Gas confirms the ongoing integration programme of Stogit and Italgas which will allow the Company to achieve estimated savings of 40 million euro in 2010 and 80 million euro annually by 2012 (calculated in real terms on the 2008 controllable fixed costs), on the basis of the current business composition. Through this programme, the Company has already achieved savings on controllable fixed costs of 27 million euro, in real terms, in 2009. The implementation of projects already selected and now under study should allow the Company to exploit additional savings in the years beyond 2012.
Solid financial structure
The capital structure remains solid and efficient in the medium to long term: Snam Rete Gas confirms its commitment to maintain an average Debt to RAB of around 50% in the 2010-2013 period.
The cash flow generated by the operating activities during the Plan period is expected to fully fund the dividend distribution as well as more than 50% of the significant capex programme.
Debt conditions are expected to remain competitive during the 2010-2013 period.
Shareholders Returns
The Shareholders Meeting approved for the FY2009 a dividend of €0.20 per share, of which €0.06 was distributed in October 2009 as an interim payment. The outstanding dividend of €0.14 per share will be paid from 27 May 2010, with an ex-dividend date of 24 May 2010.
Given the company’s forecast performance and financial position as well as the visibility of the regulatory framework in the coming years, Snam Rete Gas intends to pursue a dividend policy for the 2010-2012 period that foresees a 4% annual growth of the dividend per share, with 2009 as reference year.
