Snam Rete Gas and financial markets

In 2010 contrasting performance was reported in various European stock markets in a volatile environment. Although certain countries showed signs of growth and a positive future outlook, in others, in particular Greece, Ireland, Portugal and Spain, uncertainties over the ability to pay their government debt weighed heavily. This had inevitable repercussions on stock index movements.

In particular, fears over the sovereign debt situation surfaced primarily at the beginning of the year, while in the second half of 2010, several prices moved upward leading to the following annual performance in major European stock exchanges: FTSE 100 of London +9%, DAX of Frankfurt +16.1%, CAC 40 of Paris -3.3%, IBEX of Madrid -17.4%. The Eurostoxx 50 European index remained unchanged from the end of last year.

The Italian market also felt the effects of the uncertain climate in international financial markets. The perception of country risk by the financial community prevented domestic indices from entering positive territory. The FTSE MIB, which includes the largest 40 companies in terms of capitalisation which are listed in the Italian market, dropped 13.2%, while the FTSE Italia All-Share index, which includes all listed companies, was down 11.5%. It should be noted that the performance of domestic indices was also affected by their sector composition, characterised by a preponderance of companies in the banking, insurance and utility sectors, which were on a downward trend for the year.

Snam Rete Gas stock, which is included in the FTSE MIB Italian index, and also in leading international indices (Stoxx Europe, S&P Europe and MSCI Europe) ended 2010 at an official price of €3.73, up 7.8% over the same figure for the previous year. This performance was achieved in an environment of overall growth for stocks of “regulated utility” companies, and more specifically, for those companies which, due to a stable and transparent regulatory environment, provide long-term visibility of their results and cash flow. These stocks set themselves apart from the overall European utilities sector, which underperformed the market (-8.8% in the Stoxx Europe 600 Utilities index) due mainly to the so-called overcapacity phenomenon which, together with weak demand for energy, had a negative impact on companies with the greatest exposure to energy prices.

In 2010 approximately 2.9 billion shares of Snam Rete Gas were traded on the electronic stock market of Borsa Italiana, with rising daily trades averaging about 11.5 million shares (compared to 10.1 million in 2009).

Shareholder structure

At 31 December 2010, the fully subscribed and paid-up share capital of Snam Rete Gas S.p.A. totalled €3,570,832,994.00 and consisted of 3,570,832,994 ordinary shares with a nominal value of €1 (3,570,768,494 shares with the same nominal value at 31 December 2009). The increase of €64,500 over 31 December 2009 was due to the issue of 64,500 shares with a nominal value of €1. These shares were subscribed by managers entitled to participate in the 2003 stock option plans.

At year end, based on entries in the Shareholders’ Register and other information gathered, Eni S.p.A. held 52.54% of share capital, Snam Rete Gas S.p.A. held 5.44% in the form of treasury shares, and the remaining 42.02% was in the hands of other shareholders.

Snam Rete Gas on the Stock Market

Comparison of prices of Snam Rete Gas, FTSE MIB and Euro Stoxx 600 Utilities (31 December 2009 - 31 December 2010)
Comparison of prices of Snam Rete Gas, FTSE MIB and Euro Stoxx 600 Utilities (31 December 2009 - 31 December 2010)

Source: Snam Rete Gas calculations using BLOOMBERG data.

Shareholder structure of Snam Rete Gas by type of investor and geographic area

Shareholder structure of Snam Rete Gas by type of investor and geographic area pie chart
52.54% ENI

12.28% Institutional Investors Continental Europe

9.79% Retail investors

7.36% Institutional Investors North America

5.44% Treasury Shares

4.56% Institutional Investors UK & Ireland

4.14% Institutional Investors Italy

2.29% Institutional Investors – Rest of the World

1.60% Bank of Italy
Key indices which include Snam Rete Gas stock Sustainability indices
Stoxx Europe 600
Stoxx Europe 600 Utilities
S&P Europe
DJSI World (as of 2009)
FTSE4Good Europe (as of 2002)
FTSE4Good Global (as of 2002)
ECPI Ethical Europe (as of 2009)
ECPI Ethical Global (as of 2009)
ECPI Ethical EMU (as of 2009)