Review of the year

The results of the 2009 financial year incorporate the effects associated with the acquisition, beginning on 30 June 2009, the date the operation was concluded. Therefore the income statement includes the effects of the consolidation of the acquired companies in the second half of the year.

The EBIT (Earnings Before Interests and Taxes) of € 1,274 million shows an increase of 24.7% over 2008 owing to the contribution of the natural gas distribution (€ 203 million) and storage (€ 92 million) sectors following the consolidation of Italgas and Stogit. These effects were partly compensated for by the lower operational performance of the transmission activity (€ -43 million), which was slightly reduced (-4.2%), despite the significant fall in gas demand (-8.0%) and the consequent reduction of the volumes of natural gas transmitted (-10.2%). The regasification activity showed an operating profit of € 5 million, unchanged from 2008.

The net profit amounts to € 732 million, an increase of € 202 million, or 38.1%, over 2008. The increase is due to the higher operating profit (€ +252 million), the recording of net income on holdings (€ +22 million), mainly relating to the company’s shares of the results for the period of associated companies evaluated with the net equity method, and the reduction in net financial charges (€ +9 million), which can basically be attributed to the marked reduction in market interest rates. These factors were partly absorbed by the increase in the tax on income (€ -81 million), which was due to the higher profit before tax.

Investments

Technical investments (€ 1,254 million) principally addressed the development and maintenance of the natural gas transmission and regasification infrastructures (€ 933 million). Investments in the natural gas distribution and storage sectors, made as from the acquisition completion date, were respectively € 172 million and € 149 million.

Net financial debt

Net financial debt amounts to € 9,949 million, a € 3,713 million increase compared to 31 December 2008. The increase is essentially due to the effect of acquiring Italgas and Stogit, which also involved the consolidation of their respective net financial debts (€ 2,381 million as at 31 December 2009).

The financial liabilities (€ 9,986 million) are entirely to Eni and are entirely in euro. Long-term financial liabilities (€ 7,486 million) represent 75% of the financial debt (83% as at 31 December 2008). The average term of long-term financing is around 4 years (from a little more than 4 years as at 31 December 2008). In terms of sources of financial resources, the incidence of the net financial debt on the net invested capital is 63.6%, unchanged from 31 December 2008.

Dividend

The 2009 results, together with the solid capital structure, will enable the Company to offer the next Shareholders’ Meeting the distribution of a dividend of € 0.20 per share, of which € 0.06 per share was distributed in October 2009 as advance payment on the dividend, confirming Snam Rete Gas' attractive and sustainable dividend policy. The dividend in full of € 0.14 will be paid starting on 27 May 2010 (coupon detachment at 24 May 2010).