Gas Plus: The Board of Directors approves the Interim Report as
at September 30th, 2015
Restart of the exploration and production activities and the
investments in the E&P: expected production increase in 2016
Commercial activities rationalization: simplification and
optimization of the gas sales business model, already operating
from Q4 15 Maintained economic results in a decreasing oil price
market context: increasing Net Result vs. 2014 Strong reduction of
Net Financial Position vs December 31st, 2014
Total Revenues: 125.0 M vs 96.6 M in 9M14 EBITDA: 24.4 M vs 26.6 M
in 9M14 EBIT: 9.3 M vs 12.9 M in 9M14 EBT: 5.4 M vs 5.1 M in 9M14
Net Result: 4.6 M vs 4.2 M in 9M14 NFP: 52.6 M vs 71.2 M as at
December 31 , 2014
th st
Milan, November 12 , 2015 - The Board of Directors of Gas Plus
S.p.A., a company listed on the Italian Stock Exchange, approved
today the Interim Report as at September 30th, 2015 In the first
nine months of the year, Gas Plus Group achieved 4.6 M Net Result,
higher than the prior year figure, despite the decreasing oil
scenario. The increase has been recorded thanks to the constant
control of the operating costs, the positive trend of the financial
items and an active asset management that enabled the realization
of no recurring items. A more favorable tax rate needs also to be
highlighted. The results of the main Group B.U. (B.U. Exploration
and Production) have been penalized by the aforementioned oil
scenario, the physiological natural depletion of mature fields, the
persisting production interruption of a concession not operated by
the Group and the lack of contribution of the production of new
projects, whose time of realization are affected by the completion
of the authorization processes. In a context positively changed
since July 2015, after the ban removal for the new E&P
activities by the Emilia Romagna Region, the Group has: started the
realization works of an important project that will begin its
production in the first part of 2016;
-1-
-
drilled a new exploration well in Italy, unfortunately with a
negative outcome, but that has marked the restart of exploration
investments in Italy.
The traditional Business Unit "downstream" (the B.U. Network and
Transportation), thanks to an efficient management, has confirmed
the previous positive economic trend, also favored by a climatic
trend in the first part of the year - even if not particularly cold
- less mild than 2014. Concerning the commercial activities of the
B.U. Supply & Sales (wholesale market) and Retail (retail
market), the BU Retail has achieved positive and increasing results
while the
st
B.U.
Supply & Sales has recorded a negative trend (in line with the
current market context). Starting from October 1 , the Group has
put in place a new business model that, skipping a step in the gas
value chain in the current unprofitable moment, has led to the exit
from the wholesale market and the stop of the activity of the B.U.,
with the B.U. E&P and Retail accessing directly important
market counterparts for, respectively, the sales of the gas
produced and the supply of the retail market. As far as the
financial aspects are concerned, the reduction of the Net Financial
Position was confirmed (from 71.2 M as at December 31 , 2014 to the
current 52.6 M). This low level is however to be considered
temporary and linked to the postponement of certain investments
whose realization has already been secured by a specific 64 M
credit line, obtained at the end of the previous financial
year.
st
The CEO Davide Usberti declared: "We are first of all satisfied
with the maintenance of the results thanks to a careful management
of the assets and the costs, in a not easy context for the oil
price decrease and for the production constraints we suffered.
Above all, thanks to an improved authorization context, since half
of the year the Group has returned to invest in Italy and from
these investments we expect a production increase already starting
from next year. Despite the decreasing trend of the natural gas
prices that, following those of oil and according to the typical
fluctuation of the various historical phase of the oil & gas
market, will penalize our results in the short term, the Group will
continue to invest, keeping also an eye on potential initiatives in
the downstream".
-2-
9M 2015 CONSOLIDATED ECONOMIC AND FINANCIAL DATA 9M 2015 Total
Revenues amounted to 125.0 M vs. 96.6 M of 9M14. The increase over
the previous year was due to the higher wholesale volume sold by
the B.U. S&S, that counterbalanced the E&P revenues
reduction as effect of the lower oil selling prices and the lower
production. Revenues of the period also include no recurring items
for 5.3 M due to the renewal of a service contract of the B.U.
E&P. EBITDA recorded a reduction, moving from 26.6 M of 9M14 to
the current 24.4 M. The result was affected by the E&P trend
that decreased its contribution from 21.5 M of 9M14 to the 18.6 M
of 9M15. The reduction was partly counterbalanced by the good
performance of the Commercial Gas Assets ( 1.9 M in 9M15 vs. 1.2 M
in 9M14) even if with a different contribution of each B.U.: on the
one side, the positive contribution of the retail sales ( 3.2 M in
9M15 vs. 2.3 M in 9M14) and, on the other side, the persisting
negative performance of the wholesale sales despite the growth of
the commercial portfolio (- 1.3 in 9M15 vs. - 1.1 M in 9M14). The
B.U. Network and Transportation ( 3.8 M in 9M15 vs. 3.9 M in 9M14)
recorded a substantially analogous result to that of the previous
year period, confirming the constant and positive contribution to
the consolidated Group result. EBIT amounted to 9.3 M vs. 12.9 M in
9M14, Operating Result to 10.9 M vs. 12.9 M in 9M14 while the EBT
amounted to 5.4 M vs. 5.1 M in 9M14, thanks to the positive trend
of the financial items and to positive no recurring items. The
Group closed 9M15 with a Net Result amounting to 4.6 M vs. 4.2 M of
9M14, with a lower tax rate vs. 2014. Net Debt, thanks to the cash
flows of the period and the postponement of certain investments,
showed a remarkable improvement ( 52.6 as at September 30 , 2015
vs. 71.2 M as at December 31 , 2014). BUSINESS UNITS TREND With
reference to the Business Units we highlight: B.U. E&P: as of
30 September 2015, the gross hydrocarbon production was equal to
116,8 MSmce, with a decrease of roughly 14% with respect to the
135,9 MSmce registered in the corresponding period of 2014.
th st th
-3-
Indeed, as it happened in 2013 and 2014, the B.U. could only count
on the production of the mature fields, affected by the typical
natural depletion, considering the missing contribution from the
Garaguso concession, not operated by the Group (which currently
counts for roughly the 15% of the total gross hydrocarbon
production), due to the persisting interruption of the production
facility, and also the missing contribution from new gas-in, due to
the well-known delays in the authorization procedures. Thanks to
the implementation of certain optimization strategies, the
production reduction trend was however contained compared to the
last quarter and equal to -5%. As of 30 September 2015, the EBITDA
was equal to 18.6 M, decreasing by roughly 14.0% with respect to
21.5 M registered in the corresponding period of 2014. Beside the
effect of the mentioned lower volumes produced, the reduction was
due to the market dynamics characterized by a lower oil prices
scenario with respect to the corresponding period of 2014. The
above mentioned factors were partially compensated by a constant
control of the operating costs, with modalities however such as not
to affect the future development programs, and by positive no
recurring items of roughly 5.3 M deriving from the renegotiation of
a gas treatment contract produced in a plant not operated by the
Group. Considering the impossibility to start new development
projects, mainly for the suspension of the authorization procedures
in Emilia Romagna region (in which the main activities of the Group
are located) lasted until the first half of July, the development
activities of the E&P Italian Branch was only focused on the
already authorized projects. With regard to one of the main
development projects, the contracts for the pipeline construction
were awarded and, as of 30
th th
September 2015, the related activities were almost completed (in
particular the testing of the pipeline has been just concluded).
Moreover last April, the contracts for the treatment, compression
facilities revamping and production set up were awarded. All the
development activities of the project have now started and the
completion is foreseen during 1H 2016. Finally, in order to
increase the volumes produced starting from the next year, studies
and evaluations related to the producing field trend and to the
restart of the minor currently not producing fields have been
carried on. Following the preliminary positive results of the tests
of compression facilities carried out in 2014, other preparatory
activities required for the continuation of the tests have been
carried out during the first nine months of the year in order to
allow a production increase of some producing fields. To this
regard, the authorization process for the first selected concession
- which gas-in is foreseen in the beginning of 2016 has been
started. -4-
As previously mentioned in relation to the exploration activities,
last July 2015 the drilling of a well, located in Parma province,
were carried out with a negative outcome due to the finding of not
gas bearing geological areas. With regard to the International
E&P activities in Romania, the analysis of the 3D seismic data
related to Midia Shallow & Pelican and Midia Deep concessions
have been continued. In relation to the Midia Deep concession, the
authorities approved the extension of the first exploration phase
until August 2016. The extension will allow the completion of the
3D seismic data analysis and the integration with the results of
the activities to be carried out by ExxonMobil and OMV Petrom in
the Neptune Deep concession and by other operators in the adjacent
concessions in the Romanian Black Sea. The validation of the
geological model will be fundamental for the eventual entry in the
next exploration phase. With regard to the Midia Shallow &
Pelican concession, a review of the data and analysis contained in
the Final Technical Report finalized by the operator on the 3D
seismic data has been undertaken. Commercial Gas Assets (composed
by B.U. Supply & Sales and Retail): as of 30
th
September 2015, the commercial gas assets registered an higher
marginality compared to the corresponding 2014 period (from 1.2 M
to 1.9 M). The increase was mainly due to the better performances
of the Retail B.U. which, despite a revenues reduction (from 36.0 M
to 35.6 M) due to the decrease of the sale prices, registered an
increase in volumes sold (from 63.3 MSmc to 65.9 MSmc) and, mostly,
a significant increase in the unitary marginality of the several
portfolio segments, achieving an EBITDA of 3.2 M compared to the
2.3 M of the corresponding period of 2014. The S&S B.U.
results, instead, have continued to be affected by the effects of
the market context and the new prices regime, registering an EBITDA
equal to - 1.3 M despite a significant increase of the volumes sold
(from 198.8 MSmc to 305.2 MSmc), which consequently has not
counterbalanced the decrease of the unitary marginality. B.U.
N&T: as of 30 September 2015, the B.U. registered an increase
of distributed volumes (from 115.1 MSmc to 124.3 MSmc) as effect of
the more stable climate conditions, mainly if compared to the
exceptionally mite temperatures of the corresponding 2014 period.
In terms of profitability, the B.U. confirmed its positive
contribution to the Group results recording an EBITDA equal to 3,8
M, substantially in line with the corresponding 2014 period.
th
-5-
In relation to the tenders connected to the new regulatory
framework, the B.U. has continued its review of the current
concessions as well as the evaluation of further development
opportunities through the participation to the tenders. B.U.
Storage: the B.U. activities had registered significant progress
during the end of the first semester 2014, thanks to the issuance
of the environmental compatibility assessment (EIA) decrees related
to Poggiofiorito and San Benedetto projects. Several appeals to the
TAR of the Abruzzo and Marche regions have been however made
against the above mentioned decrees by different entities which,
regardless of the outcomes, will inevitably affect the timing of
the authorization procedures completion.
OUTLOOK Considering the results achieved in 9M15, we believe that
2015 may close with a positive result, despite the further
reduction of the energetic scenario ongoing since last August.
During 2016, the improvement of the production thanks to the
restart of the activity, interrupted until now, of the Garaguso
concession and to a new gas-in should contribute to mitigate the
effect of the above mentioned scenario and the related effects on
the results. The regulated and retail activities will continue to
record a positive trend also in the next year. Without prejudice to
the prosecution of the main Group initiatives in the E&P
sector, that allow a level of profitability even at the current
prices, the Group will also focus its attention, in case of
persisting market fragility, on development projects of the
downstream regulated and commercial activities. In the following
months, therefore, great attention will be paid to the evolution of
the energetic prices scenario, also in order to set the development
guidelines for the Group and to update the Business Plan to be
submitted to the evaluation of the Board of Directors in the first
months of 2016. ******* The manager responsible for preparing the
company's financial reports, Dr. Germano Rossi, declares, pursuant
to paragraph 2-bis of Article 154 of the Consolidated Law on
Finance, that the accounting information contained in this press
release corresponds to the document results, books and accounting
records. ******* -6-
The Interim Report as at 30 September 2015 is available at the
Company registered office, on the Company web site www.gasplus.it
(Investor Relations section) and on the storage mechanism
NIS-Storage. On November 13th, 2015 at h. 10.00 (CET), Gas Plus
will host the conference call for analysts/investors on 9M 2015
financial results. Speakers: Davide Usberti Chief Executive
Officer Cinzia Triunfo General Manager Germano Rossi Chief
Financial Officer To connect the conference-call: +39 02 805 88 11
(Italia) +44 1 212818003 (UK) + 1 718 7058794 (USA) +39 02 805 88
27 (Press no questions)
Gas Plus is the fourth largest producer of natural gas (as
estimated by the Authority for Electricity and Gas) after Eni,
Edison and Shell Italy E&P. It is active in the main sectors of
the industry of natural gas, particularly in the exploration,
production, purchase, distribution and sale to wholesale and final
customers. At 31 December 2014 the Group has 49 exploitation
concessions located throughout the Italian territory, wholesale
markets about 350 million cubic meter of natural gas in 2014,
manages a total of approximately 1,500 kilometers of distribution
network located in 37 municipalities, serves a total of more than
75,000 end users, with a staff of 207 employees.
For Further information: www.gasplus.it
IR contacts: Germano Rossi (IR) germanorossi@gasplus.it +39 02 71
40 60
Media relations: Giorgio Brugora giorgio.brugora@gmail.com +39 335
78 75 079
ATTACHMENTS: Data not audited
-7-
CONSOLIDATED BALANCE SHEET At September 30, 2015 and December 31,
2014 Amounts in thousands of Euro September 30, 2015 Fixed assets
Intangible assets Tangible assets Other non-current assets and
liabilities Total Net working capital Inventories Trade receivables
Trade payables Other current assets and liabilities Total
Provisions for risk and charges and deferred taxes Provisions for
employees severance indemnity Net invested capital Capital and
reserves Net financial debt Coverages 356,347 103,387 1,462 461,196
3,819 16,925 (20,131) 7,929 8,542 December 31, 2014 362,386 104,170
1,327 467,883 19,283 34,535 (35,545) 2,433 20,706
(192,239) (4,355) 273,144 220,551 52,593 273,144
(191,330) (4,866) 292,393 221,239 71,154 292,393
-8-
CONSOLIDATED INCOME STATEMENT At September 30, 2015 and 2014
Amounts in thousands of Euro September 30, 2015 Revenues Other
revenues TOTAL REVENUES Raw materials and consumables Services and
other costs Personnel costs GROSS OPERATING RESULT (EBITDA)
Depreciation and amortization EBIT Other income and (expense)
OPERATING RESULT Financial income Financial expense PRE-TAX RESULT
Income taxes NET RESULT FOR THE PERIOD Attributable to: Group
Minority interests 116,531 8,450 124,981 (59,914) (32,094) (8,544)
24,429 (15,163) 9,266 1,604 10,870 2,039 (7,481) 5,428 (787) 4,641
September 30, 2014 92,951 3,660 96,611 (29,632) (31,484) (8,921)
26,574 (13,708) 12,866 12,866 1,154 (8,929) 5,091 (902) 4,189
4,628 13
4,177 12
-9-
CONSOLIDATED CASH FLOW STATEMENT At September 30, 2015 and 2014
Amounts in thousands of Euro September September 30, 2015
30,2014
EBIT + Depreciation of intangible and tangible assets EBITDA +/-
Other non-monetary provisions/uses - Income taxes paid +/- Other
changes in operating assets and liabilities Cash Flow from
operating activities - Investments in intangible/tangible assets,
net of disposals - Investments in financial fixed assets and other
non-current assets +/- Consolidation adjustments and other
adjustments Operating Cash Flow - Dividends paid - Financial
income/expenses paid - Change in fair value of derivative
instruments in hedge accounting - Other non-monetary financial
changes Cash Flow for debt service
9,266 15,163 24,429 201 (287) 10,393 34,736 (8,290) 110 (295)
26,261 (4,362) (2,525) (505) (307) 18,561
12,866 13,708 26,574 448 (5,149) 19,062 40,935 (5,537) (102)
(1,160) 34,136 (6,978) (3,805) 540 (1,004) 22,889
Net financial position at the beginning of the period Net financial
position at the end of the period
(71,154) (52,593)
(98,569) (75,680)
- 10 -
Gas Plus (BIT:GSP)
Historical Stock Chart
From Oct 2024 to Nov 2024
Gas Plus (BIT:GSP)
Historical Stock Chart
From Nov 2023 to Nov 2024
