Snam Sees Flat 2013 Dividend While Policy to Remain Attractive

By Liam Moloney

Snam SpA (SRG.MI), Italy's biggest natural gas grid by lines, Wednesday presented its 2013-2016 growth plan in which it predicts a flat 2013 dividend, while adding it will maintain an attractive dividend in the medium-long term to woo investors.

Snam also said it upped its planned investments over the next four years as part of its plans to expand abroad.

In a statement, Snam said its planned investments would be 6.9 billion euros ($8.97 billion) 3% higher than the EUR6.7 billion it had penciled in to spend in the 2012-2015 period. The Milan-based company said it plans to spend EUR1.3 billion this year.

Snam said it expects a flat dividend this year compared with a EUR0.25-a-share payout for 2012.

"We are confirming a robust investment plan focused on strengthening Italian gas infrastructure while at the same time developing operations internationally," said Chief Executive Carlo Malacarne in the statement.

Snam's biggest shareholder is state-controlled lender Cassa Depositi e Prestiti SpA after the Italian government forced Eni SpA (E) to cede its hold as part of a process to open up the sector to competition and lower energy prices.

Snam is increasingly looking at growth opportunities in Europe as it teams up with Belgium's Fluxys SA (FLUX.BT).

Last month, Total SA (TOT) picked a consortium in which Snam is the biggest investor with a 45% stake which also includes Electricite de France SA (EDF.FR) and the Government of Singapore Investment Corp., to enter exclusive talks to sell its gas transport and storage unit TIGF.

Snam has slated a presentation to detail the plan in London at 1400 GMT, Wednesday.

Tuesday, shares closed at EUR3.58, giving the company a market capitalization of about EUR12.15 billion and placing it as the eighth biggest company on Italy's FTSE Mib Index.

Write to Liam Moloney at [e-mail]