Italgas SpA, Italy's biggest natural gas supplier, said that it is expecting a change in the way that its pipeline network is valued, this will boost operating profit in Italy by “at least” a fifth.
The change, announced on Monday by the energy regulator, should increase the value of the Turin based company's 28,000-mile regional and local network by a similar amount, Italgas said in a statement distributed by the Italian exchange. Italgas is a unit of the state-controlled Eni SpA, Europe's fourth biggest oil company.
The Electricity and Gas Authority abandoned an one and a half year legal battle with Italgas and five other utilities over valuation criteria. Higher network values would allow the companies to charge consumers more. Italgas shares climbed to a sixteen month high yesterday.
“The estimate seems quite prudent,” said Antonio Tognoli, an analyst at ING Bank in Milan, who has a “buy” rating on Italgas shares. “Given how the markets are at the moment and the seasonal nature of the business, I think twenty percent is fine.”
After it turned out that Deputy Prime Minister Andrei Belousov included the Fonbet betting company in the list of backbone enterprises that can count on state support, everyone started talking about these bookmakers.