Eni net debt felled from €28 billion to less than €11 billion. At the same time the disposal would have a positive impact on our shareholders’ equity, which would rise from €60 billion to over €62 billion. Overall, the disposal of SNAM would therefore improve leverage from 0.46 at year-end 2011 to less than 0.20 on a pro forma basis.
Looking at our profit and cash flows the consolidation of SNAM from the full year 2011 would reduce our EBITDA by 12%. However, the impact on free cash flow would be negligible as SNAM invest roughly the whole of the cash generated by its operations. In strategic terms, as accounts of the disposal of SNAM, Eni would be a much upstream business than it is today.
Looking at our capital employed, E&P will account for almost 60% of Eni, up from almost 50% at the end of 2011, while gas and power will [afford] from over 30% to 17%. The consolidation of SNAM will also boost Eni’s adjusted returns on average capital employed from the 2011 level of 9.9% to a pro forma of 10.4%.
Ladies and gentlemen, thank you for your attention. Let me now hand you over to Paolo to wrap up.Read the rest of this transcript for free on seekingalpha.com