* Italgas assets placed under court administration
* Italgas accounts for about 25 pct of Snam operating profit
* H1 EBIT rises on higher gas storage volumes
(Recasts lead, adds detail)
MILAN, July 30 Italian gas transport group Snam
said on Wednesday a recent court decision to put its
distribution unit Italgas under judicial administration would
not have a major impact on its business.
Earlier this month, a Sicilian court placed Italgas assets
under administration as it investigated certain suppliers that
may have breached the country's anti-Mafia rules.
As a result of the measure, a management body appointed by
the court will have full powers over Italgas's business for a
period of six months, which can be extended by a further six
"On the basis of information currently available the
potential impact of the measure on consolidated net assets and
the group's net financial position as well as on Snam and the
group as a going concern is judged to be not significant," the
Italgas is Italy's biggest gas distributor with about one
third of the market and accounted for around 25 percent of
Snam's operating profits in the first half.
In the first six months of 2014, earnings before interest
and taxes (EBIT) rose 2.4 percent to 1.04 billion euros ($1.4
billion), boosted by gas storage volumes, Snam said. That
compared with analysts' average forecast of 1.02 billion euros
in a Reuters poll.
Snam - which has transport, storage and distribution
businesses - said it expected Italian gas demand this year to be
lower than in 2013.
Italy's ongoing recession has led to lower gas demand from
the power sector and business, meaning less gas is being
injected into the transport system.
($1 = 0.7459 Euros)
(Reporting by Stephen Jewkes; Editing by Mark Potter)