Edison closed 2019 with revenues of 8.2 billion euros and EBITDA of 587 million euros (+38%) thanks to the good industrial performance, in particular in renewables

Net profit from Continuing Operations, i.e. excluding E&P discontinued operations, stood at 98 million euros (+5% compared to 2018). The Edison Group’s net result, taken into account E&P write-downs, is negative for 479 million euros.

Net financial debt fell to 516 million euros from 581 million euros as at January 1, 20192, despite the acquisitions in renewables which increased Edison’s renewable capacity by a further 292MW.

Milan, February 14, 2020 - Edison’s Board of Directors, which met yesterday, reviewed the financial statements as at December 31, 2019, which closed with a significant increase in EBITDA (+38% to 587 million euros compared with 426 million euros in 2018), thanks to the strong industrial performance, in particular in the renewable energy sector.

In light of the agreement for the disposal of the E&P activities, the results of the Exploration & Production business were considered as discontinued operations (assets being divested) and, therefore, did not contribute to sales revenues and to EBITDA (1).

The good operating performance led to a positive net result from continuing operations of 98 million euros (+5% compared with 93 million euros in 2018). The Group’s net loss of -479 million euros (+54 million euros in 2018) is the result of write-downs recognised in connection with the agreement for the disposal of E&P.

Net financial debt at December 31, 2019 fell to 516 million euros, from 581 million euros at January 1, 2019 (2). The cash flow produced by industrial activities together with working capital optimisation actions led Edison to a solid financial profile, which has favoured the growth in renewables.

Thanks to the acquisition of 292 MW of renewable capacity (wind and photovoltaic) and of the company that manages and maintains these plants, Edison has become the second operator in the wind power sector in Italy (roughly 920 MW of installed capacity), laid the foundations for the development of photovoltaic generation and confirmed its position as an integrated operator along the entire chain of renewable energies, with activities that range from development to production, management and sale of sustainable energy.

In 2019 Edison further developed the initiatives in support of innovation and digital transformation, which were further strengthened with the creation of Officine Edison in Milan Bovisa, space for research and development in the energy sector in collaboration with the Milan Polytechnic, and with the platform of projects for digitalization DAFNE (Digital Arena For the Next Edison).

(1) The income statement items that contribute to the Continuing Operations net result exclude the contribution of E&P activities, classified as Discontinued Operations pursuant to IFRS 5. The values in 2018 were subsequently re-stated to allow a homogeneous comparison (E&P EBITDA of 367 million euros in 2018). Therefore, the following comments refer to Continuing Operations.

(2) Debt as at December 31, 2018 stood at 416 million euros and did not include the application, from January 1, 2019, of the new accounting standard IFRS 16, which involved an increase of 165 million euros in debt (including the contribution of E&P discontinued operations).

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