Edison ends 2016 with revenues of €11 billion, EBITDA of €653 million, in line with forecasts, and a net loss of €389 million.

Milan, 13 February 2017 – Edison’s Board of Directors met today to examine the financial statements for the year ended 31 December 2016 which show results in line with forecasts, reflecting the effects of difficult market conditions in the energy sector. The drop in electricity, oil and gas prices, coupled with weak demand for electricity, affected the Group’s EBITDA  , which did not benefit from the one-off item recorded in 2015 thanks to the positive conclusion of the arbitration  on the Libyan gas procurement.

The new business area devoted to energy and environmental services, which has included Fenice’s results since 1 April 2016, significantly contributed to results and is part of the strategic focus on the retail sector, end customers and renewable energy sources.

The company has taken steps to further cut operating costs which, at the same scope of consolidation, are down 5% on 2015 after the improvement of roughly 12% already achieved in the previous year.

The €389 million loss for the year, compared to the loss of €980 million for 2015, is due to the impairment of hydrocarbon assets and the volatility of commodities and currency hedges. Net financial debt was further reduced to €1,062 million at 31 December 2016, with a sound debt/EBITDA ratio of 1.6, which puts the company in the best position to seize growth opportunities that may arise on the market.

The 2016 financial statements reflect the new consolidation scope which includes Fenice (an energy efficiency and environmental services company that has been consolidated since 1 April 2016), Cellina Energy (resulting from the exchange of Edison’s investments in Hydros and SelEdison with Alperia’s investment in Cellina Energy, the company that owns the hydroelectric hub on the Cellina River, consolidated on a line-by-line basis since 1 June 2016) and IDREG’s hydroelectric activities (acquired at the end of May 2016). 

 

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