27 July 2022

Edison: revenues grow to 13.2 billion euros and ebitda to 622 million euros in the first half of the year. profit down to 201 million, including the effect of the “aiuti”, “taglia-prezzi” and “sostegni-ter” decrees

Net profit drops to 201 million euros from 319 million euros in the same period of 2021, which included non-recurring effects, and records the impact of the "Aiuti", “Taglia prezzi” and “Sostegni-ter” decrees which have a total estimated impact of about 80 million euros1 over the first semester.

Milan, July 27, 2022 - Edison's Board of Directors met yesterday and reviewed the Semiannual Report at June 30, 2022, which closed with a significant increase in sales revenues as a result of the increase in prices and the decisive role played by the company in guaranteeing the country’s security of supply by maximising gas imports.

The first half of 2022 was characterised by a sharp increase in energy prices, also worsened by the Russo-Ukrainian war and uncertainty over continuity of gas supply from Russia. In this context, Edison increased the gas available to Italy by 5% compared to the first half of 2021, thus contributing to the country’s security of supply.

Higher gas volumes combined with price increases – in the period the average gas and power prices were around four times higher– led Edison Group revenues to 13,222 million euros (vs 4,120 million euros in the first half of 2021), of which 10,331 million euros related to Gas Operations (vs 2,388 million euros in 2021) and 4,485 million euros related to Electric Power Operations (vs 2,006 million euros in 2021).

The increase in EBITDA was more moderate and it stood at 622 million euros (vs 472 million euros in the first half of 2021), which takes into account the higher costs of energy production and supply, of raw materials as well as hedging activities. The result was primarily driven by thermoelectric power generation and gas operations. These factors more than offset the drop in hydroelectric production, which suffered from low water resource availability in the period, and the negative impact of higher prices on end-customer retail margins. In this scenario of price increases, Edison took customer protection measures that have weighed on the profitability of downstream activities.

The Group closed the semester with a decline in profit to 201 million euros (vs 319 million euros in the first half of 2021) as a result of the application of the “Aiuti”, “Taglia-Prezzi”, “Sostegni-Ter” decrees and of the absence of non-recurring items.

Financial debt at June 30, 2022 stood at 150 million euros from 104 million euros as at 31 December 2021 increasing following in particular investments made to strengthen the energy transition activities. The company is currently building two combined cycle plants in Marghera and Presenzano, which will be the most efficient in Europe, as well as developing new wind and photovoltaic capacity, alongside energy and environmental services.

EDISON GROUP HIGHLIGHTS

*in millions of euro*	6 months 2022	6 months 2021
Sales revenues	13,222	4,120
EBITDA	622	472
EBIT	407	156
Net Profit from Continuing Operations	228	322
Group net profit	201	319