Earnings Release • Nov 9, 2017
Earnings Release
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| Informazione Regolamentata n. 0116-87-2017 |
Data/Ora Ricezione 09 Novembre 2017 07:47:59 |
MTA | ||
|---|---|---|---|---|
| Societa' | : | ENEL | ||
| Identificativo Informazione Regolamentata |
: | 95658 | ||
| Nome utilizzatore | : | ENELN05 - Giannetti | ||
| Tipologia | : | REGEM | ||
| Data/Ora Ricezione | : | 09 Novembre 2017 07:47:59 | ||
| Data/Ora Inizio Diffusione presunta |
: | 09 Novembre 2017 07:48:00 | ||
| Oggetto | : Enel revenues and ordinary net income excluding one-off items up in 9M 2017 |
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| Testo del comunicato |
Vedi allegato.
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Francesco Starace, Chief Executive Officer and General Manager of Enel, said: "In the first nine months of 2017, our geographical diversification and the contribution of investments in growth have enabled us to manage the ongoing global shortage of hydro and wind resources and the continuing challenges of conditions in the Iberian peninsula. We achieved an increase in revenues mainly as a result of our performance in the sale and transport of electricity, an improvement in the Group's cash generation and an increase of 3% in ordinary net income net of one-off items. For the remainder of 2017, we will continue the acceleration of investment in digitisation, in line with which we have already installed more than a million new generation smart meters in Italy and will complete the installation of digital meters in Spain. Our growth in renewables will be boosted even further with the intensification of our BSO strategy, which has now been expanded to new countries like Mexico. In view of the progress achieved for each of the Plan objectives, the results posted in the first nine months of the year and forecast developments in the last quarter, we can confirm our performance and financial targets for 2017."
*****
Rome, November 9th, 2017 – The Board of Directors of Enel S.p.A. ("Enel"), chaired by Patrizia Grieco, has examined and approved yesterday afternoon the Interim Financial Report at September 30th, 2017. The Board of Directors has also examined and approved Enel's financial statements on the same date and the report that indicates that the company's financial position and performance permit the distribution of an interim dividend for 2017 of 0.105 euros per share, which will be paid as from January 24th, 2018.
Revenues (millions of euros) 9M 2017 9M 2016 Change Italy 27,780 26,335 5.5% Iberia 14,701 14,048 4.6% Latin America 9,830 7,923 24.1% Europe and North Africa 1,750 3,075 -43.1% North and Central America 608 672 -9.5% Sub-Saharan Africa and Asia 72 18 - Other, eliminations and adjustments (553) (612) 9.6% TOTAL 54,188 51,459 5.3%
The following table provides a breakdown of revenues by business area:
These factors were only partly offset by:
| EBITDA (millions of euros) | 9M 2017 | 9M 2016 | Change |
|---|---|---|---|
| Italy | 5,238 | 5,445 | -3.8% |
| Iberia | 2,543 | 2,970 | -14.4% |
| Latin America | 3,117 | 2,612 | 19.3% |
| Europe and North Africa | 409 | 609 | -32.8% |
| North and Central America | 326 | 470 | -30.6% |
| Sub-Saharan Africa and Asia | 47 | 7 | - |
| Other | (230) | (103) | - |
| TOTAL | 11,450 | 12,010 | -4.7% |
The following table provides a breakdown of EBITDA by business area:
a 147 million euro positive effect from exchange rate developments;
the strong performance posted in Italy, especially in the retail market.
The following table provides a breakdown of ordinary EBITDA by business area:
| Ordinary EBITDA (millions of euros) | 9M 2017 | 9M 2016 | Change |
|---|---|---|---|
| Italy | 5,238 | 5,321 | -1.6% |
| Iberia | 2,543 | 2,970 | -14.4% |
| Latin America | 2,973 | 2,622 | 13.4% |
| Europe and North Africa | 409 | 609 | -32.8% |
| North and Central America | 326 | 470 | -30.6% |
| Sub-Saharan Africa and Asia | 47 | 7 | - |
| Other | (230) | (103) | - |
| TOTAL | 11,306 | 11,896 | -5.0% |
Ordinary EBITDA in the first nine months of 2017 amounted to 11,306 million euros, a decrease of 590 million euros (-5.0%) compared with the same period of 2016. The only extraordinary item in the first nine months of 2017, not included in ordinary EBITDA, amounted to 144 million euros and include the capital gain posted in Chile on the disposal of the Group's stake in Electrogas. In the same period of 2016, extraordinary items amounted to 114 million euros and are the same as those noted under revenues, partly offset by capital losses in Chile and Peru on the abandonment of the development of hydro projects (about 181 million euros).
Net of the one-off items discussed below, ordinary EBITDA in the first nine months of 2017 amounted to 11,195 million euros, compared with 11,497 million euros in the same period of 2016, a decrease of 302 million euros (-2.6%).
One-off items in the first nine months of 2017 amounted to 111 million euros and included: in the Iberian Peninsula, a number of adjustments of non-mainland remuneration and receipt of a reimbursement of costs for the "bono social" for a number of previous financial years totalling 194 million euros; and in Latin America, a number of provisions recognised by Celg-D following its acquisition and the recognition of a number of prior-period fines levied in Argentina, with a total positive impact of 83 million euros.
In the first nine months of 2016 one-off items were 399 million euros and refer to: in Italy, income from the renegotiation of gas contracts worth 311 million euros; in the Iberian Peninsula, the reimbursement of the environmental tax in the region of Extremadura, the reversal of provisions and the capital gain on the disposal of the reinsurance company Compostilla RE for a total of 125 million euros; and other minor oneoff items totalling -37 million euros.
The following table provides a breakdown of EBIT by business area:
| EBIT (millions of euros) | 9M 2017 | 9M 2016 | Change |
|---|---|---|---|
| Italy | 3,555 | 3,824 | -7.0% |
| Iberia | 1,316 | 1,630 | -19.3% |
| Latin America | 2,138 | 1,839 | 16.3% |
| Europe and North Africa | 253 | 326 | -22.4% |
| North and Central America | 181 | 259 | -30.1% |
| Sub-Saharan Africa and Asia | 15 | (5) | - |
| Other | (241) | (184) | -31.0% |
| TOTAL | 7,217 | 7,689 | -6.1% |
EBIT in the first nine months of 2017 was 7,217 million euros, a decrease of 472 million euros (-6.1%), compared with the same period of 2016, in line with the decline in EBITDA, partly offset by the reduction in depreciation, amortisation and impairment compared with the first nine months of 2016. This factor reflects the impact of impairment on the assets classified as held for sale in the first nine months of 2016, which amounted to 111 million euros, mainly reflecting adjustments of the estimated value of assets under development in upstream gas and Marcinelle Energie S.A.
In the first nine months of 2017, Group net income amounted to 2,621 million euros, compared with 2,757 million euros in the same period of the previous year, a decrease of 136 million euros (-4.9%). The aforementioned decrease in EBIT was partly offset by:
GROUP NET ORDINARY INCOME amounted to 2,583 million euros in the first nine months of 2017, compared with 2,700 million euros in the same period of the previous year, a decrease of 117 million euros (-4.3%). Net of the one-off items noted under ordinary EBITDA, Group net ordinary income amounted to 2,504 million euros in the first nine months of 2017, an increase of 73 million euros (+3.0%)
on the 2,431 million euros posted in the same period of 2016. One-off items had a positive impact on Group net ordinary income of 79 million euros in the first nine months of 2017 and 269 million euros in the same period of 2016.
The financial position shows net capital employed as of September 30th, 2017 of 90,554 million euros (90,128 million euros as of December 31st, 2016).
This amount is funded by:
As of September 30th, 2017, the debt/equity ratio was 0.72 (0.71 as of December 31st, 2016).
| Capital expenditure (millions of euros) |
9M 2017 | 9M 2016 | Change |
|---|---|---|---|
| Italy | 1,124 | 1,170 | -3.9% |
| Iberia | 582 | 646 | -9.9% |
| Latin America | 2,094 | 1,994 | 5.0% |
| Europe and North Africa | 208 | 144 | 44.4% |
| North and Central America | 1,479 | 989 | 49.5% |
| Sub-Saharan Africa and Asia | 25 | 253 | -90.1% |
| Other | 8 | 20 | -60.0% |
| TOTAL | 5,520 | 5,216 | 5.8% |
The following table provides a breakdown of capital expenditure by business area:
Capital expenditure in the first nine months of 2017 increased by 304 million euros compared with the same period of 2016, essentially reflecting investment in international renewable energy generation activities, especially in the United States and Mexico.
Capital expenditure does not include investments in the units classified as "held for sale", worth 27 million euros in the first nine months of 2017 and 288 million euros in the first nine months of 2016.
The Parent Company Enel S.p.A., in its capacity as holding company, sets the strategic objectives for the Group and coordinates the activities of its subsidiaries. The activities that Enel performs in respect of the other Group companies as part of its management and coordination role include holding company functions (coordination of governance processes), global business line functions (coordination of businesses in all the geographical areas in which the Group operates) and global service functions (coordination of information technology and procurement activities). Within the Group, Enel also directly performs the role of central treasury, ensuring access to the money and capital markets, and provides coverage of insurance risks.
| Millions of euros | |||
|---|---|---|---|
| 9M 2017 | 9M 2016 | Change | |
| Revenues | 93 | 166 | -44.0% |
| EBITDA | (131) | (57) | -129.8% |
| EBIT | (140) | (170) | 17.6% |
| Net financial expense and income from equity investments | 2,486 | 2,273 | 9.4% |
| Net income for the period | 2,461 | 2,259 | 8.9% |
| Net financial debt | 13,112* | 13,839** | -5.3% |
*As of September 30th, 2017 **As of December 31st, 2016
Revenues, which essentially refer to services rendered to the subsidiaries as part of the management and coordination function performed by the Parent Company, amounted to 93 million euros in the first nine months of 2017, a decrease of 73 million euros compared with the same period of the previous year. This reduction is essentially attributable to the decline in revenues from management fees, reflecting adjustments in respect of previous years and the application of the new remuneration mechanism adopted by the Parent Company this year.
EBITDA was -131 million euros in the first nine months of 2017, a deterioration of 74 million euros on the same period of 2016, mainly attributable to the reduction in revenues from services.
EBIT, including depreciation and amortisation of 9 million euros, was -140 million euros in the first nine months of 2017 as a result of the abovementioned developments in revenues and EBITDA, an improvement of 30 million euros on the corresponding period in 2016. In the first nine months of 2016, depreciation and amortisation of 10 million euros was accompanied by impairment losses on equity investments of 103 million euros.
Net financial expenses and income from equity investments in the first nine months of 2017 were 2,486 million euros overall. This figure includes dividends received from subsidiaries, associates and other entities worth 2,976 million euros (2,882 million euros in the first nine months of 2016) and net financial expenses of 490 million euros (609 million euros in the first nine months of 2016). Net financial
expenses decreased by 119 million euros compared with September 30th, 2016, largely attributable to the decrease in net expenses on derivatives held by Enel S.p.A., partly offset by a net negative impact of exchange rate developments.
Net income for the first nine months of 2017 was 2,461 million euros, compared with 2,259 million in the same period of 2016. The increase of 202 million euros mainly reflected the improvement in the result of finance operations.
Net financial debt as of September 30th, 2017 amounted to 13,112 million euros, a decrease of 727 million euros on December 31st, 2016. This decline was the result of a 2,800 million euro decrease in net long-term debt, partly offset by a 2,073 million euro increase in net short-term debt.
*****
| 9M 2017 | 9M 2016 | Change | |
|---|---|---|---|
| Electricity sales (TWh) | 213.1 | 198.7 | 7.2% |
| Gas sales (billions of m3 ) |
7.9 | 7.4 | 6.8% |
| Electricity generated (TWh) | 184.5 | 195.2 | -5.5% |
| Electricity distributed (TWh) | 333.3 | 320.4 | 4.0% |
| Employees (no.) | 63,331 | 62,080 | 2.0% |
Net electricity produced by the Enel Group in the first nine months of 2017 amounted to 184.5 TWh, a decrease of 10.7 TWh on the same period of 2016 (-5.5%), attributable to a decrease in
generation in Italy (-4.6 TWh) and in other countries (-6.1 TWh). More specifically, this drop reflected:
Generation mix of Enel Group plants:
The Enel Group's long-term objective remains achieving generation mix decarbonisation by 2050.
In 2019, nearly half of the Group's total estimated capacity of 83 GW is expected to be represented by renewable energy generation.
As of September 30th, 2017, Enel Group employees numbered 63,331 (62,080 as of December 31st , 2016), of whom about 50.4% employed in Group companies headquartered outside Italy. The increase of 1,251 reflected the negative balance between new hires and terminations (-1,624), which was more than offset by the change in the scope of consolidation (+2,875), mainly due to the acquisition of Celg-D in Brazil and EnerNOC Inc. in North America.
The third quarter of 2017 saw the achievement of major results in each of the objectives of the 2017-2019 Strategic Plan updated in November 2016 despite the challenges affecting generation at the global level due to the scarcity of hydro and wind resources and the ongoing exceptional situation in the Iberian Peninsula. From an operational point of view, the diversification of the Group's activities made it possible to achieve solid results in the first nine months of 2017.
In the remainder of 2017, in line with the targets set out in the plan, it is expected:
additional progress in operational efficiency, supported by investments in digitisation;
a major contribution from industrial growth, focused on networks and renewables, thanks in part to an acceleration of the development of the latter and the strengthening of Enel's BSO strategy, including in new countries such as Mexico;
The progress achieved for each of these objectives, the normalisation of operational performance and an acceleration in the contribution of investments in renewables, including through the BSO strategy, enable Enel to confirm the financial targets for 2017.
*****
Enel's 2017-2019 Strategic Plan - whose guidelines were presented to the financial community in November 2016 – provided for measures to optimise shareholder return, including the reintroduction by the Parent Company, Enel, as of 2016 financial year results, of an interim dividend. The dividend policy provides for dividends be paid to shareholders in two instalments each year in January as interim dividend and in July as balance dividend.
Considering the above, as well as the fact that the Parent Company posted net income of 2,461 million euros in the first nine months of 2017, the Board of Directors, taking due account of the outlook for the last quarter of the year, has approved the distribution of an interim dividend of 0.105 euros per share. The interim dividend, gross of any possible withholding tax, will be paid from January 24 th, 2018, with an exdividend date for coupon no. 27 of January 22 nd, 2018 and a record date of January 23 rd, 2018.
The amount of the interim dividend in question is consistent with the dividend policy contained in the 2017-2019 Strategic Plan, which provides for the payment of a total dividend on 2017 net income equal to the value of whichever is higher: either 0.21 euros per share or 65% of the net ordinary income of the Enel Group.
Taking into account the results achieved so far as well as the confirmation of all of the Plan's financial targets, for 2017 Enel expects to pay an overall dividend per share of 0.23 euros, equivalent to 65% of the Group's net ordinary income expected for 2017.
The opinion of the audit firm EY S.p.A. provided for under Article 2433-bis of the Italian Civil Code was issued as of November 8th, 2017.
*****
July 28th, 2017: Enel announced that its subsidiary e-distribuzione S.p.A. had signed an agreement with the European Investment Bank ("EIB") for the first tranche of 500 million euros, guaranteed by Enel, of a
total loan of 1 billion euros already approved by the EIB. The loan will contribute to financing the investments of e-distribuzione SpA in the 2017-2021 period to replace smart meters in Italy under the Open Meter plan.
August 1st, 2017: Enel announced that Enel Finance International N.V. ("EFI"), the Group finance company controlled by Enel, following the exercise of the "Redemption at the option of the Issuer (Issuer Call)", provided for in the offering documentation, and the publication of the associated notice on July 13th, 2017, had repurchased in cash the entire bond issue of 1,750,000,000 US dollars issued by EFI and guaranteed by Enel. The repurchase was carried out in the context of the optimisation of the structure of the Enel Group's liabilities through active management of maturities and of the cost of debt.
August 7th, 2017: Enel announced that the subsidiary Enel Green Power North America, Inc. ("EGPNA") had completed the acquisition – through a public purchase offer – of 100% of the shares of EnerNOC, Inc., for a total consideration equal to an equity value of about 250 million US dollars.
August 17th, 2017: Enel announced that EGPNA, acting through its subsidiary Red Dirt Wind Holdings, LLC, had signed a tax equity agreement worth about 340 million US dollars with MUFG and Allianz Renewable Energy Partners of America for the 300 MW Red Dirt wind farm in Oklahoma. The agreement – which also provides for a parent company guarantee from Enel – secures the funding commitment by the two investors to finance the start of the plant's commercial operation. The Red Dirt wind farm, whose construction called for an investment of about 420 million US dollars, is expected to enter into service by the end of 2017 and, once operational, to generate about 1,200 GWh a year.
August 25th, 2017: Enel announced that the Board of Directors of its subsidiary Enel Chile S.A. ("Enel Chile") had begun analysing a possible restructuring of the Enel Group's shareholdings in Chile based on a non-binding proposal formulated by Enel Chile and sent to Enel in July 2017.
The proposed restructuring envisages two phases, each of which is conditional on the implementation of the other: (i) the integration of the Chilean renewable assets held by Enel Group company Enel Green Power Latin America Ltda. through the merger by incorporation of the latter into Enel Chile; (ii) the launch by Enel Chile of a public purchase and exchange offer for all of the shares of its subsidiary Enel Generación Chile S.A. ("Enel Generación Chile") held by minority shareholders (representing about 40% of the share capital), the effectiveness of which will be conditional on the acquisition of a total number of shares that would enable Enel Chile to increase its stake in Enel Generación Chile to more than 75% from the current 60%.
The Board of Directors of Enel Chile has also agreed to the basic conditions set out by Enel: (i) the transaction shall be carried out according to market terms and conditions, taking due account of the prospects for growth of renewable energy in Chile; (ii) shall ensure that Enel, once the transaction is completed, retains a shareholding in Enel Chile substantially similar to its current holding (60.6%), ensuring that Enel does not lose control at any time of Enel Chile, in compliance with the 65% limit on share ownership provided in the company's bylaws; and (iii) shall ensure an increase in Enel Chile's earnings per share.
August 30th, 2017: Enel announced that, acting through it Brazilian renewables subsidiary Enel Green Power Brasil Participações ("EGPB"), it had begun operation of the Delfina wind farm in Brazil. Delfina, whose construction called for an investment of about 400 million US dollars, has a total installed capacity of 180 MW and can generate about 800 GWh a year.
September 18th, 2017: Enel announced that, acting through the subsidiary EGPB, it had begun generating energy at Ituverava (254 MW) and Nova Olinda (292 MW), the two largest photovoltaic plants in operation in Brazil. Enel invested about 400 million US dollars in the construction of Ituverava and
about 300 million US dollars in Nova Olinda, which can respectively generate about 550 GWh and 600 GWh a year.
September 27th, 2017: Enel announced that, acting through its subsidiary Enel Brasil S.A., it had won a 30-year concession for the 380 MW operating hydro plant of Volta Grande in south-eastern Brazil in the public "Leilão de Concessões não prorrogadas" tender organised by the Brazilian federal government through ANEEL, the Brazilian electricity regulatory agency. The operation of the plant, for which the concession offers guaranteed annual generation revenues, will involve an investment of about 1.4 billion Brazilian reais (BRL), equal to about 445 million US dollars. Enel is scheduled to take over operation of the plant in January 2018, after which it will be transferred to Enel's renewables subsidiary EGPB.
October 3rd, 2017: Enel announced that EFI had placed a multi-tranche bond for institutional investors on the US and international markets totalling 3 billion US dollars, the equivalent of approximately 2.5 billion euros. The issue, which is guaranteed by Enel, is structured in the following tranches: (i) 1,250 million US dollars at 2.75% fixed rate maturing in 2023; (ii) 1,250 million US dollars at 3.5% fixed rate maturing in 2028; (iii) an additional 500 million US dollars of EFI's existing 4.75% fixed-rate notes issued in May 2017 maturing in 2047. The offering, the Enel Group's second in 2017 on the US market, is part of the Group's strategy for funding and for refinancing maturing consolidated debt.
October 6th, 2017: Enel announced that EGPNA, acting through its subsidiary Thunder Ranch Wind Holdings, LLC, had signed a tax equity agreement worth approximately 330 million US dollars with the Alternative Energy Investing Group of Goldman Sachs (NYSE: GS) and GE Energy Financial Services of General Electric (NYSE: GE) for the 298 MW Thunder Ranch wind project located in Oklahoma. The agreement secures the funding commitment by the two investors for the start of commercial operation of the plant. The overall investment in Thunder Ranch amounts to about 435 million US dollars, with the plant scheduled to begin operation by the end of 2017. Once fully operational, Thunder Ranch will be able to generate around 1,100 GWh a year.
October 9th, 2017: Enel announced that its renewables subsidiary Enel Green Power S.p.A. ("EGP"), had signed agreements with the Canadian institutional investor Caisse de dépot et placement du Quebec ("CDPQ") and the investment vehicle of leading Mexican pension funds CKD Infraestructura México S.A. de C.V. ("CKD IM") for the sale of 80% of the share capital of a newly formed Mexican holding company ("Holdco"), owner of the entire capital of eight project companies ("SPVs"). The SPVs, currently owned by EGP through the subsidiary Enel Green Power México S.r.l. de C.V., in turn own three plants in operation, with a total capacity of 429 MW, and five projects under construction, with a total capacity of 1,283 MW, for an overall capacity of about 1.7 GW.
Under the agreements, EGP – implementing the Build Operate and Sell model announced in the 2017- 2019 Strategic Plan - will continue to operate the plants owned by SPVs and will complete those still under construction through two newly formed subsidiaries. In addition, starting from January 1st, 2020, EGP may transfer additional projects to Holdco. As a result of the transfers, it could therefore increase its interest in Holdco until it becomes the majority shareholder.
The transaction is worth 1.35 billion US dollars, of which a price of about 340 million US dollars for the sale of 80% of Holdco and about 1,010 million US dollars for financing (related-party loans) granted to the SPVs by CDPQ-CKD IM.
The transaction will enable the Enel Group to reduce its consolidated net debt at the closing date by about 1.9 billion US dollars.
*****
At 9:30am CET on November 9th, 2017, a conference call will be held to present the results for the third quarter and first nine months of 2017 to financial analysts and institutional investors. Journalists are also invited to listen in on the call. Documentation relating to the conference call will be available on Enel's website (www.enel.com) in the Investor section from the beginning of the call.
The condensed income statement, statement of comprehensive income, condensed balance sheet and condensed cash flow statement for the Enel Group are attached below. A descriptive summary of the alternative performance indicators used in this press release is also attached.
The officer responsible for the preparation of the corporate financial reports, Alberto De Paoli, certifies, pursuant to Article 154-bis, paragraph 2, of the Consolidated Law on Financial Intermediation, that the accounting information contained in this press release corresponds with that contained in the accounting documentation, books and records.
There were no changes in accounting standards that had an impact on the accounts that would need to be reported here. Unless otherwise specified, the balance sheet figures as of September 30th, 2017, exclude assets and liabilities held for sale, which regard eight Mexican project companies and other residual assets that, on the basis of the state of progress of negotiations for their sale to third parties, fall within the scope of application of IFRS 5. The first nine months of 2017 saw the completion of the acquisition of 100% of Demand Energy Networks, a US company specialised in software solutions and smart energy storage systems, as well as the acquisitions of 99.88% of Celg-D and of 100% of EnerNOC.
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This press release uses a number of "alternative performance indicators" not provided for in the IFRS-EU accounting standards, but deemed useful by Enel's management in order to facilitate the assessment of the Group's performance and financial position. In line with CONSOB Notice no. 0092543 of December 3 rd, 2016 and with the Guidelines issued on October 5th, 2016 by the European Securities and Markets Authority (ESMA) pursuant to Regulation (EU) no. 1095/2010, the content and basis of calculation of these indicators are as follows:
management products measured at fair value through profit or loss" and "Other financial receivables" included in "Other non-current financial assets", as well as the "Current portion of long-term financial receivables", "Factoring receivables", "Cash collateral" and "Other financial receivables" included in "Other current financial assets". More generally, the net financial debt of the Enel Group is calculated in conformity with paragraph 127 of Recommendation CESR/05- 054b implementing Regulation (EC) no. 809/2004 and in line with the CONSOB instructions from July 26th, 2007 defining net financial position net of financial receivables and long-term securities.
1 Determined as the difference between "Non-current assets" and "Non-current liabilities" with the exception of: 1) "Deferred tax assets"; 2) "Securities held to maturity", "Financial investments in funds or portfolio management products measured at fair value through profit or loss" and "Other financial receivables" included in "Other non-current financial assets"; 3) "Long-term borrowings"; 4) "Employee benefits"; 5) "Provisions for risks and charges (non-current portion)"; and 6) "Deferred tax liabilities".
2 Defined as the difference between "Current assets" and "Current liabilities" with the exception of: 1) "Current portion of long-term financial receivables", "Factoring receivables", "Securities held to maturity", "Cash collateral" and "Other financial receivables" included in "Other current financial assets"; 2) "Cash and cash equivalents"; 3) "Short-term borrowings" and the "Current portion of long-term borrowings"; 4) "Provisions for risks and charges (current portion)"; and 5) "Other financial payables" included in "Other current liabilities".
3 Determined as the difference between "Assets held for sale" and "Liabilities held for sale".
| Millions of euro | First nine months | |
|---|---|---|
| 2017 | 2016 | |
| Total revenues | 54,188 | 51,459 |
| Total costs | 47,354 | 43,640 |
| Net income/(expense) from commodity contracts measured at fair value | 383 | (130) |
| Operating income | 7,217 | 7,689 |
| Financial income | 2,877 | 3,166 |
| Financial expense | 5,040 | 5,343 |
| Total financial income/(expense) | (2,163) | (2,177) |
| Share of gains/(losses) on investments accounted for using the equity method | 114 | 67 |
| Income before taxes | 5,168 | 5,579 |
| Income taxes | 1,505 | 1,705 |
| Income from continuing operations | 3,663 | 3,874 |
| Net income from discontinued operations | - | - |
| Net income for the period (shareholders of the Parent Company and non controlling interests) |
3,663 | 3,874 |
| Attributable to shareholders of the Parent Company | 2,621 | 2,757 |
| Attributable to non-controlling interests | 1,042 | 1,117 |
| Net earnings attributable to shareholders of the Parent Company per share (euro) (1) | 0.26 | 0.28 |
(1) Diluted earnings per share are equal to basic earnings per share,
| Millions of euro | First nine months | |
|---|---|---|
| 2017 | 2016 | |
| Net income for the period | 3,663 | 3,874 |
| Other comprehensive income recyclable to profit or loss (net of taxes): | ||
| - Effective portion of change in the fair value of cash flow hedges | (19) | (499) |
| - Income recognized in equity by companies accounted for using the equity method | 9 | (28) |
| - Change in the fair value of financial investments available for sale | (20) | (4) |
| - Change in translation reserve | (2,120) | 1,079 |
| Income/(Loss) recognized directly in equity | (2,150) | 548 |
| Comprehensive income for the period | 1,513 | 4,422 |
| Attributable to: | ||
| - shareholders of the Parent Company | 1,353 | 2,699 |
| - non-controlling interests | 160 | 1,723 |
Millions of euro
| at Sep. 30, 2017 | at Dec. 31, 2016 | |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| - Property, plant and equipment and intangible assets | 91,701 | 92,318 |
| - Goodwill | 13,660 | 13,556 |
| - Equity investments accounted for using the equity method | 1,565 | 1,558 |
| - Other non-current assets (1) | 12,613 | 12,872 |
| Total non-current assets | 119,539 | 120,304 |
| Current assets | ||
| - Inventories | 2,924 | 2,564 |
| - Trade receivables | 13,596 | 13,506 |
| - Cash and cash equivalents | 5,127 | 8,290 |
| - Other current assets (2) | 11,234 | 10,921 |
| Total current assets | 32,881 | 35,281 |
| Assets held for sale | 1,592 | 11 |
| TOTAL ASSETS | 154,012 | 155,596 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| - Equity attributable to the shareholders of the Parent Company | 35,255 | 34,803 |
| - Equity attributable to non-controlling interests | 17,358 | 17,772 |
| Total shareholders'equity | 52,613 | 52,575 |
| Non-current liabilities | ||
| - Long-term loans | 40,895 | 41,336 |
| - Provisions and deferred tax liabilities | 15,835 | 16,334 |
| - Other non-current liabilities | 4,699 | 4,388 |
| Total non-current liabilities | 61,429 | 62,058 |
| Current liabilities | ||
| - Short-term loans and current portion of long-term loans | 9,878 | 9,756 |
| - Trade payables | 11,136 | 12,688 |
| - Other current liabilities (3) | 17,580 | 18,519 |
| Total current liabilities | 38,594 | 40,963 |
| Liabilities held for sale | 1,376 | - |
| TOTAL LIABILITIES | 101,399 | 103,021 |
| Milioni di euro | First nine months | |
|---|---|---|
| 2017 | 2016 | |
| Income before taxes | 5,168 | 5,579 |
| Adjustments for: | ||
| Depreciation, amortization and impairment losses | 4,233 | 4,321 |
| Financial (income)/expense | 2,163 | 2,177 |
| Net income of equity investments accounting for using the equity method | (114) | (67) |
| Changes in net working capital: | (1,748) | (1,177) |
| - Inventories | (373) | 196 |
| - Trade receivables | (70) | (715) |
| - Trade payables | (1,588) | (463) |
| - Other activities and liabilities | 283 | (195) |
| Interest and other income/expense financial paid and collected | (1,144) | (2,082) |
| Other changes | (1,397) | (1,985) |
| Cash flows from operating activities (a) | 7,161 | 6,766 |
| Investments in property, plant and equipment and in intangible assets | (5,547) | (5,504) |
| Investments in entities (or business units) less cash and cash equivalents acquired | (864) | (31) |
| Disposals of entities (or business unit) less cash and cash equivalents sold | 19 | 727 |
| (Increase)/Decrease in other investing activities | 155 | 40 |
| Cash flows from investing/disinvesting activities (b) | (6,237) | (4,768) |
| Financial debt (new long-term borrowing) | 8,208 | 1,737 |
| Financial debt (repayments and other net changes) | (8,765) | (5,609) |
| Operations on non-controlling interest | (408) | (202) |
| Dividends and interim dividends paid | (2,782) | (2,442) |
| Cash flows from financing activities (c) | (3,747) | (6,516) |
| Impact of exchange rate fluctuations on cash and cash equivalents (d) | (295) | 151 |
| Increase/(Decrease) in cash and cash equivalents (a+b+c+d) | (3,118) | (4,367) |
| Cash and cash equivalents at beginning of the period (1) | 8,326 | 10,790 |
| Cash and cash equivalents at the end of the period (2) | 5,208 | 6,423 |
(1) O f which cash and cash equivalents equal to €8,290 million at January 1, 2017 (€10,639 million at January 1, 2016), short-term securities equal to €36 million at January 1, 2017 (€1 million at January 1, 2016) and cash and cash equivalents pertaining to "Assets held for sale" in the amount of €150 million at January 1, 2016.
(2) O f which cash and cash equivalents equal to €5,127 million at September 30, 2017 (€6,391 million at September 30, 2016), short-term securities equal to €67 million at September 30, 2017 (€30 million at September 30, 2016) and cash and cash equivalents pertaining to "Assets held for sale" in the amount of €14 million at September 30, 2017 (€2 million at September 30, 2016).
| Fine Comunicato n.0116-87 | Numero di Pagine: 22 |
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