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Analysis of the Electricity Area

At the end of the first half of 2010, the Electricity Area, which contributes over one third to overall Group turnover showed an increased contribution to the overall profit compared to the same period of 2009, rising from 9.6% to 10.1, as shown in the table below

(millions of Euro)30-06-0930-0610Abs. Change% Change
Area EBITDA26.031.8+5.8+22.3%
Group EBITDA271.3313.5+42.2+15.6%
Percentage9.6%10.1%+0.5 p.p. 

The EBITDA for the area increased from Euro 26.0 million as at 30 June 2009 to Euro 31.8 million as at 30 June 2010.

The main results of the area are briefly summarized below:

Income Statement
(millions of Euro)
30-giu-09Inc.%30-giu-10Inc%Abs. Change% Change
Revenues931.6 646.4 -285.2-30.6%
Operating costs(906.2)-97.3%(608.6)-94.2%-297.6-32.8%
Personnel costs(11.7)-1.3%(12.1)-1.9%+0.4+3.4%
Capitalised costs12.31.3%6.10.9%-6.2-50.6%
EBITDA26.02.8%31.84.9%+5.8+22.3%

Revenues decreased from Euro 931.6 million in the first half of 2009, to Euro 646.4 in 2010, down by 30.6%, mainly linked to the decrease in trading activities and, to a lesser extent, to the reduction in the average market price of electricity.

The table below provides a detailed view on the evolution of revenues by type:

(millions of Euro)30-06-09Inc.%30-06-10Inc%Abs. Change% Change
Revenues from sales327.635.2%340.452.7%+12.8+3.9%
- di cui clienti vincolati29.13.1%-0.0%-29.1-100.0%
- di cui clienti idonei298.532.0%340.452.7%+41.9+14.0%
Revenues from distribution22.92.5%21.73.3%-1.2-5.2%
Trading / other581.262.4%284.444.0%-296.8-51.1%
Altro-0.0%-0.0%+0.0+0.0%
Total revenues931.6100.0%646.4100.0%-285.2-30.6%

Sales revenue increased by 3.9% due to higher volumes sold, resulting from the increased trade activity, partially offset by the aforementioned reduction in the average energy market price. Revenues from distribution decreased compared to the previous year, due to the equalisation of low voltage metering defined by the AEEG, for which please refer to the specific section illustrating the regulatory framework.

The quantitative data of the area, including trading activities, display a volume pattern that reflects the information given hereunder:

Quantitative data30-06-0930-06-10Abs. Change% Change
Volumes sold (Gw/h)3,190.33,710.6+520.3+16.3%
Volumes distributed (Gw/h)1,063.61,077.8+14.2+1.3%

The increase in volumes of distributed volumes shows a recovery of consumption, while the increase in sold volumes is due to the good performance of the trade activity developed.

The reduction in volumes trades and prices proportionally affected the decrease in operating costs for the purchase of raw materials, and the percentage margin increased from 2.8% in 2009 to 4.9% in 2010.

Labour costs increased by Euro 0.4 million, compared to the year 2009, up by 3.4%.

Overall capitalised costs decreased by Euro 6.2 million, due to the aforementioned change in accounting treatment of work carried out internally.

In the first half of 2010, the EBITDA rose from Euro 26.0 million in 2009 to 31.8 million, a percentage increase of 22.3%, due to the greater volumes sold and the higher profitability achieved, which is specifically favourable in the first six months of the current year, as compared to the performance in the previous year.

 
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