Edison's revenues rise by 13,1% to 8,591 billion in the first nine months of 2011 but the gross operating margin (ebitda) fell by 22,9% to 717 million. And the group, in the aftermath of the agreement between the shareholders which will give control to the French, scores a loss of 93 million. Net financial debt also rose as at 30 September: 4,104 billion euro from 3.708 million at the end of December 2010. However, Edison confirms the Ebitda estimates for the current year to 900 million euros thanks to the performance of operations and the renegotiation of long-term gas procurement contracts with Promgas (Russian gas) and Eni (Norwegian gas).
“In the natural gas market, the contraction in marketing margins continues, while in the electricity market, production overcapacity persists due to the entry into operation of new plants. In particular, the increase in the production of electricity from coal-fired plants and from renewable sources has further increased the pressure on margins in the peak hour bands”, comments the group.
The reference scenario is characterized by a slight recovery in national electricity consumption (+1,7% compared to the same period of 2010), values however still far from the pre-crisis values of 2008, and by a reduction in natural gas consumption (-4,2%). The group's revenues were thus mainly driven by electricity (+13,2%) thanks to the increase in average sales prices and partly to volumes. Stable contribution from Hydrocarbons (+1,8%) thanks to the increase in prices which made it possible to offset the decline in volumes.
But the strong competitive pressure and the reduced contribution of the Cip 9/92 sector led to a double-digit decline in Ebitda (-22,9%). In particular, the hydrocarbons sector was impacted by the natural gas trading activity which shows negative unit sales margins despite the income linked to the positive conclusion of the renegotiations of long-term natural gas import contracts from Russia and Norway . On this front, the group points out the positive effect ofhydrocarbon exploration and production activity which increased by 20,6% (compared to the same period a year ago) thanks to an oil scenario on the rise and the increase in foreign hydrocarbon production, in particular from the Abu Qir fields in Egypt.
On the electricity front, the operating margin was affected by the lack of contribution from the CIP 6/92 benefit for some plants, following the early termination of the agreements carried out in December 2010, and the reduction in electricity sales margins on the free market .
Ebit thus drops to 149 million euro from 368 in the first 9 months of 2010. But the net operating result was also affected by write-downs of around 70 million euro relating to some thermoelectric plants in Italy and some assets abroad (Greece and Croatia).
The pre-tax result is positive for 4 million euros, the group archives a loss of 93 million euros against the 179 million profit of the same period of 2010. The impact of the Robin Hood tax also affected this result, with an impact of 23 million euros "as a consequence on the one hand of the temporary rate increase and on the other of the extension of applicability to other segments of the electricity and hydrocarbons sector".
In terms of debt, which is on the increase, Edison points out that on 19 July 2011 the bond loan was repaid, at a floating rate, issued in 2004 with a nominal value of 500 million euro. Investments of 406 million euro were then made in the nine months to strengthen the Exploration and Production sector in Egypt and Italy and to develop generation capacity in renewable sources in the hydroelectric, wind and photovoltaic sectors.
The stock drops 3,22%. In the afternoon, the board of directors of Delmi, the holding company that brings together the Italian shareholders, was summoned to discuss the agreement reached yesterday with the French shareholders of Edf. The meeting will serve to extend the deadline of October 31, the date by which Edison's syndicate agreements expire, to allow yesterday's agreements to be formalised. The agreements also include the concession to Italian shareholders of a three-year cash put on 25% of Edison. Unlike the agreements of last March, in exchange for the sale of the remaining residual part of Edison, the Italian shareholders will obtain Edens, Edison's subsidiary in the renewable energy sector.
