The one that Edison published in the early hours of Thursday is a double-fold six-monthly. Industrial management improves and grows significantly but the effect of hedging derivatives on price dynamics and some disposals put the second quarter in the red and consequently impact the entire period. Edison closed the first half of 2017 with sales revenues of 4,968 billion from 5,46 billion in the same period of 2016. The Gross Operating Margin (Ebitda) grew by 25,3% settling at 426 million from 340 million in the first half of 2016, with a real exploit of the hydrocarbon chain (+33,5%). So much so that the group estimates EBITDA to rise to 700 million by the end of the year. The pre-tax result was negative by 57 million euros (-36 million in the first half of 2016) also due to the disposals communicated so far. The loss for the first half is 140 million, the debts drop to 780 million from 1 billion at the end of 2016.
In the period April-June of the current year, the group led by Marc Benayoun recorded sales revenues of 2,17 billion euros, down by 11,1% compared to the same period of 2016 due to lower revenues from hedging derivative contracts in relation to price dynamics, which above all had an impact on the hydrocarbons chain. The revenues of this business sector, equal to 1,19 billion, have in fact suffered a contraction of 7% on an annual basis, despite the increase in sales. The reduction in revenues from the electricity sector was more sustained (-10,2% on an annual basis), equal to 1,16 billion, due to the decrease in volumes sold due to a different portfolio optimization, which more than offset the increase in average selling prices.
Fenice, a company specializing in energy efficiency and environmental services, was consolidated starting from 1 April 2016 and, therefore, the comparison between the 2nd quarter of 2017 and that of 2016 in relation to these activities is homogeneous.
The characteristic management performance is excellent. Edison's Ebitda in the 2nd quarter of 2017 increased by 17,3% on an annual basis, reaching 197 million thanks to the good operating performance of all business areas. In particular, the adjusted EBITDA of the hydrocarbons business jumped by 22% compared to the 2nd quarter of 2016 thanks to the recovery of the oil scenario, which translated into a higher profitability of the hydrocarbon exploration and production activity. There was also a marked improvement in the gas trading activity which contributes approximately two thirds to the adjusted EBITDA of the sector. The adjusted EBITDA of the electricity business recorded an increase of 11,8% on an annual basis, rising to 57 million from 51 million in the 2nd quarter of 2016, which included a positive non-recurring item linked to the transaction with Sel for the plants on the Cellina river, mainly benefiting from the higher margins recorded in thermoelectric generation.
The Ebit of the Foro Buonaparte group was positive by 11 million, down sharply compared to 55 million in the 2nd quarter of 2016. The result was heavily affected by change in the fair value relating to the hedging of commodities and exchange rates which was negative by 63 million against a positive value of 15 million recorded in the 2nd quarter of 2016. For these reasons, in the period April-June 2017 the pre-tax result was negative by 61 million, compared to a positive value of 36 million in the 2nd quarter of 2016, and despite the improvement in the cost of debt which had recorded non-recurring charges last year. The results also had an impact on the disposal transactions (Adriatic Lng, Itg and European Institute of Oncology) which had a negative impact of 48 million on the quarter. Edison thus ended the 2nd quarter of the current year with a net loss of 121 million, compared to the profit of 9 million recorded in the same period of 2016. In terms of the balance sheet, the net financial debt at June 30 2017 of the group controlled by Edf was equal to 780 million, an improvement compared to 934 billion recorded at the end of last March, thanks to the generation of cash deriving from the performance of the industrial activity and the improvement in working capital management.
