Energy consumption does not grow, public incentives decrease, competition becomes more and more heated. The global crisis is also affecting utilities, but encouraging results are arriving from the large European energy groups (turnover +22%, profit +3%, debt +4%) and partly from Italian multiutilities (revenues +20%, sharp reduction in profits -22 % and increase in debt to +52%), which withstood the impact thanks to a more flexible and adaptable organizational model to market needs.
These are the results of the XIII Utilities Observatory of Accenture and Agici Finanza d'Impresa, which analyzes the strategies of the top Italian and European players. The data were presented today in Milan together with exponents of the world of utilities such as Luca Valerio Camerano (Gdf Suez), Pippo Ranci Ortigosa (A2A), Giovanni Brianza (Edison), Roberto Bazzano (FederUtility), Tomaso Tommasi di Vignano (Hera) , Vito Gamberale (F2i), Giancarlo Cremonesi (Acea), Stefano Colombo (Alpiq).
ITALIAN MARKET REPORT
From the analysis of the performance of the main players on the Italian market, a series of critical issues emerge linked to the ongoing global economic crisis, but not only. The business model matters:
– Multiutilities seem to be holding up the crisis better than players active in a single sector. In 2012, the top 10 Italian multiutilities recorded a growth in aggregate revenues of 6% (+20% in the five-year period 2008-2012).
– Lower results for groups focused on energy: +4% compared to 2011 and +15% compared to 2008. Profits increased significantly mainly thanks to Edison, which returned to profit after the significant loss of 2011.
– Utilities operating in the water sector present decidedly attractive and constantly increasing financials, thanks above all to the performance of operators who have adopted a long-term industrial vision (AQP and Smat Torino).
– The results of the players active in the waste sector were less encouraged, underperforming due to the tariffs kept low to satisfy the social needs of the reference community.
In terms of economic sustainability, it should be noted that the net financial position increases for all companies except for the Energy Groups, testifying to the effectiveness of the divestment and refocusing policies on the core business undertaken in recent years. The most relevant liquidity problems are recorded in utilities focused on waste.
In summary, the Utilities are discounting the effects of the global crisis, albeit with a certain delay and with considerable differences between the various companies. In particular, a drop in demand, growing competition and the crisis of public and private finance are weighing.
Added to this are typical Italian criticalities such as the uncertain regulatory framework and the absence of an industrial policy. However, causes internal to companies should not be forgotten: in fact, there is ample room for improvement in the efficiency and effectiveness of management.
Regarding the actions to relaunch the sector, the study highlights the essential role of the public entity, the final objective must be that of enhancing the local public services sector as a whole, seen (finally) as a crucial factor for local development and growth and nationally, also through the attraction of new foreign investments.
“The reasons for the utility crisis – says Professor Gilardoni, president of the Observatory and professor at Bocconi University – are many and not entirely attributable to the more general global economic and financial crisis. The SPL sector (local public services) – continues Gilardoni – must necessarily be valorised because it is fundamental for the country system. Hence the identification of a series of possible actions to relaunch the sector, primarily policy actions, within a renewed industrial policy framework: valorisation of the various forms of proven public partnership, incentives for competition, preparation of a Consolidated Act for the SPL, independent Authorities in all sectors, renewed role of institutions (above all Cassa Depositi e Prestiti)”.
