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Analysis of the financial position

Milions of euro   
 at Dec. 31, 2018at Dec. 31, 20172018-2017
Net non-current assets:   
property, plant and equipment and intangible assets564115
equity investments45,71542,8112,904
net other non-current assets/(liabilities)-472-667195
Total45,29942,1853,114
Net current assets:   
trade receivables191237-46
net other current assets/(liabilities)-1,853-1,612-241
trade payables-82-13755
Total-1,744-1,512-232
Gross capital employed43,55540,6732,882
Sundry provisions:   
employee benefits-231-27342
provisions for risks and charges and net deferred taxes1098722
Total-122-18664
Net capital employed43,43340,4872,946
Shareholders’ equity27,94327,236707
NET FINANCIAL DEBT15,49013,2512,239

Net non-current assets amounted to €45,299, an increase of €3,114 million. This was attributable to:

  • an increase of €2,904 million in the value of equity investments, which were essentially affected by the following transactions: the recapitalization of the subsidiaries e-distribuzione SpA (€2,275 million) and Enel X Srl (€518 million); the payment on capital account to the joint venture OpEn Fiber SpA (€125 million); the acquisition of the investments held by Enel Investment Holding BV, a wholly owned Dutch subsidiary, in the Russian companies Enel Russia PSJC and RusEnergoSbyt LLC, and in the Romanian companies Enel Romania SA, E-Distribuţie Banat SA, E-Distribuţie Dobrogea SA, E-Distribuţie Muntenia SA, Enel Energie SA, and Enel Energie Muntenia SA, as well as in the Dutch company Enel Insurance NV for a total value of €2,922 million; the reduction in the value of the equity investment in Enel Investment Holding BV (€4,002 million) following the reduction of its share capital (€1,592 million) and the distribution of the share premium reserve (€2,410 million). The adjustments to the value of the investments held in Enel Produzione SpA, Enel Investment Holding BV and Enel Russia PJSC also had an effect;
  • an increase of €195 million in net other non-current assets/(liabilities), which at December 31, 2018 showed a net liability of €472 million (net other non-current liabilities of €667 million at December 31, 2017). The change is essentially attributable to the decrease in the value of non-current derivative liabilities (€875 million), which was partially offset by the decrease in the value of noncurrent derivative assets (€662 million);
  • the €15 million change in property, plant and equipment and intangible assets resulting from capital expenditure (totaling €34 million), depreciation and amortization (€17 million) for the year, and the transfer of intangible assets to Enel Global Infrastructure & Networks Srl, Enel Global Thermal Generation Srl, and Enel Italia Srl (€2 million).

Net current assets came to a negative €1,744 million, an increase of €232 million on December 31, 2017. The change is attributable to:

  • an increase of €241 million in net other current liabilities, mainly reflecting the liability to shareholders for the interim dividend on 2018 earnings approved by the Board of Directors of Enel SpA on November 6, 2018, and to be 90 Annual Report 2018 paid as from January 23, 2019 (equal to €1,432 million in 2018 and €1,068 million in 2017);
  • a decrease of €46 million in trade receivables, mainly in respect of Group companies for management and coordination services from Enel SpA;
  • a decrease of €55 million in trade payables.

Net capital employed came to €43,433 million as at December 31, 2018, and was funded by €27,943 million in shareholders’ equity and €15,490 million in net financial debt.

Shareholders’ equity came to €27,943 million at December 31, 2018, an increase of €707 million on the previous year. More specifically, the change is attributable to the recognition of net income for 2018 (€3,478 million), the distribution of the balance of the dividend for 2017 (totaling €1,342 million), and the interim dividend for 2018 (totaling €1,423 million).

Net financial debt amounted to €15,490 million at the end of the year, with a debt/equity ratio of 55.4% (48.7% at the end of 2017).