The following table shows the composition of and changes in net financial debt:
|Milions of euro|
|at Dec. 31, 2018||at Dec. 31, 2017||Change|
|- bank borrowings||1,048||1,039||9|
|- debt assumed and loans from subsidiaries||4,141||1,200||2,941|
|- financial receivables due from others||(128)||(6)||(122)|
|Net long-term debt||13,269||10,774||2,495|
|- short-term portion of long-term borrowings||806||3,654||(2,848)|
|- short-term bank borrowings||45||245||(200)|
|- cash collateral received||240||256||(16)|
|- short-term portion of long-term financial receivables||(1)||(1) -|
|- short-term portion of loans assumed/granted||-||(27) 27|
|- other short-term financial receivables||(12)||1||(13)|
|- cash collateral paid||(1,253)||(2,074)||821|
|- net short-term financial position with Group companies||4,403||2,912||1,491|
|- cash and cash equivalents and short-term securities||(2,007)||(2,489)||482|
|Net short-term debt/(liquidity)||2,221||2,477||(256)|
|NET FINANCIAL DEBT||15,490||13,251||2,239|
Net financial debt at December 31, 2018, amounted to €15,490 million, an increase of €2,239 million, the result of an increase in the net long-term debtor position of €2,495 million, partly offset by a decrease of €256 million in net short-term financial debt.
The main transactions in 2018 impacting financial debt can be summarized as follows:
- a net decrease of €333 million in bonds due to implementation of the bond portfolio restructuring program, by way of the renegotiation and concomitant new issue of hybrid bonds in May;
- the increase, compared with the amount recognized at December 31, 2017, of long-term loans from subsidiaries, in particular the loan agreements between Enel SpA and Enel Finance International NV signed in June and December for a total of €2,250 million, as well as the loan from the same company following the merger of the subsidiary Enel Holding Chile Srl in the amount of €691 million;
- the decrease of €2,848 million in the short-term portion of long-term loans due to redemptions of bonds maturing during the year, partially offset by new issues that matured;
- a decrease of €200 million in short-term bank borrowings;
- a decrease in cash collateral paid to banks in the amount of €821 million;
- an increase of €1,491 million in the net debtor position with Group companies on the intercompany current account.
Cash and cash equivalents amounted to €2,007 million, a decrease of €482 million compared with December 31, 2017, reflecting normal operations related to the centralized treasury functions performed by the Parent Company.
|Milions of euro|
|Cash and cash equivalents at the start of the year||2,489||3,038||(549)|
|Cash flows from operating activities||3,449||2,465||984|
|Cash flows from investing/disinvesting activities||(2,587)||(48)||(2,539)|
|Cash flows from financing activities||(1,344)||(2,966)||1,622|
|Cash and cash equivalents at year end||2,007||2,489||(482)|
Cash flows from financing activities came to a negative €1,344 million (€2,966 million in 2017). They reflected the repayment of bonds and the payment of dividends for 2017 (€2,410 million).
Cash flows from investing activities were a negative €2,587 million (€48 million in 2017), and were essentially generated by the net effect of the operation involving Enel SpA’s acquisition of the investments held by Enel Investment Holding BV, a wholly owned Dutch subsidiary, in the Romanian companies, in Enel Russia and RusEnergoSbyt and in the Dutch company Enel Insurance NV, as well as the recapitalization of the subsidiaries e-distribuzione SpA and Enel X Srl.
The cash requirements generated by financing and investing activities were funded by cash flows generated by operating activities (a positive €3,449 million, compared with €2,465 million in 2017), essentially reflecting dividends received from subsidiaries (€3,510 million) and the use of cash and cash equivalents, which at December 31, 2018 consequently amounted to €2,007 million (€2,489 million at the start of the year).