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Performance data

Revenuericavi

Revenue for 2018 amounted to €75,672 million, an increase of €1,033 million (+1.4%) compared with 2017. The rise is mainly due to an increase in revenue from the Enel Green Power Business Line in Italy, Spain and South America, an increase in sales on the free market in Italy and changes in the scope of consolidation, in particular the acquisition of Enel Distribuição São Paulo, as well as the capital gain and fair value remeasurement from the partial disposal with loss of control of eight companies in the Enel Green Power Business Line in Mexico (€190 million).

These effects were partially offset by unfavorable exchange rate developments, mainly in South America.

Revenue in 2018 included the gain on the disposal of EF Solare Italia (€65 million) and the indemnity connected with the sale in 2009 of Enel Rete Gas (€128 million), which do not form part of ordinary revenue.

In 2017, this item mainly included the gain on the sale of the Chilean company Electrogas (€143 million).

Milions of Euros
201820172018-2017
Italy38,39838,781(383)-1.0%
Iberia19,49219,994(502)-2.5%
South America14,74213,1541,58812.1%
Europe and Euro-Mediterranean Affairs2,3612,411(50)-2.1%
North and central America1,4381,18725121.1%
Africa. Asia e Oceania1019655.2%
Other. eliminations and adjustments(860)(984)12412.6%
Total75,67274,6391,0331.4%

Gross operating margin

margine operativo

The gross operating margin for 2018 amounted to €16,351 million, increasing by €698 million (+4.5%) compared with 2017 despite unfavorable exchange rate developments (€543 million). The increase in the operating margin is mainly attributable to the Enel Green Power Business Line in Italy, Spain and South America and the free market in Italy, plus the effect of the acquisition of Enel Distribuição São Paulo and the capitalization of customer acquisition costs in the amount of €220 million in accordance with the provisions of the new accounting standard IFRS 15.

The gross operating margin also increased due to the gains and the remeasurement at fair value, following partial disposal with loss of control, of eight Mexican project companies (€190 million) and the following items not considered in the determination of the ordinary gross operating margin:

  • the capital gain on the sale of EF Solare Italia (€65 million);
  • the indemnity received by e-distribuzione in connection with the 2009 sale of Enel Rete Gas (€128 million).

These increases are partly offset by the effect of the gain recorded in the previous year on the sale of the Chilean company Electrogas (€143 million), net of the loss recognized in South America following the abandonment of hydroelectric projects in Chile and Colombia in the amount of €45 million.

The following table shows the performance of the gross operating margin by geographical area:

Milions of Euro
201820172018-2017
Italy7,3046,8634416.4%
Iberia3,5583,573(15)-0.4%
South America4,3704,2041663.9%
Europe and Euro-Mediterranean Affairs516543(27)-5.0%
North and center America708759(51)-6.7%
Africa. Asia e Oceania5457(3)-5.3%
Others(159)(346)18754.0%
Total16,35115,6536984.5%

The ordinary gross operating margin amounted to €16,158 million, an increase of €603 million compared with 2017 (+3.9%). Items in 2018 that are not included in the ordinary gross operating margin amounted to €193 million. They included:

  • the indemnity received in connection with the 2009 sale of Enel Rete Gas (€128 million);
  • the capital gain on the sale of EF Solare Italia of €65 million.

As noted above, the items excluded from the ordinary gross operating margin in 2017 were the gain of €143 million on the sale of Electrogas and the loss recognized following the abandonment of hydroelectric projects in Chile and Colombia in the amount of €45 million.

Milions of Euro
201820172018-2017
Italy7,1116,8632483.6%
Iberia3,5583,573(15)-0.4%
South America4,3704,1062646.4%
Europe and Euro-Mediterranean Affairs516543(27)-5.0%
North and center America708759(51)-6.7%
Africa. Asia e Oceania5457(3)-5.3%
Others(159)(346)18754.0%
Total16,15815,5556033.9%

Operating incomerisultato operativo

Operating income in 2018 amounted to €9,900 million, an increase of €108 million compared with 2017 (€9,792 million) despite an increase of €590 million in depreciation, amortization and impairment. That rise is attributable to the capitalization of customer acquisition costs, which increased amortization by €166 million, the acquisition of Enel Distribuição São Paulo (€93 million) and the effect of the increase in impairment recognized in 2018 compared with 2017. In this regard, please note:

  • the writedown of two generation units at the Spanish generation plant at Alcúdia (€82 million);
  • the writedown of the LNG regasification plant of Nuove Energie (€24 million);
  • the impairment of a number of conventional (€23 million) and renewable (€94 million) generation plants in Italy;
  • an increase in impairment on certain trade receivables (€186 million), mainly in Italy.

These increases were partly offset by unfavorable exchange rate developments in South America, as well as by the reversal of the impairment of the EGP Hellas CGU (€117 million) and the impairment recognized the previous year on geothermal development activities in Germany through the subsidiary Erdwärme Oberland GmbH (€42 million).

Milions of Euro
201820172018-2017
Italy4,4984,470280.6%
Iberia1,7241,1842(118)-6.4%
South America2,9762,97060.2%
Europe and Euro-Mediterranean Affairs42030611437.3%
North and central America454553(99)-17.9%
Africa. Asia e Oceania1015(5)-33.3%
Others(182)(364)18250.0%
Total9,9009,7921081.1%

Ordinary operating income, which does not include the items discussed above with reference to the ordinary gross operating margin and does not consider the effects of the impairment mentioned earlier (Alcúdia, Nuove Energie and biomass and solar operations in Italy, net of the reversal of the impairment on the EGP Hellas CGU), amounted to €9,793 million, an increase of €57 million (+0.6%) compared with 2017

Milions of Euro
201820172018-2017
Italy4,4264,470(44)-1.0%
Iberia1,8061,842(36)-2.0%
South America2,9762,8721043.6%
Europe and Euro-Mediterranean Affairs303348(45)-12.9%
North and Central America454553(99)-17.9%
Africa. Asia e Oceania1015(5)-33.3%
Others(182)(364)18250.0%
Total9,7939,763570.6%

Net incomerisultato netto

Net income attributable to shareholders of the Parent Company amounted to €4,789 million in 2018, compared with €3,779 million the previous year.

More specifically, the increase in operating income was further improved by:

  • the value adjustment of both the financial receivable (€320 million) relating to the partial sale of Slovenské elektrárne and the investment, measured at equity, in Slovak Power Holding (€362 million);
  • the decrease in the tax burden, mainly due to the recognition of deferred tax assets on prior-year losses at Enel Distribuição Goiás (€274 million) and at Enel Green Power SpA (€85 million in respect of 3Sun following its merger with Enel Green Power SpA during the year).

These effects are partly mitigated by:

  • the writedown of the assets of a number of equity investments measured at equity in Greece, associated with the resizing of a wind farm development project in the Cyclades;
  • the gain in 2017 on the disposal of Bayan Resources (€52 million) and the revaluation in 2017 of the investment in Slovak Power Holding (€28 million);
  • a decrease in taxes in the United States and Argentina following the release of deferred taxes following the US tax reform and the deferred tax assets recognized on prior-year losses by Edesur.

Ordinary net income attributable to shareholders of the Parent Company in 2018 amounted to €4,060 million, an increase of €351 million compared with 2017 (€3,709 million).

The following table provides a reconciliation of net income and ordinary net income attributable to shareholders of the Parent Company, reporting the non-ordinary items and their respective impacts on net income, excluding the associated tax effects and non-controlling interests.

Milions of Euro
2018
Net income attributable to shareholders of the Parent Company4,789
Indemnity for the disposal of e-distribuzione’s investment in Enel Rete Gas(128)
Writeback of assets of Slovenské elektrárne(646)
Writedown of Alcúdia plant (Spain)43
Reversal of impairment on the EGP Hellas CGU and impairment of wind projects (Cyclades)(39)
Gain on disposal of EF Solare Italia(64)
Writedown of the Nuove Energie CGU20
Net writedown of biomass and solar plants in Italy85
Ordinary net income attributable to shareholders of the Parent Company (1)4,060

(1) Taking account of tax effect and non-controlling interests.