Net profit up by 86 million euros (+36% to 323 million euros compared to 30 September 2015) thanks to excellent operating results and the benefits deriving from the Edipower demerger
Ordinary Net Profit at 281 million euros, up by 44 million euros (+19%)
Gross Operating Margin at 872 million euros (+7%): excellent industrial performances in all BUs, cost efficiencies and non-recurring operating income more than neutralized the strong deterioration in the energy scenario
The Net Financial Position, excluding the acquisition of LGH, was down by a further 124 million euros (to 2,773 million euros)
The effects of acquiring 51% of the Share Capital of Linea Group Holding, amounting to 469 million euros, bring the total NFP to 3,242 million euros
Milan, 10 November 2016 – At today’s meeting of the Board of Directors of A2A S.p.A., chaired by Mr Giovanni Valotti, the Board examined and approved the Interim Report on operations at 30 September 2016.
The first nine months of 2016 were characterized by the particularly penalising energy and climatic scenario which recorded a downturn in the electricity demand (-3%) as well as a considerable, generalised reduction in the commodity prices (oil -24%; gas -36%; PUN Baseload -27%).
Despite this unfavourable energy scenario, which, with respect to the corresponding period of 2015, had a negative impact of around 80 million euros on the contribution margins of the generation plants portfolio, the Group's industrial performance in all BUs in the first nine months of 2016 was excellent and made it possible, together with the adjustment obtained, relating to the recognition of previous tariff items (for the financial years 2007-2011) in the water cycle, to completely neutralize the negative effects caused by the aforementioned scenario and achieve a Gross Operating Margin of 872 million euros (that is 781 million euros net of the non-recurring items). The contribution at Gross Operating Margin level deriving from the consolidation of LGH from 1 August 2016 was positive and equal to 7 million euros.
The “Ordinary” Net Profit, amounting to 281 million euros, was up by 44 million euros compared to the first nine months of 2015 (237 million euros at 30 September 2015). This Ordinary Net Profit excludes the extraordinary items (overall amounting to 42 million euros) that can be associated with the effects produced by the partial, non-proportional demerger of Edipower in favour of Cellina Energy S.r.l., effective as of 1 January 2016.
The 'reported' net profit, amounting to 323 million euros, was up by 36% compared to the first nine months of the previous year.
During the period, the generation of net cash flow was positive and amounted to 124 million euros, after investments of 233 million euros and the payment of dividends for 126 million euros. This generation of cash partially offset the effect of the first consolidation of the net financial position of LGH (net financial position negative by 379 million euros at 31 July 2016) and the outlay relating to the acquisition (overall amounting to 90 million euros), thereby resulting in a Net Financial Position at 30 September 2016 of 3,242 million euros (2,897 million euros at 31 December 2015). Note that, net of these effects, the Net Financial Position of the A2A Group would have amounted to 2,773 million euros.
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