“We are very pleased with the results obtained in 2016, which stem from the excellent implementation of our strategy. Specifically, ordinary EBITDA was higher than both market expectations and the target announced in November, notwithstanding the challenging macroeconomic environment. Growth in renewables, efficient cost management, robust margins realised in Latin America and positive developments to the retail sector in mature markets enabled Enel to overcome lower revenues and unfavourable exchange rates. The solid results attained in 2016 also allow us to confirm our Group plan targets, continuing to implement Enel’s new 2017-19 strategy”
Revenues amounted to 70.6 billion euros, down 6.7% on the 75.7 billion euros posted in 2015. This drop reflects the decrease in revenues from the sale of electricity in mature markets, the decline in sales of electricity generated (due in part to the deconsolidation of the Slovakian company Slovenské elektrárne in July 2016), the reduction in electricity trading operations, lower revenues from distribution tariffs in Italy and unfavourable exchange rates, notably in Latin America.
Ordinary EBITDA amounted to 15.2 billion euros, up 1.3% on the 15 billion euros reported in 2015, reflecting the improved margins in most of the geographical areas in which the Group operates, especially in Latin America (both in electricity generation and in the distribution and sale of electricity) and in the mature retail markets in Italy and Spain. These positive effects were only partly offset by adverse developments in exchange rates and the lower margins from conventional generation, which was also affected by the deconsolidation of the Slovakian assets.
EBITDA, which includes the effects of extraordinary transactions (2), was 15.3 billion euros, unchanged on the previous year.
Net financial debt at the end of 2016 amounted to 37.6 billion euros, +0.3% on the figure at the end of 2015. The deviation from the targets presented to the financial community (3) is attributable to the significant variation in exchange rates recorded in the final months of 2016, especially with regard to the US dollar and the pound sterling.
Employees at the end of 2016 numbered 62,080 (67,914 at the end of 2015).
In 2016, in Italy the Enel Group generated 261.8 TWh of electricity (284 TWh in 2015), distributed 426 TWh on its networks (427.4 TWh in 2015) and sold 263 TWh (260.1 TWh in 2015).
More specifically, in 2016 the Enel Group generated 200.9 TWh of electricity (215.5 TWh in 2015), distributed 202.5 TWh (200.3 TWh in 2015) and sold 168.9 TWh (172.1 TWh in 2015) outside Italy.
(1) Not including the debt of “Assets held for sale”.
(2) 2016 extraordinary items mainly related to the capital gains on the sale of GNL Quintero and Hydro Dolomiti Enel as well as the losses resulting from the definitive abandonment of the development of a number of hydropower projects in Chile and Peru. 2015 extraordinary items related to the capital gain on the sale of SE Hydropower as well as the negative goodwill and concomitant fair value adjustment of 3Sun.
(3) Net financial debt target of 37.2 billion euros, based on exchange rate assumptions of 1.08 for euro/US dollar and 0.88 for euro/pound sterlingvs. an actual exchange rate of 1.05 for euro/US dollar and 0.86 for euro/pound sterling.