Edison

TO THE SHAREHOLDERS

The achievement of positive overall results enabled Edison to maintain a strong balance sheet and a healthy financial position, while it implemented the most ambitious capital investment program in its history (1,745 million euros). Specifically, in January 2009, the Group finalized the acquisition of a twenty-year concession for the exploration, production and development rights of the Abu Qir fields, in Egypt, from the Egyptian government and the Egyptian General Petroleum Corporation, at a cost of more than 1 billion euros. The Abu Qir fields produce about 1.5 billion cubic meters of natural gas and 1.5 million barrels of oil a year, from reserves totaling 70 billion cubic meters of natural gas equivalents. Edison is planning further investments in Abu Qir, which will double production in the coming years.

Additional investments were earmarked for strategic growth areas: international expansion, renewable energy sources, natural gas storage and completion of the portfolio of Italian generating facilities. Edison’s internationalization continued with ElpEdison, a joint venture with Hellenic Petroleum that created the second largest operator in the Greek market, with 400 MW of generating capacity already in service and an additional 400 MW under construction at the Thisvi power plant. In addition, Edison’s ongoing commitment to growth in the production of energy from renewable sources resulted in the commissioning of new wind farms, raising the Group’s installed capacity to over 400 MW.

The developments that characterized last year’s scenario are unfortunately expected to continue in 2010. However, it is precisely when market conditions are most difficult that the best companies stand out for their ability to counteract the effect of a negative economic environment and seize the opportunities provided by a crisis. It is at these moments that the professionalism of the strongest organizations makes a difference. We are grateful to all of employees and to management for their outstanding performance in the face of great external challenges. The accomplishments of 2009, the Group’s growth strategies, its current capital investment programs and the exceptional ability of its people to react promptly to external change enable us to look at the future with reasonable confidence, with the expectation of delivering satisfactory results to the shareholders in 2010.

Giuliano Zuccoli Chairman	Umberto Quadrino Chief Executive Officer

<< previous