Net profit from Continuing Operations, i.e. excluding E&P discontinued operations, grew significantly to 134 million euros (+45.7% from 92 million euros in the same period of 2018). Following the agreement for the disposal of the E&P activities, the net result was -386 million euros.
Net financial debt came to 779 million euros, up from 416 million euros at December 31, 2018, as a result of acquisitions of renewable assets and the adoption of the new accounting standard IFRS 16.
Milan, October 30, 2019 - Edison's Board of Directors, which met yesterday, reviewed the Quarterly Report at September 30, 2019 ending with a significant increase in EBITDA (+35.3% to 456 million euros compared with 337 million euros in 2018), thanks to the contribution of the electric power generation, in particular renewables, and natural gas sectors.
In light of the agreement for the disposal of the E&P activities, the results of the Exploration & Production business were considered as Discontinued Operations (divestment businesses) and therefore did not contribute to sales revenues and EBITDA1.
The good operating performance led to a positive net profit from Continuing Operations of 134 million euros (+45.7% compared with 92 million euros in the same period of 2018). The Group's net loss of -386 million euros is the result of write-downs related to the agreement to sell the E&P business.
Net financial debt at September 30, 2019 amounted to 779 million euros, up from 416 million euros at December 31, 2018, as a result of the application from January 2019 of the new accounting standard IFRS162 and, above all, of the acquisition that brought 293 MW of renewable capacity within the scope of the company. With this investment, Edison becomes the second largest operator in the wind power sector in Italy and lays the foundations for the development of photovoltaic generation.
EDISON GROUP HIGHLIGHTS
|in millions of euros
||9 months 2019
||9 months 20182
|Profit (Loss) from continuing operations
|Group interest in Profit (Loss)
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1 These amounts exclude the contribution of E&P activities, which are classified as discontinued operations pursuant to international accounting standard IFRS5. The values for 2018 were consequently restated to allow a consistent comparison (E&P EBITDA of 283 million euros in the first 9 months of 2018).
2 Edison has applied the new international accounting standard IFRS 16 “Leases” prospectively from January 1, 2019, i.e. without restatement of the comparative data.