Despite the economic crisis triggered by Covid-19, which negatively impacted 2020 EBITDA by an estimated 59 million euros, the Group’s profit margins are up, thanks especially to renewables. Edison Group closed the 2020 with a return to profit after the -436 million euros in 2019 due to the net loss from E&P activities subject to disposal. The net profit from Continuing Operations, i.e., excluding the discontinued E&P operations, came to 191 million euros in 2020 (+35.5% compared to 2019). The sale of all its operated E&P activities marked a crucial step forward in Edison’s strategic development plan through which it aims to lead Italy’s energy transition.
Milan, February 18, 2021 – Edison’s Board of Directors met yesterday and examined the financial statements at December 31, 2020, which show business performance that exceeded expectations, despite the impact of Covid-19.
In 2020, EBITDA grew by 13.6% to 684 million euros, mainly thanks to the contribution of Electric Power Operations, which benefited from the increase in energy generation from renewables. In the second half of 2019, Edison had expanded its perimeter, becoming Italy’s second largest wind power operator, a position that it has now consolidated by increasing its stake in E2i Energie Speciali to 100%. The contribution of Gas Operations was also positive, driven, among other things, by the optimised flexibility of contracts for the importation of gas via pipeline.
The Group ended 2020 with a return to profit: the net result was positive for 19 million euros, compared to a loss of 436 million euros in 2019, which was more affected by the write-downs of E&P assets held for sale. The net profit from Continuing Operations, i.e., excluding the E&P activities subject to the sale, came to 191 million euros (+35.5% compared to 2019).
Net financial debt at December 31, 2020 is stable at 513 million euros, compared to 516 million euros at December 31, 2019, and is the combined result of a lively dynamic in investments, a positive business performance and the disposal of the Discontinued Operations.
In 2020, the sale of all its operated E&P activities marked a crucial step forward in Edison’s strategic development plan through which it aims to lead Italy’s energy transition, in line with the objectives of Italy’s National Energy and Climate Plan and the European Green Deal.
EDISON GROUP HIGHLIGHTS
| in millions of euro |
2020 (1) |
2019 (1) |
|---|
| Sales revenues |
6.390 |
8.198 |
| EBITDA |
684 |
602 |
| EBIT |
239 |
174 |
| Net profit from continuing operations |
191 |
141 |
| Group interest in profit (loss) |
19 |
(436) |
(1) In accordance with IFRS 5, the economic items that contribute to the profit from continuing operations: (i) exclude the contribution of the E&P activities in the scope of the sale to Energean, which have been classified as discontinued operations; (ii) include the contribution of the E&P activities in Algeria and Norway, which remain within the Edison perimeter and which were retrospectively reconsolidated as from January 1, 2020. The 2019 figures have been restated accordingly for comparative purposes.
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