Net income from continuing operations, i.e. excluding E&P discontinued operations, stood at 44 million euros (69 million euros in the same period of 2019). The Edison Group’s net result, which includes E&P, was negative for 12 million euros (+79 million euros in the first quarter of 2019).
Milan, May 14, 2020 – Edison’s Board of Directors, which met today, examined the Quarterly Report at March 31, 2020 closing with EBITDA essentially in line with the same period of the previous year (180 million euros compared to 178 million euros), despite the marked deterioration in the macroeconomic scenario caused by the Covid-19 health emergency. The flexibility of pipeline gas import contracts and, in particular, renewable generation contributed to the result. The data of the quarter record the contribution of the acquisitions made in 2019, thanks to which Edison became the second wind operator, laid the foundations for development in the photovoltaic sector and affirmed its position as an integrated player throughout the entire renewables chain, which range from development to production, to the management and sale of sustainable energy.
In light of the agreement for the disposal of the E&P activities, the results of the Exploration & Production business (considered as discontinued operations) did not contribute to sales revenues and EBITDA (1). These discontinued operations instead impacted the net result of the Edison Group, which was negative for 12 million euros compared to positive 79 million euros in the first quarter of 2019. The result was impacted by the net loss of 52 million euros, which includes the revision to the terms of the agreement for the sale of E&P activities to Energean Oil and Gas, as a result of the changed scenario in the Brent and gas markets.
The health emergency determined a significant worsening in the macroeconomic scenario, with effects on both demand and prices of the electricity and gas. Overall, the impacts of Covid-19 on Edison’s results in the first quarter of 2020 were contained, but it is difficult to evaluate the repercussions for the rest of the year. Therefore, Edison believes it premature to confirm the previous forecast for 2020 EBITDA. Despite this context, Edison maintains a solid economic and financial profile and can draw on adequate liquidity reserves to support both its operating requirements and business development plans.
(1) The income statement items which contribute to the net result from Continuing Operations exclude the contribution of E&P activities, classified as Discontinued Operations pursuant to IFRS 5. The values in the first quarter of 2019 were subsequently re-stated to allow a homogeneous comparison (E&P EBITDA of 77 million euros in the first three months of 2019). The comments reported hereunder therefore relate to “Continuing Operations”.
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