Edison closed the first half of the year with revenues of 3.1 billion euros (-28%) and EBITDA up 11.4% to 380 million euros thanks especially to the contribution of renewables

Despite the economic crisis triggered by Covid-19, which had a negative impact of 47 million euros on the EBITDA for the period, net profit from Continuing Operations, i.e. excluding the held for sale E&P activities, came to 104 million euros (129 million euros in the same period of 2019). The Edison Group’s net result, which includes the held for sale E&P activities, was negative for 65 million euros (-398 million euros in the first half of 2019).

Edison confirms estimates for EBITDA 2020 communicated last February in a range between 560 and 620 million euros.

Milan, July 30, 2020 – Edison’s Board of Directors, which met yesterday, examined the Semiannual Report at June 30, 2020 closing with an EBITDA up by 11.4% to 380 million euros (341 million euros in the same period of last year) and up by 0.5% at the same perimeter, despite the persistence of a considerably deteriorated macroeconomic scenario due to the crisis triggered by the Covid-19 health emergency, which had a negative impact of 47 million euros on the EBITDA for the period.

The result can be attributed to the good operating performance of Edison’s core businesses, particularly Electric Power Operations (+11.2% to 259 million euros), which benefitted from the higher contribution of renewable power generation. Please recall that last year, Edison expanded its perimeter, becoming the second wind operator in Italy and laying the foundations for development in the photovoltaic sector, and affirmed its position as an integrated player throughout the entire renewables business chain.

The contribution of Gas Activities was also positive (+5,0% to 167 million euros), also due to the optimization of the flexibility of pipeline gas import contracts. The result of this business area also takes into account Exploration & Production activities in Algeria and Norway which, following the revisions made to the Energean Plc sale agreement, were excluded from the perimeter of the sale and reconsolidated as of January 2020. The results for the first half of 2019 were therefore restated pursuant to IFRS 5. On the other hand, the remaining assets related to the E&P business in the Mediterranean and the North Sea (UK) were considered discontinued operations, and therefore did not contribute to sales revenues and EBITDA.

Edison has therefore confirmed its strategy of disengagement from E&P activities and investment in energy transition focusing on generation from renewable sources and the latest generation gas, energy efficiency and innovative services for businesses, the public administration and residential customers. The strategy to strengthen in renewables and energy efficiency has found support from the European Investment Bank (EIB), which has signed a 300 million euros Green Framework Loan with Edison, in addition to a 150 million euros loan for upgrade of a latest generation combined cycle plant in Marghera.

Net financial debt at June 30, 2020 rose to 624 million euros (516 million euros at December 31, 2019). Edison maintains a solid economic and financial profile and can draw on significant liquidity reserves to support both its operating requirements and business development plans.

EDISON GROUP HIGHLIGHTS

(1) Pursuant to the international accounting standard IFRS 5, the income statement items that contribute to the result of continuing operations: (i) exclude the contribution of E&P activities falling within the perimeter of sale to Energy Class as Discontinued Operations; (ii) including the contribution of the E&P activities in Algeria and Norway which remain Edison's property, the sale of which is no longer considered effective in the short term, retrospectively reconsolidated from 1 January 2020. The values for the first half of 2019 were re-stated to allow a homogeneous comparison.

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