20 Equity investments

Transcription

1 20 Equity investments Joint Venture 31-dic dic-13 rettificato Variazioni Elettrogorizia Spa Enomondo Srl Esil Scarl 5 (5) EstEnergy Spa (2.318) Isontina Reti Gas (9.320) Totale (7.397) Collegate Aimag Spa Elettrogorizia Spa (2.067) FlamEnergy Trading Gmbh (1.703) Ghirlandina Solare Srl (9) Q.Thermo Srl (22) Set Spa (80) Sgr Servizi Spa (165) Sosel Spa Tamarete Energia S.r.l (2.471) Totale (5.857) Controllate, joint venture e collegate non consolidate Adrialink Srl Black sea Comp.Compr.Gas Ltd Calor Più Italia Scrl Energo doo Sei Spa Altre minori Totale Altre imprese Calenia Energia Spa (2.073) Energia Italiana Spa (2.110) Galsi Spa Altre minori (6.486) Totale (9.319) The changes in joint ventures and associated companies as compared to 31 December 2013 take into account the proquota profits/losses reported by the respective companies (including the other components of the comprehensive income statement) as well as the reduction of the value for any dividends that were distributed. In addition, the following corporate operations took place:

2 Joint ventures On 24 January 2014, AcegasAps Spa acquired the remaining 50% stake held by Eni Spa in Isontina Reti Gas Spa, becoming the sole shareholder and acquiring control. Beginning from the 2014 financial year, the company has thus been consolidated using the integral method. Affiliate companies It should be noted that, with effect from 1 January 2014, it was resolved that the company FlameEnergy Trading Gmbh would be dissolved, and this company consequently ceased its operations. It should also be noted that the investment in the associate company Tamarete Energia Srl was annulled due to its total write-down in the current year following the results of the impairment test. Equity investments in other companies Energia Italiana Spa The change from the previous financial year is due to the annulment of the value of the equity investment. Please refer to note 13 for further details regarding the assessments carried out. Calenia Energia Spa In the 2014 financial year, the company proportionately repaid to the shareholders a part of the amounts paid in previous years as a share capital increase. Other companies The change in "Other minor ones" was primarily caused by the business combination of the Amga Group, which resulted in a reduction of the investment in AMGA Spa held by AcegasApsAmga and Est Reti Elettriche Spa in the amount of 6,531 thousand euros. This item now consists mainly of the following non-qualified investments: Veneta Sanitaria Finanza di Progetto S.p.A., with a 17.50% equity interest and a carrying amount of 3,587 thousand. The company engages in the planning and construction of the new hospital in Mestre, in the Norgo Pezzana di Zelarino area; Dolomiti Ambiente S.p.A., with a 7.61% equity interest and a carrying amount of 161 thousand. The company engages in the collection and shipment of urban waste and sorted waste collection;

3 Below are presented the main aggregate values of jointly controlled companies (Elettrogorizia Spa. Enomondo Srl. and EstEnergy Spa):

4 ASSETS 31-dic-14 SHAREHOLDERS' EQUITY AND LIABILITIES 31-dic-14 Share capital and reserves Share capital 21,318 Reserves 16,626 Profit / (loss) for the year 7,216 Group equity 45,160 Non-current assets Property,plant and equipment 61,375 Intangible assets 313 Non-current liabilities Finanziamenti - scadenti oltre l'esercizio successivo 12,443 Non-controlling interests 4 Post-employment benefits 333 Financial assets 12 Provisions for risks and charges 1,626 Deferred tax assets 2,864 Financial instruments - derivatives 1,088 Total non-current assets 64,568 Total non-current liabilities 15,490 Current assets Inventories 1,074 Current liabilities Banks and other borrow ings maturing Trade receivables 74,018 w ithin 12 months 57,000 Current tax assets 1,763 Trade payables 40,597 Other current assets 16,668 Current tax liabilities 1,132 Cash and cash equivalents 8,297 Other current liabilities 7,009 Total current assets 101,820 Total current liabilities 105,738 Total assets 166,388 Total liabilities 166,388 INCOME STATEMENT 31-dic-14 Revenue 154,067 Other operating revenues 9,200 Use of raw materials and consumables (87,766) Service costs (43,550) Personnel costs (5,153) Amortisation, depreciation,provisions (9,041) Other operating costs (787) Operating profit 16,970 Financial income 855 Financial expense (4,829) Total financial operations (3,974) Pre-tax profit 12,996 Taxes for the period (5,780) Net profit for the period 7,216

5 Below are presented the main aggregate values of the companies with significant influence (Aimag Spa, Ghirlandina Solare Srl, Q.Thermo Srl, Set Spa, Sgr Servizi Spa, Sosel Spa, Tamarete Energia Srl):

6 ASSETS 31-dic-14 SHAREHOLDERS' EQUITY AND LIABILITIES 31-dic-14 Share capital and reserves Share capital 88,040 Reserves 174,204 Profit / (loss) for the year 15,806 Group equity 278,050 Non-controlling interests 8,655 Total equity 286,705 Non-current assets Property,plant and equipment 425,102 Intangible assets 44,931 Goodw ill 3,269 Non-current liabilities Finanziamenti - scadenti oltre l'esercizio successivo 140,634 Non-controlling interests 11,887 Post-employment benefits 8,222 Financial assets 9,246 Provisions for risks and charges 26,437 Deferred tax assets 15,510 Deferrred tax liabilities 772 Total non-current assets 509,945 Total non-current liabilities 176,065 Current assets Inventories 4,378 Trade receivables 159,733 Contract w ork in progress 684 Current liabilities Banks and other borrow ings maturing w ithin 12 months 134,531 Current tax assets 7,728 Trade payables 104,656 Other current assets 30,847 Current tax liabilities 2,451 Cash and cash equivalents 20,402 Other current liabilities 29,309 Total current assets 223,772 Total current liabilities 270,947 Total assets 733,717 Total liabilities 733,717 INCOME STATEMENT 31-dic-14 Revenue 474,528 Other operating revenues 3,116 Use of raw materials and consumables (259,225) Service costs (87,548) Personnel costs (34,485) Amortisation, depreciation,provisions (44,284) Other operating costs (10,958) Operating profit 41,144 Financial income 376 Financial expense (10,095) Total financial operations (9,719) Other non-recurring non-operating costs (1,320) Pre-tax profit 30,105 Taxes for the period (13,561) Net profit for the period 16,544 Attributable to: Shareholders of the Parent Company 15,806 Non-controlling interests #RIF!

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8 Impairment of electricity generation assets With reference to the market for electric generation, in the presence of different impairment indicators, an in-depth analysis was performed to determine the recoverable amount of the Group s investments, and related financial assets, operating in the sector. In particular, the test was conducted by discounting to present value the cash flows expected to be generated over the remaining useful lives of the plants of Calenia Energia S.p.A., Set S.p.A. e Tamarete Energia S.r.l.. Concerning the investment in Energia Italiana S.p.A., reference is made to note 13 of the income statement. It should be noted the downturn associated with the electricity generation market continues. While showing signs of recovery in the medium/long term, this market is still burdened by the combination of multiple economic factors on both demand and supply sides. The main drivers of current price dynamics are to be found in the: attainment of full operational capability of the plants built in the recent cycle of investment in new thermoelectric capacity (period until 2010/2011); introduction of significant production capacity in renewable energy in the past few years (about 32GW of installed power at the end of 2013); low levels of energy demand caused by the negative economic cycle of the past few years, with the resulting impact on the reserve margin of the system which has reached a historical high. The current economic condition is expected to change in the medium/long term, particularly due to: 1. lack of financial sustainability, over this period, of the current spark spread levels for single-technology operators (CCGT) not integrated along the value chain (particularly in the absence of end customers) which, if the negative margins generated by their assets continued, will be faced with two alternative strategies: a) new capital injections to continue to operate in generation to benefit from higher margins in the long terms (not easy to implement, due to unfavourable financial market conditions and, in the case of foreign operators engaging in Italy, subject to the need for cross-border optimization of investment portfolios); b) exit from the generation market, with a resulting reduction of capacity on the supply side and price rise; 2. lack of productive investments in the expansionary phase, due to current overcapacity, which discourages the construction of new generation plants (currently there seem to be no new projects under way); 3. lawmakers interventions intended to reduce economic incentives for new renewable power, with the ensuing slowdown in investment growth in the sector; 4. the progressive return of demand for electricity toward pre-crisis levels, with consequent reduction of the system s reserve margin. That said, future cash flows determined on the basis of a medium/long-term energy scenario - consistent with growth expectations for energy demand, installed power and the system s expected reserve margin - discounted to present value at an after-tax rate of 6.14% will give rise to amounts for the investments and related financial assets greater than

9 their carrying amounts for Calenia Energia Spa and Set Spa, Therefore, no adjustment was made to their carrying amounts. In contrast, the impairment test for Tamarete Energia Srl showed a current cash flow value of less than the carrying amount of current equity investments and financing. The values were therefore aligned by carrying out a write-down in the amount of 4,808 thousand euros, 2,626 thousand euros of which went to annul the entire equity investment and 2,182 thousand euros to the devaluation of the current financing (a residual financial credit towards Tamarete Energia Srl of 33,889 thousand euros therefore continues to be recorded under assets). A sensitivity analysis was also carried out by reducing the curve of the spark spread by 5% compared to the scenario suggested above. This analysis also confirmed the adequacy of the amounts recorded for equity investments and related financial assets in Calenia Energia Spa and Set Spa, while for Tamarete, in this hypothesis, a further devaluation of approximately 700 thousand euros would take place.