Operating figures, equity and financial results for the year
Water Operating Segment
|Operating figures*||U.M.||2018||2017||Change||% Change|
|Water Volumes||Mm3||440||421||19||4.5 %|
|Electrical Energy Consumed||GWh||440||432||8||1.8 %|
|Sludge Disposed of||kTon||96||143||(47)||(32.8%)|
* The values refer to fully consolidated companies (including GORI).
|Operating results and financial position (€ million)||31/12/2018||31/12/17||Change||% Change|
|Operating profit/(loss) (EBIT)||221.0||191.3||29.7||15.5 %|
|Average number of personnel||2,551||1,796||755||42.1 %|
|Net financial debt||1,039.0||921.2||117.8||12.8 %|
|Gross operating profit (EBITDA) (€ million)||2018||2017||Change||% Change|
|Gross operating profit (EBITDA) Water Segment||433.0||349.6||83.3||23.8 %|
|EBITDA GROUP||933.2||840.0||93.3||11.1 %|
|Percentage weight||46.4 %||41.6 %||4.8 p.p.|
EBITDA for the Segment stood at € 433.0 million at 31 December 2018, an increase of € 83.3 million compared to 2017 (+ 23.8%). The increase is mainly due to the tariff dynamics of the water sector. Specifically, performance in the Segment is influenced by: (i) Acea Ato2, Acea Ato5, Crea Gestioni which recorded increases of € 49.8 million, € 4.1 million and € 1.9 million respectively; and (ii) an increase in the contribution to EBITDA of water companies valued at equity of € 15.6 million, as shown below:
|(€ million)||2018||2017||Change||% Change|
|Acquedotto del Fiora||4.4||2.3||2.1||91.3%|
|Nuove Acque and Intesa Aretina||0.5||0.5||(0.0)||(8.4%)|
For GORI, note that the company was fully consolidated starting from 8 November 2018, therefore the valuation of net equity does not include the last period of the year in which the contribution to the EBITDA of the company was equal to € 12 million.
The revenues for the year are measured on the basis of the calculations made by the EGA and/or the ARERA; as usual, these include the estimate of the adjustments concerning the passing costs. As is known, as of the second regulatory period, the tariffs may also include marketing and technical quality components; under specific conditions, the Managers may be recognised the Opexqc component or alternatively the "contractual quality" award. The latter is recognised to the Manager if the indicators identified for metering and monitoring (as of 1 July 2016) exceed the thresholds established in ARERA resolution 655/2015. The Acea Ato2 revenue includes the amount of € 33.6 million, representing the best estimate of the quality award due for 2018. The penalties for commercial quality amount to € 0.7 million. Below is a table summarising the status of the tariff proposals.
The operating result was affected by the increase in amortisation and depreciation (+ € 50.6 million) in line with the trend in investments and the entry into operation of the new functions of the programmes relating to investments in technological infrastructure as well as some write-downs on plants no longer realised (+ € 6.3 million). Provisions for the year (equal to € 14.5 million) decreased by € 8.0 million, attributable primarily to the effects deriving from the change in the methods of application of the criteria for estimating IFRIC 12 adopted by the group. The average headcount at 31 December 2018 increased by 755 units, mainly attributable to the consolidation of GORI (+ 746 units). Acea Ato2 also contributed to the increase in resources (+ 8 units).
Investments in the Segment were € 329.7 million and were mainly attributable to Acea Ato2 for over € 286.5 million and € 32.6 million to Acea Ato5. The main investments in the year include those relating to the work carried out for the reclamation and expansion of the water and sewage pipes of the various municipalities, the extraordinary maintenance of the water centres, the interventions on the treatment plants, works to reduce water leaks and improve relationships with users and the local region and on IT applications. The contribution to investments in the Segment of the newly consolidated GORI is equal to € 9.9 million.
Net debt of the Segment at 31 December 2018 was € 1,039.0 million, an increase of € 117.8 million compared to 31 December 2017, principally due to. (i) Acea Ato2, substantially due to the lower liquidity resulting from a reduction in the available assets primarily used to finance the investments; (ii) to Acea Ato5 as a result of a worsening of debt exposure to the parent company. It should be noted that the newly consolidated GORI contributes positively to the financial debt of the Segment, reducing it by € 10.5 million.