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Analysis of the financial position

Millions of euro   
 al 31.12.2016al 31.12.2015Change
Net non-current assets:   
- property, plant and equipment and intangible assets27216
- equity investments42,79338,9843.809
- net other non-current assets/(liabilities)(440)71(511)
Total42,38039,0763,304
Net current assets:   
- trade receivables255283(28)
- net other current assets/(liabilities)(1,500)(627)(873)
- trade payables(150)(164)14
Total(1,395)(508)(887)
Gross capital employed40,98538,5682,417
Provisions:   
- severance and other employee benefits(286)(291)5
- provisions for risks and charges and net deferred taxes562828
Total(230)(263)33 
Net capital employed40,75538,3052,450
Shareholders’ equity26,91624,8802,036
NET FINANCIAL DEBT13,83913,425414

Net non-current assets amounted to €42,380 million, an increase of €3,304 million. This is mainly attributable to:

  • an increase of €3,809 million in investments in subsidiaries and joint ventures, reflecting the following transactions: the non-proportional partial spin-off of Enel Green Power SpA to Enel SpA, the demerger from Enel Green Power International BV of assets and liabilities to Enel Finance International NV, the cross-border merger of Enel Green Power International BV into Enel Green Power SpA, the recapitalization of and subsequent capital contribution to OpEn Fiber SpA, which at December 31, 2016 was jointly controlled by Enel SpA and CDP Equity SpA. Another factor was the value adjustment of the investments held in Enel Produzione SpA and Enel Trade SpA;
  • a change of €511 million in “net other non-current assets/ (liabilities)”, which at December 31, 2016 showed a net liability of €440 million (net other non-current assets of €71 million at December 31, 2015). The shift is essentially attributable to the increase in the value of non-current derivative liabilities (€366 million) and the decrease in the value of non-current derivative assets (€121 million).

Net current assets came to a negative €1,395 million, an increase of €887 million on December 31, 2015. The change is attributable to:

  • an increase of €873 million in “net other current liabilities”, mainly reflecting the liability to shareholders for the interim dividend on 2016 earnings approved by the Board of Directors on November 10, 2016 and to be paid as from January 25, 2017 (€915 million);
  • a decrease of €28 million in trade receivables, mainly in respect of Group companies for management and coordination services from Enel SpA;
  • a decrease of €14 million in trade payables.

Net capital employed at December 31, 2016, came to €40,755 million, funded by shareholders’ equity of €26,916 million and net financial debt of €13,839 million.

Shareholders’ equity came to €26,916 million at December 31, 2016, an increase of €2,036 million on the previous year. More specifically, the change is attributable to the nonproportional partial spin-off of Enel Green Power SpA to Enel SpA, which increased share capital and the share premium reserves (by €764 million and €2,204 million respectively), the distribution of the dividend for 2015 (totaling €1,627 million) and the interim dividend for 2016 (€915 million), as well as the recognition of net income for 2016 (€1,610 million).

Net financial debt amounted to €13,839 million at the end of 2016, with a debt/equity ratio of 51.4% (53.9% at the end of 2015)