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Other, eliminations and adjustments

Performance

Millions of euro
20162015 restatedChange
Revenue (net of eliminations)861831303.6%
Gross operating margin(130)(311)181-58.2%
Operating income(241)(469)228-48.6%
Capital expenditure52 (1)52--

(1) The figure does not include €7 million regarding units classified as held for sale.

Revenue net of eliminations for 2016 amounted to €861 million, an increase of €30 million (+3.6%) from the previous year. The change can essentially be attributed to the gain recognized in the 1st Quarter of 2016 following the sale of the reinsurance company Compostilla Re (€19 million).

Gross operating margin for 2016, a negative €130 million, represents an improvement of €181 million compared with the figure for the previous year. This trend reflects both the aforementioned gain and the greater personnel expenses recognized in 2015 following the signing of a new agreement with the trade unions for redundancy incentives pursuant to Article 4 of the Fornero Act and the recognition of a one-off indemnity paid to former employees who benefitted from the electricity discount following its revocation, which was partially offset by the reversal of the provision established for this purpose. Another factor was the reversal of the provision for the SAPE dispute in the amount of €80 million.

The operating loss for 2016 of €241 million is an improvement of €228 million compared with the previous year, including the decrease of €47 million in depreciation, amortization and impairment related essentially to the different contribution of value adjustments to upstream gas exploration assets (€55 million in 2016 compared with €122 million in 2015) following a number of difficulties in executing the projects and changes in price conditions in the global fuel market.

Capital expenditure

Capital expenditure for 2016 totaled €52 million.