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Performance data

Revenue

Revenues

Revenue in 2016 amounted to €70,592 million, a decrease of €5,066 million (-6.7%) compared with 2015. The decline mainly reflected the adverse effect of the appreciation of the euro against other currencies (€1,286 million, especially concentrated in Latin America), a reduction in electricity trading (€1,062 million), the deconsolidation of Slovenské elektrárne following its sale at the end of July 2016 (€767 million), a reduction in sales of electricity to end users in mature markets and the reduction in sales of electricity generated.
Other factors were the recognition in 2015 of the grants received in Argentina under the provisions of Resolución 32/2015.
As regards revenue from extraordinary transactions, in 2016 the item mainly regarded the gains from the sale of GNL Quintero and Hydro Dolomiti Enel of €173 million and €124 million respectively, while in 2015 it included the gain on the disposal of SE Hydropower of €141 million, the negative goodwill and the concomitant remeasurement at fair value of the interest already held by the Group following the acquisition of 3Sun for a total of €116 million.

Millions of euro
20162015 restatedChange
Italy36,95740,727(3,770)-9.3%
Iberia18,95320,484(1,531)-7.5%
Latin America10,76810,828(60)-0.6%
Europe and North Africa3,7984,990(1,192)-23.9%
North and Central America1,12588224327.6%
Sub-Saharan Africa and Asia29181161.1%
Other, eliminations and adjustments(1,038)(2,271)1,23354.3%
Total70,59275,658(5,066)-6.7%

Gross operating margin

The gross operating margin in 2016 totaled €15,276 million, down €21 million (-0.1%) compared with 2015, reflecting exchange rate losses of €372 million and the partial reversal (€550 million) in 2015 of the provision for charges for the disposal of depleted nuclear fuel following the introduction of new regulations in Slovakia.
These effects were partly offset by the general rise in margins in nearly all the geographical areas, notably in Latin America (both in the generation and the distribution and sale of electricity) and in mature end-user markets (Italy and Spain), as well as the effect of the charges recognized in 2015 following the formalization of a number of agreements for the early retirement of personnel in those countries.

Millions of euro    
 20162015 restatedChange
Italy6,6796,916(237)-3.4%
Iberia3,5623,3532096.2%
Latin America3,5563,3062507.6%
Europe and North Africa7621,451(689)-47.5%
North and Central America83357525844.9%
Sub-Saharan Africa and Asia1477-
Other(130)(311)18158.2%
Total15,27615,297(21)-0.1%

The ordinary gross operating margin amounted to €15,174 million, up €134 million on 2015 (+0.9%). Extraordinary items for 2016, which are not reflected in the ordinary gross operating margin, amounted to €102 million, including:

  • the gains on the sale of GNL Quintero and Hydro DolomitiEnel for €173 million and €124 million respectively;
  • the losses recognized following the definitive abandonment of the development of a number of hydroelectric projects in Chile and Peru (about €195 million).

In addition, in 2015 extraordinary items amounted to €257 million, reflecting the gain of €141 million from the sale of SE Hydropower and the recognition of the negative goodwill and remeasurement at fair value of 3Sun, for a total of €116 million, following the acquisition of control.

Millions of euro    
 20162015 restatedChange
Italy6,5556,659(104)-1.6%
Iberia3,5623,3532096.2%
Latin America3,5783,3062728.2%
Europe and North Africa7621,451(689)-47.5%
North and Central America83357525844.9%
Sub-Saharan Africa and Asia1477-
Other(130)(311)18158.2%
Total15,17415,0401340.9%

Operating income

Operating income

Operating income in 2016 amounted to €8,921 million, an increase of €1,236 million compared with 2015 (€7,685 million), with a decrease in depreciation, amortization and impairment losses of €1,257 million. The latter was almost entirely attributable to impairment, which in 2016 mainly regarded the writedown of the value of water usage rights for hydroelectric projects on the rivers Neltume and Choshuenco in Chile, which face procedural difficulties (€273 million), upstream gas assets (€55 million) as well as the writedowns recognized following impairment testing of the Enel Green Power Romania CGU (€130 million) and the Nuove Energie CGU (€92 million). In 2015, the item regarded the Enel Russia CGU (€899 million), the Enel Green Power Romania CGU (€155 million), the upstream gas exploration assets (€159 million) and Slovenské elektrárne (€574 million), the latter reflecting the adjustment of the value of its net assets to their estimated realizable value.

Operating income    
 20162015 restatedChange
Italy4,3874,588(201)-4.4%
Iberia1,7661,47329319.9%
Latin America2,1632,320(157)-6.8%
Europe and North Africa286(569)855-
North and Central America56533822767.2%
Sub-Saharan Africa and Asia(5)4(9)-
Other(241)(469)228-48.6%
Total8,9217,6851,23616.1%

Ordinary operating income, which in addition to not including the items excluded from ordinary gross operating margin does not consider the effects of the impairment noted above, amounted to €9,436 million, an increase of €221 million (2.4%) on 2015. In addition to the rise in the ordinary gross operating margin, the change essentially reflected a decline in net writedowns of trade receivables.

Millions of euro    
 20162015 restatedChange
Italy4,3564,331250.6%
Iberia1,7661,47329319.9%
Latin America2,4582,3201385.9%
Europe and North Africa4861,059(573)-54.1%
North and Central America56533822767.2%
Sub-Saharan Africa and Asia(5)4(9)-
Other(190)(310)120-38.7%
Total9,4369,2152212.4%

Net income

Net income

Net income attributable to shareholders of the Parent Company amounted to €2,570 million in 2016, compared with €2,196 million in 2015. More specifically, the increase in operating income was partly offset by a rise in net financial expense (not associated with borrowing but rather mainly connected with net charges on derivatives, net of exchange rate gains), the effects of the adjustment to fair value of the remaining interest held by the Group in Slovak Power Holding and the receivable from the sale of 50% of that company (a total of €439 million) and the adverse impact of the increase in taxes, which in addition to greater pre-tax income and a number of changes in tax rates (in Italy in 2015 and in Peru in 2016) that prompted an adjustment of deferred taxation also reflected a change between the two years under comparison in the weight of a number of income components generated by extraordinary transactions subject to tax exemption rules (the participation exemption system).

Ordinary net income attributable to shareholders of the Parent Company in 2016 amounted to €3,243 million (€2,887 million in 2015), an increase of €536 million on 2015.
The following table provides a reconciliation of net income and ordinary net income attributable to shareholders of the Parent Company, reporting the non-ordinary items and their respective impacts on net income, excluding the associated tax effects and non-controlling interests.

Millions of euro
2016
Net income attributable to shareholders of the Parent Company 2,570
Gain on disposal of Hydro Dolomiti Enel(122)
Gain on disposal of GNL Quintero(45)
Abandonment of projects and impairment of hydroelectric projects in Chile and Peru130
Impairment of Enel Green Power Romania109
Impairment of Marcinelle Energie34
Impairment of upstream gas assets41
Impairment of Nuove Energie74
Impairment and adjustment to fair value of assets of Slovenské elektrárne452
Ordinary net income attributable to shareholders of the Parent Company3,243