Annual Report 2010 - Enel.com

Millions of euro
Revenues
2009 Endesa PPA
Application of
IFRIC 18 2009 restated
Revenues from sales and services 62,171 - 327 62,498
Other revenues 1,864 - - 1,864
Costs
64,035 - 327 64,362
Raw materials and consumables 32,638 - - 32,638
Services 10,004 - - 10,004
Personnel 4,908 - - 4,908
Depreciation, amortization and impairment losses 5,289 50 - 5,339
Other operating expenses 2,298 - - 2,298
Capitalized costs (1,593) - - (1,593)
53,544 50 - 53,594
Net income/(charges) from commodity risk management 264 - - 264
Operating income 10,755 (50) 327 11,032
Financial income 3,593 - - 3,593
Financial expense 5,334 - - 5,334
Share of income/(expense) from equity investments accounted for using
the equity method 54 - - 54
Income before taxes 9,068 (50) 327 9,345
Income taxes 2,520 (14) 91 2,597
Net income from continuing operations 6,548 (36) 236 6,748
Net income from discontinued operations (158) - - (158)
Net income for the period (shareholders of the Parent Company and
minority interests) 6,390 (36) 236 6,590
Attributable to minority interests 995 (11) 20 1,004
Attributable to shareholders of the Parent Company 5,395 (25) 216 5,586
The impact on the statement of consolidated comprehensive
income and the consolidated statement of cash flows
involve solely a number of reclassifications among accounts,
in line with changes reported in the balance sheet
and income statement.
5
Risk management
Market risk
As part of its operations, the Enel Group is exposed to a
variety of market risks, notably the risk of changes in interest
rates, exchange rates and commodity prices.
The nature of the financial risks to which the Group is
exposed is such that changes in interest rates cause
changes in cash flows associated with interest payments
on long-term floating-rate debt instruments, while changes
in the exchange rate between the euro and the main
foreign currencies have an impact on the value of the cash
flows denominated in those currencies and the consolidation
value of equity investments denominated in foreign
currencies.
In compliance with Group policies for managing financial
risks, these exposures are generally hedged using overthe-counter
derivatives (OTC).
Enel also engages in proprietary trading in order to maintain
a presence in the Group’s reference energy commodity
markets. These operations consist in taking on exposures
in energy commodities (oil products, gas, coal, CO2 certificates and electricity in the main European countries)
using financial derivatives and physical contracts traded
on regulated and OTC markets, exploiting profit opportunities
through arbitrage transactions carried out on the
basis of expected market developments. These operations
171