Annual Report 2010 - Enel.com

Performance
Millions of euro
2010
96 Enel Annual Report 2010 Report on operations
2009
restated 2010-2009
Revenues 7,427 7,273 154
Gross operating margin 3,813 4,017 (204)
Operating income 2,911 3,137 (226)
Operating assets 17,680 17,272 408
Operating liabilities 5,825 5,651 174
Employees at year-end (no.) 19,152 19,700 (548)
Capital expenditure (1) 1,147 1,112 35
(1) Does not include €63 million regarding units classified as “held for sale” at December 31, 2009.
Revenues for 2010 came to €7,427 million, up €154 million
(2.1%) over 2009. Excluding the capital gain on the
sale of Enel Linee Alta Tensione recognized in the 2nd
Quarter of 2009 (€295 million, including the price adjustment),
revenues for 2010 increased by €449 million. This
change is essentially due to:
> an increase of €852 million in revenues on electricity
transport, mainly resulting from the positive impact
of the component to remunerate the early replacement
of electromechanical meters (€691 million), the
increase in average transport prices (including equalization
mechanisms) following the rate updates for the
2008-2011 regulatory period, as well as the increase in
quantities of electricity distributed to end users;
> higher revenues from connection fees, almost entirely
attributable to the effect of the application of IFRIC 18
as from July 1, 2009 (€36 million);
> prior-year items with a negative impact of €307 million,
essentially attributable to the decrease in revenues
from equalization mechanisms (€246 million), the effect
of the recognition in 2009 of positive revisions of
estimates following a number of Authority for Electricity
and Gas resolutions (€56 million), and the effect of
positive adjustments recognized in 2009 on purchases
of electricity by the Single Buyer (€27 million);
> the effect of the recognition in 2009 of the price adjustment
for the electricity distribution operations in
the municipalities of Milan and Rozzano (€88 million);
> a decrease in revenues in respect of white certificates
(€14 million).
The gross operating margin totaled €3,813 million, a decline
of €204 million (down 5.1%) attributable to:
> an increase of €293 million in the margin on the transport
of electricity;
> the effects of the recognition in 2009 of the gain on the
sale of Enel Linee Alta Tensione, the adjustment on the
sale of the Milan-Rozzano operations and other minor
items, for a total of €395 million;
> a €33 million decline in margins resulting from the sale
of the high-voltage grid on April 1, 2009;
> a €36 million increase in connection fees mainly due
to the effect of the application of IFRIC 18, mentioned
above;
> a €14 million decrease in connection fees;
> the net positive effect (€82 million) of a number of negative
regulatory prior-year items, the impact of which
was more than offset by the remuneration granted for
the early replacement of electromechanical meters, as
discussed earlier;
> an increase of €173 million in operating expenses,
mainly attributable to the rise in maintenance and repair
costs, higher provisions for risks and charges, an increase
in the average electricity transport rate applied
by Terna and negative adjustment payments to F2i Reti
Italia; these factors were partially offset by a decline in
charges for early retirement incentives.
Operating income, after depreciation, amortization and
impairment losses of €902 million (€880 million in 2009),
amounted to €2,911 million, down €226 million or 7.2%
compared with 2009. Excluding effects of the gain recognized
in 2009 on the sale of Enel Linee Alta Tensione
in the amount of €295 million, operating income would
have risen by €69 million.