Gross Operating Margin at 403 million euros (+28% compared to the first quarter of 2016). Brilliant results in Generation. Strong organic and external growth in the other BUs. EPCG penalized by low rainfall conditions
Group Net Profit at 180 million euros (+14% compared to the first quarter of 2016) Ordinary Net Profit at 180 million euros, recorded strong growth (+55% compared to the first quarter of 2016)
Investments of 62 million euros, up by 22% compared to the first quarter of 2016
Net Financial Position, amounting to 3,027 million euros, down by 109 million euros compared to 31 December 2016
Milan, 10 May 2017 – At today’s meeting of the Board of Directors of A2A S.p.A., chaired by Mr. Giovanni Valotti, the Board examined and approved the quarterly Information as at 31 March 2017.
The first quarter of the year closed with highly satisfactory economic-financial results that exceeded the Company’s expectations. The strong growth, recorded in all the significant economic indicators, was the result of improved performances by all the BUs (except for EPCG) and, in particular, by Generation which – as envisaged in the new 2017-2021 Business Plan – was able to benefit from the volatile market conditions. The full consolidation, as of 1 January, of the acquisitions made during 2016, starting with the Linea Group Holding (“LGH”), also contributed to the increased margins.
The scenario of the first quarter of 2017 was characterized by high electricity and gas prices: the PUN Base Load amounted to 57.4 €/MWh, rising by 45.1% compared to 39.6 €/MWh in the first quarter of 2016 and the average price of gas at the PSV amounted to 20.4 €/MWh, up by 41.5% compared to the same period of the previous year.
These price levels in the Italian wholesale markets, mainly recorded in the month of January, confirm the trend already recorded in the last quarter of 2016 determined, primarily, by the continued stoppage of several French nuclear power plants together with the exceptional cold snap.
The A2A Group managed to seize the opportunity offered by this energy context thanks to the availability of flexible CCGT thermoelectric plants capable of varying their production output in an extremely limited timeframe.
The expansion of the Group’s consolidation scope includes, as mentioned, LGH as well as other 6 minor companies acquired in 2016 and operating in the Waste, Heat (Energy Efficiency) and Networks sectors. The contribution to the growth of the gross operating margin deriving from the new companies acquired amounts to 30 million euros.
The “Ordinary” Net Profit, amounting to 180 million euros, was up by 64 million euros compared to the first three months of 2016 (116 million euros at 31 March 2016). The Ordinary Net Profit of the first 3 months of 2016 excludes the non-recurring items (overall amounting to 42 million euros) that can be associated with the effects produced by the partial, non-proportional demerger of Edipower in favour of Cellina Energy S.r.l., effective as of 1 January 2016 while, in relation to the first quarter of 2017, no extraordinary items with an effect on the Group’s net profit were identified.
The "Reported" net profit, amounting to 180 million euros, was up by 14% compared to the first three months of the previous year.
During the period the generation of net cash was positive and equalled 109 million euros, after investments for 62 million euros. The Net Financial Position as at 31 March 2017 thus amounted to 3,027 million euros (3,136 million euros at the end of 2016).
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