Revenues in 2014 amounted to 75,791 million euros, a decrease of 2,872 million euros (-3.7%) compared with 2013. The contraction is largely due to the decline in revenues from electricity sales, essentially associated with a contraction in volumes sold, the adverse impact of developments in the exchange rates of some of the countries in which the Group operates against the euro, and the reduction in the contribution of the net income of other companies following the disposal of equity investments. These factors were only partly offset by greater revenues from the sale of fuels.
EBITDA for 2014 amounted to 15,757 million euros, down 5.6% compared with 2013 (16,691 million euros). Excluding the impact of the disposals of a number of equity investments, EBITDA came to 15,502 million euros (15,769 million euros in 2013), a fall of 267 million euros (-1.7%). The change reflected the adverse impact of exchange rate developments, whose effect was offset by an improvement in the margin on electricity sales in the domestic market.
EBIT for 2014 amounted to 3,087 million euros, a decrease of 68.3% compared with 2013 (9,740 million euros). In addition to the reduction in EBITDA, the change is attributable to the increase in impairment losses recognized in 2014 compared with 2013. More specifically, in 2013 the item was entirely accounted for by the impairment of part of the goodwill of the “Enel Russia” (formerly “Enel OGK-5”) Cash Generating Unit (“CGU”), while in 2014 impairment losses were recognized in the total amount of 6,427 million euros. Such losses included the remeasurement to fair value of the net assets held for sale related to Slovenské elektrárne (2,878 million euros, identified based on the estimated realisable value from the sale of this shareholding), conventional generation assets in Italy (2,108 million euros) further to the persistent crisis hitting the industry in 2014 as well, of rights to use water from a number of rivers in the Aysén region in Chile (589 million euros) following the occurrence of permitting uncertainty related to the construction of a number of hydro plants, as well as the goodwill of the “Enel Russia” CGU and the “Enel Green Power Hellas” CGU totalling 194 million euros, essentially attributable to the market scenario in both countries.
Group net income for 2014 amounted to 517 million euros, compared with 3,235 million euros in 2013 (-84.0%). The decrease is largely due to the contraction in EBIT, the increase in net financial expense and some impairment losses recognized on a number of minority stakes held by the Group. In addition to the impact of the change in the share of net income to attribute to non-controlling interests, the above negative effects were partly offset by a reduction in taxes for 2014, which were impacted by the granting of a tax credit of 1,392 million euros in respect of the distribution of dividends by Endesa following the extraordinary corporate transactions carried out in the last quarter of 2014 and by the impact on deferred taxation of the impairment losses.
Group net ordinary income for 2014 amounted to 2,994 million euros, down 125 million euros (- 4.0%) on the 3,119 million euros posted in 2013.
Net capital employed as of December 31st, 2014, including net assets held for sale of 1,488 million euros (mainly in respect of Slovenské elektrárne), amounted to 88,528 million euros. It was financed by shareholders’ equity attributable to shareholders of the Parent Company and non-controlling interests of 51,145 million euros and net financial debt of 37,383 million euros.
Net financial debt as of December 31st, 2014 amounted to 37,383 million euros (net of 620 million euros related to the scope of activities “held for sale”, which mainly include Slovenské elektrárne), a decrease of 2,323 million euros compared with December 31st, 2013. More specifically, the cash flows generated from ordinary business activities, the disposal of certain non-strategic assets and the proceeds from the sale of 21.92% of Endesa in November 2014 through a global offer more than covered capital expenditure during the year and the payment of dividends. As of December 31st, 2014, the debt/equity ratio came to 0.73 compared with 0.75 at the end of 2013, while the debt/EBITDA ratio was 2.4 (unchanged from December 31st, 2013).
Capital expenditure amounted to 6,701 million euros in 2014 (of which 6,019 million euros regarded property, plant and equipment), an increase of 781 million euros compared with 2013, with a focus on renewables and, for traditional generation technologies, Latin America.
As of December 31st, 2014 Enel Group employees numbered 68,961 (70,342 at the end of 2013). The reduction in the Group workforce (1,381 employees) is largely attributable to the net balance of new hires and terminations (a decrease of 1,404). As of December 31st, 2014, the personnel of Group companies headquartered abroad were 51.6% of the total.
Data as of: December 31, 2014