Revenues in 2013 amounted to €80,535 million, a decrease of €4,414 million (-5.2%) compared with 2012. The decline is essentially attributable to the contraction in revenues from the sale of electricity, largely due to the decline in volumes sold, only partly offset by an increase in revenues from the transport of electricity and the sale of fuels. Revenues for 2013 also include the gain (€964 million) on the disposal of Artic Russia (and indirectly the stake held by the latter in SeverEnergia, a hydrocarbon extraction company in Russia), in the 4th Quarter of 2013.
|Millions of euro|
|Generation and Energy Management||22,919||25,244||(2,325)||-9.2%|
|Infrastructure and Networks||7,698||8,117||(419)||-5.2%|
|Iberia and Latin America||30,935||34,169||(3,234)||-9.5%|
|Other, eliminations and adjustments||(8,502)||(12,331)||3,829||31.1%|
Gross operating margin
The gross operating margin for 2013 totaled €17,011 million, up 7.6% compared with 2012. The margin for 2013 includes the gain on the disposal of Artic Russia, while that for 2012 reflects an adjustment (in the amount of €929 million) made for comparative purposes only in compliance with the new version of IAS 19 upon first-time application. The adjustment mainly regards the recognition of charges for the transition-to-retirement plan for certain employees in Italy at the end of 2012. Excluding those items, the decline in the gross operating margin is mainly attributable to the expected contraction in the results achieved in Spain and conventional generation activities in Italy, only partly offset by the good performance of the Sales Italy business area, the Renewable Energy Division and Latin American operations, with the latter posting their result despite adverse developments in the exchange rates of local currencies against the euro.
|Millions of euro|
|Generation and Energy Management||1,176||1,091||85||7.8%|
|Infrastructure and Networks||4,008||3,623||385||10.6%|
|Iberia and Latin America||6,746||7,230||(484)||-6.7%|
|Other, eliminations and adjustments||1,022||(35)||1,057||-|
Operating income came to €9,944 million in 2013, an increase of 46.1% compared with 2012 (€6,806 million), reflecting in part the adjustment associated with the first-time application of IAS 19 Revised. The change in depreciation, amortization and impairment losses reflects the effect of the difference in the impairment recognized in 2013 and 2012 on the goodwill of a number of cash generating units (€744 million in 2013 and €2,584 million in 2012). More specifically, the impairment recognized in 2013 was entirely accounted for by the writedown of part of the goodwill of the “Enel OGK-5” cash generating unit to reflect the expected contraction in estimated future cash flows, as a result of the continuing slowdown in economic growth and the consequent decline in the forecast growth in prices in the medium term in the Russian market. In this regard, an impairment loss of €112 million had already been recognized in 2012 following the emergence of the first signs of change in outlook and a deterioration in the profitability of that CGU. In addition, the impairment losses recognized in 2012 included impairment of €2,392 million on the goodwill of the “Endesa-Iberia” CGU.
|Millions of euro|
|Generation and Energy Management||554||505||49||9.7%|
|Infrastructure and Networks||3,028||2,629||399||15.2%|
|Iberia and Latin America||3,836||1,675||2,161||-|
|Other, eliminations and adjustments||908||(165)||1,073||-|
Net income pertaining to shareholders of the Parent Company amounted to €3,235 million in 2013, compared with €238 million the previous year. The increase is essentially attributable to the gain on the disposal of Artic Russia, the difference in the impairment losses recognized in respect of goodwill in 2013 and 2012, the adjustment booked on first-time application of IAS 19 Revised (equal to €627 million net of tax effects and non-controlling interests) and the improvement in financial performance.