Consolidated Financial Statements

Consolidated Income Statement

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Millions of euro

Notes

 
  

2019

 

2018

 
   

of which with related parties

 

of which with related parties

Revenue

     

Revenue from sales and services (1)

8.a

77,366

4,804

73,037

5,387

Other income

8.b

2,961

16

2,538

38

 

[Subtotal]

80,327

 

75,575

 
      

Costs

     

Electricity, gas and fuel purchases (1)

9.a

33,755

7,189

37,264

7,737

Services and other materials (1)

9.b

18,580

2,617

18,406

2,644

Personnel

9.c

4,634

 

4,581

 

Net impairment/(reversals) of trade receivables and other receivables

9.d

1,144

 

1,096

 

Depreciation, amortization and other impairment losses

9.e

9,682

 

5,355

 

Other operating expenses (1)

9.f

7,276

235

1,769

272

Capitalized costs

9.g

(2,355)

 

(2,264)

 

 

[Subtotal]

72,716

 

66,207

 

Net income/(expense) from commodity risk management (1)

10

(733)

11

532

10

Operating income

 

6,878

 

9,900

 

Financial income from derivatives

11

1,484

 

1,993

 

Other financial income

12

1,637

88

1,715

59

Financial expense from derivatives

11

1,142

 

1,532

 

Other financial expense

12

4,518

46

4,392

55

Net income/(expense) from hyperinflation

 

95

 

168

 

Share of income/(losses) of equity investments accounted for using the equity method

13

(122)

 

349

 

Income before taxes

 

4,312

 

8,201

 

Income taxes

14

836

 

1,851

 

Net income from continuing operations

 

3,476

 

6,350

 

Net income from discontinued operations 

 

-

 

-

 

Net income for the year (shareholders of the Parent Company

and non-controlling interests)

 

3,476

 

6,350

 

Attributable to shareholders of the Parent Company

 

2,174

 

4,789

 

Attributable to non-controlling interests

 

1,302

 

1,561

 

Basic earnings/(loss) per share attributable to shareholders of the Parent Company (euro)

 

0.21

 

0.47

 

Diluted earnings/(loss) per share attributable to shareholders of the Parent Company (euro)

 

0.21

 

0.47

 

Basic earnings/(loss) per share from continuing operations attributable to shareholders of the Parent Company (euro)

 

0.21

 

0.47

 

Diluted earnings/(loss) per share from continuing operations attributable to shareholders of the Parent Company (euro)

 

0.21

 

0.47

 

(1) The 2018 figures have been represented to take account of the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) contained in the Agenda Decision of March 2019, which involved changes in the classification, with no impact on margins, of the effects of purchase and sales contracts for commodities measured at fair value through profit or loss (for more details, see note 4.3 of the consolidated financial statements).

Statement of Consolidated Comprehensive Income

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Millions of euro

Notes

  
  

2019

2018

    

Net income for the period

 

3,476

6,350

Other comprehensive income recyclable to profit or loss (net of taxes)

   

Effective portion of change in the fair value of cash flow hedges

 

39

(552)

Change in fair value of hedging costs

 

120

83

Share of the other comprehensive income of equity investments accounted for using the equity method

 

(57)

(57)

Change in the fair value of financial assets at FVOCI

 

5

(3)

Change in translation reserve

 

(481)

(1,287)

Other comprehensive income not recyclable to profit or loss (net of taxes)

   

Remeasurement of net liabilities (assets) for employee benefits

 

(502)

(120)

Change in fair value of equity investments in other entities

 

-

12

Total other comprehensive income/(loss) for the period

34

(876)

(1,924)

Total comprehensive income/(loss) for the period

 

2,600

4,426

Attributable to:

   

- shareholders of the Parent Company

 

1,745

3,667

- non-controlling interests

 

855

759

       

Consolidated Balance Sheet

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Millions of euro

Notes

    

ASSETS

 

at Dec. 31, 2019

 

at Dec. 31, 2018

 
   

of which with related parties

 

of which with related parties

Non-current assets

     

Property, plant and equipment

16

79,809

 

76,631

 

Investment property

19

112

 

135

 

Intangible assets

20

19,089

 

19,014

 

Goodwill

21

14,241

 

14,273

 

Deferred tax assets

22

9,112

 

8,305

 

Equity investments accounted for using the equity method

23

1,682

 

2,099

 

Derivatives

24

1,383

15

1,005

 

Non-current contract assets

25

487

 

346

 

Other non-current financial assets

26

6,006

 

5,769

 

Other non-current assets

27

2,701

 

1,272

 

 

[Total]

134,622

 

128,849

 

Current assets

     

Inventories

28

2,531

 

2,818

 

Trade receivables

29

13,083

896

13,587

1,085

Current contract assets

25

166

 

135

 

Tax receivables

 

409

 

660

 

Derivatives

24

4,065

8

3,914

52

Other current financial assets

30

4,305

27

5,160

21

Other current assets

31

3,115

183

2,983

165

Cash and cash equivalents

32

9,029

 

6,630

 
 

[Total]

36,703

 

35,887

 

Assets classified as held for sale

33

101

 

688

 

TOTAL ASSETS

 

171,426

 

165,424

 

         

Millions of euro

Notes

    

LIABILITIES AND SHAREHOLDERS EQUITY

 

at Dec. 31, 2019

 

at Dec. 31, 2018

 
   

of which with related parties

 

of which with related parties

Equity attributable to the shareholders of the Parent Company

     

Share capital

 

10,167

 

10,167

 

Treasury share reserve

 

(1)

 

-

 

Other reserves

 

1,130

 

1,700

 

Retained earnings (loss carried forward)

 

19,081

 

19,853

 

 

[Total]

30,377

 

31,720

 

Non-controlling interests

 

16,561

 

16,132

 

Total shareholders equity

34

46,938

 

47,852

 

Non-current liabilities

     

Long-term borrowings

35

54,174

715

48,983

804

Employee benefits

36

3,771

 

3,187

 

Provisions for risks and charges (non-current portion)

37

5,324

 

5,181

 

Deferred tax liabilities

22

8,314

 

8,650

 

Derivatives

24

2,407

 

2,609

 

Non-current contract liabilities

25

6,301

151

6,306

 

Other non-current liabilities

38

3,706

 

1,901

86

 

[Total]

83,997

 

76,817

 

Current liabilities

     

Short-term borrowings

35

3,917

 

3,616

 

Current portion of long-term borrowings

35

3,409

89

3,367

89

Provisions for risks and charges (current portion)

37

1,196

 

1,312

 

Trade payables

39

12,960

2,291

13,387

2,924

Income tax payable

 

209

 

333

 

Derivatives

24

3,554

8

4,343

35

Current contract liabilities

25

1,328

39

1,095

25

Other current financial liabilities

40

754

 

788

 

Other current liabilities

42

13,161

30

12,107

69

 

[Total]

40,488

 

40,348

 

Liabilities included in disposal groups classified as held for sale

33

3

 

407

 

Total liabilities

 

124,488

 

117,572

 

TOTAL LIABILITIES AND SHAREHOLDERS EQUITY

 

171,426

 

165,424

 

   

Statement of Changes in Consolidated Shareholders’ Equity (note 34)

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Share capital and reserves attributable to the shareholders of the Parent Company

   
 

Share capital

Share premium reserve

Treasury share reserve

Legal reserve

Other reserves

Reserve from translation of financial statements in currencies other than euro

Reserve from measurement of cash flow hedge financial instruments

Reserve from measurement of costs of hedging financial instruments

Reserve from measurement of financial instruments at FVOCI

Reserve from equity investments accounted for using the equity method

Reserve from remeasurement of net liabilities/(assets) of defined benefit plans

Reserve from disposal of equity interests without loss of control

Reserve from acquisitions of non-controlling interests

Retained earnings and loss carried forward 

Equity attributable to the shareholders of the Parent Company

Non-controlling interests

Total shareholders equity

At December 31, 2017

10,167

7,489

-

2,034

2,262

(2,614)

(1,588)

-

(23)

(5)

(646)

(2,398)

(1,163)

21,280

34,795

17,366

52,161

Application of new accounting standards (IFRS 9 and IFRS 15) 

-

-

-

-

-

-

348

(348)

3

-

-

-

-

(3,707)

(3,704)

(576)

(4,280)

Monetary revaluation (IAS 29)

-

-

-

-

-

-

-

-

-

-

-

-

-

212

212

362

574

At January 1, 2018 restated

10,167

7,489

 

2,034

2,262

(2,614)

(1,240)

(348)

(20)

(5)

(646)

(2,398)

(1,163)

17,785

31,303

17,152

48,455

Distribution of dividends and interim dividends

-

-

 

-

-

-

-

-

-

-

-

-

-

(2,765)

(2,765)

(1,137)

(3,902)

Monetary revaluation (IAS 29)

-

-

-

-

-

-

-

-

-

-

-

-

-

73

73

143

216

Transactions in non-controlling interests

-

-

 

-

-

-

-

-

-

-

-

17

(460)

 

(443)

(850)

(1,293)

Change in the scope of consolidation

-

-

 

-

-

(94)

(14)

 

27

 

(5)

-

-

(29)

(115)

65

(50)

Comprehensive income for the period

-

-

 

-

-

(609)

(491)

90

9

(58)

(63)

-

-

4,789

3,667

759

4,426

of which:

                 

- other comprehensive income/(loss)

-

-

 

-

-

(609)

(491)

90

9

(58)

(63)

-

-

-

(1,122)

(802)

(1,924)

- net income/(loss) for the period

-

-

 

-

-

-

-

-

-

-

-

-

-

4,789

4,789

1,561

6,350

At December 31, 2018

10,167

7,489

-

2,034

2,262

(3,317)

(1,745)

(258)

16

(63)

(714)

(2,381)

(1,623)

19,853

31,720

16,132

47,852

Distribution of dividends

-

-

 

-

-

-

-

-

-

-

-

-

 

(3,050)

(3,050)

(1,190)

(4,240)

Purchase of treasury shares

-

(9)

(1)

-

-

-

-

-

-

-

-

-

-

-

(10)

-

(10)

Reclassifications

-

7

-

-

-

-

-

-

-

-

-

-

(7)

-

-

-

-

Monetary revaluation (IAS 29)

-

-

-

-

-

-

-

-

-

-

-

-

 

104

104

170

274

Transactions in non-controlling interests

-

-

-

-

-

-

-

-

-

-

-

-

61

-

61

593

654

Change in the scope of consolidation

-

-

-

-

-

(220)

41

   

(11)

 

(3)

-

(193)

1

(192)

Comprehensive income for the period

-

-

-

-

-

(265)

94

111

5

(56)

(318)

-

-

2,174

1,745

855

2,600

of which:

  

-

              

- other comprehensive income/(loss)

-

-

-

-

-

(265)

94

111

5

(56)

(318)

-

-

-

(429)

(447)

(876)

- net income/(loss) for the period

-

-

-

-

-

-

-

 

-

-

-

-

-

2,174

2,174

1,302

3,476

At December 31, 2019

10,167

7,487

(1)

2,034

2,262

(3,802)

(1,610)

(147)

21

(119)

(1,043)

(2,381)

(1,572)

19,081

30,377

16,561

46,938

Consolidated Statement of Cash Flows

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Millions of euro

Notes

 
  

2019

2018

   

of which with related parties

 

of which with related parties

Income before taxes for the period

 

4,312

 

8,201

 

Adjustments for:

     

Net impairment/(reversals) of trade receivables and other receivables

9.d

1,144

 

1,096

 

Depreciation, amortization and other impairment losses

9.e

9,682

 

5,355

 

Financial (income)/expense

11-12

2,443

 

2,048

 

Net income of equity investments accounted for using the equity method

13

123

 

(349)

 

Changes in net working capital:

 

(273)

 

153

 

- inventories

28

318

 

(117)

 

- trade receivables

29

(877)

189

426

(253)

- trade payables

39

(51)

(633)

734

559

- other contract asset (1)

25

(31)

 

-

 

- other contract liabilities (1)

25

154

 

750

 

- other assets (liabilities)

 

214

18

(1,640)

71

Accruals to provisions

 

515

 

449

 

Utilization of provisions

 

(1,838)

 

(1,226)

 

Interest income and other financial income collected

11-12

1,582

88

1,768

59

Interest expense and other financial expense paid

11-12

(4,235)

(46)

(4,342)

(55)

Net (income)/expense from measurement of commodities

 

(86)

 

(71)

 

Income taxes paid

14

(1,850)

 

(1,721)

 

Capital (gains)/losses

 

(268)

 

(286)

 

Cash flows from operating activities (A)

 

11,251

 

11,075

 

Investments in property, plant and equipment

16

(8,236)

 

(6,908)

 

Investments in intangible assets

20

(1,023)

 

(1,351)

 

Investments in non-current contract assets

 

(692)

 

(271)

 

Investments in entities (or business units) less cash and cash equivalents acquired

6

(320)

 

(1,472)

 

Disposals of entities (or business units) less cash and cash equivalents sold

6

688

 

424

 

(Increase)/Decrease in other investing activities

 

468

 

(83)

 

Cash flows from investing/disinvesting activities (B)

 

(9,115)

 

(9,661)

 

Financial debt (new long-term borrowing)

43.3

8,899

 

13,424

 

Repayments of financial debt (1)

43.3

(5,511)

(89)

(12,040)

(89)

Other changes in net financial debt (1)

 

355

 

1,826

 

Receipts from disposal of equity investments without loss of control (1)

 

-

 

2

 

Payments for acquisitions of equity investments without change of control and other transactions with non-controlling interests (1)

 

530

 

(1,404)

 

Purchase of own shares

 

(10)

 

-

 

Dividends and interim dividends paid

 

(3,957)

 

(3,444)

 

Cash flows from financing activities (C)

 

306

 

(1,636)

 

Impact of exchange rate fluctuations on cash and cash equivalents (D)

 

(76)

 

(185)

 

Increase/(Decrease) in cash and cash equivalents (A+B+C+D)

 

2,366

 

(407)

 

Cash and cash equivalents at the beginning of the period (2)

 

6,714

 

7,121

 

Cash and cash equivalents at the end of the period (3)

 

9,080

 

6,714

 

       

(1) In order to improve the presentation of these items, they have been broken down to a greater extent than in the past, making it necessary to reclassify the figures for 2018 in order to ensure the uniformity and comparability of the data with the previous year.
(2) Of which cash and cash equivalents equal to €6,630 million at January 1, 2019 (€7,021 million at January 1, 2018), short-term securities equal to €63 million at January 1, 2019 (€69 million at January 1, 2018) and cash and cash equivalents pertaining to “Assets held for sale” in the amount of €21 million at January 1, 2019 (€31 million at January 1, 2018). In order to improve the presentation of these items, they have been broken down to a greater extent than in the past, making it necessary to reclassify the figures for 2018 in order to ensure the uniformity and comparability of the data with the previous year.
(3) Of which cash and cash equivalents equal to €9,029 million at December 31, 2019 (€6,630 million at December 31, 2018), short-term securities equal to €51 million at December 31, 2019 (€63 million at December 31, 2018) and cash and cash equivalents pertaining to “Assets held for sale” in the amount of €21 million at December 31, 2018.

-