End-user Markets

Operations

Electricity sales

Millions of kWh

   
 

2019

2018

Change

Free market

152,588

152,619

(31)

-

Regulated market

149,088

142,813

6,275

4.4%

Total

301,676

295,432

6,244

2.1%

- of which Italy

97,539

104,318

(6,779)

-6.5%

- of which Iberia

89,441

89,639

(198)

-0.2%

- of which Latin America

104,962

91,075

13,887

15.2%

- of which Europe and Euro-Mediterranean Affairs

9,734

10,400

(666)

-6.4%

This positive performance of electricity sales in 2019 essentially reflects the increase in quantities sold in Latin America, mainly in Brazil following the acquisition of Enel Distribuição São Paulo. This change was only partially offset by the reduction of electricity sold in Italy due to a decrease in sales on the regulated market following the transfer of 1.8 million customers to the free market. This factor is seen as the cause for the reduction in quantities sold in Romania as well. In Spain, the change was essentially due to reduced consumption. The Group’s retail customers totaled 69,914,992, of which 22,780,590 on the free market. At December 31, 2018, those figures were 71,117,743 and 21,478,721 respectively.    

Natural gas sales

Millions of m3

   
 

2019

2018

Change

Business to consumer

3,698

3,704

(6)

-0.2%

Business to business

6,802

7,474

(672)

-9.0%

Total

10,500

11,178

(678)

-6.1%

- of which Italy

4,736

4,761

(25)

-0.5%

- of which Iberia

5,750

6,409

(659)

-10.3%

- of which Europe and Euro-Mediterranean Affairs

14

8

6

75.0%

 

The reduction in natural gas sales was mainly due to the aforementioned reductions in consumption in Spain.

Performance

Millions of euro

   
 

2019

2018

Change

Revenue

32,544

33,771

(1,227)

-3.6%

Gross operating margin

3,287

3,079

208

6.8%

Operating income

2,163

1,958

205

10.5%

Capital expenditure

449

374

75

20.1%

The following tables shows a breakdown of performance by country in 2019.

Revenue

Millions of euro

   
 

2019

2018

Change

Italy

16,042

16,367

(325)

-2.0%

Iberia

13,867

14,920

(1,053)

-7.1%

Latin America

1,504

1,443

61

4.2%

- of which Argentina

30

6

24

-

- of which Brazil

398

299

99

33.1%

- of which Chile

268

255

13

5.1%

- of which Colombia

769

848

(79)

-9.3%

- of which Peru

39

35

4

11.4%

Europe and Euro-Mediterranean Affairs

1,131

1,040

91

8.8%

Eliminations and adjustments

-

1

(1)

-

Total

32,544

33,771

(1,227)

-3.6%

Gross operating margin

Millions of euro

   
 

2019

2018

Change

Italy

2,314

2,233

81

3.6%

Iberia

715

676

39

5.8%

Latin America

243

158

85

53.8%

- of which Argentina

2

(16)

18

-

- of which Brazil

149

100

49

49.0%

- of which Chile

17

19

(2)

-10.5%

- of which Colombia

60

42

18

42.9%

- of which Peru

15

13

2

15.4%

Europe and Euro-Mediterranean Affairs

15

12

3

25.0%

Total

3,287

3,079

208

6.8%

 

The increase in the gross operating margin is mainly attributable to:

  • an increase in margins in Latin America due to:
    • the consolidation of Enel Distribuição São Paulo beginning in June of last year (€51 million); 
  • an increase in revenue in Argentina following the Edesur settlement agreement with the government resolving mutual pending issues arising during the period 2006-2016 (€24 million); 
  • an increase of €108 million in the margin on the free market in Italy, which was only partially offset by a reduction of €27 million on the regulated market;
  •  a decrease in the cost ratio in Iberia.

Operating income

Millions of euro

   
 

2019

2018

Change

Italy

1,609

1,379

230

16.7%

Iberia

491

494

(3)

-0.6%

Latin America

77

87

(10)

-11.5%

- of which Argentina

(35)

(16)

(19)

-

- of which Brazil

44

52

(8)

-15.4%

- of which Chile

6

16

(10)

-62.5%

- of which Colombia

52

29

23

79.3%

- of which Peru

10

6

4

66.7%

Europe and Euro-Mediterranean Affairs

(14)

(2)

(12)

-

Eliminations and adjustments

-

-

-

-

Total

2,163

1,958

205

10.5%

In 2019, operating income, including €1,124 million in depreciation, amortization and impairment, increased due, above all, to performance improvements in Italy, mainly for Enel Energia following the improvement in margins noted above and the decrease of €149 million in depreciation, amortization and impairment, which was essentially related to the decrease in allowances for doubtful accounts.
This positive performance was impacted by the loss recognized in other countries. In Romania, the loss of €14 million reflected an increase in the impairment of trade receivables compared with 2018.

Capital expenditure

Millions of euro

   
 

2019

2018

Change

Italy

324

248

76

30.6%

Iberia

110

107

3

2.8%

Latin America

-

1

(1)

-

Europe and Euro-Mediterranean Affairs

15

18

(3)

-16.7%

Total

449

374

75

20.1%

The change in capital expenditure is mainly attributable to the increase in Italy, particularly with regard to Enel Energia. This increase was due to the capitalization of costs related to the acquisition of new customer contracts.

Performance