Operations
Net electricity generation
Millions of kWh | ||||
2019 | 2018 | Change | ||
Hydroelectric | 62,580 | 65,893 | (3,313) | -5.0% |
Geothermal | 6,148 | 5,881 | 267 | 4.5% |
Wind | 26,668 | 22,161 | 4,507 | 20.3% |
Solar | 3,974 | 4,897 | (923) | -18.8% |
Other sources | 21 | 108 | (87) | -80.6% |
Total net generation | 99,391 | 98,940 | 451 | 0.5% |
- of which Italy | 24,308 | 25,476 | (1,168) | -4.6% |
- of which Iberia | 10,090 | 12,172 | (2,082) | -17.1% |
- of which Latin America | 48,448 | 48,137 | 311 | 0.6% |
- of which Europe and Euro-Mediterranean Affairs | 2,005 | 1,895 | 110 | 5.8% |
- of which North America | 12,969 | 9,752 | 3,217 | 33.0% |
- of which Africa, Asia and Oceania | 1,571 | 1,508 | 63 | 4.2% |
Net electricity generation 2019 increased slightly from 2018 due to increases in wind and geothermal production, which were partially offset by decreases in hydroelectric and solar power generation. The most significant changes in wind power came in the United States and in Iberia, where production increased by 4,496 million kWh and 439 million kWh, respectively. These increases were partially offset by decreases in wind power generation in Mexico (down 759 million kWh) due, in part, to the sale of a number of companies in September 2018.
The increase in geothermal generation came mainly in the United States (up 285 million kWh). The decrease in hydro generation was due mainly to reduced water availability in Italy and Iberia, only partially offset by an increase in Latin America (up 458 million kWh), where output varied throughout the region. Of particular note were increases in Brazil (+940 million kWh), Colombia (+857 million kWh), and Peru (+462 million kWh), and these increases were offset by decreases in Argentina (-350 million kWh), Chile (-899 million kWh), and Panama (-308 million kWh).
Net efficient generation capacity
MW | ||||
at Dec. 31, 2019 | at Dec. 31, 2018 | Change | ||
Hydroelectric | 27,830 | 27,844 | (14) | -0.1% |
Geothermal | 878 | 804 | 74 | 9.2% |
Wind | 10,327 | 8,190 | 2,137 | 26.1% |
Solar | 3,094 | 2,322 | 772 | 33.2% |
Other sources | 5 | 43 | (38) | -88.4% |
Total net power efficiency | 42,134 | 39,203 | 2,931 | 7.5% |
- of which Italy | 13,972 | 14,011 | (39) | -0.3% |
- of which Iberia | 7,391 | 6,525 | 866 | 13.3% |
- of which Latin America | 13,676 | 13,869 | (193) | -1.4% |
- of which Europe and Euro-Mediterranean Affairs | 1,037 | 883 | 154 | 17.4% |
- of which North America | 5,282 | 3,220 | 2,062 | 64.0% |
- Africa, Asia and Oceania | 776 | 695 | 81 | 11.7% |
Net power efficiency capacity for 2019 increased from 2018, mainly in the United States due to the acquisition by Enel Green Power North America (EPGNA, now named Enel North America) of 13 companies that own wind, geothermal and solar plants, as well as to an increase in power generation capacity at the High Lonesome and Roadrunner plants. Wind and solar power generation capacity also increased in Iberia.
Performance
Millions of euro | ||||
2019 | 2018 | Change | ||
Revenue | 7,733 | 8,056 | (323) | -4.0% |
Gross operating margin | 4,604 | 4,608 | (4) | -0.1% |
Operating income | 3,276 | 3,505 | (229) | -6.5% |
Capital expenditure | 4,293(1) | 2,784(2) | 1,509 | 54.2% |
(1) The figure does not include €4 million regarding units classified as “held for sale”.
(2) The figure does not include €378 million regarding units classified as “held for sale”.
The following tables show a breakdown of performance by country in 2019.
Revenue(1)
Millions of euro | ||||
2019 | 2018 | Change | ||
Italy | 1,918 | 2,084 | (166) | -8.0% |
Iberia | 653 | 716 | (63) | -8.8% |
Latin America | 3,692 | 3,843 | (151) | -3.9% |
- of which Argentina | 64 | 59 | 5 | 8.5% |
- of which Brazil | 694 | 676 | 18 | 2.7% |
- of which Chile | 1,489 | 1,584 | (95) | -6.0% |
- of which Colombia | 1,007 | 941 | 66 | 7.0% |
- of which Peru | 201 | 334 | (133) | -39.8% |
- of which Panama | 169 | 151 | 18 | 11.9% |
- of which other countries | 68 | 98 | (30) | -30.6% |
North America | 1,115 | 860 | 255 | 29.7% |
- of which the United States | 956 | 564 | 392 | 69.5% |
- of which Mexico | 159 | 296 | (137) | -46.3% |
Europe and Euro-Mediterranean Affairs | 271 | 255 | 16 | 6.3% |
- of which Romania | 175 | 173 | 2 | 1.2% |
- of which Greece | 86 | 73 | 13 | 17.8% |
- of which Bulgaria | 8 | 9 | (1) | -11.1% |
- of which other countries | 2 | - | 2 | - |
Africa, Asia and Oceania | 107 | 101 | 6 | 5.9% |
Other | 105 | 316 | (211) | -66.8% |
Eliminations and adjustments | (128) | (119) | (9) | -7.6% |
Total | 7,733 | 8,056 | (323) | -4.0% |
(1) These figures have been adjusted for the purposes of comparison with those of December 2019 to take account of the fact that Panama, Costa Rica, Guatemala, El Salvador and Nicaragua, which were previously included in the North and Central America geographical area, are now included within Latin America.
Gross operating margin(1)
Millions of euro | ||||
2019 | 2018 | Change | ||
Italy | 1,240 | 1,220 | 20 | 1.6% |
Iberia | 358 | 361 | (3) | -0.8% |
Latin America | 2,218 | 2,201 | 17 | 0.8% |
- of which Argentina | 51 | 46 | 5 | 10.9% |
- of which Brazil | 335 | 395 | (60) | -15.2% |
- of which Chile | 899 | 877 | 22 | 2.5% |
- of which Colombia | 620 | 544 | 76 | 14.0% |
- of which Peru | 162 | 156 | 6 | 3.8% |
- of which Panama | 112 | 113 | (1) | -0.9% |
- of which other countries | 39 | 70 | (31) | -44.3% |
North America | 737 | 538 | 199 | 37.0% |
- of which the United States | 658 | 398 | 260 | 65.3% |
- of which Mexico | 79 | 140 | (61) | -43.6% |
Europe and Euro-Mediterranean Affairs | 112 | 115 | (3) | -2.6% |
- of which Romania | 75 | 62 | 13 | 21.0% |
- of which Russia | (1) | (1) | - | - |
- of which Greece | 35 | 49 | (14) | -28.6% |
- of which Bulgaria | 6 | 6 | - | - |
- of which other countries | (3) | (1) | (2) | - |
Africa, Asia and Oceania | 62 | 58 | 4 | 6.9% |
Other | (123) | 115 | (238) | - |
Total | 4,604 | 4,608 | (4) | -0.1% |
(1) These figures have been adjusted for the purposes of comparison with those of December 2019 to take account of the fact that Panama, Costa Rica, Guatemala, El Salvador and Nicaragua, which were previously included in the North and Central America geographical area, are now included within Latin America.
Gross operating margin decreased by €4 million from 2018, which was essentially due to the following:
- an increase of €199 million in the margin in North America, mainly due to:
- an increase of €260 million in the margin the United States due essentially to the increase (€92 million) related to the change in the scope of consolidation following the acquisition by Enel North America (formerly Enel Green Power North America) of 13 companies sold by Enel Green Power North America Renewable Energy Partners LLC (EGPNA REP) and to the negative goodwill on the transaction (€106 million); to the negative goodwill related to the purchase of Tradewind Energy (€75 million), which was partially offset by the company’s negative margin (-€53 million); to the gains on the disposal of the projects Outlaw (€22 million) and Gratiot (€20 million); to the increase in tax partnership income related to the companies High Lonesome Wind Power (€87 million) and Roadrunner Solar Project (€67 million), which were partially offset by decreases in such income from Diamond Vista (-€40 million) and Rattlesnake Creek (-€39 million);
- a reduction of €61 million in the margin in Mexico due mainly to the change in the scope of consolidation following the sale of eight companies from Project Kino at the end of September 2018;
- an increase of €17 million in the margin in Latin America, mainly due to:
- the increase of €76 million in the margin in Colombia, due essentially to an increase in revenue on electricity sales (€73 million) as a result of an increase in average prices and in quantities traded on the power exchange, and lower costs for electricity purchases and transport (€78 million) related to lower quantities purchased, and to a decrease in fuel consumption (€15 million), partially offset by an increase in costs for ancillary services related to the electricity business (€82 million);
- an increase of €22 million in the margin in Chile, essen tially attributable to recognition of €80 million in penalty revenue by Enel Generación Chile due to a major industrial client exercising the right to early withdrawal from a long-term electricity provisioning agreement, partially offset by a loss on the electricity margin (€62 million) as a result of a decrease in production;
- a decrease of €60 million in the margin in Brazil, where the increase in revenue from electricity sales as a result of greater generation, partly eroded by a reduction in spot prices, was more than offset by an increase in costs for the purchase of electricity and the change in the scope of consolidation related to the disposal of three plants;
- decrease of €31 million in the margin in other countries due mainly to a decline in revenue from the sale of electricity in Costa Rica and Guatemala as a result of decreases in quantities generated and the change in the scope of consolidation that took place in Uruguay in December 2018;
- an increase of €20 million in the margin in Italy due essentially to an increase in the sales price of electricity despite the lower volume of hydro generation, partially offset by the effect of the recognition in the previous year of the gain on the sale of EF Solare Italia (€65 million);
- a reduction of €238 million in the margin that mainly reflected the recognition in the previous year of the gain on the sale of eight Project Kino companies in Mexico at the end of September 2018, as well as the fair value measurement of the Group’s 20% interest in the companies (€190 million) and the gain on the sale of a number of companies in Uruguay (€18 million).
Operating income(1)
Millions of euro | ||||
2019 | 2018 | Change | ||
Italy | 909 | 828 | 81 | 9.8% |
Iberia | 183 | 208 | (25) | -12.0% |
Latin America | 1,809 | 1,776 | 33 | 1.9% |
- of which Argentina | 38 | 39 | (1) | -2.6% |
- of which Brazil | 250 | 309 | (59) | -19.1% |
- of which Chile | 728 | 699 | 29 | 4.1% |
- of which Colombia | 560 | 488 | 72 | 14.8% |
- of which Peru | 123 | 107 | 16 | 15.0% |
- of which Panama | 96 | 98 | (2) | -2.0% |
- of which other countries | 14 | 36 | (22) | -61.1% |
North America | 418 | 364 | 54 | 14.8% |
- of which the United States | 367 | 270 | 97 | 35.9% |
- of which Mexico | 51 | 94 | (43) | -45.7% |
Europe and Euro-Mediterranean Affairs | 58 | 195 | (137) | -70.3% |
- of which Romania | 49 | 40 | 9 | 22.5% |
- of which Russia | - | (1) | 1 | - |
- of which Greece | 10 | 154 | (144) | -93.5% |
- of which Bulgaria | 3 | 3 | - | - |
- of which other countries | (4) | (1) | (3) | - |
Africa, Asia and Oceania | 24 | 19 | 5 | 26.3% |
Other | (125) | 115 | (240) | - |
Eliminations and adjustments | - | - | - | - |
Total | 3,276 | 3,505 | (229) | -6.5% |
(1) These figures have been adjusted for the purposes of comparison with those of December 2019 to take account of the fact that Panama, Costa Rica, Guatemala, El Salvador and Nicaragua, which were previously included in the North and Central America geographical area, are now included within Latin America.
In 2019, operating income, taking account of depreciation, amortization and impairment losses in the amount of €1,328 million (€1,103 million in 2018), decreased by €229 million compared with 2018 due to an increase in depreciation and amortization in the United States (€116 million) related mainly to the change in the scope of consolidation noted earlier and the start of operations at the Rattlesnake, Hilltopper and Diamond Vista plants, the impairment losses on the assets of a number of wind projects that are no longer viable, and the fair value adjustment of hydroelectric projects classified as HFS (€36 million), as well as the recognition in the previous year of the reversal of impairment on the Hellas CGU (€117 million).
Capital expenditure(1)
Millions of euro | ||||
2019 | 2018 | Change | ||
Italy | 240 | 252(3) | (12) | -4.8% |
Iberia | 765 | 246 | 519 | - |
Latin America | 1,055(2) | 654 | 401 | 61.3% |
North America | 1,744 | 1,322(4) | 422 | 31.9% |
Europe and Euro-Mediterranean Affairs | 189 | 139 | 50 | 36.0% |
Africa, Asia and Oceania | 274 | 142 | 132 | 93.0% |
Other | 26 | 29 | (3) | -10.3% |
Total | 4,293 | 2,784 | 1,509 | 54.2% |
(1) These figures have been adjusted for the purposes of comparison with those of December 2019 to take account of the fact that Panama, Costa Rica, Guatemala, El Salvador and Nicaragua, which were previously included in the North and Central America geographical area, are now included within Latin America.
(2) The figure does not include €4 million regarding units classified as “held for sale”.
(3) The figure does not include €3 million regarding units classified as “held for sale”.
(4) The figure does not include €375 million regarding units classified as “held for sale”.
Capital expenditure increased by €1,509 million compared with the previous year. More specifically, the change is attributable to:
- an increase of €519 million in capital expenditure in Iberia attributable mainly to wind farms (€364 million) and photovoltaic plants (€153 million);
- an increase of €422 million in capital expenditure in North America, mainly attributable to an increase of €237 million in the United States and of €74 million in Mexico for solar plants and to increases in capital expenditure for wind farms (€112 million) following a sharp increase in Mexico (€224 million), partially offset by a decrease in capital expenditure in the United States (€198 million);
- an increase of €401 million in capital expenditure in Latin America attributable mainly to wind farms (€274 million) and photovoltaic plants (€170 million), which was partially offset by a decrease in capital expenditure on hydroelectric plants (€90 million). The increase in capital expenditure was concentrated in Brazil;
- an increase of €132 million in capital expenditure in Africa, Asia and Oceania related mainly to wind farms (€82 million) following an increase in South Africa (€101 million), which was partially offset by decreases in capital expenditure in India (€19 million) and for solar plants (€50 million), mainly in Australia (€38 million);
- an increase of €50 million in capital expenditure by Europe and Euro-Mediterranean Affairs, mainly on wind farms in Russia and Greece.