Consolidated Income Statement
Millions of euro | Notes | ||||
2019 | 2018 | ||||
of which with related parties | of which with related parties | ||||
Revenue from sales and services (1) | 77,366 | 4,804 | 73,037 | 5,387 | |
Other income | 2,961 | 16 | 2,538 | 38 | |
[Subtotal] | 80,327 | 75,575 | |||
Costs | |||||
Electricity, gas and fuel purchases (1) | 33,755 | 7,189 | 37,264 | 7,737 | |
Services and other materials (1) | 18,580 | 2,617 | 18,406 | 2,644 | |
Personnel | 4,634 | 4,581 | |||
Net impairment/(reversals) of trade receivables and other receivables | 1,144 | 1,096 | |||
Depreciation, amortization and other impairment losses | 9,682 | 5,355 | |||
Other operating expenses (1) | 7,276 | 235 | 1,769 | 272 | |
Capitalized costs | (2,355) | (2,264) | |||
| [Subtotal] | 72,716 | 66,207 | ||
Net income/(expense) from commodity risk management (1) | (733) | 11 | 532 | 10 | |
Operating income | 6,878 | 9,900 | |||
Financial income from derivatives | 1,484 | 1,993 | |||
Other financial income | 1,637 | 88 | 1,715 | 59 | |
Financial expense from derivatives | 1,142 | 1,532 | |||
Other financial expense | 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 | (122) | 349 | |||
Income before taxes | 4,312 | 8,201 | |||
Income taxes | 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
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 | (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
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 | 79,809 | 76,631 | |||
Investment property | 112 | 135 | |||
Intangible assets | 19,089 | 19,014 | |||
Goodwill | 14,241 | 14,273 | |||
Deferred tax assets | 9,112 | 8,305 | |||
Equity investments accounted for using the equity method | 1,682 | 2,099 | |||
Derivatives | 1,383 | 15 | 1,005 | ||
Non-current contract assets | 487 | 346 | |||
Other non-current financial assets | 6,006 | 5,769 | |||
Other non-current assets | 2,701 | 1,272 | |||
| [Total] | 134,622 | 128,849 | ||
Current assets | |||||
Inventories | 2,531 | 2,818 | |||
Trade receivables | 13,083 | 896 | 13,587 | 1,085 | |
Current contract assets | 166 | 135 | |||
Tax receivables | 409 | 660 | |||
Derivatives | 4,065 | 8 | 3,914 | 52 | |
Other current financial assets | 4,305 | 27 | 5,160 | 21 | |
Other current assets | 3,115 | 183 | 2,983 | 165 | |
Cash and cash equivalents | 9,029 | 6,630 | |||
[Total] | 36,703 | 35,887 | |||
Assets classified as held for sale | 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 | 46,938 | 47,852 | |||
Non-current liabilities | |||||
Long-term borrowings | 54,174 | 715 | 48,983 | 804 | |
Employee benefits | 3,771 | 3,187 | |||
Provisions for risks and charges (non-current portion) | 5,324 | 5,181 | |||
Deferred tax liabilities | 8,314 | 8,650 | |||
Derivatives | 2,407 | 2,609 | |||
Non-current contract liabilities | 6,301 | 151 | 6,306 | ||
Other non-current liabilities | 3,706 | 1,901 | 86 | ||
| [Total] | 83,997 | 76,817 | ||
Current liabilities | |||||
Short-term borrowings | 3,917 | 3,616 | |||
Current portion of long-term borrowings | 3,409 | 89 | 3,367 | 89 | |
Provisions for risks and charges (current portion) | 1,196 | 1,312 | |||
Trade payables | 12,960 | 2,291 | 13,387 | 2,924 | |
Income tax payable | 209 | 333 | |||
Derivatives | 3,554 | 8 | 4,343 | 35 | |
Current contract liabilities | 1,328 | 39 | 1,095 | 25 | |
Other current financial liabilities | 754 | 788 | |||
Other current liabilities | 13,161 | 30 | 12,107 | 69 | |
| [Total] | 40,488 | 40,348 | ||
Liabilities included in disposal groups classified as held for sale | 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)
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
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 | 1,144 | 1,096 | |||
Depreciation, amortization and other impairment losses | 9,682 | 5,355 | |||
Financial (income)/expense | 2,443 | 2,048 | |||
Net income of equity investments accounted for using the equity method | 123 | (349) | |||
Changes in net working capital: | (273) | 153 | |||
- inventories | 318 | (117) | |||
- trade receivables | (877) | 189 | 426 | (253) | |
- trade payables | (51) | (633) | 734 | 559 | |
- other contract asset (1) | (31) | - | |||
- other contract liabilities (1) | 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 | 1,582 | 88 | 1,768 | 59 | |
Interest expense and other financial expense paid | (4,235) | (46) | (4,342) | (55) | |
Net (income)/expense from measurement of commodities | (86) | (71) | |||
Income taxes paid | (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 | (8,236) | (6,908) | |||
Investments in intangible assets | (1,023) | (1,351) | |||
Investments in non-current contract assets | (692) | (271) | |||
Investments in entities (or business units) less cash and cash equivalents acquired | (320) | (1,472) | |||
Disposals of entities (or business units) less cash and cash equivalents sold | 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) | 8,899 | 13,424 | |||
Repayments of financial debt (1) | (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.
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