As of December 31 2010 the joint ventures were Tirreno Power and KTP.
International accounting standards give two methods for consolidating holdings in joint ventures:
. the usual method, which involves pro-rata consolidation;
. the alternative method which involves use of the equity method.
The Group has adopted the equity method for the sake of consistency with the way the accounts were presented previously.
The chart below shows the key financial figures of the company Tirreno Power and of the KTP group:
Tirreno Power
|
(in millions of euro) |
Financial year |
Financial year |
Change in |
Change |
|
|
2010 |
2009 |
absolute terms |
% |
|
Income statement |
|
|
|
|
|
Electricity sold (TWh) |
15.3 |
14.4 |
0.9 |
6.3 |
|
Revenues from sales and services |
1,288.5 |
1.240.9 |
47.6 |
3.8 |
|
Gross operating margin |
249.4 |
261.4 |
(12.0) |
(4.6) |
|
Net income |
74.5 |
79.8 |
(5.3) |
(6.6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.12.2010 |
31.12.2009 |
|
Change in |
|
|
|
|
|
absolute terms |
|
Balance sheet |
|
|
|
|
|
Net invested capital |
1,479.7 |
1,451.6 |
|
28.1 |
|
Net financial debt |
990.9 |
1,042.0 |
|
(51.1) |
|
Shareholders’ equity |
488.8 |
409.6 |
|
79.2 |
|
No. of employees |
526 |
591 |
|
(65) |
The pertinent part of the earnings of Tirreno Power, consolidated using the equity method on the basis of values determined by the application of IAS/IFRS accounting standards, totalled € 37.7 million in 2010, down from € 39.9 million in 2009.
KTP
|
(in thousands of euro) |
31.12.2010 |
31.12.2009 |
|
Assets |
|
|
|
- Current |
140,900 |
131,832 |
|
- Non-current |
441,729 |
482,303 |
|
Total assets |
582,629 |
614,135 |
|
|
|
|
|
Liabilities and equity |
|
|
|
- Current |
559,641 |
566,791 |
|
- Non-current |
262,115 |
267,667 |
|
Shareholders’ equity |
(239,127) |
(220,263) |
|
Total liabilities and equity |
582,629 |
614,135 |
|
|
|
|
|
|
|
|
|
Income statement |
|
|
|
Interest income |
33,732 |
47,425 |
|
Commission income |
98,493 |
107,241 |
|
Total income |
132,225 |
154,666 |
|
Interest expense |
(43,132) |
(63,542) |
|
Commission expense |
(45,470) |
(58,334) |
|
Operating costs and other |
(59,665) |
(100,862) |
|
Taxes |
(5,087) |
(5,894) |
|
Total costs |
(153,354) |
(228,632) |
|
Net result |
(21,129) |
(73,966) |
The figures shown above refer to the last approved financial statements available.
In accordance with the terms of IAS/IFRS international accounting standards, the value of the investments in Tirreno Power and KTP was subjected to an impairment test at December 31 2010.