Press releases
February
21
2011
Sorgenia (CIR Group): revenues of 2.67 billion (+14.7%). Operating margins higher.
Board of Directors approves results as of December 31 2010
SORGENIA (CIR GROUP): REVENUES OF 2.67 BILLION (+14.7%), OPERATING MARGINS HIGHER
In a difficult year for the energy sector because of the economic situation, the company benefited from actions undertaken to counter the loss of profit margins which occurred in the wholesale electricity and gas markets
Operating results show significant growth partly thanks to the rise in volumes of electricity sold and the balance between generation and sales. Adjusted earnings down
New Turano-Bertonico (Lodi) power plant and new wind parks and photovoltaic farms in Italy and France start operating. New authorizations obtained for generating from renewable sources in Italy, France and Romania
On February 28 presentation of Business Plan 2011-2016 to the financial community
Milan, February 21 2011 - The Board of Directors of Sorgenia SpA, the company controlled by the CIR group in which the Austrian provider VERBUND holds a stake, met today under the chairmanship of Rodolfo De Benedetti and approved the proposed financial statements for financial year 2010.
Consolidated results for 2010 - highlights (in millions of euro)
¹The adjusted gross operating margin (EBITDA) and net income were obtained by excluding the fair value measurement of hedging contracts from the EBITDA and net income figures.
Performance of operations
In 2010, in a market scenario still strongly conditioned by the difficult economic situation, Sorgenia achieved a significant rise in revenues and gross operating margin (EBITDA) compared to 2009 thanks above all to the results obtained in the second half of the year. Sorgenia benefited in particular from the effective measures undertaken to counter the loss of margin that occurred in the wholesale electricity and gas markets. The rise in the operating results of the company was due to the rise in volumes of electricity sold to end-user clients (+16.3%) and to the balance between generation and sales which is one of the distinguishing features of Sorgenia.
As far as its investment plan is concerned, the most significant event of 2010 was the entry into operation at the end of the year of the new combined cycle power plant at Bertonico-Turano Lodigiano (Lodi) with an output of approximately 800 MW. This is the third plant of this kind to be designed and built by Sorgenia after Termoli (Campobasso) and Modugno (Bari). In the field of generating from renewable sources, Sorgenia started operating new plants and has obtained new authorizations in Italy and in France. New authorizations were obtained in Romania too.
Consolidated results
The sales revenues of the Sorgenia group in 2010 totalled 2,668.5 million euro, and were up by 14.7% on the figure for 2009 (2,325.8 million euro) and were higher even than the all-time highs of 2008. Electricity sales volumes, amounting to 11.6 Terawatt hours - TWh (10 TWh in 2009), experienced double-digit growth (+16.3%) and more than compensated for the decline in the unit price of energy products caused by the difficult economic situation.
Adjusted EBITDA for 2010 came in at 163.9 million euro, up by 49.2% from 109.9 million euro in 2009. EBITDA came to 151.1 million euro, and was up by 28.2% on the figure for 2009 (117.8 million euro). The strong rise from the previous year was due above all to the improvement in results in the second part of the year. EBITDA benefited in particular from the rise in electricity sales volumes, the contribution of the Modugno power plant and higher margins in generation from renewable sources. These factors, together with the action taken to preserve profit margins, more than compensated for the narrower sales margins on natural gas, caused mainly by sourcing costs on outstanding contracts, higher provisions set aside for client receivables due to the worsening economic situation and high congestion costs on the electricity grid.
The adjusted consolidated net income figure was 62.8 million euro, down by 6.2% from the figure of 2009 (67 million euro). Net income came to 50.4 million euro, down from 66.7 million euro in 2009. Compared to the previous year the net result was affected by higher financial expense due to the rise in the average debt level for the period. It should be noted that in both years earnings benefited from tax credits for investments in new production capacity.
Consolidated net debt at December 31 2010 stood at 1,745.7 million euro, substantially in line with the figure of 1,740.9 million euro at September 30 2010 (1,341 million euro at December 31 2009). The change in the debt figure during the year was due to the substantial investments in new production capacity, especially thermoelectric and from renewable sources. Total investment in the year came to approximately 450 million euro. During 2010, the company extended to 2015 the maturity of two loan agreements signed in 2007 for a total of 850 million euro, thus further improving its financial structure.
The group had 415 employees at December 31 2010 (380 at December 31 2009).
Roll-out of the investment plan
During 2010 roll-out continued of the investment plan of the Sorgenia group.
In thermoelectric generation, Sorgenia completed construction of the Bertonico-Turano Lodigiano (Lodi) CCGT power plant, which involved an investment of around 450 million euro. The new plant, which officially began commercial operations on February 15 2011, has taken Sorgenia closer to its objective of producing the electricity it sells to its end customers independently. Work is also continuing on the construction of the Aprilia plant (Latina).
In the development of generation from wind energy sources, in 2010 the wind parks at Leffincourt (France) for 32 MW and San Martino in Pensilis (Campobasso) for 12 MW entered production and the construction of the 9 MW park at Bouillancourt (France) was completed. Sorgenia has also obtained authorization for the construction of new wind parks for around 100 MW in Italy, 100 MW in France and 200 MW in Romania.
In generation by photovoltaic energy sources, the subsidiary Sorgenia Solar has started production at further new plants with a total output of 10 MW. In France authorization has been obtained for the construction of a 15 MW plant at Grand Bois.
In the Exploration&Production (E&P) sector, the activities continue of the subsidiary Sorgenia E&P, which holds exploration licenses in Colombia, the North Sea and Poland.
Business Plan 2011-2016
On Monday February 28 2011 Sorgenia will present its Business Plan 2011-2016 during a conference call with the financial community scheduled for 15:00 hours CET. It will be possible to follow the presentation in a webcast on the websites www.sorgenia.it and www.cirgroup.com.
SORGENIA (CIR GROUP): REVENUES OF 2.67 BILLION (+14.7%), OPERATING MARGINS HIGHER
In a difficult year for the energy sector because of the economic situation, the company benefited from actions undertaken to counter the loss of profit margins which occurred in the wholesale electricity and gas markets
Operating results show significant growth partly thanks to the rise in volumes of electricity sold and the balance between generation and sales. Adjusted earnings down
New Turano-Bertonico (Lodi) power plant and new wind parks and photovoltaic farms in Italy and France start operating. New authorizations obtained for generating from renewable sources in Italy, France and Romania
On February 28 presentation of Business Plan 2011-2016 to the financial community
Milan, February 21 2011 - The Board of Directors of Sorgenia SpA, the company controlled by the CIR group in which the Austrian provider VERBUND holds a stake, met today under the chairmanship of Rodolfo De Benedetti and approved the proposed financial statements for financial year 2010.
Consolidated results for 2010 - highlights (in millions of euro)
|
| 2010
| 2009 | Δ% |
| Revenues | 2,668.5 | 2,325.8 | 14.7% |
| EBITDA adjusted¹ EBITDA Net income adjusted | 163.9 151.1 62.8 | 109.9 117.8 67 | 49.2% 28.2% (6.2%) |
| Net income | 50.4 | 66.7 | (24.5%) |
| Net debt | 1,745.7 | 1,740.9 (at 30/09) |
|
Performance of operations
In 2010, in a market scenario still strongly conditioned by the difficult economic situation, Sorgenia achieved a significant rise in revenues and gross operating margin (EBITDA) compared to 2009 thanks above all to the results obtained in the second half of the year. Sorgenia benefited in particular from the effective measures undertaken to counter the loss of margin that occurred in the wholesale electricity and gas markets. The rise in the operating results of the company was due to the rise in volumes of electricity sold to end-user clients (+16.3%) and to the balance between generation and sales which is one of the distinguishing features of Sorgenia.
As far as its investment plan is concerned, the most significant event of 2010 was the entry into operation at the end of the year of the new combined cycle power plant at Bertonico-Turano Lodigiano (Lodi) with an output of approximately 800 MW. This is the third plant of this kind to be designed and built by Sorgenia after Termoli (Campobasso) and Modugno (Bari). In the field of generating from renewable sources, Sorgenia started operating new plants and has obtained new authorizations in Italy and in France. New authorizations were obtained in Romania too.
Consolidated results
The sales revenues of the Sorgenia group in 2010 totalled 2,668.5 million euro, and were up by 14.7% on the figure for 2009 (2,325.8 million euro) and were higher even than the all-time highs of 2008. Electricity sales volumes, amounting to 11.6 Terawatt hours - TWh (10 TWh in 2009), experienced double-digit growth (+16.3%) and more than compensated for the decline in the unit price of energy products caused by the difficult economic situation.
Adjusted EBITDA for 2010 came in at 163.9 million euro, up by 49.2% from 109.9 million euro in 2009. EBITDA came to 151.1 million euro, and was up by 28.2% on the figure for 2009 (117.8 million euro). The strong rise from the previous year was due above all to the improvement in results in the second part of the year. EBITDA benefited in particular from the rise in electricity sales volumes, the contribution of the Modugno power plant and higher margins in generation from renewable sources. These factors, together with the action taken to preserve profit margins, more than compensated for the narrower sales margins on natural gas, caused mainly by sourcing costs on outstanding contracts, higher provisions set aside for client receivables due to the worsening economic situation and high congestion costs on the electricity grid.
The adjusted consolidated net income figure was 62.8 million euro, down by 6.2% from the figure of 2009 (67 million euro). Net income came to 50.4 million euro, down from 66.7 million euro in 2009. Compared to the previous year the net result was affected by higher financial expense due to the rise in the average debt level for the period. It should be noted that in both years earnings benefited from tax credits for investments in new production capacity.
Consolidated net debt at December 31 2010 stood at 1,745.7 million euro, substantially in line with the figure of 1,740.9 million euro at September 30 2010 (1,341 million euro at December 31 2009). The change in the debt figure during the year was due to the substantial investments in new production capacity, especially thermoelectric and from renewable sources. Total investment in the year came to approximately 450 million euro. During 2010, the company extended to 2015 the maturity of two loan agreements signed in 2007 for a total of 850 million euro, thus further improving its financial structure.
The group had 415 employees at December 31 2010 (380 at December 31 2009).
Roll-out of the investment plan
During 2010 roll-out continued of the investment plan of the Sorgenia group.
In thermoelectric generation, Sorgenia completed construction of the Bertonico-Turano Lodigiano (Lodi) CCGT power plant, which involved an investment of around 450 million euro. The new plant, which officially began commercial operations on February 15 2011, has taken Sorgenia closer to its objective of producing the electricity it sells to its end customers independently. Work is also continuing on the construction of the Aprilia plant (Latina).
In the development of generation from wind energy sources, in 2010 the wind parks at Leffincourt (France) for 32 MW and San Martino in Pensilis (Campobasso) for 12 MW entered production and the construction of the 9 MW park at Bouillancourt (France) was completed. Sorgenia has also obtained authorization for the construction of new wind parks for around 100 MW in Italy, 100 MW in France and 200 MW in Romania.
In generation by photovoltaic energy sources, the subsidiary Sorgenia Solar has started production at further new plants with a total output of 10 MW. In France authorization has been obtained for the construction of a 15 MW plant at Grand Bois.
In the Exploration&Production (E&P) sector, the activities continue of the subsidiary Sorgenia E&P, which holds exploration licenses in Colombia, the North Sea and Poland.
Business Plan 2011-2016
On Monday February 28 2011 Sorgenia will present its Business Plan 2011-2016 during a conference call with the financial community scheduled for 15:00 hours CET. It will be possible to follow the presentation in a webcast on the websites www.sorgenia.it and www.cirgroup.com.
21 February 2011 | 12:42 CET
Contacts
- Salvatore Ricco
+39 02 72270.276
Salvatore Ricco - Francesca Sagramoso
+39 02 72270.243
Francesca Sagramoso
