the effect of the halt to the “price cut” decree – Corriere.it

Edison closes the first quarter of 2023 with revenues of 6.1 billion and profits growing to 288 million. The gross operating margin (Ebitda) grew to 544 million (+52.4%) from 357 million euros in the first quarter of 2022. The group – reads the note – recorded a solid performance of all businesses. The growth was driven by the contribution of renewable production and the good performance of sales in the Gas&Power segment on the final market, after a 2022 in severe suffering. Net profit equal to 288 million from 27 million in the first quarter of 2022, which included a first estimate of the extraordinary contribution provided for by the Price Cut decree. Financial debt at 31 March 2023 stood at 169 million euros from 477 million euros at 31 December 2022, an improvement thanks to the good results of operating management which puts the Group in a position to consolidate its position in the energy transition businesses .

Revenues: less gas, more electricity

Sales revenue fell to $6,120 million from $7,111 million in the same period last year due to the contraction in the volumes of natural gas sold, which brought the revenues of the Gas Activities Business to 4,317 million (down by 23.5% compared to the first quarter of 2022). Revenues from the Electric Power Operations grew, up by 15% mainly due to the increase in the average contractual price. On the result, explains the group led by Nicola Monti, the perimeter effect also had a positive effect in part, with the entry into production of the Mazara 2 wind farmthe acquisition of a further 66 MW of wind power in Campania and the entry into public lighting.

The contribution of renewables

The gross operating margin jumped to 544 million from 357 million thanks to the contribution of renewables, sales to the final market and gas activities which benefited from the portfolio optimization actions. Positive contribution from Edison Energia, which reached 2 million contracts for electricity, gas and value-added services (and which aims to double also in view of the end of the protected market in January 2014); Edison Next’s energy and environmental services also did well, with the entry, in May 2022, of Citelum Italia into the perimeter of the group, a leading company in public lighting.

The decline in consumption

In the first quarter of 2023 the demand for electricity in Italy stood at 77.4 TWh, marking a decrease of 4% compared to the same period of 2022. All sources of production decreased: thermoelectric generation, which remains the leading national source, recorded the most marked contraction (-13.9% to 45.1 TWh), while hydroelectric generation also decreased (-1.5%) while the renewable one from wind and photovoltaic power is substantially in line with 12.1 TWh. Imports grew to 13.7 TWh (+ 43.4% ). Overall, domestic production contributed about 82.4% of total electricity demand. On the price front, in the first quarter of 2023 the Single National Price (Pun) stood at an average value of 157.2 euro/MWh, down by 36.9% compared to the same period of last 2022in particular due to the reduction in thermoelectric generation costs and the contraction in demand.

Prices already

The reduction in national gas consumption was more decisive, dropping by 18.9% to 20.7 billion cubic metres. During the period, all jobs decreased: residential consumption decreased by 17.1% to 11.6 billion cubic meters, thermoelectric consumption by 26.9% to 5.3 billion cubic meters, industrial consumption by 13.2% to 3 billion cubic meters. This trend is mainly attributable to temperatures above the seasonal averages and to the effects of the national plan to contain natural gas consumption. On the price front, spot gas in Italy in the first quarter of 2023 stood at an average value of 60.6 cents per cubic meter (-41.6%). The decline took place in a context of greater supply of Liquefied Natural Gas and a reduction in demand, factors which, among other things, limited withdrawals from storage sites. Oil prices are also decreasing, which in the first quarter of 2023 recorded an average value of 82.2 dollars a barrel, down by 15.4% compared to the same period of 2022.