Bloomberg News

Edison Posts Nine-Month Loss on Writedowns, Higher Taxes

October 28, 2011

Oct. 28 (Bloomberg) -- Edison SpA, Italy’s second-largest power producer, posted a nine-month loss because of costly gas contracts, writedowns and an increased tax on energy companies.

The Milan-based company had a net loss of 93 million euros ($132 million), compared with a profit of 179 million euros a year earlier, according to a stock exchange statement. Edison said it had writedowns of 70 million euros and lost 23 million euros from a recent tax increase on energy companies known as the Robin Hood Tax.

Edison is in the process of renegotiating gas contracts, signed when oil prices were higher that oblige the power producer to pay more for the fuel than it can sell it for.

While the recent renegotiation of contracts with Promgas and Eni SpA allows the company to confirm its 900 million-euro earnings before interest, taxes, depreciation and amortization target, the negative impact “on the company’s profitability will persist” until negotiations are concluded, Edison said.

Sales increased 13 percent in the nine months to 8.6 billion euros, while Ebitda declined 23 percent to 717 million euros. Net debt as of Sept. 30 was 4.1 billion euros, up from 3.7 billion euros at the end of 2010.

--Editors: Stephen Cunningham, Tony Barrett.

To contact the reporter on this story: Alessandra Migliaccio in Rome at amigliaccio@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net


Toyota's Hydrogen Man
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus