Improved operational efficiency, growth in output, simplification of the group, active management of the portfolio and rewards for shareholders: these are the specific ideas that underpin our 2016-19 strategic plan, and which form the basis for building the Enel of the future.
Our plan is confidently based on long-term growth in output, especially in renewables and our grid systems. An ambitious efficiency programme is planned, involving a reduction in maintenance costs and operational expenses in all global lines of business.
We have chosen to summarise this strategy using the slogan Open Power, an approach that concentrates on the concept of openness in terms of sustainability and thus innovation and technological development.
In 2016 significant progress has been made in achieving the targets set for each of the five basic principles of the strategic plan, which allow us to confirm the financial targets for the 2017/2019 period. In 2016, the excellent Group performance in the implementation of the Open Power strategy has raised the net profit by 17%, and the ordinary EBITDA (+ 1.3%) above market expectations and the target announced last November, despite the challenging macroeconomic environment. The growth in renewable energy, the efficient cost management, the satisfactory margins achieved in Latin America and the positive evolution of the retail sector in the mature markets of Italy and Spain have helped to offset the decrease in revenues and the unfavorable exchange rate.
Revenues amounted to 70.6 billion euros, a 6.7% decrease of compared with the 75.7 billion achieved in 2015. This trend is affected by the lower revenue from electricity sales in mature markets, the reduction in generated energy sales (due to the deconsolidation of the Slovakian company Slovenské elektrárne), lower electricity trading activities, lower revenues resulting from distribution fees charged in Italy and negative exchange rates, in particular in Latin American countries.
The EBITDA amounted to € 15.3 billion, unchanged from the previous year.
The net financial debt at end 2016 amounted to 37.6 billion euro, up 0.3% compared to December 2015, due to the significant change in exchange rates in the last months of 2016.
The pay-out is about 57%, higher than the 55% indicated in the dividend policy for the year 2016
In 2016 Enel produced approximately 262 TWh of electricity, installed 1,949 MW of additional capacity, distributed 426 TWh over its networks and sold 263 TWh of electricity and 10.6 billion m3 of gas to 65 million end-users in the world (compared to 61.5 in 2015)
In Italy, the net production in 2016 was 275.649 GWh, with an 18.7% increase in wind power, and the energy sold was 94.1 TWh (+6.1 compared to 2015).