Enel X

105,237
CHARGING
POINTS(1)
2,794
thousand of unit
LIGHTING
POINTS
6.0
GW
DEMAND RESPONSE CAPACITY
152
million
GROSS OPERATING PROFIT
+
12.2
%
CAPITAL EXPENDITURE

(1)The number of charging points including interoperable points was equal to about 186 thousand at December 31, 2020 and about 82 thousand at December 31, 2019.

Operations

  2020 2019 Change
Demand response capacity (MW) 6,038 6,297 (259) -4.1%
Lighting points (thousands of units) 2,794 2,424 370 15.3%
Storage (MW)(1) 123 110 13 11.8%
Charging points (no.)(2) 105,237 79,565 25,672 32.3%

(1) Includes storage-on-plant.
(2) The number of charging points including interoperable points was equal to about 186 thousand at December 31, 2020 and about 82 thousand at December 31, 2019.

In 2020, the Group further expanded the vehicle-charging infrastructure. Private charging points increased by 21,033, mainly in North America and Italy, while public charging points increased by 4,639, primarily in Italy and Spain.

Performance

Millions of euro      
  2020 2019 Change
Revenue 1,121 1,130 (9) -0.8%
Gross operating profit 152 158 (6) -3.8%
Ordinary gross operating profit 161 158 3 1.9%
Operating loss (16) (98) 82 83.7%
Capital expenditure 303 270 33 12.2%

The following tables show a breakdown of performance by Region/Country in 2020.

Revenue

Millions of euro      
  2020 2019 Change
Italy 324 282 42 14.9%
Iberia 244 261 (17) -6.5%
Latin America 218 186 32 17.2%
- of which Argentina 7 4 3 75.0%
- of which Brazil 20 17 3 17.6%
- of which Chile 68 81 (13) -16.0%
- of which Colombia 75 77 (2) -2.6%
- of which Peru 48 7 41 -
North America 192 328 (136) -41.5%
Europe 53 35 18 51.4%
Africa, Asia and Oceania 55 52 3 5.8%
Other 156 66 90 -
Eliminations and adjustments (121) (80) (41) -51.3%
Total 1,121 1,130 (9) -0.8%

Gross operating profit

Millions of euro      
  2020 2019 Change
Italy 38 13 25 -
Iberia 39 38 1 2.6%
Latin America 83 64 19 29.7%
- of which Argentina 3 - 3 -
- of which Brazil 2 (1) 3 -
- of which Chile 15 26 (11) -42.3%
- of which Colombia 41 38 3 7.9%
- of which Peru 22 1 21 -
North America (10) 80 (90) -
Europe 9 - 9 -
Africa, Asia and Oceania 2 (1) 3 -
Other (9) (36) 27 75.0%
Total 152 158 (6) -3.8%

The gross operating profit decreased mainly as a result of the recognition in 2019 of an indemnity in the amount of €98 million in North America in application of contractual clauses related to the sale of eMotorWerks. This decrease was partially offset by an improvement in operating performance in other countries, in particular:

  • in Italy, thanks to the positive performance of e-Home and Vivi Meglio products for energy and seismic upgrading;
  • in Other, where negative goodwill of €20 million was recognized for Paytipper following completion of the purchase price allocation process.

The ordinary gross operating profit came to €161 million (€158 million in 2019). The difference of €9 million compared with the gross operating profit is due to €2 million in non-recurring costs incurred in response to the COVID-19 health emergency and to other charges, in the amount of €7 million, connected with direct and indirect activities related to digitalization and the acceleration of the energy transition.

Operating profit

Millions of euro      
  2020 2019 Change
Italy (12) (45) 33 73.3%
Iberia (7) (13) 6 46.2%
Latin America 71 58 13 22.4%
- of which Argentina 3 - 3 -
- of which Brazil (2) (4) 2 50.0%
- of which Chile 14 24 (10) -41.7%
- of which Colombia 40 37 3 8.1%
- of which Peru 16 1 15 -
North America (52) (50) (2) -4.0%
Europe 3 (3) 6 -
Africa, Asia and Oceania (1) (5) 4 80.0%
Other (18) (40) 22 55.0%
Total (16) (98) 82 83.7%

Despite the decrease in gross operating profit, operating loss for 2020 improved essentially as a result of a decrease in depreciation, amortization and impairment losses totaling €88 million, primarily in North America.

Capital expenditure

Millions of euro      
  2020 2019 Change
Italy 70 52 18 34.6%
Iberia 50 64 (14) -21.9%
Latin America 67 40 27 67.5%
North America 36 61 (25) -41.0%
Europe 5 4 1 25.0%
Africa, Asia and Oceania 3 1 2 -
Other 72 48 24 50.0%
Total 303 270 33 12.2%

Capital expenditure increased primarily in Latin America in relation to the e-Bus project in Colombia; in Italy due to increased investment on public lighting and to develop the e-Home and Vivi Meglio businesses; and for Enel X Srl due to increased investment in ICT and the capitalization of personnel expenses. These effects were partially offset by decreased capital expenditure on storage distributed energy and demand response in the United States and on the e-Home business in Spain due mainly to a change in business model and to a slowing of capital expenditure in response to COVID-19.

Services and Other

Performance

Millions of euro      
  2020 2019 Change
Revenue 2,139 2,229 (90) -4.0%
Gross operating loss (237) (18) (219) -
Ordinary gross operating loss (83) (18) (65) -
Operating loss (444) (246) (198) -80.5%
Capital expenditure 174 179 (5) -2.8%

The table below shows the financial performance by Region/Country in 2020.

Revenue

Millions of euro      
  2020 2019 Change
Italy 749 1,359 (610) -44.9%
Iberia 480 597 (117) -19.6%
Latin America 13 27 (14) -51.9%
Europe 24 28 (4) -14.3%
Other 1,103 291 812 -
Eliminations and adjustments (230) (73) (157) -
Total 2,139 2,229 (90) -4.0%

Gross operating loss

Millions of euro      
  2020 2019 Change
Italy 68 169 (101) -59.8%
Iberia (94) 66 (160) -
Latin America (88) (123) 35 28.5%
North America (3) - (3) -
Europe 4 5 (1) -20.0%
Other (124) (135) 11 8.1%
Total (237) (18) (219) -

The increase in the gross operating loss in 2020 is mainly attributable to:

  • Spain, in the amount of €160 million, mainly related to a decline in revenue from services provided to other companies of the Group; increased costs following the allocation of provisions for the termination incentives program as a result of changes introduced in the agreement on the voluntary suspension or resolution of employment contracts; and restructuring costs related to the direct and indirect activities connected with the Group’s digitalization and energy-transition plans. These effects were partially offset by decreased costs related to the release of the electricity discount provision following the signing of the 5th Endesa Collective Bargaining Agreement;
  • Italy, in the amount of €101 million, as a result of a reduction in revenue from services and from customer contracts for other Group companies, only partially offset by a reduction in service costs and personnel expenses. These factors are mainly attributable to the spin-off of the Global Procurement and Global Digital Solutions business units, which are now included in the aggregate “Other”, the gross operating loss for which decreased by €11 million.

Also of note is the negative impact on margins of costs incurred for the COVID-19 pandemic (€47 million), mainly in Italy and Spain.
The ordinary gross operating loss was €154 million smaller than the gross operating loss as a result of the non-recurring costs associated with COVID-19 for workplace sanitization activities, personal protective equipment and donations, as well as charges related to direct and indirect activities connected with digitalization and the acceleration of the energy transition (€107 million).

Operating loss

Millions of euro      
  2020 2019 Change
Italy (1) 17 (18) -
Iberia (140) 19 (159) -
Latin America (90) (122) 32 26.2%
North America (6) - (6) -
Europe 3 3 - -
Other (210) (163) (47) -28.8%
Total (444) (246) (198) -80.5%

The operating loss for 2020 is essentially in line with the increase in the gross operating loss, taking account of the €21 million decrease in depreciation, amortization and impairment losses.

Capital expenditure

Millions of euro      
  2020 2019 Change
Italy 33 78 (45) -57.7%
Iberia 27 46 (19) -41.3%
Latin America 3 9 (6) -66.7%
Europe - 1 (1) -
Other 111 45 66 -
Total 174 179 (5) -2.8%

Overall capital expenditure was broadly in line with that in 2019. The decrease in capital expenditure in Italy in 2020 is mainly attributable to the spin-off of the Global Procurement and Global Digital Solutions business units, which are now included under “Other”.