Utilities Flash Report
by Saverio Caldani, Chiara Loreti, Irene Macchiarelli, Vincenzo Ippolito, Leonardo Rosetto, Andrea Ramboli, Paola Abbate, Jacobo Rosso
Analysis of the Italian Utilities Sector - Full Year 2012 results

Even if 2012 was characterized by significant uncertainty surrounding the global macroeconomic situation, the full-year figures confirmed the positive trend already seen in the previous quarters for almost all Utilities in the panel. Despite the high cost of the commodities, the negative macroeconomic situation, the uncertain regulatory framework and the end of CIP6 incentives, most of the companies were able to turn their increased revenues into higher margins. The financial structure too shows an improvement for most of the companies thanks to the growth of their marginality and to the reduction of their net financial position (NFP) through corporate rationalization strategies. The report depicts also the key challenges to watch in 2013, for the Italian utilities:

  • An unstable regulatory environment that impacts all Local Public Services that does not allow Utilities to have a clear vision on the medium-long term
  • The huge amount of planned investments for energy infrastructures as well as to acquire new customers and the increasing difficulty to obtain loans
  • The impact of technological innovation on utilities’ business models: e-mobility (offering and business model), smart grid and smart home (management models and relationship with telco) and storage
  • The general trend towards the concentration of operators in different modes as recently occurred (mergers, joint ventures with financial investors), rather than through target acquisitions