The increase in 2008 H1 revenue has been attributed by Edison to higher unit sales by both its electric power operations, which grew 5.1%, and its hydrocarbons operations, which grew 9.6%; and an increase in unit revenues made possible by a rise in the prices of benchmark commodities.
Edison has said that, in Italy, gross demand for electric power was relatively flat compared with the first six months of 2007, when it was 168.6TWh. In this environment, Edison increased total unit sales by 16.8% in the deregulated markets.
During the first six months of 2008, demand for natural gas grew to about 45.3 billion cubic meters, or about 7.6% more than in the same period in 2007. Colder weather during the first quarter of 2007 compared to the first three months of 2007, and higher demand from thermoelectric power plants are the main reasons for this increase.
Edison’s electric power operations reported earnings before interest, taxes, depreciation and amortization (EBITDA) of E636 million, a gain of 2.4% compared with the first half of 2007.
The utility’s hydrocarbons operations registered EBITDA of E209 million, a decrease 33.7%. This reduction is mainly the result of price changes in the benchmark oil market and of the different timing with which these changes are reflected, and in the formulas that determine procurement costs.
