Reclassified consolidated income statement of Impregilo Group
| (Values in €/000) | Note** | 2013 | 2012 (§) | Variation |
|---|---|---|---|---|
| Operating revenue | 2,261,406 | 2,200,382 | 61,024 | |
| Other revenue | 61,928 | 80,609 | (18,681) | |
| Total revenue | 32 | 2,323,334 | 2,280,991 | 42,343 |
| Costs | 33 | (2,072,404) | (2,196,287) | 123,883 |
| gross operating profit (*) | 250,930 | 84,704 | 166,226 | |
| Gross operating profit % (*) | 10.8% | 3.7% | ||
| Ammortisation and depreciation | 33 | (93,052) | (109,755) | 16,703 |
| operating profit (loss) (*) | 157,878 | (25,051) | 182,929 | |
| Return on Sales (*) | 6.8% | –1.1% | ||
| Financing income (costs) and gains (losses) on investments | ||||
| Net financing income (costs) | 34 | 735 | (30,720) | 31,455 |
| Net gains (losses) on investments | 35 | 2,546 | 1,431 | 1,115 |
| net financing income (costs) and net gains (losses) on investments | 3,281 | (29,289) | 32,570 | |
| profit before tax | 161,159 | (54,340) | 215,499 | |
| Income tax expense | 36 | (53,728) | (59,270) | 5,542 |
| profit from continuing operations | 107,431 | (113,610) | 221,041 | |
| Profit (loss) from discontinued operations | 17 | 80,635 | 717,036 | (636,401) |
| profit for the year | 188,066 | 603,426 | (415,360) | |
| Non-controlling interests | (318) | (340) | 22 | |
| profit for the year attributable to the owners of the parent | 187,748 | 603,086 | (415,338) |
(*) The section “Other information” gives a definition of these indicators.
(**) The note numbers refer to the notes to the consolidated financial statements where the items are analysed in detail.
(§) Figures restated following the application of IAS 19 revised.
Revenue
Total revenue for 2013 is € 2,323.3 million (€ 2,281.0 million). Of this value, € 1,642.2 million was achieved abroad (€ 1,758.4 million) and mainly reflects the growth of the Construction segment (+5.5%).
| (Values in €/000) | 2013 | 2012 | Variation | % |
|---|---|---|---|---|
| Construction | 2,155,416 | 2,043,959 | 111,457 | 5.5% |
| Concessions | 20,797 | 18,443 | 2,354 | 12.8% |
| Engineering & Plant Construction | 149,245 | 221,953 | (72,708) | (32.8%) |
| Other segments and adjustiments | (2,124) | (3,364) | 1,240 | (36.9%) |
| Total revenue | 2,323,334 | 2,280,991 | 42,343 | 1.9% |
The increase in revenues in the construction sector was driven primarily by the Italian contracts, which include the Pedelombarda Motorway, the Milan - Genoa High-Speed & Capacity Railway Project and works on the Milan East Outer Ring Road, for the period prior to the transfer of the associated activities to third parties, which was carried out in the latter part of the year under review.
The value of production in overseas construction projects has remained broadly stable compared with the previous year; this is attributable to the temporary slowdown shown by some projects in Venezuela that were affected by the particular socio-political conditions prevailing in the country during the year, which further deteriorated in the first half of 2014. However, the Group has been present in this region for many years and there have been similar temporary situations of instability in the past. Given the social importance of the works in progress in Venezuela, as well as the relationships at social and contractual level, it is reasonable to assume that the conditions currently being experienced are temporary and it may therefore be assumed that the occurrence of specific situations of a critical nature are attributable to mere chance.
The following table summarises the breakdown of revenues for the construction segment:
| (Values in €/000) | 2013 | 2012 | Variation | % |
|---|---|---|---|---|
| Italy | 674,083 | 516,424 | 157,659 | 30.5% |
| Abroad | 1,481,333 | 1,527,535 | (46,202) | (3.0%) |
| total construction revenue | 2,155,416 | 2,043,959 | 111,457 | 5.5% |
The decrease in Plant segment revenue is due to the substantial completion of the FISIA Italimpianti projects and the timescales of the operations of FISIA Babcock.
Operating profit
The group’s operating profit is € 157.9 million (loss of € 25.1 million). The contribution to the operating profit of the different segments is summarised in the following table:
| (Values in €/000) | 2013 | 2012 | Variaton |
|---|---|---|---|
| Construction | 210,016 | 1,128 | 208,888 |
| Concessions | (5,972) | (605) | (5,367) |
| Engineering & Plant Construction | 320 | 20,976 | (20,656) |
| Campania USW projects | (1,779) | (1,849) | 70 |
| Corporate costs (unallocated items) | (44,707) | (44,701) | (6) |
| consolidated operating profit | 157,878 | (25,051) | 182,929 |
The operating profit of the Construction segment is € 210.0 million, with a R.o.S. of 9.7% (respectively € 1.1 million and R.o.S. of 0.1%). It should be noted that the operating result of the previous year was significantly affected by the critical issues affecting certain large infrastructure projects overseas (Panama, Colombia and Chile) which, having resulted in the recording of a residual loss in the related contracts, had already been fully recorded in the consolidated income statement for the period in question. With particular reference to the works in Panama and Chile, the current year has seen further problems in these areas but they have had a less significant economic effect. The financial year 2013, therefore, having benefited from positive developments in certain disputes that resulted in an improvement in the figures compared to the previous valuations made, was able to show positive operating results consistent with earlier forecasts for that period.
The Plant and Concessions segments had an overall operating loss of € 5.7 million, while net corporate structural costs amounted to € 44.7 million.
Financial income (costs) and gains (losses) on investments
Overall, financial management showed a positive result of € 0.7 million (loss of € 30.7 million), while management of investments contributed a profit of € 2.5 million (€ 1.4 million).
Financial management mainly reflects the following situations:
- net financial expenses increased overall by € 16.0 million over 2012. This effect mainly reflects higher net default charges - reasonably assessable as not significant and non- recurring items - totalling € 35.0 million, including approximately € 15.2 million relating to the resolution in early 2013 of a number of disputes with client administrations regarding the return of advances received. Interest payable is, however, reduced overall by € 18.5 million compared with the previous year, mainly due to the reduction of gross financial debt, which fell from € 655.0 million to € 488.8 million, and to timing and currency changes for the debt. Other net financial charges decreased by € 0.5 million.
- Net exchange rate gains amount to € 50.8 million (€ 3.4 million in the previous year). It should be noted that again in 2013 there was a benefit from the positive effects resulting from asymmetries in the foreign exchange market in relation to certain currencies for which the official exchange rates are artificially fixed. To this effect, moreover, is added the benefit resulting from the release to the income statement of the reserve for exchange rate fluctuations relating to the company Shanghai Pucheng Thermal Power Energy, which was sold at the end of 2013 and previously recorded in a separate item of consolidated shareholders' equity.
Profit from discontinued operations
This item shows a profit of € 80.6 million (€ 717.0 million). This result mainly reflects the positive effects - net of estimated applicable tax - resulting from the decision of the Court of Cassation and the results of the enforcement procedures implemented by the Group in connection with the dispute pertaining to claims for damages made through the FIBE subsidiary, in respect of the former waste-derived fuel plants. As a result of these events, the net value of the assets subject to litigation which in previous years had been reduced, have been fully restored, taking into account the legal interest paid and collected to date. More complete information about the litigation described and the wider context of which it forms part is provided in the next section of this Annual Report entitled ‘Assets held for sale and discontinued operations – Campania USW Projects’.
Income tax
Income taxes for 2013 amounted to € 53.7 million (€ 59.3 million) and correspond to an average rate of 33.3%. The tax liability for the previous year had been affected, in particular, by the fact that some consolidated Project Companies (SPVs) had experienced losses, including tax losses, amounting to approximately € 244 million. Although these losses can be legally carried forward, they were regarded as permanent differences consistent with the evaluations relating to projects carried out by the SPVs and in accordance with the respective predictions.
Non-controlling interests
Non-controlling interests in the subsidiaries contributed negatively to the profit for the year attributable to the owners of the parent and amount to € 0.3 million. The contribution for 2012 was a negative € 0.3 million.