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You are in: Breakdown by business » Waste

Waste management segment

(mln/)

31-Dec-05

pro-forma

31-Dec-06

Change

Change %

Area EBITDA

130.6

150.4

+19.9

+15.2%

Group EBITDA

386.4

426.7

+40.3

+10.4%

Percentage

33.8%

35.3%

+1.5 p.p.

 

With a percentage of 35.3%, the Waste Management segment confirmed itself as the business which provides the greatest contribution to the Group result.

For some time now, the Hera Group has been the most important integrated operator in the sector at European level due to its range of treatment and disposal plants for urban and special waste.

As already indicated, in the Integrated Water Cycle segment, the Group operates within the sphere of the 7 ATOs in the Provinces of Ravenna, Forlė-Cesena, Rimini, Bologna, Ferrara Modena and Pesaro. The definition of agreements pursuant to current legislative provisions, has also been finalised for this sector.

An analysis of the operating results achieved in the Waste Management segment is shown below:

Income statement

(mln/)

31-Dec-05

pro-forma

Incr.%

31-Dec-06

Incr.%

Change

Change %

Revenues

481.7

 

539.7

 

+58.0

+12.0%

Operating costs

(241.2)

-50.1%

(275.5)

-51.1%

-34.4

+14.2%

Personnel costs

(116.1)

-24.1%

(126.7)

-23.5%

-10.6

+9.1%

Capitalized costs

6.1

1.3%

13.0

2.4%

+6.9

+112.2%

Ebitda

130.6

27.1%

150.4

27.9%

+19.9

+15.2%

Revenues at the end of 2006 disclosed an increase of 12.0%, rising from Euro 481.7 million in 2005 to Euro 539.7 in 2006. The increase in sales is linked to the integration of the Pesaro area for Euro 23.5 million, while the remaining balance concerns the additional revenues for the sale of electricity by the Group plants and the additional volumes of waste disposed of.

The year 2006 benefited from the full-on-stream running of a number of plants, in particular the waste-to-energy plant in Bologna and the plants of the Ravenna Ecological Centre, which during the previous year had not yet been brought fully onto stream. Readers are reminded that these plants benefit from concessions (CIP6) on the price of the electricity generated.

Differentiated waste collection, net of volumes arising from sweeping activities (as envisaged by the DPCM project on differentiated collection dated 5 June 1997), in terms of percentage-based incidence on total volumes collected came to 33.5% compared with 30.9% in 2005. The substantial increase confirms the Group's commitment towards increasing the fraction recoverable from waste and reducing the environmental impact.

As can be seen in the following table, the quantity of waste disposed of increased by more than 5%. The classification of the volumes relating to the 2005 accounting period, has been aligned to the criteria for the current year which envisages the elimination of the by-products of the plants within the Group.

Quantitative data (thousand tons)

31-Dec-05

pro-forma

Incr.%

31-Dec-06

Incr.%

Change

Change %

Urban waste

1,597.2

42.4%

1,677.4

42.2%

+80.2

+5.0%

Waste from market

1,401.8

37.2%

1,453.7

36.6%

+51.9

+3.7%

Special waste from plant by-products

519.9

13.8%

474.3

11.9%

-45.6

-8.8%

Direct customers - subsidiary companies

250.4

6.6%

369.6

9.3%

+119.2

+47.6%

Waste treated by type

3,769.3

100.0%

3,975.1

100.0%

+205.8

+5.5%

Landfills

1,343.2

35.6%

1,572.2

39.6%

+229.0

+17.0%

Waste-to-energy plants

614.0

16.3%

597.6

15.0%

-16.4

-2.7%

Selection plants

293.8

7.8%

344.4

8.7%

+50.6

+17.2%

Compost plants

300.5

8.0%

335.2

8.4%

+34.7

+11.6%

Inert and chemical plants

742.3

19.7%

705.0

17.7%

-37.3

-5.0%

Other

475.4

12.6%

420.7

10.6%

-54.7

-11.5%

Waste treated by plant

3,769.3

100.0%

3,975.1

100.0%

+205.8

+5.5%

The quantitative data presented above reveals the minor use of third party plants, while the lower volume of waste disposed of in the waste-to-energy plants reflects the shut-down of the Ferrara plant during the last quarter of the year due to the construction of the new line, which did not make it possible to confirm the previous results.

The greater overall use of the Group's plants aided an increase in the EBITDA which rose from Euro 130.6 million in 2005 to Euro 150.4 million in 2006, involving a rise of 15.2%. Mention should also be made of the rise in the percentage margin by almost one percentage point, from 27.1% to 27.9%.