Italian utility A2A's net income rose 36% year on year at Eur323 million in the first nine month of 2016, the company reported.
Net ordinary income was up 19% at Eur281 million.
The company spoke of an adverse “energy and climate scenario” in the first nine months of 2016, with electricity demand falling some 3% and an overall sharp drop in commodities prices, with oil prices falling 24%, natural gas prices by 36% and the baseload PUN – the electricity settlement price on the regulated Italian power exchange – being down some 27% year on year.
“Despite such an unfavourable energy scenario” which had a negative impact on its generation fleet's margins of Eur80 million, overall performance at all business units over the period was positive, offsetting the challenging energy complex, A2A said.
Total electricity generated by A2A's fleet over the nine-month period accounted for 9.3 TWh, down from 9.7 TWh the previous year.
Thermoelectric generation was at 5.8 TWh (6.1 TWh in the nine months of 2015), while hydro generation stood at 3.5 TWh (3.6 TWh in 2015).
The reduction in thermoelectric generation was mainly due to the San Filippo del Mela power plant in Italy being excluded from the list of power plants considered “essential” for the system from May 28. The decline in hydro output was due to the sale of hydro power plants in Italy, A2A said.