Consolidated financial statement
LUKERG Renew GmbH
The investee – a joint venture with LUKOIL Ecoenergo – has been consolidated according to the equity method since 1 July 2012 in consideration of the start of its operation as a result of the acquisition, in June 2012, of the wind farms in Bulgaria, in the Dobrich region, with an installed total capacity of 40 MW. Moreover, at the end of 2012 LUKERG Renew closed the acquisition, from Inergia SpA (Santarelli Group) of 100% of the capital of Land Power S.r.l., a Romanian company owning the authorisations required for the construction of a wind farm in Romania, in the Tulcea region, with a planned capacity of over 84 MW and electricity generation, once fully in operation, of 200 GWh per year. LUKERG Renew will start work for the construction of the wind farm in the first quarter of 2013, in order to start operations in the first six months of 2014.
On 28 June 2013, LUKERG Renew closed the acquisition, from Vestas, of 100% of the Gebeleisis wind farm in Romania. The park is in the Galati region; it has been fully operational since February 2013 and its total installed capacity is 70 MW and average expected annual output exceeding 165 GWh. The enterprise value of the acquisition is EUR 109.2 million.
On 5 September 2013, LUKERG Renew closed the acquisition, from Vestas, of the new wind farm in Hrabrovo, Bulgaria. The wind farm is in the region of Dobrich (Bulgaria); it has been fully operational since March 2012 and it has a total installed capacity of 14 MW and an expected average annual generation of over 34 GWh. The enterprise value of the acquisition is EUR 17.6 million.
The value of the equity investment in LUKERG Renew GmbH was subjected to impairment tests, whose details are listed in the paragraph "Impairment tests in the Renewable Energy Sources segment".
ERG S.p.A. holds a 51% investment in the TotalErg S.p.A. joint venture, incorporated in 2010 through the merger of Total Italia S.p.A in ERG Petroli S.p.A.
The Company is positioned as one of the foremost operators in the downstream market. Thanks to the joint venture, ERG benefited from a strengthened competitive position on the market, achieving significant commercial and cost synergies, in partnership with one of the world's largest players in the Oil industry.
In view of the high significance of TotalErg, and to enhance the understandability of the businesses' performance, the financial results shown in these Financial Statements include the contribution, for ERG's share, of the profit (loss) at replacement cost of the TotalErg S.p.A. joint venture.
The value of the equity investment in TotalErg S.p.A. was subjected to impairment tests, described in detail in the paragraph "Equity investment in TotalErg", below.
ISAB Energy Solare S.r.l.
The Company, a joint venture with Princemark Limited (IPM Group), is active in the renewable energy segment, and specifically in the generation of electricity from solar power.
The company owns a photovoltaic plant at the industrial site of ISAB Energy S.r.l. in Priolo Gargallo (SR) for the generation of electricity with an installed power of 968 kW, which started commercial operations in June 2011.
Other joint ventures
Priolo Servizi S.c.p.A. is a consortium company subject to joint control by ERG Power S.r.l. (20.9%), ISAB S.r.l. (38.4%) and by the other shareholders of the Versalis S.p.A. Group (36.5%) and Syndial (4.3%).
Ionio Gas S.r.l. - a joint venture with Shell Energy Italia S.r.l. – was placed in liquidation during the fourth quarter of 2012.