ERG to hold fourth quarter and full year 2013 results
The conference call is scheduled for 15.00 Italian time (14.00 UK time) on Wednesday, March 12, 2014.
ERG S.p.A., which has been listed on the Italian stock exchange since 1997, is active, also through its subsidiaries and associates, in the generation of energy from renewable sources and from thermoelectric plants, in the marketing of electricity, steam and gas, in the refining, marketing and distribution of petroleum products both in Italy and abroad.
In order to provide the Group with a more streamlined organisational and corporate structure, capable of quickly reacting to sudden market changes, ensure a sharper focus on the goals of value creation and developing best practice and sharing in all business segments, a new organisational and corporate model has been defined, which will be implemented from 1 January 2014.
Based on the new model, ERG S.p.A. will hold a Corporate role, providing strategic direction, management control and oversight of human and financial capital and relationships.
This will be achieved through the establishment of specific special purpose vehicles the Company holds a stake in, to carry out the businesses conducted directly by ERG S.p.A. to date.
The special purpose companies, invested in by ERG S.p.A., will thus be able to focus on their respective businesses, setting up their own adequate structures capable of guaranteeing efficient operations, drive for development and quick responses to the volatility of their specific markets.
As a result of this, ERG S.p.A., understood as a "stand-alone" Company, shall transfer the assets and liabilities pertaining to the Oil and Power Businesses to its wholly-owned subsidiaries, respectively, and will obtain indirect economic benefits through the recording of income from equity investments, in the amount in which such income is earned and its distribution is approved in the form of dividends.
In accordance with the international accounting standards adopted in drawing up the Separate Financial Statements of ERG S.p.A, and, more specifically, in accordance with IFRS 5, this case is classified as the "sale of a disposal group": in observance of this standard, the assets and liabilities relating to the two businesses as at 31 December 2013 were posted separately in the Separate Financial Statements, and the net income (loss) of the disposal group was separated out in the income statement, making suitable reclassifications of the income statement 2012 to guarantee comparability of the two years.
Note that the transactions described above are transactions "under common control" and, therefore, have no effect on the Group's Consolidated Financial Statements.
Moreover, in relation to the Power Business Unit, for the purposes of IFRS 5 the best estimates of the statement of financial position and income statement items transferred were used, as the exact scope of the transfer has not been formalised.
The 2013 and 2012 income statements also reflect the reclassification in accordance with IFRS 5 of the results of Costal Refining and the effects of the sale of the equity investment in ISAB (as covered in greater detail in the paragraph "Sale of equity investment in ISAB S.r.l.)"..
ERG S.p.A. - Genova
Head of Corporate Finance & Investor Relations
0039 010 2401376
ERG S.p.A. - Genova
0039 010 2401423