from the startup of the terminal, but, in any case, not later than July 1, 2011 (lockup clause);
- For Edison, the right to buy the 90% it does not own or sell its 10% upon the occurrence of certain
  events, for which the two majority shareholders are responsible, that would prevent the construction
  of the terminal (put-and-call clause);
- For the two majority shareholders, the right to buy the 10% interest held by Edison if the supply
  contract with RasGas (II) should be cancelled for reasons for which Edison is responsible (call
- A price for the sale of shares if the put or call options are exercised, which will be determined based
  on the value of the company's shareholders' equity at the time of sale;
- For all the shareholders, the commitment to a pro-quota financing to allow the construction of the
- Once the terminal that is being built in the Northern Adriatic has been completed, Edison, while
  owning just 10% of the infrastructure, will become its main user and will have access to about 80%
  of the terminal's gasification capacity for 25 years.
  • On October 25, 2005, Edison completed the sale of 100% of the share capital of Tecnimont Spa to Maire Tecnimont Spa, a company of the Maire Group. This transaction was cleared by the relevant antitrust agencies. Concurrently with the sale, Edison paid 50 million euros for a 19.5% interest in Maire Tecnimont Spa. The remaining 80.5% of this company is owned by Maire Holding Spa. Edison's investment is assisted by a put-and-call option that can be exercised within three years. Edison has chosen to exercise its put option immediately. As a result, the shares covered by the option will be transferred to Maire Holding within three years of today's date, unless an earlier exercise becomes possible pursuant to the terms of the contract or Maire Holding exercises its call option.
Notes to the Statement of Income
Edison Spa reported net income of 351,054,000 euros in 2005, compared with net income of 311,876,000 euros the previous year.
The improvement achieved in 2005 is the net result of the following items:
  • Net production value of 211,102,000 euros, compared with net production value of 315,586,000 euros in 2004.
  • A decline in net financial income, which totaled 62,891,000 euros. A reduction in income from equity investments is the main reason for the decrease of 163,670,000 euros compared with 2004.
  • Extraordinary income consisting mainly of gains earned on the sale of equity investments (89,330,000 euros), the largest of which were the interest held in Tecnimont and a minority position in AEM.
The individual factors that contributed to the Company's result are reviewed below.
A) Production Value
Production value, which totaled 4,228,448,000 euros, includes the following:
Production value FY 2005 FY 2004 Change
A.1) Sales and service revenues 4,065,155 3,302,566 762,589
A.2) Changes in inventory of work in progress,      
  emifinished goods and finished goods 20,571 41,022 (20,451)
A.3) Change in inventory of contract work in process (7,357) 7,184 (14,541)
A.4) Increase in Company-produced additions to fixed assets 6,499 16,244 (9,745)
A.5) Other revenues and income 143,580 80,556 63,024
    4,228,448 3,447,572 780,876
The main components of production value are analyzed below.
A.1) Sales and Service Revenues
Sales and service revenues totaled 4,065,155,000 euros. A breakdown is as follows:
  FY 2005 FY 2004 Change
Revenues from the sales of:
- Electric power 2,084,980 1,806,802 278,178
- Natural gas 1,721,797 1,305,887 415,910
- Steam 101,314 83,633 17,681
- Oil 59,775 47,018 12,757
- Other materials and utilities 2,041 2,730 (689)
  3,969,907 3,246,070 723,837
Revenues from:      
- Services 31,355 28,902 2,453
- Contract work 15,227 15,888 (661)
- Transmission of electric power 9,834 7,296 2,538
- Sales of buildings in real estate inventory 6,337 2,781 3,556
- Facilities maintenance services 32,495 1,629 30,866
  4,065,155 3,302,566 762,589