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api - anonima petroli italiana s.p.a.Registered office: Via Salaria 1322 - 00138 Rome
Share Capital: Euro 115,425,000.00 fully paid inRome Chamber of Commerce and Economic Administrative Roster (R.E.A.) No. 103708
Tax Code and Companies’ Register of Rome No. 00441670585VAT Code 00893861005
A company managed and coordinated by api holding S.p.A.
Call for Annual General Meeting 5
api – anonima petroli italiana S.p.A. - Group organization chart 6
Board of Directors 7
1 Report of the Board of Directors as of 31 December 2009 9
api – anonima petroli italiana S.p.A. 11
The energy and oil scenario 13
Regulatory framework and relations with Institutional Bodies 15
Operations 17
Extraordinary transactions 24
Results from Operations 25
Financial management 30
Personnel 32
IT Systems 33
Activity of the Supervisory Body 33
Implementing the “privacy” regulation 33
Research & Development 33
Treasury Stocks and controlling company shares held 33
Relations with subsidiary and associated companies 34
Main events occurring after year end 35
2 Consolidated Financial Statements as of 31 December 2009 37
Consolidated Statement of Comprehensive Income 39
Consolidated Statement of Financial Position 40
Consolidated Cash Flow Statement 41
Changes in shareholders’ equity items 42
Accounting standards and explanatory notes 44
Explanatory notes to Consolidated Statement of Comprehensive Income 60
3 Report of the Board of Statutory Auditors 99
4 Independent Auditors’ Report 103
5 Statement of Consolidated Accounts 107
6 Summary of key financial data as of 31 December 2009 109
Balance Sheet IAS/IFRS 110
Income Statement IAS/IFRS 111
Summary
The shareholders of “api” – anonima petroli italiana S.p.A. are called to the
ordinary meeting which will be held at the company’s offices in Rome, Via Salaria 1322
at 11:30 on April 30, 2010 in first call, and if necessary, on May 5, 2010 in second
call, same place and time, to vote on the following
Agenda:
1. Approval of the Financial Statements at December, 31 2009;
related deliberations;
2. Conferral of assignment for accounting auditing; related deliberations;
3. Others
Shareholders are entitled to take part in the meeting provided they are recorded in
the Shareholder’s Register at least five business days before the date set for the mee-
ting and their shares have been deposited at the company’s registered office within
the abovementioned deadline.
Rome, 1 April 2010
api anonima petroli italiana S.p.A.
The Chairman of the Board of Directors
dott. Ugo Brachetti Peretti
Published on “Gazzetta Ufficiale”
Insertions’ Sheet no.44
On 13 April 2010 page 56
Call for Annual General Meeting
apimak Sh. pk.Macedonia
52%
100%
100%
50%
7.70%
98.84% 100% 99.99% 99.99%
50%
50% 100% 30% 10%
100% 100%
50% 4.70% 3.12% 2.33% 0.78%
apibenzin d.o.o.Croatia
Marina Fieradi Genova S.p.A.
GenoaImmobiloil S.r.l.
RomeCivita Servizi S.r.l.
RomeSGR S.p.A.
Rome
G.R.C. S.r.l.Rome
Festival S.p.A.Rome
Alpenoil S.r.l.Rome
apifin S.r.l.Rome
SACCNERete S.r.l.
Messinaapisem S.r.l.
LecceDialco S.r.l.
Bari
AbruzzoCostiero S.r.l.
PescaraPetroven S.r.l.
Marghera
api energia S.p.A.Falconara Mar.ma (AN)
Aerdorica S.p.A.Falconara Marittima (AN)
apisoiService S.p.A. in liq.Ancona
apioil ltdBermuda
api services ltdLondon
api anonima petroli italiana S.p.A.Rome
api raffineria di Ancona S.p.A.Falconara Marittima (AN)
BOARD OF DIRECTORS
Dott. Ugo Brachetti Peretti (Chairman)Cav. del Lav. Dott. Aldo Maria Brachetti Peretti (Director)Dott. Ferdinando Maria Brachetti Peretti (Vice Chairman)Dott. Umberto Scarimboli (Managing Director)Sig.ra Mila Peretti (Director)Dott. Claudio Eduardo Capizzi (Director)Avv. Ferdinando Carabba Tettamanti (Director)Dott. Pasquale De Vita (Director)Dott. Fabrizio Liberatori (Director)Dott. Carlo Salvatori (Director)Prof. Avv. Giuseppe Tinelli (Director)
BOARD OF STATUTORY AUDITORS
Prof. Claudio Bianchi (Chairman)Dott. Adolfo Cucinella (Statutory Auditor)Dott. Pier Andrea Frè Torelli Massini (Statutory Auditor)Dott. Mario Casini (Statutory Auditor)Dott. Fabrizio Scanu (Statutory Auditor)
EXECUTIVE COMMITTEE
Cav. del Lav. Dott. Aldo Maria Brachetti Peretti (Chairman) Dott. Ferdinando Maria Brachetti Peretti Dott. Ugo Brachetti PerettiDott. Umberto Scarimboli
INDEPENDENT AUDITORS
Reconta Ernst & Young S.p.A.
MANAGER IN CHARGE OF THE PREPARATIONOF ACCOUNTING DOCUMENTS
Dott. Stefano Cardello
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Introduction
The Consolidated Report at 31 December 2009 for api anonima petroli italiana S.p.A. has been prepared
in compliance with the International Financial Reporting Standards (IFRS) adopted by the European Union.
In relation to the accounting standards adopted for the preparation of the consolidated financial
statements it is pointed out that the company falls under the scope laid down by letter f) of Art. 2 of
Legislative Decree no. 38 of 28 February 2005, which regulates the exercising of the options provided
for by Art. 5 of Community Regulation no. 1606/2002 in relation to the International Financial
Reporting Standards (hereinafter also "IFRS") and therefore in accordance with Article 3, Paragraph 2
of the same decree, the Company has voluntarily exercised the right to apply the IFRSs adopted by the
European Union for the preparation of its consolidated financial statements, commencing from the
2005 financial year.
The report at 31 December 2009 has been approved by the Board of Directors of api spa on 31
March 2010.
Line-by-line consolidation area and business areas
The consolidated financial statements include the financial statements for the period at 31
December 2009 of api anonima petroli italiana S.p.A. and the following subsidiary companies held
directly or indirectly:
The equity investments in associated companies detailed below were valued under the equity method:
api – anonima petroli italiana S.p.A.
Company name Registered office Shareholders % held Share Capital(Euro/thousand
unless otherwise indicated)
“api Raffineria” di Ancona S.p.A.
(hereinafter referred to as “api Raffineria”) Ancona “api” 100 13,125
api energia S.p.A. Rome “api” 98.84 13,831
“third parties” 1.16
api services limited (United Kingdom) London “api” 99.99 GBP 10,000
“third parties” 0.01
apioil limited (Bermuda) Hamilton “api” 99.99
“third parties” 0.01 USD 2 million
Festival S.p.A. Rome “api” 100 560
Dialco S.r.l. Bari “api” 100 10
Alpenoil S.r.l. Rome “api” 100 100
G.R.C. S.r.l. Rome “api” 100 50
apifin S.r.l. Rome “api” 100 600
Company name Registered office Shareholders % held Share Capital(Euro/thousand
unless otherwise indicated)
Associated companies:
apisoi Service S.p.A. Falconara (An) “api Raffineria” 50.00 260in liquidation “third parties” 50.00
apisem S.p.A. Lecce “api” 50.00 423
“third parties” 50.00
Abruzzo Costiero S.r.l. Pescara “api” 30.00 2,995
“third parties” 70.00
Saccne rete S.r.l. Messina “api” 50.00 2,200
“third parties” 50.00
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 1111
Concerning the operations of rationalisation of the Group’s structure, refer to the paragraph
“Extraordinary transactions” of this Report.
Other equity investments and equity investments in associated companies regarding which, in the
company’s opinion, the company has no significant influence, are valued under the cost method.
The macroeconomic scenario
In macroeconomic terms, 2009 was marked by a serious crisis of the financial markets and real
economy, peaking with a deep recession that involved the entire global economy, especially in the first
half of the year.
It was only in the third quarter of 2009 that the economic cycle began to show the first signs of
recovery, although with different strengths and intensity in the various geographic areas, with greater
acceleration in emerging countries, Asia especially, and at a slower pace in developed economies.
More in detail, for the United States GDP estimates for 2009 foresee a negative growth equal to -
2.40% (compared to + 0.4% of the previous year); Europe foresees a negative variation in GDP equal
to 3.9%, (compared to + 0.5% of the previous year); initial signs of recovery are starting to be seen
also in Italy but at rate certainly slower than the other European economies. Italy's GDP expectations
for 2009 foresee a drop of almost 5%.
On a monetary front, the central banks also intervened to support markets, both with “traditional”
manoeuvres of expansive monetary policy, and through “unconventional” measures (quantitative
easing) of exceptional nature, the latter adopted particularly by the FED to guarantee liquidity in the
system, through the purchase of assets on the market (in particular treasury bonds) and “toxic
securities”.
Specifically, the ECB took, through four successive interventions, the interest rate reductions from
2.50% at the start of 2009, to 1 % in the meeting of 7 May, leading to a sharp drop in short-term
interest rates during all of 2009 and in particular in the first six months of the year; specifically the 3
month Euribor, the reference benchmark for financing transactions, fell from 2.859% at the start of
January to the minimum of 0.70% of last 30 December, a reduction of about 76%.
The American Central Bank, instead, maintained the FED FUNDS at minimum historical levels
between 0% and 0.25%, also repeating in the year end meetings that the rates will remain at
exceptionally low levels for a long time to come and that the initial manoeuvres will concern the
withdrawal of the liquidity (exit strategy) introduced in the system through unconventional policies.
This strategy, whose terms and extent are still unclear, will consist in a gradual “release” of the
assets previously acquired in a way to drain liquidity from the market. This manoeuvre should
correspond a progressive raising of interest rates.
In the currency markets in the first months of the year, an appreciation of the dollar compared to
the euro was witnessed until reaching the level of 1.2555 on 3 March, since the US currency was
considered as a “refuge currency” in a phase of strong aversion to risk after the failure of Lehman;
however, starting from April, the lower tension in the financial markets, accompanied by a return of
“risk appetite” led to an inversion of the trend, with the Euro/Dollar traded up to 1.5120 on 3
December last year (highlighting a depreciation of about 20% compared to the maximum levels of
March); this proves how during the year the currency markets were greatly influenced by the risk and
the performance of financial markets rather than the macro economic fundamentals, based on which
the Euro is certainly overvalued; the American economic cycle showed a faster recovery compared to
the European one during 2009, since the monetary policy and economic interventions implemented
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20091122
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were more incisive and intense compared to those adopted by the European Central Bank and the
Governments of the member countries.
Towards the end of the year, the difficult problems of public finance experienced by some countries
in the Euro zone, and particularly those under the PIGS acronym (Portugal, Ireland, Greece and Spain),
led to a new appreciation of the dollar, exchanged at 1.4276 last 23 December.
Concerning the commodities market, the price of the Brent BWave in the very first months of the
year held between 40 and 50 $/barrel, to then rise starting in May until the maximum level of 79.59
$/barrel on 18 November last year, thus appreciating by about 99% from the start of the year. This
increase reflected the strengthening in the demand of crude oil, especially from China.
Rising during the year was also the price of gold, which reached the average level of 974 $/ounce
(872$/ounce in 2008), with a peak of 1,215 $/ounce reached on 2 December 2009.
THE ENERGY AND OIL SCENARIO
The International Market
On average at the end of 2009 the Cif cost of crude oil imported in OECD countries
was expected at 60.3 $/barrel, against 97.2 of 2008 and 69.3 of 2007, down by 36.9 $/barrel. In
percentage terms, the decrease was about 38%.
In 2009 the total demand for oil recorded its second decline in the last twenty five years with 84.9
billion barrels/day, down 1.5% (1.3 million barrels/day) from 2008, compared to average growth of 1.3
million from 2000 to 2007.
The requirements of OECD countries were 45.5 million barrels/day, a 4.4% decrease compared to
2008, with a weight on the total of about 54% (versus 63% in 2000). Non-OECD countries’
requirements were 39.4 million barrels/day, a 2.0% growth with a weight on the total of 46%
(compared to 37% in 2000).
Asian countries continued to lead the demand from non-OECD countries (+4.6%) and China in
particular (+7.2%), while in the former Soviet Union consumption dropped significantly (-5.7%).
Growth in Asia did not, however, completely offset the decline in industrialised countries, led by the
United States, which declined 0.7 million barrels/day, or 4.0%.
The cut in supply by OPEC countries at the start of the year, to support prices, led to the total supply
in 2009 to reach 84.9 million barrels/day, -1.9% compared to 2008. Supporting the decrease were the
OPEC countries (especially Saudi Arabia), while the other countries responded with an increase of 0.5
million barrels/day.
International prices for products were also impacted by market tensions in 2009. Their performance
affected the price of crude oil, translating into a fall in refining margins.
The yearly average Platts quotations of gasoline stood at around 590 dollars/tonne compared to the
843 dollars/tonne of 2008, while the average prices of diesel were 542 dollars/tonne compared to the
954 dollars/tonne of 2008.
Starting from the first quarter of 2009, prices for both products rose. The fourth quarter saw an
increase of 41% for gasoline and 24% for diesel compared to the first quarter.
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 1133
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20091144
The Italian Market
In 2009 Italian energy consumption reached 175.7 million tonnes of oil equivalent (TOE), with a
drop of 6.1% versus 2008, in the presence of a GDP reduction of 4.9%. A similar energy consumption
to the one of 1998. The reduction especially concerned natural gas (-8.0%), oil (-6.6%) and coal (-
20%). The consumption of electricity recorded a drop of 6.4%, while net imports (+11%) and
renewables (+13.7%) rose.
Further increases in energy efficiency, already at the highest level in thirty years, were more the result
of the decline in industrial and transportation demand following the economic crisis than a
rationalisation in consumption, which is, however, occurring.
Coverage of the national requirement has been guaranteed to a level of 41.6% by oil, one
percentage point less than in 2008 (57% in 1990); 35.9% by gas; 9.2% by solid fuels. Renewables, the
weight of which on the total is presently 8.7%, due to growth in wind, photovoltaic and hydroelectric
production, grew by 8.6%.
Petroleum product consumption is estimated to have been 75.1 million tonnes, a decline of 6.6%,
or 5.3 million tonnes, with respect to 2008. Gasoline continued the decline that began in 2004,
dropping a further 442 thousand tonnes. The sum of gasoline and diesel shows a decrease of 2.8%
compared to 2008 value (gasoline –4.0%; diesel -2.3%). Fuel oil for thermoelectric use heavily lost
ground with minus 17.6% (-0.5 million tonnes). Heating diesel amounts to slightly less than 2 million
tonnes, posting a decrease by 2.4% .
In 2009, the refining system had an actual capacity of 106 million tonnes, following the review of
some existing plant engineering structures. In the aggregate, 82% of the plant’s capacity was used (as
far as crude oil and semi-finished products imported are concerned). Refining amounted to a total of
86.4 million tonnes (-8.7%). In terms of raw materials processed, both crude oil and semi-finished
products declined (-7.8% and -18.9%, respectively). Also product exports felt the crisis, with a drop of
2.5 million tonnes (-8.6%).
The energy bill from petroleum products in 2009 will settle at 20.5 billion Euro, approximately 1.2 billion
less than in previous year. The depreciation of the euro did not reflect the entire sharp re-dimensioning of
the quotations of the crude oil imported (-37.2%). In fact, had the exchange rate been the same as last
year’s, the bill would have been about 19.4 billion Euro, therefore lower by 1.1 billion Euro.
The energy bill is estimated to drop by approximately 18.4 billion Euro compared to 2008, close to
41.4 billion Euro (-30.7%). This corresponds to 2.7% of GDP (3.8% in 2008). Oil makes up 50% of the
total outlay, while gas represents 39.5% compared with 27% in 2000.
The industrial price of products over the year followed the fluctuations in international markets, with
the highest increases in the second and third quarters. The average price of gasoline was 0.385
Euro/litre in the first quarter (-33.4% with respect to the same period of 2008) and 0.502 in the third
quarter to then drop to 0.497 in the fourth quarter. In particular the growth from January 2009 to
December 2009 was 36.6%.
The same more or less applies to diesel, which rose from 0.447 Euro/litre in the first quarter to 0.494
(+10.5%) in the third. In particular, the difference reduced in comparison to gasoline, which in
December had almost nullified as compared to values at the beginning of the year, when it nearly
reached 10 cents. The short but constant rise also continued in the fourth quarter. The price of 0.504
in the fourth quarter was 13% higher than the first quarter.
For both gasoline and diesel the variations experienced in the industrial price for the entire year 2009
were in line than with those recorded in the corresponding Platts values in terms of Euro/litre and
showed reductions more than completely absorbed by the international prices.
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Globally, the average industrial price of gasoline showed a decrease of 0.126 Euro/litre with respect
to 2008, in line with Platts quotations, while diesel fuel showed a decrease of 0.221 Euro/litre faced
with a slight drop lower than Platts.
The average consumption price of gasoline was 0.149 Euro/litre lower than 2008, while diesel was
lower by 0.262.
Finally, the total inland revenue on mineral oils in 2008 was approximately Euro 33.6 billion, a drop
of 7.6% with respect to 2008. A result due to the sharp drop in VAT revenue caused by slashed prices.
These revenues were seriously affected by the reductions in tax revenue from excise taxes (-3%) caused
by drops in consumption, particularly gasoline (tax revenue down more than 4%).
REGULATORY FRAMEWORK AND RELATIONS WITH INSTITUTIONAL BODIES
Regulations on Co2 emissions
In implementing the National allocation plan of the CO2 quotas for the period 2008-2012 (PNA2),
api raffineria di ancona s.p.a. was assigned in 2009 free-of-cost a quota equal to 462,932 tonnes,
insufficient to cover its emissions.
The deficit was partially offset by recovery of quotas resulting from sale of liquefied carbon dioxide
to SOL, produced by the new CO2 recovery plant that began operations at the beginning of the year.
The difference (equal to 49,522 tonnes) will be met through quotas to be covered on the
international Emission Trading market.
For the IGCC plant the CO2 quota deficit for 2009, net of 181,847 tonnes freely assigned by the
National Plan to api Energia, was estimated at 1,255,606 tonnes. This quantity is definitely lower than
the emissions of 2008, due to the stoppage of the plant for inspection “C” of the Gas Turbine from 20
April to the beginning of June 2009. The quantities acquired, net of the surplus deriving from 2008
equal to 60,606 tonnes, were 1,195,100 (of which about 35,000 CER certificates).
The value of the CO2 emissions ascertained in 2009 and communicated by the DNV Certifying Body
was 1,423,227 tonnes and therefore there was a surplus for 2009 of about 15 thousand EUA. This
surplus will be carried forward to 2010.
In accordance with resolution 77/08 of the Authority for Electric Energy and Gas that sanctions, for
the CIP 6 plants, the reimbursement of the costs for the purchase of the additional emission quotas
compared to those assigned, in May 2009 a claim for reimbursement for 2008 was presented and
accepted by the AEEG on 19 October 2009, for a value of Euro 29,974,144, calculated on an average
price of 22.66 Euro/tonne for the EUAs and 16.82 Euro/tonne for the CERs, against a costs of Euro
29,799,073 including the transaction fees. The same procedure will be carried out for the claim of
reimbursement of the costs incurred in 2009.
Biofuels
In June, directive 2009/29/EC of the European Parliament and the Council was published in the
Official Journal of the European Union, which must be absorbed in the national law by 2010, providing
for the obligation to distribute energy from renewable sources in transportation by 2020, equal to at
least 10% of the consumption of gasoline and diesel for automotives in the European Union.
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 1155
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20091166
It should be underlined that for 2009 this obligation to use biofuel was 3% of the total gasoline and
diesel sold for carburation use; in addition, there is the possibility that from August (law no. 99 of 23
July 2009) diesel–biodiesel mixtures will be able to be made with a biodiesel content up to 7%.
Environment
During 2009, 4 directives (directives “20-20-20”) of the European Parliament and the Council were
published in the Official Journal of the European Union, which must be absorbed in the national law
between the end of 2010 and the end of 2012, concerning:
■ the already mentioned regulation on the mandatory use of biofuels at a minimum of 10% of the
national consumption of gasoline and diesel, as well as the promotion to use energy from renewable
sources with an obligation of 20% of energy deriving from renewable sources, over the total energy
consumption of the Community within 2020 (Directive 2009/28/EC);
■ the extension and perfecting of the community system for the exchange of greenhouse gas emission
quotas (Directive 2009/29/EC);
■ the modification of the specifications concerning gasoline, diesel fuel and diesel as well as the
introduction of a mechanism aiming to control and reduce the emission of greenhouse gases
(Directive 2009/30/EC);
■ the creation of the geological storage system for carbon dioxide (Directive 2009/31/EC).
Production of electricity
At the end of the year, in implementing art. 30, paragraph 20 of the above mentioned Law no. 99
of 23 July 2009, the Ministry for Economic Development revised, upon the proposal of the Authority
for electricity and gas, a decree that establishes the mechanisms for the early and voluntary resolution
of the so-called Cip 6 conventions, concerning the plants powered by process fuels , residues or energy
recovered and similar plants powered by fossil fuel. Checks are underway on the technical methods to
continue the production of electricity.
Provisions on tax matters
Law no. 99 of 23 July 2009 provided for the increase of the additional IRES (corporation tax) from
5.5 to 6.5% (so-called Robin Hood tax).
Decreed Law no. 135 of 25 September 2009 amends the consumption tax on lubricant oils. Starting
from 26 September 2009 the consumption tax on first distillation and regenerated lubricants is € 750
per 100/kg. Previously it amounted to € 842 per 1000/kg for first distillation oils and 50% of that
foreseen for first distillation oils for regenerated oils.
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A.
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Mandatory Oil Stocks
In the Official Journal of the European Union of 9 October 2009, the Directive 2009/119/EC of the
Council of 14 September 2009 was published, which must be absorbed in the national law by 31
December 2012, which establishes the obligation for the member states to maintain a minimum level
of stocks of crude oil and petroleum products. In this way the European Council believes to improve
the security of supply for the European Union by including, among other things, a review of the
mechanisms concerning the Union’s petroleum reserves, especially concerning availability in case of
crisis. This objective envisages a realignment between the community system (based on the valuation
of internal consumption) and that of the AIE (based on the valuation of net imports of crude oil and
petroleum products).
Fuel distribution network
Worth mentioning is the Government initiative aimed at restructuring the oil industry to involve all
the production phases from refining to distribution. Initially the proposal was designed as an
amendment to community law 2009. Subsequently, at the start of 2010, the Ministry for Economic
Development opted for a sharing approach with all the entities involved, giving rise to discussion groups
that will shortly formulate reform proposals.
OPERATIONS MANAGEMENT
INTEGRATED DOWNSTREAM
Supply
During 2009, 6,787,400 tonnes of raw material, semifinished and finished products were acquired
for refining, commercial and trading activities: a lower quantity compared to that purchased in 2008
(7,682,500 tonnes).
Raw materials from both forward and spot transactions were purchased totalling 2,851,400 tonnes
by our subsidiary apioil limited, operating in the trading industry (3,412,500 tonnes in 2008).
Industrial activity
The processing rate recorded in 2009 was 3,500,000 tonnes of raw material (3,335,400 of crude
oil, 57,000 of Straight Run and 107,600 of light distillates), lower by 183,100 tonnes compared to
2008.
Despite an availability of plants exceeding that of the previous year with a potential of about
3,870,000 tonnes, processing was conditioned by technical and economic issues such as the
international situation of the petroleum product prices and the cost of crude oil, which resulted in
negative refining margins for 2009 and suggested a reduction in processing in the second half of about
200,000 tonnes, compounded by the problems of the “gasoline circuit” occurring in the first quarter
of 2009, which caused about 170,000 tonnes not to be processed.
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20091188
Concerning the activities on the Alma Refinery, in the period in question the crude oil processed
totalled 103,500 tonnes (vs. 132,000 in 2008), in line with the volumes extracted by the producer, and
105,900 of residual semifinished products (vs. 96,000 of the previous year).
The production parameters of the IGCC plant highlight a lower availability of the plants (for the
expected ten-year inspection) compared to 2008: 2009 records a total production of 2,030,430 MWh,
lower by 152,273 MWh to that of the previous year.
Logistics
The figures for 2009 show a slightly better market performance than the previous year, especially in
the second half when the signs of a recovery already felt in the second quarter were confirmed.
The bases of Marghera and Ravenna experienced a different trend, with the sales of diesel fuel on
the wholesale channel being limited with a view to safeguarding the profitability.
In terms of secondary logistics, despite the difficulties faced to limit the drop deriving from the
downturn in unit volumes per point of sale and the financial hardships experienced by customers, the
performance was in line with expectations and the consolidated figures of 2008 both in terms of cost
and operations.
Concerning mandatory stocks, the situation has improved in comparison to 2008 as a consequence
of the reduction in interest rates.
Commercial Activities
Retail Sector
In 2009 the Italian retail sector (gasoline and diesel) recorded a 1.09% drop over 2008. This
contraction is due to the negative trend in gasoline consumption (-3.76% compared to 2008), only
partially offset buy a slight increase in diesel (+0.86% compared to 2008).
Margins were under significant pressure throughout the year due to the prices of petroleum
products on international markets.
The main events for 2009 in the Italian retail sector were the following:
■ increased impact of discounts to the public;
■ greater competition regarding contract agreements;
■ increased number of stores set up by private entities that increasingly focus on selling their own
brand, so-called “white pumps”.
As regards the api-ip network, 2009 was characterised by a development of the re-branding process
started in 2008 with the creation of the new IP brand, with 1,610 rebranded stores and thus exceeding
the set objective of 1,430.
As significant was the policy of discounts to the public granted on our network via pricing initiatives
that placed our stores in a better competitive position. In this regard, worth mentioning is the
promotion for the month of August involving motorway stations “Fridays and Saturdays -11 cents”,
supported by a national communication campaign via radio, the press and internet.
In terms of overall volumes of the Fuel Cards, CartaMaxima contributed with record breaking
volumes, thus offsetting the loss of the ENI Multicard and the lower euroShell sales. In percentage
terms, the increase in volumes due to the Fuel Cards was 2% compared to 2008.
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A.
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The annual sales of gasoline and diesel fuel of the api-IP network were equal to 3,410 million litres,
i.e. 0.15% more than in 2008. The total for fuels (including LPG) was 3,526 million litres, equal to
+0.69% over 2008.
In 2009 the api Group recorded an overall performance better than the market (+1.24% for
gasoline and diesel), thus increasing its market share by 0.12% compared to 2008 (9.83% vs 9.71%).
The trend for lubricant sales in the Italian market over the year saw a notable decline following the
negative trend of past years and highlighting a serious crisis in this segment. The 2009 result was
–17.7% (9,300 tonnes compared to 11,400 tonnes of 2008), confirming the slowdown caused by
known and consolidated reasons (renewal of working car/truck fleet, engines upgrades, product
evolution, leasing fleets, etc.) and a related partial shift of volumes to garages and dealers, factors
which were all exacerbated by the economic crisis.
Sales of lubricants on the api-IP network in 2009 stood at 1,268 tonnes, down by 7.9% over 2008.
In a heavily decreasing market (-17.7% vs 2008), our share market moved from 12.2% to 13.6%.
The Marketing area began important initiatives during the year. These include the new campaign
Passioni & Regali (Passions and Prizes) and two short-term promotions (Bicchieri d’Italia in June and
Ippys in November) as part of Promotions and Loyalty.
Furthermore, the Business Training School in Falconara continued its activities and involved
approximately 600 operators, also by touring Italy.
Worth mentioning is also the project “electronic vouchers” (prepaid and non rechargeable fuel cards
with scalar consumption).
In the partners network sales organisation, activities continued to focus on renewing the
agreements, corresponding to 110 contracts, 416 stores and more than 293 million litres in terms of
volumes. During this period, 17 contracts, worth 44 million litres and concerning 97 stores were not
renewed. Finally, 31 new contract agreements were stipulated, corresponding to 184 stores for
approximately 190 million litres.
During the year, significant technical interventions were made on the network to create 11 new
stores and restructure 16 existing stores.
Following the awarding of tenders in 2008, the api group’s motorway network passes from 19 to
26 stations. Four more motorway stations will also be active in 2010 (Vesuvio, Ofanto, Ponte nelle Alpi
and Piscina Sud).
At 31 December 2009 the api group network consists of 4,205 stations, 26 of which on motorways,
1,222 owned and 2,957 under contract, 630 of which with Retitalia.
Non-oil sector
Restaurant services linked to the oil industry recorded downward consumption also in 2009. In terms
of development and turnover, the network grew by passing from 130 stores in 2008 to 142 at the end
of 2009. The sales of the Festival chain increased from Euro 11.2 million in 2008 to Euro 11.7 million
in 2009 (+4.35%).
With regard to the lines “ShopIn” and “Festival Express”, development activities continue by
improving the training of our operators via specific courses held at the Business Training School, in
addition to increasing the number of stores, particularly due to the recently acquired motorway stations
that are fitted to host these formats. We are also developing specific products for operators, thanks to
the assistance of specialised suppliers.
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20092200
WHOLESALE SECTOR
DIESEL
The market as a whole, excluding the bunker channel, ends the year 2009 with a downturn
compared to 2008, with a drop in demand equal to 661,000 tonnes (4.69%), despite showing a
recovery in the last quarter, exclusively attributable to the automotive diesel fuel.
The negative effects of the credit and economic crisis under way in Italy were consolidated, despite
some early signs of recovery in the last part of the year. More in detail, a loss was recorded in the
automotive diesel fuel equal to 6.92% over 2008, with signs of recovery in the last quarter of the year,
in line with the aforementioned signs of growth in the industrial sector and more generally in heavy
road transport.
A negative value continued to be recorded for heating diesel fuel, -2.48%, substantially attributable
to the mild temperatures recorded until October, and overall positive values for agricultural diesel
(+1.76% yoy) and marine diesel (+7.02% yoy).
The prices of crude oil and finished products, though mitigated by the depreciation of the dollar,
which improved in the last part of the year, continued to steadily grow, producing a negative impact
on margins and non-performing financial positions.
In this context, api recorded an overall quantitative performance lower than the market (-6.80%),
implementing a policy aimed at defending margins, especially on the sales from logistic bases in the
north east, and containing financial exposures to protect the credit quality. Overall margins were lower
than the set budget objective.
Automotive diesel fuel and (-7.29%) agricultural diesel fuel (-9.65%) were negative, while heating
diesel fuel and (+2.08%) marine diesel fuel (+3.85%) increased.
The market share, net of bunkers, decreased slightly.
BITUMENS
In 2009 the market recorded an additional downturn in demand compared to 2008 for 136,000
tonnes, equal to -5.68%, thus confirming the negative trend already experienced during 2008
(234,000 tonnes less, equal to -8.98% vs. 2007). This negativity is to be found in the road section,
where public tenders did not take off, and in the industrial segment, which is directly linked to the real
estate market and particularly to the deadlock experienced in the construction industry.
On the contrary, api saw steadily increasing sales (+11.31%), also thanks to the increased use of
exports by some competitors, with a positive effect on the market share.
Margins exceeded expectations, thus confirming the better profitability of the segment as compared
to the carbon fuels segment.
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A.
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LUBRICANTS
The market confirmed a heavy drop equal to 20.09% over 2008, despite a mild recovery in the last
quarter, which is substantially attributable to the timid signs of recovery of the industrial segment and
retail businesses.
Customers continue to show signs of general financial distress, with a high credit risk for the entire sector.
For api sales decreased by 6.68% vs. 2008. The recovery means a significant increase in the market share.
Sales for apilube and IP went down compared to 2008 by 3.6% and 11.3% respectively; the drop
is substantially attributable to the destocking of large resellers occurred in the first part of the year and
the block of some major customers due to credit problems.
The objective of increasing the market share was pursued both by constantly searching for new
customers, especially in northern Italy, and by increasing sales to already acquired customers. In the
South, the goal was to optimise the customer portfolio by ending commercial relations with potentially
insolvent customers. The presence of sales agents was strengthened and rationalised in northern Italy,
with 9 more staff.
Exports improved by about 65% in comparison to 2008, due mainly to the increased sales to foreign
customers, the recovery of sales in the Greek market and the acquisition of a new customer in Bulgaria.
LPG
In 2009 the LPG combustion market recorded a drop in the combustion sector and a significant rise
in the automotive diesel fuel sector. In the first case the drop of 3.1% was affected by the economic
crisis in progress and the consequent drop in consumption and industrial production; while in the fuel
segment the increase was 9.5%, driven by government incentives and the low cost of gas compared
to other fuels, which led to a strong growth in the number of cars fuelled by LPG.
api sales in the “combustion” channel recorded a 4.5% increase compared to the previous year,
with a positive difference compared to the market of 7.9%. This market fall, despite the choice of
minimising development in the segment of large industrial plants of high supply level, heavily penalised
by the economic crisis and the uncertainty of return on investments, affected the expected results.
Although the cost of raw material began to rise continuously from the second half of 2009 compared
to the previous year, reaching the maximum records of 2008, a precise management of pricing in the
first months of the year allowed to overcome the set targets, both at a unit and overall level.
During the year, LPG sales to wholesalers basically respected the production cycles of the Refinery
and all the 44,833 tonnes available (30% less than 2008) were used.
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20092222
ENERGY
Plant performance
The percentage of operating hours of the plant for 2009 was 86.8% of total hours.
Maintenance activities, carried out according to the programme, were characterised by the ten-year
general inspection and the type “C” inspection of the Gas Turbine. They were carried out between April
and May (20 April – 31 May), with 2 days ahead of schedule compared to the 45 planned.
During this stoppage, the General Revision of the Steam Turbine was performed, with significant
interventions on the compressors of the air fractioning plant and the replacement of the refractory in
both gassifiers and other changes aiming to improve the reliability of the plant.
In 2009, the plant produced electricity totalling 2,030,487 MWh (2,182,705 in 2008) and 423,107
tonnes of steam (of which 83,247 high pressure, 241,903 medium pressure and 95,957 low pressure).
Significant events
Among the main development projects, worth mentioning is the completion of the investment
concerning the new pre-heating system Refinery Tar with Steam HPS. This project began in January 2008
and consisted of the installation of a heat exchanger and related safety controls and systems with the
purpose of improving pre-heating efficiency and recovering the small portions of tar inflows to the IGCC
plant. Downstream of Inspection “C” (June 09) the new system was put into service.
The preparatory engineering activities to restore the storage tank of the ChargeOil (TK39) that had
began in March 2008 were completed.
Concerning the evolution of the regulations on the Avoided Fuel Cost (CEC), we report that at 30
September 2009 a ministerial decree was published for the determination of the CEC, with reference to
the calculation methods already mentioned within resolution no. 249/06, with some methodological
novelties.
The forecast CEC value, which was first indicated and applied by the AEGG at the start of the year,
is now updated by the Ministry of the Economic Development for each quarter (starting from 30
September) and its application is immediate for the entire subsequent quarter (October - December
2009). The content of the decree reflect what is established in resolution no. 249/06, while the next
resolution no. 154/08 is still to be judged by the State Council;
In January 2010 a new publication was expected of the value of the CEC by the Ministry for the
period January - March 2010; while waiting for this provision in agreement with the GSE the value of
the previous quarter was used.
Concerning the Green Certificates at the Falconara plant, a series of checks and inspections were
carried out by the Inspectorate for the Compensation Fund for the Electricity Sector (CCSE) concerning
the assessment of the compliance with cogeneration criteria and all the standards concerning the plants
included under legislation CIP6/92. The CCSE Inspectorate acknowledged the cogeneration for all the
years, excluding 2002 and 2003, on completion of the meetings with the AEEG and the presentation of
our explanatory reports. Therefore in the current state api energia must sell the green certificates
purchased in 2006, for an amount (net) of euro 5.4 million; purchase them for euro 3.6 million for the
years 2002/2003; ask the CCSE for a reimbursement for the years 2002/2003 of euro 2.2 million.
Finally, as regards the White Certificates, upon the approval by the GSE of the energy saving project
for the consumption of electricity through the use of the Syngas Expander, on 31 January 2009,
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A.
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apienergia presented the GSE a request to acknowledge the energy savings for the period 2007 - 2012.
During 2009, 6,126 white certificates were issued of which 5,486 repaid for an amount equalling
Euro 234,358 while 640 securities approved by the AEEG and still in the sales phase will mean an
estimated revenue of about Euro 43,000.
Still in the approval phase by the ENEA, (entrusted by the GSE) is the energy saving project due to the
use of the inverse pump (0.4 MW) in the Selexol unit.
Research & Development
Within the internal research and development activities, on 24 March 2009 some tests were carried
out on the IGCC plant in the presence of CESI and GSE with the aim of arranging an hourly budget for
the energy produced in co-gasification in a way to be able to calculate the energy production deriving
from renewable sources in the various hours of the day. Successful operation tests were performed with
mixed fuels (8% vegetable oil / 92% Tar) further showing that the IGCC plant can operate as a hybrid
plant.
On 5 June 2009 the GSE officially assigned our plant the “IAFR” qualification with the recognition of
Green Certificates for just 50% of the energy production deriving from the use of biofuel. This position
derives from the failure to recognise the start-up of our plant as a hybrid plant prior to the publication of
the decree of 18 December 2008.
api energia sent a communication to the GSE to ask it to reconsider its position so that 100% of the
Green Certificates can be recognised, having shown to already be a hybrid plant starting from January
2008 after the positive assessment of General Electric in December 2007. It also subsequently lodged an
appeal with the regional court of Lazio.
From a technical point of view, a detailed engineering study is being completed to define the
equipment necessary in the refinery to provide the Falconara site with the sea transport supply system
(landing stage or island) for vegetable oil, tank farms (refinery tank to be modified or updated).
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20092244
EXTRAORDINARY TRANSACTIONS
During the year, with the purpose of rationalising the group’s structure, the following extraordinary
transactions were carried out:
■ with resolution of 18 March 2009 the Extraordinary Meeting of api raffineria s.p.a. approved the
merger by incorporation with the Luxemburg registered apioil international S.A. pursuant to
Legislative Decree no. 108 of 30/05/2008. The merger was stipulated on 10 September 2009, and
produced its juridical effects from 1 October 2009;
■ to complete the procedure started in January, on 28 July 2009 with notary deed drawn by notary
Marina Fanfani rep. 57647/16614, the merger by incorporation was perfected for the company
PANOIL S.r.l. single member company resolved on 31 March 2009 by the Board of Directors;
■ on 17 December 2009, with notary deed drawn up by notary Giacomo Spagnuolo rep. 2657/1416,
the merger by incorporation was perfected for the single member company Ca.l.gas., resolved on
23 September by the Board of Directors;
Worth mentioning is that the above mentioned transactions have not affected the Result for the
year or the consolidated shareholders’ equity.
Finally on 28 April 2009, the partial proportional spin-off, started in 2008 and approved by the
shareholders on 23 January 2009 was perfected, which transferred from the parent company to the
beneficiary, api real estate S.r.l., balance sheet elements in addition to those already transferred in the
partial proportional spin-off of 2005, creating strategic value in property management activities.
For details of the effects of this transaction on the consolidated net equity, refer to the Explanatory
Notes of these financial statements.
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A.
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RESULTS OF OPERATIONS1
Selected financial data and by business sector
Revenues from core operations
At 31 December the company showed revenues of Euro 2,841 million, lower than in the same
period of the previous year (Euro 3,924 million at 31 December 2008) due to the combined effect of
the decrease in prices and in volumes sold.
1 As a result of rounding into thousands or millions, the figures in the tables may not correspond to each other and the totals may correspondto the sums of the various components for some units (thousands or millions).
Euro/million 31.12.09 31.12.08
Total revenues (1) 2,841 3,924EBITDA 118 143EBIT 22 42
Total revenues from core operations:Refining and marketing (1) 2,682 3,744Energy 256 305Corporate 11 2Intersectorial revenues -107 -127TToottaall 22,,884411 33,,992244
EBITDA:Refining and marketing 53 69Energy 101 115Corporate -35 -41TToottaall 111188 114433
EBIT ex inventory and extraordinary expenses:Refining and marketing 9 169Energy 101 115Corporate -35 -41TToottaall 7744 224433
EBIT:Refining and marketing -8 1Energy 66 82Corporate -37 -41TToottaall 2222 4422
EBIT ex inventory and extraordinary expenses:Refining and marketing -51 102Energy 66 82Corporate -37 -41TToottaall --2222 114422
Net debt (2) 796 812
(1) net of excise tax and trading(2) net of cash at bank and in hand
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20092266
EBITDA
At 31 December the company reported an EBITDA of Euro 118 million, Euro 25 million less than in
the same period of the previous year (Euro 143 million at 31 December 2008).
The decline compared to EBITDA in 2008 is mainly due to the combined effect of the following
extraordinary factors:
■ lower refining and sales margin due to a particularly unfavourable oil market scenario;
■ the variation in international prices for petroleum products which has led to an increase in the price
of crude oil and products in the warehouse resulting from application of the average weighted cost.
This increase, calculated as the difference between the valuation at the end of the financial year and
the valuation at the beginning of the financial year of the quantities still held in stock at the end of
the financial year, added to the provision to the warehouse write-down provision, resulted in
inventory profits of Euro 63.3 million (compared to losses of Euro 100.4 million at 31 December
2008);
■ extraordinary costs for the rebranding of points of sale equal to 19.5 million.
EBITDA in 2009, adjusted to take into account the inventory effect and the rebranding costs, is Euro
74 million, Euro 169 million lower than the rectified EBITDA of the same period of the previous year
(Euro 243 million as at 31 December 2008).
EBIT
At 31 December the company reported an EBIT of Euro 22 million, Euro 20 million less than in the
same period of the previous year (Euro 42 million at 31 December 2008).
The movement is due mainly to the reasons described above.
31.12.09 31.12.08
Investments Euro/million 71 78
Employees at period end No. 945 907
Supply & Trading tonnes 6,787,400 7,682,500
Refinery processing tonnes 3,709,000 3,911,000
Retail sales tonnes 2,713,000 2,695,000
Wholesale Sales tonnes 1,786,000 1,842,000
Other Sales (1) tonnes 256,000 323,000
Production MWh 2,030,487 2,182,705
Stocks of raw materials and products tonnes 743,002 874,110
(1) include sales to oil companies and export sales
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A.
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RESULT for the period net of taxation
The loss at 31 December, net of taxation, amounts to Euro 6.4 million, against Euro 18.4 million in
2008.
In the period under examination, the company showed taxation of Euro 3.7 million, consisting of
costs for current taxes of Euro 8.7 million (Euro 3.1 million of which for IRAP and 5.5 million for IRES),
revenue from the release of deferred tax provisions of Euro 4.5 million, as well as increases in prepaid
taxation of Euro 0.4 million.
IRES was calculated by applying, in addition to the ordinary rate of 27.5%, an additional 6.5% for oil
and energy sector business with revenues greater than Euro 25 million, pursuant to art. 81 of Legislative
Decree no. 112 of 25/06/2008, amended by art. 56, paragraph 3 of Law no. 99 of 23 July 2009.
BUSINESS SECTORS
Analysis of the trend for the year in detail by sector, with respect to the same period of 2008, shows
the following:
Refining and Marketing
Main results for the period
-
Refining
The api Group carries out refining activity through the Falconara Refinery and, for certain special
processing, through a processing account with the Alma Refinery, owned by third parties.
The overall refining capacity of the api Group totals around 4 million tonnes of crude oil per year.
Euro/million 31.12.09 31.12.08
Revenues from core operations 2,682 3,744
Intersectorial revenues -101 -119
Revenues from third parties 2,581 3,625
EBITDA 53 69
Amortisation and depreciation and write-downs -60 -68
Operating profit (loss) -8 1
Ex inventory results
Euro/million 31.12.09 31.12.08
EBITDA 9 169
Operating profit (loss) -51 102
31.12.09 31.12.08
Processing at api Refinery in Falconara tonnes 3,500,000 3,683,000
Processing at Alma Refinery in Ravenna tonnes 209,000 228,000
Refinery processing tonnes 3,709,000 3,911,000
api Refinery Processing margin $/barrel -1.7 6.5
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20092288
At 31 December 2009 processing totalled 3,709 thousand tonnes, decreased as compared to the
processing of same period of the previous year (3,911 thousand tonnes at 31 December 2008).
Processing at the subsidiary api Raffineria di Ancona was lower than 2008, due to a particularly
unfavourable oil situation which led to reduced processing in the second half of the year and problems
in the gasoline circuit in the first quarter of 2009.
Processing at the Alma Refinery in Ravenna was slightly lower than 2008 due to limited availability
of Sarago crude oil.
At 31 December 2009 the refining margin was -1.7 $/per barrel, decidedly lower than the margin
for the previous year (6.5 $/per barrel at 31 December 2008) mainly as a result of the less favourable
industry scenario.
Marketing
The api Group markets petroleum products under the api and IP brands, both in the so-called Retail
channel, through points of sale, either owned or contracted, located on ordinary road and motorway
networks, and through the so-called Wholesale Channel, with sales to wholesalers and resellers, and
marginally, through export sales by ship (so-called cargo market) and to other oil companies.
The marketed volumes are reported below:
At 31 December 2009, a total of 4,755 thousand tonnes were sold, less than the prior year (4,860
thousand tonnes at 31 December 2008).
Retail sector
At 31 December 2009 retail sales were 2,713 thousand tonnes (of which 1,638 thousand tonnes
under the IP brand), up from the same period in the previous year (2,695 thousand tonnes at 31
December 2008, of which 1,453 thousand tonnes under the IP brand), despite negative market trends,
thanks to targeted marketing campaigns and the stipulation of new contract arrangements.
Unit margins for 2009 were lower than the same period of 2008, and were partially offset by greater
volumes in economic terms.
Wholesale
At 31 December 2009 wholesale sales were 1,786 thousand tonnes (of which 5 thousand tonnes
under the IP brand), down from the same period in the previous year (1,842 thousand tonnes at 31
December 2008, of which 6 thousand tonnes for IP), primarily due to tensions on sales margins.
31.12.09 31.12.08
Retail sales tonnes 2,713,000 2,695,000
Wholesale Sales tonnes 1,786,000 1,842,000
Other Sales (1) tonnes 256,000 323,000
TToottaall SSaalleess ttoonnnneess 44,,775555,,000000 44,,886600,,000000
* Include sales to oil companies and export sales
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A.
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At 31 December 2009 unit margins were lower than in the same period of 2008.
Al 31 dicembre 2009 i margini unitari sono stati inferiori a quelli dello stesso periodo del 2008.
Other sales
At 31 December 2009, other sales totalled 256 thousand tonnes, less than the prior year (323
thousand tonnes at 31 December 2008), mostly due to the lower production.
Crude oil and product inventory
Increase in value of crude oil and petroleum products in stock at the beginning of the year and still
existing at year end resulted in profits from inventory of Euro 63.3 million (losses for 100.4 million Euro
at 31 December 2008).
EnergyIn 2009 the percentage of operating hours of the plant was 86.8% of total hours.
Below, the production of electricity is reported:
Main results for the period
The result was negatively affected by the scheduled shutdown for ten-year maintenance and the
changes in the calculation of the CIP6 tariff.
Euro/million 31.12.09 31.12.08
Revenues from core operations 256 305
Intersectorial revenues -6 -8
Revenues from third parties 249 297
EBITDA 101 115
Amortisation and depreciation and write-downs -35 -33
Operating profit (loss) 66 82
31.12.09 31.12.08
Production MWh 2,030,487 2,182,705
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20093300
FINANCIAL MANAGEMENT
Net debt
Last year was not non an easy one for the Italian and international banking system, which had to
face the effects of the extraordinarily negative impact of the crisis triggered by the bankruptcy of the
Lehman bank in September 2008, as well as the generalised reduction in revenues and profits due to
the drastic reduction of the spread between interest receivable and interest expense caused by the
constantly decreasing interest rates, as decided by the authority. The drop in interest margin combined
with the growing cost of credit and increased non-interest bearing investments caused by the economic
crisis, led the banking system to increase the spread on loans towards the majority of borrowers
throughout 2009.
As far as the api group is concerned, such a trend paradoxically translated into a greater cost of
loans granted to the parent company with maturity after one or two weeks (with a spread ranging
between 0.50% and 0.90%), compared to the existing ones and not subject to hedging contracts with
longer maturities (3 or 5 years) and spreads (generally around 45 basis points) that resulted from the
prevailing market conditions in the years before the credit crunch.
Despite increasing spreads, the combined effect of the drop in rates recorded during the year and
the choice of the banking counterparties offering the most advantageous conditions, allowed the
parent company to pay “finished” rates (i.e. inclusive of the spread) that are substantially lower than
the previous year, thus resulting in considerable savings in terms of financial charges.
The net debt of the group decreased for the second year in a row, down to Euro 795,887 thousand
at 31 December 2009 against Euro 812,324 thousand at the end of 2008. This positive trend is
attributable to the contained working capital and investments.
The increased liquidity is partially due to the considerable ability to generate cash shown by the
subsidiary api energia, which during the year also distributed dividends for approximately Euro 26.7
million, and an improved management of collections/payments of the parent company, to which the 5-
year factoring transaction concerning receivables and started in the summer of 2008 contributed.
Due to the special market conditions, new financing was not stipulated during the year,
consequently the reduction in medium/long term debt from Euro 686,573 thousand at the end of 2008
to Euro 604,569 thousand in 2009, of which Euro 408,429 thousand pertains to api spa and Euro
196,140 thousand to api Energia, is the result of the reimbursement of maturing loans and repayment
of project finance instalments.
Net debt(in Euro/thousand) 31.12.2009 31.12.2008
Cash at bank and in hand 128,345 111,614
Liquidity tied up in project finance 98,538 45,777
Medium to long term financial debt 604,569 686,573
Short term financial debt 436,601 253,063
NNeett ffiinnaanncciiaall ppoossiittiioonn 881144,,228877 778822,,224455
Loans to Controlling Companies/Other Group Companies 18,400
Financial debt to Controlling Companies/Other Group Companies 30,079
TToottaall 779955,,888877 881122,,332244
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A.
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At 31 December 2009, the residual nominal debt relating to the funding granted to api energia was
Euro 225,973 thousand. The residual debt was recalculated under the amortised cost at a rate of 2.6%
for a total of Euro 221,358 thousand.
None of the lines granted to api spa provides for costs in case of non use and none of the loans
taken out is burned by covenants of any kind. In all instances the company has the option to redeem
loans at any time before expiry without for this having to pay any penalties.
At the end of December 2009, the api group had credit facilities from the banking system, both in
Euro and in foreign currencies, of over Euro 2.2 billion. The utilisation percentage of such facilities was
47% compared to 45% of the previous year.
The Group’s average debt was covered during the year by recourse to the following sources of
financing:
As regards hedging strategies for interest rate risks, in consideration of the expected trend in interest
rates and the average residual duration of the loans not hedged against this risk, the parent company
decided not to enter into other hedging contracts during the year.
In reference to hedging the same risk by the subsidiary api energia, it is noted that 75% of the debt
originating from the project finance is hedged by three simple “plain vanilla” Interest Rate Collar
derivatives. In hedging terms, a minimum borrowing rate of 1.97% (Interest Rate Floor) and a maximum
lending rate of 6% (Interest rate Cap) are expected.
At year end, at a consolidated level, the percentage of medium/long term debt hedged against the
interest rate fluctuation risk was slightly lower than 50%.
At group level, the only company engaged in trading in exchange rates and, as such, exposed to the
exchange rate fluctuation risk is the parent company, api – anonima petroli italiana spa. To meet the
foreign currency needs arising from crude oil imports, in 2009 the company traded a record amount of
USD 1.639 billion through Italian and foreign bank counterparties operating in the exchange rate
market.
Net of exports total USD 85.4 million, the balance of dollars at risk was USD 1.5 billion in 2009,
compared to USD 2.48 billion in 2008.
The decrease in foreign currency transactions was a direct consequence of the heavy drop in the
prices of imported raw materials compared to the record figure of the previous year.
The exchange rate risk is managed by stipulating forward purchase agreements with an average
term of 15 days. These purchases, the amount of which is approximately 6.5 million dollars /day, are
made by benchmarking with the daily closures of the European Central Bank (ECB). During the year,
this management resulted in average accumulated savings of Euro 1.7 million, calculated as the
difference between the Euro/USD weighted average exchange rate from the ECB (1.4021) and the
weighted average purchase exchange rate obtained by api (1.4043) from bank counterparties.
(Euro/thousand)
- ordinary current accounts 78,580 average rate 1.95%
- operating loans 116,319 average rate 1.64%
- medium/long term financing 719,133 average rate 2.98%
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20093322
PERSONNEL
The total number of employees of api anonima petroli italiana S.p.A. Group at 31.12.2009 was 945
(907 at 31.12.2008). The movement is mainly due to the incorporation of the company apiSoi Service
into api Raffineria di Ancona, partially offset by the rationalisation of the last year. No changes in the
employees of the other companies included in the consolidation are recorded.
The change in staff costs for 2009 compared to 2008 was influenced by above mentioned
incorporation of the Company which was previously not included in the consolidation as well as by a
tranche of contractual salary increase provided under the Energy and Oil Collective Labour Agreement,
the renewal of the supplementary contract of api anonima and the stipulation of that of api Energia.
With regard to trade unions activities in api anonima, the main events concerned the complex
renewal of the corporate supplements and the application of flexible working hours.
In api Raffineria in the first half of the year, a series of significant understandings were reached for
the renewal of the supplements of the Mare department and a series of reorganisation of various
internal activities. The second half of the year, on the other hand, was focused on reaching an
agreement with trade union organisations to define the five-year plan of reorganisation and
requalification of the personnel, with the primary objective of improving performance, decreasing
energy consumption and improving maintenance efficiency. At the end of a process that required a
great deal of constructive discussions, an agreement was signed on 23 December with National and
Local Trade Unions and RSU to identify a total of 92 people to become redundant for the site and for
whom early retirement plans will be arranged, encourage the dismissal of about 60 employees and
reallocated the others through internalisation projects. The plan will resort to a 4-year unemployment
benefit plan.
In 2009 training activities concerned the completion of managerial courses, the consolidations of
courses for new graduates in the group and some specific initiatives targeted for professionals and
executives. In api Raffineria training initiatives were focused on safety and the environment, the review
of procedures regarding the integrated management systems, the needs deriving from the operating
departments and the analysis of “near accident” events. HR development initiatives concerned the
assessment and development of the potential of younger talents and the creation of a similar course
for executives in the group.
In 2009, the Organisation function concentrated on reviewing the procedures of some Corporate
Staff Functions of the controlling company api spa, while a new procedure is about to be shared, which
governs relationships with the Public Administration in accordance with the provisions of Legislative
Decree 231.
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A.
Repo
rt of
the
Boar
d of
Dire
ctor
s
3333
IT SYSTEMS
As regards IT systems, worth mentioning is the renewal of all the central systems, which were
updated and improved to offer services that satisfy the changing business needs, with energy savings
equal to about 30% while keeping the cost level in line with that recorded in the old facilities. In
January 2009 the machine room was moved to the new office in Via Salaria. This activity was carried
out without disrupting operations. The infrastructure of the new plant also features significant
improvements (such as switching to VOIP telephony).
In terms of applications, Sap was updated to the latest version available in combination with an
activity of re-documentation of the corporate processes that use this management system. The activity
of adjustment to ITGC (IT general controls) standard and creation of monitoring and control dashboards
already started during the year was continued as planned.
ACTIVITIES OF THE SUPERVISORY BODY
On 31 March 2009 the Board of Directors of the controlling company api anonima petroli italiana
s.p.a. approved the review of the Model of organisation, management and control of the company and
the redefinition of the risk map following the activities conducted in 2008; on the same date the Board
approved and implemented the review of the Code of Ethics common to all the group companies while
approving the appointment of the new Supervisory Body.
During the year the Supervisory Body verified the correct application of Legislative Decree 231/01 by
analysing the periodical information flows coming from corporate management and using the checks
made with the intervention of the Internal Audit function of api holding, from which no criticalities
emerged.
IMPLEMENTING THE “PRIVACY” REGULATION
Also this year the controlling company api s.p.a. updated the Programmatic Document on Safety
according to the provisions of Legislative Decree 196/2003, adopting the minimum safety measures
contained therein.
RESEARCH AND DEVELOPMENT ACTIVITY
We confirm that no cost was deemed to be capitalised as regards research and development
activities.
TRASURY STOCKS AND CONTROLLING COMPANY SHARES HELD
Pursuant to the special provisions of Article 2428, Paragraphs 3 and 4 of the Italian Civil Code, it is
confirmed that the company does not hold treasury stocks nor stocks or shares in controlling companies
either through trustee companies or third parties and that the foregoing categories of stocks or shares
have been neither purchased nor sold during the year.
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20093344
RELATIONS WITH SUBSIDIARY AND ASSOCIATED COMPANIES
In reference to relationships with subsidiaries, the size of the most significant relationships over the
year, divided by sector, are reported below:
Sales turnover 2009 (to/from Parent Company)(in Euro/thousand)
RReeffiinniinngg
api raffineria s.p.a. to api 155,545
from api 40,806
EEnneerrggyy pprroodduuccttiioonn
api energia s.p.a. from api 67,071
OOiill ccoonnssuummppttiioonn
Dialco s.r.l. from api 17,084
to api 5
apisem s.r.l. to api 3,852
G.R.C. s.r.l. to api 774
from api 13
Alpenoil s.r.l. from api 4,562
to api 11
Abruzzo Costiero s.r.l. from api 30
to api 2,765
BBaarrss aanndd rreessttaauurraannttss
Festival s.p.a. from api 67
SSeerrvviicceess
api holding s.p.a. to api 4,810
from api 169
PPrrooppeerrttyy
api real estate s.r.l. to api 3,701
from api 70
OOiill TTrraaddiinngg
api services (servizi) tp api 215
apioil Limited to api 550,390
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A.
Repo
rt of
the
Boar
d of
Dire
ctor
s
3355
MAIN EVENTS OCCURRING AFTER YEAR END AND BUSINESS OUTLOOK
The company ROYAL OIL S.r.l. was set up on 19 January 2010 as a single-shareholder private limited
company (interest held by "api" anonima petroli italiana S.p.A.) through the conferment by the parent
company of a company branch comprising 10 service stations located in Sicily (with pertaining
uncovered areas and service buildings such as car wash machine, tool deposits and premises used as
service area and bar).
The early months of the year confirmed the climate of recovery of the economic cycle worldwide,
with the International Monetary Fund increasing the expected growth in global GDP from 3% to 3.9%
for 2010.
The recovery will be certainly remarkable in the United States rather than the Euro zone; the growth
for the US is estimated at 3% (compared to - 2.40% in 2009). As for Europe, GDP is expected to grow
by 1.20% (-3.9% in 2009); positive signs can be seen also for Italy where, after a particularly hard first
half of 2009, the recovery is estimated to cause GDP to rise by almost 1%.
Despite positive expectations, Central Banks continue to remain very cautious when defining
their policies while waiting for macroeconomic data to provide clear indications on the structural
growth and the expected level of inflation. In the last FOMC meeting of March, the FED reiterated
how the American economy is “strengthening slowly”, thus suggesting possible exit strategies to
be adopted in coming months already. The adoption of restrictive monetary policies, on the other
hand, is not considered as likely, especially until the unemployment rate remains on the current level
of more than 10%.
In the meeting of March the ECB also maintained interest rates at 1%. Seeing the economic
recovery in the Euro zone will be significantly slower than in America, the market believes that actions
aimed at increasing official discount rates are very unlikely to be taken before the FED intervenes in the
same direction. These rates are therefore expected to stay at 1 % throughout 2010.
As regards the currency market, in the first two months of the year the euro continued to depreciate
against the dollar, passing from 1.4563 of 13 January to 1.3489 at the end of February; a change in
trend started at the beginning of March as a result of some particularly disappointing macroeconomic
data for the USA area and a series of positive signs coming from Greece: right from the beginning of
the year this country had drawn negative attention due to the concerns regarding public finance, and
it now seems to be heading for a period of internal austerity and radical restructuring of the accounts.
The PSD (Payment Service Directive) came into force on 1 March. It implements also in Italy, as
already occurred in other European countries, a system aimed at making payments and collections
easier, more efficient and safer. The PSD is the basis for the creation of the Single Euro Payments Area
designed for greater European integrations without distinction between domestic and cross-border
transactions. The company, which had already predisposed the information and treasury systems
necessary to implement the directive, has already adopted the new standard.
We believe that, given the persisting economic crisis or due to the fragile recovery, in the next few
months concerns will re-emerge as to the sustainability of the debt of many countries in the monetary
union and the satisfaction of the targets regarding the deficit/GDP ratio planned at the beginning of
the year. Uncertainty is bound to characterise the European economic scenario and many observers
believe the analysis of the fundamental macroeconomic data will continue to show a strengthening of
the dollar, expected to reach 1.30 against the euro.
As regards brent BWAVE, the first months of the year saw a drop in prices from 81.51 $/barrel on
8 January to 70.01 $/barrel in early February; at the beginning of March an appreciation up to 82
$/barrel was recorded, as a direct consequence of the above mentioned depreciation of the dollar.
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20093366
The recovery of economic activities expected in the next few months in the United States and, to a
lower extent, in Europe, combined with the strong signs of growth already recorded in China and the
emerging economies (India and Brazil first of all), suggests that crude oil will maintain its current level
(approx. $80) also for the months to come.
Concerning company operations, the refining scenario remains unfavourable although, in light of
the expected economic improvement, the signs of an increase in the average level of refining margins
compared to the previous year can be seen. In March refining processing was stopped for a month as
planned.
Concerning distribution, in the first months of 2010 the company showed a performance that is in
line with the last months of 2009, with a slight recovery of volumes compared to the same period of
the previous year and compared to the market which, as a whole continues to record decreasing
consumptions.
Rome, 31 March 2010
Board of Directors
The Chairman
Dott. Ugo Brachetti Peretti
Manager in charge of the preparation
of accounting documents
Dott. Stefano Cardello
Cons
olid
ated
Fin
anci
al S
tate
men
ts a
s of
31
Dece
mbe
r 200
9Group api anonima petroli italiana S.p.A Notes 31/12/09 31/12/08
Revenues 2,777,475,760 3,862,440,691
Other revenues 63,139,754 61,616,531
TToottaall 66 22,,884400,,661155,,551144 33,,992244,,005577,,222222
Costs for Raw Materials and Consumables 77 (2,218,951,056) (3,284,269,724)
Costs for Services 88 (325,176,835) (314,297,692)
Costs for Use of third party assets (28,943,400) (21,110,166)
Staff cost 99 (66,531,205) (65,877,993)
Amortisation and depreciation and write-downs 1100 (96,450,950) (101,152,948)
Provisions for Risks 1111 (9,158,234) (8,098,948)
Other operating costs 1111 (73,879,476) (87,706,938)
TToottaall ((22,,881199,,009911,,115566)) ((33,,888822,,551144,,440099))
OOPPEERRAATTIINNGG RREESSUULLTT 2211,,552244,,335588 4411,,554422,,881122
Financial income (charges) (24,121,764) (61,279,924)
Income (and charges) from valuation using the NE method 870,803 1,528,744
TToottaall 1122 ((2233,,225500,,996611)) ((5599,,775511,,118800))
RREESSUULLTT BBEEFFOORREE TTAAXXAATTIIOONN ((11,,772266,,660033)) ((1188,,220088,,336677))
Taxation for the period 1133 (3,675,995) 418,752
Change in Cash Flow Hedge Reserve (CFH) 1144 (982,729) (610,664)
RREESSUULLTT FFOORR TTHHEE PPEERRIIOODD NNEETT OOFF TTAAXXAATTIIOONN ((66,,338855,,332277)) ((1188,,440000,,227799))
Result for the Period – Group (6,750,743) (18,786,966)
Result for the Period – Minority Interests 365,416 386,687
BBaassiicc eeaarrnniinngg ppeerr sshhaarree 1155 --00..444488 --00..112299
DDiilluutteedd eeaarrnniinngg ppeerr sshhaarree 1155 --00..444488 --00..112299
DDiivviiddeenndd 1155 -- --
* In applying the amendment of IAS 1 (2007) in force from 1 January 2009, an additional row was entered to the income statement that includes the
components concerning the Cash Flow Hedge.
Consolidated Statement of comprehensive income*31 December 2009
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 3399
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20094400
Group api anonima petroli italiana S.p.ANotes 31/12/09 31/12/08
Fixed assets, Plant and Machinery 1166 933,516,108 964,765,781
Goodwill 1177 123,626,279 123,573,279
Intangible Fixed Assets 1188 129,184,781 132,004,110
Equity Investments 1199 13,569,908 14,023,906
Other assets 2200 25,709,397 25,418,713
Derivative instruments 2211 594,831 364,847
Prepaid Taxation 2222 100,229,038 100,824,569
NNoonn--CCuurrrreenntt AAsssseettss 11,,332266,,443300,,334422 11,,336600,,997755,,220055
Inventories 2233 322,642,079 310,582,721
Trade receivables and other debtors 2244 507,674,463 580,650,055
Loans to Controlling companies 2255 18,400,000
Other assets 2266 21,815,164 22,201,675
Tax receivables 2277 18,832,303 11,321,893
Liquidity tied up in Project Financing 2288 98,538,258 45,777,150
Cash at Bank and in hand and Cash Equivalents 2299 128,344,649 111,614,348
CCuurrrreenntt AAsssseettss 11,,111166,,224466,,991166 11,,008822,,114477,,884411
TTOOTTAALL AASSSSEETTSS 22,,444422,,667777,,225588 22,,444433,,112233,,004466
Share Capital 115,425,000 115,425,000
Legal Reserve 19,295,263 19,295,263
Other reserves 273,579,262 300,384,529
Profit /Loss for the year (6,750,743) (18,786,966)
TToottaall GGrroouupp sshhaarreehhoollddeerrss’’ eeqquuiittyy 3300 440011,,554488,,778822 441166,,331177,,882266
Minority Interests 1,577,220 1,514,611
SShhaarreehhoollddeerrss’’ eeqquuiittyy 440033,,112266,,000022 441177,,883322,,443377
Medium to long term debt 3311 604,568,767 686,572,538
Employee benefits 3322 15,131,322 15,290,621
Deferred taxation provision 3333 137,158,910 148,396,576
Provision for Risks and Charges 3344 51,554,959 63,299,441
NNoonn--CCuurrrreenntt LLiiaabbiilliittiieess 880088,,441133,,995588 991133,,555599,,117766
Trade and other payables 3355 392,845,011 416,920,602
Derivative instruments 3366 22,645,924 23,920,602
Short term debt 3377 436,601,490 254,663,037
Payables due to Controlling Companies 0 28,480,256
Other liabilities 3388 255,208,153 253,286,566
Payables due to taxation authorities 3399 123,836,720 135,039,596
CCuurrrreenntt lliiaabbiilliittiieess 11,,223311,,113377,,229988 11,,111111,,773311,,443333
TTOOTTAALL LLIIAABBIILLIITTIIEESS 22,,444422,,667777,,225588 22,,444433,,112233,,004466
* In applying the amendment of IAS 1 (2007) in force from 1 January 2009, the name was changed from Balance Sheet to Statement of financial position
Consolidated Statement of financial position*31 december 2009
Cons
olid
ated
Fin
anci
al S
tate
men
ts a
s of
31
Dece
mbe
r 200
9
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 4411
Group api anonima petroli italiana S.p.A 2009 2008
NNeett rreessuulltt ffoorr tthhee ffiinnaanncciiaall yyeeaarr ((66,,338855)) ((1188,,440000))
AAddjjuussttmmeennttss ffoorr::
Depreciation of Tangible Fixed Assets 94,787 99,171
Intangible Fixed Assets Amortisation and Impairment 1,664 1,982
Write-down on Third party network 2,756
Effects of Equity Evaluation of Equity Investments (871) (1,529)
Changes in Provisions (including Employee Severance Indemnity) 1,666 (9,088)
Neutralisation of non-monetary effects of Hedge Accounting 1,438 2,143
Reclassification of capital gain from sale of cylinder company branch as investments
Other non-monetary items (12,862) 40,484
Provision Variation (Asset) for Deferred (Prepaid) Taxation (9,774) (57,247)
Cash-flow from Operating Activities (prior to change in Working Capital) 69,663 60,272
Change in trade receivables 73,480 107,281
Change in inventory (12,059) 54,275
Change in trade payables (23,495) (33,669)
Change in other operating activities – net (86,543) 65,735
Effects of change in the exchange rates on consolidated foreign subsidiaries (630) 456
CCAASSHH--FFLLOOWW FFRROOMM OOPPEERRAATTIIOONNSS [[AA]] 2200,,441155 225544,,335500
Investments in intangible fixed assets (318) (234)
Investments in tangible fixed assets (71,685) (75,668)
Equity investments 821 (2,684)
Change in long term financial assets (18,691) (1,825)
CCAASSHH--FFLLOOWW FFRROOMM IINNVVEESSTTMMEENNTTSS [[BB]] ((7711,,447733)) ((8800,,441111))
Repayment/opening of medium/long term debt (82,174) (39,001)
Change in short term financial debts/receivables 150,277 (176,277)
Distribution of dividends (313)
CCAASSHH--FFLLOOWW FFRROOMM FFIINNAANNCCIINNGG AACCTTIIVVIITTYY [[CC]] 6677,,778899 ((221155,,227788))
Effect on cash resulting from exchange rate differences
Increase /(decrease) in cash and cash equivalents [a+b+c] 16,730 (41,340)
OOPPEENNIINNGG BBAALLAANNCCEE OOFF CCAASSHH AANNDD CCAASSHH EEQQUUIIVVAALLEENNTTSS 111111,,661144 115522,,995544
CCLLOOSSIINNGG BBAALLAANNCCEE OOFF CCAASSHH AANNDD CCAASSHH EEQQUUIIVVAALLEENNTTSS 112288,,334455 111111,,661144
Consolidated Cash Flow Statement31 December 2009
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20094422
Grou
p ap
i ano
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a pe
trol
i ita
liana
S.p
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Othe
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ecor
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Effe
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oth
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serv
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128
1(7
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6
Effe
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573
573
3737
611
Othe
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in s
hare
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equ
ity
Chan
ge in
the
cons
olid
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Allo
catio
n of
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r 200
719
,483
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253
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Prof
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r(1
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Chan
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ems
31 D
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Cons
olid
ated
Fin
anci
al S
tate
men
ts a
s of
31
Dece
mbe
r 200
9
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 4433
Grou
p ap
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3,33
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s Tr
ansl
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n Re
serv
e(6
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(628
)(3
)(3
)(6
31)
Effe
ct o
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ccou
ntin
g op
erat
ions
(252
)(2
52)
1313
(239
)
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hare
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Spin
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in fa
vour
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pi re
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8(1
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,787
387
(387
)
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r(6
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)(6
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)36
536
5(6
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66
Chan
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in S
hare
hold
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Equ
ity It
ems
31 D
ecem
ber 2
009
1. COMPANY INFORMATION
Publication of the consolidated financial statements for the financial year ended 31 December 2009
for api, with registered office in Rome, Via Salaria 1322, has been authorised by Directors’ resolution
of 31 March 2010.
Consolidation area
The consolidated financial statements include the financial statements for the period at 31
December 2010 of api anonima petroli italiana S.p.A. and the following subsidiary companies held
directly or indirectly:
The equity investments in associated companies detailed below were valued under the equity method:
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20094444
Company name Registered Shareholders % held Share Capitaloffice (Euro/thousand
unless otherwise indicated)
“api Raffineria” di Ancona S.p.A.(hereinafter referred to as “api Raffineria”) Ancona “api” 100 13,125
api Energia S.p.A. Rome “api” 98.84 13,831
“third parties” 1.16
api services limited (United Kingdom) London “api” 99.99 GBP 10,000
“third parties” 0.01
apioil limited (Bermuda) Hamilton “api” 99.99 USD 2 million
“third parties” 0.01
Festival S.p.A. Rome “api” 100 560
Dialco S.r.l. Bari “api” 100 10
Alpenoil S.r.l. Rome “api” 100 100
G.R.C. S.r.l. Rome “api” 100 50
apifin S.r.l. Rome “api” 100 600
Accounting Standards and explanatory notes
Share CapitalCompany name Registered (Euro/thousand % held Shareholder
office unless otherwise indicated)
Società collegate:
apisoi Service S.p.A. Falconara (An) 260 50.00 “api Raffineria”
50.00 “third parties”
apisem S.p.A.. Lecce 423 50.00 “api”
50.00 “third parties”
Abruzzo Costiero S.r.l. Pescara 2,995 30.00 “api”
70.00 “third parties”
Saccne rete S.r.l. Messina 2,200 50.00 “api”
50.00 “third parties”
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Equity investments in associated companies in which the company considers it does not exert any
actual influence over and other equity investments are valued using the cost method.
The principal consolidated companies engage in the following business activities:
■ “api”: crude oils supply and distribution of petroleum products;
■ “api Energia”: management of a power generation plant based on integrated gasification and
combined cogeneration cycle;
■ “api Raffineria”: oil refining on account of the parent company;
■ apioil limited e api services Ltd.: respectively procurement brokerage and sale of petroleum products
and monitoring international petroleum product markets;
■ Festival S.p.A.: restaurant services management;
■ Apifin S.r.l.: credit card and financial services management.
The other consolidated companies, of lesser significance, engage in marketing in the oil industry and
services predominantly on behalf of Group companies.
Concerning the corporate operations carried out during the year on minority equity investments,
Civita Servizi, Aerdorica and SGR, refer to the paragraph concerning “Equity Investments” of these
Explanatory Notes.
Finally, concerning the transactions of rationalisation of the Group’s structure, refer to the paragraph
“Extraordinary transactions” of this Management Report.
2.1 PREPARATION CRITERIA
The consolidated financial statements have been prepared on the basis of the historical cost
principle, with the exception of derivative financial instruments which have been recorded at the fair
value. The book value of assets and liabilities recorded, which are subject to hedging transactions, and
which would otherwise be recorded at cost, are adjusted to take into account the changes in the fair
value attributable to the risks being hedged. The consolidated financial statements are presented in
Euro and all values are expressed in thousand Euro unless otherwise indicated.
Statement of compliance with IFRSs
The consolidated financial statements at 31 December 2009 for api anonima petroli have been
prepared in compliance with the International Financial Reporting Standards (IFRS) adopted by the
European Union.
In relation to the accounting standards adopted for the preparation of the consolidated financial
statements it is pointed out that the company falls under the scope laid down by letter f) of Art. 2 of
Legislative Decree no. 38 of 28 February 2005, which regulates the exercising of the options provided
for by Art. 5 of Community Regulation no. 1606/2002 in relation to the International Financial
Reporting Standards (hereinafter also “IFRS”) and therefore in accordance with Article 3, Paragraph 2
of the same decree, the Company has voluntarily exercised the right to apply the IFRSs adopted by the
European Union for the preparation of its consolidated financial statements, commencing from the
2005 financial year.
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 4455
Consolidation principles
The consolidated financial statements include the financial statements for api anonima petroli
italiana and subsidiary companies prepared at 31 December 2009, adopting the same accounting
standards as the parent company at each year end.
All intercompany balances and transactions, including any profits and losses not realised resulting
from relations maintained between Group companies which are recognised under assets, are
completely written off.
Subsidiary companies are fully consolidated from the date of acquisition, or from the date on which
the Group acquired control, and cease to be consolidated on the date on which control is transferred
outside of the Group.
2.2 DISCRETIONARY VALUATIONS AND CONSIDERATIONS IN RELATION TO THE SEASONAL OR CYCLICAL NATURE OF INTERIM TRANSACTIONS
Uncertainty of estimates
Key assumptions made in relation to the future and other important sources of uncertainty of
estimates are presented below at the date of closure of the company accounts, which could give rise
to significant book value adjustments to assets and liabilities within the next financial year.
Goodwill impairment
Goodwill is tested for impairment on at least an annual basis; said test requires an estimate of the value
in use of the cash-generating unit to which the goodwill is attributed, in turn based on the cash flows
expected from the unit and discounting back on the basis of a suitable discount rate.
Please refer to Paragraph 17 of these Explanatory Notes for details of the book value for goodwill.
Other items
Estimates have been necessarily applied to calculate the following:
■ prepaid tax assets, with regard to the probability of their future reversing;
■ appropriations to the provision for doubtful debtors and provisions for risks and charges;
■ main assumptions applied to the actuarial recalculation of the provision for severance indemnity
(employee benefits), such as future turnover rate, inflation rate and discount rate.
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2.4 SUMMARY OF THE MAIN ACCOUNTING STANDARDS
Translation of entries in foreign currency
The consolidated financial statements at 31 December 2009 are presented in Euro, which is the
functional and presentation currency adopted by the Company. Each Group entity defines its own
functional currency, which is used to evaluate items included in the individual financial statements at
31 December. Transactions in foreign currency are initially recorded at the exchange rate (relative to the
functional currency) current at the date of the transaction. Monetary assets and liabilities, denominated
in foreign currency, are translated into the functional currency at the exchange rate current on the
closing date of the consolidated financial statements. All exchange rate differences are recorded in the
income statement, with the exception of differences deriving from financing in foreign currency
initiated to cover a net investment in a foreign company, which are recorded directly in shareholders’
equity until such time as the investment is disposed of, when it is recognised in the income statement.
Taxation and tax credits attributable to exchange rate differences on such financing are also charged
directly to the balance sheet. Non-monetary items in foreign currency valued at historical cost are
translated by using the exchange rate in force on the date of initial recognition of the transaction. Non-
monetary items recorded at the fair value in foreign currency are converted by using the exchange rate
at the date of determination of this value.
The operating currency used by apioil Limited Bermuda is the US Dollar, while for the company
apiservices Ltd London U.K. it is the British Pound. At the consolidated balance sheet date, the assets
and liabilities for these subsidiaries are converted into the presentation currency of api anonima petroli
italiana S.p.A. (Euro) at the exchange rate in force at that date, and the income statement is converted
using the average exchange rate for the period. The exchange rate differences resulting from the
translation are recorded directly in the balance sheet and are expressed separately in a special reserve
for the same. At the time of disposal of a foreign company, the cumulative exchange rate differences
recorded in shareholders’ equity in consideration of that particular foreign company are recorded in the
income statement.
Property, plant and machinery
Property, Plant and Machinery are recorded at the historical cost, net of ordinary maintenance costs, less
the relative depreciation provision and accumulated impairment losses. This cost includes the costs for
the replacement of part of the plant and machinery at the time that these were incurred if compliant
with recognition criteria. Depreciation is calculated using the straight line method on the basis of the
estimated useful life of the asset.
The book value of plant and machinery is subject to impairment tests when events or changes indicate
that the book value may not be recoverable.
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 4477
The useful life of assets is estimated as indicated below:
Financial charges
Financial charges are recorded in the income statement as incurred.
Financial charges directly attributable to the purchase of plant (see the subsidiary company api
energia) have been capitalised as part of the cost of the asset they are relating to.
Property investments
Property investments are initially recognised at the historical cost, inclusive of ancillary negotiation
fees. The book value includes the cost contributing to the replacement of part of a property investment
at the time at which the cost is incurred, on the condition that recognition criteria are satisfied, and
excludes ordinary maintenance costs. Property investments are written off from the financial statements
when they are sold or when the investment is unusable over the long-term and there are no future
economic benefits to be gained from its sale. Any profits or losses resulting from the withdrawal or
disposal of property investment are recorded in the income statement in the financial year in which the
withdrawal or disposal occurs.
Reclassifications to property investment occur when, and only when, there is a change of use
evidenced by events such as: termination of direct use, commencement of an operating lease contract
with third parties or the completion of construction or property development works. Reclassifications
from property investment occur when, and only when, there is a change of use evidenced by events
such as: commencement of direct use or commencement of a development project with the prospect
of a future sale.
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Rate % Useful life 31/12/2009 2008 31/12/2009 2008
Land
Industrial buildings 4% 4% 25 25
Pipeline tanks 5.55% 5.55% 18 18
Light constructions 10.00% 10.00% 10 10
Generic plants 5.55% 5.55% 18 18
Scantly corrosive plants 6.25% 6.25% 16 16
Highly corrosive plants 8.33% 8.33% 12 12
Point of sale sheltered buildings 5.00% 5.00% 20 20
Point of sale fittings 8.33% 8.33% 12 12
Tanks canisters cylinders 7.14% 7.14% 14 14
Formation expenses 6.66% 6.66% 15 15
LPG burners at third parties 25.00% 25.00% 4 4
Other fixtures, tools and equipment 25.00% 25.00% 4 4
Furniture 12.50% 12.50% 8 8
Electronic machines 20.00% 20.00% 5 5
Motor vehicles 25.00% 25.00% 4 4
UOP catalysers 33.33% 33.33% 3 3
AKZO catalysers 50.00% 50.00% 2 2
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When the assets used directly by the Group become a property investment, the Group records these
assets in compliance with the criteria indicated in the Property, plant and machinery item up until the
date of change of use.
Goodwill
Goodwill acquired by way of business combination is initially valued at cost, represented by the
surplus of the cost of the business combination with respect to the share pertaining to the Group in
the net fair value, relating to the identifiable values of the assets, liabilities and contingent liabilities.
After initial recognition, the goodwill is valued at cost, decreased by any accumulated impairment
losses. Goodwill is subjected to impairment tests with annual or greater frequency if events or changes
occur which may give rise to any impairment losses.
For the purposes of this test, the goodwill acquired through business combination is allocated, from
the date of acquisition, to each of the cash-generating units (or group of units) it is considered will
benefit from the synergistic effects of the merger, apart from the allocation of other assets and liabilities
to these same units (or groups of units). Each unit or group of units to which the goodwill is allocated:
■ represents the lowest level within the Group at which the goodwill is monitored for the purposes of
internal management;
■ is not larger than a segment as defined in the Group primary or secondary reporting schedule in
accordance with IAS 14 Segment Reporting.
The impairment loss is determined by defining the recoverable value of the cash-generating unit (or
group of units) to which the goodwill is allocated. When the recoverable value of the cash-generating
unit (or group of units) is less than the book value, an impairment loss is recorded. In cases where the
goodwill is attributed to a cash-generating unit (or group of units) whose asset is partially disposed of,
the goodwill associated with the asset sold is considered for the purpose of calculation of any capital
gain (loss) resulting from the transaction. In such circumstances, the goodwill transferred is measured
on the basis of the values relative to the asset disposed of with respect to the asset still held with
reference to the same unit.
Intangible fixed assets
The following categories of intangible fixed assets exist within the Group, the useful life of which is
defined as follows:
– trademark indefinite useful life
– owned network indefinite useful life
– third party network indefinite useful life
– licences indefinite useful life
– software finite useful life (contract duration)
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 4499
Intangible fixed assets acquired separately are initially capitalised at cost, while those acquired by
way of business combination are capitalised at fair value at the date of acquisition. Following initial
recognition, the intangible fixed assets are recorded at cost, net of depreciation provisions and any
accumulated impairment losses. Intangible fixed assets generated internally are not capitalised and are
recorded in the income statement in the financial year in which they were incurred. The useful life of
intangible fixed assets is evaluated as defined or indefinite. Intangible fixed assets with finite life are
amortised over the period of their useful life and subjected to consistency tests each time that there are
indications of a possible impairment loss. The period and the method of amortisation applied to these
are reviewed at the end of each financial year or more frequently if necessary. Changes in expected
useful life or the methods with which the future economic benefits associated with the intangible fixed
assets are achieved by the Group are recorded by modifying the period or the method of amortisation,
as appropriate, and treated as modifications to the accounting estimates. The amortisation portions for
intangible fixed assets with finite life are recorded in the income statement in the cost category
consistent with the function of the intangible fixed asset.
Intangible fixed assets with an indefinite useful life are subjected to annual impairment tests at
individual level or at cash generating unit level. No amortisation is recorded for such assets. The useful
life of an intangible fixed asset with indefinite life is reviewed on an annual basis in order to ascertain
whether the conditions at the basis of such classification still exist. If not, the change in the useful life
from indefinite to finite is made on the basis of future use.
The profits or losses deriving from disposal of an intangible asset are measured as the difference
between the net sales revenue and the book value of the asset and are recorded in the income
statement at the time of disposal.
The CO2 emission rights, assigned by the Italian governing authorities for the five year period 2008
– 2012 are entered among the intangible fixed assets and among the other creditors; any deficit
concerning the assigned quotas, will be recognised in the item “provisions for risks and charges” and
shall be covered by market purchase. Any surplus of quotas accounted for at year-end will be recorded
in inventories. The Management believes that this accounting method provides a clearer and more
immediate representation of the real Group’s commitment with regard to the Emission Rights
regulation, by eliminating the overexposure of the asset and liability items involved in the previous
accounting method.
Equity investments in associated companies
Group equity investments in associated companies are valued using the equity method. An associate
is a company on which the Group exerts significant influence which cannot be classified as a subsidiary
or joint venture.
In accordance with the equity method, an equity investment in an associated company is recorded
in the balance sheet at cost, increased by the changes subsequent to acquisition for the share
pertaining to the group of the net assets of the associate. Goodwill pertaining to the associate is
included at the book value of the equity investment and is not subject to amortisation. After applying
the equity method, the Group determines whether it is necessary to record any additional impairment
losses with reference to the shareholders’ equity investment of the Group in the associate. The income
statement reflects the share pertaining to the Group of the financial year result for the associated
company. In the event that the associated company records adjustments which are directly attributed
to the shareholders’ equity, the Group records the share pertaining to it and presents this, where
applicable, in the statement of changes in shareholders’ equity.
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The accounting year-end for the associates coincides with the last accounts approved; the
accounting standards used comply with those used by the Group for transactions and events of the
same nature in similar circumstances.
Impairment losses
At each accounting year-end, the Group tests assets for impairment. In this case, or in cases where
annual impairment test is required, the Group makes an estimate of the recoverable value. The
recoverable value is the greater of the fair value of an asset or cash-generating unit net of the costs of
sale and its value in use and is calculated for each individual asset, except where this asset does not
generate cash flows, which are fully independent of those generated by other activities or groups of
assets. If the book value of an asset is greater than its recoverable value, this asset has suffered an
impairment loss and is consequently written down to bring it back to the recoverable value. In
determining the value in use, the Group discounts future estimated cash flows, using a pre-tax
discounting back rate which reflects the market valuations of value of money at the time and specific
risks of the asset. Impairment losses suffered by assets during the financial year are recorded in the
income statement in the cost categories consistent with the function of the asset which demonstrated
the impairment loss.
At each year end, the Group also evaluates any existence of indications of failure to occur (or the
reduction) of impairment losses previously recorded and, and if these indications exist, estimates the
recoverable value. The value of an asset previously written down can be restored only if there have been
changes in the estimates used to determine the recoverable value of the asset after the last recording
of an impairment loss. In this case, the book value of the asset is returned to the recoverable value,
without, however, the value increased in this way being able to exceed the value which would have
been calculated, net of depreciation, if no impairment losses had been recorded in previous years. Each
time the value is restored, it is recorded as income in the income statement, except where the asset is
recorded at a revalued amount, in which case restoring of the asset is treated as a revaluation. After a
value restoration has been recorded, the depreciation portion for the asset is adjusted in future periods,
in order to spread the modified book value, net of any residual value, using the straight line method
over the remaining life of the asset.
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 5511
Inventories
Inventories are valued at the cost or the net estimated realisable value, whichever is lower.
Costs incurred for transporting to the actual location and warehousing are recorded as follows:
Raw materials – purchase cost based on the Weighted Average
Cost method;
Products for resale and – direct cost of materials and manufacturing plus a
semi-finished products portion of the general production expenses defined
on the basis of normal production capacity but not
considering financial charges.
The net estimated realisable value comprises the normal estimated sales price after deduction of the
estimated completion costs and estimated costs for realising the sale.
Trade and other debtors
Trade receivables are recorded at the nominal amount given in the invoice, net of the provision for
doubtful debtors. This provision is made in the presence of objective proof that the Group will not be
able to collect the receivables. Receivables which cannot be collected are written off at the time at which
they are identified.
Cash at bank and in hand and cash equivalents
Cash at bank and in hand and short term deposits in the balance sheet and include petty cash and
on demand and short term deposits, in the latter case with the original forecast due date of no more
than three months.
For the purpose of the consolidated cash flow statement, cash at bank and in hand and cash
equivalents are represented by the cash deposits as defined above, net of bank overdrafts.
Financing
All financing is initially recognised at the fair value for the payment received, net of any ancillary
costs for obtaining the loan.
After initial recording, the financing is valued under the amortised cost criterion using the actual
interest rate method.
Each profit or loss item is entered in the income statement when the liability is written off, as well
as through the depreciation process.
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Medium to long term provisions
Allocations to provisions for risks and charges are made when the Group has to meet a current
obligation (legal or implied) resulting from a past event, it is probable that resources will need to be
allocated to meet such an obligation and it is possible to make a reliable estimate of the amount. When
the Group considers that an allocation to the provision for risks and charges will be either wholly or
partially repaid, such as for example in the case of risks covered by insurance policies, the indemnity is
recorded in a distinct and separate manner in assets if, and only if, it is practically certain. In this case,
the costs of any relative allocation are presented in the income statement net of the amount recorded
for the indemnity. If the effect of discounting the monetary value is significant, the allocations are
discounted using a discount rate before tax which reflects, where appropriate, the specific risks of the
liability. When the discounting has been implemented, the increase in the allocation due to the passage
of time is recorded as a financial charge.
Employee benefits
Employee benefits granted subsequently to termination of the employment relationship (defined
benefit post-employment benefits) and other long term benefits are subject to actuarial assessment.
Liabilities recorded in the accounts are represented by the current value of the company obligation, net
of any plan assets.
We would like to point out that the company has decided not to use the “corridor approach” and
to record profits and losses resulting from changes to the actuarial calculations directly in the income
statement.
Supplementary severance indemnities are recorded as a liability and cost when the company is
committed to interrupting the employment relationship of an employee or group of employees prior to
normal retirement, or it has undertaken to make severance payments following a voluntary redundancy
proposal due to redundant staff.
Following the 2007 reform of the national regulation that governs – for those Companies with more
than 50 employees – the severance indemnity accruing as from 1 January 2007 can be defined as a
defined contribution plan, whose payments are directly booked to the income statement as costs, if
any. The severance indemnity accrued until 31 December 2006 is still considered as a defined benefit
plan, with no future contributions. For this reason, it is valued by independent actuaries, only based on
the expected residual average working life of employees, without taking into account the remuneration
received during a preset service period.
Therefore, the severance indemnity accrued before 1 January 2007 is calculated on a different basis,
due to the non-occurrence of the previous actuarial assumptions linked to salary increases. More
specifically, the liability linked to the “severance indemnity accrued” is currently valued at 1 January
2007, without pro-rata application (years of service rendered/total years of service), since employee
benefits at 31 December 2006 may be considered as almost entirely accrued (with the sole exception
of revaluation), pursuant to paragraph 67 (b) of IAS 19. As a consequence, with regard to this
calculation, the current service costs related to future working service of employees shall be considered
null, since they are represented by contribution payments to supplementary pension funds or to the
Treasury fund at the Italian National Social Security Institution (INPS).
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 5533
Recognition of revenues
Revenues are recorded to the extent to which it is probable that the economic benefits will be
achieved by the Group and the relative amount can be determined in a reliable manner. The following
specific criteria for recognition of revenues must be met prior to being recorded in the income
statement:
Sale of goods
The revenue is recognised when the company has transferred all significant risks and benefits
associated with ownership of the asset to the purchaser. Part of group sales revenues is based on a sales
contract with GSE, regulated at the predetermined tariff by provision 6/1992 of the Inter-Ministerial
Prices Commission (CIP 6), which applies for 20 years and has already been authorised by the European
Community for the first 15 years. The provision provides for recognition of an incentive for the first
eight years of the contract.
This incentive component represents an advance in terms of time of contractually anticipated
revenues, which has been reformulated for the duration of the authorisation obtained from the
European Community: the incentive is therefore recognised as revenue in proportion to the quantity of
energy sold relating to this period.
Following the coming into force of the IFRIC 13 “Customer Loyalty Programmes” the part of the
revenue corresponding to the fair value of the prizes prospected in the loyalty campaign “Passione e
Regali” is recorded among other liabilities; this liability is booked to the income statement in the year
in which the prize is awarded or the related right expires.
Interest
This is recorded as financial income following ascertainment of the interest receivable for the period
(carried out using the actual interest method which is the rate which exactly discounts the expected
future cash flows on the basis of the expected life of the financial instrument at the net book value of
the investment).
Dividends
Revenues are recorded when shareholders obtain the right to receive payment.
Rent receivable
Rents resulting from property investments are entered in the accounts on a straight-line basis over
the duration of the leasing contracts in existence at the date of interim financial statements.
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Income tax
Current taxes
Current taxes are valued at the amount which it is expected will be recovered or paid to the tax
authorities.
The rates and tax regulations applied to calculate the amount are those current on the closing date
of accounts.
Deferred taxes
Deferred taxation is calculated by applying the liability method to the temporary differences
between the tax values for assets and liabilities taken as a reference and the values given in the financial
statements.
Deferred tax liabilities are recorded against all taxable temporary differences, except:
■ when the deferred tax liabilities result from initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination merger and which, at the time of the same
transaction, does not have an effect either on the financial year profit calculated for accounting
purposes or for tax purposes;
■ with reference to temporary taxable differences associated with shareholdings in subsidiary and
associated companies, in the event that the reversal of the temporary differences can be controlled
and that it is probable that they will not occur in the foreseeable future.
Deferred tax assets are recorded against all temporary deductible differences and for tax assets and
liabilities carried forward, to the extent to which their recovery is probable.
The value of deferred tax assets to be reported in financial statements deferred tax assets is reviewed
at the end of each financial year.
Deferred tax assets and liabilities are measured on the basis of the tax rates which it is expected will
be applied to the financial year in which the asset is realised or the liability written off, considering the
rates in force and those being issued or already issued at the balance sheet date.
Taxation on income relative to items recorded directly in the shareholders’ equity is attributed directly
to the shareholders’ equity and not the income statement.
Deferred tax assets and liabilities are offset, if there is a legal right to offset current tax assets against
current tax liabilities and the deferred taxes make reference to the same taxation entity and the same
tax authority.
Value Added Tax
Revenues, costs and assets are recorded net of Value Added Tax with the exception of cases where:
■ the tax applied on the purchase of goods or services is non-deductible, in which case it is recorded
as part of the purchase cost of the asset or part of the cost item recorded in the income statement;
■ it relates to trade receivables and creditors presented including the value of the tax.
The net amount of indirect taxes on sales which can be recovered from or paid to the Inland
Revenue is included in the financial statements under trade receivables and payables depending on
whether it is a positive or negative balance.
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Derivative financial instruments and hedging transactions
The Group uses derivative financial instruments including foreign currency forward contracts and
interest rate swap contracts to hedge the risks resulting mainly from interest and exchange rate
fluctuation. These derivative financial instruments are initially recognised at fair value at the date on
which they are stipulated, after which the fair value is periodically reviewed. They are recorded in the
accounts as assets when the fair value is positive and as liabilities when it is negative.
Any profits or losses resulting from changes in the fair value of derivatives which are not suitable for
hedge accounting are directly attributed to the income statement for the financial year.
The fair value for foreign currency forward contracts is calculated with reference to current forward
exchange rates for contracts with a similar expiry date. The fair value for swap contracts on interest
rates is determined with reference to the market value for similar instruments.
For the purposes of hedge accounting, hedges are classified as:
■ fair value hedge if they cover the risk of a change in the fair value of the underlying asset or liability;
■ cash flow hedge if they cover the risk of a change in cash flows resulting from existing assets and
liabilities or from future transactions;
■ net investment hedge in a foreign entity.
A hedge transaction to cover the exchange rate risk associated with an irrevocable commitment is
recorded in the accounts as a cash flow hedge.
On initiating a hedge transaction, the Group designates and formally documents the hedge
relationship to which it intends to apply hedge accounting, its own objectives in the management of
the risk and the strategy followed. The documentation includes identification of the hedge instrument,
the item or transaction that is the object of the hedge, the nature of the risk and the method by which
the entity intends to evaluate the hedge effectiveness in compensating for exposure to fair value
changes in the item or cash flows which can be traced back to the hedged risk.
It is expected that this hedging will be highly effective in compensating for the exposure of the
hedged element to changes in the fair value or cash flows attributable to the hedged risk; the
evaluation of the fact that these hedges are demonstrated to be highly effective is carried out on an
ongoing basis during the financial years to which they are designated.
Transactions which satisfy the criteria for hedge accounting are recorded in the accounts as follows:
Fair value hedge
The Group resorts to fair value hedge transactions to cover the exposure to changes in the fair value
of assets or liabilities in the financial statements or an irrevocable commitment not recorded in the
financial statements, as well as an identified part of such assets, liabilities or irrevocable commitment,
which can be attributed to a particular risk and which could have an impact on the income statement.
With regard to fair value hedges, the book value of the item which is the object of the hedge is adjusted
for the profits and losses attributable to the risk which is the object of the hedge; the derivative
instrument is recalculated at the fair value and the profits and losses from both of these are entered in
the income statement.
With regard to fair value hedges relative to items entered in the accounts in accordance with the
depreciated cost criteria, adjustment of the book value is depreciated in the income statement over the
remaining period until expiry. Any book value adjustments to a hedged financial instrument to which
the actual interest rate method is applied are depreciated in the income statement.
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The depreciation can commence as soon as there is an adjustment, but not after the date on which
the item subject to hedging ceases to be adjusted, due to changes in the fair value attributable to the
risk which is the object of the hedging.
When an irrevocable unrecorded commitment is designated as an item subject to hedging, the
subsequent accumulated changes in its fair value attributable to the hedged risk covered are entered
in the accounts as assets and liabilities and the corresponding profits or losses are recorded in the
income statement. Changes in the fair value of the hedge instruments are also entered in the Income
Statement.
An instrument is no longer recorded in the accounts as a fair value hedge contract when it expires
or is sold, written off or exercised, the hedge no longer meets the hedge accounting requirements, or
when the Group withdraws the designation. Any adjustments to the book value of a financial
instrument subject to hedging for which the effective interest rate method is used are depreciated in
the income statement. Depreciation may commence as soon as an adjustment occurs, but not after the
date on which an item subject to hedging ceases to be adjusted for changes in its fair value that can
be traced back to the risk which is the object of the hedging.
Cash flow hedge
Cash flow hedges are hedge transactions to cover the risk of variability of cash flows attributable to
a particular risk, associated with a recorded asset or liability or a highly probable future transaction
which could have an influence on the profit result. Profits or losses deriving from the hedge instrument
are entered in the shareholders’ equity for the effective part, while the remaining part (ineffective) is
entered in the income statement.
The profit or loss entered in the shareholders’ equity is reclassified to the income statement during
the period in which the transaction subject to the hedging influences the income statement (for
example when a financial charge or income is recorded or when an anticipated sale or purchase occurs).
When the item subject to hedging is the cost of a non-financial asset or liability, the amounts entered
in the shareholders’ equity are transferred at the initial book value of the asset or liability.
If it is considered that the anticipated transaction will no longer occur, the amounts initially recorded
in the shareholders’ equity are transferred to the income statement. If the hedge instrument expires or
is sold, cancelled or exercised without being replaced, or if its designation as hedging is withdrawn, the
amounts previously entered in the shareholders’ equity remain recorded therein until such time as the
anticipated transaction occurs. If it is considered that this will no longer occur, the amounts are
transferred to the income statement.
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 5577
3. ACCOUNTING STANDARDS, AMENDMENTS AND INTERPRETATIONS APPLIED AT 1ST JANUARY
The consolidated financial statements of api anonima petroli italiana were modified compared to the
2008 edition following new standards and interpretations enforced from 1 January 2009, details of which
are attached hereto.
IAS 1 Presentation of the Financial Statements (Reviewed)
Updated version of IAS 1 – Presentation of the financial statements no longer allows the
presentation of the income components such as income and charges entered directly as shareholders’
equity in the Statement of changes in shareholders’ equity instead requiring a separate indication
compared to the changes generated by transactions with the shareholders. According to the new
version of the standard, all the changes generated by transactions other than from those created with
the shareholders, must be highlighted in a single separate statement that shows the performance for
the period (statement of comprehensive income) or in two separate statements (income statement and
statement of comprehensive income). These changes must be shown separately also in the Statement
of the changes in Shareholders’ equity. The group applied the updated version of the standard starting
from 1 January 2009 in a retrospective manner.
IFRIC 13 Customer Loyalty Programmes
This interpretation explains that the free or discounted assets or services (“prizes” or “prize points”)
assigned within a customer loyalty programme must be recorded as a separate component of the
related transaction and sale in which the points or prizes were awarded. A part of the fair value of the
sales amount must, therefore, be recorded to offset the item “Other liabilities”; this liability is booked
to the income statement in the year in which the customer uses the prize points or the right expires.
The application of IFRIC 13 implied the following changes in the Income statement for 2008 and
the balance sheet at 31 December 2008:
■ reduction in “Revenues” and “Other operating costs” for Euro 16,389 thousand;
■ reclassification of the item “Provisions for risks, charges and expenses” to “Other liabilities” of Euro
13,180 thousand.
Concerning the year 2009, the application of the standard in question implied the entry of
adjustments to revenues for Euro 13,700 thousand and “Other liabilities” for Euro 17,550 thousand,
as an estimate of sales forecasts, based on which customers will order advertising gifts, which will be
purchased and delivered in 2010.
4. SPIN-OFF OF A REAL ESTATE BRANCH
On 28 April 2009, the partial proportional spin-off, started in 2008 and approved by the
shareholders on 23 January 2009 was perfected, which transferred from the parent company api
anonima petroli Italian Spa to the beneficiary, api real estate S.r.l., balance sheet elements equal to Euro
8,147 thousand, in addition to those already transferred in the partial proportional spin-off of 2005,
conveying strategic value in property management activities.
The accounting effects of the spin-off transaction are summarised in the table below:
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5. REPORTING BY BUSINESS SECTOR
The statement is presented according to IFRS8 – Operating segments and the reporting statement
comprises the business sectors.
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 5599
Description Liability reversal Asset reversal
Taxed Provision on reclamation of transferred land 390,000
Deferred taxation provision 1,208,000
Extraordinary reserve 7,138,000
Latent tax credits within 12 months 274,000
Transferred assets 8,147,000
api real estate srl 315,000
Total 8,736,000 8,736,000
Euro/million Refining Energy Corporate Groupand Marketing
3311..1122..22000099
Net revenues from core operations 2,682 256 11 2,948
Intersectorial revenues -101 -6 -107
RReevveennuueess ffrroomm tthhiirrdd ppaarrttiieess 22,,558811 224499 1111 22,,884411
EEBBIITTDDAA 5533 110011 --3355 111188
Amortisation/depreciation -60 -35 -1 -96
EEBBIITT --88 6666 --3377 2222
IInnvveessttmmeennttss iinn ffiixxeedd aasssseettss 6633 88 7711
3311..1122..22000088
Net revenues from core operations 3,744 305 2 4,052
Intersectorial revenues -119 -8 -127
RReevveennuueess ffrroomm tthhiirrdd ppaarrttiieess 33,,662255 229977 22 33,,992244
EEBBIITTDDAA 6699 111155 --4411 114433
Amortisation/depreciation -68 -33 -101
EEBBIITT 11 8822 --4411 4422
IInnvveessttmmeennttss iinn ffiixxeedd aasssseettss 5599 1199 7788
Euro/million Refining and Energy Financial and Elisions GroupMarketing not allocated
3311..1122..22000099
Fixed assets 877 421 97 -68 1,326
Business 758 82 288 -11 1,116
TToottaall aasssseettss 11,,663355 550022 338855 --8800 22,,444433
BBuussiinneessss lliiaabbiilliittiieess 663399 115555 11,,772288 --8800 22,,444433
3311..1122..22000088
Fixed assets 860 448 101 -68 1,340
Business 794 145 202 -38 1,103
TToottaall aasssseettss 11,,665544 559933 330033 --110077 22,,444433
BBuussiinneessss lliiaabbiilliittiieess 667799 220055 11,,666666 --110077 22,,444433
6. REVENUES AND OTHER REVENUES
Revenues from sales and services show a decrease, as compared to the same period in 2008, of Euro
1,083,441 thousand. This decrease was due to the combined effect of:
■ a price decrease, due to the decrease in the international quotations of petroleum products;
■ a reduction in refining and distribution margins;
The item “revenues from sales and services” includes the cost of the promotional campaign
“Passione e regali” attributed to non booked prizes, in application of IFRIC 13 entered into force on 1
January 2009, as mentioned in the section “Accounting standards, amendments and interpretations
applied at 1 January”.
The item “Other revenues” is summarised below:
The figure indicated for the “Royalties” item relates to fees for non-oil activities.
The item “Capital gains from property sales” – equal to Euro 824 thousand – referred to the capital
gain realised by the parent company due to the transfer of service stations.
“Income from plant and industrial fixtures and fittings”, totalling Euro 3,464 thousand, relates to
fees derived from company rental payments, hires, automatic car-washes and various equipment, up by
Euro 609 thousand compared to the previous year.
“Other revenue/Repayments”, totalling Euro 58,117 thousand, increased by Euro 1,917 thousand
and mainly includes:
■ Euro 16,348 thousand as reimbursement of the CO2 quotas purchased to cover the emissions of
the IGCC plant;
■ Euro 2,185 thousand as partial repayment of the green certificates that api energia must purchase
for 2002-2003, as the cogeneration plant qualification was not obtained;
■ Euro 3,087 thousand relative to revenues of api raffineria for mooring of tankers using the offshore
platform for the discharge of crude oil;
■ Euro 5,401 thousand relating to charge-back by the parent company to operators of part of the
costs incurred for the promotional campaign 2009;
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20096600
Explanatory Notes to the Income Statement Items
Euro/thousand 31/12/09 31/12/08
Revenues 2,777,476 3,862,440
Other revenues 63,140 61,617
TToottaall 22,,884400,,661166 33,,992244,,005577
Euro/thousand 31/12/09 31/12/08
Royalties 735 1,098
Capital gains from the sale of property, plant and machinery 824 1,464
Income from plant and industrial fixtures and fittings 3,464 2,855
Other revenues /Repayments 58,117 56,200
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■ Euro 6,948 thousand for charge-back to our customers of logistics and product transport services
(Euro 2,432 thousand), maintenance services (Euro 788 thousand) and royalties on volumes sold
(Euro 3,728 thousand);
7. COSTS FOR RAW MATERIALS AND CONSUMABLES
The heading “Costs for raw materials and consumables” as at 31 December 2009 totalled Euro
2,218,951 thousand, showing a decrease, as compared to 31 December 2008, of Euro 1,065,319
thousand, mainly resulting from the reduction in the international quotations of petroleum products.
The total of the item “Costs for raw materials and consumables” includes the change in the stocks
of raw materials, semi-finished products and goods for resale valued both at 31 December 2009 and
at 31 December 2008 under the “Weighted Average Cost Method”. This change was equal to Euro -
10,122 thousand at 31 December 2009 and Euro -58,222 thousand at 31 December 2008.
The change of Euro 68,344 thousand (Euro -99,546 thousand at 31 December 2008) benefits from
a positive income component equal to Euro 63,264 thousand, calculated as a change of the valuation
at the end of the year of the quantities still held in stock at the end of the financial year, connected
with the decreasing price trend in 2009 compared to the previous year.
8. COSTS FOR SERVICES
The item costs for services, equal to Euro 325,177, is summarised below:
Costs for services show a decrease of Euro 10,978 thousand versus the previous year.
Item “Transport”, which covers costs incurred for road and sea transport, totals Euro 48,026
thousand and is essentially in line with last year.
The item “Maintenance” of Euro 71,241 thousand, covers the costs incurred for non-incremental
ordinary and extraordinary maintenance services, carried out at the Retail sales points, on refinery plant
and the IGCC plant. The increase is attributable to the “rebranding” activities being performed on the
parent company’s distribution network.
The “Contract service station fees” equal to Euro 89,430 thousand, refer to the fees paid to contract
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 6611
Euro/thousand 31/12/09 31/12/08
Costs for raw materials and consumables 2,218,951 3,284,270
of which changes in stocks (10,218) 52,011
Euro/thousand 31/12/2009 31/12/2008
Transport 48,026 50,134
Maintenance 71,241 64,842
Service station fees 89,430 96,545
Advertising and communication costs 6,545 3,567
Commissions 4,237 3,917
Technical and administrative services 42,301 34,208
Other services 63,397 61,085
TToottaall 332255,,117777 331144,,229988
operators. The decrease compared to the previous year, equal to Euro 7,115 thousand, is mainly
attributable to the decreasing margin between the price list applied to contract operators and the Platts
price of the products.
The item “Advertising and promotion costs”, equal to Euro 6,545 thousand, represents the costs
incurred by the parent company for the advertising campaign during the qualification phase of the
Italian soccer team to the 2010 World Cup, as official sponsor.
Commissions of Euro 4,237 thousand, are relating to fees paid to third parties for sales of petroleum
products in the name and on behalf of api; the balance at 31 December 2009 includes discounting
back, in compliance with the provisions of IAS 37. The effects of discounting back were appraised by
applying the “projected unit credit method” as defined in IAS 19.
“Technical and administrative services” for Euro 42,301 is up by Euro 8,093 thousand compared to
the previous year, due to the greater use of technical collaborations for “rebranding” activities and the
signing of a service agreement between api anonima and api holding.
Under the “Other services” item totalling Euro 63,397 thousand, the following should be noted:
■ “Mandatory oil stocks and on consignment” totalling Euro 31,945 thousand, relating to both the
charge for the parent company (Euro 13,280 thousand) recognised to other oil companies for stocks
of product as “mandatory stocks”, as required under the current rules and regulations, and to
charges for storage at third parties of own product (Euro 18,665 thousand);
■ Euro 3,083 thousand for miscellaneous utility bills (Euro 3,818 thousand at 31.12.2008);
■ Euro 4,827 thousand relating to costs incurred for insurance policies (Euro 5,330 thousand in 2008);
■ Euro 857 thousand for surveillance and guardianship (Euro 951 thousand at 31.12.2008);
■ Euro 456 thousand for commercial paper expenses (Euro 567 thousand at 31.12.2008);
■ Euro 11,577 thousand relating to painting of points of sale (Euro 2,484 thousand at 31.12.2008).
The increase of Euro 9,093 thousand is due to the “rebranding” activities performed during the
year.
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9. STAFF COSTS
Staff costs, equal to Euro 66,531 thousand, are substantially in line with the previous year.
“Wages and salaries” increased by Euro 2,608 thousand compared to the previous year, mostly due
to the staff passing from the associated company Apisoi to the subsidiary api raffineria.
“Social security costs” for Euro 13,796 thousand are in line with the previous year.
“Staff pension costs and similar charges”, equal to Euro 8,470 thousand, mainly include:
■ the costs for rehearsal courses for Euro 347 thousand;
■ company canteen costs for Euro 745 thousand;
■ travelling expenses for employees for Euro 2,923 thousand;
■ charges for interim work and for the collaborators from group companies for a total of Euro 1,270
thousand;
It should be noted that “staff costs” cover, for an amount totalling Euro 261 thousand, the positive
effect of discounting the Employee Severance Indemnity at 31 December 2009. For details of this,
please refer to the liability item – non-current liabilities – Employee Severance Indemnity Provision.
10. AMORTISATION AND DEPRECIATION AND WRITE-DOWNS
Amortisation and depreciation decreased overall by Euro 4,702 thousand.
This decrease is mostly due to the completion of the amortisation plan of many assets of the parent
company.
Amortisation of intangible assets is substantially in line with the previous year.
During the year no effects were transferred to the income statement due to depreciation resulting
from the application of the Impairment Test on the tangible and intangible fixed assets of the group
according to IAS 36.
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 6633
Euro/thousand 31/12/09 31/12/08
Wages and Salaries 44,265 41,657
Social security costs 13,796 13,147
Staff pensions costs and similar charges 8,470 11,074
TToottaall 6666,,553311 6655,,887788
Euro/thousand 31/12/09 31/12/08
Amortisation/write-down of intangible fixed assets 1,664 1,982
Depreciation of Tangible Fixed Assets 94,787 99,171
Write-downs for durable impairment losses 0 0
Recovery of provision from impairment Tangible fixed assets 0 0
TToottaall 9966,,445511 110011,,115533
11. RISK PROVISIONS, OTHER OPERATING COSTS
The “Risk Provisions” item totals Euro 9,158 thousand (Euro 8,099 thousand at 31 December 2008)
and can be attributed mainly to:
– Euro 7,426 thousand for appropriation by the parent company in relation to reclamation,
environmental restoration and securing of polluted sites. For more details see the item relative to
“Medium and long term provisions” in these Explanatory Notes;
– Euro 2,359 thousand for appropriation due to risk of depreciation of the trade receivables of the
parent company;
– Euro -1,631 thousand for the positive effect of the discounting of the Operator relationship
termination bonus, in compliance with the provisions of IAS 37. This effect has been valued by
applying the “projected unit credit method” as defined in IAS 19;
– Euro 354 thousand for api raffineria and api energia appropriation to the provision for disposal of
obsolete stock materials;
Finally, it should be underlined that the subsidiary api energia, unlike in 2008, has not allocated any
provisions for doubtful debtors in relation to the withdrawal by the Authority for Electricity of the green
certificates purchased by the company in 2007.
Other operating costs
* For better comparability with 2009, these 2008 financial statements’ items have been reclassified. Such reclassification had no
effects on the shareholders’ equity for 2008
The items “Consumables and maintenance” and “Operator relationship termination bonus” are in
line with the amounts recorded in the previous financial year.
“Various indemnities”, equal to Euro 14,258 thousand, decreased by Euro 1,157 thousand
compared to the same period of the previous year, mainly due to the effects below:
■ the charges of Euro 3,543 thousand incurred to purchase the green certificates by api energia for
the years 2002-2003, as the IGCC plant did not obtain the co generative certification;
■ additional costs of Euro 3,000 thousand compared to the previous year, incurred to sign the
agreement with the Municipality of Falconara M.ma for the settlement of all pending disputes and
for the legal charges connected with the settlement of the ICI (local property tax) dispute on the sea
facilities for past years (2003-2007);
■ the decrease in indemnities for goods spreading and loss, which went from Euro 9,081 thousand in
2008 to Euro 8,194 thousand in 2009 and in indemnities and expenses to public entities for Euro
453 thousand.
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Euro/thousand 31/12/09 31/12/08
Consumables 2,176 1,798
Operator Relationship Termination Bonus 8,054 8,320*
Various indemnities 14,258 15,415
Duties and taxes 9,651 11,995
Other general costs 39,740 50,179*
TToottaall 7733,,887799 8877,,770077
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The item “Duties and taxes” decreased by Euro 2,344 thousand due to the lower local property tax
(ICI) paid by the refinery and api energia compared to 2008, for a total of Euro 988 thousand, and to
the fact that 2008 was negatively affected by the payment of the Substitute tax by api energia for the
cancellation of the availability constraint of shareholders’ equity reserves for Euro 752 thousand.
“Other general costs” equal to Euro 39,740 thousand mainly include:
■ Euro 3,821 thousand as costs incurred by the company for entering into the Euroshell circuit;
■ Euro 1,024 thousand for entertainment expenses;
■ Euro 8,074 thousand for special “lump-sum” payments for management of service stations to
contract operators;
■ Euro 2,156 thousand for capital losses from disposal of assets. Such amount is mainly relating to
failure to renew, by the parent company, agreements for 56 service stations, and transfer of 1
owned station;
■ Euro 16,926 thousand as cost incurred during the year for the purchase of Co2 quotas for the
emissions of the plant of api energia.
Finally, in the item “Other general costs” of 2008, the cost of the promotional campaign attributed
to non booked prices, was reclassified as a decrease for the item “Revenues”, following the coming
into force of IFRIC 13, as mentioned in section “Accounting standards, amendments and interpretations
applied at 1 January”.
12. FINANCIAL INCOME AND CHARGES
The negative balance in financial management, of Euro 23,236 thousand, comprises income of Euro
14,663 thousand, offset against charges of Euro 38,785 thousand, as well as value adjustments of Euro
886 thousand.
The table below provides a breakdown of financial income and charges net of value adjustments:
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 6655
Euro/thousand 31/12/09 31/12/08
Financial income
Interest Credit Bank/Postal c/a 3,532 5,841
Income from equity investments 306 2,086
Other income 10,825 17,467*
Total financial income 14,663 25,394
Financial charges
Financing and bank account overdrafts (27,033) (61,022)
Other charges (11,752) (25,653)*
Total financial charges (38,785) (86,675)
FFiinnaanncciiaall IInnccoommee aanndd CChhaarrggeess bbaallaannccee ((2244,,112222)) ((6611,,228811))
* The item was reclassified in application of IAS 1. This reclassification did not affect the Result of the year and the Shareholders’
equity at 31.12.2008.
Bank interest receivable of Euro 3,532 thousand, can be mainly attributed to the amounts accrued
by the subsidiary api energia on the term current accounts according to the conditions set out in the
project finance agreement.
The decrease of Euro 2,309 thousand is attributable to the generalised decrease in remuneration for
the current account amounts granted by banks. In 2009, given an exceptionally low rate level,
remunerations were close to zero.
Income from equity investments, equal to Euro 306 thousand, include both income for Euro 56
thousand deriving from the partial distribution of reserves by SGR S.p.A. in liquidation, and the dividend
of Euro 250 thousand distributed by Petroven S.p.A..
“Other income”, of Euro 10,825 thousand, mainly includes:
■ Euro 2,504 thousand for positive exchange differences (Euro 5,382 at 31.12.2008);
■ Euro 6,583 thousand of income from fair value appraisal of derivatives owned by api energia (equal
to Euro 5,288 thousand) and the parent company (equal to Euro 1,295 thousand);
■ Euro 1,174 thousand regarding interest receivable granted by ANAS as a result of the agreement
reached on the dispute regarding the service station “La Pisana”, for which reference is made to the
paragraph regarding “Other current assets”.
Financial charges, equal to Euro 38,785 thousand, increased by Euro 47,890 thousand, attributable
for Euro 33,989 thousand to the item “Financing and bank account overdrafts”, and for Euro 13,901
thousand to “Other charges”.
The item “Financing and bank account overdrafts”, equal to Euro 27,033 thousand, mainly includes
the financial charges related to the company api spa for Euro 14,375 thousand, api energia for Euro
11,438 thousand and api raffineria for Euro 104 thousand, respectively. The balance includes the
financial charges deriving form the Transfer of receivables from customers for Euro 1,092 thousand,
incurred following the factoring transaction concluded with the controlling company.
For more details on the average debt and the interest rates applied for the various maturities,
reference should be made to the information contained in the Financial Management Report.
The item “other charges” mainly includes the costs for the fair value appraisal of the derivative
instruments held by api energia (equal to Euro 1,508 thousand) and the parent company (equal to Euro
2,452 thousand), the negative exchange rate differences for Euro 2,169 thousand, commission and
bank charges for Euro 1,572 thousand, the interests on the deferred payment of custom duties on oil
cargoes equal to Euro 398 thousand and the interest expense to the controlling company api holding
for an amount of Euro 177 thousand.
The item is affected by the reclassification due to the application of IAS 1, which requires the
separate indication (for the year examined and for the previous year) of the Cash Flow Hedge (CFH)
components released from “Other income” and the negative CFH components from “other charges”.
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13. TAXATION
The main components of income taxation at 31 December 2009 are given in the following table:
14. CASH FLOW HEDGE COMPONENTS
This item was created in compliance with the provisions of IAS 1, as better specified in “Accounting
standards, amendments and interpretations applied at 1 January 2009” and provides for a separate
indication of the income components such as income and charges, posted directly under the
shareholders’ equity; at 31 December 2009 the value equals Euro - 983 thousand. The value for 2008
was re-posted, equal to Euro -611 thousand.
15. PROFITS PER SHARE AND DIVIDENDS
The basic earnings per share are calculated by dividing the net profit for the period attributable to
the parent company’s ordinary shareholders by the weighted average number of ordinary shares
outstanding in the period.
The diluted earnings per share distributed do not show any difference with respect to the base
earnings per share as there are no convertible debentures or other financial instruments with dilution
effects. The income and information is given below on shares used for the purposes of calculation of
the earning profit per share:
No dividends were distributed during 2009.
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 6677
Euro/thousand 31/12/09 31/12/08
Current taxes 8,654 50,929
Deferred taxes (4,537) (42,221)
Prepaid taxes (441) (9,127)
TToottaall TTaaxxeess 33,,667766 ((441199))
in Euro 31/12/2009 31/12/2008
Net profit attributable to Parent company’s ordinary shareholders -0.0448 -0.129
16. PROPERTY, PLANT AND MACHINERY
At 31 December 2009, this item totalled Euro 933,516 thousand.
The breakdown for the item in question is provided in the following table:
The net book value relates to the net effect resulting from the continuation of the investment plan
commenced by the Group in previous financial years, aimed both at the creation of new sales points
and the restructuring and improvement of existing sales points, as well as consolidating and increasing
the reliability of production plants and product output, in order to guarantee the quality and quantity
of products demanded by the market.
In addition, activities were accelerated aimed at reducing the impact of the Refinery complex on the
external environment and increasing its safety level in line with the various new environmental and
prevention directives, through refurbishment of sea terminals, environmental plants and underground
pipework.
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20096688
Euro/thousand Land and Plant and Industrial and Assets Total Buildings machinery commercial under construction
fixtures and fittings and advances Other assets
At 1 January 2009 net of depreciation and impairment losses 145,923 587,084 186,314 45,445 964,766
Capitalisations for the period /works in progress 6,455 24,991 30,007 71,780 75,370
Decreases (247) (574) (2,413) (60,292) (5,663)
Change in the consolidation area 0 0 0 0 0
Accounting reclassifications (122) 680 159 (717) (0)
Other changes (3,123) (1,277) (44) (4,444)
Spin-off of api real estate (11,463) 0 (106) (0) (11,569)
Depreciation portions for the period (12,303) (54,014) (28,470) (94,787)
Impairment losses 0 0 0 0
Elimination of Provisions for spin-off of api real estate 3,348 73 3,421
Movements in the dep. prov. due to disposals or changes in the consolidation area 3,250 1,441 1,732 6,423
At 31 December 2009 net of depreciation and impairment losses 131,718 558,331 187,252 56,216 933,516
At 1 January 2009
Cost 199,356 931,760 407,438 45,445 1,583,999
Accumulated depreciation and impairment losses (53,433) (344,676) (221,124) 0 (619,233)
NNeett bbooookk vvaalluuee 114455,,992233 558877,,008844 118866,,331144 4455,,444455 996644,,776666
Cost at 31 December 2009 190,856 955,580 435,041 56,215 1,637,693
Accumulated depreciation and impairment losses at 31 December 2009 (59,138) (397,249) (247,789) 0 (704,176)
NNeett bbooookk vvaalluuee aatt 3311 DDeecceemmbbeerr 22000099 113311,,771188 555588,,333311 118877,,225522 5566,,221155 993333,,551166
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The item “Property, plant and machinery” covers:
“Land and Buildings” recorded at a value of Euro 190,856 thousand, Depreciation Provision of Euro
59,138 thousand, leaving a residual value of Euro 131,718 thousand, already net of write-down from
impairment in compliance with IAS 16, of Euro 89 thousand.
The item in question mainly relates to:
■ Land, Equipment Buildings and Buildings of Euro 159,829 thousand, Depreciation provision of Euro
48,083 thousand;
■ Land and buildings covered by service stations of Euro 31,027 thousand, Building Depreciation
Provision of Euro 11,055 thousand;
Increases in the period, equal to Euro 6,455 thousand, mainly refer to both the capitalisation by api
of works in progress for Euro 2,026 thousand relating to land and buildings covered by service stations,
and to the investments made by the subsidiary refinery, including the following:
■ for Euro 327 thousand, the reconstruction of the cliff and the improvement along the hydraulic
barrier;
■ the paving of some pipe ways for Euro 331 thousand;
■ for a total of Euro 678 thousand, the creation of new pipes for the water/foam system, for the
suction of steam and land transport;
■ extraordinary maintenance to improve the tanks for Euro 1,428 thousand;
■ the paving of the containment basins of the Tk14 tank for Euro 251 thousand.
The item “Other changes”, equal to Euro (3,123) thousand, represents the transfer account made
between the amortisation provision and the historical cost at the time of merging the company Calgas S.r.l.
The item in question decreased by Euro 8,115 thousand (Euro 11,463 thousand of the historical
costs net of Euro 3,348 of the amortisation fund) due to the proportional spin-off transaction made on
28 April 2009, with which the parent company transferred land and buildings covered by service
stations to the beneficiary api real estate S.r.l.
“Plant and Machinery” equal to Euro 955,580 thousand, Depreciation Provision of Euro 397,249
thousand, leaving a residual value of Euro 558,331 thousand.
The heading in question essentially includes refinery plant and machinery, the api energia IGCC
plant, plant and machinery relative to retail networks belonging to the parent company, as well as
general plants installed in national storage deposits in Rome and Barletta.
In this regard we consider it appropriate to point out that the item in question includes financial
charges capitalised by the subsidiary api Energia during the course of previous financial years relative to
interest due and instalments on the debt owing to the financing banks, sponsors and hedging banks,
up to the date of provisional acceptance of the plant (26 April 2001).
Financial charges in question capitalised during the course of previous financial years, up until
provisional acceptance of the plant, total Euro 117,883 thousand.
Purchases and capitalisations for the financial year, equal to Euro 24,991 thousand, relate mainly to:
■ maintenance and upgrading operations carried out during the “C Inspection” scheduled shutdown
of the IGCC plant of api energia, for Euro 8,965 thousand;
■ the replacement by the refinery of the desulphurisation plants and molecular sieves of the
isomerisation plant for Euro 3,250 thousand;
■ investments made by the refinery of Euro 781 thousand for revamping of the unifining aimed at
both increasing capacity and improving the quality of the LPG washing system with water;
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 6699
■ the creation of hydrocarbon detectors on the refinery plant for Euro 607;
■ the restructuring of cabin “C” of the refinery for Euro 728 thousand;
■ activities concerning la reduction of noise levels of the refinery plants by replacing the fans and
motors of the refinery “air fins” for Euro 1,097 thousand;
■ the strengthening of the LPG loading and unloading system of the refinery for Euro 1,116 thousand;
■ the strengthening of the topping plant for Euro 1,049 thousand;
■ the activities carried out to upgrade the pump and motor fleet of the refinery for Euro 2,361
thousand;
■ the strengthening of the gasoline isomerisation plant of the refinery for Euro 400 thousand.
The decrease in the asset values of Euro 574 thousand is due mainly to the scrapping by api energia
of parts which following damage or obsolescence can no longer be used in the production process.
Finally, the item “Other changes”, equal to Euro (1,277) thousand, represents an accounting
reclassification between the amortisation provision and the historical cost at the time of merging the
company Calgas S.r.l.
“Industrial Fixtures and Fittings and Other Assets” equal to Euro 435,041 thousand, Depreciation
Provision of Euro 247,789 thousand, leaving a residual value of Euro 187,252 thousand. The item
mainly relates to:
■ Service station equipment for a value of Euro 361,773 thousand, Service Station equipment
depreciation provision of Euro 218,521 thousand;
■ LPG tanks and canisters totalling Euro 18,129 thousand, LPG tank and canister depreciation
provision of Euro 8,027 thousand;
■ Other fixtures, tools and equipment, electronic machines and furniture of Euro 55,139 thousand,
with respective depreciation provision of Euro 21,241 thousand, mainly relating to refinery
equipment and the IGCC plant of api energia, as well as to electronic equipment and group
company furniture and furnishings.
The increase for the financial year, totalling Euro 30,007 thousand, can essentially be attributed:
■ for Euro 27,605 thousand to capitalisation of works in progress relating to tanks, pumps, shelters,
booths and self-service equipment installed at the network’s points of sale;
■ the acquisition by api raffineria of laboratory equipment and an automation system for LPG loading,
for Euro 404 thousand and Euro 519 thousand respectively.
Balance sheet items underwent a reduction of Euro 2,413 thousand substantially due to the removal
of points of sale from the group network.
The item “Other changes”, equal to Euro (44) thousand, represents a reclassification between the
amortisation provision and the historical cost at the time of merging the company Calgas S.r.l..
The item in question decreased by Euro 33 thousand (Euro 106 thousand of the historical costs net
of Euro 73 thousand of the amortisation fund) due to the proportional spin-off transaction made on 28
April 2009, with which the parent company transferred land and buildings covered by service stations
to the beneficiary api real estate S.r.l., in addition to Service Station equipment, as already mentioned.
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20097700
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“Fixed assets under construction and advances” at the end of the financial year totalled Euro
56,215 thousand and essentially relate to new constructions, restructuring, revamps, and extensions
of points of sale and non-oil plants, and purchase of important spare parts for the IGCC plant and
the refinery.
17. GOODWILL
A breakdown of the goodwill item is provided below:
The increase of Euro 53 thousand refers to the goodwill of a store purchased by the parent company
during the year.
We feel that it is appropriate to remind you that the Group has made accounting entries for
impairment write-downs in those cases in which the recoverable value of the assets subject to analysis
is lower than their book value, and the relative impairment loss is considered to be lasting by the
directors.
Calculation of the recoverable value, in accordance with IAS 36, has been carried out using the
higher of the assets’ value in use and their fair value, net of any charges resulting from the sale
transaction.
To calculate the value in use of the assets, the directors have considered, on the basis of the accepted
current practice, to adopt the UDCF (Unlevered Discounted Cash Flow) method, which involves the
discounting of operating cash flows, i.e. the flows available prior to the repayment of the financial debts
and remuneration of shareholders. On the basis of this criteria, the operating flows are discounted at a
rate equal to the weighted average of the cost of the debt and own capital (WACC or Weighted Average
Cost of Capital), for the purpose of obtaining the operating capital value which may be able to be
generated by the assets subject to analysis. The operating cash flows subject to discounting are those
produced by CGU Refining & Marketing and used for the preparation of the 2010-2014 Group Business
Plan. The year 2010 is based on budget data. With regard to the following years, internal forecasts for
the gross margin of the refining and the distribution business were used. Other costs/revenues were
obtained by applying 75% of the planned inflation rate (1.5%) to 2010 figures.
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 7711
Euro/thousand Opening Increases Write-downs Closing balance for Impairment balance
Api Energia S.p.A. 16,488 0 0 16,488
Calgas S.r.L. 14,717 0 0 14,717
Bielpe S.p.A. 13,812 0 0 13,812
Petronoil S.r.L. 2,059 0 0 2,059
F Gas S.r.L. 680 0 0 680
Italiana Petroli S.p.a. 50,510 0 0 50,510
Di Car S.p.a. 14,298 0 0 14,298
Step S.p.A. 7,665 0 0 7,665
Gamma Petroli S.r.l. 1,079 0 0 1,079
Petrolgas S.r.L. 1,412 0 0 1,412
Elbagas S.r.L. 854 0 0 854
Third parties 0 53 0 53
TToottaall 112233,,557733 5533 00 112233,,662266
In line with the benchmark for the sector, the discount rate used was 8.1% over a 5-year period.
With regard to the calculation of the recoverable amount, a terminal value was also included, revalued
at a 1.5% rate.
For calculation of the fair value net of the charges resulting from the sales transactions, on the other
hand, reference is made to the most current criteria used by the market, which is that of estimating the
sales price using a multiple based on EBITDA.
18. INTANGIBLE FIXED ASSETS
Viene di seguito riportato il dettaglio della voce Immobilizzazioni immateriali:
The heading Intangible fixed assets totals Euro 129,185 thousand, showing a decrease of Euro
2,819 thousand and includes:
■ “Owned networks” and “Third party networks”, respectively equal to Euro 21,589 thousand and
46,307 thousand, representing the fair value of the intangible assets recorded at the time of
allocation of the price paid for the acquisition of IP. The decrease of Euro 114 thousand and of Euro
1,307 thousand, in owned and third parties’ networks respectively, is resulting from failure to renew
the agreements in place with 56 service stations, and transfer of one owned plant;
■ “Patent rights and rights to use the patents of others”, for a value of Euro 4,378 thousand,
essentially represented by the software usage rights of the parent company and api raffineria, as
well as the General Electric Energy patent right (formerly Texaco Development Corporation) relative
to the gasification process for the production of electricity by the subsidiary api energia.
■ “Concessions, licences, trademarks and similar rights”, of Euro 54,416 thousand, essentially
comprise the following:
– Euro 313 thousand, as the value for the trademark of the subsidiary Festival spa;
– Euro 51,883 thousand, as the fair value of the IP brand recorded in 2005 at the time of allocation
of the price paid for acquisition of the company;
– Concessions and licenses inherent in parent company sales points and bars for a value of Euro 2,220
thousand.
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20097722
Euro/thousand Owned Third party Patent rights Licences concessions Assets under Other Totalnetworks networks and rights to use and brands construction intangible
the patent of others and similar rights and advances fixed assets
At 1 January 2009 net of depreciation provisions and impairment losses 21,702 47,614 5,015 54,901 3 2,769 132,004
Increases 263 2 265
Decreases (114) (1,307) (1,421)
Changes to consolidation area
Accounting reclassifications
Other changes
Extraordinary transactions
Amortisation (900) (487) (276) (1,663)
AAtt 3311 DDeecceemmbbeerr,, nneett ooff ddeepprreecciiaattiioonn aanndd iimmppaaiirrmmeenntt lloosssseess 2211,,558899 4466,,330077 44,,337788 5544,,441166 33 22,,449922 112299,,118855
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■ “Other intangible fixed assets”, of Euro 2,492 thousand, mainly consisting of the api energia
contribution for connecting to the ENEL national network, amortised at an annual rate of 5%
relating to the duration of the agreement stipulated with ENEL (now GSE).
19. EQUITY INVESTMENTS
The item equity investments of Euro 13,570 thousand, a breakdown of which is provided in the
table below, comprises an amount of Euro 12,925 thousand, of equity investments in associated
companies, and Euro 645 thousand of equity investments in other companies.
Other increases and decreases in value of equity investments in associated companies can be
attributed to the results in the companies valued using the net equity method.
As mentioned in the Management Report, with the Extraordinary Meeting of 24 October 2008, api
raffineria decided to voluntarily liquidate the associated company Apisoi Service S.p.A. starting from 1
January 2009. Consequently, business activities were initially reduced and subsequently discontinued to
start the liquidation procedure, which as of today is substantially completed, except for a pending
dispute with the Italian Inland Revenue. The decreased value of the equity investment results from the
result of the company valued under the equity method.
As far as equity investments in other companies are concerned, the following was observed:
■ the decision taken on 30 July by the refinery to exercise the sale option for the entire interest held
in Aerdorica SpA, equal to 503,598 shares; the sale of the shares to Fiduciaria Marche srl was
perfected on 9 February 2010 for Euro 504 thousand;
■ the participation, for Euro 60,000, by the parent company to a capital increase of Civita Servizi S.r.l.;
■ the decrease of Euro 14 thousand of the equity investment held in SGR S.p.A. in liquidation, as
partial distribution of company reserves.
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 7733
Euro/thousand Book value Increases Decreases Book value % held % held31/12/08 31/12/09 31/12/09 31/12/08
Associated companies
Apisem spa 4,205 90 4,295 50.00% 50.00%
Abruzzo costiero srl 1,379 111 1,490 30.00% 30.00%
Apisoi spa 1,141 (165) 976 50.00% 50.00%
Saccne rete S.r.l. 6,507 (342) 6,165 50.00% 50.00%
Apibenzin 13 13
Associates write-down provision (13) (13)
TToottaall 1133,,223322 220011 ((550077)) 1122,,992255
Other companies
Aerdorica spa 503 (503) 0 7.78% 0.00%
Petroven srl 16 16 10.00% 10.00%
Immobiloil 50 50
Consorzio grandi reti 9 9 20.00% 20.00%
Other equity investments 524 60 (14) 570
Other group companies write-down provision (310) 310 0
TToottaall 779922 6600 ((220077)) 664455
TToottaall 1144,,002244 226611 ((771144)) 1133,,557700
20. OTHER NON-CURRENT ASSETS
The other non-current assets comprise:
At 31 December 2009, this item totalled Euro 25,709 thousand, in line with the previous year.
The balance for the item includes:
■ “Receivables from associated companies” of Euro 322 thousand covering loans and the relative
interest due, owed to the parent company by the associated company Abruzzo Costiero s.r.l.;
■ “Receivables from taxation authorities”, of Euro 3,021 thousand, relative mainly to tax
withholdings, advances, and interest on tax credits dating back to previous financial years, for which
the request has been made to pay this off by means of granting treasury bonds in accordance with
Legislative Decree no. 307 of 23 May 1994 converted into Law 457/94, as well as the advance tax
of Employee Severance Indemnity paid in accordance with Law no. 140 of 1997 and a credit for VAT
refund;
■ “other debtors”, equal to Euro 22,362 thousand, involving both prepayments of Euro 18,629
thousand with a duration of more than one year deriving from the payment by api of a contract
renewal lump sum for exclusive supplies (operator agreements), and for Euro 755 thousand,
prepayments mainly relating to leasing instalment costs paid in advance with respect to the period
which they cover, and fees paid to service providers;
■ “Investments” of Euro 4 thousand consist of treasury bonds owned by the parent company and
corresponding to the deposits received from consumers by way of guarantee on the LPG cylinders
in compliance with the provisions of Law 539/85.
21. DERIVATIVE INSTRUMENT ASSETS
The heading “Derivative instrument assets” of Euro 595 thousand (Euro 365 thousand at
31.12.2008) corresponds to the fair value appraisal of derivative contracts in place at the balance sheet
date, relating to hedging transactions for the hedging of the risk linked to interest rate fluctuation (Euro
205 thousand) and exchange rate (Euro 390 thousand).
The fair value has been determined using generally accepted valuation models and techniques,
based on the discounting of expected cash flows. Certain derivatives have been valued using the pricing
models for options. For this purpose, in addition to the contractual parameters for each derivative
market, parameters for the underlying risk factors have been used (Euribor and volatility yield curves)
which can be obtained from external info-providers (e.g. Bloomberg).
The Company verified on a quarterly basis the effectiveness of the hedging relationships in place.
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20097744
Euro/thousand 31/12/09 31/12/08
M/L loans to associated companies 322 489
Tax receivables 3,021 2,687
Receivables from other parties 22,362 22,239
Investments 4 4
TToottaall 2255,,770099 2255,,441199
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At 31 December 2009, the application of hedge accounting produced the following effects on the
financial statements:
1) A worsening of the Fair Value of interest rate derivatives, mainly due to the reduction in rates during
the financial year;
2) The amount of the cash flow hedge reserve went from Euro - 810 thousand to Euro 9,802
thousand. The change is marginally due to the progressive depreciation of the dollar against the
euro occurred between the stipulation of the forward agreements and the end of the year, and
mostly to the fair value reduction related to interest rate derivatives.
Consequently, the income statement includes financial income for approximately Euro 1.2 million,
due to interest rate transactions of the parent company and the subsidiary api energia.
22. PREPAID TAXATION
Prepaid taxation as of 31 December 2009 totals Euro 100,229 thousand, compared with an amount
at 31 December 2008 of Euro 100,825 thousand.
The balance in question mainly includes credits generated from temporary differences on:
■ the value differences between tangible and intangible fixed assets, whose statutory amortisation is
greater than the fiscally deductible amounts, for a total of Euro 4,343 thousand;
■ exchange rate losses not realised by the subsidiary api energia for Euro 12,606 thousand;
■ non-deductible interests, pursuant to art. 96 of the Consolidation Act on Income Taxes (TUIR), for
Euro 11,144 thousand;
■ calculation of the deferred liability on CIP 6 rights for the subsidiary api energia of Euro 43,599
thousand;
■ transactions on derivative instruments for Euro 955 thousand;
■ the IRES tax loss of the refinery for Euro 7,651 thousand and api anonima for Euro 4,403 thousand;
■ the additional IRES (6.5%) on the fiscal loss of 2009 for Euro 2,850 thousand.
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 7755
23. INVENTORIES
This item amounts to Euro 322,642 thousand at 31 December 2009 and shows an increase of Euro
12,059 thousand with respect to the corresponding balance at 31 December 2008.
The breakdown of the item is as follows:
The increase of Euro 12,059 thousand is due to the dual effect of:
■ an increase in the weighted cost compared to the market value of January 2009, which is the value
based on which the inventories were written down for Euro 99,546 by the parent company;
■ lower inventories compared to the previous year.
It is important to point out that the amounts given in the table are net of the relative write-down
provisions.
“Stocks and spare parts” of Euro 35,230 thousand are mainly relating to spare parts and
maintenance materials of the refinery and the IGCC plant, and to consumables and maintenance
materials for the distribution network of the parent company.
24. TRADE AND OTHER DEBTORS
Trade receivables and other debtors are made up as follows:
Trade receivables relative to wholesale activity are non-interest bearing and generally have an
average due date of 43 days.
Trade receivables relative to retail activities are on average collected at 3 days.
The provisions for doubtful debtors, equal to Euro 7,193 thousand, went up by Euro 1,660
thousand to reflect the negative effects of the credits and economic crisis under way in Italy.
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20097766
Euro/thousand 31/12/09 31/12/08
Raw Materials 106,669 85,843
Products being processed 23,527 24,837
Finished products 157,216 166,515
Advances 0 0
Stocks and spare parts 35,230 33,388
TToottaall 332222,,664422 331100,,558833
Euro/thousand 31/12/09 31/12/08
Trade receivables 401,608 487,042
Provision for doubtful debtors (7,193) (5,533)
Receivables from other oil companies 64,270 59,745
Bills of exchange receivable 7,060 3,716
Receivables from associated companies due after 12 months 3,023 929
Receivables from controlling companies due within 12 months 38,785 34,525
Receivables from other group companies 122 226
TToottaall 550077,,667744 558800,,665500
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The item “Receivables from other oil companies” of Euro 64,270 thousand, shows an increase of
Euro 4,525 thousand. These receivables represent, in relation to the counter-entry item in the liabilities
section, the amount of receivables confirmed at the end of the period with respect to the other oil
companies in relation to sale and purchase contracts for goods entered into with the same.
“Bills of exchange receivable”, of Euro 7,060 thousand, has increased by Euro 3,334 thousand. The
variation is relating to the value of bills on hand and also of bills already presented subject to collection,
at the closing date of accounts.
“Receivables from associated companies” relate entirely to the credit granted by the parent
company towards the associated company Saccne rete S.r.l..
“Receivables from controlling companies”, equal to Euro 38,785 thousand, mainly comprise the
parent company credit toward api holding spa referred to the IRES credit of previous years, transferred
to the controlling company under art. 118, Para 3 of T.U.I.R. (Consolidated Tax Act) as well as the credit
transferred to the parent company by api holding for the VAT of December.
“Receivables from other group companies” mainly include credit granted by the group to the
companies apinòva energia, CER and the property company api real estate.
25. FINANCIAL CURRENT ASSETS
This item, equal to Euro 18,400 thousand, refers to the financial credit granted by api anonima to
the controlling company api holding s.p.a. at the 3 month Euribor rate + 140 basis points.
26. OTHER CURRENT ASSETS
“Other current assets” amount to Euro 21,815 thousand, decreasing by Euro 387 thousand with
respect to the previous year.
Among the most significant debtor relationships we would point out:
■ Regione Friuli-Venezia-Giulia, of Euro 2,570 thousand - in accordance with Art. 3 Paragraphs 16 and
17 of Law no. 549 of 28 December 1995 – for the recovery of discounts applied by api spa by way
of reduction of the pump price of gasoline to regional territory residents only;
■ Anas value recovery, of Euro 2,541 thousand in relation to amounts due from ANAS spa, inclusive
of interest in favour of api spa, for works on the "la Pisana" motorway service station carried out
on its behalf. Within the context of relations with the abovementioned company, additional relations
are also presented in the liabilities item “other creditors” within the main item “other liabilities”
relating to license payment instalments due on the same service station from 1990;
■ other relations with various parties for a total value of Euro 4,269 thousand, relating essentially to
amounts owed for advances on leasing instalments and other minor advances paid by the parent
company;
■ Mediofactoring, equal to Euro 6,438 thousand, relating to the credit – at 31 December 2009 – to
“Carta Maxima” fuel card customers, covered by the factoring company Mediofactoring SpA, to
which our credits were transferred with a guarantee without recourse;
■ Insurance companies for damage compensation of Euro 70 thousand for damage claimed from
insurance companies; (Euro 125 thousand at 31 December 2008);
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 7777
27. TAX RECEIVABLES
The item “tax receivables” totals Euro 18,832 thousand, showing a decrease of Euro 7,517
thousand, and includes the IRES and IRAP credit and VAT credits for group companies.
28. LIQUIDITY TIED UP IN PROJECT FINANCE
The value as of 31 December 2009 totalled Euro 98,538 thousand recording an increase of Euro
52,761 thousand. The heading is entirely made up of api energia’s restricted cash at bank and in hand,
associated with current accounts opened with the Banca Nazionale del Lavoro in the name of the
Facility Agent, The Royal Bank of Scotland, respectively called “Revenues” for Euro 86,556 thousand,
(Euro 20,454 thousand at 31 December 2008), “Debt Service Reserve Account” of Euro 11,562
thousand (Euro 24,784 thousand at 31 December 2008), “Compensation” of Euro 305 thousand
(unchanged compared to 31 December 2008) and “Extra-maintenance” of Euro 115 thousand (Euro
234 thousand at 31 December 2008).
29. CASH AT BANK AND IN HAND AND CASH EQUIVALENTS
Cash at bank and in hand and cash equivalents comprise:
Short term bank deposits earn variable rate interest based on daily rates.
For the purposes of the consolidated cash flow statement, the item cash at bank and in hand and
cash equivalents at 31 December 2009 is made up as indicated above.
The balance is relating to higher payments due in the first few days of January.
Bank deposits decreased by Euro 10 thousand following the above mentioned proportional spin-off
transaction made by the parent company in favour of api real estate.
30. GROUP SHAREHOLDERS’ EQUITY
Share Capital
The share capital totalled Euro 115,425 thousand.
Legal Reserve
The “Legal reserve” amounts to Euro 19,295 thousand and is in line with the previous year.
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20097788
Euro/thousand 31/12/09 31/12/08
Bank and post office deposit accounts 128,070 111,304
Ready cash and cheques 265 310
TToottaall 112288,,333355 111111,,661144
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Other Reserves
The heading “Other Reserves”, net of the Cash flow hedge reserve of Euro – 9,802 thousand, totals
Euro 283,381 thousand, with a decrease with respect to the previous year of Euro 17,813 thousand.
Cash flow hedge reserve
This heading totals Euro – 9,802 thousand and relates to the effective portion of the fair value of
contracts in derivative instruments in existence at 31 December 2009 to hedge the risk of exchange
rate and interest rate fluctuation.
31. MEDIUM TO LONG TERM DEBT
Medium and long term debt comprises:
The heading “Bank borrowings” shows a decrease of Euro 82,004 thousand compared to the
previous year. This reduction is due to the repayment of the principal amounts of amortising loans of
the parent company api spa for Euro 14,643 thousand, the reimbursement of loans maturing in June
and December 2010 respectively, by the parent company for Euro 41,000 thousand, and the residue
from the repayment of the “Project financing” debt instalments of the subsidiary api energia.
In the past year, thanks to a debt restructuring process carried out during 2007, the company did
not need to resort to additional medium to long term loans that, when considering the applied spreads,
would have jeopardised its ability to maintain the current cost of long term debt.
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 7799
Share Legal Other Legal Profits Profit Shareholders’ Capital Profit Shareholders’ Shareholders’Capital Reserve Reserves C.F. Hedge carried (loss) for equity Reserves (loss) for equity equity
Reserve forward financial GROUP Minority financial Minority TOTALYear Interests Year Interests
Minority I.
BBaallaannccee aatt 11 JJaannuuaarryy 22000099 111155,,442255 1199,,229955 115588,,333333 ((880099)) 114422,,886611 ((1188,,778877)) 441166,,331188 11,,112288 338877 11,,551155 441177,,883333
Other profits (losses) recorded under shareholders’ equity
Distribution of dividends (313) (313) (313)
Effect of application of the equity method 3,332 (8,740) 5,408 0
Reclassifications from other reserves
Foreign Shareholdings Translation Reserve (628) (628) (3) (3) (631)
Effect of hedge accounting operations (252) (252) 13 13 (239)
Other changes in shareholders’ equity
Spin-off in favour of Api real estate (7,138) (7,138) (7,138)
Change in the consolidation area
Allocation of profit for year 2008 (18,787) 18,787 387 (387)
Profit for the financial year (6,751) (6,751) 365 365 (6,385)
BBaallaannccee aatt 3311 DDeecceemmbbeerr 22000099 111155,,442255 1199,,229955 115544,,552277 ((99,,880022)) 112288,,885544 ((66,,775511)) 440011,,554499 11,,221122 336655 11,,557777 440033,,112266
Euro/thousand 31/12/09 31/12/08
Bank borrowings beyond twelve months 604,569 686,573
TToottaall 660044,,556699 668866,,557733
The table below gives the composition of short and medium term financial debts in relation to the
rates applied:
* the actual rate includes costs relative to the spread applied and to any hedge transactions (IRS, collar etc.)
For more details on short term debt from banks see note 37.
32. EMPLOYEE BENEFITS (EMPLOYEE SEVERANCE INDEMNITY)
Valuation of Employee Severance indemnity at 31 December 2009 has been carried out in
accordance with the calculation methodology indicated in IAS 19.
The tables below summarise the components of the net costs recorded in the consolidated income
statement:
It should be underlined that, following application of the reform on the election on appropriation
of employee severance indemnity introduced by Law 296/2006 (Finance Act 2007), as from 1 January
2007 employees can elect to appropriate their accruing severance indemnity to industry complementary
pension schemes (Fondoenergia) or to INPS (National Social Security Institute). For this reason,
recalculation of the present value of provision for severance indemnity resulted in a positive effect for
the company on actuarial profits.
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20098800
Euro/thousand 31/12/2009 31/12/2008
Euro Financing
- fixed rate 20,000 20,000
Subtotal Euro fixed rate financing 20,000 20,000
- floating rate
Financing at actual rate* < 1% 22,000
Financing at 1% < actual rate* < 2% 653,400
Financing at 2% < actual rate* < 3% 263,699 20,000
Financing at 3% < actual rate* < 4% 32,428 510,768
Financing at 4% < actual rate* < 5% 45,357 139,717
Financing at 5% < actual rate* < 6% 4,286 279,231
Subtotal Euro variable rate financing 1,021,170 949,716
TToottaall mmeeddiiuumm // lloonngg tteerrmm ddeebbttss 11,,004411,,117700 996699,,771166
OOff wwhhiicchh ccuurrrreenntt ppoorrttiioonn 443366,,660011 228833,,114433
OOff wwhhiicchh lloonngg tteerrmm ppoorrttiioonn 660044,,556699 668866,,557733
TToottaall 11,,004411,,117700 996699,,771166
Post-employment benefits 2009 2008
Opening liability 15,291 17,801
Service costs 41 44
Interest costs 945 1,110
Actual Gain/Loss (102) 206
Transfers
Services provided (1,044) (3,870)
NNeett ccoosstt ooff tthhee bbeenneeffiitt 1155,,113311 1155,,229911
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The following table includes the employee reconciliation as of 31 December 2009, with respect to
those of 31 December 2008, not considering resignations as of 31 December:
The assumptions adopted for the purposes of valuation of the severance indemnity can be
subdivided into two categories:
■ financial assumptions;
■ demographic assumptions.
More specifically the assumptions adopted are the following:
Financial assumptions
Demographic assumptions
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 8811
EEmmppllooyyeeeess aatt 3311//1122//22000088 990077
New employees 33
Employees acquired 52
Resignations (47)
EEmmppllooyyeeeess aatt 3311//1122//22000099 994455
Executives Other employees
■■ Increase in the cost of living 2.0% per year 2.0% per year
■■ Discount rate 4.0% per year 4.0% per year
■■ Salary increase:
• less than or equal to 40 years of age 2.75% per year 2.5% per year
• over 40 years of age but less than
or equal to 55 years of age 2.5% per year 2.25% per year
• over 55 years of age 2.25% per year 2.0% per year
Executives Other employees
■■ Probability of:
• Death Mortality table RG 48 Mortality table RG 48
published by State published by State
General Accountancy General Accountancy
• Invalidity INPS table INPS table
according to age according to age
and sex and sex
• resignations:
– up to 50 years of age 4.0% 2.0%
in each year in each year
subsequently Nil Nil
retirements:
– on reaching 60 years of age 35% 60%
(100% for women) (100% for women)
– subsequently but up to less than 65 years of age 20% 10%
in each year in each year
– on turning 65 years of age 100% 100%
• receive an advance from the appropriated 3.0% 3.0%
severance indemnity reserve set aside at 70% in each year in each year
33. DEFERRED TAXATION PROVISION
Deferred taxation provision at 31 December 2009 stands at Euro 137,159 thousand, compared with
a value at 31 December 2008 of Euro 148,396 thousand. The amount relates essentially to:
■ Euro 64,695 thousand due to the differences between accounting and tax depreciation and
amortisation of tangible and intangible assets;
■ Euro 46,259 thousand for allocation of the higher value generated by acquisition of IP, occurred in
2005, to “Owned network”, “Third parties’ network”, “Trademarks”;
■ Euro 563 thousand due to the delayed payment of tax on the capital gain generated from the sale
of the LPG cylinder company branch, which took place during 2007;
■ Euro 1,847 thousand due to the non-accounting write-down of parent company trade receivables;
■ The recognition of past IRAP excess of api raffineria under tax payables for Euro 3,275 thousand.
34. PROVISIONS FOR RISKS AND CHARGES
The breakdown and movement in medium and long term provisions from 1 January 2009 to 31
December 2009 is as follows:
Retirement payments
This item totals Euro 22,852 thousand, and relates to:
– Euro 24,370 thousand for relations with service station operators by way of an operating
termination bonus, following the framework agreement of 18 November 1992; appropriation
for the period equals Euro 9,455 thousand and utilisation equals Euro 8,708 thousand;
– Euro 1,089 thousand for goodwill compensation with respect to agents for the termination of
relations; appropriation for the period equals Euro 163 thousand and utilisation equals Euro 182
thousand;
– finally, the value of Euro 1,610 thousand relates to the impact of discounting of the Operating
termination Bonus during the year, which has shown a positive effect of Euro 1,631 thousand,
and a negative effect due to goodwill compensation with respect to agents of Euro 21 thousand,
in compliance with the provisions of IAS 37. These effects were appraised by applying the
“projected unit credit method” as defined under IAS 19.
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20098822
Euro/thousand Retirement Taxation Land Provision for Totalpayments and provision Reclamation risks charges and
similar obligations Provision other expenses
Opening balance 23,846 1,589 21,304 3,380 50,119
Incurred in the period 9,506 7,426 7,600 24,503
Utilisations (8,890) (1,005) (10,449) (752) (34,638)
Discounting (1,610) (1,610)
Reclassifications
Extraordinary transactions (390)
Other changes
CClloossiinngg bbaallaannccee ((2222,,885522)) ((558844)) ((1177,,889911)) ((1100,,222288)) ((5511,,555555))
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Provision for taxation
This item amounts to Euro 584 thousand and represents the potential risk relating to any minor
amounts which might be confirmed within the context of pending lawsuits which, to date, have not
yet been favourably concluded.
We would also mention that in 1998, api anonima was subjected to an inspection by the Italian Tax
Police, referring to the period between 1992 to 1997, the outcome of which resulted in an assessment
report, which gave rise to the following assessment and amendment notices:
– in December 1998 an assessment notice was served for the 1992 financial year (Corporate
Income Tax – IRPEG, Local Income Tax - ILOR), almost totally reversed in 2002 by the Rome
Regional Tax Commission; the Finance administration presented an appeal for Annulment of this
judgement. The hearing was held in January 2008. The Supreme Court – by means of judgment
no. 9497/08 filed on 11 April 2008 - accepted both the main appeal of the Italian Inland Revenue
and the interlocutory appeal of the Company and referred the case back to another section of
the Lazio Regional Tax Commission. On 21 December 2009, the Lazio Regional Tax Commission
filed the judgement no. 713/01/09, with which it accepted the appeal of the Company and
rejected the appeal of the Office. The time limits for the Italian Inland Revenue appealing to the
Supreme Court are still pending;
– during 1999, assessment notices were served for the 1993 year (Corporate Income Tax – IRPEG,
Local Income Tax - ILOR and VAT), which were appealed against in accordance with the Law. The
VAT appeal was judged in favour of the company, with a final judgement passed, while the
IRPEG-ILOR appeal was fully upheld by the Rome Provincial Tax Commission (PTC). The Lazio
Regional Tax Commission, having passed a judgement during 2004, almost entirely accepted the
Company’s reasoning, making use of an Official Technical Consultant who verified the
unfounded nature of the claims; the Finance Administration presented an appeal for Annulment
of this judgement. The hearing was held in January 2008. The Supreme Court – by means of
judgment no. 8773/08 filed on 4 April 2008 - accepted both the primary appeal of the Italian
Inland Revenue and the interlocutory appeal of the Company and referred the case back to
another section of the Lazio Regional Tax Commission. On 14 January 2010, the Lazio Regional
Tax Commission filed the judgement no. 7/01/10, with which it accepted the appeal of the
Company and rejected the appeal of the Office. The time limits for the Italian Inland Revenue
appealing to the Supreme Court are still pending;
– during 2001 assessment notices were served for 1994 (Corporate Income Tax – IRPEG, Local
Income Tax - ILOR, VAT), 1995 (Corporate Income Tax – IRPEG, Local Income Tax - ILOR, VAT),
and 1996 (VAT) which, also in this case, were appealed against in accordance with the Law. The
judgements passed to date, issued by the Lazio Tax Commission accept the Company’s reasoning
without exceptions, while the judgments related to 1994 and 1995 VAT notices have already had
a final judgement passed. The Finance Administration presented an appeal for annulment of the
judgements related to the disputes for 1994 (Corporate Income Tax – IRPEG, Local Income Tax –
ILOR), 1996 (VAT) and 1995 (Corporate Income Tax – IRPEG, Local Income Tax – ILOR); the
conciliation hearing has not year been set;
– during 2002, assessment notices were served for 1996 (Corporate Income Tax – IRPEG, Local
Income Tax – ILOR) and 1997 (VAT); also in this case appeals were presented in accordance with
the Law. Rome PTC accepted the appeal and annulled the notification concerning the Corporate
Income Tax - IRPEG and Local Income Tax - ILOR for 1996.
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 8833
The Office has not lodged an appeal and the judgement has already had a final judgement
passed. With regard to the VAT notice for 1997, the Company appeal was fully upheld by the
judgement issued by the Rome Provincial Tax Commission. The Italian Inland Revenue presented
an appeal for annulment of this judgement, to which the Company objected according to the
terms provided by law. The negotiating hearing took place on 19 January 2010 and the ruling
has not yet been filed;
– during 2003, an assessment notice was served for the 1997 year (Corporate Income Tax – IRPEG,
Local Income Tax - ILOR); the appeal submitted by the company was fully upheld by the Rome
PTC. The Italian Inland Revenue appealed against this decision, against which the Company
appeared in accordance with the Law. The Lazio Regional Tax Commission rejected the appeal
submitted by the Italian Inland Revenue, thus confirming the provisions contained in the
judgement issued by the Rome Provincial Tax Commission. The Italian Inland Revenue appealed
against this decision, against which the Company appeared in accordance with the Law; the date
for the conciliation hearing has not yet been set.
On 9 September 2009, a general tax inspection was stated towards the Company. The inspections,
carried out by operators from the Control, Disputes and Collection Department – Ufficio Grandi
Contribuenti dell’Agenzia delle Entrate – Direzione Regionale del Lazio, examined the results of the year
ended 31 December 2007 for IRES, IRAP and VAT purposes.
At the end of the above mentioned operations, on 22 December 2009 the Tax Authority notified an
Official Tax Audit Report containing findings relating to IRES and IRAP, in relation to which the Company
promptly submitted the observations and requests pursuant to art. 12, last para, of law no. 212 of 27
July 2000. In light of the surveys made, the Company has decided not to make any provisions for
potential liabilities.
Decontamination provision for land and service station disposal
The amount of this provision at 31 December 2009 was equal to Euro 17,891 thousand. During the
year, an amount equal to Euro 7,426 thousand was set aside, while Euro 10,449 thousand were used.
This provision refers to the appropriation of costs made by the parent company for the
environmental damage concerning the refinery plant and the provincial network and deposits on the
network plants.
The amount - that was initially set aside in 1999 – corresponds to the current value of the estimated
costs that will be incurred by 2009 to meet the said obligation.
During the year the parent company reviewed the estimates and the assessments made to complete
the decontamination of open sites; the need has consequently emerged to adjust the provision for
2009 for a value equal to Euro 7,426 thousand.
During the year, the amount appropriated by the subsidiary api raffineria, which in the previous year
was equal to Euro 5,939 thousand, was entirely released since, in light of the interventions made in the
year, the activities planned to reclaim and secure the site according to the multi-year plan are considered
as completed.
Finally, in the year the provision was transferred to api Real Estate for Euro 390 thousand, following
the spin-off of land and buildings in favour of the above mentioned company, as specified in the these
notes.
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Provision for risks, charges and other costs
This item has a value as of 31 December of Euro 10,228 thousand.
The provision has increased during the period by Euro 7,600 thousand, for which we would
highlight the following main movements:
– the allocation of Euro 6,777 thousand as an estimate of the charges necessary to cover the
compulsory residual quota of release to the market of gasoline and diesel produced for 2009 by
using a minimum percentage of biofuel equal to 3%;
– Euro 376 thousand as provision for the CO2, quota deficit in the years 2008 – 2009, totalling
122,359 tonnes, valued at 31 December 2009 on the basis of the market price expressed by
“SENDECO2 – Italian CO2 Stock Exchange; - the provision of Euro 34 thousand by refinery for
the alleged loss of platinum expected to be recovered by catalyser I–8 while replacing the
isomerisation plant;
– the provision of Euro 200 thousand by the refinery as an estimate of the charges considered to
be associated to the dispute with the company Costantino Rozzi Spa.
A total of Euro 362 thousand of the provision has been utilised during the period, of which:
– Euro 177 thousand relating to works carried out on the bitumens storage area following the
casualty occurred on 8 September 2004;
– Euro 185 thousand in relation to the revaluation of the provision for CO2 quota deficit valued at
the market price of 31 December 2009.
35. TRADE AND OTHER PAYABLES
Trade and other payables comprise:
The trade payables showed a decrease compared to the previous year of Euro 23,495 thousand, and
are the results of the ordinary management of working capital.
“Payables due to other oil companies”, totalling Euro 125,916 thousand include, in relation to the
respective counter-item under assets, the amount of the actual amounts payable at year end to other
oil companies under goods purchase and sale agreements entered into with same.
Payables due to associated companies totalled Euro 503 thousand and mainly comprise payables of
the parent company due to the associated companies Abruzzo Costiero for Euro 194 thousand, Apisem
for Euro 192 thousand and Saccne Rete for Euro 118 thousand.
Payables to controlling companies, equal to Euro 10,435 thousand, refer to the transfer of the VAT
payables of api raffineria and the amounts to be paid by api anonima, refinery and energy to the
controlling company Api Holding S.p.A., for services provided to it, as well as the transfer of the taxable
income for IRES purposes of api energia to api holding, in application of the regulation on tax
consolidation regime.
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 8855
Euro/thousand 31/12/09 31/12/08
Trade payables 255,990 274,773
Payables to other oil companies 125,916 105,201
Payables to associated companies 503 8,998
Payables to controlling companies 10,435 27,368
TToottaall 339922,,884455 441166,,334400
36. DERIVATIVE INSTRUMENTS LIABILITIES
The heading “Derivative instrument liabilities” of Euro 22,646 thousand (Euro 23,921 thousand at
31.12.2008) corresponds to the fair value appraisal of derivative contracts in place at the balance sheet
date, relating to hedging transactions of the parent company and api energia for the hedging of the
risk linked to interest rate and exchange rate fluctuations.
In the parent company, the negative hedge balance (referable to exchange rate derivatives for Euro
125 thousand and to interest rate derivatives for Euro 3,541 thousand) is attributable marginally to a
progressive depreciation of the dollar against the euro occurred between the stipulation of the forward
agreements and the end of the year, and mostly to the fair value reduction related to interest rate
derivatives, taking place during the year.
As regards the subsidiary api energia, there are 3 positions relating to derivative hedging
instruments, corresponding to interest rate collars for which api energia collects from the counterparty
any difference between the 6-month Euribor and 6% on a half-yearly basis, and pays to the
counterparty any difference included between 1.97% and the 6-month Euribor, again on a half-yearly
basis. These instruments were traded in order to neutralise the potential change in future project
financing-related financial charges linked to increases in the Euribor rate over 6% and below 1.97%.
Hedging was defined for a value equal to about 75% of the global risk exposure and for a duration
equal to the residual life of the loan. Only the intrinsic value component of the interest rate collar
instruments was designated as hedging (and the time value component is therefore excluded). In
previous years, no appropriations to the shareholders’ equity were made with regard to the hedging
relationship in place. The changes in the fair value recorded for these derivative contracts were only
attributable to the time value component and were recognised with an offsetting item recorded in the
Income statement.
37. SHORT TERM DEBT, PAYABLES DUE TO CONTROLLING COMPANIES
Short term debt comprises:
The increase in short-term debt, totalling Euro 153,458 thousand, is partially attributable to an
increased need by company operations, greater reimbursements due in the coming year for api spa,
equal to 55.6 million Euro compared to 18.2 in 2008, an increase in the project finance instalment
concerning the subsidiary api energia, equal to 26.3 million Euro from 19.7 in 2008, and the funding
activity carried out towards the controlling company. The parent company’s ability to cover financial
resources at competitive prices allowed the debt as at 31.12.2008 to be zeroed and the position within
the group to be turned from debtor to creditor, so much so that at the end of the year api spa claimed
a credit of 18,400 thousand towards the controlling company api Holding spa, details of which are in
paragraph “Other non-current assets” of these notes.
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20098866
Euro/thousand 31/12/09 31/12/08
Bank borrowings 436,601 253,063
Payables due to Other Financiers
Payables due to Other Group Companies 0 1,600
Payables due to Controlling Companies 0 28,480
TToottaall 443366,,660011 228833,,114433
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38. OTHER LIABILITIES
Other Liabilities of Euro 255,208, recorded an increase of Euro 46,580 thousand and are made up
as follows:
* The item was reclassified by “Provision for risks, charges and other costs” in the application of IFRIC 13. This change did not
affect the Result for the year or the consolidated net equity.
The heading “Payables due to welfare institutions” of Euro 3,872 thousand, shows a decrease of
Euro 274 thousand and relates mainly to contributions due to the INPS, Inpdai and other Security
Institutions and are proportionate to salary payments for the month of December.
The item “Other creditors” mainly includes:
■ Euro 208,351 thousand as deferred income of the incentive component of the CIP6 tariff related to
the sales contract of Api Energia with the Electric Service Operator (GSE), which applies for 20 years
and provides for recognition of an incentive for the first eight years;
■ Euro 2,458 thousand, for amounts due to employees at 31.12.2009 for deferred indemnities and
bonuses;
■ Euro 9,591 thousand for amounts due as of 31.12.2009 in favour of third parties relative to service
station land lease rentals, public ground occupation tax and motorway license payment instalments;
■ Euro 568 thousand relating to the debt to operators for application of the lower rate on LPG.
■ Euro 17,550 thousand as an estimate on the sales forecasts based on which customers will order
advertising gifts concerning the campaign “Passione e regali”, which will be purchased and
delivered in 2010.
39. TAX PAYABLES
The balance of Euro 123,837 thousand at 31 December 2009 mainly comprises:
■ Euro 9,521 thousand for the “Robin Tax” appropriation;
■ Euro 103,988 thousand to customs relative to the excise applied to the origin of products carried
out in the month of December net of the advance paid in December 2009 for current payments
becoming due in the first few months of 2010.
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 8877
Euro/thousand 31/12/09 31/12/08
Payables due to taxation authorities 123,837 135,040
TToottaall 112233,,883377 113355,,004400
Euro/thousand 31/12/09 31/12/08
Payables due to Welfare Institutions 3,872 4,146
Other creditors 251,336 262,322*
TToottaall 225555,,220088 226666,,446688
40. GUARANTEES AND COMMITMENTS
The total balance of the heading at 31 December 2009 totalled Euro 100,741 thousand (Euro 99,160
thousand at 31 December 2008) and mainly comprises the following guarantees and commitments:
■ guarantees provided by the company in favour of Public Entities in relation to the obligations
connected with the issue of licenses and/or concessions essentially totalling Euro 100,427 thousand.
■ api Energia insurance bonds, which have replaced bank bonds for an equal amount expired on 31
December 2001, subject to specific authorisation by the Facility Agent, issued as a guarantee for the
permit to use the stretch of water of 66,663 m2 at the Port of Ancona for a total amount of Euro
320 thousand;
41. LEGAL PROCEEDINGS AND ARBITRATION
During the period there were legal, administrative and arbitration proceedings pending of various
types involving the Issuer or api Group companies.
Among the most significant disputes the following are highlighted:
(i) the Oil Permit and Agreement Protocols have been contested before the Administrative Law Courts
of the Marche Regions by the Municipality of Falconara Marittima under the petition served on 1
August 2003. The petition was waived and therefore the dispute has ended.
(ii) during the Services Conference of 11 January 2005, the Minister for the Environment prescribed a
series of environmental mitigation measures relative to the site on which the Falconara Refinery is
located. Among these works, we would particularly highlight the request to create a physical
containment barrier for the area in order to isolate it and impede any diffusion of pollutants. With
appeal of 13 April 2005, api Raffineria contested the decisions of the Services Conference before
the Marche Administrative Law Court in that they were excessively onerous and difficult to realise
in practice, and the relative dispute is pending. To this is added the appeal against the Conference
decisions of the following March (2006). The appeals were set for discussion before the Marche
Region Administrative Law Court at the hearing of 4 April 2007; the hearing – that was initially put
back to 5 March 2008 – was put back again to 2 December 2009 and then again in view of a
settlement of the administrative procedure with the Minister for the Environment that overcomes
the issues raised with the appeal;
(iii) api Raffineria is subject to the Noise Classification Plan approved definitively by the Municipality of
Falconara Marittima on 31 March 2005 in accordance with Regional Law 28/2001, with particular
reference to the requirement to significantly reduce the environmental noise emission threshold in
the suburbs neighbouring the Falconara Refinery. The noise classification plan has been contested
by api Raffineria with an appeal on 15 June 2005 for the part in which it is requested to significantly
reduce the environmental noise emission levels in the area of the Falconara Refinery, and the
relative dispute is currently pending with the Marche Region Administrative Law Courts, with the
discussion hearing date not yet having been set.
This dispute could be abandoned, since a re-examination of the noise classification plan by the
Municipality of Falconara is underway regarding the request for change put forward by api
Raffineria;
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(iv) on 25 August 1999 an incident occurred at the Falconara Refinery resulting in the death of two api
Raffineria employees. Following this incident, criminal proceedings were opened, which were
settled with the acquittal of all the plaintiffs except a field operator. The criminal proceedings are
now in the pending appeal phase initiated by the State Attorney General, by the convicted
defendant and by api Raffineria as the party with third party liability. The discussion hearing date
has not been set yet. Among the plaintiffs claiming damages, the Municipality of Falconara did not
lodge an appeal and the claim for damages;
(v) following an accusation presented by a former employee of one of the two subcontractor
companies for monitoring activities and securing the environment for the reclamation procedure
commenced by api Raffineria, the works director and environmental manager for the Falconara
Refinery were subjected to legal proceedings for the crime of forgery of a public document and
failure to carry out reclamation activity, together with three employees and consultants, at the time
of the facts, of contractor and subcontractor companies. Both the Marche Region and the Province
of Ancona had been admitted as plaintiffs claiming damages, presenting unquantified claims. The
relative proceeding ended in 2007 with full acquittal of all the accused, and rejection of damage
claimed by plaintiffs put forward by the civil parties, among which the Municipality has in any case
withdrawn the appeal and claim for damages; The Public Prosecutor’s Office has already lodged an
appeal, the hearing date of which has still not been set;
(vi) the criminal proceeding, in relation to the incident which took place at the Falconara Refinery on 8
September 2004 ended with the acquittal of all defendants.
The term is still pending for the submission of the appeal;
(vii) during 2006 and 2007, four VAT audit notices were served to the company for 2000, 2001, 2002
and 2003, all resulting from an assessment report issued by the Italian Tax Police – Marche Regional
Division, following a tax audit conducted on the associated company apiSoi SpA. These deeds
contested the delayed invoicing by api raffineria spa to the associate apiSoi of materials withdrawn
by the same apiSoi from the api raffineria warehouse – based on a supply relationship pursuant to
art. 1559 of the Italian Civil Code – to carry out maintenance work at the refinery. The auditing
office has confirmed the material transfers within the context of the VAT regulation of asset
transfer, refusing to recognise the existence of a supply relationship. At the balance sheet date, the
Rome and Ancona Provincial Tax Commissions filed their judgements concerning the disputes for
2001 and 2003, as well as the Rome Provincial Tax Commission for 2000, which fully accepted the
Company’s reasoning. In consideration of the manifest unfounded nature of the claim by the
Taxation office and of the favourable judgements, the company has decided not to make any
provision for such potential liabilities as they are not considered probable.
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 8899
42. FINANCIAL RISK MANAGEMENT: OBJECTIVES AND CRITERIA
The Group’s operating activities are financed predominantly by applying to the banking system,
through the use of current account overdrafts and financing, both short term - in Euro and to a limited
extent in foreign currency – and medium and long term. Within the context of ordinary management of
activities, api also uses other financial instruments such as trade debts and credits and operating hire
contracts.
As part of its ordinary operating activity, the parent company in particular is simultaneously exposed
to interest rate risk, exchange rate risk, commodity risk, liquidity risk and credit risk. To-date, the api policy
provides solely for hedging the risks connected to fluctuations in interest and exchange rates, substantially
implemented by entering into IRSs (Interest Rate Swap), collars and forwards; no trading of derivative
instruments for speculative purposes is provided.
Interest rate risk
In relation to the market risk due to interest rate variations, it is Group policy to hedge the relative
exposure relating to medium and long term indebtedness. In managing this risk, zero-cost hedging
structures are used such as Swap “cap” and “collar”. Slightly more structured transactions were carried
out in the past consisting of the combination of two simple derivatives.
It is the group policy that the depreciation plan for the hedging specularly follows, as far as due date
and notional amount are concerned, the depreciation plan for the underlying debt.
The current portion of exposure to the interest rate risk is approximately 28% of the total exposure
(in terms of face value of medium/long term financial liabilities hedged). The main sources of exposure
of the Company to interest rate risks relate to existing short, medium and long term loans and the fair
value of derivative instruments. In particular, the potential impact on the income statement for 2010
(2009 for comparison purposes) connected to the interest rate risk is as follows:
– potential variation in financial charges and interest pertaining to 2010;
– potential variation in the fair value of existing derivative instruments (other derivatives and
inefficient component of hedging derivatives).
Potential variations in the fair value of the effective component of existing hedging derivative
instruments produce an impact on the Shareholders’ equity.
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20099900
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Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 9911
IINNTTEERREESSTT SSEENNSSIITTIIVVIITTYY
3311 DDeecceemmbbeerr 22000099 3311 DDeecceemmbbeerr 22000088
RReessiidduuaall EEssttiimmaatteedd IImmppaacctt IImmppaacctt RReessiidduuaall EEssttiimmaatteedd IImmppaacctt IImmppaaccttddeebbtt pprreesseenntt vvaalluuee oonn PP&&LL oonn PP&&LL ddeebbtt pprreesseenntt vvaalluuee oonn PP&&LL oonn PP&&LL
((€//000000)) ooff iinntteerreesstt AAccccoouunntt AAccccoouunntt ((€//000000)) ooff iinntteerreesstt AAccccoouunntt AAccccoouunnttffiinnaanncciiaall cchhaarrggeess 22001100 22001100 ffiinnaanncciiaall cchhaarrggeess 22000099 22000099
yyeeaarr 22001100 ++110000 bbppss --110000 bbppss yyeeaarr 22000099 ++110000 bbppss --110000 bbppss((€//000000)) ((€//000000)) ((€//000000)) ((€//000000)) ((€//000000)) ((€//000000))
aa bb cc dd aa bb cc dd
Loans receivable 18,400 426 167 (167)
Loans payables (1,045,785) (18,360) (7,698) 7,698 (974,161) (34,331) (6,722) 6,722
TToottaall LLooaannss ((11,,002277,,338855)) ((1177,,993344)) ((77,,553311)) 77,,553311 ((997744,,116611)) ((3344,,333311)) ((66,,772222)) 66,,772222
NNoottiioonnaall DDiiffffeerreennttiiaall IImmppaacctt IImmppaacctt NNoottiioonnaall DDiiffffeerreennttiiaall IImmppaacctt IImmppaacctt((€//000000)) pprreesseenntt vvaalluuee oonn PP&&LL oonn PP&&LL ((€//000000)) pprreesseenntt vvaalluuee oonn PP&&LL oonn PP&&LL
eessttiimmaatteedd AAccccoouunntt AAccccoouunntt eessttiimmaatteedd AAccccoouunntt AAccccoouunnttyyeeaarr 22001100 22001100 yyeeaarr 22000099 22000099
22001100 ++110000 bbppss --110000 bbppss 22000099 ++110000 bbppss --110000 bbppss((€//000000)) ((€//000000)) ((€//000000)) ((€//000000)) ((€//000000)) ((€//000000))
ii jj kk ll mm nn oo pp
Derivative instruments
hedging cash flows 296,194 (3,277) (181) (2,692) 312,379 (441) 486 (1,094)
Other derivatives instruments 241,883 (4,126) 1,138 (1,167) 304,191 (4,258) 1,210 (1,278)
TToottaall ddeerriivvaattiivveess 553388,,007788 ((77,,440033)) 995577 ((33,,885599)) 661166,,556699 ((44,,669999)) 11,,669977 ((22,,337722))
TToottaall ((2255,,333377)) ((66,,557744)) 33,,667722 ((3399,,004466)) ((55,,002211)) 44,,334466
SSEENNSSIITTIIVVIITTYY OOFF DDEERRIIVVAATTIIVVEE FFAAIIRR VVAALLUUEE
3311 DDeecceemmbbeerr 22000099
NNoottiioonnaall NNeett NNeett VVaarriiaattiioonn IImmppaacctt IImmppaacctt NNeett VVaarriiaattiioonn IImmppaacctt IImmppaacctt AAmmoouunntt FFaaiirr VVaalluuee FFaaiirr VVaalluuee iinn NNeett oonn PP&&LL oonn NNeett FFaaiirr VVaalluuee iinn NNeett oonn PP&&LL oonn NNeett
FFaaiirr VVaalluuee AAccccoouunntt EEqquuiittyy FFaaiirr VVaalluuee AAccccoouunntt EEqquuiittyy((€//000000)) ((€//000000)) ++110000 bbppss ++110000 bbppss ++110000 bbppss ++110000 bbppss --110000 bbppss --110000 bbppss --110000 bbppss --110000 bbppss
((€//000000)) ((€//000000)) 22000099 22000099 ((€//000000)) ((€//000000)) 22000099 22000099((€//000000)) ((€//000000)) ((€//000000))
aa bb cc dd==cc--bb ee==dd--ff ff gg hh==gg--bb ii==hh--jj jj
Derivative instruments hedging cash flows 296,194 (4,445) 792 5,237 3,520 1,717 (8,590) (4,145) (1,010) (3,135)
Other derivatives instruments 241,883 (17,871) (17,159) 712 712 (18,622) (751) (751)
TToottaall 553388,,007788 ((2222,,331166)) ((1166,,336677)) 55,,995500 44,,223322 11,,771177 ((2277,,221133)) ((44,,889966)) ((11,,776611)) ((33,,113355))
3311 DDeecceemmbbeerr 22000088
NNoottiioonnaall NNeett NNeett VVaarriiaattiioonn IImmppaacctt IImmppaacctt NNeett VVaarriiaattiioonn IImmppaacctt IImmppaacctt AAmmoouunntt FFaaiirr VVaalluuee FFaaiirr VVaalluuee iinn NNeett oonn PP&&LL oonn NNeett FFaaiirr VVaalluuee iinn NNeett oonn PP&&LL oonn NNeett
FFaaiirr VVaalluuee AAccccoouunntt EEqquuiittyy FFaaiirr VVaalluuee AAccccoouunntt EEqquuiittyy((€//000000)) ((€//000000)) ++110000 bbppss ++110000 bbppss ++110000 bbppss ++110000 bbppss --110000 bbppss --110000 bbppss --110000 bbppss --110000 bbppss
((€//000000)) ((€//000000)) 22000088 22000088 ((€//000000)) ((€//000000)) 22000088 22000088((€//000000)) ((€//000000)) ((€//000000))
aa bb cc dd==cc--bb ee==dd--ff ff gg hh==gg--bb ii==hh--jj jj
Derivative instruments
hedging cash flows 312,379 (2,399) 1,845 4,243 2,646 1,597 (7,000) (4,601) (1,452) (3,150
Other derivatives instruments 304,191 (21,062) (20,112) 950 950 (22,139) (1,077) (1,077))
TToottaall 661166,,556699 ((2233,,446611)) ((1188,,226677)) 55,,119933 33,,559966 11,,559977 ((2299,,113399)) ((55,,667788)) ((22,,552288)) ((33,,115500))
Derivative instruments (shift in rates)
The interest rate risk sensitivity was appraised using internal appraisal models, based on generally
accepted principles:
■ regarding financing, by estimating a parallel variation of +100 basis points (+1%) of the term
structure of rates, applied solely to cash flows to be settled in 2010 (2009 for comparison purposes);
■ regarding derivative instruments, by estimating a parallel variation of +/-100 basis points (+/-1%) of
the interest rate forward contract and an average variation in volatility of Euro rates of +/-5%.
The assumptions relating to the range of variations in market parameters used for shock simulation
purposes have been formulated on the basis of the analysis of the historical evolution in such
parameters with reference to a temporal horizon of 12 months.
Exchange rate risk
Both the main activity for supply of raw materials and marginal export activity, both expressed in
foreign currency, expose the Group to the risk of exchange rate changes in the Euro/dollar rate. The
policy applied provides for total hedging of the net risk – given by the value of the import and
subtracting the export component – through the systematic use of forwards. These forward contracts,
usually characterised by very short expiry dates (10 – 30 days), show a settlement currency which tends
to coincide with the currency used to pay the foreign supplier. Group policy provides for stipulation of
the forward contract solely in the presence of an irrevocable commitment.
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20099922
SSEENNSSIITTIIVVIITTYY OOFF DDEERRIIVVAATTIIVVEE FFAAIIRR VVAALLUUEE
3311 DDeecceemmbbeerr 22000099
NNoottiioonnaall NNeett NNeett VVaarriiaattiioonn IImmppaacctt NNeett VVaarriiaattiioonn IImmppaacctt AAmmoouunntt FFaaiirr VVaalluuee FFaaiirr VVaalluuee iinn NNeett oonn PP&&LL FFaaiirr VVaalluuee iinn NNeett oonn PP&&LL
FFaaiirr VVaalluuee AAccccoouunntt FFaaiirr VVaalluuee AAccccoouunntt((€//000000)) ((€//000000)) ++55%% ++55%% ++55%% --55%% --55%% --55%%
vvoollaattiilliittyy vvoollaattiilliittyy vvoollaattiilliittyy vvoollaattiilliittyy vvoollaattiilliittyy vvoollaattiilliittyy((€//000000)) ((€//000000)) 22000099 ((€//000000)) ((€//000000)) 22000099
((€//000000)) ((€//000000))aa bb cc dd==cc--bb ee ff gg==ff--bb hh
Derivative instruments
hedging cash flows 296,194 (4,445) (3,296) 1,149 1,149 (3,857) 589 589
Other derivatives instruments 241,883 (17,871) (17,868) 3 3 (17,858) 13 13
TToottaall 553388,,007788 ((2222,,331166)) ((2211,,116644)) 11,,115522 11,,115522 ((2211,,771155)) 660011 660011
3311 DDeecceemmbbeerr 22000088
NNoottiioonnaall NNeett NNeett VVaarriiaattiioonn IImmppaacctt NNeett VVaarriiaattiioonn IImmppaacctt AAmmoouunntt FFaaiirr VVaalluuee FFaaiirr VVaalluuee iinn NNeett oonn PP&&LL FFaaiirr VVaalluuee iinn NNeett oonn PP&&LL
FFaaiirr VVaalluuee AAccccoouunntt FFaaiirr VVaalluuee AAccccoouunntt((€//000000)) ((€//000000)) ++55%% ++55%% ++55%% --55%% --55%% --55%%
vvoollaattiilliittyy vvoollaattiilliittyy vvoollaattiilliittyy vvoollaattiilliittyy vvoollaattiilliittyy vvoollaattiilliittyy((€//000000)) ((€//000000)) 22000088 ((€//000000)) ((€//000000)) 22000088
((€//000000)) ((€//000000))aa bb cc dd==cc--bb ee ff gg==ff--bb hh
Derivative instruments
hedging cash flows 312,379 (2,399) (2,202) 197 197 (2,474) (76) (76)
Other derivatives instruments 304,191 (21,062) (21,085) (23) (23) (21,057) 5 5
TToottaall 661166,,556699 ((2233,,446611)) ((2233,,228866)) 117744 117744 ((2233,,553311)) ((7700)) ((7700))
Derivative instruments (shift in volatility)
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The translation exchange rate risk is not currently managed because individual purchase agreements
of currency are preceding the date of payment of invoices stated in US$.
The potential impact on the Income Statement for 2009 (2008 for comparison purposes) connected
to the exchange rate risk is as follows:
■ revaluation/devaluation of assets and liabilities items stated in foreign currencies;
■ variation in fair value of existing derivative instruments hedging assets and liabilities items stated in
foreign currencies;
■ variations in the fair value of the ineffective component of existing derivative instruments hedging
highly probable transactions in foreign currencies.
Potential variations in the fair value of the effective component of existing hedging derivative
instruments produce an impact on the Shareholders’ equity.
Foreign currency exposure
2009
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 9933
EExxppoossuurree rreellaattiinngg AAsssseettss LLiiaabbiilliittiieess NNeett ∆∆ PP&&LL ∆∆ PP&&LL ttoo bbaallaannccee sshheeeett iitteemmss ((UUSSDD//000000)) ((UUSSDD//000000)) ((UUSSDD//000000)) AAccccoouunntt AAccccoouunntt
EEUURR//UUSSDD EEUURR//UUSSDD EExxcchhaannggee EExxcchhaannggeerraattee ++55%% rraattee --55%%
((€//000000)) ((€//000000))
Cash 14,822 - 14,822 (514) 514
Trade receivables - - - - -
Trade payable - (85,560) (85,560) 2,970 (2,970)
Financial debt - - - - -
TToottaall ggrroossss eexxppoossuurree
ooff bbaallaannccee sshheeeett iitteemmss 1144,,882222 ((8855,,556600)) ((7700,,773388)) 22,,445555 ((22,,445555))
FFoorrwwaarrdd ppuurrcchhaassee ((nnoottiioonnaall aammoouunntt)) -- 6677,,330000 6677,,330000 ((22,,333366)) 22,,333366
FFoorrwwaarrdd ssaalleess ((nnoottiioonnaall aammoouunntt)) -- -- -- -- --
TToottaall nneett eexxppoossuurree ooff bbaallaannccee sshheeeett iitteemmss 1144,,882222 ((1188,,226600)) ((33,,443388)) 111199 ((111199))
EExxppoossuurree ffrroomm FFuuttuurree FFuuttuurree NNeett ∆∆ PP&&LL ∆∆ PP&&LL ∆∆ SShhaarreehhoollddeerrss’’ ∆∆ SShhaarreehhoollddeerrss’’ hhiigghhllyy pprroobbaabbllee ccoolllleeccttiioonn ppaayymmeenntt ((UUSSDD//000000)) AAccccoouunntt AAccccoouunntt EEqquuiittyy EEqquuiittyyffuuttuurree ttrraannssaaccttiioonnss ffoorreeccaasstt ffoorreeccaasstt EEUURR//UUSSDD EEUURR//UUSSDD EEUURR//UUSSDD EEUURR//UUSSDD((ssuubbjjeecctt ttoo hheeddggee aaccccoouunnttiinngg oonnllyy)) ((UUSSDD//000000)) ((UUSSDD//000000)) EExxcchhaannggee EExxcchhaannggee EExxcchhaannggee EExxcchhaannggee
rraattee ++55%% rraattee --55%% rraattee ++55%% rraattee --55%%((€//000000)) ((€//000000)) ((€//000000)) ((€//000000))
Amount of future cash flows - (37,400) (37,400)
Forward purchase (notional amount) - 37,400 37,400 - - (1,298) 1,298
Forward sales (notional amount) - - - - - - -
Total future transaction
net exposure - - - - - (1,298) 1,298
TToottaall nneett eexxppoossuurree 1144,,882222 ((1188,,226600)) ((33,,443388)) 111199 ((111199)) ((11,,229988)) 11,,229988
2008
The assumptions on the magnitude of variations in market parameters used for simulating the
shocks were formulated on the basis of the historical evolution of these parameters with respect to a
time horizon of 30-45 days, consistent with the expected duration of exposures.
Warehouse commodity risk
The risk associated with the variation in the prices of raw materials is managed by the company
solely when accompanied by events of an extraordinary nature, predominantly associated with refinery
requirements. During the financial year no hedging transaction has been carried associated with this
type of risk.
Credit risk
The Group only deals with reliable clients. The balance of credits is monitored during the year as far
as outstanding and overdue amounts are concerned. It is Group policy to subject clients who require
delayed payment conditions to verification procedures on the relevant credit/solvency category.
The aggregate exposure of API Anonima to the credit risk, regarding 2009, is mainly associated with
trade receivables and amounts receivable from other Oil companies, mainly resulting from the core
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20099944
EExxppoossuurree rreellaattiinngg AAsssseettss LLiiaabbiilliittiieess NNeett ∆∆ PP&&LL ∆∆ PP&&LL ttoo bbaallaannccee sshheeeett iitteemmss ((UUSSDD//000000)) ((UUSSDD//000000)) ((UUSSDD//000000)) AAccccoouunntt AAccccoouunntt
EEUURR//UUSSDD EEUURR//UUSSDD EExxcchhaannggee EExxcchhaannggeerraattee ++55%% rraattee --55%%
((€//000000)) ((€//000000))
Cash 1,183 - 1,183 (42) 42
Trade receivables - - - - -
Trade payable - (67,717) (67,717) 2,433 (2,433)
Financial debt - - - - -
TToottaall ggrroossss eexxppoossuurree
ooff bbaallaannccee sshheeeett iitteemmss 11,,118833 ((6677,,771177)) ((6666,,553344)) 22,,339900 ((22,,339900))
FFoorrwwaarrdd ppuurrcchhaassee ((nnoottiioonnaall aammoouunntt)) -- 3333,,990066 3333,,990066 ((11,,221188)) 11,,221188
FFoorrwwaarrdd ssaalleess ((nnoottiioonnaall aammoouunntt)) -- -- -- -- --
TToottaall nneett eexxppoossuurree ooff bbaallaannccee sshheeeett iitteemmss 11,,118833 ((3333,,881100)) ((3322,,662277)) 11,,117722 ((11,,117722))
EExxppoossuurree ffrroomm FFuuttuurree FFuuttuurree NNeett ∆∆ PP&&LL ∆∆ PP&&LL ∆∆ SShhaarreehhoollddeerrss’’ ∆∆ SShhaarreehhoollddeerrss’’ hhiigghhllyy pprroobbaabbllee ccoolllleeccttiioonn ppaayymmeenntt ((UUSSDD//000000)) AAccccoouunntt AAccccoouunntt EEqquuiittyy EEqquuiittyyffuuttuurree ttrraannssaaccttiioonnss ffoorreeccaasstt ffoorreeccaasstt EEUURR//UUSSDD EEUURR//UUSSDD EEUURR//UUSSDD EEUURR//UUSSDD((ssuubbjjeecctt ttoo hheeddggee aaccccoouunnttiinngg oonnllyy)) ((UUSSDD//000000)) ((UUSSDD//000000)) EExxcchhaannggee EExxcchhaannggee EExxcchhaannggee EExxcchhaannggee
rraattee ++55%% rraattee --55%% rraattee ++55%% rraattee --55%%((€//000000)) ((€//000000)) ((€//000000)) ((€//000000))
Amount of future cash flows - (19,300) (19,300)
Forward purchase (notional amount) - 19,300 19,300 - - (693) 693
Forward sales (notional amount) - - - - - - -
Total future transaction
net exposure - - - - - (693) 693
TToottaall nneett eexxppoossuurree 11,,118833 ((3333,,881100)) ((3322,,662277)) 11,,117722 ((11,,117722)) ((669933)) 669933
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business of the Company (existing at 31 December 2008 for Euro 544.9 million and at 31 December
2007 for Euro 641.7 million). During 2008, api anonima carried out a factoring transaction with
IFITALIA (company of the BNL Group). With this transaction, api anonima transferred to IFITALIA a
portion (for a maximum amount of Euro 170 million) of its own trade receivables with wholesale
customers. This led to a reduction in credit risk exposure compared to the situation at the end of 2007.
There are no significant concentrations of credit risk exposure to be underlined towards single debtors.
All positions relating to financial receivables and trade receivables – both at the end of 2009 and 2008
– have an expiry date of less than 12 months.
Liquidity risk
The financial flexibility of the group is essentially guaranteed by the effect of continual and dynamic
recourse to very short term forms of financing (current account overdrafts, “hot money” etc.).
At 31 December 2009, the average exposure of the various short term forms of financing with
respect to the total debt was around 42%.
Debt due date 2009
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 9955
TTRRAADDEE RREECCEEIIVVAABBLLEESS
UUnneexxppiirreedd RReecceeiivvaabblleess ppaasstt dduuee aanndd nnoott wwrriitttteenn ddoowwnn WWrriitttteenn ddoowwnn
TTyyppee <<3300 ddaayyss BBeettwweeeenn 3300 BBeettwweeeenn 6600 BBeettwweeeenn 9900 BBeettwweeeenn 112200 >>115500 ddaayyss TToottaall ppaasstt dduueeaanndd 6600 ddaayyss aanndd 9900 ddaayyss aanndd 112200 ddaayyss aanndd 115500 ddaayyss
Receivables from third parties 376,729,957 42,683,000 17,670,716 2,449,922 2,449,922 1,142,000 15,954,906 82,689,544 6,325,000
Receivables from Group Companies 52,333,411 - - - - - - - -
TToottaall 442299,,006633,,336688 4422,,668833,,000000 1177,,667700,,771166 22,,444499,,992222 22,,444499,,992222 11,,114422,,000000 1155,,995544,,990066 8822,,668899,,554444 66,,332255,,000000
3311 DDeecceemmbbeerr 22000099
FFiinnaanncciiaall DDeebbtt
DDuuee DDaattee CCaappiittaall IInntteerreesstt TTrraaddee DDeerriivvaattiivvee TToottaall((€//000000)) ((€//000000)) PPaayyaabblleess IInnssttrruummeennttss ((€//000000))
((€//000000)) ((€//000000))aa bb cc dd ee==aa++bb++cc++dd
Within 1 month - 460 123,023 -266 123,217
Between 1 and 3 months 357 3,097 258,734 522 262,710
Between 3 and 6 months 37,632 5,546 8,304 3,084 54,566
Between 6 and 12 months 399,711 10,463 2,327 3,035 415,537
Between 1 and 2 years 278,657 16,194 457 4,283 299,591
Between 2 and 3 years 149,500 10,782 - 3,336 163,617
Between 3 and 5 years 55,066 15,194 - 4,893 75,153
Between 5 and 10 years 124,862 14,180 - 3,611 142,653
After 10 years - - - - -
TToottaall 11,,004455,,778855 7755,,991166 339922,,884455 2222,,449988 11,,553377,,004444
Estimated future charges implicit in financing and expected future differentials implicit in derivative
instruments were determined on the basis of the forward structure of the Euro interest rate and of the
Euro/Dollar exchange rate current on the reference dates (31 December 2009 and 31 December
2008).
43. DERIVATIVE INSTRUMENTS
The fair value of existing interest and exchange rate derivative instruments is determined on the
basis of internal valuation models. These models are based on generally accepted principles. In
particular, regarding the calculation of the present value of future cash flows implicit in such derivative
instruments. These are estimated on the basis of market parameters on the forward structure of the
Euro and Dollar rates, their volatility and the Euro/Dollar exchange rate. Valuations made with internal
models are validated also by examining evidence from the counterparties to such derivative
instruments.
In particular, at 31 December 2009, there were 15 positions relating to derivative instruments
hedging the interest rate risk, 7 of which are interest rate swap and 8 interest rate cap and collar
instruments (of which 3 relate to “api energia interest rate collar” transactions). Regarding interest rate
swap hedging positions, the aim pursued by the Company is about neutralising the potential variations
in future financial charges associated to existing medium/long term debt regarding variations in the
euribor rate. Regarding interest rate cap and collar instruments positions, the aim pursued by the
Company is about limiting the potential variation in future financial charges associated to existing
medium/long term debt with respect to euribor rate variations within a preset corridor. For such
transactions, solely the intrinsic value component of interest rate collar instruments was designated for
hedging purposes (and the time value component is therefore excluded).
Also, there are 4 positions relating to interest rate derivative instruments (collars) traded for hedging
medium/long term financial liabilities prior to adoption of the international financial accounting
standard. These hedging contracts, although not speculative in nature, do not meet the criteria
indicated by the IFRS standards for cash flow hedge accounting.
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20099966
3311 DDeecceemmbbeerr 22000088
FFiinnaanncciiaall DDeebbtt
DDuuee DDaattee CCaappiittaall IInntteerreesstt TTrraaddee DDeerriivvaattiivvee TToottaall((€//000000)) ((€//000000)) PPaayyaabblleess IInnssttrruummeennttss ((€//000000))
((€//000000)) ((€//000000))aa bb cc dd ee==aa++bb++cc++dd
Within 1 month - 1,214 189,786 2,426 193,426
Between 1 and 3 months 357 7,868 226,554 104 234,736
Between 3 and 6 months 21,466 9,876 - 2,344 33,686
Between 6 and 12 months 257,848 17,648 - 2,358 277,855
Between 1 and 2 years 81,959 20,083 - 5,155 107,197
Between 2 and 3 years 278,657 21,024 - 3,742 303,723
Between 3 and 5 years 175,547 21,171 - 5,823 202,541
Between 5 and 10 years 158,326 22,034 - 5,832 181,747
After 10 years - - - - -
TToottaall 997744,,116611 112200,,991188 441166,,334400 2277,,778844 11,,553344,,661111
Debt due date 2008
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Also, at 31 December 2009, there existed 40 positions relating to forward purchase agreements of
dollars. These positions were traded to hedge against the exchange rate risk connected with 3 oil cargo
purchase transactions, with settlement expected for January 2010. For these transactions, solely the
component connected to variations in the spot exchange rate was designated for hedging purposes;
therefore, the interest component is excluded (connected to the variation in spot-forward differential).
Interest rate derivatives
Exchange rate derivatives
44. RELATED PARTIES TRANSACTIONS
Transactions entered into by the api Group with related parties essentially involve the exchange of
goods and the provision of services. All the transactions form part of ordinary management and are
generally regulated on market conditions, that is on the conditions that would have been applied between
two independent parties. All transactions put in place are concluded in the interest of the company.
Details are given below of transactions of a commercial, miscellaneous and financial nature put in place
with related parties in compliance with the provisions of IAS 24 in relation to financial statement
information on transactions with related parties.
We also present, broken down by type of activity, the economic entity of contractual relations entered
into with the controlling company and other group companies for 2009.
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 9977
22000099 22000088 CCHHAANNGGEE
NNOOTTIIOONNAALL AASSSSEETT LLIIAABBIILLIITTIIEESS NNEETT NNOOTTIIOONNAALL AASSSSEETT LLIIAABBIILLIITTIIEESS NNEETT VVAARRIIAATTIIOONN IINN VVAALLUUEE FFAAIIRR VVAALLUUEE FFAAIIRR VVAALLUUEE FFAAIIRR VVAALLUUEE VVAALLUUEE FFAAIIRR VVAALLUUEE FFAAIIRR VVAALLUUEE FFAAIIRR VVAALLUUEE NNEETT FFAAIIRR VVAALLUUEE
((€//000000)) ((€//000000)) ((€//000000)) ((€//000000)) ((€//000000)) ((€//000000)) ((€//000000)) ((€//000000)) ((€//000000))dd ee ff == dd ++ ee aa bb cc == aa ++ bb gg == ff -- cc
Derivative instruments 296.194 205 (4.651) (4.445) 312.379 365 (2.763) (2.399) (2.046)
hedging cash flows
Other derivative
instruments 241.883 (17.871) (17.871) 304.191 (21.060) (21.060) 3.189
TTOOTTAALL 553388..007788 220055 ((2222..552222)) ((2222..331166)) 661166..556699 336655 ((2233..882244)) ((2233..445599)) ((11..114433))
22000099 22000088 CCHHAANNGGEE
NNOOTTIIOONNAALL AASSSSEETT LLIIAABBIILLIITTIIEESS NNEETT NNOOTTIIOONNAALL AASSSSEETT LLIIAABBIILLIITTIIEESS NNEETT VVAARRIIAATTIIOONN IINN VVAALLUUEE FFAAIIRR VVAALLUUEE FFAAIIRR VVAALLUUEE FFAAIIRR VVAALLUUEE VVAALLUUEE FFAAIIRR VVAALLUUEE FFAAIIRR VVAALLUUEE FFAAIIRR VVAALLUUEE NNEETT FFAAIIRR VVAALLUUEE
((€//000000)) ((€//000000)) ((€//000000)) ((€//000000)) ((€//000000)) ((€//000000)) ((€//000000)) ((€//000000)) ((€//000000))dd ee ff == dd ++ ee aa bb cc == aa ++ bb gg == ff -- cc
Derivative instruments 67,300 426 (151) 275 33,906 164 (2,550) (2,386) 2,661
hedging assets and
liabilities items stated
in foreign currencies
Derivative instruments 37,400 10 (21) (11) 19,300 101 (179) (78) 67
hedging highly
probable transactions
in foreign currencies
TTOOTTAALL EEXXCCHHAANNGGEE 110044,,770000 443366 ((117722)) 226644 5533,,220066 226655 ((22,,772299)) ((22,,446633)) 22,,772288 RRAATTEE DDEERRIIVVAATTIIVVEESS
Within the context of centralised cash management, we also provide details of financing flows with
respect to other Group companies, also indicating the relative financial charges.
Rome, 31 March 2010
api - anonima petroli italiana S.p.A.
The Chairman
Dr. Ugo Brachetti Peretti
The Chief Financial Officer
Dr. Stefano Cardello
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 20099988
at 31.12 2009 Share capital Interest
Api real estate ad api anonima 11
Api real estate ad api raffineria
api ad Abruzzo Costiero 310 12
Api holding ad api anonima 0 196
Api anonima ad api holding 18,400 404
Euro/thousand Revenues Costs
OOiill CCoonnssuummppttiioonn
Apisem 3,852
Abruzzo Costiero 30 2,765
PPrrooppeerrttyy
Api real estate 70 3,782
SSeerrvviicceess
Api Holding 5,185
"api " anonima petroli italiana S.p.A.Registered office: Rome – Via Salaria 1322
Share Capital Euro 115,425,000.00.= fully paid up.
* * *
BOARD OF STATUTORY AUDITORS’ REPORTFOR THE SHAREHOLDERS’ MEETING
Shareholders,
during 2009 we have carried out our administration supervisory activity, as the task of auditing the cor-
porate accounts is entrusted with Reconta Ernst & Young spa.
Carrying out our work involved the Board of Statutory Auditors’ participation in the four Board of
Directors’ meetings during the financial year in question and the acquisition on a regular basis of the relevant
information pertaining to the course of operations from the Managing Director and the CFO.
Our Chairman participated in the activities performed by the Internal Audit Committee, and informed its
colleagues about the plans of such a Body and the level of execution achieved.
The Board of Statutory Auditors has always invited persons in charge of Internal Audit Committee,
Internal Audit, Budgeting and Organization Functions and Independent Auditors to take part to its meetings
in order to get a better coordination among all Controlling Bodies and to obtain synergies by a continuous
exchange of information during the above mentioned meetings. The Board gave evidence of such an activi-
ty in the minutes that were issued at the end of each meeting.
The Board points out that, carrying out our supervisory activity, no unusual transactions with related par-
ties have emerged and therefore deems the information provided by the Board of Directors in the Explanatory
Notes to be adequate.
In such a document Directors detail extraordinary transactions, including those occurring within the
Group, clarifying with no doubt as they were carried out to improve the organization and the profitability of
the Group itself.
As for the Individual Financial Statements of Your Company, we declare that, as far as our responsibility
is concerned, it appears to comply with the provisions set out by the international accounting standards (IFRS)
and is not in contrast with domestic legislation. We have maintained constant relations with the Company
in charge of auditing the corporate accounts, always achieving positive feedbacks on the matter. In particu-
lar, we last met representatives from Reconta Ernst & Young on April,12 2010 and from their scrutiny on indi-
vidual and consolidated accounts, we ascertained their final opinion would have not raised any remark on
both documents.
Individual accounts’ financial statements show a net profit of 10.7 millions of Euro, for the reasons fairly
explained by Directors, who submit any decision regarding profit distribution to Shareholder’s meeting.
In our opinion we consider the aforesaid document worth of being approved.
Within the scope of our competencies, we share our considerations to Consolidated Financial Statements,
which are submitted to You together with Individual of which we have previously reported.
It is worth reporting as the Internal Audit Committee has focussed its attention on the topics provided by
Legislative Decree 231/2001, introducing some procedural changes in the Organization, Management and
Control model to take into account risks’ expansion as pointed out by the Legislation.
Repo
rt of
the
Boar
d of
Sta
tuto
ry A
udito
rs
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 110011
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 2009110022
Finally, we have been monitoring the general tax inspection carried out by Tax Authority (Agenzia delle
Entrate – Direzione Regionale Lazio) whose outcome, not entirely shared by the relevant functions of your
company which have been following the tax inspection, is being examined by tax consultants in order to
choose the better strategy to adopt against it.
Rome April 12, 2010
The Board of Statutory Auditors
(Prof. Claudio Bianchi)
(Dr. Adolfo Cucinella)
(Dr. Pier Andrea Frè Torelli Massini)
Inde
pend
ent A
udito
rs’ R
epor
t
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 110055
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 2009110088
Statement on Consolidated Accounts pursuant to Article 81-ter of Consob Regulationsno. 11971 of 14 May 1999 and following amendments and integrations
1. The undersigned Ugo Maria Brachetti Peretti as Chairman and Stefano Cardello as the Manager in charge of the
preparation of api’s (anonima petroli italiana spa) accounting documents, hereby certify, having also taken into
consideration the provisions of Article 154-bis, paragraphs no. 3 and no. 4, of Legislative Decree no. 58 of 24
February 1998:
• the adequacy with respect to the company structure and
• the effective application of administrative and accounting procedures for the preparation of Consolidated
Financial Statements in the period 1 January 2009 - 31 December 2009.
2. The administrative and accounting procedures for the drafting of Financial Statements as of 31 December 2009
were defined and their suitability was assessed on the basis of the rules and methods defined by “api” anonima
petroli italiana S.p.A., consistently with the Internal Control – Integrated Framework model issued by the
Committee of Sponsoring Organizations of the Treadway Commission, representing the reference network for the
internal control system generally accepted internationally.
The effects on the group structure deriving from the merger by incorporation of the Luxemburg registered apioil
international S.A. pursuant to Legislative Decree no. 108 of 30/05/2008 which have not modified the internal
company’s procedures have been fully taken into considerations.
3. The undersigned also certify that:
3.1 the Consolidated Accounts:
a) have been prepared in accordance with International Financial Reporting Standards adopted by the European
Union as provided by rule (EC) no. 1606/2002 of the European Parliament and Council of 19 July 2002;
b) correspond to the results documented in the accounting records;
c) fairly and truly represent the financial and economic situation of the issuer and of all the companies included
in the consolidation area.
3.2 the report of the Board of directors encompasses not only an accurate analysis of the performance and result
of operations but also of the status of the issuer and of all the companies included in the consolidation area
together with a description of main risk and uncertainty exposure.
Rome 12 April 2010
signed by : signed by:
Ugo Brachetti Peretti Stefano Cardello
Chairman Manager in charge of the preparation
of accounting documents
api api raffineria api Energia anonima petroli di ancona S.p.A. S.p.A.italiana S.p.A.
Rome Rome Rome (euro) (euro) (euro)
Property, Plant and Machinery 215,445,827 303,658,720 414,725,111
Goodwill 109,203,647 0 0
Intangible Fixed Assets 120,831,880 398,991 3,674,537
Equity Investments 107,754,378 130,000 0
Other Assets 25,203,907 141,408 2,503,371
Derivative Instruments Assets 594,831 0
Prepaid Taxes 29,856,531 18,903,972 56,942,899
Non-Current Assets 608,891,001 323,233,091 477,845,917
Inventories 290,125,868 20,701,834 11,608,383
Trade and other debtors 442,460,937 13,316,397 57,577,126
Financial current assets 213,400,000 0 0
Other assets 17,825,789 1,594,737 101,486,191
Tax receivables 4,692,714 4,078,380 5,458,984
Cash & cash equivalents 117,777,172 846,725 1,009,425
Assets due to cease 0 0 0
Current Assets 1,086,282,480 40,538,073 177,140,109
TTOOTTAALL AASSSSEETTSS 11,,669955,,117733,,448811 336633,,777711,,116644 665544,,998866,,002266
Net Capital 256,608,562 76,665,836 136,096,609
Medium to long term debt 408,428,572 0 196,140,196
Employee Severance Indemnity 7,172,247 7,674,859 140,487
Deferred taxation provision 69,625,052 23,178,483 44,398,788
Medium to long term provisions 48,884,131 13,990,374 0
Other Liabilities 0 0 169.150.924
Non-Current Liabilities 534,110,002 44,843,716 409,830,394
Trade and miscellaneous creditors 337,206,255 34,165,107 18,209,182
Derivative Instruments Liabilities 3,666,459 0 18,979,465
Short term debt 406,207,832 199,507,976 25,218,173
Short term portion of m/l debt 0 0 0
Other Liabilities 42,094,493 4,421,440 46,652,203
Tax Payables 115,279,878 4,167,089 0
Short term portion of m/l term provisions 0 0 0
Payables due to assets due to cease 0 0 0
Current Liabilities 904,454,917 242,261,612 109,059,024
TTOOTTAALL LLIIAABBIILLIITTIIEESS 11,,669955,,117733,,448811 336633,,777711,,116644 665544,,998866,,002266
Balance sheet IAS/IFRSas of 31 December 2009
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 2009111100
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api api raffineria api Energia anonima petroli di ancona S.p.A. S.p.A.italiana S.p.A.
Rome Rome Rome (euro) (euro) (euro)
AASSSSEETTSS DDUUEE TTOO CCOONNTTIINNUUEE
Revenues 2,365,838,973 97,377,345 236,190,234
Revenues from barters 0 0 0
Other Revenues 28,617,503 45,300,477 19,397,375
Increase in assets for internal works 0 0 0
Change in inventory 0 0 0
Extraordinary gains 0 0 0
TTOOTTAALL 22,,339944,,445566,,447766 114422,,667777,,882222 225555,,558877,,660099
Costs for raw materials and consumables (1,299,558,344) (47,619,504) (99,841,593)
Costs for barters (556,906,640) 0 0
Costs for services (405,711,581) (51,554,464) (37,543,314)
Costs for use of third parties goods (27,243,243) (1,118,690) (972,171)
Personnel Costs (35,320,584) (29,042,697) (1,400,426)
Depreciation and amortization (28,536,306) (32,648,504) (35,122,727)
Provisions for risk (8,153,922) (709,548) 0
Other operating costs (50,228,785) (2,184,497) (21,906,595)
Extraordinary expenses 0 0 0
TTOOTTAALL ((22,,441111,,665599,,440055)) ((116644,,887777,,990044)) ((119966,,778866,,882277))
PPRROOFFIITT ((1177,,220022,,992299)) ((2222,,220000,,008822)) 5588,,880000,,778822
FFIINNAANNCCIIAALL MMAANNAAGGEEMMEENNTT
Financial Income (Charge) 19,618,728 (6,426,175) (4,401,814)
Adjustments of investments 0
Income (charge) from application of NE method 0 0 0
TTOOTTAALL 1199,,661188,,772288 ((66,,442266,,117755)) ((44,,440011,,881144))
PPRROOFFIITT BBEEFFOORREE TTAAXX 22,,441155,,779999 ((2288,,662266,,225577)) 5544,,339988,,996688
TTAAXXEESS
Current Taxes 2,995,683 (78,589) (11,420,778)
Deferred Taxes 1,836,335 2,735,984 1,861,146
Prepaid Taxes 2,082,395 6,793,199 (11,024,979)
TTOOTTAALL 66,,991144,,441133 99,,445500,,559944 ((2200,,558844,,661111))
Change in Cash Flow Hedge Reserve 1,383,946 0 (2,366,675)
PPRROOFFIITT ((LLOOSSSS)) FFOORR TTHHEE PPEERRIIOODD NNEETT OOFF TTAAXX 1100,,771144,,115588 ((1199,,117755,,666633)) 3311,,444477,,668833
Income Statement IAS/IFRSas of 31 December 2009
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 111111
Balance sheet IAS/IFRSas of 31 December 2009
apioil api services Alpenoillimited limited S.r.l.
Bermuda London Rome(USD) (Gbp) (Euro)
Property, Plant and Machinery 0 2,103 4,625
Goodwill 0 0 0
Intangible Fixed Assets 0 0 0
Equity Investments 0 0 0
Other Assets 0 0 0
Derivative Instruments Assets 0 0 0
Prepaid Taxes 0 0 0
Non-Current Assets 0 2,103 4,771
Inventories 0 143,465
Trade and other debtors 107,958,756 68,513 103,556
Financial current assets 0 0 0
Other assets 223 6,972 0
Tax receivables 0 0 37,060
Cash & cash equivalents 5,801,766 277,693 214,043
Assets due to cease 0 0
Current Assets 113,760,745 353,178 498,134
TTOOTTAALL AASSSSEETTSS 111133,,776600,,774455 335555,,228811 550022,,990055
Net Capital 5,867,955 319,372 102,279
Medium to long term debt 0 0 0
Employee Severance Indemnity 0 0 0
Deferred taxation provision 0 0 0
Medium to long term provisions 0 0 0
Other Liabilities 0 0 0
Non-Current Liabilities 107,892,790 8,468 397,061
Trade and miscellaneous creditors 0 0 0
Derivative Instruments Liabilities 0 0 0
Short term debt 0 0 0
Short term portion of m/l debt 0 14,336 0
Tax Payables 0 13,105 3,565
Short term portion of m/l term provisions 0 0 0
Payables due to assets due to cease 0 0 0
Current Liabilities 107,892,790 35,909 400,626
TTOOTTAALL LLIIAABBIILLIITTIIEESS 111133,,776600,,774455 335555,,228811 550022,,990055
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 2009111122
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Income Statement IAS/IFRSas of 31 December 2009
apioil api services Alpenoillimited limited S.r.l.
Bermuda London Rome(USD) (Gbp) (Euro)
AASSSSEETTSS DDUUEE TTOO CCOONNTTIINNUUEE
Revenues 1,193,634,535 383,269 4,677,683
Revenues from barters 0 0 0
Other Revenues 0 0 23,870
Increase in assets for internal works 0 0 0
Change in inventory 0 0 0
Extraordinary gains 0 0 0
TTOOTTAALL 11,,119933,,663344,,553355 338833,,226699 44,,770011,,555533
Costs for raw materials and consumables (1,188,859,225) 0 (4,493,541)
Costs for barters 0 0 0
Costs for services (366,696) (106,653) (171,404)
Costs for use of third parties goods 0 (75,963) 0
Personnel Costs 0 (162,022) 0
Depreciation and amortization 0 (818) (375)
Provisions for risk 0 0 0
Other operating costs 0 (2,136) (28,239)
Extraordinary expenses 0 0 0
TTOOTTAALL ((11,,118899,,222255,,992211)) ((334477,,559922)) ((44,,669933,,555599))
PPRROOFFIITT 44,,440088,,661144 3355,,667777 77,,999944
FFIINNAANNCCIIAALL MMAANNAAGGEEMMEENNTT
Financial Income (Charge) (540,659) 2,446 (2)
Adjustments of investments 0 0
Income (charge) from application of NE method 0 0 0
TTOOTTAALL ((554400,,665599)) 22,,444466 ((22))
PPRROOFFIITT BBEEFFOORREE TTAAXX 33,,886677,,995555 3388,,112233 77,,999922
TTAAXXEESS
Current Taxes 0 (11,878) (911)
Deferred Taxes 0 0 0
Prepaid Taxes 0 0 0
TTOOTTAALL 00 ((1111,,887788)) ((991111))
Change in Cash Flow Hedge Reserve 0 0 0
PPRROOFFIITT ((LLOOSSSS)) FFOORR TTHHEE PPEERRIIOODD NNEETT OOFF TTAAXX 33,,886677,,995555 2266,,224455 77,,008811
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 111133
Balance sheet IAS/IFRSas of 31 December 2009
Apifin Dialco S.r.l. Festival S.p.A. GRC S.r.l
Rome Bari Rome Rome(Euro) (Euro) (Euro) (Euro)
Property, Plant and Machinery 440 17,811 7,941
Goodwill 0 0 0 0
Intangible Fixed Assets 0 0 519,544 0
Equity Investments 0 0 0 0
Other Assets 0 0 1,833
Derivative Instruments Assets 0 0 0 0
Prepaid Taxes 0 224,166 9,677
Non-Current Assets 0 440 761,521 19,451
Inventories 96,478 0 0
Trade and other debtors 4,027,637 549,525 395,781
Financial current assets 0 0 0 0
Other assets 254 14,642 0
Tax receivables 799 60,357 42,547 0
Cash & cash equivalents 602,441 329,270 2,225 360,436
Assets due to cease 0 0 0 0
Current Assets 603,240 4,513,996 608,939 756,217
TTOOTTAALL AASSSSEETTSS 660033,,224400 44,,551144,,443366 11,,337700,,446600 777755,,666688
Net Capital 589,148 832,132 546,990 565,379
Medium to long term debt 0 0 0 0
Employee Severance Indemnity 39,776 22,500 96,272
Deferred taxation provision 0 0 19,098
Medium to long term provisions 1,490 0 0
Non-Current Liabilities 0 41,266 22,500 115,370
Trade and miscellaneous creditors 14,092 3,631,596 73,190 28,344
Derivative Instruments Liabilities 0 0 0 0
Short term debt 0 667,509 0
Short term portion of m/l debt 0 0 0
Other Liabilities 5,554 50,400 0
Tax Payables 3,888 9,871 66,575
Short term portion of m/l term provisions 0 0 0 0
Payables due to assets due to cease 0 0 0 0
Current Liabilities 14,092 3,641,038 800,970 94,919
TTOOTTAALL LLIIAABBIILLIITTIIEESS 660033,,224400 44,,551144,,443366 11,,337700,,446600 777755,,666688
api - anonima petroli italiana S.p.A. Consolidated Financial Statements 2009111144
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Income Statement IAS/IFRSas of 31 December 2009
Apifin Dialco S.r.l. Festival S.p.A. GRC S.r.l
Rome Bari Rome Rome(Euro) (Euro) (Euro) (Euro)
AASSSSEETTSS DDUUEE TTOO CCOONNTTIINNUUEE
Revenues 17,956,200 637,553 774,153
Revenues from barters 0 0 0
Other Revenues 1 5,858 67,765 464
Increase in assets for internal works 0 0 0 0
Change in inventory 0 0 0 0
Extraordinary gains 0 0 0 0
TTOOTTAALL 11 1177,,996622,,005588 770055,,331188 777744,,661177
Costs for raw materials and consumables 0 (17,061,748) (31,579) 0
Costs for barters 0 0 0 0
Costs for services (5,110) (677,498) (174,507) (158,028)
Costs for use of third parties goods 0 0 0 (35,882)
Personnel Costs 0 (70,602) (149,608) (414,739)
Depreciation and amortization 0 (399) (268,449) (3,479)
Provisions for risk 0 0 (40,693) 0
Other operating costs (412) (74,645) (67,609) (5,319)
Extraordinary expenses 0 0 0 0
TTOOTTAALL ((55,,552222)) ((1177,,888844,,889922)) ((773322,,444455)) ((661177,,444477))
PPRROOFFIITT ((55,,552211)) 7777,,116666 ((2277,,112277)) 115577,,117700
FFIINNAANNCCIIAALL MMAANNAAGGEEMMEENNTT 00 00 00 00
Financial Income (Charge) (231) 1,830 (12,835) 1,323
Adjustments of investments 0 0 0 0
Income (charge) from application of NE method 0 0 0 0
TTOOTTAALL ((223311)) 11,,883300 ((1122,,883355)) 11,,332233
PPRROOFFIITT BBEEFFOORREE TTAAXX ((55,,775522)) 7788,,999966 ((3399,,996622)) 115588,,449933
TTAAXXEESS
Current Taxes 0 (34,916) (41,684) (59,746)
Deferred Taxes 0 0 159,189 0
Prepaid Taxes 0 0 (11,148)
TTOOTTAALL 00 ((3344,,991166)) 111177,,550055 ((7700,,889944))
Change in Cash Flow Hedge Reserve 0 0 0 0
PPRROOFFIITT ((LLOOSSSS)) FFOORR TTHHEE PPEERRIIOODD NNEETT OOFF TTAAXX ((55,,775522)) 4444,,008800 7777,,554433 8877,,559999
Consolidated Financial Statements 2009 api - anonima petroli italiana S.p.A. 111155
ARTWORK, DESIGN AND PRINT BY
Marchesi Grafiche Editoriali S.p.A.
Via Flaminia, 995/997 - 00189 Rome
T +39 06 33216 1 - F +39 06 33216 420
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