Millions of euro
Revenue (net of eliminations) 389 855 (466) -54.50%
Gross operating margin (346) (69) (277) -
Operating income (364) (124) (240) -
Capital expenditure 72 41 31 75.60%

Revenue net of eliminations for 2017 amounted to €389 million, a decrease of €466 million compared with the prior year (-54.5%). The change can essentially be attributed to:

  • a decrease of €162 million in engineering revenue following the incorporation of Enel Ingegneria e Ricerca into Enel Produzione, with the transfer of the related flows to the Italy segment;
  • a decrease of €147 million in revenue for IT services following the transfer of the Information Technology unit from Enel Iberoamérica to Endesa, and the consequent inclusion of the figures in Iberia segment;
  • a €49 million reduction in management fees on services provided to other Divisions of the Group;
  • the capital gain of €19 million on the disposal of Compostilla Re in 2016.

The gross operating margin in 2017, a negative €346 million, showed a decrease of €277 million compared with the figure for 2016. This change reflected the elimination of the margins on the assets that were transferred, the effect of the capital gain on Compostilla Re and the reversal of the SAPE litigation provision, recognized in 2016 in the amount of €80 million.

The operating loss in 2017 amounted to €364 million, a deterioration of €240 million compared with the previous year, taking account of a decrease in depreciation, amortization and impairment of €37 million, reflecting writedowns recognized in 2016 on upstream gas exploration assets owing to a number of difficulties in executing the projects and changes in price conditions in the global fuel market.

Capital expenditure

Capital expenditure in 2017 amounted to €72 million, an increase of €31 million on 2016, mainly on information technology activities.