Enel closes the half-year accounts with a profit up 4,6% to 1,89 billion and confirms its position as the world leader in renewables. The group led by Francesco Starace improved Ebitda (+2,3% to 7,8 billion) due to organic growth in renewables, tariff increases to the benefit of distribution in Argentina and Spain and improved margins in end markets in Spain and Romania, factors which more than offset the negative exchange rate effect in South America, explains the group's note. The net result exceeds 2 billion (+9,4%) thanks to the lower financial charges of the lower tax burden.
Debts increased to 41,59 billion (compared to 37,4 at the end of 2017), as a result of the acquisitions (Eletropaulo and Ufinet), the takeover bid on Enel Generación Chile, linked to the process of reorganization of the Chilean shareholdings, the payment of the interim dividend and investments for the period.
Looking instead at revenues, they exceeded 36 billion and recorded a modest drop of 288 million compared to the previous six months, due to the exchange rate effect, lower sales in particular in Spain, the reduction in trading in Italy which was affected by prices and quantities intermediate, and the drop in prices in Chile. Against reductions in Italy (-1,6%), Iberia (-2,7%) and Europe (-2,1%), revenues in the USA are soaring (+52,3 .XNUMX%), South America and sub-Saharan Africa are up. However, margins improved in Italy, Spain and North America.
Capital expenditure decreased by 351 million euros compared to the value recorded in the same period of 2017 mainly due to the decrease in capex in wind and solar plants in Brazil, Peru and North America following the completion of the plants that were under construction in the first half-year 2017. A reduction, however, offset by the higher expenditure destined for the distribution networks in Italy and Spain (+33% and +51% respectively) for activities related to the quality of the service and the installation of electronic meters.
In the light of these data and the prospects for the second half of the year, Francesco Starace confirmed his objectives for 2018. “Enel has further increased its gross operating margin – commented the CEO – above all due to the effect of renewables. Between June 2017 and June 2018, we put 3.4 GW of new renewable capacity online worldwide, setting another new all-time record for installed capacity in twelve months among all companies in the sector”. Francesco Starace also underlined “two important transactions: the acquisition of the Brazilian distribution company Eletropaulo and a stake in the wholesale ultra-broadband operator Ufinet International, consolidating our position among the world leaders in the infrastructure sector”.
Also in light of the expectations for the half-yearly report, released on a closed stock market, Enel closed up by 1,42% at 4,77 euros in Piazza Affari.
During the conference call following the publication of the half-year report, the CFO Alberto De Paoli explained that Enel is targeting disposals in the second half of the year "for 1,2-1,5 billion". “There will be divestments in the second half of the year – he explained – and we are awaiting the finalization of the sale of the assets in Mexico”. Enel also confirms the debt target indicated for 2018, despite the acquisitions in South America. “Today we are in the same range” of debt targets “that we gave in the plan”.
Updated at 7:48 Wednesday, August 1st
