Enel closed the first quarter of 2016 with revenues down 10,5% year on year, to 17,87 million (from 19,97), due to lower revenues from electricity sales in mature markets and to a foreign exchange effect negative. Ebitda holds steady at 4,017 billion (-0,1% from 4,023 in the first quarter of 2015) and the group's net ordinary income stands at 795 million (-1,9%). The group's net result rose by 15,9% to 939 million (from 810) due to the improvement in the EBIT (to 2,67 billion) and the lower tax burden. Net financial debt down to 36,644 billion euro as at 31 March (-2,4% from 37,545 at the end of 2015). The data published by Enel and illustrated by the CFO Alberto De Paoli in a conference call were judged better than expected by analysts and shares are up sharply in Piazza Affari (+3,7% above 4 euro). De Paoli also replied on Metroweb after the purchase proposal made by Telecom Italia and specified that "it can accelerate our program and for this reason we have looked to the company, but we can also continue stand alone if this transaction does not close". As for divestments, De Paoli said that the group is valued at 1 billion in 2016: "We are looking at the possibility of reducing minorities in Latin America but we are also open to acquisitions". And he specified: "First of all, we have before us the maintenance of leverage objectives and ensuring good remuneration for shareholders, then we can look around".
The data for the first quarter, specifies the note from Enel, include as an extraordinary element the capital gain realized on the sale of Hydro Dolomiti Enel for 146 million. The balance sheet shows invested capital of 31 billion lire as at 88,836 March covered by shareholders' equity of 52,192 billion and net financial debt of 36,644 billion, the decrease of which is attributable, in addition to the improvement in cash flows from operations, also to the effect positive deriving from the change in the exchange rates of some currencies. Investments amounted to 1,547 billion, an increase of 294 million euros in the same period of the previous year mainly attributable to the Renewable Energy Division (+68,4%).
“The first quarter 2016 results show very good progress against our strategic plan. Flexibility and increased operating efficiencies have allowed us to further improve our degree of competitiveness and this in the face of the macroeconomic scenario which remains challenging – commented the CEO of Enel, Francesco Starace -. We have added additional capacity from renewable sources to our generation mix and achieved the full integration of Enel Green Power within the group. The corporate simplification process in Latin America continues to make progress and we hope to complete it in the second half of the year. We have already separated the Chilean activities from those of the other Latin American countries and the resulting new companies were listed on the Santiago and New York stock exchanges last April”.
Enel's electricity sales in the first quarter of 2016 amounted to 68 TWh, an increase of 1,5 TWh (+2,3%) compared to the corresponding period of the previous year. In particular, we note: lower sales in Eastern European countries (-0,6 TWh); higher quantities sold in Italy, Latin America and Iberia (+2,1 TWh). Natural gas sales amounted to 3,8 billion cubic meters, an increase of 0,5 billion compared to the first quarter of 2015, mainly in Spain. The net energy produced by Enel in the first quarter of 2016 amounted to 66,0 TWh, with a decrease of 8,2% compared to the value recorded in the same period of 2015, attributable to lower production both in Italy ( -2,6 TWh) and abroad (-3,3 TWh).
In particular, there is a lower contribution from the thermoelectric source; an overall lower production from renewable sources mainly due to a reduction in conventional hydro production. The reduction in net production abroad is attributable to the lower production of the plants in the Iberian Peninsula and in Eastern European countries. The volumes of electricity distributed in Italy decreased by 0,2% compared to the value recorded in the first quarter of 2015. The electricity distributed abroad amounted to 49,3 TWh, with a decrease of 0,8% compared to the same period of 2015.
(text updated at 12,16 on Tuesday 10 May)
