Romania: Tripled profit for Enel Romania in Q1 2020, SEE Energy News
Compared to 21 million euros in the same period last year, one of the largest investors in the Romanian energy sector, Italian Enel, said that its Romanian subsidiary recorded earnings before interest, taxes, depreciation and amortization in the amount of 61 million euros in the first quarter of 2020.
Net profit of Enel Romania increased to 25 million euros in the January-March 2020 period, compared to 10 million euros during the same period in 2019. The company reported approximately the same volume of electricity distributed to its customers as in Q1 2019 – 4 TWh. But, in 2020, Enel’s electricity supply business also operated positively: it recorded a net profit of 15 million euros in Q1 2020, compared to 22 million euros loss in Q1 2019.
In mid-2019, Enel said it plans to sell minority stakes in its Romanian subsidiaries. Enel’s Romanian assets in 2018 recorded revenues of around 1.2 billion euros and an operational profit of 230 million euros. The value of the assets subject to negotiations would be around one billion euros. This value is in line with the scenario of only minority stakes being put for sale. Enel came up with the idea of selling minority stakes in its Romanian companies after the investment fund Fondul Proprietatea put up for sale its minority stakes in Enel’s subsidiaries, when interested investors expressed interest in acquiring larger, but not majority stakes. Thus, Enel would retain the majority stakes and keep managing the companies. Enel had previously considered in 2014 selling its Romanian assets, but gave up the idea in 2015 explaining that the assets are core assets under the revised business strategy. Enel has been active on the Romanian market since 2005, with operations in electricity distribution and supply as well as renewable energy generation. Suppliers Enel Energie and Enel Energie Muntenia serve about 3.1 million customers in Romania. The group also controls electricity distribution networks in Romania’s Muntenia, Banat and Dobrogea regions, and large wind farms in Dobrogea.