Romania:Enel’s 2013 operational profit in Romania 289 million euros, up 25 percent

28. March 2014. / SEE Energy News

The Italian utilities company Enel operational profit in Romania amounted to 289 million euros in 2013, up 25 percent from 2012, when it stood at 231 million euros, Chief Financial Officer Luigi Ferraris declared on Wednesday at a conference dedicated to the presentation of the company’s financial report.

‘The operational profit [EBIDTA] in Romania went up 58 million euros due to larger margins following the increase of electricity tariffs, the decrease of energy purchase costs, and the cuts in operating expenditure,’ Ferraris detailed.

The Italian company owns three former subsidiaries of the Romanian electricity distribution and supply company Electrica, covering Southern Muntenia, including Bucharest, Banat (western Romania), and Dobrogea (southeast).

Enel is also the country’s second producer of wind energy, second to Czech company CEZ; its projects have a total capacity of approximately 500 MW. According to reports of the National Energy Regulatory Authority (ANRE), Enel Green Power has a market share of 1.2 percent of the overall electricity production in Romania, while CEZ has 2.4 percent.

Moreover, within Enel’s international division, the operations in Romania and Russia were the only to stage sales increases.

‘Sales in 2013 totalled 7.7 billion euros, down 966 million euros (11.1 percent) compared to 2012. The decline resulted from the diminished sales in Slovakia, due to smaller production, and in France, where we had a lower capacity. These factors were partly compensated by sales increases in Romania and Russia due to increases of the average selling prices of electricity,’ Enel officials asserted.

Last year, Enel Group’s net profits amounted to 3.235 billion euros, 13.5 times the previous year’s figure of 238 million euros, according to the company’s financial report released on Wednesday.

‘The significant growth is mainly due to the sale of the Arctic Russia gas extraction division,’ Enel CEO Fulvio Conti mentioned.

The EBIDTA operational profit was 7.6 percent above the last years’, reaching 17 billion euros, compared to 15.8 billion euros in 2012, while the EBIT indicator climbed 46 percent, from 6.8 billion euros to 9.9 billion euros.

The group’s net financial debt went down 7.2 percent, from 42.9 billion euros on December 31, 2012 to 39.8 billion euros.
Enel distributes approximately 400 TWh of electricity per year in 8 countries, to more than 61 million end users.

In the energy production, the company has worldwide capacities of 90,000 MW.

In the renewable energy sector, Enel has a production portfolio amounting to 8,900 MW in 16 countries.

Enel to invest 6 bln euro in renewable energy sector in next 5 years, Romania included

Italian company Enel will invest 6 billion euro until 2018 in the renewable energy sector, Romania included, stated on Wednesday Fulvio Conti, CEO Enel, in a press conference held to present the financial results of the company.

‘The group will continue to invest in renewables, planning investments of around 6 billion euro [during 2014-2018] of which 5.2 billion euro will be put forth for the installation of new capacities on 16 markets where we are already present, the rest is to be invested in new countries and regions that we’ve identified and announced already such as Morocco, Turkey and South Africa’ said Conti.

Enel holds a renewable energy production portfolio of 8,900 MW in 16 countries.

The investment plan announced Wednesday by Enel will allow the company to hold 9,800 MW of renewable energy in 2014, 12,100 MW in 2016 and 13,400 MW in 2018.

In Romania, Enel is the second largest producer of wind power, after the Czech company CEZ, presently operating functional wind turbine parks with a capacity of around 500 MW.

According to reports from the National Authority for Energy Regulation (ANRE), Enel Green Power has a 1.2 percent share of the total energy production market in Romania, CEZ holding 2.4 percent.

Furthermore, the Italian company holds three former Electrica energy supply and distribution units in the Muntenia Sud, Banat and Dobrogea areas.

Enel posted an operational profit of 289 million euros in Romania last year, a 25 percent increase compared to 2012 when the figures were of 231 million euro, said Luigi Ferraris, the financial director of the company, in the same press conference.

Enel Group posted a net profit last year of 3.235 billion euro, 13.5 times higher than the figures of the year before when it recorded a net profit of 238 million euro, according to the financial statement of the company made public on Wednesday.

‘The significant increase is mainly due to the sale of the gas extraction division Arctic Russia’ said representatives of the company.

In the same period, the sales of the group diminished by 5.2 percent to the sum of 80.5 billion euro from 84.9 billion euro reported in 2012.

Enel 2014 estimates: Operating profit of EUR 300 ml for its Romanian business, up 3.8 pct

Italy-based electricity and gas producer Enel estimates that the operating profit of its Romanian business will remain stable this year at about EUR 300 million, after having hit EUR 289 million in 2013, company officials told a conference organized for the presentation of Enel’s financial results.

‘In line with its commitment and long-term strategy on the market in Romania, Enel continues its development and investment plan which provides for investments (capital expenditures) of about EUR 100 million in 2014,’ said Enel representatives.

Earlier in the same conference company Chief Financial Officer Luigi Ferraris announced that Enel last year saw EUR 289 million in operation profit in Romania, by 25 percent higher compared to 2012, when the indicator was EUR 231 million.

‘The operation profit [EBITDA] in Romania increased by EUR 58 million due to higher margins, as a result of the rise in electricity tariffs, lower energy purchase costs and the cut in operating costs,’ said Ferraris.

In Romania, the Italian company owns three former subsidiaries of the local electricity distribution and supply company Electrica, covering the South Muntenia region, including Bucharest, Banat and Dobrogea. Enel is also Romania’s second largest wind energy producer after Czech electricity producer CEZ, with an installed capacity of about 500 MW. According to reports of the National Energy Regulatory Authority, Enel Green Power accounts for 1.2 percent of the total electricity production in Romania, while CEZ has a market share of 2.4 percent.

According to figures posted by Enel’s International Division, Romania and Russia were the only businesses to see an increase in sales.

‘Sales in 2013 totalled EUR 7.7 billion, by EUR 966 million (11.1 percent) less compared to 2012. The decline is the effect of lower sales in Slovakia (following a lower output), but also in France, where we had a lower capacity. These factors were partially offset by the sales growth in Romania and Russia, as a result of increases in the average electricity selling price,’ Enel officials explained.

Enel wants deal on taking over minority stake in Electrica Muntenia Sud be concluded by year-end

Italian electric utility company Enel hopes that it will be able to buy this year from the Romanian State the minority stake of 13.4 percent in the former branch of national electricity distribution and supply company Electrica SA, Electrica Muntenia Sud, Fluvio Conti, CEO Enel told a press conference on Wednesday.

‘We haven’t negotiated yet on this issue with the Romanian State, but an expert is currently checking the value of the share package. We expect to end the transaction by the end of this year,’ Conti said, quoted by Agerpres correspondent.

The Romanian State, via Electrica, holds 13.5 percent in the former Electrica Muntenia Sud and wants 520 million euros for the minority stake in this company.

In Romania, the Italian group holds three former Electrica energy supply and distribution units in the Muntenia Sud, Banat and Dobrogea areas.

In Romania, moreover, Enel is the second producer of wind power, after the Czech group CEZ, presently operating functional wind turbine parks with a capacity of around 500 MW.

According to the reports of the National Authority for Energy Regulation, Enel Green Power has a 1.2 percent share of the total energy production market in Romania, CEZ holding 2.4 percent.

Source; Serbia Energy See Desk

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