ROME (dpa-AFX) - Italy-based utility Enel SpA (EN, ENLAY.PK), Thursday reported a decline in profit for the first quarter, hurt mainly lower margins.
Enel Group's net income for the first quarter dropped to 1.18 billion euros or 0.13 euro per share from 1.20 billion euros or 0.13 euro per share in the year-ago quarter.
Earnings before interest, tax, depreciation, and amortizations, or EBITDA, fell 2.2 percent to 4.3 billion euros, hurt by lower margins on generation activities in Italy.
First-quarter revenue grew 8.5 percent to 21.19 billion euros from 19.54 billion euros a year ago, due mainly to higher revenues from the sale of electricity on wholesale markets.
Enel said economic conditions in Europe for the first quarter were uncertain especially in Italy and Spain, however, the emerging markets of markets Eastern Europe, Russia and Latin America showed positive growth.
Chief Executive Fulvio Conti said, 'The negative economic trend experienced since last year continued into the first quarter of 2012, with lower demand mainly impacting Italy and Spain partially offset by the growth in the markets of Latin America, Russia and Eastern Europe.'
First-quarter revenues from generation and energy management division, advanced 18.5 percent, but EBITDA slipped 20.8 percent. International division's EBITDA fell 5.8 percent, while infrastructure and networks business dropped 3 percent.
Going forward, Enel said it will achieve the financial targets announced for full year 2012, despite the negative impact of the regulatory measures introduced in Spain. Conti said the company has taken steps to optimize its investments, enhance efficiency and cut costs.
ENLAY.PK is currently trading at $3.17, down $0.54 or 1.68%.
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© 2012 AFX News
