ROME (dpa-AFX) - Enel (ENLAY.PK, EN) reported that its preliminary ordinary EBITDA for 2018 amounted to 16.2 billion euros, up 3.8% compared with 15.6 billion euros in 2017. The increase mainly reflects the improved margin registered on the renewable business in Italy, Spain and South America and on the free market in Italy, as well as the effect of the acquisition of Enel Distribuição São Paulo. These positive factors more than offset the adverse exchange rate developments.
EBITDA, which included the effects of extraordinary transactions, amounted to 16.3 billion euros, increasing in line with ordinary EBITDA.
Revenues amounted to 75.6 billion euros, a 1 billion euro increase (+1.3%) compared with the 74.6 billion euros posted in 2017. The positive performance is mainly attributable to changes in the scope of consolidation, following the acquisitions of Enel Distribuição São Paulo in Brazil in June 2018 and of Enel X North America in August 2017, as well as to an increase in sales of energy from renewable generation in Italy, Spain and South America, and to an increase in free market sales in Italy. These positive factors more than offset the adverse exchange rate developments, mainly due to the depreciation of South American currencies.
Enel said it has started construction of the 716 MW Lagoa dos Ventos wind farm in the municipalities of Lagoa do Barro do Piauí, Queimada Nova and Dom Inocêncio, in Brazil's northeastern state of Piauí. Lagoa dos Ventos, which is expected to enter into operation in 2021, is the largest wind facility currently under construction in South America and Enel Green Power's largest wind farm worldwide.
The investment for the construction of the facility will amount to around 3 billion Brazilian reais, equivalent to over 700 million euros at the current exchange rate, which is in line with Enel's 2019-2021 strategic plan and will be financed through the Group's own sources.
In Brazil, the Enel Group, through its subsidiaries EGPB and Enel Brasil, manages around 2.9 GW of renewable capacity, of which 842 MW from wind power, 820 MW from solar PV and 1,269 MW from hydro. In addition, EGPB has more than 1 GW in execution in Brazil awarded in 2017 tenders.
Copyright RTT News/dpa-AFX