Italian electric utility firm Enel SpA (EN, ENLAY) Wednesday reported 79 percent fall in profit for full-year 2012, reflecting mainly impairment losses on goodwill. Revenues grew, benefited by sale and transport of electricity, trading of fuels as well as sale of gas to end users. The firm said its outlook for renewables business remains positive.
According to the company, various regulatory measures introduced by the Spanish government in 2012, together with the worsening of the economic situation, resulted in goodwill write-down mainly related to Endesa's activities in Iberia cash generating unit, totaling 2.39 billion euros.
However, for the next five years, the firm confirmed its strategy of focusing on protecting margins and cash flows in mature markets as well as development in growth markets and renewables.
The group said it expects EBITDA of around 16 billion euros in 2013, about 16 billion euros in 2015; between 17 billion euros and 18 billion euros in 2017.
Net ordinary income in 2013 is expected to be about 3 billion euros, around 3.3 billion euros in 2015, and to be between 4 billion euros and 5 billion euros in 2017.
Fulvio Conti, Enel Group CEO and general manager stated, "In 2012 the Group's results were in line with the targets previously announced to investors, both in terms of EBITDA and net financial debt, despite continuing to operate in a challenging macroeconomic scenario, mainly in Italy and Spain."
For the year, the Group net income attributable to shareholders of the parent plunged 79 percent to 865 million euros from 4.11 billion euros reported last year. On a per share basis, earnings were 0.09 euros, down from 0.44 euros per share a year earlier. The company has restated its prior-year results.
Excluding the effect of the impairment losses on goodwill totaling 2.58 billion euros, the group said its net income fell 16.4 percent from a year ago. Operating income was 7.74 billion euros, lower than 11.28 billion euros last year.
Earnings before interest, tax, depreciation and amortization or EBITDA declined 4.9 percent to 16.74 billion euros.
Annual revenues grew 6.8 percent to 84.89 billion euros.
Electricity sold to end users increased 1.6 percent to 316.8 Twh. Volumes improved in Latin America, Russia and France, but the company saw a decline in volumes sold in Iberia and Italy. Gas sold to end users rose 2.4 percent to 8.7 billion cubic meters.
In Milan, the shares closed Tuesday's regular trading at 2.78 euros, down 2.11 percent.
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