Enel’s Romanian subsidiary posts lower profit despite 20% surge in revenues

Italian energy group Enel's revenues in Romania rose by 20% from EUR 298 million to EUR 357 million in the first quarter of this year, according to the group’s quarterly report.

However, the earnings before interest, taxes, depreciation and amortization (EBITDA) decreased from EUR 45 million to EUR 22 million, mainly due to the evolution of the electricity supply segment, News.ro reported. The electricity supply business moved from an EBITDA of EUR 9 million to a negative result of EUR 22 million in the first quarter of this year, as prices on the wholesale spot electricity market advanced by more than 50%, according to company data (and the company was apparently holding a short position in the market).

The group's revenues from the renewable energy business (wind farms mainly) increased from EUR 30 million to EUR 45 million over the period.

Enel Romania is one of the largest private investors in the energy sector, with operations in the distribution and supply of electricity, as well as power production from renewable sources (with an installed capacity of 534 MW), present on the Romanian market since 2005. E-Distribution companies operate power networks in three major areas of the country covering a third of the local distribution market.

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