Enel Announces Fall Back in Earnings for the Third Quarter of 2017

Quarterly results - December 2017
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December 20, 2017

Enel Announces Fall Back in Earnings for the Third Quarter of 2017

Economic forecast december 2017

Economic forecast december 2017

The Italian holding company of generation and distribution of electrical energy, Enel, reported profits during the session this week and these registered a setback at the end of the third quarter. The earnings were $3,055 million in the aforementioned period, which represents a loss of 4.9% compared to the same period in 2016.

The reduction reflects the decline in EBITA, only partially compensated by the good performance of the companies accounted for using the equity method, the reduction of tax liability and the decrease in net financial expenses, explained the corporation of energy through a communication released to the global stock market.

The group’s net income was $3,010 million, which meant a drop of 4.3% between the periods mentioned at the start of the dispatch. On the other hand, operating income reported advances in the period analyzed. The Italian society indicated that when finalizing the third trimester the invoicing was 63,162 million: an increase of 5.3% in relation to the third quarter in 2016.

This was not enough for the group to have a break so far in 2017, according to industry analysts, Enel recorded a fall in profits which affected the third quarter; however, the company expects to recover with different investment plans.

enel

enel

Situation in the Region

The Italian company has a strong presence in Latin America. This is shown by its investment activity and in projects, not only of recurring energy but also of renewable energy and in other areas: such as alternative transport.

In the case of Mexico, Enel is planning to generate a minimum demand of 150 large customers, including free and contract customers, of large companies, multinationals, the Government, shopping centers, corporations, among other entities. This would mean 400 gigawatt hours of power per year and an estimated 35 million dollars in sales.

In Colombia and after being present for two decades, Enel is venturing into the transport market, bicycles and electric buses for a collapsed Bogota, which still does not have a mass public transport like Lima or Santiago; although still with austere results, Despite the optimism of its local director Lucio Rubio, said: our investment plan is 4 billion Colombian pesos [about 1,331 million dollars in the next four years, we talk about 1 billion pesos which is almost 332.8 million dollars] per year in the network infrastructure and the distribution business, Rubio detailed to the specialized media from Colombia.

In Peru, they reported that the Italian company, led by Francesco Starace plans to pay out $400 million in capital investment for the next two or three years and in renewable energies: risky bet if the context of low prices of power is taken into account in the Andean economy given an over-supply environment.

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