Conti, CEO of Enel: We have problems, but we are not thinking about selling

Italian-held energy group Enel posted a 154 million-euro operating income at the end of last year, up by around 27%, whilst the company’s consolidated revenues amounted to 850 million euros, 20% more than in 2008.

In the wake of privatisations, Enel became the biggest private energy distribution company in Romania, with its portfolio including former Electrica Banat, Dobrogea, and Muntenia Sud.

The higher results can also be explained by the fact that 2009 was the first full year when Muntenia Sud, the company that supplies energy to Bucharest, was included in Enel’s balance sheet. Despite the good results, the Italians say the local market “did not have a positive response to Enel’s presence,” the company has huge debts to recover from the Romanian state, and the restructuring of the energy sector is somewhat of a hindrance to the group’s development plans.

“The Romanian market has a significant growth potential, especially on the distribution segment, where Enel has around 30%. However, as far as energy generation is concerned, Enel is putting pressure on the Government, because the restructuring of energy generation is more like something split among pre-established players,” Fulvio Conti chief executive of Enel said.

The Romanian authorities intend to reorganise the energy system by setting up two giant companies that will incorporate most energy production facilities in Romania. Conti specified that despite difficulties facing Enel on the Romanian market, the group does not intend to sell its Romanian assets.