Enel''s Romanian operations generate 136m-euro revenues

Italian utility giant Enel carried out operations worth 136 million euros in the first three months of this year through its two electricity distribution companies Electrica Banat and Electrica Dobrogea, which it took over in April last year.

Electrica Banat posted 79 million-euro turnover, with EBITDA (operating profit) standing at 17 million euros. EBIT (gross profit) reached 12 million euros in the first three months of the year.

Electrica Banat”s results show a 57 million-euro turnover, a 12 million-euro EBITDA and a gross profit of 8 million euros.

The two distribution companies of Enel posted cumulated net profit of 61 million euros against a turnover of approximately 479 million euros at the end of 2005.

Enel attained a 20% share of the electricity market through its two distribution companies. The Italians paid over 127 million euros to the Romanian state.

Enel, along with CEZ (Czech Republic), Iberdola (Spain), E.ON Energie (Germany) and Gaz de France (France) is on the short list of investors interested to take over Electrica Muntenia Sud, the most valuable Electrica branch appraised at over 750 million euros.

Market sources say the Italians have submitted the highest financial bid for the acquisition of Romania”s most important electricity distribution company. The quoted sources say the bid by Enel is of around 820 million euros, with Spain”s Iberdola proposing a bid close to 770 million euros. The Ministry of Economy and Trade neither confirmed nor denied the information at hand.

Enel was the first strategic investor to have entered the energy market by taking over the 51% stake in Banat and Dobrogea electricity distributors in 2005. The Italians saved on the acquisition price then, with the state getting something in the neighbourhood of 50 million euros. roxana.petrescu@zf.ro