Italian utility Enel has reported revenues of E18.9 billion for the first half of 2007, which is down E208 million, or 1.1%, compared to the first half of 2006. According to the company, the decrease is largely attributable to the decline in revenues from the sale of electricity in its domestic market.
<p>Nevertheless, EBITDA in the first half of 2007 came to E4.5 billion, up E101 million, or 2.3%, over the E4.4 billion registered in the first half of 2006. In addition, group net income amounted to E1.98 billion in the first six months of 2007, a slight increase compared with E1.97 billion posted in the corresponding prior year period. <br /><br />The consolidated balance sheet at June 30, 2007 showed total shareholders' equity of E19.7 billion and net financial debt of E25 billion, with an increase in the latter figure of E13.4 billion. This was mainly due to the acquisition of 24.97% of Endesa's share capital, as well as a stake in Russian generation company OGK-5's share capital. The debt equity ratio at June 30, 2007 was 1.27, compared with 0.61 at the end of 2006.<br /><br />Capital expenditure in tangible and intangible assets in the first half of 2007 amounted to E1.5 billion, an increase of 33.7% on the E1.1 billion spent during the corresponding prior year period.<br /><br />Fulvio Conti, Enel's CEO, commented: The new international footprint achieved, together with efficiency and development programs undertaken for Italy in all divisions enable us to expect an improvement in operating performance for 2007 compared with the one posted in 2006.<br /><br />Expectations on the positive conclusion for the takeover of Endesa and the strengthening of Enel's position in Russia, through the acquisition of OGK-5, complete our international expansion. Enel has now been shaped into a fully fledged energy multinational, with an improvement in the technology mix and a geographic diversification enabling us to reach an optimal size, thus offering further growth plans, Mr Conti continued.</p>