Tuesday 18 November 2014

Enel report Q3 2014

Enel, Q3, 2014, front page, report

My Italian electricity company Enel arrived with their third quarter report for 2014 and like the rest of the business they are not doing too well. Even before this report the share price has been drifting downwards. What was then in it?

For the full report from Enel please click here and for the previous summary of please visit Enel report Q2 2014.

They gave a little table with the name financial highlights as can be seen below and well... highlights it might be but happy reading it is not. Revenues for the running nine months are down by -6.5% and net income are down by -16%. This is pretty bad news in my opinion but follows the general trend. They also decided to decrease their debt a little which is good.

Enel, Q3, 2014, financial highlights

In the financial statement we see that in terms of revenue the quarter was bad but not extremely bad but the earnings were horrible in quarter three. That earnings cut was deep! Looking at the running nine months then the group is down by some 3.7 billion € in revenue which is a lot but even worse is that they have dropped by 400 million € in earnings. Bad!

Enel, Q3, 2014, financial statement

Conclusion: The electricity business is having a tough time and Enel is following the rest of the herd. Happily they are doing more or less equal to back in 2013 which is still ok in comparison to what 2012 look like for Enel. I definitely will not expect any increased dividends and I should probably even be happy if I receive the same as last year based on what I seen until yet. I will remain as a shareholder in Enel and I am a little annoyed that my initial investment was so small.

Interested in Enel? Please look a bit closer on analysis of Enel 2014.

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