Thursday 4 June 2015

Enel report Q1 2015

Enel, Q1, 2015, front page

My fourth energy company is also out with their quarter report. Unfortunately it is still only in the form of a press release but I could not be bothered to wait any longer. Enel have extreme time schedules between the press release and the publication of the official reports.

For the report in full please click here and for the previous summary then visit Enel annual report 2014 and to get a better feeling for Enel then please take a look at analysis of Enel 2015.

Well, all the energy companies in the entire Europe are doing more or less bad and Enel is no exception when it comes to that. The only difference for me as a shareholder is that I managed to buy Enel at a very good moment.

In the income statement below we see that they did indeed manage to push up the revenue by almost 10% so that is pretty good BUT the costs increased by over 11% so no happy news there. Their financial expenses compared to incomes have also goes ballistic. Sometimes they should really sit down and calculate what the true benefit long term has been with all the hedging and derivatives etc. I doubt that below the line.. including high salaries and bonuses etc that they make any kind of profit. In the end, for Q1 2015, as a shareholder there were 810 million € compared to 868 million € for Q1 2014. We should however never forget that for the full year 2014 there were only 517 million € left in the end of the year so nothing is ever for certain and one could even go as far as saying that anything besides from annual reports are simply bunk and one need to start to consider that is the purpose of even looking at them...

Enel, Q1, 2015, income statement

Conclusion: Enel is not doing very well but they are also not on the edge of the cliff like E.On is. I will remain as a shareholder for the time being.

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