Enel report Q2 2014

 

The second quarter reports from my companies keep dropping in and this time Enel arrived with their numbers. The market was not pleased and the share price dropped by around -1.5% directly. So what was then in the report?


For my summary of the Enel report Q1 2014 then please click on the link and if you want to read the full report from Enel Q2 2014 then please use this link that takes you to their homepage.

When we look at their highlights then it is indeed a poor sight. Revenues were down by -8% and debt increased by over 8% so that is indeed good news. Italy keep causing problems in the sense that the energy consumption is less and less.

When we continue further back in the report then we see that even though the revenue has dropped they have countered that pretty ok with decreased costs also which means that the earnings for the half year turned out pretty similar to how it was back in 2013. It is interesting to see that they push revenue and costs out on relative parties and that it shows higher costs than the revenue that it is bringing in. I tried to find what the relative parties exactly are but found no clarification of that which annoys me. The only thing mentioned is that they continue to simplify their business areas and are therefor buying and selling much at the moment.

They continue to push green energy and especially solar plants both in the sense of taking over small solar panel companies as well as building larger solar plants in the US and in South America.

Conclusion: The restructuring has still not finished and the revenue keeps dropping with flat earnings. Right now my shares are up around 70% from when I bought them but I still see no reason to sell them. I will therefore continue as a shareholder in Enel. If you want to find out more about Enel then please click on analysis of Enel 2014.