Enel SpA (MIL:ENEL, Financial), the Italian global electricity and gas manufacturer and distributor, closed fiscal year 2016 reporting a net profit of 2.570 million euros ($2.76 million), a 17% increase from 2.19 million euros in 2015. The increase was due to a 16.1% increase in 2016 operating income of 8.921 million euros, which was driven by a 19.9% increase in the Iberian Peninsula segment (1.766 million euros) and a 67.2% increase in the North and Central America segment (565 million euros).
In contrast, the Italy segment’s EBIT, which usually accounts for approximately 50% of the company’s total operating income, decreased 4.4% from 4.588 million euros in 2015 to 4.387 million euros in 2016.
The decline in the segment’s operating income was mainly a consequence of a 9.3% decrease in revenues, which, in 2016, came in at 36.957 million euros from the Italian market, due to “lower volumes of energy generated, a decrease in tariff revenues from electricity distribution, lower revenues from trading on international electricity markets and a drop in revenues from renewables generation.”
The company’s total revenue came in at 70.592 million euros, 6.7% lower than one year ago. The net ordinary income was 3.243 million euros, a 12.3% increase on year-over-year basis.
In 2016, Enel generated cash flow of $9.847 million from its operations, a 9% increase from 2015. The total funds used for capital expenditure were 8.552 million euros.
For 2016, the board of directors proposed a dividend of 0.17 euros per share. The payout ratio increased 3.6% to 57%.
The company closed 2016 with 8.290 million euros in cash on hand and equivalents. The total long-term debt amounts to 41.336 million euros.
"The Group’s excellent performance in the implementation of our strategy enabled us to achieve better-than-expected results in 2016 and to post growth in EBITDA for the first time since 2013," Francesco Starace, Enel CEO and general manager, said. "For 2017, we plan to start our investments in digitization and we foresee early contributions from our customer focus strategy on a global scale. "
Enel is trading at 4.19 euros, down tents cents or -0.38% from the previous trading day, with a price-book ratio of 1.21 and a price-sales ratio of 0.62.
The company has a volume 10.17 billion shares outstanding, of which 2.69 billion is float.
Among the top mutual fund holders, Europacific Growth Fund stands out with 146,175,000 shares, or approximately 1.44%, of the company’s total outstanding shares, valued at 580,022,400 euros as of Sept. 30, 2016.
Disclosure: I have no positions in Enel.
Start a free 7-day trial of Premium Membership to GuruFocus.
