OREANDA-NEWS. The Board of Directors of Enel S.p.A. (“Enel”), chaired by Paolo Andrea Colombo, examined and approved the interim financial report as of March 31st, 2014.

Fulvio Conti, Chief Executive Officer and General Manager of Enel, commented: “The positive consolidated results achieved in the first quarter of the year confirm the validity of the Group's strategy of geographical and technological diversification, as well as the managerial actions mostly taken to enhance efficiency and reduce costs. We are also continuing our strategy of simplifying the corporate structure of the Group through minority buyouts at a number of subsidiaries in Latin America.”

OPERATIONAL HIGHLIGHTS

Electricity and gas sales

Electricity sold by the Enel Group in the first three months of 2014 amounted to 67.8 TWh, a decrease of 2.1 TWh (-3.0%) compared with the same period of the previous year, mainly attributable to the decline in sales in Italy and France. Sales of gas to end users totalled 3.0 billion cubic meters, a decrease of about 0.4 billion cubic meters on the same period of 2013.

Power generation

Net electricity generated by the Enel Group in the first three months of 2014 amounted to 68.0 TWh (-3.0% on the 70.1 TWh of the first three months of 2013), of which 17.9 TWh in Italy and 50.1 TWh abroad.

The Enel Group's plants in Italy generated 17.9 TWh, up 4.1% on the same period of 2013.

Demand for electricity in Italy in the first three months of 2014 amounted to 78.1 TWh, a decline of 3.7% on the same period of 2013, while net electricity imports rose by 1.3 TWh (+10.8%).

Net electricity generated abroad by the Enel Group in the first three months of 2014 amounted to 50.1 TWh, down 2.8 TWh (-5.3%) on the first quarter of 2013. The decline is essentially attributable to a decrease in generation by Endesa plants (-2.4 TWh), with a decrease of 1.3 TWh in Latin America and - 1.1 TWh in the Iberian peninsula, as well as a decrease in Slovakia (-0.5 TWh) associated with the fall in demand.

Of the total generation by Enel power plants in Italy and abroad, 49.3% came from conventional thermal generation, 34.9% from renewables (hydroelectric, wind, geothermal, biomass, and solar) and 15.8% from nuclear power.

Distribution of electricity

Electricity distributed by the Enel Group network in the first quarter of 2014 totalled 99.9 TWh, of which 56.6 TWh in Italy and 43.3 TWh abroad.

The volume of electricity distributed in Italy fell by 1.6 TWh (-2.7%) compared with the first three months of 2013, essentially in line with developments in demand on the domestic grid.

Electricity distributed abroad totalled 43.3 TWh, a decrease of 0.2 TWh (-0.5%) on the first three months of the previous year, mainly due to the decrease in volumes handled by Endesa (-0.1 TWh), which despite an increase in volumes distributed in Latin America (+0.7 TWh), registered a contraction in volumes in the Iberian peninsula (-0.8 TWh).

FINANCIAL HIGHLIGHTS

Consolidated results for the first three months of 2014

Revenues in the first quarter of 2014 amounted to 18,182 million euros, a decrease of 2,263 million euros (-11.1%) compared with the same period of 2013. The decrease is essentially attributable to the decline in revenues from the sale and transport of electricity as a result of the fall in volumes generated and the adverse developments in the exchange rates of a number of currencies of the countries in which the Group operates (notably Latin America and Russia) against the euro. Revenues in first quarter of 2014 include the price adjustment (82 million euros) for Arctic Russia, which was sold at the end of 2013, and the fair value adjustment (50 million euros) of the assets and liabilities of SE Hydropower following the loss of control of that company after the modification of governance arrangements provided for in the original agreements. More specifically, the revenues of the Sales business area amounted to 4,392 million euros (-11.0%), those of the Generation and Energy Management business area came to 4,972 million euros (-23.3%), those of Infrastructure and Networks Division totalled 1,850 million euros (-0.2%), those of the Iberia and Latin America Division amounted to 7,241 million euros (-9.1%), those of the International Division amounted to 1,367 million euros (-17.7%) and those of the Renewable Energy Division totalled 702 million euros (-0.3%).

EBITDA for the first quarter of 2014 amounted to 4,036 million euros, up 22 million euros (0.5%) compared with the same period of 2013. More specifically, the gains on disposal and the fair value adjustment noted earlier and the improvement in the margin on the generation and sale of electricity in Italy were only partially offset by the adverse effect (107 million euros) of the appreciation of the euro against some of the currencies of the countries where the Group operates. In particular, EBITDA of the Sales business area amounted to 322 million euros (+34.2%), that of the Generation and Energy Management business area totalled 397 million euros (+36.4%), that of the Infrastructure and Networks Division came to 947 million euros (-1.1%), that of the Iberia and Latin America Division was 1,503 million euros (-9.5%), that of the International Division amounted to 281 million euros (-22.8%) and that of the Renewable Energy Division totalled 481 million euros (+0.8%).

EBIT for the first quarter of 2014 amounted to 2,608 million euros, up 89 million euros (3.5%) on the first quarter of 2013, taking account of a decrease of 67 million euros in depreciation, amortization and impairment losses. Broken down by segment, EBIT of the Sales business area was 168 million euros, that of the Generation and Energy Management business area came to 282 million euros (+44.6%), that of the Infrastructure and Networks Division totalled 702 million euros (-2.2%), that of the Iberia and Latin America Division amounted to 835 million euros (-11.4%), that of the International Division came to 193 million euros (-16.5%) and that of the Renewable Energy Division was 346 million euros (-3.1%).