Enel Green Keeps 2011 Targets After Profit Falls on Higher Tax

Enel Green Power SpA (EGPW), the renewable energy unit of Italy’s biggest utility, confirmed full-year financial targets even after posting a 36 percent drop in earnings on higher taxes and falling prices for solar panels.

Net income in the third quarter fell to 63 million euros ($87 million) from 99 million euros in the year-earlier period, the Rome-based company said today in a statement.

Chief Executive Officer Francesco Starace maintained Enel Green’s 800-megawatt installation goal for this year. He also kept a 2011 target for earnings before interest, tax, depreciation and amortization of 1.4 billion euros.

Italy’s government in August raised a tax on power producer’s profits, known as the Robin Hood Tax, by 4 percentage points to shore up its finances. Renewable energy companies like Enel Green suffered from a 40 percent drop in the spot price of solar panels, according to Bloomberg New Energy Finance data.

Sales fell 3 percent to 525 million euros on lower margins from solar panel sales, the company said.

Net installed capacity climbed 6.4 percent in the first nine months of the year to 388 megawatts, mainly from wind sources, according to the statement. Investment in the same period increased 72 percent to 1 billion euros.

Enel Green rose 0.7 percent to 1.679 euros as of 4:30 p.m. local time. The shares are up 4.9 percent since they first started trading a year ago.

To contact the reporter on this story: Alessandra Migliaccio in Rome at amigliaccio@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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