Endesa reports drop in first-quarter profit

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Spanish utility Endesa, which is owned by Italian firm Enel, posted Tuesday a first-quarter net profit of 669 million euros, a 56.4 percent drop over the same time last year when its results were boosted by extraordinary items.

Sales rose 8.7 percent to 8.36 billion euros ($12.3 billion) due in part to higher prices for electricity, the Madrid-based company said in a statement.

Endesa, which in January hired former Spanish prime minister Jose Maria Aznar as an advisor, said its electricity production increased by 4.6 percent during the first three months of the year over the same time in 2010.

The company's results during the first quarter of last year were inflated by gains of 881 million euros from the transfer of its renewable-energy assets to Enel's Green Power unit.

Enel in 2007 bought the 25-percent stake in the firm which belonged to Spanish construction group Acciona, boosting its holding to 92 percent.

© 2011 AFP

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