UniCredit sees Enel Green Power H1 EBITDA rising 6% Y/Y

Aug 2, 2011 - UniCredit expects Italy's Enel Green Power (BIT:EGPW) to report later on Tuesday earnings before interest, tax, depreciation and amortisation (EBITDA) of EUR 730 million (USD 1.039bn) for the first half of 2011, up 6% on the year.
The expected rise is attributed to the consolidation of Spain's Endesa Cogeneracion y Renovables (ECYR) and to some non-recurring items for EUR 39 million. Excluding these factors, the EBITDA would be flat, due to the lower prices at which Enel Green Power sold its output in Italy in the first half, UniCredit said.
The bank forecasts earnings before interest and tax (EBIT) rising 10% on the year to EUR 457 million, and a net profit dropping 13% to EUR 221 million. Enel Green Power's net debt is seen at EUR 3.8 billion against investments of EUR 600 million.
Most of the questions at the conference call will concern the regulation risks if the Italian Government cuts all incentives by 30%, UniCredit said.
The bank's forecasts for the 2013 EBITDA are 5% below the company's guidance, due to more cautious projections on the capital expenditure (capex) and prices.
UniCredit has a "hold" rating and a EUR 1.90 share price target on Enel Green Power whose stock had lost 0.60% to EUR 1.663 at 1100 CET on the Milan market on Tuesday.

(EUR 1 = USD 1.424)

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