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Spain's Union Fenosa power utility doubles fourth-quarter net profit

Spain's Union Fenosa power utility doubles fourth-quarter net profit

Spanish power utility Union Fenosa SA on Wednesday said fourth-quarter net profit more than doubled, boosted by gains from asset sales, and announced more divestments for this year.
Madrid-based Fenosa said net profit in the three months to the end of December rose to euro282.1 million (US$424.39 million) from euro131.5 million in the same period a year ago.
For the full year, net profit increased 55 percent to euro986.4 million (US$1.48 billion).
More than euro200 million (US$300 million) of the annual net profit came from divestments. Fenosa Chairman Pedro Lopez said the company was targeting a higher net profit this year, also including a sizable contribution of extraordinary gains on divestments.
He declined to provide additional detail on possible asset sales. Fenosa, notably, controls a 5 percent stake in Spanish oil company Compania Espanola de Petroleos SA, or Cepsa, which is worth some euro900 million (US$1.35 billion) at current market prices.
Antonio Lopez, analyst with Fortis Bank, said that annual results overall were in line with expectations, and Fenosa's domestic operations showed the best operating performance among Spanish utilities last year.
Lopez noted that, in an environment of low demand due to mild weather throughout the year, Fenosa's relatively cheap gas-fired power generation _ combined with solid results in power distribution _ gave it an advantage against bigger rivals like Endesa SA and Iberdrola SA.
Fourth-quarter sales jumped 16.5 percent to euro1.62 billion (US$2.44 billion) from euro1.39 billion.
Fenosa shares rose euro0.10 (US$.15), or 0.2 percent, to euro44.25 (US$66.57). They are down around 3 percent so far this year _ slightly outperforming Spain's benchmark index IBEX-35 _ supported by merger-and-acquisition speculation as part of the ongoing consolidation process in Spain's energy sector.


Updated : 2021-06-21 00:09 GMT+08:00