Results

The following table summarizes the performance of Enel SpA in 2009 and 2008:

Revenues from sales and services totaled €693.0 million (€709.5 million in 2009) and regard:

• revenues from electricity sales of €329.1 million (€392.0 million in 2008), mainly attributable to sales of imported electricity to the Single Buyer in the amount of €328.0 million in 2009, compared with €386.7 million in 2008;
• revenues from services of €363.9 million (€317.5 million in 2008), essentially in respect of assistance and consulting services provided to Group companies (€363.1 million in 2009, compared with €317.3 million in 2008).

The decrease of €62.9 million in revenues from electricity sales compared with 2008 was mainly due to the decrease in the average price of electricity sales to the Single Buyer.

The increase of €46.4 million in revenues from services on the previous year is largely due to increased charges passed through to Enel Energy Europe SL (€48.9 million) in connection with the acquisition, completed on June 25, 2009, of an additional 25.01% of Endesa from Acciona.

Other revenues came to €13.3 million, a decline of €11.5 million on 2008, largely attributable to lower revenues from seconded personnel and smaller receipts on the disposal of equity investments.

Cost for electricity purchases and consumables came to €316.7 million, of which €313.4 million for the purchase of 5,256 million kWh of electricity. The decrease of €32.5 million compared with the previous year is essentially due to the “Settlement Agreement” with Atel, which involved the recognition in 2009 of income in the amount of €4.1 million, compared with charges of €25.7 million in 2008.

Costs for services, leases and rentalsamounted to €308.2 million, of which charges from third parties in the amount of €240.8 million and from Group companies in the amount of €67.4 million. The services provided by third parties mainly regard promotional activities, advertising and printing, corporate acquisitions and sundry technical and professional services. Those provided by Group companies regard IT and administrative services, facility management services and purchasing as well as rentals, mainly provided by Enel Servizi. The overall increase of €19.7 million compared with 2008 is mainly attributable to the net effect of increased costs incurred for international acquisitions, increased spending for the organization of conferences and meetings by Enel SpA and lower fees paid to the Energy Services Operator and the Energy Markets Operator (ESO - EMO) as a result of the partial reimbursement of congestion fees by the ESO for the period April 1, 2004 - December 31, 2004.

Personnel costs totaled €97.2 million and regarded an average workforce of 719 (714 in 2008). The total was down €7.6 million, mainly attributable to the decline in the average number of senior managers (down 14 on 2008), partially offset by an increase in the average number of office workers (up 22 compared with 2008).

Other operating expensesamounted to €11.5 million, adecrease of €41.2 million compared with the previous year, essentially due to the reversal to income of excess provisions for risks and charges for litigation as well as the recognition by the ESO of the guarantees of origin issued in France for electricity generated from renewables and imported into Italy in 2005, with the consequent reimbursement of green certificates acquired by Enel SpA.

The gross operating margin came to a negative€27.3 million, an improvement of €33.6 million on 2008.

Depreciation, amortization and impairment lossescame to €8.7 million, of which depreciation of property, plant and equipment of €1.9 million and amortization of intangible assets of €6.8 million. In 2008, impairment losses of €6.2 million had been recognized.

Operating income amounted to a negative €36.0 million, an improvement of €40.3 million on the previous year, mainly attributable to the improvement in the gross operating margin and the absence of impairment losses in 2009.

Income from equity investments amounted to €4,481.8 (€3,187.2 million in 2008). The item regards dividends approved in 2009 by subsidiaries in the amount of €4,464.4 million and other equity investments in the amount of €17.4 million, of which €17.3 million earned and approved by Terna SpA.

Net financial expense totaled €1,282.0 million, an increase of €814.0 million compared with the previous year. This was connected with a decline in interest income from Enel Energy Europe as a result of the decrease in the average creditor balance on the intercompany current account, mainly attributable to the recapitalization of the subsidiary with the waiver of part of Enel SpA’s receivable in respect of that account. This effect was partially offset by the decline in interest expense and other charges on financial debt, mainly attributable to the broad decline in interest rates and a decrease in average long-term debt for the year.

Income taxes showed a tax credit of €296.6 million, associated with the balance of the income and expense items relevant for tax purposes, an increase of €195.7 million compared with the previous year, which essentially reflects the increased deductibility of the interest expense transferred by Enel SpA under the Group consolidated taxation system.

The effective tax rate on pre-tax income was a negative 9.4% in 2009, compared with a negative 3.8% in 2008.

Net incomeamounted to €3,460.4 million, compared with €2,743.8 million in 2008.