Italy's Sorgenia Nine-Month Profit Up More Than 10%

Italian power utility Sorgenia said Monday profits and sales rose more than 10% in the first nine months of the year as higher volumes offset lower prices.

Sorgenia, majority owned by the De Benedetti family through its CIR SpA (CIR.MI) holding company, had earnings before interest, taxes, depreciation and amortization, or Ebitda, of EUR107.7 million, up 11.6% from the same period a year ago.

Revenues gained 12.3% to EUR1.9 billion.

Contributions from its new Modugno power plant in Bari also helped boost earnings, Sorgenia said in a statement.

Profit more than doubled at the net level to EUR57.6 million because of a tax credit for investing in new production capacity.

Sorgenia, which has solar, wind and combined cycle production, counts Austrian utility Verbund AG (VER.VI) as its second-biggest shareholder.

Earlier Monday, Enel SpA (ENEL) began the initial public offering of its renewable energy unit, Enel Green Power, a much bigger rival to Sorgenia.

-Gilles Castonguay, Dow Jones Newswires; [phone]; [e-mail]