Enel closes i first nine months of 2024 confirming the good performance of the first half of the year, with a strong growth of the margini and to the to evaluate, While revenues slow. Less than two weeks from the Capital Markets Day on November 18th in Milan, during which the group led by Flavio Cattaneo will reveal its updated plans for 2026, the energy giant presents its quarterly accounts to the market.
Enel's numbers for the first nine months of 2024
In the first nine months of 2024, the revenues Enel's net sales amounted to 57,6 billion euros, down 17,1% compared to the same period of the previous year. This reduction was due to lower sales of electricity and gas and a reduction in energy prices, partially offset by the good performance of renewable energy and distribution networks.
On the front ordinary EBITDA, the performance was more than positive, with a result of 17,4 million euros (+6,5% compared to the 9 months of 2023). Mainly due to the strong push of renewables, which thanks to the stability of raw material prices and the abundance of resources, balanced the contraction in the thermoelectric sector (gas and coal power plants). Distribution networks also contributed positively.
Also 'Total EBITDA grows robustly, reaching 18,6 million euros, with an increase of 22,2% compared to 15,2 million euros in the previous year.
The company also makes double-digit progressordinary net profit of the group, at 5,8 billion euros, with a jump of 16,2%, also thanks to a reduction in financial costs – supported by “a lower debt thanks to the collection of M&A agreements in the second quarter and a solid cash generation”, as underlined by the CFO Stefano De Angelis during the call with analysts on the occasion of the publication of the third quarter 2024 results – and lower interest expenses.
Enel further reduces debt
Good news also regarding the debt: Enel has reduced net debt at 58,1 billion euros (-3,3%, from over 60 billion at the end of 2023). Thanks to the cash flows generated and the sale of non-strategic assets, the Group was able to cover both new investments and dividends, thus maintaining a debt/EBITDA ratio lower than the sector average. This ratio is expected to be around 2,4x by the end of the year. “We have laid the foundations for long-term growth and the performance so far allows us to confirm the guidance for 2024, having high visibility for the rest of the year,” declared Enel’s CFO during the call with analysts. In detail, the group expects ordinary EBITDA for the full year between 22,1 and 22,8 billion euros and ordinary net income between 6,6 and 6,8 billion euros. Furthermore, Enel ha invested 4,2 billion euros (+11,7%) for Strengthen the networks.
2024 will also mark the Conclusion of Enel's divestment plan, which by the end of the year will have reduced its net financial debt by over 11,5 billion euros, also thanks to the two operations still in progress: the sale of 49,99% of Egpe Solar in Spain and 90% of the vehicle company Duereti to the A2a group.
Enel rewards shareholders with an interim dividend for 2024
Enel has also approved a 2024 interim dividend of 0,215 euros per share, What will be Paid on January 22, 2025. This amount, equal to that distributed in January 2024, represents the first tranche of the dividend. With a closing price of Enel shares on November 6, 2024 of 6,815 euros, the yield of the interim dividend is 3,15%. The dividend policy, an integral part of the 2024-2026 Strategic Plan, provides for a minimum dividend of 2024 euros per share for the 0,43 financial year, with a possible increase of up to 70% of ordinary net income, if the cash generation and capital strength objectives are achieved
The words of CFO Stefano De Angelis
Commenting on the results, Stefano De Angelis, CFO of Enel, said: “In the nine months of 2024, we delivered solid results, driven by the resilience and geographical balance of our asset portfolio and by a stronger presence in advocacy initiatives in Latin America. I would also like to highlight how the completion of the Divestment Plan by the end of the year allows us to forecast a net financial debt to EBITDA ratio of approximately 2024x for 2,4, which is below the sector average. All of this, together with the Group’s constant commitment to financial discipline and operational excellence, represents the basis for future, sustainable and long-lasting growth, for the benefit of our stakeholders. The performance of the period and the visibility on the evolution of the business also in the final part of the year therefore allow us to confirm for 2024 the guidance on ordinary EBITDA and ordinary net profit provided to the markets in 2023.”
The CFO also highlighted during the conference call that “60% of the 2026 efficiency targets have already been achieved”, thanks to a careful spending review that saw the optimization of internal and external resources, even outside the core business.
About M&A operations, De Angelis reassured that “they are progressing without any sign of delay from the authorities”. And looking ahead, he invited investors to follow the Capital Markets Day on November 18, where new financial targets will be revealed, including details on remuneration and dividend policy, along with an update on Enel’s overall strategy.
