While the tech and luxury sectors are experiencing difficulties in the balance sheets of the second quarter of this year, Enel and Eni show positive results. For Enel margins have grown in double digits thanks to networks and renewables, even if revenues have slowed down, but above all the divestment plan is being completed which, together with organic growth, allows for the reduction of financial debt.
In the first half of 2024 the group led by CEO Flavio Cattaneo saw revenues down 17,8% year-on-year to 38,7 billion euros. There are two causes behind the decrease: decreasing energy prices and lower volumes of energy produced from thermoelectric sources. But what surprised analysts was the group net result, increased by almost 65% to 4,144 billion, while the Net income Ordinary è raised by 20% to touch the 4 billion of Euro. It grows EBITDA is also double digit normal, with a +32,9% to 12,8 billion, thanks to the push of renewables and distribution networks. Furthermore, it should be noted that in the first half of the year, zero-emission generation grew by 11%, now accounting for 84% of the total.
Il title in Piazza Affari it was down 0,44% at mid-session to 6,63 euros, in a Mib that lost 0,09%. In the last month the stock has gained just over 1%, in six months 5,6%.
Debt falls below 60 billion
Net financial debt fell by 4,6% to 57,4 billion euros from over 60 billion at the end of 2023, thanks to the cash flows generated by operation management and from the collection of proceeds deriving from the programmes asset sales deemed secondary. The two factors more than compensated for the needs generated by the investments of the period and the payment of dividends. “During the first half of 2024 we achieved excellent results, driven by a significant organic growth achieved through the rigorous execution of the pillars of our strategic plan,” he underlines Cattaneo. “The managerial actions taken have already allowed us to restore a solid generation of operating cash flows and to reduce thefinancial debt to around 55 billion euros, if we also consider the operations currently being finalized and already announced to the market, thus reaching a level of leverage among the lowest in the entire sector".
Cattaneo: “For 2024 we are at the top of the guidance”
The targets set for 2024 are confirmed. “The results achieved and the visibility of the next semester project us into the high end of the guidance range communicated to the markets, which "also in compliance with the achievement of cash neutrality, would allow us to provide a dividend higher than the fixed minimum of 0,43 euros per share” Cattaneo said again. The estimates indicated by the group for 2024 indicate an ordinary EBITDA of between 22,1 and 22,8 billion euros and an ordinary net profit of between 6,6 and 6,8 billion euros.
Enel Green Power España and Masdar: photovoting agreement worth over 800 million
Continuing its announced divestment policy, today Enel announced the agreement between Enel Green Power Spain e masdar for the sale to the latter of a minority stake, equal to 49,99% of the share capital, in Egpe Solar, the vehicle into which all the assets will flow PV already operational by Endesa in Spain, for a total installed capacity of approximately 2 GW.
Masdar will pay Enel a fee of 817 million euro for the acquisition of 49,99% of the share capital of Egpe Solar, based on an enterprise value of approximately 1,7 billion euros. The impact of the 2024 consolidated net financial debt will be equal to the amount of the sale, while no changes are expected on the economic results because, upon completion of the operation, Enel will continue to maintain control of Egpe Solar and consolidate it entirely, says a note .
A new buyback began on 2,9 million shares for approximately 19 million euros
Furthermore, again today, Enel announced that the board of directors has approved theinitiation of a buyback serving the 2024 long-term incentive plan. The program involves the purchase of 2,9 million treasury shares, equivalent to approximately 0,029% of Enel's capital. The potential outlay connected to the execution of the program, based on the closing price of the security on 24 July 2024, is equal to 19,2 million euro. Enel holds 10.085.106 treasury shares in its portfolio, equal to approximately 0,0992% of the capital.
Last June Enel received from'Moodys rating agency' a promotion, placing the company at the top of its ranking of Italian utilities, which are all investment grade. On that occasion the US rating agency confirmed the rating Baa1 and had improved the outlook from negative to stable, as Fitch and Standard & Poor's had already done. At the basis of the promotion, Moody's had cited the data that emerged today in the quarterly accounts: growing cash flows, the push of the new strategic plan, the quality of the credit and the divestment program now in its final stages. Enel is two notches above that of Italy (Baa3) even if it is a public subsidiary due to the 23,6% stake held by the Treasury, but, says Moody's, "it will not need extraordinary aid from the government". The group is also positioned in the high range among its European competitors, ahead of Eon, EDP, RWE, all Baa2 with a stable outlook, and on a par with Engie and Iberdrola, again according to Moody's assessments.
