Growing accounts and debt in first semester 2023 for Enel. The energy giant closed the first six months of 2023 with double-digit growth inUseful net ordinary value of 3,3 billion euro (+52%) and of theebitda, which rose to 10,7 billion euros (+29,4%), in both cases exceeding expectations. Down the turnover, to around 47 billion euros, 28,2% less than the 65,6 billion euros of the first half of 2022, while debt rose by 3,5% to over 62 billion. It is the effect of the progressive reduction in energy prices following the stabilization of the energy context, but also due to the lower volumes of energy produced. For 2023, Enel expects to close the year “with profits of between 6,1 and 6,3 billion euros and confirms a dividend of 0,43 euros per share, in line with what was announced in the 2023 strategic plan- 2025″. These are the main numbers of the mid-year balance sheet signed by the CEO Flavio Cattaneo, in office since last May, after nine years of management by Francesco Starace.
Enel: results for the first half of 2023
The electricity group closes the first half of 2023 with ordinary EBITDA growing to 10,7 billion euros (+29,4%), attributed to the results of the integrated business and the improvement results of Enel Grids, and net ordinary income of 3,3 billion euro (+52%), thanks to the positive performance of operations, which "more offset the increase in net financial charges, due to the increase in gross debt and the trend in interest rates compared to the first half of 2022, as well as the higher tax burden resulting from the improvement in operational management". Double-digit growth also for the EBIT, to 6,125 billion euro (+35,4%), driven by the positive trend of operating management, lower value adjustments and lower credit write-downs.
The group's net result closed at 2,5 billion euro (+48,5%).
The debt rises
Growing, as analysts expected, thenet financial debt to 62,159 billion euros (+3,5%). Net financial indebtedness as at 30 June rose from 60 to 62 billion (which, however, does not include the three deals in July), also due to the investments and the payment of dividends. Precisely in conjunction with the 2023 half-year report, Enel announced the sale of 50% of Enel Green Power Hellas, agreed with Macquarie Asset Management for a total consideration of approximately 345 million euros, equivalent to an enterprise value of approximately 980 million. The completion of the sale, expected by the last quarter of 2023, will give rise to a joint venture and will allow Enel to account for a reduction of 2023 million in debt in 345.
As far as the investments, in the first six months of 2023 Enel invested around 6 billion euros (+2,6%), mostly concentrated in Enel Green Power for the development of renewable capacity and in Enel Grids for the development and resilience of distribution networks.
Guidance and dividend at €0,43 confirmed
During the presentation of the results, the CEO Cattaneo confirmed the will to "further improve the allocation of capital by maximizing the return on investments, increase efficiencies and simplify the Group structure through the geographical focus on the six core countries (i.e. Italy, Spain, United States, Brazil, Chile and Colombia). In the meantime, “these actions, together with the results obtained in the period, allow us to confirm the guidance for the end of 2023, with the expectation of a dividend total of 0,43 euro per share for the current year”, the CEO then stated, announcing the new strategic plan for next November.
The guidance provided to the financial markets on the occasion of the presentation of the 2023-2025 Strategic Plan and reiterated also after the accounts for the first quarter of 2023, forecasts for the year 2023: an ordinary EBITDA between 20,4 and 21 billion euros, a net profit ordinary between 6,1 and 6,3 billion euros and a total dividend, in fact, equal to 0,43 euros per share. Net financial debt is expected to fall, between 51 and 52 billion euros, with an improvement in the group's credit profile and a net financial debt/EBITDA ratio down from 3,1 in 2022 to 2,4-2,5 in 2023.
Cattaneo: "Unfounded rumors about Endesa sale"
The CEO, commenting on the accounts with the analysts, has once again denied the rumors about the possible sale of the Iberian subsidiary Endesa, which in turn closed the first half of 2023 with strong growth. On the debt-cutting disposal plan, Cattaneo reiterated that he has already reached 50% of the targets set but that there is no hurry because "we are not rushing to sell but we will only sell at the right price".
