Enel revealed first quarter 2024 results, highlighting a notable improvement in profitability despite a decrease in revenues. L'ordinary EBITDA increased by 11,6%, breaking through 6 billion euros, while theordinary net profit it jumped by 44,2% to 2,2 billion euros. The increase in earnings was mainly attributed to growth in renewable generation and cost optimization. However, i revenues they fell by 26,4% in the wake of the contraction in energy prices, the lower sale of energy on end markets and the downsizing of thermoelectric generation. Even if thedebt recorded a slight increase, the investments targeted and efficient management have ensured positive cash flows.
Il title Enel closed on a positive note: +0,96% at 6,51 euros per share, marking the sixth consecutive day of rise.
Enel's first quarter 2024 results
In the first quarter of 2024, Enel recorded revenues equal to 19.432 million euros. This decrease was mainly influenced by the decrease in revenues from thermoelectric generation, due to the constant decline in prices and lower production of thermoelectric energy, especially in Italy and Spain. Revenues from end markets were also hit by lower sales volumes, but were partially offset by increased sales in Latin America, especially in Colombia, Peru and Brazil. Ordinary EBITDA rose to 6,1 billion euros, driven by the operational management of integrated businesses, with Enel Green Power which has recorded significant growth in production from renewable sources. Also Enel Grids contributed positively, despite the sale of the distribution activities in Romania.
Il ordinary net income of the Group recorded a notable increase of 44,2%, reaching 2.180 million euros in the first quarter of 2024, thanks to positive operational management and optimized financial management.
However, it should be noted that thenet financial debt increased slightly compared to the end of 2023, reaching €60,7 billion. This increase, the group explains in a note, was mitigated by the positive cash flows generated by operational management, partially offsetting the needs generated by investments and the payment of the interim dividend relating to the 2023 financial year.
- investments in the first quarter of 2024 they amounted to 2.587 million euros, with a decrease of 10% compared to the same period of 2023. This reduction was driven by a better focus of investments, concentrating mainly on Enel Grids and Enel Green Power, in line with the priorities of the 2024-2026 Strategic Plan, and by the substantial completion of activities in battery energy storage systems.
Enel has also achieved the neutrality of Cash Flows in the first quarter of 2024, with cash generation substantially covering investments and dividends. Zero-emission production reached 82%, up from 70% in the first quarter of 2023.
Looking to the future, Enel confirmed the guidance provided to financial markets in November 2023, forecasting 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 for 2024. The politics of dividends provides a fixed minimum payment per share with the possibility of increasing up to 70% of the ordinary net profit. Investments will focus on strengthening distribution networks, renewable energy and active management of the customer portfolio.
The comment by CFO De Angelis
The CFO of Enel, Stephen DeAngelis, was confident in achieving its 2024 goals, including net debt reduction. “The solid results of the first quarter of 2024 confirm the effectiveness of the managerial actions undertaken with the 2024-2026 Strategic Plan, as well as the resilience of our business model in all the countries of presence – said the CFO -. Also in the coming months, Enel will continue to pursue a selective capital allocation with great discipline, maximizing management efficiency and effectiveness, as well as financial and environmental sustainability. We are therefore confident of achieving all our objectives for 2024, including the reduction of the group's net debt, which has already fallen to 54 billion euros today also considering the divestments now being finalized. The excellent performance of the first quarter also provides us with ample visibility on the confirmation of the shareholder remuneration policy presented at the Capital Markets Day in November 2023.”
