Italian energy giant Enel reported a 64.9% surge in net profit to €4.1 billion in the first half of the year, despite falling electricity and gas prices. On Thursday, the company reaffirmed its full-year targets.
Adjusted Net Profit and Revenue
Excluding one-off items, the group’s net profit reached €3.9 billion, marking a 20.6% increase, according to a company statement. Conversely, Enel’s revenue dropped by 17.8% to €38.7 billion, attributed to “lower prices” and a “decrease in energy volumes sold on the markets.”
The decline in sales of energy generated from thermoelectric sources was “partially offset” by “increased revenue” from renewable energy sources, Enel explained.
CEO’s Comments on Strategic Plan
CEO Flavio Cattaneo commented on the results, stating, “We have achieved excellent results, thanks to significant organic growth driven by the rigorous execution of our strategic plan.”
The group reaffirmed its targets for the year, including an adjusted net profit of €6.6 to €6.8 billion and an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of €22.1 to €22.8 billion.
Anticipating results at the “upper end of the range” of forecasts, Enel plans to pay its shareholders “a dividend higher than the minimum set at €0.43 per share.”
EBITDA and Debt Reduction
Adjusted EBITDA increased by 8.8% to €11.7 billion in the first half. Enel’s net debt decreased by 4.6% to €57.4 billion during the period and would further reduce to €55 billion if pending asset sales are considered, according to Mr. Cattaneo.
To reduce its debt, Enel has planned asset sales totaling €21 billion as part of its 2023-2025 strategic plan.
Recent Divestment in Spanish Solar Assets
In the latest divestment, Enel announced on Thursday the sale of 49.99% of EGPE Solar, which encompasses all photovoltaic assets of its subsidiary Endesa in Spain, to the Emirati renewable energy company Masdar.
The transaction is valued at €817 million, and EGPE Solar’s enterprise value is estimated at €1.7 billion. Enel’s renewable energy production now accounts for 69.9% of its total, compared to 17.4% from thermal sources and 12.7% from nuclear.