Italian energy giant Enel saw its net profit soar by 86.8% to €1.93 billion in the first quarter, despite the decline in electricity and gas prices.
This result, released on Thursday, exceeds the consensus of analysts from financial information provider Factset, who averaged €1.77 billion.
Excluding exceptional items, net profit stands at €2.18 billion, up by 44.2%.
The increase in net profit is “mainly attributable to the positive performance of ordinary operational activities and financial management optimization,” the group commented in a statement.
Enel’s revenue dropped by 26.4% to €19.4 billion, due to a “gradual decrease” in prices and “the decrease in the quantities of energy sold in the markets.”
The “strong” first-quarter results enable the group to be “confident in achieving all objectives for 2024, including debt reduction,” said Chief Financial Officer Stefano De Angelis.
Enel’s net debt increased by 0.9% to €60.6 billion during the quarter, but it is reduced to €54 billion when considering asset disposals currently being finalized, according to Mr. De Angelis.
The group confirmed its objectives for this year, namely a net profit excluding exceptional items of €6.6 to €6.8 billion and an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) between €22.1 and €22.8 billion.
Adjusted EBITDA increased by 11.6% to €6.09 billion in the first quarter.
Under the leadership of CEO Flavio Cattaneo, who took over from Francesco Starace in May 2023, Enel revised down its ambitions in renewable energies in its new strategic plan published in November.
The investments of the group, owned 23.6% by the Italian state, will now be “selective” and “retained only if they create value,” Mr. Cattaneo emphasized.
For the period 2024-2026, the group now plans to invest €12.1 billion in renewable energies, compared to €17 billion planned in the previous 2023-2025 plan.
Its renewable energy production now accounts for 67.2% of the total, with 19.3% from thermal sources and 13.5% from nuclear.