Posted By Uma Rajagopal
Posted on November 7, 2024
By Francesca Landini
MILAN (Reuters) -Italy’s biggest utility Enel said on Wednesday its nine-month core profit rose 6.5% year on year, on the back of strong renewable power production, which more than compensated a fall in retail energy prices in its home country.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) excluding extraordinary items came in at 17.45 billion euros ($18.72 billion), above a consensus of 17.3 billion euros compiled by Reuters.
Ordinary net income was 5.8 billion euros in the period, beating an estimate of 5.7 billion euros.
Enel confirmed its expectations for the full-year 2024 and said it would disclose its updated strategy, including the 2024 dividend, at its capital markets day on Nov. 18.
Net financial debt stood at 58.2 billion euros at the end of September, down from 60.2 billion euros in December 2023.
The completion of the disposal plan by the end of the year allows us to foresee a net debt to EBITDA ratio of around 2.4 in 2024, which is a value lower than the sector average,” Enel Chief Financial Officer Stefano De Angelis said.
The normalisation of gas and electricity prices in Italy after last year’s peak resulted in a 12% annual fall in the ordinary EBITDA for the end-user markets division, while the core profit of the renewable business rose 53% and the grid business was almost flat.
The group added more than 1 million customers in its home country this year when it won an auction to supply electricity under a partially regulated framework until end-March 2027.
“We will try to shift these new customers to the free market and offer them a range of products and services,” De Angelis told an analyst conference call.
In late 2022 the state-controlled group launched a disposal plan to reduce debt by focusing its activity on six core countries – Italy, Spain, the United States, Brazil, Chile and Colombia.
Under new CEO Flavio Cattaneo, who took the helm last year, Enel confirmed the intention to streamline its portfolio and also introduced a more selective approach on investments on renewables and a preference for capital expenditure in Italy.
($1 = 0.9321 euros)
(Reporting by Francesca LandiniEditing by Keith Weir)
