Endesa obtained a net profit of 292 million euros in the first quarter of the year, which represents a drop of 51% compared to the same period of the previous year, when it recorded positive impacts derived from the market context, the company reported.
The electricity company’s income reached 5,547 million euros in the period from January to March, with a decrease of 26% compared to the first three months of 2023.
The gross operating result (Ebitda) of the group led by José Bogas stood at 1,079 million euros, with a drop of 26% compared to the 1,462 million in 2023 – a historical record for Ebitda in a first quarter for Endesa.
Furthermore, in this first quarter Endesa already recorded the impact in its accounts of the Government’s extraordinary tax on energy companies, which for the entire year will cost the company some 202 million euros.
With these results until March, the energy company reaffirmed its commitment to the objectives announced for the year at the last Capital Markets Day, with a forecast of a net ordinary profit of between 1,600 and 1,700 million euros by 2024 and an Ebitda of 4,900-5,200 millions of euros.
Endesa’s cash flow closed the quarter positively, with a total of 167 million, despite the impact of the payment of the arbitration award that forced it to pay 530 million euros to Qatar for a review of the prices of gas supplies.
The company’s investment in the quarter remained stable compared to the previous year at 412 million, with 70% dedicated to networks and renewables.
For its part, Endesa’s net debt increased to 11.3 billion in March due to investments and the payment of the interim dividend. Gross debt remained stable at 13.8 billion.
This allows Endesa to maintain a ratio of net debt to Ebitda -2.8 times compared to 2.4 in 2023 – and cash flow to net debt of 44%.
90% of the group’s peninsular production was emissions-free, seven points more than in the first quarter of 2023, with renewable capacity reaching 10,000 megawatts (MW), after adding 700 MW in year-on-year terms.
IN “FINAL PHASE” OF THE SALE OF 49% OF THE SOLAR PORTFOLIO.
Likewise, the company indicated that it is in “the final phase” of the sale of 49% of the solar portfolio in operation, retaining control of a strategic asset for a vertically integrated electricity company.
The CEO of Endesa, José Bogas, considered that the management of the situation of volatility in the market “is key” for the sustainability of the business and the recovery of the growth path, for which he highlighted that the integrated strategy of group provides “protection” to its liberalized business, “while consistently creating value for shareholders.”
BOGAS INSISTS ON “FAIR” REMUNERATION FOR THE NETWORK BUSINESS.
Likewise, in the regulatory chapter, he insisted once again that “fair remuneration is necessary for the electricity distribution business, which allows incentives for investments.” “Without well-sized and resilient networks, the energy transition will not be possible,” he said.
Regarding the electricity market, Endesa highlighted that the normalization of its conditions has translated into a 53% reduction in the average price of electricity in the ‘pool’, up to 45 euros/MWh, including negative prices for the first time. time in history starting in April. However, he highlighted that the company’s futures and models point to an average price of 60 euros/MWh in the medium and long term.
Regarding commercial evolution, the group’s client portfolio in the free market is close to seven million, with a share of 29% in a situation of high competition.
Likewise, increased renewable production increased the percentage of fixed-price sales to customers covered by emission-free production by five points to 82%. In addition, the company has already sold in advance 95% of its own production for 2024, 86% of that of 2025 and 53% of that of 2026.
As for the gas business, it also recorded a normalization compared to 2023 in a context of a 3.4% drop in demand in Spain (which includes a 22% drop in demand for thermal generation). Endesa stated that the strategy of pre-selling gas committed to suppliers provides “a comfortable position not only for the 2024 objectives, but also for the following years.”
