Enel S.p.A. Reports Impressive 52% Surge in Net Income for H1 2023

Enel S.p.A. Reports Impressive 52% Surge in Net Income for H1 2023

(IN BRIEF) Enel S.p.A., a multinational energy company, announced its financial results for the first half of 2023. The company showcased robust growth in key financial metrics, with revenues of 47,095 million euros (-28.2%) and ordinary EBITDA of 10,739 million euros (+29.4%). Net ordinary income surged to 3,279 million euros (+52.0%). Enel confirmed its guidance for 2023, projecting ordinary EBITDA between 20.4 and 21.0 billion euros and net ordinary income between 6.1 and 6.3 billion euros. The Company also emphasized its commitment to sustainable development and energy transition.

(PRESS RELEASE) ROME, 26-Jul-2023 — /EuropaWire/ — Enel S.p.A. (BIT: ENEL) (“Enel” or the “Company”), an Italian multinational manufacturer and distributor of electricity and gas, is pleased to announce its financial results for the first half of 2023, as examined and approved by the Board of Directors. The Company demonstrated robust growth in key financial metrics, showcasing its resilience and strategic execution during the period.

Financial Highlights:

1. Revenues: The Company reported revenues of 47,095 million euros for the first half of 2023, reflecting a decrease of 28.2% compared to the same period last year. The decline primarily resulted from lower commodity sale prices on end-user markets. Additionally, changes in the scope of consolidation impacted production volumes.
2. Ordinary EBITDA: Enel achieved an ordinary EBITDA of 10,739 million euros in the first half of 2023, a notable increase of 29.4% compared to the same period in 2022. The growth was mainly driven by the performance of the integrated business, which benefited from improved margins and Enel Grids’ positive results.
3. EBIT: The Company reported an EBIT of 6,125 million euros, indicating a significant increase of 35.4% compared to the first half of 2022. The rise is attributed to positive operational performance, reduced impairment losses, and lower writedowns of receivables, which offset higher depreciation and amortization expenses.
4. Group Net Ordinary Income: Enel’s net ordinary income for the first half of 2023 amounted to 3,279 million euros, showing a remarkable increase of 52.0% compared to the same period in 2022. The surge can be attributed to the positive performance of ordinary operations, which more than offset the rise in net financial expense.
5. Net Financial Debt: As of June 30th, 2023, the Company’s net financial debt reached 62,159 million euros, reflecting a modest increase of 3.5% compared to the end of 2022. The change mainly resulted from improved operating cash flow generation, partially offset by investments, dividend payments, and the solidarity contribution from the previous financial year.
6. Capital Expenditure: Enel’s capital expenditure amounted to 6,042 million euros in the first half of 2023, showcasing a slight increase of 2.6% compared to the same period in 2022. Investments were primarily focused on Enel Green Power for renewable capacity development and Enel Grids for distribution network development and resilience.
7. Guidance and Outlook: The Company reaffirms the guidance provided to the financial markets during the 2023-2025 Strategic Plan presentation. Enel expects ordinary EBITDA between 20.4 and 21.0 billion euros, net ordinary income between 6.1 and 6.3 billion euros, and an overall dividend of 0.43 euros per share for 2023. Net financial debt is projected to be between 51 and 52 billion euros at the end of 2023.

Operational Highlights:

1. Electricity and Gas Sales: Electricity sales in the first half of 2023 amounted to 149.5 TWh, a decrease of 8.0 TWh (-5.1%) compared to the same period in 2022. Natural gas sales stood at 5.0 billion cubic meters, down 18.0% compared to the first half of the previous year.
2. Total Net Efficient Installed Capacity: Enel’s total net efficient installed capacity reached 82.2 GW as of June 30th, 2023. This includes an increase in net renewable capacity (wind and solar) and a reduction in net efficient installed thermal capacity due to asset sales.
3. Electricity Generated: The net electricity generated by the Enel Group in the first half of 2023 totaled 102.0 TWh, reflecting a decrease of 13.5 TWh compared to the same period in 2022. Renewable sources contributed significantly to electricity generation, surpassing thermal generation.
4. Electricity Distributed: Electricity transported on Enel Group distribution networks in the first half of 2023 amounted to 239.6 TWh, with 103.1 TWh in Italy and 136.5 TWh abroad.

Outlook and Future Strategies:

Enel’s management reaffirms its commitment to a disciplined financial approach, focusing on value creation, risk optimization, and cost efficiency. The Company aims to simplify its structure, pursuing a leaner organization and a geographical focus on the six “core” countries identified in the 2023-2025 Strategic Plan.

In light of the strong performance in the first half of 2023, Enel remains confident in achieving its strategic goals. The Company confirms the guidance provided during the 2023-2025 Strategic Plan presentation, reflecting its commitment to sustainable development and energy transition.

Conference Call and Documentation:

A conference call to present the first-half 2023 results will be held at 6:00 p.m. CET on July 26th, 2023. The documentation related to the call will be available on Enel’s website in the “Investor” section. The accounting information in this press release has been verified by the external auditor.

For the full release, please download the PDF below:

Enel S.p.A. H1 2023 results

For more information, please visit: www.enel.com

About Enel S.p.A.:

Enel S.p.A. is a leading multinational energy company and one of the world’s largest integrated electricity and gas operators. With a commitment to sustainability and innovation, Enel is actively driving the transition towards a clean and sustainable energy future.

Media contacts:

Global News Media

T +39 06 8305 5699
ufficiostampa@enel.com
gnm@enel.com

Investor Relations

T +39 06 8305 7975
investor.relations@enel.com
enel.com

SOURCE: Enel S.p.A.