Endesa cuts a 36% profit to September, to 1.059 billion, due to lower plus values ​​and 'impuestazo'

Confirms that you have your financial goals on track for the year.

Endesa cuts a 36% profit to September, to 1.059 billion, due to lower plus values ​​and 'impuestazo'

Confirms that you have your financial goals on track for the year


Endesa obtained a net profit of 1,059 million euros in the first nine months of the year, which represents a drop of 35.9% compared to the 1,651 million euros of the same period last year due to the lower presence of extraordinary items, since That last year the group recorded the capital gains from the partial sale of its electric mobility business to its parent company Enel, and the impact of the Government's special tax on energy companies, the company reported.

Without taking into account the extraordinary ones, the ordinary net profit of the energy company led by José Bogas would have fallen by 27.9% between January and September compared to the same period in 2022, to 1,059 million euros.

The ordinary net profit in this period was impacted by the drop in the gross operating result (Ebitda) and, to a greater extent, by higher amortizations, derived from the higher level of investment; higher financial costs, especially as a result of the rise in interest rates; and for a higher tax rate affected by the extraordinary tax approved in 2022.

Specifically, the company's Ebitda at the end of September stood at 3,353 million euros, 9.6% less than a year ago and 3% less in comparable terms.

Endesa indicated that its Ebitda was affected by the favorable ruling registered in 2022 on the financing of the social bond for 152 million and by the payment in this fiscal year 2023 of the extraordinary sales tax for a value of 208 million, which places the heading of structure and adjustments at -364 million.

At an operational level, the positive evolution of the group was based, on the one hand, on the positive results of the network businesses (230 million), renewables (280 million) and energy and services marketing (473 million); and, on the other, in the negative contribution of the conventional generation business (-738 million), mainly affected by the extreme volatility in the gas markets, with non-recurring effects that have impacted the third quarter.

With these results, the energy company highlighted that it has the financial objectives for the year on track, which include an Ebitda of between 4,400-4,700 million and a net profit of between 1,400-1,500 million euros, paying a dividend per share in the range of 1 euro.

For its part, the electricity company's income in these first nine months of 2023 suffered a decrease of 22%, reaching 19,211 million euros.

Meanwhile, investment rose 2% between January and September, in year-on-year terms, to 1,509 million euros. 76% was allocated to networks and renewables.

Regarding renewables, the group has 9,300 megawatts (MW) of this power (hydroelectric, solar and wind) in operation on the Peninsula, 800 MW more than a year ago.

Regarding the decarbonization path, the company placed production free of CO2 emissions in the Peninsula at 79% of the total, six points more than the same period of the previous year.

With regard to commercial activity, the group's free market customer base increased to 6.9 million - of the 10.5 million of its total electricity customers in Spain - and the percentage of electricity sales to fixed price covered with emission-free production reaches 73% -29.5 terawatts/hour (TWh) out of a total of 40.3 TWh-.

Likewise, the electricity company has already sold 100% of its own electricity production for 2023 and 91% for 2024, in both cases at a price of 65 euros/MWh, complying with the regulations in force.

In the gas business, it reduced the total volume sold by 8% to 70 TWh, due to substantially lower consumption in combined cycle plants and despite the increase in consumption by industrial and domestic customers. The company has already sold 98% of the gas it purchases for 2023 and 73% for 2024 and maintains its customer base stable at 1.8 million.

For its part, the network of charging points for electric vehicles has added 5,600 more in the last twelve months, reaching 17,600.

The normalization of market conditions places the companies' cash generation in the first three quarters at 2.8 billion euros, which is 2.3 billion more than in 2022.

Regarding net debt, it reaches 11.6 billion euros, which represents an increase of 6% compared to the end of 2022, due to the payment of dividends and the investments undertaken. Gross debt decreased by 24%, mainly due to the sharp reduction in collateral (-67%) that covers operations in international raw materials markets, up to 2,200 million.

The leverage ratio (net debt over Ebitda) stands at 2.2 times, from 2 times at the end of 2022. The cost of debt stands at 3%, stable compared to the end of the first half of the year.