The company maintains its targets for the whole year, although the result is fundamentally improving until September thanks to the capital gains generated by the sale of the electric mobility business
Endesa realized a net profit of 1,651 million euros until September, an increase of 13% compared to the same period last year. This advance is explained by the extraordinary income from the sale of half of its electric mobility activities to its own parent company, the Italian Enel, last April. Excluding these capital gains, the result improved by 0.7% in a context characterized by high price volatility. With these numbers on the table, and despite the context, Endesa has reaffirmed its target of closing the year with an ordinary net income of 1,800 million.
Excluding these cyclical elements for the April operation, Endesa’s operating profit (Ebitda) amounted to 3,472 million, up 11%, thanks to the good performance of the power generation business, which has enabled it to cope with the adverse market conditions. In fact, the deregulated company advances 38% to 2,340 million.
The electricity company has acknowledged that this growth in the gross margin of the liberalized companies has made it possible to compensate for the decrease in the result of the regulated distribution activity (the remuneration of which is fixed by law), which was mainly influenced by the update of the fees from the period 2017-2019, negative settlements from previous years and an increase in fixed costs of 56 million euros. In total, the Ebitda of the network activities decreased by 21% to 1,132 million euros.
Endesa estimates that the average electricity price in the Iberian wholesale market rose by 137% year-on-year from January to September to reach 186 euros per megawatt hour (MWh), the year with the highest prices in history. Endesa’s CEO, José Bogas, emphasized that in this difficult situation, “the solid performance” of the deregulated activities of the group “is a clear example of how the vertically integrated business model allows us to overcome difficulties.”
With regard to the promotion of its renewable energy sources, the energy company has continued to develop its portfolio and has already added 8,500 ‘green’ megawatts (MW), 10% more than at the end of the first half of last year, on a production park totaling 16,900 MW in the Iberian Peninsula. The portfolio of renewable projects exceeds 80,000 MW. All new clean power for 2022 is either operational or in progress, and 65% of all new renewable energy planned by the end of 2024, when the current strategic plan expires, will be channeled at the end of September, Endesa added.
In addition, after winning the fair transition tender in Pego (Portugal) in the first half of the year, the company obtained the preliminary award of 953 MW of the 1,200 MW in the fair transition tender in Andorra (Teruel) and has already extensive project to achieve the total of that strength.
In terms of commercial evolution, it records a net profit of 1.2 million domestic and commercial electricity customers in the free market compared to September 2021, reaching 6.8 million. As a result, the total number of customers grew by 4% to 10.6 million. Meanwhile, the network of charging stations for electric vehicles deployed by Endesa has already reached 12,000 at the end of September, 43% more year on year.
The investment made by the energy company in the first nine months amounted to 1,477 million euros, 20% more, of which 73% is for renewable energy sources and the distribution network.
On the other hand, Endesa will hold an extraordinary shareholders’ meeting on November 17 to approve several operations with parent company Enel to strengthen its position in the international gas markets, as well as to strengthen its position in the face of new peaks of extreme volatility.
In this regard, Bogas believed that these preventive operational and financial measures to be taken during the meeting will provide the group “the necessary flexibility in the event that new situations of extreme volatility in the energy markets arise in the short term”. “All this within the usual framework of conducting related operations with our parent company Enel,” he said.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
