Enel management confirmed the financial targets for the 2024 financial year.
Is in the announced its financial results for the 1st quarter of 2024, a period which saw a decline in revenues and a strong improvement in profitability. Indebtedness is increasing.
The management of Enel has confirmed the financial targets for the 2024 financial year.
Enel, revenues and profitability in the 1st quarter of 2024
The electricity giant ended the period under review with revenues down by 26.4%: the electricity giant’s turnover went from 26.41 billion (revised figure) to 19.43 billion euros. Enel specified that the change is mainly attributable to the progressive decline in prices in the periods compared, to the lower quantities of energy sold on the end markets, as well as to the lesser use of generation from thermoelectric sources.
On the other hand, the ordinary gross operating margin, which rose from 5.46 billion to 6.09 billion euros (+11.6%). Enel reported that the increase is attributable to the positive contribution of the various business units and geographies. In particular, the positive results of the integrated businesses thanks to renewable generation, as well as the optimization of procurement costs which contributed to an improvement in sales margins. The performance of distribution network management activities was also positive – net of changes in the scope of consolidation.
L’ordinary net profit it grew by 44.2%, going from 1.51 billion to 2.18 billion euros. Enel’s management reported that the positive performance of ordinary operational management, the optimization of financial management and the lower incidence of minority interests on the ordinary net result more than compensated for the higher tax burden due to the improvement in economic results. L’Net income it stood at 1.93 billion.
Enel, the balance sheet situation at the end of March 2024
At the end of March 2024 thenet debt it had risen to 60.7 billion euros, compared to 60.16 billion at the beginning of the year. Enel reported that the positive cash flows generated by operational management partially offset the requirement generated by the investments of the period and by the payment of the interim dividend relating to the 2023 financial year, which took place in January 2024, and of the coupons to the holders of bond loans non-convertible subordinated perpetual hybrids, for a total of 2.4 billion euros. On the same date, the impact of net financial debt on total net assets, the so-called debt to equity ratio, was 1.26 (1.33 as of December 31, 2023).
For the entire quarter, Enel’s operating activities generated earnings for 4.64 billion euros, while investments amounted to 2.59 billion euros, a decrease of 286 million euros compared to the first three months of 2023 (-10%). The reduction compared to the 1st quarter of 2023 is attributable to a better focus of investments, in line with the priorities of the 2024-2026 Strategic Plan, and the substantial completion of activities in battery energy storage systems in Italy.
Enel, estimates for 2024
Enel’s management has confirmed the financial targets for the 2024 financial year.
The leaders of the electricity giant expect to close the current financial year with a gross operating margin of between 22.1 and 22.8 billion euros, while the ordinary net profit should be between 6.6 and 6.8 billion of Euro.
There dividend policy provides for a minimum fixed DPS (dividend per share) of 0.43 euros for the period 2024-2026, with a potential increase up to a payout of 70% on ordinary net profit if cash flow neutrality is achieved.
Between 2024 and 2026, Enel has planned total gross investments equal to approximately 35.8 billion euros.
