Italy's largest utility, Enel, reported a 6.5% increase in core profit for the first nine months of 2024, supported by robust growth in its renewable energy production, which offset declines in retail energy prices in its domestic market. Enel's earnings before interest, taxes, depreciation, and amortisation (EBITDA), excluding extraordinary items, reached 17.45 billion euros ($18.72 billion), surpassing market forecasts of 17.3 billion euros.
Ordinary net income for the period came in at 5.8 billion euros, exceeding estimates of 5.7 billion euros. Enel reaffirmed its full-year 2024 outlook and announced plans to reveal an updated strategy and 2024 dividend details at its upcoming capital markets day on November 18.
Net financial debt decreased to 58.2 billion euros as of the end of September, down from 60.2 billion euros in December 2023. Enel's Chief Financial Officer, Stefano De Angelis, indicated that the ongoing asset disposal plan, set to conclude by year-end, would further improve the company's debt metrics. “The completion of the disposal plan by the end of the year allows us to foresee a net debt to EBITDA ratio of around 2.4 in 2024, which is a value lower than the sector average,” he said.
The normalisation of gas and electricity prices in Italy led to a 12% annual decrease in EBITDA for Enel's end-user markets division, though core profit from the renewable energy segment surged by 53%, while the grid business remained stable. Enel also gained over one million new customers in Italy this year through a government auction, securing a partially regulated electricity supply contract until March 2027. The company plans to transition these customers to the free market, aiming to expand its product and service offerings.
Since late 2022, Enel has been implementing a debt-reduction plan focused on operations in six key countries: Italy, Spain, the United States, Brazil, Chile, and Colombia. Under CEO Flavio Cattaneo, who assumed leadership last year, the company has also adopted a more selective approach to investments in renewables, with a preference for capital expenditure within Italy.
