Endesa halves its profit in the first quarter
During the first quarter of 2024, Endesa experienced a significant reduction in its profits, reducing its net profit by 50.8% to reach 292 million euros. This decrease is attributed to the progressive normalization of the energy market after the exceptional circumstances of the previous year.
Key figures and factors
The electricity company’s income fell by 26.1% during this period, reaching 5,547 million euros. Likewise, gross operating profit (ebitda) decreased by 26%, standing at 1,079 million, compared to the record recorded in the same period of the previous year.
The evolution of EBITDA reflects the normalization of the conventional generation business, which includes thermal production (gas) and the gas business, as well as the positive contribution of other business segments.
Strategic approach and financial management
Endesa is adopting a more selective approach in its investment policy, maintaining them at 412 million euros. Of this amount, 45% was allocated to networks and 26% to renewable energies.
In addition, the company is in the final stage of the process of selling 49% of its portfolio of solar plants in operation, which will allow it to retain control over a strategic asset in its business model as a vertically integrated electricity company.
Net debt and future prospects
Endesa’s net debt increased almost 9% to reach 11.3 billion euros in March, explained by investments and the payment of the interim dividend of 0.5 euros gross per share, which represented a disbursement of 529 million.
The subsidiary of the Italian Enel, reaffirming its objectives for the year, calls for the improvement and updating of the regulation of the electricity distribution business to facilitate the Energy Transition.
The CEO, José Bogas, has highlighted the importance of the new National Energy Commission (CNE) in improving regulation, underlining its role in encouraging the transition towards a more sustainable energy model.
