Endesa earned 292 million euros between January and March, 50.8% less than in the same period last year, “reflecting both the trend of decreasing EBITDA and the impact of the extraordinary tax of 1.2% on sales, not be deductible”, according to the information sent this Wednesday to the National Securities Market Commission.
In it, the company, owned by Enel, reports 5,547 million euros, 26.1% below the 7,504 million in the same period of the previous year. The gross operating result (ebitda) stood at 1,079 million, 26.2% less.
This data compares with a record ebitda in the first quarter of 2023, which is why the company considers that “in the evolution of ebitda, the normalization of the conventional generation business is observed, which includes both thermal production (gas) and the gas business, and the positive contribution of the rest of the business segments.”
Cash flow closed the quarter positive (167 million) despite the impact of the payment of the arbitration award on gas.
The company’s investment in the quarter remains stable compared to the previous year at 412 million, with 70% dedicated to networks and renewables, and reflects “a more selective approach in its investment policy”, which is now focused on networks, allocating 45% of the investments, compared to 26% that was allocated to renewables.
“Managing the situation of volatility in the market is key to the sustainability of our business and the recovery of the growth path. Our integrated strategy provides protection for our liberalized business, while consistently creating value for our shareholders. In the regulatory chapter, I would like to remind once again that fair remuneration is necessary for the electricity distribution business, which allows incentives for investments. Without well-sized and resilient networks, the energy transition will not be possible,” says José Bogas, CEO in the information sent to the market.
In the financial sphere, the quarter ended with a flow of 167 million, impacted by the arbitration award of its business in Qatar, without which this magnitude would have been 700 million euros. Net debt increased to 11.3 billion due to investments and the payment of the interim dividend. Gross debt remains stable at 13.8 billion. All of this allows Endesa to maintain a net debt to EBITDA ratio of 2.8 times compared to 2.4 in 2023 and a cash flow to net debt ratio of 44%.
On the commercial side, Endesa consolidates its client portfolio in the free market, which is close to 7 million, a market share close to 29%. Greater renewable production increased the percentage of fixed-price sales to customers covered by emission-free production by five points to 82%. In addition, the company has already sold in advance 95% of its own production for 2024, 86% of that of 2025 and 53% of that of 2026.
As for the gas business, it also registers a normalization compared to 2023 in a context of a 3.4% drop in demand in Spain (which includes a 22% drop in demand for thermal generation). “The strategy of selling the gas committed to suppliers in advance provides a comfortable position not only for the 2024 objectives, but also for the following years.”
