Endesa earns 31% less until March due to outstanding items but maintains its forecasts

Endesa announced a net profit of 338 million euros in the first quarterwhat does it represent 31.2% decrease compared to the same period of the previous year (491 million euros), due to the extraordinary effects of a decision in favor of CO2 rights. Without them, the company would have earned 297 million euros in the first quarter of last year, ie 14% growth in the first three months of this year. Therefore, the electricity company led by José Bogas confirmed its year-end targets despite the volatility of the electricity sector: 1,800 million net results and 4,100 million EBITDA.

As the company explains, The net ordinary result for the period January-March 2021 included a positive net impact of €194 million. In the amount of internalization of carbon dioxide (CO2) emission rights allocated free of charge by the National Emissions Rights Allocation Plan (PNA), Endesa had no statutory duty to endure, corresponding to its right to be compensated as a producer company for the reduction in its fee.

Regarding income, Endesa invoiced 7,596 million Euros in the first quarter, 59.1% more than a year ago (4,774 million euros); operating costs rose 70.9% to € 7,107 million (this figure includes a 213% increase in energy purchase prices in the wholesale market). Electricity sales increased 57.7% to reach 5.264 million. Of this figure, 3,029 million corresponded to sales in the Spanish liberal market, an increase of 62.2% compared to the same period of 2021, while 961 million correspond to sales at a regulated price, 77% more. Gas sales, on the other hand, increased 138.6% to 1.596 million.

On your own behalf The gross operating result (Ebitda) at the end of March was €914 million, down 10% from the same period in 2021.. However, it was again affected by the extraordinary results of last year (€188 million from a court decision on CO2 rights). Ignoring this unusual result, Ebitda would grow 10%.

The “complex situation in the raw material markets and the increase in regulatory items pending collection” adversely affected the working capital needed to finance the company’s operations. This has placed negative cash flow from operations per 476 million. Coverage of this negative cash flow, 533 million paid investments over the period and 529 million dividend payments supported net debt increase to 10,334 million at the end of the quarter. The cost of the liability is, in any case, at the historical minimum of 1%, half a percentage point below what was reported at the end of 2021.

Russia-Ukraine conflict

This beginning of the year, tall raw material pricesespecially natural gas (Average 350% more expensive than in the first quarter of 2021), increase in prices According to the company, wholesale electricity markets average 229 euros in Spain (232 euros in France, 249 euros in Italy or 238 euros in the UK) between January and March. At the end of March, the company claims it has sold 100% of its own energy (nuclear, hydroelectric and unregulated renewable) for this year and 82% for 2023.

He adds, however, that the company’s number of customers in the Iberian market (Spain and Portugal) has increased by 13% in the free market over the past twelve months, adding 800,000 new users to a total of 6.4 million.

However, Endesa points out that it “does not have counterparts that are likely to be affected by the sanctions and that it does not have formal contracts for it.” gas supply with Russia thus secures Endesa’s gas supply and its effects on nuclear fuel supply orders from Russia from 2024, although indirectly through Empresa Nacional del Uranio, SA (ENUSA) that company forwards production orders to other countries is analyzing. suppliers”.

renewable power

On the other hand, 90% of the renewable energy the power company hopes to commission in 2022 is already in operation or application and 70% is planned for 2023. execution ) renewable energy (half of the target included in the 2022-2024 strategic plan) and 8,000 MW in a state of advanced administrative processing. TAll this in Spain and Portugal.

In this first quarter, two relevant milestones were recorded in Portugal in terms of new renewable capacity. The first is the award of the Pego fair pass tender, which was held in the Iberian Peninsula and which Endesa will undertake with an investment of 600 million to jointly install 365MW photovoltaic, 264MW wind and 168MW batteries. To a 500kW electrolyzer to produce green hydrogen “to take advantage of some of the capacity to connect to the electricity grid after the Pego coal plant was shut down last November”. The second milestone is Endesa’s first floating photovoltaic project to install 43.5MW hybridized with 48MW of wind and 48MW batteries in the Alto Rabagão reservoir.

Source: Informacion

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