Endesa earned 594 million euros first quarter of 2023, 76% more after paying 208 million for the new tax incentivized by the Government to tax the extraordinary profits of electricity companies. The fall in gas prices in recent months has allowed the company to take advantage of the normalization in the energy market. and partially explains the benefit of these first group results of the year, as analysts from the house of XTB explained in a report sent to the media. Another key explaining the group’s good performance is the positive development of its traditional and renewable generation business, which has grown by up to 32%. The network of charging points for electric vehicles also increased by 51% compared to the previous year, increasing the company’s profits. 83% of the electricity produced in the Iberian Peninsula produced no greenhouse gases and was produced based on the use of hydroelectric, solar and wind energy.
Endesa added around 900 MW of new renewable capacity in the last twelve monthsIt reaches 9,300 MW at the end of March. Of the 1,100 MW solar and wind power expected to be connected in 2023, 100% is already under construction. In addition, the company reached 6.8 million in the free market by gaining nearly 480 thousand electricity customers compared to the end of March 2022. As a result, sales to the domestic segment increased by 13%.
The investment made in the January-March period amounted to 409 million Euros, an increase of 2% compared to the same period of the previous year.. In addition, Endesa sold 100% of its own production (hydroelectric, nuclear and renewable) for 2023 and 87% for 2024 at a price of 65 euros megawatt-hours.
Losses due to illegal links
Finally, in the distribution business, Endesa managed to reduce the average downtime by 12% compared to the previous year, to 12.9 minutes. There has been a slight increase in losses due to illegal connections. power grid. The unit margin of the gas business was 6 Euro MWh and the client portfolio grew by 6% more than at the end of March 2022 to reach 1.8 million.
For XTB analysts, the company’s first quarter results are positive and point to a significant increase in net income and EBITDA compared to the same period of the previous year. In addition, the increase in renewable energy generation and the addition of new renewable capacity, the increase in customers and the increase in the network of charging points electric vehicles, as well as convenient management of the gas contract portfolio.
Moreover, the company sold 100% of its own production by 2023 and 87% by 2024suggests strong demand and a positive outlook for the future. Despite this, the share price in the market fell by about 1.5%. “Headings appear to have a ceiling price of 20.5 euros, which could increase the support price per book to 19.30 euros,” said analysts from the brokerage firm.