Endesa Reports Half-Year Net Profit and outlines FY Targets Amid Lower Wholesale Prices
Endesa posted a net profit of 800 million euros for the first half, representing a 9% decline versus the same period a year earlier. Still, the company reaffirmed its full-year objective of delivering between 1.6 and 1.7 billion euros, a level well above last year’s 951 million and below the 2.398 billion recorded during the extraordinary year influenced by the energy crisis and the Ukraine conflict.
The group set an EBITDA of 2,413 million euros, a slight 2.5% drop from the prior year, reflecting the normalization of conventional thermal generation (combined cycles). Growth in renewables, trading, and networks helped offset the decline. The company aims to finish the year with EBITDA between 4.9 and 5.2 billion euros, higher than last year’s 4.392 billion and just shy of 2022’s 5.327 billion.
Revenues for the January-to-June period reached 10,416 million euros, down 20.6% from 13,121 million in the first half of 2023.
This performance comes in a backdrop of lower wholesale prices, averaging 39 euros per megawatt-hour (MWh) versus 88 euros in the prior year’s first half, a 56% drop. The trend mirrors the Dutch natural gas price index (TTF), which averaged 29.5 euros per MWh, down 34%.
The ordinary net income for the group, the metric used to determine shareholder returns, totaled 772 million euros, a 12.2% decrease from 879 million euros in the same period of the previous year.
Sale of Solar Portfolio
The energy group expects to finalize, in the near term, the sale of a minority stake in its operating solar portfolio in Spain, a 2,000 MW fleet. Installed renewable capacity in the Iberian Peninsula has risen by 9% since mid-2023, reaching 10,100 MW.
Endesa ended June with 6.7 million customers in the liberalized market. Its strategy focuses on strengthening loyalty among the most valuable customers. The unit margin for liberalized electricity remained steady versus the first half of 2023 at 58 euros per MWh, with the annual average forecast around 54 euros, slightly higher than last year.
The company has already sold forward 98% of its expected production for this year, 94% for 2025, and 60% for 2026, helping to guard against market volatility.
In the gas division, reduced usage of combined cycles and softer overall demand contributed to a 20% drop in traded volumes, totaling 36 terawatt-hours (TWh), a 20% decrease from 2023.
Overall, the first half results illustrate Endesa’s drive to balance profitability with prudent risk management as wholesale markets remain unsettled and energy prices continue to fluctuate.
Note: All figures are presented under standard accounting practices and are subject to revision as the company completes its half-year review and audit process. Market commentary is based on internal forecasts and publicly disclosed guidance.