By September, Endesa reported an operating climate that reflected tighter margins and the usual seasonal dynamics in a year marked by lower gains from asset sales and higher depreciation and provisions. Net ordinary income remained the basis for dividend decisions, standing at 1,059 million euros, yet signaling a downward trend of about 28 percent from the prior year when the company recognized a non-recurring gain from selling its electric mobility business for 182 million euros. Alongside this, depreciation and impairment provisions rose by 128 million compared with 2022, and energy taxes contributed an additional 208 million, contributing to a softer bottom line despite a stable dividend policy.
Beyond sector-wide taxes on energy firms, Endesa benefited from a favorable 2022 social bond financing decision, which added 152 million to liquidity considerations and altered subsequent adjustments to a net negative impact of 364 million. Operationally, the year so far has shown a split between positive and negative sources of earnings. Positive contributions came from traditional business lines such as energy supply and services generation, including a robust 230 million from core operations, 280 million from renewables, and 473 million from energy sales and related services. In contrast, the conventional generation business contributed negatively by 738 million, with volatility in gas markets and some non-recurring effects impacting the third quarter.
On a nine-month basis, Endesa achieved EBITDA of 3,353 million euros, a figure that represents a 3 percent decrease when compared to the same window a year earlier, once similar terms are used. This decline follows the extraordinary gain realized from the 2022 sale of 51 percent of the electric mobility business, which skewed year-on-year profitability. Net profit declined by 22 percent to 19,211 million euros in the current period, reflecting the mix of mature asset performance, strategic investments, and market volatility.
From an investment perspective, capital expenditure rose modestly by 2 percent to 1,509 million euros by September. Network assets accounted for roughly 40 percent of the total, while renewables represented about 36 percent, underscoring the company’s continued emphasis on energy transition. These two areas absorbed three quarters of Endesa’s total investment during the period.
Cash generation remained strong within the period, totaling 2,839 million euros, with a closing net debt position of 11.6 billion euros, up about 6 percent from year-end 2022 due largely to ongoing dividend payments and investment activity. This dynamic highlights the company’s balance between maintaining financial flexibility and funding strategic growth in a challenging energy market.
more customers
Endesa ended September with a relatively stable customer base, totaling about 10.5 million electricity customers in Spain. This reflects the solid growth achieved in the previous year. Of this total, roughly 6.9 million customers operate in the free market, up about 1 percent year over year, while about 3.7 million customers stay on the regulated market, a decline of around 3 percent.
The company has targeted a gradual shift away from owned electricity production, aiming to sell 100 percent of its generation capacity by 2023 and approximately 91 percent by 2024, locked in by regulatory pricing of 65 euros per megawatt-hour under current rules.
Gas market activity showed a softer trajectory, with total gas marketed down about 8 percent to 70 terawatt-hours. This reduction came despite a notable drop in consumption for combined-cycle power plants and a shift in usage patterns toward industrial and domestic customers. In practice, Endesa has already committed to selling 98 percent of its 2023 gas purchases and 73 percent of its 2024 gas purchases. The customer base remains steady at around 1.8 million.