The energy company with a broad footprint in traditional and renewable electricity generation reported a strong year start, with the gross operating result rising by about 60 percent to 1.462 billion. The improvement reflects a steady rebound in electricity generation across the portfolio and a normalization of marketing activity following the energy crisis last year. Total revenue for the first quarter declined slightly, by 1.2 percent, to 7.504 billion.
Endesa also announced a charge of 208 million euros tied to a new tax on large government-approved energy companies that tax total income at 1.2 percent. The company is challenging this levy in the courts and, as a result, its effective tax rate climbed to 31 percent in the quarter, versus an estimated 25 percent without the tax.
Endesa reaffirmed its 2023 financial targets, aiming for EBITDA in a range of 4.4 to 4.7 billion euros and ordinary net profit between 1.4 and 1.5 billion euros.
All electricity sold
The group’s renewable generation, including hydro, solar, and wind, rose by 32 percent versus the first quarter of 2022. When combined with nuclear generation, it contributed to a share of 83 percent of Iberia’s electricity output without greenhouse gas emissions. Over the last year, the utility added nearly 900 megawatts of new renewable capacity, reaching 9,300 MW by the end of March, up 10 percent year over year.
The company noted that it had already sold 100 percent of its own generation in 2023 and approximately 87 percent of its generation in 2024, at a price of 65 euros per megawatt-hour. Government regulations set a ceiling at 67 euros per MWh for electricity purchase and sale contracts through year-end. (Attribution: Endesa quarterly report)