Endesa boosts Q1 profit by 133% on extraordinary items

Spanish power utility Endesa SA (BME:ELE) recorded net profit growth of 133% year-on-year to reach EUR 844 million (USD 914.5m) in the first quarter of 2020, after collecting EUR 267 million in extraordinary earnings from commitments in the new collective bargaining agreement and workforce restructuring plans.

In like-for-like terms, net profit rose by 59% to EUR 577 million.

Similarly, provisions in the collective agreement boosted earnings before interest, taxes, depreciation and amortisation (EBITDA) by 59% to total EUR 1.48 billion. Ordinary EBITDA climbed 21% to EUR 1.12 billion which Endesa attributed to its solid performance in the free market and stability in the regulated business.

Other details on Endesa’s financial results in the first quarter are given below:

During the first three months of the year, Endesa faced lower demand for electricity in mainland Spain and extra-peninsular territories, which further dropped with the declaration of the state of emergency over the COVID-19 pandemic in the second half of March. Nevertheless, the pandemic did not have a material impact on profit or loss for the trimester, Endesa noted.

The company’s power plants in the whole of Spain registered 15,143 GWh of total gross production, down by 11% year-on-year. Renewables, which Endesa only has on the mainland, increased production by 44% to 3,737 GWh, while coal-fired plants operated at a minimum.

Endesa CEO Jose Bogas highlighted that the good first-quarter results will help the company face the impact of the COVID-19 crisis through the next three months. Endesa has resumed construction on all of its renewable energy projects and is considering speeding up its investment plan, particularly in wind and solar, to help reactivate the economy, Bogas said.

(EUR 1.0 = USD 1.08)

Choose your newsletter by Renewables Now. Join for free!