Renewable

November 4 (Renewables Now) - Spanish power utility Endesa SA (BME:ELE) closed the nine-month period of 2021 with an ordinary net profit of EUR 1.46 billion (USD 1.69bn), down by 14% year-on-year, it said.

The reported profit, also EUR 1.46 billion, is lower by 3.4% compared to the figure on the same bottom line a year ago.

The decrease reflects the negative impact of the surge in electricity prices, mainly on skyrocketing gas prices, and to a lesser extent, the impact of prices of CO2 emission rights, Endesa said.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) arrived at around EUR 3.13 billion, down by 0.4%, but like-for-like EBITDA rose by 4% year-on-year, Endesa said.

Revenues climbed by 43.6% to EUR 18.6 billion.

The utility said that the current situation on the electricity market is not favourable to its strategy and its income statement. As Endesa explained, all of its own base generation from hydroelectric, nuclear and non-regulated renewable energy plants is sold in advance to cover fixed-price contracts with industrial and residential customers at prices much lower than the current pool price.

Despite the adverse context, Endesa maintains its full-year financial objectives by betting on non-recurring items and ongoing management efforts, it said.

In the January-September period, Endesa produced a total of 42,581 GWh, up 1% on the year, in Spain. Its renewables -- hydro, wind, solar and others -- generated 9,523 GWh, down by 4% year-on-year.

As of the end of September, Endesa operates 7,790 MW of renewables in Spain. The company expects to end the year with additional 700 MW of renewable energy capacity online in line with its forecast for 2021.

(EUR 1.0 = USD 1.155)

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