Endesa's net profit tumbles 26% in H1 2021

Panoramic view of La Vega I and La Vega II. Image source: Endesa (www.endesa.com)

July 27 (Renewables Now) - Spanish utility Endesa SA (BME:ELE) posted an ordinary net profit of EUR 832 million (USD 979.7m) for the first half of 2021, down by 26.2% year-on-year.

Expensive commodities, notably gas, coupled with a surge in the average price of CO2 emission rights doubled the price of electricity on the wholesale market, which sent Endesa’s EBITDA for the period down by 18.8% to EUR 1.88 billion, the utility highlighted.

The market volatility particularly affected the company’s deregulated businesses, generation and supply, Endesa said.

“The situation of the energy market in Spain, with the sharp increase in wholesale market prices, is not benefiting electricity companies such as Endesa, as we have sold energy to customers at prices lower than those set by the pool,” said CEO Jose Bogas.

In like-for-like terms, EBITDA was down by 4%, while net profit fell by 3% year-on-year.

Revenues rose by 15.6% to EUR 10.27 billion.

Other sales figures are presented in the table below:

In GWh H1 2021 Y/Y change:
Output 27,592 0.1%
Deregulated market sales 33,979 1.4%
Regulated market sales 5,441 -1.5%
Electricity distributed 64,191 9.2%
Gas sales 40,724 19.8%

Endesa maintains guidance for the full year, expecting EBITDA of EUR 4 billion and net ordinary profit of EUR 1.7 billion.

By the end of 2021, Endesa hopes to close all of its coal-fired power plants in mainland Spain, an action that it subject to authorisation.

It also expects to meet its renewables target of commissioning 700 MW of plants by the end of 2021. Endesa says it currently has 2,500 MW of wind and solar projects under construction and a renewables portfolio totalling 52,900 MW in the pipeline.

(EUR 1.0 = USD 1.178)

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Sladjana has significant experience as a Spain-focused business news reporter and is now diving deeper into the global renewable energy industry. She is the person to seek if you need information about Latin American renewables and the Spanish market.

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