February 26 (Renewables Now) - Spanish power and gas utility Endesa SA (BME:ELE) reported today a 3% increase to EUR 1.56 billion (USD 1.7bn) in ordinary net profit for 2019 thanks to its activities in the liberalised market.
Extraordinary net profit plunged by 80% to EUR 176 million due to Endesa’s decision to close its coal-based power plants, and lower regulated remuneration rates for plants in Spain’s extra-peninsular territories in 2020-2025. Because of these the company recorded an impairment loss amounting to a total of EUR 1.87 billion.
Earnings before interest, tax, depreciation and amortisation (EDITDA) grew by 6% to EUR 3.84 billion, driven by sales to customers in the liberalised market.
EBITDA generated by Endesa’s renewables unit in Spain, Enel Green Power Espana (EGPE), reached EUR 223 million, increasing by 5.2% year-on-year. EBITDA of the regulated business, which represents 60% of Endesa’s activities, declined by 2% to EUR 2.37 billion.
Electricity generation in peninsular Spain fell by 19.4% to 49,459 GWh and in extra-peninsular territories by 7.1% to 11,943 GWh.
Demand for power in Spain dropped by 1.7% in 2019 due to higher temperatures and the impact of the economic slowdown on big companies’ energy consumption, according to Endesa. The company said it succeeded in covering 42% of the peninsular demand with renewables, compared to 39% in 2018.
Endesa spent around 70% of its investment budget on renewable power projects last year. The company said it will keep investing in renewables and digitalisation, adding that its renewable energy pipeline already stands at some 20 GW. Of the planned capacity, 5.7 GW has connection permits.
(EUR 1.0 = USD 1.088)