November 14 (Renewables Now) - Italian utility Enel SpA (BIT:ENEL) on Wednesday said its net profit in the first nine months of 2019 fell by 73% on the year due to impairments on certain coal-fired assets, and announced plans to lift is annual renewables installation target to 4 GW from next year.
The Italian company on Wednesday confirmed that it will manage to deploy 3 GW of new renewables capacity by the end of 2019, having installed 600 MW in January-September and expecting to commission 2,400 MW more by year-end. In financial terms, the expected operational growth, coupled with efficiency improvements and simplification of the corporate structure, have prompted the company to lift its projections for consolidated ordinary earnings before interest, tax, depreciation and amortisation (EBITDA) to EUR 17.8 billion (USD 19.6bn) in 2019, from EUR 17.4 billion previously.
Net ordinary income is still seen at around EUR 4.8 billion.
Enel boosted by 14.1% year-on-year its group net ordinary income in the first nine months of 2019 to EUR 3.3 billion as ordinary EBITDA climbed by 10.5% to EUR 13.3 billion due to positive contribution from Enel Distribuicao Sao Paulo (BVMF:ELPL3), which is now owned by Enel, the higher margins in nuclear generation, and by the expansion of the free market in Latin America. Revenues gained 3.4%.
The table below gives more details on Enel's Q1 financial results.
|Figures in EUR million||9mo 2019||9mo 2018|
|-- of which Enel Green Power||5,547||5,758|
|-- of which Enel Green Power||3,304||3,328|
(net of extraordinary items)
|-- of which Enel Green Power||2,388||2,497|
|Group net profit||813||3,016|
|Group net ordinary profit||3,295||2,888|
During the reporting period Enel expanded its annual investments by 27.7% to EUR 6.6 billion, with 84% of the total dedicated to renewables and grids. Investments on the renewable energy front covered the construction of renewables power plants in Spain, Brazil, South Africa, Greece, and Russia.
(EUR 1.0 = USD 1.100)