Enel books lower 9-mo profits, to step up renewables installation


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
Revenues 57,124  55,246
-- of which Enel Green Power 5,547 5,758
EBITDA 13,209 12,134
-- of which Enel Green Power 3,304 3,328
Ordinary EBITDA
(net of extraordinary items)
13,268 12,006
EBIT 4,199 7,438
-- 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)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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