Enel posts Q1 profit rise, lower hydro output weighs on green biz

Enel's Fonte dos Ventos wind project in Brazil, developed by SOWITEC and turned into a wind/solar hybrid. Source: SOWITEC group

May 5 (Renewables Now) - Italian energy giant Enel SpA (BIT:ENEL) on Wednesday reported a 21.6% year-over-year rise in first-quarter net profit to EUR 1.43 billion (USD 1.51bn) and an 89.1% increase in revenues to EUR 34.96 billion as it generated more electricity and sold it at higher prices.

Ordinary earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 6.8% to EUR 4.49 billion, although at Enel Green Power ordinary EBITDA dropped 31% to EUR 727 million due to lower hydro output caused by lower water availability, which more than offset higher electricity generation in Brazil and North America after the start-up of new plants.

During the period, the group’s electricity sales moved up 1.4% to 79.9 TWh, while its generation grew 10.2% to 59.2 TWh. Generation from renewable sources, including volumes from managed capacity, fell 2.3% to 29.4 TWh, while thermal generation surged 31.8% to 19.2 TWh.

Over the quarter, Enel added 1 GW, mainly solar and hydro, to its net efficient installed capacity, bringing it to 88.1 GW.

The company said that against the backdrop of an ongoing geopolitical crisis, higher costs for gas and coal, and measures to contain electricity prices in some European countries, it delivered solid results thanks to its geographical diversification and integrated business model.

"Through the Group’s integration across the value chain, its geographical and technological diversification, as well as the acceleration of energy transition investments, we can consolidate the implementation of our Strategy in the short, medium and long term, confirming 2022 guidance on EBITDA and net ordinary income," said chief executive Francesco Starace.

The company expects 2022 ordinary EBITDA of between EUR 19 billion and EUR 19.6 billion and net ordinary profit in the range of EUR 5.6 billion to EUR 5.8 billion.

(EUR 1 = USD 1.053)

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Plamena has been a UK-focused reporter for many years. As part of the Renewables Now team she is taking a keen interest in policy moves.

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