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Renewables growth aids Enel in raising Q1 earnings

Enel's Fontes Solar 2 plant in Brazil. Source: Enel

May 9 (Renewables Now) - Italian utility Enel SpA (BIT:ENEL) on Wednesday reported a 7.4% year-on-year rise in first-quarter (Q1) net profit as renewables and distribution networks continued to be the “driving forces” of the company’s performance.

Enel saw its group net profit increase to EUR 1.26 billion (USD 1.41bn) from EUR 1.17 billion a year earlier, as earnings before interest, tax, depreciation and amortisation (EBITDA) improved by 12.7% because of the growth in renewables, better margins in the distribution segment and in generation and trading in Italy. A reduction of the group’s operational costs also had a positive effect.

The table below gives more details on Enel's Q1 financial results.

Figures in EUR million Q1 2019 Q1 2018
Revenues 20,891 18,946
EBITDA 4,548 4,037
Ordinary EBITDA (net of extraordinary items) 4,454 3,909
EBIT 2,981 2,538
Group net profit 1,256 1,169
Group net ordinary profit 1,159 1,041

CEO Francesco Starace commented that the company had booked “excellent results”, noting that all business lines showed an “outstanding performance”, allowing Enel to confirm its full-year guidance.

“Renewables, whose installed capacity increased by 800 MW this quarter, and distribution networks, which benefitted from the integration of Enel Distribuicao Sao Paulo, confirm their role as driving forces of our performance and in the first quarter of this year accounted for 70% of the Group’s ordinary EBITDA,” he said.

Starace added that in 2019 the company anticipates to step up capital expenditures, particularly when it comes to renewables in North America, with strong investments also planned for networks in Italy and South America. The CEO expects cash flow generation to remain solid throughout the year.

(EUR 1.0 = USD 1.120)

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