Renewables help Enel increase H1 EBITDA by 2.3%

Italian utility Enel SpA (BIT:ENEL) on Tuesday posted a first-half EBITDA of EUR 7.86 billion (USD 9.2bn), which CEO Francesco Starace said grew 2.3% on the year mainly thanks to the contribution of renewables.

The group’s net profit rose by 9.4% to EUR 2.02 billion due to a drop in net financial expenses, mainly demonstrating Enel’s efficient management of liabilities and lower taxes for the period.

The table below gives more details about the group’s financial performance in January-June 2018.

The contribution of Renewables to earnings before interest, tax, depreciation and amortisation (EBITDA), on an adjusted basis, was EUR 2.15 billion, up from EUR 1.81 billion a year back. In addition to organic growth in renewables, the group result also reflects distribution tariff increases in Argentina and Spain, as well as higher margins from final customers in Spain and Romania.

Enel blamed the slight decline in revenues to adverse exchange rates, mainly in South America.

CEO Starace described the group’s H1 performance as solid. He noted that Enel has hooked to grids around the world 3.4 GW of new renewable capacity between June 2017 and June 2018, which sets an all-time record for capacity installed in a single 12-month period by any player in the sector.

“During the second half of the year, we will continue to focus on industrial growth, investing in renewables and infrastructure & networks, while advancing the full digitisation of the company, thereby further enhancing operational efficiency,” Starace said, adding that the group is confident enough to confirm its targets for the full year 2018.

(EUR 1.0 = USD 1.168)

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