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    Endesa cuts its March profit by 31% to 338 million euros

    May 10, 2022 - CE Noticias Financieras


      Endesa obtained a net profit of 338 million euros in a first quarter of the year marked by extreme volatility in the electricity sector, which represents a drop of 31.2% compared to the same period of the previous year, although it has ratified its objectives for the whole of 2022, the company informed.

      Endesa's gross operating profit (Ebitda) at the end of March stood at E914 million, down 10.4% compared to the first three months of 2021, but 10% higher if last year's atypical results are not taken into account, mainly the E188 million from a court ruling related to CO2 rights.

      The group's ordinary net profit in this first quarter reached 338 million, a fall of 31%, although excluding the extraordinary impacts recorded in 2021, this result would grow by 10%.

      Revenues of the energy company led by José Bogas in the period from January to March amounted to 7,596 million euros, with a growth of 59.1%.

      Thus, Endesa, which sells more energy than it produces and needs to buy energy in the market, benefiting when prices fall but being harmed in its accounts if they are high, recorded these numbers in a period strongly marked by the deterioration of the macroeconomic scenario and the high prices of raw materials and, singularly, of gas, which was 350% more expensive on average than in the first quarter of 2021, which thus led to maintain high prices in the wholesale electricity markets, with an average of E229 in Spain.

      However, despite this drop in profit, Endesa ratified its financial targets for this 2022 of a net ordinary result of E1.8 billion and an Ebitda of E4.1 billion.

      Endesa's CEO, José Bogas, pointed out that the year begins "facing an even more challenging situation than the previous one, marked by macroeconomic tensions derived from the impact of the war in Ukraine and by the transfer of this conflict to a commodities market that has already been highly inflated for months".

      In this regard, he emphasized that the group "remains confident in the strength of its vertically integrated business model to meet the 2022 objectives.""And we also maintain our strategy of advising and helping all customers, under any type of tariff, to overcome the turbulence of the energy market in their homes and businesses," he added.

      100% of its energy sold by 2022 and 82% already by 2023

      In addition, Endesa had at the end of March 100% of its own energy (nuclear, hydroelectric and non-regulated renewable) sold for this year, and 82% already for 2023.

      On the other hand, the complex situation of the raw materials markets, together with an increase in regulatory items pending collection, have negatively affected the working capital necessary to finance the company's operations, which has placed cash flow from operations in the negative by 476 million euros.

      Endesa highlighted that the coverage of this negative cash flow, the disbursement of investments in the period for 533 million and the payment of dividends for 529 million supported the increase in net debt to 10,334 million at the end of the quarter.

      In any case, the cost of liabilities was at an all-time low of 1%, half a point below that reported at the end of 2021. And the percentage of debt linked to sustainability criteria is up five points, to 65%, compared to the end of last year.

      Boosting renewables

      With regard to the promotion of 'green' energies, the company has 90% of the renewable power that it expects to come into operation in 2022 already in operation or under execution, and 70% of that programmed for 2023.

      Specifically, the energy company has 2,000 megawatts (MW) of renewable capacity under execution, half of the target set out in its 2022-2024 strategic plan, and has 8,000 MW of capacity in an advanced state of administrative processing, all in Spain and Portugal.

      With regard to its commercial activity, it recorded a growth of 800,000 customers in the deregulated market in the last 12 months, reaching 6.4 million in Spain and Portugal, a 13% increase.

      As for electric vehicle charging points, they grew by 36% to 10,200 at the end of the quarter, including public and private, compared to the same period in 2021.


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