Endesa achieved a net profit of 916 million euros in the first half10% more compared to the same period of the previous yeardue to the capital gain generated by the sale of 51% of its electric mobility business to its Italian parent company, Enel. As the company reported to the National Securities Market Commission (CNMV) on Wednesday, without taking into account this extraordinary effect, Endesa’s ordinary net profit between January and June would have fallen by 13.4% to 734 million in a market context that the company describes as “unfavorable”.
Endesa has indicated that it is maintaining its forecasts for the full year -4,100 million in gross operating profit (ebitda) and 1,800 million in ordinary net profit-, despite the unfavorable market context marked by russian invasion of ukraine and rising commodity prices. In the first six months of the year, Endesa achieved a turnover of 14,851 million, which represents a growth of 64.4% compared to the previous year.
Income from the sale of electricity rose by 65.7% to 10,355 million, of which 6,625 million corresponded to sales in the liberalized market, 63.7% more. Revenue from electricity sales at regulated prices increased by 51.4% to 1,609 million, due to the rise in the price of electricity on the wholesale market, despite a drop in the number of customers on this market.
For its part, turnover from sales to the wholesale market almost tripled in the first halfprecisely up to 1,725 million, thanks to both the increase in physical units sold and the evolution of electricity prices over the period. Endesa also recorded 2,990 million gas sales, a figure that almost tripled -153% more- than a year ago, due to the increase in the selling price in the liberalized market. Until June, EBITDA amounted to 2,188 million, or 17% more than a year ago, even if taking into account the impact of the sale of part of its electric mobility activity, this would only increase by 4%.
Customers increase in the open market
The number of electricity customers Endesa has increased by 2.5% since the end of 2021 to reach 10.5 million, of which 6.6 million correspond to the free market and the remaining 3.9 million to the regulated market. For their part, gas customers amounted to 1.8 million, 4% more than at the end of 2021. Electricity production increased by 12.9% compared to the same period of the previous year, reaching 31,140 gigawatt hours (GWh), with nearly 20% renewable production.
Regarding the strengthening of electrification, the network of public and private charging points increased by 39% in the first half to reach 11,000, while the number of charging points for buses has increased threefold to reach 120 in operation. Between January and June, it invested 934 million euros to promote its strategy of decarbonization and electrification, 26% more than a year ago, of which more than 70% was allocated to renewable energies and the improvement of the distribution network. In addition, at the end of the period, net debt stood at 10,300 million, i.e. 17% more than at the end of 2021, due to the increase in the volume of investments, the negative evolution of free cash flow and of the dividend payment.
New renewable energy
The company already has 8,400 megawatts (GW) of renewable installed power, 9% more than in the first half of 2021, which already represents 70% of the park that the company has in the Iberian market -16,900 MW -. In this directionhas a portfolio of renewable projects of 77,000 MW, of which nearly 9,000 MW already have an access and connection point to the licensed network. In addition, it is building solar and wind power plants totaling 1,900 MW, which is 90% of the annual renewable energy target and 70% of the target set for 2023. The company explained that it also has a portfolio of storage projects that add up to a total of 18,000 MW.
About the energy tax
Endesa CEO José Bogas said the energy company “is pending” for details of the new tax that the government wants to impose on banks and energy companies to raise some 7,000 million euros in two years, although he defended that the electricity company “You don’t get any extraordinary benefits at this pointrespecting the legislation passed in recent months”. The leader also valued the capping of gas to produce electricity, even if he considered that “specific measures” such as the Iberian exception mitigate price increases. However, he felt that these initiatives “do not solve the basic problem: the high price of gas”.
On the other hand, Bogas pointed out that during this first semester it has been verified “how the macroeconomic and energy scenario continued its deteriorating trajectory”, after an invasion of Ukraine by Russia which “didn’t only exacerbated the strong gas price growth trajectorythe ultimate reason for Europe’s energy crisis”. Thus, he underlined the European Union’s approach to decarbonisation and energy self-sufficiency on the continent as “the only realistic way in the medium and long term”. short term we face Iberian and European plans for energy saving and efficiency to which Endesa contributes and will bring reasonable and constructive proposals as it has done during this last year of price crisis”, he added in this regard.