Gross Operating Income (EBITDA) in comparable terms increased by 27%, amounting to €2,476 million.
- Endesa's net ordinary income from January to June was €879 million, a 20% increase in comparable terms (excluding the extraordinary profit from the sale of Endesa X Way in 2022).
- Gross Operating Income (EBITDA), also in comparable terms, was €2,476 million, representing an increase of 27%
- With this development the company is confident that it will meet the economic and financial targets for the year as a whole: EBITDA of between €4,400 million and €4,700 million and net ordinary income of €1,400 million to €1,500 million, and a dividend of about 1 euro per share.
- In the first half of the year investment amounted to €1,043 million, a year-on-year increase of 12%. 76% of this will be used to strengthen the pillars of energy transition: Networks and renewable energies
- The first half of the year ended with 9,300MW of renewable power (hydroelectric, solar and wind) in mainland Spain, 800MW more compared to the end of June 2022. 81% of mainland production in these six months was emission free, 3 percent more than the previous year.
- The client base in the free market stands at 6.9 million, a year-on-year increase of 300,000. 76% of fixed-price electricity sales were met by emission-free production.
- In the last twelve months there have been an additional 5,500 units in the network of charging stations for electric vehicles, bringing the total to 16,600
Madrid, 26 July 2023. At the close of the first six months of 2023, Endesa reconfirmed its main financial targets for the year: EBITDA (gross operating income) of €4,400-€4,700 million, net ordinary income of €1,400-€1,500 million and a dividend per share of about 1 euro. This all took place in a market context that continues on the road to normalisation compared to the previous year: The average price on the Iberian electricity market was €88 per megawatt hour (MWh), 57% less than in the first half of 2022. A reduction equal to that recorded in both the average price of gas in the TTF index (€44.6/MWh, a decrease of 55%) and in the Iberian reference PVB (€42/MWh, a decrease of 55%). A first half of the year when electricity demand by Endesa's customers in mainland Spain decreased by 3.8%, mainly due to lower consumption in the services and residential sectors.
In the company's main financial dimensions, EBITDA (gross operating income) was €2,476 million, 27% higher than in the first half of the previous year in comparable terms. This excludes the extraordinary positive impact registered in 2022 from the sale of 51% of the electric mobility business. This growth is based on the positive contribution of all segments of the company's Generation and Retailing, with special mention for €473 million in the business of supplying electricity, gas and services to customers, €214 million in conventional generation, and a further €180 million in the renewable energy activity.
Ordinary net profit, which is the basis for the distribution of dividends, increased a further 20% year-on-year in comparable terms to €879 million. This increase can mainly be explained by the upward trend in EBITDA, which makes it possible to offset higher financial costs, by the increase in gross debt and the updating of provisions, as well as higher depreciation and provisions and higher taxes paid. The company posted an effective tax rate of 29.5%, affected by the extraordinary tax approved in 2022 and for which €208 million euros was recorded. Consolidated net income fell by 4% as no extraordinary result has been recorded in 2023 as was the case in 2022.
With regard to the road to decarbonisation, Endesa's CO2-free production in mainland Spain stood at 81% of the total, three percent more than in the first half of the previous year. Mainland generation capacity from renewable sources (hydroelectric, wind and solar) amounted to 9,300 MW.
In this regard, total investment in the first six months increased by 12%, to €1,043 million. This means that the networks (40% of the total) and renewables (36%) businesses, the two pillars of the company's energy transition strategy, absorbed three quarters of the total.
Commercial activity
With regard to developments in the electricity retailing market, Endesa made progress in the target of covering an increasing proportion of the electricity it sells at a fixed price on the free market with generation that is free of greenhouse gas emissions. Specifically, 76% of that electricity (one percent more than in June 2022) already comes from emission-free technologies: 20 Terawatt-hours (TWh) out of a total of 26 TWh in the six-month period.
In total, Endesa closed June with 10.5 million electricity customers in Spain, the same number as at the end of the first half of the previous year. Of these, 6.9 million are in the free market (5% more) and 3.7 million in the regulated market (5% less).
With regard to electric mobility, the network of charging stations is still the largest in Spain with a total of 16,600 at the end of the six-month period, 5,500 more than a year earlier.
The company has already sold 100% of its own electricity production for 2023 and 89% for 2024, in both cases at a price of €65/MWh, in compliance with the regulations in force.
Regarding the gas business, the total volume retailed decreased slightly by 5% to 49 TWh as a result of lower consumption in combined cycles and by industrial and domestic customers. The company has already sold 90% of the gas it has bought for 2023 and 65% for 2024. The customer base remains stable at 1.8 million.
Financial performance
Net debt totalled €10,600 million, which represents a decrease of 3% compared to the end of 2022. Gross debt decreased by 22% mainly due to the sharp reduction in collateral hedging operations in international commodity markets amounting to €3,100 million, 53% less than at the end of last year.
The leverage ratio (net debt compared to EBITDA) stands at 1.8 times, from 2 times in June 2022. The cost of debt is currently 3%.
Financial indicators
| (millions of euros) | 1S 2023 | 1S 2022 | Change (%) |
|---|---|---|---|
| Revenue | 13,121 | 14,851 | -11.6% |
| EBITDA | 2,476 | 2,188 | 13.2% |
| EBIT | 1,521 | 1,316 | 15.6% |
|
Net income |
879 | 916 | -4.0% |
| Ordinary net profit | 879 | 734 | 19.8% |
| Operating cash flow | 1,615 | -169 | |
| Net financial debt | 10,597 | 10,869 * | -2.5% |
| Gross investments | 1,043 | 934 | 11.7% |
* Data as at 31 Dec 2022
Operational dimensions
| 1S 2023 | 1S 2022 | Change (%) | |
|---|---|---|---|
| Installed capacity (MW) | 22,044 | 22,044 (3) | 0% |
| Renewable capacity | 9,293 | 9,293 (3) | 0% |
| Renewable capacity % share | 42% | 42% | |
| Output (MW) | 29,490 | 31,140 | -5.3% |
| Renewable production | 7,291 | 6,215 | 17.31% |
| Renewable production % share | 24,7% | 20,0% | |
| Net electricity sales (GWh) (1) | 37,702 | 38,485 | -2.03% |
| Regulated market | 3,609 | 4,376 | -17.53% |
| Deregulated market | 34,093 | 34,109 | -0.05% |
| Number electricity customers (thousands) | 10,540 | 10,512 | 0.27% |
| Regulated market | 3,682 | 3,910 | -5.83% |
| Deregulated market | 6,858 | 6,602 | 3.88% |
| Electricity distributed (GWh) | 67,049 | 66,078 | 1.47% |
| Gas sales (GWh) (2) | 35,449 | 35,936 | -1.36% |
| Number of gas customers (thousands) | 1,812 | 1,751 | 3.48% |
| Regulated market | 411 | 213 | 92.96% |
| Deregulated market | 1,401 | 1,520 | -7.832% |
| Public and private charging stations | 16,586 | 13,898 (3) | 19.34% |
(1) Net sales to end client.
(2) Excluding own generation consumption.
(3) Data as at 31 Dec 2022
About Endesa
Endesa is a leading electricity company in Spain and the second largest in Portugal. The company is also the second largest gas operator in the Spanish market. Endesa operates an end-to-end electricity generation, distribution and marketing business. Through Endesa X it also offers value-added services aimed at the electrification of energy usage in homes, companies, industries and Public Administrations. It is also the leading operator of charging stations in Spain through Endesa X Way, a business line dedicated entirely to electric mobility. Endesa is firmly committed to the United Nations SDGs and strongly supports the development of renewable energies through Enel Green Power España, the digitalisation of grids through e-distribución and Corporate Social Responsibility (CSR). The Endesa Foundation is also active in CSR. Our workforce numbers around 9,260 employees. Endesa is a division of Enel, the largest electricity group in Europe.