Gross Operating Income (EBITDA) in comparable terms decreased by 3%, amounting to €3,353 million.
- The decrease in Gross Operating Income (EBITDA) is mainly due to the negative effect of the tax on the energy sector that came into force in 2023 and the non-recurring positive impact recorded in 2022 of the favourable ruling on the Social Bonus. Excluding these effects, EBITDA would have risen by 7%.
- Endesa recorded an ordinary net profit of €1,059 million in the first nine months of the year, down 28%, affected by the fall in EBITDA and, to a greater extent, by higher amortisations, derived from the higher level of investment; higher financing costs, especially as a result of rising interest rates; and by a higher tax rate affected by the extraordinary levy approved in 2022.
- Between January and September, investment amounted to €1,509 million, a year-on-year increase of 2%. 76% of this will be used to strengthen the pillars of energy transition: networks and renewable energies.
- The company has 9,300MW of renewable power (hydroelectric, solar and wind) operating in mainland Spain, 800MW more compared to the end of September 2022. 79% of mainland production in this period was emission free, 6 percent more than the previous year.
- The customer base in the free market has increased to 6.9 million and the percentage of fixed-price electricity sales covered by emission-free production has reached 73%.
- In the last twelve months there have been an additional 5,600 units in the network of charging stations for electric vehicles, bringing the total to 17,600.
- The normalisation of market conditions places cash generation in the first three quarters at €2,800 million, which is €2,300 million up on 2022.
Endesa closed the first nine months of 2023 with an EBITDA (gross operating income) of 3,353 million euros, 3% lower than in the same period 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. EBITDA has been impacted by the favourable ruling recorded in 2022 on the financing of the Social Bonus for €152 million and by the payment in 2023 of the extraordinary sales tax amounting to €208 million, which places the structure and adjustments heading at -€364 million. At the operational level, this performance is based on the positive results of the networks (230 million), renewables (280 million) and energy and services marketing (473 million) businesses; it is also based on the negative contribution from the conventional generation business (-738 million), mainly affected by the extreme volatility in the gas markets, with non-recurring effects that have impacted the third quarter.
Ordinary net income, which is the basis for the distribution of the dividend, fell by 28% to €1,059 million. This performance is mainly explained by the aforementioned development of EBITDA, higher depreciation and provisions, as well as higher financial costs. The company has recorded an effective tax rate of 29.5%, affected by the extraordinary tax approved in 2022. Consolidated net income fell by 36% as no extraordinary result was recorded in 2023, as occurred in 2022 with the aforementioned sale of the electric mobility business.
With regard to the road to decarbonisation, Endesa's CO2-free production in mainland Spain stood at 79% of the total, six percent more than in the same period in the previous year. Mainland generation capacity from renewable sources (hydroelectric, wind and solar) amounted to 9,300 MW.
In this regard, total investment to September increased by 2%, to €1,509 million. This means that the networks (40% of the total) and renewables (36%) businesses, the two pillars of the company's energy transition strategy, absorb three quarters of the total.
Commercial activity
With regard to the performance of the electricity supply market, at the end of this third quarter, the proportion of electricity sold at a fixed price on the free market, and which comes from generation that is free of greenhouse gas emissions, has risen to 73%: 29.5 Terawatt hours (TWh) out of a total of 40.3 TWh.
In total, Endesa ended September with a stable customer base: 10.5 million electricity customers in Spain, consolidating the strong growth achieved last year. Of these, 6.9 million are in the free market (1% more than the previous year) and 3.7 million in the regulated market (3% less).
In terms of electric mobility, the company remains one of the leaders in Spain in the network of charging stations with 17,600, which is 5,600 more over the year.
The company has already sold 100% of its own electricity production for 2023 and 91% for 2024, in both cases at a price of €65/MWh, in compliance with the regulations in force.
As for the gas business, the total volume retailed fell by 8% to 70 TWh, due to substantially lower consumption in combined cycle plants and despite the increase in consumption for industrial and domestic customers. The company has already sold 98% of the gas it has bought for 2023 and 73% for 2024. The customer base remains stable at 1.8 million.
Financial performance
The progressive normalisation of energy market conditions and the good performance of regulatory working capital (amounts owed to the company by the central government and which must be financed) have placed cash generation at €2,839 million at the end of the period, from €586 million at September last year.
Net debt reached €11,600 million, an increase of 6% compared to the end of 2022, due to dividend payments and investments undertaken. Gross debt decreased by 24%, mainly due to the sharp reduction in collateral (-67%) covered by operations in international commodity markets, to €2,200 million.
The leverage ratio (net debt to EBITDA) stands at 2.2 times, up from 2 times at the end of 2022. The cost of debt stands at 3%, stable compared to the end of the first six months.
Financial indicators
| (millions of euros) | 9M 2023 | 9M 2022 | Change (%) |
|---|---|---|---|
| Revenue | 19,211 | 24,620 | -22.0% |
| EBITDA | 3,353 | 3,710 | -9.6% |
| EBIT | 1,903 | 2,388 | -20.3% |
|
Net income |
1,059 | 1,651 | -35.9% |
| Ordinary net profit | 1,059 | 1,469 | -27.9% |
| Operating cash flow | 2,839 | 586 | 384.5% |
| Net financial debt | 11,551 | 10,869 (1) | 6.3% |
| Gross investments | 1,509 | 1,478 | 2.1% |
* Data as at 31 Dec 2022
Operational dimensions
| 9M 2023 | 9M 2022 | Change (%) | |
|---|---|---|---|
| Net installed capacity (MW) | 22,044 | 22,044 (3) | 0% |
| Net renewable capacity | 9,293 | 9,293 (3) | 0% |
| Renewable capacity % share | 42% | 42% | |
| Output (MW) | 45,982 | 49,324 | -6.8% |
| Renewable production | 10,159 | 8,925 | 13.8% |
| Renewable production % share | 22.1% | 18.1% | |
| Net electricity sales (GWh) (1) | 59,506 | 60,105 | -1.0% |
| Regulated market | 5,820 | 6,500 | -10.46% |
| Deregulated market | 53,686 | 53,605 | 0.15% |
| Number electricity customers (thousands) | 10,512 | 10,545 (3) | -0.31% |
| Regulated market | 3,662 | 3,716 (3) | -1.5% |
| Deregulated market | 6,805 | 6,829 (3) | 0.3% |
| Electricity distributed (GWh) | 103,859 | 101,959 | 1.86% |
| Gas sales (GWh) (2) | 47,181 | 46,457 | -1.56% |
| Number of gas customers (thousands) | 1,817 | 1,799 (3) | 1.00% |
| Regulated market | 425 | 313 (3) | 35.78% |
| Deregulated market | 1,392 | 1,486 (3) | -6.3% |
| Public and private charging stations | 17,599 | 9,482 | 85.6% |
(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.