In This Article:
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EBITDA: EUR2.4 billion, nearly in line with the first half of 2023.
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Net Income: EUR0.8 billion, a decrease of 9% compared to the previous year.
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FFO (Funds From Operations): EUR1.2 billion year-to-date.
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Capex: Decreased by 16% year-on-year.
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Renewable Capacity: Expanded to more than 10 gigawatts.
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Emission-Free Production: Increased to 90% of total mainland production, up from 82% in 2023.
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Electricity Prices: Average prices in the first half of 2024 were 56% lower than last year.
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Liberalized Power Sales: Decreased by 3% to 37 terawatt hours.
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Gas Sales: Decreased by 20%.
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Net Financial Debt: EUR10.8 billion, 4% higher than the previous period.
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Cost of Debt: Increased to 3.6%.
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Leverage Levels: Maintained below 3 times net debt over EBITDA.
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FFO over Net Debt Ratio: 40%.
Release Date: July 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Endesa SA (ELEZF) achieved an EBITDA of EUR2.4 billion, nearly matching the first half of 2023.
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The company expanded its renewable capacity to over 10 gigawatts, increasing emission-free production to 90% of total mainland production.
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Energy losses improved by 0.4 percentage points, indicating progress in quality indicators.
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Endesa SA (ELEZF) maintained a strong free power margin at EUR58 per megawatt hour.
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The company has secured most of its 2024 inframarginal output and significant portions for 2025 and 2026, providing stability in energy pricing.
Negative Points
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Net income decreased by 9% compared to the previous year.
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Capex slowed down by 16% year-on-year due to more selective capital allocation.
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The customer base contracted due to intensified competition and sustained low prices.
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Mainland electricity demand in Endesa's area decreased by 1.4%, adjusted to 0.8%.
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The technological obsolescence of the non-mainland generation fleet remains a concern, with inadequate regulatory support for investment needs.
Q & A Highlights
Q: What is the status of your claim on social tariffs, and is it included in your guidance? Also, can you comment on the Spanish supply competitive landscape and the recent increase in market share by competitors like Repsol? A: Regarding social tariffs, we are optimistic and believe it could add around EUR150 million, potentially moving us to the top of our guidance. On the competitive landscape, competition intensified in the first half of 2024 due to reduced electricity and gas prices, aggressive activity from oil and gas companies, and strong competitiveness of regulated tariffs. Repsol is leveraging its position in the petrol and service station market by subsidizing electricity through fuel discounts.