In This Article:
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EBITDA: Increased by 16% to EUR3.9 billion.
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Net Income: Rose by 33% to EUR1.4 billion.
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Funds From Operations (FFO): Reached EUR2.7 billion.
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Emission-Free Output: Increased to 88% of total production.
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Renewable Capacity: Expanded to more than 10 gigawatts.
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Electricity Prices: Average prices down 42% year-on-year.
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Unitary Free Power Margin: Reached EUR57 per megawatt hour.
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Gas Unitary Margin: Improved to EUR2 per megawatt hour.
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Net Financial Debt: Remained flat at EUR10.4 billion.
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Cost of Debt: Increased to 3.6%.
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Leverage Ratio: 2.4x.
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FFO on Net Debt Ratio: 44%.
Release Date: October 30, 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) reported a strong financial performance with EBITDA growing by 16% to EUR 3.9 billion and net income increasing by 33% to EUR 1.4 billion compared to the same period last year.
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The company achieved a significant increase in emission-free output, reaching 88% of total production, supported by an expansion in renewable capacity to over 10 gigawatts.
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Endesa SA (ELEZF) successfully stabilized its customer portfolio at 6.7 million, maintaining the average level of the last five years despite earlier declines.
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The company has secured almost all of its 2024 and 2025 output and 70% for 2026, providing a high degree of protection against market volatility.
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Endesa SA (ELEZF) maintained a strong cash flow generation, which was sufficient to cover investment needs and dividend payments, keeping net financial debt stable at EUR 10.4 billion.
Negative Points
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Endesa SA (ELEZF) experienced a reduction in its customer base due to intensified competition and sustained low prices, although there was a change in trends in the third quarter.
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Average electricity prices in the first nine months of 2024 were down 42% compared to the previous year, contributing to market volatility.
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The company faced a significant drop in industrial customer demand for gas, leading to a 15% decrease in total gas sales.
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Endesa SA (ELEZF) reported a decline in energy-intensive industrial consumption, particularly in the paper and metal industries.
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The company is operating in a regulatory vacuum, with uncertainty around the allowed return in power grids and potential capital allocation challenges.
Q & A Highlights
Q: How does Endesa plan to allocate capital given the regulatory uncertainty in Spain, and are there plans for acquisitions or share buybacks? A: Jose Damian Bogas Galvez, CEO, stated that Endesa is in a strong sector with many opportunities. The company aims to maintain a strong balance sheet to pursue these opportunities. While M&A opportunities are considered if they fit the equity story and create shareholder value, the focus remains on strategic investments like the partnership with Masdar. Regulatory clarity is expected to support future investments, particularly in distribution and electrification.