• Ordinary EBITDA: EUR11.7 billion, up by 9% year-over-year.

• Ordinary Net Income: Increased double digits.

• Funds from Operations (FFO): EUR5.5 billion.

• Net Debt: EUR57.4 billion, with a net debt-to-EBITDA ratio of 2.4 times.

• Renewables Production: Increased by 10 percentage points.

• Emission-Free Production Share: Almost 85%.

• Cash from Disposals: More than EUR5 billion.

• CapEx in Networks: More than 50% of total investment.

• European Countries EBITDA: Accounted for 73% of total, increasing 13% year-over-year.

• Grids' EBITDA: Increased 4% net of 2023 disposals.

• Renewables EBITDA: EUR3.7 billion in the first half of 2024.

• Retail EBITDA: Decreased by EUR100 million.

• Operating Cash Flow: Increased by almost 8 times.

• Emission Intensity: Decreased by 41% over the past 12 months.

• Warning! GuruFocus has detected 9 Warning Signs with ENLAY.

Release Date: July 25, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Enel SpA (ENLAY) reported a strong financial performance with an ordinary EBITDA of EUR11.7 billion, up by 9% compared to the previous year.

• The company achieved significant cash generation, with FFO reaching EUR5.5 billion, providing coverage for net CapEx.

• Enel SpA (ENLAY) successfully executed its disposal plan, cashing in more than EUR5 billion, which contributed to deleveraging efforts.

• The company recorded a 41% decrease in emission intensity over the past 12 months, highlighting its commitment to environmental sustainability.

• Enel SpA (ENLAY) made progress in its partnership business model, completing deals worth around EUR2 billion, enhancing value and accelerating returns.

Negative Points

• The retail segment in Italy experienced a decrease in EBITDA by EUR100 million due to the normalization of margins.

• The company faced challenges with the regulatory framework in Spain, impacting capital allocation decisions.

• Enel SpA (ENLAY) recorded a negative evolution in its retail client base in Italy, attributed to previous pricing strategies.

• The thermal generation segment saw a decline due to lower output and the end of mandatory coal production requirements.

• Working capital dynamics were negatively impacted by non-recurring items and seasonality, affecting short-term cash flow.

Q & A Highlights

Q: Numbers continue to be strong and you confirm the guidance, what factors could drive a revision upwards? A: Let me say everything's going well. And as I said before, we see the old '24 numbers to move to the upper part of the range. But it's not the right moment now to talk about a potential revision of the guidance that remain the existing ones. - Flavio Cattaneo, CEO