• Ordinary EBITDA: EUR17.4 billion, up by 60% year-on-year.

• Ordinary Net Income: EUR5.8 billion, up by 16% year-on-year.

• CapEx: EUR7.8 billion, with more than half spent on Grids.

• Grids EBITDA: EUR5.9 billion, up by 6% year-on-year on a like-for-like basis.

• Net Debt: EUR58.2 billion, with a reduction of EUR2 billion.

• Cash Flow from Operations (FFO): EUR9 billion.

• Financial Expenses: Decreased by EUR200 million year-on-year.

• Reported Net Income: Increased by 38% compared to the previous year.

• Efficiency Program Savings: EUR600 million compared to 2022.

• Warning! GuruFocus has detected 10 Warning Signs with ENLAY.

Release Date: November 06, 2024

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

Positive Points

• Enel SpA (ENLAY) reported a significant increase in ordinary EBITDA, reaching EUR17.4 billion, up by 60% compared to the previous year.

• Ordinary net income rose by 16% year-on-year, amounting to EUR5.8 billion, indicating strong financial performance.

• The company successfully deployed EUR7.8 billion in investments, with a focus on regulated assets, enhancing predictable returns.

• Enel SpA (ENLAY) achieved a strong performance in its Grids segment, with EBITDA increasing by 6% year-on-year.

• The company maintained a robust financial discipline, rapidly deleveraging with a net debt ratio expected to reach 2.4 times by year-end, below the sector average.

Negative Points

• Working capital remained negative, with a significant impact of minus EUR2.9 billion, affecting cash flow dynamics.

• The FFO conversion rate decreased to 52% from 65% last year, indicating a decline in cash flow efficiency.

• There was a slowdown in CapEx compared to previous quarters, raising concerns about future investment levels.

• The integrated business segment experienced a EUR200 million decline year-on-year, primarily due to lower production.

• The company faced challenges in the tough market and microenvironment, impacting expectations in the first part of 2024.

Q & A Highlights

Q: Guidance has been confirmed despite strong numbers that would point to upside. Do you have any visibility or negative income in the last quarter? A: Stefano De Angelis, CFO, stated that the results have been consistent and linear throughout the quarters, reflecting the improved resiliency of their business model. They have ample visibility on the underlying operating dynamics, allowing them to confirm the full guidance for the year.

Q: Will you officially disclose the level of DPS for 2024 at the next Capital Market Day? A: Stefano De Angelis confirmed that the full set of strategy and financial ambitions, including the dividend per share (DPS) for 2024, will be updated and disclosed at the upcoming Capital Market Day.