Italian energy giant Enel announced preliminary results on Thursday that exceeded expectations. Revenues amounted to 140.5 billion euros, well above analysts’ expectations of 101.83 billion euros, according to the consensus of financial services provider Factset Estimates.
Increase in prices and sales volumes
Higher prices and sales volumes in Italy and Spain were the main factors behind this spectacular jump in revenues. Enel’s revenues grew by 63.9%, demonstrating the group’s resilience in an unfavorable geopolitical, energy and economic context.
Increase in Ebitda
Enel also announced a 9.3% increase in its gross operating income (Ebitda) to 18.8 billion euros. Excluding exceptional items, Ebitda reached 19.7 billion euros, up 2.6%, exceeding the target of 19 to 19.6 billion euros that the group had set for 2022.
Despite the growth in its revenues, Enel’s net debt increased by 16.2% to 60.1 billion euros due to investments. However, the group said that the debt started to decrease in the fourth quarter.
Strategic Plan 2023-2025
Last November, Enel announced plans to sell off assets worth €21 billion as part of its 2023-2025 strategic plan. This plan aims to reduce its debt and focus on six key markets, namely Italy, Spain, the United States, Brazil, Chile and Colombia. The group also entered into exclusive negotiations in December with the Greek state-owned energy supplier PPC on the potential sale of all its assets in Romania.
Enel has set itself the goal of investing 37 billion euros over the period 2023-2025, of which about 17 billion in renewable energies. This new investment will accelerate the green transition begun by the group in 2014.
