Enel doubles its net profit to €7 billion in 2024 despite falling energy prices
Enel doubled its net profit to €7 billion in 2024, despite the decline in electricity and gas prices. The company also reduced its net debt through asset disposals and implemented a strategy focused on profitability.
| Sectors | Solar Energy, Nuclear Energy, Photovoltaic, Fission |
|---|---|
| Themes | Markets & Finance, Results |
| Companies | Enel |
| Countries | Italy |
Enel, the Italian energy group, reported a net profit of €7 billion for the year 2024, a doubling compared to the previous year, despite an unfavorable economic environment marked by the drop in electricity and gas prices. Excluding exceptional items, the net profit amounted to €7.13 billion, representing a 9.6% increase over 2023, exceeding the group’s forecast, which had been set between €6.6 billion and €6.8 billion. However, revenue fell by 17.4%, reaching €78.9 billion, due to lower electricity and gas sales volumes, amidst declining energy prices.
Financial results evolution
The earnings before interest, tax, depreciation, and amortization (EBITDA), excluding exceptional items, increased by 3.8%, reaching €22.8 billion. This result aligns with Enel’s objectives. The company attributed this positive performance to the strong dynamics of its activities in Spain, the United States, and Latin America, which more than offset the slight decline observed in Italy. Enel also continued its debt management strategy, with a net debt reduction of 7.3%, standing at €55.76 billion by the end of 2024, thanks to asset disposals.
Strategic plan and future investments
Under the leadership of Flavio Cattaneo, who was appointed CEO in May 2023, Enel decided to slow down its investments in renewable energy to focus on short-term profitability. The company announced that it would invest €12 billion in renewable energy for the 2025-2027 period, as part of a total strategic plan of €43 billion. This plan marks a reduction compared to the €17 billion initially planned in the previous strategic plan, presented under the leadership of Francesco Starace, for the 2023-2025 period.
Maintaining leadership in renewable energy
Despite the slowdown in investments, Enel remains a leader in the renewable energy sector, which still represents 69.5% of its total energy mix. Thermal and nuclear energies represent 17.9% and 12.6% of Enel’s production, respectively. The company has also expressed its intention to play an increased role in the development of next-generation nuclear energy, particularly in Italy, where the last nuclear plants were closed in 1990. Enel plans to collaborate with Leonardo, a defense group, and Ansaldo Nucleare to assess the feasibility of small nuclear reactors in Italy.
