Endesa (ELE) Q2 2024 earnings summary

Executive summary

• EBITDA for H1 2024 was €2.4 billion, down 2.5% year-over-year, with net income at €800 million, a 9% decrease, mainly due to higher D&A, tax rate, and lower energy prices and volumes.

• Revenue for H1 2024 was €10.4 billion, down 20.6% year-over-year, reflecting lower electricity and gas prices and volumes.

• FFO reached €1.2 billion YTD, with a healthy FFO/net debt ratio of 40%.

• The company remains on track to meet its annual targets, supported by operational delivery, margin protection, and cost efficiencies.

• Net financial debt increased 3.8% to €10.8 billion, reflecting CapEx, dividend payments, and arbitration award.

Financial highlights

• EBITDA decreased by 2.5% year-over-year to €2.4 billion; EBIT dropped 9% to €1.38 billion.

• Revenue declined 21% to €10.4 billion; gross margin fell 3% to €3.4 billion.

• Net income attributable to shareholders was €800 million, down 9% year-over-year.

• Net financial debt increased 4% to €10.8 billion; cost of debt rose to 3.6%.

• Cash flow from operating activities was €1.2 billion, down 26.2% year-over-year.

Outlook and guidance

• Full-year 2024 EBITDA guidance reaffirmed at €4.9–5.2 billion, with H2 expected at €2.6–2.8 billion.

• Net income guidance for 2024 remains at €1.6–1.7 billion.

• Net debt expected to end 2024 at around €10 billion, assuming completion of a 49% solar portfolio sale.

• Dividend policy maintains a 70% payout on ordinary net income, with a minimum €1 per share through 2026.

• Full decarbonisation by 2040 remains a core long-term goal.