Endesa (ELE) Q2 2024 earnings summary

Executive summary

• EBITDA for H1 2024 was €2.413–2.4 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 prices and volumes.

• Revenue declined 20.6% to €10.416 billion, reflecting lower electricity and gas prices and volumes.

• Cash generation remained strong, with FFO at €1.2 billion and FFO/net debt at 40%.

• The company remains on track to meet full-year 2024 guidance, supported by operational delivery, margin protection, and strong hedging.

• Renewable capacity increased to over 10 GW, with 90% of peninsular generation CO2-free.

Financial highlights

• EBITDA decreased 2.5% to €2.413–2.4 billion; EBIT dropped 9% to €1.38 billion.

• Net financial debt increased 3.8–4% to €10.8 billion, with cost of debt at 3.6%.

• Gross investments were €924 million, down 16.3% year-over-year, focused on renewables and grids.

• Cash flow from operating activities was €1.192 billion, down 26.2% year-over-year.

• Dividend of €1 per share approved for 2023, with €0.5 per share paid in January and July 2024.

Outlook and guidance

• Full-year 2024 EBITDA guidance reaffirmed at €4.9–5.2 billion, with ordinary net profit guidance 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.

• 98% of 2024, 94% of 2025, and 60% of 2026 production already sold in advance.

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