Enel (ENEL) Q2 2024 earnings summary

Executive summary

• Achieved strong operational and financial results in H1 2024, with ordinary EBITDA rising 8.8% to €11.7 billion and net ordinary income increasing 20.6% to €4.0 billion, driven by renewables and efficiency gains.

• Group net income surged 64.9% to €4.1 billion, reflecting operational improvements and gains from asset disposals.

• Over €5 billion in cash from disposals and new partnership deals, notably in Spain and Italy, enhanced value and accelerated returns.

• Zero-emission generation reached 84% of total, up 11 percentage points, marking a significant milestone in the energy transition.

• Management remains focused on organic growth, efficiency, and sustainability, with a clear strategy for capital allocation.

Financial highlights

• Ordinary EBITDA reached €11.7 billion, up 8.8% year-over-year; reported EBITDA rose 32.9% to €12.9 billion, supported by renewables and asset sales.

• Ordinary net income increased 20.6% to €4.0 billion; reported net income was €4.14 billion, up 64.9% year-over-year.

• FFO was €5.5 billion, with FFO minus net capex positive at €1.6 billion, supporting deleveraging.

• Net financial debt decreased 4.6% to €57.4 billion, with a net debt/EBITDA ratio improving to 2.4x.

• Capital expenditure was €5.3 billion, down 12.6%, focused on grids (53%) and renewables (31%).

Outlook and guidance

• Full-year 2024 ordinary EBITDA expected at the higher end of €22.1–22.8 billion guidance range, with strong visibility and confidence in targets.

• Ordinary net income guidance for FY 2024 is €6.6–6.8 billion.

• Dividend per share for 2024–2026 set at a minimum of €0.43, with potential for higher payout if cash neutrality is achieved.

• Strategic plan for 2024–2026 targets €35.8 billion in gross capex, with €18.6 billion in grids and €12.1 billion in renewables.

• FFO for the second half projected above €8 billion, with positive net cash flow expected.