Enel (ENEL) Q3 2024 earnings summary

Executive summary

• Ordinary EBITDA for the nine months rose 6–6.5% year-over-year to €17.4 billion, with ordinary net income up 16–16.2% to €5.8 billion, reflecting strong operational performance, cost discipline, and renewables growth.

• Reported net income increased 38% year-over-year to €5.87 billion, supported by higher operating profit, lower financial expenses, and M&A capital gains.

• Revenue declined 17.1% year-over-year to €57.6 billion, mainly due to lower electricity and gas sales volumes, prices, and changes in consolidation scope.

• Net financial debt decreased by 3.3% to €58.2 billion, supported by asset disposals, positive cash flow, and disciplined capital allocation; pro-forma net debt is ~€56 billion.

• Interim dividend of €0.215 per share approved, with a minimum 2024 DPS of €0.43 and potential payout up to 70% of net ordinary income if cash flow targets are met.

Financial highlights

• Reported EBITDA increased 22% year-over-year to €18.6 billion; ordinary EBITDA up 6–6.5% to €17.4 billion.

• FFO for nine months was €9 billion, with cash generation on track for full-year expectations.

• Net financial debt/EBITDA improved to 2.4x, below sector average.

• Capital expenditure totaled €7.6–7.8 billion, with over half allocated to grids and about 30% to renewables.

• Basic earnings per share rose to €0.56 from €0.40–0.41.

Outlook and guidance

• All 2024 economic and financial targets are confirmed, with ordinary EBITDA expected between €22.1–22.8 billion and net ordinary income between €6.6–6.8 billion.

• Dividend policy targets a minimum DPS of €0.43 for 2024–2026, with potential for up to 70% payout if cash neutrality is achieved.

• New Strategic Plan to be presented on November 18th; shareholder remuneration policy to be updated at Capital Markets Day.

• Focus remains on selective investments in grids and renewables, and active customer portfolio management.