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Enel meets targets after earnings rise 6.7% boosted by fiber gain

Enel meets targets after FY earnings rise 6.7%
Enel meets targets after FY earnings rise 6.7%   -   Copyright  Thomson Reuters 2022
By Reuters

MILAN -Enel’s core earnings rose 6.7% last year lifted by a one-off capital gain and stronger green energy business in North America and Brazil to beat expectations and meet guidance.

In preliminary results, Europe’s biggest utility said its ordinary earnings before interest, tax, depreciation and amortisation (EBITDA) were 19.2 billion euros ($22 billion)compared to a Refinitiv estimate of 18.5 billion euros.

The result was also at the top end of the 18.7-19.3 billion euro range the group set last year in guidance.

Enel, which last year made a capital gain of 1.763 billion euros on the sale of its stake in broadband network group Open Fiber, said better margins in Spain boosted by its solar and wind business had also helped lift earnings.

But it said results had been impacted by lower margins on its retail market business due to higher procurement costs.

Supply chain disruptions from the COVID-19 pandemic as well as soaring gas prices have taken a toll on utilities across Europe.

Enel, which controls Spanish utility Endesa, is looking to green power and networks to drive growth. It has pledged to ramp up its renewable energy capacity round the world to 154 gigawatts by 2030 from around 54 GW at present.

It aims to have a wholly green power generation portfolio by 2040 when it plans to be carbon free.

Revenues last year jumped 33.8% to 88.3 billion euros, boosted by its green energy business and networks, it said.

Net debt rose 14.5% on the year to 52 billion euros.

($1 = 0.8751 euros)