The “excellent results” achieved by Enel during the first quarter of 2019 “confirm the growth trajectory we have pursued so far and the excellent operating performance recorded by all our business units.” This is how Enel CEO Francesco Starace analysed the Group’s results during the first three months of 2019.
In the first quarter of 2019, we achieved excellent results which confirm the growth path that we have pursued so far and the excellent operating performance recorded by all business units
Francesco Starace, Enel CEO
Double-digit increases for ordinary EBITDA (4,454 million euro, + 13,9% compared to the same period the previous year) and ordinary net income (1,159 million euro, + 11,3%). As the CEO noted, “the results achieved on the basis of the fundamental principles of the 2019-2021 Strategic Plan had an important effect.” Nor was it a coincidence that Enel Green Power and electricity trading activities in Italy, Chile and Romania contributed to the growth of revenues, to € 20,891 million (+ 10,3%). This confirmed that "renewable energies, whose installed capacity increased by 800 MW during the quarter, and the distribution networks, pushed by the integration of Enel Distribuição São Paulo, are still the engine of our performance, and represented 70% of the ordinary EBITDA of the Group during the quarter.”
An increase in EBITDA to € 4,548 million (+ 12,7%) was also recorded. This was due to the growth in renewables, together with some improved margins in distribution following the acquisition of Enel Distribuição São Paulo, and also in generation and trading activities in Italy. Regulatory improvements and a reduction in operating costs also had an impact. Starace explained that "Total investments increased by 36% during the period. They were mainly directed towards asset development, which stood at 1,2 billion euro, largely for renewables in the Americas and Spain, as well as for networks in Italy. As far as participation in Enel Américas is concerned, it was increased to 56,42%. This was in line with the target of Group simplification. At the same time Enel further strengthened its presence in renewables in North America, with the reconsolidation of 650 MW of capacity from one of its joint ventures. And “still with reference to Enel Américas, we expect a capital increase of $3 billion. This was recently approved and should be finalised over the next few months. This will create further growth opportunities in South America, thereby strengthening our presence in the region.”
During his speech, the Enel CEO outlined the next goals: “During 2019 we plan to accelerate investments, focusing on renewables in North America, as well as continuing to invest in the networks, mainly in Italy and in South America. The generation of cash flow is expected to remain consistent throughout the period.” In conclusion, Starace highlighted how these results will enable the Group to continue along the same path in 2020.
Enel editorial staff