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Enel, Starace analyses the first quarter of 2020

Starace confirmed Enel’s growth during the first months of 2020

“A financially sound company”, CEO Francesco Starace confirmed on 19 March at the conference call to present the 2019 financial statements, during which he pointed out that the Coronavirus crisis is not expected to have a significant impact on the results for 2020. This is also confirmed by the numbers of the first quarter of the current year: the Group net ordinary income is at 1,281 million euros (+10,5%, compared to the same period the previous year), and EBITDA at 4,708 million euros (+3.5%, compared to 2019). Ordinary EBITDA is at 4,454 million euros (+6,4%): the increase was driven by the significant results achieved by Thermal Generation and Trading, a larger contribution from Enel Green Power, and the effects of the renewal of Endesa’s Fifth Collective Bargaining Agreement in Spain, which more than offset adverse exchange rate developments in Latin America. EBIT amounted to 3,109 million euros (+4.3%), while the Group net income is at 1,247 million euros (-0.7%, compared to the first quarter of 2019). The changes in revenues, which are at 19,985 million euros (-12.2%), are attributable to lower volumes of electricity sales in Italy and Spain, as well as gas in Spain, to Thermal Generation and Trading in Italy, and to the effects of adverse exchange rate, especially in Brazil, Chile and Colombia.

Renewables and digitalisation are key for stimulating the recovery from the Covid-19 emergency

Francesco Starace, Enel CEO

Overall, the results of the first quarter confirm what CEO Francesco Starace had expected: as pointed out by Enel in a statement, “there is currently no evidence of significant impacts of the emergency related to the Covid-19 outbreak on the Group”. Furthermore, since the beginning, “constant monitoring of the impacts of the emergency on macroeconomic and business variables has been implemented. This has been done in order to have the best, real-time estimates of potential effects on the Group, as well as to enable their mitigation with response or contingency plans”.


The quarterly results therefore confirm the solidity of the Group – also in terms of its ability to “withstand the effects of volatile scenarios” and ensure that “there will be no risk with regard to dividends, neither in 2019 nor in 2020”. Commenting on the coming months in an interview with “Bloomberg”, which took place on 7 May during the quarterly report, CEO Francesco Starace pointed out that renewables and digitalisation are key for stimulating the recovery from the Covid-19 emergency. Enel has followed this path for some time and still continues to do so today: in the period January-March 2020, electrical generation from renewable sources – including managed capacity – has far exceeded thermal generation, and has reached 28 terawatt-hours (25.6 terawatt-hours in the first quarter of 2019, +9.3%). Thermal generation, on the other hand, is at 18.8 terawatt-hours (29.3 terawatt-hours in the first quarter of 2019, -35.9%). Enel’s energy generation from “zero emissions” sources is equivalent to 64% of its total capacity today.


Enel editorial staff