Enel: solid results in 2023 with ordinary EBITDA at 22 billion euros (+11.6%) and Net Ordinary Income at 6.5 billion euros (+20.7%)

Main consolidated economic and financial data

·       Revenues: 95,565 million euros (140,517 million euros in 2022, -32%)

­    The change is mainly attributable to the lower average sale prices against a framework characterized by a gradual normalization of the energy sector compared to 2022, as well as to the different scope of consolidation

·       Ordinary EBITDA: 21,969 million euros (19,683 million euros in 2022, +11.6%)

­   The increase is attributable to the positive result of the integrated businesses and of distribution activities, net of changes in the scope of consolidation and of Stewardship transactions compared to the previous year  

·       EBITDA: 20,255 million euros (19,918 million euros in 2022, +1.7%)

·       Group net ordinary income: 6,508 million euros (5,391 million euros in 2022, +20.7%)

­    The increase is attributable to the positive performance of ordinary operations and the lower incidence of non-controlling interests, which more than offset the increase in net financial expense due to market interest rate evolution compared to the previous year, as well as the higher tax charges, attributable to the improvement of results  

·       Group net income: 3,438 million euros (1,682 million euros in 2022, +104.4%)

·       Net financial debt: 60,163 million euros (60,663 million euros in 2022, -0.8%)

­    The positive cash flow generated by operations, the sale of certain equity investments no longer considered strategic, the effects associated to the issuance of non-convertible subordinated perpetual hybrid bonds and the reporting of contributions supporting capital expenditure more than offset the needs generated by capital expenditure in the period, and the payment of dividends

­    Net financial debt/ordinary EBITDA: approximately 2.7x (compared to 3.1x in 2022)

·       Capital expenditure: 12,714 million euros (14,347 million euros in 2022, -11.4%)

­    The change is attributable to the difference in the scope of consolidation compared with 2022 as well as to the focus of investments on the development of distribution networks and renewable capacity, mainly in Europe

·      The total dividend proposed for the entire financial year 2023 is 0.43 euros per share (of which 0.215 euros per share were already paid as an interim payment in January 2024), a 7.5% increase on the total dividend of 0.40 euros per share recognized for the full financial year 2022

2023 results and objectives of the Group’s Strategic Plan

All strategic objectives for 2023 achieved

·       Group ordinary EBITDA and net ordinary income in line with guidance, revised upwards in November 2023;

·       Managerial actions implemented resulted in a significant improvement in cash flow generation with an FFO (Funds From Operations) of approximately 14.8 billion euros, recording an increase of about 5.7 billion euros compared to 2022 (around +63%). FFO is 3 billion euros more than the Enel Group’s highest historical level;

·       Significant progress in the Group's rationalization process with over 90% of the disposal target set in November 2023 already achieved, considering those already finalized and those announced so far;

·       Pro-forma net financial debt stands at approximately 53.5 billion euros; this figure also takes into account the sale of assets finalized after December 31^st, 2023, as well as those already announced and not yet finalized, the financial effects of which will only appear after the completion of the usual authorization processes by the competent authorities. Therefore, the pro-forma net financial debt/ordinary EBITDA ratio is approximately 2.4x.

*****

“We achieved all 2023 targets that we had already revised upwards last November,” commented Flavio Cattaneo, Enel Group CEO. “These solid results clearly prove the effectiveness of the actions put in place by the new management in 2023, in line with our strategic priorities of optimizing the risk/return profile, efficiency and effectiveness, as well as both financial and environmental sustainability. We reaffirm our commitment to achieving the ambitious goals set during the presentation of the 2024-2026 Strategic Plan. Specifically, in line with what we announced last November, we reasonably expect that 2024 shareholder remuneration may grow further.”