Enel’s net ordinary income up by 4.6% in 1h 2018, Group extends its outright lead in global renewables sector

·       Revenues: 36,027 million euros (36,315 million euros in 1H 2017, -0.8%)

-       the slight decrease is mainly attributable to adverse exchange rates, mainly in South America, partly offset by an increase in revenues posted in renewables, distribution in Brazil and Argentina as well as the new Enel X business line

  ·       EBITDA: 7,857 million euros (7,678 million euros in 1H 2017, +2.3%)

-       the rise reflects organic growth in renewables, distribution tariff increases in Argentina and Spain and the improvement in margins from final customers in Spain and Romania, factors that more than offset exchange rate losses in South America

·       Ordinary EBITDA: 7,729 million euros (7,532 million euros in 1H 2017, +2.6%) net of extraordinary items in the two periods

·       EBIT: 4,875 million euros (4,854 million euros in 1H 2017, +0.4%)

-      reflecting the increase in EBITDA, which more than offset the rise in depreciation, amortisation and impairment in the period, mainly due to the adoption of IFRS 15

·       Group net income: 2,020 million euros (1,847 million euros in 1H 2017, +9.4%)

-     increase attributable to a decline in net financial expenses, mainly reflecting the Group’s efficient management of liabilities and lower taxes for the period

·       Group net ordinary income: 1,892 million euros (1,809 million euros in 1H 2017, +4.6%)

·       Net financial debt: 41,594 million euros (37,410 million euros at the end of 2017, +11.2%)

-      increase due to acquisitions in the period, specifically the Brazilian company Eletropaulo, the public tender offer for Enel Generación Chile shares, carried out as part of the reorganisation of the Group’s shareholdings in Chile, the payment of the interim dividend for 2017 as well as capital expenditure for the period

Francesco Starace, Enel CEO and General Manager, said: “Enel continued its run of solid financial results in the first half of 2018, delivering further EBITDA growth driven particularly by renewables. We connected 3.4 GW of new renewable capacity to grids around the world between June 2017 and June 2018, setting yet another all-time record for capacity installed in a single 12-month period by any player in the sector. Enel X also made pleasing progress in areas such as demand response. Also during the period, we carried out two bolt-on transactions, namely the acquisition of Brazilian distributor Eletropaulo and the purchase of a stake in ultra-broadband wholesale operator Ufinet International, consolidating our position as a leading global infrastructure player. During the second half of the year, we will continue to focus on industrial growth, investing in renewables and infrastructure & networks, while advancing the full digitisation of the company, thereby further enhancing operational efficiency. Simplification of the Group structure will continue, as well as the integration of the newly acquired businesses. The solid performance in the first half gives us confidence in confirming our targets for full year 2018.”