· Revenues: 20,891 million euros (18,946 million euros in the first quarter of 2018, +10.3%)
- the increase mainly reflects the growth in revenues posted by Enel Green Power, those from electricity trading in Italy, Chile and Romania and fuel sales in Italy and from the change in the scope of consolidation, notably the acquisition of Eletropaulo (now Enel Distribuição São Paulo)
· EBITDA: 4,548 million euros (4,037 million euros in the first quarter of 2018, +12.7%)
- the increase is mainly due to the growth in renewables, better margins in the distribution segment following the acquisition of Enel Distribuição São Paulo, regulatory improvements as well as better margins in generation and trading in Italy and reduced operational costs, mainly reflecting the first-time application of accounting principle IFRS 16
· Ordinary EBITDA: 4,454 million euros (3,909 million euros in the first quarter of 2018, +13.9%) net of extraordinary items in the periods under review
· EBIT: 2,981 million euros (2,538 million euros in the first quarter of 2018, +17.5%)
- the increase is attributable to the improvement in EBITDA, which more than offset the increase in depreciation and amortisation, mainly due to the application of IFRS 16, which provides for the recognition of costs for leases, including rentals, as leased property, plant and equipment or rights of use over leased assets, items which are depreciated
· Group net income: 1,256 million euros (1,169 million euros in the first quarter of 2018, +7.4%)
- the increase reflects the improvement in EBIT, which was only partly offset by an increase in net financial expense and a reduction in income from equity investments accounted for using the equity method
· Group net ordinary income: 1,159 million euros (1,041 million euros in the first quarter of 2018, +11.3%)
· Net financial debt: 45,093 million euros (41,089 million euros at the end of 2018, +9.7%)
- the increase primarily reflected the first-time application of IFRS 16, capital expenditure in the period, the payment of the dividends on 2018 results, the acquisition of a number of companies from Enel Green Power North America Renewable Energy Partners, LLC (“EGPNA REP”), the effects of which were partly offset by positive operating cash flow, as well as adverse exchange rate developments
Francesco Starace, Chief Executive Officer and General Manager of Enel, said:
“In the first quarter of 2019, we registered excellent results confirming the growth path that we are pursuing so far as well as the outstanding performance posted by all business lines. Enel’s ordinary EBITDA grew by 13.9% and net ordinary income by 11.3% over the same period of 2018, backed by the continued delivery on our 2019-2021 Strategic Plan pillars. Renewables, whose installed capacity increased by 800 MW this quarter, and distribution networks, which benefitted from the integration of Enel Distribuição São Paulo, confirm their role as driving forces of our performance and in the first quarter of this year accounted for 70% of the Group’s ordinary EBITDA. Overall investments increased by 36% in the period and were mainly allocated to asset development, which stood at 1.2 billion euros and focused on renewables in the Americas and Spain as well as on networks in Italy.
In line with our strategic pillar on Group simplification, we increased our stake in Enel Américas to 56.42% and further strengthened our positioning in renewable generation in North America through the reconsolidation of 650 MW of assets from one of our joint ventures. Again with regards to Enel Américas, we expect the recently approved 3 billion US dollar capital increase, due to be finalised in the coming months, to unlock additional growth opportunities in South America, strengthening our footprint in the region.
In 2019, we envisage an acceleration in capex with a particular focus on renewables in North America, as well as continuing our strong investment in networks, mainly in Italy and South America, whereas cash flow generation is expected to remain solid throughout the period. This good start to the year enables us to confirm the guidance for full year 2019.”
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