· Revenues: 38,991 million euros (36,027 million euros in the first half of 2018, +8.2%)
- the increase is mainly attributable to distribution, especially in South America through the contribution of Enel Distribuição São Paulo and the agreement between Edesur and Argentina’s government to settle pending regulatory issues, as well as to renewables in North and South America and conventional generation in Italy and Chile
· EBITDA: 8,907 million euros (7,857 million euros in the first half of 2018, +13.4%)
- the increase was driven by the performance of distribution in South America, which benefited from the performance of Enel Distribuição São Paulo and regulatory changes in Brazil and Argentina, as well as by growth in renewables and efficiency gains in conventional generation
· Ordinary EBITDA: 8,763 million euros (7,729 million euros in the first half of 2018, +13.4%) net of extraordinary items in the two periods
· EBIT: 5,213 million euros (4,875 million euros in the first half of 2018, +6.9%)
- the increase reflects EBITDA growth, which more than offset higher depreciation, amortisation and impairment losses, mainly connected with writedowns of two coal-fired plants in Chile and the Reftinskaya plant in Russia, as well as the depreciation of the rights of use for leased assets in application of IFRS 16
· Group net income: 2,215 million euros (2,020 million euros in the first half of 2018, +9.7%)
- on the back of EBIT growth, which more than offset the increase in net financial expense and charges connected with equity investments measured using the equity method
· Group net ordinary income: 2,277 million euros (1,892 million euros in the first half of 2018, +20.3%)
· Net financial debt: 45,391 million euros (41,089 million euros at the end of 2018, +10.5%)
- Growth mainly reflects the increase of capital expenditure for the period, the payment of dividends, the acquisition of a number of companies from Enel Green Power North America Renewable Energy Partners, LLC (“EGPNA REP”) and initial application of IFRS 16. These factors were partly offset by positive cash flows from operations
Francesco Starace, Enel CEO and General Manager, said: “In the first half of 2019 Enel has delivered excellent results, with double-digit growth in both EBITDA and net ordinary income, confirming the solidity of our business model, which fully integrates sustainability as a key driver of financial value creation.
Networks and renewables are once again confirmed as Enel’s drivers of growth, fuelled by a 33% increase in development capex versus last year. As of today, we are building and developing over 7 GW of renewable capacity, which is expected to contribute around one billion euros in EBITDA per year, once operational. At the same time, networks boosted Group’s EBITDA growth significantly, on the back of continued benefits from the consolidation of Enel Distribuição São Paulo in Brazil. In the period, we have also driven growth in the advanced energy solutions business, as shown by Enel X’s installation of 63,000 electric vehicle charging points, a 70% increase year-on-year.
The acceleration on our Strategic Plan allowed us to post around 200 million euros of efficiencies, placing us well on track to reach our 2019-2021 target of 1.2 billion euros in cumulated opex savings. We are continuing to deliver on the Group’s simplification target, with the completion of the first 5% share swap of Enel Américas and the launch of the second one for an additional 5%. With the sale of Reftinskaya GRES in Russia and the progress towards decommissioning the Group’s conventional generation fleet, we are furthering our commitment to be fully decarbonised by 2050.
In the period, we continued to progress on all the Group’s commitments on UN Sustainable Development Goals (SDGs); in particular, we reached 56% of emission-free production, bringing us closer to our 2021 target of 62% and advancing in the pursuit of SDG 13 on climate action.
Looking forward, sound cash flow generation, which fully covered the acceleration of our capex dynamics, will continue to sustain Enel’s growth. The high level of visibility on our results, ensured by continued operational delivery, constant efficiency improvements and new projects secured, allows us to confirm full year targets while giving us confidence in achieving our Plan’s medium-term goals.”
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