Endesa achieves net profit of €1,404 billion through September, up 33% form the same period in 2023

EBITDA rises by 16% to €3.881 billion, compared to the first nine months of 2023.

Endesa experienced a positive evolution in the third quarter, allowing it to resume a year-on-year growth trend in consolidated net profit as of the end of the nine months, increasing 33% over the same period in 2023 to €1.404 billion, and EBITDA, which rose by 16% compared to the same period in 2023 to €3.881 billion.
The company reassures the market that it is well-positioned to reach the upper range of the objectives set for the year: achieving an EBITDA between €4.9 and €5.2 billion and ordinary net income of €1.6-1.7 billion.
Consistent cash flow generation through September enabled the net debt ratio to reach 44%.
Investment during the first nine months totaled €1.3 billion, with grids and renewables absorbing more than two-thirds of the total.
The company has 10,100 MW of renewable power (hydro, solar, and wind) in mainland Spain, an increase of 800 MW compared to September 2023.
Additionally, 88% of mainland production was emissions-free, nine points higher than the previous year.
The deregulated market customer base remained stable at 6.7 million in the last quarter, with fixed-price electricity sales covered by emissions-free production reaching 80%.

Endesa closed the first nine months of 2024 with an EBITDA of €3.881 billion, a 16% increase compared to the same period last year, due to positive contributions from all business lines. This includes the liberalised market (generation and sales, totaling €425 million with an annual increase of 20%) and the regulated market (distribution, up 7%, contributing €102 million more than in 2023).

Consolidated net profit reached €1.404 billion, up 33% compared to the same period in 2023. This positive outcome is largely explained by the aforementioned EBITDA growth, particularly in the gas business, which has recovered from the challenging market conditions of 2023. The company recorded an effective tax rate of 27%, affected by the non-deductibility of the extraordinary levy enacted in 2022.

Additionally, Endesa highlighted to investors the recovery in electricity demand in the Iberian Peninsula (up 1.5% in adjusted terms from 2023), signaling a trend reversal after several years of decline. Average prices in the electricity pool have continued to normalize, standing at €52/MWh, 42% lower than in the first nine months of last year.

As for decarbonization, Endesa’s CO2-free production in mainland Spain accounted for 88% of the total, nine points higher than the same period last year. Mainland renewable generation capacity (hydroelectric, wind, and solar) totals 10,100 MW. In this regard, Endesa highlighted advances in its renewable business partnership strategy, signing an agreement with a partner to sell 49% of its operating solar asset portfolio for €817 million and establishing a 15-year PPA to retain production from these 48 photovoltaic plants.

Market Context
In the electricity sales market, where Endesa has emphasised strong competition amid falling electricity prices in early 2024, the third quarter ended with a stable deregulated market customer base of 6.7 million.

The company is bolstering customer loyalty through value-added services. Furthermore, 80% of fixed-price electricity sales to deregulated market customers are covered by emissions-free production.

The company has pre-sold 98% of its self-produced electricity for 2024, 97% for 2025, and 70% for 2026, thereby safeguarding margins from market volatility. This has raised the commercial margin to €18/MWh, from €13 in the first nine months of last year.

In the gas business, total sales volume decreased by a 15% to 53 TWh, mainly due to lower consumption at combined cycle plants. The company has already pre-sold 97% of the gas it purchases for 2024, 93% for 2025, and 70% for 2026. Margins have recovered to €2/MWh, with year-end levels projected to exceed this.

Financial Overview
Beyond EBITDA and net profit, Endesa’s cash generation of €1.5 billion in the third quarter brought total cash generation for the nine months to €2.669 billion, slightly below 2023, or €800 million higher when adjusted for extraordinary items that have affected cash in both years. As a result, the operating cash flow to net financial debt ratio stands at 44%.

Net debt totals €10.4 billion, consistent with year-end 2023, while gross debt decreased by 2% to €13.4 billion. The leverage ratio (net debt to EBITDA) has declined to 2.4-fold, down from 2.8-fold at year-end 2023.