Renewable energy giant Enel boosts profits outlook
Increases in generation of hydropower and solar power and sale of assets turbocharged green profits for Italian utility
Italian energy giant Enel has reported a leap in profits for the year so far, partly driven by the strong performance of its green energy arm.
The Italian utility, one of the world’s largest wind and solar owners, reported preliminary ordinary operating earnings (Ebitda) of €16.4bn ($17.5bn) for the first nine months of this year.
That is a 29.3% increase on the same period in 2022, when it took €12.7bn.
The group’s net income has jumped to €4.3bn, an eye-catching 141.9% increase from €1.8bn in the same period last year.
“In light of the solid operating performance,” Enel said it has upgraded its guidance related for its earnings for 2023, saying it now expects ordinary Ebitda of between €21.5bn and €22.5bn. It had previously set a target between €20.4bn and €21bn.
Many of the best results in the business came from its renewables arm Enel Green Power, whose revenues jumped to €8bn from €6.5bn last year, a 22.8% increase.
Its ordinary Ebitda rose by 68.6% to €3.6bn.
Enel said the strong performance of its green arm is mainly due to the increase in hydropower (+7.2TWh) and solar generation (+2.9TWh) in Italy, Spain and Latin America, as well as capital gains generated through sales.
This saw the appointment of prominent Italian executive Flavio Cattaneo as the new CEO. Paolo Scaroni – himself a former CEO of the utility and current chair of AC Milan football club – became Enel’s new chairman.
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