Endesa increased its profit by 77%, reaching 2,541 million euros

Endesa registered a net consolidated result of 2.541 million euros in 2022, which represents a growth of 77% compared to the previous yeardriven by the good results of the gas business as a whole and a significantly smaller deterioration compared to 2021 in the value of business outside the mainland.

In particular, as the company explains, the consolidated net result of Endesa in 2021 was negatively affected by 489 million due to the deterioration of operations in non-peninsular territories. The reduction for this concept is significantly lower in 2022 (27 million). In the Appendix, The company achieved a net regular result of 2,398 million, 26% more than in 2021. mainly thanks to the good results of the gas business and the high level of operation of the combined cycle plant.

This figure will make it possible to propose a gross dividend distribution of 1,585 euros per title, 6% more than expected, as reported by the company, which also breaks its historical record in investments, with 2,343 million, 8% more than the previous year. 76% of this investment complies with the taxonomy of the European Union. By 2023, he plans to break his record again by investing 20% ​​more.

The gross operating result (Ebitda) was, in comparable conditions, 5.327 million, which represents a 25% improvement despite the poorer performance of the commercial business, reduction in the margin of renewable energy sources and the negative impact of regulatory measures in the distribution business.

“We successfully overcame one of the most challenging years in recent years, both due to the market context and due to regulatory interventions. We retain and attract new customers thanks to products and services that allow us to insulate them from experienced price spikes. To the 8% increase in investment in 2022, the year in which we reached our highest historical level, we will add the 20% increase already announced for 2023,” said Endesa’s CEO, José Bogas. “This shows our firm commitment to the energy transition in the Iberian Peninsula which promote energy independence and lower electricity prices. All this allows us to offer a significant improvement in our compensation to shareholders, 10% more compared to 2021, which will bring the dividend yield to around 9%”, he added.

He is appealing the energy tax

On the other sideEndesa points out that the year was also marked by numerous regulatory measures both at the European and Spanish level. As for one of them, the 1.2% rate on the revenues of certain energy companies approved by the Spanish government, Endesa appealed to the national court, considering it “unjustified and discriminatory”. This measure was added to a complaint made a week ago by the Spanish electricity employer Aelec.

The company pointed out that the achieved results enable the registration of 900 million for profit tax on profit in 2022, which represents an effective rate of 25.6 percent. Endesa’s tax contribution in the year amounted to EUR 3.843 million. Spain represents 85% of this figure and the company remains among the top five taxpayers in the country.

Likewise, in 2022, with the highest electricity prices in the history of Spain, the average wholesale price in the Iberian market in 2022 was 168 euros per megawatt hour (MWh), 50% higher than in 2021.

The application of the gas cap mechanism since June, together with the above-mentioned reduction in the gas price at the end of the year, allows Spain and Portugal to compare favorably with other major markets in the area: Germany (235 euros/MWh), France (276), Italy (304) or Great Britain (240).

Regarding the evolution of the company’s net debt, it reaches EUR 10,900 million, which represents an increase of EUR 2,100 million compared to the end of 2021, due to the volume of investments and dividend payments during 2021 (by EUR 1,532 million), partially compensated by free cash flow of EUR 1,672 million achieved in the year. The figure of free cash flow was particularly affected by regulatory items awaiting payment by the Management Board, which increased from 800 million at the end of 2021 to 2,300 million at the end of last year.

Likewise, the leverage ratio (net debt compared to Ebitda in comparable terms) is twice as high, with 2.1 times at the end of 2021.

In the corporate sphere, the board of directors of Endesa proposed the renewal of the four directors whose mandate expires this year (Juan Sánchez-Calero, Ignacio Garralda, Francisco de Lacerda and Alberto de Paoli), which must be approved by the shareholders’ meeting to be held on a date yet to be announced.