Enel has reported revenues of €57.6 billion for the first nine months of 2024, down 17.1 percent from the same period in 2023.
The decrease in Enel revenue reflects lower electricity production in thermal generation and reduced electricity and gas sales amid declining market prices. Positive contributions came from Enel Green Power’s renewable sales in Italy, Spain, and Latin America, and higher revenues in Enel Grids from tariff adjustments in Italy, Spain, and Argentina.
This decrease reflects various market factors and changes in the company’s business segments:
Revenues from thermal generation dropped by 45 percent to €5.9 billion, with coal-fired generation now representing just 0.9 percent of total group revenue compared to 4.2 percent in 2023.
Thermal Generation and Trading revenue plunged by 41.6 percent, from €28.8 billion to €16.8 billion, due to reduced electricity production in thermal generation, amid shifting market demand and Enel’s gradual divestment from non-renewable energy sources.
Enel Green Power revenue grew by 16.7 percent, reaching €9.3 billion from €8.0 billion in 2023. The increase is attributed to higher energy production from hydro, solar, and wind resources in Italy, Spain, and Latin America, along with revenue contributions from new plants in North America.
Enel Grids segment saw an 11.0 percent rise in revenue, totaling €16.9 billion, up from €15.2 billion in 2023. The growth was driven by tariff adjustments in Italy, Spain, and Argentina, as well as enhanced performance in Chile and Colombia.
End-user Markets revenue decreased by 20.1 percent, from €38.9 billion to €31.1 billion. The drop reflects lower electricity and gas sales, largely influenced by a market environment with declining prices and demand.
Holding and Services: Revenue fell slightly by 7.0 percent, from €1.5 billion to €1.35 billion.
Capital Expenditure
Enel invested €7.6 billion, down 13.2 percent year-over-year. Investments primarily focused on Enel Grids (54.7 percent of total) and Enel Green Power (29.6 percent). The reduction aligns with strategic priorities and follows the completion of key battery storage projects in Italy. However, distribution investments increased to enhance service reliability.
Capital Expenditure for Thermal Generation and Trading decreased by 5.9 percent, from €460 million in 2023 to €433 million in 2024, reflecting a reduction in focus on traditional energy sources.
Enel Green Power capital expenditure dropped significantly by 39.6 percent, from €3.7 billion in 2023 to €2.25 billion in 2024. This decline aligns with Enel’s shift in investment focus after completing several renewable energy projects.
Enel Grids Capital Expenditure saw an increase, with spending rising by 11.7 percent to €4.16 billion from €3.72 billion in 2023. The increase is aimed at enhancing the reliability and quality of Enel’s distribution network.
End-user Markets capital spending decreased by 7.4 percent, from €753 million to €697 million, as Enel continues to optimize investment in consumer-facing operations.
Enel’s net income grew significantly to €5.87 billion, marking a 38 percent increase over the same period in 2023.
CFO Stefano De Angelis confirmed Enel’s commitment to reducing debt, targeting a net debt-to-EBITDA ratio of 2.4x, which would place it below industry averages. This focus on financial discipline aims to support sustainable growth for stakeholders, in line with the Group’s strategic outlook through year-end 2024.
Baburajan Kizhakedath