Enel Backs 2023 View as 1Q Earnings Rose Despite Lower Revenue

By Joshua Kirby

Enel on Wednesday backed its outlook for the full year after reporting a rise in adjusted first-quarter earnings, despite a decline in revenue as energy prices fell from last year's peaks.

The Rome-based energy company said quarterly net profit came to 1.03 billion euros ($1.13 billion), down from EUR1.43 billion in the same period a year earlier. On an adjusted basis, however, net profit--or net ordinary income--rose 1.9% to EUR1.51 billion.

Earnings before interest, taxes, depreciation and amortization increased to EUR4.765 billion from EUR4.48 billion. Adjusted for one-offs, ordinary Ebitda rose 22% EUR5.46 billion.

"This positive change is essentially attributable to the performance of the integrated business," Enel said.

Revenue meanwhile fell 23% to EUR26.41 billion in the quarter from EUR34.96 billion in the previous year. Enel pointed to progressively declining energy prices amid a "normalization of the energy context."

Capital expenditure increased 13% on year to EUR2.87 billion, Enel said, while net debt declined 1.9% to EUR58.9 billion from EUR60.1 billion at the end of last year.

The company backed its guidance for the full year, including ordinary Ebitda of EUR20.4 billion-EUR21 billion and ordinary net income of EUR6.1 billion-EUR6.3 billion, as well as a further reduction in net debt to EUR51 billion-EUR52 billion.

Write to [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

May 03, 2023 12:15 ET (16:15 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.