Italian utility giant Enel has reported a 20% increase in its ordinary adjusted net income, reaching €6.5bn for the full year 2023 against €5.4bn in 2022.
However, Enel’s revenues saw a decline of 32% in 2023 to €96bn, compared with €140.5bn the previous year.
The company attributes this decrease to lower average sale prices within an energy sector that is gradually normalising after the exceptional circumstances of 2022.
The Rome-based utility has reported its net debt figures, which amounted to €60.2bn in 2023, aligning with its projected guidance of between €60bn and €61bn.
Enel’s ordinary earnings before interest, taxes, depreciation and amortisation rose 11.6% to €22bn from €19.7bn in 2022.
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The company has proposed a total dividend of €0.43 per share, a 7.5% increase from the total dividend of €0.40 in 2022.
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By GlobalDataHowever, capex did not follow the upward trend, instead seeing an 11.4% decrease to €12.7bn for the year, down from €14.3bn in the previous year.
This reduction in investment spending is indicative of the company’s cautious approach in a time of market recalibration.
The net electricity generated by Enel in 2023 stood at 207.3 terawatt-hours (TWh), down 9% or 20.5TWh compared with the previous year.
Enel has outlined its plans to concentrate on maximising returns on investment capital while remaining vigilant for market opportunities.
The company has set its sights on growth within the grids and generation segments for 2024, expecting a declining impact from retail activity and an improvement in the gas business.
Enel is also aiming to achieve free cash flow neutrality for 2024.
Enel Group CEO Flavio Cattaneo stated: “We achieved all 2023 targets that we had already revised upwards last November. These solid results prove the effectiveness of the actions put in place by the new management in 2023, in line with our strategic priorities of optimising the risk/return profile, efficiency and effectiveness, as well as both financial and environmental sustainability.
“We reaffirm our commitment to achieving the ambitious goals set during the presentation of the 2024-2026 Strategic Plan. Specifically, in line with what we announced last November, we reasonably expect that 2024 shareholder remuneration may grow further.”
