Italian utility Enel has reported an 86.8% surge in group net income for Q1 2024, reaching €1.93bn from €1.03bn in Q1 2023.

The rise comes despite a 26.4% slump in revenues to €19.4bn from Q1 2023’s €26.4bn.

The decline in revenue has been linked to lower earnings from thermal generation, driven by a drop in prices and reduced electricity volumes from thermal sources, particularly in Italy and Spain.

However, the company’s ordinary earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 11.6% to €6.09bn from €5.46bn in the same quarter of the previous year.

Enel attributed the EBITDA increase to the positive performance of certain business units and geographic areas.

Thermal Generation and Trading revenues declined 51.7% to €5.88bn from the €12.17bn reported in 2023.

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Conversely, Enel Green Power’s revenues rose by 17% to €2.99bn from €2.56bn.

The end-user markets division also witnessed a revenue drop, falling 21.2% to €11.9bn from €15.1bn in 2023.

Capital expenditure for the quarter decreased by 10% to €2.58bn, with Enel Grids and Enel Green Power receiving the majority of investment, accounting for 51% and 35%, respectively.

The reduction in capital expenditure is in line with the company’s strategic focus, as outlined in its strategic plan for 2024–26, and follows the completion of battery storage system activities in Italy.

Electricity sales for the quarter were reported at 72.9 terawatt-hours (TWh), down 6.8% from 78.2TWh sold in the same period of 2023.

Gas sales also declined by 19.4% to 2.9 billion cubic metres (bcm) from 3.6bcm.

Enel CFO Stefano De Angelis stated: “The solid results in the first quarter of 2024 confirm the effectiveness of the managerial actions we have undertaken with the 2024 to 2026 strategic plan, as well as the resilience of our business model in all the countries in which we operate.

“In the coming months, Enel will continue to stringently pursue selective capital allocation, maximising operational efficiency and effectiveness as well as financial and environmental sustainability.

“We are therefore confident of our ability to reach all our objectives for 2024, including the reduction of group net debt, which has already declined to €54bn as of today, also considering disposals currently under completion.

“The excellent performance registered in the first quarter provides us with clear visibility including on the confirmation of the shareholders’ remuneration policy presented during our capital markets day in November 2023.”