Enel SpA reported first-half earnings that beat analyst estimates, as the energy group benefited from a normalization of commodity markets.
(Bloomberg) — Enel SpA reported first-half earnings that beat analyst estimates, as the energy group benefited from a normalization of commodity markets.
Italy’s largest listed company posted adjusted earnings before interest, taxes, depreciation, and amortization of €10.7 billion ($11.8 billion) for the first six months, ahead of a Bloomberg consensus estimate of €10.3 billion, according to a statement Wednesday.
The performance was driven by Enel’s integrated business, which benefited from a progressive normalization of commodity markets and a higher amount of electricity generated and sold in Italy, Spain and Latin America, the company said.
Chief Executive Officer Flavio Cattaneo, who took over in May, has pledged to focus on improving efficiency. Initial moves include organizational changes like naming a new chief financial officer.
Cattaneo, who was appointed to the CEO post at the state-controlled firm by Prime Minister Giorgia Meloni’s government, is set to work through a €21 billion asset disposal plan kicked off by his predecessor Francesco Starace.
‘No Rush’
While Cattaneo, a former CEO at Telecom Italia SpA and Terna SpA, is broadly committed to the asset sale strategy he expects to focus on “efficiency improvements in all activities and countries” through optimization measures, the company said in the statement. Enel began a spending review in June, Cattaneo said on a conference call.
Deals already closed or announced under the asset disposal plan account for a total of around €12 billion, or 60% of planned sales, according to a company presentation Wednesday.
“We are not in a rush to sell and we will sell only at the right price,” Cattaneo said on the call, noting that his view is that Enel could reach its targets even without fully completing the disposal program.
The CEO said Enel is confident it can hit the deleveraging level set in its full-year targets, “even if we don’t dispose of all the assets announced last year.”
Enel also said during a presentation Wednesday that while net debt stands at €62.2 billion, it could have been around €57 billion in pro forma terms if cash from the announced disposals were considered. The company confirmed its net debt target range of €51 billion to €52 billion for end-2023.
The group on Wednesday also maintained its guidance for the full year and confirmed its dividend policy. The next strategy presentation has been confirmed for November.
(Updates with presentation, conference call from sixth paragraph.)
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