Q1 2025 Earnings | Friday, May 9

Endesa, S.A.

Company Overview

Endesa, S.A. reported its First Quarter 2025 Results in a presentation hosted by CEO José Bogas and CFO Marco Palermo.

Key Highlights

  • EBITDA reached €1.4 billion, a 33% increase from the previous year.
  • Net ordinary income approximately €600 million, doubling last year's figure.
  • Strong cash generation with FFO of €1.2 billion, an increase of €1.1 billion year-over-year.

Financial Performance

Revenue and Earnings

  • Solid performance across all business sectors despite geopolitical instability impacting commodity prices.
  • Positive cash flow generation supported by efficient capital allocation strategies.

Capital Allocation

  • Acquisition of Acciona's hydroelectric assets for approximately €0.9 billion, increasing hydro capacity.
  • Share buyback program announced for up to €2 billion, with an initial tranche of €500 million for 2025.

Market Dynamics

  • Commodity prices have shown significant volatility due to geopolitical factors, with TTF spot prices increasing by 70% on average.
  • Mainland electricity demand grew by 2.6% year-over-year, with Endesa's demand growth at 2.9%.

Regulatory and Strategic Updates

  • Endesa is in the midst of a regulatory review process to cover the next six years, awaiting updates on financial remuneration.
  • Increased focus on ensuring security of supply and competitiveness of the electricity system in Spain.

Future Outlook

  • Endesa remains confident in reaching its full-year guidance.
  • Emphasis on the importance of nuclear energy and investment in the electricity grid to support future demands.
  • Expectations of a strong recovery in demand, positioning Spain as a major hub for industrial investment in Europe.

Q&A Summary

  • Analysts inquired about the implications of the recent blackout, with no claims received by Endesa to date.
  • Discussions about the potential for increased regulation in the wake of the blackout and its impact on future operations were emphasized.

 

 

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