Enel Aims for Upper Range of Guidance After Jump in Earnings

By Mauro Orru

Enel said it expects to reach the upper end of its guidance this year and potentially lift its dividend after earnings surged in the first half of the year, led by the performance of renewable-energy operations.

The Rome-based energy company posted a net profit of 4.14 billion euros ($4.49 billion) compared with EUR2.51 billion a year earlier. On an adjusted basis, net profit--or net ordinary income--climbed nearly 21% to EUR3.96 billion.

Earnings before interest, taxes, depreciation and amortization rose almost 33% to EUR12.86 billion. Adjusted for one-offs, Ebitda--or ordinary Ebitda--increased 8.8% to EUR11.68 billion.

Revenue fell to EUR38.73 billion from nearly EUR47.10 billion amid declining prices and a decrease in the amount of electricity sold.

"The results registered and the visibility on the second half of the year position us in the high end of the guidance range communicated to the markets which, in compliance with the achievement of cash neutrality, would enable us to reach a dividend above the fixed minimum of 0.43 euros per share," said Chief Executive Flavio Cattaneo.

Enel has guided for net ordinary income between EUR6.6 billion and EUR6.8 billion this year, and ordinary Ebitda between EUR22.1 billion and EUR22.8 billion.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

July 25, 2024 12:39 ET (16:39 GMT)

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