Enel Group reported growing revenues to 75.6 billion euros, a 1 billion euro increase (+1.3%) compared with the 74.6 billion euros posted in 2017. The positive performance is mainly attributable to changes in the scope of consolidation, following the acquisitions of Enel Distribuição São Paulo in Brazil in June 2018 and of Enel X North America in August 2017, as well as to an increase in sales of energy from renewable generation in Italy, Spain and South America, and to an increase in free market sales in Italy. These positive factors more than offset the adverse exchange rate developments, mainly due to the depreciation of South American currencies.
In addition, revenues for 2018 include the proceeds from the sale, within the framework of the Build, Sell and Operate (BSO) model, of 80% of the capital of eight project companies in Mexico, as well as the disposal of the stake in EF Solare Italia and the indemnity related to the sale of the Group’s stake in Enel Rete Gas.
Ordinary EBITDA amounted to 16.2 billion euros, up 3.8% compared with 15.6 billion euros in 2017. The increase mainly reflects the improved margin registered on the renewable business in Italy, Spain and South America and on the free market in Italy, as well as the effect of the acquisition of Enel Distribuição São Paulo. These positive factors more than offset the adverse exchange rate developments mentioned above.
EBITDA, which includes the effects of extraordinary transactions, amounted to 16.3 billion euros, increasing in line with ordinary EBITDA.
Net financial debt at the end of 2018 amounted to 41.1 billion euros, up 9.9% compared with 37.4 billion euros at the end of December 2017. The increase largely reflects the acquisition of Enel Distribuição São Paulo, the public tender offer for the purchase of all the shares of the subsidiary Enel Generación Chile held by minority shareholders, the payment of 2017 dividends, investments during 2018 and adverse exchange rate developments. The growing cash flow from operations only partially offset the abovementioned factors.
Employees at the end of 2018 numbered 69,272 (62,900 at the end of 2017). The increase mainly results from the acquisitions of international companies, mainly Enel Distribuição São Paulo.
Francesco Starace, Enel’s CEO and General Manager, said: “We closed 2018 with excellent results, whereby we hit our EBITDA target for the year. We will continue to work towards the targets set by the Group’s strategic plan, focusing on the sustainability of our actions on the markets aimed at growth in renewables, distribution and advanced energy services. In 2018 we connected over 3 GW of renewable capacity to grids around the world and we posted an increase in revenues driven by renewables and acquisitions in distribution, including Enel Distribuição São Paulo which established us as Brazil’s leading electricity distributor. Enel X’s advanced energy services further contributed to the increase in Group’s revenues. By improving our cash generating ability, we contained net financial debt, against higher Group’s resource commitments in organic growth and acquisitions, as well as persisting foreign exchange headwinds.”
In 2018, the Enel Group generated a total of 250.3 TWh of electricity (249.9 TWh in 2017), distributed 485.4 TWh on its networks (460.7 TWh in 2017) and sold 295.4 TWh (284.8 TWh in 2017).
More specifically, in 2018 the Enel Group generated 197.1 TWh of electricity (196.4 TWh in 2017), distributed 257.7 TWh (232.2 TWh in 2017) and sold 191.1 TWh (181.6 TWh in 2017) outside Italy.