Enel ups guidance after 9-mth results beat forecasts

MILAN, Nov 7 (Reuters) – Italy’s biggest utility Enel (ENEI.MI) on Tuesday revised up its guidance on 2023 core earnings and net profit after its nine-month results exceeded analyst expectations.

The group led by newly-appointed CEO Flavio Cattaneo reported a 29% rise in nine-month ordinary core earnings to 16.39 billion euros ($17.5 billion), above an analyst consensus of 16.05 billion euros.

Nine-month ordinary net income also beat expectations, coming in at 5 billion euros, up 65% year on year.

Numerous headwinds that had weighed on the company during last year’s energy crisis – including low hydroelectric production, governments schemes to protect consumers and the need to hedge derivate positions on energy markets – have gradually faded, supporting the nine-month results.

In Italy, Enel benefited from a rise in prices charged to customers and an increase in renewable energy production.

Last year the group had to buy energy at much higher prices to make up for low hydro production.

“The strong performance of the business is at the base of the revised guidance for this year,” Chief Financial Officer Stefano De Angelis said in a post-result conference call.

Enel now targets full-year ordinary earnings before interest, taxes, depreciation and amortisation (EBITDA) at between 21.5 billion euros and 22.5 billion euros, up from a previous 20.4-21.0 billion euro range.

Net income for the full-year is seen rising to 6.4-6.7 billion euros from a previous guidance of 6.1-6.3 billion euros.

The group said it was sticking to a previous commitment to reduce net debt to between 2.4 and 2.5 times its EBITDA, but added that it would give a target level for full-year net debt at the capital market day on Nov. 22.

Net debt at end-September rose to 63.3 billion euros from 60.1 billion euros at end-December.

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