Latest news with #Endesa
Yahoo
21 minutes ago
- Business
- Yahoo
Endesa reports 30% increase in net profit to $1.2bn in H1 2025
Spanish multinational electricity company Endesa recorded a consolidated net profit of €1.041bn ($1.21bn) during the first half (H1) of 2025 - a 30% rise from the same period of 2024. The company's earnings before interest, tax, depreciation and amortisation reached €2.711bn, marking a 12% increase from the previous year. Endesa also reported free cash flow of €2.4bn ($2.7bn), which doubled year-on-year. This performance is largely attributed to the absence of extraordinary items that impacted results in 2024 and robust performances from its liberalised generation and supply businesses. This performance follows the blackout in Spain on 28 April 2025, which has led to volatility in the pricing environment and increased final customer prices. Ancillary services now average €20 out of a total average price of €60. Ancillary services in the first quarter of 2025 were €15, while the average for 2024 was €12. Endesa has reassured stakeholders that all its power plants were fully operational according to system operator dispatch orders on the day of the blackout. The first half of 2025 has validated the structural growth trend in access and connection requests to the distribution network that commenced in 2021. The growth observed on Endesa's network was exponential, with annual increases of 183%, 102% and 119% in 2022, 2023 and 2024 respectively, culminating in 26GW in 2024. The projection for this year anticipates reaching 29GW - a 12% increase. Electricity demand within Endesa's distribution areas showed signs of recovery with a year-on-year increase in adjusted terms of 2.9% during H1, higher than Peninsular Spain's overall rate at 2.2%. Consumption across residential, industrial and service sectors grew significantly, with residential use spiking due to June 2025's high temperatures. In terms of operations and other financial metrics, liberalised sales volumes remained stable at 35 terawatt hours (TWh), including 22TWh from emission-free sources such as wind, solar, hydroelectric and nuclear power. Liberalised power business margins stood at €53 per megawatt hour (MWh) - a 9% decrease. Endesa also expressed concerns over the National Commission of Markets and Competition's (CNMC) proposed remuneration rates for distribution networks between 2026 and 2031. The suggested financial rate of return is uneven when compared to other sectors and neighbouring countries, which also restricts investment. Endesa CEO José Bogas stated: 'This proposal seriously jeopardises achieving the level of investment that Spain needs to meet its decarbonisation, demand electrification and network investment objectives as set out in the NECP, as well as being misaligned with the government's energy policy guidelines.' In March 2025, Masdar was reported to be engaged in advanced negotiations to acquire a 49.9% stake in a solar portfolio from Spain's Endesa for $200m. This transaction, which centres around a 450MW portfolio, is part of Masdar's strategy to enhance its presence in Europe, with a particular focus on Spain. "Endesa reports 30% increase in net profit to $1.2bn in H1 2025" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Reuters
a day ago
- Business
- Reuters
Spain's Endesa faces $240 million claim in LNG contract dispute
MADRID, July 29 (Reuters) - Spanish power utility Endesa ( opens new tab faces claims of $240 million as part of an arbitration process related to a price review of a long-term liquefied natural gas supply contract, it said in a financial report published on Tuesday. The amount could change during the arbitration, launched by an unidentified LNG producer in January, the conclusion of which is not expected before the end of next year, it said. Endesa disclosed the legal dispute in February, at which time it estimated a potential hit of $300 million. The claim was then presented in June. Owned by Italian energy giant Enel ( opens new tab, Endesa was in 2023 ordered to pay $570 million to QatarEnergy in a dispute over a retroactive price adjustment, while in November, a court rejected a similar case filed by a Nigerian supplier seeking around $650 million in compensation. The company plans to progressively reduce its gas business as part of its decarbonisation plans and will let contracts with Qatar and Nigeria that end in 2025 and 2026, respectively, expire.
Reuters
a day ago
- Business
- Reuters
Endesa reports 30% profit rise but warns Spain's grid plan lacks incentives
MADRID, July 29 (Reuters) - Spanish power utility Endesa ( opens new tab reported on Tuesday a 30% rise in first-half net profit to 1.04 billion euros ($1.20 billion), while warning that a proposed remuneration framework for power grid investments in Spain fails to offer adequate incentives. The company, majority-owned by Italy's Enel ( opens new tab, has shifted its focus to expanding and upgrading power networks amid soaring electricity demand and connection requests, reducing spending on renewables. A massive blackout on April 28 affecting Spain and Portugal has reignited discussions about the investment needs for the country's power networks, which are regulated by Spain's competition and energy watchdog CNMC. The company criticised a proposal by Spain's competition and energy watchdog CNMC to update the remuneration framework for investments in grids in the coming year, including raising the guaranteed return on investments in power grids to 6.46%. "This proposal seriously jeopardises the level of investment Spain needs to achieve its decarbonisation, increase electricity demand and grid investment goals" included in the country's climate and energy plan, Chief Executive Jose Bogas said. Endesa booked a net profit of 1.04 billion euros ($1.20 billion) in the period. This compares with 800 million euros a year earlier, when results included a windfall tax on energy companies. The company said it is on track to meet its targets this year. "Endesa suffered a declining trend in its integrated electricity margin" in the second quarter "and lower, albeit still high, gas unit margins," RBC analyst Fernando Garcia said in a note. "We expect a declining trend in gas unit margins in the second half and beating guidance looks now more challenging," he said. ($1 = 0.8632 euros)
Reuters
a day ago
- Business
- Reuters
Endesa blasts grid remuneration proposal as 1H profit rises 30%
MADRID, July 29 (Reuters) - Spanish power utility Endesa ( opens new tab posted on Tuesday a 30% increase in first-half net profit and warned that the proposed remuneration framework for power grids investments in Spain doesn't offer the right incentives. The company, owned by Italian energy giant Enel ( opens new tab, booked a net profit of 1.04 billion euros ($1.20 billion)in the period. This compares with 800 million euros a year earlier, when results included a windfall tax on energy companies. The company criticised a proposal by Spain's competition and energy watchdog CNMC to update the remuneration framework for investments in grids in coming year, including raising the guaranteed return on investments in power grids to 6.46%. "This proposal seriously jeopardizes the level of investment Spain needs to achieve its decarbonisation, increase electricity demand and grid investment goals" included in the country's climate and energy plan, Chief Executive Jose Bogas said. ($1 = 0.8632 euros)
Reuters
a day ago
- Business
- Reuters
Endesa on track to meet targets after 1H profit rises 30%
MADRID, July 29 (Reuters) - Spanish power utility Endesa ( opens new tab said on Tuesday it is on track to meet its targets for the year after first-half net profit rose 30%. The company, owned by Italian energy giant Enel ( opens new tab, booked a net profit of 1.04 billion euros ($1.20 billion)in the period, compared with 800 million euros a year earlier. ($1 = 0.8632 euros)
