Consolidated financial highlights
· Revenues: 75,672 million euros (74,639 million euros in 2017, +1.4%)
- the increase reflects higher revenues from renewables business, on the free market in Italy, as well as changes in the scope of consolidation, notably the acquisition of Eletropaulo (now Enel Distribuição São Paulo). These factors more than offset adverse developments in exchange rates, particularly in South America
· EBITDA: 16,351 million euros (15,653 million euros in 2017, +4.5%)
- the increase reflects the improvement in margins on renewables, end-user markets in Italy and Spain and in the distribution business (mainly due to the change in the scope of consolidation) as well as the effects of the efficiency policy pursued by the Group
· Ordinary EBITDA: 16,158 million euros (15,555 million euros in 2017; +3.9%) net of extraordinary items in the two periods under review
· EBIT: 9,900 million euros (9,792 million euros in 2017; +1.1%)
- the increase reflects the improvement of EBITDA, which more than offset the increase in depreciation and amortisation, mainly due to the adoption of IFRS 15 and value adjustments in the period
· Group net income: 4,789 million euros (3,779 million euros in 2017; +26.7%)
- the improvement reflects the increase in EBIT, a decline in net financial expense, value adjustments of interests in companies accounted for using the equity method, and a reduction in taxes
· Group net ordinary income: 4,060 million euros (3,709 million euros in 2017; +9.5%)
· Net financial debt: 41,089 million euros (37,410 million euros at the end of 2017; +9.8%)
- the balance is at the lower end of the range forecasted for 2018, as set out in the 2019-2021 Strategic Plan (41-42 billion euros);
- the increase reflects acquisitions in the period, in particular of the Brazilian company Enel Distribuição São Paulo, the public tender offer for all of the shares of the subsidiary Enel Generación Chile carried out as part of the reorganisation of the Group’s shareholdings in Chile, investments for the period and adverse exchange rate developments
· Proposed dividend for 2018: 0.28 euro per share (of which 0.14 euro per share already distributed as interim dividend in January 2019)
2018 results and objectives of the Group strategic plan
· 2018 results in line with Group guidance
- Renewables and networks again the engine of growth for the Group
- Ordinary EBITDA and net ordinary income increase by 4% and 9% respectively
· The Group achieved all its strategic objectives for 2018, making the following progress for each key pillar of the Group’s strategy:
1. Industrial growth – over 3 GW of new renewable capacity added during the year, while the number of distribution customers reached about 73 million, up from 65.5 million at the end of 2017;
2. Operational efficiency – Opex fell by 1% in nominal terms in 2018, despite the growth and the impact of the change in the scope of consolidation. Overall efficiency gains amounted to some 315 million euros.
3. Group simplification and active portfolio management – the acquisition of Enel Distribuição São Paulo made Enel Américas the leading distribution company in Brazil in terms of number of customers (around 17 million), while the corporate reorganisation in Chile enabled the Group to increase its shareholding position in Enel Chile by 1.3 percentage points, to 61.9%;
4. Shareholder remuneration – the total dividend proposed for 2018 is 0.28 euros per share, with an implicit pay-out of 70%, 18% higher than the dividend paid in 2017.
5. Creating sustainable long-term value – in line with the Group’s sustainable business model, commitments made under the UN Sustainable Development Goals (SDGs) are confirmed.
· Financial targets for 2019 are confirmed.
Francesco Starace, Chief Executive Officer and General Manager of Enel, said: “In 2018, the Enel Group achieved a very solid set of results, as reflected in a 9.5% growth in net ordinary income and increased shareholder remuneration, 18% higher than in 2017. Enel met all its strategic objectives for 2018, confirming its ability to deliver on the Group’s industrial strategy. With over 3 GW of new renewable capacity added in 2018, Enel Green Power set yet another record within the industry, confirming its role as the Group’s growth engine, alongside the distribution business, which, with the acquisition of Eletropaulo in Brazil, boosted the Group’s connected customers to 73 million. Sustainable business models continue to represent the core of Enel’s worldwide presence, as underscored by the Group’s progress towards its SDG targets in 2018.
Moving forward, in 2019 we envisage an acceleration in renewable projects, mainly in North America, with continued investments in the digital transformation of grids in Italy and South America. The Group also expects to increase its customer focus on a global scale as well as accelerate Enel X’s activities in electric mobility and demand response. Progress towards the decarbonisation of Enel’s generation capacity represents another key driver for profitability. In 2021, 62% of the energy generated by the Group is expected to be zero emissions, compared with the over 50% posted in 2018. These robust full year results coupled with the achievements registered on the key pillars of the Group’s 2019-2021 strategy enable us to confirm our financial objectives for 2019.”