Endesa estimates net ordinary income at 951 million after fiscal 2023, which was marked by extraordinary consequences.

He FY 2023 from the energy company Endesa framed in context progressive normalization of the energy market derived from Average gas price drop by 64% (TTF index) and therefore 48% of average price in the Iberian Energy Basin until 87 euro/MWh.

The year has also ended demand decline by 2.1% in adjusted termswhich once again emphasizes it is necessary to accelerate the development of renewable energy sources with the policy of electrification of the economy.

Beyond this operational context, FY 2023 was marked absolutely extraordinary effects which influenced the company, especially in gas business and from normative charactersuch as the consequences of price reductions (returns) or 1.2% tax on liberalized income of energy companies coalition of PSOE and the government of Sumar.

As for the main economic indicators, then EBITDA (gross operating profit) in comparable terms reached 4.392 millionA 18% lower than the high result recorded in 2022.mainly due to the gas business.

He Reported EBITDA fell 32% to 3.777 million.since the comparison includes – in 2023 – a negative impact due to the retroactive effect of 450 million as a result of the arbitration award on the gas supply contract and registration reserve for digitalization 165 million.and in 2022 adjusts the positive impact of the sale of the electric vehicle business to parent company Enel.

He net ordinary incomewhich is the basis for the distribution of dividends, in turn was 951 millionA 60% less. Evolution that is explained lower EBITDA, higher depreciation and impairment losses, as well as increase in financial costsalso affected negative financial update of reserves.

In stated figures the result decreases by 70%, to 742 million.comparison with last year, which is also influenced by the outstanding results achieved in 2022 in the gas business.

Is different positive cash flow dynamics at the end of the year, which will grow by 3 billion compared to the end of 2022 and reaches 4.7 billion.

regulatory working capital management (regulatory balances, debt to the company from public administrations), especially those related to Off-Peninsula Business Endesa (Balearic Islands, Canary Islands, Ceuta and Melilla).

Grid and renewable energy sources, investment direction

Endesa invested 2.304 million in 2023With slight decrease of 2% Compared to the previous year, 2022 was a historical investment record for Endesa.

distribution network absorbed 38% of the total volume. Metrics measuring delivery quality showed a clear improvement: timepi (which measures interruption time) was 49 minutes (down five). Network losses also fell below 10% (9.6%).

He The second business that absorbs the most investment is renewable energy (34%).. New clean energy added during the year is 600 MW, putting it at the total capacity of hydroelectric power plants, wind and solar energy is 9900 MW..

Thanks to this and nuclear generation (defended with all his might by Endesa CEO José Bogas), emission-free production on the peninsula reached 80% of the totalseven points higher than at the end of 2022. The environmental treatment of renewable projects related to the first two, and only, transition processes on the Iberian Peninsula continues also in Andorra (Teruel) and Pego (Portugal).

IN ordinary generationto whom he devoted himself another 15% of annual investmentemphasizes receiving final closure of As Pontes, Endesa’s last coal power plant on the peninsula and the largest with this technology in Spain.

At the same time, at the end of the year 78% of all the company’s electricity installed on the Spanish mainland produces no CO2 emissions..

The company is also progressing in the process of selling a minority stake in its portfolio of operating photovoltaic projects, which is currently in the final stages of this process.

Regarding the business of selling electricity, gas and valuable services, it absorbed 12% of investments since last year. He total volume of electricity consumers on the free market in Spain and Portugal increased to 6.9 million.in a year marked by tougher competitive conditions, in which Endesa’s offering to protect customers from instability has borne fruit.

In this sense, sales of electricity at a fixed price to residential and commercial consumers increased to 53 TWhwhich is two more than in 2022. Approximately 75% of these fixed-price sales come from zero-emission production. Endesa (nuclear, hydroelectric and regulated renewable energy).

Endesa has already pre-sold 95-100% of our own production by 2024 and about 85% in 2025 and 50% in 2026, which puts the energy company in a favorable situation in the current environment of gradual normalization of wholesale prices.

Relatively electric vehicle charging pointsthey have grew by 39% and reached 19,300and the capacity of new self-consumption installations installed by Endesa for customers during the year increased almost 5-fold to 184 MW.

In that gas businesscomparison with the exceptional year 2022 shows that 2023, in which Margins were impacted by lower demand for consumption at combined cycle power plantslower consumption by industrial and residential customers, as well as the impact of the premium associated with the difference in price with the liquefied natural gas supplier, which was already discussed at the last Capital Markets Day in November last year.

100% commitment to the 2030 Agenda and SDGs

To questions from those in charge at the press conference: Jose Bogas states that despite a year of “irregular context” and a slight decline in investment of 2% compared to 2022, investments in energy transition and sustainable projects “there has been no impact on planned investments and our sustainable targets remain on track””

Bogas also firmly responded that “Endesa’s commitment to the 2030 Agenda and the Sustainable Development Goals is 100%.”, noting that Endesa “is making more efforts and is a benchmark in the sector in terms of sustainable transformation.” “Times change and we have already closed more than 5,000 MW of coal generation“The commitment is firm.”

However, both Jose Bogas and Marco PalermoThe General Director of Finance and Economics stated at a press conference that “A new generation of investments is welcomed, but always with financial discipline.” “We understand that renewable energy must be competitive and sustainable, but It is very important that it is also profitable and financially sustainable for investors.“, they claimed.

A very important aspect that was repeated several times by Endesa CEO José Bogas throughout the press conference is his “intelligent protection of nuclear energy“, stating that “If nuclear power is not available, Europe’s 2050 net-zero emissions targets will not be possible.“.

Endesa will publish a new one in March next year Sustainable Development Plan for 2024-2026 it will mark the energy company’s short-term moves into sustainable investment and the energy transition.

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