MADRID – Endesa has presented its profit and loss account for the financial year 2022. Furthermore, it confirms a significant profit compared to 2021. It has increased by no less than 77% to €2.54 billion in a year when energy prices reached record highs.
Therefore, the recently closed financial year, in which several records were broken in electricity and gas prices, was the best in its history on a comparable basis. Endesa, the second largest electricity company in Spain, is not alone in this. Other companies in the sector also presented their annual figures with large profits. The Spanish company points out that this growth is mainly due to 2 factors: “The good performance of the gas company as a whole and the substantially less deterioration in the value of non-mainland companies”.
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For example, the energy company managed to exceed its expectations by 10% and also achieved an Ebitda (operating cash flow) of €5.565 billion, 30% more than last year. Relative to the ordinary net profit, which is used to calculate the dividend payment per share, it has realised 26% more than what was achieved in 2021 and amounted to €2.4 billion this year. Therefore, Endesa proposes a distribution of €1.59 per share, 6% higher than what the company had initially planned.
The energy company also points to an investment that has “reached its all-time high” which is up 8% over the previous year, amounting to €2.34 billion.
Corporate debt and liquidity
The net debt recorded by Endesa in 2022 has also increased significantly and stands at €10.9 billion. According to the entity, this strong growth – of about €2.1 billion compared to the end of 2021 – is due to the volume of investments made and the payment of dividends for 2021 (of more than €1.5 billion).
According to Endesa, this data is “partially” offset by pointing to a free cash flow of €1.67 billion in 2022. This particular figure is “mainly” influenced by the items pending payment by the administration, which “have gone from €800 million at the end of 2021 to €2.3 billion at the end of last year.” In the statement, Endesa confirms that the fiscal year has been “marked” by “numerous regulatory measures, both at European and Spanish level”.
Taxes to skim profits
“About one of them, the 1.2% rate on the income of certain energy companies, approved by the Spanish government, Endesa has appealed to the national court because it is considered unjustified and discriminatory,” the organisation states. The CEO of the electricity company says that “I would agree to a tax” on part of the profit, about €500 million.