Renewables drive Enel’s growth in 9m 2018, ordinary net income up 11.8%

Revenues: 55,246 million euros (54,188 million euros in 9M 2017, +2.0%)

-      The increase mainly reflects changes in the scope of consolidation related to the acquisition of Eletropaulo in June 2018 and EnerNOC, now Enel X North America, in August 2017, and to the increase in revenues from distribution in Italy and Spain, which more than offset the reduction in commodity trading volumes and adverse exchange rate developments, especially in South America

·       EBITDA: 12,134 million euros (11,450 million euros in 9M 2017, +6.0%)

-      The increase is primarily attributable to the growth in renewables, the income generated by the disposal of 80% of the capital of eight project companies in Mexico, increased margins in Brazil following the acquisition of Eletropaulo, in the United States following the acquisition of EnerNOC, in distribution in Italy and Spain as well as in end-user markets in Italy, Spain and Romania

·       Ordinary EBITDA: 12,006 million euros (11,306 million euros in 9M 2017, +6.2%), net of extraordinary items in the two periods under exam

·       EBIT: 7,438 million euros (7,217 million euros in 9M 2017, +3.1%)

-      The growth reflects the improvement in EBITDA, which more than offset the increase in depreciation and amortisation, mainly due to the adoption of IFRS 15, and impairment in the period

·       Group net income: 3,016 million euros (2,621 million euros in 9M 2017, +15.1%)

-      The improvement reflects the increase in EBIT and the reduction in financial expenses, mainly due to the efficient management of financial liabilities

·       Group net ordinary income: 2,888 million euros (2,583 million euros in 9M 2017, +11.8%)

·      Net financial debt: 43,122 million euros (37,410 million euros at the end of 2017, +15.3%)

-      The increase reflects acquisitions during the period, specifically the Brazilian company Eletropaulo, the public tender offer for all the shares of the subsidiary Enel Generación Chile, which was carried out as part of the reorganisation of Group’s shareholdings in Chile, the payment of dividends for 2017, investments for the period and adverse exchange rate developments

·       Interim dividend for 2018 of 0.14 euros per share approved, to be paid starting from January 23^rd, 2019, up 33% on the interim dividend paid in January 2018

-      The Enel Board of Directors confirmed the interim dividend policy for 2018, already envisaged in the 2018-2020 Strategic Plan

-      The overall dividend for 2018 will be the highest between 0.28 euros per share and 70% of the Enel Group’s net ordinary income

Francesco Starace, Enel CEO and General Manager, said: “In the first nine months of 2018 Enel confirmed a set of solid results, by registering a double digit net income increase vis-à-vis the same period of last year. Renewables were once again the major driving force behind the Group’s positive performance, while the diversification of our geographical footprint proved effective to withstand the current, adverse development of certain exchange rates. On top of strong renewable growth, better margins posted by our distribution and retail activities in Italy and Spain, the acquisition of Sao Paulo distribution company Eletropaulo in Brazil, as well as the expansion of Enel X in North America, also contributed to the growth of our performance in the first nine months of 2018. During the period, we also completed the sale of a majority stake of 1.8 GW of renewable capacity in Mexico for 1.4 billion US dollars, keeping operational management of these plants in line with our Build, Sell and Operate (BSO) model. In January 2019, we will pay an interim dividend which is one third more remunerative than the interim dividend paid out this year on 2017 results. The Group’s financial performance posted in the first nine months of this year allows us to confirm our EBITDA and net income targets for full year 2018.”

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