Enel Green Power recorded earnings before interest and tax (EBIT) of €826m in the group’s first quarter results for 2020, down 12.6% on €945m in EBIT in the same quarter last year.
The Enel subsidiary’s earnings before interest, tax, depreciation and amortisation (EBITDA) in the first quarter of this year fell 8.8% to €1.14bn from €1.2bn in the the same period of 2019.
EBITDA results for Enel Green Power were due to “income associated with the indemnity for the early withdrawal from an electricity supply contract in Chile, worth €80m, and the recognition of negative goodwill, of €106m, for the acquisition by Enel North America of several companies sold by Enel Green Power North America Renewable Energy Partners”.
During 2020 Enel Group said it expects to accelerate investment in renewable energy, mainly in Latin America and North America, as part of its 2020-2022 strategic plan, announced in late 2019.
It will also progress in the “digitalisation of distribution grids”, mainly in Italy and Latin America, to improve service quality and increase grid flexibility and resilience.
Enel’s 2020-2022 strategic plan involves the company investing €14.4bn in decarbonisation, aimed at developing new renewable capacity and gradually replacing conventional generation assets.
The contribution of decarbonisation to EBITDA growth will be equal to €1.4bn over the plan period.
Renewable capacity is expected to reach 60% of total capacity in three years.
Enel Group has issued guidelines aimed at preventing and/or mitigating the effects of Covid-19 in the workplace and at the same time ensuring business continuity.
Enel stated: “Thanks to the geographical diversification of the group, its integrated business model along the value chain, a sound financial structure and the level of digitalisation achieved, which enables to ensure the continuity of operations with the same level of service, there is no current evidence of significant impacts of the emergency related to the Covid-19 outbreak on the group itself.”