Italy’s Enel utility reports drop in revenues from natural gas to power businesses in Europe and South America
Italian utility Enel Group reported a drop in first-half revenues of almost 18 percent amid falling prices and lower volumes sold, though net income increased.
Enel revenues declined to €38.73 billion in the six months from €47.09Bln, a drop of 17.8 percent from the first-half of 2023.
Enel is involved in natural gas and thermal energy markets in Italy, Spain and in South American nations such as Argentina, Chile, Colombia, Brazil and Peru.
The group’s natural gas sales amounted to 4.1 billion cubic metres in the first half of 2024, a decrease 18 percent, or 0.9 Bcm in the same period of 2023.
The net electricity generated by the Enel Group in the first half amounted to 96.74 terawatt hours (TWh), a decline of 5.3 TWh on the same period of 2023.
Market context
“The change is mainly attributable to the market context with declining prices alongside lower energy volumes from thermal sources and a decrease in quantities of electricity sold on end-user markets,” Enel explained.
“These effects were partly offset by an increase in revenues from the sale of electricity generated by renewable sources and from the management activities of distribution networks,” stated Enel.
The utility’s ordinary gross earnings increased by 8.8 percent to €11.68Bln from €10.74Bln in the first half of 2023.
“The increase is attributable to the positive contribution of the integrated businesses, driven by the excellent performance of renewable energy, which more than offset the decrease in the margin recorded in end-user markets and thermal generation,” Enel explained.
Net income
The group’s ordinary net income surged by over 20 percent to €3.95Bln from €3.28Bln in the prior-year period.
“In the first half we achieved excellent results, driven by significant organic growth reached through the strict implementation of the pillars of our Strategic Plan,” said Enel Chief Executive Flavio Cattaneo.
“The managerial actions undertaken have already allowed us to restore sound operating cash flow generation and reduce our financial debt to around €55Bln, also taking into account the transactions currently being finalized and already announced to the market, therefore reaching one of the lowest levels of leverage in the entire sector,” Cattaneo stated.
LNG land bridge proposed for stranded gas
In the face of increased need for more energy and fuel efficiency, it is disturbing to see extreme waste in many oil fields around the world where “stranded” wellhead natural gas is flared or re-injected.
This kind occurs in north Alaska at a rate of more than twice that of China’s total natural gas consumption, according to official US statistics.
South Korea’s LNG market opens up to competition
The cooperation between Kogas and Vopak sits well within Kogas’s strategy to expand its LNG terminal business overseas
David Hayes, Seoul
South Korean government plans to reorganize the LNG import industry are expected to result in a far-reaching restructuring of the domestic wholesale natural gas market and an increased demand for LNG.
A number of large LNG consumers already have formed two new consortia to import their own LNG in future, while waiting for the government to announce detailed plans to create the new import market.
