Enel SpA’s Revenue Outlook for 2023: Focus on Green Power Growth

Italian utility company Enel SpA (BIT: ENEL) is expected to have experienced a significant drop in revenues in 2023 as energy prices declined amid the normalization of prices and increased price stability in Europe. According to Visible Alpha consensus, total revenue for the utility company is expected to decrease by -16% year over year in 2023, following a robust +64% growth in 2022. However, there is a positive outlook for Enel Green Power, the company’s renewable energy business.

Even as revenues across Enel’s other business segments are projected to decline in 2023, Enel Green Power is forecasted to see a +17% year-over-year increase in revenue, reaching an estimated €10.7 billion. Although Enel Green Power’s revenue makes up a smaller portion of the company’s total revenue compared to larger segments like Thermal Generation, End-user Market, and Grids, it is expected to compensate with higher profitability, as reflected by the segment’s EBITDA margin.

Enel Green Power currently accounts for 6% of the company’s total revenue, but this share is expected to rise to 12% by 2030, signaling its growing importance within Enel’s overall revenue mix. Enel is scheduled to release its FY 2023 results on March 21, 2024.