Endesa Shares Fall on Spanish Utilities Tax Hit


By Giulia Petroni

Endesa SA’s shares fell on Wednesday after the company said the Spanish government’s tax on utilities is set to hit earnings and increase debt in the coming years.

At 0917GMT, shares trade 5.2% lower at EUR18.12.

During the presentation of its new strategic plan, the Spanish energy company said the tax is expected to have an impact on earnings before interest, taxes, depreciation and amortization and on net ordinary income of between 250 million euros and 300 million euros ($257.6 million – $309.2 million) a year in 2023-24.

Like-for-like Ebitda is seen between EUR4.4 billion and EUR4.7 billion in 2023 and EUR4.9 billion-EUR5.2 billion in 2024, from an estimated EUR5 billion-EUR5.3 billion in 2022.

Net ordinary income is expected at between EUR1.4 billion-EUR1.5 billion in 2023 and EUR1.7 billion-EUR1.8 billion in 2024 from an estimated EUR2.2 billion-EUR2.3 billion in 2022.

Endesa also expects net debt to increase to EUR11.6 billion-EUR12.1 billion in 2025 from an estimated EUR10 billion-EUR10.5 billion in 2022, with a EUR500-million impact from the Spanish tax over two years.

Write to Giulia Petroni at giulia.petroni@wsj.com



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