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Endesa earns 1,511 million as of September, 758% more, due to extraordinary items and lower provisions

Endesa obtained a net profit of 1,511 million euros in the first nine months of the year, which represents an increase of 758.5% compared to 176 million euros in the same period of the previous year, the company informed the National Securities Market Commission (CNMV).

This difference in net income is mainly due to the impairment of assets of more than 1,800 million euros that the company charged last year due to the decision to bring forward the closure of its peninsular coal plants, as well as due to the reversal of the provision for certain social benefits due to the entry into force of the ‘V Framework Collective Agreement of Endesa’.

Thus, the ordinary net profit of the energy company managed by Josà © Bogas at the end of September reached 1,700 million euros, with a growth of 38.4%.

This figure reflects the net effect of the reversal of the provision for certain social benefits due to the application of the new framework collective agreement, which contributes 515 million to the gross operating profit (Ebitda) and 386 million to the net result.

Likewise, it also records the impact of the provision for staff exits recorded in the first quarter, which deducts 159 million from Ebitda and 119 million from net profit. In this way, both items contribute a total of 356 million to Ebitda and 267 million to net profit.

The Ebitda of the group led by Josà © Bogas as of September 30 stood at 3,136 million euros, 8.2% more than the same period of the previous year.

The estimate of the impact of Covid-19 in this magnitude amounts to 81 million until September, only one million euros more compared to the end of the first half of the year.

In line with maintaining its commitment to its main financial objectives, the electricity company has reiterated its forecast of distribution of 100% of the ordinary net annual profit for 2020 to its shareholders.

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