Italy's Enel reports better than expected core profits, lower debt

MILAN (Reuters) - Italy's biggest utility Enel reported on Thursday better than expected core profits and an improvement in its net financial position for 2022.

The group, which will report final 2022 results on March 16, said preliminary ordinary core earnings for last year came in at 19.7 billion euros, above a 19.0-19.6 billion euro guidance indicated in November.

Enel cut net debt to 60.1 billion euros ($65 billion) at the end of last year, hitting a 58-62 billion euro range target closely watched by financial analysts and investors.

The sale of several assets including its gas portfolio and power grid in Chile helped the utility rein in its debt, which had climbed to nearly 70 billion euros at end-September from 51.7 billion at the end of 2021.

"Thanks to efficient financial management and the execution of the strategic plan, the group's net financial debt was significantly reduced in the last quarter and will continue to decrease substantially during 2023 as well," Enel Chief Executive Francesco Starace said in a statement.

Last year a jump in energy markets volatility and governments' measures to protect consumers against soaring energy bills took their toll on European utilities including Enel, which saw its stock touching its lowest level since January 2017 in October before rebounding.

The group said in November it would take a more cautious stance on financial management as the economic outlook in Europe remained difficult to predict amid the war in Ukraine. It announced an ambitious asset disposal plan aimed at cutting its net debt by as much as 21 billion euros by 2025.

Earlier this month the group said it would extend exclusive talks with Greece's Public Power Corp (PPC) to sell its assets in Romania.

On Thursday it kick started the sale of its power distribution business in the Brazilian state of Ceara.

($1 = 0.9308 euro)

(Reporting by Francesca Landini)