Enel accelerates the goals of the new business plan and confirms the dividend policy with a payout of 50% (16 cents) in 2015 and 55% next year (18 cents). As the presentation to analysts and investors is about to begin in London, the group announces an increase of 2,7 billion in investments for growth and a cost cut of 1,8 billion in the four-year period 2016-2019. In particular, the improvement in efficiency will be played out on two fronts: a 1 billion euro cut on operating costs and a 800 million euro cut on maintenance.
To achieve the goal, Enel will reduce its workforce worldwide by 2019% by 14, with a reduction of personnel due to early retirements in the period of the plan by 9.200 units. In Italy early retirements will be 6.000. The company then plans to proceed to 4.500 hires worldwide, 2.000 of which in Italy.
The other strategic front on which the management is moving is the organizational simplification which plays its cards on the reorganization already started and in progress in Latin America and on theincorporation of Enel Green Power launched by the boards of the two companies yesterday here in London and announced this morning. The exchange ratio has been set at 0,486 Enel shares for each EGP share and will result in a dilution of the equity investments such that the Ministry of Treasury to reduce its controlling interest in Enel from the current 25,54% to 23,569%, down 2 percent from today.
The EGP operation in Enel was submitted to the scrutiny of the respective shareholders' meetings on 11 January 2016 but above all it is conditional on the fact that the minority shareholders who opt for the right of withdrawal (at 1,780 euros for each EGP share) do not lead to a cost for Enel more than 300 million. Practically the Treasury could fall even less than 2% if the withdrawal is exercised. If all goes as planned by the management, the operation will be completed by the end of 2016.
Among the other indications of the business plan, the increase from 5 to 6 billion in active portfolio management.
With these foundations, the Enel group expects to achieve a cumulative increase in Ebitda of growth equal to 7,2 billion by shifting electricity production to 50% of renewables, installing 21 million electronic meters and with a 15% increase in customers on the free market and a 20% increase in energy sold in the period. Net ordinary income is forecast at 3 billion in 2015 and 3,1 billion next year. The 2015 Ebitda is valued at 15 billion (down to 14,7 billion in 2016) and the net profit is 3 billion (3,1 billion in 2016).
Enel shares on the Stock Exchange loses 1,76% and Enel Green Power 1,9 percent at 9,45, when the presentation of CEO Francesco Starace is starting.
