Enel ran in 2019 and closed the year in line with guidance or even above. Now it looks to 2020 and does not foresee "significant economic impacts" due to the coronavirus epidemic.
The group approved the 2019 budget with a ordinary income of 4,767 billion (up 17,4% on 4,060 billion in 2018). The revenues – already announced in preliminary balance released in February – they bypass the 80 billion (+6,3%) and theOrdinary EBITDA almost 18 billion, at 17,9 billion, with an increase of 1.747 million euros compared to 2018 (+10,8%). The Group's net result fell to 2,174 billion (4,789 billion in 2018, -54,6%) essentially due to the value adjustment carried out on some coal-fired plants.
Il dividend which will be distributed for the entire year is equal to 32,8 cents (16 already advanced in January) with a 17% increase on the coupon distributed last year.
Looking closer at the ordinary management results, Enel was driven in 2019 by Infrastructure and Networks in Latin America (+817 million), which benefited from the acquisition of Enel Distribuição São Paulo and its results. The definition of the regulatory framework in Argentina and the increase in margins in thermoelectric production and trading (499 million) in Spain and Brazil were also positive, underlined the group note. Enel Green Power grows (+91 million). Enel X, the division for innovative services, among which electric mobility also stands out, is also making progress.
2019 was also the year of the record in market capitalisation which exceeded 80 billion before the coronavirus tsunami hit world stock exchanges. What can happen now? Enel has implemented all the measures to continue the business and activity; "financially it is a solid company with liquidity that can cover the debt" which has risen to 45 billion (+9,9%). These are the words with which the CEO Francesco Starace opened the conference call on Thursday evening – with the Stock Exchange closed – with the analysts. The meeting, strictly online, was dedicated to the results of 2019 and to the analysis of the "particular emergency situation of the coronavirius". For this reason, Starace took the time to illustrate the smart working activity of the group which has now moved 100% of the applications in its portfolio to the cloud.
Moreover, the press release on the 2019 accounts also clarifies: "As regards the possible consequences of the Coronavirus pandemic evolving in the world, Enel has implemented a series of preventive measures to guarantee full operation and continuity of service in all geographies of presence”. And he adds: "In the light of the first results of the measures implemented, no significant impacts are expected on the economic results of 2020. The evolution of the situation is carefully monitored and any significant changes will be communicated".
Among the operational data, it is worth noting the renewable capacity record achieved (+3 GigaWatt of additional capacity 2019). This has allowed the reduction of 4,1 Gigawatts of coal generation, continuing the path towards decarbonisation in 2050. Increase in customers on the free market by 1,2 million. The diffusion of the second generation smart meters which reach 13,1 million, 5,9 million more than in 2018. Reduction in nominal operating costs of 1% and overall efficiencies of around 313 million euro.
Il Enel title opened sharply higher (+4,6%) in Piazza Affari, after the publication of the data on Thursday evening with the Stock Exchange closed. At 10:00 it keeps +2% when the Ftse Mib advances by 2,8%.
Updated at 10:04am Friday March 20, 2020
