Enel concludes 2014 with a net ordinary income of almost 3 billion (2,994 to be exact), down 4% and distributes a dividend of 14 cents (the previous one was 13 cents). But above all, it announces in the new industrial plan an increase in payout gradually growing up to 65% in 2018 from the current 40%, further sales for 3 billion and an increase in investments as well as an 8% cost cut. The plan also includes a minimum floor for the dividend which is set at 16 cents in 2015 and 18 cents in 2016. The Stock Exchange appreciates with a rise of 3,34% despite the sharp decline in the net operating result which collapses to 517 million (-84%) after write-downs on industrial assets, especially in Italy and Slovakia, amounting to 6,427 billion.
Revenues they amounted to 75,79 billion (-3,7% compared to 78,6 billion last year). The debt fell by 5,9%, to 37.383 million, compared to 39.706 million as at 31 December 2013. Ebitda 2014 amounted to 15,75 billion (-5,6% compared to 16,69 billion in 2013), while Ebit at 3,087 million euros (-68,3%, from 9,7 billion).
The data announced by the electric group are in line with market expectations and in line with the industrial advances published by First online. In particular the expectations on the profit and on the devaluations and the forecast of a growth of the Ebitda in accordance with the consensus of analysts and investors.
The group, it was said, will distribute a dividend of 14 cents for last year, an increase on last year's 13 cents. The coupon will be proposed to the shareholders' meeting on 28 May with 0,05 euro per share by way of distribution of the net profit for the 2014 financial year and 0,09 euro per share by way of partial distribution of the available reserve called "retained earnings ”. Total dividends therefore amount to approximately 1.316 million euros compared to a consolidated ordinary net profit for 2014 of 2.994 million euros, in line with the dividend policy announced to the market for 2014, which envisages a pay -out equal to at least 40% of ordinary consolidated net income.
“We achieved our financial objectives in 2014 – comments the managing director, Francesco Starace who is about to meet the analysts in London – despite the impact on earnings produced by the difficult macroeconomic context of the past year, and in the face of a revision of the value accounting of our assets which resulted in several substantial write-downs, especially in Italy and Slovakia. Devaluations which are also a reflection of the complex context in which we operate at the moment. That said, the initiatives taken between May 2014 and the end of the year, mainly under the aegis of the structural reorganisation, allowed us to partially offset the external factors, and produce consistent operating results for the whole of 2014”.
THE INDUSTRIAL PLAN
The main objectives of the plan are a annual growth of around 3% for EBITDA and at about 10% for ordinary profit; a nominal 8% drop in Cash Costs over the period of the plan; a progressively growing payout that will reach 50% in 2015 and 65% in 2018; disposals for 5 billion by 2019, of which disposals for 2 billion already in progress; 18 billion investments, 6 billion euros more than in the previous plan. “The Plan we are presenting today – commented the CEO Francesco Starace – offers a convincing invitation to invest. The Group strategy is based on our strengths: a consolidated position in emerging markets, a clear technological leadership and digitized distribution networks in more mature markets”.
“In this way the group – Enel explains – expects to free up up to 5 billion euros, to be used for the reorganization of activities in Latin America and to seize further growth opportunities. In this respect, it is expected that overall the plan will have no effects on debt and at the same time may promote an increase in net income of approximately 200 million euros by 2019, net of disposals".
