Enel Archive the first nine months of the year with a Net income of 813 million, down 73% due to the write-down of coal-fired plants in Italy, Spain, Chile and Russia for a total of 4 billion euros. There are various factors that have led Enel to review the value of the plants considered more polluting but they can be summarized in their ever less economic sustainability. It should also be kept in mind that Enel is committed to a decarbonisation goal by 2050 to which it has also linked the last bond issue concluded with great success.
The correction on the plants takes place at the appropriate time given the solidity of the accounts of the group that presents a net ordinary income up 14,1%, to 3,295 billion (from the 2,888 billion recorded in the same period of 2018), and revenues jumped to 57,124 billion (+3,4%) driven – this time – not only by the growth of renewables but above all by infrastructure and network activities, particularly in Latin America.
THEEbitda in the first 9 months, meanwhile, it improved by 8,9% to 13,2 billion. So much so that the group has ordinary EBITDA target revised upwards 2019 to 17,8 billion. With these numbers in the safe, on November 26 Enel will present the new 2020-2022 strategic plan to the financial community, which leverages decarbonization and customers to capture new growth.
THEnet financial debt instead, it increased to 46,505 billion (+13,2% from 41,089 billion at the end of 2018), essentially due to the growth in investments (6,6 billion, +27,7% in the period), the payment of dividends, interest rates unfavorable exchange rates and the first application of IFRS 16.
The group confirms the dividend policy with the resolution of an interim dividend for 2019 equal to 0,16 euro per share, to be paid from 22 January 2020 (+14,3% compared to the advance distributed in January).
“Looking forward, operational growth, the continuous work on efficiencies and the simplification of the corporate structure place us in the best position to exceed the annual ordinary Ebitda target consolidated bringing it to around 17,8 billion euros and to reach a consolidated net ordinary income of around 4,8 billion euros at the end of 2019 – comments Francesco Starace, CEO of Enel – These actions are part of a strategic approach that sees sustainability as a determining factor for the creation of value for the Group and its stakeholders”.
In the nine months, “the group has also accelerated its own investments up to over 6 billion euro – added Starace – 84% of which dedicated to renewables and networks and fueled by strong cash generation that will continue to support our growth ambitions in the medium and long term”.
Finally, “our journey towards the decarbonization”: in renewable, “in these nine months we have installed 600 MW and we expect the commissioning of a further 2.400 MW by the end of the year. This allows us to confirm the target of 3 GW of new renewable capacity installed by the end of 2019. We are also working to increase our annual target of additional renewable capacity to 4 GW, starting in 2020”.
As it regards instead Open Fiber, "the update is that there is no update", Enel CFO Alberto De Paoli said during the conference call with analysts, branding the rumors about possible buyers for the fiber company as "simple rumors".
