Enel presented the 2020-2022 business plan. The key word of the group's strategic update is sustainability which increasingly becomes – in the directives of CEO Francesco Starace and the forefront of the now multinational electricity group – the cornerstone around which the creation of value for shareholders revolves. It is a recipe that aims for a growth "of 27% of theordinary net profit expected at 6,1 billion euros, with the target for 2021 increasing by around 200 million euros compared to the previous plan.
THE KEY FIGURES OF THE 2020-2022 PLAN
The result is related to 28,7 billion euros of organic investments (+11% compared to the previous plan) which will push theEbitda at 20,1 billion at the end of the period (+13% compared to the €17,8 billion forecast in 2019). Growth is mainly anchored to 3 sustainable growth objectives (SDGs, sustainable development goals) which cover – assures the press release released by Enel before the opening of the Stock Exchange – around 95% of the total capex of the group, all aimed at achieving the goal 13 (Fight against climate change).
Half of the investments will be used for accelerate the path towards decarbonisation with 14,4 billion euros to push the construction of new renewable plants (14,1 GigaWatt, +22% compared to the previous plan) capable of gradually replacing the coal-fired ones that will be shut down. In the group's new plans, coal-fired capacity and generation will be cut by 61% and 74%, respectively, from 2018 levels. Conversely, the share of renewable capacity in the total will rise to 60% in three years. for the remainder, €11,8 billion will be invested in the continued digitization and automation of networks and 1,1 billion euros will be dedicated to Enel X for the continuous construction of services and infrastructures in support of the no carbon model by 2050.
From a financial point of view, direction has come in recent months when Enel launched financing operations in the US in Europe with Sda sustainable bonds placed for 1,5 and 2,5 billion respectively. Now the group predicts that the incidence of sustainable sources of finance, such as SDG-linked bonds, on Enel's gross debt will increase to around 43% in 2022 and to around 77% in 2030 from around 22% currently, with a sharp reduction in the cost of borrowing.
Finally, the dividend: the payout ratio remains stable at 70% with an expected increase from 32 to 40 cents (+7,7%) in 2022.
The Stock Exchange has rewarded Enel's sustainable strategy with record growth capitalization rose to over 70 billion. A success recalled by the CEO Francesco Starace who recalled how the sustainable and integrated business model has been adopted since 2015 but is now producing the greatest results. “2019 marked a turning point – he added – for the transformation dynamics of the energy sector globally and we expect an acceleration of the decarbonization and electrification trends in the coming years.” Hence the confirmation of the group's net ordinary income target for 2020 and the increase in the 2021 target compared to the previous plan and the "new increases in the EBITDA and net ordinary income targets for 2022. Similarly, we can confirm our policy three-year period on the minimum dividend per share, revising the targets for 2020 and 2021 upwards compared to last year's plan and setting a new minimum dividend per share, rising to 40 euro cents for 2022".
