Gráfica de Acción Histórica
6 Meses : De Ago 2018 a Feb 2019
Adds CEO quote, dividend targets, investment, share price, analyst comment
By Pietro Lombardi
Shares in Enel SpA (ENEL.MI) trade higher Tuesday after the company raised earnings outlook as it unveiled targets through 2021 and pledged to boost investment ahead of its capital markets day.
The Rome-based energy company raised its ordinary earnings before interest, taxes, depreciation and amortization--which excludes items related to exceptional transactions--targets for the next two years and presented a new strategic plan though 2021 that "is designed to maximize the opportunities created by the energy transition and to minimizes the risks associated with unpredictability."
Enel shares trade 1.6% higher at 0904GMT, bucking the trend on Italy's benchmark FTSE MIB index, which is down 1.4%.
The new plan's financial targets are achievable and the dividend policy remains generous, Banca IMI said.
"The new plan broadly confirms the previous plan's strategy pillars, enhancing capex for organic growth mainly in renewables and regulated business," it said.
The company now expects a 2019 ordinary Ebitda of about EUR17.4 billion ($19.88 billion), which should grow to roughly EUR18.5 billion the following year. This compares with the EUR17.2 billion and EUR18.2 billion it set in its 2018-2020 plan.
"The solidity of our 2019-2021 plan allows us to improve our ordinary EBITDA targets for 2019 and 2020 and introduce new upward targets for 2021," Chief Executive Francesco Starace said.
For the first time the company introduced a minimum dividend per share throughout the new plan, the CEO said.
The dividend floor was confirmed at EUR0.28 per share on the 2018 results and will gradually grow to EUR0.36 in 2021. The company confirmed a dividend payout of 70% of its net ordinary income.
"Dividend policy remains generous in line with last year's plan and providing a yield of around 6.1% in 2018 and 7.2% on 2019 dividend," Banca IMI said.
The energy company sees its net ordinary income grow to about EUR5.6 billion in 2021, up from an estimated EUR4.1 billion this year.
It also expects ordinary Ebitda to increase to roughly EUR19.4 billion in 2021 compared with the about EUR16.2 billion it expects for 2018.
"Financial targets are broadly in line with the previous ones, broadly in line with our estimates, and achievable as the growth capex are largely secured," Banca IMI said.
Enel also committed to boost capital expenditure between 2019 and 2021, with the bulk of investment going into its networks and renewables businesses. The group sees gross capital expenditure at roughly EUR27.5 billion in the plan period, which corresponds to a 12% increase on the previous plan, it said.
"We remain confident and motivated in pursuing our growth trajectory for the foreseeable future," Mr. Starace said.
Write to Pietro Lombardi at email@example.com
(END) Dow Jones Newswires
November 20, 2018 04:22 ET (09:22 GMT)
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