Even if its stock loses 0.96% to 6.723 euros in Milan, Enel is optimistic this Monday by unveiling an ambitious strategic plan for 2025-2027. At the same time, the Italian energy group announced the increase in its annual dividend. This plan, which should lead to an improvement in its profitability, also provides for an increase in gross investments to around 43 billion euros, or 7 billion euros more than in the previous 2024-2026 plan. The company plans to allocate around 26 billion euros for the “power networks” segment.
This amount represents an increase of 40% compared to the last plan. 78% of investments in electricity networks should be allocated to Italy and Spain, “countries characterized by regulatory frameworks likely to support investments”, while around 22% will be devoted to Latin America.
Enel will devote almost 12 billion euros to renewable energy, adding around 12 GW of capacity, with an improved technology mix that foresees more than 70% onshore wind and dispatchable technologies (hydropower and batteries). The Italian group will increase its overall capacity to 76 GW, an increase of more than 15% in 2027.
The electricity producer will invest around 2.7 billion euros in the “Customers” activity, of which around 85% in countries where the group has an integrated presence, “offering a portfolio of solutions bundled with energy, products and services”.
2027: expected progression for Ebitda and net profit
These nearly 43 billion euros will be distributed between the geographic zones in proportion to their contribution to Ebitda: approximately 75% of gross expenses in Europe and the balance in Latin America and North America.
In 2027, Enel anticipates an Ebitda of between 24.1 and 24.5 billion euros, an average annual growth rate of around 7% compared to 17.3 billion euros in 2022.
Net profit is expected to be between 7.1 and 7.5 billion euros, representing an average annual growth rate of around 11% from 4.3 billion euros in 2022.
In 2027, the group expects to achieve efficiency gains of around €1.5 billion compared to the 2022 baseline, representing an increase of around €500 million compared to plan previous, “by continuing to optimize processes and outsource external activities”.
During 2024, the group says it “has recorded a solid performance, and will achieve its objectives in accordance with its strategic plan presented a year ago.
In this context, Enel will propose to the next general meeting a global dividend of 0.46 euros per share compared to 0.43 euros previously set. This amount represents the new minimum for the dividend per share, indicated the group regarding the remuneration policy for its shareholders presented as part of the strategic plan. In addition, the additional upside potential of the coupon corresponds to a payment of up to 70% of the group's ordinary net profit.
source: AOF
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