Power Grid

23 Nov 2023

Italy's Enel Sets Targets for Next Three Years

23 Nov 2023  by reuters   

A logo of Italian multinational energy company Enel is seen at the Milan's headquarter, Italy, February 5, 2020. REUTERS/Flavio Lo Scalzo/File Photo Acquire Licensing Rights
Italy's Enel (ENEI.MI) plans 35.8 billion euros ($39 billion) of gross capital expenditure in the next three years, taking a more cautious approach to renewable investments, the power group's new chief executive said on Wednesday.

Following are key points from CEO Flavio Cattaneo's plan, his first since he took the role in May.


Around 18.6 billion euros ($20.29 billion) of gross capex will be devoted to Grids, focusing on improving quality, resiliency and digitalisation of existing networks, alongside new connections.

Approximately 12.1 billion euros of gross capex will be for Renewables, based on more selective investment decisions, focusing on onshore wind, solar and battery storage.

About 3 billion euros of gross capex will be on the Customers business, actively managing the portfolio through multi-play bundled offers in an effort to reduce a churn rate of 20%.

The company plans to access European grants to the tune of around 3.5 billion euros and establish partnerships in renewable projects, for a total amount of around 6.1 billion euros.

As a result, net capex spending is expected to amount to approximately 26.2 billion euros.


The company remains committed to its six core markets of Italy, Spain, the United States, Brazil, Chile and Colombia.

A total of 49% of the investments are earmarked for Italy, 25% for Iberia, 19% for Latin America and 7% in North America.


Compared with a baseline for 2022, the group plans to achieve a total cost reduction of around 1.2 billion euros in 2026.

The Net Financial Debt/EBITDA ratio is expected to drop to around 2.3 times in 2026. In 2023, that equivalent ratio stands at 2.7-2.8 times, with 2023 net financial debt expected to reach between 60 and 61 billion euros.

A disposal plan involving a retreat from non-core markets is expected to have a positive impact on net financial debt estimated at around 11.5 billion euros between 2023 and 2024.


Group EBITDA is expected to grow to between 23.6 and 24.3 billion euros in 2026, with a Compound Average Growth Rate (CAGR) of around 5%.

Group net income is expected to increase to between 7.1 and 7.3 billion euros in 2026, with a CAGR of around 6%.

Dividend will be a minimum of 0.43 euro per share for the 2024-2026 period with a potential increase up to a 70% payout on Net Ordinary Income, if cash flow neutrality is achieved.


The group intends to exit completely from coal power generation in 2027.

By 2040, it aims for 100% renewable power generation and to exit from gas retail.


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