Tuesday, November 22, 2016

Enel, a minimum dividend of 0.21 euros by 2017. Fly the title – Milano Finanza

Strong attention to shareholder remuneration, with the increase of the pay-out to 65% on net income consolidated ordinary the year 2017, compared to 60% of the previous plan, and 70% on net profit consolidated ordinary exercises of 2018 and 2019 (65%). Minimum dividend of 0.21 euro per share on the results of the financial year 2017 and 0,18 euros on the 2016 pay-out of 55%). Also planned is the activation of a buy-back program of own shares up to eur 2 billion, which will be presented at the annual meeting of stockholders in 2017.

These are some of the strategic lines 2017-2019 contained in the new industrial plan of Enel the ceo Francesco Starace has presented this morning in London, anticipated by MF-Milano Finanza at the newsstand. A plan that has convinced the market so much that the title is traveling at a rate of 3,5%.

At the heart of the business plan and the investment in technology with a commitment of € 4.7 billion to digitize the asset, the operations and processes of the group and to enhance the connectivity, with the aim to generate a cumulative increase in Ebitda to € 1.6 billion between 2017 and 2019.

Enel plans total investment of 20.9 billion euros between 2017 and 2019, compared to 21.2 billion euros, foreseen by the previous plan for the same period of time) with a mix of investments in maintenance and investments for growth in the order of, respectively, 40%/60%.

The group also aims to improve customer service to retain and grow their most important asset, its portfolio of more than 60 million end-customers, with the goal of generating 3 billion euros of Ebitda in 2019.

On the front of the operational efficiency, it aims to achieve savings of € 1 billion in 2019, compared to 2016, with an increase of 500 million compared to the previous plan, primarily through a reduction of operational costs supported from digitization.

The industrial growth will be strongly focused on the business of the networks and renewable sources, and in this last
the field is provided for the introduction of a business model to be less capital intensive, called a BSO (Build, Sell & Operate).

also the simplification of the group with the rationalization of the structure at the Country level in all geographies of presence, particularly in Latin America and in renewable energy.

Enel also plans to make disposals of assets within the next three years to about € 3 billion, reinvesting, at the same time up to 4.5 billion euros of income and at the same time maintaining the financial flexibility.

As for the target of biancio, the plan provides a growth media composed of the annual net profit of 14% during the period 2016-2019 by $ 3.2 billion this year to reach 4.7 billion in three years, while Ebitda has shown an increase of 5% from 15 billion in 2016 to 17.2 billion of 2019.

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