The owner of Endesa is preparing a “macro plan” for the sale of assets, from which it plans to raise 21,000 million euros, in order to reorganize its businesses, reduce its debt and focus on its main markets. this Italian EnelControlling 70% of Spanish power company’s capital, plans to include it in divestiture strategy Sale of the entire gas marketing client portfolio in Spain and will leave countries like Peru, Argentina or Romania.
The group is presenting its new 2023-2025 strategic plan, which was presented at a major analyst conference this Tuesday. concentrated its activities in six countries it sees as key: Italy, Spain, the United States, Brazil, Chile and Colombia.. But even in countries where it plans to focus its growth efforts, it will do so without resuming all of its current operations and is launching a liquidation plan with the goal of completing it by 2023.
Enel’s new roadmap envisions “the value of the gas portfolio in Spain crystallizing”, which means getting rid of its own gas portfolio. Gas customer portfolio reaching 1.8 million users by September1.5 million have free gas market tariff agreements. Endesa and its parent company had already confirmed with a previous update of the roadmap next year that they plan to abandon electricity generation with gas plants before 2040. Now they are planning to earn cash in cash with their customer portfolio.
Enel’s announcement comes amid a commercial upheaval over government aid in the Spanish gas business. The executive launched a million-dollar package of measures to lower the gas bills of more than three million homes, which triggered the massive customer transfer. The €3,000 million crisis-fighting shield, which envisions continuing to be capped by law for increases applicable to 1.5 million customers of the regulated gas tariff through 2023, as well as the creation of a new type of tariff that will cut half the bill for 1.7 million homes with central heating in neighboring communities.
Thanks to these divestitures, Italian Enel, led by CEO Francesco Starace, net debt of between 51,000 and 52,000 million euros at the end of next yearreduced its debt of 69,000 million at the end of last September by approximately 25%.
More investment in Spain
Strategic plan for the next three years, 37,000 million euro investment It represents a cut compared to the 45,000 million announced by the previous update of the 2022-2024 plan. Enel’s plan aims to concentrate An investment of approximately 8,700 million euros through Endesa in Spain, less than a quarter of the total. As far as the Spanish market is concerned, the expected gross investment up to 2025 represents a 15% improvement compared to the forecasts a year ago of 7,500 million between 2022 and 2024.
Of the total investment amount for the next three years, 22,000 million will be used to support its integrated business strategy (production, customers and services), of which approximately 6,000 million (27%) will be concentrated in Spain. Another 15,000 million will go to grid investments to support their role as facilitator of the energy transition, and 2,700 million (18%) will be allocated to Spain.
The company plans to concentrate its investments on production. By 2025, 17,000 million have been allocated to the construction of new renewable power plants and about 4,400 million to green power plants in Spain. The company’s goal is to add 21,000 megawatts of new renewable energy within three years, of which about 4,750 MW will be on the Spanish market.
profit growth
Enel hopes to reach ordinary net profit at the end of the plan period between 7,000 and 7,200 million eurosWith an average annual growth rate of 10% to 13%, this is compared to the estimated 5,000 to 5,300 million for 2022. The company’s forecasts project an ordinary gross operating result (eggs) of between 22,200 and 22,800 million euros in 2025, compared to the estimated 19,000 to 19,600 million euros for this year.
Source: Informacion
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