millionaire coup Endesa For an international cause. The Spanish electricity company needs to make a payment compensation of approximately 570 million dollars (approximately 530 million euros) To the supplier of liquefied natural gas (LNG) following the approval of the arbitration decision of the International Chamber of Commerce (ICC) International Court of Arbitration to review the price of a long-term withdrawal gas supply contract.
In its letter to the CNMV, Endesa acknowledged that the arbitration decision would have “an accounting impact of the same amount of 530 million euros on the pre-tax results of the consolidated accounts.” The company is preparing to review future years’ dividend within the framework of the update of its strategic plan until 2026, which it will announce this week.
Endesa will hold a board of directors meeting this Wednesday and will propose changes to the current dividend policy for 2023-2026. The group, controlled by the Italian energy company Enel, guarantees that the effects of the award will not have an impact on the amount of dividends planned to be paid to its shareholders for 2023, but it is assumed that the same impact will continue in the coming years. It was reviewed.
According to the remuneration plan approved in the last update of the strategic plan, the group plans to distribute dividends of 1 euro per share to its shareholders this year, 1.2 euros for 2024 and 1.4 euros for 2025. . Endesa’s plans were to maintain its dividend policy and continue to distribute 70% of the ordinary net profit generated each year, with a distribution of approximately 5.4 billion euros to be reflected in the accounts between 2022 and 2025.
Before the arbitration decision, the energy company assumed that it would achieve its financial targets for the whole year, which included a gross operating result (EBITDA) of between 4,400 and 4,700 million euros and a normal net profit of between 1,400 and 1,500 million euros. We pay dividends of around 1 euro per share.
Reduced compensation
Endesa had already reported the existence of this arbitration against itself in its previous financial statements. In fact the group continued this Two important claims filed for gas purchase from international suppliers and examining prices. The first, corresponding to the decision known on Monday, amounted to approximately 1,270 million dollars (about 1,163 million euros), so the electricity company managed to significantly reduce the possible compensation through arbitration. In the second of the lawsuits filed, the company faces a compensation lawsuit of 557 million dollars (approximately 510 million euros).
In the first of the arbitrations, Endesa considered the claim “unfounded and untimely” and that the possibility of its approval was “” remote.” The energy group expected the decision in the second of the arbitrations, on the smallest amount, not to be concluded until the second half of 2024.
Litigation over price revisions of major natural gas supply contracts, which are often long-term, has increased rapidly in recent years as suppliers make upward revisions below market-determined prices. Following the outbreak of war in Ukraine, natural gas prices fluctuated, with unprecedented record prices in 2022 – exceeding 300 euros per megawatt hour (MWh) – moreover, prices were particularly low during the pandemic. .