What emerges from Enel's half-yearly report and what the CEO, Francesco Starace, said
Enel closes the first six months of 2021 with an ordinary net result of the group of 2,299 million euros, down 4.4% compared to 2,405 million in the first half of 2020, but has increased investments by 16.3%, to 4,813 million euros above all in Infrastructures and Networks, in End Markets and in Enel X. This was announced by the energy group in the note released after the board of directors that approved the half-year accounts.
Here are all the details.
Dividend and 2021 target confirmed for Enel, with the publication of the accounts for the first half of 2021. For the current year, the group led by CEO Francesco Starace expects an ordinary ebitda of between 18.7 and 19.3 billion euros, a ordinary net profit between € 5.4 and € 5.6 billion and a coupon per share of € 0.38.
The second quarter saw the group begin to return to pre-pandemic levels, but overall the half-year suffers from a series of negative factors, starting with lower trading activities and the usual exchange rate effect in Latin America, which have caused revenues to drop. by 10.6% (year on year) to 29.8 billion euros, underlines Mf / Milano Finanza. Enel Green Power is an exception, with revenues up by more than 10% to almost 4 billion euros. Looking at the numbers of the electricity production of the group, in fact, the half year signals a further acceleration of renewables, much higher than the thermoelectric one, at 59.8 TWh (56.2 TWh in the first half of 2020, +6.5 %).
Zero-emission production is now equal to 64% of generation. Enel's long-term goal remains the decarbonisation of the mix by 2050.In Enel's half-year report there is also a negative sign for ordinary EBITDA, at 8.36 billion euros (-4.9%), and for EBIT at € 4.37 billion (-3.8%). The group's net ordinary income is approximately € 2.3 billion, down by 4.4%. Net financial debt rose by 11% to € 50.4 billion, mainly due to investments in the period, for the acquisition of an additional stake in Enel Américas and due to the negative exchange rate effect, partially offset by the positive cash flows generated by operations.
The six-month report also shows a double-digit growth in investments, to 4.8 billion euros (+ 16.3%), driven above all by Infrastructures and Networks, Final Markets and Enel X. And it is precisely from this figure that CEO Francesco starts Starace in commenting on the numbers. "In the first half of 2021 we continued with our significant industrial growth based on sustainability and technological innovation, recording an increase in investments of 16.3% and an acceleration of the renewable capacity installed in the period, which will allow us to reach a another record at the end of the year bringing the new installed capacity to 5.8 GW. In the second quarter of the year, the group's performance recorded a solid and visible acceleration, bringing the main operating values back to pre-Covid level. In light of the trend recorded in the first half of 2021, we confirm the year-end targets in terms of ordinary EBITDA and ordinary net profit, as well as the dividend per share of € 0.38 per share, up 6% compared to the previous year. ".
Solid operating performance – with recovering performances that will continue in the same direction in the second half of the year, focus on continuous simplification in the Latam area to unlock value, acceleration on the already rapid increase in the development of renewables thanks to the growth of the entire pipeline. These are the main points of Enel's strategy for the coming months, according to what CEO Francesco Starace said in the call with analysts who followed the publication of the results for the first half.
Starace said that "electricity production has almost returned to 2019 levels", underlining the "significant change in the mix" achieved thanks to progress in renewables, which in fact now account for 56% of total capacity. “We will reach – more or less – the 2021 target of capacity from renewable sources with positive performances in the third and fourth quarters,” he added.
CFO Alberto De Paoli stated that the “2021 targets are all fully confirmed”. The guidance provided in November 2020, confirmed today, predicts that in 2021 the company will reach an ordinary EBITDA of between 18.7 and 19.3 billion euros, an ordinary net profit of the group between 5.4 and 5.6 billion euros. euro and a guaranteed dividend per share of 0.38 euro per share. The company also expects that between 2020 and 2030 the ordinary EBITDA of the group will grow in terms of CAGR by 5% -6%, with an ordinary net profit growing by 6% -7%, again in terms of CAGR.
With regard to the group's net ordinary income of 2,299 million euros in the first half of 2021 (2,405 million euros in the first half of 2020, -4.4%), De Paoli said it would have been up 10% if it were not been due to the negative impact of FX and non-recurring items. In particular, there were 200 million euros of negative impact on financial expenses from management responsibilities, 120 million from non-recurring taxes. The CFO also pointed out that the average cost of debt stands at 3.6%, improving. Another positive element that was mentioned is the increase in the share of sustainable finance, while further reducing the cost of debt. "The share of sustainable finance increases by 13 pp compared to 2020, on track to reach the target of 48% in 2023", underlined the chief financial officer.
The analysts' questions also touched on hot topics such as the purchase of assets in Italy, an overseas M&A transaction and the divestment of the stake in Open Fiber. Regarding the rumors that Enel is interested in acquiring some assets offered for sale by ERG, Francesco Starace said that “we cannot comment on the sale of assets with ERG. We do not comment on ongoing proceedings in particular this type of news. What we can say is that we are always associated and associated with every transaction that happens in Italy, whether we are carrying it out or not. But this is something that will be clear in the coming weeks. We cannot comment on this point ”.
"In every market we are in, we have opportunities to launch IPOs such as, for example, in Brazil but we must always speak first with our co-shareholders in Latin America", said Starace, underlining that there is a "scouting" in the States United but at the moment the group is focused on Latin America. “The United States is a big market, scouting is underway – he pointed out – We need to find the right asset and an agreement. It will probably come out, but not at the moment ”.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/ecco-conti-e-progetti-di-enel/ on Fri, 30 Jul 2021 06:55:30 +0000.