Announcement • Apr 22
Enel SpA, Annual General Meeting, May 12, 2026 Enel SpA, Annual General Meeting, May 12, 2026, at 14:00 W. Europe Standard Time. Location: via dalmazia n 15 00198, roma Italy New Risk • Apr 16
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 24% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 124% Cash payout ratio: 151% Minor Risks High level of debt (126% net debt to equity). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (5.0% net profit margin). Reported Earnings • Apr 14
Full year 2025 earnings released: EPS: €0.39 (vs €0.67 in FY 2024) Full year 2025 results: EPS: €0.39 (down from €0.67 in FY 2024). Revenue: €80.3b (up 6.1% from FY 2024). Net income: €4.26b (down 37% from FY 2024). Profit margin: 5.3% (down from 8.9% in FY 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 3.1% p.a. on average during the next 3 years, compared to a 3.7% growth forecast for the Electric Utilities industry in Europe. Over the last 3 years on average, earnings per share has increased by 17% per year whereas the company’s share price has increased by 20% per year. Declared Dividend • Apr 13
Final dividend increased to €0.26 Dividend of €0.26 is 2.0% higher than last year. Ex-date: 20th July 2026 Payment date: 22nd July 2026 Dividend yield will be 5.0%, which is higher than the industry average of 4.3%. Sustainability & Growth Dividend is not covered by earnings (125% earnings payout ratio) nor is it covered by cash flows (151% cash payout ratio). The dividend has increased by an average of 12% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to grow by 38% to bring the payout ratio under control. EPS is expected to grow by 45% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Board Change • Apr 13
High number of new and inexperienced directors There are 9 new directors who have joined the board in the last 3 years. The company's board is composed of: 9 new directors. 3 experienced directors. No highly experienced directors. Chairman of the Board of Statutory Auditors Barbara Tadolini is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. New Risk • Mar 30
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 125% Cash payout ratio: 151% Dividend yield: 5.4% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 125% Cash payout ratio: 151% Minor Risks High level of debt (136% net debt to equity). Profit margins are more than 30% lower than last year (5.3% net profit margin). New Risk • Mar 21
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 5.3% Last year net profit margin: 8.9% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks High level of debt (136% net debt to equity). Dividend is not well covered by cash flows (150% cash payout ratio). Profit margins are more than 30% lower than last year (5.3% net profit margin). Reported Earnings • Mar 21
Full year 2025 earnings released: EPS: €0.39 (vs €0.67 in FY 2024) Full year 2025 results: EPS: €0.39 (down from €0.67 in FY 2024). Revenue: €80.3b (up 6.1% from FY 2024). Net income: €4.26b (down 37% from FY 2024). Profit margin: 5.3% (down from 8.9% in FY 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 3.2% p.a. on average during the next 3 years, compared to a 3.6% growth forecast for the Electric Utilities industry in Europe. Over the last 3 years on average, earnings per share has increased by 17% per year whereas the company’s share price has increased by 21% per year. Board Change • Mar 16
High number of new and inexperienced directors There are 9 new directors who have joined the board in the last 3 years. The company's board is composed of: 9 new directors. 3 experienced directors. No highly experienced directors. Chairman of the Board of Statutory Auditors Barbara Tadolini is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Announcement • Mar 09
Sembcorp, Hexa Climate Solutions Reportedly Vie for the India Renewables Business of Italy's Enel in $300-Million Deal IPO-bound Singapore's Sembcorp Industries Ltd. (SGX:U96)'s Indian renewable energy business and Hexa Climate Solutions (Hexa Climate Solutions Private Limited) are vying to acquire the entire India renewable business of Italy's Enel Group (Enel SpA (BIT:ENEL)) in a deal having an equity and enterprise value of around $100 million and $300 million, respectively, according to two people aware of the development. Sembcorp is present in India throughSembcorp India Private Limited and Sembcorp Green Infra Ltd. (SGIL) along with other subsidiaries., while Hexa is backed by I Squared Capital. The HSBC-run sale process follows a deal signed last year-which later fell through-under which Waaree Energies Ltd. had agreed to buy 100% of Enel Green Power India Pvt Ltd. (EGP India) from its parent Enel Green Power Development S.R.L. for INR 7,920 million. Mint first reported on 15 November 2023 that Enel Group planned to exit its India renewable business. "Enel Group's entire India renewable business is back on offer again and Sembcorp and Hexa are in talks for it," one of the two people cited above said, requesting anonymity. Enel Green Power India's portfolio comprises 760 megawatts (MW) of operational wind and solar assets, and a development pipeline of 2.5 gigawatts (GW). The company has been present in India's renewable sector since 2015 and in 2020 it partnered with Norway's state-owned investment fund Norfund to jointly finance, build and operate new renewable projects in the country. Spokespersons for Enel Group and HSBC, as well as Hexa Climate Solutions' founder and executive chairman Sanjeev Aggarwal declined to comment. Queries emailed to Sembcorp Industries Ltd. on Thursday evening remained unanswered till press time. Declared Dividend • Feb 26
Dividend increased to €0.26 Dividend of €0.26 is 2.0% higher than last year. Ex-date: 20th July 2026 Payment date: 22nd July 2026 Dividend yield will be 4.8%, which is higher than the industry average of 4.3%. Sustainability & Growth Dividend is covered by earnings (81% earnings payout ratio) but not covered by cash flows (126% cash payout ratio). The dividend has increased by an average of 13% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 16% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Board Change • Feb 23
High number of new and inexperienced directors There are 9 new directors who have joined the board in the last 3 years. The company's board is composed of: 9 new directors. 3 experienced directors. No highly experienced directors. Chairman of the Board of Statutory Auditors Barbara Tadolini is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Board Change • Jan 07
High number of new and inexperienced directors There are 9 new directors who have joined the board in the last 3 years. The company's board is composed of: 9 new directors. 3 experienced directors. No highly experienced directors. Chairman of the Board of Statutory Auditors Barbara Tadolini is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Board Change • Dec 08
High number of new and inexperienced directors There are 9 new directors who have joined the board in the last 3 years. The company's board is composed of: 9 new directors. 3 experienced directors. No highly experienced directors. Chairman of the Board of Statutory Auditors Barbara Tadolini is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Declared Dividend • Nov 17
Dividend of €0.23 announced Shareholders will receive a dividend of €0.23. Ex-date: 19th January 2026 Payment date: 21st January 2026 Dividend yield will be 5.4%, which is higher than the industry average of 4.3%. Sustainability & Growth Dividend is covered by earnings (81% earnings payout ratio) but not covered by cash flows (133% cash payout ratio). The dividend has increased by an average of 14% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 14% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 16
Third quarter 2025 earnings released: EPS: €0.16 (vs €0.16 in 3Q 2024) Third quarter 2025 results: EPS: €0.16 (up from €0.16 in 3Q 2024). Revenue: €18.9b (flat on 3Q 2024). Net income: €1.90b (up 5.6% from 3Q 2024). Profit margin: 10.0% (in line with 3Q 2024). Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 2.9% growth forecast for the Electric Utilities industry in Europe. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 03
Second quarter 2025 earnings released: EPS: €0.14 (vs €0.21 in 2Q 2024) Second quarter 2025 results: EPS: €0.14 (down from €0.21 in 2Q 2024). Revenue: €18.7b (down 2.9% from 2Q 2024). Net income: €1.42b (down 34% from 2Q 2024). Profit margin: 7.6% (down from 11% in 2Q 2024). Revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 2.2% growth forecast for the Electric Utilities industry in Europe. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 14
Upcoming dividend of €0.26 per share Eligible shareholders must have bought the stock before 21 July 2025. Payment date: 23 July 2025. Payout ratio is a comfortable 70% but the company is paying out more than the cash it is generating. Trailing yield: 6.4%. Within top quartile of Austrian dividend payers (5.0%). Higher than average of industry peers (4.5%). Reported Earnings • Apr 25
Full year 2024 earnings released: EPS: €0.67 (vs €0.36 in FY 2023) Full year 2024 results: EPS: €0.67 (up from €0.36 in FY 2023). Revenue: €75.7b (down 20% from FY 2023). Net income: €6.77b (up 87% from FY 2023). Profit margin: 8.9% (up from 3.9% in FY 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 2.0% p.a. on average during the next 3 years, compared to a 2.0% growth forecast for the Electric Utilities industry in Europe. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • Apr 11
Enel SpA, Annual General Meeting, May 22, 2025 Enel SpA, Annual General Meeting, May 22, 2025, at 14:00 W. Europe Standard Time. Declared Dividend • Mar 19
Final dividend of €0.26 announced Shareholders will receive a dividend of €0.26. Ex-date: 21st July 2025 Payment date: 23rd July 2025 Dividend yield will be 6.6%, which is higher than the industry average of 4.3%. Sustainability & Growth Dividend is covered by earnings (70% earnings payout ratio) but not covered by cash flows (234% cash payout ratio). The dividend has increased by an average of 14% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 3.8% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Mar 14
Full year 2024 earnings released: EPS: €0.67 (vs €0.36 in FY 2023) Full year 2024 results: EPS: €0.67 (up from €0.36 in FY 2023). Revenue: €78.9b (down 16% from FY 2023). Net income: €7.02b (up 93% from FY 2023). Profit margin: 8.9% (up from 3.9% in FY 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 3.0% growth forecast for the Electric Utilities industry in Europe. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Board Change • Jan 28
High number of new and inexperienced directors There are 9 new directors who have joined the board in the last 3 years. The company's board is composed of: 9 new directors. 3 experienced directors. No highly experienced directors. Chairman of the Board of Statutory Auditors Barbara Tadolini is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Board Change • Dec 12
High number of new and inexperienced directors There are 9 new directors who have joined the board in the last 3 years. The company's board is composed of: 9 new directors. 3 experienced directors. No highly experienced directors. Chairman of the Board of Statutory Auditors Barbara Tadolini is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Declared Dividend • Nov 11
Dividend of €0.21 announced Shareholders will receive a dividend of €0.21. Ex-date: 20th January 2025 Payment date: 22nd January 2025 Dividend yield will be 6.4%, which is higher than the industry average of 4.3%. Sustainability & Growth Dividend is covered by earnings (41% earnings payout ratio) but not covered by cash flows (460% cash payout ratio). The dividend has increased by an average of 13% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 19% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 08
Third quarter 2024 earnings released: EPS: €0.16 (vs €0.15 in 3Q 2023) Third quarter 2024 results: EPS: €0.16 (up from €0.15 in 3Q 2023). Revenue: €18.9b (down 16% from 3Q 2023). Net income: €1.80b (up 7.3% from 3Q 2023). Profit margin: 9.5% (up from 7.5% in 3Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 1.9% growth forecast for the Electric Utilities industry in Europe. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Reported Earnings • Jul 28
Second quarter 2024 earnings released: EPS: €0.21 (vs €0.14 in 2Q 2023) Second quarter 2024 results: EPS: €0.21 (up from €0.14 in 2Q 2023). Revenue: €19.3b (down 6.7% from 2Q 2023). Net income: €2.21b (up 58% from 2Q 2023). Profit margin: 12% (up from 6.8% in 2Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 3.3% p.a. on average during the next 3 years, compared to a 1.9% growth forecast for the Electric Utilities industry in Europe. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jul 15
Upcoming dividend of €0.21 per share Eligible shareholders must have bought the stock before 22 July 2024. Payment date: 24 July 2024. Payout ratio is on the higher end at 96%, and the cash payout ratio is above 100%. Trailing yield: 6.2%. Within top quartile of Austrian dividend payers (5.9%). Higher than average of industry peers (4.9%). Announcement • Jun 10
JSW, Torrent, Masdar Among Suitors for Enel's India Assets About half a dozen investors, including Abu Dhabi Future Energy Company PJSC - Masdar of the UAE, Singapore's Sembcorp Industries Ltd. (SGX:U96), JSW Energy Limited (BSE:533148), Torrent Power Limited (NSEI:TORNTPOWER), Sekura Energy Limited and Oil and Natural Gas Corporation Limited (NSEI:ONGC), have submitted non-binding bids to acquire 760 MW of operational assets in India that have been put on the block by Italy's Enel Group, said people aware of the development. HSBC is advising Enel on the sale. The proposed deal may have an enterprise value of $500 million (INR 41.00 billion), the sources said. The portfolio of Enel Green Power India Private Limited comprises 760 megawatts (MW) of operational wind and solar power assets and a development pipeline of 2 gigawatts (GW). Of the operational capacity, solar power projects comprise 420 MW, with the balance 340 MW coming from wind power. Last year, Norwegian Climate Investment Fund, managed by Norfund, and KLP, Norway's largest pension company, had together committed $100 million of equity and guarantees for a 168 MW wind power plant developed by Enel Green Power in India. In 2020, Norfund and Enel Green Power (EGP) entered into a joint investment agreement for renewable energy projects in India. Their first project together, the 420 MW Thar solar plant, was announced in 2022. Enel Green Power, founded in 2008 within the Enel Group to develop and manage renewable power projects globally, operates over 63 GW of installed renewable capacity at 1,300 plants in Asia, Europe, Africa and America. EGP had strengthened its position in India through an acquisition of a majority stake in renewable energy company BLP Energy for INR 30 million (INR 2.20 billion) in 2015.Enel, ONGC, Masdar and Sekura Energy spokespersons declined to comment. JSW, Sembcorp and Torrent didn't respond to queries. Energy producers such as Sekura Energy, Sembcorp and Masdar Energy are already in the race for several Indian renewable assets that are on the block. These three were among the contenders for the 2 GW renewable portfolio of Brookfield in India that's up for sale at an estimated enterprise value of $800 million - 1 billion (INR 66.00 billion - INR 83.00 billion). JSW Neo Energy and Sekura Energy are among the bidders that have made non-binding offers to acquire a controlling stake in Ayana Renewable Power, majority owned by National Investment and Infrastructure Fund (NIIF), at a valuation of about $2 billion, ET had reported. ONGC is another contender for several assets in the clean energy space as part of decarbonising its operations. ONGC plans to have a renewable energy capacity of 10 GW by 2030 at an investment of INR 1 lakh crore. The outlook for the renewable energy (RE) sector remains stable, led by strong policy support from the government, superior tariff competitiveness and sustainability initiatives by large commercial and industrial (C&I) customers. Reported Earnings • May 10
First quarter 2024 earnings released: EPS: €0.19 (vs €0.099 in 1Q 2023) First quarter 2024 results: EPS: €0.19 (up from €0.099 in 1Q 2023). Revenue: €19.4b (down 26% from 1Q 2023). Net income: €1.93b (up 89% from 1Q 2023). Profit margin: 9.9% (up from 3.9% in 1Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Reported Earnings • Apr 25
Full year 2023 earnings released: EPS: €0.36 (vs €0.34 in FY 2022) Full year 2023 results: EPS: €0.36 (up from €0.34 in FY 2022). Revenue: €94.2b (down 32% from FY 2022). Net income: €3.63b (up 5.2% from FY 2022). Profit margin: 3.9% (up from 2.5% in FY 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Apr 10
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 15% to €5.69. The fair value is estimated to be €7.22, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Earnings per share has grown by 20%. For the next 3 years, revenue is forecast to grow by 2.2% per annum. Earnings are also forecast to grow by 11% per annum over the same time period. Declared Dividend • Mar 27
Final dividend of €0.21 announced Shareholders will receive a dividend of €0.21. Ex-date: 22nd July 2024 Payment date: 24th July 2024 Dividend yield will be 7.1%, which is higher than the industry average of 4.3%. Sustainability & Growth Dividend is not covered by earnings (121% earnings payout ratio) nor is it covered by cash flows (413% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to grow by 35% to bring the payout ratio under control. EPS is expected to grow by 45% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • Mar 24
Full year 2023 earnings released: EPS: €0.35 (vs €0.35 in FY 2022) Full year 2023 results: EPS: €0.35 (up from €0.35 in FY 2022). Revenue: €95.6b (down 31% from FY 2022). Net income: €3.81b (up 8.5% from FY 2022). Profit margin: 4.0% (up from 2.5% in FY 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 2.8% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Jan 26
Now 20% undervalued Over the last 90 days, the stock has risen 8.8% to €6.27. The fair value is estimated to be €7.84, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 25% over the last 3 years. Earnings per share has grown by 13%. For the next 3 years, revenue is forecast to grow by 3.9% per annum. Earnings are also forecast to grow by 5.7% per annum over the same time period. Upcoming Dividend • Jan 15
Upcoming dividend of €0.21 per share at 6.3% yield Eligible shareholders must have bought the stock before 22 January 2024. Payment date: 24 January 2024. Payout ratio is on the higher end at 80%, and the cash payout ratio is above 100%. Trailing yield: 6.3%. Within top quartile of Austrian dividend payers (5.0%). Higher than average of industry peers (5.2%). Reported Earnings • Nov 09
Third quarter 2023 earnings released: EPS: €0.15 (vs €0.01 in 3Q 2022) Third quarter 2023 results: EPS: €0.15 (up from €0.01 in 3Q 2022). Revenue: €22.4b (down 47% from 3Q 2022). Net income: €1.68b (up €1.57b from 3Q 2022). Profit margin: 7.5% (up from 0.3% in 3Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 2.9% p.a. on average during the next 3 years, compared to a 4.7% decline forecast for the Electric Utilities industry in Europe. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Announcement • Oct 27
Public Power Corporation S.A. (ATSE:PPC) completed the acquisition of Enel assets in Romania from Enel SpA (BIT:ENEL) for approximately €1.2 billion. Public Power Corporation S.A. (ATSE:PPC) signed an exclusivity agreement to acquire Enel assets in Romania from Enel SpA (BIT:ENEL) on December 14, 2022. Public Power Corporation S.A. (ATSE:PPC) signed an agreement to acquire Enel assets in Romania from Enel SpA (BIT:ENEL) for approximately €1.3 billion on March 9, 2023. In addition, the total consideration is subject to adjustments customary for these kinds of transactions as well as to an earn-out mechanism for a potential additional payment based on the future value of the retail business. PPC intends to finance the Acquisition with a combination of debt and cash on balance sheet, with €800 million of committed debt financing in the form of a €485 million 5-year term loan facility through Greek banks and a €315 million bridge facility through international banks. The transaction is subject to due diligence and approval by antitrust authorities. As of February 4, 2023, the exclusivity period for negotiations has been extended until February 28, 2023. As of June 26, 2023 European Commission approved the transaction. The transaction is expected to close in third quarter of 2023. Citigroup Global Markets Europe AG, Goldman Sachs Bank Europe SE, HSBC Continental Europe acted as financial advisors, S.A, Lisa O’Neill, Apostolos Gkoutzinis, Andrew Reilly, Trevor Truman, and Alan Rafferty of Milbank LLP acted as a legal advisor, Cornelia Bumbacea, Andreea Bistriceanu, Andreea Oprescu, Laura Paraschiv, Andreea Puiu, Daniel Anghel, Ruxandra Târlescu, Adina Vizoli, oana Bara, Ludmila Petrescu, Claudiu Simionescu, and Anca Lungeanu of PwC Romania, PwC Greece and Anda Rojanschi, Cristina Paduraru and Ovidiu Bold of D&B David si Baias experts provided due diligence, tax structuring advice and support on the complex financial and tax aspects of the transaction documents, as well as legal advice to Public Power Corporation S.A. (ATSE:PPC). Clifford Chance LLP acted as legal advisor to Enel SpA in the transcation.Public Power Corporation S.A. (ATSE:PPC) completed the acquisition of Enel assets in Romania from Enel SpA (BIT:ENEL) for approximately €1.2 billion on October 25, 2023. Following the fulfillment of all the conditions precedent customary for these kinds of transactions set forth in the related sale agreement closed the transaction. AXIA Ventures Group and Euroxx Securities SA acted as financial advisors to PPC. Announcement • Oct 26
Sonnedix Chile Arcadia Generación S.p.A. and Sonnedix Chile Arcadia SPA acquired Arcadia Generación Solar S.p.A. from Enel S.p.A.and Enel Chile S.A. Sonnedix Chile Arcadia Generación S.p.A. and Sonnedix Chile Arcadia SPA signed a stock purchase agreement to acquire Arcadia Generación Solar S.p.A. from Enel S.p.A.and Enel Chile S.A. for an enterprise value of $550 million on July 12, 2023. The total consideration, subject to adjustments customary for these kinds of transactions. The closing of the sale is subject to certain conditions precedent customary for these kinds of transactions, including the clearance from the Chilean antitrust authority Fiscalía Nacional Económica (FNE).Sonnedix Chile Arcadia Generación S.p.A. and Sonnedix Chile Arcadia SPA completed the acquisition of Arcadia Generación Solar S.p.A. from Enel S.p.A.and Enel Chile S.A. on October 25, 2023 Reported Earnings • Jul 28
Second quarter 2023 earnings released: EPS: €0.14 (vs €0.022 in 2Q 2022) Second quarter 2023 results: EPS: €0.14 (up from €0.022 in 2Q 2022). Revenue: €20.7b (down 34% from 2Q 2022). Net income: €1.42b (up €1.20b from 2Q 2022). Profit margin: 6.9% (up from 0.7% in 2Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to stay flat during the next 3 years compared to a 3.9% decline forecast for the Electric Utilities industry in Europe. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jul 17
Upcoming dividend of €0.20 per share at 6.4% yield Eligible shareholders must have bought the stock before 24 July 2023. Payment date: 26 July 2023. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 6.4%. Within top quartile of Austrian dividend payers (5.4%). Higher than average of industry peers (5.3%). Announcement • Jul 13
Sonnedix Chile Arcadia Generación S.p.A. and Sonnedix Chile Arcadia SPA signed a stock purchase agreement to acquire Arcadia Generación Solar S.p.A. from Enel S.p.A.and Enel Chile S.A. for an enterprise value of $550 million. Sonnedix Chile Arcadia Generación S.p.A. and Sonnedix Chile Arcadia SPA signed a stock purchase agreement to acquire Arcadia Generación Solar S.p.A. from Enel S.p.A.and Enel Chile S.A. for an enterprise value of $550 million on July 12, 2023. The total consideration, subject to adjustments customary for these kinds of transactions. The closing of the sale is subject to certain conditions precedent customary for these kinds of transactions, including the clearance from the Chilean antitrust authority Fiscalía Nacional Económica (FNE). Announcement • Jul 06
Enel Dismisses Rumours over Sale of Endesa Enel SpA (BIT:ENEL) dismissed suggestions that it is planning to sell its majority stake in Spain’s Endesa, S.A. (BME:ELE) and that a deal had been discussed involving energy group Repsol, S.A. (BME:REP). El Confidencial reported on July 4, 2023 that Repsol Chairman Antonio Brufau had met Borja Prado, an investment banker and former Endesa chairman, to discuss a potential takeover of Endesa before Spain’s election this month. “Enel dismisses the rumours about Endesa as totally groundless,” the Italian power group said in a statement, responding to a report by Spain’s El Confidencial. “Enel has no intentions of selling its stakes in Endesa, neither now nor in the future, as the company is a key asset for its strategy.” The Italian company also emphasised that there have been no discussions on any such deal. “There has never been any meeting between the managers of Enel and Repsol, nor with Borja Prado. This false news risks having distorting effects on the performance of the stock market,” it added. A Repsol spokesperson said that company is not studying any deal for Endesa. Enel’s 70% stake in Endesa, Spain’s largest electricity provider, has a market value of nearly EUR 15 billion ($16 billion) at July 4, 2023 share prices. Its sale would significantly reduce Enel’s net debt, analysts at Equita brokerage said in a report. However, it added that the Italian group’s current asset disposal strategy does not include the stake in the Spanish group. Reported Earnings • May 15
First quarter 2023 earnings released: EPS: €0.099 (vs €0.15 in 1Q 2022) First quarter 2023 results: EPS: €0.099 (down from €0.15 in 1Q 2022). Revenue: €26.4b (down 23% from 1Q 2022). Net income: €1.02b (down 31% from 1Q 2022). Profit margin: 3.9% (down from 4.4% in 1Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to stay flat during the next 3 years compared to a 3.3% decline forecast for the Electric Utilities industry in Europe. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • May 10
Enel S.p.A. Announces Resignation of Annachiara Svelto to Board of Directors Enel S.p.A. announced that Ms. Annachiara Svelto resigned on 08 May 2023 evening, effective as 09 May 2023, from her position as a member of the Company's Board of Directors. The resignation is due to the inclusion of Ms Svelto in a slate of candidates for the office of member of the Board of Directors of Terna S.p.A. ('Terna') filed in view of the Shareholders' Meeting of that company convened for May 9, 2023, and takes into account the incompatibility provided for in Terna's Bylaws between the position of board member of companies active in power or gas generation or supply and the position of board member of Terna. In the 2020/2022 mandate, Ms. Svelto, as an independent Director of Enel, has also been Chair of the Related Parties Committee and member of the Nomination and Compensation Committee established within the Company's Board of Directors. Reported Earnings • Apr 15
Full year 2022 earnings released: EPS: €0.35 (vs €0.30 in FY 2021) Full year 2022 results: EPS: €0.35 (up from €0.30 in FY 2021). Revenue: €138.0b (up 66% from FY 2021). Net income: €3.51b (up 16% from FY 2021). Profit margin: 2.5% (down from 3.6% in FY 2021). The decrease in margin was driven by higher expenses. Revenue is expected to fall by 5.2% p.a. on average during the next 3 years compared to a 4.9% decline forecast for the Electric Utilities industry in Europe. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • Feb 07
Enel Enters into Exclusive Talks to Sell Stake in 3Sun Solar Plant Enel SpA (BIT:ENEL) has entered into exclusive talks to sell a stake in 3Sun Solar, its photovoltaic panel production site in Sicily, Chief Executive Francesco Starace said on February 6, 2023. "We will make an announcement in the coming days," Starace said on the sidelines of an Enel event. Starace also said he thought it was time for the West to reduce its dependence on China for solar panel production. Announcement • Feb 03
EDP Brasil to Look At Possibility of Buying Enel-Owned Power Distributor in Ceara EDP - Energias do Brasil S.A. (BOVESPA:ENBR3) may sell stake in coal-fired PECEM Power Plant, but no decision has been taken so far, CEO says. EDP Brasil will look at possibility of buying Enel SpA (BIT:ENEL)-owned power distributor in Ceara, CEO says. Upcoming Dividend • Jan 16
Upcoming dividend of €0.20 per share Eligible shareholders must have bought the stock before 23 January 2023. Payment date: 25 January 2023. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 7.0%. Within top quartile of Austrian dividend payers (5.2%). Higher than average of industry peers (4.3%). Reported Earnings • Nov 17
Third quarter 2022 earnings released: EPS: €0.01 (vs €0.067 in 3Q 2021) Third quarter 2022 results: EPS: €0.01 (down from €0.067 in 3Q 2021). Revenue: €42.0b (up 80% from 3Q 2021). Net income: €109.0m (down 85% from 3Q 2021). Profit margin: 0.3% (down from 3.1% in 3Q 2021). Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Board Change • Nov 16
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Independent Director Samuel Leupold was the last director to join the board, commencing their role in 2020. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 06
Third quarter 2022 earnings released: EPS: €0.01 (vs €0.075 in 3Q 2021) Third quarter 2022 results: EPS: €0.01 (down from €0.075 in 3Q 2021). Revenue: €42.0b (up 50% from 3Q 2021). Net income: €109.0m (down 85% from 3Q 2021). Profit margin: 0.3% (down from 2.6% in 3Q 2021). Revenue is forecast to grow 2.4% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Announcement • Oct 15
Enel Reportedly to Sell Stake in Its Grid Services Unit to CVC Italy's biggest utility Enel SpA (BIT:ENEL) is in advanced talks to sell a stake in its grid services unit to private equity firm CVC, two sources with knowledge of the matter said. Under the agreement, which could be signed in the next few days, CVC would buy a stake of 50% in Enel's Gridspertise unit, one of the sources told Reuters. Enel declined to comment on the issue. CVC was not immediately available for comment. The sale is part of Enel's broader strategy dubbed 'stewardship business model' under which the Italian group aims to attract investments from partners to jointly develop some of its businesses in the areas of renewable energy, electrification or services. Gridspertise, which was set up last year, offers digital grid services to power distributors in Italy and abroad. The unit manages activities related to digital meters and intelligent grid services to help its customers deal with the increasing amounts of power generated from intermittent renewable energy sources. Announcement • Oct 14
PJSC LUKOIL (MISX:LKOH) completed the acquisition of a 26.9% stake in Public Joint-Stock Company Enel Russia (MISX:ENRU) from Enel SpA (BIT:ENEL). PJSC LUKOIL (MISX:LKOH) signed an agreement to acquire 26.9% percent stake in PJSC Enel Russia from Enel SpA (BIT:ENEL) on June 16, 2022. In a related transaction, AAA Capital Management agreed to acquire a 29.5% stake in in PJSC Enel Russia from Enel SpA on June 16, 2022. The combined consideration comprises of approximately €140 million. PJSC Lukoil will receive 9.5 billion shares in Enel Russia as a result of the deal. Enel Russia's charter capital is divided into 35.37 billion ordinary shares, meaning that Lukoil will own 26.9% of shares. The completion of this operation is scheduled for the third quarter of this year and is subject to a series of conditions, such as the approval of the Russian authorities competent in foreign investment and antitrust. As of September 20, 2022 government approved the deal.
PJSC LUKOIL (MISX:LKOH) completed the acquisition of a 26.9% stake in Public Joint-Stock Company Enel Russia (MISX:ENRU) from Enel SpA (BIT:ENEL) on October 12, 2022. Announcement • Aug 10
PJSC LUKOIL (MISX:LKOH) cancelled the agreement to acquire 56.43% stake in PJSC Enel Russia from Enel SpA (BIT:ENEL). PJSC LUKOIL (MISX:LKOH) signed an agreement to acquire 56.43% percent stake in PJSC Enel Russia from Enel SpA (BIT:ENEL) for approximately €140 million on June 16, 2022. The completion of this operation is scheduled for the third quarter of this year and is subject to a series of conditions, such as the approval of the Russian authorities competent in foreign investment and antitrust.
PJSC LUKOIL (MISX:LKOH) cancelled the agreement to acquire 56.43% stake in PJSC Enel Russia from Enel SpA (BIT:ENEL) on August 9, 2022. Reported Earnings • Jul 31
Second quarter 2022 earnings released: EPS: €0.024 (vs €0.057 in 2Q 2021) Second quarter 2022 results: EPS: €0.024 (down from €0.057 in 2Q 2021). Revenue: €32.3b (up 153% from 2Q 2021). Net income: €263.0m (down 56% from 2Q 2021). Profit margin: 0.8% (down from 4.7% in 2Q 2021). Over the next year, revenue is forecast to decline by 21% while the industry in Austria is not expected to grow. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has fallen by 8% per year. Upcoming Dividend • Jul 11
Upcoming dividend of €0.19 per share Eligible shareholders must have bought the stock before 18 July 2022. Payment date: 20 July 2022. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 7.2%. Within top quartile of Austrian dividend payers (5.4%). Higher than average of industry peers (4.4%). Announcement • Jun 18
PJSC LUKOIL (MISX:LKOH) signed an agreement to acquire 56.43 percent stake in PJSC Enel Russia from Enel SpA (BIT:ENEL) for approximately €140 million. PJSC LUKOIL (MISX:LKOH) signed an agreement to acquire 56.43 percent stake in PJSC Enel Russia from Enel SpA (BIT:ENEL) for approximately €140 million on June 16, 2022. The completion of this operation is scheduled for the third quarter of this year and is subject to a series of conditions, such as the approval of the Russian authorities competent in foreign investment and antitrust. Announcement • Jun 17
PJSC LUKOIL (MISX:LKOH) signed an agreement to acquire unknown minority stake in Public Joint-Stock Company Enel Russia (MISX:ENRU) from Enel SpA (BIT:ENEL). PJSC LUKOIL (MISX:LKOH) signed an agreement to acquire unknown minority stake in Public Joint-Stock Company Enel Russia (MISX:ENRU) from Enel SpA (BIT:ENEL) on June 16, 2022. Enel S.p.A. has signed two separate agreements with, respectively, PJSC Lukoil (“Lukoil”) and Closed Combined Mutual Investment Fund “Gazprombank-Frezia” (the “Fund”) for the sale of the entire stake held in Enel Russia, equal to 56.43% of the latter’s share capital, for an overall consideration of about €137 million that will be paid at closing. The closing of the transaction, which is expected within the third quarter of this year, is subject to a series of conditions precedent, including the clearance by the Russian Government Commission on Monitoring Foreign Investment and the Russian Federal Antimonopoly Service. Reported Earnings • May 06
First quarter 2022 earnings released: EPS: €0.14 (vs €0.12 in 1Q 2021) First quarter 2022 results: EPS: €0.14 (up from €0.12 in 1Q 2021). Revenue: €35.0b (up 104% from 1Q 2021). Net income: €1.43b (up 22% from 1Q 2021). Profit margin: 4.1% (down from 6.9% in 1Q 2021). Over the next year, revenue is expected to shrink by 12% compared to a 3.2% growth forecast for the industry in Austria. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Board Change • Apr 27
High number of new and inexperienced directors There are 8 new directors who have joined the board in the last 3 years. The company's board is composed of: 8 new directors. 4 experienced directors. No highly experienced directors. Independent Director Anna Svelto is the most experienced director on the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Mar 19
Full year 2021 earnings: EPS in line with analyst expectations despite revenue beat Full year 2021 results: EPS: €0.31 (up from €0.26 in FY 2020). Revenue: €88.0b (up 38% from FY 2020). Net income: €3.19b (up 22% from FY 2020). Profit margin: 3.6% (down from 4.1% in FY 2020). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 17%. Over the next year, revenue is expected to shrink by 12% compared to a 2.7% growth forecast for the industry in Austria. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment deteriorated over the past week After last week's 15% share price decline to €5.59, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 13x in the Electric Utilities industry in Europe. Total returns to shareholders of 18% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €3.52 per share. Upcoming Dividend • Jan 17
Upcoming dividend of €0.19 per share Eligible shareholders must have bought the stock before 24 January 2022. Payment date: 26 January 2022. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 5.6%. Within top quartile of Austrian dividend payers (3.4%). Higher than average of industry peers (4.1%). Executive Departure • Dec 02
Head of Country Italy Carlo Tamburi has left the company On the 1st of December, Carlo Tamburi's tenure as Head of Country Italy ended. We don't have any record of a personal shareholding under Carlo's name. Carlo is the only executive to leave the company over the last 12 months. The current median tenure of the management team is 7.08 years. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS €0.075 (vs €0.099 in 3Q 2020) The company reported a mediocre third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: €28.1b (up 74% from 3Q 2020). Net income: €727.0m (down 25% from 3Q 2020). Profit margin: 2.6% (down from 6.1% in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings.