Endesa has outlined the large profit and dividend figures it expects to achieve in the next four years. The power company expects to distribute more than 5,900 million euros as compensation to its shareholders between 2018 and 2021, according to the update of the strategic plan that it has sent to the CNMV, one day after his matrix Enel did. And that in the last year of the period includes an adjustment of the percentage of the benefit that goes to give back to the shareholder, which will go from 100% of the news to 80% from 2021.
The Spanish power company, owned 70% by Italy's Enel, expects the pay out 100% is maintained in 2018, 2019 and 2020. From 2021, it will apply a "new dividend policy that supports the new growth profile" and that will reduce that percentage to 80%.
By 2018, the company will distribute a minimum dividend of 1.33 euros gross per share, above the 1.32 euros paid last year.
Endesa anticipates a 7% increase in annual net profit between 2018 and 2021. In 2019 it expects to reach a result of 1,500 million, another 1,600 million in 2020 and reach 1,800 million in 2021. Assuming the distribution of 100% of these figures in concept of dividend, would suppose that it will distribute 4.900 million between 2018 and 2020, to which 80% of the benefit of 2021 will be added, that is to say, 1,440 million. In total, 5,940 million to be distributed in four years. Of that figure, 70% (that is, 4.158 million) will go to the hands of its main shareholder, the Italian Enel.
On January 2, the electric company will pay a dividend on the results of 2018 of 0.70 euros gross per share. The stock is trading on Wednesday stable on the stock exchange and a few minutes after the opening back 0.2%.
The reduction in shareholder remuneration expected from 2021 - with a cut in the pay out from 100% to 80% - is part of the update of the strategic plan announced today by the company, one day after Enel announced his.
According to the plan update, Endesa's EBITDA will grow from 3,500 million euros estimated for 2018 to 4,000 million for 2021, 14% in the period. The company foresees an improvement in pool prices, a positive impact of the new renewable capacity (+1.9 GW) and a higher trading margin offset by lower thermal margins
The plan also contemplates the reduction of net debt by 1,200 million euros between 2019 and 2021. The debt to EBITDA ratio would go from 1.7 times estimated for 2018 to 1.8 times in 2021 and the cost of debt will increase from 1.9% this year to 2.1% in 2021.