Endesa He is eyeing the next three years, when he hopes to set the utility company’s dividend at at least one euro per share and boost investment to historical highs. Even though there are conditions. The company led by José Bogas in the strategic plan launched this Tuesday It predicts an 8% increase According to the previous road map that will determine the payments of the company in its investments Owned by Enel inside 9.6 billion euros for the period 2025-2027.
Most of these funds 42%, Work will be carried out to strengthen and expand it. electrical network In the hands of Endesa, approximately 4,000 million eurosOf this, 3,000 million will come directly from the electricity company, and 1,000 million will come from customers’ contributions and various public subsidies.
Endesa guarantees that in all cases: there is still margin To further increase your investments. At the conference held with analysts after the presentation of the Strategic Plan, Endesa CEO José Bogas stated that the company has an additional payment capacity of 200,000 m2. It varies between 3,000 million euros and 4,000 million euros; can finally be used for this strengthening investments in the electricity grid If market conditions suitable.
“However, our goal is not to reach 1.8x leverage in 2027. This means that once we have more visibility (on the regulatory environment in terms of networks and tax development), we need to decide whether we will increase that investment or whether we will actually return that money to our shareholders,” Bogas said.
Endesa conditions this deployment of financial power in improving the rate of financial remuneration paid to electricity networksIt is in the regulatory period within the National Markets and Competition Commission (CNMC) and is currently making a proposal. increased by approximately 6.5 percent.
Strong increase in investments for the electricity company lesson Still wage increase 7.5%A. increase in regulatory investment limit (currently limited to 0.13% of Gross Domestic Product (GDP) for distribution and 0.64% of GDP for transportation), It is also possible to improve the incentive system.
Endesa’s CEO, José Bogas, stated that the company is waiting for “signals from the Government” to know in which direction to direct its investments, but Bogas stated that in any case, a lower fee of 6.5% is possible. He argues that CNMC will not necessarily result in lower investment. “We will be happy with a lower rate if other distribution methodology issues are improved” he finished.
dividend
On the other hand, the company led by José Bogas also made an offer. Dividend of 1.2 euros per shareIt is 20% more than in 2023 and 9% more than the forecast announced a year ago. The first payment of 0.5 euros will be made on January 8. The expectation is to reach 1.5 euros per share in 2027. However, dividend yield increases throughout the plan. It will vary between 6 percent and 7 percent.
Additionally, Endesa reformulated its existing policy so that ordinary dividend by agreed action equal to 70% of net ordinary profit In the consolidated annual accounts of the electricity company, For the years 2024-2027, the minimum gross euro per share is 1 euro.both included.
Lower spending on renewable generation
Endesa too will cut by 14 percent its investment in renewable energy production, focusing on assets with greater added value (mainly hydraulic assets and wind) and reducing exposure photovoltaic assets. In total, the electricity company will spend around 3.7 billion in this section.
With these goals, the company aims to grow in the next three years. 1.1 gigawatts (GW) your asset portfolio sun Until reaching 3.6 GW; increase 1.1GW its parks wind up to 3.9 GW and 600MW your portfolio hydraulicUp to 5.4 GW. Additionally, it plans to install 100MW in systems to store. Endesa will have a total installed capacity of 13.2 GW by the end of 2027.
6% increase in the number of customers
In the electricity distribution section to customers, Endesa also has bullish forecasts after the company experienced significant power outages. approximately 300,000 electricity and gas customers In free and regulated markets.
The electricity company will pay 900 million euros foresees a breakthrough in the commercialization of energy and services towards 2027 Regain lost ground and increase electricity customers by 6% in the free electricity market From 6.7 million to 7.1 million.
Electricity sales will remain stable at around 84 TWh throughout the period. Strategic refocus on fixed price sales (mainly for the residential segment) and sales at pool-indexed prices.
On the other hand, Endesa’s customer-focused strategy, promoting the electrification of energy usewill pass focus on the highest value promoting long-term viability for the company. We will focus on strengthening commercial channels, promoting their digitalization and providing high-value services.
‘Tax’
Endesa is waiting for the extraordinary tax applied to energy companies. The company expressed confidence that this tax will not be extended beyond 2024. because of Challenges facing the government faces to be processed. According to Bogas, even if the Executive tries to legislate on this issue is called imposition This would require parliamentary approval via Royal Decree. Given the difficulties the government has in enforcing the law taxing multinational corporations at 15%, “If nothing changes, it will be impossible to pay the tax.” stated Endesa’s CEO.
Additionally, the Government has stated that companies that maintain investment commitments towards decarbonization may be exempt from paying this tax; This creates an element of uncertainty, but also gives hope for the company that will invest approximately. 7.7 billion in electricity networks and renewable generation. Bogas emphasized: “It’s time to invest, it’s time to impose new tax burdens.
