Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ENEL SPA. We currently have 9 research reports from 1 professional analysts.
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Strong retail supports Italian division; balance sheet strengthens further
17 Mar 17
The group has presented its FY16 results with revenues decreasing 6.7% to €70,592m, EBITDA in line with last year’s at €15,276m, net income increasing by 17% to €2,570m driven by lower income taxes (-6%) and minority interests (-18%), offsetting the +13% increase in interest expenses. On an adjusted basis, EBITDA increase by 1% and net income by 12.3% to €3,243m, which are both slightly ahead of forecasts. The group’s net debt remained flat at €37.55bn, but this is greater than the previously expected €37.2bn with operating cash flows increasing by 3%. The group has proposed a dividend payment of €0.18/share. The group confirms its 2017 objectives presented in November with EBITDA reaching €15.5bn, net income €3.6bn and a minimum dividend payment of €0.21/share (65% payout ratio). The group will propose at the shareholders meeting the buy-back of 500m shares, or a total of €2bn.
Interim dividend re-introduced; strong cash flow improvement
10 Nov 16
For the 9M 16 results, the group showed an 8% yoy decrease in revenues, reaching €51.46bn, and EBITDA was reduced by 1% yoy to €12.01bn. However, reported operating profit increased +22% yoy and the reported net income of the group increased by 32% yoy to €2.757m. On an adjusted basis, on the other hand, EBITDA increased +4% yoy, while net profit achieved a +10% yoy increase. The cash flows of the group (FFO) improved by 30% yoy to €6.76bn, enough to cover the 9% yoy increase in capex which reached €5.5bn. As a result of the resilient cash flows, the group’s net debt will be €1bn better than expected as it has already reached €36.82bn (-2% yoy). The group has decided to re-introduce an interim dividend with a payment of €0.09/share, and confirmed all FY16 guidance targets, while upgrading its net debt expectations by reducing the previous objective by €1bn.
Guidance revised upwards after strong half year results; free cash flows suffer
29 Jul 16
Positive half year results for the company despite the 9.3% yoy decrease in revenues to €34.15bn, which is slightly below expectations. Moreover, on a reported basis, EBITDA grew by 1.2% yoy to €8.05bn, operating profit increased 2.5% to €5.21bn, and net income relatively flat at €1.83bn (+0.1% yoy) due to higher net financial expenses. On an adjusted basis, on the other hand, EBITDA increased 3.1% to €7.93bn and 5.2% on a lfl basis without foreign exchange effects, which are ahead of estimates. Adjusted net income increased 8.6% yoy to €1.74bn and 13% on a lfl basis. Net debt increased 1.6% ytd to €38.14bn, but is still below market expectations. As a result, Enel has revised upwards its full-year guidance with adjusted EBITDA now expected at €15bn (€14.7bn prev.), adjusted net income at €3.2bn (€3.1bn prev.) and a FFO/Nnt debt of 25% (23% prev.).
Positive start supported by LatAm and Italian retail, offsetting negative FX
10 May 16
Given the market conditions Enel has released strong Q1 results, despite the 10.5% yoy decrease in revenues to €17.87bn missing expectations by 6%. Reported EBITDA remained relatively flat (-0.1% yoy) at €4.01bn, although on an adjusted basis and besides FX effects, EBITDA grew by 2% to €3.87bn beating expectations by 1.6%. This was supported by positive results in Italy and LatAm (+4.8% and +8.7% respectively), offsetting the decrease in Iberia, renewables and western Europe (-18.7%,-15.5% and -13.8%). Operating profit improved by 1.7% yoy due to lower depreciation and amortisations, where the tax reduction and operating performance pushed reported net income to a 16% yoy increase to reach €939m, although on an adjusted basis, net income reached €795m, a 2.5% yoy decrease but still 2.5% better than expected. Operating cash flows increased more than 300% yoy due to positive working capital and lower financial expenses, enough to cover the 23% increase in investments. Net debt fell better than expected to €36.65bn (-2.4% ytd). Full-year guidance has been maintained with adjusted EBITDA at €14.7bn, net income at €3.1bn and a minimum dividend payment of €0.18/share (with a 55% payout).
Reassuring LatAm outperforms despite FX, restructuring gains momentum, entering the fibre business
23 Mar 16
Revenues remained relatively flat (-0.2% yoy), reaching €75.65bn, but still 3% above expectations, with EBITDA falling 3% yoy to €15.3bn, beating forecasts by 1.5%. Operating profit improved by 150%, but fell short of expectations by 14% mainly due to €909m of impairment charges (€295m linked to Slovakian assets, €408m to Russia, €91m on Romanian renewable assets and €115m on upstream gas). Net income improved by 325% yoy to €2.2bn while on an adjusted basis it reached €2.89bn, a 3.6% yoy decrease and 4% below expectations taking into account the negative effect of the Italian fiscal reform on deferred taxes (€182m); adjusted for this, net income would have reached €3.07bn. Proposed dividend in line with expectations of €0.16/share, a 15% yoy increase. In terms of guidance, the group maintains its objective of long-term growth, especially in renewables and networks, backed by the full integration of Enel Green Power, while, at the same time, confirming its 2016 objective: €14.7bn EBITDA, adjusted net income of €3.1bn and a minimum dividend payment of €0.18/share backed by a 55% payout. It also confirmed its ambitious objective of 4% CAGR on EBITDA over 2015-19, 10% on net income and 17% on the dividend. Moreover, the group has decided to enter the fibre business in 224 Italian municipalities gradually with an investment plan of around €2.5bn. The EBITDA contribution is expected to be €250m/year.
Agreement (finally) found on the Slovakian assets
21 Dec 15
Enel has agreed with EPH (“Energeticky a Prumyslovy Holding”, a privately-held Czech-Slovak holding company) to sell its 66% stake in its Slovakian assets for €750m. The sale will be executed through the creation and transfer of Enel’s stake in Slovenské Elektrarne to a newly-established company (“HoldCo”), with the later transfer of the HoldCo to EPH. The disposal agreement would be divided into two stages: the first includes €375m with the transfer of half of the HoldCo’s share capital (50%) at signing, the second includes the transfer of the remaining shares of the holding company and the remaining €375m payment subject to the completion and operation of the two nuclear reactors under development (expected to be completed in 2019), and an adjustment mechanism. The adjustment mechanism would be calculated at the time of the reactors' completion and would include the net financial position, developments in energy prices in the Slovak market, operating efficiency levels, and the enterprise value of the company with the completion of the two reactors under construction. A put or call option can be exercised by either Enel or EPH on the €375m depending on the values of the adjustment mechanism. In addition to this, Enel has signed a Memorandum of Understanding (“MoU”) with the Slovak Ministry of the Economy, validating the agreement.
N+1 Singer - T. Clarke - Strong conclusion to FY16, record order book
28 Mar 17
After significant upgrades at the time of the full year update (PBT forecast +43% FY16; +14% FY17), today’s results are c.4% ahead of our expectations at the PBT level and show strong growth on the prior year (PBT +48%). All regions achieved positive growth in revenue. The outlook statement refers to a still growing order book (£350m at the end of February vs. £330m at the year end) and the strength of recent trading, with London & the South East and Scotland said to be particularly positive. The Group has reiterated its ambitions to improve margins, but we have not incorporated this into our forecasts at this stage. We have nudged up our FY’17 forecasts (PBT +5%) and introduced FY’18 forecasts that imply 2% PBT growth. Despite the well justified bounce in the share price, the shares still trade at a significant discount to the peer group (7.6x FY17 PE, 4% yield).
Panmure Morning Note 29-03-2017
29 Mar 17
We are cutting our recommendation to HOLD as we see little upside from current levels given the lack of positive surprises in today’s trading update. Multiples of 4.4x 2017 sales and 17x 2017 EBITDA imply an expectation of at least slightly exceeding expectations. We had assumed that acquisitions will provide the momentum until organic investments deliver. However, acquisitions are proving elusive and excess cash is diluting returns. Moreover, our forecast relies on at least one order in vehicle simulator market, which has yet to be announced. The management has shown that it can use the financial markets to raise equity but it now needs to show that it can deploy excess equity productively.
N+1 Singer - Severfield - Strong H2 drives upgrades; CEO temporarily steps down due to ill health
28 Mar 17
Severfield’s trading update highlights that trading during H2 was strong and the Group now expects results to be ahead of expectations. Cash flow performance has been similarly strong with net funds at the year end also expected to be ahead of expectations. The strong performance was driven by both a better than expected revenue performance and better than expected growth in the operating margin. We expect to increase our FY16 PBT forecasts by c.9% to around £19.5m. In addition, we are disappointed to see that Ian Lawson (CEO) has taken a temporary leave of absence due to physical ill health. John Dodds (non-executive Chairman) will step up to Executive Chairman on an interim basis and Alan Dunsmore (FD) has agreed to assume the role of CEO on a similar basis. This should ensure the continuity of the business whilst Ian is recovering. The outlook for Sevefield remains positive and the Group has reiterated its medium term target to double PBT from £13.2m in FY16 by FY20. We remain positive on Severfield (one of our best ideas for 2017) and continue to see clear potential for it to outperform its medium term targets.
28 Mar 17
ClearStar* (CLSU): Building a background for growth (CORP) | Sound Energy (SOU): TE-8 results (HOLD) | LiDCO* (LID): 2017 should be a transformative year (CORP) | Proteome Sciences* (PRM): FY 2016 in line. Moving towards breakeven (CORP) | Fulcrum (FCRM): Significant market potential, rising margins and a strong balance sheet (BUY) | Mortgage Advice Bureau (MAB1): Strong and growing intellectual property (BUY) | 7digital* (7DIG): Open offer result (CORP)