Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ENEL SPA. We currently have 8 research reports from 1 professional analysts.
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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.
Long-term strategy offsets poor performance in Italy and Eastern Europe
13 Nov 15
The group’s positive performance continues on the 9-month mark with revenues increasing 3.6% to €56bn, EBITDA increased by 4.9% to €12.1bn and, on an adjusted basis, it reached €11.8bn with a 3.7% increase. Operating profit decreased by 11.7% to €6.3bn due to €781m of impairment charges in Russia (€417m), Slovakia (€273m) and Romania (€273m). Despite the impairment charges, reported net income still increased by 7.3% ytd to €2.09bn, translating into a €0.22 EPS. While, on an adjusted basis, it reached a 27% increase to €2.36bn. Due to the strong performance, net financial debt decreased by 6% in a single quarter to €39.84bn, although it increased by 5% ytd. The strong operating cash flow (+76.7% ytd to €5.18bn) allows the group to confirm its ambitious investment strategy (+27% ytd) and increasing dividend payment, also confirming all its financial objectives for 2015.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
16 Jan 17
We take a look at the rankings of the various countries in Africa that have a significant exposure to mining. We take the Transparency International corruption rankings as our starting point and modify these for exceptional geology and for current UK government travel warnings. Ghana, Botswana and Namibia come out as our top three, with Eritrea, Kenya and Zimbabwe at the bottom of our rankings.
Small Cap Breakfast
17 Jan 17
Global Energy Development (GED.L) — To be renamed Nautilus Marine Services. Schedule 1 from developer and seller of hydrocarbons and related products. Reverse takeover. Raising $10.5m via a convertible. Expected 9 Feb. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.
N+1 Singer - St Ives - Downgrade
19 Jan 17
Marketing activation has been impacted by further decline in grocery retail impacting profit by c£5m. Strategic The Company is also taking this opportunity to revise its guidance for Strategic Marketing as its recovery pace is not running at the planned target rate. PBT falls from N1Se £31.9m to £25m. The Company expects dividend to be held based upon lowered guidance and the implied cash flow performance. There do not appear to be any covenant issues. Forecasts and TP under review and downgrade to Hold. We expect the shares to test the 100p level.
N+1 Singer - Northern lights - Shining prospects for 2017
16 Jan 17
As the birthplace of Stephenson, Armstrong and Swan, the North East of England has a proud history of industrial and technological innovation. Despite local economic challenges, the region’s industrial heritage lives on through continuing success in high end engineering and technology. The recent takeovers of private equity backed SMD (subsea robotics) and Nomad Digital (wi-fi on the railways) are testament to this. The North East has also emerged as a leader in genetics and genomics with an enviable life sciences and healthcare infrastructure. Against this backdrop, we expect the region to continue to throw up attractive IPO candidates to build on the six new listings in the past three years. We expect 2017 to be far kinder to the existing portfolio of North East plcs than 2016 (a year to forget) with recent management changes one important theme for the new year. Our top picks are Hargreaves Services, Quantum Pharma and Zytronic (all N+1 Singer Corporate clients) and we are Buyers of Northgate and Grainger.
N+1 Singer - Morning Song 19-01-2017
19 Jan 17
Actual Experience (ACT LN) 2017 – a milestone year for revenue | Bagir Group (BAGR LN) Independent NED appointment to strengthen Board composition | Bioquell (BQE LN) Reassuring pre-close statement | Carador Income Fund (CIFU LN) Q4 dividend increased to 2.75c, 0.5c higher than forecast | FreeAgent (FREE LN) Contract with Royal Bank of Scotland | Halfords Group (HFD LN) Excellent Q3 update, special divi and confidence in FX mitigations | N Brown Group (BWNG LN) Robust peak trading with reversal of drag from older titles | NCC Group (NCC LN) Interims confirm underlying business sound | St Ives (SIV LN) Downgrade | Summit Therapeutics (SUMM LN) Dr David Roblin appointed Chief Operating Officer and R&D President | Wilmington Group (WIL LN) Acquisition – Further scaling of Healthcare