Enel Boosts Dividend - Plans €43B Investment
Italy's largest utility company Enel has announced a strong strategic plan. Starting in 2025 Enel will raise its minimum dividend to €0.46 per share from €0.43. This shows a strong commitment to shareholder value.
Enel plans to invest €43 billion by 2027. This is €7 billion more than its previous plans. The investment will focus on key areas important for the energy transition and the company’s growth.
Most of the investment (around €26 billion) will go to power grids. This marks a 40% increase from earlier plans. The focus will be on Italy and Spain where laws support such investments and ensure good returns.
Enel will also invest around €12 billion in renewable energy projects. They aim to add about 12 GW of capacity with onshore wind, hydro and batteries. Additionally €2.7 billion will be spent on improving customer services. This includes bundled solutions that combine energy, products and services to meet changing consumer needs.
CEO Flavio Cattaneo highlighted the focus on core activities and flexible capital allocation. They prioritize regulated assets that promise predictable returns. This strategy supports the energy transition while boosting efficiency and profitability.
Enel's strategy includes completing a big asset disposal plan that started in late 2022. This plan should reduce its debt to about 2.4 times its core earnings. The company is on their way to achieve its 2024 targets thanks to strong performance in its renewable energy division.
This plan shows Enel's commitment to sustainable growth and long term value creation. It positions the company as a leader in the fast changing energy market. With a focus on infrastructure, renewables and customer solutions Enel plans to drive the energy transition while providing consistent returns to shareholders.
