Endesa will invest around 8 billion euros over the next three years, which is more than 20% up on the last few years. This is mainly to boost its new commitment to renewables and especially photovoltaic plants.
This is clear from the 2021-2023 strategic plan being presented by Enel, its largest shareholder, to international investors. Enel’s plan, which controls over 70% of Endesa, envisages investments of around Euro 39,000 million over the period. This is 36% more than the current plan, for the period 2020-2022, which has been overtaken by circumstances. Enel’s updated plan also estimates that the group will mobilise 190 billion euros over the decade 2021-2030.
Of the investments planned for 2021-2023, 20% will go to the region Enel calls Iberia, which is basically Endesa and all its activities, including those in Portugal. This represents around Euro 7.9 billion. The pace of Endesa’s investment will accelerate, especially in the last two years of the new plan. The forecast is for Euro 2 billion in 2021, rising to Euro 2.2 billion and then Euro 2.3 billion. This is substantially more than the previous plan, for 2020-2022, which was presented just one year ago and which envisaged 6.3 billion investment over three years, 14% of the group’s total investment.
Enel’s new strategic plan forecasts that the net result of the group as a whole will increase by between 8% and 10% in annual terms over the next three years, to reach between 6.5 and 6.7 billion in 2023.
The dividend per share for 2023 will be 43 cents in 2023 compared to 35 cents in 2020, while gross operating profit (ebitda) is expected to reach between 20.7 and 21.3 billion euros, between 5% and 6% more than the 18 billion euros with which the group expects to close 2020.
Less weight in the results
Enel expects Endesa’s share of the group’s ebitda to fall from 24% in 2020 to 19% in 2023. The group’s new star will be Latin America (a former Endesa subsidiary). This area will rise from 25% of ebitda to 33% between 2020 and 2023. In absolute terms, Endesa will be responsible for the investment effort. Enel expects ENDESA’s EBITDA to remain flat and even to fall slightly, from 4.3 billion in 2020 to 4.2 billion in 2023.
Endesa’s entire investment effort will be focused on renewables and new networks. The company’s commitment to photovoltaics is particularly noteworthy.
Endesa is expected to have 34 megawatts (MW) of wind power in 2021, 396 MW in 2022 and 450 MW in 2023. The pace will be much higher for solar: 705 MW in 2021, 1,024 MW in 2022 and 1,250 MW in 2023.