Energy company Enel has brought forward its net-zero commitment by ten years for direct and indirect emissions, from 2050 to 2040.
The company has announced in its ‘2022 – 2024 Strategic Plan’ that it expects to mobilise investments of €210-billion between this year and 2030, of which €170-billion will be directly invested by the Enel group and €40-billion catalysed through third parties.
The group’s strategic plan focuses on four areas – allocating capital to support a decarbonised electricity supply; enabling electrification of customer energy demand; leveraging the full value chain’s value creation; and bringing forward sustainable net-zero emissions.
“This year’s plan, with €170-billion of direct investments by 2030, is a pivotal one.
“Its implementation is enabling us to step up from the previous decade of renewable energy discovery, to the current decade of electrification. We are accelerating growth across the business, bringing value to our customers who are at the core of the group’s strategy, a value which translates into a projected reduction in their energy spending, while increasing their electricity demand by 2030,” Enel CEO and GM Francesco Starace says.
Meanwhile, between 2020 and 2030, group ordinary earnings before interest, taxes, depreciation and amortisation (Ebitda) is expected to increase at a 5% to 6% compounded annual growth rate (CAGR), while group net ordinary income is expected to increase at a 6% to 7% CAGR.
The value created by the group for customers is expected to result in an up to 40% reduction in its energy spending, alongside an up to 80% reduction in its carbon dioxide footprint by 2030.
In 2024, group ordinary Ebitda is expected to reach €21-billion to €21.6-billion, compared with the €18.7-billion to €19.3-billion estimated for this year.
Group net ordinary income is expected to increase to €6.7-billion to €6.9-billion in 2024, compared with €5.4-billion to €5.6-billion this year.
Enel’s dividend policy for the period remains simple, predictable and attractive, the group notes.
Shareholders are expected to receive a fixed dividend per share that is planned to increase by 13%, up to €0.43 apiece, between this year and 2024.
The planned growth in earnings, coupled with the underlying dividend yield, is expected to translate into a 2022 to 2024 total return of about 13%.
Starace notes that the group will continue to grow in renewables, leveraging on its private renewable asset base.
“The infrastructure and networks as well as the newly-launched Global Customers business line will allow us to seize the incredible opportunities that electrification has to offer. The pioneering work carried out by all Enel colleagues and the advanced digital transformation of the group will allow us to address the evolution of customer needs during this decade,” he acclaims.