ENEL Enel Spa

By Giulia Petroni

Enel SpA plans asset sales worth around 21 billion euros ($21.5 billion) to cut net debt and reposition its businesses, as well as a boost to investments as part of its strategy for the 2023-25 period.

Italy's biggest utility on Tuesday said the bulk of its disposal plan will be carried out by the end of next year as the company aims to strategically reposition its geographies and focus on the six core countries Italy, Spain, the U.S., Brazil, Chile and Colombia. As part of the plan, Enel will sale its Romanian assets and expects to exit from Peru and Argentina.

The group also said it aims to invest around EUR37 billion in the period, 60% of which will be allocated toward generation, customers and energy services, while grids should account for the remaining 40%.

A core focus of the company's strategy is set to be electrification, with carbon-free electricity expected to cover around 90% of its fixed-price sales in 2025. By that time, the group plans to sell around 80% of electricity volumes under fixed price contracts.

Enel also expects to add around 21 gigawatts of installed renewable capacity by 2025, bringing renewable generation to around 75% of total generation, it said.

"In the next three years, we will focus on integrated business models, digital know-how as well as businesses and geographies that can add value despite the current challenging scenario, embracing a leaner structure and a more robust set of financial ratios," Chief Executive Officer Francesco Starace said.

Enel targets adjusted net profit--or net ordinary income--of EUR7 billion to EUR7.2 billion by 2025 from an estimated EUR5 billion-EUR5.3 billion in the current year.

Adjusted for one-offs including acquisitions or disposals, earnings before interest, taxes, depreciation and amortization--or ordinary Ebitda--are expected to reach EUR22.2 billion-EUR22.8 billion in 2025 from an estimated EUR19 billion-EUR19.6 billion in 2022.

Enel aims to maintain a dividend per share of EUR0.43 for 2023-25, up from EUR0.40 in 2022. The EUR0.43 dividend per share is to be considered as "a sustainable minimum" in 2024-25, the company said.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

November 22, 2022 03:16 ET (08:16 GMT)

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