Enel S.p.A.·Utilities

A unit of Italy's Enel in Sao Paulo, at risk of having its contract to distribute power taken away because of alleged poor performance, could sell it to another company to avoid a financial loss, the head of Brazil's power regulator Aneel said on Thursday.

Brazil's power regulator Aneel decided on Tuesday to move forward with a forfeiture process that could ultimately lead to the termination of a concession held by a local unit of Italian power company Enel in Sao Paulo, preventing the automatic renewal of its contract.

Enel moves into a new phase driven by higher CAPEX (especially in grids and renewables), with strong visibility from regulated RAB-based earnings and ~15 GW renewable expansion. EPS growth is expected at 5–6% CAGR (above consensus), supported by rising dividends and potential buybacks beyond €3.5 billion. Given the escalation in the Middle East, we expect a renewed focus on energy security in the EU, which is supportive for Enel and the broader sector. We remain buyers.

Enel SpA (ENLAY) Analyst/Investor Day Transcript

Spanish power utility Endesa is set to increase investments in Spanish power grids as part of Italian parent company Enel's $63 billion investment plan.

Enel plans to spend more than 26 billion euros in its integrated business—with the majority invested in Europe and North America. It also sees more than 26 billion euros spent across its grids unit.
Enel SpA operates as an integrated electricity and gas operator worldwide. The company generates, transmits, distributes, purchases, transports, and sells electricity; transports and markets natural gas; supplies LNG; designs, develops, constructs, operates, manages, and maintains generation plants and distribution grids; and designs, constructs, and operates merchant lines. It is also involved in various activities, such as energy and infrastructure engineering; research and development in sciences and engineering; the cogeneration of electricity and heat; the construction and management of manages port infrastructure; product, plant, and equipment certification; mining; finance; energy products marketing; trading; and fuel trading and logistics operations. In addition, the company engages in construction and management of LNG regasification infrastructure; desalinization and water supply; electricity system monitoring; and optical fiber network operation activities. Further, it provides testing, inspection, and certification; engineering and consulting; legal; metering, remote control, and connectivity through power line communication; business consulting, administrative, management consulting, and corporate planning; civil, mechanical, and electrical engineering; personnel administration, information technology, real estate, and business; electronic plant installation, maintenance, and repairing; and security services. Additionally, the company offers water systems; public lighting systems and services; electric mobility; and environmental studies services. It operates renewable, wind, thermal, hydroelectric, nuclear, photovoltaic, and geothermal power plants. The company was founded in 1962 and is headquartered in Rome, Italy.
Utilities
Diversified Utilities
60,584
2008-04-28
0.90