The main executives of Endesa have regretted this Tuesday the “uncertainty” and “rumors” about the tax on energy companies, after the chaotic session in Congress this Monday to try to push forward the tax reform with the minimum rate of 15% to multinationals. Endesa is confident that it is “impossible” to approve the extension to extend it to 2025, which ERC, EH Bildu and BNG supported at the last minute.
In a conference with analysts to present his new strategic plan, the CEO of Endesa, José Bogas, stated that “if nothing changes”, it is “impossible” for this extension to go ahead, due to the lack of support from the Royal Decree-Law. that I would pick her up.
“Everything is very confusing now in relation to the regulation and this rate,” said Bogas, who stressed that this decree “would have to be approved by parliament” and “that means that if nothing changes it would be impossible for it to be extended.” The executive has indicated that last night the Government released a statement in which it announced that it had agreed with Junts that the extension would not affect energy companies that invest in decarbonization.” “Everything is very confusing,” he reiterated.
For his part, the Financial Director of Endesa, Marco Palermo, has also regretted the “many rumors” and “uncertainty” about this tax, which the Government launched to drain the extraordinary profits of the sector with the energy crisis derived from the invasion of Ukraine. Bogas has pointed out that now “is not the time for more taxes, but for investing, if we want to achieve the energy transition objectives.”
The chief executive of Endesa has described as a “step in the right direction” the guidelines given in October by the Ministry for the Ecological Transition to the National Markets and Competition Commission (CNMC) to improve the remuneration of the networks, in a matter that is the exclusive competence of the so-called ‘super regulator’.
Bogas has highlighted that we are at a “key moment to achieve the energy transition objectives for 2030” and for this the regulation must be “favorable”. He recalled that in other European countries the profitability rate of this activity is between 7.3% and 8.7%. At Endesa they would be “comfortable” with a rate of 7.5% and could “increase” the investments projected for the coming years if there is “visibility” about the regulation.
But they are also ready to do the opposite and allocate that money to their shareholders if there is no appropriate framework, Bogas has warned. As the main executives of the Italian company Enel, owner of Endesa, said last Monday when presenting their new strategic plan, “in Spain there is a lot of room to increase investments” if the regulation is adequate.
Coinciding with its 80th anniversary, Endesa announced this Tuesday investments of 9.6 billion for the period 2025-2027, 8% more than the previous plan, and which is a record figure since its activity was reduced to the Iberian Peninsula in 2014. , after transferring its Latin American business to Enel.
To meet the “ambitious electrification goals” that the Government has set out in the new review of the National Integrated Energy and Climate Plan (PNIEC) for 2030, Endesa plans to increase investment in the electricity network by 45% compared to the previous 2024-2026 plan. , up to 4,000 million, although yes, “pending improvements and updates to the regulation.”
In renewables, the group has announced a reorientation of its investment for this period, which will stand at 3.7 billion, and will reduce exposure to solar. It will focus on higher value assets, such as hydroelectric, with the acquisition of the 626 megawatt (MW) portfolio from Acciona Energía for 1,000 million, announced last Friday, and on wind developments.
The purchase of this portfolio from the company of the Entrecanales family, former partners of Enel to retain Endesa in the takeover war of three decades ago, will contribute to the unit margin of Endesa’s liberalized electricity business rising in 2027 to 56 euros per megawatt hour (€/MWh), compared to the €55/MWh expected for this year.
The group plans to shatter its ordinary net profit forecast this year, which will reach 1.8 billion, with a gross operating result (Ebitda) of 5.2 billion, in the high range of the estimate announced a year ago.
The subsidiary of the Italian Enel guarantees a minimum dividend of one euro per share until 2027, extends 70% pay out to the entire plan (percentage of ordinary profit allocated to dividends) and increases the remuneration planned for almost 10%. 2024, up to 1.2 euros per title.
By the end of the plan in 2027, Endesa aims for an Ebitda of up to 5,900 million, a net ordinary result of up to 2,200 million and a net debt of between 10,000 and 11,000 million euros.
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