Enel plans $63 billion of investment by 2028 with focus on Europe and US
By Francesca Landini
MILAN, Feb 23 (Reuters) - Italian power utility Enel ENEI.MI plans to increase capital expenditure over the next three years, shifting its focus to renewables, mainly in Europe and the United States.
The state-controlled group will invest about 53 billion euros ($63 billion) in the 2026-2028 period, half of which will be dedicated to power grids and roughly 38% to renewables, it said in a statement.
Under its previous three-year strategy, Enel had planned capital expenditure of 43 billion euros, 60% dedicated to the regulated business of grids and 28% to green energy projects.
"The group foresees a sharp acceleration of investments in renewables, reaching around 20 billion euros, with a focus in the geographies characterised by significant growth in electricity demand," Enel said.
On Saturday the group announced a 1 billion euro share buyback programme to be executed by the end of July.
Earnings per share are forecast by the company to increase to 0.80-0.82 euros in 2028 from the 0.69 euros expected for 2025. The company reports full-year results next month. The dividend per share is expected to grow by 6% on average each year through 2028, from 0.49 euros in 2025.
Enel said the push on investment and investor rewards will increase net financial debt to about three times core earnings, from a debt to earnings multiple of 2.5 at the end of last year.
"We believe that the market is not going to penalise Enel's multiple ... as the market is more focused on growth than on balance sheet and Enel starts from an under-leveraged position," JPMorgan said in a report for clients.
Shares in the group were up 3.5% at 0830 GMT, outperforming a 0.3% increase for Milan's blue-chip index.
The shares, which registered a record high of 9.76 euros on February 11, were hit last week by Italy's energy decree, with measures aimed at cutting energy costs for companies and households.
The decree includes reimbursement of CO2 costs to gas-fired power plants, which is expected to cut wholesale power prices if cleared by the European Commission.
($1 = 0.8457 euros)
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