Enel Jumps on €53 Billion Investment Plan for Europe and US
(Bloomberg) -- Enel SpA rose the most in almost four years in Milan trading after announcing a fresh wave of investment focused on Europe and the US.
Italy’s largest utility will spend about €53 billion ($62.6 billion) through 2028, about €10 billion more than previously planned, it said Monday. About half the total will be in power generation and sales — mostly in renewables — with the remainder allocated to grids.
The new business plan confirms a pivot toward mature markets, reported by Bloomberg last week, as Enel seeks to take advantage of a more stable policy and regulatory environment in Europe and certain US states. The Rome-based company has spent heavily in Latin America in recent decades.
Enel shares rose as much as 6.1%, the most since March 2022, and traded up 5.4% as of 10:27 a.m. in Milan.
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The utility also published profit guidance ahead of an investor day Monday, forecasting earnings per share of €0.80-€0.82 by 2028, up from the €0.69 expected for last year. Dividends are seen increasing by about 6% a year.
The EPS guidance is “significantly stronger than what the market currently prices in,” Barclays Plc analysts led by Peter Crampton said in a note. “By lifting gross investments to about €53 billion for 2026–28, Enel is now projecting a trajectory for its financial metrics that exceeds consensus expectations.”
Wind, Batteries
The business plan is aimed at accelerating both greenfield and brownfield renewable projects, including an expansion of the wind portfolio and growth in battery storage.
European utilities are increasingly honing in on markets that offer predictable returns over the long term. They’re prioritizing regulated grids and countries where they can lock in sales for clean-power generation. As the companies earmark billions of euros for much-needed network upgrades, they benefit from relative earnings stability in parts of Europe and in the US, where state-level regulation determines permitted returns and cost recovery.
Yet while those jurisdictions are viewed as comparatively stable, policy frameworks can still shift. Just this month, an Italian government plan to strip carbon costs from power bills drove a sharp selloff in forward prices, highlighting the risks from regulatory changes even in Enel’s home market.
(Updates with shares in first and fourth paragraphs, EPS guidance in fifth.)
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