“In 2017 the Enel Group posted an extremely positive performance with over 14% growth in net ordinary income and shareholder remuneration up 32%, both above guidance. These results are testament to the effective implementation of the Group’s strategy and the ongoing evolution of the business model, despite a challenging market context. Significant progress in delivering on our key strategic pillars and enablers was made throughout the year. We invested about 1 billion euros in digitising distribution networks and generation assets, and customer focus has delivered pleasing results in all of the Group’s main geographies. We have improved cash flow generation while keeping net debt below full year guidance, notwithstanding our continued focus on deploying growth capex, acquisitions and distributing dividends. Renewables remain the engine of our growth, with over 3GW of additional capacity delivered in 2017, mainly in South America and in the US. Moving forward, we remain focused on the execution of our strategy. The flexibility embedded in our well-diversified, integrated model will enable us to continue delivering sustainable growth and long-term value for all stakeholders. We confirm our financial targets for 2018”
Revenues: 74,639 million euros (70,592 million euros in 2016, +5.7%)
- the increase reflects higher revenues from electricity sale and transport and greater electricity trading, as well as favourable exchange rate developments
EBITDA: 15,653 million euros (15,276 million euros in 2016, +2.5%)
- growth attributable to investments, to the efficiency enhancement policy pursued by the Group and to favourable exchange rate developments. These factors were only partly offset by changes in the scope of consolidation
Ordinary EBITDA: 15,555 million euros (15,174 million euros in 2016, +2.5%), net of extraordinary items relating to certain disposals
EBIT: 9,792 million euros (8,921 million euros in 2016, +9.8%)
- the increase reflects lower amortisation and impairment
Group net income: 3,779 million euros (2,570 million euros in 2016, +47.0%)
- the above growth was attributable to an improvement in EBIT, a decrease in debt-related financial expenses, to the gain on the disposal of Bayan Resources and to lower income taxes
Group net ordinary income: 3,709 million euros (3,243 million euros in 2016, +14.4%)
Net financial debt: 37,410 million euros (37,553 million euros at the end of 2016, -0.4%), a slight decrease on 2016
Proposed dividend for 2017: 0.237 euros per share (of which 0.105 euros per share paid as interim dividend in January 2018)
2017 results and objectives of the Group strategic plan
Results outperform guidance
- Italy and South America drive growth, despite low water availability
- Over 3 GW of additional renewable capacity
- Ordinary EBITDA and net ordinary income growing
In 2017, significant progress was made on achieving the targets set for the enabling factors and the key pillars of the Group strategy:
- Digitalisation – around 1 billion euros invested in digitalisation of distribution grids as well as thermal and renewable generation assets.
- Customer focus – 20 million customers on the free market, with growth in all the main geographies. Enel X business line launched.
- Operational efficiency – cash cost of 11 billion euros, improving compared to 2017 guidance, with a reduction of 4% in maintenance capex.
- Industrial growth – reached the EBITDA growth target, 90% of EBITDA growth for 2018 has already been addressed. Additional renewables capacity amounted to 3.1 GW.
Group simplification & active portfolio management – achieved 60% of target to reduce operating companies in South America, sold minority interests in Electrogas in Chile and Bayan in Indonesia. Reacquired minority stakes in the distribution grids in Romania and Peru; restructuring of Group’s shareholdings in Chile began through Enel Chile. Asset disposals of about 2 billion euros carried out, while acquisitions amounted to around 2.1 billion.
Shareholder remuneration – the total dividend proposed for 2017, with a 65% implied pay-out, is equal to 0.237 euros per share, 32% higher than the dividend paid in 2016 and approx. 13% higher than the 0.21 euros per share minimum guaranteed dividend for 2017.
Creating sustainable long-term value – made substantial progress towards the commitments with regard to the United Nations’ Sustainable Development Goals.
- SDG 4 (quality education): 600,000 beneficiaries;
- SDG 7 (clean and accessible energy): 1.7 million beneficiaries;
- SDG 8 (decent work and economic growth): 1.5 million beneficiaries;
- SDG 13 (climate action): closed 2017 with specific CO2 emission of 400 g/KWhe.
Financial targets for 2018 confirmed