Enel seeks to slash debt with €21bn asset sale

Italy’s Enel has announced plans to sell assets valued at €21bn as it moves to cut debt and streamline its business to focus on six core countries and the development of renewable energy.

The Italian state-backed utility, one of the world’s largest renewable producers, said on Tuesday it would sell its gas assets in Spain and withdraw from countries including Argentina and Peru to focus on clean energy developments in Europe and the US.

Francesco Starace, chief executive, said the company would seek to raise €21bn through the asset disposals, reducing net debt towards €51bn-€52bn while focusing on “geographies that can add value despite the current challenging scenario, embracing a leaner structure and a more robust set of financial ratios”.

The company will also increase its dividend from 40 cents a share to 43 cents between 2023 and 2025.

“The bulk of this plan is expected to be rolled out by the end of 2023, resulting in a more agile company focused on six core countries” of Italy, Spain, the US, Brazil, Chile and Colombia, Enel said.

The company said that by 2025 it expected group ordinary earnings before interest, tax, depreciation and amortisation to reach €22.2bn-€22.8bn, compared with projected 2022 ebitda of €19.0bn-€19.6bn.

Group net ordinary income is expected to rise to €7.0bn-€7.2bn, compared with a forecast of €5.0bn-€5.3bn in 2022.