ENDESA: COAL SHUTDOWN PENDING QUANTIFICATION (ANÃLISIS BANCO SABADELL)
Coal shutdown pending quantification. SELLAt Friday’s closing bell the company announced its decision to close all its coal plants on the Iberian peninsula (10% capacity / ~5% production). According to the press, ELE could announce an alternative plan of up to € 12 Bn of investments (~38% EV) in renewable energy, which in our opinion could be delayed. Despite the fact that ELE will specify all the impacts on 9M’19 results (05/11/2019), at first glance it should not be more than an accounting adjustment for impairments (€ 1.3 Bn / 87% of Net Profit’19e) with no impact on the dividend (6.3% yield), as it is a one-off. We do not expect an impact on future EBITDA (coal does not contribute). Our only doubt is the level of additional provisions for decommissioning/restructuring: ±€ 100 M would mean ±0.4% on the T.P.
Endesa is engaged in the production, transmission, distribution, and supply of electricity, through hydroelectric, fossil fuel, and nuclear generation. Co. is also engaged in the mining of coal for use in its fossil-fuel electric plants; mining research; land restoration, and environmental monitoring and control.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.