The State Power Corporation increases investment in renewable energy, stock price rises

2026-02-23 16:54:20

Investing.com - Enel’s stock surged more than 5% on Monday after the Italian utility company announced plans to increase investments over the next three years, with a greater focus on renewable energy sectors in Europe and the United States.

Use InvestingPro for breaking news and in-depth research tools.

The state-controlled group stated that it plans to invest approximately 53 billion euros ($63 billion) in capital expenditures between 2026 and 2028. About half of this will be allocated to grid construction, while approximately 38% will go toward renewable energy generation.

This marks an increase from the previous three-year plan, which called for 43 billion euros, with 60% allocated to regulated grid operations and 28% to green projects.

“The group expects renewable energy investments to accelerate significantly, reaching around 20 billion euros, with a focus on regions experiencing substantial electricity demand growth,” the national power company said.

“Management measures implemented over the past three years have provided us with financial flexibility, enabling us to invest in the most active electricity markets,” said Flavio Cattaneo, CEO of the national power company.

The company announced a €1 billion share buyback plan on Saturday, which is expected to be completed by the end of July. The national power company expects earnings per share to rise to €0.80-0.82 by 2028, up from an expected €0.69 in 2025. Full-year results will be announced next month.

It is projected that by 2028, dividends per share will grow at an average annual rate of about 6%, starting from €0.49 in 2025.

The national power company acknowledged that increased investments and shareholder returns will raise net financial debt to approximately three times core earnings, up from 2.5 times at the end of last year.

The stock experienced a pullback last week after Italy approved an energy law aimed at reducing costs for businesses and households. These measures include compensating for carbon costs at gas-fired power plants, which, if approved by the European Commission, are expected to lower wholesale electricity prices.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.