Renewing Enel Large profit, and investors dividends

Enel is one of the few private electric generating companies in Russia, which strives to develop renewable energy sources. At the moment there are a construction of several wind farms, one of which is already running. It is believed that projects in the green energy are unprofitable, electricity from them is expensive and earn it hard. But this is true only in part and that’s why:

Indeed, electricity from wind farms in order to profit, you must be 10 times more expensive than with gas generation. However, the state comes into the game with subsidies and special programs of the DPM renewable. DPM is an agreement on providing capacity, within which the company receives surcharges from the state for the economic feasibility of projects.

If we look at the generation structure of Enel, then in 2021 the power of wind farms will be 90 MW (Azov VES), in 2022 the Kola VES from 201 MW is added.

It turns out that at the expense of the DPM of WEI, a tiny share of power will be brought almost half of the company’s income. Earlier, Enel paid $ 3 billion on dividends, but 2020 made his own adjustments, and the company postponed the payment from 2021 for 2023. Thus, the dividends next year will amount to 3 billion, and in 2023 5.2 billion. Given the current value of Enel at 29 billion, these payments correspond to 10% and 17.5% per annum.

Such a high dividend yield limits the potential of falling stocks. At the same time, the pending dividend makes the dividend yield indecently high, which will lead to an increase in the course value of shares. It is likely that after 2023, Enel will retain the payment at the level of 5.2 billion, since its financial indicators may grow by 30-50% of the current levels.

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