Renta 4 | Faced by the changing market conditions directly affecting the profitability of coal-fired power stations in Spain, Endesa´s board has decided to accelerate end of their production without expecting any impact on operating profits.
This decision could imply an accounting deterioration of around 1.3 Bn€ (5.1% of stock market capitalisation). This will have to await the presentation of the results for the first nine months of 2019, expected on 5 November.
This deterioration will not impact on the company´s generation of cash, so should not impact the group´s dividend policy. In addition we expect that it will accelerate investment in renewables in the next few years. We expect no impact on share price. We reiterate our view of the shares. Objective Price 22.08 €, Maintain.