Banco Sabadell | S&P has lowered its outlook for Endesa from stable to negative, in line with the action it took in the case of ENEL (holds 70% of the Spanish utility). However it has maintained the rating at BBB+. Valuation: The news has a negative slant, although the impact is limited. The planned investments, along with the increase in debt, are behind this revision.
Norbolsa | The government has unveiled its proposal for temporary special taxes on energy firms. The tax would mean a charge of 1.2% on revenues in 2022 and 2023 and payment would start in 2022. We estimate the following impact in 2022e for the big Spanish utilities: Endesa 400 million euros, Iberdrola 300-320 million and Naturgy 160-200 million. The impact is a guideline, given that we still do not have…
Banc Sabadell | The Royal Decree on energy has been approved and the electricity companies are still asking that in Spain profits are taxed and not revenues. Yesterday the Cabinet approved the Decree which includes: Cut in VAT on gas from 21% to 5% up to December (which could be extended until 2023). Application of the “Iberian exception” to co-generation plants (600 installations) Service mechanism for rapid demand response, allowing industries…
Fernando González Urbaneja | Several ministers in conversations with journalists have complained about the excessive, extraordinary, abusive… profits of the electricity companies. These adjectives have been heard in Parliament from the mouths of more than a few dubiously documented parliamentarians. It would be desirable for such descriptions to be followed by explanations and figures, because where there are no accounts, stories dominate. To begin with, it would be useful to…
Alphavalue | Endesa, via its affiliate Endesa Generación Portugal, has won a connection right for 42 MW to install a floating photovoltaic solar energy project in the Portuguese dam Alto do Rabagão. The company said the auction it participated in was the first floating solar energy project for dams in the Iberian Peninsula. The investment required will be 115 million euros, Endesa said. Endesa won the floating solar energy project…
On Tuesday, the Ministry for Ecological Transition presented a draft bill to the Council of Ministers to put an end to windfall profits, i.e. to put an end to the over-remuneration of nuclear and hydroelectric power in order to reduce consumers’ electricity bills, which have risen considerably, among other things, due to the increase in CO2 emissions.According to government sources, the proposal would respect the European regulatory framework (where there should be no discrimination by technology) and would be similar to that existing between 2006/2009, with the reduction of a part of the CO2 “dividend” to non-emitting plants prior to 2005 that sell energy on the market.
Iberdrola is the Spanish energy brand with the highest growth in brand value, with a 1.4% increase in brand value and remains the most valuable Spanish energy company in the world according to Brand Finance, the intangible valuation consultancy. Furthermore, Iberdrola is the only Spanish company in the sector’s top 10. It ranks 6th in the table and has a value of €4.38 Bn. The ranking is headed by China’s State Grid with €46.9 Bn.
Endesa has put forward 110 projects eligible for the EU recovery fund. The whole of these projects would mean a total investment of 19 billion euros (53% of its Enterprise Value and 75% of its capitalization). So the company is requesting 16 billion euros (85% of implicit leverage) from the EU recovery funds. Member countries can submit proposals from today until April 30th, 2021.
Endesa has completed the development and validation phase with real users of the ‘Confia’ project, which is a pioneer in Europe. Thanks to ‘blockchain’ technology, it will enable the processing of cases of energy poverty to be speeded up as much as possible. The project is part of Endesa’s commitment to the fight against energy poverty. The company currently has more than 270 agreements in force.
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.