Spain’s big electricity firms earned 5.627 bn euros in 2017, up 3% yr-on-yr
The three big electricity companies with operations in Spain, namely Iberdrola, Gas Natural Fenosa and Endesa, earned 5.627 billion euros in 2017, up 3% from a year earlier.
Endesa
Cepsa, the new player who hopes to grab 10% of Spain’s electricity market tart
Cepsa wants to open up a gap for itself in the sector for commercialisation of residential electricity and gas, with the aim of grabbing a 1o% share over the coming years. It will thus become one of the four main operators along with Endesa, Iberdrola or Gas Natural Fenosa.
Spanish Average Electricity Bill Rose 10.8% In 2017, 88€ More Than Year Earlier
An average user’s electricity bill rose 10.8% in 2017 from a year earlier, according to Facua-Consumidores en Acción (Consumers in Action). Whatsmore, Facua denounces the “brutal” 16% increase in tariffs for energy consumed.
Spanish Electricity Surplus Reaches €421,4 M in 2016
In 2016, the electricity system registered a surplus of 421,45 million euros, according to the final figure for the year released by The National Commission on Markets and Competition (CNMC in Spanish).
Endesa’s Dividend Yield Will Be 5% Higher Than Sector Average
Endesa’s new strategy will improve the group’s long-term visibility and allow dividends to be sustained thanks to its robust cash generation. A minimum dividend of 1,32 eur/share in 2017 and 1,33 eur/share in 2018 has been confirmed. This implies a dividend yield 2018 estimated of 7% (higher than the sector average of 5%).
Iberdrola and Endesa’s Results Affected By Impact Of The Drought In Spain
Droughts are not new in Spain, but current year is the third driest year of all time, behind 1981 and 2005. This situation is hitting the hydroelectric capacity of both Spanish utilities Iberdrola and Endesa. In fact, hydroelectric production in Spain fell almost 58% as reservoirs are at 37% capacity when they are normally at 60% during this time of the year.
Ibex-35 drivers: investors like Telefónica , not so keen on utilities
While the telecoms sector (mainly represented by Telefónica) is very attractive for investors, “looming pressure on returns” is clouding investor interest in the utilities.
Spain’s government accuses Enel of working against Spanish interests
Enel is Spanish Endesa’s main shareholder with a 70% stake. Spain’s Energy, Tourism and Digital Agenda minister, Álvaro Nadal, has accused Enel of “playing politics for the Italians to the detriment of Spanish consumers and workers.”
Endesa posts weak Q1 results, with net profit down 26%
Endesa registered net profit of 253 million euros in the first quarter of 2017, down 26% from a year earlier, due to the impact of the “high” prices of electricity in the wholesale market. Its dividend yield is still attractive at 5.7%, while the share price has also been supported by rumours of a corporate deal.
Spain’s Three Biggest Utility Firms Earned 30% Less In 2015
Spain’s three biggest utility companies, Iberdrola, Endesa and Gas Natural, earned 30% less in 2015, recording a combined profit of € 5.0009,6 billion in 2015, 29.6% less than a year earlier.