Enel shares

 

Enel and the financial markets

 

2019

2018

Gross operating margin per share (euro)

1.74

1.61

Operating income per share (euro)

0.68

0.97

Group net earnings per share (euro)

0.21

0.47

Group net ordinary earnings per share (euro)

0.47

0.40

Dividend per share (euro)(1)

0.328

0.28

Group shareholders’ equity per share (euro)

2.99

3.12

Share price - 12-month high (euro)

7.21

5.39

Share price - 12-month low (euro)

5.08

4.24

Average share price in December (euro)

6.89

4.94

Market capitalization (millions of euro)(2)

70,047

50,254

No. of shares outstanding at December 31 (millions)(3)

10,165

10,167

(1) Dividend proposed by the Board of Directors on March 19, 2020.
(2) Calculated on average share price in December.
(3) The change is due to the purchase of 1,549,152 treasury shares with a par value of €1.00 each.

   

  

Current(1)

at Dec. 31, 2019

at Dec. 31, 2018

at Dec. 31, 2017

Enel stock weighting in:

     

- FTSE-MIB index

 

16.40%

15.04%

13.86%

11.68%

- Bloomberg World Electric index

 

4.46%

4.21%

3,78%

3.92%

Rating

     

Standard & Poor’s

Outlook

STABLE

STABLE

STABLE

STABLE

 

Medium/long-term

BBB+

BBB+

BBB+

BBB+

 

Short-term

A-2

A-2

A-2

A-2

Moody’s

Outlook

POSITIVE

POSITIVE

STABLE

STABLE

 

Medium/long-term

Baa2

Baa2

Baa2

Baa2

 

Short-term

-

-

-

P2

Fitch

Outlook

STABLE

STABLE

STABLE

STABLE

 

Medium/long-term

A-

A-

BBB+

BBB+

 

Short-term

F2

F2

F2

F2

(1) Figures updated to January 28, 2020.

Global economic conditions were weak in 2019, continuing the slowdown that began in the 2nd Half of 2018. The trade tensions between the United States and China (with the consequent introduction of new tariffs), geopolitical strains, and the persistent uncertainty about the outcome of the Brexit negotiations all impacted investment decisions.
Among other key developments, 2019 was marked by a further deceleration in the Chinese economy and the tightening of financial conditions in the United States (the consequence of the premature start to the normalization of interest rates by the Federal Reserve towards the end of 2018), which slowed the rapid pace of growth in that country.

Growth was modest in the euro area, averaging 0.2% on a quarterly basis beginning in the 2nd Quarter of 2019, mainly due to weaker external demand and the difficulties in manufacturing and the industrial sector in general.
In Latin America, economic conditions were weak and varied, marked by strong political instability (i.e. Argentina, Chile, Peru and Bolivia).
The easing of geo-political tensions (with the “phase-one” agreement between the United States at the start of 2020 and the dissipation of the risk of a hard Brexit following the overwhelming victory of the Conservatives in the British elections), together with the improvement of global financial conditions (the return of more expansionary monetary policies in both the mature and emerging economies), strengthened optimism at the start of the year concerning the pace of global economic recovery. However, the outbreak of the COVID-19 epidemic in China and the subsequent escalation of new infections in Italy in the early months of the year have radically changed the situation. To date, significant but temporary and limited economic damage is forecast in the 1st Half of the year, mainly for economies with strong economic ties with China and those that have taken stringent precautionary measures to contain the spread of the virus (with restrictions on the circulation of people and activities). The coming months will offer a more certain picture of the economic consequences of the outbreak and the repercussions on the financial markets.

Despite the uncertainty in the economic environment, the main European equity indices posted gains for 2019. Spain’s Ibex35 posted a gain of 11.8%, while France’s CAC40 rose 26.4% and Germany’s DAX30 increased by 25.5%.
The FTSE Italy All-Share registered a gain of 27.2%.

The euro-area utilities segment closed the year up 22.2%.

With regard to Enel shares, 2019 ended with the stock price at €7.072, up 40.2% on the previous year, nearly double the performance of the sector index for the euro area.

On January 23, 2019 Enel paid an interim dividend of €0.14 per share from 2018 profits and on July 24, 2019, it paid the balance of the dividend for that year in the amount of €0.14. Total dividends distributed in 2019 amounted to €0.28 per share, about 18% higher than the €0.237 per share distributed in 2018. With regard to 2019, on January 22, 2020 an interim dividend of €0.16 was paid, while the balance of the dividend is scheduled for payment on July 22, 2020.

The outlook for investors is changing rapidly: the changes taking place and the challenges the world presents us today are also impacting the way we invest. Companies are no longer seen as closed systems, but rather as open systems that generate wealth through interaction with the environment and the communities in which they operate, and towards which they are accountable. In this context, Enel’s pursuit of a strategy aimed at creating value through decarbonization and seizing the opportunities offered by electrification has been understood and appreciated by institutional investors, whose stake in Enel at December 31, 2019 reached an all-time high of 60.3% (compared with 57.6% at December 31, 2018), while the share of individual investors has fallen to 16.1% (compared with 18.8% at December 31, 2018). The interest of the Ministry for the Economy and Finance was unchanged at 23.6%.
The number of Environmental, Social and Governance (ESG) investors continued to rise steadily: at December 31, 2019, social responsible investors (SRIs) held about 10.8% of share capital (against 10.5% at December 31, 2018), while investors who have signed the Principles for Responsible Investment represent 43% of share capital (39.1% at December 31, 2018).

For further information we invite you to visit the Investor Relations section of our corporate website (http://www.enel. com/investors) and download the Enel Investor app, which contains financial data, presentations, real-time updates of the share price, information on the composition of corporate bodies and the rules of shareholders’ meetings, as well as periodic updates on corporate governance issues.

We have also created contact centers for private investors (which can be reached by phone at +39-0683054000 or by e-mail at azionisti.retail@enel.com) and for institutional investors (phone: +39-0683051; e-mail: investor.relations@enel.com).

Performance of Enel share price and the Bloomberg World Electric, Euro STOXX Utilities and FTSE Italy All-Share indices from January 1, 2019 to January 31, 2020.

 

Source: Bloomberg.