May 10, 2024 07:02 GMT
Enel (Baa1/BBB): 1Q24 Results
UTILITIES
Neutral for spreads. Solid results, credit investors would prefer a more conservative dividend policy.
- Adj. EBITDA grew 12% YoY and beat consensus by 5% (3 estimates). Net income also a strong beat (+22%).
- FCF of €1.95bn is a strong improvement YoY; 1Q23 saw a much larger increase in working capital. Net debt ticks up marginally QoQ due to timing of dividends.
- FY24 EBITDA guidance and debt reduction targets confirmed, with planned disposals. Organic deleveraging is off the table with excess cash flow earmarked for dividends.
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