Enel, the market demands continuity
“The unseen market does not buy anything, for this reason it is giving indications for maintaining the current management team at Enel”. At Affaritaliani.it an analyst of a leading fund – who for obvious reasons prefers to remain anonymous – tries to shed light on the story of the company that has entered the vortex of full-nominations. Since it became clear that the centre-right coalition would have prevailed quite clearly (and that it would be her turn the management of the appointments of subsidiaries such as Eni, Enel, Terna, Poste and Leonardo) rumors and pressures have multiplied – even in the press – to talk about who would sit on those prestigious armchairs.
Last week thein Lega he shelled against Eni and Enel asking discontinuityfollowed by according to what Matteo Salvini said at the beginning of January. As far as Enel is concerned, in particular, one of the most investigated issues is that relating to debt, the total of which has in any case begun to fall as early as the fourth quarter of last year. Indeed, the point is that the parameters adopted by politics to judge certain companies differ greatly from those used by the market. Staying on the subject of debt, for example, until 2019 Enel had a ratio to Ebitda of around two and a half timesversus an industry average that was around three times.
So much so that the market had asked the company to increase leverage and bring it to a value similar to that of its competitors. Responding positively to requests from the financial community does not only mean behaving like a listed company, but also guaranteeing better returns to shareholders if the required objectives are achieved. And Enel’s main shareholder is the Treasury. Incidentally, the average duration of the debt is seven and a half years, with approximately 80% being at a fixed rate and which therefore is not affected by the dynamics of the increases in the same rates following the interventions of the Central Bank.
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