- ENIA is focused on replacing a 14% oil and gas exposure with more renewable projects, which already dominate their asset base.
- These projects will be focused on wind power, mostly in Brazil.
- We believe that the currently small wedge between ROIC and WACC can be widened by these wind projects.
- The dividend reduction from previous years comes at an appropriate moment for the company, where capital can be driven into nicely returning projects.
- The energy crisis means that this might not be the best timing for a utility investment, but we will continue to look closely at ENIA.
For further details see:
Enel Americas Has Projects In The Pipeline At Good Returns