Enel report Q3 2013

This is like! An ugly report with no wasted money on fancy pictures but directly down to business AND it is even short! Directly when the report came out the shares dropped by a couple of %-age but at closing time they were down by 1% so not much.


The report were all the information as well as pictures have been taken from can be found here and I must say that there was not really something to be impressed about... I would even say that I personally are more disappointed then what the market seemed to have been. The reason for this was that I was expecting to get some dividend this year but by the look of it I will either get none or a very tiny one.

The reason for that can be seen here:

Last year they cut the dividend completely which was based on two reasons: They placed a nice dump of minus in the fourth quarter 2013 (which I hope will not be the case this year) and secondly there is a non-controlling interest that receive around 1.3 billion € net per year every year. So if everything goes well in the fourth quarter then Enel would have a profit of slightly more than 3 billion €. Removing the non-controlling and we end up around 1.7 billion € which gives 0.18 € per share.... So they could maybe hand out 10 cents in dividends which would be around 3% dividend so good but not good for an energy company today.

If we look at the figures everything is negative besides from the debt which is positive but also that is in the end negative.

I think the only really good news were that they keep expanding into Brazil and they keep making good deals that will be of benefit in the future.

Conclusion: I got them as a turnaround with potential very high dividend payment and I will stick around until I get that one! So my shares stay with me and well... lets just hope that 2014 will become a better year for Enel because this year they will not manage to make any better.