Within the framework of its General Shareholders' Meeting held in Madrid, just one day after the blackout that affected the Iberian Peninsula, the CEO of Endesa, José Bogas, made a strong call to strengthen the energy autonomy of Spain and Europe.
With 85,630% of the share capital present, Bogas stressed the importance of guaranteeing the electricity supply, especially after the recent incident. "Events like yesterday's highlight the importance of the guarantee of electricity supply"We are modern societies because we are electrified, and for this very reason, guaranteeing the security of supply and the competitiveness of our electricity system is fundamental," he stated at the beginning of his speech.
About the framework in which the company operates and how this framework determines the current priorities, noted: “In the geopolitical sphere, new factors are redefining the world order. The war in Middle East, the already long war in Ukraine, nationalist and protectionist policies, the withdrawal of United States of the Paris Agreement and its imposition of trade tariffs"These are clear signs that Europe must take a leading role and strengthen its self-sufficiency. Against this backdrop, energy and defense have become the continent's top priorities."
During the review of the main financial milestones for the year 2024, the CEO highlighted the excellent performance recorded by all business areas.
Regarding the 2024 financial results, Endesa's CEO highlighted "excellent performance" across all business areas. EBITDA experienced remarkable growth of 40%, reaching €5.293 billion, while ordinary net profit increased 2,1 times to €1.993 billion, driven by the normalization of energy marketsThese results will allow us to propose a shareholder return of €1,32 per share, 10% higher than the target and 32% more than the previous year, placing the dividend yield above 6%.
During the meeting, Bogas also highlighted important transactions carried out in 2024, such as the sale of 49,99% of Endesa's photovoltaic plants to masdarThis will allow Endesa to "increase funds for new investments," while maintaining control of the assets. The company also highlighted the purchase of 34 hydroelectric plants from Acciona, which add 626 MW and improve the company's hydroelectric production mix by more than 20%.
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Regarding the 2025-2027 strategic plan, Endesa forecasts a record investment of €9.600 billion, 8% higher than the previous plan, focusing primarily on distribution networks (€4.000 billion) and renewable generation (€3.700 billion). Bogas also detailed investments in the maintenance of non-peninsular systems, nuclear generation and combined cycle plants (10% of the total), as well as in the energy marketing and value-added services business (€900 million).
Additionally, Bogas announced a plan to share buybacks of up to 2.000 billion euros, initiated with an initial tranche of 500 million, with the aim of "optimizing its capital structure" and "making shareholder returns more attractive".
In the debate on national energy planning, the CEO of Endesa referred to the update of the National Integrated Energy and Climate Plan (PNIEC), which anticipates a rapid expansion of renewable energies, the strengthening of the grid, and greater electrification. However, Bogas expressed his doubts about the planned closure of the nuclear fleet in the current context of "energy and geopolitical uncertainty." He argued that nuclear energy supplies 20% of demand, Spanish plants are safe and could have their lifespan extended, and their closure could increase electricity prices and CO2 emissions. He also pointed out the tax penalty that nuclear energy faces compared to other technologies.
Finally, regarding the distribution network, Bogas defended the need for an appropriate regulatory framework and a remuneration model that incentivizes investment in its expansion and improvement, noting that the current rate of return on investment "is insufficient." He emphasized Spain's potential to become a "major industrial investment hub in Europe" with a suitable regulatory framework.
For its part, el Non-executive chairman of Endesa, Juan Sánchez-CaleroHe analyzed the international situation and its impact on the sector at the European and national levels, emphasizing: “The value and importance of companies is measured primarily by their ability to confront challenges and contribute to the advancement of the communities in which they operate. Our performance during the 2024 financial year and the results recorded are a first expression of our role as a factor of stability and development.”
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