Rome, September 27th, 2019 - Enel S.p.A. ("Enel") announces that its Spanish subsidiary Endesa S.A. ("Endesa") has informed the market that its Board of Directors has decided to promote the interruption of generation by the coal-fired plants owned by Endesa in the Iberian Peninsula and to assess future options for the related sites, in compliance with the procedures set out in current regulations. This decision was taken in light of the significant and structural changes in certain factors in 2019, notably commodity prices and the operation of the CO2 emissions market, which negatively impacted the competitiveness of the above coal plants, making the possibility to operate them in the electricity market in the future highly unlikely. The net book value of the plants involved amounts to approximately 1.5 billion euros at the Enel Group level, including the related dismantling costs.
Endesa also announced that this decision of the Board of Directors could entail the recognition of impairment on the assets involved in an amount of up to the net book value reported above. Any actual financial impact, which is currently being determined, will be reported in the interim financial reports of Endesa and Enel for the first nine months of 2019.
The above initiative is in line with the Enel Group’s goal to fully decarbonise its generation mix by 2050.
Finally, any impairment stemming from the expected interruption of generation by Endesa's coal-fired power plants in the Iberian Peninsula would not in any case affect Enel's dividend policy, which is based on a pay-out proportionate to the Group's net ordinary income that would not be impacted by such impairment.
For the dissemination to the public and the storage of regulated information made available to the public, Enel S.p.A. has decided to use respectively the platforms “eMarket SDIR” and “eMarket Storage”, both available at the address www.emarketstorage.com and managed by Spafid Connect S.p.A. with registered office in Milan, at Foro Buonaparte, 10. The aforementioned services are authorized by Consob (resolution No.19878 of February 15th, 2017, related to the mechanism for the dissemination to the public of regulated information “eMarket SDIR” and resolution No. 19879 of February 15th, 2017, related to the mechanism for the central storage of regulated information “eMarket Storage”).
From May 19th 2014 to June 30th 2015, Enel S.p.A. used the authorized mechanism for the storage of regulated information denominated “1Info”, available at the address www.1info.it, managed by Computershare S.p.A. with registered office in Milan and authorized by Consob with resolution No. 18852 of April 9th, 2014.