Banco Sabadell : According to press reports, Endesa has shown interest in the hydroelectric assets that Acciona has recently put up for sale. Specifically, they would comprise 626.5 MW spread over 34 plants and with a concession life of between 12 and 39 years. According to the news, Acciona Energía aims to obtain around €1,000 million in a process that is still in its initial stages, and in which the first non-binding bids are expected to be received next week.
Assessment: For Acciona/Acciona Energía: This news is part of the company’s strategy to rotate assets to protect its balance sheet and continue developing energy projects. As commented in 1H’24 Results they would have a total of 6,000 MW of potential divestments (although they would not sell everything). Specifically, these hydro assets (626.5 MW) account for 4.4% of installed capacity and the aforementioned valuation would be in line with the recent sale announced in July by Acciona Energía (Elawan acquired 175 MW of hydro for €287 million, which implies €1.64 million/MW vs €1.59 million/MW for this potential sale). In addition, it would cut Acciona Energía’s debt by approximately 25% and Acciona’s by around 13%.
For Endesa, the news would be positive, although with a limited impact (4.8% capitalisation/9% DFN) until it is finally awarded. In any case, it would fit in with Endesa’s strategy of increasing renewable production. In the current Strategic Plan 24-26, Endesa has an investment target in renewables of €4,300 million to increase capacity to 13.9 GW in 2026e vs 10 GW at present, under a partnership model and asset rotation in order to keep leverage ratios under control (DFN/EBITDA’26e 1.4x vs 2.9x at present).
