Enel - The World's Largest Energy Utility

First and foremost, ESG – environmental, social, and governance – has recently crystallized to be one of the most important factors for private and institutional investors. No investment bank or asset management institute publicly states to neglect ESG criteria in order to maximize their return on investment. Icons like Bill Gates sold all their investment stakes of Non-ESG conform companies and release books such as ‘How to avoid a climate disaster’ to convince others to accompany him on the way to reach the 1.5-degree Celsius Paris Agreement goal.

Enel S.p.A. (BIT: ENEL) the world’s largest energy utility with a revenue of 62,623 million euros in 2020 was among the first large corporates to invest in renewable power generation in 2008. With its heavy investment path of 190 billion euros until 2030 in the fields of renewable energies, I claim that Enel is perfectly aligned with what is important for the society and economy within the next decades.

Image Source: Unsplash

Business Diversification

Impressively for an energy utility, Enel is active in thirty-two countries, in Europe, the Americas, Africa, Asia, and Oceania. It generates and distributes energy (electricity and gas) in B2B, B2G, and B2C. Enel has 49 GW in renewable energies (Solar, Wind, Geothermal, Hydro, and Hybrid) and 36 GW in thermal generation. This ratio is a promising sign for future profitability. Enel X uses digitalization, innovation, and circular economy to offer B2B and B2G services for integrated solutions. As a distribution system operator, it manages 2.2 million kilometers of network with 44 million smart meters in 8 countries. Furthermore, it supplies 70 million homes with energy. Enel trades on the global energy and commodity market in more than 30 countries to reduce risk and secure energy supply. All figures are on the upper end in comparison to utilities in general which mostly act on the national or continental level. It is striking that Enel’s fields of business are highly digitalized which leads to great efficiencies, enormous cost-saving and revenue increase potential for additional software and services.

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Disclosure: I do not own any stake in Enel SpA and its country subsidiaries by 22/04/2021.

Disclaimer: This article is not an investment recommendation,  more

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