Enel SpA (ENEL.MI), Italy's biggest utility by revenue, expects 2008 and 2009 earnings before interest, taxes, depreciation and amortization, or Ebitda, to top expectations, Chief Executive Fulvio Conti said Friday, adding that the company's outlook is better than announced in March.
In March, at the presentation of the firm's growth targets through 2012, Enel said it expected 2009 Ebitda of EUR13.8 billion.
The chief executive said 2008 Ebitda will be higher than market expectations of EUR13.3 billion.
Conti also confirmed that the company expects a net debt of less than EUR50 billion by the end of the year.
The Rome-based company has no present need of further financing, Conti said. He added that he foresees no "shortage of funds if needed."
Enel is sticking to a minimum annual dividend of EUR0.49 a share in the coming years, Conti said, adding that there is no need to lift this figure as it is one of the highest in the sector.
The company's dividend yield stands at about 8%, according to FactSet data.
The chief executive said the utility may consider taking over the 50% stake it doesn't own in the Enel Union Fenosa Renovables, or Eufer, renewables energy venture it has with Union Fenosa SA (UNF.MC). Enel is "just watching" for now, he said.
Gas Natural SDG SA (GAS.MC) agreed Wednesday to buy a large stake in Union Fenosa and said it would later make a bid for the rest of the Spanish company.
In a response to several questions from analysts on Enel's frosty relationship with Acciona SA (ANA.MC) over their joint ownership of Endesa SA (ELE.MC), Conti said he was "happy" with the investment, despite some differences of opinion between the two.