Enel SpA (ENEL.MI) said Thursday it halved its interim dividend on the year, as the Italian utility implements a new policy aimed at reducing its towering debt pile.
Enel's board approved an interim dividend on 2009 profit of EUR0.10 a share compared with EUR0.20 last year, it said in a statement. The dividend will be paid out from Nov. 26.
In March, the Italian utility approved multi-billion euro measures - including a capital increase and switching its dividend policy to a payout ratio of 60%, rather than the previous policy of a fixed rate per share - aimed at slicing its debt. It estimates net debt at EUR41 billion in 2013.
Enel's debt ballooned after it went on an international shopping spree, in which it netted Spain's Endesa SA (ELE.MC) and Russia's OGK-5 (OGKE.RS). At the end of June its net debt was EUR55.8 billion.
At 1346 GMT, Enel shares were down EUR0.04, or 1.1%, at EUR4.29, while Italy's benchmark FTSE Mib Index was down 0.4%.