Endesa to shield dividend from $570 million LNG court order
MADRID, Nov 20 (Reuters) - Spanish power utility Endesa said on Monday it plans to shield its dividend payment from the impact of a court order to pay $570 million following a price review of a long-term liquefied natural gas (LNG) supply contract.
Endesa, owned by Italian energy giant Enel, said in a statement that its board of directors would meet in two days to tweak the dividend policy and keep unchanged the shareholder remuneration for this year.
The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business.
The move kicks off a key week for the energy firm, which will present its strategic update to the market on Thursday, a day after parent Enel presents its own plan.
The Spanish firm said on Monday that it will have to pay $570 million to an undisclosed LNG producer following a ruling by the International Court of Arbitration of the International Chamber of Commerce in a dispute over a retroactive price adjustment. Endesa said it will post a charge for this amount in its results.
The court decision concerns the larger of two LNG cases the company has previously disclosed. The opposing party was seeking around $1.28 billion, a company spokesperson said.
Endesa, which still faces another claim of almost $600 million, has promised shareholders a dividend of 1 euro ($1.09) a share this year, pledging to raise it to 1.2 euros next year and 1.4 euros in 2025. This corresponds to 70% of its adjusted profit.
Endesa shares were 1.17% lower in early afternoon trading in Madrid, while the broader bluechip index was up 0.7%.
"This news shows 2023 isn't the best year for gas of Endesa," RBC analysts said in a research note on Monday.
"Even if this doesn't have an impact on 2023 dividends, it will have an impact on P&L (profit and loss statement) and cash flows of the company."
($1 = 0.9168 euros) (Reporting by Pietro Lombardi; Editing by Susan Fenton)