EDP Strategic Agenda
This strategy has proved suitable given the business context, particularly with regard to the European Utilities sector. Explore our strategic agenda.
We wish to continue to drive the future with clean energies and pursue a low risk strategy for shareholders.
Our key objective for 2014-2017 is to continue to grow sustainably, through a business profile of low-risk and efficiency to enable us to achieve attractive returns.
EDP 2016-2020 Strategic Agenda in 5 points
EBIDTA / CAGR 20151 - 20
Focused growth with an average net investment of 1.4 billion euros per year between 2016 and 2020, particularly in renewable capacity with long-term energy sale contracts, allowing for an average growth of 3% of the gross operating result per year.
Continued financial deleveraging
Net debt /EBITDA
Continued financial deleveraging, aiming to achieve a threefold net debt/gross operating income ratio (EBITDA) in 2020, from an adjusted fourfold ratio in 2015. The average cost of debt is expected to drop to 4.2% by 2020.
Keeping a low risk profile
long-term Regulated/ contracted EBITDA%
Keeping a low risk profile, with an outlook that in 2020 76% of the installed capacity will be renewable and the average residual life of assets will be 21 years. The percentage of gross operating income from regulated business activities or long-term power sale contracts should be 75% in 2020.
Opex/ Gross Margin
Increased efficiency is another strategic priority, and it will be implemented with a new annual costs-cutting program in order to generate savings of EUR 200 million in 2020 and EUR 700 million accumulated in the 2016-2020 period. Accordingly, the operating costs per gross margin ratio is expected to drop to 26% in 2020.
Deliver attractive returns
EPS CAGR / DPS FLOOR 20151- 20
Attractive returns for shareholders: the minimum dividend payout per share increases 3%, from EUR 0.185 in 2015 to EUR 0.19 in 2016. The goal is that the dividend payout per share represents 65%-75% of the net income per share in the 2016-2020 period. As for the net income per share, it is expected to grow an average 4% per year.
1. Based on EBITDA and the recurrent and adjusted 2015 net income of the hydrological effect