May 8 (SeeNews) - Italian renewables company Enel Green Power SpA (BIT:EGPW) will allocate about EUR 8.8 billion (USD 9.85bn) for growth initiatives as it targets 7.1 GW of capacity additions by 2019.
The company announced its 2015-2019 strategic plan on Thursday, saying that total capital expenditure for the period will amount to EUR 9.6 billion. This includes EUR 8.8 billion fully dedicated to growth, which is an increase of over 60% over the previous strategic plan.
The new plan will be supported by solid cash generation of about EUR 11 billion over the period, the company added.
Enel Green intends to spend about EUR 4.7 billion on its expansion in Latin America, particularly in Brazil, Chile and Mexico, in view of the current growth potential there. It will also seek to diversify its activities in the US, further consolidate its presence in Africa and scout opportunities in Asia, it said.
When it comes to financial targets, Enel Green will aim at earnings before interest, tax, depreciation and amortisation (EBITDA) of around EUR 1.8 billion in 2015, EUR 2 billion in 2016 and EUR 2.1 billion in 2017. Earlier in the day, it posted an EBITDA of EUR 536 million for the first quarter of 2015.
Over the period 2015-2019, the company expects to generate free cash flow from operations of roughly EUR 6.6 billion.
(EUR 1.0 = USD 1.119)