By Francesca Landini
MILAN (Reuters) - Italy's biggest utility Enel (BIT:ENEI) is in no rush to sell assets, its new chief executive Flavio Cattaneo told analysts on Wednesday, after the utility beat market expectations on core profit and net income for the first half.
In his first appearance since his appointment at the helm of the group in May, Cattaneo said he believed the group would reduce its net debt as planned even with a selective approach.
"Our intention is to continue with the disposal plan, but not at any price," Cattaneo said, adding results of a spending review he had started after his appointment had already shown positive effects.
"The new management has promptly implemented actions to further improve capital allocation ... and simplify the group structure through a geographical focus on six core countries," he said in statement.
These actions, together with the results achieved in the period were the basis to confirm both the 2023 guidance and the pledge to pay a dividend of 0.43 euros per share for the current fiscal year.
Net debt came in at 62.2 billion euros at the end of June up from 60.1 billion euros at end-December.
Cattaneo, a former head of telecom group Telecom Italia (BIT:TLIT) and power grid operator Terna, succeeded long-serving CEO Francesco Starace in a management shake-up orchestrated by Italy's Treasury, which is Enel's biggest single shareholder.
The management change created some discontent among Enel's foreign shareholders who called for a more transparent and inclusive appointment process.
The new CEO and fellow newly appointed CFO Stefano De Angelis said they would update investors more fully on the group's strategy at a capital markets day in late November
In the first half Enel reported a 29% rise in ordinary earnings before interest, taxes, depreciation and amortisation (EBITDA) to 10.7 billion euros, above an analysts consensus of 10.3 billion euros, thanks to a recovery in its retail activities and growth of its renewable production.
Taking into accounts disposal deals already signed but not yet finalised, including the sale of 50% of its Greek renewable business announced on Wednesday, net debt fell to 57 billion euros.
"All looks positive which together with what it seems will be the maintenance of the dividend policy is a good start that should be reconfirmed on Nov. 23 at Enel's capital market day," analysts at Royal Bank of Canada said in a report.
($1 = 0.9026 euros)