Enel wants to leave Romania

Enel SpA plans to sell 21 billion euros ($21.51 billion) worth of assets to reduce its net debt and focus on its presence in six countries, according to the updated strategy of Italy’s biggest company of utilities presented on Tuesday, reports Reuters.

The largest part of the asset sale plan – which targets, among others, assets in Romania and Peru – will be carried out by the end of 2023, the company informed in a statement.

Enel, which could also sell its gas portfolio in Spain, wants to end 2023 at a net debt level of 51-52 billion euros, up from 69 billion euros at the end of September.

Profit before taxes, interest, depreciation and amortization (EBITDA) should increase to 22.8 – 22.9 billion euros in 2025, from a level of 19 – 19.6 billion euros estimated in 2022.

Also, the state-controlled company intends to invest approximately 37 billion euros in the next three years, of which 60% will be in power generation capacity, customers and services, and 40% in network development.

Enel has committed to reward investors with dividends of 0.43 euros for the period 2023-2025, up from 0.40 euros in 2022.

What does the head of the Competition Council say?

Enel’s departure from Romania should not be seen as a tragedy, and customers will not be affected, said Bogdan Chiriţoiu, the president of the Competition Council, on Tuesday. asked by journalists what will be the effects of Enel’s exit from the Romanian market.

“The energy market is going through a difficult period. It is a crisis that affects both companies and customers. The government took measures, within a year there were four emergency ordinances. When there is a crisis and you do things in a hurry, obviously not everything turns out perfectly. All kinds of corrections have been made and I am convinced that we can discuss other measures to correct the legal framework and ensure the predictability of operators as much as possible. But then again, it’s a crisis, you can’t predict everything. This is the challenge of the moment, to reach an intelligent regulation in energy”, said Chiriţoiu.

He showed that, on the supply side, competition has little importance in this period of crisis.

“Enel was an expanding operator and I appreciated their position in the market. The owner changes, the company does not disappear. I give you the example of CEZ, which is still called CEZ, although the owner is no longer the Czech company, but an Australian investment fund located in London. But customers have a contract with the CEZ company and receive CEZ services. There is no reason why the sale would affect customers. The exit of a company is not a tragedy in itself, companies come and go. I repeat, at CEZ, the change seemed to me to have gone well, I did not see any change in the market. I don’t see why the Enel exit should be viewed differently than the CEZ exit,” added Chiriţoiu.

Source: Cotidianul RO by www.cotidianul.ro.

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