It is owned by the Italian Enel group. Endesastarted aasset sale macro plan reduce its enormous debt by 21,000 million euros (10,000 million more as operating income and 11,000 million more, not counting the debts of the businesses it sells).
Transalpine company announced its divestment strategy last November as part of its new strategic plan to 2025, and included this year’s sale of its gas client portfolio in Spain, which is controlled by Endesa. By the time this operation, which has a direct impact on the Spanish energy market, is completed, the group has already carried out the first major liquidation of its plan.
Enel has reached an agreement with the Greek Public Power Corporation (PPC) for the sale of all its assets. Romania For an amount of 1,260 million euro, which may be higher due to a variable payment depending on the development of the business. Thus, the Italian energy company will leave the Romanian market, where it has officially closed its operations since 2005, in the third quarter of this year, as envisaged, when it receives permissions from the competition authorities.
The Italian public body calculates that the sale of the business in Romania will have a positive impact on its net debt of around €1,700 million (100 million in 2022 accounts and the remainder in this year’s accounts), but it will also decrease by about 1,400 million. The same two exercises for the item of net income, including 600 million for the release of foreign exchange reserves this year. The Group estimates that it will not have a material impact on the ordinary results of the operation.
Mechanisms for sale in Spain
Enel, which controls 70% of Endesa’s capital, plans to take advantage of its new strategic plan and liquidation strategy to reorganize its markets and aims to concentrate its activities in six countries it sees as key: Italy, Spain, United States of America, Brazil, Chile and Colombia. An operation that would require him to leave Romania (currently executed), Peru and Argentina during this year.
But even in countries where it plans to focus its growth efforts, it will do so without resuming all of its current operations and initiate a liquidation plan with the goal of completing it by 2023. included in the divestment strategy Sale of the entire gas marketing client portfolio in Spain.
Enel’s new roadmap predicts that “the value of the gas portfolio in Spain has crystallized”, which means getting rid of the gas customer portfolio, which had 1.8 million users by December. Endesa and its parent company had already confirmed with a previous update of the roadmap next year that they plan to abandon electricity generation with gas plants before 2040. Now they are planning to earn cash in cash with their customer portfolio.
HE Endesa CEO José Bogas, A few weeks ago, in its presentation of its 2022 annual results, it acknowledged that contacts had already been made for the sale of its gas marketing business and that several candidate companies had found interest in the operation, but not much progress had been made specifically. Now.
Thanks to all planned divestments, Italy’s Enel plans to meet its net debt target of 51,000 to 52,000 million euros by the end of this year, and to reduce its current debt of 69,000 million by approximately 25%.