Enel confirms full-year outlook on emerging growth

MILAN Tue Nov 13, 2012 11:52pm IST

Stocks

   

MILAN (Reuters) - Enel (ENEI.MI), Italy's biggest utility, has confirmed its full-year guidance, saying emerging markets were helping offset weakness in its recession-hit home market that was expected to persist next year.

Enel, which owns 92 percent of Spanish utility Endesa (ELE.MC), is faced with falling power prices from weak demand in Italy and increasing competition from solar power generators.

It confirmed guidance for the full year thanks to growth in eastern European, Russia and Latin America.

Enel, Europe's most indebted utility, is targeting core earnings of 16.5 billion euros ($21 billion) for the year and net debt of 43 billion.

"The 16.5 billion euros is the minimum we expect," chief finance officer Luigi Ferraris said on a conference call.

Debt at the end of September was 46.45 billion euros.

To help lower debt Enel has tabled disposals and earlier this year cut its dividend payout policy and investments.

"We still have around 1 billion euros of asset sales. We are working on that," Ferraris said.

Europe's indebted utilities have faced higher costs to refinance debt this year as the euro zone crisis cranked up the cost, especially in peripheral Europe.

Moody's cut Enel's rating to Baa2 from Baa1 earlier this month to reflect increased challenges in its core markets of Italy and Spain.

Enel said earnings before interest, tax, depreciation and amortization (EBITDA) were 12.8 billion euros in the first nine months, compared with a forecast range of 12.3-12.4 billion provided by the company.

($1 = 0.7867 euro)

(Reporting By Stephen Jewkes; Editing by Dan Lalor)

  • Most Popular
  • Most Shared

DEFENCE

REUTERS SHOWCASE

Canonisation

Canonisation

Pope declares sainthood of two Indians, four Italians.  Full Article 

Stake Sale Strike

Stake Sale Strike

Coal India trade unions call off strike in victory for Modi.  Full Article 

Markets Weekahead

Markets Weekahead

Ride the bull with a finger on the ejector button.  Full Article 

Arms Purchase

Arms Purchase

India approves $2.6 bln mounted gun purchase - official.  Full Article 

Interview with Bulgari CEO

Interview: Bulgari CEO

Bulgari CEO: we shouldn’t have left India so we’re back  Full Article 

Formula One

Formula One

Hamilton takes second F1 title in style.  Full Article 

Available For Remake

Available For Remake

Bollywood finally wants to pay the price for remakes  Full Article 

Davis Cup

Davis Cup

Vintage Federer seals first Davis Cup for Switzerland.  Full Article 

Movie Review

Movie Review

"Happy Ending" is old wine in an older bottle  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage