Energy giant Enel faces impact of economic downturn
Italian electricity demand in free fall, Europe’s second largest utility, Enel, is taking measures in order to reduce its soaring debt. Plans include selling off assets worth €6 billion, mothballing surplus capacity and job cuts.
Enel SpA saw a 79% drop in earnings during 2012. The gloomy economic outlook and strenuous trading conditions in Italy and Spain (Enel controls 92% of Spanish utility Endesa) leaves little hope for recovery before 2017. CEO Fulvio Conti stated that Enel forecasts a 2017 installed capacity in Italy and Spain of around 52, which will mark a sharp decline compared to the 59 GW in 2012. The company is shifting its investment priorities to growth markets, such as South America and Eastern Europe.
Last modified onThursday, 04 May 2017 17:45