Enel Green may shed French, part of N American ops

Jul 31, 2014 - Italian renewable energy firm Enel Green Power (BIT:EGPW) is mulling over the potential sale of its entire French business and a minority stake in its North American assets.

On announcing its first-half 2014 financial results on Wednesday, the company said it was assessing the possibilities of reducing its activities in the two regions with the help of financial advisers. Enel Green, part of Italian utility Enel (BIT:ENEL), operates hydropower, geothermal, wind, solar and biomass facilities in 16 countries. At the end of June, the firm had 9.1 GW of installed capacity, including 5.9 GW in Europe and 1.9 GW in North America.

The possible sales reflect Enel’s efforts to cope with the price reductions in the main European markets and the unfavourable economic conditions there. The company explained it will aim to boost its installed capacity mainly in emerging markets and countries with ample renewable energy resources and stable regulatory frameworks.

This year alone, Enel Green will explore new expansion opportunities in countries with “considerable growth potential,” it said.

The Italian firm closed the first half of 2014 with a net profit of EUR 293 million (USD 392m), rising 8.9% in annual terms. Still, revenues declined by 1.3% to EUR 1.14 billion.

(EUR 1.0 = USD 1.339)

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