Thu, May 28, 10:55 AM
- Norway’s $900B sovereign wealth fund - the world’s biggest - will drop its holdings in companies and utilities that have heavy exposure to coal, according to a deal reached in the parliament that calls for the fund to exit companies with more than 30% of their revenue from coal.
- By excluding coal companies, the fund joins a growing divestment movement targeting fossil fuels.
- The fund previously exited companies that produce tobacco, nuclear weapons, cluster bombs and land mines. The Norwegian fund has stakes in a number of major utilities, including Duke Energy (NYSE:DUK), Dominion Resources (NYSE:D), the U.K.'s SSE (OTCPK:SSEZF), Italy's Enel (OTCPK:ENLAY) and Germany’s RWE (OTCPK:RWEOY) and E.ON (OTCQX:EONGY).
Dec. 19, 2014, 11:55 AM
- Another casualty of oil’s collapse: The Italian government's plans to make a dent in the country's national debt by selling ~4.5% of oil and gas company Eni (E +0.7%) and Italian utility Enel (OTCPK:ENLAY).
- The government has never officially taken the sale off the table, but with Brent crude down by half since June and Eni shares about a third lower, the sale has become unlikely, at least in the short term.
- The sale of part of the government’s 30% holding in Eni was considered a key part of a program to raise ~€11B from privatizations this year and in each of the next two years in a bid to reduce Italy’s national debt, the EU's second highest based on a percentage of GDP.
Nov. 21, 2014, 7:49 AM
- Italy’s Enel (OTCPK:ENLAY) says it has raised €3.13B ($3.9B) from the sale of a large stake in its Spanish power utility subsidiary Endesa (OTC:ELEZF) to institutional and retail investors.
- Enel, Europe's most indebted utility, will sell the stake of up to 22% of Endesa as part of wider plans to raise more than €4B from disposals to help it cut debt and maintain its investment-grade credit ratings.
Sep. 12, 2014, 7:37 AM
- Italy's Enel (OTCPK:ENLAY) has made a binding offer to buy a 60.6% stake in Chile's Enersis (NYSE:ENI) from its own Spanish unit Endesa (OTC:ELEZF) for €8.3B ($10.7B).
- The reorganization is aimed at reducing Endesa's Latin American assets, giving Enel more direct control over them as it tries to reduce debts. It could also help raise Enel's net income by around €70M-80M.
- Following the purchase, Enel proposed that Endesa distribute an extraordinary cash dividend to shareholders equal to the value of the sale.
Sep. 8, 2014, 4:32 AM
- Stepping further back from the solar industry, Sharp (OTCPK:SHCAY) is looking to sell its U.S. solar-energy development unit Recurrent Energy.
- Sharp previously paid $305M in cash to acquire the business in 2010, although a sale would now help the company raise capital as it struggles to increase its equity ratio to a healthy level.
- Sharp stopped making solar panels in the U.S. and U.K. earlier this year and pulled out of a panel-manufacturing joint venture with Italy's Enel (OTCPK:ENLAY).
Apr. 3, 2014, 12:37 PM
- Cheniere Energy (LNG -1.7%) reportedly is close to securing its second large supply deal this week, as it nears a 20-year deal with Italian utility Enel (ENLAY) for 1B cubic meters/year of gas.
- Earlier this week, LNG signed a 20-year supply deal with Spanish utility Endesa for gas from its proposed Corpus Christi plant in Texas.
- LNG already has secured several sales deals from its Sabine Pass export plant in Louisiana and is now focusing on locking in customers for the Texas plant, even though U.S. regulators have not yet approved that site for exports.
- Shares may be lower today because of a Credit Suisse downgrade to Neutral from Outperform, as LNG has climbed ~35% in two months and many of the company's near-term positives have been priced in.
Mar. 12, 2014, 8:18 AM
- European utilities E.ON (EONGY) and Enel (ENLAY) cut their annual dividends as part of cost saving programs in response to falling power prices.
- E.ON is reducing its dividend to €0.60/share vs. €1.10/share paid out last year, but investors are reacting positively to a further reduction in debt, to €32B at the end of 2013 from €35.8B at the end of 2012.
- Enel is cutting its dividend by 13% to €0.13 but says it will lift its payout ratio to at least 50% of ordinary net profit, which excludes special items, from its current payout policy of at least 40%; it plans to sell assets worth ~€4.4B and cut costs further in a bid to chip away at its huge debt by a further 7.3% this year.
Jan. 21, 2014, 11:46 AM
- Talisman Energy (TLM +0.8%) reportedly rejected a $17B takeover offer from French utility GDF Suez (GDFZY, GDSZF), as the two sides failed to agree on terms in December and have not been in contact since.
- However, U.S.-based utility AES Corp. (AES +0.4%) may still be in GDF’s sights given its footprint in places such as Colombia, where GDF does not operate: GDF's Chinese partner, CIC, is an 8% shareholder in AES, which could ease financing and help get support for a deal.
- Beyond TLM and AES, sources say GDF also could look at smaller portfolios of assets in Latin America worth $5B-$10B, such as assets held by Duke Energy (DUK +0.9%) and Italy's Enel (ENLAY).
Jun. 20, 2013, 3:47 PMGazprom (OGZPY.PK) is set to acquire its first power plant in Western Europe, striking a provisional agreement with Italy's Enel (ENLAY.PK) to buy the 405 MW Marcinelle power plant in Belgium, valued by Enel at ~$265M. The deal fulfills Gazprom's long-held ambition to deepen its presence in its largest market even as it turns its focus to supplying energy-hungry Asian consumers. | Jun. 20, 2013, 3:47 PM | Comment!
Oct. 18, 2011, 12:25 PMItalian utility Enel (ENLAY.PK) sells €1.25B of 4 year paper at a lower yield than the government pays for an equivalent maturity. The bonds were priced to yield 4.625% vs 5.20% for the state. The company also sold €1B in 7 year debt at 5.75%, about the same as the government pays. | Oct. 18, 2011, 12:25 PM | Comment!
ENLAY vs. ETF Alternatives
ENEL and its subsidiaries are involved in the generation, distribution and sale of electricity, providing the majority of the electric service in Italy. Gas distribution and sale, fuel trading, engineering and contracting represent the other principal activities of Co. International operations... More
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