MADRID, 24 Nov. (EUROPA PRESS) –
Endesa has decided to cancel the sale process of its portfolio of gas marketing clients in Spain, which it launched a year ago, considering that, at current prices, its value cannot be “crystallized”, and it has hoped to be able to reverse in the future the impact of some 570 million dollars (about 530 million euros) suffered by the arbitration award with QatarEnergy, a Qatari state company.
In an interview with Europa Press, the CEO of Endesa, José Bogas, confirmed that the divestment in these gas assets is “canceled” and has not been included in the update of the company’s strategic plan to 2026, after that the “tremendous collapse” in gas prices has made them lose interest in its sale, after contacting several counterparties and receiving offers below its value.
Enel, Endesa’s main shareholder with a 70% stake in its capital, announced in November 2022 its intention to divest from this business, when gas price futures were at levels close to 100 euros. However, in recent times this price has deflated.
Regarding the arbitration award against the electricity company for the review of the price of a long-term supply contract for liquefied natural gas (LNG), Bogas assured that the contract formula “remains competitive”, so He was convinced that it will be possible to “compensate for this negative impact that has occurred in the coming years.”
“They have changed a part in the contract and have referenced it to the TTF, which is what has negatively impacted us, but they have reduced the Brent part. When I see this formula, the cost, therefore, for us, compared to market prices, the result remains the same, very competitive, and from now until mid-2025, which is when this contract ends, we would be able, today with the futures that exist, to recover even more of the penalty that we have had,” he estimated.
On the other hand, Bogas added that Endesa is studying the possibility of appealing this arbitration award, although he acknowledged that the chances of winning are “low.” “An arbitration award is easy to appeal, difficult to win,” he said in statements to Europa Press.
Regarding the strategic plan for the energy company’s 2024-206 period, Bogas assured that it is “ambitious and continuous” with respect to the line set by the company in recent years.
“Ambitious because despite an environment of high inflation or a decline in high interest rates and a certain regulatory uncertainty, because there are still many things to be defined, we have made a determined bet investing almost 9,000 million euros in the next three years,” he said.
Likewise, he highlighted that this investment strength is also accompanied by “financial solidity” through a ‘partnership’ “with a stable first-line partner” that can go hand in hand with the company in the development of renewables.
In this regard, this contribution from partners and the rotation of assets will contribute some 2.8 billion euros to the plan through the entry of these investors with minority stakes in different renewable portfolios, mainly photovoltaic.
