MOSCOW, July 6 (Reuters) – Italian power group Enel SpA (ENEI.MI) sees earnings at its Russian unit OGK-5 (OGKE.MM) growing five-fold by 2014 amid favourable market conditions, it said in a presentation on Tuesday.
The company, which has a 55.86 percent stake in OGK-5, said the unit’s earnings before interest, tax, depreciation and amortisation (EBITDA) would rise to 471 million euros ($632 million) in 2011 from 184 million in 2009.
It added OGK-5′s EBITDA was forecast to reach 1.08 billion euros in 2014, while reiterating a pledge to invest around 1 billion euros in the company over a five year period.
“Market fundamentals are favourable (in Russia) especially when compared to the rest of the world,” head of the international division Carlo Tamburi told an audience of analysts in the Russian capital.
Russia’s power industry has been overhauled by a major liberalisation programme over the past decade. Enel and Germany’s E.ON AG EONG.DE took control of OGK-5 and OGK-4 (OGK4.MM), respectively.
Enel, Europe’s second-biggest utility by installed capacity but also its most indebted, is planning a 3 to 4 billion euro IPO of its renewable energy unit to pay down borrowings. [ID:nLDE6581NK] (Reporting by John Bowker and Ben Judah; Editing by David Holmes) ($1=.7453 Euro)