Enel (BIT:ENEL, NASDAQ:ENLAY) an abbreviated form of Ente Nazionale per l'Energia eLettrica, is a multinational producer and marketer of electricity (from both renewable and non renewable/fossil fuel sources) and natural gas. Although it is also active in the North American and Latin markets most of its business comes from Italy and Spain where it is or controls the country's largest energy company. Internationally a lot of its influence comes from controlling or minor stakes in leading regional companies (66% of Slovenske elektarne in Slovakia (which has an 81% market share of electricity production in that country), 5% of France's Powernext, 10% market share in Romania, one of the leading foreign operators in Russia). Currently 30-35% of Enel is owned by people or comapanies directly related to the Italian government. Because of anti monopoly and free market related policies introduced in the 1990's the company has less control than it used to have over Italy's energy market (was forced to relinquish control of distribution networks, power plants and a power grid). It has operations in 17 countries (all of North America, parts of Eastern and Western Europe (all major countries except Germany and the UK), and parts of South & Latin America (the Endesa acquisition deepened its market access there) as well as Morocco) and market exposure in another 44. It serves over 60 million people. In Italy the Sales division has a 28% market share making it the electricity sales leader and 11% of natural gas sales (2nd).
Formerly one of its largest European competitors Endesa (10 million customers in Spain and another 10 million abroad) renewable and fossil fuel electricity producer, was taken over (92%) in early 2009 immediately increasing its business in Spain by 25-30 percent. The acquisition also further diversified its market share globally as Endesa also operates outside of Europe in places like Argentina, Peru and Chile.
Divisions of the company
Employees 2009 81,208 (44.34% at infrastructure and Iberia & Latin America) 1hfy10 80,220 (56.4% at infrastructure and Iberia & Latin America)Endesa (which operates in Spain and Portugal) by 25.01% (only about 8% of shares remain outstanding). A number of companies were either bought or sold which affected revenue however as a whole debt rose due to the billion dollar acquisition of 25% of Endesa. Companies sold include ones with operations in Italy, Russia and Greece. Enel's unique automated meter system has gained popularity; a project was started in 2009 to install 13 million meters in Spain.
|Year (ended December)||Operating Revenue (millions)||Gross Operating Margin (ebitda)||Group Net Income (millions)||Group Net Profit Margin|
During 2009 Enel increased its stake in many other companies, many less than an 11% interest away from being considered an associate/subsidiary (over 50% owned).
|% Interest held by Enel||SeverEnergia||Enel Rete Gas||Elica 2||LaGeo||Elcogas||Dicogexsa||Tecnatom||Terme||Cesi||Idrosicilia|
Business in the US and Canada centers around clean energy production and associated technologies. Subsidiary Enel Green Power is one of only a couple companies in the area that makes use of wind, geothermal, hydroelectric and biomass technology. It also supports and works with Geronimo Wind Energy in wind pipeline projects. There are also wind projects in South America and Latin America. Enel Green Power's hydroelectric, geothermal and solar technologies have enabled it to be a leader in Italy (produces 2637 MW, 11.7 TWh of renewable energy in the country, over half of its global production). About 11.51% of total power generation internationally is from renewables (7296 of 62531 kWh). The comany's increased stake in Endesa consequently gave it control of Bosnia and Herzegovia alternative energy company Energis.