Our Company

Enel is Italy’s largest power company, and Europe’s second listed utility by installed capacity. It produces, distributes and sells electricity and gas across Europe, North and Latin America. Further to the acquisition of the Spanish utility Endesa, together with partner Acciona, Enel has now a presence in 22 countries with 75,500 MW of generating capacity (on 31st December 2007) and serves more than 50 million power and gas customers. Listed on the Milan stock exchange since 1999, Enel has the largest number of shareholders of any Italian company, at some 1.7 million retail and institutional investors.

BUSINESS OVERVIEW

The company has 73,500 employees and operates a wide range of hydroelectric, thermoelectric, nuclear, geothermal, wind-power and photovoltaic power stations. In 2007, Enel posted revenues of 43.7 billion euros, EBITDA of 10 billion euros and net income of 4 billion euros.

Enel was the first utility in the world to replace its Italian customers’ traditional electromechanical meters with modern electronic devices that make it possible to take meter readings in real time and manage contractual relationships remotely. This innovation has enabled Enel to implement time-of-use electricity charges, which offer customer savings for evening and weekend electricity use, an initiative that has attracted interest from many utilities around the world.

INTERNATIONAL OPERATIONS

After having completed the sale of non-strategic assets, Enel is actively engaged in international expansion in the power and gas market.In particular, with approximately 30,000 MW in plants using renewable energy resources (hydro, geothermal, wind, solar and biomass) in Europe and the Americas, Enel is a world leader in the sector. Further, Enel is strongly committed to the development of renewable energy sources and to the development of new environmental friendly technologies through several projects both in Italy and internationally.

Enel is strongly focused on international growth and has a presence in Europe (Bulgaria, France, Greece, Italy, Romania, Russia, Slovakia and Spain), North America (Canada and the United States) and Latin America (Brazil, Chile, Costa Rica, El Salvador, Guatemala, Mexico and Panama). With Endesa, Enel will also be present in Argentina, Colombia, Morocco, Peru and Portugal.

Enel runs operations in Spain with Enel Union Fenosa Renovables, a company active in the wind, hydro and cogeneration power sector.

In early October 2007, Enel and partner Acciona successfully completed their Joint Tender Offer over Endesa, Spain’s first utility. Enel and Acciona currently hold 92% of the share capital of Endesa (Enel 67%, Acciona 25%).

Enel is one of the largest renewable independent operators in the Americas with Enel North America and Enel Latin America, two companies that have over 1,100 MW of installed capacity.

In North America Enel has 470 MW of hydroelectric, wind and biomass power generation and has just signed an agreement with the company TradeWind Energy in the US to develop over 1000 MW of new wind power. In March 2007, Enel, through its subsidiary Enel North America, announced the acquisition of AMP Resources. The acquisition includes one operating and four advanced stage geothermal development projects expected to add approximately 150 MW of capacity over the next four years to Enel’s North American operations, as well as access to a number of future opportunities.

In Latin America Enel operates 660 MW of hydroelectric and wind power plants. Enel Latin America also runs operations in El Salvador in the geothermal field.

In France, Enel has acquired Erelis, a company that has authorizations in several different fields to build wind plants of up to 500 MW. Over more, it has signed a Memorandum of Understanding with Edf to acquire 12.5% of the new nuclear power project European Pressurized Reactor (EPR). Enel owns 5% of the French power stock exchange Powernext and is one of the main operators in energy trading in the country with 1000 MW exchanged in 2006.

In Bulgaria, Enel acquired control of one of the country’s largest power plants, Maritza East III, in March 2003. The lignite-fired facility has a capacity of 840 MW.

In Slovakia, in February 2005, Enel acquired 66% of Slovenské elektrárne (SE), the largest electricity generator in the country, and the second-largest in Central and Eastern Europe, with a generation capacity of 6000 MW, a mix of nuclear, thermal and hydro assets.

In Romania, in April 2005, it acquired 51% of two electricity distribution companies: Enel Distributie Banat and Enel Distributie Dobrogea, which supply 1.4 million customers. Further to the acquisition of Electrica Muntenia Sud, finalized on 5 June 2008, the electricity distribution company operating in the Bucarest area, Enel doubled its presence in Romania, reaching about 2.5 million customers.

In Russia, Enel managed from June 2004 to September 2007– in partnership with the local private group ESN Energo – the North-West Thermal Power Plant in St. Petersburg. Subsequently Enel has acquired from the ESN Group 49.5% of RusEnergoSbyt, the most important Russian trader providing electricity to major industrial customers. On April 4, 2007, Enel acquired through SeverEnergia (former Enineftegaz, a consortium 40% Enel - 60% Eni) a group of promising gas fields including 100% of OAO Articgaz, 100% of ZAO Urengoil, 100% of OAO Neftegaztechnologiya. Currently, Enel owns 55.8% of JCS Fifth Generation Company of the Wholesale Electricity Market (“OGK-5”). OGK-5 has four thermoelectric power plants for about 8,700 MW. The plants are positioned in the highest growth rate areas of the country. Therefore, today Enel is a vertically integrated operator from upstream to generation and sale of electricity.

SHAREHOLDING STRUCTURE

The Italian Economy Ministry holds 21.1% of the company directly and another 10.1% indirectly through state-run lender Cassa Depositi e Prestiti, leaving a free-float of some 68.8%. Thanks to its Code of Ethics, Sustainability Report, its environmental protection policy and the adoption of international best practices for transparency and corporate governance, Enel’s shareholders include leading international investment funds, insurance companies and pension funds, ethical funds, along with Italian retail investors.

(Unless otherwise indicated, data contained in this report have been updated on the basis of the 2007 Consolidated Financial Statements).

 

 

 

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