Enel Cuts Debt by $3.1 Billion After Completing Sale of Peruvian Subsidiaries
By Enes Morina
Enel reduced its consolidated net debt by about $3.1 billion by selling two Peruvian subsidiaries to North Lima Power Grid, a utilities company controlled by China Southern Power Grid International, or CSGI.
Enel's net debt at the end of 2023 was over $60 billion.
The Rome-based energy company said late Wednesday that the transaction, which had an overall enterprise value of around $4 billion, would have a positive impact on net income this year of around 500 million euros ($540.4 million).
CSGI acquired the stakes held by Enel Peru in Enel Distribucion Peru, a power distribution and supply company, and Enel X Peru, an energy services company. Enel previously recognized a debt reduction of EUR500 million from the sale in 2023.
The company said that the transaction was in line with its objectives over the next two years.
The move follows further asset sales by Enel elsewhere. In May, Enel completed the sale of its Peruvian power generation assets to Niagara Energy for a total consideration of around $1.3 billion. The transaction helped reduce net debt by about EUR1.2 billion.
Write to Enes Morina at enes.morina@wsj.com
(END) Dow Jones Newswires
June 13, 2024 08:02 ET (12:02 GMT)
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