[size=75:2dyxvtct]novinite 20 March 2010

Enel Confirms Plans for Bulgaria Thermal Plant Sale

Italian energy giant Enel is considering the sale of its 73% stake in Maritsa East 3, a coal-fired plant which has a capacity of 908 megawatts, the company executive director has confirmed.

“We are not happy with the Bulgarian market and that's the reason for our decision. I believe that Martisa East 3 will be much more efficient if managed by an integrated player, who has already stepped in Bulgaria. Such a player will have much bigger chances to benefit from the plant,” Fulvio Conti told local Darik Radio.

Conti stressed that the buyer should not underestimate the value of the plant, which is why Enel has launched a bidding competition.

“A rival company has already expressed interest in the sale,” Fulvio Conti said.

A year ago Enel increased the capacity of Maritsa East Three plant to 908 megawatts, up from 840 MW, and also put new desulphurisation installations on the plant's four units.

Experts comment that that the potential buyer is probably eying a 100% stake in the plant, in which the state owns a 27% stake. The rumors were fanned by a statement of Energy and Economy Minister Tricho Traykov, who recently announced that the state can land EUR 200 M from the sale of its stake in the plant.

The plant is located in the Maritsa East lignite coal mining complex in southern Bulgaria, which generates 30% of the country's electricity. Enel also owns seven wind parks of 3 megawatts near the Black Sea coast.

Enel said its 2009 earnings rose 2% on revenues earned in its overseas investments which offset decreases in electricity demand in its key Italian market.

The company full-year net profit rose to EUR 5.39 B from EUR 5.29 B a year earlier.

Revenues were up 4.7% to EUR 64 B from EUR 61 B.