UPDATE - Edison
sees EBIDTA up 70 pct in 5 yrs, assets salesMonday March 17, 3:54 pm ET
MILAN, March 17 (Reuters) - Edison
, Italy's second-biggest energy group, said on Monday it expected core earnings and revenues to rise by about 70 percent and debt to fall sharply in 2007 as it carries out an ambitious five-year industrial plan.
(Milan:EDN. MI - News) Chief Executive Umberto Quadrino also told a news conference he
expected to raise two billion euros in 2003 in asset sales as part of a major overhaul.
launched a 2.1 billion euros ($2.27 billion) recapitalisation last year as it aimed to restructure its debt pile to avoid a downgrade by rating agencies and finance a push into the country's liberalising energy market.
aims to conquer 20 percent of Italy's liberalising electricity and gas markets by 2007, targeting electricity production capacity of 14,000 megawatts in 2007, up from 6,500 MW in 2001. Edison
has said it expects gas sales to rise to 20 billion cubic metres (bcm) (706.3 billion cu ft) in 2007 compared with 4.5 bcm in 2001, which is the latest available figure.
Its net debt stood at 6.4 billion euros at the end of 2002, less than half the 13.5 billion euro level at the end of 2001.
MORE ASSET SALES IN THE PIPELINE Edison
, which raised seven billion euros in non-core asset sales last year, expected to rake in two billion euros this year selling its gas assets in Egypt in the first half of 2003 and gas and power networks in Italy by the end of 2003.
"The asset sales plan is under way and we plan to close it by the year end.
was in talks with Terna, a unit of its bigger rival Enel (Milan:ENEI. MI - News) and Eni's
(Milan:ENI. MI - News) gas distributor Snam Rete Gas (Milan:SRG. MI - News) on asset sales, he
, in a statement after the market close, said it had swapped letters of intent with Edison
about a possible Snam Rete Gas interest in the gas transportation activities of Edison Gas
Non-core assets, including pharmaceuticals company Antibioticos, engineering firm Tecnimont
, water company International Water Holding (IWH) and telecoms firm Edisontel, were also up for sale. Edison
on Monday kicked off a 592 million euros capital increase earmarked for the market -- the latest stage of the recapitalisation plan.
...Core shareholders in holding company Italenergia Bis, which controls Edison -- Electricite de France , industrial group Fiat (Milan:FIA. MI - News), steelmaker Carlo Tassara and banks Capitalia (Milan:CPTA. MI - News), Sanpaolo IMI (Milan:SPI. MI - News) and Intesa (Milan:BIN. MI - News) -- have agreed to guarantee the long-delayed capital increase.
sees new investors, 2 bln euros asset sales - Reuters
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