EL5-Energo EL5-Energo formerly Enel Russia

History

2022

Appointment of Alibek Tnalin as CEO of EL5-Energo

In December 2022, by the decision of the Board of Directors of PJSC EL5-Energo, Alibek Tnalin was appointed to the post of CEO of the company. In this post, he replaced Zhanna Sedova.^[1]

Renaming to "EL5-Energo"

On December 6, 2022, PJSC Enel Russia was officially renamed PJSC EL5-Energo.

Putin allowed Lukoil and Gazprombank to buy Enel's stake in Enel Russia

At the end of September 2022, the president Russia Vladimir Putin signed an order to sell Enel's To LukoilGazprombank stake in Enel Russia to the -Fresia fund.

{{quote 'Allow PJSC Oil Company Lukoil to enter into a transaction to acquire 9 525 652 231 pieces of ordinary shares of PJSC Enel Russia owned by JSC ENEL S.p.A. (ENEL S.p.A.); AAA Capital Management JSC, acting as a trustee of the closed combined unit investment fund Gazprombank Freesia, a transaction on the acquisition of 10 434 826 240 pieces of ordinary shares of PJSC Enel Russia owned by ENEL S.p.A. (ENEL S.p.A.), - the document says, excerpts from which are quoted by Kommersant. }}

Vladimir Putin

According to the publication, we are talking about the value of the transaction of 137 million euros, which is 27% less than the price of a package of 56.43% (included in the perimeter of the transaction) on the stock exchange. The companies themselves do not disclose financial conditions.

Enel received energy assets in Russia during the division of the UES of Russia. Enel Russia has three gas power plants in its portfolio - Konakovskaya, Nevinnomysskaya and Sredneuralskaya. The company also launched the Azov wind farm and is building the Kola wind farm.

In early August 2022, it became known that because of the presidential decree, Enel was "stuck" in Russia. According to the document, until the end of 2022, transactions with shares in companies from the list of strategic enterprises and companies that produce and supply heat and electricity are prohibited. Thus, until Western investors can exit the Russian energy business without the special permission of the Russian leader. As a result, Vladimir Putin allowed Lukoil and Gazprombank Freesia to buy Enel's stake in Enel Russia with a special document^[2]

Losses in the amount of 527 million euros on the sale of Russian business

Italian energy group Enel estimated losses from the sale of its business in Russia at €527 million. The company announced this in mid-August 2022 as part of the publication of financial statements for the first half of 2022.

The value of Enel Russia's assets was adjusted to the level of the expected transaction price of €137 million with a loss of €527 million, the document says, an excerpt from which is quoted by TASS.

Enel lost 527 million euros on the sale of Russian business

At a price of €137 million, the Russian subsidiary Enel will be bought by Lukoil and Gazprombank. After the sale of assets is completed, the company expects additional costs.

At the same time, the estimated value of Enel Russia was about €493 million, the agency notes. Earlier, the company noted that the sale of Russian business should have a positive impact on the group's solid net debt of €550 million.

In addition, in August 2022, it became known that the board of directors of Enel Russia recommended approving the renaming to EL5-Energo. Together with the costs, the value of Enel Russia's assets will amount to 137 million euros.

Italian Enel was the main shareholder of Enel Russia with a share of 56.4%. According to Bloomberg Intelligence, the Russian business founded in 2004 brought Enel just over 1% of the company's total gross operating profit.

Enel Russia includes: gas power plants Konakovskaya GRES, Nevinnomysskaya GRES and Sredneuralskaya GRES, as well as a wind farm in the Rostov region and a wind farm under construction in the Murmansk region.

Enel announced its departure from Russia at the end of March 2022. Then the company noted that they were going to sell assets within a few months.^[3]

Enel sells its 56.43% stake in Enel Russia to Lukoil and the Gazprombank freesia fund

On June 16, 2022, it was announced that it was the Italian Enel selling its 56.43% stake in Enel Russia to Lukoil and the Gazprombank freesia fund.

Zhanna Sedova - New CEO

At the end of April 2022, it became known about the departure of Stefan Zvegintsov from the post of general director of the Russian representative office of the Italian energy company Enel. At the same time, the top manager will continue to oversee the Russian division as part of the management of the parent group. Read more here.

2019

In February 2019, it signed an agreement with the government of Tatarstan on the development of the charging infrastructure of the region, and in April 2019 with the government of the Chelyabinsk region in the same direction.

The first charging station Enel X in the MOESK-EV network will open in Mitino

PJSC Moscow United Electric Grid Company (part of the Rosseti Group of Companies) and Enel X Rus LLC/Enel X Rus LLC (a subsidiary of the global division of Enel X, part of the Enel Group) have reached an agreement in the near future to install a charging station for electric vehicles Enel X Pole 3G in the MOESK-EV network in the Mitino microdistrict of Moscow. This was announced in May 2019 by the Deputy Chief Engineer for Innovations and Project Activities of PJSC MOESK Genadiy Sidenko.

Enel X Pole 3G charging station for two connection ports, each with 22 kW AC power with Mode 3 charging mode (Type 2, 3 phase, 32 A connector). The Enel X Pole 3G charging station has a high-tech execution with a connection channel to the software platform and a mobile application of its own production Enel X. The charging time of an electric car up to 80% averages 1 hours. The operation and control of this charging station can be carried out remotely. The basic characteristics of the Enel X Pole 3G chargers include the ability to identify the user using an RFID card (customer card) or mobile phone.

2018: Popularization of electric vehicles in Russia

Enel X Rus LLC, a subsidiary of the Enel X global division, which is part of the Enel Group, has been implementing a policy of popularizing electric transport in Russia and developing its charging infrastructure since May 2018. Enel Group has experience in implementing comprehensive projects for the development of electric transport worldwide since 2010.

2017: Electric vehicle car sharing project in Moscow

Logoip in 2017

October 16, 2017 it is known about a joint project of the Russian Direct Investment Fund (RDIF) and Enel. They announced cooperation in the field of car sharing.

According to TASS, citing the press service of the RDIF, the agreement includes the development of a system for short-term rental of electric vehicles (car sharing) and the creation of accompanying infrastructure in the form of a network of charging stations in Russia.

RDIF and Enel will launch a car-sharing network of electric cars in the Russian Federation

A memorandum of understanding on cooperation in the field of electric vehicle transport was signed on October 16, 2017 at a meeting of the Advisory Council on Foreign Investment (FII) in the presence of Prime Minister Dmitry Medvedev.

This agreement will allow Muscovites to rent electric vehicles for just a few hours in the near future, "RDIF CEO Kirill Dmitriyev told reporters following the KSII meeting.

According to him, at the first stage of the project, it will be launched in pilot mode. Later, a large-scale launch of the initiative will take place.

The head of the RDIF did not disclose the details of the agreement, but cited data on the results of a similar program launched by the company in Italy.

Literally building 30 electric gas stations, the company the very next day saw that 51 thousand people used this service. Therefore, we will also have gas stations for electric cars so that Muscovites see the advantage of this type of transport and start using it; also the ability to rent an electric car for several hours, "he said.

According to the Moscow mayor's office, from the beginning of 2017 to October, 350 thousand users of Moscow car sharing made 2.4 million trips, the total car sharing fleet is about 3.5 thousand cars. Representatives of the BelkaCar service, referred to by Vedomosti, estimate the capacity of the car sharing market in Moscow and the Moscow region at 20 thousand cars.^[4]

2016: Assessment of the possibility of leaving the Russian market

Italian Enel is considering the possibility of selling Russian assets, Kommersant reports, citing sources^[5].

Italian energy companies Enel owns 56.43 percent of Enel Russia, another 26.43 percent - from PFR Partners Fund I Limited, 6.3 percent - from Prosperity Capital Management Alexander Branis (data for 2016).

According to one of the interlocutors of the publication, the company offers to buy condensation power plants (GRES) belonging to it to profile investors in the regions, including those whose assets are geographically close to the Enel Russia stations, these are the Center, the North Caucasus and the Urals.

So far, Enel Russia has not evaluated assets and conducts only marketing, requesting companies for potential interest and price expectations, the source emphasized.

Another interlocutor of the publication said that Enel Russia is discussing plans to sell Ural assets - Sredneuralskaya and Reftinskaya GRES, which account for more than half of its capacity - 5.45 GW out of 9.5 GW.

Company officials confirmed that they are considering the potential sale of Reftinskaya GRES, stressing that no decision has yet been made on this matter. Enel Russia also said that the company does not plan to sell all Russian assets.

As possible buyers, two sources of Kommersant call T Plus. Enel Russia offered T Plus to buy Sredneuralskaya GRES for a very long time, this is an older idea than leaving Russian assets, another Kommersant source in the industry notes.

2015

In 2015, the company received a net loss of 48.6 billion rubles, in revenue fell by 4.6 percent, to 71 billion rubles.

2014: Reftinskaya GRES as a source of profit

Until 2014, the main source of profit for Enel Russia was Reftinskaya GRES. The station uses coal mined in Kazakhstan, which in 2015 rose in price due to an increase in the tenge exchange rate against the ruble.

Notes