MADRID, 17 Oct. (EUROPA PRESS) –
Endesa will hold an extraordinary general meeting of shareholders on November 17 to give the go-ahead for the formalization of related operations for the supply of natural gas and finances with Enel, its parent company, for an amount of more than 5,000 million euros.
The meeting, which will take place in a single call that day, will be held at its headquarters in Madrid. Despite being open to the physical presence of its shareholders, the energy company recommends, in order to promote the sustainability of the event, remote participation, voting or delegating representation by means of remote communication or attending telematically, according to the agenda sent by the company to the National Securities Market Commission (CNMV).
Thus, the group led by José Bogas will submit to its natural gas supply shareholders the renewal of the joint management agreement for methane tankers and the liquefied natural gas (LNG) supply contracts of United States origin -by 2023 and its extension for 2022 for an amount of 210 million euros.
The purchase and sale of a maximum volume of two terawatt hours (TWh) of LNG to Enel Global Trading for the year 2023, for an amount of around 290 million euros, as well as the acquisition of the cargo of two ships is also brought to the meeting. LNG tankers, which is equivalent to around another two TWh of gas, to Enel Generación Chile, for the year 2024, for an approximate amount of 121 million euros.
To this battery of measures designed to guarantee the group’s supply of natural gas for the coming years, financial operations by Enel and Enel International Finance are added, for a total amount of 5,000 million euros.
Specifically, these operations consist of the formalization of a twelve-month line of credit, granted by Enel Finance International, for a maximum amount of up to 3,000 million euros.
Likewise, it includes the formalization of the issuance of an Enel guarantee on Endesa Generación obligations (counter-guaranteed by Endesa) for an amount of up to 2,000 million euros, with a duration until June 30, 2023.
In its agenda for the meeting, Endesa points out that the purpose of both financial instruments is the fulfillment of the company’s obligations with third parties derived from the operational rules of operation of the organized national or international gas and electricity markets in which participates and other obligations directly or indirectly related.
According to the company in its report on the proposal, within its financial strategy it is common practice for part of the financing to be carried out by entering into operations with its parent company. In this way, Endesa has contracted financial operations with the Enel Group for a total of 7,050 million euros, justified by the high volume and the immediacy of its availability. Operations with Enel “are normally limited to those that have a structural nature in the form of loans or liquidity.”
In this way, given the current situation of international uncertainty, with special incidence in the energy markets, together with an extreme volatility in the gas market (TTF), the group has determined the existence of a risk, that extraordinary increases occur and unpredictability of the TTF gas index, which in turn would determine the need for it to provide additional amounts in the future, potentially very high, as guarantees.
For this reason, in order to establish a preventive framework in the face of this uncertain and possible situation, it is considered preferable to go to the majority shareholder “for reasons of speed, cost and efficiency”.
These two operations are supported by the Ernst Report
Likewise, the shareholders will also vote on the renewal for five years of the provision of the wind turbine vibration analysis service by Enel Green Power Spain to Enel Green Power, valued at five million euros.
