[Report] European Enel Utilities Key Players & Strategies Market Research, Trends, Analysis

CHAPTER 1 INTRODUCTION
- Utility competition is starting to transcend national borders, but a single EU market place remains distant
- Larger utilities need to find a suitable geographical arena in which to pursue their ambitions
- The emergence of pan-European suppliers is an ideal for now, the reality is the emergence of geographic competitive arenas
CHAPTER 2 DATAMONITORS EUROPEAN UTILITY SCORECARD
- E.ON leads the Datamonitor European Utility Ranking, Enel ranks ninth out of the 12 companies benchmarked
- Enels demand assets and few gas assets lowers its score on Datamonitors European Utility Scorecard, to 32* out of 100
- Enel is concentrated in one European competitive arena, that of the Wmed, though has acquired interests also in the CEE and EU CC countries
- Enel is active in 3 of the 5 competitive arenas focused on power demand, 2 for supply assets and in one arena for gas
- Enel is the sixth largest supplier of end user volumes for power and gas across 32 European markets, with 2.6%* market share
CHAPTER 3 POWER SUPPLY VOLUMES AND MARKET SHARES
- Enels power volumes in Italy have leveraged its market share across EU 32, its assets in Spain and Romania have driven up its SME and RES volumes
- Enel has the fourth largest market share, 4.5%* across the EU 32 markets
- Across the competitive arenas subject to the EU 2nd directive, Enels power volumes geographic spread is limited to the Wmed region
- Enel has no power volume sales across the Nordic region, a region dominated by Vattenfall, E.ON and Nordic regional suppliers
- Enel has no current power volume sales across the NEW region, this arena has the greatest concentration of European suppliers
- Enel currently has no power volume sales across the CEE region, where CEZ, E.ON and RWE are the leading suppliers
- Enels power volume across the Wmed region totals 162TWh, second behind EDF, which has over 350TWh across the region
- Enels end user volumes, when broken down by RES and I&C, remains dominated by its native Italian market
- Enel is active in markets that have a low competitive market score, as assessed by Datamonitors MCI rating
- Enels power supply revenues total €19,441m, with 48% of this contribution made from supplying SME customers
- Enel derives the same proportion of revenue from each national market as the proportion of power supplied to each national market
CHAPTER 4 GAS SUPPLY VOLUMES AND MARKET SHARES
- Enel has not extended its gas presence other than in its home market, where the market is expected to increase in competitiveness
- Enel has a 0.8%* market share across the EU 32 markets for end user gas supply volumes
- Enels gas volume geographic spread matches that of its power spread, thus only active in the Wmed competitive arena
- Enel has no gas volumes sales across the Nordic region, a market that is still immature, with only E.ON and oil majors active
- Enel has no gas volumes sales across the NEW region, where the highest concentration of suppliers are found, led by E.ON
- Enel has no gas volumes sales across the CEE region, which is dominated by Russia and therefore Gazprom
- Enels gas supply presence in the Wmed region totals 57TWh, an arena still dominated by incumbents i.e. GDF, Eni and Gas Natural
- Enel is only active in its home market of Italy for gas supply, where it RES to I&C split is 54% to 46%
- Enels gas assets of any worth are in its home market, the Italian market has a mid ranking from Datamonitors MCI Index
- Enels gas supply revenues total €1,813m, sourcing all its revenues from Italy, with RES gas sales contributing 61% of revenues
CHAPTER 5 GENERATION CAPACITY AND MARKET SHARE
- Enel being the second largest player with power supply assets has leveraged its Wmed and built a wider fuel mix spread
- Enel ranks as the second largest European generator across Europe, with 50GW of capacity, ahead of E.ON but 75GW below that of EDF
- Enels geographic power plant spread is concentrated in the Wmed competitive arena, with additional capacity in CEE and EU CC arenas
- Enel has no power plant assets across the Nordic region, a region dominated by Vattenfall, E.ON, Fortum and Statkraft
- Enel has no power plant assets across NEW region, a region with the highest concentration of players and the most divergent fuel mix
- Enel has bought a 66% stake in Slovakias second largest producer, SlovenskEelektrárne, giving it a presence in the CEE region
- Enels plants in Italy drives its capacity in the Wmed market, as is the case with the other major incumbent, with EDFs plants in France
- Enel has a 5.0% and a 6.9% market share of total and renewables generation capacity across the EU 32 markets respectively
- Enels fuel mix is weighted towards thermal fuels, evident from its deviation from the average EU 32 fuel mix
- Italy accounts for 85% of Enels capacity by markets, besides its high market penetration there, it also has high market share in Slovakia
- Enels generation output totals 257TWh, driven by a thermal fuel mix, across the Wmed arena
CHAPTER 6 STRUCTURAL HEDGE - POWER
- Datamonitor uses generation and supply market shares to determine if companies are generally long or short in power
- Enel is quite long in its NTR*, by 113.8TWh, as is the trend with most other European players, as they are generally long by over 30TWh
- Reviewing the NTR as a percentage, Enels additional 113.8TWh makes the company long by 80%
- Enel NTR* is structurally long in Wmed, it is particularly long in Italy, 89.7TWh and Slovakia 19.3TWh
- Currently energy companies with higher market share are structurally long and profitable
CHAPTER 7 STRUCTURAL HEDGE - GAS
- European utilities gas equity and gas supply market shares determine if these companies are generally long or short in gas
- Enel is short in its NTR* gas position, at 37.9TWh, where the trend for the leading energy companies remains to be significantly short
- A handful of energy companies outside the oil and gas majors have equity gas, from Centrica, GDF, RWE and E.ON, however Enel has none
CHAPTER 8 BASE FINANCIALS OVERVIEW
- Enel is delivering on earnings again, with a higher PE for the sector, with average gearing and reasonable cash flow
- Enels revenues in 2004 exceeded €37bn, only behind E.ON, EDF and RWE, with a net income of €2.7bn
- Over the last five years Enels revenues have grown consistently at 9% CAGR, earnings dipped in 2002, but are rising again, 5% CAGR
- Enels PE ratio is at the top end for the sector, where the company has begun to drive up earnings and introduce promised cost savings
- Enels gearing is 1.0x earnings, the lowest among the heavily weighted power producers
- Enels free cash flow amounts to €1.9bn, a mid placed ranking among its peers, but €1.5bn behind that of Endesa, EDF, E.ON and GDF
CHAPTER 9 APPENDIX
- Understanding Datamonitors European Utility Scorecard rating, focusing on competitive sectors of generation, equity gas and retail volumes
- Scoring methodology
- Scorecard rating component breakdowns and scoring metrics and measures
- Data methodology
- The MCI Index shows how attractive a particular market is to new entrants in terms of the competitive environment
- The MCI Index is calculated by deriving a weighted average of scores over 9 key metrics
- Glossary of terms
- Future readings
- SPP writing team
- How to contact experts in your industry
- List of Tables
  - Table 1: Datamonitors European Utility Scores and ranking for the 12 benchmarked companies
  - Table 2: Enel Competitive Arenas matrix, 2005
  - Table 3: Scoring rating matrix for Datamonitors European Utility Scorecard
- List of Figures
  - Figure 1: 32 European markets divided into 5 regional competitive arenas
  - Figure 2: Enels Datamonitor European Utility Scorecard, 2005
  - Figure 3: Companies matrix by value chain focus and competitive arena, 2005
  - Figure 4: Top twelve power and gas supply volume market shares across 32 European markets, 2005
  - Figure 5: Leading players power supply volumes (GWh) market share across EU 32 markets, 2005
  - Figure 6: Weighting between I&C and residential power volumes for the key players across EU 32 markets, 2005
  - Figure 7: Power volumes supplied across the EU 32 markets by sector and competitive arena, 2005
  - Figure 8: Power volumes supplied in the Nordic competitive arena by company, 2005
  - Figure 9: Power volumes supplied in the NEW competitive arena by company, 2005
  - Figure 10: Power volumes supplied in the CEE competitive arena by company, 2005
  - Figure 11: Power volumes supplied in the Wmed competitive arena by company, 2005
  - Figure 12: Enels power supply volumes (GWh) RES country breakdown, 2005
  - Figure 13: Enels power supply volumes (GWh) I&C country breakdown, 2005
  - Figure 14: Scores and geographical distribution of 13 power markets assessed by Datamonitors MCI Index rating, 2005
  - Figure 15: Map representing Enels size and the geographical distribution of its power market share across EU 32 markets, 2005
  - Figure 16: Enels power supply volumes revenue breakdown, by sector, 2005
  - Figure 17: Enels power supply volumes revenue breakdown, by competitive arena, 2005
  - Figure 18: Proportion of revenues vs. end user power volume sales in markets where Enel has a >5% volume market share, 2005
  - Figure 19: Leading players gas supply volumes (GWh) market share across EU 32 markets, 2005
  - Figure 20: Weighting between I&C and residential gas volumes for the key players across EU 32 markets, 2005
  - Figure 21: Gas volumes supplied across the EU 32 markets by sector and competitive arena, 2005
  - Figure 22: Gas volumes supplied in the Nordic competitive arena by company, 2005
  - Figure 23: Gas volumes supplied in the NEW competitive arena by company, 2005
  - Figure 24: Gas volumes supplied in the CEE competitive arena by company, 2005
  - Figure 25: Gas volumes supplied in the Wmed competitive arena by company, 2005
  - Figure 26: Enels gas supply volumes (GWh) I&C vs RES breakdown, 2005
  - Figure 27: Scores and geographical distribution of 13 gas markets assessed by Datamonitors MCI Index rating, 2005
  - Figure 28: Map representing Enels size and the geographical distribution of its gas market share across EU 32 markets, 2005
  - Figure 29: Enels gas supply volumes revenue breakdown, by sector, 2005
  - Figure 30: Enels gas supply volumes revenue breakdown, by competitive arena, 2005
  - Figure 31: Generation capacity (MW) for 12 leading European energy companies across 32 European markets, broken down by fuel type, 2005
  - Figure 32: Generation capacity (MW) across the EU 32 markets by sector and competitive arena, 2005
  - Figure 33: Generation capacity (MW) across the Nordic competitive arena by company, 2005
  - Figure 34: Generation capacity (MW) across the NEW competitive arena by company, 2005
  - Figure 35: Generation capacity (MW) across the CEE competitive arena by company, 2005
  - Figure 36: Generation capacity (MW) across the Wmed competitive arena by company, 2005
  - Figure 37: Enels generation capacity (MW) market share across 32 European markets, 2005
  - Figure 38: Enels renewable capacity (MW) market share across 32 European markets, 2005
  - Figure 39: Enels generation fuel mix across its European asset base, 2005
  - Figure 40: Enels generation fuel mix across its European asset base against EU 32 market proportions, 2005
  - Figure 41: Enel owned generation capacity (MW) breakdown by country, 2005
  - Figure 42: Enel generation capacity (MW) market share in each European country, 2005
  - Figure 43: Enels generation output by fuel type, 2005
  - Figure 44: Enels generation output breakdown, by competitive arena, 2005
  - Figure 45: Estimated absolute Net Trade Requirements (NTR)* for power, for the benchmarked 12 players, 2005
  - Figure 46: Estimated percentage Net Trade Requirements (NTR)* for power, for the benchmarked 12 players, 2005
  - Figure 47: Enels Power NTR position across the European markets it is active in
  - Figure 48: Operating income vs. NTR position for 12 benchmarked players, 2004/2005
  - Figure 49: Estimated absolute Net Trade Requirements (NTR)* for gas, for the 12 benchmarked players, 2005
  - Figure 50: Estimated percentage Net Trade Requirements (NTR)* for gas, for the 12 benchmarked players, 2005
  - Figure 51: Revenue and net income for 12 energy companies benchmarked, 2004
  - Figure 52: Enels revenue and net income 5 year summary, 2000 - 2004
  - Figure 53: PE ratio for listed companies, for the 12 companies benchmarked, 2004*
  - Figure 54: Debt/Equity ratio for 12 benchmarked companies, 2004
  - Figure 55: Free Cash Flow for the 12 benchmarked companies, 2004
  - Figure 56: Understanding Datamonitors European Utility Scorecard
  - Figure 57: Datamonitors MCI Index scale for market assessment
  - Figure 58: The MCI Index is calculated by deriving a weighted average of scores over 9 key metrics

European Utilities Key Players and Strategies - Enel

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