Edison CEO sees H1 result in line with expectations UPDATE

Edison CEO sees H1 result in line with expectations UPDATE

	Published : Tue, 26 Jun 2007 12:52 By : Agencies Print this Story

(Updating with Quadrino comments on production, gas supplies, liberalisation)

MILAN (Thomson Financial) - Edison SpA chief executive Umberto Quadrino said he expects first-half results to be in line with expectations on 'positive' energy demand.

Edison expects to post a full-year operating result that is not below the one posted last year.

Quadrino said Italian power demand is currently high because of the hot weather.

'Peak demand could reach new highs,' he said, but pointed out the drought situation in the country had improved compared to a few months ago.

Some analysts have previously expressed concern Italy could be at risk of a power blackout this summer due to low rainfall and high temperatures. Many of Italy's power plants are cooled by water.

Asked about full liberalisation of the energy markets on July 1, Quadrino said Edison will be ready with its own combined power-and-gas offer for retail users at the beginning of next year.

The Italian government recently introduced legislation that provides for a transitional phase of around six months to give the authorities and the energy regulator time to draw up detailed rules.

Eni SpA's announcement on Saturday it will carry out a feasibility study with Gazprom to build a 30 bln cubic metre per year gas pipeline from Russia to Europe will not create a problem of gas oversupply, Quadrino said.

'The gas supplies in the North Sea are gradually being depleted and, with Europe's gas consumption rising, I see no oversupply problem in the long run,' he said.

Edison, with other partners, is involved in building two gas pipelines -- the 8 bln cubic metre IGI gas pipeline between Italy and Greece, which will be completed by 2011; and the 9-10 bln cubic metre GALSI pipeline from Algeria to Sardinia.

The Edison CEO confirmed the 8 bln cubic metre liquefied natural gas terminal the company is developing with other partners at Rovigo will be ready by the end of next year.

Quadrino was speaking at an extraordinary Edison shareholders meeting that voted in favour of increasing the number of board members to 13 by allowing minority shareholders to nominate a board member.

stephen.jewkes@thomson.com

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