Terna sees capex 2.7 bln eur in 2007-2011; reiterates div rise guidance |
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Wed, 31 Jan 2007 11:57
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MILAN (AFX) - The electricity grid operator Terna SpA forecast capital expenditure at 2.7 bln eur in the period running from 2007 to 2011 and reiterated its guidance of an least 3 pct increase in its annual dividend.In a presentation of its 2007-2011 business plan, Terna said that investments will increase its regulated asset base (RAB) by an annual average of 6 pct to 7.7 bln eur in 2011 from 5.8 bln in 2006.The company added that it expects its cost base to be cut by about 60 mln eur in 2011.Terna estimates that demand for electricity in Italy will rise 2 pct a year in 2007-2011. However, peak demand , which it claims is the real indicator for the need of new grid investments, is expected to rise 3 pct a year during the period.Investments, dividend payments and further acquisitions of part of the Italy's high-voltage grid will increase the group's net debt to 3.9 bln eur from 2.3 bln eur during the period of the plan, boosting gearing to 44 pct from 31 pct.The company said that it will continue to pursue foreign growth opportunities in the electricity transmission sector, focusing on Eastern Europe and Brazil.Nevertheless, the group is ready to made investments with an 'adequate risk/return profile' and requiring a limited amount of equity from Terna.Terna, with Citadel Holdings Inc, is one of three bidders for a 25-year concession contract of the power generation and transmission company National Transmission Corp of the Philippines.philip.webster@thomson.compw/lamCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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