Enemalta's Turnaround efforts endorsed by S&P

Dr. Silvana Zammit | 24 Feb 2017

Standard & Poor have endorsed Enemalta plc’s endeavours in implementing a turnaround plan that shall provide for better-quality services and long-term financial sustainability for the company for the fifth time in four years. According to the rating agency, the company’s predictability has greatly improved and “the swing to profitability is now consolidated”.

This positive review was warmly welcomed by Enemalta’s employees as a confirmation of their achievement in turning a loss-making corporation into a profitable company with a bright future to look ahead to, and which can give its customers reliable and efficient electricity services at some of Europe’s lowest tariffs.

According to S&P, Enemalta has carried out “one of the main steps” in its turnaround project  by establishing a diversified electricity generation mix, which includes the new Delimara 4 gas-fired plant and the gas conversion of the Delimara 3 plant. The rating firm has also confirmed Enemalta’s commitment to keep on bettering the efficiency of Malta’s electricity distribution network through another €60 million investment in 2017 and 2018.    

Enemalta’s management team underwent a governance assessment and for the first time ever, it has been promoted from Fair to Satisfactory as over the past three years, the management managed to deliver “consistently against the targeted business repositioning and deleveraging.”

Chetcuti Cauchi- the legal representatives of Shanghai Electric Power Company; majority stakeholder in Enemalta

Having served as advisors for Shanghai Electric Power Company in their purchase of majority equity interest of Enemalta Corporation back in 2014, we, at Chetcuti Cauchi are proud to see the fruits of a good management  which will not only benefit the Maltese Economy, but which will also directly benefit the customer through a more efficient and reliable service.

Chetcuti Cauchi’s involvement in the deal has put the firm on the map for renewable energy solutions and it has truly highlighted the firm’s unparalleled expertise in the sector. During the negotiations, our Energy & Resources Sector team advised on competition law and the resulting implications, carried out the necessary due diligence, and represented Shanghai Electric in intensive negations on technical matters at the highest levels of Maltese Government. The firm’s know-how and expertise in the sector, coupled with the team’s impeccable attention to detail have led to a highly successful transaction which has helped Malta achieve outstanding results  which are being acknowledged even by foreign rating agencies.

 



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