22 Oct 2009 19:39

Corrected - Enel OGK-5 expects positive cash flow from 2011

(To indicate venue for Sutera's remarks in first paragraph)

MOSCOW. Oct 22 (Interfax) - The Enel OGK-5 generating company expects to see positive cash flow from 2011, its chief financial officer, Luca Sutera, told a conference in Moscow.

"We should achieve positive cash flow from 2011, as soon as we've launched new steam-gas turbines," Sutera said.

That will allow OGK-5 to begin recouping investment on new capacity.

The OGK-5 investment program running to 2012 and totaling 34.5 billion rubles provides for adding two steam gas turbines with 820 megawatts of total capacity at the Sredneuralskaya and Nevinnomysskaya GRES. It also includes plans to build a 600-megawatt coal-fired block at the Reftinskaya GRES.

In addition the company will install dry slag removal equipment at Reftinskaya GRES.

Investment in 2009-2013 will total 1.2 billion euro.

Enel OGK-5, registered in Yekaterinburg in October 27, 2004, includes the Konakovskaya, Nevinnomysskaya, Sredneuralskaya and Reftinskaya district electricity stations (GRES) with installed capacity of 8,700 megawatts.

Enel owns 55.86% of shares and the European Bank for Reconstruction and Development (EBRD) has a minority stake. The bank purchased 1.1% of shares during the IPO in November 2006 and later purchased 4.1% of shares from Enel for 175 million euro.