EDF’s Proglio Says Dalkia’s Italy Business Shouldn’t Be Sold
Dalkia, an energy-services company owned by Electricite de France SA and Veolia Environnement SA (VIE), needs to revamp rather than sell its struggling Italian unit, said EDF Chief Executive Officer Henri Proglio.
“What is important is to turn it around, not to sell,” Proglio told reporters following a presentation of EDF’s first- half results in Paris today. He declined to comment on whether EDF and Veolia have considered selling the assets.
EDF, Europe’s biggest power generator, booked a 170 million-euro ($242 million) exceptional charge from its Dalkia International holding in the first half. Veolia said today it would write down 800 million euros and miss a 2011 profit target in part because of operations in Italy. The water utility, which was headed by Proglio before his move to EDF, said in March it would sell 4 billion euros of assets over three years.
Dalkia has contracts for heating, cooling, lighting and cleaning offices, hospitals and factories across 42 countries, according to its website. Its Milan-based Italian business, called Siram SpA, had 1.07 billion euros in sales last year and employs 4,318 people.
Difficulties at Siram stem in part from late payments from local governments, Proglio said. “They are trying to put things right, so they have changed management,” he said, without elaborating.
Siram has worked on heating systems at public buildings in Trieste, energy for a hospital in Florence and a power plant for Peroni Group, according to its website.
To contact the reporter on this story: Tara Patel in Paris at email@example.com