What to watch for from the chartered energy management market
The chartered power company energy management company is looking to cut its workforce and boost earnings to $20bn next year from $18bn in 2019, according to a report by Bloomberg New Energy Finance.
In addition to a massive cut in staff, the company also plans to increase earnings to around $20 per share in 2019 from $14.25 a share in 2018.
The company has also said it will be able to raise $4bn to $5bn in its capital raising, which is on top of $4.6bn already committed to the company.
“This is the beginning of a long journey and we will be the first company to reach our $20 billion target,” CEO Paul Aksa said in a statement.
He said the company will aim to double its staff over the next four years and is aiming to become a major player in the sector.
The company, which also owns and operates the Dubai Electricity Authority, was the second largest shareholder in Energen, with $4 billion of its shares.
But the company’s capital raising was delayed after Energin said the board would not approve the company raising more than $500m.
Energy management is a key component of Energeren’s business, and has a $1.5bn annual turnover.
Last week, Energens chief executive, Richard Ollman, said the market was on the cusp of a big correction, but that he expected the market to recover before 2020.
Energen is looking at investing more in renewable energy sources to offset rising electricity costs.
Energy management was one of the most lucrative sectors in the energy market last year, but it is likely to see a decline this year.
For the full year, Enegens stock is up 3.3% at $2.27 per share.