Duke Energy Corp (NYSE:DUK) disclosed that it was planning to put its International Energy unit up for sale either in full or in part. The company appears to have made preparations for the preliminary stage bidding process though there have been no binding or non-binding offers until now. The energy company is also not sure whether its announcement would ultimately lead to a transaction as it did not want to make any assurance of a sale.
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Duke Energy has power plants in South and Central America. The company indicated that it would be able to offer any updates on the sale process during a call on February 18 during its scheduled earnings conference call. Duke indicated that its global unit facilities included about 4,400 megawatt capacity power plants in Peru, Guatemala, El Salvador, Ecuador, Chile, Brazil, and Argentina.
The energy firm also said that two-thirds of the power facility portfolio was hydroelectric, and half of it was located in Brazil. Duke has not disclosed the potential sales price for its global energy unit.
Equity Investment
Duke also clarified that the sale will not include its 25% equity stake in a Saudi Arabian firm, National Methanol Company, which produces methanol and methyl tertiary butyl ether, a gasoline additive. The company clarified that it had to make the announcement following the Brazilian authorities’ requirement to issue a statement.
Meanwhile, On February 18, Duke Energy will report its earnings for the fourth quarter. Street analysts’ are expecting the company to deliver earnings of 90 cents a share and $6.29 billion revenue for the period. That would represent 4.7% growth in earnings and 13.2% for the top-line.