Eon, the world's largest private energy company, is embarking on a major restructuring course that will involve penetrating new markets and boosting the share of renewables in the company portfolio.
Eon aims to become a global player by growing in emerging markets outside of Europe, its Chief Executive Officer Johannes Teyssen said recently in Dusseldorf.
He said he wants one-quarter of group-wide sales to be generated outside of Europe by 2015 — up from around 5 percent this year.
At the same time, the utility wants to reduce its carbon dioxide footprint to remain competitive as Europe is gearing up to launch the continent-wide Emissions Trading Scheme that will put a price on greenhouse gas emissions.
"Eon is becoming more focused and at the same time more international," Teyssen, in his position since May, said in a statement.
Once active solely in Europe, Eon is eager to keep growing in the Russian power sector and North America, where Eon through its renewable energy daughter is building wind farms.
Teyssen said his company was eyeing two more markets without identifying which ones. Observers say they're Asia and Latin America, where Eon is expected to invest in renewable energy projects and enter arrangements with local utilities.
The International Energy Agency last week said Chinese energy consumption will triple over the next 15 years.
A new unit will be created to pursue Eon's internationalization strategy, Teyssen said. It will be led by Frank Mastiaux, currently the head of Eon's renewable energy division.
For Eon, growing abroad means becoming leaner at home.
Until 2014, Eon wants to sell around $22 billion in assets. "In Europe, we want to focus on what we do best and where we see the biggest chances for profitable growth," he said. "Outside Europe, we're going to achieve additional business growth by deploying our expertise in areas where we're a true outperformer. This approach will enable us to become an international energy specialist."
Eon has been one of the worst performers in the Dax, the German stock index, which otherwise has seen steady growth this year.
Diverting assets is supposed to keep up profits as governments in Europe are pursuing tighter regulation of the energy sector.
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