* Greece is priority for foreign expansion
* Says debt totally under control
* EDF, majors among those interested in 25 pct of Abu Qir
By Stephen Jewkes and Giancarlo Navach
MILAN, June 9 (Reuters) - Italian utility Edison SpA will meet its full-year earnings target despite persistently weak demand for power, but it could trim planned capital expenditure, said Chief Executive Umberto Quadrino.
In an interview with Reuters, Quadrino said it aims to expand its business interests in Greece and hopes to find a buyer for a 25 percent stake in its Abu Qir gas field concession in Egypt by early next year.
"We confirm we will have the same EBITDA (earnings before interest, tax, depreciation and amortisation) as in 2008 on a like-for-like basis and excluding one-offs," Quadrino said.
In April Edison, Italy's second-biggest power and gas operator, reiterated expectations for EBITDA around 1.45 billion euros, in line with the previous year, though some analysts have expressed doubts about the target in light of poor demand.
"Power demand is still depressed and we don't expect the first signs of true recovery until the end of 2009," Quadrino said.
Quadrino said the fall in demand, also impacted by new capacity coming on stream, had prompted a fall in gas-fired generated output, which was partly offset by a strong rise in cheap hydroelectric production.
"We also presold 90 percent of 2009 production last year to final clients and wholesalers with only a very small exposure to the spot market," he said, noting that, with the crisis, spot power prices had fallen.
Quadrino said that the group's new business plan will be presented when market conditions are steadier, probably in autumn. Some non-core capital expenditure would be postponed.
"We're looking very carefully at our capex programme to make sure it's compatible with our credit rating. We have a lot of flexibility," he said. He added it was likely annual capex would be around 700-900 million euros for 2010-2011.
"Our debt is totally under control and we have one of the best debt-equity ratios of around 0.55 even after this year's Abu Qir (gas) field acquisition," he said.
Edison's capex in 2009 is exceptional since it includes 1 billion euros spent on the Abu Qir concession in Egypt. Quadrino said the timeframe for the possible sale of a 25 percent stake in the field was "from now to early next year".
"EDF is still interested as too are other investors including some of the majors," Quadrino said, adding the group is hopeful of making new discoveries at the field.
GREEK INTEREST
Quadrino said Edison's priority as regards foreign interest was Greece, where the company is already the second-biggest power operator through its joint venture with Hellenic Petroleum .
"We're obviously interested in a stake in (Greece's natural gas monopoly) DEPA since we have gas-fired power plants to fuel, have plans to build a gas pipeline from Greece to Italy."
Hellenic Petroleum is already a partner of DEPA.
The Greek government, which owns 65 percent of DEPA, in March gave up on plans to float the company and said it would instead focus on finding a strategic investor.
"The government has announced the sale of 33 percent and while we are interested, we are still waiting for the bid to be organised," he said.
Quadrino said Edison is also eying renewable energy operations Turkey, Romania, Serbia and Bulgaria.
He said opportunities to buy gas distribution assets in Italy could develop towards the end of 2010 or early 2011 when, under new rules, many gas concessions should expire.
But "we are not interested in buying E.ON's gas grid in Italy."
Asked about corporate governance at Edison, jointly controlled by France's EDF and Italian utility A2A, Quadrino said it was working well.
"There are no major contrasts and the two shareholders have always had very similar points of view."
A2A has spoken of the need to review governance at Edison.
(Reporting by Stephen Jewkes and Giancarlo Navach; editing by John Stonestreet)