Spanish energy company Endesa is facing around $1.83bn (€1.66bn) in claims related to disputes over price reviews of liquefied natural gas (LNG) supply deals, reported Reuters.
While the cases had already been made public, the business revised the claim amounts in its first-half earnings report.
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According to the Reuters report, the earlier claims amount was $1.41bn.
In one price review case, which was initiated by Endesa, “the respondent, a liquefied natural gas production company, has initiated, filed a counter-claim requesting payment of approximately $1.27bn”, up from $1bn.
“The company [Endesa] considers this counterclaim to be unfounded and untimely, and its external legal advisors are of the opinion that the likelihood of the counterclaim being upheld is remote,” Endesa said.
The claim amount could change subject to market conditions until the arbitration is complete in the third quarter of 2023, it added.
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By GlobalDataIn the second case, an LNG producer initiated arbitration against Endesa in March 2023 requesting a payment of around $557m, up from the earlier reported claim amount of $411m.
“The company believes that this claim is not sufficiently substantiated,” Endesa said adding that the arbitration for the second case is expected to occur in the second half of 2024.
An Endesa representative declined to respond on the development and instead referred to the financial report’s comments.
Endesa, which is owned by Italian energy major Enel, reported a 20% surge in net ordinary income to €879m ($978.37m) in the first half of the year.
