Beyond Your Borders
While some utilities such as GDF Suez have succeeded in Brazil , others such as E . ON , who looked to offset losses at home , have not been as successful
E . ON , who has recently expanded into Brazil and Turkey . This was preceded by an earlier move into Russia . While the expansion is certainly beneficial , analysts predict that it won ’ t be enough to offset E . ON ’ s declining profits in Germany .
Political and economic unrest in Turkey has also put some of its assets in jeopardy , as the cash flow from the country isn ’ t necessarily a guarantee anymore . Similar problems are being encountered in Russia .
“ As a result of regulatory changes , weak demand growth and currency impacts , their returns there have been lower than expected ,” Sofia Savvantidou of Citi said . “ It ’ s too early to judge whether it ’ s been a success .”
So , international expansion might not be the answer for every utility , though there are certainly some for who it has been exceedingly successful .
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