Endesa CEO confident group can recoup arbitration hit in some years

The chief executive of Spanish power group Endesa ELE is confident the company will recover the bulk of a $570 million negative impact from an arbitration in the next two and a half years.

The Spanish firm said on Monday that it would have to pay $570 million to an undisclosed LNG producer following a ruling by the International Court of Arbitration of the International Chamber of Commerce in a dispute over a retroactive price adjustment.

"We are still calculating the impact but I believe a big part of it - something around $500 million - could be recouped with the new price mechanism on the same contract in two years and half," Endesa's Jose Bogas said, speaking on the sidelines of an event of its parent company Enel ENEL.

He added that Endesa counterpart in the arbitration was one among Qatar, Nigeria and Algeria's Sonatrach, but did not want to mention it.