Enel Distribución Perú increased investments by 4.9% in 1H 2018

Lima, July 26th, 2018 - Today, the Board of Directors of Enel Distribución Perú S.A.A., chaired by José Manuel Revuelta, approved the financial and operating results of the company for the first half of 2018.

The results posted in the first half of 2018 underscore the importance of continued investments in maintaining and upgrading our electricity distribution networks, as this ongoing effort improves the service we can deliver to our customers, who are our most valuable assets. At the same time, the result of our investment strategy helps us tackle current challenging market conditions, said José Manuel Revuelta, Enel’s Country Manager in Peru.

MAIN FINANCIAL RESULTS

(Expressed in millions of Soles)

 

 

1H 2018

1H 2017

    Variation

REVENUES

1,498

1,459

   +2.6%

EBITDA

   358

    367

    -2.7%

NET INCOME

   169

    172  

    -1.6%

NET DEBT

1,354

1,410

    -4.0%

CAPEX

   178

   170

   +4.9%

 

  • REVENUES: increased vs 1H 2017, driven by the rise in average energy sale prices (+5.01%) resulting from inflation on the wholesale market, to which energy sale prices are partly indexed. This increase more than offset the effects of the 0.7% drop in sale volumes resulting from lower energy consumption driven by the country’s economic slowdown of early 2018.

 

  • EBITDA: decreased compared to 1H 2017, mainly due to increased expenses for low-voltage network maintenance aimed at ensuring service quality and continuity, which remain among the best operating standards in the sector.

 

  • NET INCOME: decreased compared to 1H 2017, reflecting the decrease in EBITDA, partially offset by 18.4% increase in financial result[1], which was mainly due to the reversal of a legal contingency for 10 million PEN.
 
 
  • NET DEBT: decreased by 4.0% resulting from better management of the company’s working capital.

 

  • CAPEX: increased by 8 million PEN, and was mainly focused on meeting customer demand by expanding and reinforcing electricity distribution networks, with the aim to ensure service quality and safety.

 

MAIN OPERATING RESULTS

 

 

1H 2018

    1H 2017

    Variation

ENERGY DISTRIBUTION (GWh)

4,040

     4,068

    -0.7%

CUSTOMERS (THOUSANDS)

1,409

     1,385

   +1.7%

 

 

  • ENERGY DISTRIBUTION: decreased by 0.7% due to lower energy consumption by the company’s customers resulting from the slowdown of the Peruvian economy during the first months of 2018.

 

  • CUSTOMERS: increased mainly due to new residential connections (low voltage).

 

[1] Financial result = EBIT minus earnings before taxes.

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