Enel Distribución Perú raises its debt by 25% to ensure customer support programs and service continuity

Lima, October 30^th, 2020. Today, Enel Distribución Perú S.A.A. published its financial and operating results for the third quarter of 2020.

"The context of COVID-19 continues to be challenging. The company's revenues and EBITDA remain lower than those registered the previous year. However, this has not made us back down in our decision to continue supporting our clients with financing programs and facilities for the payment of their bills. In this way, we ensure the continuity of the service that carries the energy they need to their homes and businesses, even though this means increasing the company's debt", expressed José Manuel Revuelta, Country Manager of Enel Perú.

MAIN FINANCIAL RESULTS

(Millions of Peruvian Soles)

• REVENUES: decreased mainly due to lower energy sales on account of the drop in electricity demand caused by the slowdown in activities in various economic sectors. This occurred in the framework of the COVID-19 pandemic, especially between March and August.
• EBITDA: decreased due to the reduction in income associated with lower economic activity in the company's concession area. Additionally, the company registered higher expenses in operation and maintenance activities, control and management of energy theft, and customer service initiatives in the context of COVID-19. This was partially offset by lower energy purchases related to lower energy sales.  
• NET INCOME: decreased due to a lower EBITDA, higher provisions in response to the increase in receivables, and higher amortizations associated with the implementation of major investment plans in recent years. These effects were partially offset by the decrease in income tax associated with a lower tax base. It should be noted that the receivables in commercial accounts amounted to 649.8 million PEN, which represents an increase of 74% compared to the same period of the previous year.
• TOTAL DEBT: increased by 389 million PEN, mainly due to the continuous offering of support programs for the payment of electricity bills, which has been the case since the start of the health emergency. Likewise, the increase in debt has made it possible to ensure the continuity and quality of this essential service throughout the pandemic, in addition to facilitating the financing of the annual investment plan, the company's operations, and the fulfillment of the payment chain to suppliers and workers.
• CAPEX: decreased by 54 million PEN compared to September 2019, due to the delay in the execution of works, as a consequence of the restrictive measures placed to contain the pandemic. It should be noted that, despite this, the electricity supply has operated normally since the emergency began, in line with our objective of ensuring the quality and continuity of service to our customers. Investment levels are expected to increase in the last quarter of the year in order to comply with the plan established for the year.

MAIN OPERATING RESULTS

• ENERGY DISTRIBUTION: decreased mainly due to lower energy consumption by free and regulated medium-voltage customers, given the slowdown in economic activity in the concession area associated with the health emergency.
• CUSTOMERS: increased by 0.8% compared to the previous period, mainly due to new residential connections.