Energy News Monitoring

Enel Américas S.A. is Latin America’s largest privately owned energy company. The company is engaged in the generation, transmission and distribution of electricity businesses in Argentina, Brazil, Colombia, and Peru.  Since June 2009 the controlling shareholder has been the Italian company Enel, which owns 56.4%. The main businesses of the company depend heavily on hydrology, flooding, storms, ocean currents and other weather conditions. In 2019 Enel Américas had  an installed capacity of 11,267 MW and was supplying more than 24.6 million clients.

According to the Annual Report, Enel Américas´ EBITDA increased by 19%, compared to 2018, reaching US$ 3,994 million, explained mainly by a significant improvement in the results in Brazil. Also, because of an extraordinarily positive impact in Argentina as a result of the agreement signed between Edesur and the National State of Argentina. By the end of 2019 the Company employed 17,618 people through its subsidiaries companies in Latin America.

Revenue from Generation and Transmission Business of the company in 2019 amounted to $14,314 million, up 10.2% compared to $12,990 in 2018.

Operational income in 2019 was $2,769 million and represented an increase of 13.7% compared to the operational income of US$ 2,435 million in 2018.

In 2019, total net income reached $2,170 million and increased by 30%, compared to $1,667 million in 2018.

Segmentally, revenues and other operating income in Argentina increased by US$ 108 million, or 33.0% in 2019, explained primarily by revenues and other operating income from Costanera, which increased by US$ 51 million, or 31.4 % in 2019, compared to 2018. This increase is  explained mainly by an increase of US$ 94 million in revenues attributable to the translation of sales to the U.S. dollar of US$ 84 million and revenues from El Chocón increased by US$ 5 million in 2019, compared to 2018.

In Brazil, revenues and other operating income increased by US$ 76 million, or 9.0%, explained primarily by Physical energy sales from Cachoeira Dourada, which decreased by US$ 46 million, or 8.5 %, in 2019. This is explained mainly by a US$ 40 million decrease in revenues as a result of the 8% devaluation of the Brazilian real against the U.S. dollar. The revenue increase was also due to the operating revenues from Fortaleza, which increased by US$ 98 million, or 46.3%, mostly due to US$ 109 million in higher energy sales (1,979 GWh), mainly as a result of a higher demand in 2019, compared to 2018.

In Colombia, revenues and other operating income from Emgesa decreased by US$ 13 million, or 1%, in 2019. This decrease is explained mainly by a US$ 126 million decrease due to the currency exchange effects from an 11.1% devaluation of the Colombian peso against the U.S. dollar.

In Peru, revenues and other operating income from Enel Generation Peru decreased by US$ 3 million, or 0.6%, in 2019. This decrease is explained mainly by US$ 33 million in lower revenues for provisions recognized in 2018 related to the Central Térmica Ventanilla, Callahuanca, and Central Santa Rosa accidents.

Total operating income from the Distribution Business increased by 23.5% from US$ 1,251 in 2018 to US$ 1,545 million in 2019, mainly due to better results of Brazilian subsidiaries and the inclusion of Enel Distribution Sao Paulo. Operating income of the distribution business increased US$ 293 million, or 23.4%, in 2019, compared to 2018, mainly due to the regulatory agreement signed between Edesur and the Argentine National State, which settled the outstanding reciprocal claims arising in the transition period 2006-2016.

In 2019 net cash flows stemming from operating activities totalled US$ 2,528 million, an increase of US$ 683 million, or 37%, compared to 2018. This increase is explained mainly by an increase of US$ 1,963 million in cash collections from the sale of goods and services mainly related to Enel Brazil and Enel Distribution Sao Paulo.

In 2019, consolidated electricity sales were 72,553 GWh, an 11.1% increase compared to 2018. In 2019, electricity production was 41,760 GWh, a 4.8% increase compared to 2018. Total installed capacity in 2019 was 11,267 MW, a 0.1% increase compared to 2018. Total consolidated generation in 2019 represented 61.3% from hydroelectric sources, and 38.7% was from thermal sources.
 
Hydroelectric generation of the Company was 25,604 GWh, 23,690 GWh, and 22,618 GWh in 2019, 2018, and 2017, respectively. In 2019 hydroelectric generation increased by 8.1% when compared to 2018 due primarily to better hydrological conditions in Brazil, Colombia, and Peru, offset by lower generation in Argentina, due to adverse hydrological conditions.

Segmentally, hydroelectric generation in Argentina accounted for over 19.3% of total generation in Argentina in 2019, reaching 2,509 GWh, a decrease of 12.2% compared to 2,859 GWh in 2018. This was mainly due to lower hydrological levels in the Limay River in 2019, compared to 2018. Thermal generation in Argentina accounted for 80.7% of total generation in 2019, reaching 10,464 GWh, a decrease of 5.6% compared to 11,090 GWh in 2018. This was mainly due to a reduction in combined cycle generation.

Hydroelectric generation in Brazil increased by 29% from 3,219 GWh in 2018 to 4,164 GWh in 2018 due to favourable hydrological conditions.  Thermal generation in Brazil increased by 110% from 537 GWh in 2018 to 1,128 GWh in 2019.

In Colombia approximately 80% of the electricity generation capacity is hydroelectric. During 2019, hydroelectric generation represented 95.9% of total generation, and thermal generation represented the remaining 4.1%. In 2019 hydroelectric generation increased by 6.2% compared to 2018 and thermal generation increased by 117% compared to 2018 as a result of higher spot prices in 2019 compared to 2018.

In Peru hydroelectric generation represented 52.3% of the total production of Peruvian generation subsidiaries in 2019. In the case of Enel Generation Peru, hydrological conditions were favourable and were in accordance with their historical averages. On the other hand, thermal generation decreased by 8% compared to 2018, due to an increase in hydroelectric production.
 
2019 was another positive year for the company, and in 2020 it will seek to remain at the forefront, using the best technologies to create new opportunities that will help it to grow in electricity generation, distribution and transmission.