Comision Federal de Electricidad issued the following announcement on July 2.
The Audited Financial Statements of the Federal Electricity Commission (CFE) for fiscal year 2019 reflect the strength of the company, but also the challenges and opportunities that it must face in the coming years. Total revenues at the end of 2019 were 556,152 million pesos (mp), which represents an increase of 1.6% compared to that registered in 2018.
The company's operating costs at the end of 2019 were 475,487 mp, a figure lower by 5.4% compared to 2018. Among these, the energy costs stand out, representing 56.9% of total expenses, with a decrease of 12.9% compared to that registered in 2018, derived from the substitution of fuel oil and coal for natural gas in power generation, the reduction in fuel prices observed in the period, and the greater availability of gas transportation infrastructure.
The foregoing generated an operating profit as of December 31, 2019 of 80,666 mp, 80% higher than in 2018. This generated a Gross Operating Margin and EBIDTA of 14.5% and 34.2%, respectively, levels higher than those registered in 2018.
Likewise, the net profit was 25,673 mp, 58.3% lower than in 2018. Among other aspects, this is mainly attributed to the effects of deferred taxes recorded during the 2019 fiscal year.
Regarding the statement of financial position, the total value of the company's assets in 2019 registered a growth of 7.4% over the previous year, reaching 2,106,900 mp. This result is explained by the increase in the items of cash and cash equivalents (13.8%), assets for right of use (36.8%) and plants, facilities and equipment (2.1%).
Likewise, the total liability of the CFE increased 14.7% as a result of the recognition of the liabilities for leases with the entry into force of the International Financial Reporting Standard 16 and due to the increase in employee benefits. It is worth mentioning that at the end of the 2019 fiscal year, the CFE maintained the same level of direct debt with respect to 2018 and refinancing operations were carried out under better conditions and terms for the company.
Equity decreased 6.3% to 643,278 mp at the end of 2019, this decrease is mainly due to the increase in labor liabilities and the revaluation of electricity generation plants. This level of equity is sufficient to cover short-term obligations more than four times and direct debt almost twice.
In this way, the Financial Statements at the end of 2019 indicate that the CFE maintains a payment capacity and solid liquidity indicators, which guarantee compliance with all the payment commitments and obligations that the company has in 2020 and in the coming years.
The aforementioned financial results are a reflection of the good operating performance of the Mexican electricity company during 2019, among which the following stand out:
Incorporation of 1.1 million new customers that receive electricity supply to reach the figure of 44.5 million at the end of 2019 with coverage of 98.83% of the country's population.
Reduction of technical and non-technical losses of electrical energy by modernizing transmission and distribution infrastructure and adopting best operating practices. At the end of 2019, the percentage of energy losses in Distribution was 10.97%, 0.24 percentage points less than that observed at the end of 2018.
The CFE continued to promote generation projects with more efficient technologies and with fewer environmental impacts, such as combined cycle and renewable technologies, as well as promoting the development of energy transport infrastructure. The generation capacity under CFE control increased in 2019 by 2,607 MW, which represents a growth of almost 5%.
Accelerating growth in gas commercialization, which is why in that year negotiations were held with four natural gas transport companies, of which better conditions were achieved for CFE, among which the following stand out: a) service rates transparent natural gas transportation that reflects real costs; b) level tariffs during the term of the contracts and, c) balanced agreements in acts of God and force majeure.
Creation of the Subsidiary Company "CFE Telecommunications and Internet for All", with the aim of expanding access to information and communication technologies, including broadband and internet, to areas of the country that have not been served by private companies of the sector, by taking advantage of the electric power transmission infrastructure that the CFE has.
However, it is considered that the fundamental factor to achieve these results was the commitment and determination of the 91,311 workers of the company who work to guarantee the quality, reliability, security and opportunity of the supply of electrical energy to the entire country through 189 power plants. Generation with an installed capacity of 57,872 MW; 110 thousand kilometers of transmission lines, and more than 853 thousand kilometers of medium and low voltage lines and networks. With this, CFE is confirmed as one of the leading companies in the sector in both Mexico and Latin America.
Original source can be found here.
Alerts Sign-up