Italian group Enel’s business units in Peru have released their first quarter results, which reveal how COVID-19 measures have impacted the local companies’ financial and operational metrics. Peru’s President Martín Vizcarra declared a state of emergency and mandatory quarantine on March 16.
According to BNamericas, Enel Distribución reported a 2% year-on-year dip in operating income to PEN800 million (US$236 million), as physical sales slid 4.6% to 2.05 TWh. The distributor attributed reduced demand principally to lower offtake by medium-voltage free and regulated clients during the second half of March as a result of reduced economic activity because of the coronavirus lockdown.
Enel Distribución’s bottom line fell 37% to PEN71 million due to the operating results and an increase in amortizations because of increased investment.
Operating income for Enel Generación, which was Peru’s second largest power producer in March, totaled PEN360 million in the first quarter of 2020, down 8.5% compared with January to March 2019. The generator said that government measures for the health crisis depressed demand for all client segments.
Energy sales to free and regulated customers fell 18.6% and 5.6%, respectively, to 1.08 TWh and 895 GWh. Lower operating costs and exchange rate gains helped Enel Generación Perú boost its net profit 19.4% to PEN143 million.
In terms of generation, this business unit’s thermo output (natural gas) slid 26% to 520 GWh, while hydro production rose 10.6% to 947 GWh after the 86.2-MW Callahuanca plant resumed operations at the end of March 2019.
Enel Generación Piura, which operates gas-fired capacity in northern Peru, also attributed results to the pandemic. This unit’s operating income fell 17% to PEN57.8 million and its sales to free and regulated clients dropped 21% and 5% to 30.7 GWh and 114 GWh, respectively.
Piura’s generation was down 4.5% to 126 GWh and the bottom line fell 59% to PEN9.3 million, the latter impacted by exchange rate losses.
Peru’s government published a supreme decree that authorizes the gradual renewal of economic activities through a four-phase plan starting this month. The first phase covers activities related to mining and industry (including hydrocarbons), construction, services and tourism, and commerce.