FORM
6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report
of Foreign Issuer
Pursuant
to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For
the month of February, 2022
Commission
File Number: 001-12440
Enel
Américas S.A.
(Translation of Registrant’s Name into English)
Santa
Rosa 76
Santiago, Chile
(Address of principal executive office)
Indicate
by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F:
Form 20-F [X]Form 40-F []
Indicate
by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes [ ]No [X]
Indicate
by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes [ ]No [X]
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
| |
PRESS
RELEASE
CONSOLIDATED FINANCIAL STATEMENTS OF ENEL AMÉRICAS
GROUP
AS OF DECEMBER 31, 2021
(Numbers expressed in millions of US dollars)
§ | Cumulative revenues as of December 2021 showed a 31.7% increase compared to 2020, reaching US$16,192
million, mainly explained by higher revenues in Brazil and, to a lesser extent, in Colombia and Peru, and also by the consolidation of
EGP Americas (EGPA) as of April 1, 2021. This was partially offset by lower revenues in Argentina. |
In quarterly terms,
revenues in the 4th quarter increased by 20.6% to US$4,514 million, explained by higher revenues in the 4 countries and the
contribution of EGPA.
§ | EBITDA
in 2021 increased by 26.1% as compared to 2020, reaching US$4,102 million. This increase
includes US$247 million (US$99 million in 2020) linked to a change in the presentation of
certain revenues related to the Distribution business in Brazil1, which previously
formed part of the financial result. Excluding this effect, EBITDA would have increased by
22.3%. This is explained by EGPA's contribution of US$374 million and better results in Brazil,
Colombia, and Peru, partially offset by lower EBITDA in Argentina and a negative impact of
US$185 million due to the exchange rate. |
In quarterly terms,
EBITDA for the 4th quarter of 2021 increased by 14.7% compared to the same period of the previous year reaching US$1,179 million,
explained by the aforementioned EGPA contribution and higher EBITDA in Brazil, Colombia, and Peru, partially offset by lower EBITDA in
Argentina and a negative impact of US$59 million due to exchange rate.
Without EGPA's contribution,
EBITDA would have increased by 14.6% in cumulative terms and by 3.8% in quarterly terms.
Country |
EBITDA (million US$) |
Cumulative |
Quarterly |
FY 2021 |
FY 2020 |
% |
Q4 2021 |
Q4 2020 |
% |
|
|
|
|
|
|
|
Argentina |
153 |
186 |
(17.6%) |
40 |
48 |
(16.6%) |
Brazil |
1,948 |
1,438 |
35.5% |
607 |
580 |
4.8% |
Colombia |
1,352 |
1,180 |
14.6% |
352 |
289 |
22.0% |
Peru |
522 |
476 |
9.6% |
131 |
118 |
10.8% |
Central America |
158 |
- |
- |
54 |
- |
- |
Enel Américas (*) |
4,102 |
3,253 |
26.1% |
1,179 |
1,027 |
14.7% |
(*) Includes Holding and Adjustments |
|
|
|
|
|
|
§ | Operating
Income (EBIT) increased by 23.8% to US$ 2,664 million in cumulative terms as of December
explained by higher EBITDA, partially offset by higher depreciation and amortization, and
greater impairment loss. In the 4th quarter, EBIT decreased by 5.3% to US$701
million, which is mainly explained by higher recognition of the accounting asset impairment
in Argentina and Brazil. |
1 See section II “Change in Accounting
Policy” of this Press Release.
1 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
§ | In cumulative terms
Net Income attributable to the parent company reached US$741 million as of December, 10.2%
less than in the same period of 2020. In quarterly terms, net income attributable to the
parent company reached US$119 million, a 64.9% decrease as compared to the 4th quarter of
2020. This is mainly explained by higher asset impairment losses in Argentina, Brazil and
Peru, higher financial expenses in Brazil and Argentina, and higher taxes due to better performance
of operations and tax rate changes in Argentina and Colombia. |
§ | Financial debt reached US$5,870 million, which
represents 32.6% more than at the end of 2020, mainly explained by higher net debt in Enel
Brasil, in the distribution companies in Brazil, in Enel Generación Perú and
in Codensa which was partially offset by a decrease in Enel Américas Holding net debt. |
§ | CAPEX in 2021 reached US$2,971 million, which
includes US$1,033 million from EGPA. Without considering the latter, CAPEX increased by 36.1%
compared to the same period of the previous year, mainly explained by increases in Enel Goiás
and Enel Sao Paulo. |
In quarterly terms, CAPEX reached US$1,163
million including EGPA and US$639 million excluding it, representing increases of 163% and 44% respectively.
2 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
INFORMATION RELEVANT TO
THE ANALYSIS OF THESE FINANCIAL STATEMENTS
| I. | Perimeter Change, incorporation of EGP Américas |
On September 21, 2020, the Board of Directors
of Enel Américas unanimously resolved to initiate a merger process aimed at the acquisition by Enel Américas of EGP Américas
SpA ("EGP Américas") through a merger with and into Enel Américas (hereinafter the "Merger"). Immediately
prior to the Merger, EGP Américas, a newly formed company, would keep Enel Green Power S.p.A.'s renewable energy generation business
in Central and South America, excluding Chile.
The Merger, which entered into force on April 1, 2021,
is in line with the Group's strategy and development plans, considering the high priority in the promotion of renewable energies carried
out in the region, which makes it possible to accelerate the positioning of Enel Américas within the energy transition scenario
and turn it into the leading company in Central and South America in energy generation and distribution. As a result of the Merger, Enel
Américas has strengthened its renewable energy generation business, as well as diversified geographically, through the incorporation
of assets in Costa Rica, Guatemala, and Panama, in addition to acquiring new assets in South American countries where it was already present,
increasing its installed capacity in the region by 5 GW of operating and construction capacity, in addition to a pipeline that will be
evaluated during the operation.
In an extraordinary meeting of shareholders
held on December 18, 2020, the shareholders of Enel Américas approved the Merger, subject to the compliance with certain conditions
precedent.
Finally, the Merger was completed on April
1, 2021, incorporating the following main companies from that date on:
| · | Enel Green Power Brasil Participacoes Ltda. |
| · | Enel Green Power Costa Rica S.A. |
| · | Enel Green Power Colombia S.A.S ESP |
| · | Enel Green Power Guatemala S.A. |
| · | Enel Green Power Panamá S.R.L. |
| · | Enel Green Power Perú S.A.C. |
| · | Enel Green Power Argentina S.A. |
| · | Energía y Servicios South América SpA |
On the same date, April 1, 2021, all
the amendments to the bylaws of Enel Américas approved by the Shareholders Meeting, consisting of the respective capital increase
and the elimination of the limitations and restrictions established in the bylaws by application of Title XII of Decree Law No. 3,500
of 1980 – with the sole exception of the Investment and Financing Policy that remains – became effective, in particular, in
the case of a shareholder and his related persons not being able to concentrate more than 65% of the voting capital in Enel Américas.
3 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
| II. | Change in Accounting Policy |
As a result of the review of the accounting
policies applied, it was concluded that in order to achieve a better presentation of the operational and financial performance of the
electric power distribution business developed by its subsidiaries in Brazil, the updating of the financial assets, which represent the
value to be recovered at the end of the corresponding concessions (compensation value) and originally presented as financial income, could
be more appropriately classified as operating revenues, along with other revenues related to its core business.
The justification of this change in criteria
is detailed in Note 2.2. c) of the consolidated financial statements.
In accordance with the provisions of IAS 8
"Accounting Policies, Changes in Accounting Estimates and Errors", as a result of the accounting change explained in the preceding
paragraphs, the Group made retrospective reclassifications to the comprehensive consolidated income statements for the years ended December
31, 2020, and 2019, originally issued on February 25, 2021. The reclassifications carried out did not change the total assets, equity,
net result, and cash flows.
For the purposes of this Press Release all
the figures presented in consolidated terms, as well as those individual figures that affect each of the Distribution Companies in Brazil,
have been reclassified to achieve adequate comparability for the years 2021 and 2020, and for their respective last quarters ended on
those dates.
To get a better analysis, the amounts by which
financial income has decreased and other operating income has increased are shown in the figures presented in this Press Release.
Affected Income Statements Lines |
FY 2020 |
Q4 2020 |
9M 2021 |
(million US$) |
Other operating income |
99 |
70 |
165 |
Financial income |
|
(99) |
(70) |
(165) |
Net effect on results |
- |
- |
- |
4 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
SUMMARY BY BUSINESS SEGMENT
Generation and transmission
The generation and transmission business showed
a 42.1% EBITDA increase as compared to the previous year, reaching US$1,965 million. This is mainly explained by the incorporation
of EGPA into the consolidation perimeter whose contribution at EBITDA level was US$ 374 million. Without this effect,
EBITDA would have increased by 15.1%.
On a quarterly basis, EBITDA increased
by 42.4% also mainly due to the contribution of EGPA. Without this, EBITDA would have increased by 13.3% explained
by better results in in the 4 countries.
Generation
|
FY 2021 |
FY 2020 |
Var % |
Q4 2021 |
Q4 2020 |
Var % |
Total Sales (GWh) |
71,254 |
59,232 |
20.3% |
18,547 |
15,755 |
17.7% |
Total Generation (GWh) |
48,739 |
40,455 |
20.5% |
12,052 |
10,237 |
17.7% |
Distribution
In distribution, EBITDA increased by
13.9% in 2021 compared to the previous year, reaching US$2,228 million. This is mainly explained by improved results in
Brazil, Colombia and Peru, partially offset by worse performance in Argentina and a negative impact from the exchange rate of US$ 97
million.
On a quarterly basis, EBITDA in Distribution
business decreased by 2.8% to US$641 million. This is mainly explained by lower results in Brazil, Peru and Argentina affected
by the negative conversion effect of the devaluation of local currencies in relation to the US dollar.
At the end of 2021, the number of consolidated
clients showed an increase of 541 thousand clients or 2.1% as compared to the previous year, reaching nearly 26.2 million, while
cumulative physical sales increased by 4.0% and 0.4% in the quarter.
Distribution
|
FY 2021 |
FY 2020 |
Var % |
Q4 2021 |
Q4 2020 |
Var % |
Total Sales (GWh) |
119,845 |
115,213 |
4.0% |
30,372 |
30,254 |
0.4% |
Number of Clients |
26,180,129 |
25,639,531 |
2.1% |
26,180,129 |
25,639,531 |
2.1% |
5 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
FINANCIAL SUMMARY
The Company’s available liquidity has
remained strong, as shown below:
• Cash and cash equivalents |
US$1,396 million |
• Cash and cash equiv. + cash investments over 90 days |
US$1,531 million |
• Available committed lines of credit(*) |
US$1,547 million |
(*) It includes four credit lines committed
between parties related to Enel Finance International (EFI). One of them from Enel Américas for an available amount of US$500 million,
another from Enel Brasil for an available balance of US$143 million, another from EGP Peru for an available balance of US$24 million,
and another from EGP Costa Rica for an available balance of US$10 million.
The average nominal interest rate in December
2021 increased to 6.1% from 4.9 % in December 2020, mainly influenced by the inclusion of debt from the merger of Enel Green Power companies
and an upward trend in the indices associated with variable rates of debts in Brazil. This is partially offset by better rate conditions
in the refinancing of debts in Colombia and Peru.
Hedging and protection:
To mitigate the financial risks associated
with foreign exchange rate and interest rate fluctuations, Enel Américas S.A. has established policies and procedures aimed at
protecting its financial statements against the volatility of these variables.
| · | Enel Américas Group´s foreign exchange rate risk hedging policy
establishes that there must be a balance between the index currency of the flows generated by each company and the currency in which they
assume any type of debt. Therefore, the Enel Américas Group has entered into cross currency swaps of US$ 1,662 million and forwards
of US$ 1,074 million. |
| · | To reduce the volatility of the financial statements stemming from interest
rate changes, Enel Américas Group keeps an adequate debt structure balance. To achieve the above, we have entered into interest
rate swaps totaling US$513 million. |
6 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
MARKETS IN WHICH THE COMPANY
OPERATES
Enel Américas owns and operates generation,
transmission and distribution companies in Argentina, Brazil, Colombia, Costa Rica, Guatemala, Panama, and Peru. Virtually all the revenues
and cash flows come from the operations of our subsidiaries and associates in these seven countries.
Generation and Transmission Business Segment
In total, the net installed capacity of the Enel Américas
Group reached 15,926 MW as of December 31, 2021. 68.6% of the consolidated generation capacity comes from hydroelectric,
wind and solar sources and 31.4% from thermal sources. This capacity and the mix of energy sources are achieved thanks to the recent
incorporation of EGPA, which is expected to continue growing in the future, increasing over time the percentage of renewable generation
sources.
The Group carries out the generation business through
the subsidiaries Enel Generación Costanera, Enel Generación el Chocón, Central Dock Sud and Enel Green Power Argentina
S.A. in Argentina, EGP Cachoeira Dourada, Enel Generación Fortaleza, EGP Volta Grande, and Enel Green Power Brasil Participacoes
Ltda. in Brazil, Enel Green Power Costa Rica S.A. in Costa Rica, Emgesa and Enel Green Power Colombia S.A.S ESP in Colombia, Enel Green
Power Guatemala S.A. in Guatemala, Enel Green Power Panama S.R.L. in Panama and Enel Generación Perú, Enel Generación
Piura, and Enel Green Power Perú S.A.C. in Peru. The electric power transmission business is mainly carried out through an interconnection
line between Argentina and Brazil, through Enel CIEN, a subsidiary of Enel Brasil, with a 2,200 MW transmission capacity.
7 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
The following table shows the key physical indicators
for the generation segment, in cumulative and quarterly terms, as of December 31, 2021, and 2020 for each subsidiary.
Company |
Markets in which operates |
Energy Sales (GWh) |
|
Market Share |
Cumulative |
Quarterly |
|
|
FY 2021 |
FY 2020 |
% |
Q4 2021 |
Q4 2020 |
% |
|
December 2021 |
December 2020 |
|
|
|
|
|
|
|
|
|
|
|
Enel Generación Costanera S.A. |
SIN Argentina |
5,695 |
6,518 |
(12.6%) |
739 |
1,523 |
(51.5%) |
|
4.3% |
5.1% |
Enel Generación El Chocón S.A. |
SIN Argentina |
2,028 |
2,924 |
(30.6%) |
427 |
535 |
(20.2%) |
|
1.5% |
2.3% |
Central Dock Sud |
SIN Argentina |
5,378 |
4,461 |
20.6% |
1,447 |
1,376 |
5.2% |
|
4.0% |
3.5% |
Enel Generación Perú S.A. (Edegel) |
SICN Peru |
9,905 |
9,642 |
2.7% |
2,457 |
2,465 |
(0.3%) |
|
18.3% |
19.6% |
Enel Generación Piura S.A. (Piura) |
SICN Peru |
715 |
616 |
16.1% |
189 |
198 |
(4.5%) |
|
1.3% |
1.3% |
Emgesa S.A. |
SIN Colombia |
17,589 |
17,539 |
0.3% |
4,582 |
4,238 |
8.1% |
|
23.8% |
24.9% |
EGP Cachoeira Dourada S.A. (*) |
SICN Brasil |
7,389 |
11,896 |
(37.9%) |
1,686 |
3,540 |
(52.4%) |
|
1.5% |
4.2% |
Enel Generación Fortaleza S.A. |
SICN Brasil |
5,014 |
3,636 |
37.9% |
1,207 |
1,333 |
(9.5%) |
|
1.0% |
0.8% |
EGP Volta Grande S.A. |
SICN Brasil |
1,512 |
2,000 |
(24.4%) |
314 |
547 |
(42.6%) |
|
0.3% |
0.4% |
EGP Brasil |
SICN Brasil |
12,481 |
- |
- |
4,336 |
- |
- |
|
(***) |
- |
EGP Colombia |
SIN Colombia |
97 |
- |
- |
36 |
- |
- |
|
(***) |
- |
EGP PERÚ |
SICN Peru |
814 |
- |
- |
294 |
- |
- |
|
(***) |
- |
EGP Centroamérica |
(**) |
2,637 |
- |
- |
833 |
- |
- |
|
(***) |
- |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
71,254 |
59,232 |
20.3% |
18,547 |
15,755 |
17.7% |
|
|
|
(*) As of December 31, 2020, the reported figure was
19,660 GWh and 5,402 GWh in cumulative terms and for the fourth quarter, respectively, which included 7,764 GWh in cumulative terms and
1,862 GWh for the fourth quarter, corresponding to the energy that EGP Cachoeira Dourada S.A. intermediated in the Brazilian electricity
market. As of this year, this intermediation business is carried out by Enel Trading Brasil, so for comparative purposes the aforementioned
figures have been excluded from the physical sales of 2020.
(**) Companies from Costa Rica, Guatemala, and Panama,
participate in their local SEN (Costa Rica), SEN (Guatemala) and SIN (Panama) markets respectively, and additionally are part of the MER
(Regional Electricity Market), which is a global market that covers the 6 Central American countries.
(***) The market share of the EGP Américas Companies
that were incorporated on April 1, 2021, has not been incorporated, as nine months of operation are not representative of the actual market
share held in each of their countries.
8 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
Distribution business segment
The distribution business is carried out through the
following subsidiaries: Edesur in Argentina, Enel Distribución Río, Enel Distribución Ceará, Enel Distribución
Goiás and Enel Distribución Sao Paulo in Brazil, Codensa in Colombia, and Enel Distribución Perú in Peru.
These companies serve the main cities in Latin America, delivering electric service to more than 26 million customers.
The following tables show some key indicators of the
distribution segment by subsidiary, in cumulative and quarterly terms as of December 31 of 2021, and 2020:
Company |
Energy Sales (GWh) (*) |
|
Energy losses (%) |
Cumulative |
Quarterly |
|
|
|
FY 2021 |
FY 2020 |
% |
Q4 2021 |
Q4 2020 (**) |
% |
|
December 2021 |
December 2020 |
|
|
|
|
|
|
|
|
|
|
Empresa Distribuidora Sur (Edesur) |
16,735 |
15,888 |
5.3% |
4,132 |
3,770 |
9.6% |
|
18.0% |
18.9% |
Enel Distribución Perú |
8,130 |
7,578 |
7.3% |
2,069 |
1,994 |
3.8% |
|
8.5% |
8.8% |
Enel Distribución Río |
11,489 |
11,228 |
2.3% |
2,883 |
3,027 |
(4.8%) |
|
20.5% |
22.1% |
Enel Distribución Ceará |
12,731 |
11,866 |
7.3% |
3,372 |
3,286 |
2.6% |
|
16.1% |
15.9% |
Enel Distribución Goiás |
15,076 |
14,469 |
4.2% |
3,822 |
3,868 |
(1.2%) |
|
11.3% |
11.4% |
Enel Distribución Sao Paulo |
41,086 |
40,350 |
1.8% |
10,279 |
10,643 |
(3.4%) |
|
10.3% |
10.6% |
Codensa |
14,598 |
13,834 |
5.5% |
3,815 |
3,666 |
4.1% |
|
7.5% |
7.6% |
Total |
119,845 |
115,213 |
4.0% |
30,372 |
30,254 |
0.4% |
|
12.6% |
13.0% |
(*) Sales to end customers
and tolls are included.
(**) The energy sales
data reported for the cumulative period and fourth quarter ended December 31, 2020, were 30,501 GWh and have been modified to standardize
slight improvements in the criteria considerations used to obtain figures in the Brazilian distribution subsidiaries.
Company |
Clients (th) |
|
Clients/Employess |
December 2021 |
December 2020 |
% |
|
December 2021 |
December 2020 |
% |
|
|
|
|
|
|
|
|
Empresa Distribuidora Sur (Edesur) |
2,549 |
2,508 |
1.6% |
|
729 |
720 |
1.3% |
Enel Distribución Perú |
1,491 |
1,455 |
2.5% |
|
2,424 |
2,462 |
(1.5%) |
Enel Distribución Río |
3,030 |
2,948 |
2.8% |
|
3,150 |
2,957 |
6.5% |
Enel Distribución Ceará |
4,057 |
4,011 |
1.1% |
|
3,652 |
3,575 |
2.2% |
Enel Distribución Goiás |
3,291 |
3,207 |
2.6% |
|
2,491 |
2,856 |
(12.8%) |
Enel Distribución Sao Paulo |
8,053 |
7,896 |
2.0% |
|
1,813 |
1,350 |
34.3% |
Codensa |
3,709 |
3,615 |
2.6% |
|
2,358 |
2,352 |
0.3% |
Total |
26,180 |
25,640 |
2.1% |
|
1,937 |
1,744 |
11.1% |
9 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
The following table shows revenues from energy sales
by business segment, customer category, and country, in cumulative and quarterly terms as of December 31 of 2021 and 2020:
Energy
Sales Revenues |
Cumulative
figures (million US$) |
Argentina |
Brazil |
Colombia |
Peru |
Central
America |
Total
Segments |
Structure
and adjustments |
Total |
FY
2021 |
FY
2020 |
FY
2021 |
FY
2020 |
FY
2021 |
FY
2020 |
FY
2021 |
FY
2020 |
FY
2021 |
FY
2020 |
FY
2021 |
FY
2020 |
FY
2021 |
FY
2020 |
FY
2021 |
FY
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Generation |
221 |
221 |
2,451 |
1,041 |
1,237 |
1,129 |
547 |
490 |
214 |
- |
4,670 |
2,881 |
(820) |
(737) |
3,850 |
2,144 |
Regulated customers |
- |
- |
388 |
214 |
756 |
637 |
279 |
274 |
160 |
- |
1,583 |
1,125 |
(820) |
(727) |
763 |
398 |
Non regulated customers |
- |
- |
791 |
351 |
415 |
353 |
196 |
189 |
- |
- |
1,402 |
893 |
- |
(10) |
1,402 |
883 |
Spot Market |
221 |
221 |
1,272 |
468 |
66 |
139 |
66 |
24 |
54 |
- |
1,679 |
852 |
- |
- |
1,679 |
852 |
Other Customers |
- |
- |
- |
8 |
- |
- |
6 |
3 |
- |
- |
6 |
11 |
- |
- |
6 |
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution |
738 |
738 |
6,522 |
5,168 |
860 |
760 |
841 |
845 |
- |
- |
8,961 |
7,511 |
(4) |
- |
8,957 |
7,511 |
Residential |
310 |
360 |
3,865 |
3,045 |
512 |
455 |
790 |
474 |
- |
- |
5,477 |
4,334 |
- |
- |
5,477 |
4,334 |
Commercial |
205 |
254 |
1,539 |
1,239 |
204 |
181 |
34 |
87 |
- |
- |
1,982 |
1,761 |
(4) |
- |
1,978 |
1,761 |
Industrial |
139 |
68 |
452 |
370 |
91 |
79 |
1 |
168 |
- |
- |
683 |
685 |
- |
- |
683 |
685 |
Other |
84 |
56 |
666 |
514 |
53 |
45 |
16 |
116 |
- |
- |
819 |
731 |
- |
- |
819 |
731 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Consolidation adjustments |
- |
- |
(313) |
(265) |
(364) |
(324) |
(147) |
(148) |
- |
- |
(824) |
(737) |
824 |
737 |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Sales Revenues |
959 |
959 |
8,660 |
5,944 |
1,733 |
1,565 |
1,241 |
1,187 |
214 |
- |
12,807 |
9,655 |
- |
- |
12,807 |
9,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variation
in million US$ and %. |
- |
- |
2,715 |
45.7% |
168 |
10.7% |
54 |
4.5% |
214 |
- |
3,152 |
32.7% |
- |
- |
3,152 |
32.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly
figures (million US$) |
Energy
Sales Revenues |
Argentina |
Brazil |
Colombia |
Peru |
Central
America |
Total
Segments |
Structure
and adjustments |
Total |
Q4
2021 |
Q4
2020 |
Q4
2021 |
Q4
2020 |
Q4
2021 |
Q4
2020 |
Q4
2021 |
Q4
2020 |
Q4
2021 |
Q4
2020 |
Q4
2021 |
Q4
2020 |
Q4
2021 |
Q4
2020 |
Q4
2021 |
Q4
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Generation |
57 |
44 |
757 |
650 |
328 |
275 |
151 |
132 |
78 |
- |
1,371 |
1,101 |
(215) |
(189) |
1,156 |
912 |
Regulated customers |
- |
- |
124 |
50 |
200 |
162 |
78 |
73 |
62 |
- |
464 |
285 |
(215) |
(179) |
249 |
106 |
Non regulated customers |
- |
- |
251 |
152 |
111 |
98 |
49 |
52 |
- |
- |
411 |
302 |
- |
(10) |
411 |
292 |
Spot Market |
57 |
44 |
382 |
440 |
17 |
15 |
23 |
6 |
16 |
- |
495 |
505 |
- |
- |
495 |
505 |
Other Customers |
- |
- |
- |
8 |
- |
- |
1 |
1 |
- |
- |
1 |
9 |
- |
- |
1 |
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution |
202 |
159 |
1,682 |
1,508 |
226 |
200 |
210 |
214 |
- |
- |
2,320 |
2,081 |
(1) |
- |
2,319 |
2,081 |
Residential |
85 |
100 |
1,145 |
782 |
134 |
107 |
199 |
114 |
- |
- |
1,563 |
1,103 |
- |
- |
1,563 |
1,103 |
Commercial |
56 |
33 |
463 |
414 |
57 |
56 |
8 |
25 |
- |
- |
584 |
528 |
(1) |
- |
583 |
528 |
Industrial |
38 |
20 |
143 |
96 |
26 |
26 |
- |
50 |
- |
- |
207 |
192 |
- |
- |
207 |
192 |
Other |
23 |
6 |
(69) |
216 |
9 |
11 |
3 |
25 |
- |
- |
(34) |
258 |
- |
- |
(34) |
258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Consolidation adjustments |
- |
- |
(82) |
(66) |
(94) |
(83) |
(41) |
(41) |
- |
- |
(216) |
(189) |
216 |
189 |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Sales Revenues |
259 |
203 |
2,357 |
2,092 |
460 |
392 |
320 |
305 |
78 |
- |
3,475 |
2,993 |
- |
- |
3,475 |
2,993 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variation
in million US$ and %. |
56 |
27.6% |
265 |
12.7% |
68 |
17.3% |
15 |
4.9% |
78 |
- |
482 |
16.1% |
- |
- |
482 |
16.1% |
10 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
I.-
ANALYSIS OF THE FINANCIAL STATEMENTS
1. Analysis of Income Statement
The income attributable to Enel Américas shareholders
for the period ended on December 31, 2021 was US$741 million, representing a 10.2% decrease in relation to the US$825
million income registered in the same period of the previous year.
During the fourth quarter of 2021, the income attributable
to the shareholders of Enel Américas reached US$119 million, registering a US$220 million decrease as compared to
the fourth quarter of 2020, equivalent to a 64.9% decrease.
Below we present an item-by-item comparison of the
income statement in cumulative and quarterly terms as of December 31, of 2021 and 2020:
CONSOLIDATED
INCOME STATEMENT (million US$) |
Cumulative
figures |
|
Quarterly
figures |
FY
2021 |
FY 2020 |
Change |
% Change |
|
Q4
2021 |
Q4 2020 |
Change |
% Change |
|
|
|
|
|
|
|
|
|
|
Revenues |
16,192 |
12,292 |
3,900 |
31.7% |
|
4,514 |
3,742 |
772 |
20.6% |
Sales |
12,807 |
9,655 |
3,152 |
32.7% |
|
3,475 |
2,993 |
482 |
16.1% |
Other operating
income |
3,385 |
2,637 |
748 |
28.4% |
|
1,039 |
749 |
290 |
38.7% |
Procurements
and Services |
(10,451) |
(7,556) |
(2,895) |
(38.3%) |
|
(2,940) |
(2,413) |
(527) |
(21.9%) |
Energy purchases |
(7,711) |
(5,338) |
(2,373) |
(44.5%) |
|
(2,183) |
(1,851) |
(332) |
17.9% |
Fuel consumption |
(117) |
(138) |
21 |
15.4% |
|
(28) |
(31) |
3 |
(8.2%) |
Transportation expenses |
(1,020) |
(1,016) |
(4) |
(0.4%) |
|
(221) |
(268) |
47 |
(17.5%) |
Other variable
costs |
(1,603) |
(1,064) |
(539) |
(50.7%) |
|
(508) |
(263) |
(245) |
93.1% |
Contribution
Margin |
5,741 |
4,736 |
1,005 |
21.2% |
|
1,574 |
1,329 |
245 |
18.4% |
Personnel costs |
(730) |
(565) |
(165) |
(29.2%) |
|
(189) |
(81) |
(108) |
134.3% |
Other fixed
operating expenses |
(909) |
(918) |
9 |
1.0% |
|
(206) |
(221) |
15 |
(6.9%) |
Gross
Operating Income (EBITDA) |
4,102 |
3,253 |
849 |
26.1% |
|
1,179 |
1,027 |
152 |
14.7% |
Depreciation and amortization |
(993) |
(858) |
(135) |
(15.7%) |
|
(280) |
(224) |
(56) |
25.2% |
Impairment
gains and impairment losses reversal (Impairment losses) determined in accordance with IFRS 9 |
(445) |
(243) |
(202) |
(83.6%) |
|
(198) |
(63) |
(135) |
211.9% |
Operating
Income |
2,664 |
2,152 |
512 |
23.8% |
|
701 |
740 |
(39) |
(5.3%) |
Net Financial
Income |
(728) |
(412) |
(316) |
(76.5%) |
|
(336) |
(98) |
(238) |
(241.4%) |
Financial income |
295 |
222 |
73 |
32.8% |
|
86 |
71 |
15 |
21.9% |
Financial expenses |
(1,052) |
(768) |
(284) |
(36.9%) |
|
(338) |
(238) |
(100) |
42.1% |
Results by units of adjustments (hyperinflation
- Argentina) |
31 |
77 |
(46) |
(60.0%) |
|
(65) |
19 |
(84) |
(433.7%) |
Foreign currency
exchange differences, net |
(2) |
57 |
(59) |
(103.0%) |
|
(19) |
50 |
(69) |
(138.5%) |
Other
Non Operating Income |
5 |
8 |
(3) |
(42.2%) |
|
3 |
0 |
3 |
946.9% |
Other
gains (losses) |
3 |
5 |
(2) |
(31.1%) |
|
3 |
0 |
3 |
508.3% |
Results
of companies accounted for by participation method |
1 |
3 |
(2) |
(62.3%) |
|
0 |
(0) |
0 |
(293.1%) |
Net
Income Before Taxes |
1,941 |
1,748 |
193 |
11.0% |
|
368 |
642 |
(274) |
(42.6%) |
Income
Tax |
(806) |
(567) |
(239) |
(42.3%) |
|
(147) |
(210) |
63 |
(29.9%) |
Net
Income from Continuing Operations |
1,135 |
1,181 |
(46) |
(4.0%) |
|
221 |
432 |
(211) |
(48.8%) |
Net
Income attributable to owners of parent |
741 |
825 |
(84) |
(10.2%) |
|
119 |
339 |
(220) |
(64.9%) |
Net income attributable to non-controlling interest |
394 |
356 |
38 |
10.6% |
|
102 |
93 |
9 |
9.6% |
|
|
|
|
|
|
|
|
|
|
Earning per
share US$ (*) |
0.00744 |
0.01085 |
(0.00341) |
(31.4%) |
|
0.00111 |
0.00445 |
(0.00334) |
(75.1%) |
(*) As of December 31, 2021, and 2020, the average number
of outstanding common shares totaled 99,587,960,424 and 76,086,311,036 respectively.
11 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
EBITDA
EBITDA for the period ended on December
31, 2021, was US$4,102 million, which shows a US$849 million increase, equivalent to a 26.1% growth regarding
the EBITDA of US$3,253 million compared to the same period which ended on December 31, 2020.
During the fourth quarter of 2021, Enel
Américas' EBITDA reached US$1,179 million, presenting a US$152 million increase as compared to the fourth quarter
of 2020, equivalent to a 14.7% increase.
The growth in these figures
can be mainly attributed to the improved economic performance of the Brazilian operations, and the incorporation, on April 1, 2021, of
the operations of EGP Central and South America, which, with a US$374 million contribution as of December 31, 2021, and US$113
million in the fourth quarter ended on the same date, neutralize the negative effect of conversion effects resulting from the devaluation
of currencies totaling US$185 million and US$59 million in cumulative and quarterly terms, respectively.
Operating revenues, operating costs, staff
costs and other expenses by nature for the operations that determine our EBITDA, broken down for each business segment, in cumulative
and quarterly terms, are presented below for the period that ended on December 31, 2021.
EBITDA BY BUSINESS SEGMENT / COUNTRY
(million US$) |
Cumulative figures |
|
Quarterly figures |
FY 2021 |
FY 2020 |
Change |
% Change |
|
Q4 2021 |
Q4 2020 |
Change |
% Change |
|
|
|
|
|
|
|
|
|
|
Generation and Transmission businesses: |
|
|
|
|
|
|
|
|
|
Argentina |
228 |
231 |
(3) |
(1.2%) |
|
60 |
50 |
10 |
19.3% |
Brazil |
2,551 |
1,106 |
1,445 |
130.7% |
|
810 |
664 |
146 |
22.1% |
Colombia |
1,266 |
1,159 |
107 |
9.2% |
|
335 |
288 |
47 |
16.3% |
Peru |
573 |
505 |
68 |
13.4% |
|
156 |
140 |
16 |
11.6% |
Central America |
233 |
- |
233 |
- |
|
88 |
- |
88 |
- |
Revenues Generation and Transmission businesses |
4,851 |
3,001 |
1,850 |
61.7% |
|
1,449 |
1,142 |
307 |
26.9% |
|
|
|
|
|
|
|
|
|
|
Distribution business: |
|
|
|
|
|
|
|
|
|
Argentina |
794 |
801 |
(7) |
(0.9%) |
|
225 |
192 |
33 |
17.1% |
Brazil |
8,761 |
6,834 |
1,927 |
28.2% |
|
2,345 |
1,965 |
380 |
19.3% |
Colombia |
1,707 |
1,547 |
160 |
10.3% |
|
448 |
413 |
35 |
8.6% |
Peru |
895 |
887 |
8 |
1.0% |
|
226 |
232 |
(6) |
(2.6%) |
Revenues Distribution business |
12,157 |
10,069 |
2,088 |
20.7% |
|
3,244 |
2,802 |
442 |
15.8% |
|
|
|
|
|
|
|
|
|
|
Less: consolidation adjustments and other activities |
(816) |
(778) |
(38) |
4.8% |
|
(179) |
(202) |
23 |
(11.3%) |
|
|
|
|
|
|
|
|
|
|
Total consolidated Revenues Enel Américas |
16,192 |
12,292 |
3,900 |
31.7% |
|
4,514 |
3,742 |
772 |
20.6% |
|
|
|
|
|
|
|
|
|
|
Generation and Transmission businesses: |
|
|
|
|
|
|
|
|
|
Argentina |
(17) |
(19) |
2 |
(9.3%) |
|
(4) |
(3) |
(1) |
45.4% |
Brazil |
(1,907) |
(781) |
(1,126) |
144.1% |
|
(618) |
(526) |
(92) |
17.6% |
Colombia |
(408) |
(413) |
5 |
(1.0%) |
|
(112) |
(106) |
(6) |
5.3% |
Peru |
(175) |
(162) |
(13) |
7.9% |
|
(48) |
(48) |
0 |
(0.4%) |
Central America |
(43) |
- |
(43) |
- |
|
(20) |
- |
(20) |
- |
Procurement and Services Generation and Transmission businesses |
(2,550) |
(1,375) |
(1,175) |
85.5% |
|
(802) |
(683) |
(119) |
17.5% |
|
|
|
|
|
|
|
|
|
|
Distribution business: |
|
|
|
|
|
|
|
|
|
Argentina |
(529) |
(530) |
1 |
(0.4%) |
|
(142) |
(108) |
(34) |
31.6% |
Brazil |
(6,573) |
(4,938) |
(1,635) |
33.1% |
|
(1,748) |
(1,421) |
(327) |
23.0% |
Colombia |
(1,012) |
(886) |
(126) |
14.2% |
|
(271) |
(238) |
(33) |
13.9% |
Peru |
(605) |
(599) |
(6) |
1.0% |
|
(161) |
(161) |
(0) |
0.1% |
Procurement and Services Distribution business |
(8,719) |
(6,953) |
(1,766) |
25.4% |
|
(2,322) |
(1,928) |
(394) |
20.5% |
|
|
|
|
|
|
|
|
|
|
Less: consolidation adjustments and other activities |
818 |
772 |
46 |
5.9% |
|
184 |
198 |
(14) |
(7.3%) |
|
|
|
|
|
|
|
|
|
|
Total consolidated Procurement and Services Enel Américas |
(10,451) |
(7,556) |
(2,895) |
38.3% |
|
(2,940) |
(2,413) |
(527) |
21.9% |
12 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
EBITDA BY BUSINESS SEGMENT / COUNTRY
(million US$) |
Cumulative figures |
|
Quarterly figures |
FY 2021 |
FY 2020 |
Change |
% Change |
|
Q4 2021 |
Q4 2020 |
Change |
% Change |
|
|
|
|
|
|
|
|
|
|
Generation and Transmission businesses: |
|
|
|
|
|
|
|
|
|
Argentina |
(39) |
(30) |
(9) |
27.4% |
|
(13) |
(9) |
(4) |
44.8% |
Brazil |
(34) |
(13) |
(21) |
163.4% |
|
(7) |
(3) |
(4) |
135.7% |
Colombia |
(31) |
(31) |
(0) |
1.1% |
|
(8) |
(10) |
2 |
0.0% |
Peru |
(28) |
(27) |
(1) |
2.8% |
|
(6) |
(6) |
0 |
(0.4%) |
Central America |
(12) |
- |
(12) |
- |
|
(5) |
- |
(5) |
- |
Personnel Expenses Generation and Transmission businesses |
(144) |
(101) |
(43) |
42.1% |
|
(39) |
(28) |
(11) |
40.2% |
|
|
|
|
|
|
|
|
|
|
Distribution business: |
|
|
|
|
|
|
|
|
|
Argentina |
(154) |
(124) |
(30) |
24.6% |
|
(50) |
(33) |
(17) |
48.1% |
Brazil |
(302) |
(208) |
(94) |
45.5% |
|
(67) |
21 |
(88) |
(415.2%) |
Colombia |
(67) |
(77) |
10 |
(13.1%) |
|
(16) |
(27) |
11 |
(39.7%) |
Peru |
(36) |
(34) |
(2) |
5.7% |
|
(8) |
(9) |
1 |
(8.9%) |
Personnel Expenses Distribution business |
(559) |
(443) |
(116) |
26.4% |
|
(141) |
(48) |
(93) |
194.1% |
|
|
|
|
|
|
|
|
|
|
Less: consolidation adjustments and other activities |
(27) |
(21) |
(6) |
24.5% |
|
(9) |
(5) |
(4) |
71.8% |
|
|
|
|
|
|
|
|
|
|
Total consolidated Personnel Expenses Enel Américas |
(730) |
(565) |
(165) |
29.2% |
|
(189) |
(81) |
(108) |
134.3% |
|
|
|
|
|
|
|
|
|
|
Generation and Transmission businesses: |
|
|
|
|
|
|
|
|
|
Argentina |
(37) |
(41) |
4 |
(9.5%) |
|
(10) |
(13) |
3 |
(21.7%) |
Brazil |
(49) |
(15) |
(34) |
235.2% |
|
(14) |
(4) |
(10) |
215.9% |
Colombia |
(39) |
(42) |
3 |
(7.4%) |
|
(12) |
(12) |
0 |
(0.5%) |
Peru |
(47) |
(44) |
(3) |
6.4% |
|
(10) |
(13) |
3 |
(25.9%) |
Central America |
(19) |
- |
(19) |
- |
|
(8) |
- |
(8) |
- |
Other Expenses Generation and Transmission businesses |
(191) |
(142) |
(49) |
34.9% |
|
(54) |
(42) |
(12) |
27.5% |
|
|
|
|
|
|
|
|
|
|
Distribution business: |
|
|
|
|
|
|
|
|
|
Argentina |
(88) |
(97) |
9 |
(9.0%) |
|
(26) |
(28) |
2 |
(7.8%) |
Brazil |
(454) |
(503) |
49 |
(9.7%) |
|
(87) |
(108) |
21 |
(19.8%) |
Colombia |
(73) |
(77) |
4 |
(5.1%) |
|
(20) |
(20) |
0 |
(0.6%) |
Peru |
(36) |
(40) |
4 |
(10.6%) |
|
(8) |
(11) |
3 |
(24.5%) |
Other Expenses Distribution business |
(651) |
(717) |
66 |
(9.2%) |
|
(141) |
(167) |
26 |
(15.8%) |
|
|
|
|
|
|
|
|
|
|
Less: consolidation adjustments and other activities |
(67) |
(59) |
(8) |
12.6% |
|
(11) |
(12) |
1 |
(4.0%) |
|
|
|
|
|
|
|
|
|
|
Total consolidated Other Expenses Enel Américas |
(909) |
(918) |
9 |
(1.0%) |
|
(206) |
(221) |
15 |
(6.9%) |
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Generation and Transmission businesses: |
|
|
|
|
|
|
|
|
|
Argentina |
135 |
140 |
(5) |
(3.7%) |
|
33 |
25 |
8 |
29.3% |
Brazil |
562 |
297 |
265 |
89.1% |
|
171 |
131 |
40 |
30.7% |
Colombia |
787 |
673 |
114 |
16.9% |
|
203 |
160 |
43 |
26.8% |
Peru |
323 |
272 |
51 |
19.0% |
|
92 |
72 |
20 |
27.4% |
Central America |
158 |
- |
158 |
- |
|
54 |
- |
54 |
- |
EBITDA Generation and Transmission businesses |
1,965 |
1,382 |
583 |
42.1% |
|
553 |
388 |
165 |
42.4% |
|
|
|
|
|
|
|
|
|
|
Distribution business: |
|
|
|
|
|
|
|
|
|
Argentina |
23 |
50 |
(27) |
(54.8%) |
|
8 |
23 |
(15) |
(65.3%) |
Brazil |
1,432 |
1,186 |
246 |
20.7% |
|
443 |
457 |
(14) |
(3.1%) |
Colombia |
554 |
507 |
47 |
9.4% |
|
142 |
128 |
14 |
10.2% |
Peru |
219 |
214 |
5 |
2.4% |
|
48 |
51 |
(3) |
(5.3%) |
EBITDA Distribution business |
2,228 |
1,957 |
271 |
13.9% |
|
641 |
659 |
(18) |
(2.8%) |
|
|
|
|
|
|
|
|
|
|
Less: consolidation adjustments and other activities |
(91) |
(86) |
(5) |
5.6% |
|
(15) |
(20) |
5 |
(26.1%) |
|
|
|
|
|
|
|
|
|
|
Total consolidated EBITDA Enel Américas |
4,102 |
3,253 |
849 |
26.1% |
|
1,179 |
1,027 |
152 |
14.7% |
13 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
EBITDA OF THE GENERATION AND TRANSMISSION
SEGMENT
Argentina:
ARGENTINA |
EBITDA (million US$) |
Subsidiaries |
Cumulative figures |
|
Quarterly figures |
FY 2021 |
FY 2020 |
Change |
% Change |
|
Q4 2021 |
Q4 2020 |
Change |
% Change |
|
|
|
|
|
|
|
|
|
|
Enel Generación Costanera |
53 |
61 |
(8) |
(12.3%) |
|
11 |
6 |
5 |
75.6% |
Enel Generación Chocón |
27 |
36 |
(9) |
(24.4%) |
|
7 |
5 |
2 |
24.5% |
Central Dock Sud |
55 |
43 |
12 |
29.4% |
|
15 |
14 |
1 |
5.8% |
|
|
|
|
|
|
|
|
|
|
EBITDA Generation Business |
135 |
140 |
(5) |
(3.7%) |
|
33 |
25 |
8 |
29.3% |
EBITDA of our generation subsidiaries in Argentina
reached US$135 million as of December 2021, representing a US$5
million decrease as compared to last year. The main variables, by subsidiary, that explain these effects as of December 2021, are
described below:
Enel Generación Costanera
S.A.: Lower EBITDA of US$8 million mainly due to the conversion effects of the Argentine peso against the US dollar, partially offset
by improved performance at local level as a result of the readjustment of rates agreed by Resolution No. 440/2021.
Operating revenues of Enel Generación
Costanera's decreased by US$8 million or 7.0%, in cumulative terms
as December 2021 with respect to the previous year. The decrease is mainly explained by: (i)
US$23 million lower revenues as a result of the devaluation of the Argentine peso against
the US dollar; (ii) US$14 million lower sales revenues mainly due to lower energy sales (-823 GWh), as a result of lower
generation stemming from lower dispatch requirement of CAMMESA, mainly for combined cycles; and (iii) US$1 million lower sales
revenues as a result of the effects of Resolution No. 12/2019, which established that the company's
own fuel supply would again be in charge of CAMMESA. This was partially offset by US$ 26 million higher revenues due to
the application of the new Resolution No. 440/2021, which established that the values of energy and power that are maintained in
Argentine pesos can be readjusted by 29% retroactively from February 2021, and US$ 4 million due to the effect of inflation.
Enel Generación Costanera’s operating
costs were in line with last year.
Staff costs increased by US$7 million
and are explained by US$13 million wage increases, partially offset by a US$ 6 million decrease as a result of the devaluation
of the Argentine peso against the US dollar.
Other expenses by nature decreased
by US$5 million and are explained by the devaluation of the Argentine peso against the U.S. dollar.
Regarding the fourth quarter of 2021, our subsidiary
Enel Generación Costanera reached an EBITDA of US$11 million, increasing by US$5 million the amount reached
as of December 31, 2020. This increase is explained by: (i) US$10 million higher revenues due to the application of the new Resolution
No. 440/2021, which established that the values of energy and power that are maintained in Argentine pesos can be readjusted by 29%;
(ii) higher revenues from inflation effects equivalent to US$2 million; (iii) US$3 million lower costs related to third-party
services. All this partially offset by: (i) lower volume of energy sold in the fourth quarter of 2021 (-784 GWh), which
led to lower revenues of US$ 6 million, and (ii) US$4 million higher staff costs due to salary increases.
14 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
Enel Generación El Chocón:
US$ 9 million lower EBITDA mainly due to lower revenues resulting from the devaluation of the Argentine peso and higher fixed costs due
to inflation
Operating revenues decreased
by US$7 million compared to the same period of the previous year, mainly due to (i) US$9 million lower conversion income
as a result of the devaluation of the Argentine peso against the US dollar; and (ii) US$3 million lower revenues from sales as
a result of the effects of Resolution No. 12/2019, which established that the company's own
fuel supply would again be in charge of CAMMESA. All this partially offset by US$5 million higher revenues from the application
of the new regulation Resolution No. 440/2021, which established that the values of energy and power that are maintained in Argentine
pesos can be readjusted by 29% retroactively as of February 2021.
Operating costs were in line with the
same period of the year before.
Staff costs were in line with the same
period of the year before.
Other expenses by nature in Enel Generación
El Chocón increased by US$2 million as a result of higher fixed costs stemming
from the Argentine inflation and the devaluation of the Argentine peso against the US dollar, which affects some dollarized costs.
Regarding
the fourth quarter of 2021, our subsidiary Enel Generación Chocón reached
a US$7 million EBITDA increasing by US$2 million in
the same period of 2020. This decrease is explained by:
US$3 million
higher revenues due to the application of the new Resolution No. 440/2021,
which established that the values of energy and power that are maintained in Argentine pesos can be readjusted by 29%, offset by US$1
million of lower income as a result of the effects of Resolution No. 12/2019 that
established that the supply of fuel of the company was again left in charge of CAMMESA.
15 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
Central Dock Sud:
US$12 million higher EBITDA mainly due to higher sales volumes and better sale prices resulting from the application of resolution 440/21
as of February 2021.
Central Dock Sud’s operating revenues
increased by US$13 million or 20.1%, as of December 2021 compared to the same period of the previous year, which is mainly explained
by US$31 million higher revenues due to the increase in sales volume (+917 GWh) in conjunction with the increase of tariffs
caused because of the application of the new regulation established by Resolution No. 440/2021, which established that the values
of energy and power that were maintained in Argentine pesos can be readjusted by 29% retroactively from February of 2021. This is partially
offset by US$18 million lower revenues as a result of the devaluation of the Argentine peso against the US dollar.
Operating costs were in line with the same period
of the previous year.
Staff costs were in line with the same period of
the previous year.
Other expenses by nature increased
by US$1 million as a result of higher fixed costs resulting from the inflation in Argentina and the devaluation of the Argentine
peso against the US dollar that affects some dollarized costs.
In the fourth quarter of 2021,
Central Dock Sud had an EBITDA of US$15 million as of December 31, 2021, exceeding by US$1 million the one registered
in 2020. This increase is mainly due to US$3 million stemming from an increase in physical sales (+71 GWh), and the recognition
of the provisions of Resolution No. 440/21 that establishes a 29% readjustment of rates retroactively from February 1, 2021,
partially offset by the US$2 million negative effect related to the conversion effect stemming from the devaluation of the Argentine
peso against the US dollar.
16 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
Brazil
BRAZIL |
EBITDA (millions of US$) |
Subsidiaries |
Cumulative figures |
|
Quarterly figures |
FY 2021 |
FY 2020 |
Change |
% Change |
|
Q4 2021 |
Q4 2020 |
Change |
% Change |
|
|
|
|
|
|
|
|
|
|
EGP Cachoeira Dourada |
64 |
135 |
(71) |
(52.3%) |
|
47 |
80 |
(33) |
(41.4%) |
Enel Generación Fortaleza |
108 |
62 |
46 |
74.0% |
|
33 |
19 |
14 |
79.5% |
EGP Volta Grande |
64 |
49 |
15 |
31.1% |
|
17 |
20 |
(3) |
(14.3%) |
Enel Cien |
47 |
46 |
1 |
3.5% |
|
11 |
12 |
(1) |
(14.8%) |
Enel Trading |
80 |
- |
80 |
- |
|
12 |
- |
12 |
- |
EGP Brasil |
199 |
- |
199 |
- |
|
51 |
- |
51 |
- |
Central Geradora Sao Francisco |
- |
5 |
(5) |
- |
|
- |
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
EBITDA Generation and Transmission Businesses |
562 |
297 |
265 |
89.1% |
|
171 |
131 |
40 |
30.7% |
The EBITDA of our generation and
transmission subsidiaries in Brazil reached US$562 million as of December 2021, representing an increase of US$265 million compared
to the previous year. This increase is driven by the incorporation of EGP Brasil Companies and also by the good 2021 performance
of Enel Trading, our subsidiary in charge of contracts intermediation, which contributes US$199 million and US$12 million
of the cumulative and quarterly growth respectively. The main variables, by subsidiary, that explain this increase
in results as of December 2021, are described below:
EGP Cachoeira Dourada
S.A.: US$71 million lower EBITDA mainly due to energy purchases at a higher cost than the those registered in the same period of the previous
year.
Operating revenues increased
by US$616 million, or 75.9%, as of December 2021. The increase is mainly explained
by US$854 million due to higher sales to Brazil's interconnected system as a result of the import of energy from Argentina and
Uruguay, partially offset by: (i) US$174 million of lower physical sales to the regulated market (-4,507 GWh), mainly due
to the COVID-19 pandemic and hydrological crisis, and (ii) US$64 million of lower revenues as a result of the devaluation of the
Brazilian real in relation to the US dollar.
Operating costs increased by US$685
million, or 102.8%, as of December 2021, mainly explained by: (i) US$831 million higher import energy purchase, and (ii)
additional GSF (Generation Scaling Factor) compensatory benefits for hydrological risk granted in 2020 and not present in 2021 for
US$60 million. This was partially offset by (i) US$146 million from lower energy purchases, because of lower customer demand
in the regulated market, mainly due to the effect of COVID-19; and (ii) US$60 million due to lower conversion effect stemming from
the devaluation of the Brazilian real.
Staff costs were in line with the same period of
the previous year.
Other expenses by nature increased by
US$2 million as a result of higher costs of legal services and other services.
In the fourth quarter of 2021, Enel Cachoeira Dourada
S.A. reached an EBITDA of US$47 million, which represents a US$33 million decrease as compared to the same period
of the previous year. The main effects of this decrease are explained by (i) US$84 million lower revenues due to a lower sales
volume (-1,854 GWh), and (ii) additional GSF (Generation Scaling Factor) compensatory benefits for hydrological risk granted
in 2020 and not present in 2021 of US$60 million. This was partially offset by US$97 million lower energy purchases. It
must deduct from the above US$14 million related to higher net revenues obtained from the import and injection of energy from Argentina
and Uruguay to the Brazilian SIN.
17 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
Enel Generación
Fortaleza: US$46 million higher EBITDA mainly due to higher revenues from the sale of energy partially offset by the devaluation effect
of the Brazilian real against the US dollar.
Enel Generación Fortaleza's operating
revenues increased by US$140 million, mainly by: (i) US$80 million higher energy sales due to a higher demand (+1,378
GWh) that motivated a greater generation of the Fortaleza plant, generating a surplus of energy that was finally placed on the free
market; (ii) US$68 million for price readjustments; and (iii) US$7 million recovery of PIS-COFINS taxes. This was partially
offset by US$15 million for conversion effects, due to the devaluation of the Brazilian real in relation to the US dollar.
Operating costs increased by US$91
million, mainly explained by US$108 million due to higher purchases to meet additional energy demand, which were partially
offset by: (i) US$8 million lower fuel cost from a better fit of fixed supply contracts, compared to those in force in the previous
year; and (ii) US$9 million lower cost due to the devaluation of the Brazilian real in relation to the US dollar.
Enel Generación Fortaleza’s Staff
costs were in line with the same period of the previous year.
Other expenses by nature increased by
US$3 million mainly due to higher payments for insurance and third-party services.
In the fourth quarter, Enel Generación
Fortaleza achieved an EBITDA of US$33 million, exceeding US$14 million the one reached in 2020.
This increase is mainly due to (i) US$12 million
for readjustments of energy sales rates and (ii) US$ 5 million due to insurance reimbursement. This was partially offset by US$3
million related to the conversion effects as a result of the devaluation of the real against the US dollar.
Enel Green Power
Volta Grande: Higher EBITDA of US$15 million mainly explained by readjustment of revenues due to the harmonized CPI (HICP).
Enel Green Power Volta Grande's operating revenues
increased by US$19 million mainly due to: (i) US$17 million update of concession assets (RBO), stemming from an
HICP that in 2021 reached 10% versus 5% in 2020; (ii) US$5 million positive effect from better sales prices. This was partially
offset by the US$3 million negative effects of the conversion of figures resulting from the devaluation of the Brazilian real against
the US dollar.
Enel Green Power Volta Grande’s operating
costs increased by US$4 million due to higher prices of purchased energy.
Enel Green Power Volta Grande’s staff costs
were in line with the same period of the year before.
Enel Green Power Volta Grande’s other expenses
by nature were in line with the same period of the year before.
In the fourth quarter of 2021, Enel Green Power
Volta Grande's EBITDA reached US$17 million, US$3 million below the figure reached in the same period of the previous year.
This decrease is mainly due to: (i) US$1 million higher cost for higher prices of purchased energy and US$2 million for
additional GSF (Generation Scaling Factor) compensatory benefits for hydrological risk granted in 2020 and not present in 2021.
18 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
Enel Cien
S.A.: EBITDA in line with the same period of the previous year,
In
the fourth quarter of 2021, Enel CIEN S.A. remains in line
with the figure recorded in 2020.
Enel Trading
Brasil S.A. (Start of operations in 2021): Positive EBITDA of US$80 million as a result of the net margin due to the purchase and sale
of a total of Energy for 21.4TWh.
The
positive EBITDA is generated by revenues from the sale of
electricity at spot prices offered by the market, driven upwards in the second half of 2021, as a result of the water crisis that Brazil
is going through. On the other hand, the costs of energy sales are determined by prices set in short- and long-term contracts set with
customers and that have been much lower than the spot prices in the last quarter of 2021.
In
the fourth quarter of 2021, Enel Trading Brasil S.A. reached a
US$ 12 million EBITDA as a result of the net margin achieved in energy purchase and sale for
a total of 5.9 TWh, which is generated by the sale margin from a purchase price at fixed prices
and a sale price determined by the spot market, which has been higher than the energy purchase prices for the last quarter ended December
31 of 2021.
Central Geradora
Sao Francisco decreased EBITDA from extraordinary revenues of US$ 5 million generated in 2020,
Enel Green Power
Brasil Participacoes Ltda and subsidiaries ("Enel Green Power Brasil"):Group of Companies that entered the consolidation perimeter
as of April 2021: EBITDA of US$199 million mainly due to physical sales.
Operating revenues at Enel
Green Power Brasil reached US$540 million corresponding to the sale of 12,481 GWh.
Operating costs at Enel
Green Power Brasil reached US$294 million, explained as follows: (i) US$267 million energy purchases to cover higher
demand, (ii) US$26 million transport costs, and (iii) US$1 million other variable supplies and services.
Staff costs at Enel
Green Power Brasil totaled US$25 million mainly explained by salaries and social security of workers.
Other expenses by nature
in Enel Green Power Brasil reached US$22 million, mainly for independent outsourced services totaling US$15 million
and US$7 million maintenance and repair costs.
During the fourth quarter of 2021, Enel
Green Power Brasil's EBITDA contribution was US$51 million associated with revenues obtained from physical energy sales of
4,336 GWh, which reported US$135 million revenues, US$71 million operating costs, US$8 million staff costs,
and US$5 million in other expenses by nature.
19 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
Colombia
COLOMBIA |
EBITDA (millions of US$) |
Subsidiaries |
Cumulative figures |
|
Quarterly figures |
FY 2021 |
FY 2020 |
Change |
% Change |
|
Q4 2021 |
Q4 2020 |
Change |
% Change |
|
|
|
|
|
|
|
|
|
|
Emgesa |
789 |
673 |
116 |
17.1% |
|
204 |
160 |
44 |
27.7% |
EGP Colombia |
(2) |
- |
(2) |
- |
|
(1) |
- |
(1) |
- |
|
|
|
|
|
|
|
|
|
|
EBITDA Generation Business |
787 |
673 |
114 |
16.9% |
|
203 |
160 |
43 |
26.8% |
EBITDA of our generation subsidiaries
in Colombia reached US$787 million as of December 2021, representing a US$114 million
increase as compared to December 2020. The main variables that explain this situation are described below:
Emgesa S.A.: US$116
million higher EBITDA mainly due to better prices in the sale of electricity, and more favorable prices in the purchase of energy to comply
with contracts.
Emgesa's operating revenues
increased by US$103 million or 8.9% as of December 2021. This increase is mainly
explained by: (i) US$119 million higher revenue effect due to better average sales
prices; (ii) higher revenue from higher sales volume (+50 GWh) equivalent to US$3 million as compared to the previous
year. All this partially offset by: (i) US$ 3 million lower General Electric insurance indemnity income received in 2020 not present
in the current year, and (ii) US$16 million lower revenues stemming from the negative conversion effect due to the devaluation
of the Colombian peso against the US dollar.
Operating costs decreased
by US$4 million mainly explained by: (i) US$24 million decrease related to energy purchases as a result of lower purchase
price of US$60 million, less US$36 million effect caused by higher physical purchases (+887 GWh); (ii) US$14 million
lower fuel consumption mainly due to lower generation of the Termozipa Power Plant, due to the decrease in the spot price, and (iii)
US$6 million positive effect due to the conversion effect of the devaluation of the Colombian peso against the US dollar. All of the
above was partially offset by: (i) US$29 million higher transportation expenditure due to an increase in unit costs; (ii) US$11
million higher expense of other variable supplies and services.
Staff expenses had a positive
effect of US$3 million mainly due to the scheduled retirement plan of workers in 2020 and the subsequent lower number of staff
members during 2021.
Other expenses by nature
had a positive effect of US$6 million related to tax contingencies that had to be covered in 2020 not present in the current year.
In the fourth quarter of 2021, Emgesa's
EBITDA reached US$204 million, 27.7% higher than the one registered in 2020. The US$44 million growth is mainly
explained by the effect of higher revenues of (i) US$45 million for better average
sales prices; (ii) US$25 million higher revenues due to increased sales volume in the fourth quarter as a result of the reactivation
of the economy (+344 GWh). All of the above partially offset by: (i) US$4 million higher sales costs for energy purchases
at a higher price on the spot market; (ii) US$4 million higher transportation costs due to increased unit costs, mainly PPI; (iii)
US$2 million higher costs for increased fuel consumption due to greater generation in the quarter; (iv) US$5 million lower
revenues from transactions that occurred in 2020 not present in the current year, mainly the sale of carbon credits and receipt of compensation
from General Electric; and (v) US$11 million negative effect from conversion effects resulting from the devaluation of the Colombian
peso against the US dollar.
20 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
Peru
PERU |
EBITDA (millions of US$) |
Subsidiaries |
Cumulative figures |
|
Quarterly figures |
FY 2021 |
FY 2020 |
Change |
% Change |
|
Q4 2021 |
Q4 2020 |
Change |
% Change |
|
|
|
|
|
|
|
|
|
|
Enel Generación Perú |
224 |
211 |
13 |
6.2% |
|
60 |
57 |
3 |
6.7% |
Enel Generación Piura |
41 |
30 |
11 |
37.5% |
|
11 |
7 |
4 |
63.4% |
Chinango |
37 |
31 |
6 |
19.2% |
|
12 |
8 |
4 |
36.7% |
EGP Perú |
21 |
- |
21 |
- |
|
9 |
- |
9 |
- |
|
|
|
|
|
|
|
|
|
|
EBITDA Generation Business |
323 |
272 |
51 |
19.0% |
|
92 |
72 |
20 |
27.4% |
EBITDA of our generation subsidiaries
in Peru reached US$323 million as of December 2021, representing a US$51 million
increase in relation to the previous year. The main variables, by subsidiary, that explain the
increase in the result to December 2021, are described below:
Enel Generación
Perú S.A.: US$13 million higher EBITDA mainly due to higher revenues from an increased
volume of physical sales and better average sales prices, partially offset by the negative effect
of the conversion effects resulting from the devaluation of the new Peruvian sol against the US dollar.
Operating revenues increased
by US$23 million, or 5.4% as of December 2021. This increase
is mainly explained by higher revenues
for (i) US$64 million higher sales volume (+263 GWh) and (ii)
US$4 million better average sale prices, partially offset by a US$45 million decrease due to the conversion effects
caused by the devaluation of the new Peruvian sol in relation to the US dollar.
Operating costs increased by
US$10 million, or 7.4%, as of December 2021, mainly due to (i) US$12 million higher fuel consumption given the higher
thermal generation as a result of the increased demand, (ii) US$15 million for higher transportation costs. This was partially
offset by a lower cost associated with the US$17 million conversion effect as a result of the devaluation of the new Peruvian sol
against the US dollar.
Staff costs of Enel Generación
Perú in cumulative terms were practically in line with the figures registered in the previous year.
Other expenses by nature
in cumulative terms were in line with the figures registered in 2020.
In the fourth quarter of 2021, Enel
Generación Perú had a US$60 million EBITDA, a 6.7% increase as compared to the US$57 million registered
in 2020.
The US$3 million increase in
EBITDA is mainly explained by lower third-party services in 2021 compared to 2020.
Enel Generación
Piura S.A.: US$11 million higher EBITDA due to greater
sales revenues due to increases in physical energy sales.
Operating revenues increased
by US$11 million, mainly due to (i) US$12 million increase due to an increase in physical sales (+99 GWh), and (ii)
US$6 million higher revenues from the sale of gas to the Talara refinery. All of the above partially offset by a US$7 million
decrease due to the conversion effect caused by the devaluation registered by the new Peruvian nuevo against the US dollar.
Operating costs as
of December 31, 2021, were in line with the previous year.
21 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
In the fourth quarter of 2021, EBITDA
of Enel Generación Piura reached US$11 million, exceeding by US$4 million the figure registered in the same
period of the previous year. The main effect of this growth is due to the higher average sales prices of US$3 million and US$1
million for gas sales to the Talara refinery.
Chinango S.A.:
US$6 million higher EBITDA as compared to the previous
year, as a result of higher sales revenues stemming from better average sales prices, partially offset by the negative conversion effect
caused by the devaluation of the new Peruvian sol against the US dollar.
In the fourth quarter Chinango S.A.
reached US$12 million, exceeding US$3 million the figure registered in 2020. The main explanation for this increase is better
sale prices that are partially offset by the negative effects associated with the conversion effects caused by the devaluation of the
new Peruvian sol against the US dollar.
Enel Green Power
Peru S.A.C. and subsidiaries ("Enel Green Power Peru"):
Group of Companies entered into the consolidation perimeter as of April 1, 2021: US$21 million EBITDA mainly due to physical sales.
Operating revenues at Enel
Green Power Peru and subsidiaries totaled US$33 million corresponding to physical sales of 814 GWh.
Operating costs at Enel
Green Power Peru and subsidiaries totaled US$3 million, basically explained by the transport cost of energy.
Other expenses by nature
in Enel Green Power Peru and subsidiaries totaled US$9 million, mainly US$5 million for externalized independent
services and US$4 million repair and maintenance costs.
During the fourth quarter of 2021, the
contribution to Enel Green Power Peru's EBITDA was US$9 million associated with the revenues from physical energy sales
of 294 GWh, which reported a US$13 million revenues, US$1 million operating costs, and US$3 million other
expenses by nature.
22 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
Central America
CENTRAL AMERICA |
EBITDA (millions of US$) |
|
Cumulative figures |
|
Quarterly figures |
FY 2021 |
FY 2020 |
Change |
% Change |
|
Q4 2021 |
Q4 2020 |
Change |
% Change |
|
|
|
|
|
|
|
|
|
|
EGP Costa Rica |
10 |
- |
10 |
- |
|
3 |
- |
3 |
- |
EGP Guatemala |
38 |
- |
38 |
- |
|
15 |
- |
15 |
- |
EGP Panamá |
110 |
- |
110 |
- |
|
36 |
- |
36 |
- |
|
|
|
|
|
|
|
|
|
|
EBITDA Generation Business |
158 |
- |
158 |
- |
|
54 |
- |
54 |
- |
Enel Green Power Costa
Rica S.A. and subsidiaries (“EGP Costa Rica”): Group of Companies incorporated into the consolidation perimeter as of April
2021. EBITDA of US$10 million mainly from physical sales
Operating revenues at Enel Green
Power Costa Rica reached US$17 million, corresponding to US$13 million from the sale of energy equivalent to 168
GWh, and US$4 million from other operating revenues and other services.
Staff costs at Enel Green
Power Costa Rica totaled US$2 million and are mainly explained by salaries and social security costs of workers.
Other expenses by nature in Enel
Green Power Costa Rica reached US$5 million, mainly for outsourced independent services.
During the fourth quarter of 2021, Enel
Green Power Costa Rica's EBITDA contribution was US$3 million associated with the revenues from physical energy sales of 61
GWh, which reported US$6 million revenues, and US$3 million in other expenses by nature.
Enel Green Power Guatemala:
Group of companies incorporated into the consolidation perimeter as of April 2021. EBITDA of US$ 38 million mainly from physical sales
Operating revenues at Enel Green
Power Guatemala reached US$108 million, mainly by US$86 million corresponding to the sale of energy equivalent to 950
GWh, and US$22 million from other operating revenues and other services.
Operating costs at Enel Green
Power Guatemala totaled US$50 million, explained as follows (i) US$37 million energy purchases to cover higher demand,
and (ii) US$13 million transportation and other services costs.
Staff expenses at Enel Green Power
Guatemala totaled US$4 million mainly explained by salaries and social security of workers.
Other expenses by nature in Enel
Green Power Guatemala reached US$16 million, mainly by US$13 million for greater independent, outsourced, and other
services, and US$3 million higher repair and maintenance costs.
During the fourth quarter of 2021, the contribution
to Enel Green Power Guatemala's EBITDA was US$15 million associated with revenues from physical energy sales of 291 GWh,
which reported US$45 million revenues, US$22 million operating costs, US$1 million staff expenses, and US$7 million
other expenses by nature.
23 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
Enel Green Power Panamá
S.R.L. and subsidiaries (Enel Green Power Panamá) Group of companies incorporated into the consolidation perimeter as of April
2021. EBITDA of US$110 million mainly from physical sales
Operating revenues at Enel Green
Power Panama reached US$149 million corresponding to US$142 million from energy sales equivalent to 1,519 GWh, and
US$7 million from other operating revenues and other services.
Operating costs at Enel Green
Power Panama reached US$21 million, explained as follows: (i) US$12 million energy purchases to cover higher demand,
(ii) US$6 million transportation costs, and (iii) US$3 million other variable supplies and services.
Staff costs at Enel Green
Power Panamá totaled US$7 million mainly explained by salaries and social security of workers.
Other expenses by nature at Enel Green
Power Panamá totaled US$11 million mainly for outsourced independent services.
During the fourth quarter of 2021, the contribution
to Enel Green Power Panama's EBITDA was US$36 million associated with the revenues from physical energy sales totaling 481
GWh, which reported revenues of US$52 million, US$9 million operating costs, US$2 million personnel expenses,
and US$5 million other expenses by nature.
24 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
DISTRIBUTION SEGMENT EBITDA
Argentina
ARGENTINA |
EBITDA (million US$) |
Subsidiaries |
Cumulative figures |
|
Quarterly figures |
FY 2021 |
FY 2020 |
Change |
% Change |
|
Q4 2021 |
Q4 2020 |
Change |
% Change |
|
|
|
|
|
|
|
|
|
|
Edesur |
23 |
50 |
(27) |
(54.8%) |
|
8 |
23 |
(15) |
(65.3%) |
|
|
|
|
|
|
|
|
|
|
EBITDA Distribution Business |
23 |
50 |
(27) |
(54.8%) |
|
8 |
23 |
(15) |
(65.3%) |
EBITDA of our distribution subsidiary in Argentina
reached US$23 million for the period ended on December 31, 2021, representing a US$27 million decrease as compared to the
same period of the previous year. The main variables, which explain this decrease as of December 2021, are described below:
Operating revenues decreased
by US$7 million, or 0.9% as of December 2021, which is mainly explained by US$171
million due to lower revenues from the conversion effect as a result of the devaluation of the Argentine peso against the U.S.
dollar; partially offset by: (i) US$118 million for tariff readjustments approved by the regulatory authority on a temporary basis,
pending the next comprehensive tariff review. The readjustment established in the ENRE resolution No. 106 established an average
readjustment of 9%, which led to a 21.8% increase in the added value of distribution as of May 1, 2021; (ii) US$46 million higher
physical volume sold (+847 GWh).
Operating costs decreased by US$
2 million, or 0.4%, which are mainly explained by a US$117 million decrease as a result of the
devaluation of the Argentine peso against the US dollar, which is partially offset
by: (i) US$90 million higher costs associated with higher energy purchased price; (ii) US$19 million higher volume of energy
purchased, and (iii) a US$6 million increase due to other supplies and variable services associated with the increase in
sales volume.
Staff expenses increased by US$14
million, mainly due to a US$49 million increase stemming from salary increases, explained by the recognition of inflation and
by increased overtime; a US$35 million decrease due to lower conversion effects as a result of the devaluation of the Argentine
peso against the US dollar.
Other expenses by nature increased
by US$8 million compared to the previous year, basically due to higher expenses to hire outsourced services.
Regarding the fourth quarter of 2021,
EBITDA of our distribution segment in Argentina reached US$8 million, US$15 million less as compared to the previous
year. This decrease is mainly explained by: (i) US$11 million higher cost for an increased volume of energy purchased to meet demand;
(ii) US$32 million higher price of energy purchased; (iii) $22 million for salary adjustments and staff overtime, and (iv)
$8 million for increases in network maintenance services. All of the above partially offset by higher revenues from: (i) US$23
million due to higher energy sold (+362 GWh); (ii) US$35 million higher price for tariff readjustments approved by the regulatory
authority on a temporary basis pending the next comprehensive tariff review.
ARGENTINA |
Subsidiaries |
Energy Losses (%) |
Clients (million) |
December 2021 |
December 2020 |
% Change |
|
December 2021 |
December 2020 |
% Change |
|
|
|
|
|
|
|
|
Edesur |
18.0% |
18.9% |
(4.8%) |
|
2.55 |
2.51 |
1.6% |
|
|
|
|
|
|
|
|
Total Distribution Business |
18.0% |
18.9% |
(4.8%) |
|
2.55 |
2.51 |
1.6% |
25 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
Brazil
BRAZIL |
EBITDA (million US$) |
Subsidiaries |
Cumulative figures |
|
Quarterly figures |
FY 2021 |
FY 2020 |
Change |
% Change |
|
Q4 2021 |
Q4 2020 |
Change |
% Change |
|
|
|
|
|
|
|
|
|
|
Enel Distribución Río |
282 |
232 |
50 |
21.7% |
|
76 |
77 |
(1) |
(0.8%) |
Enel Distribución Ceará |
280 |
192 |
88 |
45.9% |
|
90 |
64 |
26 |
39.5% |
Enel Distribución Goiás |
163 |
169 |
(6) |
(3.8%) |
|
52 |
65 |
(13) |
(20.2%) |
Enel Distribución Sao Paulo |
707 |
593 |
114 |
19.2% |
|
225 |
251 |
(26) |
(10.2%) |
|
|
|
|
|
|
|
|
|
|
EBITDA Distribution Business |
1,432 |
1,186 |
246 |
20.7% |
|
443 |
457 |
(14) |
(3.1%) |
EBITDA
of our distribution subsidiaries in Brazil reached US$1,432 million as of December 2021,
representing a US$ 246 million increase over the previous year. The main variables by subsidiary, which explain the increase as
of December 2021, are described below:
Enel
Distribución Rio: US$50 million higher EBITDA due to a higher sales
volume in 2021 and better average sale prices partially offset by the negative effect of the devaluation of the Brazilian real
against the US dollar
Operating revenues in Enel Distribución
Río increased by US$328 million, or 26.2% as of December 2021, which
is mainly explained by: (i) US$131 million higher
revenues as a result of increased physical sales volumes (+ 261 GWh); (ii) US$141 million higher revenues due to a better sale
price as a result of inflation and tariff readjustments; (iii) US$16 million higher
toll revenues; (iv) US$53 million higher revenues due to the recognition of construction
revenues under IFRIC 12 "Service Concession Agreements" (IFRIC 12); and (v) US$53
million increased readjustments due to the update of the financial assets associated with IFRIC 12, as a result of a higher CPI registered
in 2021 (10%), compared to the one registered in 2020 (5%). All of the above is offset by US$66 million conversion effects caused
by the devaluation of the Brazilian real against the US dollar.
Operating costs increased
by US$278 million, or 32.0% as of December 2021, compared to the previous year and are mainly explained by: (i) US$261
million higher costs for energy purchases, which incorporate US$176 million due to higher physical purchases and US$85 million
explained by increased average prices stemming from readjustments related to inflation and worsening hydrology; (ii) US$2 million
higher energy transportation cost due to increased tariffs in the use of networks; (iii) US$53 million higher construction costs
according to IFRIC 12, and (iv) US$13 million higher costs for disconnections and reconnection services. This was partially offset
by US$51 million lower costs as a result of the conversion effects due to the devaluation of the Brazilian real against the US
dollar.
Staff expenses increased
by US$4 million compared to the previous year, mainly as a result of a US$6 million increase corresponding to provisions
due to a restructuring plan associated with the Group's digitalization strategy, offset by US$2 million conversion effect
resulting from the devaluation of the Brazilian real against the US dollar.
Other expenses by nature decreased
by US$4 million, mainly due to the conversion effects caused by the devaluation
of the Brazilian real against the US dollar.
26 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
Regarding the fourth quarter of 2021,
EBITDA at the subsidiary Enel Distribución Rio reached US$76 million practically in line with the result of
US$77 million recorded in 2020. The variation in EBITDA is due to the following offset effects: (i) US$26 million
higher revenues from the sale of energy, composed of a US$46 million positive effect due to better average sale prices as a result
of the tariff readjustment, partially offset by US$20 million lower revenues as a result of the lower sales volume registered in
the last quarter of 2021; (ii) US$7 million from higher toll revenues; (iii) US$33 million
higher revenues due to the recognition of construction revenues under IFRIC 12 "Service Concession Agreements" (IFRIC 12);
(iv) US$5 million higher readjustments due to the update of the financial asset associated with IFRIC 12, as a result of a higher
CPI registered in 2021 (10%), compared to the one registered in 2020 (5%); (v) US$9 million
from other revenues associated with fines charged to clients.
BRAZIL |
Subsidiaries |
Energy Losses (%) |
Clients (million) |
December 2021 |
December 2020 |
% Change |
|
December 2021 |
December 2020 |
% Change |
|
|
|
|
|
|
|
|
Enel Distribución Río |
20.5% |
22.1% |
(7.2%) |
|
3.03 |
2.95 |
2.8% |
Enel Distribución
Ceará S.A.: US$88 million higher EBITDA mainly due to the
effects of economic recovery that led to an increased physical sales volume and better average sales prices, partially offset by the
devaluation of the Brazilian real against the US dollar.
Operating revenues at Enel Distribución
Ceará increased by US$346 million, or 29.6% as of December 2021,
which is mainly explained by: (i) US$87 million
higher revenues as a result of a higher sales volume (+865 GWh); (ii) US$221 million higher revenues due to a better sale
price as a result of inflation and tariff readjustments; (iii) US$27 million higher toll revenues; (iv)
US$37 million higher revenues due to the recognition of construction revenues under IFRIC 12; and
(v) US$37 million higher readjustments due to an update of the financial asset associated with IFRIC 12, as a result of a higher
CPI registered in 2021 (10%), compared to the one registered in 2020 (5%). All this is partially offset by the US$63 million conversion
effects caused by the devaluation of the Brazilian real against the US dollar.
Operating costs increased by
US$264 million, or 31.6% as of December 2021, compared to the previous year and are mainly explained by (i) US$263 million
for higher energy purchase costs, which incorporate US$89 million due to higher physical purchases and US$174 million explained
by higher average prices due to readjustment because of inflation; (ii) US$13 million higher energy transportation cost due to
increased tariffs in the use of networks; and (iii) US$37 million from higher construction costs under IFRIC 12. All partially
offset by US$49 million lower costs as a result of the conversion effects due to the devaluation of the Brazilian real.
Staff costs remained in line with the previous
year.
Other expenses by nature decreased
by US$6 million mainly from the US$3 million reversal in 2021 due to provisions for regulatory contingency provisioned in 2020,
and a US$3 million positive effect due to the conversion of figures resulting from the devaluation of the Brazilian real against
the US dollar.
Regarding the fourth quarter of 2021,
EBITDA in the subsidiary Enel Distribución Ceará S.A. reached US$90 million, exceeding by US$26
million the amount reached in the fourth quarter of 2020. This increase is mainly due to: (i) US$6 million for higher physical
sales volume (+86 GWh); (ii) US$47 million for
a better sale price as a result of inflation and tariff readjustments; (iii) US$7 million from higher toll revenues; (iv) US$20
million lower costs related to repairs, maintenance, and energy transportation services. The above offset by higher costs by: (i)
US$49 million for
27 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
higher costs in the purchase of energy
given the tariff readjustments and the corresponding inflation; and (ii) US$5 million related
to the negative effect of conversion of figures resulting from the devaluation of the Brazilian real against the US dollar.
BRAZIL |
Subsidiaries |
Energy Losses (%) |
Clients (million) |
December 2021 |
December 2020 |
% Change |
|
December 2021 |
December 2020 |
% Change |
|
|
|
|
|
|
|
|
Enel Distribución Ceará |
16.1% |
15.9% |
1.3% |
|
4.06 |
4.01 |
1.2% |
Enel Distribución
Goias.: EBITDA in 2021 was US$6 million lower than in 2020, mainly due to the negative conversion effect stemming from the devaluation
of the Brazilian real against the US dollar.
Operating revenues in Enel
Distribución Goiás increased by US$426 million, which is mainly explained by: (i) US$272 million higher
energy sales which correspond mainly to US$86 million higher physical sales by (+607 GWh), due to the country's economic
recovery, US$186 million better average sale prices due to the effects of inflation adjustments related to a 4.6% higher
tariff adjustment in force since October 2020; (ii) US$72 million recognition as a result of the compensatory CVA revenues (Compensation
of Values of Lot A) received because of regulations in Brazil in water crisis cases; and (iii) US$163 million other operating
income, explained mainly by higher construction revenues under the application of IFRIC 12. This was partially offset by US$81 million
lower revenues due to the conversion effects of the devaluation of the Brazilian real.
Operating
costs increased by US$442 million, explained by: (i) US$332 million higher energy purchase expenditure, higher average
prices, and a higher volume; (ii) US$13 million higher costs for interruptions and reconnections; and (iii) US$163 million
higher other variable supplies and services which correspond mainly to higher construction
costs due to the application of IFRIC 12. This is partially offset by US$66 million lower revenues as a result of the devaluation
of the Brazilian real against the US dollar.
Staff expenses increased
by US$2 million, mainly due to a US$4 million increase related to a higher number of
staff and the set-up of retirement funds, partially offset by US$2 million related to the positive conversion effect caused by
the devaluation of the Brazilian real against the US dollar.
Other expenses by nature decreased
by US$12 million, explained by US$7 million due to the conversion effects
because of the devaluation of the Brazilian real, and US$5 million for lower fines and maintenance costs compared to the
previous year.
Regarding
the fourth quarter of 2021, EBITDA in Enel Distribución Goiás reached US$52 million, US$13
million less than the figure reached in the fourth quarter of 2020. This decrease is mainly due to: (i) US$70 million higher
energy purchase expenditure due to higher average prices; and (ii) US$5 million due to higher costs to be reimbursed to clients
for quality of service. All the above is partially offset by: (i) US$ 45 million higher sales revenues composed of US$63 million
due to a better sales price as a result of inflation effect and tariff readjustments by 4,6%
in force since October 2020, and US$17 million lower revenues due to a lower sales volume in the last quarter (-46 GWh),
and (ii) US$17 million lower transportation costs.
28 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
BRAZIL |
Subsidiaries |
Energy Losses (%) |
Clients (million) |
December 2021 |
December 2020 |
% Change |
|
December 2021 |
December 2020 |
% Change |
|
|
|
|
|
|
|
|
Enel Distribución Goiás |
11.3% |
11.4% |
(0.9%) |
|
3.29 |
3.21 |
2.6% |
Enel Distribución
Sao Paulo: US$114 million higher EBITDA mainly
due to the effects of economic recovery that led to higher physical sales volume and better average
sales prices, partially offset by the devaluation of the Brazilian real against the US dollar.
Operating revenues in Enel Distribución
Sao Paulo increased by US$828 million, compared to last year. The main variations explained by these higher revenues are: (i)
US$215 million higher sale revenues due to better average sales prices because of a 9.44% tariff adjustment in force since
2020, and a higher volume of physical sales (+736 GWh); (ii) higher revenues due to an increase in tariffs as a result of
the water crisis in Brazil, generating, as a counterpart, sectoral assets of US$598 million; (iii) US$128 million increased other
operating income mainly explained by higher construction
revenues under IFRIC 12; and (iv) US$55 million
higher readjustments due to an update of the financial asset associated with IFRIC 12, as a result of a higher CPI registered in 2021
(10%), compared to the one registered in 2020 (5%). All the above is partially offset by US$168 million as a result of the
conversion effects due to the devaluation of the Brazilian real.
Operating costs increased by US$652
million, compared to the previous year, mainly explained by: (i) US$620 million higher energy purchases as a result of lower
hydrology and higher purchases at higher prices from thermal generation companies; (ii) US$50
million higher interruptions and reconnections costs; and (iii) US$128 million
higher other operating costs, mainly explained by higher
construction costs, due to the application of IFRIC 12. This was partially offset by: (i) US$19 million lower transportation
costs, and (ii) US$127 million lower costs as a result of the conversion effects due
to the devaluation of the Brazilian real.
Staff expenses increased
by US$62 million compared to the previous
year, mainly due to: (i) US$18 million
higher expenses for provisions for the restructuring plan associated with the digitalization
strategy, and (ii) US$89 million corresponding to the effects of voluntary migration
by employees to a defined contribution plan in 2020, absent in the current year. All the above is partially offset by: (i) US$11 million
lower expenses due to higher efficiency and digitalization process, (ii) US$8 million related to the conversion effect resulting
from the devaluation of the Brazilian real, and (iii) US$25 million labor activation
for fixed asset projects.
Other expenses by nature were in line
with the figures registered last year.
Regarding the fourth quarter of 2021, EBITDA
at the subsidiary Enel Distribución Sao Paulo reached US$225 million, US$26 million less than the figure reached
in the fourth quarter of 2020. This decrease is mainly due to: (i) US$89 million corresponding
to the effects of voluntary migration by employees to a defined contribution plan in 2020, not present in the current year; (ii)
US$91 million higher energy purchase costs due to higher average prices, and US$13 million negative conversion effects related
to the devaluation of the Brazilian real against the US dollar. All of the above is compensated by: (i) US$52 million higher revenues
from higher average sales prices, and (ii) US$115 million higher revenues associated with regulatory assets related to the water
crisis.
BRAZIL |
Subsidiaries |
Energy Losses (%) |
Clients (million) |
December 2021 |
December 2020 |
% Change |
|
December 2021 |
December 2020 |
% Change |
|
|
|
|
|
|
|
|
Enel Distribución Sao Paulo |
10.3% |
10.6% |
(2.8%) |
|
8.05 |
7.90 |
2.0% |
29 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
Colombia
COLOMBIA |
EBITDA (million US$) |
Subsidiaries |
Cumulative figures |
|
Quarterly figures |
FY 2021 |
FY 2020 |
Change |
% Change |
|
Q4 2021 |
Q4 2020 |
Change |
% Change |
|
|
|
|
|
|
|
|
|
|
Codensa |
554 |
507 |
47 |
9.4% |
|
142 |
128 |
14 |
10.2% |
|
|
|
|
|
|
|
|
|
|
EBITDA Distribution Business |
554 |
507 |
47 |
9.4% |
|
142 |
128 |
14 |
10.2% |
EBITDA of our subsidiary Codensa in
Colombia reached US$554 million as of December 2021, representing a US$47 million increase compared to the previous year.
The main variables, which explain this increase to December 2021, are described below:
Codensa: US$47 million higher
EBITDA mainly due to higher physical sales, higher average sales prices, and higher remuneration for assets.
Operating
revenues at Codensa increased by US$160
million, or 10.3% as of December 2021, and is mainly explained by: (i)
US$113 million higher revenues due to better average sales prices stemming from an increase in the Producer Price Index - PPI (to
which sales prices are indexed), and higher physical sales (+764 GWh); (ii) US$54 million increased revenues due to higher
revenues from investment recognition which are remunerated at a higher rate due to a greater regulatory base of assets; and (iii) US$13
million higher revenues from operations contracts related to clean-up, suspension of service and reconnections contracts. All this
is offset by the US$20 million negative conversion effect related to the devaluation of the Colombian peso against the US dollar.
Operating costs increased by
US$126 million or 14.2%
as of December 2021 and are mainly explained by: (i) US$115 million higher energy purchases,
due to higher average sales prices; (ii) US$15 million higher energy transportation costs, caused by the increased payment
that Codensa had to make for the incorporation of new construction units (assets used directly in the transmission system and that must
be prorated proportionally among the system operators); and (iii) US$13 million higher costs of other supplies and services. All
the above is partially offset by the US$17 million positive effect of cost reductions related to the conversion effects as a result
of the devaluation of the Colombian peso against the US dollar.
Staff expenses decreased by US$11
million mainly due to restructuring costs registered in 2020, not present during 2021.
Other expenses by nature decreased
by US$2 million compared to the previous year due to lower contracting of outsourced services.
In the fourth quarter of 2021, EBITDA
of our distribution segment in Colombia reached US$142 million, exceeding by US$14 million the figure reached in the fourth
quarter of 2020. This increase is mainly due to: (i) US$37 million for higher physical sales volume (+149 GWh) and better
average sales prices; (ii) US$20 million due to higher revenues from recognition of
investments, which are remunerated at a higher rate due to a greater regulatory base of the assets; and (iii) US$7 million for
higher Colpatria contract revenues linked with the recovery of clients who are in payment arrears.
The foregoing partially offset by: (i) US$42 million higher costs primarily from energy
purchases at higher prices as compared to the same quarter of the previous year; and (ii)
US$8 million negative effect due to the conversion of figures, caused by the devaluation of the Colombian peso against the US dollar.
30 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
COLOMBIA |
Subsidiaries |
Energy Losses (%) |
Clients (million) |
December 2021 |
December 2020 |
% Change |
|
December 2021 |
December 2020 |
% Change |
|
|
|
|
|
|
|
|
Codensa |
7.5% |
7.6% |
(1.3%) |
|
3.71 |
3.62 |
2.6% |
|
|
|
|
|
|
|
|
Total Distribution Business |
7.5% |
7.6% |
(1.3%) |
|
3.71 |
3.62 |
2.6% |
Peru
PERU |
EBITDA (million US$) |
Subsidiaries |
Cumulative figures |
|
Quarterly figures |
FY 2021 |
FY 2020 |
Change |
% Change |
|
Q4 2021 |
Q4 2020 |
Change |
% Change |
|
|
|
|
|
|
|
|
|
|
Enel Distribución Perú |
219 |
214 |
5 |
2.4% |
|
48 |
51 |
(3) |
(5.3%) |
|
|
|
|
|
|
|
|
|
|
EBITDA Distribution Business |
219 |
214 |
5 |
2.4% |
|
48 |
51 |
(3) |
(5.3%) |
EBITDA of our subsidiary Enel Distribución
Perú S.A. reached US$219 million as of December 2021, which represents an increase of US$5 million compared to
the previous year.
Enel Distribución
Perú: US$5 million higher EBITDA mainly due to an increase in sales prices offset by lower results due to the conversion effects
related to the new Peruvian sol against the US dollar.
Operating revenues at Enel Distribución
Perú increased by US$9 million, mainly explained by: (i) US$89 million
higher energy sales due to an increase in average sales prices, combined with an increase in physical sales (+552 GWh); (ii) US$18
million other services such as connections, maintenance, and reconnections. All this offset by US$98
million due to the conversion effects of the devaluation of the new Peruvian sol against the US dollar.
Operating costs increased
by US$6 million which is mainly explained by: (i) US$62 million for higher energy
purchase costs both in physical volume and in higher average purchase price; (ii) US$10 million costs of other services such as
connections, reconnections and maintenance. We must deduct from the number the US$66 million positive effect of reducing sale costs
as a result of the conversion effect caused by the devaluation of the new Peruvian sol against the US dollar.
Enel Distribución Peru's staff
expenses decreased by US$2 million as a result of the activation of labor in fixed asset projects.
Enel Distribución Perú's
other expenses by nature remained in line with the previous year.
Regarding the fourth quarter of 2021, the EBITDA
of our distribution segment in the subsidiary Enel Distribución Perú reached US$48 million, US$3 million
less than the figure reached in the fourth quarter of 2020, which is mainly explained by: (i) US$18 million higher costs related
to increase of energy purchased, partially offset by a lower average purchase price; and (ii) a US$6 million net negative effect
related to the conversion of figures by the devaluation of the new Peruvian against the US dollar. All above is partially offset by: (i)
US$19 million higher revenues of energy sales due to an increase in average sales prices, and higher volumes of physical energy (+75
GWh); and (ii) US$2 million higher revenues from other services such as connections, maintenance, and reconnections.
PERU |
Subsidiaries |
Energy Losses (%) |
Clients (million) |
December 2021 |
December 2020 |
% Change |
|
December 2021 |
December 2020 |
% Change |
|
|
|
|
|
|
|
|
Enel Distribución Perú |
8.5% |
8.8% |
(3.4%) |
|
1.49 |
1.46 |
2.5% |
|
|
|
|
|
|
|
|
Total Distribution Business |
8.5% |
8.8% |
(3.4%) |
|
1.49 |
1.46 |
2.5% |
31 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
Depreciation, Amortization,
Impairment
Below we present by segment and by country a summary
of EBITDA, Depreciation, Amortization and Impairment costs and EBIT for Enel Américas Group’s subsidiaries for the periods
ended on December 31, 2021 and 2020.
Segment |
Cumulative figures (million US$) |
EBITDA |
Depreciation, amortization and impairment |
EBIT |
EBITDA |
Depreciation, amortization and impairment |
EBIT |
FY 2021 |
FY 2020 |
|
|
|
|
|
|
|
Generation and Transmission: |
|
|
|
|
|
|
Argentina |
135 |
(191) |
(56) |
140 |
(86) |
54 |
Brazil |
562 |
(96) |
466 |
297 |
(24) |
273 |
Colombia |
787 |
(70) |
717 |
673 |
(67) |
606 |
Peru |
323 |
(68) |
255 |
272 |
(64) |
208 |
Central America |
158 |
(28) |
130 |
- |
- |
- |
Total Generation and Transmission |
1,965 |
(453) |
1,512 |
1,382 |
(241) |
1,141 |
|
|
|
|
|
|
|
Distribution: |
|
|
|
|
|
|
Argentina |
23 |
(91) |
(68) |
50 |
(118) |
(68) |
Brazil |
1,432 |
(679) |
753 |
1,186 |
(534) |
652 |
Colombia |
554 |
(136) |
418 |
507 |
(132) |
375 |
Peru |
219 |
(65) |
154 |
214 |
(72) |
142 |
Total Distribution |
2,228 |
(971) |
1,257 |
1,957 |
(856) |
1,101 |
|
|
|
|
|
|
|
Less: consolidation adjustments and other activities |
(91) |
(14) |
(105) |
(86) |
(4) |
(90) |
|
|
|
|
|
|
|
Total Consolidated Enel Américas |
4,102 |
(1,438) |
2,664 |
3,253 |
(1,101) |
2,152 |
Segment |
Quarterly figures (million US$) |
EBITDA |
Depreciation, amortization and impairment |
EBIT |
EBITDA |
Depreciation, amortization and impairment |
EBIT |
Q4 2021 |
Q4 2020 |
|
|
|
|
|
|
|
Generation and Transmission: |
|
|
|
|
|
|
Argentina |
33 |
(122) |
(89) |
25 |
(19) |
6 |
Brazil |
171 |
(27) |
144 |
131 |
(5) |
126 |
Colombia |
203 |
(18) |
185 |
160 |
(18) |
142 |
Peru |
92 |
(24) |
68 |
72 |
(18) |
54 |
Central America |
54 |
(9) |
45 |
- |
- |
- |
Total Generation and Transmission |
553 |
(200) |
353 |
388 |
(60) |
328 |
|
|
|
|
|
|
|
Distribution: |
|
|
|
|
|
|
Argentina |
8 |
(31) |
(23) |
23 |
(49) |
(26) |
Brazil |
443 |
(180) |
263 |
457 |
(126) |
331 |
Colombia |
142 |
(37) |
105 |
128 |
(28) |
100 |
Peru |
48 |
(16) |
32 |
51 |
(20) |
31 |
Total Distribution |
641 |
(264) |
377 |
659 |
(223) |
436 |
|
|
|
|
|
|
|
Less: consolidation adjustments and other activities |
(15) |
(14) |
(29) |
(20) |
(4) |
(24) |
|
|
|
|
|
|
|
Total Consolidated Enel Américas |
1,179 |
(478) |
701 |
1,027 |
(287) |
740 |
Depreciation, amortization, and impairment reached
US$1,438 million as of December 2021,
increasing by US$337 million in net terms
as compared to the year 2020.
Depreciation and amortization reached US$993
million as of December 2021, representing a US$135 million increase compared to the same period of the previous year. This
is mainly explained by the following effects: increments of (i) US$99 million
from EGP Américas companies which were incorporated into the consolidation perimeter as of April 1, 2021; (ii)
US$9 million in Edesur composed of the US$27 million greater depreciation due to new investments, less US$18 million
as a result of the devaluation of the Argentine peso against the US dollar; (iii) US$2 million in Enel Distribución Rio
composed of US$6 million for greater depreciation due to higher activations, offset
by US$4 million due to the conversion effects resulting from the devaluation of the Brazilian real against the US dollar; (iv)
US$2 million in Enel Distribución Ceará composed
32 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
of US$5 million due to higher depreciations
due to higher activations, offset by US$3 million due to the conversion effects resulting from the devaluation of the Brazilian
real against the US dollar; (v) US$8 million in Enel Distribución Goias, composed of
US$11 million due to higher depreciations resulting from higher activations, offset by US$3 million due to the conversion
effects from the devaluation of the Brazilian real against the US dollar; (vi) US$8 million in Codensa, composed
of US$10 million for greater depreciations due to higher activations, offset by US$2 million due to the conversion
effects from the devaluation of the Colombian peso against the US dollar; (vii) US$6 million in Enel Cachoeira Dourada, composed
of US$7 million for greater depreciation due to higher activations, offset by US$1 million due to the conversion
effects resulting from the devaluation of the Brazilian real against the US dollar; and (viii) US$21 million higher depreciation
in Argentinean generation companies due to the effect of the higher depreciable base resulting from hyperinflation.
All of these increases are partially offset by the
following decreases (i) US$9 million in Enel Distribución Sao Paulo, due to
the conversion effects from the devaluation of the Brazilian real against the US dollar; and (ii) US$11
million in Enel Generación Perú composed of US$7 million lower depreciable
base in 2021 and US$4 million conversion effect due to devaluation of the new Peruvian sol against the US dollar.
On the other hand, the impairment losses under IFRS
9 "Financial Instruments" and IAS 36 "Impairment of Assets" totaled US$445 million as of December 2021, which
represents a US$ 202 million increase compared
to the previous year, which is mainly explained by: (i) US$102 million composed of increases in impairment caused by the evaluation
of financial assets, in distribution companies in Brazil totaling US$112 million, mainly in Enel Distribución Sao Paulo
and Enel Distribución Rio, partially offset by reversals of provisions for impairment of financial assets set up in
2020 in Edesur totaling US$10 million, due to lower expected credit losses; (ii) US$100 million for recognition of
impairment in long-lived assets, highlighting the US$82 million loss due to the application of recoverability tests recognized
in Enel Generación Costanera.
In the fourth quarter ended December 31, 2021, depreciation,
amortization, and impairment totaled US$478 million, increasing
by US$191 million in net terms compared to 2020. Of this increase, US$56
million correspond to higher depreciation and amortization, explained by: (i) US$33 million higher depreciation due to the
incorporation of EGP Américas; (ii) US$9 million in Edesur composed of a US$ 14 million increase due to higher
depreciations because of new investments, less US$5 million as a result of the devaluation of the Argentine peso against the US
dollar; and (iii) US$5 million for Enel Cachoeira Dourada for a larger base of depreciable assets.
In relation to impairment losses in accounts receivable
and cash-generating units in the October-December 2021 quarter, there was a US$135 million increase as compared to the same period
of 2020, composed of: (i) US$47 million increase in the recognized impairment on the financial assets receivable of distribution
companies in Brazil; and (ii) US$82 million recognition of loss due to the application of a recoverability test on long-lived assets
in the subsidiary Enel Generación Costanera.
33 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
Non-operating income
The following table presents the non-operating consolidated income
for the periods ended on December 31, 2021, and 2020:
NON OPERATING INCOME CONTINUING OPERATIONS |
Cumulative figures (million US$) |
|
Quarterly figures (million US$) |
FY 2021 |
FY 2020 |
Change |
% Change |
|
Q4 2021 |
Q4 2020 |
Change |
% Change |
|
|
|
|
|
|
|
|
Financial Income |
|
|
|
|
|
|
|
|
|
Argentina |
90 |
86 |
4 |
5.0% |
|
28 |
45 |
(17) |
(39.0%) |
Brazil |
181 |
112 |
69 |
61.9% |
|
51 |
21 |
30 |
146.9% |
Colombia |
15 |
14 |
1 |
6.0% |
|
4 |
3 |
1 |
64.4% |
Peru |
6 |
6 |
(0) |
(10.8%) |
|
2 |
2 |
- |
14.4% |
Central America |
3 |
- |
3 |
- |
|
1 |
- |
1 |
- |
Consolidation adjustments and other activities |
- |
4 |
(4) |
(87.8%) |
|
- |
- |
- |
- |
Total Financial Income |
295 |
222 |
73 |
32.8% |
|
86 |
71 |
15 |
21.9% |
|
|
|
|
|
|
|
|
|
|
Financial Expenses |
|
|
|
|
|
|
|
|
|
Argentina |
(247) |
(148) |
(99) |
66.5% |
|
(79) |
(71) |
(8) |
10.3% |
Brazil |
(618) |
(415) |
(203) |
48.9% |
|
(208) |
(117) |
(91) |
77.1% |
Colombia |
(109) |
(132) |
23 |
(17.4%) |
|
(28) |
(28) |
(0) |
2.0% |
Peru |
(29) |
(31) |
2 |
(7.6%) |
|
(5) |
(7) |
2 |
(25.1%) |
Central America |
(6) |
- |
(6) |
- |
|
(2) |
- |
(2) |
- |
Consolidation adjustments and other activities |
(43) |
(42) |
(1) |
3.4% |
|
(16) |
(15) |
(1) |
9.4% |
Total Financial Expenses |
(1,052) |
(768) |
(284) |
36.9% |
|
(338) |
(238) |
(100) |
42.1% |
|
|
|
|
|
|
|
|
|
|
Foreign currency exchange differences, net |
|
|
|
|
|
|
|
|
|
Argentina |
92 |
51 |
41 |
79.2% |
|
82 |
21 |
61 |
287.6% |
Brazil |
(42) |
(89) |
47 |
(52.5%) |
|
(35) |
56 |
(91) |
(163.3%) |
Colombia |
(3) |
(1) |
(2) |
146.3% |
|
0 |
3 |
(3) |
(83.1%) |
Peru |
(7) |
(1) |
(6) |
404.3% |
|
1 |
(2) |
3 |
(144.1%) |
Consolidation adjustments and other activities |
(42) |
97 |
(139) |
(143.0%) |
|
(67) |
(28) |
(39) |
136.7% |
Total Foreign currency exchange differences, net |
(2) |
57 |
(59) |
(103.0%) |
|
(19) |
50 |
(69) |
(138.5%) |
|
|
|
|
|
|
|
|
|
|
Total results by adjustment units (hyperinflation - Argentina) |
31 |
77 |
(46) |
(60.0%) |
|
(65) |
19 |
(84) |
(433.7%) |
|
|
|
|
|
|
|
|
|
|
Net Financial Income Enel Américas |
(728) |
(412) |
(316) |
76.5% |
|
(336) |
(98) |
(239) |
(241.4%) |
|
|
|
|
|
|
|
|
|
|
Other gains (losses) |
|
|
|
|
|
|
|
|
|
Argentina |
1 |
(0) |
1 |
(2526.2%) |
|
2 |
0 |
1 |
960.7% |
Brazil |
1 |
1 |
(0) |
(39.9%) |
|
0 |
0 |
(0) |
(66.5%) |
Colombia |
1 |
0 |
1 |
416.1% |
|
1 |
0 |
1 |
539.2% |
Peru |
0 |
4 |
(4) |
(99.3%) |
|
0 |
(0) |
0 |
- |
Central America |
- |
- |
- |
- |
|
- |
- |
- |
- |
Consolidation adjustments and other activities |
- |
- |
- |
- |
|
- |
- |
- |
- |
Total Other gains (losses) |
3 |
5 |
(2) |
(31.1%) |
|
3 |
0 |
3 |
508.3% |
|
|
|
|
|
|
|
|
|
|
Share of profit (loss) of associates accounted for using the equity method: |
|
|
|
|
|
|
|
|
|
Argentina |
1 |
3 |
(2) |
(62.3%) |
|
- |
- |
- |
- |
Total Share of profit (loss) of associates accounted for using the equity method |
1 |
3 |
(2) |
(62.3%) |
|
- |
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Total Non Operating Income |
4 |
8 |
(4) |
(43.9%) |
|
3 |
0 |
3 |
946.9% |
|
|
|
|
|
|
|
|
|
|
Net Income Before Taxes |
1,941 |
1,748 |
193 |
11.0% |
|
368 |
642 |
(274) |
(42.6%) |
|
|
|
|
|
|
|
|
|
|
Income Tax |
|
|
|
|
|
|
|
|
|
Argentina |
(138) |
(36) |
(102) |
282.5% |
|
5 |
5 |
(0) |
(10.0%) |
Brazil |
(183) |
(148) |
(35) |
24.0% |
|
(30) |
(116) |
86 |
(74.5%) |
Colombia |
(327) |
(287) |
(40) |
14.1% |
|
(82) |
(73) |
(9) |
12.4% |
Peru |
(126) |
(92) |
(34) |
36.8% |
|
(31) |
(25) |
(6) |
21.3% |
Central America |
(33) |
- |
(33) |
- |
|
(11) |
- |
(11) |
- |
Consolidation adjustments and other activities |
1 |
(4) |
5 |
(128.7%) |
|
2 |
(1) |
3 |
(421.8%) |
Total Income Tax |
(806) |
(567) |
(239) |
42.3% |
|
(147) |
(210) |
63 |
(29.9%) |
|
|
|
|
|
|
|
|
|
|
Net Income after taxes |
1,135 |
1,181 |
(47) |
(4.0%) |
|
221 |
432 |
(211) |
(48.8%) |
Net Income attributable to owners of parent |
741 |
825 |
(84) |
(10.2%) |
|
119 |
339 |
(220) |
(64.9%) |
Net income attributable to non-controlling interest |
394 |
356 |
38 |
10.6% |
|
102 |
93 |
9 |
9.6% |
34 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
Financial
Income
Financial income was a US$728 million
loss as of December 2021, which represents a US$316 million increase as compared to the loss registered in the previous year.
This variation is explained as follows:
(a)
US$ 73 million higher financial income, mainly explained by: (i) US$10 million
increased interest receivable associated with clients for the sale of energy mainly in distribution subsidiaries in Brazil; (ii) US$25
million higher income from the updating of financial investments in Argentinean subsidiaries; (iii) US$28 million for the monetary
update of the regulatory assets of distribution companies in Brazil due to a CPI that in 2021 reached 10% as compared to 5% registered
in 2020; (iv) US$25 million for recognition of revenues from derivative operations in Enel Distribución Sao Paulo during
2021 not present the previous year; and (v) US$10 million associated with the financial income from the incorporation of the EGP
Américas subsidiaries. All the above is partially offset by the US$25 million negative effect of extraordinary income
recognized in 2020 due to a change in the valuation of investments in Termoeléctrica Belgrano and Termoeléctrica San
Martin.
In the fourth quarter ended December 31, 2021, the
variation in financial income with respect to the same period of 2020 reached US$15 million, corresponding to: (i) US$21 million
for the monetary update of the regulatory assets of the Distribution Companies in Brazil; (ii) US$3 million associated with the
financial income from the incorporation of the EGP Américas subsidiaries; (iii) US$8 million from derivative operations;
and (iv) US$8 million higher updating of financial investments in Argentinean subsidiaries. All of the above partially offset by
the US$25 million negative effect of extraordinary income recognized in 2020 due to a change in the valuation of investments in
Termoeléctrica Belgrano and Termoeléctrica San Martin.
(b)
US$284 million higher financial expenses mainly attributable to: (i) US$99
million in Edesur, mainly explained by financial update for debt with energy purchasing
supplier (CAMMESA); (ii) US$56 million higher financial expenses associated with an increased level of bank indebtedness, mainly
in the subsidiaries Enel Distribución Sao Paulo (US$ 37 million) and the incorporation of the EGP Américas
Companies totaling US$19 million; (iii) US$16
million higher net financial expense on unguaranteed obligations, mainly Enel Distribución Ceará (US$12 million),
Enel Distribución Goiás (US$12 million), Codensa (US$6 million), offset by lower expenses associated with net payments
of unguaranteed obligations made by Emgesa (US$14 million); (iv) US$97 million higher financial expenses for derivative transactions,
mainly in Brazilian companies; and (v) US$16 million higher financial expense due to
increased indebtedness with related companies outside the consolidation perimeter; mainly Enel Distribución Goias (US$12 million)
and the EGP Américas incorporated companies (US$4 million).
In the fourth quarter of 2021,
the variation in financial expenses had a US$100 million increase compared to the same period of the previous year, which is explained
by: (i) Edesur with US$6 million,
originated mainly in the financial update for debt with the supplier of energy purchases and provisions update (CAMMESA);
(ii) US$44 million higher financial expenses for
the recognition of derivative operations, mainly in our distribution subsidiaries in Brazil; (iii)
US$10 million for updating sectoral liabilities in Brazil; (iv) US$14 million for
increased financing with related companies outside the consolidation perimeter, mainly Enel Distribución Rio and Enel
Distribución Goias; (v) US$11 million higher financial costs due to a higher
level of bank debt, mainly in the subsidiary Enel Distribución Sao Paulo; and (vi) US$15 million higher financial
expense due to higher unguaranteed obligations mainly in our distribution subsidiaries in Brazil.
35 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
(c) The results
from readjustments decreased by US$46 million and correspond to the financial result stemming from the application of IAS 29 Financial
Information in Hyperinflationary Economies in Argentina. They reflect the net balance arising
from applying inflation to non-cash assets and liabilities and income statements that are not determined on an updated basis, converted
to U.S. dollar at closing exchange rates. The decrease in 2021 compared to the previous year is explained by a decrease in the position
of net liabilities exposed to the inflationary process in Argentina.
In the fourth quarter of
2021, the effect of hyperinflation in Argentina led to an US$84 million decrease in the income statement by readjustment units,
for the same reason explained in the previous paragraph.
(d) The exchange differences led to
a US$59 million negative variation compared to the previous year, mainly explained by: (i) US$34 million higher losses in
the subsidiary Cachoeira Dourada due to the update of accounts payable in foreign currency for the import of energy from Argentina
and Uruguay, as a result of the devaluation of the Brazilian real against the US dollar in 2021, compared with a small profit in 2020,
given that when import operations began in the last quarter of 2020, the Brazilian real showed an appreciation against the US dollar;
(ii) US$11 million lower profit due to the update of the VOSA credits, given the lower devaluation experienced by the Argentine
peso against the US dollar in 2021 compared to 2020, and lower capital in dollars due to amortization; and (iii) US$14 million,
for updating debts held by our subsidiaries in Brazil with related entities outside the consolidation perimeter of Enel Americas.
In terms of the fourth quarter ended on December
31, 2021, there was a US$69 million negative variation which is mainly explained by higher losses due to updates related to debts
maintained by our subsidiaries in Brazil with related entities outside the consolidation perimeter of Enel Américas, as a result
of the devaluation of the Brazilian real against the US dollar, which is compared with profits registered in 2020 on the same group of
debts that benefited from the appreciation experienced by the Brazilian real against the US dollar.
(e) Corporate Income Tax reached US$806 million
as of December 31, 2021, which represents a US$239 million increase as compared
to the expense registered in the previous year, mainly explained by: (i) higher tax expenses for better financial results (EBT)
in: Enel Brasil with US$7 million, Enel Generación Fortaleza with US$13 million, Enel Generación Perú
with US$14 million, Enel Distribución Codensa with US$9 million, Enel Distribución Ceará with US$9
million, Emgesa with US$17 million, Edesur with US$15 million, Enel Distribución Peru with US$9 million and
Enel Trading Brasil with US$26 million; (ii) higher expenses related to income taxes and deferred taxes in subsidiaries in
Argentina, due to the adaptation of deferred taxes because of the tax reform approved by the Argentine Government, where the nominal rate
increased from 30% to 35%, detailed as follows: Edesur with US$101 million, Enel Generación Costanera with US$11
million, Central Dock Sud with US$4 million, offset by Enel Generación El Chocón with US$7
million; (iii) a tax increase in the Colombian subsidiaries due to the modification of the tax rate from 30% to 35% for the income
taxed as of 2022, but that because of the recognition of deferred taxes according to the current rate on the reversal was supposed to
be recognized in 2021 an increased charge to the results by US$13 million, composed of: Emgesa with US$12 million and
Codensa with US$1 million; and (iv) US$59 million higher expenses due to variation in the consolidation perimeter
as of April 1, 2021 as a result of the merger with EGP Américas.
This was partially offset by lower taxes due to lower
income in the subsidiaries Enel Distribución Goiás with US$23 million and Cachoeira Dourada with US$38
million.
36 |
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PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
Corporate Income Tax reached US$147 million in
the fourth quarter of 2021, which represents a US$63 million decrease as compared to the figure registered in the same quarter
of the previous year, mainly explained by: lower tax expenses due to worse financial results (EBT) in Enel Generación Costanera
with US$36 million, Enel Brasil with US$42 million, Enel Distribución Sao Paulo with US$38 million, and Cachoeira
Dourada with US$18 million.
This was partially offset by higher taxes due to better
financial results (EBT) in Edesur with US$23 million, Emgesa with US$12 million, and in Enel Cien with
US$36 million.
37 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
ANALYSIS OF THE FINANCIAL
STATEMENT
Assets |
December 2021 |
December 2020 |
Change |
% Change |
(million US$) |
|
|
|
|
|
|
Current Assets |
7,062 |
6,179 |
883 |
14.3% |
Non current Assets |
27,897 |
20,755 |
7,142 |
34.4% |
|
|
|
|
|
Total Assets |
34,959 |
26,934 |
8,025 |
29.8% |
Enel Américas' total assets as of December
31, 2021, increased by US$8,025 million compared to total assets as of December 31, 2020, mainly as a result of:
| | Current Assets showed a US$883 million increase equivalent to 14.3%,
mainly explained by: |
| · | A US$111 million decrease in Cash and Cash Equivalents mainly composed of: (1) US$2,616 million net
income from operating flows corresponding to charges for sales and provision of services, net of payments to suppliers and others;
(2) US$595 million net outgoings from financing activities flows corresponding to: (i) US$2,191 million loan payments; (ii)
US$668 million obligations to the public; (iii) US$445 million related companies; (iv) US$963 million dividend payments;
(v) US$339 million interest payments; and (vi) payments of financial lease liabilities
totaling US$65 million. This was partially offset by: (i) financing obtained
from third parties; US$2,459 million in bank loans, US$268 million in third-party bonds and US$1,275 million from
related companies, including EFI loans to Enel Américas, Enel Distribución Goiás, Enel Distribución
Ceará and Enel Distribución Rio, and (ii) US$74 million other cash inflows; (3) net
outgoings for investment activities totaling US$ 1,935 million corresponding to: (i)
US$1,817 million disbursements for the incorporation of plant and equipment properties; (ii) US$1,194
million payments for the incorporation of intangible assets; (iii) US$1,265
million investments over 90 days. These investment cash outflows were offset by: (i) US$29
million Interest received; (ii) US$1,248 million redemption of investments
over 90 days; (iii) US$34 million collections from related entities net of payments; and (iv) US$1,031 million incorporation
of the initial cash and cash equivalent balances of EGP Américas companies as of April 1, 2021; and (4) US$197
million decrease due to the change in exchange rates on cash and cash equivalents. |
| · | A US$82 million increase in Other Current Financial Assets mainly explained by: (i) US$38 million
increased investments in financial assets at fair value with changes in income, and (ii) a US$37 million increase in investments
in financial assets measured at amortized cost. |
| · | A US$268 million increase in other Current Non-Financial Assets mainly explained by: (i) higher
PIS and COFINS receivables recognized to grant refunds to clients; Enel Distribución Goiás with US$105 million
and Enel Distribución Rio with US$81 million; (ii) a US$54 million increase for VAT tax credit and other taxes
to be recovered; and (iii) US$20 million increased contribution fund in Enel Distribución Goias. |
38 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
| · | A US$476 million increase in Commercial Accounts Receivable and other current accounts receivable mainly
explained by: (i) US$ 171 million commercial accounts of EGP Américas companies; (ii) US$142 million increase
in distribution companies mainly due to the application of tariff readjustments and an increase in the average collection periods in distribution
companies, due to the economic difficulties caused by the Pandemic and the collection restrictions established by governments; and (iii)
US$457 million increase in regulatory assets (CVA) in Brazil, as a result of the increase in the cost of energy caused by the water
crisis. All this was partially offset by the US$294 million negative conversion effect caused by the devaluation of the functional
currencies of Enel Américas' subsidiaries against the US dollar. |
| · | A US$27 million increase in Current Accounts Receivable to Related Entities basically explained
by commercial transactions of Generadora Montecristo in Guatemala with a related company outside the EFI consolidation perimeter. |
| · | A US$67 million increase in Inventories explained by increased maintenance of electrical supplies
in our distribution subsidiaries in Brazil, according to the following detail: Enel Distribución Sao Paulo with US$26
million, Enel Distribución Ceará with US$22 million and Enel Distribución Goiás with
US$19 million. |
| · | US$74 million increase in Current Tax Assets explained by US$42 million higher income tax
advances in Enel Generación Perú and US$33 million in Enel Distribución Río. |
| | US$ 7,142 million Increase in Non-Current Assets, equivalent to 34.4%,
mainly due to: |
| · | US$682 million increase in Other Non-Current Financial Assets mainly explained by: (i) financial
update of IFRIC 12 receivables for our Brazilian subsidiaries reflecting a US$246 million increase; (ii) a US$114 million
increase due to the incorporation of assets according to IFRIC 12 in PH Chucás in Costa Rica; (iii) a US$381 million
increase in new investments under IFRIC 12 in our Brazilian subsidiaries; and (iv) a US$142 million increase in hedging derivatives. |
All of the above
partially offset by the effects of the devaluation of the Brazilian real against the US dollar as
of December 31, 2021, which determines a US$231 million decrease in accounts receivable
generated according to IFRIC12.
| · | A US$813 million increase in Other Non-Current Non-Financial Assets which is mainly
explained by: (i) higher taxes to recover from PIS and COFINS at Enel Distribución Goiás totaling US$447
million and Enel Distribución Río with US$514 million (see explanation of commercial accounts payable and
other non-current accounts payable on page 50 of this Press Release); (ii) a US$271 million increase in assets under construction
according to IFRIC 12 corresponding to Brazilian subsidiaries. All of the above partially offset by: (i) US$252 million reduction
of the assets recognized in 2020 in Enel Distribución Sao Paulo and Enel Distribución Ceará for taxes to
be recovered on behalf of clients; and (ii) US$ 156 million reduction due to the conversion effect related to the devaluation
of the Brazilian real against the U.S. dollar. |
| · | A US$146 million increase in accounts receivable and other non-current receivables
mainly explained by an extension in the collection terms of energy accounts in the Brazilian subsidiaries Enel Distribución
Sao Paulo with US$110 million and Enel Distribución Rio with US$36 million. |
39 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
| · | A US$231 million increase of intangibles other than goodwill composed mainly by: (i)
a US$334 million increase by business combination mainly due to the incorporation of the EGP Américas companies; (ii) US$536
million new investments mainly in distribution companies in Brazil; (iii) a US$26 million increase due to hyperinflation
in Argentina; and (iv) US$134 million other net increases. This was partially offset by: (i) US$431 million amortizations;
and (ii) a US$ 368 million decrease related
to the negative conversion effect due to the devaluation of the different currencies in which we operate against the US dollar. |
| · | A US$525 million increase in goodwill,
explained mainly by the incorporation of the EGP Américas businesses totaling US$587 million and US$62 million
less due to the conversion effects because of the devaluation of the different currencies in which we operate versus the US dollar. |
| · | A US$4,643 million increase in Plant and Equipment Property composed mainly of: (i)
a US$ 3,952 million increase mainly due to the incorporation of the EGP Américas assets; (ii) US$726 million inflation
increases from the application of IAS 29 in our Argentinean subsidiaries; (iii) a US$1,761 million increase in new investments;
(iv) US$549 million depreciation of the period;
(v) a US$1,176 million decrease due to the conversion effects of the functional currencies of each subsidiary
to the US dollar; (iv) a US$ 82 million decrease due to the recognition of asset recoverability test in Enel
Generación Costanera, (v) a US$11 million increase due to other movements. |
| · | A US$ 106 million increase in “right to use” assets composed of: (i)
a US$31 million increase mainly due to the incorporation of the assets of EGP Américas; (ii) a US$135 million
increase for new investments; (iii) US$36 million depreciation of
the period; and (iv) a US$24 million decrease mainly due to the conversion effects from the functional currencies
of each subsidiary to the US dollar. |
40 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
Liabilities and Equity |
December 2021 |
December 2020 |
Change |
% Change |
(million US$) |
|
|
|
|
|
|
Current Liabilities |
7,796 |
7,277 |
518 |
7.1% |
Non Current Liabilities |
12,133 |
9,323 |
2,811 |
30.1% |
|
|
|
|
|
Total Equity |
15,030 |
10,334 |
4,696 |
45.4% |
attributable to owners of parent company |
12,833 |
8,106 |
4,727 |
58.3% |
attributable to non-controlling interest |
2,197 |
2,228 |
(30) |
(1.4%) |
|
|
|
|
|
Total Liabilities and Equity |
34,959 |
26,934 |
8,025 |
29.8% |
Enel Américas’ total assets
and liabilities as of December 31, 2021 increased by US$8,025 million as compared to December 2020, mainly as a result of:
| | Current Liabilities increased by US$518 million or 7.1%,
mainly explained by: |
| · | A US$ 592 million decrease in other Current Financial Liabilities mainly explained by: (i)
a US$332 million decrease in Enel Américas Holding as a result of credit cancellations totaling US$545 million,
offset by US$213 million new credit acquisitions; (ii) a US$249 million decrease in Enel Distribución Sao Paulo
due to US$559 million credit cancellations, partially offset by US$250 million long-term debt transfers and new credits
totaling US$60 million; (iii) a US$ 103 million decrease as a result of the negative effect due to the devaluation of the functional
currencies of Enel Américas' subsidiaries against the US dollar. All the above is partially offset by the US$83 million
increase in financial liabilities due to the incorporation of balances of EGP Américas companies as of April 1, 2021. |
| · | A US$819 million increase in Commercial Accounts and other current accounts payable mainly
explained by: (i) a US$118 million increase due to the incorporation of the EGP Américas companies into the consolidation
perimeter on April 1; (ii) a US$511 million increase due to higher liabilities for purchases of goods, services and assets in distribution
companies in Brazil; (iii) a US$289 million increase of accounts payable registered by Edesur to be paid to CAMMESA;
(iv) a US$186 million increase of PIS COFINS collected to be returned to third parties in Enel Distribución Rio and
Enel Distribución Goias. All of the above offset by the US$285 million negative conversion effect stemming from
the devaluation of the functional currencies of Enel Américas' subsidiaries against
the US dollar. |
| · | US$359 million increase in Current Accounts Payable to related companies mainly explained by: (i)
US$71 million short-term portion of loans to long-term granted by EFI to distribution companies in Brazil; and (ii) US$
282 million increased balances with companies related to the holding company providing technical, engineering and IT services to EGP
Américas companies recently incorporated as of April 1, 2021, mainly Enel SpA for technical services totaling US$127
million, Enel Green Power SpA with US$112 million for technical and engineering services, and US$43 million with Enel
Global Service for IT services. |
| · | A US$ 56 million decrease of other current provisions explained by a US$ 60 million
decrease in provision of legal claims. |
| · | A US$40 million decrease in current tax liabilities mainly explained by US$21 million lower
tax provisions payable in Codensa and US$26 million in Enel Distribución Ceará. |
| · | A US$20 million increase in other current non-financial liabilities mainly explained by
higher VAT tax debit due at the end of December 31, 2021. |
41 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
| | Non-Current Liabilities increased by US$2,811
million equivalent to 30.1%, a variation
mainly explained by: |
| · | A US$ 1,080 million increase in other non-current financial liabilities (financial debt and derivatives)
mainly explained by: (i) a US$894 million increase from the balances incorporated by the EGP Américas companies;
(ii) a US$441 million increase in debt in Enel Distribución Sao Paulo as a result of obtaining new loans totaling US$691
million partially offset by US$250 million short-term transfers; and (iii) a US$118 million increase in debt in Enel
Distribución Ceará caused by hiring US$190 million of financial obligations partially offset by short-term transfers
of US$72 million. All of the above partially offset by: (i) a US$ 202 million decrease in debt in Enel Distribución
Río as a result of short-term transfers of US$261 million and new loan totaling US$59 million, and (ii) US$164
million negative conversion effect of the devaluation of the functional currencies of Enel Américas' subsidiaries against
the US dollar. |
| · | A US$628 million increase in commercial accounts payable
and other non-current accounts payable mainly explained by higher
PIS COFINS taxes payable in Enel Distribución Goiás totaling US$ 447 million and US$514 million in
Enel Distribución Río. These liabilities represent the obligation to reimburse end clients for taxes recovered (see
explanation of Other non-current non-financial assets in Note 8 of the Financial Statements and page No. 47 of this Press Release).
The foregoing partially offset by: (i) US$102 million negative effect corresponding to the conversion effects due to the devaluation
of the Brazilian real against the US dollar; and (ii) a US$252 million decrease due to the revaluation of liabilities receivable
on behalf of recognized clients in 2020 in Enel Distribución Sao Paulo and Enel Distribución Ceará. |
| · | A US$ 918 million increase in Non-current Accounts Payable to related entities explained by loans
from EFI to Enel Distribución Rio totaling US$312 million, Enel Distribución Goais with US$412 million
and Enel Distribución Ceará with US$91 million. Additionally, EFI loans totaling US$90 million
to EGP Américas companies incorporated as of April 1, 2021. |
| · | A US$266 million increase in Deferred Tax Liabilities. The increase is mainly due to: (i) US$171
million for the revaluation of deferred taxes in Argentine subsidiaries, mainly in Edesur as a result of the rate change implemented
by the government, bringing taxes from 30% to 35%; and (ii) US$88 million from the inclusion of the balances from the incorporation
of the EGP Américas companies as of April 1, 2021. |
| · | A US$201 million decrease in provisions for non-current
benefits to employees mainly explained by: (i) US$174 million
decrease in contributions made during the year; (ii) US$120 million due to the conversion
effect due to the devaluation of local currencies against the US dollar; and (iii) US$31
million for changes in actuarial variables. All of the above offset by a US$111 million increase due to interest accruals on
obligations. |
| | Total Equity increased by US$ 4,696
million equivalent to 45.4% explained by: |
| · | Equity attributable to majority owners increased by US$4,727 million mainly explained by: (i)
US$6,036 million for capital increase from the incorporation of EGP Américas as of April 1, 2021; (ii) a US$741 million
increase in net income for the year; and (iii) a US$10 million equity increase in cash flow coverage reserves. The above partially
offset by a decrease in: (i) US$387 million dividend payment; (ii) a US$882 million decrease due to recognition of conversion
differences associated with investments abroad, and (iii) US$791 million equity decreases due to a decrease in other miscellaneous
reserves. |
42 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
| · | Non-controlling interests decreased by US$30 million
and are mainly explained by: (i) a US$ 535 million decrease due to the payment
of dividends; (ii) a US$ 302 million decrease in the integral results mainly due to conversion differences; and (iii)
a US$ 413 million increase mainly due to reserves associated with hyperinflation in Argentina. These effects must be complemented
by a US$394 million equity increase due to the net income during the period. |
43 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
The development of the main financial
indicators is as follows
Financial Indicator |
Unit |
December 2021 |
December 2020 |
Change |
% Change |
|
|
|
|
|
|
|
Liquidity |
Current liquidity (1) |
Times |
0.91 |
0.85 |
0.06 |
6.7% |
|
Acid ratio test (2) |
Times |
0.84 |
0.78 |
0.05 |
6.7% |
|
Working Capital |
MMUSD |
(733) |
(1,098) |
365 |
(33.2%) |
Leverage |
Leverage (3) |
Times |
1.33 |
1.61 |
(0.28) |
(17.5%) |
|
Short Term Debt (4) |
% |
39.1% |
43.8% |
(4.7%) |
(10.8%) |
|
Long Term Debt (5) |
% |
60.9% |
56.2% |
4.7% |
8.4% |
|
Financial Expenses Coverage (6) |
Times |
4.01 |
5.13 |
(1.12) |
(21.8%) |
Profitability |
Operating Income/Operating Revenues |
% |
16.5% |
17.5% |
(1.1%) |
(6.0%) |
|
ROE (annualized) (7) |
% |
7.1% |
9.1% |
(2.0%) |
(22.2%) |
|
ROA (annualized) (8) |
% |
3.7% |
4.2% |
(0.5%) |
(12.7%) |
(1) It corresponds to the ratio between (i) Current
Assets and (ii) Current Liabilities.
(2) It corresponds to the ratio between (i) Current
Assets net of Inventories and anticipated Expenses and (ii) Current Liabilities.
(3) It corresponds to the ratio between (i) Total Liabilities
and (ii) Total Equity.
(4) It corresponds to the proportion of (i) Current
Liabilities in relation to (ii) Total Liabilities
(5) It corresponds to the proportion of (i) Non-Current
Liabilities in relation to (ii) Total Liabilities.
(6) It corresponds to the ratio between (i) the Gross
Operating Income and (ii) Net financial result of Financial Income.
(7) It corresponds to the ratio between (i) Net Income
attributable to owners at the end of the year as of December 31, 2021 and (ii) the average between Equity attributable to owners at the
beginning and end of the period.
(8) It corresponds to
the ratio between (i) total result at the end of the year as of December 31, 2021 and (ii) the average of total assets at the beginning
of the period and at the end of the period.
- The Company’s Current
liquidity as of December 31, 2021 reached 0.91 times, presenting a 6.7%
increase as compared to the previous year, mainly explained by the
growth of current assets in greater proportion than current liabilities with the incorporation of EGP Américas as of April
1.
- The Company’s Acid
Test as of December 31, 2021 reached 0.84 times, presenting a 6.7% increase as compared to December 31, 2020, also
explained by the incorporation of current assets higher than the current liabilities of EGP Américas.
- The Company’s Working
capital as of December 31, 2021 corresponds to a negative US$733 million value, which reflects an improvement as
compared to the same date of the previous year, where it reached a negative US$1,098 million value.
- The Company’s Leverage
(indebtedness ratio) stood at 1.33 times as of December 31, 2021, which
represents a 17.5% decrease as compared to December 31, 2020, explained by the increase in Dominant Shareholding Equity,
mainly due to the capital increase that occurred on April 1, 2021 to complete the incorporation of
EGP Américas.
- The Hedging of financial
costs as of the period that ended on December 31, 2021 was 4.01 times, 21.8%
lower than the one in the previous year.
- The Return-on-equity
(profitability) index, measured in terms of operating income over operating revenues reached 16.5% as of
December 31, 2021.
44 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
- The Return-on-equity of the
owners of the controlling shareholder reached 7.1%, which represents a 22.2% decrease as compared to previous year’s
indicator, as a result of a decrease in the income attributable of the parent company in 2021 as compared to 2020, and the dominant
equity increase due to the incorporation of EGP Américas.
- The Return-on-assets stood
at 3.7% as of December
31, 2021, which represents a 12.7% decrease as a result of the incorporation of the EGP Américas assets
as of April 1, 2021, added to a decrease in the income during 2021.
45 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
MAIN CASH FLOWS
The Company’s net cash flows were positive
as of December 31, 2021, reaching US$87 million, which represents a US$385 million increase in relation to the previous
year.
The main variables by flows from the operating,
investment and financing activities that explain this increase in net cash flows, as compared to December 2020 are described below:
Net Cash Flow |
December 2021 |
December 2020 |
Change |
% Change |
(million US$) |
|
|
|
|
|
|
From Operating Activities |
2,616 |
2,426 |
190 |
7.8% |
From Investing Activities |
(1,934) |
(1,537) |
(397) |
25.9% |
From Financing Activities |
(595) |
(1,187) |
592 |
(49.9%) |
|
|
|
|
|
Total Net Cash Flow |
87 |
(298) |
385 |
(129.2%) |
Net cash flows from operating activities
reached US$2,616 million as of December 2021, representing a 7.8% increase as compared to December of the previous year.
The variation is explained by a net increase in the Collections categories for operating activities,
mainly in: (i) US$4,967 million higher charges from sales and provision of services; (ii) US$19 million other charges; and
(iii) US$569 million lower charges for other operating activities. The above partially offset by net increase in Payment
Categories mainly by: (i) US$3,488 million higher payments to suppliers for the supply of goods and services; (ii) US$466
million lower charges for other operating activities; (iii) US$193 million higher income tax payments; and (iv) US$80 million
higher other cash outflows.
Cash flows coming from (used in) investment
activities were net outgoings totaling US$1,934 million as of December 2021, which is mainly explained by: (i) US$1,817
million disbursements for the incorporation of plant and equipment properties; (ii) US$1,194
million incorporation of intangible assets; and (iii) US$1,265 million investments over 90 days. These investment cash
outflows were offset by: (i) US$29
million Interest received; (ii) US$1,248 million from the redemption of investments
over 90 days; (iii) US$34 million collections made to related entities net of payments; and (iv) US$1,031 million other
cash inflows of which US$ 1,022 million come from the initial balances of cash and cash equivalents incorporated by the EGPA Companies.
Net cash flows coming from (used in) financing
activities were net outgoings of US$595 million as of December 2021, originated mainly by:
(i) US$2,859 million loan payments and obligations to the public; (ii)
US$963 million dividend payments;(iii) US$445 million payments to related companies;
(iv) US$339 million interest payments; and (v) US$65
million payments of liabilities for financial leases.
This was partially offset by: (i)
US$2,727 million obtained financing; (ii)
US$1,275 million obtained loans from related companies; and (iii) US$74 million other cash inflows and outgoings.
46 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
Below are the disbursements from the Incorporation
of Plant and Equipment Properties and their Depreciation, for the periods ended on December 31, 2021 and
2020.
PROPERTY, PLANTS AND EQUIPMENT INFORMATION BY COMPANY |
|
(millions of US$) |
|
Company |
Payments for additions of Property, plant and equipment |
|
Depreciation |
December 2021 |
December 2020 |
% Change |
|
December 2021 |
December 2020 |
% Change |
|
|
|
|
|
|
|
|
Enel Generación Chocon S.A. |
- |
- |
- |
|
17 |
14 |
21.4% |
Enel Generación Costanera S.A. |
21 |
29 |
(27.6%) |
|
57 |
42 |
35.7% |
Emgesa S.A.E.S.P. |
84 |
86 |
(2.3%) |
|
66 |
66 |
0.0% |
Enel Generación Perú S.A. |
48 |
42 |
14.3% |
|
38 |
49 |
(22.4%) |
Chinango |
4 |
- |
- |
|
3 |
4 |
(25.0%) |
Enel Distribución Goiás (Celg) (*) |
390 |
233 |
67.4% |
|
75 |
67 |
11.9% |
EGP Cachoeira Dourada S.A. |
1 |
1 |
0.0% |
|
11 |
5 |
120.0% |
EGP Volta Grande |
5 |
2 |
150.0% |
|
- |
- |
- |
Enel Generación Fortaleza |
5 |
9 |
(44.4%) |
|
11 |
11 |
0.0% |
Enel Cien S.A. |
2 |
2 |
0.0% |
|
5 |
8 |
(37.5%) |
Enel Distribución Sao Paulo S.A. (Eletropaulo) (*) |
287 |
186 |
54.3% |
|
151 |
159 |
(5.0%) |
Edesur S.A. |
189 |
103 |
83.5% |
|
83 |
74 |
12.2% |
Enel Distribución Perú S.A. |
155 |
127 |
22.0% |
|
58 |
58 |
0.0% |
Enel Distribución Rio (Ampla) (*) |
212 |
149 |
42.3% |
|
85 |
83 |
2.4% |
Enel Distribución Ceara (Coelce) (*) |
191 |
173 |
10.4% |
|
60 |
58 |
3.4% |
Codensa S.A. |
318 |
385 |
(17.4%) |
|
124 |
116 |
6.9% |
Central Dock Sud S.A. |
15 |
7 |
114.3% |
|
32 |
28 |
14.3% |
Enel Generación Piura S.A. |
13 |
8 |
62.5% |
|
10 |
12 |
(16.7%) |
Enel X Brasil |
5 |
3 |
66.7% |
|
(0) |
3 |
(110.0%) |
Enel Green Power Brasil |
763 |
- |
- |
|
65 |
- |
- |
Enel Green Power Colombia |
200 |
- |
- |
|
2 |
- |
- |
Enel Green Power Perú |
24 |
- |
- |
|
8 |
- |
- |
Enel Green Power Centroamérica |
33 |
- |
- |
|
28 |
- |
- |
Holding Enel Americas y Sociedades de Inversión |
47 |
8 |
487.5% |
|
4 |
1 |
339.6% |
|
|
|
|
|
|
|
|
Total |
3,012 |
1,553 |
93.9% |
|
993 |
858 |
15.7% |
(*) Includes intangible assets concessions |
47 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
MAIN
RISKS ASSOCIATED WITH THE ACTIVITY OF ENEL AMÉRICAS S.A. GROUP
The Group’s activities are subject to a broad
set of governmental regulations, and any changes introduced in them might affect their activities, economic situation, and operating income.
The Group’s operative subsidiaries are subject
to a wide range of tariff regulations and other aspects that govern their operations in the countries in which they operate. Consequently,
the introduction of new laws or regulations, such as the modification of laws or regulations currently in effect, could impact their activities,
economic situation, and operating results.
Such new laws or regulations sometimes modify regulatory
aspects that may affect existing entitlements, which, as the case might be, may adversely affect the group’s future results.
The Group’s activities are subject to wide-ranging
environmental regulations that Enel Américas continuously complies with. Eventual modifications introduced to such regulations
could impact its activities, economic situation, and operating income.
Enel Américas and its operative subsidiaries
are subject to environmental regulations, which, among other things, require preparing and submitting Environmental Impact Studies for
projects under study, obtaining licenses, permits and other mandatory authorizations and complying with all the requirements imposed by
such licenses, permits and regulations. Just as with any regulated company, Enel Américas cannot guarantee that:
| | Public authorities will approve such environmental impact studies. |
| | Public opposition will not derive in delays or modifications to any proposed project. |
| | Laws or regulations will not be modified or interpreted in a manner such as to increase expenses or affect
the Group’s operations, plants, or plans. |
The Group’s Commercial activity
has been planned to moderate eventual impacts resulting from changes in the hydrologic conditions.
Enel Américas
Group’s operations include hydroelectric generation and, therefore, they depend on the hydrological conditions that exist at each
moment in the broad geographical areas where the Group’s hydroelectric generation facilities are located. If the hydrological conditions
generate droughts or other conditions that may negatively impact hydroelectric generation, then, the outcome will be adversely affected,
reason why Enel has established -as an essential part of its commercial policy - to refrain from contractually committing 100% of its
total capacity. The electric business, in turn, is also affected by atmospheric conditions such as mean temperatures that condition consumption.
48 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
Depending on weather conditions, differences
may arise in the margins obtained by the business.
The financial situation and the results
of operations may be adversely affected if exposure to interest rate risk, commodities and currency exchange rates are not effectively
managed.
RISK MANAGEMENT
POLICY
The companies that make up the Enel Américas
Group follow the guidelines of the Risk Management Control System (RMCS) established at the Holding level (Enel Spa), which sets the guidelines
for risk management through the respective standards, procedures, systems, etc., to be applied at the different levels of the Companies
in Enel Américas Group, in the processes of identification, analysis, evaluation, treatment and communication of risks that the
business must continuously face. These are approved by the Board of Directors of Enel SpA, which houses a Controls and Risks Committee
which, in turn, supports the Board's assessment and decisions regarding internal controls and risk management system, as well as those
related to the approval of periodic financial statements.
To comply with the above, there is a specific Risk
Management and Control policy within each Company, reviewed and approved at the beginning of each year by the Board of Enel Américas,
observing and applying local requirements in terms of risk culture.
The company seeks protection for all risks that can
affect achieving business objectives. A new risk taxonomy for the entire Enel Group which considers 6 macro categories and 37 sub-categories.
The Enel Group's risk management system considers three
lines of action (defense) to obtain effective and efficient management of risks and controls. Each of these three "lines" plays
a different role within the organization´s broader governance structure (business and internal control areas, acting as the first
line, Risk Control, acting as second line and Internal Audit as the third line of defense). Each line of defense has an obligation to
inform and keep senior management and Directors up to date on risk management, with Senior Administration being informed by the first
and second line of defense and the Board of Directors in turn by the second and third line of defense.
Within each company in the group, the risk management
process is decentralized. Each manager responsible for the operational process in which the risk originates is also responsible for the
treatment and adoption of risk control and mitigation measures.
49 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
Interest Rate Risk
Interest rate fluctuations modify the fair value of
those assets and liabilities that accrue a fixed rate of interest, as well as the future flows of assets and liabilities indexed at a
variable rate of interest.
The aim of managing the interest rate risk is to reach
a debt structure equilibrium that would enable minimizing debt costs while reducing Income Statement volatility.
Depending on the Group’s estimates and on the
objectives of its debt structure, hedging operations are performed by contracting derivatives to mitigate such risks. The instruments
currently used are rate swaps of variable rates to fixed rates.
The comparative structure of the Enel Américas
Group's financial debt according to a fixed and/or protected interest rate on total gross debt, after contracted derivatives, is as follows:
Gross position:
|
12-31-2021
% |
12-31-2020
% |
Fixed Interest Rate |
31% |
38% |
Risk control through specific processes and indicators
allows to limit potential adverse financial impacts while optimizing the debt structure with an adequate degree of flexibility. During
the pandemic, financial markets have been characterized by interest rate volatility, which has been offset by risk mitigation actions
through derivative financial instruments.
Foreign
exchange rate risk
The exchange rate risks correspond, fundamentally,
to the following transactions:
| - | Debt contracted by Group companies denominated in currencies other than those in which their cash flows
are indexed. |
| - | Payments to be made in currencies other than those in which their cash flows are indexed, for material
purchases associated to projects and payment of corporate insurance policy premiums, amongst others. |
| - | Income of the Group’s companies directly linked to the evolution of currencies other than those
of its own cash flows. |
| - | Cash flows from foreign subsidiaries to parent companies in Chile exposed to foreign exchange rate variations. |
To mitigate the exchange rate risk, the hedging policy
of the Enel Américas Group regarding exchange rates is based on cash flows and aims at maintaining a balance between US$-indexed
flows, or local currencies if there are any, and the level of assets and liabilities in such currency. The objective is to minimize the
exposure of cash flows to exchange rate variations.
50 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
The instruments currently used in compliance with the
policy are cross-currency swaps and exchange rate forwards. Similarly, the policy seeks to refinance debt in each company’s operating
currency.
During the first quarter
of 2021, the exchange rate risk management continued in the context of compliance with the risk management policy mentioned above, without
difficulty accessing the derivatives market. During the pandemic, financial markets have been characterized by exchange rate volatility,
which has been offset by risk mitigation actions through derivative financial instruments.
Commodities risk.
The Enel Américas Group might be exposed to
the risk of price variations of certain commodities, primarily through:
| - | Fuel purchases in the process of electric energy generation. |
| - | Purchase and sale of energy carried out in the local markets. |
In order to reduce the risk under extreme drought conditions,
the Group has designed a commercial policy that defines sale commitment levels in line with the capacity of its generating centrals during
a dry year, by including risk mitigation clauses in some contracts with free clients. In the case of regulated clients subject to long-term
tender processes, indexing polynomials are determined in order to reduce commodity exposure.
In consideration of the operational conditions faced
by electricity generation, drought and commodity price volatility in international markets, the Company is continuously reviewing the
convenience of hedging the impact of these price variations on its net income.
As of December 31, 2021, there were no operations to
buy or sell energy futures for the purpose of hedging the procurement portfolio.
As of December 31, 2020, there were no operations to
buy or sell energy futures for the purpose of hedging the procurement portfolio
Thanks to the mitigation strategies implemented, the
Group was able to minimize the effects of commodity price volatility in the results of the fourth quarter of 2021.
Liquidity Risk
The Group maintains a liquidity policy that consists
of contracting long-term credit commitment facilities and temporary financial investments for amounts sufficient to support the forecast
needs in a given period which, in turn, is a function of the overall situation and expectations of the debt and capital markets.
Despite the negative working capital existing at the
end of 2021, the Company is capable of responding to this situation and mitigating the risk with the policy and actions described herein.
51 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
The above-mentioned projected needs include maturities
of net financial debt; namely, after financial derivatives. For additional information regarding the characteristics and the terms and
conditions of such financial debt and financial derivatives see Notes 19 and 22.
As of December 31, 2021, the Enel Américas Group
held a liquidity position of MUS$1,396,253 in cash and other equivalents and MUS$ 1,119,278 in long-term credit lines unconditionally
available. As of December 31, 2020, the Enel Américas Group held a liquidity position of MUS$ 1,506,993 in cash and cash equivalents.
Credit Risk
The Enel Américas Group continually monitors
in depth all credit risks as described below:
Commercial accounts receivable:
In relation to the credit risks of accounts receivable
from commercial activities, this is a risk that has been historically quite limited since the short collection term afforded our clients
prevents significant individual accumulation. The foregoing is applied to both our electricity generation and distribution lines of business.
In our electricity generation line of business, in
certain countries, when confronted to payment defaults it is possible to cut off supply, and almost every contract establishes non-payment
as a cause for contract termination. To that effect, we continuously monitor the credit risk and measure the maximum amounts exposed to
payment risk, which, as said earlier, are limited.
In the case of our electricity distribution companies,
cutting access to electricity, in all cases, is the attribution of our companies in case of payment default on part of our clients, which
is applied in accordance with the regulations in force in each country, which facilitates the process of evaluation and control of credit
risk, which by the way is also limited.
However, the measure of supply cut off due to payment
defaults of vulnerable clients was suspended during the period of the health emergency in the countries in which Enel Américas
operates. In Argentina, in accordance with Decree 311/2020 of March 24, 2020, the activities of supply cut offs continue to be suspended.
The same in Brazil, pursuant to Resolution 878 issued on March 24, 2020, however, to date suspension activities have been resumed in all
4 distributors, including Rio de Janeiro, which returned to carrying out suspensions on July 1, 2021, with the end of Law No. 8,769/20,
but conforming to the ANEEL resolution 928 issued on March 26, 2020 that prohibited to suspend the supply to low-income clients until
September 30, 2021. In Colombia, pursuant to Decrees 417 and 457, issued on March 17, 2020, and in Peru, according to Decree 35-20, of
April 3, 2020. To date, both countries have resumed and maintain service suspension activities as normal.
Regarding the impact of COVID-19, the results of specific
internal analyses did not reveal statistically significant correlations between the main economic indicators (GDP, unemployment rate,
etc.) and solvency.
52 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
Assets of a financial nature:
Investments of cash surpluses are made with both national
and foreign first-class financial entities with limits set for each entity.
Investment banks selection considers those with Investment
Grade rating, considering the three major international rating agencies (Moody’s, S&P and Fitch).
Investments may be guaranteed by treasury bonds of
the countries where the company operates and/or paper issued by first class banks, giving priority to those offering the best returns
(always within the current investment policies).
It should be noted that the downward macroeconomic
scenarios due to the COVID-19 effect did not have significant impacts on the credit quality of the counterparties.
Risk measurement
The Enel Américas Group prepares a Value at
Risk measurement for its own debt positions and financial derivatives, with the purpose of monitoring the risk assumed by the company,
thus circumscribing Income Statement volatility.
The portfolio of the positions included for the purposes
of calculating the present Value at Risk, is comprised of:
- | | Derivatives for debt hedging |
The calculated Value at Risk represents the possible
value variation of the above-described positions portfolio within one quarter with 95% certainty. To that effect we have studied the volatility
of the risk variables that affect the value of the position’s portfolio, which includes:
- | | The USS Libor rate of interest. |
| - | The various currencies in which our companies operate, the habitual local indices
of bank practices. |
- | | The exchange rates of the different currencies implied in the calculation. |
The Value at Risk calculation is based on the extrapolation
of future market value scenarios (one quarter out) of the risk variables based on real observations for the same period (quarter) through
a 5-year period.
The Value at Risk for one quarter with 95% confidence
level, is calculated as the percentile of the most adverse 5% of the possible quarterly variations.
53 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
Considering the scenarios described above, the Risk
Value in a quarter, of the above-mentioned positions, is attributable to MUS$ 559,901.
This value represents the potential increase in the debt and derivatives
portfolio, therefore this value at risk is intrinsically related, among other factors, to the value of the portfolio at the end of each
quarter.
Other risks.
As is common practice in bank loans and capital markets
operations, a portion of Enel Américas' financial debt is subject to cross-default provisions. If certain breaches are not remedied,
they could result in a cross-default and may eventually make certain liabilities of Enel Américas enforceable.
In relation to the credit line under New York State
law, signed in February 2021 and expiring in February 2024, its advance payment could take place after the non-payment – after any
applicable grace period – of debts of Enel Américas, whose individual unpaid capital exceeds the equivalent of US$150 million.
In addition, this credit line contains provisions according to which certain events other than non-payment, in Enel Américas, such
as bankruptcy, insolvency, adverse enforceable court judgments for an amount greater than US$300 million, among others, could cause the
declaration of payment acceleration.
With respect to Yankee bonds issued in 2016, maturing
in 2026, their mandatory prepayment may stem from non-payment – after any applicable grace period – of any individual Enel
Américas debt or any Significant Subsidiary (as contractually defined) with an amount of principal exceeding US$150 million, or
its equivalent in other currencies. While for the specific case of the Yankee bond issued in 1996, maturing in 2026, the advance payment
is triggered only by the default of individual debt for the amount of US $ 30 million, or its equivalent in other currencies, by the Issuer
or Debtor, not referring to its foreign subsidiaries.
Finally, in the case of Enel Américas' local
bonds, the advance payment of these debts is triggered only by non-payment of other debts incurred by the Issuer or Debtor, i.e., Enel
Américas, without reference to its foreign subsidiaries. In this case, the cross default can be triggered where the amount in arrears
exceeds 3% of the Total Consolidated Assets, either in an individual debt or at the aggregate level of debts.
There are no clauses in credit agreements where in
which changes in Enel Américas' corporate or debt classification by risk rating agencies might lead to the obligation to make debt
prepayments.
54 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
BOOK VALUE AND ECONOMIC VALUE OF ASSETS
In relation to the assets of higher importance, the
following should be noted:
Property, plant, and equipment are valued at their
acquisition cost, net of the corresponding cumulative depreciation, and impairment losses. The property, plant, and equipment, net of
their residual value, depreciate by distributing the cost of their different components linearly over the years of the estimated useful
life of the asset, which is the period in which the companies expect to use them. The estimated useful life of the asset is revised periodically.
The goodwill (lower value of investments or commercial
funds) generated in the consolidation exercise represents the excess acquisition cost over the group’s participation in the fair
value of assets and liabilities, including contingent liabilities and any non-controlling shareholdings identifiable in a subsidiary company
as of the date of acquisition. Goodwill is not amortized, but rather, at the closing of each fiscal year it is estimated whether it has
been the subject of any depreciation that might reduce its recoverable value for an amount below its registered net cost, in which case
its value is restated accordingly. (See Note 3.e of the Financial Statements).
Throughout the year and, primarily at its closing date,
an evaluation is performed to determine whether there is any indication that any given asset would have possibly suffered a loss due to
impairment. Should there be such an indication, we estimate the recoverable amount of such asset to determine, as the case might be, the
amount of such impairment. If these are identifiable assets that do not generate independent cash flows, we then estimate the recoverability
of the cash generating unit to which such asset belongs, understanding as such the smallest identifiable group of assets that generates
independent cash inflows.
Foreign-currency-denominated assets are shown at their
rate of exchange at the closing of the period.
Notes and accounts receivable from related companies
are classified according to their short and long-term maturities. Operations adhere to fair conditions like those that prevail in the
market.
In short, assets are valued pursuant to the International
Financial Reporting Standards (IFRS), whose criteria are set forth in Notes No. 2 and 3 of these Enel Américas’ Consolidated
Financial Statements.
55 |
|
PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2021 | |
SIGNATURES
Pursuant to the requirements of
the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
|
|
|
Enel Américas S.A. |
|
|
|
By: /s/ Maurizio Bezzeccheri |
|
-------------------------------------------------- |
|
|
|
Title: Chief Executive Officer |
Date: February 28, 2022
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