Nicola Cotugno, Enel’s Country Manager for Brazil, said: “In the first half of this year Enel Distribuição Ceará’s operational results were affected by adverse weather conditions and the public security issues registered in the state in the beginning of 2019. The financial results were affected by non-recurring items, as mainly due to contingencies and adjustments related to the regulatory review process. We are committed to continuing to invest in the state to speed up new connections, as well as to modernise the distribution network to improve our quality indicators and financial performance.”
Fortaleza, July 30th, 2019 – Enel Distribuição Ceará’s Board of Directors published today the company’s financial and operational results for the first half of 2019.
· Revenues increased mainly due to the average tariff adjustment approved by Brazilian regulator ANEEL in April 2019 (+8.22%), and higher energy distributed on the free market (+10%), as well as the increase of energy sales on the regulated market (+2%). Revenues were also up due to energy sales on the spot market.
· EBITDA decreased mainly due to the non-recurring impact from adjustment on regulatory asset posted in 1Q19, to higher costs of services due to an increase in maintenance activities and initiatives to improve energy bill collection, as well as to additional costs related to provisions for contingencies.
· EBIT decreased reflecting EBITDA and due to higher depreciation and amortisation charges associated to the increase in the asset base resulting from higher investments carried out in the last year.
· Net income decreased reflecting the decline in EBIT.
· Net financial debt increased to finance higher investments carried out in the last 12 months aimed at modernising the distribution network as well as connecting new customers.
· Capex was mainly dedicated to connecting new customers, as well as digitising and modernising the distribution grid.
· Energy sales and transport (distributed energy) increased due to the higher volumes of energy sold on both free market (+10%) and regulated market (2%).
· Regulatory System Average Interruption Duration index (SAIDI) increased, mainly as a result of public security issues registered in the state of Ceará in the beginning of 2019 and an extensive period with higher volume of rain, which affected company’s service performance. System Average Interruption Frequency index (SAIFI) amounted to 5.42 times, which is better than the indexes level required by the regulator (Aneel).
· Energy losses remained in line from July 2018 to June 2019.
Enel S.p.A. provides for the dissemination to the public of regulated information by using SDIR NIS, managed by BIt Market Services, a London Stock Exchange Group's company, with registered office at Milan, Piazza degli Affari, 6. For the storage of regulated information made available to the public, Enel S.p.A. has adhered, as from July 1st, 2015 to the authorized mechanism denominated “NIS-Storage”, available at the address www.emarketstorage.com, managed by the above mentioned BIt Market Services S.p.A. and authorized by CONSOB with the resolution No. 19067 of November 19th, 2014. From May 19th 2014 to June 30th 2015 Enel S.p.A. used the authorized mechanism for the storage of regulated information denominated “1Info”, available at the address www.1info.it, managed by Computershare S.p.A. with registered office in Milan and authorized by CONSOB with resolution No. 18852 of April 9th, 2014