Mexico's CFE Reports the Financial Results of the Second Quarter of 2018

This press release from Mexico's CFE was published using an automatic translation system.

The Federal Electricity Commission (CFE) reports that during the second quarter of 2018 there was a decrease of 9% in the average price to final consumers, derived from the implementation of a preliminary pricing methodology by the Energy Regulatory Commission (CRE). ) that will be adjusted during the year. The aforementioned resulted in lower income from the sale of electricity for 7,332 million pesos compared to the same period of the previous year.

Total revenues in the second quarter of 2018 were 124,335 million pesos. This represents an increase of 10,209 million pesos, that is 9% higher, compared to the revenues reported in the same period of 2017; This is because the decrease in income from the sale of energy derived from the new tariff scheme implemented in December 2017 by the CFE was partially offset by the increase in revenues from the sale of fuels to third parties, as part of the CFE's effort to diversify your business portfolio.

On the other hand, operating costs in the second quarter of 2018 increased 15% over the same period of 2017. This was mainly due to higher fuel sales costs to third parties associated with the increase in sales.

During the second quarter of 2018, the operating income of the CFE, that is, the one obtained by calculating sales less operating costs, was negative by 9.535 billion pesos.

This result includes components not directly associated with the dispatch of electricity, such as depreciation, which amounted to 15,180 million pesos, and labor obligations costs of 2,972 million pesos.

In turn, net financial income was observed for 4,115 million pesos, that is, a favorable variation of 141% with respect to the same period of the previous year. Likewise, there was an exchange loss of 26.441 billion pesos, as a result of the change in the exchange rate in the quarter, going from 18.3268 to 20.0553; while the previous year had an exchange profit of 12.721 million pesos. As a result, a financial cost of 22,326 million pesos was observed in the second quarter of 2018.

On the other hand, in the second quarter of 2018 deferred taxes were recorded for 3,403 million pesos.

Thus, in the second quarter of 2018 the net result was -28,458 million pesos, lower than that observed in the same period of the previous year.