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Latin America

Latin america

Performance Latin America

Operations

Net electricity generation

Millions of kWh
20162015 restatedChange
Thermal26,26826,252160.1%
Hydroelectric32,61934,909(2,290)-6.6%
Wind2,4511,84260933.1%
Other sources827268559-
Total62,16563,271(1,106)-1.7%
- of which Argentina 13,124 15,204 (2,080) -13.7%
- of which Brazil 5,474 5,690 (216) -3.8%
- of which Chile 19,728 19,822 (94) -0.5%
- of which Colombia 14,952 13,705 1,247 9.1%
- of which Peru 8,698 8,801 (103) -1.2%
- of which other countries 189 49 140 -

In 2016, net electricity generation totaled 62,165 million kWh, a reduction of 1,106 million kWh from 2015. The significant decrease in Argentina, related mainly to the production of combined-cycle plants, was partially offset by the increase in power generation in Colombia, which benefitted significantly from the start of operations of the El Quimbo hydroelectric plant in the second half of 2015. In terms of the technology mix, there was a sharp decline in hydroelectric generation due mainly to the drought conditions brought on by El Niño, which was partially offset by the increase in production from other renewables, benefitting from increases in capacity, particularly in Chile and Brazil.

Contribution to gross thermal generation

Millions of kWh
20162015 restatedChange
Fuel oil1,7236.3%1,6436.0%804.9%
Natural gas18,93369.5%20,36774.1%(1,434)-7.0%
Coal3,97014.6%3,15611.5%81425.8%
Other fuels2,6289.6%2,3088.4%32013.9%
Total27,254100.0%27,474100.0%(220)-0.8%

Gross thermal generation in 2016 totaled 27,254 million kWh, a decrease of 220 million kWh compared with the previous year. This was essentially related to the decreased use of natural gas, which more than offset the increase in other types of fuel.

Net efficient generation capacity

MW
at Dec. 31, 2016at Dec. 31, 2015
restated
Change
Thermal plants7,7297,716130.2%
Hydroelectric plants9,5909,4021882.0%
Wind farms1,09286822425.8%
Other504187317-
Total18,91518,1737424.1%
- of which Argentina 4,419 4,384 35 0.8%
- of which Brazil 1,621 1,481 140 9.5%
- of which Chile 7,434 6,892 542 7.9%
- of which Colombia 3,457 3,407 50 1.5%
- of which Peru 1,934 1,959 (25) -1.3%
- of which other countries 50 50 --

Net efficient capacity amounted to 18,915 MW at the end of 2016, an increase of 742 MW on the previous year, essentially due to the expansion of installed capacity in Brazil and Chile, the latter of which related to solar plants.

Electricity distribution and transport networks

20162015 restatedChange
High-voltage lines at year end (km)12,33912,1731661.4%
Medium-voltage lines at year end (km)159,961157,0772,8841.8%
Low-voltage lines at year end (km)149,846147,2462,6001.8%
Total electricity distribution network (km) 322,146 316,496 5,650 1.8%
Electricity transported on Enel’s distribution network (millions of kWh) (1) 78,525 78,530 (5) -
- of which Argentina 18,493 18,492 1 -
- of which Brazil 22,809 22,776 33 0.1%
- of which Chile 15,809 15,657 152 1.0%
- of which Colombia 13,632 13,946 (314) -2.3%
- of which Peru 7,782 7,659 123 1.6%

(1) Il dato del 2015 tiene conto di una più puntuale determinazione delle quantità trasportate.

Energy transported in 2016 came to 78,525 million kWh, a decline of 5 million kWh compared with 2015.

Electricity sales

Millions of kWh
20162015 restatedChange
Free market 6,124 6,062 62 1.0%
Regulated market 56,966 57,370 (404) -0.7%
Total 63,090 63,432 (342) -0.5%
- of which Argentina 15,654 15,450 204 1.3%
- of which Brazil 19,128 19,506 (378) -1.9%
- of which Chile 13,067 13,203 (136) -1.0%
- of which Colombia 8,505 8,463 42 0.5%
- of which Peru 6,736 6,810 (74) -1.1%

Electricity sales in 2016 totaled 63,090 million kWh, decreasing by 342 million kWh compared with the previous year.
This change was mainly due to decreased sales in Brazil and Chile.

Performance

Millions of euro
20162015 restatedChange
Revenue10,76810,828(60)-0.6%
Gross operating margin3,5563,3062507.6%
Operating income2,1632,320(157)-6.8%
Capital expenditure3,0692,9371324.5%

The following tables show a breakdown of performance by country in 2016.

Revenue

Millions of euro
20162015 restatedChange
Argentina1,1631,127363.2%
Brazil2,6012,868(267)-9.3%
Chile3,7033,4292748.0%
Colombia2,0542,157(103)-4.8%
Peru1,2361,243(7)-0.6%
Other countries1147-
Total10,76810,828(60)-0.6%

Revenue for 2016 posted a decrease of €60 million due mainly to:

  • an increase of €274 million in revenue in Chile, largely due to:
    • the gain on the sale of the 20% stake in GNL Quintero (€171 million);
    • the increase in distribution and sale rates and in quantities transported;
    • the unfavorable trend in the exchange rate between the euro and the Chilean peso (€100 million);
  • an increase of €36 million in revenue in Argentina, esReport on operations 63 sentially due to the effects of the rate reform introduced by the Argentine Government with Resolución ENRE 1/2016, which led to a significant increase in sales rates. This effect was largely offset by the recognition, in 2015, of a contribution for a lack of rate increases following Resolución 32/2015 (€236 million) and the effect of markedly adverse exchange rate developments due to the weakening of the Argentine peso against the euro (€690 million);
  • a €267 million reduction in revenue in Brazil due to the weakening of the local currency against the euro (€108 million) and following regulatory changes concerning the recognition of sector income and expense items (Conta de Compensação de Variação de Valores de Itens da ”Parcela A” - CVA). These effects were partially offset by an average increase in prices following the revision of rates in December 2015 and March 2016;
  • a decrease of €103 million in revenue in Colombia, mainly attributable to the change in the exchange rate with the Colombian peso (€221 million), which was only partially offset by an increase in quantities generated and sold;
  • a decrease of €7 million in revenue in Peru, mainly due to the adverse trend in exchange rates, which more than offset the greater quantities transported and the increase in unit sales prices.

Gross operating margin

Millions of euro
20162015 restatedChange
Argentina276279(3)-1.1%
Brazil66953613324.8%
Chile1,2041,03516916.3%
Colombia980970101.0%
Peru419484(65)-13.4%
Other countries826-
Total3,5563,3062507.6%

The gross operating margin amounted to €3,556 million, an increase of €250 million (+7.6%) compared with 2015, reflecting:

  • an increase of €169 million in gross operating margin in Chile, which reflects the capital gain noted above and the improved margin on sales, the effects of which were partially mitigated by the recognition of losses related to the abandonment of five hydroelectric projects in the country (including Puelo and Futaleufú) for a total value of €166 million;
  • an increase of €133 million in the margin in Brazil due, above all, to the regulatory changes during the year, which more than offset exchange rate effects (of a negative €28 million);
  • an increase of €10 million in gross operating margin in Colombia, where the positive impact of the increase in quantities generated and sold was almost entirely offset by exchange rate effects (a negative €106 million);
  • a decrease of €3 million in gross operating margin in Argentina due mainly to a change in the regulatory mechanism concerning the two periods under review, which was largely offset by the adverse trend in exchange rates (equal to €164 million);
  • a €65 million decrease in gross operating margin in Peru due mainly to the loss of €30 million related to abandoning the hydroelectric projects in Curibamba and Marañon and the provisions allocated, in the amount of €37 million, for failing to meet the terms of the electricity-supply agreement with Electroperu.

Operating income

Millions of euro
20162015 restatedChange
Argentina208210(2)-1.0%
Brazil2501708047.1%
Chile610778(168)-21.6%
Colombia801813(12)-1.5%
Peru290347(57)-16.4%
Other countries422-
Total2,1632,320(157)-6.8%

Operating income in 2016 totaled €2,163 million, including €1,393 million in depreciation, amortization and impairment losses (€986 million in 2015), a decrease of €157 million compared with the previous year. This change is reflected in the €406 million increase in depreciation, amortization and impairment, which is essentially related to:

  • recognition of impairment on certain rights for the use of water resources in the rivers Neltume and Choshuenco, which was recognized due to uncertainty surrounding continuation of the projects due, in part, to certain legal and procedural restrictions, for a total of €311 million;
  • an increase of €95 million in writedowns of trade receivables, mainly in Brazil and Colombia.

Capital expenditure

Millions of euro
20162015 restatedChange
Argentina232350(118)-33.7%
Brazil1,43479164381.3%
Chile8781,018(140)-13.8%
Colombia266540(274)-50.7%
Peru2581857339.5%
Other countries153(52)-98.1%
Total3,0692,9371324.5%

Capital expenditure came to €3,069 million, up €132 million year on year. In particular, capital expenditure in 2016 concerned:

  • work to improve the distribution network in Brazil;
  • the thermal power plants of Gas Atacama in Chile and Costanera in Argentina;
  • the extension and improvement of the distribution network in Peru.