Enel Distribución: net debt increased 37.4% in 1H 2020 to finance investements and client support programs

Lima, July 27^th, 2020. Today, Enel Distribución Perú S.A.A. published its financial and operating results for the first half of 2020.

“Since the health emergency began, we have made a commitment to guarantee the continuity of the electrical service for our clients and to maintain our level of investments. For this reason, we decided to access new funds that will allow us to comply with the payments chain to our suppliers and workers, who make it possible for us to continue distributing quality energy, and to grant finance to our clients to help them pay their energy bills in this difficult context for all of us,” said José Manuel Revuelta, Country Manager of Enel Perú. "We will continue to act along these lines because we are convinced that only by working together can we overcome this situation," he added.

MAIN FINANCIAL RESULTS

(Millions of Peruvian Soles)

• REVENUES: decreased due to the reduction in energy sales (-11.6%) due to lower demand from free and regulated medium-voltage customers, reflecting the slowdown in economic activity caused by the COVID-19 pandemic. This fact was partially offset by a higher energy unit margin (+6.8%).
• EBITDA: decreased due to the lower gross profit of 50.1 million PEN (-11.5%), as a result of lower revenues, which was partially offset by a lower purchase of energy equivalent to 30.4 million PEN (-2.7%). This lower expense in energy purchases is explained by a lower physical purchase of 10.7% and a higher average purchase price of 8.2% caused by indexation, in comparison to the previous period.
• NET INCOME: decreased considerably compared to the first half of 2019 due to lower EBITDA, higher amortizations by 11.4% (10.4 million PEN) associated with the implementation of investment plans in recent years, and a lower financial result of 18.8% (7.5 million PEN). These effects were partially offset by the 17.2% decrease in income tax (15.5 million PEN), due to a lower taxable base.
• NET DEBT: it increased by 526 million PEN (+37.4%), mainly due to the financing of the investment plan, to the continuity of the payments chain to suppliers and workers, and to the support programs provided to our clients for the payment of electrical bills. The company maintains patrimonial solidity and a robust financial profile, which have allowed it to secure electricity supply during the health emergency due to COVID-19, and to support the economy of affected households and companies. It also has financing tools within the group that allow it to access liquidity in line with regulation, as well as the availability of committed bank lines and access to the capital market.
• CAPEX: decreased by 37 million PEN compared to the first half of 2019, due to temporary difficulties in the normal execution of operations as a consequence of the health emergency. It should be noted that, in this emergency context, the electricity supply has continued to operate normally, in line with our objective of ensuring the quality and continuity of service to our customers.

MAIN OPERATING RESULTS

• ENERGY DISTRIBUTION: decreased by 11.6%, mainly due to lower energy consumption by free and regulated medium-voltage customers, given the slowdown in economic activity associated with the health emergency. These clients respond mainly to industrial and economic activities of various kinds, which operate in the Enel Distribución Perú concession area.
• CUSTOMERS: increased by 0.7% compared to the previous period, mainly due to new residential connections (low-voltage regulated customers) as a result of organic population growth.