Operations
Net electricity generation
| Milions of kWh | ||||
|---|---|---|---|---|
| 2018 | 2017 | Change | ||
| Hydroelectric | 2,871 | 2,681 | 190 | 7.1% |
| Wind | 8,413 | 6,920 | 1,493 | 21.6% |
| Other sources | 1,149 | 192 | 957 | - |
| Total net generation | 12,433 | 9,793 | 2,640 | 27.0% |
| - of which United States and Canada | 7,133 | 5,313 | 1,820 | 34.3% |
| - of which Mexico | 2,619 | 2,025 | 594 | 29.3% |
| - of which Panama | 1,808 | 1,528 | 280 | 18.3% |
| - of which other countries | 873 | 927 | (54) | -5.8% |
In 2018, net electricity generation totaled 12,433 million kWh, an increase of 2,640 million kWh from 2017. This increase is attributable to the increase in generation in the United States and Canada (1,820 million kWh) mainly related to wind power (1,753 million kWh) following the start of operations of the Rock Creek, Thunder Ranch and Red Dirt wind farms at the end of 2017. This was accompanied by an increase in quantities produced in Mexico (594 million kWh), predominantly solar (838 million kWh), due to the start of operations of the Villanueva and Don José plants, which was partially offset by the lower quantities produced by wind power (253 million kWh), following the sale of eight wind farms (“Project Kino”), and greater quantities produced by hydroelectric (260 million kWh) and solar plants (20 million kWh) in Panama. These increases were partly offset by the lower quantities produced from hydroelectric sources in Guatemala (40 million kWh) and Costa Rica (14 million kWh).
Net efficient generation capacity
| MW | ||||
|---|---|---|---|---|
| at Dec, 31. 2018 | at Dec, 31. 2019 | Change | ||
| Hydroelectric plants | 623 | 623 | - | - |
| Wind farms | 2,940 | 2,566 | 374 | 14.6% |
| Other | 264 | 344 | (80) | - |
| Total net efficient capacity | 3,827 | 3,533 | 294 | 8.3% |
| - of which United States and Canada | 2,921 | 2,092 | 829 | 39.6% |
| - of which Mexico | 299 | 843 | (544) | -64.5% |
| - of which Panama | 362 | 354 | 8 | 2.3% |
| - of which other countries | 245 | 244 | 1 | 0.4% |
Net efficient capacity for 2018 came to 3,827 MW, an increase of 294 MW compared with the previous year, mainly due to the increase in net efficient power for wind farms in the United States and Canada (802 million MW) related to the new HillTopper, Rattlesnake Creek, Diamond Vista, and High Lonesome plants, partially offset by the decrease in net installed capacity in Mexico following the sale of the eight wind and solar plants there.
Performance
| Milions of euro | ||||
|---|---|---|---|---|
| 2018 | 2017 | Change | ||
| Revenue | 1,438 | 1,187 | 251 | 21.1% |
| Gross operating margin | 708 | 759 | -51 | -6.7% |
| Operating income | 454 | 553 | -99 | -17.9% |
| Capital expenditure | 1,373 (1) | 1,802 (2) | -429 | -23.8% |
(1) Il dato non include 375 milioni di euro riferiti al perimetro classificato come “posseduto per la vendita”.
(2) Il dato non include 325 milioni di euro riferiti al perimetro classificato come “posseduto per la vendita”.
The table below shows performance by geographical area in 2018.
Revenue
| Milions of euro | ||||
|---|---|---|---|---|
| 2018 | 2017 | Change | ||
| United States and Canada | 903 | 716 | 187 | 26.1% |
| Mexico | 297 | 142 | 155 | - |
| Panama | 151 | 149 | 2 | 1.3% |
| Other countries | 87 | 180 | (93) | -51.7% |
| Total | 1,438 | 1,187 | 251 | 21.1% |
Revenue for 2018 came to €1,438 million, up €251 million (21.1%) year on year. The performance was related to the following factors:
- an increase of €187 million in revenue in the United States and Canada, essentially due to greater revenue earned by the Enel X Business Line, in particular by Enel X North America (formerly EnerNOC) (€181 million) and eMotorWerks (€5 million);
- an increase of €155 million in revenue in Mexico, mainly due to the increase in revenue from electricity sales (€61 million) related to the greater quantities produced by solar sources, as described in relation to operations, to revenue for services provided to the eight Mexican project companies, which were partially sold with loss of control on September 30, 2018 (€82 million), and an increase in revenue from the sale of green certificates (€8 million);
- an increase of €2 million in revenue in Panama, mainly due to the greater quantities produced by hydroelectric sources as described in relation to operations;
- a decrease of €93 million in revenue in other countries, mainly due to the indemnities for losses recognized in 2017 related to the Chucas wind farm in Costa Rica, which were granted to the Group by the Instituto Costarricense de Electricidad (ICE).
Gross operating margin
| Milions of euro | ||||
|---|---|---|---|---|
| 2018 | 2017 | Change | ||
| United States and Canada | 395 | 408 | -13 | -3.2% |
| Mexico | 140 | 98 | 42 | 42.9% |
| Panama | 113 | 101 | 12 | 11.9% |
| Other countries | 60 | 152 | -92 | -60.5% |
| Total | 708 | 759 | -51 | -6.7% |
The gross operating margin amounted to €708 million, down €51 million (-6.7%) compared with 2017. The decrease is attributable to the following factors:
- a decrease of €13 million in the margin achieved in the United States and Canada due to an increase in personnel and operating costs;
- an increase of €42 million in the margin in Mexico, which benefited from the increase in volumes produced as described above, which was partially offset by higher operating costs;
- an increase of €12 million in the margin achieved in Panama, attributable to the greater quantities produced and to a reduction in electricity provisioning costs;
- a reduction in the margin posted in other countries, essentially due to the decline in revenue recognized by PH Chucas in reflection of the indemnities received in 2017.
Operating income
| Milions of euro | ||||
|---|---|---|---|---|
| 2018 | 2017 | Change | ||
| United States and Canada | 233 | 293 | (60) | -20.5% |
| Mexico | 94 | 52 | 42 | 80.8% |
| Panama | 98 | 87 | 11 | 12.6% |
| Other countries | 29 | 121 | (92) | -76.0% |
| Total | 454 | 553 | (99) | -17.9% |
Operating income in 2018 amounted to €454 million, a decrease of €99 million, taking account of an increase of €48 million in depreciation, amortization and impairment losses, mainly reflecting greater depreciation relating to the start of operations of new plants in the United States.
Capital expenditure
| Milions of euro | ||||
|---|---|---|---|---|
| 2018 | 2017 | 2018-2017 | ||
| United States and Canada | 1,154 | 1,305 | (151) | -11.6% |
| Mexico | 206 (1) | 454 (2) | (248) | -54.6% |
| Panama | 7 | 10 | (3) | -30.0% |
| Other countries | 6 | 33 | (27) | -81.8% |
| Total | 1,373 | 1,802 | (429) | -23.8% |
(1) Il dato non include 375 milioni di euro riferiti al perimetro classificato come “posseduto per la vendita”.
(2) Il dato non include 325 milioni di euro riferiti al perimetro classificato come “posseduto per la vendita”.
Capital expenditure came to €1,373 million in 2018, down €429 million year on year. Capital expenditure in 2018 mainly refers to the HillTopper (€229 million), Rattlesnake Creek (€332 million), Diamond Vista (€320 million) and High Lonesome (€81 million) wind farms in the United States and to the Dolores (€69 million) and Parque Amistad (€90 million) wind farms and the Magdalena photovoltaic plant (€38 million) in Mexico.
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