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South America

Sud America

Sud America

Operations

Net electricity generation

Milions of kWh
20182017Change
Thermal22,44125,727(3,286)-12.8%
Hydroelectric36,13533,5972,5387.6%
Wind6,1383,6612,47767.7%
Other sources3,1831,6421,54193.8%
Total net generation67,89764,6273,2705.1%
- of which Argentina13,94914,825(876)-5.9%
- of which Brazil9,8407,1612,67937.4%
- of which Chile20,88520,2316543.2%
- of which Colombia14,05414,766(712)-4.8%
- of which Peru8,9997,4931,50620.1%
- of which other countries1701511912.6%

Net generation in 2018 totaled 67,897 million kWh, an increase of 3,270 million kWh compared with 2017. This increase is mainly attributable to:

  • increased wind power production in Brazil and Peru, due mainly to the start of operations of new plants;
  • increased hydroelectric production, particularly concentrated in Chile, Brazil and Argentina as a result of the more favorable water availability that characterized these countries during the period under review and the acquisition, at the end of 2017, of the Volta Grande plant in Brazil and the start of operations of various plants in Brazil in early 2018;
  • increased solar production in Brazil, Chile and Peru, which also reflects the increase in net efficient capacity.

The reduction in thermal power generation, which was particularly evident in Chile, Argentina and Brazil due to the unavailability of the plants in Tarapacá (Chile), Costanera (Argentina), and Fortaleza (Brazil), was partially offset by an increase in production in Peru.

Contribution to gross thermal generation

Milions of kWh
20182017Change
Fuel oil3161.4%7232.7%(407)-56.3%
Natural gas19,65683.9%21,66981.2%(2,013)-9.3%
Coal2,98612.7%3,13411.8%(148)-4.7%
Other fuels4682.0%1,1444.3%(676)-59.1%
Total23,426100.0%26,670100.0%(3,244)-12.2%

Gross thermal generation in 2018 totaled 23,426 million kWh, a decrease of 3,244 million kWh compared with the previous year. This was essentially due to the decreased use of traditional fuels, particularly in Argentina, Brazil, and Chile

Net efficient generation capacity

MW
at Dec, 31. 2018at Dec, 31. 2019Change
Thermal plants7,7347,773(39)-0.5%
Hydroelectric plants10,0319,980510.5%
Wind farms1,6161,36225418.6%
Other1,6161,42918713.1%
Total net efficient capacity20,99720,5444532.2%
- of which Argentina4,4194,419--
- of which Brazil3,2502,9752759.2%
- of which Chile7,4487,475(27)-0.4%
- of which Colombia3,5833,4671163.3%
- of which Peru2,2972,1581396.4%
- of which other countries-50(50)-

Net efficient generation capacity in 2018 came to 20,997 MW, an increase of 453 MW compared with the previous year, essentially due to the greater installed capacity as a result of capital expenditure by the Group.

The increase in generation capacity depends mainly on the start of operations in Brazil of the Enel Green Power wind farms Boa Vista Eólica SA (30 MW), Enel Green Power Morro do Chapéu Eólica SA (114 MW), and Enel Green Power São Abraão Eólica SA (28 MW), of the photovoltaic solar park Enel Green Power Horizonte MP Solar SA (103 MW), in Peru of the Wayra I wind farm (132 MW) and in Colombia of the El Paso photovoltaic solar plant (86 MW). The 50 MW decrease in other countries was due to the sale in December of Enel Green Power Uruguay SA, which held the Melowind wind farm through the subsidiary Estrellada SA.

Electricity distribution and transport networks

20182017Change
High-voltage lines at year end (km)20,11218,3081,8049.9%
Medium-voltage lines at year end (km)381,214350,37630,8398.8%
Low-voltage lines at year end (km)223,326197,32625,99913.2%
Total electricity distribution network (km)624,653566,01058,64310.4%
Electricity transported on Enel’s distribution network (millions of kWh) (1)117,41290,65526,75729.5%
- of which Argentina17,54817,737(189)-1.1%
- of which Brazil61,31034,87626,43475.8%
- of which Chile16,48516,3181671.0%
- of which Colombia14,02413,7902341.7%
- of which Peru8,0457,9341111.4%

(1) Il dato del 2017 tiene conto di una più puntuale determinazione delle quantità trasportate.

Energy transported in 2018 amounted to 117,412 million kWh, an increase of 26,757 million kWh compared with 2017, concentrated mainly in Brazil as a result of the acquisition of Enel Distribuição São Paulo, a Brazilian electricity distribution company.

Electricity sales

Milions of kWh
20182017Change
Electricity sold by Enel91,07574,67216,40322.0%
- of which Argentina14,51514,877(362)-2.4%
- of which Brazil48,06130,49717,56457.6%
- of which Chile12,80813,232(424)-3.2%
- of which Colombia8,8849,389(505)-5.4%
- of which Peru6,8076,6771301.9%

Electricity sales in 2018 totaled 91,075 million kWh, increasing by 16,403 million kWh compared with the previous year. Similarly to the above, this increase is attributable to the growth in sales in Brazil following the acquisition of Enel Distribuição São Paulo, which was partly offset by reductions in other countries.

Performance

Milions of euro
201820172018-2017
Revenue14,74213,1541,58812.1%
Gross operating margin4,3704,2041663.9%
Operating income2,9762,97060.2%
Capital expenditure2,2463,002(756)-25.2%

The following tables show a breakdown of performance by country in 2018

Revenue

Milions of euro
20182017Change
Argentina1,3231,393(70)-5.0%
Brazil6,5924,7631,82938.4%
Chile3,2553,667(412)-11.2%
Colombia2,2612,1161456.9%
Peru1,3001,202988.2%
Other countries1113(2)-15.4%
Total14,74213,1541,58812.1%

Revenue in 2018 posted an increase of €1,588 million. The rise was primarily attributable to:

  • an increase of €1,829 million in revenue in Brazil, of which €2,076 million due to the acquisition, on June 7, 2018, of Enel Distribuição São Paulo as well as an increase in revenue recognized by Enel Green Power Projetos I, the holder of a thirty-year contract for the Volta Grande hydroelectric plant since September 28, 2017 (€61 million). Compared with the previous year, this increase was partially offset by the reduction in revenue from sales and services of Enel Distribuição Rio (€193 million), Enel Distribuição Goiás (€58 million), Enel Geração Fortaleza (€51 million), and Enel Distribuição Ceará (€55 million), and by adverse exchange rate developments (€728 million); Report on operations 67
  • a decrease of €70 million in revenue in Argentina, essentially due to the highly negative exchange rate effect deriving from the depreciation of the Argentine peso against the euro (€746 million), which was largely offset by revaluation due to hyperinflation (IAS 29) and by the distribution rate increases as a result of the application of ENRE Resolution 64;
  • an increase of €145 million in revenue in Colombia, mainly due to the increase in rates, which was partly offset by adverse exchange rate developments (€97 million);
  • a decrease of €412 million in revenue in Chile, essentially due to the reduction in sales to end users as a result of the shift of customers from the regulated market to the free market (€150 million), the capital gain recognized in the 1st Quarter of 2017 on the sale of Electrogas (€143 million), and adverse exchange rate developments (€94 million); 
  • an increase of €98 million in revenue in Peru, mainly due to greater electricity sales as a result of the increase in demand, which was only partly offset by adverse exchange rate developments (€64 million)

Gross operating margin

Milions of euro
20182017Change
Argentina3442875719.9%
Brazil1,2751,00826726.5%
Chile1,2061,359(153)-11.3%
Colombia1,0381,061(23)-2.2%
Peru497480173.5%
Other countries109111.1%
Total4,3704,2041663.9%

The gross operating margin amounted to €4,370 million, an increase of €166 million (+3.9%) compared with 2017, reflecting:

  • an increase of €267 million in the margin in Brazil, essentially due to the performance in renewables (€95 million, of which €51 million attributable to Enel Green Power Projetos I, consolidated beginning in November 2017), the acquisition of Enel Distribuição São Paulo (€206 million), and the increased margin of Enel Distribuição Goiás (€88 million). These effects were only partially offset by the reduction in margins at Enel Geração Fortaleza (€97 million), due to greater provisioning costs and Enel Distribuição Ceará (€52 million), due to a decrease in revenue from the sale of electricity, as well as adverse exchange rate developments in the amount of €174 million;
  • a decrease of €153 million in the gross operating margin in Chile, which was mainly affected by adverse exchange rate developments (€32 million) and the effect of extraordinary items in 2017, notably the capital gain noted earlier, net of capital losses of €36 million on the abandonment of hydroelectric projects (primarily Neltume and Choshuenco);
  • a decrease of €23 million in the margin in Colombia, essentially attributable to the increase in costs for energy purchases and adverse exchange rate developments;
  • an increase of €17 million in the gross operating margin in Peru, mainly due to the increase in revenue from renewable resources due to the greater production of energy from solar and wind, which was partly offset by higher provisioning costs;
  • an increase of €57 million in the gross operating margin in Argentina, due to the decrease in personnel costs and a reduction in costs for fines following improvements in service quality. These increases were partially offset by adverse exchange rate developments resulting from the depreciation of the Argentine peso against the euro.

Operating income

Milions of euro
20182017Change
Argentina210231(21)-9.1%
Brazil67948319640.6%
Chile8791,027(148)-14.4%
Colombia851890(39)-4.4%
Peru350333175.1%
Other countries76116.7%
Total2,9762,97060.2%

Operating income in 2018 totaled €2,976 million, including €1,394 million in depreciation, amortization and impairment losses (€1,234 million in 2017), an increase of €6 million over the previous year. More specifically, the increase in depreciation, amortization and impairment losses of €160 million reflects the greater depreciation of wind farms and photovoltaic plants operating in Brazil, Peru and Colombia, and changes in the scope of consolidation due to the consolidation, starting in June 2018, of Enel Distribuição São Paulo

Capital expenditure

Milions of euro
20182017Change
Argentina218259(41)-15.8%
Brazil9361,475(539)-36.5%
Chile483543(60)-11.0%
Colombia3973098828.5%
Peru211416(205)-49.3%
Total2,2463,002(756)-25.2%

Capital expenditure came to €2,246 million, down €756 million year on year. Capital expenditure in 2018 refers primarily to work on the distribution networks in Colombia, Argentina, Peru and Brazil, the latter of which attributable, above all, to the newly acquired Enel Distribuição São Paulo. The decrease compared with 2017 is attributable to the completion of a number of wind farms and solar plants in Brazil and Peru.