CFE Profits Plummet 94% in 1Q24

CFE reported a  94% drop in profits during 1Q24 compared to the same last year. The Mexican energy company’s profit plummeted to  MX$1.869 billion, a stark contrast to the MX$32.113 billion reported in 2023.

The company cited factors such as the cost of sales, debt, and taxes on income as contributors to the dilution of its revenues, which reached MX$147.750 billion, marking a marginal setback of 0.6%. CFE attributed this reduction to decreased demand in fuel sales to private companies and for natural gas transportation services.

"The profits and operational savings generated through different measures and policies of rationality, efficiency, and financial strategy are being allocated to strengthen the Investment Program 2023-2024," CFE stated in its financial report.

Regarding operational costs, CFE noted stabilization in fuel prices between 2023 and the early of 2024.

CFE anticipates that gas pipeline usage will soar to 84% of its capacity by 2025, as per its annual financial and operational results report. The company highlighted a significant increase in pipeline utilization, from 25% in 2018 to 42% last year, with a target of 84% by 2025.

The company celebrated achieving a "historic figure" of 99.43% electrification coverage through investments totaling MX$3.328 billion. These investments facilitated 4,648 projects benefiting 300,735 inhabitants across 3,482 locations nationwide.

As of Mar. 31, 2024, the electricity transmission infrastructure boasted 110,696km in transmission lines and 2,311 substations.

In its presentation to investors, CFE's subsidiary CFECapital revealed that energy transformation capacity surged by 364 megavoltamperes (MWa) compared to the previous year. Additionally, the Availability Index of the National Transmission Network (RNT) surpassed the minimum required value, reaching an impressive 99.54%.