IEnova Announces Positive 3Q20 Results
Energy company IEnova, a Mexican Sempra Energy subsidiary focused on developing, constructing and operating major infrastructure in Mexico, has announced its financial results for 3Q20. The results show plenty of good news for IEnova.
The company’s adjusted EBITDA for 3Q20 is US$275 million, a 19 percent increase compared to 3Q19. Its net profit expanded 33 percent compared to the same quarter last year. “In these challenging times, we announced strong financial results during 3Q20. Despite the current environment, we maintain our goal of reaching of forecast for adjusted EBITDA in 2020. Additionally, we completed our second issuing of international senior notes worth US$800 million. With this, we achieved the lowest rate in 30 years for a private energy coupon in Latin America. Its success demonstrates investor confidence in IEnova's resilient business model. We remain committed to the health and safety of our collaborators. Through safe and reliable operations, we continue promoting the economic development of Mexico,” said Tania Ortiz, Director of IEnova.
The increase in US$44 million occurred mainly because of the South of Texas-Tuxpan gas pipeline that became operational, as well as better operating results from the Termoeléctrica de Mexicali power plant. Regarding the latter, IEnova stated that it obtained revenues of US$93.8 million in its electricity business segment, US$3.5 million more than the US$90.6 in 3Q20. Mexicali is entirely responsible for this increase, as it also offsets the lower performance of the company’s Ventika wind farm in Nuevo Leon. Within the natural gas segment, the company received lower revenues, 4.9 percent less compared to 2019. This can be explained due to the investment IEnova made in the Guaymas-El Oro gas pipeline.
In terms of investment, IEnova took a sparser approach compared to last year, by investing US$98 million now compared to the US$182.2 million in 3Q20. In an interview with MBN, Ortiz explained that the pandemic is the main factor spurring this approach. “We have to be quite mindful of our financial condition to ensure we maintain our credit rating and have strong liquidity. As always, we will have to be disciplined in our development but will continue this process. Going back to the basics is the name of the game. Our commitment to Mexico remains as strong as ever, regardless of the challenges,” she said.