CFE Lost 78,920 Million Pesos During 2020
The company attributed the negative result to the drop in energy demand due to the Covid-19 health emergency and the weakness of the peso against the dollar.
The Federal Electricity Commission (CFE) registers losses of 78,920 million pesos (mp) during 2020.
This result contrasts with the profits obtained by the state company in 2019 for 25,673 million pesos, according to its report of financial results for the fourth quarter, sent to the Mexican Stock Exchange.
The company headed by Manuel Bartlett Diaz attributed the negative result to the effects of the Sars-CoV-2 pandemic and the destruction of energy demand. He also linked it to the weakness of the peso against the dollar of 5.9%, which went from 18.84 to 19.95 pesos for each green bill.
CFE‘s foreign currency position caused a loss due to the weakness of the peso of 31,770 million pesos, hitting the comprehensive financing result, which went from 90,314 million this year from 27,965 million in 2019.
“This effect of the exchange rate fluctuation valuation in the comprehensive financing result reverses the operating profit and originates a net loss of 78,920 million pesos,” he explained.
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The company’s revenues totaled 503,636 million pesos, a reduction of 10% compared to the figure observed in 2019.
This decline is due to a lower energy demand of 12,244 GigaWatts-hour caused by lower electricity sales to the industrial sector due to the Covid-19 crisis, despite the increase in electricity consumption of Mexican homes that were confined.
CFE’s operating costs totaled 484,197 million pesos, which represented an increase of 4,829 million pesos, equivalent to 1%, compared to the same period of the previous year.
CFE’s total debt increased by 8%, as a result of the
revaluation of the lease liability and the debt contracted in dollars, due to the depreciation of the peso against the dollar by 5.9% at the end of December 2020, according to the financial document.
CFE Lost 78,920 Million Pesos During 2020 - /10