CFE net loss increased 242% to $50,671 million

There has been a greater demand for electricity explained by the relocation of production plants in Mexico to strengthen their participation in global production chains (nearshoring).

CFE

The Federal Electricity Commission (CFE) had a net loss of 50,671 million pesos in the third quarter, which increased by 242% in relation to the loss of 14,780 million pesos the previous year, derived from fuel expenses that raised their prices considerably, affecting the generation costs of the state company.

The company’s revenues in this period totaled 172,762 million pesos, which even implied an increase of 16% in relation to those obtained in the same period of the previous year. However, the state-owned productive company reported an operating loss of 12,731 million pesos, which compares with the profit of 5,566 million pesos reported in the third quarter of the previous year.

Regarding the annual accumulated, its net loss was 50,719 million pesos in the accumulated of the first three quarters of the year, an amount higher by 75.8% compared to the figure registered in 2021 of 28,854 million pesos.

Meanwhile, the accumulated income of the CFE as of the third quarter of 2022 amounts to 470,428 million pesos, which means an increase of 8.2% compared to the third quarter of 2021, equivalent to 35,615 million.

“This result is mainly explained by the increase in Revenues from the sale of energy by 13.5% (39,462 million pesos) and other revenues, such as the sale of natural gas by 45.4% (8,348 million), in relation to the same period of the previous year, which shows the recovery of the Mexican economy in recent months after overcoming the effects of the SARS-CoV2 virus pandemic, as well as the greater demand for electricity explained by the relocation of production plants in Mexico to strengthen their participation in global production chains (nearshoring), given the advantage of the country’s close location to the United States of America, the competitiveness of Mexican workers and access to reliable, efficient, affordable and sustainable sources of the main inputs , asserted the CFE.

“The foregoing is confirmed by the increase in electricity consumption by type of user in the third quarter of 2022, with those corresponding to the commercial, industrial and agricultural sectors registering the largest increases in the third quarter of 2022, with rates of 7.0 %, 5.4% and 4.8%, respectively, with respect to the volume registered in the same period of the previous year”.

At the end of September 2022, the CFE’s operating costs totaled 473,566 million pesos, which meant an increase of 12.1% compared to the same period of the previous year. This is mainly due to the higher spending on fuels that the productive company has made from the increase in prices observed due to the reduction in exports of natural gas, oil products and coal from Russia to the international market, in the face of the conflict it is holding against Ukraine. .

The CFE explained that the United States has positioned itself as an alternate supplier, with an increase in prices in the CFE’s supply zone. With this, the operating result registers a loss of 3,138 million pesos at the end of September 2022, which contrasts with the profit of 12,358 million pesos, in the previous period.

karol.garcia@eleconomista.mx