M&A snapshot: Enel Generación Perú

Enel Perú’s sale of its interest in Enel Generación Perú (EGP) to Actis-controlled Niagara Energy involved one of the country’s principal power producers.

To learn more about EGP, BNamericas looks at the company’s profile and numbers.

EGP’s capacity stands at 2,076MW or 15% of Peru’s installed capacity of 13,847MW, and in 2023 it was the third largest generator accounting for 14% of the 58.4TWh produced last year, information from grid coordinator COES shows.

Kallpa and Engie represented 19.5% and 15% of electricity output, respectively.

The bulk of EGP’s plants are thermal (888.6MW) and hydro (795.4MW), and the balance from the 144.5MW Rubí and 115MW Clemesí solar parks and the 132.3MW Wayra wind farm.

Clemesí was the latest addition with the start of commercial operations in March, meanwhile a 177MW expansion of Wayra is in the ramp up phase.

The company’s early development pipeline includes solar projects Rubí IV (323MW) and Quyllur (502MW) and wind project Taita (61.6MW).

FINANCIALS

In the first quarter, EGP revenue grew 19.6% to 634mn soles (US$171mn) on higher sales to power distributors and free clients, according to company results.

Dispatch to regulated and free users rose 26% and 18%, respectively, to 274GWh and 196GWh.

The bottom line was up 6.5% to 215mn soles.

EGP’s debt at end-March totaled 1.55bn soles, of which 1.03bn soles corresponds to long-term financing contracts with the European Investment Bank and IDB, a bank promissory note for 466mn soles and a bond equivalent to 37.6mn soles issued under a third corporate bond program.

In their latest reports for EGP, Apoyo & Asociados and Pacific Credit Ratings (PCR) maintained their ratings with stable outlooks.

Apoyo kept its bond and share ratings at ‘AAA(pe)’ and ‘1ª(pe)’ and PCR confirmed its bond and share ratings at ‘peAAA’ and ‘pePCN1’.

For Apoyo, its ratings “are based mainly on the company's comfortable level of capitalization, its generation capacity at low costs and its diversification of energy sources, which guarantees a constant presence in the dispatch of electrical energy.”

PCR’s decision “is based on the trajectory and solid positioning of the company as one of the main generating companies in the country, with a diversified client portfolio, long-term supply contracts and different energy sources that have allowed it to maintain adequate profit margins.”

EGP plants (Source: EGP)