Today IEnova is considered one of the main leaders in the energy sector, with activities in the development, construction, and operation of energy infrastructure in Mexico. It is not only the first private energy company to be listed on the Mexican stock exchange, but is also the only energy company to be part of the S&P/BMV Total Mexico ESG Index (former Mexican Stock Exchange Sustainability Index).
As of October 15, Infraestructura Energética Nova (IEnova) was no longer listed on the Mexican Stock Exchange (BMV). This was a result of the plan made in December 2020 in which its parent company (Sempra Energy) proposed to acquire all its public stocks.
On May 28th, 2021, the Company announced that the exchange offer launched by Sempra on April 26th, 2021 to acquire all of the issued and outstanding ordinary shares of IEnova not owned directly or indirectly by Sempra (“IEnova Public Shares”) in exchange for shares of Sempra common stock, which was settled through S.D. Indeval, Institución para el Depósito de Valores, S.A. de C.V. at an exchange ratio of 0.0323 shares of Sempra's common stock for each IEnova Public Share.
Before leaving the Mexican stock exchange, the firm reported strong results.
In the second quarter of 2021 the firm’s revenues amounted to 408.6 million dollars, increasing by 48% in comparison to the same quarter last year when it reached $276.4 million. This improvement represents an increase of $184.6 million, mainly due to higher revenues in some of their plants. This period was accompanied by the start of operations of Don Diego, Border, Solar, and the Veracruz Terminal, the consolidation of Energia Sierra Juarez after the acquisition of the remaining 50% interest and higher revenues from the gas segment and its thermoelectric located in Mexicali. Likewise, the accumulated 6M revenues presented an improvement, going from $589.6 million to 774.2 million, representing an increase of 31%.
In the same way, adjusted EBITDA presented an advance, passing from 250.4 million in the same quarter last year to 280.2 million in 2Q21. This increase represented a year-over-year growth of 12%. This improvement is mostly explained as the revenue’s improvement by the consolidation of Energía Sierra Juarez, the start of operations in some new installations, and a higher margin at the gas segment. As can be expected, adjusted EBITDA for the semester also recorded an improvement, rising by 8% vis-á-vis 2Q20.
The main difference between Adjusted EBITDA and EBITDA is that the former adds the income received from joint ventures.
Although the previous concepts presented an advance, net income experienced a reduction in a year-over-year comparison. In the second quarter of 2021, net income reached a total of $121.3 million compared with $126.2 million in the same period of 2020, 4.9 million lower than its counterpart. The decrease is mainly explained by the non-cash exchange rate effects and higher depreciation, offset by IEnova Adjusted EBITDA drivers mentioned above. On the other hand, accumulated 6M net income did experience an improvement, going from $172.6 million in the second quarter of 2020 to $231.8 million in 2Q21. Though accumulated EBITDA presented better results, it was also affected by depreciation and higher finance costs.
In its balance sheet, the firm reported the following figures:
As of June 30, total assets ended up at 10.8 billion dollars, rising by 390 million compared to December 31, 2020. This increase represents a 3.7% growth. In the same way, total liabilities also thrived, passing from USD 5.3 billion to 5.4 billion, an increase of 2.3%.
The company ended the second quarter with $166.2 million of cash, including restricted cash and short-term investments. Furthermore, the company had approximately $1.8 billion of liquidity, including cash and available committed credit lines.
Despite the fact that IEnova is no longer on the Mexican stock exchange, no major changes are expected.
