During the 2Q24 conference call, CFE management highlighted several key points about the company’s financial and operational performance. It was mentioned that the number of users had reached 48.6 million, reflecting a growth of 1.5% YoY, and that the population coverage remains at 99.5%, ensuring nearly universal service in Mexico. CFE reported an energy generation of 131,023 GW/h and a total installed capacity of 70,392 MW. Additionally, it was reported that the demand for energy in 2Q climbed by 3.1% YoY, mainly as a result of nearshoring-related industrial activity and a rise in tourism in the southern states. Meteorological variables, however, caused the central region to lag.
The drop in commodities prices and the stabilisation of natural gas prices offset increases in other costs. Regarding total revenues, the segment that saw the most growth in 2Q was subsidy income, which currently represents 15% of total revenues and grew by 6.5% YoY. This policy is shared between the government and CFE is expected to continue. Mexican President-Elect (Claudia Sheinbaum) mentioned that President AMLO would pass an initiative to change the status of CFE (and Pemex) from a “productive company” with some corporate governance autonomy and some budgetary independence to an entity with no independence (i.e., a public company).