Operations

Net electricity generation

Millions of kWh
20172016Change
Hydroelectric 2,681 2,837 (156) -5,50%
Geothermal - 362 (362) -
Wind 6,920 9,007 (2,087) -23,20%
Other sources 192 62 130 -
Total net  generation 9,793 12,268 (2,475) -20,20%
- of which United States and Canada 5,313 8,628 (3,315) -38,40%
- of which Mexico 2,025 1,781 244 13,70%
- of which Panama 1,528 1,367 161 11,80%
- of which other countries 927 492 435 88,40%

In 2017, net electricity generation totaled 9,793 million kWh, a decrease of 2,475 million kWh from 2016. This decrease can be attributed to the decline in output in the United States and Canada (-3,315 million kWh) as a result of a decrease in wind generation (-2,240 million kWh), largely owing to the deconsolidation of the EGPNA REP plants. This factor was partly offset by an increase in output in Mexico (+244 million kWh), thanks to the entry into service of the Vientos del Altiplano and Palo Alto wind plants, and greater generation from hydroelectric plants in Panama (+120 million kWh), Guatemala (+240 million kWh) and Costa Rica (+200 million kWh).

Net efficient generation capacity

MW
al 31.12.2017 al 31.12.2016Change
Hydroelectric plants 623 630 (7) -1.10%
Wind farms 2,566 2,018 548 27.20%
Other 344 144 (200) -
Total net efficient capacity 3,533 2,792 741 26.50%
- of which United States and Canada 2,092 1,495 597 39.90%
- of which Mexico 843 728 115 15.80%
- of which Panama 354 325 29 8.90%
- of which other countries 244 244 - -

Net efficient generation capacity in 2017 amounted to 3,533 MW, an increase of 741 MW on the previous year, essentially reflecting the increase in net installed capacity of wind plants in the United States and Canada (+600 MW) as a result of the increased net capacity at the new Rattlesnake Creek, Thunder Ranch and Red Dirt plants, partly offset by the disposal of the Caney River and Rocky Ridge facilities. A further increase in net efficient capacity was also registered in Mexico, mainly attributable to the Villanueva photovoltaic plant.

Performance

Millions of euro
20172016Change
Revenue 1,187 1,125 62 5.50%
Gross operating margin 759 833 (74) -8.90%
Operating income 553 565 (12) -2.10%
Capital expenditure 1,802 (1) 1,832 (30) -1.60%

(1) Does not include €325 million regarding units classified as “held for sale”.

The tables below show financial performance by geographic area in 2017.

Revenue

Millions of euro
20172016Change
United States and Canada 716 774 (58) -7.50%
Mexico 142 125 17 13.60%
Panama 149 143 6 4.20%
Other countries 180 83 97 -
Total 1,187 1,125 62 5.50%

Revenue in 2017 amounted to €1,187 million, an increase of €62 million (+5.5%) on 2016. This reflected:

  • a decrease of €58 million in revenue in the United States and Canada, essentially due to a decline in revenue from the sale of electricity (-€137 million) and lower revenue from the electric business (-€8 million) as a result of the decline in output (mainly reflecting the deconsolidation of the EGPNA REP plants), and the effect of the recognition in 2016 of the remeasurement at fair value (€95 million) of the interests held by the EGPNA REP group following the loss of control and the gains on the disposal of Cimarron and Lindahl (€35 million). These developments were partly offset by an increase in revenue from the change in the scope of consolidation following the acquisition of EnerNOC on August 7, 2017 (€146 million) and the increase in revenue from tax partnerships (€68 million);
  • an increase of €17 million in revenue in Mexico, mainly reflecting the increase in wind output, as discussed in the section on operations (€37 million), partly offset by the effect of the recognition in 2016 of revenue from the successful outcome of VAT recovery procedures (€14 million);
  • an increase of €6 million in revenue in Panama, mainly due to an increase in hydroelectric generation, as noted in the section on operations;
  • an increase of €119 million in revenue in Costa Rica, largely reflecting the indemnities in respect of the Chucas wind farm (€100 million) paid to the Group by the Instituto Costarricense de Electricidad (ICE), partly offset by a decline in revenue in Guatemala (-€23 million).

Gross operating margin

Millions of euro
20172016Change
United States and Canada 408 587 (179) -30.50%
Mexico 98 95 3 3.20%
Panama 101 93 8 8.60%
Other countries 152 58 94 -
Total 759 833 (74) -8.90%

The gross operating margin amounted to €759 million in 2017, down €74 million (-8.9%) on 2016. This reflected:

  • a decrease of €179 million in the margin in the United States and Canada, attributable to the decline in revenue discussed earlier and an increase in personnel and operating costs associated with the acquisition of EnerNOC;
  • an increase of €3 million in the margin in Mexico, reflecting the increase in output noted above;
  • an increase of €8 million in the margin in Panama, attributable to the expansion of output;
  • an increase in the margin in other countries, essentially attributable to the greater revenue registered by PH Chucas, as noted earlier.

Operating income

Millions of euro
20172016Change
United States and Canada 293 398 (105) -26.40%
Mexico 52 42 10 23.80%
Panama 87 80 7 8.80%
Other countries 121 45 76 -
Total 553 565 (12) -2.10%

Operating income in 2017 amounted to €553 million, a decrease of €12 million, taking account of a decrease of €62 million in depreciation, amortization and impairment that was essentially associated with the deconsolidation of the EGPNA REP plants, partly offset by an increase in depreciation due to the entry into service of new plants.

Capital expenditure

Millions of euro
20172016Change
United States and Canada 1305 1467 (162) -11.00%
Mexico 454 (1) 248 206 83.10%
Panama 10 42 (32) -76.20%
Other countries 33 75 (42) -56.00%
Total 1,802 1,832 (30) -1.60%

(1) Does not include €325 million regarding units classified as “held for sale”.

Capital expenditure in 2017 amounted to €1,802 million, a decrease of €30 million on the previous year. Investment mainly regarded the wind plants of Rock Creek (€364 million), Red Dirt (€325 million) and Thunder Ranch (€359 million) in the United States and the photovoltaic plants of Villanueva (€272 million) and Don José (€104 million) in Mexico.