Latin American assets bolster Duke Energy’s half-year results

According to Duke Energy’s CEO Jim Rogers, the US utility’s international business Duke International Energy (DEI) has enabled it to hit its half-year earnings targets, reports BN Americas.

DEI owns and operates generation assets throughout the Latin American region, including Brazil (2310 MW), Peru (638 MW), Argentina (523 MW), Guatemala (328 MW), El Salvador (324à‚  MW) and Ecuador (136 MW).

“DEI has really saved our bacon in the first two quarters in terms of hitting our earnings targets” Rogers said. He also confirmed that Duke was not currently entertaining any offers or any discussions with respect to the purchase of the DEI assets.

“They proved this year the value of diversity in earnings streams and have really allowed us to meet our earnings targets because they have successfully stepped up and delivered,” he added.

In the second quarter, higher average contract prices in Brazil and higher prices and volumes in Central America helped drive Duke’s international Earning Before Interest and Tax (EBIT), which grew 42.1 per cent to $179m compared to the same quarter last year. Company-wide EBIT reached $857m in April-June this year.

Lynn Good, Duke’s CFO, attributed the Central American growth to a dry season in the region as the company holds significant thermo capacity in El Salvador and Guatemala.

International operating revenue in the period grew 31 per cent to $406m and physical power sales dipped 10.4 per cent to 4.52 TWh.

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