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 MESSAGE OF THE COMPANY OWNERS
Presently, we face the need to devote a greater attention and importance to long term projects. We need to maintain elevated development rates for our generation, transmission, and distribution capacity. This in turn, implies a greater need of investment, and determines the convenience to develop new organizational and development charts of power sector, together with the quest of new sources of financing, as the most adequate option so that the CFE, and with it power industry new workers, may face the future successfully.
The constantly increasly demand of energy, as well as the necessary investment strategy in facing the next few years, constitute challenges which must be solved satisfactorily by CFE along the institutional stage, so that the financial growth demanded by our country may be met, thus fulfilling at times the profound social conviction of corporation.
Now, the effort to grant the corporation with solidity and the perspectives needed to participate in the present and future challenges of this sector, must be undertaken with new strength, within a renewed frame of mind.
The increment in the demand for electrical power is closely related to the demographic growth and economical development of the country.
STRATEGY
CFE maintained the policy of financing, most of the expansion of the electrical power system, through external sources. In the case of generating facilities through the alternative from of the Independent Power Producer (IPP) and the built, Lease and Transfer (BLT); in the case of transmission and transformation, trough the so called Financed Public Work (OPF).
In order to fulfill the policies established by the federal government, the CFE continued fostering participation by the private sector. Mainly in the development of the electrical infrastructure of the country, by contracting the construction of generating facilities; services through capacity and associated electrical power; natural gas transportation and the reception and handling of coal. All contracts adhere to the regulations established by the Law of Public Service for Electrical Power and its Regulations, for the performance of projects financed with private and our own resources as well.
Net indebtedness was of US $ 122 million, which implied an effort to obtain approximately US $ 340 million through commercial banks, national and foreign, and with different Import-Export agencies.
Regarding liabilities, the decision was made to amortize an emission of promissory notes for a total amount of $ 1 billion, to avoid unnecessary costs due to the arbitrage, in national currency, against the CFE.
FINANCIAL SITUATION
Total assets totaled $ 40.85 billion, which compared to liabilities and reserves of $10.65 billion, gives as a result a patrimony of $ 30.2 billion.
Long term investments and accounts receivable were $ 1.1 billion up to December 1998.
CFE has a healthy financial structure, since net fixed assets account for 91.4 %. Only 11.7% is financed with long term liabilities in favor of third parties. Total liabilities, equivalent to 35.3% of the patrimony. This means, that for each pesos that is owned there are $2.8 in our coffers. This may also be attested, in the relation patrimony/assets, which in turn shows a share in assets of 73.9%.
In general, profit indicators are favorable, among them profit margins on sales, which show considerable accomplishments, going from 5.8% to 10.9%, due to lower prices on fuels.
EFFECTIVE CAPACITY
The installed generation capacity is conformed by 150 stations with 517 units, which in turn use different fuels to produce electricity. This capacity is integrated by 64 hydroelectric plants with 181 units; 28 centrals with 93 units which operate with fuel oil and/or gas; 33 turbo-gas stations with 65 fixed units and 11 mobile ones; 8 internal combustion stations with 46 fixed units and 37 mobile units; 7 combined cycle stations with 33 units; one dual station that may use fuel oil and/or coal with 6 units; 5 geothermoelectrical stations with 8 units; one nucleoelectrical station with 2 units and one wind power station with 7 units.
Since 1937, the CFE is in charge of the various activities concerning generation, transmission, distribution and comercialization of the electrical energy.
In order to complete its objectives, the CFE counts with an extended range of specialists, technicals and professionals in several areas like electricity, finances, systems, communication, administration ...
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HISTORY
The CFE was founded in 1937 in order to reply to the increasing electricity demand of the Mexican market, satisfy the low-income consumer needs, plan and integrate the electrical services in Mexico and prepare a report which should provide the country with control over the energy resources.
The first projects had been carried out in Teloloapan (Guerrero), Patzcuaro (Michoacán), Suchiate and Xia (Oaxaca), and Ures and Altar (Sinaloa).
In 1938, CFE launched its first big project, Ixtapantongo, for that year. The company already had a capacity of 64 KW and by 1942 the capacity had reached 837 KW.
For 1946, the CFE had a capacity of 45, 594 KW with very interesting growth perspectives. At this time the private sector companies stopped investing, this saw the public sector obliged to invest and generate energy in order for it to be re-sold.
The company remained constitutionally as a decentralised judicial institution and patrimony until 1949, which allowed it to operate within the planning and execution of projects.
For 1950 CFE installed a capacity of 167, 126 KW, 13% of the country’s total.
Throughout the next decade, the most important companies suffered major transformation, mergers and restructuring. The state was forced to acquire all or partially all of these companies until the end of the 60’s. The federal government proposed the addition to paragraph 6 of article 27 of the United States of Mexico, underlining:
It corresponds exclusively to the nation to generate, conduct, transform, distribute and create electrical energy with the object of providing assistance of the public sector. By this reason alone, there will be no concessions given out to independent entities and the state will be in a position to use the profits and benefits as it deems adequate.
At this point, the long process of integrating the existing companies began. From 1962 to 1972, CFE acquired and implemented 27 companies into its structure. This process was to continue until 1991.
One significant step forward was the unifying and implementing of electrical frequencies of 60 cycles throughout the republic. By 1972, equipment modification of electro-domestics to every home was adjusted to 60 cycles. This program was completed in 4 years, 3 years before the expected date of completion.
In 1975 the institute for electrical investigation was founded. Its main functions were to produce, support and the development of the national industry.
MISSION
CFE, has in its control a mission to accomplish that expresses 3 fundamental points :
Assure the electrical energy supply to the population
Develop a system of solid service to consumers
Protect the environment, promote social development and respect the values of the population where elecricity is being deeloped.
OBJECTIVES
The organisation was established to satisfy 7 key objectives :
supply the demand for electrical energy
develop an electrical system of confidence ans security
construct an organisation which is effective and productive. Administered with the most modern business criteria.
Create and project a corporate image of efficiency and quality within the management of the services.
Secure the availability of human resources to promote the professional and personal development of its members.
To function with high financial criterias
Protect the environment and well being of the populatio
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© World INvestment NEws, 2000.
This is the electronic edition of the special country report on Mexico published in Forbes Global.
July 3rd 2000 Issue.
Developed by AgenciaE.Tv |
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MEXICO
