The company Areaflin SA, which manages the Valentines wind farm and where small investors are partners of UTE, published this week its balance of results corresponding to 2021, which ended with profits for about $3.8 million. It is expected that the company will distribute all the profit generated in the year, as it has been happening since the beginning, as learned The Observer. Earning per share was 9.07% measured in dollars.
The proposed distribution of profits will be put to a vote at a shareholders’ meeting on a date to be determined. Once this step has been completed, the authorization of the Inter-American Investment Corporation (IDB Invest), a multilateral organization with which Areaflin SA signed a long-term loan agreement, which contains compliance commitments prior to the distribution authorization, is also required. Last year the company canceled part of the debt in advance.
Areaflin (20% owned by UTE and 80% listed on BVM) sells electricity generated by Valentines to UTE under the same conditions as private generators with which the state company has signed contracts for a term of 20 years.
Last year the park that operates in Treinta y Tres sold electricity for US$ 18.4 million and had an operating result of US$ 7.9 million, according to the balance sheet. The park produced a total of 267,952 MWh, according to UTE data.
The dividends generated by these shares are exempt from both IRPF and IRNR as they are shares issued by Uruguayan companies listed on local stock exchanges. The sale of the shares is also exempt, since it is a title whose issue was made through public subscription.
After several years of lower generation than initially expected, in 2020 and after hiring some specialized consultants, UTE adjusted the production projections and presented a new financial flow. The production estimate is now 283,263 MWh in P50 (in 50% of cases it would be at that level or higher). That estimate is 9.05% below the project’s initial estimate of 311,447 MWh per year.
The last distribution of profits of the company corresponding to 2020 was last year for an amount of $1.13 million. Also last year there was a new capital redemption for US$ 5 million with the aim of improving the rate of return to partners.
