Carso Energy

Carso Energy recorded sales for $72 million pesos in 2018, a figure which includes revenues of our company, Tabasco Oil Company (“TOC”), from the production and sale of oil in Colombia.

In turn, the Energy division recognized an operating loss of $507 million pesos in 2018, which is higher than the operating loss of $24 million pesos recorded in the previous year. Further, Carso Energy saw an increased negative EBITDA in the year when going from a loss of $16 million pesos in 2017 to a loss of $37 million pesos in 2018. These effects are mainly the combined result of the impairment of investments in exploration of oil fields operated in Colombia, as well as the recognition of pre-operating expenses in geothermal projects and in Contractual Areas 12 and 13 in Mexico, in connection with hydrocarbon exploitation.

Net controlling profit of Carso Energy grew 371.6% to be determined at $1.638 billion pesos in the year, a figure which is compared to a net controlling profit of $347 billion pesos recorded in 2017. This positive fluctuation is mostly the result of the recognition of deferred taxes from our gas duct operation in Texas.

The Waha - Presidio and Waha - San Elizario gas ducts, located in the State of Texas in the U.S. and jointly operated with another company under a joint venture format, reported revenues and profits during 2018. However, despite the fact that the division maintains a 51.0% interest in this operation, its results are not consolidated by Carso Energy, although they are reflected in the results in associated companies account.

Samlayuca-Sásabe gas station

The division is constructing the Samalayuca – Sásabe gas duct, located between the states of Chihuahua and Sonora in Mexico. Because the rights of way have not been released, the construction works have been performed at a lesser rate than planned. In this project, Carso Electric holds a 100.0% economic interest.

The exploration work in two geothermal energy fields performed by the division in the Mexican states of Baja California and Guanajuato started in 2018. Carso holds a 70.0% economic interest in this energy generating project.

Finally, capital expenditures carried out by Carso Energy during 2018 amounted to $2.478 billion pesos.