Electro Sur Este S.A.A.

What it is

Electro Sur Este is Peru’s concession-holder for the distribution and sale of electric power across a large swathe of the country’s south — it also generates and transmits power in off-grid local systems.

It operates across a concession area covering the regions of Cusco, Apurímac and Madre de Dios, as well as the province of Sucre in Ayacucho. The company was constituted as an open public limited company (sociedad anónima abierta) in 1984, under Ministerial Resolution 318-83.

Who owns it

The Peruvian state holds approximately 99.70% of the company through FONAFE — the national fund that manages state enterprises — leaving only 0.30% in private minority hands.

The minority Class B shares are the ones that trade publicly on the Lima stock exchange under ticker ESUREBC1. FONAFE coordinates ELSE’s governance and dividend policy under Peru’s framework for state-owned enterprises; the free float is tiny and the stock is illiquid.

Who runs it

The board is chaired by Frantz Luis Olazábal Ibáñez, a veteran Peruvian electrical engineer who has previously served as Electro Sur Este’s own General Manager and held board chairs at Electro Oriente and Seda Cusco. The board also includes directors Carlos Guillermo Martin Centeno Zavala, independent director Alberto Luis Infante Ángeles, Pablo Alejandro Estenssoro Fuchs, and Andrés Alejandro Escalante Márquez.

The current General Manager (CEO) is not named on the public-facing governance pages as of July 2026; that position is appointed by the board under FONAFE rules. The transparency portal lists Ing.

Luis Antonio Manya Aqquehua and Ing. Ronald Chacón Rondón as the senior officials responsible for public information.

The money, in plain words

The market value of the publicly traded Class B shares stands at S/ 122.85M (about US$36.1M) — but this represents less than one-third of one percent of the company. The Class B share last traded at S/ 0.26, (US$0.08)down from a 52-week high of S/ 0.47, (US$0.14)and the stock is thinly traded.

At S/ 0.26 (US$0.08)per share and a trailing earnings-per-share of S/ 0.25, (US$0.07)the price-to-earnings ratio is approximately 1.04× (our calculation) — meaning investors are paying barely more than one year’s earnings per share. The extremely high dividend yield of around 79% is not a sign of generosity alone; it reflects a very depressed share price combined with the company’s stated policy of distributing dividends within 30 calendar days of the annual shareholders’ meeting, and its formal commitment to pay out 100% of distributable profits.

Full 2024 audited revenue and net-profit figures are filed with the SMV but were not parseable from the PDF; the company’s Q4 2024 financial statements are publicly available on the ELSE investor page.

What it is doing now

The most material recent move is a cash capital increase: in early 2025 the company convened a shareholders’ meeting to approve a capital increase by new cash contribution, with a preferential subscription process for existing shareholders. For a state-dominated utility, raising fresh equity signals an infrastructure investment push, likely tied to grid expansion in its remote Andean and Amazonian concession zones.

A June 2026 extraordinary shareholders’ meeting has also been called — suggesting ongoing governance activity at the top of the company in the current year.

What to watch

• Tariff reviews. ELSE earns within a regulated tariff set by OSINERGMIN; any revision directly moves revenue and profit. Peru is overdue a rate review cycle update.
• Capital increase execution. How much new equity is raised and where it goes will determine whether the balance sheet strengthens or gets stretched by investment.
• Full 2024 audited results. The annual financial statements are filed with the SMV; once the annual report figures are fully public, the net margin and return on equity — currently unconfirmed from parsed primary sources — will become the key numbers to track.
• FONAFE governance changes. Peru’s frequent ministerial turnover means FONAFE’s oversight priorities shift; a new board appointment can reset strategic direction quickly.
• Electrification mandates. The Madre de Dios and Apurímac regions remain among Peru’s least electrified; regulatory obligations to connect new users are both a cost and, ultimately, a revenue opportunity.

This is news, not investment advice.