Empresa Regional de Servicio Publico de Electricidad Electronorte Medio S.A.-Hidrandina

What it is

Hidrandina distributes and sells electricity across north-central Peru, with smaller activities in sub-transmission and isolated power generation. Its concession covers the departments of La Libertad and Ancash in full, plus seven provinces of Cajamarca — an area of about 78,000 km² with roughly 3.6 million inhabitants.

By end-2024 the company served 1,091,095 customers inside its concession area. It is a mixed-economy public service company that belongs to the Distriluz Group and sits within the portfolio of FONAFE, Peru’s state enterprise fund.

Who owns it

FONAFE — the Peruvian state’s enterprise financing fund — holds approximately 95% of the shares. Hidrandina is a member of the Distriluz group, which also includes Electronorte, Electrocentro, and Electronoroeste.

The remaining roughly 5% of shares trade on the Bolsa de Valores de Lima as the public free float.

Because FONAFE is wholly owned by the Peruvian government, Hidrandina is in practice a state enterprise; policy decisions, board appointments, and the dividend framework all flow through FONAFE’s board resolutions rather than through a private controlling family or investor.

Who runs it

The Gerente General (CEO) was designated by FONAFE Board Resolution N° 001-2024/013-FONAFE, published in the Official Gazette on 13 November 2024. The individual name was not disclosed in the public documents reviewed.

The FY2024 financial statements were audited by Gaveglio, Aparicio y Asociados (PwC Peru).

FONAFE’s own 2025 accountability report flags high management turnover as a systemic risk across its electricity companies, noting that successive board changes have driven significant losses of institutional knowledge. Hidrandina is explicitly named in that concern, making leadership stability a live question for outside investors.

The money, in plain words

In fiscal year 2023 — the latest period for which full annual revenue figures are available in public filings — Hidrandina’s ordinary revenues reached S/ 1,342,304,060 (≈ US$393.9 million), up 9.4% from S/ 1,226,841,302 (US$360 mn)in 2022 (our calculation).

For FY2024, the approved legal reserve of S/ 8,705,602.95 (US$3 mn)implies a net profit of approximately S/ 87,056,030 (≈ US$25.5 million), since Peruvian law sets the legal reserve at 10% of net profit — our calculation. The 2024 capital increase of S/ 23,505,127 (US$7 mn)represents 30% of distributable profits for the year, in line with the company’s dividend policy.

At the current share price of S/ 1.50, (US$0.44)the market values the whole company at roughly S/ 1.19 billion (≈ US$349 million). The trailing dividend yield stands at 4.61% — a meaningful cash return for a state-owned utility, paid annually.

The company carries short-term financial obligations that grew in 2024, partly offset by a S/ 81 million (US$24 mn) long-term loan from Banco de la Nación, of which S/ 32 million (US$9 mn) was drawn by year-end and S/ 49 million (US$14 mn) remains to be disbursed in 2025.

What it is doing now

At its April 2025 shareholder meeting Hidrandina approved the issuance of 23,505,127 new shares — split across Class A1, A2, B and C — as a capitalisation of 2024 profits, strengthening its equity base without tapping external markets.

The Peruvian government separately allocated S/ 31.9 million (US$9 mn) to Hidrandina in early 2025 as part of a FONAFE-wide tariff support package for electricity distributors. An industry-wide regulatory deadline also looms: electricity distributors must remove all overhead cabling from historic city centres by 2026, per a 2024 amendment to the network code.

What to watch

• Tariff review. Revenues are mostly regulated; any adjustment by the energy regulator (OSINERGMIN) to the distribution value-added tariff directly moves the top line. A tariff adjustment was made at end-2023, and the next review cycle is the single biggest swing factor for earnings.
• Banco de la Nación debt draw-down. The remaining S/ 49 million (US$14 mn) from the S/ 81 million (US$24 mn) loan is scheduled for disbursement in 2025, increasing leverage; how it is deployed in the grid will set the pace of service quality improvement.
• Leadership churn. FONAFE’s own reports flag high management rotation as a structural problem; a stable CEO appointment matters for execution of the capital programme.
• Underground cabling mandate. The 2026 deadline to clear historic-centre overhead lines will require capital and project management discipline in Trujillo, Huaraz, and Cajamarca.

This is news, not investment advice.