In 2014, the net power generation was 1,654 GWh, 1.2% lower than generation in 2013, which is mainly explained by the fact that in the northern part of the country it was a dry year, which affected power generation in Gallito Ciego.

Income for sale of energy, capacity and secondary transmission decreased by 17.2%, from USD 127.6 MM in 2013 to USD 105.7 MM as recorded in 2014.

This decrease is mainly explained by the fact that in 2014 less energy was purchased from generation company Kallpa to supply clients of Statkraft Perú S.A. than in 2013. It should be noted that the profit for this transaction was minimum because while the income increased, the expenses for energy purchase also increased.

As of December 31, 2014, the generation and transmission cost amounted to USD 42.8 MM, which represented a 29.0 % decrease compared to 2013. This is mainly explained by the purchase of energy from generation company Kallpa for subsequent trading.

The administration and sales expenses amounted to US$ 12.6 MM, which represents a 15.2 % decrease compared to 2013. These savings are explained by the fact that the work was performed with own personnel instead of employing consultants in order to find efficiencies.

As a result of the company’s income and expenditure, the operating income at year ended December 31, 2014 amounted to USD 57.6 MM, 5.5% higher than that in 2013. This is explained by the extraordinary income earned in 2014 as a result of the telecommunication project with Minera Chinalco Perú S.A.

At year end, the financial expenses (net of financial income) amounted to USD 11.5 M, 12.7 % lower than the amount recorded in 2013, which is mainly explained by the decrease of interest payments due to the reduction of the debt principal.

At year end, the income before income tax amounted to USD 46.1 MM, 11.2% higher than that recorded in 2013, which is explained above.