Stable rating for Enemalta despite the pandemic.
The International Credit Ratings Agency S&P Global, confirmed the rating of BB- for Enemalta, which is the same rating Enemalta had in 2019.
The economists of S&P Global, after analyzing the performance and the financial results of Enemalta PLC in 2020, acknowledged that the extraordinary circumstances the company had to face last year.
Mainly because, due to the pandemic, the demand for energy has plummeted by 4.5%. A decrease mainly attributed to the economic slowdown especially in the tourism sector.
The economists noted that in the first three months of the year, Enemalta had to use the diesel powered energy plants for security of supply to make sure that the energy needs of Malta are met after the interconnector between Malta and Sicily was damaged by a ship. This meant that electricity could not be procured from the interconnector, adding additional expenses for the company.
Enemalta, has recovered an expense of more than 10 million Euros from the insurance covering the repairs on the interconnector, however it is still in a legal battle to recover the additional expences incured because of the inconnector damage.
Analysists are forecasting that in the next two years, the demand for energy will increase, and Enemalta will be back on track which was predominant before the pandemic with an annual increase in demand for energy of 3.5% to 4% until 2023.
The agency S&P observed that the grants the government gave to businesses and families was extremely helpful and served as an indirect help so that Enemalta assured a constant level of liquidity, coming from the bills being duly paid by its consumers.
Analysits, submitted that if the macro-economic situation improves, they would revise their forecast from negative to stable.
The report of S&P Global have a very good score to Enemalta, for its efforts to ensure the provision of electricity is accompanied by good corporate values, in the social and the environmental field and good governance.