UTE Reports $337 Million Profit in 2025 Amid Shifts in Energy Demand and Trade

UTE’s 2025 financial results included net earnings of approximately $13.15 billion Uruguayan pesos ($336.9 million USD), a 3% decrease in local currency terms from the previous year. The company maintained a return on equity of 9.1%, demonstrating stable profitability. Domestic energy sales revenue grew by 2.2%, reaching roughly $1.97 billion USD, driven mainly by increased consumption from residential customers (up 7.7%) and small and medium enterprises (SMEs), which rose 8.6%. Sales to medium and large consumers also grew by 3.5%, while public lighting revenues fell slightly by 0.6%, influenced by long-term LED lighting installations reducing consumption.

Energy exports to the regional market halved in value year-on-year, totaling about $66.5 million USD. These exports were minimal during the first five months but rebounded in the second half of 2025, predominantly to Argentina. Concurrently, UTE resumed energy imports, primarily from Argentina and to a lesser extent Brazil, accounting for nearly 5% of total electricity demand. This strategy aimed to replace costlier local thermal generation. Hydroelectric power’s share in the generation mix decreased from near 50% to 46%, while thermal generation was utilized to meet peak demand periods, representing 1.9% of output.

Operating costs rose 5.9% to $46.37 billion pesos, with a notable 60% increase in costs related to energy materials and lubricants. Social electricity subsidies grew by approximately $136 million USD, benefiting about 188,000 vulnerable households with 80-90% discounts. UTE’s total liabilities included short-term debt of $34 billion pesos and long-term obligations of $105.7 billion. The company transferred $159 million to the central government in 2025, with an additional $25.6 million scheduled for payment in 2026, reinforcing its role as a key fiscal contributor.