Infraestructura Energetica Nova SAB, the Mexican unit of natural-gas utility Sempra Energy (SRE:US), climbed to a three-week high after earnings increased.
Shares of the company known as Ienova advanced 2 percent to 51.29 pesos at 1:37 p.m. in Mexico City, the highest level on a closing basis since Oct. 10. The stock headed for a 6 percent two-day gain, the biggest since August, extending the rally since its March initial public offering to 51 percent.
“We are very pleased with the results from the quarter and we remain on track to meet our year-end financial goals,” Chief Executive Officer Carlos Ruiz Sacristan said today on an earnings conference call. Ienova will have “the opportunity to grow faster” if Mexico’s legislative changes to lure investment to the energy sector are approved this year, he said.
Ienova won a joint-venture contract last week with government oil and gas producer Petroleos Mexicanos to construct an additional 441-kilometer (274-mile) stretch of the Los Ramones pipeline. Ienova Chief Financial Officer Arturo Infanzon said on the call that the company is negotiating with banks to borrow as much as $500 million to fund an earlier phase of work on the pipeline.
Sales increased 8.9 percent in the third quarter from a year earlier to $189 million while adjusted earnings before interest, taxes, depreciation and amortization increased 17 percent to $88.4 million.
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