EMPRESA DISTRIBUIDORA Y COMERCIALIZADORA NORTE SOCIEDAD ANÓNIMA 2015
Stock Information: Ticker: EDN
New York Stock Exchange Ratio: 20 Class B = 1 ADR Buenos Aires Stock Exchange
Investor Relations Contacts:
Leandro Montero
Chief Financial Officer
Verónica Gysin
Planning and Capital Markets Manager
Tel: +54 (11) 4346 -5231
Buenos Aires, Argentina, March 11, 2016. Empresa Distribuidora y Comercializadora Norte S.A. (NYSE: EDN; Buenos Aires Stock Exchange: EDN) ("EDENOR" or "the Company"), Argentina's largest electricity distributor, today announced its results for the fourth quarter of 2015. All figures are stated in Argentine Pesos and have been prepared in accordance with International Financing Reporting Standards ("IFRS"). Solely for the convenience of the reader, Peso amounts as of and for the quarter ended on December 31, 2015 have been translated into U.S. Dollars at the selling price quoted by Banco de la Nación Argentina of AR$ 13.04 per U.S. Dollar.
HIGHLIGHTS
On January 25, 2016, the Ministry of Energy and Mining issued Resolution N°6, approving the seasonal WEM prices for the period from February 2016 through April 2016. This Resolution tries to recompose the seasonal prices set forth in the Regulatory framework. Energy prices in the spot market were set by CAMMESA, which determined the price charged by generators for energy sold in the spot market of the wholesale electricity market on an hourly basis. Resolution 6, introduced different prices depending on the customers' categories. Said resolution contemplates a social tariff for residential customers who comply with certain requirements, which establishes a tariff of AR$0 for monthly consumptions below or equal to 150 Kwh and preferential tariffs for customers who, having exceeded the established limit consumption, have achieved a monthly consumption lower than that of the same period in the immediately preceding year (saving). Resolution also establishes tariff benefits due to consumption savings addressed to residential customers.
By means of Resolution number 7/2016 of the Ministry of Energy and Mining, the ENRE was requested to perform on account of the RTI (Integral Tariff Revision) a VAD adjustment to the tariff schedules of Edenor and Edesur and carry out all necessary steps to achieve the corresponding tariff update prior to December 31, 2016.
Likewise the mentioned resolution resolved to: (i) render the PUREE (Program of Rational use of Electric Energy) ineffective; (ii) revoke Resolution SE 32/2015 as from the date the ENRE resolution implementing the new tariff schedule is in force; (iii) discontinue the application of mechanisms that imply the transfer of funds in the form of Loan Agreements with CAMMESA, which had been entered into between the Company and CAMMESA; (iv) implement the required actions in order to terminate the Trusts created pursuant to the ENRE 347/2012 Resolution.
In compliance with Resolution 7/2016 mentioned above, the ENRE subscribed Resolution N°1/2016 establishing the new tariff structure.
In September 2014, the Energy Secretariat instructed CAMMESA to enter into a Loan and Guarantee Assignment Agreement with the Company in order to provide the necessary financing to cover the Extraordinary Investment Plan as a consequence of the temporary insufficiency of funds received through Resolution 347/12. During 2015, with different Amendments, the Loan Agreement reached AR$ 2,913 million for the whole plan.
As of December 31, 2015, the total debt under this loans agreements amounts to AR$ 1,099.8 million, comprised of AR$ 923.6 million principal for the effective disbursements, and AR$ 176.2 million in accrued interest.
As explained before, these loans were discontinued as from February 1, 2016 under the terms of Resolution N°7 of the Ministry of Energy and Mining
During November 2015 the SE issued Notes 2097 and 2157 which rules the application of percentages of CMM of 6.20% and 9.05% as from May 1st 2015 and November 1st 2015, respectively. At December 31st the company recognized a total of $ 364.9 million due to the mentioned concept.
Fourth Quarter 2015 Operating Figures
In millon of Pesos | 4° Q 2015 | 4° Q 2014 % Variation | |
Revenue from sales | 891.0 | 850.2 | 4.8% |
Electricity power puchase | (474.1) | (464.8) | 2.0% |
Net operating income (loss) | 558.5 | 638.7 | (12.6%) |
Net income (loss) | 203.6 | 664.0 | N/A |
Revenue from sales increased 4.8% to AR$ 891.0 million in the fourth quarter of 2015 compared to AR$ 850.2 million in the fourth quarter of 2014, mainly due to an increase in volume of energy sold in GWh for about 3.7%, a 7.2% growth in revenues related to the application of Resolution 347/12, and higher income from the right of use on poles.
Volume of energy sold increased 3.7% to 5,422 GWh in the fourth quarter of 2015 from 5,227 GWh in the fourth quarter of 2014, basically due to an increase of 7.4% in residential customers, a 4.8% increase in small commercial customers, and a 3.1% growth in industrial and medium commercial customers.
Electricity power purchases increased 2.0% to AR$ 474.1 million in the fourth quarter of 2015 compared to AR$ 464.8 million in the same period of 2014, mainly due to the increase in energy sales described above, partially offset by a reduction in mobile generation.
Net operating income decreased AR$ 80.2 million amounting a gain of AR$ 558.5 million in the fourth quarter of 2015 compared to a gain of AR$ 638.7 million in the same period of 2014. This negative result was due to a 10.3% increase in operating expenses, mainly due to the raise in salaries which represent approximately 76% of the total growth, partially offset by the income obtained through SE Resolution 32/15 and to a CMM (Cost Monitoring Mechanism) adjustment obtained in November 2015, retroactive as from May 2015.
The operating expenses increase is basically explained by higher administrative expenses of AR$ 58.1 million, by an increase of AR$ 40.2 million in transmission and distribution expenses and by greater selling expenses of AR$ 34.9 million.
Net income shows a decrease of AR$ 460.4 million, amounting a gain of AR$ 203.6 million in the fourth quarter of 2015, compared to a gain of AR$ 664.0 million in the same period of 2014, mainly due to the operating results explained above and to a decrease in financial results due to the devaluation of the AR$/US$, partially offset by the sales increase and a reversal of the income tax provision.
Adjusted EBITDA
Adjusted EBITDA has increased to a gain of AR$ 647.3 million in the fourth quarter ended December 31, 2015, compared to a loss of AR$ 690.2 million in the same period of 2014.
In millon of Pesos | 4° Q 2015 | 4° Q 2014 |
Net operating loss before resolution 32/15 | (1,021.8) | (897.6) |
Depreciation of property, plant and equipment | 77.3 | 64.1 |
EBITDA | (944.5) | (833.5) |
Resolution 32/15 recognition (1) | 1,580.3 | - |
PUREE | - | 130.7 |
Commercial Interests | 11.5 | 10.8 |
Adjusted EBITDA | 647.3 | (692.0) |
(1) Includes additional income under this resolution, PUREE funds and MMC over SE Resolution 32/15
Operating Expenses
The following table sets forth the main transmission and distribution, selling and administrative expenses:
In millon of Pesos and % | Transmission and distribution expenses | Selling expenses | Administrative expenses | Total expenses | ||||||||
4° Quarter | % Variation | 4° Quarter | % Variation | 4° Quarter | % Variation | 4° Quarter | % Variation | |||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||
Salaries, social security taxes | 506.7 | 417.6 | 20% | 79.2 | 75.5 | 5% | 88.9 | 79.7 | 12% | 674.7 | 572.9 | 18% |
Pensions Plans | 17.8 | 17.9 | 0% | 4.6 | 3.2 | 41% | 3.1 | 3.3 | -5% | 25.5 | 24.4 | 5% |
Communications expenses | 4.4 | 4.6 | 0% | 14.6 | 9.4 | 55% | 1.1 | 0.8 | 38% | 20.1 | 14.9 | 35% |
Allowance for the impairment of trade and other receivables | 0.0 | 0.0 | 0% | 1.2 | 8.4 | -85% | 0.0 | 0.0 | 0% | 1.2 | 8.4 | -85% |
Supplies consumption | 50.7 | 46.8 | 10% | 0.0 | 0.0 | 0% | 9.8 | 5.0 | 95% | 60.5 | 51.8 | 17% |
Leases and insurance | 0.1 | 1.1 | -90% | 0.0 | 0.0 | 0% | 14.3 | 10.3 | 39% | 14.4 | 11.4 | 26% |
Security service | 12.4 | 9.1 | 40% | 0.2 | 0.0 | 2067% | 7.9 | 4.6 | 71% | 20.4 | 13.7 | 50% |
Fees and remuneration for services | 96.2 | 175.2 | -50% | 91.8 | 75.0 | 23% | 90.5 | 55.7 | 63% | 278.5 | 305.9 | -9% |
Public relations and marketing | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% | 3.5 | 1.6 | 120% | 3.5 | 1.6 | 120% |
Advertising and sponsorship | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% | 1.8 | 0.8 | 120% | 1.8 | 0.8 | 120% |
Reimbursements to personnel | 0.3 | 0.3 | -20% | 0.1 | 0.1 | -9% | 0.2 | 0.3 | -48% | 0.5 | 0.7 | -33% |
Depreciation of property, plant and equipment | 64.2 | 54.7 | 20% | 11.5 | 6.2 | 87% | 1.6 | 3.2 | -51% | 77.3 | 64.1 | 21% |
Directors and Supervisory Committee members' fees | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% | 1.0 | 0.8 | 26% | 1.0 | 0.8 | 26% |
ENRE penalties | 69.1 | 54.8 | 30% | 15.3 | 7.0 | 117% | 0.0 | 0.0 | 0% | 84.4 | 61.8 | 37% |
Taxes and charges | 0.0 | 0.0 | 0% | 13.2 | 12.0 | 10% | 2.2 | 2.0 | 12% | 15.4 | 14.0 | 10% |
Other | 0.6 | 0.2 | 190% | 0.2 | 0.1 | 137% | 1.2 | 0.8 | 50% | 1.9 | 1.1 | 82% |
Total | 822.5 | 782.4 | 5% | 231.8 | 196.9 | 18% | 227.0 | 168.9 | 34% | 1,281.3 | 1,148.2 | 12% |
EDENOR - Empresa Distribuidora y Comercializadora Norte SA issued this content on 11 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 14 March 2016 14:06:28 UTC
Original Document: http://www.edenor.com/cms/files/SP/RI/comunicadosPrensa/2015-4toTrim-InformeDeGanancias.pdf
