2016
Edenor announces first quarter 2016 resultsStock 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, May 12, 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 first quarter of 2016. 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 March 31, 2016 have been translated into U.S. Dollars at the selling price quoted by Banco de la Nación Argentina of AR$ 14.70 per U.S. Dollar. HIGHLIGHTSNote No. 120,151 issued by the ENRE
On April 15, 2016, the ENRE issued the Note No. 120.151, establishing that all fines and penalties imposed by the ENRE after April 15, 2016 (whether with respect to events occurring on or after such date or events occurring prior to the date thereof but for which fines or penalties had not been imposed on us by such date, that include a reference to "Note No. 120,151", must be valued according to the KWh values in effect as of the last date of the semester or period during which the event giving rise to the penalty occurred, including any increases or adjustments applicable to our "remuneration" at such date. In addition, fines and penalties that fall within the purview of the Note will accrue interest from the last date of the semester on which the event giving rise to the penalty occurred until the date they are paid by us. The amount registered to reflect accrued interest according to the Note was AR$. 129.0 million.
Compensation to customers
On March 28, 2016, we were notified of Resolution No. 31/2016 of the ENRE pursuant to which we were instructed to compensate the small residential customers (T1R) who had been affected by the power outages occurred during the period between February 12, 2016 and February 18, 2016. The amount of such compensation depends on the duration of each relevant power outage. The total compensation to be paid amounts to AR$. 73 million.
RTI
On April 1, 2016, the ENRE issued Resolution 55/16, which approves the 2016 Integral Tariff Revision Program and establishes the criteria and methods to be applied in the RTI process, as well as the compensation and penalties regulation together with the tentative schedule including details of the working plan to be submitted.
In our opinion, the RTI process will have to factor in a revised analysis of our distribution costs, modifications to our quality of service standards and penalty scheme and, finally, a revision of our asset base and rate of return, such as, among other: (i) the treatment to be given to the outstanding amounts granted under the loans for consumption (mutuums) to cover the insufficiency of the funds deriving from the FOCEDE; (ii) the conditions for the settlement of the outstanding debt with CAMMESA as of the date of issuance of Resolution No. 32/15; (iii) the treatment to be given to the penalties and discounts determined prior and subsequent to the Adjustment Agreement; and (iv) an agreement on quality levels and a new system of penalties and discounts that provides for an adequate transitional period until the tariff schedule resulting from the RTI is fully implemented.
Appointment of new Board of Directors' members
The Ordinary and Extraordinary General Shareholders' meeting held on April 28th 2016 appointed permanent and alternate members of the Board of Directors and Audit Commission.
First Quarter 2016 Operating FiguresIn millon of Pesos | 1° Q 2016 | 1° Q 2015 | % Variation |
Revenue from sales | 2,990.1 | 968.6 | 208.7% |
Electricity power purchase | (1,317.3) | (523.0) | 151.9% |
Net operating income (loss) | 238.3 | 916.0 | (74.0%) |
Net (loss) income | (125.0) | 469.9 | (126.6%) |
The operating expenses increase was basically explained by higher transmission and distribution expenses of AR$ 620.2 million, by greater selling expenses of AR$ 116.8 million and by an increase in administrative expenses of AR$ 91.8 million.
Net loss shows a decrease of AR$ 594.9 million, amounting a loss of AR$ 125.0 million in the first quarter of 2016, compared to a gain of AR$ 469.9 million in the same period of 2015, mainly due to the operating results explained above and to a decrease of AR$ 257.6 in financial results basically due to the devaluation of the AR$/US$, partially offset by the sales increase and the income tax provision. Adjusted EBITDAAdjusted EBITDA has decreased to a gain of AR$ 337.8 million in the first quarter ended March 31, 2016, compared to a gain of AR$ 365.7 million in the same period of 2015.
In millon of Pesos | 1° Q 2016 | 1° Q 2015 |
Net operating loss before resolution 32/15 | (274.3) | (604.5) |
Depreciation of property, plant and equipment | 82 | 64.1 |
EBITDA | (192.4) | (540.4) |
Resolution 32/15 recognition (1) | 512.6 | 869.1 |
PUREE | - | 25.6 |
Commercial Interests | 17.7 | 11.4 |
Adjusted EBITDA | 337.8 | 365.7 |
(1) Includes additional income under this resolution and PUREE funds, since March 1st 2015.
Operating ExpensesThe 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 | ||||||||
1° Quarter | % Variation | 1° Quarter | % Variation | 1° Quarter | % Variation | 1° Quarter | % Variation | |||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||
542.7 | 372.6 | 50% | 84.0 | 61.7 | 36% | 86.2 | 71.3 | 21% | 712.9 | 505.7 | 41% | |
Pensions Plans | 15.7 | 15.7 | 0% | 2.4 | 2.6 | -6% | 2.5 | 3.0 | -17% | 20.6 | 21.3 | -3% |
Communications expenses | 6.5 | 2.9 | 120% | 16.4 | 10.2 | 61% | 0.9 | 0.6 | 41% | 23.9 | 13.7 | 74% |
Allowance for the impairment of trade and other receivables | 0.0 | 0.0 | 0% | 10.7 | 6.6 | 63% | 0.0 | 0.0 | 0% | 10.7 | 6.6 | 63% |
Supplies consumption | 70.3 | 56.6 | 20% | 0.0 | 0.0 | 0% | 8.9 | 4.3 | 106% | 79.2 | 60.9 | 30% |
Leases and insurance | 0.1 | 0.1 | -10% | 0.0 | 0.0 | 0% | 19.6 | 13.2 | 49% | 19.7 | 13.3 | 48% |
Security service | 2.7 | 11.6 | -80% | 0.1 | 0.0 | N/A | 26.8 | 5.5 | 390% | 29.6 | 17.1 | 73% |
Fees and remuneration for services | 94.3 | 131.2 | -30% | 87.5 | 72.4 | 21% | 69.1 | 29.9 | 131% | 251.0 | 233.5 | 8% |
Public relations and marketing | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% | 2.8 | 1.1 | 152% | 2.8 | 1.1 | 152% |
Advertising and sponsorship | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% | 1.4 | 0.6 | 152% | 1.4 | 0.6 | 152% |
Reimbursements to personnel | 0.2 | 0.3 | 0% | 0.0 | 0.0 | 4% | 0.1 | 0.2 | -38% | 0.4 | 0.5 | -18% |
Depreciation of property, plant and equipment | 65.5 | 55.1 | 20% | 12.4 | 6.3 | 97% | 4.1 | 2.7 | 52% | 81.9 | 64.1 | 28% |
Directors and Supervisory Committee members' fees | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% | 1.3 | 0.8 | 73% | 1.3 | 0.8 | 73% |
ENRE penalties | 526.7 | 58.4 | N/A | 58.7 | 0.1 | N/A | 0.0 | 0.0 | 0% | 585.4 | 58.5 | N/A |
Taxes and charges | 0.0 | 0.0 | 0% | 15.6 | 11.2 | 40% | 3.1 | 2.9 | 6% | 18.7 | 14.1 | 33% |
Other | 0.1 | 0.0 | 150% | 0.0 | 0.0 | 13% | 1.8 | 0.8 | 125% | 1.9 | 0.9 | 123% |
Total | 1,324.8 | 704.6 | 88% | 288.0 | 171.2 | 68% | 228.7 | 136.9 | 67% | 1,841.5 | 1,012.7 | 82% |
EDENOR - Empresa Distribuidora y Comercializadora Norte SA published this content on 12 May 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 03 June 2016 19:31:02 UTC.
Original documenthttp://www.edenor.com/cms/files/EN/IR/pressRelease/2016-FirstQ-EarningsRelease.pdf
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