2016
Edenor announces second 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, August 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 second 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 June 30, 2016 have been translated into U.S. Dollars at the selling price quoted by Banco de la Nación Argentina of AR$ 15.04 per U.S. Dollar. HIGHLIGHTSInjunction Reliefs issued against the new Tariff Structure
In June, 2016 the Company received injunction reliefs issued by the Courts of the Judicial Departments of La Matanza, Escobar and Pilar, establishing a three month suspension of the tariff increases set forth under Resolutions Number 6/2016 and 7/2016 of the Ministry of Energy and Mining, and Resolution Nº1/2016 issued by the ENRE. The mentioned suspensions apply retroactively to February 2016, by which the customers will be credited in the upcoming invoices for payments made pursuant to the tariff increases between February and June 2016. The impact of these measures was a decrease in the gross profit of AR$ 618 million.
On July 15th, 2016 the Federal Court of Appeal of La Plata issued a new relief which extended the scope of the suspension to the whole geographical area of Buenos Aires Province. These measures affect the 80% of our customers as from that date, with no retroactive impact in the first semester 2016.
Second Quarter 2016 Operating FiguresIn millon of Pesos | 2° Q 2016 | 2° Q 2015 % Variation | |
Revenue from sales | 2,717.0 | 899.4 | 202% |
Electricity power purchase | (1,452.4) | (477.1) | 204% |
Net operating income (loss) | (1,451.9) | 215.1 | (775%) |
Net income (loss) | (1,060.4) | 254.9 | (516%) |
million in the same period of 2015, mainly due to the growth in the average purchase price of approximately 282%. since February 1st, 2016. This growth was partially offset by a reduction of AR$ 553.2 due to retroactive effect in purchases of the injunction reliefs explained above.
Net operating income (loss) decreased AR$ 1,667.0 million amounting a loss of AR$ 1,451.9 million in the second quarter of 2016 compared to a gain of AR$ 215.1 million in the same period of 2015. This negative result was due to a 118.3% increase in operating expenses, mainly explained by the raise in the accrued fines and penalties of AR$ 972.9 principally caused by the changes in the estimation introduced by Note No.120.151 of the ENRE, a 29.2% increase in salaries and a reduction in the amounts obtained through SE Resolution 32/15, which were supposed to be offset by the new tariff structure issued by Resolution N° 1/2016 of the ENRE. Net income (loss) shows a decrease of AR$ 1,315.3 million, amounting a loss of AR$ 1,060.4 million in the second quarter of 2016, compared to a gain of AR$ 254.9 million in the same period of 2015, mainly due to the operating results explained above and to a decrease of AR$ 469.3 in financial results caused by a rise in financial expenses AR$ 562.9 - principally commercial interests-. All these decreases were partially compensated by a higher positive result of the income tax for an amount of AR$ 821.1 million. Adjusted EBITDAAdjusted EBITDA has decrease to a loss of AR$ 1,315.8 million in the second quarter ended June 30, 2016, compared to a gain of AR$ 295.6 million in the same period of 2015.
In millon of Pesos
2° Q 2016
2° Q 2015
Net operating loss before resolution 32/15
(1,448.0)
(839.6)
Depreciation of property, plant and equipment
85.2
68.0
EBITDA
(1,362.8)
(771.6)
Resolution 32/15 recognition (1)
-
1,054.8
Commercial Interests
47.0
12.5
Adjusted EBITDA
(1,315.8)
295.6
Includes additional income under this resolution and PUREE funds.
The following table sets forth the main transmission and distribution, selling and administrative expenses:
Transmission and distribution expenses Selling expenses Administrative expenses Total expensesIn millon of Pesos and %
2° Quarter% 2° Quarter %
2° Quarter % 2° Quarter % 2016 2015 Variation 2016 2015 Variation 2016 2015 Variation 2016 2015 VariationSalaries, social security taxes | (623.6) | (496.9) | 30% | (104.9) | (73.9) | 42% | (117.3) | (84.0) | 40% | (845.9) | (654.8) | 29% |
Pensions Plans | (15.2) | (16.2) | (10%) | (2.6) | (2.4) | 8% | (2.9) | (2.7) | 8% | (20.6) | (21.2) | (3%) |
Communications expenses | (6.8) | (3.2) | 110% | (35.3) | (16.6) | 113% | (3.5) | (0.8) | 331% | (45.6) | (20.6) | 121% |
Allowance for the impairment of trade and other receivables | 0.0 | 0.0 | 0% | (33.9) | 4.0 | (939%) | 0.0 | 0.0 | 0% | (33.9) | 4.0 | (939%) |
Supplies consumption | (71.3) | (43.2) | 70% | 0.0 | 0.0 | 0% | (5.9) | (2.9) | 107% | (77.2) | (46.1) | 68% |
Leases and insurance | (0.1) | (0.1) | (10%) | 0.0 | 0.0 | 0% | (22.8) | (15.4) | 49% | (23.0) | (15.5) | 48% |
Security service | (32.3) | (9.3) | 250% | (0.3) | (0.4) | (18%) | 6.0 | (4.2) | (243%) | (26.7) | (13.9) | 91% |
Fees and remuneration for services | (108.5) | (124.5) | (10%) | (122.8) | (84.1) | 46% | (109.5) | (48.3) | 127% | (340.8) | (256.9) | 33% |
Public relations and marketing | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% | (4.3) | (2.4) | 76% | (4.3) | (2.4) | 76% |
Advertising and sponsorship | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% | (2.2) | (1.3) | 76% | (2.2) | (1.3) | 76% |
Reimbursements to personnel | (0.3) | (0.4) | (30%) | (0.1) | (0.1) | (8%) | (0.2) | (0.2) | (18%) | (0.5) | (0.7) | (22%) |
Depreciation of property, plant and equipment | (69.0) | (57.7) | 20% | (12.3) | (7.4) | 66% | (4.0) | (2.8) | 40% | (85.2) | (68.0) | 25% |
Directors and Supervisory Committee members' fees | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% | (1.6) | (1.0) | 62% | (1.6) | (1.0) | 62% |
ENRE penalties | (918.0) | (70.8) | 1200% | (128.4) | (2.7) | 4604% | 0.0 | 0.0 | 0% | (1,046.4) | (73.5) | 1323% |
Taxes and charges | 0.0 | 0.0 | 0% | (32.6) | (11.6) | 180% | (3.7) | (2.6) | 43% | (36.3) | (14.2) | 156% |
Other | (0.0) | (0.1) | (70%) | (0.0) | (0.0) | 47% | (1.1) | (1.0) | 6% | (1.2) | (1.2) | 1% |
Total | (1,845.1) | (822.5) | 124% | (473.2) | (195.2) | 142% | (273.0) | (169.6) | 61% | (2,591.3) | (1,187.2) | 118% |
EDENOR - Empresa Distribuidora y Comercializadora Norte SA published this content on 12 August 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 16 August 2016 16:05:09 UTC.
Original documenthttp://www.edenor.com/cms/files/SP/RI/comunicadosPrensa/2016-2doTrim-InformeDeGanancias.pdf
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