EARNINGS RELEASE Fourth Quarter 2020
March 11, 2020
Disclaimer
The material that follows is a presentation of general background information about Edenor as of the date of the presentation. It is information in summary form and does not purport to be complete. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of this information.
This presentation contains forward-looking information and statements. Forward-looking statements are statements that are not historical facts. These statements are only predictions based in our current assumptions, expectations and projections about future events. Forward-looking
statements may be identified by the words "believe," "expect," "anticipate," "target," or similar expressions. While Edenor's management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and are generally beyond the control of Edenor, which could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements." Further, if Edenor's actual results are less favorable than those shown in the projections or if the assumptions used in the projections prove to be incorrect, Edenor may not be able to make dividend payments in the amount forecasted, or at all. Edenor undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise, nor makes any representation or warranty, expressed or implied, as to the accuracy or completeness of the information contained herein, and nothing contained
herein is, or shall be relied upon as a promise or representation. Management is not making and you should not infer any representation about the likely existence of any particular future set of facts or circumstances.
This presentation does not constitute or form part of, and should not be construed as, any offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of Edenor nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of Edenor. Persons who intend to purchase or subscribe for securities of Edenor in any potential future offering are reminded that any such purchase or subscription may be made solely on the basis of the information contained in the prospectus or
offering circular in connection with such proposed offering. In particular, this presentation and the information contained herein are not an offer of securities for sale in the United States.
The market and competitive position data, including market forecasts, used throughout this presentation was obtained from internal surveys, market research, publicly available information and industry publications. Although we have no reason to believe that any of this information or these reports are inaccurate in any material respect, we have not independently verified the competitive position, market share, market size, market growth or other data provided by third parties or by industry or other publications. Edenor does not make any representation as to the accuracy of such information.
Sale of Edenor's Controlling Stake | December 28, 2020
• Pampa Energía sold it's controlling class A shares, representing 51% of capital stock, to Empresa de Energía Cono Sur
• Price of USD 95 million (in three installments) and 2.4% of Edenor's capital stock in class B shares
• Contingent payment of 50% of gains in case of sale during the first year after the closing of the transaction.
• Approved by Pampa Energías Shareholders on February 17th
• ENRE approval still pending
CBs Buyback Offer on account of the Change of Control
• CB holders will be entitled to repurchase all or any part of the CBs through the presentation of a Change of Control
• The offer will be made within 30 days of the change of control (Pampa and the ENRE approval), indicating the specific repurchase date, which will take place between 30 and 60 days after the sending of the notice of the change of control offer
• Banks specialized in debt restructuring have been contacted to evaluate the possible courses of action
Impairment of Long-lived Assets
• Recoverability analysis of the long-lived assets of the company was done
• Different scenarios of projected and discounted cash flows were used
• Based on this analysis a depreciation of property , plant and equipment for ARS17,396 million was recorded
Executive Order No. 1020/20 | December 16, 2020
• launch of the Integral Tariff Structure Review, which may not exceed two years of negotiations
• Transitory Renegotiation Agreements may be executed until reaching a Final Renegotiation Agreement
• ENRE's administrative intervention was postponed until December 31, 2021
• Tariff freeze was extended until March 31, 2021 or until the entry into effect of the new transitory tariff schemes
• January 19, 2021, the ENRE passed Resolution No. 16 launching the transitory tariff update procedure along with information requirements for the process
Call for Public Hearing on the Transitional Tariff Regime| February 24, 2021
• In order to inform and hear opinions regarding the Transitional Tariff Regime for Edenor and Edesur, the ENRE called a Public
Hearing for March 30th, 2021.
• The Hearing will be done virtually
Regularization of Liabilities with CAMMESA| January 21, 2021
• Resolution No. 40, established the "Special Liabilities Regularization Regime" for debts held with CAMMESA and/or the MEM
• The "Special Liabilities Regularization Regime" enforces the outlined in the section 87 of the 2021 Budget Law
• On march 3, 2021 information requirements by Cammesa to the company were served
Agreement on Joint Regulatory Exercise | January 19, 2021
• Edenor expressed its conformity with the Agreement on the Joint Exercise of Regulation and Control of the Electricity Distribution
Public Utility entered into by the Federal Government, the province and the city of Buenos Aires
• The agreement states that the Granting Authority in the Company's concession area will remain vested in the Federal
Government
Framework Agreement Collection| December 22, 2021
• Agreement was met to guarantee electricity supply to low-income neighborhoods in the metropolitan area of Buenos Aires
• As of year end 2020, the accumulated debt for shantytown consumption in the concession area of edenor was ARS 2,126 million
• Funds will be applied to a Works Plan associated with low-income neighborhoods to improve the quality of services provided there
• The first disbursement in the amount of AR$1,500 million has been received;
• The second disbursement, for AR$500 million, will be in the first quarter of 2021;
• The third disbursement, in the amount of AR$500 million, in the second quarter of 2021;
• The fourth disbursement for the remainder must still be validated by the ENRE and corresponds to the total consumption of shantytowns between the months of August and December 2020
Seasonal Programming Modification| February 24, 2021
• Stabilized price of energy of the Large Distribution Users (GUDI) was modified to equate it with the Large Users of the Wholesale
Electricity Market for the period between 1 of February and April 30, 2020.
• Public health / education agencies large users category was created and exempted from the increase
• National Electricity Fund tax was increased from ARS 80 / MWh to ARS 160 / MWh. Then, through resolution Enre No. 270/2021, the price change of this tax was postponed for invoices issued as of March 1, 2021
• Edenor requested the ENRE the transfer of the higher value of energy to GUDIs into the tariff
Onerous Transfer of Receivable from Ribera Desarrollos SA |January 18, 2021
• Regarding RDSA's reorganization proceeding, Edenor expressed its conformity with one of the submitted alternatives, which
requires making additional financial contributions
• Given the Company's complex economic and financial situation, and the necessity to focus resources in the investment plan,
added to the uncertainty regarding the recoverability of the credit, the Board of Directors accepted the offer for the transfer of such credit for a total amount of ARS 400 million plus a contingent price subject to the execution of the project under certain conditions
• The partial recovery of the provision has not been recorded in the present financial statements
4Q RESULTS | GROSS MARGIN
(in ARS billion | %)
4Q2020
Net operating income (loss)
(2.1)
Revenue from salesEnergy purchasesGross marginOpex
Asset Impairment
Financial resultsIncome taxNet incomeOther Opex
RECPAM
(loss)
GROSS MARGIN
(in ARS million)
ENERGY SALES EVOLUTION
Turnover b/ type of customer │ QoQ
Energy Sales Breakdown | 4Q 2020
Customers Evolution
Residential
Small Commercial
Medium Commercial
Industrial
Wheeling System
Others
(in thousands)
4Q RESULTS | OPERATING INCOME (LOSS)
(in ARS billion | %)
4Q2020
Net operating income (loss)
(2.1)
Revenue from salesEnergy purchasesGross marginOpex
Asset Impairment
Financial resultsIncome taxNet incomeOther Opex
RECPAM
(loss)
OPEX
(in ARS million)
Allowance for the impairment of trade
Fees and remuneration for services
+50%
4Q19 | 559
4Q20 | 837
+17%
4Q19 | 1,931
4Q20 | 2,263
ENRE penalties
Supplies Consumption
-83%
4Q19 | 503
4Q20 | 85
4Q RESULTS | FINANCIAL RESULTS
(in ARS billion | %)
4Q2020
Net operating income (loss)
(2.1)
Revenue from salesEnergy purchasesGross marginOpex
Asset Impairment
Financial resultsIncome taxNet incomeOther Opex
RECPAM
(loss)
FINANCIAL RESULTS
(in ARS million)
4Q RESULTS | NET INCOME
(in ARS billion | %)
4Q2020
Net operating income (loss)
(2.1)
Revenue from salesEnergy purchasesGross marginOpex
Asset Impairment
Financial resultsIncome taxNet incomeOther Opex
RECPAM
(loss)
EBITDA
(in ARS million)
Net operating income (+) Depreciations EBITDA
(+) Asset Impairment Adjusted EBITDA
4Q19
4Q20
(926) (20,490)
1,606 1,680
680 (18,810)
- 680
17,396 (1,414)
CAPITAL EXPENDITURES
(in ARS million | %)
▪ Realignment of the investment plan
▪ Lower demand registered during the last 3 years
▪ No impact on the service equality levels
Capex Evolution
Capex Breakdown
Grid enhancements
Network maint. & improvements
New connections
Communications and telecontrol
Other investment projects
Legal requirements
Investments Highlights
• Commissioning of the Colegiales, Libertad and Jose C Paz substations, and the new El Cruce step-down transformer center for 240 MVA
• Two new capacitor banks, of 150 MVA each, were mounted in the
Rodriguez substation
• 19 km of new high-voltage transmission lines were constructed and other 4.5 km were renewed
16
QUALITY OF SERVICE
SAIDI Path hrs │ year │ customer
SAIFI Path times │ year │ customer
RealRequested quality standards
ENERGY LOSSES
In Percentage
Per Quarter
TAM
20192020
INDEBTEDNESS
(in USD million)
Total Financial DebtON 2022
Net Debt
Risk Ratings - 2022 Corporate Bonds
LocalRating raCCC+
Global
CCC-
B - | Stable | Global
Local ($)
Local (USD)
Outlook NegativeDateDec.2020
Negative
Sep.2020
A.ar A-.ar Caa3
Negative Dec.2020 Negative
Global
Negative Dec.2020
Senior Note 2022
Amount | USD 98.3 MM Maturity | October 2022 Rate | 9.75%
Note: (1) @ December 2020
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Disclaimer
EDENOR - Empresa Distribuidora y Comercializadora Norte SA published this content on 11 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 March 2021 18:46:03 UTC.