UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2009
EMPRESA DISTRIBUIDORA Y COMERCIALIZADORA NORTE S.A. (EDENOR)
(DISTRIBUTION AND MARKETING COMPANY OF THE NORTH )
(Translation of Registrant's Name Into English)
Argentina
(Jurisdiction of incorporation or organization)
Azopardo 1025
Buenos Aires C1107ADQ
Argentina
(Address of principal executive offices)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F X Form 40-F
(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes No X
(If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .)
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This Form 6-K for Empresa Distribuidora y Comercializadora Norte S.A. (Edenor S.A.) contains:
(1) Press release issued by Edenor S.A. on August 11, 2009 entitled “Edenor Announces Second Quarter 2009 Results.”
(2) Financial statements of Edenor S.A. as of June 30, 2009 and December 31, 2008 and for the six-month periods ended June 30, 2009 and 2008, including the Report of the Supervisory Committee.
(3) Excerpt of the Minutes No. 306 of the Meeting of the Board of Directors of Edenor S.A.
Exhibit 1
Second Quarter 2009 Page 1 of 14 |
Stock Information:
NYSE ADR Ticker: EDN
Buenos Aires Stock Exchange Class B Shares Ticker: EDN
Ratio: 20 Class B = 1 ADR
Investor Relations Contacts: Ivana Del Rossi | EDENOR ANNOUNCES SECOND QUARTER 2009 RESULTS | |
Buenos Aires, Argentina, August 11, 2009 – 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 2009. All figures are stated in Argentine Pesos and have been prepared in accordance with Argentine GAAP. Solely for the convenience of the reader, Peso amounts as of and for the period ended June 30, 2009 have been translated into U.S. Dollars at the buying rate for U.S. Dollars quoted by Banco de la Nación Argentina (Banco Nación) on June 30, 2009 of Ps. 3.797. | ||
2Q09 Highlights | ||
Net Sales increased 11.3% to Ps. 508.3 million in the second quarter of 2009 from Ps. 456.8 million in the second quarter of 2008. This increase is mainly due to the recognition of the CMM adjustment approved in August 2008 (applied retroactively to July 2008) and the increase in the energy purchase price applied to certain customers. | ||
Volume of Energy Sold decreased by 5.0% to 4,414 GWh in the second quarter of 2009 from 4,645 GWh in the second quarter of 2008. The decrease in volume is attributable to a 7.3% decrease in the average GWh consumption per customer, partially compensated by a 2.5% increase in the number of customers. | ||
Electric Power Purchases increased 11.6%, to Ps. 251.6 million for the second quarter of 2009 from Ps. 225.5 million in the second quarter of 2008, mainly due to an increase in the energy purchase price applied to certain customers (Residential Customers with bimonthly consumption levels over 1000KWh, Commercial Customers and Industrial Customers with power consumption levels over 300 KW). This increase was partially offset by a decrease of 2.8% in the volume of electricity purchased, from 4,359 GWh in the second quarter of 2008 to 4,235 GWh in the second quarter of 2009 (excluding wheeling system demand). | ||
Second Quarter 2009 Page 2 of 14 |
| Gross Margin increased 10.9% to Ps. 256.6 million in the second quarter of 2009 from Ps. 231.3 million in the second quarter of 2008. This increase is mainly due to an increase in the VAD resulting from the application of the new electricity tariff schedule approved in August 2008 (applied retroactively to July 2008). | |
Net Operating Income decreased 6.7% to Ps. 44.3 million in the second quarter of 2009 from Ps. 47.5 million in the second quarter of 2008 mainly due to an increase in transmission and distribution expenses (Ps. 21.6 million) and an increase in administrative expenses (Ps. 8.3 million), which more than offset the increase in the gross margin and a decrease in selling expenses. | ||
Net Income increased 21.3% to Ps. 46.9 million in the second quarter of 2009 from Ps. 38.6 million in the second quarter of 2008 mainly due to an increase in other income resulting from a recovery of allowance for doubtful accounts related to the ratification of the New Addendum to our Framework Agreement with the Argentine National government and the Province of Buenos Aires, and a recovery of tax contingencies. | ||
Second Quarter 2009 Page 3 of 14 |
Discussion of Financial Results:
FINANCIAL HIGHLIGHTS |
| 2Q 2009* | 2Q 2008* | % Change | Three months | Three months | % Change | |||||||
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Net Sales | 508.3 | 456.8 | 11.3% | 1,060.5 | 912.4 | 16.2% | ||||||||
Electric power purchases | (251.6) | (225.5) | 11.6% | (519.3) | (440.4) | 17.9% | ||||||||
Gross margin | 256.6 | 231.3 | 10.9% | 540.9 | 472.1 | 14.6% | ||||||||
Net Operating Income (loss) | 44.3 | 47.5 | (6.7)% | 118.4 | 111.7 | 6.0% | ||||||||
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* In millions of Argentine Pesos |
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Net sales
Our net sales increased 11.3%, to Ps. 508.3 million in the second quarter of 2009 from Ps. 456.8 million in the second quarter of 2008.
Net energy sales represent approximately 98.0 % of our net sales; late payment charges, pole leases, and connection and reconnection charges represent the remaining 2.0 %. Energy sales increased by 11.8 % (Ps. 53.8 million) to Ps. 511.2 million in the second quarter of 2009 from Ps. 457.3 million in the second quarter of 2008. This increase was mainly due to the CMM adjustment approved in August 2008 and the increase in the energy purchase price applied to certain customers.
The increase in energy sales was partially offset by a decrease of 5.0 % in the volume of energy sold, from 4,645 GWh sold in the second quarter of 2008 to 4,414 GWh sold in the second quarter of 2009 which is attributable to a 7.3% decrease in the average GWh consumption per customer, partially offset by a 2.5 % increase in the number of customers.
For the six-month period ended June 30, 2009, the volume of energy sold decreased 2.9%, primarily due to a decrease of 5.1% in industrial customers demand (which represented 37.5% of the volume of energy sold in the first half of 2009) and to decreases in the range of 2% in the remaining categories of customers in this period.
Electric power purchasesThe amount of electric power purchases increased 11.6 %, to Ps. 251.6 million in the second quarter of 2009 from Ps. 225.5 million in the same period of 2008, mainly due to an increase in the energy purchase price applied to certain customers (residential customers with bimonthly consumption levels over 1000
Second Quarter 2009 Page 4 of 14 |
KWh, commercial customers and industrial customers with power consumption levels over 300 KW) which was partially offset by the effect of a 2.8 % decrease in the volume of electricity purchased, from 4,359 GWh in the second quarter of 2008 to 4,235 GWh in the second quarter of 2009 (excluding wheeling system demand).
Energy losses increased to 11.6% in the second quarter of 2009 from 10.6% in the second quarter of 2008. For the twelve months ended June 30, 2009 energy losses were 11.3%, representing a slight decrease compared to the 11.4% for the twelve months period ended June 30, 2008.
Gross marginOur gross margin increased 10.9 % to Ps. 256.6 million in the second quarter of 2009 from Ps. 231.3 million in the second quarter of 2008. This increase is mainly due to the increase resulting from the application of the new electricity tariff schedule, as described above.
Transmission and distribution expensesOur transmission and distribution expenses increased 18.4 % to Ps. 138.8 million in the second quarter of 2009 from Ps. 117.2 million in the second quarter of 2008, mainly due to a Ps. 14.9 million increase in salaries and social security taxes due to salaries increases granted in the second semester of 2008; and, a Ps. 7.4 million increase in outsourcing due to a higher activity and increases in contractors’ prices.
In terms of percentage of revenues, transmission and distribution expenses increased from 25.7% in the second quarter of 2008 to 27.3% in the second quarter of 2009.
The following table sets forth the principal components of our transmission and distribution expenses for the periods indicated:
| Second Quarter ended | Six months ended | ||||
| 1Q 2009 | % on 2Q | 2Q 2008 | % on 2Q | 2009 | 2008 |
| (in millions of Pesos) | |||||
Salaries and social security taxes | Ps. 54.5 | 10.7& | Ps. 39.6 | 8.7% | Ps. 103.2 | Ps. 73.1 |
Supplies | 7.0 | 1.4% | 5.9 | 1.3% | 14.4 | 16.3 |
Outsourcing | 29.2 | 5.7% | 21.8 | 4.8% | 53.8 | 47.3 |
Depreciation of property, plant & equipment | 43.7 | 8.6% | 42.1 | 9.2% | 85.2 | 82.4 |
Others | 4.4 | 0.9% | 7.8 | 1.7% | 8.1 | 15.5 |
Total | Ps.138.8 | 27.3% | Ps. 117.2 | 25.7% | Ps.264.7 | Ps. 234.6 |
Second Quarter 2009 Page 5 of 14 |
Selling expenses
Our selling expenses are related to customer services provided at our commercial offices, billing, invoice mailing, collection and collection procedures, as well as allowances for doubtful accounts.
Selling expenses decreased 3.5% to Ps. 33.5 million in the second quarter of 2009 from Ps. 34.7 million in the second quarter of 2008, primarily as a result of a Ps. 9.7 million decrease in our allowance for doubtful accounts resulting from the approval of the New Framework Agreement Addendum signed between the Company, the Argentine National Government and the Government of the Province of Buenos Aires. This decrease was partially offset by:
| • | a Ps. 5.4 million increase in salaries and social security taxes due to salaries increases granted inthe second semester of 2008; |
• | a Ps. 1.5 million increase in outsourcing attributable mainly to the greater activity by ourcontractors; and, | |
• | a Ps. 1.3 million in taxes and charges due to the increase in municipal and the ENRE contributions. |
In terms of percentage of revenues, selling expenses decreased from 7.6% in the second quarter of 2008 to 6.6% in the second quarter of 2009.
The following are the principal components of our selling expenses for the periods indicated:
| Second Quarter ended June 30, | Six months ended June 30, |
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| 2Q 2009 | % on 2Q 2009 revenues | 2Q 2008 | % on 2Q 2008 revenues | 2009 | 2008 |
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Salaries and social security taxes | Ps.13.3 | 2.6% | Ps. 7.9 | 1.7% | Ps.23.7 | Ps. 14.4 |
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Allowance for doubtful accounts | (0.3) | (0.1)% | 9.5 | 2.1% | 10.7 | 12.6 |
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Outsourcing | 9.8 | 1.9% | 8.3 | 1.8% | 19.1 | 16.5 |
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Taxes and charges | 4.4 | 0.9% | 3.1 | 0.7% | 9.4 | 6.1 |
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Others | 6.3 | 1.3% | 5.9 | 1.3% | 13.9 | 12.6 |
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Total | Ps. 33.5 | 6.6% | 34.7 | 7.6% | Ps. 76.8 | Ps. 62.2 |
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Administrative expenses
Our administrative expenses include, among others, expenses associated with accounting, payroll administration, personnel training, systems operation and maintenance.
Administrative expenses increased 26.1% to Ps. 40.1 million in the second quarter of 2009 from Ps. 31.8 million in the second quarter of 2008, primarily as a result of:
Second Quarter 2009 Page 6 of 14 |
| • | a Ps. 3.8 million increase in advertising expenses; |
| • | a Ps. 3.7 million increase in salaries and social security taxes due to salaries increases granted in the second semester of 2008; |
| • | a Ps. 2.1 million increase of tax on financial transactions due to an increase in expenses charges and the issuance of 2013 Notes, |
| • | a Ps.1.0 million in Computer Services due to an increase in the contract prices. |
These increases were partially offset by a Ps. 2.8 million decrease in outsourcing mainly attributable to lesser activity by our contractors.
In terms of percentage of revenues, administrative expenses increased from 6.9% in the second quarter of 2008 to 7.9% in the second quarter of 2009.
The following are the principal components of our administrative expenses for the periods indicated:
| Second Quarter ended | Six months ended | ||||
| 2Q 2009 | % on 2Q 2009 revenues | 2Q 2008 | % on 2Q | 2009 | 2008 |
| (in millions of Pesos) | |||||
Salaries and social security taxes | Ps. 14.8 | 2.9% | Ps. 11.2 | 2.5% | Ps 26.6 | Ps. 20.8 |
Computer services | 3.9 | 0.8% | 2.9 | 0.6% | 10.6 | 8.1 |
Outsourcing | 2.9 | 0.6% | 5.7 | 1.2% | 6.3 | 10.1 |
Tax on financial transactions | 8.5 | 1.7% | 6.4 | 1.4% | 16.9 | 12.8 |
Advertising expenses | 4.3 | 0.8% | 0.5 | 0.1% | 8.1 | 1.1 |
Others | 5.7 | 1.1% | 5.1 | 1.1% | 12.6 | 10.6 |
Total | Ps. 40.1 | 7.9% | 31.8 | 6.9% | Ps. 81.1 | Ps. 63.5 |
Net operating income
Our net operating income decreased Ps. 3.2 million (6.7%), from Ps. 47.5 million in the second quarter of 2008 to Ps. 44.3 million in the second quarter of 2009 mainly due to the increase in transmission and distribution expenses (Ps. 21.6 million) and the increase administrative expenses (Ps. 8.3 million), which more than offset the increase in the gross margin and the decrease in selling expenses described above.
Financial income (expenses) and holding gains (losses)
Financial income and holding gains generated by assets represented a gain of Ps. 42.4 million in the second quarter of 2009 compared to a loss of Ps. 2.4 million in the second quarter of 2008.
This increase of Ps. 44.8 million is primarily due to:
Second Quarter 2009 Page 7 of 14 |
| • | the holding gains resulting from the valuation at market of our residual interest in the financial trust as a result of an increase in the market value of its holdings.; |
| • | the gains from our coupon-only swap contracts due to a decline in the principal amount covered by such contracts; and, |
| • | the exchange gains on assets due to an increase of the exchange rate peso / USD. |
Financial expenses generated by liabilities which include financial interest, exchange results and other expenses, resulted in a loss of Ps. 44.7 million in the second quarter of 2009 compared to a gain of Ps. 18.2 million in the second quarter of 2008. These Ps. 62.9 million decrease is basically the result of an increase in exchange losses, generated by our liabilities, due to an increase in the exchange rate peso / USD.
Adjustment to present value of notes
We recorded a gain of Ps. 2.0 million in the second quarter of 2009 and a loss of Ps. 4.2 million in the second quarter of 2008 related to the non-cash adjustment to present value of our notes.
Other income (expenses), net
Other incomes (expenses), net, includes mainly voluntary retirements, severance payments, net revenues or expenses from technical transportation services between electricity distribution companies and accrual for lawsuits.
We recorded a gain of Ps. 39.8 million in the second quarter of 2009 compared to a loss of Ps. 4.6 million in the second quarter of 2008 mainly due to the recovery of the allowance for doubtful accounts (Ps. 21.2 million) resulting from the approval of the New Framework Agreement Addendum signed between the Company, the Argentine Federal Government and the Province of Buenos Aires, and the recovery of the allowance for tax contingencies (Ps. 23.4 million) due to the Company’s registration in the tax regularization plan established in Law n°26.476, both partially offset by an increase in provisions for accrued litigation (Ps. 3.0 million) and voluntary retirements (Ps. 1.3 million).
Income tax
We recorded a non cash tax charge of Ps. 30.1 million in the second quarter of 2009 compared to a charge of Ps. 19.3 million in the second quarter of 2008. This negative variation results from an increase in our taxable income.
Argentine GAAP requires the application of the deferred tax method to account for income tax. This method consists of recognizing deferred tax assets and liabilities when temporary differences arise from the valuation of assets and liabilities for accounting and tax purposes.
Second Quarter 2009 Page 8 of 14 |
Net income
Net Income increased 21.3% to Ps. 46.9 million in the second quarter of 2009 from Ps. 38.6 million in the second quarter of 2008 mainly due to an increase in other income resulting from a recovery of allowance for doubtful accounts related to the ratification of the New Addendum to our Framework Agreement with the Argentine National government and the Province of Buenos Aires, and a recovery of tax contingencies.
Operating Highlights
The following table shows our energy sales by category of customer (in GWh) and the number of clients for each category:
Capital Expenditures
During the second quarter of 2009, our capital expenditures amounted to Ps. 120.7 million, compared to Ps. 83.9 million in the second quarter of 2008. Our capital expenditures in the second quarter of 2009 consisted mainly of the following:
| • | Ps. 91.4 million in new connections due to increases in our customer base and grid enhancements; |
| • | Ps. 16.8 million in network maintenance and improvements; |
| • | Ps. 4.4 million in legal requirements; |
| • | Ps. 4.8 million in communications and telecontrol; and, |
| • | Ps. 3.3 million of other investment projects, including systems (hardware and software). |
For the six-month period ended June 30, 2009, our capital expenditures amounted to Ps.188.2 million, compared to Ps. 168.0 million in the same period of 2008.
HIGHLIGHTS
Debt Market Purchases – Financial position
Second Quarter 2009 Page 9 of 14 |
During the second quarter of 2009, through different market transactions, we repurchased approximately US$ 4.5 million principal amount of Senior Notes due 2017 and repurchased and cancelled approximately US$1.3 million principal amount of Fixed Rate Par Notes due 2016.
As of June 30, 2009, the outstanding principal amount of our financial debt in dollars is US$ 216.8 million (consisting of US$ 17.3 million principal amount of Par Notes due 2016, US$ 12.7 million Floating Rate Par Notes due 2019 and US$ 186.8 million principal amount of Senior Notes due 2017 net of the Notes that we hold). In addition, the outstanding principal amount of Floating Rate notes due 2013 in Pesos is Ps. 75.7 million.
As of June 30, 2009, the Financial Trust informed us that it held US$24.5 million principal amount of Senior Notes due 2017.
Framework Agreement
On May 15, 2009 the Province of Buenos Aires ratified the amendment to the Framework Agreement signed in June 2008 with the Argentine government, the Province of Buenos Aires and other national electricity distributors, agreeing to extend the framework agreement for four years from January 1, 2007.
This agreement was already ratified by the Argentine Government on September 22, 2008.
Tax Regularization Plan
On April 27, 2009, we registered in the tax regularization plan established in Law n° 26,476, which consists of a moratorium to resolve our tax deductions for doubtful accounts on our income tax returns for fiscal years 1996, 1997 and 1998 that the Argentine federal tax authorities’ had contested. The participation in the moratorium allowed us to waive some fines and penalties on which no final judgment has been issued and some late payment and penalty interest. Thus, we reversed the allowance for tax contingencies in the amount of Ps. 23.4 million.
RECENT EVENTS
New derivatives Contracts
On July 27, 2009 the Company entered into new derivatives financial instruments with Finansur SA Bank for a total amount of UD$ 10 million. These contracts were made in order to hedge the risks of fluctuations in the Dollar – Argentine Peso exchange rate.
In addition, with respect to these contracts, the Company created a guarantee of US$ 1.1 million.
Second Quarter 2009 Page 10 of 14 |
About Edenor
Empresa Distribuidora y Comercializadora Norte S.A. (Edenor) is the largest electricity distribution company in Argentina in terms of number of customers and electricity sold (both in GWh and Pesos). Through a concession, Edenor distributes electricity exclusively to the northwestern zone of the greater Buenos Aires metropolitan area and the northern part of the city of Buenos Aires, which has a population of approximately 7 million people and an area of 4,637 sq. km. In 2008, Edenor sold 18,616 GWh of energy and purchased 20,863 GWh of energy, with net sales of approximately Ps. 2.0 billion and net income of Ps. 123.1 million.
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management’s current view and estimates of future economic circumstances, industry conditions, Company performance and financial results. The words “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the Company are intended to identify forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties, including those identified in the documents filed by the Company with the U.S. Securities and Exchange Commission. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.
Conference Call Information
There will be a conference call to discuss the Edenor’s quarterly results on Tuesday, August 11, 2009, at 11:00 a.m. Buenos Aires time / 10:00 a.m. New York time. For those interested in participating, please dial (888)233-0826 in the United States or, if outside the United States, +1(973) 935-8877. Participants should use conference ID Edenor, and dial in five minutes before the call is set to begin. There will also be a live audio webcast of the conference at www.edenor.com in the Investor Relations section.
There will be a replay of the conference call available from 08/11/2009 10.00 to 08/18/2009 23.59. To access the replay, please dial 1(706) 645-9291. The Conference ID: Edenor.
For more information, please access www.edenor.com
Second Quarter 2009 Page 11 of 14 |
Income Statement
(for the six months period ended June, 2009 and 2008)
in thousands of U.S. dollars and Argentine Pesos
| For the six months period ended June 30, | ||
| 2009 | 2008 | |
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Net sales | USD 279,218 | Ps. 1,060,189 | Ps. 912,440 |
Electric power purchases | (136,756) | (519,262) | (440,387) |
Gross margin | 142,462 | 540,927 | 472,053 |
Transmission and distribution expenses | (69,702) | (264,660) | (234,641) |
Selling expenses | (20,226) | (76,798) | (62,229) |
Administrative expenses | (21,360) | (81,104) | (63,490) |
Net operating (loss) income | 31,173 |
118,365 |
111,693 |
Financial income (expense) and holding gains (losses): |
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Generated by assets: |
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Exchange difference | 2,596 | 9,856 | (3,324) |
Interest | 1,809 | 6,870 | 4,398 |
Exposure to inflation and holding results | 10,589 | 40,208 | (107) |
Generated by liabilities: |
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Financial expenses | (1,629) | (6,186) | (5,106) |
Exchange difference | (22,502) | (85,439) | 31,562 |
Interest expenses | (11,838) | (44,947) | (36,184) |
Adjustment to present value of the new notes | (1,261) | (4.789) | (4,400) |
Gain from the repurchased of notes | 18,291 | 69,451 | 0 |
Adjustment to present value of repurchased of notes | 1,991 | 7,559 | 0 |
Adjustment to present value of the retroactive tariff increase arising from the application of the new electricity rate schedule and from the Payment Plan Agreement with the Province of Bs.As. | (2,806) | (10,655) | 7,233 |
Other income (expenses), net | 9,073 | 34,449 | (11,284) |
Income before taxes | 34,486 | 134,742 | 94,481 |
Income tax | (15,219) | (57,785) | (36,852) |
Net income | 20,268 | 76,957 | 57,629 |
*Financial tables have been converted into U.S. dollars at a rate of Ps. 3.797 per dollar, the buying rate as of June 30, 2009, solely for the convenience of the reader.
Second Quarter 2009 Page 12 of 14 |
Cash Flow Statement
(for the six months period ended June 30, 2009 and 2008)
in thousands of U.S. dollars and Argentine Pesos
For the six months period ended June 30, | |||
| 2009 | 2008 | |
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Net income for the year | USD20,268 | Ps.76,957 | Ps.57,629 |
Adjustment to reconcile net income to net cash flows provided by operating activities: |
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Depreciation of property, plant and equipment | 22,976 | 87,241 | 83,771 |
Retirement of property, plant and equipment | 55 | 209 | 631 |
Gain from investments | (12,954) | (49,185) | (1,411) |
Gain from investments (SACME S.A.) | (17) | (65) | (34) |
Adjustment to present value of notes |
1,261 | 4,789 | 4,400 |
Gain/Loss from the repurchase and redemption of notes | (18,291) | (69,451) | 0 |
Adjustment to present value of purchased and redeemed notes | (1,991) | (7,559) | 0 |
Exchange differences, interest and penalties on loans | 32,243 | 122,428 | (20,048) |
Recovery of the allowance for tax contingency | (9,363) | (35,553) | 0 |
Income tax | 15,219 | 57,785 | 36,852 |
Allowance for doubtful accounts | 2,820 | 10,706 | 11,443 |
Recovery of allowance for doubtful accounts | (7,099) | (26,956) | 0 |
Allowance for other doubtful account | 766 | 2,907 | 1,173 |
Adjustment to present value of the retroactive tariff increase arising from the application of the new electricity rate schedule and of the Payment Plan Agreement with the Province of Bs.As | 2,806 | 10,655 | (7,233) |
Changes in operating assets and liabilities: |
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Net increase in trade receivables | 3,899 | 14,803 | 8,182 |
Net increase in other receivables | (6,775) | (25,723) | (29,390) |
(Increase) decrease in supplies | (383) | (1,455) | 1,854 |
Second Quarter 2009 Page 13 of 14 |
Increase in trade accounts payable | (3,986) | 15,135 | (22,251) |
Increase in salaries and social security taxes | (361) | (1,369) | (1,617) |
Increase (decrease) in taxes | (248) | (941) | 10,086 |
Increase in other liabilities | 28,397 | 107,824 | 13,182 |
Net increase in accrued litigation | 934 | 3,546 | 6,956 |
Financial interest paid (net of interest capitalized) | (9,452) | (35,891) | (24,088) |
Financial interest collected | 3,454 | 13,115 | 2,773 |
Net cash flow provided by operating activities | 72,150 | 273,952 | 132,860 |
Cash Flow from investing activities: |
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Addition to property, plants and equipment | (49,100) | (186,434) | (155,761) |
Net cash flow used in investing activities | (49,100) | (186,434) | (155,761) |
Cash Flow from financing activities: |
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Decrease in non-current investments | 2,041 | 7,750 | 0 |
Increase in loans | 2,866 | 10,884 | 48,812 |
Net cash flows provided by (used in) financing activities | 4,908 | 18,634 | 48,812 |
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Cash variations: |
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Cash at beginning of year | 33,289 | 126,399 | 101,198 |
Cash at end of year | 61,246 | 232,551 | 127,109 |
Net increase (decrease) in cash | 27,957 | 106,152 | 25,911 |
*Financial tables have been converted into U.S. dollars at a rate of Ps. 3.797 per dollar, the buying rate as of June 30, 2009, solely for the convenience of the reader.
Second Quarter 2009 Page 14 of 14 |
Balance Sheet
(for the six months ended June 30, 2009 and the year ended December 31, 2008)
in thousands of U.S. dollars and Argentine Pesos
| For the six months ended June 30, | For the year ended December 31, | |
| 2009 | 2008 | |
Current Assets: |
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Cash and banks | USD 2,084 | Ps.7,913 | Ps. 6,061 |
Investments | 59,346 | 225,336 | 121,019 |
Trade receivables | 110,033 | 417,794 | 446,022 |
Other receivables | 9,869 | 37,471 | 42,801 |
Supplies | 2,032 | 7,714 | 16,705 |
Total current assets | 183,363 | 696,228 | 632,608 |
Non-Current Assets: |
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Trade receivables | 21,884 | 83,094 | 65,839 |
Other receivables | 18,392 | 69,833 | 99,472 |
Investments | 122 | 462 | 397 |
Other Investments | 25,620 | 97,280 | 67,212 |
Supplies | 6,134 | 23,290 | 12,844 |
Property, plant and equipment | 884,116 | 3,356,988 | 3,256,258 |
Total non-current assets | 956,267 | 3,630,947 | 3,502.022 |
Total assets | 1,139,630 | 4,327,175 | 4,134,630 |
Current Liabilities: |
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Trade account payable | 92,885 | 352,686 | 339,261 |
Loans | 19,106 | 72,547 | 27,245 |
Salaries and social security taxes | 24,225 | 91,982 | 94,787 |
Taxes | 26,359 | 100,085 | 111,021 |
Other liabilities | 38,369 | 145,688 | 44,008 |
Accrued Litigation | 14,681 | 55,743 | 52,756 |
Total current liabilities | 215,626 | 818,731 | 669,078 |
Non-Current Liabilities: |
|
|
|
Trade account payable | 11,026 | 41,864 | 40,154 |
Loans | 235,198 | 893,046 | 913,148 |
Salaries and social security taxes | 10,937 | 41,526 | 40,090 |
Taxes | 2,632 | 9,995 | 0 |
Other liabilities | 90,441 | 343,406 | 335,516 |
Accrued Litigation | 2,656 | 10,084 | 45,078 |
Total non-current liabilities | 352,889 | 1,339,921 | 13,73,983 |
Total liabilities | 568,515 | 2,158,652 | 2,043,064 |
Shareholders’ equity | 571,115 | 2,168,523 | 2,091,566 |
Total liabilities and shareholders’ equity | 1,139,630 | 4,327,175 | 4,134,630 |
*Financial tables have been converted into U.S. dollars at a rate of Ps. 3.797 per dollar, the buying rate as of June 30, 2009, solely for the convenience of the reader.
Class of shares | Subscribed and paid-in |
Common, book-entry shares, face value 1 and 1 vote per share | |
Class A | 462,292,111 |
Class B (1) | 442,210,385 |
Class C | 1,952,604 |
906,455,100 | |
- | Maximum amount to invest: up to pesos 45,000,000 |
- | Maximum number of shares included in the offering: up to 65,000,000 common, Class B and/or C shares, representing approximately 7.17% of the Company’s capital stock, with a nominal value of 1 peso each and the right to one vote per share |
- | Source of the funds: the acquisition of shares will be made with realized and liquid profits resulting from the financial statements for the six-month period ended June 30, 2008 and approved by the Company’s Board of Directors on August 7, 2008. Additionally, it is stated that the Company is liquid and has the necessary economic resources to guarantee full satisfaction of the offering. |
- | Scope of the offering: it was exclusively carried out in Argentina. |
- | Maximum amount to invest: up to pesos 45,000,000 |
- | Maximum number of Class B shares to be acquired: the number of common Class B shares, with a nominal value of 1 peso each and the right to one vote per share, equivalent to the maximum amount to invest, which may not exceed at any time, the maximum limit of treasury stock which the Company may own, in accordance with applicable regulations. |
- | Daily limit for market transactions: up to 25% of the average daily transaction volume in the markets where the shares are listed, for the preceding 90-day period, in accordance with applicable regulations. |
- | Price to be paid for the shares: between a minimum of 0.50 and a maximum of 0.80 peso per share. |
- | Acquisition period: 120 calendar days to commence from the working day following the date of publication of the information in the Daily Bulletin of the Buenos Aires Stock Exchange, which took place on November 17, 2008. Such period may be reduced, renewed or extended. Investors will be informed of any such reduction, renewal or extension through the above-mentioned bulletin. |
- | Source of the funds: the acquisition of shares will be made with realized and liquid profits resulting from the financial statements for the nine-month period ended September 30, 2008 and approved by the Company’s Board of Directors on November 5, 2008. Additionally, it is stated that the Company is liquid so as to make the aforementioned acquisitions without affecting its creditworthiness. |
Holder | Number of shares | Class | % held |
EASA (1) | 462,292,111 | “A” | 51.00 |
Market in general (2) | 442,210,356 | “B” | 48.78 |
Banco Nación (3) | 1,952,604 | “C” | 0.22 |
New Equity Ventures LLC | 19 | “B” | 0 |
EDF Internacional S.A. | 10 | “B” | 0 |
Year | Effect on deferred tax result Nominal value |
2009 (six months) | 13,198 |
2010 | 25,011 |
2011 | 24,084 |
2012 – 2016 | 106,866 |
2017 – 2021 | 88,058 |
Remainder | 139,366 |
Total | 396,583 |
a) | Cash and banks: |
- | In local currency: at nominal value. |
- | In foreign currency: at the exchange rate in effect as of the end of the period/year. The corresponding detail is disclosed in Exhibit G. |
b) | Current investments: |
- | Time deposits, which include the portion of interest income accrued through the end of the period/year. |
- | Money market funds, which have been valued at the prevailing market price as of the end of the period/year. |
- | Government bonds, which have been valued at the market price as of the end of the period/year. |
c) | Trade receivables: |
- | Services rendered and billed but not collected, and services rendered but unbilled as of the end of the period/year, at nominal value, except for those indicated in the following paragraph; |
- | Services rendered but unbilled as of the end of the period/year, arising from the retroactive increase deriving from the application of the electricity rate schedule resulting from the RTT (Note 17.b) have been valued on the basis of the best estimate of the amount to be collected, discounted at a 10.5% annual nominal rate, which, in accordance with the Company’s criterion, reasonably reflected market assessments of the time value of money and risks specific to the receivable at the time of their initial measurement. |
- | The balance with the Argentine Federal Government and the Government of the Province of Buenos Aires for Framework Agreement (Note 13) have been valued on the basis of the best estimate of the amount to be collected, discounted at a 19.62% annual nominal rate, which, in accordance with the Company’s criterion, reasonably reflected market assessments of the time value of money and risks specific to the receivable at the time of their initial measurement. |
1. | are net of an allowance for doubtful accounts, as described in more detail in paragraph h) of this Note. |
2. | consider the effects of that which is stated in Note 13. |
d) | Other receivables and liabilities (excluding loans): |
- | In local currency: at nominal value. |
- | In foreign currency: at the exchange rate in effect as of the end of the period/year (Exhibit G). |
e) | Supplies: |
f) | Non-current investments: |
- | 50% interest held in the related company SACME S.A. (a company organized by means of equal contributions by distribution companies EDENOR S.A. and EDESUR S.A. in accordance with the Bid Package). SACME S.A. is in charge of monitoring the electric power supplied to the aforementioned distributors. As of June 30, 2009 and December 31, 2008, the investment in SACME has been recorded at its equity value (Exhibit C). |
- | Corporate Notes of Central Térmica Güemes: As of December 31, 2008, the aforementioned corporate notes have been valued at their acquisition value plus interest income accrued translated into pesos at the rate of exchange in effect as of year-end. |
- | Municipal Financial Restructuring Bonds (Municipal Bonds) issued pursuant to Law No. 11,752 of the Province of Buenos Aires were valued at their acquisition value, including the inflation-linked CER (“benchmark stabilization coefficient”) adjustment and interest accrued at an annual rate of 4%. |
- | Discretionary trust: As of the end of the period/year, its value has been based upon the market price of the securities kept by the trustee translated into pesos at the rate of exchange in effect as of the end of the period/year (Note 22). |
g) | Property, plant and equipment: |
h) | Allowances (Exhibit E): |
i) | Accrued litigation: |
1) | The Company is a party to certain lawsuits and administrative proceedings in several courts and government agencies, including certain tax contingencies arising from the ordinary course of business. The Argentine tax authority (“AFIP”) had challenged certain income tax deductions related to allowances for doubtful accounts made by the Company on its income tax returns for fiscal years 1996, 1997 and 1998, and had assessed additional taxes for approximately 9,300. Tax related contingencies were subject to interest charges and, in some cases, to fines. For these concepts, the Company had recorded an accrual for 29,521. This matter was on appeal to the Federal Tax Court and the Federal Appellate Court in Administrative Matters. During the appeal process, payment of such claim had been suspended. |
2) | The Company is also a party to civil and labor lawsuits in the ordinary course of business. At the end of the period/year, management evaluates these contingencies and records an accrual for related potential losses when: (i) payment thereof is probable, and (ii) the amount can be reasonably estimated. The Company estimates that any loss in excess of amounts accrued in relation to the above matters will not have a material adverse effect on the Company’s result of operations or its financial position. |
j) | Loans: |
k) | Shareholders' equity accounts: |
l) | Statement of income accounts: |
- | The accounts that accumulate monetary transactions have been disclosed at their nominal values. |
- | Financial income (expense) and holding gains (losses) have been disclosed separately under income (expense) generated by assets and by liabilities. |
- | The adjustment to present value of the notes is stated at nominal value. |
- | The adjustment to present value of trade receivables related to both the application of the retroactive tariff increase agreed upon in the Adjustment Agreement and the payment plan agreement signed with the Province of Buenos Aires for amounts deriving from the Framework Agreement is stated at nominal value. |
m) | Income tax and tax on minimum presumed income: |
2009 | 2008 | |
Income for the period before taxes | 134,742 | 94,481 |
Applicable tax rate | 35% | 35% |
Income for the period at the applicable tax rate | 47,160 | 33,068 |
Permanent differences | ||
Adjustment for inflation of property, plant and equipment | 13,638 | 14,521 |
Accruals and other | (3,013) | (10,737) |
Total income tax charge for the period | 57,785 | 36,852 |
Adjustment of Income Tax Return fiscal year 2008 | 1,636 | 0 |
Variation between deferred assets (liabilities) charged to income | (4,422) | 15,152 |
Income tax for the period | 54,999 | 52,004 |
2009 | 2008 | |
Non-current deferred tax assets | ||
Tax-loss carry forward | 0 | 8,316 |
Accruals | 98,732 | 74,823 |
Others | 14,507 | 15,577 |
113,239 | 98,716 |
2008 | 2007 | |
Non-current deferred tax liabilities | ||
Property, plant and equipment and others | (45,209) | (17,948) |
Net deferred tax assets | 68,030 | 80,768 |
2009 | 2008 | |
Initial balance Net deferred tax assets | 80,768 | 42,197 |
Use of tax loss carryforward | (8,316) | 0 |
Variation between deferred assets (liabilities) charged to income | (4,422) | 38,571 |
Ending balance Net deferred tax assets | 68,030 | 80,768 |
n) Operating leases |
2009 | 2008 | |
2009 | 3,707 | 6,031 |
2010 | 6,549 | 5,934 |
2011 | 2,404 | 2,275 |
2012 | 298 | 259 |
2013 | 208 | 203 |
2014 | 147 | 147 |
Total future minimum lease payments | 13,313 | 14,849 |
2009 | 2008 | |
Total lease expenses | 4,050 | 1,990 |
2009 | 2008 | |
2009 | 6.177 | 10.303 |
2010 | 5.151 | 1.490 |
2011 | 2.123 | 0 |
2012 | 30 | 0 |
2013 | 30 | 0 |
2014 | 7 | 0 |
Total future minimum lease collections | 13.518 | 11.793 |
2009 | 2008 | |
Total lease income (Note 11) | 6,367 | 5,570 |
o) | Labor cost liabilities and early retirements payable: |
- | for supplementary benefits of leaves of absence derived from accumulated vacation, |
- | for seniority-based bonus to be granted to employees with a specified number of years of employment, as stipulated in collective bargaining agreements in effect. As of June 30, 2009 and December 31, 2008, the accrual for such bonuses amounted to 8,715 and 8,001, respectively, and |
- | for other personnel benefits (pension plan) to be granted to employees upon retirement, as stipulated in collective bargaining agreements in effect. As of June 30, 2009 and December 31, 2008, the accrual for these benefits amounted to 21,274 and 18,048, respectively. |
- |
2009 | 2008 | |
Cost | 804 | 327 |
Interest | 2,422 | 995 |
Amortization of recognized net actuarial loss | 657 | 190 |
3,883 | 1,512 |
2009 | 2008 | |
Payment commitments under the personnel benefits plan at the beginning of the year | 26,623 | 19,083 |
Cost | 804 | 1,488 |
Interest | 2,422 | 4,441 |
Actuarial loss | 0 | 3,638 |
Benefits paid to participating employees | (657) | (2,027) |
Payment commitments under the personnel benefits plan at the end of the period | 29,192 | 26,623 |
Payment commitments under the personnel benefits plan at the end of the period | 29,192 | 26,623 |
Unrecognized net actuarial loss | (7,918) | (8,575) |
Total personnel benefits plan (Note 8) | 21,274 | 18,048 |
2009 | |
Discount rate | 18% |
Salary increase | 15% |
Inflation | 11.5% |
p) | Customer deposits and contributions:: |
1. | When the power supply is requested and the user is unable to provide evidence of his legal ownership of the premises; |
2. | When service has been suspended more than once in one-year period; |
3. | When the power supply is reconnected and the Company is able to verify the illegal use of the service (fraud). |
4. | When the customer is undergoing liquidated bankruptcy or reorganization proceedings. |
q) | Revenue recognition: |
r) | Estimates: |
s) | Earnings per common share: |
t) | Segment information: |
u) | Risk management: |
v) | Concentration risks: |
w) | Foreign currency translation/ transactions: |
2009 | 2008 | |||||||
Current: | ||||||||
Receivables from sales of electricity: | ||||||||
Billed | 182,383 | 166,958 | ||||||
Unbilled | ||||||||
Sales of electricity | 190,429 | 209,879 | ||||||
Retroactive tariff increase arising from the application of the new electricity rate schedule (Note 17.b item d) | 38,204 | 39,361 | ||||||
Adjustment to present value of the retroactive tariff increase arising from the application of the new electricity rate schedule (Note 3.c) | (2,535 | ) | (2,516 | ) | ||||
Framework Agreement (Notes 3.c, 3.v and 13) | 10,052 | 49,390 | ||||||
Adjustment to present value of the Framework Agreement (Notes 3.c, 3.v and 13) | (1,477 | ) | 0 | |||||
Framework Agreement - Payment plan agreement with the Province of Bs. As. (Note 13) | 2,292 | 2,292 | ||||||
National Fund of Electricity (Note 17.a) | 3,273 | 2,812 | ||||||
Specific fee payable for the expansion of the network, transportation and others (Note 17.b) | 1,545 | 929 | ||||||
In litigation | 10,475 | 10,014 | ||||||
Subtotal | 434,641 | 479,119 | ||||||
Less: | ||||||||
Allowance for doubtful accounts (Exhibit E) | (16,847 | ) | (33,097 | ) | ||||
417,794 | 446,022 | |||||||
Non-Current: | ||||||||
Receivables from sales of electricity: | ||||||||
Unbilled | ||||||||
Retroactive tariff increase arising from the application of the new electricity rate schedule (Note 17.b item d) | 55,641 | 79,487 | ||||||
Adjustment to present value of the retroactive tariff increase arising from the application of the new electricity rate schedule (Note 3.c) | (8,422 | ) | (13,648 | ) | ||||
Framework Agreement (Notes 3.c, 3.v and 13) | 50,260 | 0 | ||||||
Framework Agreement - Payment plan agreement with the Province of Bs. As. (Notes 3.c, 3.v and 13) | (14,385 | ) | 0 | |||||
83,094 | 65,839 |
2009 | 2008 | |||||||
Current: | ||||||||
Prepaid expenses | 3,074 | 976 | ||||||
Advances to suppliers | 476 | 3,088 | ||||||
Advances to personnel | 11,238 | 7,451 | ||||||
Related parties (Note 15) | 449 | 449 | ||||||
Writs of attachment under ENRE proceedings (Note 17.a) | 0 | 59 | ||||||
Other debtors (1) | 13,447 | 15,271 | ||||||
Allowance for other doubtful accounts (Exhibit E) | (7,480 | ) | (4,573 | ) | ||||
Initial margin (2) (Notes 3.u and 23.b) | 6,011 | 0 | ||||||
Tax credit on minimum presumed income (Note 3.m) | 0 | 10,255 | ||||||
Tax on financial transfers | 659 | 3,866 | ||||||
Other (3) | 9,597 | 5,959 | ||||||
37,471 | 42,801 | |||||||
Non-current: | ||||||||
Prepaid expenses | 1,560 | 1,680 | ||||||
Tax credit on minimum presumed income (Note 3.m) | 0 | 16,956 | ||||||
Net deferred tax assets (Note 3.m) | 68,030 | 80,768 | ||||||
Other | 243 | 68 | ||||||
69,833 | 99,472 |
(1) | Includes 930 and 852 in foreign currency (Exhibit G) as of June 30, 2009 and December 31, 2008, respectively. |
(2) | Includes 6,011 in foreign currency (Exhibit G) as of June 30, 2009. |
(3) | Includes 2,533 and 11 in foreign currency (Exhibit G) as of June 30, 2009 and December 31, 2008, respectively. Additionally, includes 3,915 related to the economic effects generated by the transactions carried out with derivative financial instruments (Notes 3.u and 23.b). |
2009 | 2008 | |||||||
Current: | ||||||||
Payables for purchase of electricity and other purchases (1) | 216,438 | 217,086 | ||||||
Unbilled electric power purchases | 105,364 | 97,619 | ||||||
Customer contributions (Note 3.p) | 28,015 | 23,078 | ||||||
Other | 2,869 | 1,478 | ||||||
352,686 | 339,261 | |||||||
Non-Current: | ||||||||
Customer deposits (Note 3.p) | 41,864 | 40,154 |
(1) | Includes 31,611 and 23,093 in foreign currency (Exhibit G) as of June 30, 2009 and December 31, 2008, respectively. Also, includes balances with SACME S.A. for 851 and 910, and with Préstamos y Servicios S.A. for 8 and 7 as of June 30, 2009 and December 31, 2008, respectively and with Errecondo, Salaverri, Dellatorre, Gonzalez & Burgio for 6 as of December 31, 2008 (Note 15). |
7. | LOANS |
2009 | 2008 | |||||||
Current: | ||||||||
Financial loans: | ||||||||
Principal (1) | 60,333 | 17,771 | ||||||
Interest (2) | 708 | 462 | ||||||
Subtotal financial loans | 61,041 | 18,233 | ||||||
Corporate Notes (Note 14): | ||||||||
Interest (3) | 11,506 | 9,012 | ||||||
72,547 | 27,245 |
Non-current: | ||||||||
Financial loans: | ||||||||
Principal | 16,667 | 33,334 | ||||||
Corporate Notes (Note 14): | ||||||||
Floating Rate Par Notes – Class 8 | 75,700 | 0 | ||||||
Fixed Rate Notes – Class 7 (4) | 709,382 | 699,232 | ||||||
Fixed and Incremental Rate Par Notes – Class A (4) | 65,640 | 148,960 | ||||||
Fixed and Incremental Rate Par Notes – Class B (4) | 0 | 15,107 | ||||||
Floating Rate Par Notes – Class A (4) | 48,054 | 43,701 | ||||||
Subtotal corporate notes | 898,776 | 907,000 | ||||||
Adjustment to present value of notes (Note 3.j) | (22,397 | ) | (27,186 | ) | ||||
Corporate Notes at present value | 876,379 | 879,814 | ||||||
893,046 | 913,148 | |||||||
(1) | Includes 1,105 in foreign currency (Exhibit G) as of December 31, 2008. |
(2) | Includes 35 in foreign currency (Exhibit G) as of December 31, 2008. |
(3) | Includes 9,268 and 9,012 in foreign currency (Exhibit G) as of June 30, 2009 and December 31, 2008, respectively. Net of 7,116 and 7,905 related to derivative financial instruments as of June 30, 2009 and December 31, 2008, respectively (Note 23.a). |
(4) | In foreign currency (Exhibit G) as of June 30, 2009 and December 31, 2008. respectively. |
2009 | 2008 | |||||||
Current: | ||||||||
Salaries payable and accruals | 76,077 | 79,315 | ||||||
Social Security (ANSES) | 9,697 | 8,657 | ||||||
Early retirements payable (Note 3.o) | 6,208 | 6,815 | ||||||
91,982 | 94,787 | |||||||
Non-Current (Note 3.o): | ||||||||
Personnel Benefits Plan | 21,274 | 18,048 | ||||||
Seniority-based bonus | 8,715 | 8,001 | ||||||
Early retirements payable | 11,537 | 14,041 | ||||||
41,526 | 40,090 |
2009 | 2008 | |||||||
Current: | ||||||||
Provincial, municipal and federal contributions and taxes | 21,892 | 22,796 | ||||||
Value Added Tax (VAT) | 27,356 | 32,912 | ||||||
Income Tax and Tax on minimum presumed income (net of advances, withholdings and payments on account) (Note 3.m) | 9,483 | 22,151 | ||||||
Withholdings | 8,254 | 5,436 | ||||||
Municipal taxes | 23,023 | 21,844 | ||||||
Tax regularization plan Law No. 26,476 (Note 3.i.1) | 1,210 | 0 | ||||||
Other | 8,867 | 5,882 | ||||||
100,085 | 111,021 | |||||||
Non-Current: | ||||||||
Tax regularization plan Law No. 26,476 (Note 3.i.1) | 9,995 | 0 |
2009 | 2008 | |||||||
Current: | ||||||||
Capital expenditures fund – CAMMESA (Note 17.b) | 0 | 2,066 | ||||||
Program for the rational use of electric power (PUREE) | 135,308 | 33,494 | ||||||
Other (1) | 10,380 | 8,448 | ||||||
145,688 | 44,008 | |||||||
Non-current: | ||||||||
ENRE penalties (Note 17 a and b) | 342,292 | 331,613 | ||||||
Other (2) | 1,114 | 3,903 | ||||||
343,406 | 335,516 |
(1) | Includes 1,320 and 1,292 in foreign currency (Exhibit G) as of June 30, 2009 and December 31, 2008, respectively. |
(2) | Software lease agreement (Note 3.g). |
2009 | 2008 | |||||||
Sales of electricity (1) | 1,039,981 | 895,890 | ||||||
Late payment charges | 10,191 | 8,207 | ||||||
Right of use on poles (Note 3.n) | 6,367 | 5,570 | ||||||
Connection charges | 2,641 | 2,220 | ||||||
Reconnection charges | 1,009 | 553 | ||||||
1,060,189 | 912,440 |
2009 | 2008 | |||||||
Non-operating income | 1,156 | 2,495 | ||||||
Commissions on municipal taxes collection | 1,612 | 909 | ||||||
Net expense from technical services | (1,458 | ) | (1,365 | ) | ||||
Voluntary Retirements - Bonuses | (4,108 | ) | (4,649 | ) | ||||
Severance paid | (2,398 | ) | (2,769 | ) | ||||
Accrued litigation (Exhibit E) | (6,000 | ) | (9,400 | ) | ||||
Disposal of property, plant and equipment | (209 | ) | (632 | ) | ||||
Recovery of allowance for doubtful accounts (1) | 21,236 | 0 | ||||||
Net recovery of accrued litigation (2) | 23,431 | 0 | ||||||
Other | 1,187 | 4,127 | ||||||
34,449 | (11,284 | ) |
Year | Amount |
2010 | 17,465 |
2011 | 32,254 |
2012 | 32,254 |
2013 | 20,634 |
2014 | 8,969 |
2015 | 8,969 |
2016 | 35,221 |
2017 | 714,189 |
2018 | 4,807 |
2019 | 24,014 |
898,776 |
- making certain payments (including, among others, dividends, purchases of Edenor’s common shares or payments on subordinated debt). |
2009 | 2008 | |||||||
Current investments (Exhibit D) | ||||||||
Central Térmica Güemes | 0 | 393 | ||||||
Total | 0 | 393 | ||||||
Other receivables (Note 5) | ||||||||
Electricidad Argentina S.A. | 1 | 1 | ||||||
SACME S.A. | 448 | 448 | ||||||
Total | 449 | 449 | ||||||
Trade accounts payable (Note 6) | ||||||||
Errecondo, Salaverri, Dellatorre, Gonzalez & Burgio | 0 | (6 | ) | |||||
SACME S.A. | (851 | ) | (910 | ) | ||||
Préstamos y Servicios S.A. | (8 | ) | (7 | ) | ||||
Total | (859 | ) | (923 | ) | ||||
Non-Current Investments (Exhibit D) | ||||||||
Central Térmica Güemes | 0 | 10,784 | ||||||
Total | 0 | 10,784 |
2009 | 2008 | |||||||
Other income | ||||||||
Electricidad Argentina S.A. | 5 | 4 | ||||||
Total | 5 | 4 | ||||||
Expenses from services | ||||||||
SACME S.A. | (2,495 | ) | (1,929 | ) | ||||
Electricidad Argentina S.A. | 0 | (136 | ) | |||||
Préstamos y Servicios S.A. | (307 | ) | 0 | |||||
Errecondo, Salaverri, Dellatorre, Gonzalez & Burgio | (25 | ) | (37 | ) | ||||
Total | (2,827 | ) | (2,102 | ) | ||||
Financial expenses and interest | ||||||||
Electricidad Argentina S.A. | (4,526 | ) | (3,941 | ) | ||||
Errecondo, Salaverri, Dellatorre, Gonzalez & Burgio | (145 | ) | (160 | ) | ||||
Total | (4,671 | ) | (4,101 | ) |
a) | General |
b) | Restriction on the transfer of the Company’s common shares |
c) | Employee Stock Ownership Program (ESOP) |
d) | Absorption of unappropriated retained earnings: |
a) | General |
1. | Deviation from quality levels of technical product, as measured by voltage levels and network variations; |
2. | Deviation from quality levels of technical service, as measured by the average interruption frequency per Kilovatios (KVA) and total interruption time per KVA; |
3. | Deviation from quality levels of commercial service, as measured by the number of claims and complaints made by customers, service connection times, the number of estimated bills and billing mistakes; |
4. | Failure to comply with information gathering and processing requirements so as to evaluate the quality of both the technical product and the technical service; |
i) | the implementation of a Temporary Tariff Regime (RTT) effective as from November 1, 2005, including a 23% average increase in the distribution margin, which may not result in an increase in the average tariff of more than 15%, and an additional 5% average increase in the value added distribution (VAD), allocated to certain specified capital expenditures; |
ii) | the requirement that during the term of said temporary tariff regime, dividend payment be subject to the approval of the regulatory authority; |
iii) | the establishment of a “social tariff” for the needy and the levels of quality of the service to be rendered; |
iv) | the suspension of the claims and legal actions filed by the Company and its shareholders in national or foreign courts due to the effects caused by the Economic Emergency Law; |
v) | the carrying out of a Revision of the Company Tariff Structure (RTI) which will result in a new tariff regime that will go into effect on a gradual basis and remain in effect for the following 5 years. In accordance with the provisions of Law No. 24,065, the National Regulatory Authority for the Distribution of Electricity will be in charge of such review; |
vi) | the implementation of a minimum investment plan in the electric network for an amount of 178.8 million to be fulfilled by EDENOR during 2006, plus an additional investment of 25.5 million should it be required (item f below); |
vii) | the adjustment of the penalties imposed by the ENRE that are payable to customers as discounts, which were notified by such regulatory agency prior to January 6, 2002 as well as of those that have been notified, or whose cause or origin has arisen in the period between January 6, 2002 and the date on which the Adjustment Agreement goes into effect; |
viii) | the waiver of the penalties imposed by the ENRE that are payable to the Argentine State, which have been notified, or their cause or origin has arisen in the period between January 6, 2002 and the date on which the Adjustment Agreement goes into effect; |
ix) | the payment term of the penalties imposed by the ENRE, which are described in item vii above, is 180 days after the approval of the Revision of the Company Tariff Structure (RTI) in fourteen semiannual installments, which represent approximately two-thirds of the penalties imposed by the ENRE before January 6, 2002 as well as of those that have been notified, or whose cause or origin has arisen in the period between January 6, 2002 and the date on which the Adjustment Agreement goes into effect, subject to compliance with certain requirements. |
a) A 23% average increase in distribution costs, service connection costs and service reconnection costs in effect which the Company collects as the holder of the concession of the public service of electric power distribution, except for the residential tariffs; |
b) Implementation of an additional 5% average increase in distribution costs, to be applied to the execution of the works and infrastructure plan detailed in Appendix II of the Adjustment Agreement. In this regard, the Company has set up the required fund, which as of June 30, 2009 amounts to 50,015. This amount is net of the amounts transferred to CAMMESA for 45,824; |
c) Implementation of the Cost Monitoring Mechanism (MMC) contemplated in Appendix I of the Adjustment Agreement, which for the six-month period beginning November 1, 2005 and ending April 30, 2006, shows a percentage of 8.032%. This percentage will be applied to non-residential consumption recorded from May 1, 2006 through January 31, 2007; |
d) Invoicing in 55 equal and consecutive monthly installments of the differences arising from the application of the new electricity rate schedule for non-residential consumption recorded from November 1, 2005 through January 31, 2007 (items i) and ii) above) and from May 1, 2006 through January 31, 2007 (item iii) above); |
e) Invoicing of the differences corresponding to deviations between foreseen physical transactions and those effectively carried out and of other concepts related to the Wholesale Electric Power Market (MEM), such as the Specific fee payable for the Expansion of the Network, Transportation and Others, included in Trade Receivables under Receivables from sales of electricity as Unbilled (Note 4); |
f) Presentation, within a period of 45 calendar days from the issuance of this resolution, of an adjusted annual investment plan, in physical and monetary values, in compliance with the requirements of the Adjustment Agreement. |
a) | Cash and cash equivalents: |
As of June 30, 2009 | As of December 31, 2008 | As of June 30, 2008 | |||
Cash and Banks | 7,913 | 6,061 | 6,028 | ||
Time deposits | 5,040 | 0 | 66,902 | ||
Money market funds | 94,934 | 88,548 | 0 | ||
Corporate notes | 0 | 393 | 0 | ||
Notes receivable | 0 | 0 | 54,179 | ||
Government bonds | 123,966 | 30,717 | 0 | ||
Municipal bonds | 698 | 680 | 0 | ||
Total cash and cash equivalents in the Statement of Cash Flows | 232,551 | 126,399 | 127,109 | ||
b) | Interest paid and collected: |
For the six-month periods ended June 30, | ||||||||
2009 | 2008 | |||||||
Interest paid during the period | (48,883 | ) | (42,247 | ) | ||||
Interest collected during the period | 13,115 | 2,773 |
Risk covered | Amount insured | ||||
Comprehensive (1) | US$ | 526,328,184 | |||
Mandatory life insurance | $ | 23,841,000 | |||
Theft of securities | US$ | 100,000 | |||
Vehicles (theft, third party liability and damages) | $ | 9,877,500 | |||
Land freight | US$ | 2,000,000 | |||
Imports freight | $ | 2,250,000 |
(1) | Includes: fire, partial theft, tornado, hurricane, earthquake, earth tremors, flooding and debris removal from facilities on facilities providing actual service, except for high, medium and low voltage networks. |
20. CLAIM OF THE PROVINCE OF BUENOS AIRES BOARD OF ELECTRIC POWER |
23. DERIVATIVE FINANCIAL INSTRUMENTS |
a) Corporate Notes |
Settlement Date | Amount of Underlying Liability In thousands of US$ | Amount of Underlying Liability In thousands of pesos |
12/11/09 | 2,401 | 8,273 |
Settlement Date | Amount of Underlying Liability In thousands of US$ | Amount of Underlying Liability In thousands of pesos |
10/08/09 | 11,550 | 39,420 |
b) Forward and Futures Contracts |
Term | Investments | Receivables (1) | Financial Debt (Loans) | Other payables (2) | ||||||||||||
With no explicit due date | 0 | 0 | 0 | 342,292 | ||||||||||||
With due date | ||||||||||||||||
Past due: | ||||||||||||||||
Up to three months | 0 | 71,304 | 0 | 0 | ||||||||||||
From three to six months | 0 | 28,684 | 0 | 0 | ||||||||||||
From six to nine months | 0 | 9,787 | 0 | 0 | ||||||||||||
From nine to twelve months | 0 | 9,937 | 0 | 0 | ||||||||||||
Over one year | 0 | 36,739 | 0 | 0 | ||||||||||||
Total past due | 0 | 156,451 | 0 | 0 | ||||||||||||
To become due: | ||||||||||||||||
Up to three months | 224,638 | 276,146 | 38,279 | 542,965 | ||||||||||||
From three to six months | 0 | 16,148 | 17,601 | 55,480 | ||||||||||||
From six to nine months | 698 | 13,529 | 8,333 | 45,997 | ||||||||||||
From nine to twelve months | 0 | 17,318 | 8,334 | 45,999 | ||||||||||||
Over one year | 97,280 | 152,927 | 893,046 | 94,499 | ||||||||||||
Total to become due | 322,616 | 476,068 | 965,593 | 784,940 | ||||||||||||
Total with due date | 322,616 | 632,519 | 965,593 | 784,940 | ||||||||||||
Total | 322,616 | 632,519 | 965,593 | 1,127,232 |
ACCOUNTS | 06.30.2009 | 06.30.2008 | 06.30.2007 | 06.30.2006 | 06.30.2005 | |||||||||||||||
Current Assets | 696,228 | 539,212 | 527,548 | 300,676 | 504,044 | |||||||||||||||
Non-Current Assets | 3,630,947 | 3,393,715 | 3,229,270 | 3,183,573 | 2,984,693 | |||||||||||||||
Total Assets | 4,327,175 | 3,932,927 | 3,756,818 | 3,484,249 | 3,488,737 | |||||||||||||||
Current Liabilities | 818,731 | 569,413 | 431,960 | 365,096 | 1,916,532 | |||||||||||||||
Non-Current Liabilities | 1,339,921 | 1,331,304 | 1,357,918 | 1,337,692 | 74,348 | |||||||||||||||
Total Liabilities | 2,158,652 | 1,900,717 | 1,789,878 | 1,702,788 | 1,990,880 | |||||||||||||||
Shareholders’ Equity | 2,168,523 | 2,032,210 | 1,966,940 | 1,781,461 | 1,497,857 | |||||||||||||||
Total Liabilities and Shareholders’ Equity | 4,327,175 | 3,932,927 | 3,756,818 | 3,484,249 | 3,488,737 |
ACCOUNTS | 06.30.2009 | 06.30.2008 | 06.30.2007 | 06.30.2006 | 06.30.2005 | |||||||||||||||
Net income (loss) | 118,365 | 111,693 | 322,706 | 19,883 | (14,123 | ) | ||||||||||||||
Other income (expense), net | 34,449 | (11,284 | ) | (9,112 | ) | (8,768 | ) | (2,394 | ) | |||||||||||
(18,072 | ) | (5,928 | ) | (108,836 | ) | 203,897 | (12,511 | ) | ||||||||||||
Ordinary income (Loss) before taxes | 134,742 | 94,481 | 204,758 | 215,012 | (29,028 | ) | ||||||||||||||
Income tax | (57,785 | ) | (36,852 | ) | (89,941 | ) | 189,165 | 0 | ||||||||||||
Net ordinary income (loss) for the period | 76,957 | 57,629 | 114,817 | 404,177 | (29,028 | ) | ||||||||||||||
CONCEPT | UNIT | 06.30.2009 | 06.30.2008 | 06.30.2007 | 06.30.2006 | 00.30.2005 | |||||||||||||||
Sales of electricity (1) | GWh | 8,969 | 9,234 | 8,892 | 8,115 | 7,680 | |||||||||||||||
Electric Power purchases (1) | GWh | 10,147 | 10,325 | 9,987 | 9,108 | 8,616 | |||||||||||||||
(1) The related amounts include toll fees. |
RATIOS | 06.30.2009 | 06.30.2008 | 06.30.2007 | 06.30.2006 | 06.30.2005 | ||||||||||||||||
Current | Current assets | 0.85 | 0.95 | 1.22 | 0.82 | 0.26 | |||||||||||||||
Current liabilities | |||||||||||||||||||||
Solvency | Shareholders’ Equity | 1.00 | 1.07 | 1.10 | 1.05 | 0.75 | |||||||||||||||
Total liabilities | |||||||||||||||||||||
Fixed assets | Non-current assets | 0.84 | 0.86 | 0.86 | 0.91 | 0.86 | |||||||||||||||
Total assets | |||||||||||||||||||||
Income (loss) before taxes | Ordinary income (Loss) before taxes | 6.44 | % | 4.78 | % | 11.06 | % | 15.61 | % | (1.90 | )% | ||||||||||
Shareholders’ Equity excluding income for the period |
ALEJANDRO MACFARLANE Chairman |
1. | We have carried out a limited review of the balance sheet of Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (Edenor S.A.) (hereinafter Edenor S.A.) at June 30, 2009, and the related statements of income, changes in shareholders’ equity and cash flows for the six-month period then ended with the complementary Notes 1 to 26 and Exhibits A, C, D, E, G and H. The preparation and issuance of these financial statements are the responsibility of the Company. |
2. | Our review was limited to the application of the procedures established by Technical Pronouncement No. 7 of the Argentine Federation of Professional Councils in Economic Sciences for limited reviews of financial statements for interim periods which consist mainly of the application of analytical procedures to the amounts disclosed in the financial statements and inquiries of Company staff responsible for the preparation of the information included in the financial statements and its subsequent analysis. This review is substantially less in scope than an audit, the purpose of which is to express an opinion on the financial statements under examination. Therefore, we do not express an opinion on the Company’s financial position, the results of operations, the changes in the shareholders’ equity and its cash flows. |
3. | The financial statements and the supplementary information detailed in point 1. are presented in comparative format with the information arising from: i) the financial statements and the supplementary information at December 31, 2008, on which we issued an unqualified audit report on February 25, 2009; and ii) the financial statements and the supplementary information at June 30, 2008 and for the six-month period then ended, on which we issued a limited review report without observations on August 7, 2008. |
4. | Based on our work and on the examination performed on the financial statements mentioned in point 3.i), we report that the financial statements of Edenor S.A. at June 30, 2009, detailed in point 1., prepared in accordance with accounting standards in force in the Autonomous City of Buenos Aires, consider all significant facts and circumstances of which we are aware, and we have no observations to make on them. |
PRICE WATERHOUSE & CO. S.R.L. (Partner) |
C.P.C.E.C.A.B.A T°1 – F°17 |
Daniel A. López Lado Public Accountant (UBA) C.P.C.E. Autonomous City of Buenos Aires T° 148 – F° 91 |
1. | In accordance with the provisions of section 294 of Law No. 19,550, the Rules of the Argentine Securities and Exchange Commission (Comisión Nacional de Valores) and the Regulations of the Buenos Aires Stock Exchange, we have conducted a limited review of the general balance sheet of Empresa Distribuidora y Comercializadora Norte S.A. (Edenor S.A.) (hereinafter referred to as “EDENOR S.A.”) a of June 30, 2009, of the related statement of income, statement of changes in stockholders´ equity and statement of cash flow for the six-month period then ended, and supplementary notes 1 to 26 and exhibits A, C, D, E, G and H thereto. The preparation and issue of the financial statements are the Company’s responsibility |
2. | Our review was conducted in accordance with prevailing auditing standards. Such standards require financial statements to be reviewed subject to the procedures set forth by Technical Resolution No. 7 of the Argentine Federation of Professional Councils of Economic Sciences for limited reviews of interim financial statements, including the verification of the consistency of the documents reviewed with the information on corporate decisions, as disclosed in minutes, and the conformity of those decisions to the law and the Company’s by-laws insofar as concerns formal and documentary aspects. Our review was conducted based on the audit performed by the Company’s independent auditors, Price Waterhouse & Co. S.R.L., who issued an unqualified limited review report dated August 6, 2009. A limited review mainly consists in applying analytic methods to the figures disclosed in the financial statements and making inquiries to the Company’s personnel responsible for preparing the information included in the financial statements and its subsequent analysis. The scope of this review is considerably inferior to an audit, which is focused on rendering an opinion on the financial statements considered as a whole. Consequently, we do not render such an opinion. We have not assessed any business administrative and marketing decisions, as they fall within the exclusive competence of the Board of Directors and the Shareholders’ Meeting. |
3. | Based on our review, the scope of which is set forth hereinabove, we inform that EDENOR S.A.’s financial statements described in item 1., prepared in accordance with the accounting rules in force in the City of Buenos Aires, take into account all facts and circumstances we are aware of, and we have no objections to make in this respect. |
4. | Requirements set forth in section 294 of Law No. 19,550 have been duly satisfied. |
By Supervisory Committee |
José Daniel Abelovich |
Regular Member |
Exhibit 3
CONSIDERATION OF THE GENERAL BALANCE SHEET, STATEMENT OF INCOME, STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY, STATEMENT OF CASH FLOWS, SUPPLEMENTAL DOCUMENTS, INFORMATIVE REPORT, INFORMATION REQUIRED UNDER SECTION 68 OF THE REGULATIONS OF THE BUENOS AIRES STOCK EXCHANGE, REPORTS OF THE CERTIFIED ACCOUNTANT AND THE SUPERVISORY COMMITTEE, ALL WITH RESPECT TO THE SECOND QUARTER OF THE FISCAL YEAR ENDED JUNE 30, 2009.
ABSTRACT OF RELEVANT PART OF EDENOR S.A’S MINUTES No. 306
“MINUTES No. 306: In the City of Buenos Aires, on August 6, 2009, at 11:20 a.m., the undersigning Directors of Empresa Distribuidora y Comercializadora Norte S.A. (EDENOR) (the “Company” or “Edenor”) held a meeting. The meeting was chaired by the Chairman of the Board of Directors, Alejandro Macfarlane, who after verifying quorum, declared the meeting duly held and submitted to the consideration of the attending Directors [...] the SECOND ITEM OF THE AGENDA: 2) Consideration of the General Balance Sheet, Statement of Income, Statement of Changes in Shareholders’ Equity, Statement of Cash Flows, Supplemental Documents, Informative Report, Information required under section 68 of the Regulations of the Buenos Aires Stock Exchange, Reports of the Certified Accountant and the Supervisory Committee, all with respect to the second quarter of the fiscal year ended June 30, 2009. The Chairman gave the floor again to Mr. Ruíz who detailed the figures of the Balance Sheet and Statement of Income and informed that in relation to:
BALANCE SHEET:
TOTAL ASSETS: it recorded an increase from AR$MM 4,134.6 as of 2008 fiscal year-end to 4,327.2 as of 2009 June-closing date (4.7% increase), mainly deriving from a higher value of investments and fixed assets.
TOTAL LIABILITIES: it recorded an rise from AR$MM 2,043.1 as of 2008 fiscal year-end to AR$MM 2,158.7 (5.6% increase), mainly due to PUREE values accounted for by the Company as temporary offset of MCM pending authorization to be applied to rates.
STATEMENT OF INCOME:
1. | INCOME FROM SERVICES RENDERED |
This line item includes net sales of penalties, fines and discounts, late payment surcharges, proceeds from the right to use posts and connections and reconnections charges.
As compared to the same period of the previous fiscal year, it increased by AR$MM 147,8 basically in the sale of energy, equivalent to a 16.2% increase.
2. | PURCHASES OF ENERGY |
Purchases of energy increased by 17.9%, from AR$MM 440,4 to AR$MM 519,3, mainly due to a price effect, as units purchased were 1,72% lower than in 2008.
Average unit purchase price increased from AR$51,9 MWh to AR$61,9 MWh, i.e., a 19,3% increase.
3. | GROSS MARGIN |
Based on the information above, it may be inferred that the margin increased by AR$MM 68,9 equal to a 14,6% increase.
4. | OPERATING COSTS |
These costs recorded an aggregate increase of AR$MM 62,2, i.e., a 17.2% higher than the same period of the previous year, broken down as follows:
• Transmission and distribution costs: their increase totaled AR$MM 30,1 made up of salary and social security payables.
• Administrative expenses: their increase totaled AR$MM 17,6 made up of salary and social security payables totaling AR$MM 5,7, an increase in tax on financial operations of AR$MM 4,1 and an increase in services hired.
Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (EDENOR S.A.)
Azopardo 1025, Piso 18 - Buenos Aires, C1107ADQ – Argentina. Tel.: 4346-5005 fax: 4346-5327
• Marketing expenses: their net increase totaled AR$MM 14,6 made up of salary and social security payables and taxes and rates, as safety and hygiene rate.
5. | OTHER NET INCOME(LOSS) |
It recorded a AR$MM 34,4 gain as compared to AR$MM 11,3 loss recorded in the same period of the previous fiscal year, mainly due to the recovery of bad debt allowances and the tax moratorium for AR$MM 44,7.
6. | NET INCOME/LOSS |
It totaled AR$MM 152,8, with AR$MM 52,4 (52,2%) increase.
7. | FINANCIAL INCOME/LOSS |
• Generated by assets: AR$MM 56,9 income was recorded, mostly resulting from investments and accrued interest.
• Generated by liabilities: AR$MM 136,6 loss was recorded, mainly as a consequence of changes in exchange rate from 3,45 on 12/31/08 to 3,797 as of the closing date. This resulted in an unfavorable variance of AR$MM 85,4.
Net income/(loss) recorded AR$MM 76,9 loss.
8. | REPURCHASE OF NOTES AND OTHER INSTRUMENTS |
This line item totaled AR$MM 61,6 including net present value assessment of receivables and debts and notes repurchases.
9. | INCOME TAX |
It recorded AR$MM 57,8 charge higher as compared to the AR$MM 36,8 tax of the previous year, as a consequence of a higher tax base used for its calculation.
Income tax is calculated by applying the deferred tax method intended to balance tax burden registration with accounting recognition pursuant to accounting rules that may differ from the tax treatment.
CHANGES IN SHAREHOLDERS’ EQUITY
As of the closing date, this line item totaled AR$MM 2.168,5. During the period, the following accounting transactions took place:
| a) | Income/loss from the six-month period for AR$MM 76,9. |
| b) | Funding of Statutory Reserve for AR$MM 6,2 as resolved at the Shareholders’ Meeting held on 3/31. |
STATEMENT OF CASH FLOW
During the six-month period, an increase in cash flows (cash + investments not exceeding 3 months) by AR$MM 106,2 was recorded, investments in property, plant and equipment for AR$MM 186,4, decrease in temporary investments for AR$MM 7,8 and net increase in debts for AR$MM 10,9. Funds generated by operating transactions amounted to AR$MM 274,0.
After discussion moved by the Chairman, the Board of Directors unanimously decided to approve all documents submitted for consideration in that item of the Agenda, which were to be transcribed in the Company’s corporate books. [...]. There being no further issues to transact, the meeting was adjourned at 13:00 p.m.”. Signed by Messrs. Alejandro Macfarlane; Marcos Marcelo Mindlin; Damian Mindlin; Eduardo Llanos; Edgardo Volosín; Diego Salaverri; Luis Caputo; Eduardo O. Quiles; Daniel Abelovich; Jorge Roberto Pardo.
María Belén Gabutti
Agent
Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (EDENOR S.A.)
Azopardo 1025, Piso 18 - Buenos Aires, C1107ADQ – Argentina. Tel.: 4346-5005 fax: 4346-5327
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Empresa Distribuidora y Comercializadora Norte S.A.
By: /s/ Rogelio Pagano
Rogelio Pagano
Chief Financial Officer
Date: August 13, 2009