![]() | First Quarter 2017
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Edenor announces first quarter 2017 results
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Stock Information: Ticker:EDN New York Stock Exchange Ratio: 20 Class B = 1 ADR Buenos Aires Stock Exchange |
Investor Relations Contacts: Leandro Montero Chief Financial Officer Verónica Gysin Planning and Capital Markets Manager | |
Tel: +54 (11) 4346 -5231 |
Buenos Aires, Argentina, May 10, 2017. Empresa Distribuidora y Comercializadora Norte S.A. (NYSE: EDN; Buenos Aires Stock Exchange: EDN) (“EDENOR” or “the Company”), Argentina’s largest electricity distributor, today announced its results for the first quarter of 2017. All figures are stated in Argentine Pesos and have been prepared in accordance with International Financing Reporting Standards (“IFRS”). Solely for the convenience of the reader, Peso amounts as of and for the quarter ended on March 31, 2017 have been translated into U.S. Dollars at the selling price quoted by Banco de la Nación Argentina of AR$ 15.39 per U.S. Dollar.
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HIGHLIGHTS
Mandatory Capital Stock Reduction
As of December 31th, 2016, our negative results exceeded 100% of our reserves and more than 50% of our capital stock, therefore, in accordance with Section 206 of the Argentine Corporations Law No. 19,550, we were required to mandatorily reduce our capital stock.
As of the date of this report, in light of the recent completion of the RTI process through Resolution No. 63, enforce as from February 1st, 2017, our board of directors is currently analyzing the impact thereof on our financial position, estimating that the expected future revenues will allow us to revert this situation. On April 18th, 2017, our shareholders’ meeting decided not to approve the capital stock reduction at that time. However, if this situation remains the same for the first and second quarters of 2017, our board of directors will convene an extraordinary shareholder’s meeting to reconsider the capital stock reduction. As of March 31th, 2017, the company negative retained earnings decreased enough in order to avoid the mandatory Capital Stock Reduction situation.
Corporate Reorganization: Merger of CTLL, EASA & IEASA.
On March 29th, 2017, Electricidad Argentina S.A. (“EASA” - EDENOR´s controlling and majority shareholder) approved, ad referendum of the corresponding shareholder resolutions and the corresponding approvals of the controlling entities, the merger by absorption between Central Térmica Loma de la Lata S.A. (“CTLL”), as merging and surviving company, and EASA and IEASA S.A. (“IEASA”) - EASA’s majority shareholder – as the merged/absorbed companies, which will be dissolved without liquidation. Accordingly, the merger plan was approved as well as the merger consolidated financial statements. Such companies, CTLL and EASA and IEASA, belong to the same group, Pampa Energía S.A., which is their direct and/or indirect controller.
In accordance with the applicable regulations, EDENOR and EASA informed the ENRE and requested the corresponding authorization. As of the date of this press release, the merger process was ongoing.
Ordinary and Extraordinary Shareholders’ Meeting
On April 18th, 2017, the Ordinary and Extraordinary Shareholders’ Meeting of the Company approved the appointment of Carlos Alberto Lorenzetti as Independent Regular Director to replace Ricardo López Antonelli, whose term of office expired on December 31st, 2016. At the same time, Diana Elena Mondino, Santiago Lucas Jonas Aguilar,
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José María Tenaillon, Ignacio Gustavo Álvarez Pizzo, Juan Martin Monge Varela and Carlos Andrés Rodriguez Lubary were appointed Independent Interim Directors. Likewise, Messrs. Ricardo Torres’ and Gustavo Mariani’s positions as Chairman and Vice president were renewed, respectively. Regarding the Audit Committee, the same members of the precedent fiscal year continued by means of the appointment of Eduardo Llanos, Maximiliano Alejandro Fernández and Lucas Amado as regular members.
The Ordinary and Extraordinary Shareholders’ Meeting approved the “long term incentive plan” addressed to Edenor’s staff with the purpose of keeping and attracting key staff and promoting the highest performance by offering company’s shares to the executive and management levels and other key employees. The plan will be administered and executed by an implementing committee to be composed of three members of the Company’s Executive Committee, which, in April of each year will decide on the implementation of the plan for the respective calendar year and shall issue the corresponding annual granting resolution.
International Centre for Settlement of Investment Disputes (ICSID)
On March 28th, 2017, the Secretary of the International Centre for the Settlement of Investment Disputes (ICSID) registered the discontinuation of the arbitration initiated in August 2003 by EDF International and EASA against the National Government, related to the breach of the concession contract by the latter, as a consequence of the passing of the Public Emergency Law and the reform of the foreign exchange Regime N° 25.561.
The waiver of the claimants was a condition within the Memorandum of Agreement regarding Edenor’s Contractual Renegotiation, which had to be fulfilled after the issuance of the tariff schedule resulting from the Integral Tariff Review process, which was approved by means of Resolution No. 63/17 issued by the National Regulatory Entity for Electricity ("ENRE"), effective as of February 1st 2017.
Likewise, on April 26th, 2017, Edenor was notified that the Ministry of Energy and Mining (“MEyM”) established that the Secretary of Energy (“SEE”), with the participation of the Tariff Policies Coordinating Authority and the ENRE, should stipulate in a 120 day-term the existence of pending obligations up to the effective date of the tariff schedules resulting from the Integral Tariff Review process, and with reference to the Memorandum of Agreement entered into on February 13th, 2006. In such case, the treatment to be given to said obligations should be stated.
ENRE Note 125,248
On March 29th, 2017, through Note No. 125,248, the ENRE established a new methodology for the calculation of fines and penalties, determining that fines must be valued according to the KWh values in effect as of the first day of the semester during which the event giving rise to the penalty occurred or the KWh value in effect as of the day of occurrence of the event in the case of penalties arising from specific events. This change, which was necessary for a more adequate operation of the sanctioning regime, allowed the society to account a positive adjustment to the provision for fines and penalties of Ps. 413.7 million.
Regulatory Framework – Electricity dependents Law
On April 26th, 2017, the Senate passed by unanimous vote a bill created by the Representatives Chamber of Deputies aimed at guaranteeing the free of charge and permanent electricity supply to the individuals designated as electricity dependents who, due to health problems, require medical equipment to avoid life or health risks. The law establishes that the holder of the service or his/her cohabitant registered as “Electricity dependent due to health issues” will be exempted from paying connection rights and shall be granted with a free of charge and special tariff treatment in the supply of electrical energy under National jurisdiction, by the acknowledgment of the total amount of the service billing. To this end, the bill states that the Executive Power will allocate the budget items required.
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First Quarter 2017 Operating Figures
In millon of Pesos | 1° Q 2017 | 1° Q 2016 | % Variation |
Revenue from sales | 5,366.6 | 2,990.1 | 79.5% |
Electricity power purchase | (2,533.6) | (1,317.3) | 92.3% |
Net operating income (loss) | 816.6 | 238.3 | 242.7% |
Net income (loss) | 421.4 | (125.0) | 437.0% |
Revenues from salesincreased 79.5% to AR$ 5,366.6 million in the first quarter of 2017 compared to AR$ 2,990.1 million in the first quarter of 2016, mainly explained by the tariff increase obtained as from February 1st, 2017 through the completion of the Integral Tariff Revision (RTI), by means of Resolution No. 63/2017.
Volume of energy sold decreased 2.5% to 5,527 GWh in the first quarter of 2017 from 5,666 GWh in the first quarter of 2016, basically due to a fall of 4.0% in small commercial demands and 2% in industrial and wheeling system demands.
Electricity power purchases increased 92.3% to AR$ 2,533.6 million in the first quarter of 2017 compared to AR$ 1,317.3 million in the same period of 2016, mainly due to the growth in the average purchase price of approximately 184% since February 1st, 2017 through Resolution No. 20-E /2017 of the SEE (Secretariat of Electric Energy).
Net operating incomeincreased AR$ 578.4 million amounting a gain of AR$ 816.6 million in the first quarter of 2017 compared to a gain of AR$ 238.3 million in the same period of 2016. This positive result was mainly explained by the RTI tariff recognition of 42% on February 2017, partially offset by the increase in the purchase price mentioned above. As far as operating expenses are concerned, there was an increase of AR$ 333.1 million in salaries attributable to the employee compensation granted during 2017 amounting a total outcome of AR$ 1,066.7, million partially compensated by an AR$ 537.0 million decrease in accrued fines and penalties, due to enforcement of the ENRE Note No. 125,248.
Net income (loss) shows an increase of AR$ 546.4 million, amounting a gain of AR$ 421.4 million in the first quarter of 2017, compared to a loss of AR$ 125.0 million in the same period of 2016, mainly due to the operating results explained above and to a lower loss of AR$ 401.3 million in financial results caused by a lower exchange rate difference.
Adjusted EBITDA
Adjusted EBITDA has increase to a gain of AR$ 611.1 million in the first quarter ended March 31, 2017, compared to a gain of AR$ 674.0 million in the same period of 2016.
In millon of Pesos | 1° Q 2017 |
| 1° Q 2016 |
Net operating income before resolution 32/15 | 816.6 |
| (274.3) |
Depreciation of property, plant and equipment | 97.5 |
| 81.9 |
EBITDA | 914.1 |
| (192.4) |
Resolution 32/15 recognition and others(1) | - |
| 512.6 |
Penalties adjustments(2) | (332.8) |
| 336.2 |
Commercial Interests | 29.8 |
| 17.7 |
Adjusted EBITDA | 611.1 |
| 674.0 |
(1) Includes additional income under this resolution and PUREE funds. | |||
(2) Includes retroactive adjustments required by Notes No. 120,151 (apr. 16') & 125,248 (feb. 17'). |
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Operating Expenses
The following table sets forth the main transmission and distribution, selling and administrative expenses:
In millon of Pesos and % | Transmission and distribution expenses | Selling expenses | Administrative expenses | Total expenses | ||||||||
1° Quarter | % | 1° Quarter | % | 1° Quarter | % | 1° Quarter | % | |||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||
Salaries, social security taxes | 768.9 | 542.7 | 40% | 131.2 | 84.0 | 56% | 141.5 | 86.2 | 64% | 1,041.5 | 712.9 | 46% |
Pensions Plans | 18.6 | 15.7 | 20% | 3.2 | 2.4 | 30% | 3.4 | 2.5 | 37% | 25.2 | 20.6 | 22% |
Communications expenses | 5.5 | 6.5 | -20% | 41.4 | 16.4 | 152% | 3.1 | 0.9 | 253% | 50.0 | 23.9 | 110% |
Allowance for the impairment of trade and other receivables | 0.0 | 0.0 | 0% | 50.4 | 10.7 | 372% | 0.0 | 0.0 | 0% | 50.4 | 10.7 | 372% |
Supplies consumption | 49.7 | 70.3 | -30% | 0.0 | 0.0 | 0% | 10.7 | 8.9 | 20% | 60.4 | 79.2 | -24% |
Leases and insurance | 0.1 | 0.1 | -10% | 0.0 | 0.0 | 0% | 24.7 | 19.6 | 26% | 24.8 | 19.7 | 25% |
Security service | 17.6 | 2.7 | 560% | 0.2 | 0.1 | N/A | 19.1 | 26.8 | -29% | 37.0 | 29.6 | 25% |
Fees and remuneration for services | 148.8 | 94.3 | 60% | 114.8 | 87.5 | 31% | 108.4 | 69.1 | 57% | 372.0 | 251.0 | 48% |
Public relations and marketing | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% | 3.8 | 2.8 | 35% | 3.8 | 2.8 | 35% |
Advertising and sponsorship | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% | 1.9 | 1.4 | 35% | 1.9 | 1.4 | 35% |
Reimbursements to personnel | 0.0 | 0.2 | -100% | 0.0 | 0.0 | -90% | 0.1 | 0.1 | 14% | 0.2 | 0.4 | -63% |
Depreciation of property, plant and | 80.2 | 65.5 | 20% | 12.7 | 12.4 | 2% | 4.6 | 4.1 | 13% | 97.5 | 81.9 | 19% |
Directors and Supervisory Committee members’ fees | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% | 2.9 | 1.3 | 121% | 2.9 | 1.3 | 121% |
ENRE penalties | -41.7 | 526.7 | N/A | 90.1 | 58.7 | N/A | 0.0 | 0.0 | 0% | 48.4 | 585.4 | N/A |
Taxes and charges | 0.0 | 0.0 | 0% | 54.8 | 15.6 | 250% | 4.6 | 3.1 | 47% | 59.3 | 18.7 | 217% |
Other | 0.1 | 0.1 | -20% | 0.0 | 0.0 | -26% | 0.6 | 1.8 | -66% | 0.7 | 1.9 | -63% |
Total | 1,047.8 | 1,324.8 | -21% | 498.6 | 288.0 | 73% | 329.4 | 228.7 | 44% | 1,875.9 | 1,841.5 | 2% |
Sales
The following table shows our energy sales by customer´s category (in GWh) and its number of clients:
In Gwh and % | Energy sales | Customers | ||||||
1th Quarter 2017 | 1th Quarter 2016 | % Variation | At | At | % Variation | |||
Gwh | % | Gwh | % | |||||
Residential | 2,391 | 43.3% | 2,397 | 42.3% | (0.2%) | 2,510,825 | 2,472,349 | 1.6% |
Small commercial | 454 | 8.2% | 473 | 8.3% | (4.0%) | 327,423 | 327,850 | (0.1%) |
Medium commercial | 482 | 8.7% | 491 | 8.7% | (1.7%) | 34,972 | 34,383 | 1.7% |
Industrial | 959 | 17.4% | 977 | 17.2% | (1.8%) | 6,861 | 6,753 | 1.6% |
Wheeling System | 997 | 18.0% | 1,062 | 18.7% | (6.1%) | 712 | 715 | (0.4%) |
Others |
|
|
|
|
|
|
|
|
Public lighting | 152 | 2.7% | 155 | 2.7% | (1.9%) | 21 | 21 | 0.0% |
Shantytowns and others | 91 | 1.7% | 111 | 2.0% | (18.0%) | 411 | 409 | 0.5% |
Total | 5,527 | 100% | 5,666 | 100% | -2.5% | 2,881,225 | 2,842,480 | 1.4% |
Capital Expenditures
Edenor’s capital expenditures during the first quarter of 2017 totaled AR$ 760.4 million, compared to AR$ 628.8 million in the first quarter of 2016.
Our capital expenditures in the first quarter of 2017 mainly consisted of the following:
· AR$ 74.5 million in new connections;
· AR$ 531.2 million in grid enhancements;
· AR$55.2 million in network maintenance and improvements;
· AR$ 3.9 million in legal requirements;
· AR$ 48.1 million in communications and telecontrol;
· AR$ 47.5 million of other investment projects.
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For the three-month period ended March 31, 2017, our Capital Expenditures totalized to AR$ 759.2 million compared to AR$ 628.8 million in 2016, including capitalized costs in property, plant and equipment.
Energy Losses
In the first quarter of 2017 energy losses increased to 16.2% compared to 14.5% in the same period of 2016.
Indebtedness
As of March 31, 2017, the outstanding principal amount of our dollar denominated financial debt is US$ 176.4 million of Senior Notes due 2022, of which US$ 0.3 million are held by the Company.
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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 8.0 million people and an area of 4,637 sq. km. In 2016, Edenor sold 22,253 GWh of energy and purchased 26,838 GWh (including wheeling System demands), with net sales of approximately AR$ 13 billion and net loss of AR$ 1,188.6 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.
Edenor S.A.
6363 Del Libertador Avenue, 4th Floor
(C1428ARG) Buenos Aires, Argentina
Fax: 5411.4346.5358
investor@edenor.com
www.edenor.com
Conference Call Information
![]() | There will be a conference call to discuss Edenor’s quarterly results on Friday, May 12, 2017, at 11:00 p.m. Buenos Aires time / 10:00 a.m. New York time. For those interested in participating, please dial + 1(844) 854 - 4411 in the United States or, if outside the United States, +1(412) 317-5481 or 0-800-444-2930 in Argentina. 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. |
For additional information on the Company please access: www.edenor.com;www.cnv.gob.ar
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Condensed Interim Statements of Financial Position
as of March 31, 2017 and December 31, 2016
In million of US Dollars and Argentine Pesos | 03.31.2017 |
| 03.31.2017 |
| 12.31.2016 |
US$ | AR$ | AR$ | |||
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Property, plant and equipment | 770.4 |
| 11,857.2 |
| 11,197.0 |
Interest in joint ventures | 0.0 |
| 0.4 |
| 0.4 |
Deferred tax asset | 70.8 |
| 1,089.4 |
| 1,019.0 |
Other receivables | 3.2 |
| 49.5 |
| 50.5 |
Financial assets at accrued cost | - |
| - |
| 44.4 |
Total non-current assets | 844.5 |
| 12,996.5 |
| 12,311.4 |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Inventories | 17.2 |
| 264.0 |
| 287.8 |
Other receivables | 11.8 |
| 180.9 |
| 179.3 |
Trade receivables | 298.4 |
| 4,592.6 |
| 3,901.1 |
Financial assets at fair value through profit or loss | 105.4 |
| 1,622.1 |
| 1,993.9 |
Financial assets at accrued cost | 3.0 |
| 45.8 |
| 1.5 |
Cash and cash equivalents | 4.5 |
| 68.7 |
| 258.6 |
Total current assets | 440.2 |
| 6,774.1 |
| 6,622.2 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS | 1,284.6 |
| 19,770.7 |
| 18,933.5 |
Financial tables have been converted into U.S. dollars at a rate of AR$. 15.39 per dollar, the selling rate as of March 31, 2017, solely for the convenience of the reader.
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Condensed Interim Statements of Financial Position
as of March 31, 2017 and December 31, 2016
In million of US Dollars and Argentine Pesos | 03.31.2017 |
| 03.31.2017 |
| 12.31.2016 |
| US$ |
| AR$ |
| AR$ |
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Share capital | 58.4 |
| 898.7 |
| 897.0 |
Adjustment to share capital | 26.0 |
| 399.5 |
| 397.7 |
Additional paid-in capital | 3.0 |
| 45.8 |
| 3.5 |
Treasury stock | 0.5 |
| 7.8 |
| 9.4 |
Adjustment to treasury stock | 0.6 |
| 8.6 |
| 10.3 |
Statutory reserve | 4.8 |
| 73.3 |
| 73.3 |
Voluntary reserve | 11.4 |
| 176.1 |
| 176.1 |
Other reserves | - |
| - |
| 20.3 |
Other comprehensive loss | (2.4) |
| (37.2) |
| (37.2) |
Accumulated losses | (49.9) |
| (767.3) |
| (1,188.6) |
TOTAL EQUITY | 52.3 |
| 805.2 |
| 361.8 |
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
|
|
|
Trade payables | 15.4 |
| 236.6 |
| 232.9 |
Other payables | 340.6 |
| 5,241.4 |
| 5,103.3 |
Borrowings | 174.3 |
| 2,682.5 |
| 2,769.6 |
Deferred revenue | 13.0 |
| 199.8 |
| 200.0 |
Salaries and social security payable | 6.5 |
| 99.6 |
| 94.3 |
Benefit plans | 18.4 |
| 283.6 |
| 266.1 |
Income tax payable, net | 19.9 |
| 305.5 |
| - |
Tax liabilities | 0.0 |
| 0.4 |
| 0.7 |
Provisions | 24.6 |
| 377.8 |
| 341.4 |
Total non-current liabilities | 612.6 |
| 9,427.2 |
| 9,008.3 |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Trade payables | 463.6 |
| 7,135.2 |
| 6,821.1 |
Other payables | 9.3 |
| 143.6 |
| 134.8 |
Borrowings | 7.7 |
| 118.2 |
| 53.7 |
Deferred revenue | 0.0 |
| 0.8 |
| 0.8 |
Salaries and social security payable | 55.1 |
| 847.6 |
| 1,032.2 |
Benefit plans | 2.2 |
| 33.4 |
| 33.4 |
Income tax payable, net | 9.3 |
| 142.7 |
| 155.2 |
Tax liabilities | 65.8 |
| 1,012.1 |
| 1,244.5 |
Provisions | 6.8 |
| 104.8 |
| 87.9 |
Total current liabilities | 619.8 |
| 9,538.3 |
| 9,563.4 |
TOTAL LIABILITIES | 1,232.3 |
| 18,965.5 |
| 18,571.7 |
|
|
| - |
| - |
TOTAL LIABILITIES AND EQUITY | 1,284.6 |
| 19,770.7 |
| 18,933.5 |
Financial tables have been converted into U.S. dollars at a rate of AR$. 15.39 per dollar, the selling rate as of March 31, 2017, solely for the convenience of the reader.
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Condensed Interim Statements of Comprehensive Income (Loss)
for the three-month periods ended March 31, 2017 and 2016.
In millon of US Dollars and Argentine Pesos | 03.31.2017 |
| 03.31.2017 |
| 03.31.2016 |
US$ | AR$ | AR$ | |||
|
|
|
|
|
|
Continuing operations |
|
|
|
|
|
Revenue from sales | 348.7 |
| 5,366.6 |
| 2,990.1 |
Electric power purchases | (164.6) |
| (2,533.6) |
| (1,317.3) |
Subtotal | 184.1 |
| 2,833.1 |
| 1,672.8 |
Transmission and distribution expenses | (68.1) |
| (1,047.8) |
| (1,324.8) |
Gross loss | 116.0 |
| 1,785.2 |
| 348.0 |
Selling expenses | (32.4) |
| (498.6) |
| (288.0) |
Administrative expenses | (21.4) |
| (329.4) |
| (228.7) |
Other operating expense, net | (9.1) |
| (140.6) |
| (105.6) |
Operating loss before higher costs recognition and SE Resolution 32/15 | 53.1 |
| 816.6 |
| (274.3) |
Income recognition on account of the RTI - SE Resolution 32/15 | - |
| - |
| 431.0 |
Higher costs recognition - SE Resolution 250/13 and subsequents Notes | - |
| - |
| 81.5 |
Operating profit (loss) | 53.1 |
| 816.6 |
| 238.3 |
Financial income | 3.9 |
| 59.4 |
| 26.1 |
Financial expenses | (22.6) |
| (348.5) |
| (343.6) |
Other financial expense | 8.4 |
| 128.9 |
| (133.2) |
Net financial expense (income) | (10.4) |
| (160.1) |
| (450.7) |
(Loss) Profit before taxes | 42.7 |
| 656.5 |
| (212.5) |
|
|
|
|
|
|
Income tax | (15.3) |
| (235.1) |
| 87.4 |
(Loss) Profit for the period from continuing operations | 27.4 |
| 421.4 |
| (125.0) |
|
|
|
|
|
|
Basic and diluted (loss) earnings per share: |
|
|
|
|
|
Basic and diluted (loss) earnings per share from continuing operations | 0.03 |
| 0.47 |
| (0.14) |
|
|
|
|
|
|
Financial tables have been converted into U.S. dollars at a rate of AR$. 15.39 per dollar, the selling rate as of March 31, 2017, solely for the convenience of the reader.
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Condensed Interim Statements of Cash Flows
for the three-month periods ended March 31, 2017 and 2016
In millon of US Dollars and Argentine Pesos | 03.31.2017 |
| 03.31.2017 |
| 03.31.2016 |
US$ | AR$ | AR$ | |||
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
(Loss) Profit for the period | 27.4 |
| 421.4 |
| (125.0) |
Adjustments to reconcile net (loss) profit to net cash flows provided by operating activities: |
|
|
|
|
|
Depreciation of property, plant and equipment | 6.3 |
| 97.5 |
| 81.9 |
Amortización de activos intangibles | 0.2 |
| 2.7 |
| 1.0 |
Net accrued interest | 18.7 |
| 288.3 |
| 316.8 |
Exchange differences | (4.8) |
| (73.9) |
| 327.4 |
Income tax | 15.3 |
| 235.1 |
| (87.4) |
Allowance for the impairment of trade and other receivables, net of recovery | 3.3 |
| 50.4 |
| 10.7 |
Adjustment to present value of receivables | 0.0 |
| 0.1 |
| (0.3) |
Provision for contingencies | 4.3 |
| 66.3 |
| 60.1 |
Other expenses - FOCEDE | - |
| - |
| 14.0 |
Changes in fair value of financial assets | (3.8) |
| (58.3) |
| (198.8) |
Accrual of benefit plans | 1.6 |
| 25.2 |
| 20.6 |
Higher costs recognition - Resolution 32/15 of the SE. | - |
| - |
| (81.5) |
Net gain from the repurchase of Corporate Notes | - |
| - |
| (0.0) |
Income from non-reimbursable customer | (0.0) |
| (0.2) |
| (0.2) |
Constitution of the reserve for the share compensation plan | 1.4 |
| 22.0 |
| - |
|
|
|
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
Increase (Decrease) in trade receivables | (45.4) |
| (699.1) |
| (1,399.9) |
Decrease (Increase) in other receivables | 0.7 |
| 10.0 |
| 805.5 |
Decrease (Increase) in inventories | 1.5 |
| 23.8 |
| 18.1 |
Increase (Decrease) in deferred revenue | - |
| - |
| 13.8 |
Increase (Decrease) in trade payables | 9.3 |
| 143.5 |
| 237.4 |
Decrease (Increase) in salaries and social security taxes payable | (11.7) |
| (179.3) |
| (152.6) |
Decrease (Increase) in benefit plans | (0.5) |
| (7.7) |
| (8.8) |
Increase (Decrease) in tax liabilities | (16.0) |
| (246.3) |
| 103.6 |
Increase (Decrease) in other payables | 2.0 |
| 31.5 |
| 538.8 |
Net decrease in provisions | (0.8) |
| (12.9) |
| (11.2) |
Net cash flows provided by operating activities | 9.1 |
| 139.9 |
| 483.8 |
Financial tables have been converted into U.S. dollars at a rate of AR$. 15.39 per dollar, the selling rate as of March 31, 2017, solely for the convenience of the reader.
![]() | First Quarter 2017
Page 11 |
Condensed Interim Statements of Cash Flows
for the three-month periods ended March 31, 2016 and 2015
(Continued)
In million of US Dollars and Argentine Pesos | 03.31.2017 |
| 03.31.2017 |
| 03.31.2016 |
US$ | AR$ | AR$ | |||
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
Acquisitions of property, plant and equipment | (48.3) |
| (742.9) |
| (428.0) |
Collection for sale of financial assets at fair value | 25.4 |
| 390.3 |
| 47.4 |
Payment for purchase of financial assets at fair value | (35.5) |
| (546.5) |
| (41.7) |
Net (payment for) collection of purchase / sale of financial assets at fair value | 37.1 |
| 570.8 |
| (14.1) |
Collection of receivables from sale of subsidiaries | 0.1 |
| 1.6 |
| 2.0 |
Net cash flows used in investing activities | (21.2) |
| (326.7) |
| (434.3) |
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
Payment of principal on loans | - |
| - |
| (4.5) |
Net cash flows used in financing activities | - |
| - |
| (4.5) |
|
|
|
|
|
|
Net (decrease) / increase in cash and cash equivalents | 12.1 |
| 186.8 |
| 44.9 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the beginning of year | 16.8 |
| 258.6 |
| 129.0 |
Exchange differences in cash and cash equivalents | (0.2) |
| (3.1) |
| (2.6) |
Net (decrease) / increase in cash and cash equivalents | (12.1) |
| (186.8) |
| 44.9 |
Cash and cash equivalents at the end of period | 4.5 |
| 68.7 |
| 171.3 |
|
|
|
|
|
|
Financial tables have been converted into U.S. dollars at a rate of AR$. 15.39 per dollar, the selling rate as of March 31, 2017, solely for the convenience of the reader.
![]() | First Quarter 2017
Page 12 |
Condensed Interim Statements of Cash Flows
for the three-month periods ended March 31, 2017 and 2016
(Continued)
In millon of US Dollars and Argentine Pesos | 03.31.2017 |
| 03.31.2017 |
| 03.31.2016 |
US$ | AR$ | AR$ | |||
|
|
|
|
|
|
Supplemental cash flows information |
|
|
|
|
|
Non-cash operating, investing and financing activities |
|
|
|
|
|
|
|
|
|
|
|
Financial costs capitalized in property, plant and equipment | (4.2) |
| (65.1) |
| (61.7) |
Acquisitions of property, plant and equipment through increased trade payables | (10.3) |
| (158.1) |
| (139.2) |
Financial tables have been converted into U.S. dollars at a rate of AR$. 15.39 per dollar, the selling rate as of March 31, 2017, solely for the convenience of the reader.
Empresa Distribuidora y Comercializadora Norte S.A. | ||
By: | /s/ Leandro Montero | |
Leandro Montero | ||
Chief Financial Officer |