Document and Entity Information
Document and Entity Information | 12 Months Ended | |
Dec. 31, 2018shares | ||
DisclosureOfDocumentAndEntityInformationLineItems [Line Items] | ||
Entity Registrant Name | EDENOR | |
Entity Central Index Key | 0001395213 | |
Document Type | 20-F | |
Document Period End Date | Dec. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | No | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 906,455,100 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2018 | |
Class A Common Stock | ||
DisclosureOfDocumentAndEntityInformationLineItems [Line Items] | ||
Entity Common Stock, Shares Outstanding | 462,292,111 | |
Class B Common Stock | ||
DisclosureOfDocumentAndEntityInformationLineItems [Line Items] | ||
Entity Common Stock, Shares Outstanding | 442,210,385 | [1] |
Class C Common Stock | ||
DisclosureOfDocumentAndEntityInformationLineItems [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,952,604 | [2] |
[1] | Includes 23,385,028 and 7,794,168 treasury shares as of December 31, 2018 and 2017, respectively. | |
[2] | Relates to the Employee Stock Ownership Program Class C shares that have not been transferred. |
Statement of Financial Position
Statement of Financial Position - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Non-current assets | ||
Property, plant and equipment | $ 62,474,843 | $ 57,060,187 |
Interest in joint ventures | 8,844 | 10,693 |
Other receivables | 800,741 | 62,676 |
Financial assets at fair value through profit or loss | 0 | 0 |
Total non-current assets | 63,284,428 | 57,133,556 |
Current assets | ||
Inventories | 1,259,799 | 649,580 |
Other receivables | 242,117 | 296,219 |
Trade receivables | 7,587,906 | 8,385,237 |
Financial assets at fair value through profit or loss | 3,381,550 | 4,278,008 |
Financial assets at amortized cost | 1,208,770 | 16,978 |
Cash and cash equivalents | 27,608 | (375,345) |
Total current assets | 13,707,750 | 13,748,371 |
TOTAL ASSETS | 76,992,178 | 70,881,927 |
Share capital and reserve attributable to the owners of the Company | ||
Share capital | 883,342 | 898,661 |
Adjustment to share capital | 17,065,577 | 17,224,397 |
Additional paid-in capital | 240,621 | 229,921 |
Treasury stock | 23,113 | 7,794 |
Adjustment to treasury stock | 225,551 | 66,731 |
Cost treasury stock | (1,068,784) | 0 |
Legal reserve | 152,766 | 152,766 |
Optional reserve | 367,058 | 367,058 |
Other reserve | 0 | 0 |
Other comprehensive loss | (136,877) | (132,930) |
Accumulated losses | 13,216,605 | 8,979,321 |
TOTAL EQUITY | 30,968,972 | 27,793,719 |
Non-current liabilities | ||
Trade payables | 286,217 | 355,706 |
Other payables | 7,624,145 | 8,909,968 |
Borrowings | 7,192,467 | 6,189,294 |
Deferred revenue | 275,437 | 287,384 |
Salaries and social security payable | 162,737 | 176,679 |
Benefit plans | 385,098 | 477,765 |
Deferred tax liability | 8,048,308 | 7,290,150 |
Tax liabilities | 0 | 0 |
Provisions | 1,070,150 | 883,119 |
Total non-current liabilities | 25,044,559 | 24,570,065 |
Current liabilities | ||
Trade payables | 14,608,977 | 13,577,520 |
Other payables | 1,922,039 | 546,915 |
Borrowings | 1,077,453 | 105,139 |
Derivative financial instruments | 1,035 | 291 |
Deferred revenue | 5,346 | 4,961 |
Salaries and social security payable | 1,742,626 | 1,801,492 |
Benefit plans | 32,365 | 46,375 |
Tax payable | 617,326 | 689,091 |
Tax liabilities | 784,045 | 1,555,501 |
Provisions | 187,435 | 190,858 |
Total current liabilities | 20,978,647 | 18,518,143 |
TOTAL LIABILITIES | 46,023,206 | 43,088,208 |
TOTAL LIABILITIES AND EQUITY | $ 76,992,178 | $ 70,881,927 |
Statement of Comprehensive Inco
Statement of Comprehensive Income/(Loss) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Profit or loss [abstract] | |||
Revenue | $ 55,953,649 | $ 39,602,868 | $ 25,826,759 |
Electric power purchases | (31,875,655) | (20,820,281) | (11,989,634) |
Subtotal | 24,077,994 | 18,782,587 | 13,837,125 |
Transmission and distribution expenses | (10,912,722) | (9,247,065) | (13,263,857) |
Gross gain | 13,165,272 | 9,535,522 | 573,268 |
Selling expenses | (5,032,681) | (3,567,838) | (3,379,261) |
Administrative expenses | (2,872,127) | (2,504,506) | (2,288,037) |
Other operating expense, net | (1,320,810) | (1,102,692) | (913,015) |
Gain from interest in joint ventures | 1,602 | 10,052 | 6 |
Operating profit (loss) before income from provisional remedies, higer costs recognition and SE Resolution N° 32/15 | 3,941,256 | 2,370,538 | (6,007,039) |
Recognition of income - provisional remedies - MINEM Note 2016-04484723 | 0 | 0 | 2,074,170 |
Income recognition on account of the RTI - SEE Resolution N° 32/15 | 0 | 0 | 958,289 |
Higher cost recognition - SEE Resolution N° 250/13 and subsequent Notes | 0 | 0 | 185,436 |
Operating profit (loss) | 3,941,256 | 2,370,538 | (2,789,144) |
Financial income | 671,783 | 453,804 | 384,593 |
Financial expenses | (4,976,719) | (2,570,256) | (2,589,227) |
Other financial results | (1,965,320) | (168,468) | (87,303) |
Net financial expense | (6,270,256) | (2,284,920) | (2,291,937) |
Gain on net monetary position | 8,503,862 | 5,505,073 | 5,469,122 |
Profit before taxes | 6,174,862 | 5,590,691 | 388,041 |
Income tax | (1,877,396) | (510,056) | (147,270) |
Profit for the year | 4,297,466 | 5,080,635 | 240,771 |
Other comprehensive income: Items that will not be reclassified to profit or loss | |||
Results related to benefit plans | (5,638) | 22,219 | 14,404 |
Tax effect of actuarial loss profit on benefit plans | 1,691 | (7,216) | (5,041) |
Total other comprehensive results | (3,947) | 15,003 | 9,363 |
Comprehensive income for the year attributable to: | |||
Owners of the parent | 4,293,519 | 5,095,638 | 250,134 |
Comprehensive profit for the year | $ 4,293,519 | $ 5,095,638 | $ 250,134 |
Basic and diluted earnings profit per share: | |||
Basic and diluted earnings profit per share | $ 4.83 | $ 5.66 | $ 0.27 |
Statement of Changes in Equity
Statement of Changes in Equity - ARS ($) $ in Thousands | Share Capital | Adjustment to Share Capital | Treasury Stock | Adjustment to Treasury Stock | Additional Paid in Capital | Cost Treasury Stock | Legal Reserve | Optional Reserve | Other Reserve | Other Comprehensive Loss | Accumulated Income | Total |
Beginning balance at Dec. 31, 2015 | $ 897,043 | $ 17,220,537 | $ 9,412 | $ 70,591 | $ 183,604 | $ 0 | $ 0 | $ 0 | $ 0 | $ (157,296) | $ 4,177,739 | $ 22,401,630 |
Ordinary and Extraordinary Shareholders' Meeting | 0 | 0 | 0 | 0 | 0 | 0 | 152,766 | 367,058 | 0 | 0 | (519,824) | 0 |
Increase of Other reserve constitution - Share-bases compensation plan | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 32,833 | 0 | 0 | 32,833 |
Acquisition of own shares | 0 | |||||||||||
Profit for the year | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 240,771 | 240,771 |
Other comprehensive results for the year | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 9,363 | 0 | 9,363 |
Ending balance at Dec. 31, 2016 | 897,043 | 17,220,537 | 9,412 | 70,591 | 183,604 | 0 | 152,766 | 367,058 | 32,833 | (147,933) | 3,898,686 | 22,684,597 |
Increase of Other reserve constitution - Share-bases compensation plan | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 13,484 | 0 | 0 | 13,484 |
Payment of Other reserve constitution - Share-bases compensation plan | 1,618 | 3,860 | (1,618) | (3,860) | 46,317 | 0 | 0 | 0 | (46,317) | 0 | 0 | 0 |
Acquisition of own shares | 0 | |||||||||||
Profit for the year | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5,080,635 | 5,080,635 |
Other comprehensive results for the year | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 15,003 | 0 | 15,003 |
Ending balance at Dec. 31, 2017 | 898,661 | 17,224,397 | 7,794 | 66,731 | 229,921 | 0 | 152,766 | 367,058 | 0 | (132,930) | 8,979,321 | 27,793,719 |
Change of accounting standard - Adjustment by model of expected losses IFRS 9 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (60,182) | (60,182) |
Beginning balance | 898,661 | 17,224,397 | 7,794 | 66,731 | 229,921 | 0 | 152,766 | 367,058 | 0 | (132,930) | 8,919,139 | 27,733,537 |
Increase of Other reserve constitution - Share-bases compensation plan | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10,700 | 0 | 0 | 10,700 |
Payment of Other reserve constitution - Share-bases compensation plan | 272 | 299 | (272) | (299) | 10,700 | 0 | 0 | 0 | (10,700) | 0 | 0 | 0 |
Acquisition of own shares | (15,591) | (159,119) | 15,591 | 159,119 | 0 | (1,068,784) | 0 | 0 | 0 | 0 | 0 | (1,068,784) |
Profit for the year | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4,297,466 | 4,297,466 |
Other comprehensive results for the year | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3,947) | 0 | (3,947) |
Ending balance at Dec. 31, 2018 | $ 883,342 | $ 17,065,577 | $ 23,113 | $ 225,551 | $ 240,621 | $ (1,068,784) | $ 152,766 | $ 367,058 | $ 0 | $ (136,877) | $ 13,216,605 | $ 30,968,972 |
Statements of Cash Flows
Statements of Cash Flows - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | |||
Profit for the year | $ 4,297,466 | $ 5,080,635 | $ 240,771 |
Adjustments to reconcile net (loss) profit to net cash flows from operating activities: | |||
Depreciation of property, plants and equipments | 2,561,499 | 2,148,089 | 2,147,241 |
Loss on disposals of property, plants and equipments | 134,455 | 49,824 | 244,456 |
Net accrued interest | 4,296,427 | 2,113,569 | 2,198,026 |
Exchange difference | 2,629,966 | 564,056 | 911,819 |
Income tax | 1,877,396 | 510,056 | 147,270 |
Allowance for the impairment of trade and other receivables, net of recovery | 977,503 | 391,615 | 433,371 |
Adjustment to present value of receivables | 327 | 431 | (5,749) |
Provision for contingencies | 724,097 | 542,364 | 301,808 |
Changes in fair value of financial assets | (703,123) | (437,577) | (891,773) |
Accrual of benefit plans | 112,208 | 169,454 | 194,232 |
Gain from interest in joint ventures | (1,602) | (10,052) | (6) |
Higher cost recognition - SEE Resolution 250/13 and subsequent Notes | 0 | 0 | (185,436) |
Income recognition on account of the RTI - SE Resolution 32/15 | 0 | 0 | (958,289) |
Recognition of income - provisional remedies - MINEM Note 2016-04484723 | 0 | 0 | (2,074,170) |
Net gain from the repurchase of Corporate Bonds | (4,539) | 0 | (90) |
Income from non-reimbursable customer contributions | (5,574) | (4,372) | (1,520) |
Other reserve constitution - Share bases compensation plan | 10,700 | 11,469 | 32,833 |
Gain on net monetary position | (8,503,862) | (5,505,073) | (5,469,122) |
Changes in operating assets and liabilities: | |||
Increase in trade receivables | (2,131,406) | (2,623,696) | (5,503,081) |
Decrease in other receivables | 833,953 | 28,093 | 1,967,981 |
Increase in inventories | (819,875) | (530,114) | (283,022) |
Increase in deferred revenue | 88,368 | 0 | 86,859 |
Increase in trade payables | 1,242,870 | 4,887,145 | 4,853,944 |
Increase in salaries and social security payable | 565,657 | 314,806 | 579,828 |
Decrease in benefit plans | (55,354) | (56,573) | (57,013) |
(Decrease) Increase in tax liabilities | (515,651) | (366,667) | 1,832,418 |
Increase in other payables | 3,220,527 | 438,201 | 4,327,303 |
Decrease in provisions | (325,247) | (58,934) | (95,930) |
Payment of Tax payable | (886,154) | (390,763) | 0 |
Net cash flows generated by operating activities | 9,621,032 | 7,265,986 | 4,974,959 |
Cash flows from investing activities | |||
Payment of property, plants and equipments | (8,269,359) | (7,897,106) | (4,232,239) |
Net collection of Financial assets | (2,344,945) | (1,013,532) | 27,103 |
Redemption net of money market funds | 2,312,229 | 348,233 | 109,182 |
Mutuum granted to third parties | (114,889) | 0 | 0 |
Collection of receivables from sale of subsidiaries | 88,529 | 53,622 | 23,974 |
Net cash flows used in investing activities | (8,328,435) | (8,508,783) | (4,071,980) |
Cash flows from financing activities | |||
Proceeds from borrowings | 0 | 1,285,946 | 0 |
Payment of interests | (652,667) | (418,494) | (516,799) |
Payment of redemption on corporate notes | 0 | 0 | (420,778) |
Repurchase of corporate notes | (375,520) | 0 | (9,818) |
Acquisition of own shares | (1,068,784) | 0 | 0 |
Net cash flows (used in) generated by financing activities | (2,096,971) | 867,452 | (947,395) |
Decrease in cash and cash equivalents | (804,374) | (375,345) | (44,416) |
Cash and cash equivalents at the beginning of year | 122,349 | 476,451 | 237,619 |
Exchange differences in cash and cash equivalents | 155,985 | (62) | (8,967) |
Result from exposure to inflation | 553,648 | 21,305 | 292,215 |
Decrease in cash and cash equivalents | (804,374) | (375,345) | (44,416) |
Cash and cash equivalents at the end of the year | 27,608 | 122,349 | 476,451 |
Supplemental cash flows information: Non-cash activities | |||
Acquisitions of property, plant and equipment through increased trade payables | (677,207) | (585,692) | (379,146) |
Decrease of property, plant and equipment through increased other receivables | $ 439,300 | $ 0 | $ 0 |
1. General information
1. General information | 12 Months Ended |
Dec. 31, 2018 | |
General Information | |
General information | History and development of the Company edenor By means of an International Public Bidding, the PEN awarded 51% of the Company’s capital stock, represented by the Class "A" shares, to the bid made by EASA, the parent company of edenor On September 1, 1992, EASA took over the operations of edenor The corporate purpose of edenor edenor The Company’s economic and financial situation One of the main milestone events in 2017 was the return to the regulatory framework, thanks to which the RTI and the new electricity rate schedules, which have been almost entirely implemented since February 2018, have materialized. In that context, the Company’s Board of Directors is optimistic that the effects caused by the application of the aforementioned RTI will make it possible to gradually restore the Company’s economic and financial position; being confident that the new electricity rates will result in the Company’s operating once again under a regulatory framework with clear and precise rules, which will make it possible to not only cover the operation costs, afford the investment plans and meet debt interest payments, but also deal with the impact of the different variables that affect the Company’s business. As of December 31, 2018, the Company’s comprehensive income amounts to a profit of $ 4.2 billion, whereas the working capital totals $ 7.3 billion– deficit-, which includes the amount owed to CAMMESA for $ 11.9 billion (principal plus interest accrued as of December 31, 2018). The Company’s equity and negative working capital reflects the deteriorated financial and cash position the Company still has as a consequence of the Federal Government’s delay in the compliance with certain obligations under the Adjustment Agreement, which are contingent on specific negotiations and regulatory changes to be applied by the different governmental bodies. Additionally, the increase in operating costs during the fiscal year, as a consequence of the country’s macroeconomic context, made the Company intensify its efforts to be able to absorb them and comply with the execution of the investment plan and the carrying out of the essential operation and maintenance works necessary to maintain the provision of the public service, object of the concession, in a satisfactory manner in terms of quality and safety. The issues pending resolution at the date of issuance of these financial statements are, among others, the following: i) the treatment to be given to the funds received from the Federal Government through the loans for consumption (mutuums) agreements entered into with CAMMESA for the fulfillment of the Extraordinary Investment Plan, granted to cover the insufficiency of the FOCEDE’s funds; ii) the conditions for the settlement of the balance outstanding with CAMMESA at the date of issuance of SEE Resolution No. 32/15; iii) the treatment to be given to the Penalties and Discounts determined by the ENRE under the terms of the Adjustment Agreement not complied with by the Federal Government, whose payment/crediting is pending. In this regard, the Company and the Governmental Secretariat of Energy are negotiating the signing of an agreement for the regularization of the previously mentioned pending issues. All that within the framework of the transfer of Concession Holders to the jurisdiction of the Province and the City of Buenos Aires described in Note 2.h. |
2. Regulatory framework
2. Regulatory framework | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Framework | |
Regulatory framework | a) General The ENRE is empowered to control the quality levels of the technical product and service, the commercial service and the compliance with public safety regulations, as provided for in the Concession Agreement. If the Distribution Company fails to comply with the obligations assumed, the ENRE may apply the penalties stipulated in the aforementioned Agreement. b) Concession The term of the concession is 95 years, which may be extended for an additional maximum period of 10 years. The term of the concession is divided into management periods: a first period of 15 years and subsequent periods of 10 years each. At the end of each management period, the Class “A” shares representing 51% of the share capital of edenor The Company has the exclusive right to render electric power distribution and sales services within the concession area to all the customers who are not authorized to obtain their power supply from the MEM, thus being obliged to supply all the electric power that may be required in due time and in accordance with the established quality levels. In addition, the Company must allow free access to its facilities to any MEM agents whenever required, under the terms of the Concession. No specific fee must be paid by the Company under the Concession Agreement during the term of the concession. On January 6, 2002, the PEN enacted Law No. 25,561 whereby adjustment clauses in dollars, as well as any other indexation mechanisms stipulated in the contracts entered into by the Federal Public Administration, including those related to public utilities, were declared null and void as from such date. The resulting prices and rates were converted into Argentine pesos at a rate of 1 peso per US dollar. In this context, the Company is subject to compliance with the terms of its Concession Agreement and the provisions of the regulatory framework comprised of National Laws Nos. 14,772, 15,336 and 24,065, Resolutions and Regulatory and supplementary standards issued by the different entities with authority over the matter. Thus, the Company is responsible for the provision of the public service of electricity distribution and sale with a satisfactory quality level, complying for such purpose with the requirements set forth in the aforementioned concession agreement and regulatory framework. Failure to comply with the established guidelines will result in the application of fines, based on the economic damage suffered by the customer when the service is provided in an unsatisfactory manner, the amounts of which will be determined in accordance with the methodology stipulated in the above-mentioned agreement. The ENRE is the authority in charge of controlling strict compliance with the pre-established guidelines. c) Electricity rate situation On January 31, 2017, the ENRE issued Resolution No. 63/17, pursuant to which it determined the definitive Electricity Rate Schedules, the review of costs, the required quality levels, and all the other rights and obligations that are to be applied and complied with by the Company as from February 1, 2017. The aforementioned Resolution stated that the ENRE, as instructed by the MINEM, were to limit the increase in the VAD resulting from the RTI process and applicable as from February 1, 2017, to a maximum of 42% vis-á-vis the VAD in effect at the date of issuance of the aforementioned resolution, with the remaining value of the new VAD being applied in two stages, the first of them in November 2017 and the second and last one in February 2018. Furthermore, on November 30, 2017, by means of Resolution No. 603/17, the ENRE approved the CPD values, applicable as from December 1, 2017, and retroactively to consumption recorded in the months of August through November 2017. That amount totaled $ 753.9 million and was billed in two installments, December 2017 and January 2018. Additionally, the Electricity Rate Schedule’s values, applicable as from December 1, 2017, were approved. On January 31, 2018, the ENRE issued Resolution No. 33/18, whereby it approves the CPD values relating to the July 2017-December 2017 period, which were in the order of 11.99%, the values of the 48 monthly installment to be applied in accordance with the provisions of ENRE Resolution No. 329/17 which were deferred in the year 2017, and the electricity rate schedule to be applied to consumption recorded as from February 1, 2018. Additionally, it is informed that the average electricity rate value amounts to $2.4627/kwh. Furthermore, on July 31, 2018, the ENRE issued Resolution No. 208/18, whereby it approves, as from August 1, 2018, the CPD relating to the January-June 2018 period, to be applied 7.93% as of August 1, 2018, and 6.51% in six (6) consecutive monthly installments as of February 1, 2019. The CPD amounted to 15.85%. Moreover, the above-mentioned resolution sets the system of caps for the social tariff as well as the values that the Company shall apply to determine and credit discount amounts onto the power bills of the consumers affected by deficiencies in the quality of the technical product and/or the quality of the technical and commercial service as from the first control day of the September 2018-February 2019 six-month period. Additionally, it is informed that the average electricity rate value amounts to $2.9871/kWh. Finally, according to section 4 of SE Resolution No. 366/18, passed on December 27, 2018, SE Resolution 1091/17 was repealed, thus eliminating the energy-savings discount for the residential tariff charged to customers framed or not under the social tariff as from January 1, 2019. With regard to the social tariff discounts, they will be assumed by the Governments of the Province of Buenos Aires and the City of Buenos Aires in accordance with the provisions of the 2019 Federal Budget Law. d) Framework agreement On January 10, 1994, the Company, together with Edesur S.A., the Federal Government and the Government of the Province of Buenos Aires entered into the so-called Framework Agreement, whose purpose was to establish the guidelines under which the Company was to supply electricity to low-income areas and shantytowns. In October 2003, the so-called New Framework Agreement was signed with the aim of setting the bases and general guidelines based on which the Federal and the Provincial Governments’ economic contribution for the electricity supplied by the two Distribution Companies to the different shantytowns would take place and be coordinated. After successive extensions of the agreement’s term, the latest extension was in effect until September 30, 2017. At the date of these financial statements, the Company is negotiating with the Federal Government the signing of a new extension for the period elapsed from October 1, 2017 through December 31, 2018, and the payment of the electricity supplied during such period; therefore, no revenue for this concept has been recognized. Additionally, and as a consequence of the transfer of jurisdiction over the public service of electricity distribution from the Federal Government to the Province of Buenos Aires and to the City of Buenos Aires provided for by Law 27,467, the Company will be required, when the transfer takes place, to undertake a review, with the new Grantors of the Concession, of the treatment to be given to low-income areas and shantytowns’ consumption of electricity as from January 1, 2019. In this framework, the Government of the Province of Buenos Aires enacted Law No. 15,078 on General Budget, which establishes that the aforementioned consumption shall be borne by the referred to province’s Municipalities and approved by the regulatory entities or local authorities having jurisdiction in each area. e) Penalties The ENRE is empowered to control the quality levels of the technical product and service, the commercial service and the compliance with public safety regulations, as provided for in the Concession Agreement. If the Distribution Company fails to comply with the obligations assumed, the ENRE may apply the penalties stipulated in the aforementioned Agreement. As of December 31, 2018 and 2017, the Company has recognized in its financial statements the penalties accrued, whether imposed or not yet issued by the ENRE, relating to the control periods elapsed as of those dates. Furthermore, ENRE Resolution No. 63/17, Note 2.c).III, has set out the control procedures, the service quality assessment methodologies, and the penalty system, applicable as from February 1, 2017, for the 2017 – 2021 period. Additionally, by means of Note No. 125,248 dated March 29, 2017, the ENRE sets the new penalty determination and adjustment mechanisms in relation to the control procedures, the service quality assessment methodologies, and the penalty system applicable as from February 1, 2017 for the 2017 – 2021 period set by ENRE Resolution No. 63/17, providing for the following: i) Penalty values shall be determined on the basis of the kWh value, the average electricity rate, the cost of energy not supplied or other economic parameter at the value in effect at the first day of the control period or the value in effect at the date of the penalizable event for penalties arising from specific events. ii) For all the events that occurred during the transition period (the period between the signing of the Adjustment Agreement and the effective date of the RTI) for which a penalty has not been imposed, penalties shall be adjusted by the IPC used by the BCRA to produce the ITCRM for the month prior to the end of the control period or that for the month prior to the date of occurrence of the penalizable event for penalties arising from specific events, until the date on which the penalty is imposed. This mechanism is also applicable to the concepts penalized after April 15, 2016 (ENRE Note No. 120,151) and until the effective date of the RTI. This adjustment will be part of the penalty principal amount. iii) Unpaid penalties will accrue interest at the BNA lending rate for thirty-day discount transactions from the date of the resolution to the date of actual payment, as interest on late payment. In the case of penalties relating to Customer service, the calculated amount shall be increased by 50%. iv) Penalties subsequent to February 1, 2017 will be valued at the Kwh value or the cost of energy not supplied of the first day of the control period or of the day on which the penalty is imposed for penalties arising from specific events. Those concepts will not be adjusted by the IPC, applying the interest on late payment established in iii) above. Moreover, an additional fine equivalent to twice the amount of the penalty will be determined if payment is not made in due time and proper form. In the ENRE’s opinion many of the penalties imposed in kWh must be valued at the date of occurrence of the penalizable event; these modifications have been quantified and recognized as of December 31, 2018. In accordance with the provisions of Sub-Appendix XVI to ENRE Resolution No. 63/17, the Company is required to submit in a term of 60 calendar days the calculation of global indicators, interruptions for which force majeure had been alleged, the calculation of individual indicators, and will determine the related discounts, crediting the amounts thereof within 10 business days. In turn, the ENRE will examine the information submitted by the Company, and in the event that the crediting of such discounts were not verified will impose a fine, payable to the Federal Government, equivalent to twice the value that should have been recorded. At the date of these financial statements, the Company has complied with the provisions of the aforementioned Resolution in relation to the six-month period ended August 31, 2018. Furthermore, in different resolutions concerning penalties relating to the Quality of the Commercial and Technical Service, the Regulatory Entity has provided for the application of increases and adjustments, applying for such purpose a criterion different from the one applied by the Company. In this regard, the ENRE implemented an automatic penalty mechanism in order that the discounts on account of deviations from the established limits may be credited to customers within a term of 60 days as from the end of the six-month control period. In fiscal year 2018, the ENRE regulated and/or issued new penalty procedures, to wit: ü ENRE Resolution No. 118/18: It regulated the Compensation for extraordinary service provision interruptions. ü ENRE Resolution No. 170/18: It regulated the Penalty System for Deviations from the Investment Plan, a procedure whereby real investments are assessed by comparison with the annual investment plan submitted by the Company, and the investment plan carried out for the 5-year rate period is assessed as against the Five-year period plan proposed in the RTI. ü ENRE Resolution No. 198/18: New Supplementary Penalty System of Technical Service Quality, which penalizes deviations ºfrom quality parameters at feeder level. ü ENRE Resolution N° 91/18: Through the filing of charges, the ENRE informs edenor The effects of these resolutions were quantified by the Company and recognized as of December 31, 2018. f) Restriction on the transfer of the Company’s common shares The by-laws provide that Class “A” shareholders may transfer their shares only with the prior approval of the ENRE. The ENRE must communicate its decision within 90 days upon submission of the request for such approval, otherwise the transfer will be deemed approved. Furthermore, Caja de Valores S.A. (the Public Register Office), which keeps the Share Register of the shares, is entitled (as stated in the by-laws) to reject such entries which, at its criterion, do not comply with the rules for the transfer of common shares included in (i) the Business Organizations Law, (ii) the Concession Agreement and (iii) the By-laws. In addition, the Class “A” shares will be pledged during the entire term of the concession as collateral to secure the performance of the obligations assumed under the Concession Agreement. Other restrictions: · In connection with the issuance of Corporate Notes, during the term thereof, PESA is required to be the beneficial owner and owner of record of not less than 51% of the Company’s issued, voting and outstanding shares. · In connection with the Adjustment Agreement signed with the Grantor of the Concession and ratified by Executive Order No. 1,957/06, Section 10 stipulates that from the signing of the agreement through the end of the Transition Period, the majority shareholders may not modify their ownership interest nor sell their shares. g) Law on electricity dependent patients On May 17, 2017, Law No. 27,351 was passed, which guarantees the permanent and free of charge supply of electricity to those individuals who qualify as dependent on power for reasons of health and require medical equipment necessary to avoid risks in their lives or health. The law states that the account holder of the service or someone who lives with him/her (a cohabitant) that is registered as “Electricity dependent for reasons of health” will be exempt from the payment of any and all connection fees and will benefit from a special free of charge tariff treatment in the electric power supply service under national jurisdiction, which consists in the recognition of the entire amount of the power bill. According to Executive Order No. 740 of the PEN, dated September 20, 2017, the MINEM will be the Authority of Application of Law No. 27,351, whereas the Ministry of Health will be responsible for determining the conditions necessary to be met for registration with the “Registry of Electricity Dependent for Reasons of Health” and will issue the clarifying and supplementary regulations for the application thereof. On September 25, 2017, the National Ministry of Health issued Resolution No. 1,538-E/17, which creates the Registry of Electricity Dependent for Reasons of Health (RECS), within the orbit of the National Ministry of Health, operating under the authority of the Undersecretariat for the Management of Health Care Services. At the date of issuance of these financial statements no further regulations have been issued concerning the Resolution mentioned in the preceding paragraph. h) Change of Jurisdiction By Law No. 27467, 2019 Federal budget of expenditures and resources, the Executive Power is instructed to promote such actions that may be necessary in order for electricity distribution companies edenor In this regard, on February 28, 2019, the Federal Government, the Province of Buenos Aires and the City of Buenos Aires entered into an agreement for the transfer of the public service of electricity distribution, duly awarded to edenor |
3. Basis of preparation
3. Basis of preparation | 12 Months Ended |
Dec. 31, 2018 | |
Basis Of Preparation | |
Basis of preparation | The financial statements for the year ended December 31, 2018 have been prepared in accordance with IFRS issued by the IASB and IFRIC interpretations, incorporated by the CNV. These financial statements were approved for issue by the Company’s Board of Directors on March 8, 2019. Restatement of financial information The financial statements as of December 31, 2018, including the prior year’s figures, have been restated to reflect the changes in the general purchasing power of the Company’s functional currency (the Argentine peso), in conformity with the provisions of both IAS 29 “Financial reporting in hyperinflationary economies” and General Resolution No. 77718 of the National Securities Commission. As a result thereof, the financial statements are stated in terms of the measuring unit current at the end of the reporting period. According to IAS 29, the restatement of financial statements is necessary when the functional currency of an entity is that of a hyperinflationary economy. To define a state of hyperinflation, IAS 29 provides a series of guidelines, including but not limited to the following, which consist of (i) analyzing the behavior of population, prices, interest rates and wages faced with the development of price indexes and the loss of the currency’s purchasing power, and (ii) as a quantitative feature, which, in practice, is the mostly considered condition, verifying whether the cumulative inflation rate over three years approaches or exceeds 100%. Although in recent years the general level of prices experienced a significant growth, the cumulative inflation rate over three years in Argentina had remained below 100%. However, due to different macroeconomic factors, triennial inflation in 2018 surpassed that percentage, while the federal government’s targets and other available projections indicate that this trend will not reverse in the short term. Therefore, according to IAS 29, the Argentine economy should be regarded as highly inflationary as from July 1, 2018. The standard states that the adjustment will be resumed from the date on which it was last made, February 2003. Moreover, on July 24, 2018, the FACPCE issued a communication confirming that which has been previously mentioned. Additionally, it should be taken into account that on December 4, 2018 the Official Gazette In order to not only assess the aforementioned quantitative condition but also restate the financial statements, the CNV has stated that the series of indexes to be used for the application of IAS 29 is that determined by the FACPCE. That series of indexes combines the IPC published by the INDEC from January 2017 (base month: December 2016) with the IPIM published by the INDEC through that date, computing for the months of November and December 2015 -in respect of which there is no available information from the INDEC on the development of the IPIM-, the variation recorded in the IPC of the City of Buenos Aires. Taking into consideration the above-mentioned index, in the fiscal years ended December 2018, 2017, and 2016 the inflation rate amounted to 47.66%, 24.79% and 40.9% respectively. The effects of the application of IAS 29 are summarized below: Restatement of the statement of financial position (i) Monetary items (those with a fixed nominal value in local currency) are not restated in as much as they are already expressed in terms of the measuring unit current at the closing date of the reporting period. (ii) Non-monetary items carried at historical cost or at the current value of a date prior to the end of the reporting period are restated using coefficients that reflect the variation recorded in the general level of prices from the date of acquisition or revaluation to the closing date of the reporting period. Depreciation charges of property, plant and equipment and amortization charges of intangible assets recognized in profit or loss for the period, as well as any other consumption of non-monetary assets will be determined on the basis of the new restated amounts. (iii) The restatement of non-monetary assets in terms of the measuring unit current at the end of the reporting period without an equivalent adjustment for tax purposes, gives rise to a taxable temporary difference and to the recognition of a deferred tax liability, deferred tax liability is recognized for the temporary difference generated bythe restatement of the accounting bases of asset without any restatement of their tax bases the debit entry of this deffered tax liability is a monetary loss. Restatement of the statement of profit or loss and other comprehensive income (i) Income and expenses are restated from the date when they were recorded, except for those profit or loss items that reflect or include in their determination the consumption of assets carried at the purchasing power of the currency as of a date prior to the recording of the consumption, which are restated based on the date when the asset to which the item is related originated (for example, depreciation, impairment and other consumptions of assets valued at historical cost). (ii) The net gain from the maintenance of monetary assets and liabilities is presented in a line item separately from the profit or loss for the year. Restatement of the statement of changes in equity (i) The components of equity, except for reserved earnings and unappropriated retained earnings, have been restated from the dates on which they were contributed, or on which they otherwise arose. (ii) The restated unappropriated retained earnings were determined by the difference between net assets restated at the date of transition and the other components of opening equity expressed as indicated in the preceding headings. (iii) After the restatement at the date of transition indicated in (i) above, all components of equity are restated by applying the general price index from the beginning of the period, and each variation of those components is restated from the date of contribution or the date on which it otherwise arose. Restatement of the statement of cash flows IAS 29 requires that all the items of this statement be restated in terms of the measuring unit current at the closing date of the reporting period. The monetary gain or loss generated by cash and cash equivalents is presented in the statement of cash flows separately from cash flows from operating, investing and financing activities, as a specific item of the reconciliation between cash and cash equivalents at the beginning and end of the period. |
4. Accounting policies
4. Accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies | |
Accounting policies | The main accounting policies used in the preparation of these financial statements are detailed below. Note 4.1 | New accounting standards, amendments and interpretations issued by the IASB The Company has applied the following standards and/or amendments for the first time as from January 1, 2018: - IFRS 15 "Revenue from contracts with customers" (issued in May 2014 and amended in September 2015) - IFRS 9 “Financial instruments” (amended in July 2014) - IFRS 2 “Share-based payments” (amended in June 2016) - IFRIC 22 “Foreign currency transactions and Advanced consideration” (issued in December 2016) - Annual improvements to IFRSs – 2014-2016 Cycle (issued in December 2016) In the respective accounting policies detail the main issues related to the initial application of IFRS 9 and IFRS 15. The application of the other standards, amendments and interpretations generated no impact on either the Company’s results of operations and financial position, or the accounting policies applicable as from January 1, 2018. Note 4.1.1 | Impacts of adoption of rules not yet effectives - IFRS 16 “Leases”: On January 13, 2016, the IASB published IFRS 16, which replaces the current guidance in IAS 17. The standard defines a lease as a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration. The standard requires the recognition of a lease liability that reflects future lease payments and a ‘right-of-use asset’ for almost all lease contracts. This is a significant change compared to IAS 17 under which lessees were required to make a distinction between a finance lease (reported on the balance sheet) and an operating lease (off balance sheet). IFRS 16 contains an optional exemption for certain short-term leases and leases of low-value assets; however, this exemption can only be applied by lessees. IFRS 16 is effective for annual reporting periods beginning on or after January 1, 2019. The impact of the application of the aforementioned standard estimated by the Company is not significant. - IFRS 17 “Insurance Contracts”, issued in May 2017. It replaces IFRS 4 - an interim standard issued in 2004 that allowed entities to account for insurance contracts using their local accounting requirements, resulting in multiple application approaches. IFRS 17 establishes the principles for the recognition, measurement, presentation, and disclosure of insurance contracts, and applies to annual periods beginning on or after January 1, 2021, with early adoption permitted if entities also apply IFRS 9 and IFRS 15. The Company is currently analyzing the impact of the application of IFRS 17; nevertheless, it estimates that the application thereof will have no impact on the Company’s results of operations or its financial position. - IFRIC 23 “Uncertainty over income tax treatments”, issued in June 2017. It clarifies the application of IAS 12 where there is uncertainty over income tax treatments. In accordance with the interpretation, an entity is required to reflect the impact of the uncertain tax treatment using the method that best predicts the resolution of the uncertainty, using either the most likely amount method or the expected value method. Additionally, the entity is required to assume that the tax authority will examine the uncertain treatments and have full knowledge of all the related relevant information when assessing the tax treatment over income tax. The interpretation is effective for annual periods beginning on or after January 1, 2019, although early adoption is permitted. The Company estimates that the application of IFRIC 23 will have no impact on the Company’s results of operations or its financial position. - IAS 28 “Investments in associates and joint ventures”, amended in October 2017. It clarifies that IFRS 9 applies to other financial instruments in an associate or joint venture to which the equity method is not applied. The standard is effective for annual periods beginning on or after January 1, 2019, although early adoption is permitted. The Company estimates that its application will have no impact on the Company’s results of operations or its financial position. - IAS 19 “Employee benefits”, amended in February 2018. It introduces changes to the measurement of past service cost and net interest in the case of post-employment defined benefit plans that have suffered amendments, curtailments or settlements. It applies to amendments, curtailments or settlements as from January 1, 2019. The Company is currently assessing the impact of these new standards and amendments. Note 4.2 | Property, plant and equipment Additions have been valued at acquisition cost restated to reflect the effects of inflation, net of the related accumulated depreciation. Depreciation has been calculated by applying the straight-line method over the remaining useful life of the assets, which was determined on the basis of engineering studies. Subsequent costs (major maintenance and reconstruction costs) are either included in the value of the assets or recognized as a separate asset, only if it is probable that the future benefits associated with the assets will flow to the Company, being it possible as well that the costs of the assets may be measured reliably and the investment will improve the condition of the asset beyond its original state. The other maintenance and repair expenses are recognized in profit or loss in the year in which they are incurred. In accordance with the Concession Agreement, the Company may not pledge the assets used in the provision of the public service nor grant any other security interest thereon in favor of third parties, without prejudice to the Company’s right to freely dispose of those assets which in the future may become inadequate or unnecessary for such purpose. This prohibition does not apply in the case of security interests granted over an asset at the time of its acquisition and/or construction as collateral for payment of the purchase and/or installation price. The residual value and the remaining useful lives of the assets are reviewed and adjusted, if appropriate, at the end of each fiscal year (reporting period). Land is not depreciated. Facilities in service: between 30 and 50 years Furniture, tools and equipment: between 5 and 20 years Construction in process is valued based on the degree of completion and is recorded at cost restated to reflect the effects of inflation less any impairment loss, if applicable. Cost includes expenses attributable to the construction, when they are part of the cost incurred for the purposes of acquisition, construction or production of property, plant and equipment that require considerable time until they are in condition to be used. These assets begin to be depreciated when they are in economic condition to be used. Gains and losses on the sale of Property, plant and equipment are calculated by comparing the price collected with the carrying amount of the asset, and are recognized within Other operating expense or Other operating income in the Statement of Comprehensive Income. The valuation of property, plant and equipment, taken as a whole, does not exceed its recoverable value, which is measured as the higher of value in use and fair value less costs to sell at the end of the year. At the date of issuance of these financial statements there are no indicators of a potential impairment (Note 6.c). Note 4.3 | Interests in joint ventures The main conceptual definitions are as follow: i. A joint arrangement takes place among two or more parties when they have joint control: joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. ii. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Such parties are called joint venturers. iii. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. These parties are called joint operators. The Company accounts for its investment in joint ventures in accordance with the equity method. Under this method, the interest is initially recognized at cost and subsequently adjusted by recognizing the Company’s share in the profit or loss obtained by the joint venture, after acquisition date. The Company recognizes in profit or loss its share of the joint venture’s profit or loss and in other comprehensive income its share of the joint venture’s other comprehensive income. When the Company carries out transactions in the joint ventures, the unrealized gains and losses are eliminated in accordance with the percentage interest held by the Company in the jointly controlled entity. The joint ventures’ accounting policies have been modified and adapted, if applicable, to ensure consistency with the policies adopted by the Company. Furthermore, taking into account that the interests in joint ventures are not regarded as significant balances, the disclosures required under IFRS 12 have not been made. Note 4.4 | Revenue recognition a. Revenue from sales Revenues from contracts with customers (ENRE Resolutions No. 63/17, 603/17, 33/18, 208/18 and SE Resolution No. 366/18): The Company recognizes, on a monthly basis, revenues from electricity distribution and commercialization as energy is distributed to each client based on the applicable tariff and procedures established by the ENRE. Such revenue includes energy delivered, whether billed or unbilled, at the end of each period. Revenues are not adjusted for the effect of financing components as sales’ payments are not deferred over time, which is consistent with market practice. The current remuneration scheme establishes certain limits to the increase in the VAD resulting from the tariff structure review process, as well as a mechanism for monitoring the variation of CPD, which implies an increase in the compensation scheme for certain cases; the Company recognizes related revenues only to the extent that it is highly probable that a significant reversal will not occur and it is probable that the consideration will be collected regardless the period in which the energy is distributed. The Company recognizes revenues related to energy supply to low-income areas and shantytowns, only to the extent that the Framework Agreement with Argentine Nation and Province of Buenos Aires has been renewed for the period in which the service was rendered. Other revenues from contracts with customers: The Company recognizes other revenues from contracts with customers in relation to connection and reconnection services, rights of use on poles and transport of energy to other distribution companies on a monthly basis as services are rendered based on the price established in each contract. Revenues are not adjusted for the effect of financing components as sales’ payments are not deferred over time, which is consistent with market practice. b. Interest income Interest income is recognized by applying the effective interest rate method. Interest income is recorded in the accounting on a time basis by reference to the principal amount outstanding and the applicable effective rate. Interest income is recognized when it is probable that the economic benefits associated with the transaction will flow to the Company and the amount of the transaction can be measured reliably. Note 4.5 | Effects of the changes in foreign currency exchange rates a. Functional and presentation currency The information included in the financial statements is measured using the Company’s functional currency, which is the currency of the main economic environment in which the entity operates. The financial statements are measured in pesos (legal currency in Argentina), restated to reflect the effects of inflation (Note 3), which is also the presentation currency. b. Transactions and balances Foreign currency denominated transactions and balances are translated into the functional and presentation currency using the rates of exchange prevailing at the date of the transactions or revaluation, respectively. The gains and losses generated by foreign currency exchange differences resulting from each transaction and from the translation of monetary items valued in foreign currency at the end of the year are recognized in the Statement of Income. The foreign currency exchange rates used are the bid price for monetary assets, the offer price for monetary liabilities, and the specific exchange rate for foreign currency denominated transactions. Note 4.6 | Trade and other receivables a. Trade receivables The receivables arising from services billed to customers but not collected as well as those arising from services rendered but unbilled at the closing date of each year are recognized at fair value and subsequently measured at amortized cost using the effective interest rate method. The receivables from electricity supplied to low-income areas and shantytowns are recognized, also in line with revenue, when the Framework Agreement has been renewed for the period in which the service was provided. b. Other receivables The financial assets included in other receivables are initially recognized at fair value (generally the original billing/settlement amount) and subsequently measured at amortized cost, using the effective interest rate method, and when significant, adjusted by the time value of money. The Company records impairment allowances when there is objective evidence that the Company will not be able to collect all the amounts owed to it in accordance with the original terms of the receivables. The rest of other receivables are initially recognized at the amount paid. Note 4.7 | Inventories Inventories are valued at the lower of acquisition cost restated to reflect the effects of inflation and net realizable value. They are valued based on the purchase price, import duties (if applicable), and other taxes (that are not subsequently recovered by tax authorities), and other costs directly attributable to the acquisition of those assets. Cost is determined by applying the weighted average price (WAP) method. The Company has classified inventories into current and non-current depending on whether they will be used for maintenance or capital expenditures and on the period in which they are expected to be used. The non-current portion of inventories is disclosed in the “Property, plant and equipment” account. The valuation of inventories, taken as a whole, does not exceed their recoverable value at the end of each year. Note 4.8 | Financial assets Note 4.8.1 | Classification The Company classifies financial assets into the following categories: those measured at amortized cost and those subsequently measured at fair value. This classification depends on whether the financial asset is an investment in a debt or an equity instrument. In order for a financial asset to be measured at amortized cost, the two conditions described below must be met. All other financial assets are measured at fair value. IFRS 9 requires that all investments in equity instruments be measured at fair value. a. Financial assets at amortized cost Financial assets are measured at amortized cost if the following conditions are met: i. the objective of the Company’s business model is to hold the assets to collect the contractual cash flows; and ii. the contractual terms give rise, on specified dates, to cash flows that are solely payments of principal and interest on principal. b. Financial assets at fair value If any of the above-detailed conditions is not met, financial assets are measured at fair value through profit or loss. All investments in equity instruments are measured at fair value. For those investments that are not held for trading, the Company may irrevocably elect at the time of their initial recognition to present the changes in the fair value in other comprehensive income. The Company’s decision was to recognize the changes in fair value in profit or loss. Note 4.8.2 | Recognition and measurement The regular way purchase or sale of financial assets is recognized on the trade date, i.e. the date on which the Company agrees to acquire or sell the asset. Financial assets are derecognized when the rights to receive the cash flows from the investments have expired or been transferred and the Company has transferred substantially all the risks and rewards of the ownership of the assets. Financial assets are initially recognized at fair value plus, in the case of financial assets not measured at fair value through profit or loss, transaction costs that are directly attributable to the acquisition thereof. The gains or losses generated by investments in debt instruments that are subsequently measured at fair value and are not part of a hedging transaction are recognized in profit or loss. Those generated by investments in debt instruments that are subsequently measured at amortized cost and are not part of a hedging transaction are recognized in profit or loss when the financial asset is derecognized or impaired and by means of the amortization process using the effective interest rate method. The Company subsequently measures all the investments in equity instruments at fair value. When it elects to present the changes in fair value in other comprehensive income, such changes cannot be reclassified to profit or loss. Dividends arising from these investments are recognized in profit or loss to the extent that they represent a return on the investment. The Company reclassifies financial assets if and only if its business model to manage financial assets is changed. The expected losses, according to the calculated coefficients, are detailed in Note 6.a. Note 4.8.3 | Impairment of financial assets At the end of each annual reporting period, the Company assesses whether there is objective evidence that the value of a financial asset or group of financial assets measured at amortized cost is impaired. The value of a financial asset or group of financial assets is impaired, and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a “loss event”), and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably measured. Impairment tests may include evidence that the debtors or group of debtors are undergoing significant financial difficulties, have defaulted on interest or principal payments or made them after they had come due, the probability that they will enter bankruptcy or other financial reorganization, and when observable data indicate that there is a measurable decrease in the estimated future cash flows, such as changes in payment terms or in the economic conditions that correlate with defaults. In the case of financial assets measured at amortized cost, the amount of the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The asset’s carrying amount is reduced and the amount of the impairment loss is recognized in the Statement of Income. Although cash, cash equivalents and financial assets measured at amortized cost are also subject to the impairment requirements of IFRS 9, the identified impairment loss is not material. Note 4.8.4 | Offsetting of financial instruments Financial assets and liabilities are offset, and the net amount reported in the Statement of Financial Position, when there is a legally enforceable right to offset the recognized amounts, and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously. Note 4.9 | Derivative financial instruments Derivative financial instruments are initially recognized at fair value on the date on which the respective contract is signed. Subsequently to the initial recognition, they are remeasured at their fair value. The method for recognizing the resulting loss or gain depends on whether the derivative has been designated as a hedging instrument and, if that is the case, on the nature of the item being hedged. As of December 31, 2018 and 2017, the economic impact of these transactions is recorded in the Other financial expense account of the Statement of Comprehensive Income. During fiscal year 2018, the Company has not entered into futures contracts to buy US dollars. As of December 31, 2017, the economic impact of the transactions carried out in that fiscal year resulted in a loss of $ 21.1 million, which is recorded in the Other financial expense account of the Statement of Comprehensive Income. Note 4.10 | Cash and cash equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less from their acquisition date, with significant low risk of change in value. i. Cash and banks in local currency: at nominal value. ii. Cash and banks in foreign currency: at the exchange rates in effect at the end of the year. iii. Money market funds, which have been valued at the prevailing market price at the end of the year. Those that do not qualify as cash equivalents are disclosed in the Financial assets at fair value through profit or loss account. Note 4.11 | Equity Changes in this account have been accounted for in accordance with the corresponding legal or statutory regulations and the decisions adopted by the shareholders’ meetings. a. Share capital Share capital represents issued capital, which is comprised of the contributions committed and/or made by the shareholders, represented by shares, including outstanding shares at nominal value, restated to reflect the effects of inflation as indicated in Note 3. b. Treasury stock The Treasury stock account represents the nominal value of the Company’s own shares acquired by the Company, restated to reflect the effects of inflation as indicated in Note 3. c. Other comprehensive income Represents recognition, at the end of the year, of the actuarial losses associated with the Company’s employee benefit plans, restated to reflect the effects of inflation as indicated in Note 3. d. Retained earnings Retained earnings are comprised of profits or accumulated losses with no specific appropriation. When positive, they may be distributed, if so decided by the Shareholders’ Meeting, to the extent that they are not subject to legal restrictions. Retained earnings are comprised of previous year results that have not been distributed, amounts transferred from other comprehensive income and prior year adjustments due to the application of accounting standards, restated to reflect the effects of inflation as indicated in Note 3. Note 4.12 | Trade and other payables a. Trade payables Trade payables are payment obligations with suppliers for the purchase of goods and services in the ordinary course of business. Trade payables are classified as current liabilities if payments fall due within one year or in a shorter period of time. Otherwise, they are classified as non-current liabilities. Trade payables are initially recognized at fair value and subsequently measured at amortized cost using the effective interest rate method. b. Customer deposits Customer deposits are initially recognized at the amount received and subsequently measured at amortized cost using the effective interest rate method. In accordance with the Concession Agreement, the Company is allowed to receive customer deposits in the following cases: i. When the power supply is requested and the customer is unable to provide evidence of his legal ownership of the premises; ii. When service has been suspended more than once in one-year period; iii. When the power supply is reconnected and the Company is able to verify the illegal use of the service (fraud). iv. When the customer is undergoing liquidated bankruptcy or reorganization proceedings. The Company has decided not to request customer deposits from residential tariff customers. Customer deposits may be either paid in cash or through the customer’s bill and accrue monthly interest at a specific rate of BNA for each customer category. When the conditions for which the Company is allowed to receive customer deposits no longer exist, the customer’s account is credited for the principal amount plus any interest accrued thereon, after deducting, if appropriate, any amounts receivable which the Company has with the customer. c. Customer contributions Refundable d. Other payables The rest of the financial liabilities recorded in Other Payables, including the loans for consumption (mutuums) with CAMMESA, the Payment agreement with the ENRE and the advances for the execution of works, are initially recognized at fair value and subsequently measured at amortized cost. The recorded liabilities for the debts with the FOTAE, the penalties accrued, whether imposed or not yet issued by the ENRE (Note 2.e)), and other provisions are the best estimate of the settlement value of the present obligation in the framework of IAS 37 provisions at the date of these financial statements. The balances of ENRE Penalties and Discounts are adjusted in accordance with the regulatory framework applicable thereto and are based on the Company’s estimate of the outcome of the renegotiation process described in Note 2, whereas the balances of the loans for consumption (mutuums) are adjusted by a rate equivalent to the monthly average yield obtained by CAMMESA from its short-term investments. Note 4.13 | Borrowings Borrowings are initially recognized at fair value, net of direct costs incurred in the transaction. Subsequently, they are measured at amortized cost; any difference between the funds obtained (net of direct costs incurred in the transaction) and the amount to be paid at maturity is recognized in profit or loss during the term of the borrowings using the effective interest rate method. Note 4.14 | Deferred revenue Non-refundable customer contributions : The Company receives assets or facilities (or the cash necessary to acquire or built them) from certain customers for services to be provided, based on individual agreements. In accordance with IFRS 15 “Transfers of Assets from Customers”, the assets received are recognized by the Company as Property, plant and equipment with a contra-account in deferred revenue, the accrual of which depends on the nature of the identifiable services, in accordance with the following: · customer connection to the network: revenue is accrued until such connection is completed; · continuous provision of the electric power supply service: throughout the shorter of the useful life of the asset and the term for the provision of the service. Note 4.15 | Employee benefits · Benefit plans The Company operates various benefit plans. Usually, benefit plans establish the amount of the benefit the employee will receive at the time of retirement, generally based on one or more factors such as age, years of service and salary. The liability recognized in the Statement of Financial Position in respect of benefit plans is the present value of the benefit plan obligation at the closing date of the year, together with the adjustments for past service costs and actuarial gains or losses. The benefit plan obligation is calculated annually by independent actuaries in accordance with the projected unit credit method. The present value of the benefit plan obligation is determined by discounting the estimated future cash outflows using actuarial assumptions about demographic and financial variables that affect the determination of the amount of such benefits. The benefit plans are not funded. The group’s accounting policy for benefit plans is as follow: a. Past service costs are recognized immediately in profit or loss, unless the changes to the benefit plan are conditional on the employees’ remaining in service for a specified period of time (the vesting period). In this case, past service costs are amortized on a straight-line basis over the vesting period. b. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in other comprehensive income in the period in which they arise. · The Company’s Share-based Compensation Plan The Company has share-based compensation plans under which it receives services from some employees in exchange for the Company’s shares. The fair value of the employee services received is recognized as an operating expense in the “Salaries and social security taxes” line item. The total amount of the referred to expense is determined by reference to the fair value of the shares granted. When the employees provide the services before the shares are granted, the fair value at the grant date is estimated in order to recognize the respective result. Note 4.16 | Income tax The income tax is recognized in profit or loss, other comprehensive income or in equity depending on the items from which it originates. The deferred tax is recognized, in accordance with the liability method, on the temporary differences arising between the tax base of assets and liabilities and their carrying amounts in the statement of financial position. However, no deferred tax liability is recognized if such difference arises from the initial recognition of goodwill, or from the initial recognition of an asset or liability other than in a business combination, which at the time of the transaction affected neither the accounting nor the taxable profit. The deferred tax is determined using the tax rate that is in effect at the date of the financial statements and is expected to apply when the deferred tax assets are realized or the deferred tax liabilities are settled. Deferred tax assets and liabilities are offset if the Company has a legally enforceable right to offset recognized amounts and when deferred tax assets and liabilities relate to income tax levied by the same tax authority on the same taxable entity. Deferred tax assets and liabilities are stated at their undiscounted value. Deferred tax assets are recognized only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilized. Note 4.17 | Leases The leases in which a significant portion of the risks and rewards of ownership is retained by the assignor are classified as operating. At present, the Company only has leases contracts that are classified as operating. a. Lessee The payments with respect to operating leases are recognized as operating expenses in the Statement of Comprehensive Income on a straight-line basis throughout the term of the assignment. b. Lessor The leases in which the Company does not transfer substantially all the risks and rewards of the ownership of the asset are classified as operating leases. The collections with respect to operating leases are recognized as income in the Statement of Comprehensive Income on a straight-line basis throughout the term of the assignment. Note 4.18 | Provisions and contingencies Provisions have been recognized in those cases in which the Company is faced with a present obligation, whether legal or constructive, that has arisen as a result of a past event, whose settlement is expected to result in an outflow of resources, and the amount thereof can be estimated reliably. The amount recognized as provisions is the best estimate of the expenditure required to settle the present obligation, at the end of the reporting year, taking into account the corresponding risks and uncertainties. When a provision is measured using the estimated cash flow to settle the present obligation, the carrying amount represents the present value of such cash flow. This present value is obtained by applying a pre-tax discount rate that reflects market conditions, the time value of money and the specific risks of the obligation. The provisions included in liabilities have been recorded to face contingent situations that could result in future payment obligations. To estimate the amount of provisions and the likelihood of an outflow of resources, the opinion of the Company’s legal advisors has been taken into account. Note 4.19 | Balances with related |
5. Financial risk management
5. Financial risk management | 12 Months Ended |
Dec. 31, 2018 | |
Financial Risk Management | |
Financial risk management | Note 5.1 | Financial risk factors The Company’s activities and the market in which it operates expose the Company to a series of financial risks: market risk (including currency risk, cash flows interest rate risk, fair value interest rate risk and price risk), credit risk and liquidity risk. The management of the financial risk is part of the Company’s overall policies, which focus on the unpredictability of the financial markets and seek to minimize potential adverse effects on its financial performance. Financial risks are the risks derived from the financial instruments to which the Company is exposed during or at the end of each year. The Company uses derivative instruments to hedge exposure to certain risks whenever it deems appropriate in accordance with its internal risk management policy. Risk management is controlled by the Finance and Control Department, which identifies, evaluates and hedges financial risks. Risk management policies and systems are periodically reviewed so that they can reflect the changes in the market’s conditions and the Company’s activities. This section includes a description of the main risks and uncertainties that could have a material adverse effect on the Company’s strategy, performance, results of operations and financial position. a. Market risks i. Currency risk Currency risk is the risk of fluctuation in the fair value or future cash flows of a financial instrument due to changes in foreign currency exchange rates. The Company’s exposure to currency risk relates to the collection of its revenue in pesos, in conformity with regulated electricity rates that are not indexed in relation to the US dollar, whereas a significant portion of its existing financial liabilities is denominated in US dollars. Therefore, the Company is exposed to the risk of a loss resulting from a devaluation of the peso. The Company may hedge its currency risk trying to enter into currency futures. At the date of issuance of these financial statements, the Company has not hedged its exposure to the US dollar. If the Company continued to be unable to effectively hedge all or a significant part of its exposure to currency risk, any devaluation of the peso could significantly increase its debt service burden, which, in turn, could have a substantial adverse effect on its financial and cash position (including its ability to repay its Corporate Notes) and the results of its operations. The exchange rates used as of December 31, 2018 and 2017 are $ 37.70 and $ 18.65 per U.S.$., respectively. Currency Amount in foreign currency Exchange rate (1) Total Total ASSETS NON-CURRENT ASSETS Other receivables USD 20,416 37.500 765,600 - TOTAL NON-CURRENT ASSETS 20,416 765,600 - CURRENT ASSETS Other receivables USD 3,989 37.500 149,588 - Financial assets at fair value through profit or loss USD 87,621 37.500 3,285,788 1,829,881 Cash and cash equivalents USD 250 37.500 9,375 6,519 EUR - 42.840 - 394 TOTAL CURRENT ASSETS 91,860 3,444,751 1,836,794 TOTAL ASSETS 112,276 4,210,351 1,836,794 LIABILITIES NON-CURRENT LIABILITIES Borrowings USD 190,782 37.700 7,192,467 6,189,294 TOTAL NON-CURRENT LIABILITIES 190,782 7,192,467 6,189,294 CURRENT LIABILITIES Trade payables USD 17,519 37.700 660,459 386,504 EUR 93 43.163 4,014 9,248 CHF 5 38.312 - 15,454 NOK 68 4.346 296 230 Borrowings USD 28,580 37.700 1,077,453 105,139 TOTAL CURRENT LIABILITIES 46,265 1,742,222 516,575 TOTAL LIABILITIES 237,047 8,934,689 6,705,869 (1) The exchange rates used are the BNA exchange rates in effect as of December 31, 2018 for US Dollars (U.S.$.), Euros (EUR), Swiss Francs (CHF) and Norwegian Krones (NOK). The table below shows the Company’s exposure to currency risk resulting from the financial assets and liabilities denominated in a currency other than the Company’s functional currency. 12.31.18 12.31.17 Net position Assets/(Liabilities) US dollar (4,720,028) (4,844,537) Euro (4,014) (8,854) Norwegian krone (296) (230) Swiss franc - (15,454) Total (4,724,338) (4,869,075) The Company estimates that a 10% devaluation of the Argentine peso with respect to each foreign currency, with all the other variables remaining constant, would give rise to the following decrease in the profit for the year: 12.31.18 12.31.17 Net position Assets/(Liabilities) US dollar (472,003) (484,454) Euro (401) (886) Norwegian krone (30) (24) Swiss franc - (1,546) Decrease in the results of operations for the year (472,434) (486,910) i. Price risk The Company’s investments in listed equity instruments are susceptible to market price risk arising from the uncertainties concerning the future value of these instruments. Due to the low significance of the investments in equity instruments in relation to the net asset/liability position, the Company is not significantly exposed to the referred to instruments price risk. Furthermore, the Company is not exposed to commodity price risk. ii. Interest rate risk Interest rate risk is the risk of fluctuation in the fair value or cash flows of an instrument due to changes in market interest rates. The Company’s exposure to interest rate risk is related mainly to the long-term debt obligations. Indebtedness at floating rates exposes the Company to interest rate risk on its cash flows. Indebtedness at fixed rates exposes the Company to interest rate risk on the fair value of its liabilities. As of December 31, 2018 and 2017 -except for a loan applied for by the Company and granted by ICBC Bank as from October 2017 for a three-year term at a six-month Libor rate plus an initial 2.75% spread, which will be adjusted semi-annually by a quarter-point-, 100% of the loans were obtained at fixed interest rates. The Company’s policy is to keep the largest percentage of its indebtedness in instruments that accrue interest at fixed rates. The Company analyzes its exposure to interest rate risk in a dynamic manner. Several scenarios are simulated taking into account the positions with respect to refinancing, renewal of current positions, alternative financing and hedging. Based on these scenarios, the Company calculates the impact on profit or loss of a specific change in interest rates. In each simulation, the same interest rate fluctuation is used for all the currencies. Scenarios are only simulated for liabilities that represent the most relevant interest-bearing positions. The table below shows the breakdown of the Company’s loans according to interest rate and the currency in which they are denominated: 12.31.18 12.31.17 Fixed rate: US dollar 6,359,986 4,904,361 Subtotal loans at fixed rates 6,359,986 4,904,361 Floating rate: US dollar 1,909,934 1,390,072 Subtotal loans at floating rates 1,909,934 1,390,072 Total loans 8,269,920 6,294,433 Based on the simulations performed, a 1% increase in floating interest rates, with all the other variables remaining constant, would give rise to the following decrease in the profit for the year: 12.31.18 12.31.17 Floating rate: US dollar (4,241) (3,098) Decrease in the results of operations for the year (4,241) (3,098) Based on the simulations performed, a 1% decrease in floating interest rates, with all the other variables remaining constant, would give rise to the following increase in the profit for the year: 12.31.18 12.31.17 Floating rate: US dollar 4,241 3,098 Increase in the results of operations for the year 4,241 3,098 a. Credit risk Credit risk is the risk of a financial loss as a consequence of a counterparty’s failure to comply with the obligations assumed in a financial instrument or commercial contract. The Company’s exposure to credit risk results from its operating (particularly from its commercial receivables) and financial activities, including deposits in financial entities and other instruments. Credit risk arises from cash and cash equivalents, deposits with banks and financial entities and derivative financial instruments, as well as from credit exposure to customers, included in outstanding balances of accounts receivable and committed transactions. With regard to banks and financial entities, only those with high credit quality are accepted. With regard to debtors, if no independent credit risk ratings are available, the Finance Department evaluates the debtors’ credit quality, past experience and other factors. Individual credit limits are established in accordance with the limits set by the Company’s CEO, on the basis of the internal or external ratings approved by the Finance and Control Department. The Company has different procedures in place to reduce energy losses and allow for the collection of the balances owed by its customers. The Commercial Department periodically monitors compliance with the above-mentioned procedures. One of the significant items of delinquent balances is that related to the receivable amounts with Municipalities, in respect of which the Company either applies different offsetting mechanisms against municipal taxes it collects in the name and to the order of those government bodies, or implements debt refinancing plans, with the aim of reducing them. At each year-end, the Company analyzes whether the recording of an impairment is necessary. As of December 31, 2018 and 2017, delinquent trade receivables totaled approximately $ 2 billion and $ 1.5 billion, respectively. As of December 31, 2018 and 2017, the financial statements included allowances for $ 901.3 million and $ 677.5 million, respectively. The inability to collect the accounts receivable in the future could have an adverse effect on the Company’s results of operations and its financial position, which, in turn, could have an adverse effect on the Company’s ability to repay loans, including payment of the Corporate Notes. The balances of the bills for electricity consumption of small-demand (T1), medium-demand (T2) and large-demand (T3) customers that remain unpaid 7 working days after the bills’ first due dates are considered delinquent trade receivables. Additionally, the amounts related to the Framework Agreement are not considered within delinquent balances. The Company’s maximum exposure to credit risk is based on the book value of each financial asset in the financial statements, after deducting the corresponding allowances. b. Liquidity risk The Company monitors the risk of a deficit in cash flows on a periodical basis. The Finance Department supervises the updated projections of the Company’s liquidity requirements in order to ensure that there is enough cash to meet its operational needs, permanently maintaining sufficient margin for undrawn credit lines so that the Company does not fail to comply with the indebtedness limits or covenants, if applicable, of any line of credit. Such projections give consideration to the Company’s debt financing plans, compliance with covenants, with internal balance sheet financial ratios objectives and, if applicable, with external regulations and legal requirements, such as, restrictions on the use of foreign currency. Cash surpluses held by the Company and the balances in excess of the amounts required to manage working capital are invested in Money Market Funds and/or time deposits that accrue interest, currency deposits and securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient margin as determined in the aforementioned projections. As of December 31, 2018 and 2017, the Company’s current financial assets at fair value amount to $ 3.4 billion and $ 4.3 billion, respectively, which are expected to generate immediate cash inflows to manage the liquidity risk. The table below includes an analysis of the Company’s non-derivative financial liabilities, which have been classified into maturity groupings based on the remaining period between the closing date of the fiscal year and the contractual maturity date. Derivative financial liabilities are included in the analysis if their contractual maturities are essential for an understanding of the timing of the cash flows. The amounts disclosed in the table are the contractual undiscounted cash flows. No deadline Less than 3 months From 3 months to 1 year From 1 to 2 years From 2 to 5 years More than 5 years Total As of December 31, 2018 Trade and other payables 12,407,373 9,082,933 2,760,794 82,491 99,953 - 24,433,544 Borrowings - - 684,469 684,469 7,676,569 - 9,045,507 Total 12,407,373 9,082,933 3,445,263 766,960 7,776,522 - 33,479,051 As of December 31, 2017 Trade and other payables 8,950,249 5,877,338 8,195,465 135,840 179,584 - 23,338,476 Borrowings - - 499,945 499,945 6,107,012 - 7,106,902 Total 8,950,249 5,877,338 8,695,410 635,785 6,286,596 - 30,445,378 Note 5.2 | Concentration risk factors a. Related to customers The Company’s receivables derive primarily from the sale of electricity. No single customer accounted for more than 10% of sales for the years ended December 31, 2018 and 2017. The collectibility of trade receivables balances related to the Framework Agreement, which amount to $ 10.4 million and $ 231 million as of December 31, 2018 and 2017, respectively, as disclosed in Note 2.d), is subject to compliance with the terms of such agreement. b. Related to employees who are union members As of December 31, 2018, the Company’s employees are members of unions, Sindicato de Luz y Fuerza de Capital Federal (Electric Light and Power Labor Union Federal Capital) and Asociación del Personal Superior de Empresas de Energía (Association of Supervisory Personnel of Energy Companies). These employees labor cost depends on negotiations between the Company and the unions; a sensitive change in employment conditions generates a significant impact on the Company’s labor costs. In November 2018, the Company reached an agreement with the Sindicato de Luz y Fuerza on a total salary increase to be implemented in 5 tranches, beginning in November 2018 and ending in October 2019. Each increase will be calculated on the basis of the previous month salary and paid to the personnel represented by the union and providing services at the time of each payment. The agreed-upon increases are as follow: · 10%, applicable as from December 2018. · 8%, applicable as from February 2019. · 5%, applicable as from April 2019. · 5%, applicable as from July 2019. · 5%, applicable as from October 2019. Additionally, it was agreed that the values of the Attendance Bonus, payable to those who have maintained perfect attendance for a full quarter, or have a maximum of 2 absences over the period, would be adjusted as from November 2018. At present, the Company continues negotiating with the Asociación del Personal Superior de Empresas de Energía (APSEE), but no agreement has been reached as of to date. Note 5.3 | Capital risk management The Company’s objectives when managing capital are to safeguard its ability to continue as a going concern and to maintain an optimal capital structure to reduce the cost of capital. Consistent with others in the industry, the Company monitors its capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total liabilities (current and non-current) less cash and cash equivalents. Total capital is calculated as equity attributable to the owners as shown in the statement of financial position plus net debt. As of December 31, 2018 and 2017, gearing ratios were as follow: 12.31.18 12.31.17 Total liabilities 46,023,206 43,088,208 Less: cash and cash equivalents (3,409,158) (4,400,357) Net debt 42,614,048 38,687,851 Total Equity 30,968,972 27,793,719 Total capital attributable to owners 73,583,020 66,481,570 Gearing ratio 57.91% 58.19% Note 5.4 | Regulatory risk factors Pursuant to caption C of Section 37 of the Concession Agreement, the Grantor of the Concession may, without prejudice to other rights to which he is entitled thereunder, foreclose on the collateral granted by the Company when the cumulative value of the penalties imposed to the Company in the previous one-year period exceeds 20% of its annual billing, net of taxes and rates. The Company’s Management evaluates the development of this indicator on an annual basis. At the date of issuance of these financial statements, there are no events of non-compliance by the Company that could lead to that situation. Note 5.5 | Fair value estimate The Company classifies the measurements of financial instruments at fair value using a fair value hierarchy that reflects the relevance of the variables used to carry out such measurements. The fair value hierarchy has the following levels: Level 1 Level 2 Level 3 The table below shows the Company’s financial assets and liabilities measured at fair value as of December 31, 2018 and 2017: LEVEL 1 LEVEL 2 LEVEL 3 TOTAL At December 31, 2018 Assets Financial assets at fair value through profit or loss: Government bonds 3,285,799 - - 3,285,799 Money market funds 95,751 - - 95,751 Total assets 3,381,550 - - 3,381,550 Liabilities Derivative financial instruments - 1,035 - 1,035 Total liabilities - 1,035 - 1,035 At December 31, 2017 Assets Financial assets at fair value through profit or loss: Government bonds 1,829,888 - - 1,829,888 Money market funds 2,448,120 - - 2,448,120 Total assets 4,278,008 - - 4,278,008 Liabilities Derivative financial instruments - 291 - 291 Total liabilities - 291 - 291 The value of the financial instruments negotiated in active markets is based on the market quoted prices on the date of the statement of financial position. A market is considered active when the quoted prices are regularly available through a stock exchange, broker, sector-specific institution or regulatory body, and those prices reflect regular and current market transactions between parties that act in conditions of mutual independence. The market quotation price used for the financial assets held by the Company is the current offer price. These instruments are included in level 1. The fair value of financial instruments that are not negotiated in active markets is determined using valuation techniques. These valuation techniques maximize the use of market observable information, when available, and rely as little as possible on specific estimates of the Company. If all significant variables to establish the fair value of a financial instrument can be observed, the instrument is included in level 2. These derivative financial instruments arise from the variation between the market prices at year-end or sale thereof and the time of negotiation. The market value used is obtained from the “Transactions with securities” report issued by Banco Mariva. When one or more relevant variables used to determine the fair value cannot be observed in the market, the financial instrument is included in level 3. There are no financial instruments that are to be included in level 3. |
6. Critical accounting estimate
6. Critical accounting estimates and judgments | 12 Months Ended |
Dec. 31, 2018 | |
Critical Accounting Estimates And Judgments | |
Critical accounting estimates and judgments | The preparation of the financial statements requires the Company’s Management to make estimates and assessments concerning the future, exercise critical judgments and make assumptions that affect the application of the accounting policies and the reported amounts of assets and liabilities and revenues and expenses. These estimates and judgments are permanently evaluated and are based upon past experience and other factors that are reasonable under the existing circumstances. Future actual results may differ from the estimates and assessments made at the date of preparation of these financial statements. The estimates that have a significant risk of causing adjustments to the amounts of assets and liabilities during the next fiscal year are detailed below: a. Impairment of financial assets The allowance for the impairment of accounts receivable is assessed based on the delinquent balance, which comprises all such debt arising from the bills for electricity consumption of small-demand (T1), medium-demand (T2), and large-demand (T3) customers that remain unpaid 7 working days after their first due dates. The Company’s Management records an allowance applying to the delinquent balances of each customer category an uncollectibility rate that is determined according to each customer category based on the historical comparison of collections made. Additionally, and faced with temporary and/or exceptional situations, the Company’s Management may redefine the amount of the allowance, specifying and supporting the criteria used in all the cases. As from January 1, 2018, the Company has applied the amended IFRS 9 with the allowed practical resources, without restating the comparative periods. The Company has performed a review of the financial assets it currently measures and classifies at fair value through profit or loss or at amortized cost and has concluded that they meet the conditions to maintain their classification; consequently, the initial adoption has not affected the classification and measurement of the Company’s financial assets. Furthermore, with regard to the new hedge accounting model, the Company has not elected to designate any hedge relationship at the date of the initial adoption of the amended IFRS 9 and, consequently, has generated no impact on the Company’s results of operations or its financial position. Finally, with regard to the change in the methodology for calculating the impairment of financial assets based on expected credit losses, the Company has applied the simplified approach of IFRS 9 for trade receivables and other receivables with similar risk characteristics. In order to measure the expected credit losses, receivables are grouped by customer segment, and on the basis of the shared credit risk characteristics and the number of days past the payment due date. The expected loss as of January 1, 2018 was determined based on the following coefficients calculated for the number of days past the payment due date: Number of days 0-30 30-60 60-90 90-120 120-150 +150 Loss expected percentage 8% 12% 19% 26% 59% 69% For such purpose, the adjustments determined as of December 31, 2017 are as follow: Amount of the provisions for impairment of the trade receivables (458,853) Adjustment of expected losses IFRS 9 (82,041) Amount of the provisions for impairment of the trade receivables (540,894) The adjustment determined as a result of the application of this new standard, net of its tax effect, amounts to $ 60.2 million, which is disclosed within the “Unappropriated Retained Earnings” line item. b. Revenue recognition Revenue is recognized on an accrual basis upon delivery to customers, which includes the estimated amount of unbilled distribution of electricity at the end of each year. The accounting policy for the recognition of estimated revenue is considered critical because it depends on the amount of electricity effectively delivered to customers, which is valued on the basis of applicable tariffs. Unbilled revenue is classified as current trade receivables. c. Impairment of long-lived assets Long-lived assets are tested for impairment at the lowest disaggregation level at which independent cash flows can be identified (cash generating units, or CGU). The Company analyzes the recoverability of its long-lived assets on a periodical basis or when events or changes in circumstances indicate that the recoverable amount of assets, which is measured as the higher of value in use and fair value less costs to sell at the end of the year, may be impaired. At the date of issuance of these financial statements there are no indicators of a potential impairment. d. Current and deferred income tax A degree of judgment is required to determine the income tax provision inasmuch as the Company’s Management has to evaluate, on an ongoing basis, the positions taken in tax returns in respect of situations in which the applicable tax regulation is subject to interpretation and, whenever necessary, make provisions based on the amount expected to be paid to the tax authorities. When the final tax outcome of these matters differs from the amounts initially recognized, such differences will impact on both the income tax and the deferred tax provisions in the fiscal year in which such determination is made. There are many transactions and calculations for which the ultimate tax determination is uncertain. The Company recognizes liabilities for eventual tax claims based on estimates of whether additional taxes will be due in the future. Deferred tax assets are reviewed at each reporting date and reduced in accordance with the probability that the sufficient taxable base will be available to allow for the total or partial recovery of these assets. Deferred tax assets and liabilities are not discounted. The realization of deferred tax assets depends on the generation of future taxable income in the periods in which these temporary differences become deductible. To make this assessment, the Company’s Management takes into consideration the scheduled reversal of deferred tax liabilities, the projected future taxable income, the prevailing rates to be applied in each period, and tax planning strategies. e. Benefit plans The liability recognized by the Company is the best estimate of the present value of the cash flows representing the benefit plan obligation at the closing date of the year together with the adjustments for past service costs and actuarial losses. Cash flows are discounted using a rate that contemplates actuarial ns about demographic and financial conditions that affect the determination of benefit plans. Such estimate is based on actuarial calculations made by independent professionals in accordance with the projected unit credit method. f. ENRE penalties and discounts The Company considers its applicable accounting policy for the recognition of ENRE penalties and discounts critical because it depends on penalizable events that are valued on the basis of the Management´s best estimate of the expenditure required to settle the present obligation at the date of these financial statements. The balances of ENRE penalties and discounts are adjusted in accordance with the regulatory framework applicable thereto and have been estimated based on that which has been described in Note 2.e). g. Contingencies and provisions for lawsuits The Company is a party to several complaints, lawsuits and other legal proceedings, including customer claims, in which a third party is seeking payment for alleged damages, reimbursement for losses or compensation. The Company’s potential liability with respect to such claims, lawsuits and legal proceedings may not be accurately estimated. The Company’s Management, with the assistance of its legal advisors (attorneys), periodically analyzes the status of each significant matter and evaluates the Company’s potential financial exposure. If the loss deriving from a complaint or legal proceeding is considered probable and the amount can be reasonably estimated, a provision is recorded. Provisions for contingent losses represent a reasonable estimate of the losses that will be incurred, based on the information available to Management at the date of the financial statements preparation, taking into account the Company’s litigation and settlement strategies. These estimates are mainly made with the help of legal advisors. However, if the Management’s estimates proved wrong, the current provisions could be inadequate and result in a charge to profits that could have a significant effect on the statements of financial position, comprehensive income, changes in equity and cash flows. |
7. Interest in joint venture
7. Interest in joint venture | 12 Months Ended |
Dec. 31, 2018 | |
Interest In Joint Venture | |
Interest in joint venture | Percentage interest held Equity attributable to the owners in capital stock and votes 12.31.18 12.31.17 SACME 50.00% 8,844 10,693 |
8. Contingent liabilities
8. Contingent liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Contingent Liabilities | |
Contingent liabilities | The Company has contingent liabilities and is a party to lawsuits that arise from the ordinary course of business. Based on the opinion of its in-house and external legal advisors, the Company’s Management estimates that the outcome of the current contingencies and lawsuits will not result in amounts that either exceed those of the recorded provisions or could be significant with respect to the Company’s financial position or the results of its operations. Furthermore, it is worth mentioning that there exist contingent obligations and labor, civil and commercial complaints filed against the Company related to legal actions for individual non-significant amounts, which as of December 31, 2018 total $ 1.3 billion, for which a provision has been recorded. We detail below the nature of the significant judicial proceedings in relation to which, as of December 31, 2018, the Company believes, based on the opinion of its in-house and external legal advisors, there exist grounds for them not to be deemed probable: Note 8.1 | Civil and commercial proceedings – Consumer claims - By means of the action filed by Consumidores Financieros Asociación Civil para su Defensa, the following is claimed from the Company: Ø Reimbursement of the Value Added Tax (VAT) percentage paid on the illegally “widened” taxable basis due to the incorporation of the FNEE. Distribution companies, the defendants, had not paid this tax when CAMMESA invoiced them the electricity purchased for distribution purposes. Ø Reimbursement of part of the administrative surcharge on “second due date”, in those cases in which payment was made within the time period authorized for such second deadline (14 days) but without distinguishing the effective day of payment. Ø Application of the “borrowing rate” in case of customer delay in complying with payment obligation, in accordance with the provisions of Law No. 26,361. On April 22, 2010, the Company answered the complaint and filed a motion to dismiss for lack of standing (“ excepción de falta de legitimación edenor edenor By means of the action filed by Asociación de Defensa de derechos de clientes y consumidores (ADDUC) it is requested that the Company be ordered by the Court to reduce or mitigate the default or late payment interest rates charged to customers who pay their bills after the first due date, inasmuch as they violate section 31 of Law 24,240, ordering both the non application of pacts or accords that stipulate the interest rates that are being applied to the users of electricity –their unconstitutional nature– as well as the reimbursement of interest amounts illegally collected from the customers of the service from August 15, 2008 through the date on which the defendant complies with the order to reduce interest. It is also requested that the VAT and any other taxes charged on the portion of the surcharge illegally collected be reimbursed. On November 11, 2011, the Company answered the complaint and filed a motion to dismiss for both lack of standing to sue (“ excepción de falta de legitimación activa excepción de litispendencia excepción de litispendencia We detail below the nature of the significant judicial proceedings instituted by the Company as of December 31, 2018, in relation to which an inflow of economic benefits into the Company is deemed probable. Note 8.2 | Civil and Commercial Proceedings for the Determination of a Claim – Judicial Annulment ENRE Resolution 32/11 - The Company seeks to obtain the judicial annulment of the ENRE’s Resolution that provided the following: Ø That the Company be fined in the amount of $ 750 thousand due to its failure to comply with the obligations arising from Section 25, sub-sections a, f and g, of the Concession Agreement and Section 27 of Law No. 24,065. Ø That the Company be fined in the amount of $ 375 thousand due to its failure to comply with the obligations arising from Section 25 of the Concession Agreement and ENRE Resolution No. 905/99. Ø That the Company be ordered to pay customers as compensation for the power cuts suffered the following amounts: $ 180 to each small-demand residential customer (T1R) who suffered power cuts that lasted more than 12 continuous hours, $ 350 to those who suffered power cuts that lasted more than 24 continuous hours, and $ 450 to those who suffered power cuts that lasted more than 48 continuous hours. The resolution stated that such compensation did not include damages to customer facilities and/or appliances, which were to be dealt with in accordance with a specific procedure. On July 8, 2011, the Company requested that notice of the action be served upon the ENRE, which has effectively taken place. The proceedings are “awaiting resolution” since the date on which the ENRE answered the notice served. Furthermore, on October 28, 2011, the Company filed an appeal (“ Recurso de Queja por apelación denegada edenor Recurso Ordinario de Apelación Recurso Extraordinario Federal edenor Recurso de Queja por Rec. Extraordinario Denegado At the closing date of the year ended December 31, 2018, the Company made a provision for principal and interest accrued for an amount of $ 57.3 million within the Other non-current liabilities account. Note 8.3 | Civil and Commercial Proceedings for the Determination of a Claim – Regulatory Liability Claim against the Federal Government On June 28, 2013, the Company instituted these proceedings for the recognizance of a claim and the related leave to proceed in forma pauperis, both pending in the Federal Court of Original Jurisdiction in Contentious and Administrative Federal Matters No. 11 – Clerk’s Office No. 22, whose purpose is to sue for breach of contract due to the Federal Government’s failure to perform in accordance with the terms of the “Agreement on the Renegotiation of the Concession Agreement” (“ Acta Acuerdo de Renegociación del Contrato de Concesion On November 22, 2013, the Company amended the complaint so as to extend it and claim more damages as a consequence of the Federal Government’s omission to perform the obligations under the aforementioned “Adjustment Agreement”. On February 3, 2015, the Court hearing the case ordered that notice of the complaint be served to be answered within the time limit prescribed by law, which was answered by the Federal Government in due time and in proper manner. Subsequently, edenor Regarding the motion to litigate in forma pauperis that was filed on July 2, 2013, the discovery period has ended and the period for the parties to put forward their arguments on the merits of the evidence produced has begun. At the date of issuance of these financial statements, the procedural time-limits in this incidental motion, as those in the main proceedings, continue to be suspended. |
9. Property, plant and equipmen
9. Property, plant and equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, plant and equipment [abstract] | |
Property, plant and equipment | Lands and buildings Substations High, medium and low voltage lines Meters and Transformer chambers and platforms Tools, Furniture, vehicles, equipment, communications and advances to suppliers Construction in process Supplies and spare parts Total At 12.31.17 Cost 1,376,244 13,471,386 36,429,475 15,047,060 2,506,343 8,717,184 90,712 77,638,404 Accumulated depreciation (205,458) (3,571,659) (11,249,849) (4,638,799) (912,452) - - (20,578,217) Net amount 1,170,786 9,899,727 25,179,626 10,408,261 1,593,891 8,717,184 90,712 57,060,187 Additions 18,746 113,838 380,528 51,465 516,244 7,339,357 129,731 8,549,909 Disposals (36) (2,211) (94,785) (35,870) (440,852) - - (573,754) Transfers 89,250 187,522 1,595,057 710,388 89,483 (2,646,562) (25,138) - Depreciation for the year (73,129) (403,667) (1,171,411) (546,048) (367,244) - - (2,561,499) Net amount 12.31.18 1,205,617 9,795,209 25,889,015 10,588,196 1,391,522 13,409,979 195,305 62,474,843 At 12.31.18 Cost 1,449,399 13,769,111 38,060,451 15,749,070 2,656,570 13,409,979 195,305 85,289,885 Accumulated depreciation (243,782) (3,973,902) (12,171,436) (5,160,874) (1,265,048) - - (22,815,042) Net amount 1,205,617 9,795,209 25,889,015 10,588,196 1,391,522 13,409,979 195,305 62,474,843 · During the year ended December 31, 2018, the Company capitalized as direct own costs $ 1 billion. Lands and buildings Substations High, medium and low voltage lines Meters and Transformer chambers and platforms Tools, Furniture, vehicles, equipment, communications and advances to suppliers Construction in process Supplies and spare parts Total At 12.31.16 Cost 1,276,109 12,466,805 33,712,884 13,924,981 2,398,833 5,839,187 56,036 69,674,835 Accumulated depreciation (178,241) (3,214,869) (10,386,483) (4,157,929) (842,545) - - (18,780,067) Net amount 1,097,868 9,251,936 23,326,401 9,767,052 1,556,288 5,839,187 56,036 50,894,768 Additions 122,804 680,868 1,456,818 467,268 566,753 5,103,253 85,034 8,482,798 Disposals (765) (7) (35,030) (9,618) (4,404) - - (49,824) Transfers 50,983 323,723 1,357,461 664,134 (240,153) (2,225,256) (50,358) (119,466) Depreciation for the year (100,104) (356,793) (926,024) (480,575) (284,593) - - (2,148,089) Net amount 12.31.17 1,170,786 9,899,727 25,179,626 10,408,261 1,593,891 8,717,184 90,712 57,060,187 At 12.31.17 Cost 1,376,244 13,471,386 36,429,475 15,047,060 2,506,343 8,717,184 90,712 77,638,404 Accumulated depreciation (205,458) (3,571,659) (11,249,849) (4,638,799) (912,452) - - (20,578,217) Net amount 1,170,786 9,899,727 25,179,626 10,408,261 1,593,891 8,717,184 90,712 57,060,187 · During the year ended December 31, 2017, the Company capitalized as direct own costs $ 869.7 million. |
10. Financial instruments
10. Financial instruments | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments | |
Financial instruments | Note 10.1 | Financial instruments by category Financial assets at amortized cost Financial assets at fair value through profit or loss Non-financial assets Total As of December 31, 2018 Assets Trade receivables 7,587,906 - - 7,587,906 Other receivables 954,407 - 88,451 1,042,858 Cash and cash equivalents Cash and Banks 27,608 - - 27,608 Financial assets at fair value through profit or loss: Government bonds - 3,285,799 - 3,285,799 Derivative financial instruments - - - - Money market funds - 95,751 - 95,751 Financial assets at amortized cost: Time deposits 1,208,770 - - 1,208,770 Total 9,778,691 3,381,550 88,451 13,248,692 As of December 31, 2017 Assets Trade receivables 8,385,237 - - 8,385,237 Other receivables 249,780 88,667 20,448 358,895 Cash and cash equivalents - - Cash and Banks 120,053 - - 120,053 Checks to be deposited 2,296 - - 2,296 Money market funds Financial assets at fair value through profit or loss: Government bonds - 1,829,888 - 1,829,888 Derivative financial instruments - 2,448,120 - 2,448,120 Financial assets at fair value Government bonds 16,978 - - 16,978 Total 8,774,344 4,366,675 20,448 13,161,467 Financial liabilities at amortized cost Financial liabilities at fair value through profit or loss Non-financial liabilities Total As of December 31, 2018 Liabilities Trade payables 14,895,194 - - 14,895,194 Other payables 317,439 - 9,228,745 9,546,184 Borrowings 8,269,920 - - 8,269,920 Total 23,482,553 - 9,228,745 32,711,298 As of December 31, 2017 Liabilities Trade payables 13,933,226 - - 13,933,226 Other payables 490,188 - 8,966,695 9,456,883 Borrowings 6,294,433 - - 6,294,433 Total 20,717,847 - 8,966,695 29,684,542 Financial instruments categories have been determined based on IFRS 9. The income, expenses, gains and losses resulting from each category of financial instruments are as follow: Financial assets at amortized cost Financial assets at fair value through profit or loss Total As of December 31, 2018 Interest income 671,783 - 671,783 Exchange differences 2,886,396 - 2,886,396 Bank fees and expenses (8,509) - (8,509) Changes in fair value of financial assets - 746,532 746,532 Adjustment to present value (327) - (327) Total 3,529,343 746,532 4,275,875 As of December 31, 2017 Interest income 453,804 - 453,804 Exchange differences 229,100 - 229,100 Bank fees and expenses (2,883) - (2,883) Changes in fair value of financial assets - 474,896 474,896 Adjustment to present value (431) - (431) Total 679,590 474,896 1,154,486 As of December 31, 2016 Interest income 362,558 - 362,558 Exchange differences 178,191 5,830 184,021 Bank fees and expenses (5,928) - (5,928) Changes in fair value of financial assets - 781,486 781,486 Adjustment to present value (485) 5,799 5,314 Total 534,336 793,115 1,327,451 Financial liabilities at amortized cost Financial liabilities at fair value through profit or loss Total As of December 31, 2018 Interest expense (4,968,210) - (4,968,210) Other financial results (86,098) - (86,098) Exchange differences (5,496,362) - (5,496,362) Total (10,550,670) - (10,550,670) As of December 31, 2017 Interest expense (2,567,373) - (2,567,373) Other financial results (78,877) - (78,877) Exchange differences (793,157) - (793,157) Total (3,439,407) - (3,439,407) As of December 31, 2016 Interest expense (2,656,550) - (2,656,550) Other financial results (67,780) - (67,780) Bank fees and expenses 77 - 77 Exchange differences (953,730) - (953,730) Total (3,677,983) - (3,677,983) Note 10.2 | Credit quality of financial assets The credit quality of financial assets that are neither past due nor impaired may be assessed based on external credit ratings or historical information: 12.31.18 12.31.17 Customers with no external credit rating: Group 1 (i) 6,438,500 7,487,484 Group 2 (ii) 480,237 339,740 Group 3 (iii) 669,169 558,013 Total trade receivables 7,587,906 8,385,237 (i) Relates to customers with debt to become due (ii) Relates to customers with past due debt from 0 to 3 months. (iii) Relates to customers with past due debt from 3 to 12 months. At the Statement of Financial Position date, the maximum exposure to credit risk is the carrying amount of these financial assets. |
11. Other receivables
11. Other receivables | 12 Months Ended |
Dec. 31, 2018 | |
Other Receivables | |
Other receivables | Note 12.31.18 12.31.17 Non-current: - - Financial credit 30,484 54,661 Related parties 35.d 4,662 8,015 Advances to suppliers 37 765,595 - Total Non-current 800,741 62,676 Current: Prepaid expenses 5,312 7,362 Advances to suppliers 81,440 9,791 Advances to personnel 1,700 3,293 Security deposits 16,695 15,249 Financial credit 58,425 17,159 Receivables from electric activities 98,390 169,157 Related parties 35.d 1,946 1,614 Guarantee deposits on derivative financial - 88,667 Judicial deposits 30,482 23,795 Credit with SBS Bank Company 25,000 - Other 24 2 Allowance for the impairment of other receivables (77,297) (39,870) Total Current 242,117 296,219 The carrying amount of the Company’s other financial receivables approximates their fair value. The other non-current receivables are measured at amortized cost, which does not differ significantly from their fair value. The roll forward of the allowance for the impairment of other receivables is as follows: 12.31.18 12.31.17 12.31.16 Balance at beginning of year 39,870 63,940 32,712 Increase 61,467 - 45,032 Result from exposure to inflation (24,040) (12,704) (13,804) Recovery - (11,366) - Balance at end of the period 77,297 39,870 63,940 The aging analysis of these other receivables is as follows: 12.31.18 12.31.17 Without expiry date 48,358 39,526 Past due 34,854 129,288 Up to 3 months 130,564 110,759 From 3 to 6 months 20,415 8,418 From 6 to 9 months 4,881 4,198 From 9 to 12 months 3,045 4,030 More than 12 months 800,741 62,676 Total other receivables 1,042,858 358,895 At the Statement of Financial Position date, the maximum exposure to credit risk is the carrying amount of each class of other receivables. The carrying amount of the Company’s other receivables is denominated in Argentine pesos. |
12. Trade receivables
12. Trade receivables | 12 Months Ended |
Dec. 31, 2018 | |
Trade Receivables | |
Trade receivables | 12.31.18 12.31.17 Current: Sales of electricity - Billed 4,622,701 4,359,990 Sales of electricity – Unbilled 3,735,956 4,404,135 Framework Agreement 10,377 230,953 Fee payable for the expansion of the transportation and others 22,969 33,952 Receivables in litigation 97,158 33,736 Allowance for the impairment of trade receivables (901,255) (677,529) Total Current 7,587,906 8,385,237 The carrying amount of the Company’s trade receivables approximates their fair value. The roll forward of the allowance for the impairment of trade receivables is as follows: 12.31.18 12.31.17 12.31.16 Balance at beginning of year 677,529 383,439 146,238 Change of accounting standard (Note 6) - Adjustment by model of expected losses IFRS 9 82,041 - - Balance at beginning of year restated 759,570 383,439 146,238 Increase 916,036 391,615 388,339 Decrease (307,137) (64,348) (56,062) Result from exposure to inflation (467,214) (33,177) (95,076) Balance at end of the period 901,255 677,529 383,439 The aging analysis of these trade receivables is as follows: 12.31.18 12.31.17 Not due 10,377 230,953 Past due 1,149,406 897,752 Up to 3 months 6,428,123 7,256,532 Total other receivables 7,587,906 8,385,237 At the Statement of Financial Position date, the maximum exposure to credit risk is the carrying amount of each class of trade receivables. The carrying amount of the Company’s trade receivables is denominated in Argentine pesos. Sensitivity analysis of the allowance for impairment of trade receivables: - 5% increase in the uncollectibility rate estimate 12.31.18 Contingencies 946,318 change 45,063 - 5% decrease in the uncollectibility rate estimate 12.31.18 Contingencies 856,192 change (45,063) |
13. Financial assets at fair va
13. Financial assets at fair value through profit or loss | 12 Months Ended |
Dec. 31, 2018 | |
Financial assets at fair value through profit or loss [abstract] | |
Financial assets at fair value through profit or loss | 12.31.18 12.31.17 Current Government bonds 3,285,799 1,829,888 Money market funds 95,751 2,448,120 Total current 3,381,550 4,278,008 |
14. Financial assets at amortiz
14. Financial assets at amortized cost | 12 Months Ended |
Dec. 31, 2018 | |
Financial Assets At Amortized Cost | |
Financial assets at amortized cost | 12.31.18 12.31.17 Non-current Current Government bonds - 16,978 1,208,770 - Total Current 1,208,770 16,978 |
15. Inventories
15. Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventories Abstract | |
Inventories | 12.31.18 12.31.17 Current Supplies and spare-parts 1,252,292 589,339 Advance to suppliers 7,507 60,241 Total inventories 1,259,799 649,580 |
16. Cash and cash equivalents
16. Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2018 | |
Cash And Cash Equivalents | |
Cash and cash equivalents | 12.31.18 12.31.17 Cash and banks 27,608 122,349 Total cash and cash equivalents 27,608 122,349 |
17. Share capital and additiona
17. Share capital and additional paid-in capital | 12 Months Ended |
Dec. 31, 2018 | |
Share Capital And Additional Paid-in Capital | |
Share capital and additional paid-in capital | Share capital Additional paid-in capital Total Balance at December 31, 2016 18,197,583 183,604 18,381,187 Payment of Other reserve constitution - Share-bases compensation plan (Note 25) - 46,317 46,317 Balance at December 31, 2017 18,197,583 229,921 18,427,504 Payment of Other reserve constitution - Share-bases compensation plan (Note 25) - 10,700 10,700 Balance at December 31, 2018 18,197,583 240,621 18,438,204 As of December 31, 2018, the Company’s share capital amounts to 906,455,100 shares, divided into 462,292,111 common, book-entry Class A shares with a par value of one peso each and the right to one vote per share; 442,210,385 common, book-entry Class B shares with a par value of one peso each and the right to one vote per share; and 1,952,604 common, book-entry Class C shares with a par value of one peso each and the right to one vote per share. No changes have occurred in the Company’s Share Capital structure in the last three fiscal years. Listing of the Company’s shares The Company’s shares are listed on the Buenos Aires Stock Exchange and are part of the Merval Index. Furthermore, with the SEC’s prior approval, the Company’s ADSs, each representing 20 common shares of the Company, began to be traded on the NYSE as from April 24, 2007. The listing of ADSs on the NYSE is part of the Company’s strategic plan to increase both its liquidity and the volume of its shares. Acquisition of the Company’s own shares The Company’s Board of Directors, at its meeting of December 4, 2018, approved the acquisition of the Company’s own shares in accordance with both section 64 of Law 26,831 and the regulations of the National Securities Commission (CNV), under the following main terms and conditions: § Maximum amount to be invested § The treasury stock may not exceed, as a whole, the limit of 10% of share capital; § Price to be paid for the shares § The acquisitions will be made with realized and liquid profits; § The shares may be acquired for a term of 120 calendar days to commence on December 5, 2018. In this framework, on December 31, 2018, the Company acquired 15,590,860 Class B own shares of 1 peso nominal value, for $858.7 million in cash ($1.1 billion in constant currency), with the actual distribution of $ 858.7 million. As of December 31, 2018, the Company’s treasury shares amount to 23,385,028, and are disclosed as “treasury stock”. Moreover, a total of 1,618,332,269 shares were awarded to executive directors and managers as additional remuneration for special processes developed during fiscal year 2016. (Note 25). Furthermore, and subsequent to the closing date of these financial statements, the Company has acquired, in successive market transactions, 5,570,480 Class B own shares of 1 peso nominal value for a total of $ 289.6 million. |
18. Allocation of profits
18. Allocation of profits | 12 Months Ended |
Dec. 31, 2018 | |
Allocation Of Profits | |
Allocation of profits | Clause 7.4 of the Adjustment Agreement provided that during the Transition period the Company could not distribute dividends without the Regulatory Entity’s prior authorization. This transition period ended on January 31, 2017 with the implementation of the RTI, ENRE Resolution No. 63/17. Therefore, in the Company’s opinion there exists no regulatory restriction on the distribution of dividends. If the Company’s Level of Indebtedness were higher than 3, the negative covenants included in the Corporate Notes program, which establish, among other issues, the Company’s impossibility to make certain payments, such as dividends, would apply. |
19. Trade payables
19. Trade payables | 12 Months Ended |
Dec. 31, 2018 | |
Trade Payables | |
Trade payables | 12.31.18 12.31.17 Non-current Customer guarantees 140,968 148,349 Customer contributions 112,324 118,095 Funding contributions - substations 32,925 89,262 Total Non-current 286,217 355,706 Current Payables for purchase of electricity - CAMMESA 4,080,310 4,499,302 Provision for unbilled electricity purchases - CAMMESA 7,828,458 6,715,431 Suppliers 2,426,016 1,995,697 Advance to customer 196,485 220,111 Customer contributions 15,288 27,706 Discounts to customers 37,372 55,182 Funding contributions - substations 17,215 12,380 Related parties 35.d 7,833 51,711 Total Current 14,608,977 13,577,520 The fair values of non-current customer contributions as of December 31, 2018 and 2017 amount to $ 107.7 million and $ 141.3 million, respectively. The fair values are determined based on estimated cash flows discounted at a representative market rate for this type of transactions. The applicable fair value category is Level 3 category. The carrying amount of the rest of the financial liabilities included in the Company’s trade payables approximates their fair value. |
20. Other payables
20. Other payables | 12 Months Ended |
Dec. 31, 2018 | |
Other Payables | |
Other payables | Note 12.31.18 12.31.17 Non-current Loans (mutuum) with CAMMESA 2,282,176 2,783,474 ENRE penalties and discounts 5,097,402 5,737,612 Liability with FOTAE 207,371 280,813 Payment agreements with ENRE 37,196 108,069 Total Non-current 7,624,145 8,909,968 Current ENRE penalties and discounts 1,835,590 425,563 Related parties 35.d 7,571 7,756 Advances for works to be performed 13,577 20,046 Payment agreements with ENRE 65,301 93,550 Total Current 1,922,039 546,915 The carrying amount of the Company’s other financial payables approximates their fair value. |
21. Deferred revenue
21. Deferred revenue | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Revenue | |
Deferred revenue | 12.31.18 12.31.17 Non-current Nonrefundable customer contributions 275,437 287,384 Total Non-current 275,437 287,384 12.31.18 12.31.17 Current Nonrefundable customer contributions 5,346 4,961 Total Current 5,346 4,961 |
22. Borrowings
22. Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Revenue | |
Borrowings | 12.31.18 12.31.17 Non-current Corporate notes (1) 6,249,967 4,812,465 Borrowing 942,500 1,376,829 Total non-current 7,192,467 6,189,294 Current Interest from corporate notes 110,019 91,896 Borrowing 967,434 13,243 Total current 1,077,453 105,139 (1) Net of debt issuance, repurchase and redemption expenses. On October 11, 2017, the Company was granted a 36-month term loan by the Industrial and Commercial Bank of China Dubai (ICBC) Branch, for an amount of U.S.$ 50 million. The proceeds of the loan will be used to finance the Company’s investment plan and working capital. Furthermore, it must be pointed out that such loan constitutes an “Allowed Indebtedness” within the limits stipulated in the Corporate Notes due 2022. The fair values of the Company’s non-current borrowings (Corporate Notes) as of December 31, 2018 and 2017 amount approximately to $ 6.5 billion and $ 5.3 billion, respectively. Such values were determined on the basis of the estimated market price of the Company’s Corporate Notes at the end of each year. The applicable fair value category is Level 1 category. The Company’s borrowings are denominated in the following currencies: 12.31.18 12.31.17 US dollars 8,269,920 6,294,433 8,269,920 6,294,433 The maturities of the Company’s borrowings and its exposure to interest rate are as follow: 12.31.18 12.31.17 Fixed rate Less than 1 year 110,019 91,896 From 2 to 5 years 6,249,967 4,812,465 Total Fixed rate 6,359,986 4,904,361 Variable rate Less than 1 year 967,434 13,244 From 1 to 2 years 942,500 688,414 From 2 to 5 years - 688,414 Total Variable rate 1,909,934 1,390,072 8,269,920 6,294,433 The roll forward of the Company’s borrowings during the year was as follows: 12.31.18 12.31.17 12.31.16 Balance at beginning of the year 6,294,433 5,202,452 6,224,330 Proceeds from borrowings - 1,285,946 - Payment of borrowings' interests (652,667) (418,494) (529,227) Repurchase of Corporate Notes by the trust - - (9,683) Paid from repurchase of Corporate Notes (375,520) - (441,462) Gain from repurchase of Corporate Notes (4,539) - (84) Exchange difference and interest accrued 6,134,425 1,252,327 1,604,325 Result from exposure to inflation (3,126,212) (1,027,798) (1,645,747) Balance at the end of period 8,269,920 6,294,433 5,202,452 Corporate Notes programs The Company is included in a Corporate Notes program, the relevant information of which is detailed below: Debt issued in United States dollars Million of USD Million of $ Corporate Notes Class Rate Year of Maturity Debt structure at 12.31.17 Debt repurchase Debt structure at 12.31.18 At 12.31.18 Fixed Rate Par Note 9 9.75 2022 171.87 (10.22) 161.65 6,249.78 Total 171.87 (10.22) 161.65 6,249.78 Million of USD Million of $ Corporate Notes Class Rate Year of Maturity Debt structure at 12.31.16 Debt repurchase Debt structure at 12.31.17 At 12.31.17 Fixed Rate Par Note 9 9.75 2022 171.87 - 171.87 3,259.22 Total 171.87 - 171.87 3,259.22 The main covenants are the following: i. Negative Covenants The terms and conditions of the Corporate Notes include a number of negative covenants that limit the Company’s actions with regard to, among others, the following: - encumbrance or authorization to encumber its property or assets; - incurrence of indebtedness, in certain specified cases; - sale of the Company’s assets related to its main business; - carrying out of transactions with shareholders or related companies; - making certain payments (including, among others, dividends, purchases of edenor ii. Suspension of Covenants: Certain negative covenants stipulated in the terms and conditions of the Corporate Notes will be suspended or adapted if: - the Company’s long-term debt rating is raised to Investment Grade, or the Company’s Level of Indebtedness is equal to or lower than 3. - If the Company subsequently losses its Investment Grade rating or its Level of Indebtedness is higher than 3, as applicable, the suspended negative covenants will be once again in effect. At the date of issuance of these financial statements, the previously mentioned ratios have been complied with. In fiscal year 2018, the Company repurchased at market prices, in successive transactions, “Fixed Rate Class 9 Par Corporate Notes” due 2022, for an amount of U.S.$. 10.2 million nominal value. |
23. Salaries and social securit
23. Salaries and social security taxes payable | 12 Months Ended |
Dec. 31, 2018 | |
Salaries And Social Security Taxes Payable | |
Salaries and social security taxes payable | a. Salaries and social security taxes payable 12.31.18 12.31.17 Non-current Early retirements payable 14,884 4,960 Seniority-based bonus 147,853 171,719 Total non-current 162,737 176,679 Current Salaries payable and provisions 1,581,241 1,571,228 Social security payable 151,137 223,165 Early retirements payable 10,248 7,099 Total current 1,742,626 1,801,492 The carrying amount of the Company’s salaries and social security taxes payable approximates their fair value. b. Salaries and social security taxes charged to profit or loss 12.31.18 12.31.17 12.31.16 Salaries 4,336,533 4,897,440 5,006,596 Social security taxes 1,686,430 1,904,559 1,947,009 Total salaries and social security taxes 6,022,963 6,801,999 6,953,605 Early retirements payable correspond to individual optional agreements. After employees reach a specific age, the Company may offer them this option. The related accrued liability represents future payment obligations which as of December 31, 2018 and 2017 amount to $ 10.2 million and $ 7.1 million (current) and $ 14.9 million and $ 5 million (non-current), respectively. The seniority-based bonus included in collective bargaining agreements in effect consists of a bonus to be granted to personnel with a certain amount of years of service. As of December 31, 2018 and 2017, the related liabilities amount to $ 147.8 million and $ 171.7 million, respectively. As of December 31, 2018 and 2017, the number of employees amounts to 4,878 and 4,789, respectively. |
24. Benefit plans
24. Benefit plans | 12 Months Ended |
Dec. 31, 2018 | |
Benefit Plans | |
Benefit plans | The defined benefit plans granted to Company employees consist of a bonus for all the employees who have the necessary years of service and have made the required contributions to retire under ordinary retirement plans. The amounts and conditions vary in accordance with the collective bargaining agreement and for non-unionized personnel. 12.31.18 12.31.17 Non-current 385,098 477,765 Current 32,365 46,375 Total Benefit plans 417,463 524,140 The detail of the benefit plan obligations as of December 31, 2018 and 2017 is as follows: 12.31.18 12.31.17 Benefit payment obligations at beginning 524,140 442,170 Current service cost 32,904 42,500 Interest cost 79,304 126,954 Actuarial losses 5,638 (22,219) Result from exposure to inflation for the year (169,169) (8,692) Benefits paid to participating employees (55,354) (56,573) Benefit payment obligations at period end 417,463 524,140 As of December 31, 2018 and 2017, the Company does not have any assets related to post-retirement benefit plans. The detail of the charge recognized in the Statement of Comprehensive Income is as follows: 12.31.18 12.31.17 12.31.16 Cost 32,904 42,500 46,320 Interest 79,304 126,954 163,431 Actuarial results - Other comprehensive loss 5,638 (22,219) (15,555) 117,846 147,235 194,196 The actuarial assumptions used are based on market interest rates for Argentine government bonds, past experience, and the Company Management’s best estimate of future economic conditions. Changes in these assumptions may affect the future cost of benefits and obligations. The main assumptions used are as follow: 12.31.18 12.31.17 Discount rate 5% 5% Salary increase 1% 1% Inflation 31% 18% Sensitivity analysis: 12.31.2018 Discount Rate: 4% Obligation 459,651 Variation 42,188 10% Discount Rate: 6% Obligation 381,587 Variation (35,876) (9%) Salary Increase : 0% Obligation 379,992 Variation (37,471) (9%) Salary Increase: 2% Obligation 460,939 Variation 43,476 10% The expected payments of benefits are as follow: In 2019 In 2020 In 2021 In 2022 In 2023 Between 2022 to 2028 At December 31, 2018 Benefit payment obligations 32,365 6,221 6,207 6,450 2,059 11,128 Estimates based on actuarial techniques imply the use of statistical tools, such as the so-called demographic tables used in the actuarial valuation of the Company’s active personnel. In order to determine the mortality of the Company’s active personnel, the “1971 Group Annuity Mortality” table has been used. In general, a mortality table shows for each age group the probability that a person in any such age group will die before reaching a predetermined age. Male and female mortality tables are elaborated separately inasmuch as men and women’s mortality rates are substantially different. In order to estimate total and permanent disability due to any cause, 80% of the “1985 Pension Disability Study” table has been used. In order to estimate the probability that the Company’s active personnel will leave the Company or stay therein, the “ESA 77” table has been used. Liabilities related to the above-mentioned benefits have been determined considering all the rights accrued by the beneficiaries of the plans through the closing date of the year ended December 31, 2018. These benefits do not apply to key management personnel. |
25. The Company's Share-based C
25. The Company's Share-based Compensation Plan | 12 Months Ended |
Dec. 31, 2018 | |
Companys Share-based Compensation Plan | |
The Company's Share-based Compensation Plan | In 2016, the Company’s Board of Directors proposed that the treasury shares be used for the implementation of a long-term incentive plan in favor of executive directors, managers or other personnel holding key executive positions in the Company in an employment relationship with the latter and those who in the future are invited to participate, in accordance with the provisions of section 67 of Law No. 26,831 on Capital Markets. The plan was ratified and approved by the ordinary and extraordinary shareholders’ meeting held on April 18, 2017. At the date of issuance of these financial statements, the Company awarded a total of 1,618,332 shares to executive directors and managers as additional remuneration for their performance in special processes developed during fiscal years 2016 and 2017. The fair value of the previously referred to shares at the award date, amounted to $ 49.4 million and has been recorded in the Salaries and social security taxes line item, with a contra account in Equity. The amount recorded in Equity is net of the tax effect. |
26. Income tax
26. Income tax | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax | |
Income tax | The analysis of deferred tax assets and liabilities is as follows: 12.31.17 Result from exposure to inflation Charged to profit and loss Charged to other comprehensive income 12.31.18 Deferred tax assets Inventories 13,454 (9,064) (4,390) - - Trade receivables and other receivables 481,066 (371,025) 335,061 - 445,102 Trade payables and other payables 424,670 757,645 772,447 - 1,954,762 Salaries and social security taxes payable (95,813) 130,428 14,824 - 49,439 Benefit plans 219,113 (128,800) 13,980 1,691 105,984 Tax liabilities 55,897 (43,540) 3,274 - 15,631 Provisions (546,274) 755,078 137,055 - 345,859 Deferred tax asset 605,906 1,036,929 1,272,251 1,691 2,916,777 Deferred tax liabilities: Property, plant and equipment (7,466,457) 903,151 (4,184,856) - (10,748,162) Financial assets at fair value through profit or loss (386,145) 374,867 (201,199) - (212,477) Borrowings (43,454) 37,986 1,022 - (4,446) Deferred tax liability (7,896,056) 1,316,004 (4,385,033) - (10,965,085) Net deferred tax (liabilities) assets (7,290,150) 2,352,933 (3,112,782) 1,691 (8,048,308) 12.31.16 Result from exposure to inflation Charged to profit and loss Charged to other comprehensive income 12.31.17 Deferred tax assets Tax loss carryforward 6,160 (1,988) 49,620 - 53,792 Inventories 7,520 (2,427) 8,361 - 13,454 Trade receivables and other receivables 204,972 (66,156) 342,250 - 481,066 Trade payables and other payables 1,659,011 (535,455) (698,886) - 424,670 Salaries and social security taxes payable 36,176 (11,676) (120,313) - (95,813) Benefit plans 154,759 (49,949) 121,519 (7,216) 219,113 Tax liabilities 23,232 (7,498) 40,163 - 55,897 Provisions 221,846 (71,602) (696,518) - (546,274) Deferred tax asset 2,313,676 (746,751) (953,803) (7,216) 605,906 Deferred tax liabilities: Property, plant and equipment (9,779,890) 3,027,954 (714,521) - (7,466,457) Financial assets at fair value through profit or loss (59,581) 19,230 (345,794) - (386,145) Borrowings (12,424) 4,010 (35,040) - (43,454) Deferred tax liability (9,851,895) 3,051,194 (1,095,355) - (7,896,056) Net deferred tax (liabilities) assets (7,538,219) 2,304,443 (2,049,158) (7,216) (7,290,150) 12.31.18 12.31.17 Deferred tax assets: To be recover in less than 12 moths 2,310,153 669,450 To be recover in more than 12 moths 606,624 1,756,314 Deferred tax asset 2,916,777 2,425,764 Deferred tax liabilities: To be recover in less than 12 moths (1,966,173) (2,740,288) To be recover in more than 12 moths (8,998,912) (6,975,626) Deferred tax liability (10,965,085) (9,715,914) Net deferred tax assets (liabilities) (8,048,308) (7,290,150) The detail of the income tax expense for the year includes two effects: (i) the current tax for the year payable in accordance with the tax legislation applicable to the Company; (ii) the effect of applying the deferred tax method which recognizes the effect of the temporary differences arising from the valuation of assets and liabilities for accounting and tax purposes. 12.31.18 12.31.17 12.31.16 Deferred tax (759,849) 255,285 342,403 Current tax (1,114,384) (760,641) (484,887) Difference between provision and tax return (3,163) (4,700) (4,786) Income tax expense (1,877,396) (510,056) (147,270) Tax Reform in Argentina On December 29, 2017, the PEN enacted Law No. 27,430 – Income Tax. This Law has introduced several amendments to the treatment of income tax, whose key components are the following: Income tax rate: Dividend withholding tax: The dividends arising from benefits obtained until the fiscal year prior to that beginning as from January 1, 2018 will continue to be subject, for all the beneficiaries thereof, to the 35% withholding on the amount exceeding the non-taxable distributable cumulative income (transition period of the equalization tax). Optional tax revaluation: Adjustment of deductions: 12.31.18 12.31.17 12.31.16 Profit for the year before taxes 6,174,862 5,590,691 388,041 Applicable tax rate 30% 35% 35% Loss for the year at the tax rate (1,852,459) (1,956,742) (135,814) Gain (Loss) from interest in joint ventures 560 (6) (3) Non-taxable income 220,769 115,661 138,040 Gain on net monetary position and others (1,007,010) 902,631 (144,707) Difference between provision and tax return (3,163) (4,700) (4,786) Change in the income tax rate (1) 763,907 433,100 - Income tax expense (1,877,396) (510,056) (147,270) (1) Refers to the effect of applying to deferred tax assets and liabilities the changes in income tax rates in accordance with the previously detailed tax reform on the basis of the year in which they are expected to be realized/settled. The income tax payable, net of withholdings is detailed below. 12.31.18 12.31.17 Current Tax payable 2017 1,114,384 760,641 Total Tax payable 1,114,384 760,641 Tax withholdings (497,058) (71,550) Total current 617,326 689,091 |
27. Tax liabilities
27. Tax liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Tax Liabilities | |
Tax liabilities | 12.31.18 12.31.17 Non-current Current Provincial, municipal and federal contributions and taxes 130,445 587,723 VAT payable 412,547 728,173 Tax withholdings 127,121 131,091 SUSS withholdings 7,435 5,190 Municipal taxes 106,117 101,082 Tax regularization plan 380 2,242 Total Current 784,045 1,555,501 |
28. Leases
28. Leases | 12 Months Ended |
Dec. 31, 2018 | |
Leases | |
Leases | · Lessee The features that these leases have in common are that payments (installments) are established as fixed amounts; there are neither purchase option clauses nor renewal term clauses (except for the lease contract of the Energy Handling and Transformer Center that has an automatic renewal clause for the term thereof); and there are prohibitions such as: transferring or sub-leasing the building, changing its use and/or making any kind of modifications thereto. All operating leases contracts have cancelable terms and assignment periods of 2 to 13 years. Among them the following can be mentioned: commercial offices, two warehouses, the headquarters building (comprised of administration, commercial and technical offices), the Energy Handling and Transformer Center (two buildings and a plot of land located within the perimeter of Central Nuevo Puerto and Puerto Nuevo) and Las Heras substation. As of December 31, 2018 and 2017, future minimum payments with respect to operating assignments of use are as follow: 12.31.18 12.31.17 2017 - - 2018 - 124,503 2019 155,454 124,626 2020 138,048 52,194 2021 102,515 4,597 Total future minimum lease payments 396,017 305,920 Total expenses for operating assignments of use for the years ended December 31, 2018, 2017 nad 2016 are as follow: 12.31.18 12.31.17 12.31.16 Total lease expenses 125,157 126,098 126,193 · Lessor The Company has entered into operating leases contracts with certain cable television companies granting them the right to use the poles of the Company’s network. Most of these contracts include automatic renewal clauses. As of December 31, 2018 and 2017, future minimum collections with respect to operating leases are as follow: 12.31.18 12.31.17 2017 - - 2018 - 202,143 2019 173,619 193,812 Total future minimum lease collections 173,619 395,955 Total income from operating leases for the years ended December 31, 2018, 2017 and 2016 is as follows: 12.31.18 12.31.17 12.31.16 Total lease income 190,370 212,265 199,431 |
29. Provisions
29. Provisions | 12 Months Ended |
Dec. 31, 2018 | |
Provisions [abstract] | |
Provisions | Non-current liabilities Current liabilities Contingencies At 12.31.16 504,038 129,808 Increases 411,975 130,389 Decreases (4) (58,930) Result from exposure to inflation for the year (32,890) (10,409) At 12.31.17 883,119 190,858 Increases 472,067 252,030 Decreases (85,662) (239,585) Result from exposure to inflation for the year (199,374) (15,868) At 12.31.18 1,070,150 187,435 |
30. Revenue from sales
30. Revenue from sales | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Sales | |
Revenue from sales | 12.31.18 12.31.17 12.31.16 Sales of electricity 55,689,651 39,329,729 25,576,978 Right of use on poles 190,370 212,265 213,449 Connection charges 51,105 49,369 30,893 Reconnection charges 22,523 11,505 5,439 Total Revenue from sales 55,953,649 39,602,868 25,826,759 |
31. Expenses by nature
31. Expenses by nature | 12 Months Ended |
Dec. 31, 2018 | |
Expenses By Nature | |
Expenses by nature | The detail of expenses by nature is as follows: Description Transmission and distribution expenses Selling expenses Administrative expenses Total Salaries and social security taxes 4,331,442 777,014 914,507 6,022,963 Pension plans 80,695 14,476 17,037 112,208 Communications expenses 81,110 269,674 16,017 366,801 Allowance for the impairment of trade and other receivables - 977,503 - 977,503 Supplies consumption 790,392 - 122,623 913,015 Leases and insurance 530 - 180,218 180,748 Security service 136,656 2,027 128,699 267,382 Fees and remuneration for services 1,411,812 1,040,164 1,007,152 3,459,128 Public relations and marketing - - 32,246 32,246 Advertising and sponsorship - - 16,612 16,612 Reimbursements to personnel 60 68 498 626 Depreciation of property, plants and 2,014,887 300,255 246,357 2,561,499 Directors and Supervisory Committee - - 21,893 21,893 ENRE penalties (1) 2,064,330 1,052,135 - 3,116,465 Taxes and charges - 598,908 162,549 761,457 Other 808 457 5,719 6,984 At 12.31.18 10,912,722 5,032,681 2,872,127 18,817,530 The expenses included in the chart above are net of the Company’s own expenses capitalized in Property, plant and equipment as of December 31, 2018 for $ 1 billion. Description Transmission and distribution expenses Selling expenses Administrative expenses Total Salaries and social security taxes 4,997,823 886,976 917,200 6,801,999 Pension plans 124,507 22,097 22,850 169,454 Communications expenses 55,281 289,371 22,804 367,456 Allowance for the impairment of trade and other receivables - 391,615 - 391,615 Supplies consumption 687,199 - 109,780 796,979 Leases and insurance 653 - 182,024 182,677 Security service 130,263 1,797 141,231 273,291 Fees and remuneration for services 1,081,974 876,612 820,225 2,778,811 Public relations and marketing - - 56,659 56,659 Advertising and sponsorship - - 29,187 29,187 Reimbursements to personnel 89 55 827 971 Depreciation of property, plants and 1,740,231 275,125 132,733 2,148,089 Directors and Supervisory Committee - - 21,429 21,429 ENRE penalties 428,049 428,663 - 856,712 Taxes and charges - 395,263 32,011 427,274 Other 996 264 15,546 16,806 At 12.31.17 9,247,065 3,567,838 2,504,506 15,319,409 (1) Transmission and distribution expenses include recovery for $ 719.8 million net of the charge for the year for $ 1.6 billion. The expenses included in the chart above are net of the Company’s own expenses capitalized in Property, plant and equipment as of December 31, 2017 for $ 869.7 million. Description Transmission and distribution expenses Selling expenses Administrative expenses Total Salaries and social security taxes 5,104,795 861,097 987,713 6,953,605 Pension plans 142,590 24,053 27,589 194,232 Communications expenses 49,817 251,381 20,318 321,516 Allowance for the impairment of trade and other receivables - 433,371 - 433,371 Supplies consumption 513,318 - 64,249 577,567 Leases and insurance 870 - 173,973 174,843 Security service 134,404 22,855 85,461 242,720 Fees and remuneration for services 897,754 923,607 771,520 2,592,881 Public relations and marketing - - - - Advertising and sponsorship - - - - Reimbursements to personnel 1,821 343 1,520 3,684 Depreciation of property, plants and 1,739,293 301,301 106,647 2,147,241 Directors and Supervisory Committee - - 11,937 11,937 ENRE penalties 4,677,844 367,907 - 5,045,751 Taxes and charges - 193,081 27,088 220,169 Other 1,351 265 10,022 11,638 At 12.31.16 13,263,857 3,379,261 2,288,037 18,931,155 The expenses included in the chart above are net of the Company’s own expenses capitalized in Property, plant and equipment as of December 31, 2017 for $ 602 million. |
32. Other operating expense, ne
32. Other operating expense, net | 12 Months Ended |
Dec. 31, 2018 | |
Other Operating Expense Net | |
Other operating expense, net | 12.31.18 12.31.17 12.31.16 Other operating income Services provided to third parties 74,522 89,303 120,580 Commissions on municipal taxes collection 77,088 51,358 42,131 Related parties 35 44,303 4,263 921 Income from non-reimbursable customer 5,574 4,372 1,520 Fines to suppliers (1) 76,914 7,811 - Others 43,355 705 6,995 Total other operating income 321,756 157,812 172,147 Other operating expense Gratifications for services (74,266) (80,802) (69,678) Cost for services provided to third parties (52,429) (65,238) (98,328) Severance paid (16,645) (28,353) (31,243) Donations and contributions (6) - - Debit and Credit Tax (594,750) (479,525) (306,892) Other expenses - FOCEDE (31,223) Provision for contingencies (724,097) (542,364) (301,808) Disposals of property, plant and equipment (134,455) (49,824) (244,456) Other (45,918) (14,398) (1,534) Total other operating expense (1,642,566) (1,260,504) (1,085,162) Other operating expense, net (1,320,810) (1,102,692) (913,015) (1) Relates to fines applied to Suppliers for failing to comply with agreed-upon contractual conditions. |
33. Net financial expense
33. Net financial expense | 12 Months Ended |
Dec. 31, 2018 | |
Net Financial Expense | |
Net financial expense | 12.31.18 12.31.17 12.31.16 Financial income Commercial interest 273,457 177,655 262,536 Financial interest 398,326 276,149 122,057 Total financial income 671,783 453,804 384,593 Financial expenses Interest and other (1,987,092) (819,377) (535,721) Fiscal interest (22,752) (31,153) (18,762) Commercial interest (2,958,366) (1,716,843) (2,028,136) Bank fees and expenses (8,509) (2,883) (6,608) Total financial expenses (4,976,719) (2,570,256) (2,589,227) Other financial results Exchange differences (2,629,966) (564,056) (911,819) Adjustment to present value of receivables (327) (431) 5,749 Changes in fair value of financial assets (1) 746,532 474,896 891,773 Net gain from the repurchase of 4,539 - 90 Other financial expense (86,098) (78,877) (73,096) Total other financial expense (1,965,320) (168,468) (87,303) Total net financial expense (6,270,256) (2,284,920) (2,291,937) (1) Includes changes in the fair value of financial assets on cash equivalents as of December 31, 2018, 2017 and 2016 for $ 43.4 million, $ 37.3 million and $ 39.6 million, respectively. |
34. Basic and diluted earnings
34. Basic and diluted earnings per share | 12 Months Ended |
Dec. 31, 2018 | |
Basic and diluted earnings profit per share: | |
Basic and diluted earnings per share | Basic The basic earnings per share are calculated by dividing the profit attributable to the holders of the Company’s equity instruments by the weighted average number of common shares outstanding as of December 31, 2018 and 2017, excluding common shares purchased by the Company and held as treasury shares. The basic earnings per share coincide with the diluted earnings per share, inasmuch as the Company has issued neither preferred shares nor Corporate Notes convertible into common shares. 12.31.18 12.31.17 12.31.16 Profit (Loss) for the year attributable to the owners of the Company 4,297,466 5,080,635 240,771 Weighted average number of common shares outstanding 890,492 898,280 897,043 Basic and diluted profit (loss) earnings per share – in pesos 4.83 5.66 0.27 |
35. Related-party transactions
35. Related-party transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related party transactions [abstract] | |
Related-party transactions | · The following transactions were carried out with related parties: a. Income Company Concept 12.31.18 12.31.17 12.31.16 CYCSA Other income - - 17,686 PESA Impact study 149 - - Electrical assembly service 11,161 4,263 - SACDE Reimbursement expenses 32,993 - - Transener Reimbursement expenses - 369 Transba Reimbursement expenses - - 553 44,303 4,263 18,608 b. Expense Company Concept 12.31.18 12.31.17 12.31.16 PESA Technical advisory services on financial matters (86,098) (60,944) (67,642) SACME Operation and oversight of the electric power transmission system (81,698) (68,960) (65,298) Salaverri, Dellatorre, Burgio y Wetzler Malbran Legal fees - (876) (6,365) PYSSA Financial and granting of loan services to customers - - (39) OSV Hiring life insurance for staff (19,521) (18,965) (11,474) ABELOVICH, POLANO & ASOC. Legal fees (1,310) (712) - (188,627) (150,457) (149,891) c. Key Management personnel’s remuneration 12.31.18 12.31.17 12.31.16 Salaries 194,040 250,646 229,206 194,040 250,646 229,206 · The balances with related parties are as follow: d. Receivables and payables 12.31.18 12.31.17 Other receivables - Non current SACME 4,662 8,015 4,662 8,015 Other receivables - Current SACME 766 1131 PESA 1,180 483 1,946 1,614 The other receivables with related parties are not secured and do not accrue interest. No allowances have been recorded for these concepts in any of the periods covered by these financial statements. According to IAS 24, paragraphs 25 and 26, the Company applies the exemption from the disclosure requirement of transactions with related parties when the counterpart is a governmental agency that has control, joint control or significant influence. As of December 31, 2018, the ANSES holds Corporate Notes of the Company due in 2022 for $ 752 million (U.S.$. 20 million nominal value). The agreements with related parties that were in effect throughout fiscal year 2018 are detailed below: (a) Agreement with SACME In the framework of the regulation of the Argentine electric power sector established by Law No. 24,065 and SEE Resolution No. 61/92, and after the awarding of the distribution areas of the city and metropolitan area of Buenos Aires to edenor edenor The purpose of this company is to manage, supervise and control the operation of both the electric power generation, transmission and sub-transmission system in the City of Buenos Aires and the Buenos Aires metropolitan area and the interconnections with the Argentine Interconnection System, to represent Distribution Companies in the operational management before CAMMESA, and, in general, to carry out the necessary actions for the proper development of its activities. The share capital of SACME is divided into 12,000 common, registered non-endorsable shares, of which 6,000 Class I shares are owned by edenor The operating costs borne by the Company during fiscal year 2018 amounted to $ 81.6 million. (b) Agreement with EASA The agreement stipulates the provision to the Company of technical advisory services on financial matters for a term of five years to commence as from September 19, 2015. The term of the agreement will be extended if so agreed by the parties. In consideration of these services, the Company pays PESA an annual amount of U.S.$. 2.5 million. Any of the parties may terminate the agreement at any time by giving 60 days’ notice, without having to comply with any further obligations or paying any indemnification to the other party. Due to the merger process of EASA and its parent IEASA with and into CTLL, and, in turn, of CTLL with and into PESA, the amount stipulated in the agreement in consideration of the services will be paid to the acquiring and surviving company/companies of EASA. (c) Orígenes Seguros de Vida In the framework of the process for the taking out of the mandatory life insurance for its personnel, the Company invited different insurance companies to submit their proposals. After having been analyzed, the one submitted by OSV was selected as the best proposal. This transaction was approved by the Company’s Board of Directors at the Board meeting held on March 7, 2018, with the Auditing Committee’s prior favorable opinion. The operating costs borne by the Company in fiscal year 2018 amounted to $ 19.5 million. (d) Fidus Sociedad de Garantía Recíproca The Company’s Board of Directors, at its meeting of December 4, 2018, approved the making of a contribution of funds to Fidus SGR for a sum of $ 25.0 million, in the capacity as protector partner and with the scope set forth in Law No. 24,467. In this manner, the Company expects to strengthen the relationship with its suppliers by giving them the possibility of facilitating an improvement in financing conditions. (e) SACDE Throughout 2018, due to the agreement entered into by and between the Federal Government and SACDE for the construction of the Presidente Perón highway’s extension, the Company received from SACDE requests for moving certain facilities owned by the Company located in some specific places of the referred to highway’s path. As stipulated in edenor’s Concession Agreement, the entire cost of the removals in question is to be borne by the requesting party; therefore, the Projects and Permits Area of the Company’s Operations Department prepared the respective works budgets in accordance with the Price List in effect, with the related percentages for contingencies and edenor’s fee for the Project, works oversight and associated electric operations, in addition to the estimated time period for the completion of the works. Given that SACDE is a related party under the terms of the Law on Capital Markets, the aforementioned works contracts were approved by the Board of Directors at the Board meetings held on April 25, 2018 and January 30, 2019. The ultimate controlling company of edenor |
36. Safekeeping of documentatio
36. Safekeeping of documentation | 12 Months Ended |
Dec. 31, 2018 | |
Safekeeping Of Documentation | |
Safekeeping of documentation | On August 14, 2014, the CNV issued General Resolution No. 629 which introduced changes to its regulations concerning the safekeeping and preservation of corporate books, accounting books and commercial documentation. In this regard, it is informed that for safekeeping purposes the Company has sent its workpapers and non-sensitive information, whose periods for retention have not expired, to the warehouses of the firm Iron Mountain Argentina S.A., located at: - 1245 Azara St. – City of Buenos Aires - 2163 Don Pedro de Mendoza Av. – City of Buenos Aires - 2482 Amancio Alcorta Av. – City of Buenos Aires - Tucumán St. on the corner of El Zonda, Carlos Spegazzini City, Ezeiza, Province of Buenos Aires The detail of the documentation stored outside the Company’s offices for safekeeping purposes, as well as the documentation referred to in Section 5 sub-section a.3) of Caption I of Chapter V of Title II of the Regulations (Technical Rule No. 2,013, as amended) is available at the Company’s registered office. |
37. Termination of agreement on
37. Termination of agreement on real estate asset | 12 Months Ended |
Dec. 31, 2018 | |
Termination Of Agreement On Real Estate Asset | |
Termination of agreement on real estate asset | With the aim of concentrating in one single building the Company’s centralized functions, and reducing rental costs and the risk of future increases, in November 2015, the Company acquired from RDSA (the “seller”) a real estate asset to be constructed, for a total amount of U.S.$. 46 million -equivalent to $ 439.3 million at the exchange rate in effect at the time of entering into the purchase and sale agreement. To guarantee payment of liquidated damages in case of termination on account of the seller’s default, the Company received a surety bond issued by Aseguradores de Cauciones S.A. Compañía de Seguros for up to the maximum amount of U.S.$. 46 million, plus the private banks’ Badlar rate in dollars + 2%. The real property had to be delivered by the seller to the Company on June 1, 2018, which the seller failed to comply. Therefore, the Company declared the seller in default, notifying the insurance company that issued the surety bond of such situation, and collected U.S.$. 502.8 thousand in fines accrued during the term of the purchase and sale agreement and duly deposited as bond by the seller for failing to meet the construction project milestones agreed upon in the agreement, amount which was recorded in the Other operating expense, net line item of the Statement of Comprehensive Income. On August 27, 2018, upon expiration of the legal time periods set forth in the agreement, the Company notified RDSA of the termination of the agreement on account of its default, demanding payment of the liquidated damages: refunding of the purchase price, plus 15% interest in dollars from the purchase price payment date until the day of default, less the delay penalty amounts indicated in the preceding paragraph. Furthermore, on September 3, 2018, the Company filed a claim against the bond with the insurance company, and subsequently provided the additional documentation and information that had been required. Due to RDSA’s failure to reimburse the purchase price plus interest, in November 2018, the Company initiated an arbitration process against RDSA before the Arbitral Tribunal of the Buenos Aires Stock Exchange in order for RDSA to be ordered to pay the liquidated damages stipulated in the purchase and sale agreement, which, as of December 31, 2018 amounts to $ 3 billion. As of to date, said process is in process . In the opinion of our legal advisors, the Company’s right to collect the credit is based on extremely solid arguments; therefore, the award in the aforementioned arbitration process against RDSA as well as the outcome of the lawsuit that could eventually be filed against Aseguradora de Cauciones if it fails to comply with the payment of the above-mentioned surety bond, should be favorable to the Company. However, taking into consideration that on February 1, 2019 RDSA filed a voluntary petition for reorganization proceedings, and that on February 28, 2019 the Official Gazette |
38. Ordinary and Extraordinary
38. Ordinary and Extraordinary Shareholders' Meeting | 12 Months Ended |
Dec. 31, 2018 | |
Ordinary And Extraordinary Shareholders Meeting | |
Ordinary and Extraordinary Shareholders' Meeting | The Company Ordinary and Extraordinary Shareholders’ Meeting held on April 26, 2018 resolved, among other issues, the following: - To approve edenor’s - To allocate the profit for the year ended December 31, 2017 to the absorption of accumulated losses; - To approve the actions taken by the Directors and Supervisory Committee members, together with their respective remunerations; - To appoint the authorities and the external auditors for the current fiscal year; |
4. Accounting policies (Policie
4. Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies Policies Abstract | |
New accounting standards, amendments and interpretations issued by the IASB | The Company has applied the following standards and/or amendments for the first time as from January 1, 2018: - IFRS 15 "Revenue from contracts with customers" (issued in May 2014 and amended in September 2015) - IFRS 9 “Financial instruments” (amended in July 2014) - IFRS 2 “Share-based payments” (amended in June 2016) - IFRIC 22 “Foreign currency transactions and Advanced consideration” (issued in December 2016) - Annual improvements to IFRSs – 2014-2016 Cycle (issued in December 2016) In the respective accounting policies detail the main issues related to the initial application of IFRS 9 and IFRS 15. The application of the other standards, amendments and interpretations generated no impact on either the Company’s results of operations and financial position, or the accounting policies applicable as from January 1, 2018. Note 4.1.1 | Impacts of adoption of rules not yet effectives - IFRS 16 “Leases”: On January 13, 2016, the IASB published IFRS 16, which replaces the current guidance in IAS 17. The standard defines a lease as a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration. The standard requires the recognition of a lease liability that reflects future lease payments and a ‘right-of-use asset’ for almost all lease contracts. This is a significant change compared to IAS 17 under which lessees were required to make a distinction between a finance lease (reported on the balance sheet) and an operating lease (off balance sheet). IFRS 16 contains an optional exemption for certain short-term leases and leases of low-value assets; however, this exemption can only be applied by lessees. IFRS 16 is effective for annual reporting periods beginning on or after January 1, 2019. The impact of the application of the aforementioned standard estimated by the Company is not significant. - IFRS 17 “Insurance Contracts”, issued in May 2017. It replaces IFRS 4 - an interim standard issued in 2004 that allowed entities to account for insurance contracts using their local accounting requirements, resulting in multiple application approaches. IFRS 17 establishes the principles for the recognition, measurement, presentation, and disclosure of insurance contracts, and applies to annual periods beginning on or after January 1, 2021, with early adoption permitted if entities also apply IFRS 9 and IFRS 15. The Company is currently analyzing the impact of the application of IFRS 17; nevertheless, it estimates that the application thereof will have no impact on the Company’s results of operations or its financial position. - IFRIC 23 “Uncertainty over income tax treatments”, issued in June 2017. It clarifies the application of IAS 12 where there is uncertainty over income tax treatments. In accordance with the interpretation, an entity is required to reflect the impact of the uncertain tax treatment using the method that best predicts the resolution of the uncertainty, using either the most likely amount method or the expected value method. Additionally, the entity is required to assume that the tax authority will examine the uncertain treatments and have full knowledge of all the related relevant information when assessing the tax treatment over income tax. The interpretation is effective for annual periods beginning on or after January 1, 2019, although early adoption is permitted. The Company estimates that the application of IFRIC 23 will have no impact on the Company’s results of operations or its financial position. - IAS 28 “Investments in associates and joint ventures”, amended in October 2017. It clarifies that IFRS 9 applies to other financial instruments in an associate or joint venture to which the equity method is not applied. The standard is effective for annual periods beginning on or after January 1, 2019, although early adoption is permitted. The Company estimates that its application will have no impact on the Company’s results of operations or its financial position. - IAS 19 “Employee benefits”, amended in February 2018. It introduces changes to the measurement of past service cost and net interest in the case of post-employment defined benefit plans that have suffered amendments, curtailments or settlements. It applies to amendments, curtailments or settlements as from January 1, 2019. The Company is currently assessing the impact of these new standards and amendments. |
Property, plant and equipment | Additions have been valued at acquisition cost restated to reflect the effects of inflation, net of the related accumulated depreciation. Depreciation has been calculated by applying the straight-line method over the remaining useful life of the assets, which was determined on the basis of engineering studies. Subsequent costs (major maintenance and reconstruction costs) are either included in the value of the assets or recognized as a separate asset, only if it is probable that the future benefits associated with the assets will flow to the Company, being it possible as well that the costs of the assets may be measured reliably and the investment will improve the condition of the asset beyond its original state. The other maintenance and repair expenses are recognized in profit or loss in the year in which they are incurred. In accordance with the Concession Agreement, the Company may not pledge the assets used in the provision of the public service nor grant any other security interest thereon in favor of third parties, without prejudice to the Company’s right to freely dispose of those assets which in the future may become inadequate or unnecessary for such purpose. This prohibition does not apply in the case of security interests granted over an asset at the time of its acquisition and/or construction as collateral for payment of the purchase and/or installation price. The residual value and the remaining useful lives of the assets are reviewed and adjusted, if appropriate, at the end of each fiscal year (reporting period). Land is not depreciated. Facilities in service: between 30 and 50 years Furniture, tools and equipment: between 5 and 20 years Construction in process is valued based on the degree of completion and is recorded at cost restated to reflect the effects of inflation less any impairment loss, if applicable. Cost includes expenses attributable to the construction, when they are part of the cost incurred for the purposes of acquisition, construction or production of property, plant and equipment that require considerable time until they are in condition to be used. These assets begin to be depreciated when they are in economic condition to be used. Gains and losses on the sale of Property, plant and equipment are calculated by comparing the price collected with the carrying amount of the asset, and are recognized within Other operating expense or Other operating income in the Statement of Comprehensive Income. The valuation of property, plant and equipment, taken as a whole, does not exceed its recoverable value, which is measured as the higher of value in use and fair value less costs to sell at the end of the year. At the date of issuance of these financial statements there are no indicators of a potential impairment (Note 6.c). |
Interests in joint ventures | The main conceptual definitions are as follow: i. A joint arrangement takes place among two or more parties when they have joint control: joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. ii. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Such parties are called joint venturers. iii. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. These parties are called joint operators. The Company accounts for its investment in joint ventures in accordance with the equity method. Under this method, the interest is initially recognized at cost and subsequently adjusted by recognizing the Company’s share in the profit or loss obtained by the joint venture, after acquisition date. The Company recognizes in profit or loss its share of the joint venture’s profit or loss and in other comprehensive income its share of the joint venture’s other comprehensive income. When the Company carries out transactions in the joint ventures, the unrealized gains and losses are eliminated in accordance with the percentage interest held by the Company in the jointly controlled entity. The joint ventures’ accounting policies have been modified and adapted, if applicable, to ensure consistency with the policies adopted by the Company. Furthermore, taking into account that the interests in joint ventures are not regarded as significant balances, the disclosures required under IFRS 12 have not been made. |
Revenue recognition | a. Revenue from sales Revenues from contracts with customers (ENRE Resolutions No. 63/17, 603/17, 33/18, 208/18 and SE Resolution No. 366/18): The Company recognizes, on a monthly basis, revenues from electricity distribution and commercialization as energy is distributed to each client based on the applicable tariff and procedures established by the ENRE. Such revenue includes energy delivered, whether billed or unbilled, at the end of each period. Revenues are not adjusted for the effect of financing components as sales’ payments are not deferred over time, which is consistent with market practice. The current remuneration scheme establishes certain limits to the increase in the VAD resulting from the tariff structure review process, as well as a mechanism for monitoring the variation of CPD, which implies an increase in the compensation scheme for certain cases; the Company recognizes related revenues only to the extent that it is highly probable that a significant reversal will not occur and it is probable that the consideration will be collected regardless the period in which the energy is distributed. The Company recognizes revenues related to energy supply to low-income areas and shantytowns, only to the extent that the Framework Agreement with Argentine Nation and Province of Buenos Aires has been renewed for the period in which the service was rendered. Other revenues from contracts with customers: The Company recognizes other revenues from contracts with customers in relation to connection and reconnection services, rights of use on poles and transport of energy to other distribution companies on a monthly basis as services are rendered based on the price established in each contract. Revenues are not adjusted for the effect of financing components as sales’ payments are not deferred over time, which is consistent with market practice. b. Interest income Interest income is recognized by applying the effective interest rate method. Interest income is recorded in the accounting on a time basis by reference to the principal amount outstanding and the applicable effective rate. Interest income is recognized when it is probable that the economic benefits associated with the transaction will flow to the Company and the amount of the transaction can be measured reliably. |
Effects of the changes in foreign currency exchange rates | a. Functional and presentation currency The information included in the financial statements is measured using the Company’s functional currency, which is the currency of the main economic environment in which the entity operates. The financial statements are measured in pesos (legal currency in Argentina), restated to reflect the effects of inflation (Note 3), which is also the presentation currency. b. Transactions and balances Foreign currency denominated transactions and balances are translated into the functional and presentation currency using the rates of exchange prevailing at the date of the transactions or revaluation, respectively. The gains and losses generated by foreign currency exchange differences resulting from each transaction and from the translation of monetary items valued in foreign currency at the end of the year are recognized in the Statement of Income. The foreign currency exchange rates used are the bid price for monetary assets, the offer price for monetary liabilities, and the specific exchange rate for foreign currency denominated transactions. |
Trade and other receivables | a. Trade receivables The receivables arising from services billed to customers but not collected as well as those arising from services rendered but unbilled at the closing date of each year are recognized at fair value and subsequently measured at amortized cost using the effective interest rate method. The receivables from electricity supplied to low-income areas and shantytowns are recognized, also in line with revenue, when the Framework Agreement has been renewed for the period in which the service was provided. b. Other receivables The financial assets included in other receivables are initially recognized at fair value (generally the original billing/settlement amount) and subsequently measured at amortized cost, using the effective interest rate method, and when significant, adjusted by the time value of money. The Company records impairment allowances when there is objective evidence that the Company will not be able to collect all the amounts owed to it in accordance with the original terms of the receivables. The rest of other receivables are initially recognized at the amount paid. |
Inventories | Inventories are valued at the lower of acquisition cost restated to reflect the effects of inflation and net realizable value. They are valued based on the purchase price, import duties (if applicable), and other taxes (that are not subsequently recovered by tax authorities), and other costs directly attributable to the acquisition of those assets. Cost is determined by applying the weighted average price (WAP) method. The Company has classified inventories into current and non-current depending on whether they will be used for maintenance or capital expenditures and on the period in which they are expected to be used. The non-current portion of inventories is disclosed in the “Property, plant and equipment” account. The valuation of inventories, taken as a whole, does not exceed their recoverable value at the end of each year. |
Financial assets | Note 4.8.1 | Classification The Company classifies financial assets into the following categories: those measured at amortized cost and those subsequently measured at fair value. This classification depends on whether the financial asset is an investment in a debt or an equity instrument. In order for a financial asset to be measured at amortized cost, the two conditions described below must be met. All other financial assets are measured at fair value. IFRS 9 requires that all investments in equity instruments be measured at fair value. a. Financial assets at amortized cost Financial assets are measured at amortized cost if the following conditions are met: i. the objective of the Company’s business model is to hold the assets to collect the contractual cash flows; and ii. the contractual terms give rise, on specified dates, to cash flows that are solely payments of principal and interest on principal. b. Financial assets at fair value If any of the above-detailed conditions is not met, financial assets are measured at fair value through profit or loss. All investments in equity instruments are measured at fair value. For those investments that are not held for trading, the Company may irrevocably elect at the time of their initial recognition to present the changes in the fair value in other comprehensive income. The Company’s decision was to recognize the changes in fair value in profit or loss. Note 4.8.2 | Recognition and measurement The regular way purchase or sale of financial assets is recognized on the trade date, i.e. the date on which the Company agrees to acquire or sell the asset. Financial assets are derecognized when the rights to receive the cash flows from the investments have expired or been transferred and the Company has transferred substantially all the risks and rewards of the ownership of the assets. Financial assets are initially recognized at fair value plus, in the case of financial assets not measured at fair value through profit or loss, transaction costs that are directly attributable to the acquisition thereof. The gains or losses generated by investments in debt instruments that are subsequently measured at fair value and are not part of a hedging transaction are recognized in profit or loss. Those generated by investments in debt instruments that are subsequently measured at amortized cost and are not part of a hedging transaction are recognized in profit or loss when the financial asset is derecognized or impaired and by means of the amortization process using the effective interest rate method. The Company subsequently measures all the investments in equity instruments at fair value. When it elects to present the changes in fair value in other comprehensive income, such changes cannot be reclassified to profit or loss. Dividends arising from these investments are recognized in profit or loss to the extent that they represent a return on the investment. The Company reclassifies financial assets if and only if its business model to manage financial assets is changed. The expected losses, according to the calculated coefficients, are detailed in Note 6.a. Note 4.8.3 | Impairment of financial assets At the end of each annual reporting period, the Company assesses whether there is objective evidence that the value of a financial asset or group of financial assets measured at amortized cost is impaired. The value of a financial asset or group of financial assets is impaired, and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a “loss event”), and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably measured. Impairment tests may include evidence that the debtors or group of debtors are undergoing significant financial difficulties, have defaulted on interest or principal payments or made them after they had come due, the probability that they will enter bankruptcy or other financial reorganization, and when observable data indicate that there is a measurable decrease in the estimated future cash flows, such as changes in payment terms or in the economic conditions that correlate with defaults. In the case of financial assets measured at amortized cost, the amount of the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The asset’s carrying amount is reduced and the amount of the impairment loss is recognized in the Statement of Income. Although cash, cash equivalents and financial assets measured at amortized cost are also subject to the impairment requirements of IFRS 9, the identified impairment loss is not material. Note 4.8.4 | Offsetting of financial instruments Financial assets and liabilities are offset, and the net amount reported in the Statement of Financial Position, when there is a legally enforceable right to offset the recognized amounts, and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously. |
Derivative financial instruments | Derivative financial instruments are initially recognized at fair value on the date on which the respective contract is signed. Subsequently to the initial recognition, they are remeasured at their fair value. The method for recognizing the resulting loss or gain depends on whether the derivative has been designated as a hedging instrument and, if that is the case, on the nature of the item being hedged. As of December 31, 2018 and 2017, the economic impact of these transactions is recorded in the Other financial expense account of the Statement of Comprehensive Income. During fiscal year 2018, the Company has not entered into futures contracts to buy US dollars. As of December 31, 2017, the economic impact of the transactions carried out in that fiscal year resulted in a loss of $ 21.1 million, which is recorded in the Other financial expense account of the Statement of Comprehensive Income. |
Cash and cash equivalents | Cash and cash equivalents include cash on hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less from their acquisition date, with significant low risk of change in value. i. Cash and banks in local currency: at nominal value. ii. Cash and banks in foreign currency: at the exchange rates in effect at the end of the year. iii. Money market funds, which have been valued at the prevailing market price at the end of the year. Those that do not qualify as cash equivalents are disclosed in the Financial assets at fair value through profit or loss account. |
Equity | Changes in this account have been accounted for in accordance with the corresponding legal or statutory regulations and the decisions adopted by the shareholders’ meetings. a. Share capital Share capital represents issued capital, which is comprised of the contributions committed and/or made by the shareholders, represented by shares, including outstanding shares at nominal value, restated to reflect the effects of inflation as indicated in Note 3. b. Treasury stock The Treasury stock account represents the nominal value of the Company’s own shares acquired by the Company, restated to reflect the effects of inflation as indicated in Note 3. c. Other comprehensive income Represents recognition, at the end of the year, of the actuarial losses associated with the Company’s employee benefit plans, restated to reflect the effects of inflation as indicated in Note 3. d. Retained earnings Retained earnings are comprised of profits or accumulated losses with no specific appropriation. When positive, they may be distributed, if so decided by the Shareholders’ Meeting, to the extent that they are not subject to legal restrictions. Retained earnings are comprised of previous year results that have not been distributed, amounts transferred from other comprehensive income and prior year adjustments due to the application of accounting standards, restated to reflect the effects of inflation as indicated in Note 3. |
Trade and other payables | a. Trade payables Trade payables are payment obligations with suppliers for the purchase of goods and services in the ordinary course of business. Trade payables are classified as current liabilities if payments fall due within one year or in a shorter period of time. Otherwise, they are classified as non-current liabilities. Trade payables are initially recognized at fair value and subsequently measured at amortized cost using the effective interest rate method. b. Customer deposits Customer deposits are initially recognized at the amount received and subsequently measured at amortized cost using the effective interest rate method. In accordance with the Concession Agreement, the Company is allowed to receive customer deposits in the following cases: i. When the power supply is requested and the customer is unable to provide evidence of his legal ownership of the premises; ii. When service has been suspended more than once in one-year period; iii. When the power supply is reconnected and the Company is able to verify the illegal use of the service (fraud). iv. When the customer is undergoing liquidated bankruptcy or reorganization proceedings. The Company has decided not to request customer deposits from residential tariff customers. Customer deposits may be either paid in cash or through the customer’s bill and accrue monthly interest at a specific rate of BNA for each customer category. When the conditions for which the Company is allowed to receive customer deposits no longer exist, the customer’s account is credited for the principal amount plus any interest accrued thereon, after deducting, if appropriate, any amounts receivable which the Company has with the customer. c. Customer contributions Refundable d. Other payables The rest of the financial liabilities recorded in Other Payables, including the loans for consumption (mutuums) with CAMMESA, the Payment agreement with the ENRE and the advances for the execution of works, are initially recognized at fair value and subsequently measured at amortized cost. The recorded liabilities for the debts with the FOTAE, the penalties accrued, whether imposed or not yet issued by the ENRE (Note 2.e)), and other provisions are the best estimate of the settlement value of the present obligation in the framework of IAS 37 provisions at the date of these financial statements. The balances of ENRE Penalties and Discounts are adjusted in accordance with the regulatory framework applicable thereto and are based on the Company’s estimate of the outcome of the renegotiation process described in Note 2, whereas the balances of the loans for consumption (mutuums) are adjusted by a rate equivalent to the monthly average yield obtained by CAMMESA from its short-term investments. |
Borrowings | Borrowings are initially recognized at fair value, net of direct costs incurred in the transaction. Subsequently, they are measured at amortized cost; any difference between the funds obtained (net of direct costs incurred in the transaction) and the amount to be paid at maturity is recognized in profit or loss during the term of the borrowings using the effective interest rate method. |
Deferred revenue | Non-refundable customer contributions : The Company receives assets or facilities (or the cash necessary to acquire or built them) from certain customers for services to be provided, based on individual agreements. In accordance with IFRS 15 “Transfers of Assets from Customers”, the assets received are recognized by the Company as Property, plant and equipment with a contra-account in deferred revenue, the accrual of which depends on the nature of the identifiable services, in accordance with the following: · customer connection to the network: revenue is accrued until such connection is completed; · continuous provision of the electric power supply service: throughout the shorter of the useful life of the asset and the term for the provision of the service. |
Employee benefits | · Benefit plans The Company operates various benefit plans. Usually, benefit plans establish the amount of the benefit the employee will receive at the time of retirement, generally based on one or more factors such as age, years of service and salary. The liability recognized in the Statement of Financial Position in respect of benefit plans is the present value of the benefit plan obligation at the closing date of the year, together with the adjustments for past service costs and actuarial gains or losses. The benefit plan obligation is calculated annually by independent actuaries in accordance with the projected unit credit method. The present value of the benefit plan obligation is determined by discounting the estimated future cash outflows using actuarial assumptions about demographic and financial variables that affect the determination of the amount of such benefits. The benefit plans are not funded. The group’s accounting policy for benefit plans is as follow: a. Past service costs are recognized immediately in profit or loss, unless the changes to the benefit plan are conditional on the employees’ remaining in service for a specified period of time (the vesting period). In this case, past service costs are amortized on a straight-line basis over the vesting period. b. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in other comprehensive income in the period in which they arise. · The Company’s Share-based Compensation Plan The Company has share-based compensation plans under which it receives services from some employees in exchange for the Company’s shares. The fair value of the employee services received is recognized as an operating expense in the “Salaries and social security taxes” line item. The total amount of the referred to expense is determined by reference to the fair value of the shares granted. When the employees provide the services before the shares are granted, the fair value at the grant date is estimated in order to recognize the respective result. |
Income tax | The income tax is recognized in profit or loss, other comprehensive income or in equity depending on the items from which it originates. The deferred tax is recognized, in accordance with the liability method, on the temporary differences arising between the tax base of assets and liabilities and their carrying amounts in the statement of financial position. However, no deferred tax liability is recognized if such difference arises from the initial recognition of goodwill, or from the initial recognition of an asset or liability other than in a business combination, which at the time of the transaction affected neither the accounting nor the taxable profit. The deferred tax is determined using the tax rate that is in effect at the date of the financial statements and is expected to apply when the deferred tax assets are realized or the deferred tax liabilities are settled. Deferred tax assets and liabilities are offset if the Company has a legally enforceable right to offset recognized amounts and when deferred tax assets and liabilities relate to income tax levied by the same tax authority on the same taxable entity. Deferred tax assets and liabilities are stated at their undiscounted value. Deferred tax assets are recognized only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilized. |
Leases | The leases in which a significant portion of the risks and rewards of ownership is retained by the assignor are classified as operating. At present, the Company only has leases contracts that are classified as operating. a. Lessee The payments with respect to operating leases are recognized as operating expenses in the Statement of Comprehensive Income on a straight-line basis throughout the term of the assignment. b. Lessor The leases in which the Company does not transfer substantially all the risks and rewards of the ownership of the asset are classified as operating leases. The collections with respect to operating leases are recognized as income in the Statement of Comprehensive Income on a straight-line basis throughout the term of the assignment. |
Provisions and contingencies | Provisions have been recognized in those cases in which the Company is faced with a present obligation, whether legal or constructive, that has arisen as a result of a past event, whose settlement is expected to result in an outflow of resources, and the amount thereof can be estimated reliably. The amount recognized as provisions is the best estimate of the expenditure required to settle the present obligation, at the end of the reporting year, taking into account the corresponding risks and uncertainties. When a provision is measured using the estimated cash flow to settle the present obligation, the carrying amount represents the present value of such cash flow. This present value is obtained by applying a pre-tax discount rate that reflects market conditions, the time value of money and the specific risks of the obligation. The provisions included in liabilities have been recorded to face contingent situations that could result in future payment obligations. To estimate the amount of provisions and the likelihood of an outflow of resources, the opinion of the Company’s legal advisors has been taken into account. |
Balances with related parties | Receivables and payables with related parties are initially recognized at fair value and subsequently measured at amortized cost in accordance with the terms agreed upon by the parties involved. |
5. Financial risk management (T
5. Financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Risk Management Tables Abstract | |
Balances in foreign currency | Currency Amount in foreign currency Exchange rate (1) Total 12.31.18 Total 12.31.17 ASSETS NON-CURRENT ASSETS Other receivables USD 20,416 37.500 765,600 - TOTAL NON-CURRENT ASSETS 20,416 765,600 - CURRENT ASSETS Other receivables USD 3,989 37.500 149,588 - Financial assets at fair value through profit or loss USD 87,621 37.500 3,285,788 1,829,881 Cash and cash equivalents USD 250 37.500 9,375 6,519 EUR - 42.840 - 394 TOTAL CURRENT ASSETS 91,860 3,444,751 1,836,794 TOTAL ASSETS 112,276 4,210,351 1,836,794 LIABILITIES NON-CURRENT LIABILITIES Borrowings USD 190,782 37.700 7,192,467 6,189,294 TOTAL NON-CURRENT LIABILITIES 190,782 7,192,467 6,189,294 CURRENT LIABILITIES Trade payables USD 17,519 37.700 660,459 386,504 EUR 93 43.163 4,014 9,248 CHF 5 38.312 - 15,454 NOK 68 4.346 296 230 Borrowings USD 28,580 37.700 1,077,453 105,139 TOTAL CURRENT LIABILITIES 46,265 1,742,222 516,575 TOTAL LIABILITIES 237,047 8,934,689 6,705,869 (1) The exchange rates used are the BNA exchange rates in effect as of December 31, 2018 for US Dollars (USD), Euros (EUR), Swiss Francs (CHF) and Norwegian Krones (NOK). |
Exposure to currency risk | 12.31.18 12.31.17 Net position Assets/(Liabilities) US dollar (4,720,028) (4,844,537) Euro (4,014) (8,854) Norwegian krone (296) (230) Swiss franc - (15,454) Total (4,724,338) (4,869,075) |
Decrease in results of operations | 12.31.18 12.31.17 Net position Assets/(Liabilities) US dollar (472,003) (484,454) Euro (401) (886) Norwegian krone (30) (24) Swiss franc - (1,546) Decrease in the results of operations for the year (472,434) (486,910) |
Loans according to rate and currency | The table below shows the breakdown of the Company’s loans according to interest rate and the currency in which they are denominated: 12.31.18 12.31.17 Fixed rate: US dollar 6,359,986 4,904,361 Subtotal loans at fixed rates 6,359,986 4,904,361 Floating rate: US dollar 1,909,934 1,390,072 Subtotal loans at floating rates 1,909,934 1,390,072 Total loans 8,269,920 6,294,433 Based on the simulations performed, a 1% increase in floating interest rates, with all the other variables remaining constant, would give rise to the following decrease in the profit for the year: 12.31.18 12.31.17 Floating rate: US dollar (4,241) (3,098) Decrease in the results of operations for the year (4,241) (3,098) Based on the simulations performed, a 1% decrease in floating interest rates, with all the other variables remaining constant, would give rise to the following increase in the profit for the year: 12.31.18 12.31.17 Floating rate: US dollar 4,241 3,098 Increase in the results of operations for the year 4,241 3,098 |
Analysis of non-derivative financial liabilities | No deadline Less than 3 months From 3 months to 1 year From 1 to 2 years From 2 to 5 years More than 5 years Total As of December 31, 2018 Trade and other payables 12,407,373 9,082,933 2,760,794 82,491 99,953 - 24,433,544 Borrowings - - 684,469 684,469 7,676,569 - 9,045,507 Total 12,407,373 9,082,933 3,445,263 766,960 7,776,522 - 33,479,051 As of December 31, 2017 Trade and other payables 8,950,249 5,877,338 8,195,465 135,840 179,584 - 23,338,476 Borrowings - - 499,945 499,945 6,107,012 - 7,106,902 Total 8,950,249 5,877,338 8,695,410 635,785 6,286,596 - 30,445,378 |
Gearing ratios | 12.31.18 12.31.17 Total liabilities 46,023,206 43,088,208 Less: cash and cash equivalents (3,409,158) (4,400,357) Net debt 42,614,048 38,687,851 Total Equity 30,968,972 27,793,719 Total capital attributable to owners 73,583,020 66,481,570 Gearing ratio 57.91% 58.19% |
Financial assets measured at fair value | LEVEL 1 LEVEL 2 LEVEL 3 TOTAL At December 31, 2018 Assets Financial assets at fair value through profit or loss: Government bonds 3,285,799 - - 3,285,799 Money market funds 95,751 - - 95,751 Total assets 3,381,550 - - 3,381,550 Liabilities Derivative financial instruments - 1,035 - 1,035 Total liabilities - 1,035 - 1,035 At December 31, 2017 Assets Financial assets at fair value through profit or loss: Government bonds 1,829,888 - - 1,829,888 Money market funds 2,448,120 - - 2,448,120 Total assets 4,278,008 - - 4,278,008 Liabilities Derivative financial instruments - 291 - 291 Total liabilities - 291 - 291 |
6. Critical accounting estima_2
6. Critical accounting estimates and judgments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Critical Accounting Estimates And Judgments Tables Abstract | |
Loss expected percentage | Number of days 0-30 30-60 60-90 90-120 120-150 +150 Loss expected percentage 8% 12% 19% 26% 59% 69% |
Provisions for impairments | Amount of the provisions for impairment of the trade receivables (458,853) Adjustment of expected losses IFRS 9 (82,041) Amount of the provisions for impairment of the trade receivables (540,894) |
7. Interest in joint venture (T
7. Interest in joint venture (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Interest In Joint Venture Tables Abstract | |
Interest in joint ventures | Percentage interest held Equity attributable to the owners in capital stock and votes 12.31.18 12.31.17 SACME 50.00% 8,844 10,693 |
9. Property, plant and equipm_2
9. Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment | |
Property, plant, and equipment | Lands and buildings Substations High, medium and low voltage lines Meters and Transformer chambers and platforms Tools, Furniture, vehicles, equipment, communications and advances to suppliers Construction in process Supplies and spare parts Total At 12.31.17 Cost 1,376,244 13,471,386 36,429,475 15,047,060 2,506,343 8,717,184 90,712 77,638,404 Accumulated depreciation (205,458) (3,571,659) (11,249,849) (4,638,799) (912,452) - - (20,578,217) Net amount 1,170,786 9,899,727 25,179,626 10,408,261 1,593,891 8,717,184 90,712 57,060,187 Additions 18,746 113,838 380,528 51,465 516,244 7,339,357 129,731 8,549,909 Disposals (36) (2,211) (94,785) (35,870) (440,852) - - (573,754) Transfers 89,250 187,522 1,595,057 710,388 89,483 (2,646,562) (25,138) - Depreciation for the year (73,129) (403,667) (1,171,411) (546,048) (367,244) - - (2,561,499) Net amount 12.31.18 1,205,617 9,795,209 25,889,015 10,588,196 1,391,522 13,409,979 195,305 62,474,843 At 12.31.18 Cost 1,449,399 13,769,111 38,060,451 15,749,070 2,656,570 13,409,979 195,305 85,289,885 Accumulated depreciation (243,782) (3,973,902) (12,171,436) (5,160,874) (1,265,048) - - (22,815,042) Net amount 1,205,617 9,795,209 25,889,015 10,588,196 1,391,522 13,409,979 195,305 62,474,843 Lands and buildings Substations High, medium and low voltage lines Meters and Transformer chambers and platforms Tools, Furniture, vehicles, equipment, communications and advances to suppliers Construction in process Supplies and spare parts Total At 12.31.16 Cost 1,276,109 12,466,805 33,712,884 13,924,981 2,398,833 5,839,187 56,036 69,674,835 Accumulated depreciation (178,241) (3,214,869) (10,386,483) (4,157,929) (842,545) - - (18,780,067) Net amount 1,097,868 9,251,936 23,326,401 9,767,052 1,556,288 5,839,187 56,036 50,894,768 Additions 122,804 680,868 1,456,818 467,268 566,753 5,103,253 85,034 8,482,798 Disposals (765) (7) (35,030) (9,618) (4,404) - - (49,824) Transfers 50,983 323,723 1,357,461 664,134 (240,153) (2,225,256) (50,358) (119,466) Depreciation for the year (100,104) (356,793) (926,024) (480,575) (284,593) - - (2,148,089) Net amount 12.31.17 1,170,786 9,899,727 25,179,626 10,408,261 1,593,891 8,717,184 90,712 57,060,187 At 12.31.17 Cost 1,376,244 13,471,386 36,429,475 15,047,060 2,506,343 8,717,184 90,712 77,638,404 Accumulated depreciation (205,458) (3,571,659) (11,249,849) (4,638,799) (912,452) - - (20,578,217) Net amount 1,170,786 9,899,727 25,179,626 10,408,261 1,593,891 8,717,184 90,712 57,060,187 |
10. Financial instruments (Tabl
10. Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments Tables Abstract | |
Financial instruments by category | Financial assets at amortized cost Financial assets at fair value through profit or loss Non-financial assets Total As of December 31, 2018 Assets Trade receivables 7,587,906 - - 7,587,906 Other receivables 954,407 - 88,451 1,042,858 Cash and cash equivalents Cash and Banks 27,608 - - 27,608 Financial assets at fair value through profit or loss: Government bonds - 3,285,799 - 3,285,799 Derivative financial instruments - - - - Money market funds - 95,751 - 95,751 Financial assets at amortized cost: Time deposits 1,208,770 - - 1,208,770 Total 9,778,691 3,381,550 88,451 13,248,692 As of December 31, 2017 Assets Trade receivables 8,385,237 - - 8,385,237 Other receivables 249,780 88,667 20,448 358,895 Cash and cash equivalents - - Cash and Banks 120,053 - - 120,053 Checks to be deposited 2,296 - - 2,296 Money market funds Financial assets at fair value through profit or loss: Government bonds - 1,829,888 - 1,829,888 Derivative financial instruments - 2,448,120 - 2,448,120 Financial assets at fair value Government bonds 16,978 - - 16,978 Total 8,774,344 4,366,675 20,448 13,161,467 Financial liabilities at amortized cost Financial liabilities at fair value through profit or loss Non-financial liabilities Total As of December 31, 2018 Liabilities Trade payables 14,895,194 - - 14,895,194 Other payables 317,439 - 9,228,745 9,546,184 Borrowings 8,269,920 - - 8,269,920 Total 23,482,553 - 9,228,745 32,711,298 As of December 31, 2017 Liabilities Trade payables 13,933,226 - - 13,933,226 Other payables 490,188 - 8,966,695 9,456,883 Borrowings 6,294,433 - - 6,294,433 Total 20,717,847 - 8,966,695 29,684,542 |
Income, expenses, gains and losses of financial instruments | Financial assets at amortized cost Financial assets at fair value through profit or loss Total As of December 31, 2018 Interest income 671,783 - 671,783 Exchange differences 2,866,396 - 2,866,396 Bank fees and expenses (8,509) - (8,509) Changes in fair value of financial assets - 746,532 746,532 Adjustment to present value (327) - (327) Total 3,529,343 746,532 4,275,875 As of December 31, 2017 Interest income 453,804 - 453,804 Exchange differences 229,100 - 229,100 Bank fees and expenses (2,883) - (2,883) Changes in fair value of financial assets - 474,896 474,896 Adjustment to present value (431) - (431) Total 679,590 474,896 1,154,486 As of December 31, 2016 Interest income 362,558 - 362,558 Exchange differences 178,191 5,830 184,021 Bank fees and expenses (5,928) - (5,928) Changes in fair value of financial assets - 781,486 781,486 Adjustment to present value (485) 5,799 5,314 Total 534,336 793,115 1,327,451 Financial liabilities at amortized cost Financial liabilities at fair value through profit or loss Total As of December 31, 2018 Interest expense (4,968,210) - (4,968,210) Other financial results (86,098) - (86,098) Exchange differences (5,496,362) - (5,496,362) Total (10,550,670) - (10,550,670) As of December 31, 2017 Interest expense (2,567,373) - (2,567,373) Other financial results (78,877) - (78,877) Exchange differences (793,157) - (793,157) Total (3,439,407) - (3,439,407) As of December 31, 2016 Interest expense (2,656,550) - (2,656,550) Other financial results (67,780) - (67,780) Bank fees and expenses 77 - 77 Exchange differences (953,730) - (953,730) Total (3,677,983) - (3,677,983) |
Credit quality of financial assets | 12.31.18 12.31.17 Customers with no external credit rating: Group 1 (i) 6,438,500 7,487,484 Group 2 (ii) 480,237 339,740 Group 3 (iii) 669,169 558,013 Total trade receivables 7,587,906 8,385,237 (i) Relates to customers with debt to become due (ii) Relates to customers with past due debt from 0 to 3 months. (iii) Relates to customers with past due debt from 3 to 12 months. |
11. Other receivables (Tables)
11. Other receivables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Receivables Tables Abstract | |
Other receivables | Note 12.31.18 12.31.17 Non-current: - - Financial credit 30,484 54,661 Related parties 35.d 4,662 8,015 Advances to suppliers 37 765,595 - Total Non-current 800,741 62,676 Current: Prepaid expenses 5,312 7,362 Advances to suppliers 81,440 9,791 Advances to personnel 1,700 3,293 Security deposits 16,695 15,249 Financial credit 58,425 17,159 Receivables from electric activities 98,390 169,157 Related parties 35.d 1,946 1,614 Guarantee deposits on derivative financial - 88,667 Judicial deposits 30,482 23,795 Credit with SBS Bank Company 25,000 - Other 24 2 Allowance for the impairment of other receivables (77,297) (39,870) Total Current 242,117 296,219 |
Roll forward of the allowance for the impairment of other receivables | 12.31.18 12.31.17 12.31.16 Balance at beginning of year 39,870 63,940 32,712 Increase 61,467 - 45,032 Result from exposure to inflation (24,040) (12,704) (13,804) Recovery - (11,366) - Balance at end of the period 77,297 39,870 63,940 |
Aging analysis | 12.31.18 12.31.17 Without expiry date 48,358 39,526 Past due 34,854 129,288 Up to 3 months 130,564 110,759 From 3 to 6 months 20,415 8,418 From 6 to 9 months 4,881 4,198 From 9 to 12 months 3,045 4,030 More than 12 months 800,741 62,676 Total other receivables 1,042,858 358,895 |
12. Trade receivables (Tables)
12. Trade receivables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Trade Receivables Tables Abstract | |
Trade receivables | 12.31.18 12.31.17 Current: Sales of electricity - Billed 4,622,701 4,359,990 Sales of electricity – Unbilled 3,735,956 4,404,135 Framework Agreement 10,377 230,953 Fee payable for the expansion of the transportation and others 22,969 33,952 Receivables in litigation 97,158 33,736 Allowance for the impairment of trade receivables (901,255) (677,529) Total Current 7,587,906 8,385,237 |
Allowance for the impairment of trade receivables | 12.31.18 12.31.17 12.31.16 Balance at beginning of year 677,529 383,439 146,238 Change of accounting standard (Note 6) - Adjustment by model of expected losses IFRS 9 82,041 - - Balance at beginning of year restated 759,570 383,439 146,238 Increase 916,036 391,615 388,339 Decrease (307,137) (64,348) (56,062) Result from exposure to inflation (467,214) (33,177) (95,076) Balance at end of the period 901,255 677,529 383,439 |
Aging analysis of trade receivables | 12.31.18 12.31.17 Not due 10,377 230,953 Past due 1,149,406 897,752 Up to 3 months 6,428,123 7,256,532 Total other receivables 7,587,906 8,385,237 |
Sensitivity analysis | - 5% increase in the uncollectibility rate estimate 12.31.18 Contingencies 946,318 change 45,063 - 5% decrease in the uncollectibility rate estimate 12.31.18 Contingencies 856,192 change (45,063) |
13. Financial assets at fair _2
13. Financial assets at fair value through profit or loss (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Assets At Fair Value Through Profit Or Loss | |
Financial assets at fair value through profit or loss | 12.31.18 12.31.17 Current Government bonds 3,285,799 1,829,888 Money market funds 95,751 2,448,120 Total current 3,381,550 4,278,008 |
14. Financial assets at amort_2
14. Financial assets at amortized cost (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Assets At Amortized Cost Tables Abstract | |
Financial assets at amortized cost | 12.31.18 12.31.17 Non-current Current Government bonds - 16,978 1,208,770 - Total Current 1,208,770 16,978 |
15. Inventories (Tables)
15. Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventories Tables Abstract | |
Inventories | 12.31.18 12.31.17 Current Supplies and spare-parts 1,252,292 589,339 Advance to suppliers 7,507 60,241 Total inventories 1,259,799 649,580 |
16. Cash and cash equivalents (
16. Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash And Cash Equivalents Tables Abstract | |
Cash and cash equivalents | 12.31.18 12.31.17 Cash and banks 27,608 122,349 Total cash and cash equivalents 27,608 122,349 |
17. Share capital and additio_2
17. Share capital and additional paid-in capital (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share Capital And Additional Paidin Capital Tables Abstract | |
Share capital and additional paid-in capital | Share capital Additional paid-in capital Total Balance at December 31, 2016 18,197,583 183,604 18,381,187 Payment of Other reserve constitution - Share-bases compensation plan (Note 25) - 46,317 46,317 Balance at December 31, 2017 18,197,583 229,921 18,427,504 Payment of Other reserve constitution - Share-bases compensation plan (Note 25) - 10,700 10,700 Balance at December 31, 2018 18,197,583 240,621 18,438,204 |
19. Trade payables (Tables)
19. Trade payables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Trade Payables Tables Abstract | |
Trade payables | 12.31.18 12.31.17 Non-current Customer guarantees 140,968 148,349 Customer contributions 112,324 118,095 Funding contributions - substations 32,925 89,262 Total Non-current 286,217 355,706 Current Payables for purchase of electricity - CAMMESA 4,080,310 4,499,302 Provision for unbilled electricity purchases - CAMMESA 7,828,458 6,715,431 Suppliers 2,426,016 1,995,697 Advance to customer 196,485 220,111 Customer contributions 15,288 27,706 Discounts to customers 37,372 55,182 Funding contributions - substations 17,215 12,380 Related parties 35.d 7,833 51,711 Total Current 14,608,977 13,577,520 |
20. Other payables (Tables)
20. Other payables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Payables Tables Abstract | |
Other payables | Note 12.31.18 12.31.17 Non-current Loans (mutuum) with CAMMESA 2,282,176 2,783,474 ENRE penalties and discounts 5,097,402 5,737,612 Liability with FOTAE 207,371 280,813 Payment agreements with ENRE 37,196 108,069 Total Non-current 7,624,145 8,909,968 Current ENRE penalties and discounts 1,835,590 425,563 Related parties 35.d 7,571 7,756 Advances for works to be performed 13,577 20,046 Payment agreements with ENRE 65,301 93,550 Total Current 1,922,039 546,915 |
21. Deferred revenue (Tables)
21. Deferred revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Revenue Tables Abstract | |
Deferred revenue | 12.31.18 12.31.17 Non-current Nonrefundable customer contributions 275,437 287,384 Total Non-current 275,437 287,384 12.31.18 12.31.17 Current Nonrefundable customer contributions 5,346 4,961 Total Current 5,346 4,961 |
22. Borrowings (Tables)
22. Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Borrowings Tables Abstract | |
Borrowings | 12.31.18 12.31.17 Non-current Corporate notes (1) 6,249,967 4,812,465 Borrowing 942,500 1,376,829 Total non-current 7,192,467 6,189,294 Current Interest from corporate notes 110,019 91,896 Borrowing 967,434 13,243 Total current 1,077,453 105,139 (1) Net of debt issuance, repurchase and redemption expenses. |
Borrowings currency denominations | 12.31.18 12.31.17 US dollars 8,269,920 6,294,433 8,269,920 6,294,433 |
Maturities of the Company's borrowings and exposure to interest rate | 12.31.18 12.31.17 Fixed rate Less than 1 year 110,019 91,896 From 2 to 5 years 6,249,967 4,812,465 Total Fixed rate 6,359,986 4,904,361 Variable rate Less than 1 year 967,434 13,244 From 1 to 2 years 942,500 688,414 From 2 to 5 years - 688,414 Total Variable rate 1,909,934 1,390,072 8,269,920 6,294,433 |
Roll forward of the Company's borrowings | 12.31.18 12.31.17 12.31.16 Balance at beginning of the year 6,294,433 5,202,452 6,224,330 Proceeds from borrowings - 1,285,946 - Payment of borrowings' interests (652,667) (418,494) (529,227) Repurchase of Corporate Notes by the trust - - (9,683) Paid from repurchase of Corporate Notes (375,520) - (441,462) Gain from repurchase of Corporate Notes (4,539) - (84) Exchange difference and interest accrued 6,134,425 1,252,327 1,604,325 Result from exposure to inflation (3,126,212) (1,027,798) (1,645,747) Balance at the end of period 8,269,920 6,294,433 5,202,452 |
Debt issued | Million of USD Million of $ Corporate Notes Class Rate Year of Maturity Debt structure at 12.31.17 Debt repurchase Debt structure at 12.31.18 At 12.31.18 Fixed Rate Par Note 9 9.75 2022 171.87 (10.22) 161.65 6,249.78 Total 171.87 (10.22) 161.65 6,249.78 Million of USD Million of $ Corporate Notes Class Rate Year of Maturity Debt structure at 12.31.16 Debt repurchase Debt structure at 12.31.17 At 12.31.17 Fixed Rate Par Note 9 9.75 2022 171.87 - 171.87 3,259.22 Total 171.87 - 171.87 3,259.22 |
23. Salaries and social secur_2
23. Salaries and social security taxes payable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Salaries And Social Security Taxes Payable Tables Abstract | |
Salaries and social security taxes payable | 12.31.18 12.31.17 Non-current Early retirements payable 14,884 4,960 Seniority-based bonus 147,853 171,719 Total non-current 162,737 176,679 Current Salaries payable and provisions 1,581,241 1,571,228 Social security payable 151,137 223,165 Early retirements payable 10,248 7,099 Total current 1,742,626 1,801,492 |
Salaries and social security taxes charged to profit or loss | 12.31.18 12.31.17 12.31.16 Salaries 4,336,533 4,897,440 5,006,596 Social security taxes 1,686,430 1,904,559 1,947,009 Total salaries and social security taxes 6,022,963 6,801,999 6,953,605 |
24. Benefit plans (Tables)
24. Benefit plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Benefit Plans Tables Abstract | |
Benefit plans | 12.31.18 12.31.17 Non-current 385,098 477,765 Current 32,365 46,375 Total Benefit plans 417,463 524,140 |
Benefit payment obligations | 12.31.18 12.31.17 Benefit payment obligations at beginning 524,140 442,170 Current service cost 32,904 42,500 Interest cost 79,304 126,954 Actuarial losses 5,638 (22,219) Result from exposure to inflation for the year (169,169) (8,692) Benefits paid to participating employees (55,354) (56,573) Benefit payment obligations at period end 417,463 524,140 |
Detail of the charge recognized in the Statement of Comprehensive Income | 12.31.18 12.31.17 12.31.16 Cost 32,904 42,500 46,320 Interest 79,304 126,954 163,431 Actuarial results - Other comprehensive loss 5,638 (22,219) (15,555) 117,846 147,235 194,196 |
Actuarial assumptions | 12.31.18 12.31.17 Discount rate 5% 5% Salary increase 1% 1% Inflation 31% 18% |
Benefit plan sensitivity analysis | 12.31.2018 Discount Rate: 4% Obligation 459,651 Variation 42,188 10% Discount Rate: 6% Obligation 381,587 Variation (35,876) (9%) Salary Increase : 0% Obligation 379,992 Variation (37,471) (9%) Salary Increase: 2% Obligation 460,939 Variation 43,476 10% |
Expected payments of benefits | In 2019 In 2020 In 2021 In 2022 In 2023 Between 2022 to 2028 At December 31, 2018 Benefit payment obligations 32,365 6,221 6,207 6,450 2,059 11,128 |
26. Income tax (Tables)
26. Income tax (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Tables Abstract | |
Analysis of deferred tax assets and liabilities | 12.31.17 Result from exposure to inflation Charged to profit and loss Charged to other comprehensive income 12.31.18 Deferred tax assets Inventories 13,454 (9,064) (4,390) - - Trade receivables and other receivables 481,066 (371,025) 335,061 - 445,102 Trade payables and other payables 424,670 757,645 772,447 - 1,954,762 Salaries and social security taxes payable (95,813) 130,428 14,824 - 49,439 Benefit plans 219,113 (128,800) 13,980 1,691 105,984 Tax liabilities 55,897 (43,540) 3,274 - 15,631 Provisions (546,274) 755,078 137,055 - 345,859 Deferred tax asset 605,906 1,036,929 1,272,251 1,691 2,916,777 Deferred tax liabilities: Property, plant and equipment (7,466,457) 903,151 (4,184,856) - (10,748,162) Financial assets at fair value through profit or loss (386,145) 374,867 (201,199) - (212,477) Borrowings (43,454) 37,986 1,022 - (4,446) Deferred tax liability (7,896,056) 1,316,004 (4,385,033) - (10,965,085) Net deferred tax (liabilities) assets (7,290,150) 2,352,933 (3,112,782) 1,691 (8,048,308) 12.31.16 Result from exposure to inflation Charged to profit and loss Charged to other comprehensive income 12.31.17 Deferred tax assets Tax loss carryforward 6,160 (1,988) 49,620 - 53,792 Inventories 7,520 (2,427) 8,361 - 13,454 Trade receivables and other receivables 204,972 (66,156) 342,250 - 481,066 Trade payables and other payables 1,659,011 (535,455) (698,886) - 424,670 Salaries and social security taxes payable 36,176 (11,676) (120,313) - (95,813) Benefit plans 154,759 (49,949) 121,519 (7,216) 219,113 Tax liabilities 23,232 (7,498) 40,163 - 55,897 Provisions 221,846 (71,602) (696,518) - (546,274) Deferred tax asset 2,313,676 (746,751) (953,803) (7,216) 605,906 Deferred tax liabilities: Property, plant and equipment (9,779,890) 3,027,954 (714,521) - (7,466,457) Financial assets at fair value through profit or loss (59,581) 19,230 (345,794) - (386,145) Borrowings (12,424) 4,010 (35,040) - (43,454) Deferred tax liability (9,851,895) 3,051,194 (1,095,355) - (7,896,056) Net deferred tax (liabilities) assets (7,538,219) 2,304,443 (2,049,158) (7,216) (7,290,150) 12.31.18 12.31.17 Deferred tax assets: To be recover in less than 12 moths 2,310,153 669,450 To be recover in more than 12 moths 606,624 1,756,314 Deferred tax asset 2,916,777 2,425,764 Deferred tax liabilities: To be recover in less than 12 moths (1,966,173) (2,740,288) To be recover in more than 12 moths (8,998,912) (6,975,626) Deferred tax liability (10,965,085) (9,715,914) Net deferred tax assets (liabilities) (8,048,308) (7,290,150) |
Income tax expense | 12.31.18 12.31.17 12.31.16 Deferred tax (759,849) 255,285 342,403 Current tax (1,114,384) (760,641) (484,887) Difference between provision and tax return (3,163) (4,700) (4,786) Income tax expense (1,877,396) (510,056) (147,270) 12.31.18 12.31.17 12.31.16 Profit for the year before taxes 6,174,862 5,590,691 388,041 Applicable tax rate 30% 35% 35% Loss for the year at the tax rate (1,852,459) (1,956,742) (135,814) Gain (Loss) from interest in joint ventures 560 (6) (3) Non-taxable income 220,769 115,661 138,040 Gain on net monetary position and others (1,007,010) 902,631 (144,707) Difference between provision and tax return (3,163) (4,700) (4,786) Change in the income tax rate (1) 763,907 433,100 - Income tax expense (1,877,396) (510,056) (147,270) (1) Refers to the effect of applying to deferred tax assets and liabilities the changes in income tax rates in accordance with the previously detailed tax reform on the basis of the year in which they are expected to be realized/settled. |
Income tax provisions | 12.31.18 12.31.17 Current Tax payable 2017 1,114,384 760,641 Total Tax payable 1,114,384 760,641 Tax withholdings (497,058) (71,550) Total current 617,326 689,091 |
27. Tax liabilities (Tables)
27. Tax liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tax Liabilities Tables Abstract | |
Tax liabilities | 12.31.18 12.31.17 Non-current Current Provincial, municipal and federal contributions and taxes 130,445 587,723 VAT payable 412,547 728,173 Tax withholdings 127,121 131,091 SUSS withholdings 7,435 5,190 Municipal taxes 106,117 101,082 Tax regularization plan 380 2,242 Total Current 784,045 1,555,501 |
28. Leases (Tables)
28. Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases Tables Abstract | |
Future minimum payments | 12.31.18 12.31.17 2017 - - 2018 - 124,503 2019 155,454 124,626 2020 138,048 52,194 2021 102,515 4,597 Total future minimum lease payments 396,017 305,920 |
Expenses for operating assignments | 12.31.18 12.31.17 12.31.16 Total lease expenses 125,157 126,098 126,193 |
Future minimum collections | 12.31.18 12.31.17 2017 - - 2018 - 202,143 2019 173,619 193,812 Total future minimum lease collections 173,619 395,955 |
Income from operating assignments | 12.31.18 12.31.17 12.31.16 Total lease income 190,370 212,265 199,431 |
29. Provisions (Tables)
29. Provisions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Provisions Tables Abstract | |
Provisions | Non-current liabilities Current liabilities Contingencies At 12.31.16 504,038 129,808 Increases 411,975 130,389 Decreases (4) (58,930) Result from exposure to inflation for the year (32,890) (10,409) At 12.31.17 883,119 190,858 Increases 472,067 252,030 Decreases (85,662) (239,585) Result from exposure to inflation for the year (199,374) (15,868) At 12.31.18 1,070,150 187,435 |
30. Revenue from sales (Tables)
30. Revenue from sales (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Sales Tables Abstract | |
Revenue from sales | 12.31.18 12.31.17 12.31.16 Sales of electricity 55,689,651 39,329,729 25,576,978 Right of use on poles 190,370 212,265 213,449 Connection charges 51,105 49,369 30,893 Reconnection charges 22,523 11,505 5,439 Total Revenue from sales 55,953,649 39,602,868 25,826,759 |
31. Expenses by nature (Tables)
31. Expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Expenses By Nature Tables Abstract | |
Expenses by nature | Description Transmission and distribution expenses Selling expenses Administrative expenses Total Salaries and social security taxes 4,331,442 777,014 914,507 6,022,963 Pension plans 80,695 14,476 17,037 112,208 Communications expenses 81,110 269,674 16,017 366,801 Allowance for the impairment of trade and other receivables - 977,503 - 977,503 Supplies consumption 790,392 - 122,623 913,015 Leases and insurance 530 - 180,218 180,748 Security service 136,656 2,027 128,699 267,382 Fees and remuneration for services 1,411,812 1,040,164 1,007,152 3,459,128 Public relations and marketing - - 32,246 32,246 Advertising and sponsorship - - 16,612 16,612 Reimbursements to personnel 60 68 498 626 Depreciation of property, plants and 2,014,887 300,255 246,357 2,561,499 Directors and Supervisory Committee - - 21,893 21,893 ENRE penalties (1) 2,064,330 1,052,135 - 3,116,465 Taxes and charges - 598,908 162,549 761,457 Other 808 457 5,719 6,984 At 12.31.18 10,912,722 5,032,681 2,872,127 18,817,530 Description Transmission and distribution expenses Selling expenses Administrative expenses Total Salaries and social security taxes 4,997,823 886,976 917,200 6,801,999 Pension plans 124,507 22,097 22,850 169,454 Communications expenses 55,281 289,371 22,804 367,456 Allowance for the impairment of trade and other receivables - 391,615 - 391,615 Supplies consumption 687,199 - 109,780 796,979 Leases and insurance 653 - 182,024 182,677 Security service 130,263 1,797 141,231 273,291 Fees and remuneration for services 1,081,974 876,612 820,225 2,778,811 Public relations and marketing - - 56,659 56,659 Advertising and sponsorship - - 29,187 29,187 Reimbursements to personnel 89 55 827 971 Depreciation of property, plants and 1,740,231 275,125 132,733 2,148,089 Directors and Supervisory Committee - - 21,429 21,429 ENRE penalties 428,049 428,663 - 856,712 Taxes and charges - 395,263 32,011 427,274 Other 996 264 15,546 16,806 At 12.31.17 9,247,065 3,567,838 2,504,506 15,319,409 (1) Transmission and distribution expenses include recovery for $ 719.8 million net of the charge for the year for $ 1.6 billion. Description Transmission and distribution expenses Selling expenses Administrative expenses Total Salaries and social security taxes 5,104,795 861,097 987,713 6,953,605 Pension plans 142,590 24,053 27,589 194,232 Communications expenses 49,817 251,381 20,318 321,516 Allowance for the impairment of trade and other receivables - 433,371 - 433,371 Supplies consumption 513,318 - 64,249 577,567 Leases and insurance 870 - 173,973 174,843 Security service 134,404 22,855 85,461 242,720 Fees and remuneration for services 897,754 923,607 771,520 2,592,881 Public relations and marketing - - - - Advertising and sponsorship - - - - Reimbursements to personnel 1,821 343 1,520 3,684 Depreciation of property, plants and 1,739,293 301,301 106,647 2,147,241 Directors and Supervisory Committee - - 11,937 11,937 ENRE penalties 4,677,844 367,907 - 5,045,751 Taxes and charges - 193,081 27,088 220,169 Other 1,351 265 10,022 11,638 At 12.31.16 13,263,857 3,379,261 2,288,037 18,931,155 |
32. Other operating expense, _2
32. Other operating expense, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Operating Expense Net Tables Abstract | |
Other operating expense, net | 12.31.18 12.31.17 12.31.16 Other operating income Services provided to third parties 74,522 89,303 120,580 Commissions on municipal taxes collection 77,088 51,358 42,131 Related parties 35 44,303 4,263 921 Income from non-reimbursable customer 5,574 4,372 1,520 Fines to suppliers (1) 76,914 7,811 - Others 43,355 705 6,995 Total other operating income 321,756 157,812 172,147 Other operating expense Gratifications for services (74,266) (80,802) (69,678) Cost for services provided to third parties (52,429) (65,238) (98,328) Severance paid (16,645) (28,353) (31,243) Donations and contributions (6) - - Debit and Credit Tax (594,750) (479,525) (306,892) Other expenses - FOCEDE (31,223) Provision for contingencies (724,097) (542,364) (301,808) Disposals of property, plant and equipment (134,455) (49,824) (244,456) Other (45,918) (14,398) (1,534) Total other operating expense (1,642,566) (1,260,504) (1,085,162) Other operating expense, net (1,320,810) (1,102,692) (913,015) (1) Relates to fines applied to Suppliers for failing to comply with agreed-upon contractual conditions. |
33. Net financial expense (Tabl
33. Net financial expense (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Net Financial Expense Tables Abstract | |
Net financial expense | 12.31.18 12.31.17 12.31.16 Financial income Commercial interest 273,457 177,655 262,536 Financial interest 398,326 276,149 122,057 Total financial income 671,783 453,804 384,593 Financial expenses Interest and other (1,987,092) (819,377) (535,721) Fiscal interest (22,752) (31,153) (18,762) Commercial interest (2,958,366) (1,716,843) (2,028,136) Bank fees and expenses (8,509) (2,883) (6,608) Total financial expenses (4,976,719) (2,570,256) (2,589,227) Other financial results Exchange differences (2,629,966) (564,056) (911,819) Adjustment to present value of receivables (327) (431) 5,749 Changes in fair value of financial assets (1) 746,532 474,896 891,773 Net gain from the repurchase of 4,539 - 90 Other financial expense (86,098) (78,877) (73,096) Total other financial expense (1,965,320) (168,468) (87,303) Total net financial expense (6,270,256) (2,284,920) (2,291,937) (1) Includes changes in the fair value of financial assets on cash equivalents as of December 31, 2018, 2017 and 2016 for $ 43.4 million, $ 37.3 million and $ 39.6 million, respectively. |
34. Basic and diluted earning_2
34. Basic and diluted earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Basic And Diluted Earnings Per Share | |
Basic and diluted earnings per share | 12.31.18 12.31.17 12.31.16 Profit (Loss) for the year attributable to the owners of the Company 4,297,466 5,080,635 240,771 Weighted average number of common shares outstanding 890,492 898,280 897,043 Basic and diluted profit (loss) earnings per share – in pesos 4.83 5.66 0.27 |
35. Related-party transactions
35. Related-party transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related-party Transactions | |
Related party income | Company Concept 12.31.18 12.31.17 12.31.16 CYCSA Other income - - 17,686 PESA Impact study 149 - - Electrical assembly service 11,161 4,263 - SACDE Reimbursement expenses 32,993 - - Transener Reimbursement expenses - 369 Transba Reimbursement expenses - - 553 44,303 4,263 18,608 |
Related party expenses | Company Concept 12.31.18 12.31.17 12.31.16 PESA Technical advisory services on financial matters (86,098) (60,944) (67,642) SACME Operation and oversight of the electric power transmission system (81,698) (68,960) (65,298) Salaverri, Dellatorre, Burgio y Wetzler Malbran Legal fees - (876) (6,365) PYSSA Financial and granting of loan services to customers - - (39) OSV Hiring life insurance for staff (19,521) (18,965) (11,474) ABELOVICH, POLANO & ASOC. Legal fees (1,310) (712) - (188,627) (150,457) (149,891) |
Key Management personnel's remuneration | 12.31.18 12.31.17 12.31.16 Salaries 194,040 250,646 229,206 194,040 250,646 229,206 |
Related party receivables and payables | 12.31.18 12.31.17 Other receivables - Non current SACME 4,662 8,015 4,662 8,015 Other receivables - Current SACME 766 1131 PESA 1,180 483 1,946 1,614 |
1. General information (Details
1. General information (Details Narrative) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
General Information Details Narrative Abstract | |||
Comprehensive profit for the year | $ 4,293,519 | $ 5,095,638 | $ 250,134 |
Working capital | $ (7,300,000) |
2. Regulatory framework (Detail
2. Regulatory framework (Details Narrative) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Regulatory Framework Details Narrative Abstract | |||
Income recognition on account of the RTI - SE Resolution | $ 0 | $ 0 | $ 958,289 |
Higher cost recognition - SE Resolution and subsequent Notes | $ 0 | $ 0 | $ 185,436 |
4. Accounting policies (Detail
4. Accounting policies (Detail Narrative) | 12 Months Ended |
Dec. 31, 2018 | |
Land | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Estimated useful lives | Not depreciated |
Facilities in service | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Estimated useful lives | Between 30 and 50 years |
Furniture, tools and equipment | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Estimated useful lives | Between 5 and 20 years |
5. Financial risk management (D
5. Financial risk management (Details) € in Thousands, kr in Thousands, SFr in Thousands, $ in Thousands, $ in Thousands | Dec. 31, 2018ARS ($)$ / $$ / €$ / SFr$ / kr | Dec. 31, 2018USD ($)$ / $$ / €$ / SFr$ / kr | Dec. 31, 2018EUR (€)$ / $$ / €$ / SFr$ / kr | Dec. 31, 2018CHF (SFr)$ / $$ / €$ / SFr$ / kr | Dec. 31, 2018NOK (kr)$ / $$ / €$ / SFr$ / kr | Dec. 31, 2017ARS ($)$ / $ | Dec. 31, 2017USD ($)$ / $ | Dec. 31, 2017EUR (€)$ / $ | Dec. 31, 2017CHF (SFr)$ / $ | Dec. 31, 2017NOK (kr)$ / $ | |
SummaryOfFinancialRiskManagementLineItems [Line Items] | |||||||||||
Exchange rate | $ / $ | 37.70 | 37.70 | 37.70 | 37.70 | 37.70 | 18.65 | 18.65 | 18.65 | 18.65 | 18.65 | |
Noncurrent Assets | |||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | |||||||||||
Amount of foreign currency | $ 20,416 | ||||||||||
Foreign currency balance assets | $ 765,600 | $ 0 | |||||||||
Noncurrent Assets | Other receivables | |||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | |||||||||||
Amount of foreign currency | $ 20,416 | ||||||||||
Exchange rate | $ / $ | [1] | 37.5 | 37.5 | 37.5 | 37.5 | 37.5 | |||||
Foreign currency balance assets | $ 765,600 | $ 0 | |||||||||
Current Assets | |||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | |||||||||||
Amount of foreign currency | $ 91,860 | ||||||||||
Foreign currency balance assets | $ 3,444,751 | 1,836,794 | |||||||||
Current Assets | Other receivables | |||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | |||||||||||
Amount of foreign currency | $ 3,989 | ||||||||||
Exchange rate | $ / $ | [1] | 37.5 | 37.5 | 37.5 | 37.5 | 37.5 | |||||
Foreign currency balance assets | $ 149,588 | 0 | |||||||||
Current Assets | Financial assets at fair value through profit or loss | |||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | |||||||||||
Amount of foreign currency | $ 87,621 | ||||||||||
Exchange rate | $ / $ | [1] | 37.5 | 37.5 | 37.5 | 37.5 | 37.5 | |||||
Foreign currency balance assets | $ 3,285,788 | 1,829,881 | |||||||||
Current Assets | Cash and cash equivalents | |||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | |||||||||||
Amount of foreign currency | $ 250 | ||||||||||
Exchange rate | $ / $ | [1] | 37.5 | 37.5 | 37.5 | 37.5 | 37.5 | |||||
Foreign currency balance assets | $ 9,375 | 6,519 | |||||||||
Current Assets | Cash and cash equivalents | |||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | |||||||||||
Amount of foreign currency | € | € 0 | ||||||||||
Exchange rate | $ / € | [1] | 42.84 | 42.84 | 42.84 | 42.84 | 42.84 | |||||
Foreign currency balance assets | € | € 0 | ||||||||||
Current Assets | Cash and cash equivalents | |||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | |||||||||||
Foreign currency balance assets | € | € 394 | ||||||||||
Total Assets | |||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | |||||||||||
Amount of foreign currency | $ 112,276 | ||||||||||
Foreign currency balance assets | 4,210,351 | 1,836,794 | |||||||||
Non-current liabilities | |||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | |||||||||||
Amount of foreign currency | 190,782 | ||||||||||
Foreign currency balance liabilities | $ 7,192,467 | 6,189,294 | |||||||||
Non-current liabilities | Borrowings | |||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | |||||||||||
Amount of foreign currency | $ 190,782 | ||||||||||
Exchange rate | $ / $ | [1] | 37.7 | 37.7 | 37.7 | 37.7 | 37.7 | |||||
Foreign currency balance liabilities | $ 7,192,467 | 6,189,294 | |||||||||
Current liabilities | |||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | |||||||||||
Amount of foreign currency | $ 46,265 | ||||||||||
Foreign currency balance liabilities | $ 1,742,222 | 516,575 | |||||||||
Current liabilities | Borrowings | |||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | |||||||||||
Amount of foreign currency | $ 28,580 | ||||||||||
Exchange rate | $ / $ | [1] | 37.7 | 37.7 | 37.7 | 37.7 | 37.7 | |||||
Foreign currency balance liabilities | $ 1,077,453 | 105,139 | |||||||||
Current liabilities | Trade payables | |||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | |||||||||||
Amount of foreign currency | $ 17,519 | ||||||||||
Exchange rate | $ / $ | [1] | 37.7 | 37.7 | 37.7 | 37.7 | 37.7 | |||||
Foreign currency balance liabilities | $ 660,459 | $ 386,504 | |||||||||
Current liabilities | Trade payables | |||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | |||||||||||
Amount of foreign currency | € | € 93 | ||||||||||
Exchange rate | $ / € | [1] | 43.163 | 43.163 | 43.163 | 43.163 | 43.163 | |||||
Foreign currency balance liabilities | € | € 4,014 | € 9,248 | |||||||||
Current liabilities | Trade payables | |||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | |||||||||||
Amount of foreign currency | SFr | SFr 5 | ||||||||||
Exchange rate | $ / SFr | [1] | 38.312 | 38.312 | 38.312 | 38.312 | 38.312 | |||||
Foreign currency balance liabilities | SFr | SFr 0 | SFr 15,454 | |||||||||
Current liabilities | Trade payables | |||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | |||||||||||
Amount of foreign currency | kr | kr 68 | ||||||||||
Exchange rate | $ / kr | [1] | 4.346 | 4.346 | 4.346 | 4.346 | 4.346 | |||||
Foreign currency balance liabilities | kr | kr 296 | kr 230 | |||||||||
Total Liabilities | |||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | |||||||||||
Amount of foreign currency | $ 237,047 | ||||||||||
Foreign currency balance liabilities | $ 8,934,689 | $ 6,705,869 | |||||||||
[1] | The exchange rates used are the BNA exchange rates in effect as of December 31, 2018 for US Dollars (U.S.$.), Euros (EUR), Swiss Francs (CHF) and Norwegian Krones (NOK). |
5. Financial risk management _2
5. Financial risk management (Details 1) € in Thousands, kr in Thousands, SFr in Thousands, $ in Thousands, $ in Thousands | 12 Months Ended | |||||||||
Dec. 31, 2018ARS ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018CHF (SFr) | Dec. 31, 2018NOK (kr) | Dec. 31, 2017ARS ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017CHF (SFr) | Dec. 31, 2017NOK (kr) | |
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||||||||||
Net position Asset/(Liabilities) | $ (4,724,338) | $ (4,869,075) | ||||||||
US dollar | ||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||||||||||
Net position Asset/(Liabilities) | $ (4,720,028) | $ (4,844,537) | ||||||||
Euro | ||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||||||||||
Net position Asset/(Liabilities) | € | € (4,014) | € (8,854) | ||||||||
Norwegian krone | ||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||||||||||
Net position Asset/(Liabilities) | kr | kr (296) | kr (230) | ||||||||
Swiss franc | ||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||||||||||
Net position Asset/(Liabilities) | SFr | SFr 0 | SFr (15,454) |
5. Financial risk management _3
5. Financial risk management (Details 2) € in Thousands, kr in Thousands, SFr in Thousands, $ in Thousands, $ in Thousands | 12 Months Ended | |||||||||
Dec. 31, 2018ARS ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018CHF (SFr) | Dec. 31, 2018NOK (kr) | Dec. 31, 2017ARS ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017CHF (SFr) | Dec. 31, 2017NOK (kr) | |
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||||||||||
Decrease in the results of operations for the year | $ (472,434) | $ (486,910) | ||||||||
US dollar | ||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||||||||||
Decrease in the results of operations for the year | $ (472,003) | $ (484,454) | ||||||||
Euro | ||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||||||||||
Decrease in the results of operations for the year | € | € (401) | € (886) | ||||||||
Norwegian krone | ||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||||||||||
Decrease in the results of operations for the year | kr | kr (30) | kr (24) | ||||||||
Swiss franc | ||||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||||||||||
Decrease in the results of operations for the year | SFr | SFr 0 | SFr (1,546) |
5. Financial risk management _4
5. Financial risk management (Details 3) $ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2018ARS ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017ARS ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016ARS ($) | Dec. 31, 2015ARS ($) | |
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||||||||
Total loans | $ 8,269,920 | $ 6,294,433 | $ 5,202,452 | $ 6,224,330 | ||||
Decrease in the profit (loss) due to a 1% increase in floating interest rates | (4,241) | (2,098) | ||||||
Increase in the profit (loss) due to a 1% decrease in floating interest rates | 4,241 | 2,098 | ||||||
US dollar | ||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||||||||
Total loans | $ 8,269,920 | $ 6,294,433 | ||||||
Fixed Rate | ||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||||||||
Total loans | 6,359,798 | 4,904,361 | ||||||
Fixed Rate | US dollar | ||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||||||||
Total loans | 6,359,798 | 4,904,361 | ||||||
Floating Rate | ||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||||||||
Total loans | $ 1,910,122 | $ 1,390,072 | ||||||
Floating Rate | US dollar | ||||||||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||||||||
Total loans | $ 1,910,122 | $ 1,390,072 | ||||||
Decrease in the profit (loss) due to a 1% increase in floating interest rates | $ (4,241) | $ (2,098) | ||||||
Increase in the profit (loss) due to a 1% decrease in floating interest rates | $ 4,241 | $ 2,098 |
5. Financial risk management _5
5. Financial risk management (Details 4) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Non-derivative financial liabilities | $ 33,479,051 | $ 30,445,378 |
No deadline | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Non-derivative financial liabilities | 12,407,373 | 8,950,249 |
Less than 3 months | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Non-derivative financial liabilities | 910,948 | 5,877,338 |
From 3 months to 1 year | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Non-derivative financial liabilities | 3,417,248 | 8,695,410 |
From 1 to 2 years | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Non-derivative financial liabilities | 766,960 | 635,785 |
From 2 to 5 years | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Non-derivative financial liabilities | 7,776,522 | 6,286,596 |
More than 5 years | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Non-derivative financial liabilities | 0 | 0 |
Trade and other payables | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Non-derivative financial liabilities | 24,433,544 | 23,338,476 |
Trade and other payables | No deadline | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Non-derivative financial liabilities | 12,407,373 | 8,950,249 |
Trade and other payables | Less than 3 months | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Non-derivative financial liabilities | 9,110,948 | 5,877,338 |
Trade and other payables | From 3 months to 1 year | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Non-derivative financial liabilities | 2,732,779 | 8,195,465 |
Trade and other payables | From 1 to 2 years | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Non-derivative financial liabilities | 82,491 | 135,840 |
Trade and other payables | From 2 to 5 years | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Non-derivative financial liabilities | 99,953 | 179,584 |
Trade and other payables | More than 5 years | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Non-derivative financial liabilities | 0 | 0 |
Borrowings | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Non-derivative financial liabilities | 9,045,507 | 7,106,902 |
Borrowings | No deadline | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Non-derivative financial liabilities | 0 | 0 |
Borrowings | Less than 3 months | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Non-derivative financial liabilities | 0 | 0 |
Borrowings | From 3 months to 1 year | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Non-derivative financial liabilities | 684,469 | 499,945 |
Borrowings | From 1 to 2 years | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Non-derivative financial liabilities | 684,469 | 499,945 |
Borrowings | From 2 to 5 years | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Non-derivative financial liabilities | 7,676,569 | 6,107,012 |
Borrowings | More than 5 years | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Non-derivative financial liabilities | $ 0 | $ 0 |
5. Financial risk management _6
5. Financial risk management (Details 5) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financial Risk Management Details 5Abstract | ||||
Liabilities | $ 46,023,206 | $ 43,088,208 | ||
Less: cash and cash equivalents | (3,409,158) | (4,400,357) | ||
Net debt | 42,614,048 | 38,687,851 | ||
Total Equity | 30,968,972 | 27,793,719 | $ 22,684,597 | $ 22,401,630 |
Total capital attributable to owners | $ 73,583,020 | $ 66,481,570 | ||
Gearing ratio | 57.91% | 58.19% |
5. Financial risk management _7
5. Financial risk management (Details 6) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Assets | $ 3,381,550 | $ 4,278,008 |
Liabilities | 1,035 | 291 |
Derivative financial instruments | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Liabilities | 1,035 | 291 |
Level 1 | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Assets | 3,381,550 | 4,278,008 |
Liabilities | 0 | 0 |
Level 1 | Derivative financial instruments | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Liabilities | 0 | 0 |
Level 2 | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 1,035 | 291 |
Level 2 | Derivative financial instruments | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Liabilities | 1,035 | 291 |
Level 3 | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Level 3 | Derivative financial instruments | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Liabilities | 0 | 0 |
Government bonds | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Assets | 3,285,799 | 1,829,888 |
Government bonds | Level 1 | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Assets | 3,285,799 | 1,829,888 |
Government bonds | Level 2 | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Assets | 0 | 0 |
Government bonds | Level 3 | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Assets | 0 | 0 |
Money market funds | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Assets | 95,751 | 2,448,120 |
Money market funds | Level 1 | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Assets | 95,751 | 2,448,120 |
Money market funds | Level 2 | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Assets | 0 | 0 |
Money market funds | Level 3 | ||
SummaryOfFinancialRiskManagementLineItems [Line Items] | ||
Assets | $ 0 | $ 0 |
5. Financial risk management _8
5. Financial risk management (Details Narrative) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018ARS ($)$ / $ | Dec. 31, 2017ARS ($)$ / $ | |
Financial Risk Management Details Narrative Abstract | ||
Exchange rate | $ / $ | 37.70 | 18.65 |
Delinquent trade receivables | $ 2,000,000 | $ 1,500,000 |
Allowances | 901,300 | 677,500 |
Financial assets | 3,400,000 | 4,300,000 |
Receivables related to customers | $ 10,400 | $ 231,000 |
6. Critical accounting estima_3
6. Critical accounting estimates and judgments (Details) | 12 Months Ended |
Dec. 31, 2018 | |
0 - 30 days | |
DisclosureOfCriticalAccountingEstimatesAndJudgmentsLineItems [Line Items] | |
Loss expected percentage | 8.00% |
30 - 60 days | |
DisclosureOfCriticalAccountingEstimatesAndJudgmentsLineItems [Line Items] | |
Loss expected percentage | 12.00% |
60 - 90 days | |
DisclosureOfCriticalAccountingEstimatesAndJudgmentsLineItems [Line Items] | |
Loss expected percentage | 19.00% |
90 - 120 days | |
DisclosureOfCriticalAccountingEstimatesAndJudgmentsLineItems [Line Items] | |
Loss expected percentage | 26.00% |
120 - 150 days | |
DisclosureOfCriticalAccountingEstimatesAndJudgmentsLineItems [Line Items] | |
Loss expected percentage | 59.00% |
+ 150 days | |
DisclosureOfCriticalAccountingEstimatesAndJudgmentsLineItems [Line Items] | |
Loss expected percentage | 69.00% |
6. Critical accounting estima_4
6. Critical accounting estimates and judgments (Details 1) $ in Thousands | 12 Months Ended |
Dec. 31, 2017ARS ($) | |
Critical Accounting Estimates And Judgments Details Abstract | |
Amount of the provisions for impairment of the trade receivables by IAS 39 | $ (458,853) |
Adjustment of expected losses IFRS 9 | (82,041) |
Amount of the provisions for impairment of the trade receivables by IAS 39 | $ (540,894) |
7. Interest in joint venture (D
7. Interest in joint venture (Details) - ARS ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
SummaryOfInterestsInJointVenturesLineItems [Line Items] | ||
Equity attributable to the owners | $ 8,844 | $ 10,693 |
SACME | ||
SummaryOfInterestsInJointVenturesLineItems [Line Items] | ||
Percentage interest held in capital stock and votes | 50.00% | |
Equity attributable to the owners | $ 8,844 | $ 10,693 |
8. Contingent liabilities (Deta
8. Contingent liabilities (Details Narrative) $ in Thousands | Dec. 31, 2018ARS ($) |
Contingent Liabilities Details Narrative Abstract | |
Legal provision | $ 1,300,000 |
9. Property, plant and equipm_3
9. Property, plant and equipment (Details) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SummaryOfPropertyPlantAndEquipmentLineItems [Line Items] | |||
Cost | $ 85,289,885 | $ 77,638,404 | $ 69,674,835 |
Accumlated depreciation | (22,815,042) | (20,578,217) | (18,780,067) |
Property, plant, and equipment, beginning | 57,060,187 | 50,894,768 | |
Additions | 8,549,909 | 8,482,798 | |
Disposals | (573,754) | (49,824) | |
Transfers | 0 | (119,466) | |
Depreciation for the period | (2,561,499) | (2,148,089) | (2,147,241) |
Property, plant, and equipment, ending | 62,474,843 | 57,060,187 | 50,894,768 |
Lands and buildings | |||
SummaryOfPropertyPlantAndEquipmentLineItems [Line Items] | |||
Cost | 1,449,399 | 1,376,244 | 1,276,109 |
Accumlated depreciation | (243,782) | (205,458) | (178,241) |
Property, plant, and equipment, beginning | 1,170,786 | 1,097,868 | |
Additions | 18,746 | 122,804 | |
Disposals | (36) | (765) | |
Transfers | 89,250 | 50,983 | |
Depreciation for the period | (73,129) | (100,104) | |
Property, plant, and equipment, ending | 1,205,617 | 1,170,786 | 1,097,868 |
Substations | |||
SummaryOfPropertyPlantAndEquipmentLineItems [Line Items] | |||
Cost | 13,769,111 | 13,471,386 | 12,466,805 |
Accumlated depreciation | (3,973,902) | (3,571,659) | (3,214,869) |
Property, plant, and equipment, beginning | 9,899,727 | 9,251,936 | |
Additions | 113,838 | 680,868 | |
Disposals | (2,211) | (7) | |
Transfers | 187,522 | 323,723 | |
Depreciation for the period | (403,667) | (356,793) | |
Property, plant, and equipment, ending | 9,795,209 | 9,899,727 | 9,251,936 |
Voltage lines | |||
SummaryOfPropertyPlantAndEquipmentLineItems [Line Items] | |||
Cost | 38,060,451 | 36,429,475 | 33,712,884 |
Accumlated depreciation | (12,171,436) | (11,249,849) | (10,386,483) |
Property, plant, and equipment, beginning | 25,179,626 | 23,326,401 | |
Additions | 380,528 | 1,456,818 | |
Disposals | (94,785) | (35,030) | |
Transfers | 1,595,057 | 1,357,461 | |
Depreciation for the period | (1,171,411) | (926,024) | |
Property, plant, and equipment, ending | 25,889,015 | 25,179,626 | 23,326,401 |
Meters and Transformer chambers and platforms | |||
SummaryOfPropertyPlantAndEquipmentLineItems [Line Items] | |||
Cost | 15,749,070 | 15,047,060 | 13,924,981 |
Accumlated depreciation | (5,160,874) | (4,638,799) | (4,157,929) |
Property, plant, and equipment, beginning | 10,408,261 | 9,767,052 | |
Additions | 51,465 | 467,268 | |
Disposals | (35,870) | (9,618) | |
Transfers | 710,388 | 664,134 | |
Depreciation for the period | (546,048) | (480,575) | |
Property, plant, and equipment, ending | 10,588,196 | 10,408,261 | 9,767,052 |
Tools, Furniture, vehicles, equipment, communications and advances to suppliers | |||
SummaryOfPropertyPlantAndEquipmentLineItems [Line Items] | |||
Cost | 2,656,570 | 2,506,343 | 2,398,833 |
Accumlated depreciation | (1,265,048) | (912,452) | (842,545) |
Property, plant, and equipment, beginning | 1,593,891 | 1,556,288 | |
Additions | 516,244 | 566,753 | |
Disposals | (440,852) | (4,404) | |
Transfers | 89,483 | (240,153) | |
Depreciation for the period | (367,244) | (284,593) | |
Property, plant, and equipment, ending | 1,391,522 | 1,593,891 | 1,556,288 |
Construction in process | |||
SummaryOfPropertyPlantAndEquipmentLineItems [Line Items] | |||
Cost | 13,409,979 | 8,717,184 | 5,839,187 |
Accumlated depreciation | 0 | 0 | 0 |
Property, plant, and equipment, beginning | 8,717,184 | 5,839,187 | |
Additions | 7,339,357 | 5,103,253 | |
Disposals | 0 | 0 | |
Transfers | (2,646,562) | (2,225,256) | |
Depreciation for the period | 0 | 0 | |
Property, plant, and equipment, ending | 13,409,979 | 8,717,184 | 5,839,187 |
Supplies and spare parts | |||
SummaryOfPropertyPlantAndEquipmentLineItems [Line Items] | |||
Cost | 195,305 | 90,712 | 56,036 |
Accumlated depreciation | 0 | 0 | 0 |
Property, plant, and equipment, beginning | 90,712 | 56,036 | |
Additions | 129,731 | 85,034 | |
Disposals | 0 | 0 | |
Transfers | (25,138) | (50,358) | |
Depreciation for the period | 0 | 0 | |
Property, plant, and equipment, ending | $ 195,305 | $ 90,712 | $ 56,036 |
9. Property, plant and equipm_4
9. Property, plant and equipment (Details Narrative) - ARS ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment Details Narrative Abstract | ||
Direct costs | $ 1,000,000 | $ 869,700 |
10. Financial instruments (Deta
10. Financial instruments (Details) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SummaryOfFinancialInstrumentsLineItems [Line Items] | ||
Financial assets at amortized cost | $ 8,774,344 | |
Financial assets at fair value through profit or loss | $ 3,381,550 | 4,366,675 |
Non-financial assets | 20,448 | |
Financial instruments | 13,161,467 | |
Trade receivables | ||
SummaryOfFinancialInstrumentsLineItems [Line Items] | ||
Financial assets at amortized cost | 7,587,906 | 8,385,237 |
Financial assets at fair value through profit or loss | 0 | 0 |
Non-financial assets | 0 | 0 |
Financial instruments | 7,587,906 | 8,385,237 |
Other receivables | ||
SummaryOfFinancialInstrumentsLineItems [Line Items] | ||
Financial assets at amortized cost | 954,407 | 249,780 |
Financial assets at fair value through profit or loss | 0 | 88,667 |
Non-financial assets | 88,451 | 20,448 |
Financial instruments | 1,042,858 | 358,895 |
Cash and banks | ||
SummaryOfFinancialInstrumentsLineItems [Line Items] | ||
Financial assets at amortized cost | 27,608 | 120,053 |
Financial assets at fair value through profit or loss | 0 | 0 |
Non-financial assets | 0 | 0 |
Financial instruments | 27,608 | 120,053 |
Checks to be deposited | ||
SummaryOfFinancialInstrumentsLineItems [Line Items] | ||
Financial assets at amortized cost | 2,296 | |
Financial assets at fair value through profit or loss | 0 | |
Non-financial assets | 0 | |
Financial instruments | 2,296 | |
Government bonds - fair value | ||
SummaryOfFinancialInstrumentsLineItems [Line Items] | ||
Financial assets at amortized cost | 0 | 0 |
Financial assets at fair value through profit or loss | 3,285,799 | 1,829,888 |
Non-financial assets | 0 | 0 |
Financial instruments | 3,285,799 | 1,829,888 |
Derivative financial instruments | ||
SummaryOfFinancialInstrumentsLineItems [Line Items] | ||
Financial assets at amortized cost | 0 | 0 |
Financial assets at fair value through profit or loss | 0 | 2,448,120 |
Non-financial assets | 0 | 0 |
Financial instruments | 0 | 2,448,120 |
Money market funds | ||
SummaryOfFinancialInstrumentsLineItems [Line Items] | ||
Financial assets at amortized cost | 0 | |
Financial assets at fair value through profit or loss | 95,751 | |
Non-financial assets | 0 | |
Financial instruments | $ 95,751 | |
Government bonds - amortized cost | ||
SummaryOfFinancialInstrumentsLineItems [Line Items] | ||
Financial assets at amortized cost | 16,978 | |
Financial assets at fair value through profit or loss | 0 | |
Non-financial assets | 0 | |
Financial instruments | $ 16,978 |
10. Financial instruments (De_2
10. Financial instruments (Details 1) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SummaryOfFinancialInstrumentsLineItems [Line Items] | ||
Financial liabilities at amortized cost | $ 23,482,553 | $ 20,717,847 |
Financial liabilities at fair value through profit or loss | 0 | 0 |
Non-financial liabilities | 9,228,745 | 8,966,695 |
Financial liabilities | 32,711,298 | 29,684,542 |
Trade payables | ||
SummaryOfFinancialInstrumentsLineItems [Line Items] | ||
Financial liabilities at amortized cost | 14,895,194 | 13,933,226 |
Financial liabilities at fair value through profit or loss | 0 | 0 |
Non-financial liabilities | 0 | 0 |
Financial liabilities | 14,895,194 | 13,933,226 |
Other payables | ||
SummaryOfFinancialInstrumentsLineItems [Line Items] | ||
Financial liabilities at amortized cost | 317,439 | 490,188 |
Financial liabilities at fair value through profit or loss | 0 | 0 |
Non-financial liabilities | 9,228,745 | 8,966,695 |
Financial liabilities | 9,546,184 | 9,456,883 |
Borrowings | ||
SummaryOfFinancialInstrumentsLineItems [Line Items] | ||
Financial liabilities at amortized cost | 8,269,920 | 6,294,433 |
Financial liabilities at fair value through profit or loss | 0 | 0 |
Non-financial liabilities | 0 | 0 |
Financial liabilities | $ 8,269,920 | $ 6,294,433 |
10. Financial instruments (De_3
10. Financial instruments (Details 2) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
SummaryOfFinancialInstrumentsLineItems [Line Items] | |||
Financial assets at amortized cost | $ 8,774,344 | ||
Financial assets at fair value through profit or loss | $ 3,381,550 | 4,366,675 | |
Financial instruments | 13,161,467 | ||
Interest income | |||
SummaryOfFinancialInstrumentsLineItems [Line Items] | |||
Financial assets at amortized cost | 671,783 | 453,804 | $ 362,558 |
Financial assets at fair value through profit or loss | 0 | 0 | 0 |
Financial instruments | 671,783 | 453,804 | 362,558 |
Exchange differences | |||
SummaryOfFinancialInstrumentsLineItems [Line Items] | |||
Financial assets at amortized cost | 2,866,396 | 229,100 | 178,191 |
Financial assets at fair value through profit or loss | 0 | 0 | 5,830 |
Financial instruments | 2,866,396 | 229,100 | 184,021 |
Bank fees and expenses | |||
SummaryOfFinancialInstrumentsLineItems [Line Items] | |||
Financial assets at amortized cost | (8,509) | (2,883) | (5,928) |
Financial assets at fair value through profit or loss | 0 | 0 | 0 |
Financial instruments | (8,509) | (2,883) | (5,928) |
Changes in fair value of financial assets | |||
SummaryOfFinancialInstrumentsLineItems [Line Items] | |||
Financial assets at amortized cost | 0 | 0 | 0 |
Financial assets at fair value through profit or loss | 746,532 | 474,896 | 781,486 |
Financial instruments | 746,532 | 474,896 | 781,486 |
Adjustment to present value | |||
SummaryOfFinancialInstrumentsLineItems [Line Items] | |||
Financial assets at amortized cost | (327) | (431) | (485) |
Financial assets at fair value through profit or loss | 0 | 0 | 5,799 |
Financial instruments | (327) | (431) | 5,314 |
Total | |||
SummaryOfFinancialInstrumentsLineItems [Line Items] | |||
Financial assets at amortized cost | 3,529,343 | 679,590 | 534,336 |
Financial assets at fair value through profit or loss | 746,532 | 474,896 | 793,115 |
Financial instruments | $ 4,275,875 | $ 1,154,486 | $ 1,327,451 |
10. Financial instruments (De_4
10. Financial instruments (Details 3) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
SummaryOfFinancialInstrumentsLineItems [Line Items] | |||
Financial liabilities at amortized cost | $ 23,482,553 | $ 20,717,847 | |
Financial liabilities at fair value through profit or loss | 0 | 0 | |
Financial liabilities | 32,711,298 | 29,684,542 | |
Interest expense | |||
SummaryOfFinancialInstrumentsLineItems [Line Items] | |||
Financial liabilities at amortized cost | (4,968,210) | (2,567,373) | $ (2,656,550) |
Financial liabilities at fair value through profit or loss | 0 | 0 | 0 |
Financial liabilities | (4,968,210) | (2,567,373) | (2,656,550) |
Other financial results | |||
SummaryOfFinancialInstrumentsLineItems [Line Items] | |||
Financial liabilities at amortized cost | (86,098) | (78,877) | (67,780) |
Financial liabilities at fair value through profit or loss | 0 | 0 | 0 |
Financial liabilities | (86,098) | (78,877) | (67,780) |
Exchange differences | |||
SummaryOfFinancialInstrumentsLineItems [Line Items] | |||
Financial liabilities at amortized cost | (5,496,362) | (793,157) | (953,730) |
Financial liabilities at fair value through profit or loss | 0 | 0 | 0 |
Financial liabilities | (5,496,362) | (793,157) | (953,730) |
Total | |||
SummaryOfFinancialInstrumentsLineItems [Line Items] | |||
Financial liabilities at amortized cost | (10,550,670) | (3,439,407) | (3,677,983) |
Financial liabilities at fair value through profit or loss | 0 | 0 | 0 |
Financial liabilities | $ (10,550,670) | $ (3,439,407) | (3,677,983) |
Bank fees and expenses | |||
SummaryOfFinancialInstrumentsLineItems [Line Items] | |||
Financial liabilities at amortized cost | 77 | ||
Financial liabilities at fair value through profit or loss | 0 | ||
Financial liabilities | $ 77 |
10. Financial instruments (De_5
10. Financial instruments (Details 4) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
SummaryOfFinancialInstrumentsLineItems [Line Items] | |||
Trade receivables | $ 7,587,906 | $ 8,385,237 | |
Group 1 | |||
SummaryOfFinancialInstrumentsLineItems [Line Items] | |||
Trade receivables | [1] | 6,438,500 | 7,487,484 |
Group 2 | |||
SummaryOfFinancialInstrumentsLineItems [Line Items] | |||
Trade receivables | [2] | 480,237 | 339,740 |
Group 3 | |||
SummaryOfFinancialInstrumentsLineItems [Line Items] | |||
Trade receivables | [3] | $ 669,169 | $ 558,013 |
[1] | Relates to customers with debt to become due. | ||
[2] | Relates to customers with past due debt from 0 to 3 months. | ||
[3] | Relates to customers with past due debt from 3 to 12 months. |
11. Other receivables (Details)
11. Other receivables (Details) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SummaryOfOtherReceivablesLineItems [Line Items] | ||
Non-current other receivables | $ 800,741 | $ 62,676 |
Current other receivables | 242,117 | 296,219 |
Financial credit | ||
SummaryOfOtherReceivablesLineItems [Line Items] | ||
Non-current other receivables | 30,484 | 54,661 |
Current other receivables | 58,425 | 17,159 |
Related parties | ||
SummaryOfOtherReceivablesLineItems [Line Items] | ||
Non-current other receivables | 4,662 | 8,015 |
Current other receivables | 1,946 | 1,614 |
Prepaid expenses | ||
SummaryOfOtherReceivablesLineItems [Line Items] | ||
Non-current other receivables | 0 | |
Current other receivables | 5,312 | 7,362 |
Advances to suppliers | ||
SummaryOfOtherReceivablesLineItems [Line Items] | ||
Non-current other receivables | 765,595 | |
Current other receivables | 81,440 | 9,791 |
Advances to personnel | ||
SummaryOfOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 1,700 | 3,293 |
Security deposits | ||
SummaryOfOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 16,695 | 15,249 |
Receivables from electric activities | ||
SummaryOfOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 98,390 | 169,157 |
Guarantee deposits on derivative financial | ||
SummaryOfOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 0 | 88,667 |
Judicial deposits | ||
SummaryOfOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 30,482 | 23,795 |
Credit with SBS Bank Company | ||
SummaryOfOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 25,000 | 0 |
Other | ||
SummaryOfOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 24 | 2 |
Allowance for the impairment of other receivables | ||
SummaryOfOtherReceivablesLineItems [Line Items] | ||
Current other receivables | $ (77,297) | $ (39,870) |
11. Other receivables (Details
11. Other receivables (Details 1) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Receivables Details 1Abstract | |||
Allowance for the impairment of other receivables, beginning | $ 39,870 | $ 63,940 | $ 32,712 |
Increase | 61,467 | 0 | 45,032 |
Result from exposure to inflation | (24,040) | (12,704) | (13,804) |
Recovery | 0 | (11,366) | 0 |
Allowance for the impairment of other receivables, ending | $ 77,297 | $ 39,870 | $ 63,940 |
11. Other receivables (Detail_2
11. Other receivables (Details 2) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SummaryOfOtherReceivablesLineItems [Line Items] | ||
Other receivables | $ 1,042,858 | $ 358,895 |
Unexpired | ||
SummaryOfOtherReceivablesLineItems [Line Items] | ||
Other receivables | 48,358 | 39,526 |
Past due | ||
SummaryOfOtherReceivablesLineItems [Line Items] | ||
Other receivables | 34,854 | 129,288 |
Up to 3 months | ||
SummaryOfOtherReceivablesLineItems [Line Items] | ||
Other receivables | 130,564 | 110,759 |
From 3 to 6 months | ||
SummaryOfOtherReceivablesLineItems [Line Items] | ||
Other receivables | 20,415 | 8,418 |
From 6 to 9 months | ||
SummaryOfOtherReceivablesLineItems [Line Items] | ||
Other receivables | 4,881 | 4,198 |
From 9 to 12 months | ||
SummaryOfOtherReceivablesLineItems [Line Items] | ||
Other receivables | 3,045 | 4,030 |
To be recovered in more than 12 months | ||
SummaryOfOtherReceivablesLineItems [Line Items] | ||
Other receivables | $ 800,741 | $ 62,676 |
12. Trade receivables (Details)
12. Trade receivables (Details) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SummaryOfTradeReceivablesLineItems [Line Items] | ||
Current trade receivables | $ 7,587,906 | $ 8,385,237 |
Sales of electricity - Billed | ||
SummaryOfTradeReceivablesLineItems [Line Items] | ||
Current trade receivables | 4,622,701 | 4,359,990 |
Sales of electricity - Unbilled | ||
SummaryOfTradeReceivablesLineItems [Line Items] | ||
Current trade receivables | 3,735,956 | 4,404,135 |
Framework Agreement | ||
SummaryOfTradeReceivablesLineItems [Line Items] | ||
Current trade receivables | 10,377 | 230,953 |
Fee payable for the expansion of the transportation and others | ||
SummaryOfTradeReceivablesLineItems [Line Items] | ||
Current trade receivables | 22,969 | 33,952 |
Receivables in litigation | ||
SummaryOfTradeReceivablesLineItems [Line Items] | ||
Current trade receivables | 97,158 | 33,736 |
Allowance for the impairment of trade receivables | ||
SummaryOfTradeReceivablesLineItems [Line Items] | ||
Current trade receivables | $ (901,255) | $ (677,529) |
12. Trade receivables (Details
12. Trade receivables (Details 1) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Trade Receivables Details 1Abstract | |||
Allowance for the impairment of trade receivables, beginning (previously stated) | $ 677,529 | $ 383,439 | $ 146,238 |
Change of accounting standard adjustment | 82,041 | 0 | 0 |
Allowance for the impairment of trade receivables, beginning | 759,570 | 383,439 | 146,238 |
Increase | 916,036 | 391,615 | 388,339 |
Decrease | (907,137) | (64,348) | (56,062) |
Result from exposure to inflation | (467,214) | (33,177) | (95,076) |
Allowance for the impairment of trade receivables, ending | $ 901,255 | $ 759,570 | $ 383,439 |
12. Trade receivables (Detail_2
12. Trade receivables (Details 2) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SummaryOfTradeReceivablesLineItems [Line Items] | ||
Trade receivables | $ 7,587,906 | $ 8,385,237 |
Not due | ||
SummaryOfTradeReceivablesLineItems [Line Items] | ||
Trade receivables | 10,377 | 230,953 |
Past due | ||
SummaryOfTradeReceivablesLineItems [Line Items] | ||
Trade receivables | 1,149,406 | 897,752 |
Up to 3 months | ||
SummaryOfTradeReceivablesLineItems [Line Items] | ||
Trade receivables | $ 6,428,123 | $ 7,256,532 |
12. Trade receivables (Detail_3
12. Trade receivables (Details 3) $ in Thousands | Dec. 31, 2018ARS ($) |
5% increase in the uncollectibility rate estimate | |
SummaryOfTradeReceivablesLineItems [Line Items] | |
Contingencies | $ 946,318 |
Change | 45,063 |
5% decrease in the uncollectibility rate estimate | |
SummaryOfTradeReceivablesLineItems [Line Items] | |
Contingencies | 856,192 |
Change | $ (45,063) |
13. Financial assets at fair _3
13. Financial assets at fair value through profit or loss (Details) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SummaryOfFinancialAssetsAtFairValueThroughProfitOrLossLineItems [Line Items] | ||
Current | $ 3,381,550 | $ 4,278,008 |
Government bonds | ||
SummaryOfFinancialAssetsAtFairValueThroughProfitOrLossLineItems [Line Items] | ||
Current | 3,285,799 | 1,829,888 |
Money market funds | ||
SummaryOfFinancialAssetsAtFairValueThroughProfitOrLossLineItems [Line Items] | ||
Current | $ 95,751 | $ 2,448,120 |
14. Financial assets at amort_3
14. Financial assets at amortized cost (Details) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SummaryOfFinancialAssetsAtAmortizedCostLineItems [Line Items] | ||
Current | $ 1,208,770 | $ 16,978 |
Government bonds | ||
SummaryOfFinancialAssetsAtAmortizedCostLineItems [Line Items] | ||
Current | 0 | 16,978 |
Time deposits | ||
SummaryOfFinancialAssetsAtAmortizedCostLineItems [Line Items] | ||
Current | $ 1,208,770 | $ 0 |
15. Inventories (Details)
15. Inventories (Details) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SummaryOfInventoriesLineItems [Line Items] | ||
Inventories | $ 1,259,799 | $ 649,580 |
Supplies and spare-parts | ||
SummaryOfInventoriesLineItems [Line Items] | ||
Inventories | 1,252,292 | 589,339 |
Advance to suppliers | ||
SummaryOfInventoriesLineItems [Line Items] | ||
Inventories | $ 7,507 | $ 60,241 |
16. Cash and cash equivalents_2
16. Cash and cash equivalents (Details) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SummaryOfCashAndCashEquivalentsLineItems [Line Items] | ||
Cash and cash equivalents | $ 27,608 | $ (375,345) |
Cash and banks | ||
SummaryOfCashAndCashEquivalentsLineItems [Line Items] | ||
Cash and cash equivalents | $ 27,608 | $ 122,349 |
17. Share capital and additio_3
17. Share capital and additional paid-in capital (Details) - ARS ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
DisclosureOfShareCapitalAndAdditionalPaidinCapitalLineItems [Line Items] | ||
Beginning balance | $ 18,427,504 | $ 18,381,187 |
Payment of other reserve constitution - share-based compensation plan | 10,700 | 46,317 |
Ending balance | 18,438,204 | 18,427,504 |
Share Capital | ||
DisclosureOfShareCapitalAndAdditionalPaidinCapitalLineItems [Line Items] | ||
Beginning balance | 18,197,583 | 18,197,583 |
Payment of other reserve constitution - share-based compensation plan | 0 | 0 |
Ending balance | 18,197,583 | 18,197,583 |
Additional Paid in Capital | ||
DisclosureOfShareCapitalAndAdditionalPaidinCapitalLineItems [Line Items] | ||
Beginning balance | 229,921 | 183,604 |
Payment of other reserve constitution - share-based compensation plan | 10,700 | 46,317 |
Ending balance | $ 240,624 | $ 229,921 |
17. Share capital and additio_4
17. Share capital and additional paid-in capital (Details Narrative) | Dec. 31, 2018shares | |
DisclosureOfShareCapitalAndAdditionalPaidinCapitalLineItems [Line Items] | ||
Entity Common Stock, Shares Outstanding | 906,455,100 | |
Class A Common Stock | ||
DisclosureOfShareCapitalAndAdditionalPaidinCapitalLineItems [Line Items] | ||
Entity Common Stock, Shares Outstanding | 462,292,111 | |
Class B Common Stock | ||
DisclosureOfShareCapitalAndAdditionalPaidinCapitalLineItems [Line Items] | ||
Entity Common Stock, Shares Outstanding | 442,210,385 | [1] |
Class C Common Stock | ||
DisclosureOfShareCapitalAndAdditionalPaidinCapitalLineItems [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,952,604 | [2] |
[1] | Includes 23,385,028 and 7,794,168 treasury shares as of December 31, 2018 and 2017, respectively. | |
[2] | Relates to the Employee Stock Ownership Program Class C shares that have not been transferred. |
19. Trade payables (Details)
19. Trade payables (Details) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SummaryOfTradePayablesLineItems [Line Items] | ||
Noncurrent | $ 286,217 | $ 355,706 |
Current | 14,608,977 | 13,577,520 |
Customer guarantees | ||
SummaryOfTradePayablesLineItems [Line Items] | ||
Noncurrent | 140,968 | 148,349 |
Customer contributions | ||
SummaryOfTradePayablesLineItems [Line Items] | ||
Noncurrent | 112,324 | 118,095 |
Current | 15,288 | 27,706 |
Funding contributions - substations | ||
SummaryOfTradePayablesLineItems [Line Items] | ||
Noncurrent | 32,925 | 89,262 |
Current | 17,215 | 12,380 |
Payables for purchase of electricity | ||
SummaryOfTradePayablesLineItems [Line Items] | ||
Current | 4,080,310 | 4,499,302 |
Provision for unbilled electricity purchases | ||
SummaryOfTradePayablesLineItems [Line Items] | ||
Current | 7,828,458 | 6,715,431 |
Suppliers | ||
SummaryOfTradePayablesLineItems [Line Items] | ||
Current | 2,426,016 | 1,995,697 |
Advance to customer | ||
SummaryOfTradePayablesLineItems [Line Items] | ||
Current | 196,485 | 220,111 |
Discounts to customers | ||
SummaryOfTradePayablesLineItems [Line Items] | ||
Current | 37,372 | 55,182 |
Related parties | ||
SummaryOfTradePayablesLineItems [Line Items] | ||
Current | $ 7,833 | $ 51,711 |
20. Other payables (Details)
20. Other payables (Details) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SummaryOfOtherPayablesLineItems [Line Items] | ||
Noncurrent | $ 7,624,145 | $ 8,909,968 |
Current | 1,922,039 | 546,915 |
Loans (mutuum) with CAMMESA | ||
SummaryOfOtherPayablesLineItems [Line Items] | ||
Noncurrent | 2,282,176 | 2,783,474 |
ENRE penalties and discounts | ||
SummaryOfOtherPayablesLineItems [Line Items] | ||
Noncurrent | 5,097,402 | 5,737,612 |
Current | 1,835,590 | 425,563 |
Liability with FOTAE | ||
SummaryOfOtherPayablesLineItems [Line Items] | ||
Noncurrent | 207,371 | 280,813 |
Payment agreements with ENRE | ||
SummaryOfOtherPayablesLineItems [Line Items] | ||
Noncurrent | 37,196 | 108,069 |
Current | 65,301 | 93,550 |
Related parties | ||
SummaryOfOtherPayablesLineItems [Line Items] | ||
Current | 7,571 | 7,756 |
Advances for works to be performed | ||
SummaryOfOtherPayablesLineItems [Line Items] | ||
Current | $ 13,577 | $ 20,046 |
21. Deferred revenue (Details)
21. Deferred revenue (Details) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SummaryOfDeferredRevenueLineItems [Line Items] | ||
Noncurrent | $ 275,437 | $ 287,384 |
Current | 5,346 | 4,961 |
Nonrefundable customer contributions | ||
SummaryOfDeferredRevenueLineItems [Line Items] | ||
Noncurrent | 275,437 | 287,384 |
Current | $ 5,346 | $ 4,961 |
22. Borrowings (Details)
22. Borrowings (Details) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
SummaryOfBorrowingsLineItems [Line Items] | |||
Non-current borrowings | $ 7,192,467 | $ 6,189,294 | |
Current borrowings | 1,077,453 | 105,139 | |
Corporate notes | |||
SummaryOfBorrowingsLineItems [Line Items] | |||
Non-current borrowings | [1] | 6,249,967 | 4,812,465 |
Borrowings | |||
SummaryOfBorrowingsLineItems [Line Items] | |||
Non-current borrowings | 942,500 | 1,376,829 | |
Current borrowings | 967,434 | 13,243 | |
Interest from corporate notes | |||
SummaryOfBorrowingsLineItems [Line Items] | |||
Current borrowings | $ 110,019 | $ 91,896 | |
[1] | Net of debt issuance, repurchase and redemption expenses. |
22. Borrowings (Details 1)
22. Borrowings (Details 1) $ in Thousands, $ in Thousands | Dec. 31, 2018ARS ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017ARS ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016ARS ($) | Dec. 31, 2015ARS ($) |
SummaryOfBorrowingsLineItems [Line Items] | ||||||
Borrowings | $ 8,269,920 | $ 6,294,433 | $ 5,202,452 | $ 6,224,330 | ||
US dollar | ||||||
SummaryOfBorrowingsLineItems [Line Items] | ||||||
Borrowings | $ 8,269,920 | $ 6,294,433 |
22. Borrowings (Details 2)
22. Borrowings (Details 2) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
SummaryOfBorrowingsLineItems [Line Items] | ||||
Borrowings | $ 8,269,920 | $ 6,294,433 | $ 5,202,452 | $ 6,224,330 |
Fixed Rate | ||||
SummaryOfBorrowingsLineItems [Line Items] | ||||
Borrowings | 6,359,798 | 4,904,361 | ||
Fixed Rate | Less than 1 year | ||||
SummaryOfBorrowingsLineItems [Line Items] | ||||
Borrowings | 110,019 | 91,896 | ||
Fixed Rate | From 2 to 5 years | ||||
SummaryOfBorrowingsLineItems [Line Items] | ||||
Borrowings | 6,249,967 | 4,812,465 | ||
Floating Rate | ||||
SummaryOfBorrowingsLineItems [Line Items] | ||||
Borrowings | 1,910,122 | 1,390,072 | ||
Floating Rate | Less than 1 year | ||||
SummaryOfBorrowingsLineItems [Line Items] | ||||
Borrowings | 967,434 | 13,244 | ||
Floating Rate | From 2 to 5 years | ||||
SummaryOfBorrowingsLineItems [Line Items] | ||||
Borrowings | 942,500 | 688,414 | ||
Floating Rate | More than 5 years | ||||
SummaryOfBorrowingsLineItems [Line Items] | ||||
Borrowings | $ 0 | $ 688,414 |
22. Borrowings (Details 3)
22. Borrowings (Details 3) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Borrowings Details 3Abstract | |||
Borrowings, beginning | $ 6,294,433 | $ 5,202,452 | $ 6,224,330 |
Proceeds from borrowings | 0 | 1,285,946 | 0 |
Payment of borrowings' interest | (652,667) | (418,494) | (529,227) |
Repurchase of Corporate Notes by the trust | 0 | 0 | (9,683) |
Paid from the repurchase of Corporate Notes | (375,520) | 0 | (441,462) |
Gain from the repurchase of Corporate Notes | (4,539) | 0 | (84) |
Exchange difference and interest accrued | 6,134,425 | 1,252,327 | 1,604,325 |
Result from exposure to inflation | (3,126,212) | (1,027,798) | (1,645,747) |
Borrowings, ending | $ 8,269,920 | $ 6,294,433 | $ 5,202,452 |
22. Borrowings (Details 4)
22. Borrowings (Details 4) - ARS ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
SummaryOfBorrowingsLineItems [Line Items] | ||
Deb structure, beginning | $ 171,870 | $ 171,870 |
Debt repurchase | (10,220) | 0 |
Deb structure, ending | 161,650 | 171,870 |
Class 9 | ||
SummaryOfBorrowingsLineItems [Line Items] | ||
Deb structure, beginning | 171,870 | 171,870 |
Debt repurchase | (10,220) | 0 |
Deb structure, ending | $ 161,650 | $ 171,870 |
Rate | 9.75% | 9.75% |
Year of Maturity | 2022 | 2022 |
22. Borrowings (Details Narrati
22. Borrowings (Details Narrative) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Borrowings Details Narrative Abstract | ||
Noncurrent borrowings | $ 7,192,467 | $ 6,189,294 |
23. Salaries and social secur_3
23. Salaries and social security taxes payable (Details) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SummaryOfSalariesAndSocialSecurityTaxesPayableLineItems [Line Items] | ||
Noncurrent | $ 162,737 | $ 176,679 |
Current | 1,742,626 | 1,801,492 |
Early retirements payable | ||
SummaryOfSalariesAndSocialSecurityTaxesPayableLineItems [Line Items] | ||
Noncurrent | 14,884 | 4,960 |
Current | 10,248 | 7,099 |
Seniority-based bonus | ||
SummaryOfSalariesAndSocialSecurityTaxesPayableLineItems [Line Items] | ||
Noncurrent | 147,853 | 171,719 |
Salaries payable and provisions | ||
SummaryOfSalariesAndSocialSecurityTaxesPayableLineItems [Line Items] | ||
Current | 1,581,241 | 1,571,228 |
Social security payable | ||
SummaryOfSalariesAndSocialSecurityTaxesPayableLineItems [Line Items] | ||
Current | $ 151,137 | $ 223,165 |
23. Salaries and social secur_4
23. Salaries and social security taxes payable (Details 1) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
SummaryOfSalariesAndSocialSecurityTaxesPayableLineItems [Line Items] | |||
Salaries and social security taxes | $ 6,022,963 | $ 6,801,999 | $ 6,953,605 |
Salaries | |||
SummaryOfSalariesAndSocialSecurityTaxesPayableLineItems [Line Items] | |||
Salaries and social security taxes | 4,336,533 | 4,897,440 | 5,006,596 |
Social security taxes | |||
SummaryOfSalariesAndSocialSecurityTaxesPayableLineItems [Line Items] | |||
Salaries and social security taxes | $ 1,686,430 | $ 1,904,559 | $ 1,947,009 |
23. Salaries and social secur_5
23. Salaries and social security taxes payable (Details Narrative) $ in Thousands | Dec. 31, 2018ARS ($)Employees | Dec. 31, 2017ARS ($)Employees |
Salaries And Social Security Taxes Payable Details Narrative Abstract | ||
Current future payment obligations | $ 10,200 | $ 7,100 |
Noncurrent future payment obligations | 14,900 | 5,000 |
Collective bargaining liabilities | $ 147,800 | $ 171,700 |
Number of employees | Employees | 4,878 | 4,789 |
24. Benefit plans (Details)
24. Benefit plans (Details) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Benefit Plans Details Abstract | |||
Non-current | $ 385,098 | $ 477,765 | |
Current | 32,365 | 46,375 | |
Total benefit plans | $ 417,463 | $ 524,140 | $ 442,170 |
24. Benefit plans (Details 1)
24. Benefit plans (Details 1) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Benefit Plans Details 1Abstract | |||
Benefit payment obligations at beginning of year | $ 524,140 | $ 442,170 | |
Current service cost | 32,904 | 42,500 | $ 46,320 |
Interest cost | 79,304 | 126,954 | 163,431 |
Actuarial losses | 5,638 | (22,219) | (15,555) |
Result from exposure to inflation | (169,169) | (8,692) | |
Benefits paid to participating employees | (55,354) | (56,573) | |
Benefit payment obligations at year end | $ 417,463 | $ 524,140 | $ 442,170 |
24. Benefit plans (Details 2)
24. Benefit plans (Details 2) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Benefit Plans Details 2Abstract | |||
Cost | $ 32,904 | $ 42,500 | $ 46,320 |
Interest | 79,304 | 126,954 | 163,431 |
Actuarial results - Other comprehensive loss | 5,638 | (22,219) | (15,555) |
Benefit plan charge | $ 117,846 | $ 147,235 | $ 194,196 |
24. Benefit plans (Details 3)
24. Benefit plans (Details 3) | Dec. 31, 2018 | Dec. 31, 2017 |
Benefit Plans Details 3Abstract | ||
Discount rate | 5.00% | 5.00% |
Salary increase | 1.00% | 1.00% |
Inflation | 31.00% | 18.00% |
24. Benefit plans (Details 4)
24. Benefit plans (Details 4) $ in Thousands | Dec. 31, 2018ARS ($) |
Discount Rate 4% | |
SummaryOfBenefitPlansLineItems [Line Items] | |
Obligation | $ 459,651 |
Variation | $ 42,188 |
Percent | 10.00% |
Discount Rate 6% | |
SummaryOfBenefitPlansLineItems [Line Items] | |
Obligation | $ 381,587 |
Variation | $ (35,876) |
Percent | (9.00%) |
Salary Increase 0% | |
SummaryOfBenefitPlansLineItems [Line Items] | |
Obligation | $ 379,992 |
Variation | $ (37,471) |
Percent | (9.00%) |
Salary Increase 2% | |
SummaryOfBenefitPlansLineItems [Line Items] | |
Obligation | $ 460,939 |
Variation | $ 43,476 |
Percent | 10.00% |
24. Benefit plans (Details 5)
24. Benefit plans (Details 5) $ in Thousands | Dec. 31, 2018ARS ($) |
2019 | |
SummaryOfBenefitPlansLineItems [Line Items] | |
Benefit payment obligations | $ 32,365 |
2020 | |
SummaryOfBenefitPlansLineItems [Line Items] | |
Benefit payment obligations | 6,221 |
2021 | |
SummaryOfBenefitPlansLineItems [Line Items] | |
Benefit payment obligations | 6,207 |
2022 | |
SummaryOfBenefitPlansLineItems [Line Items] | |
Benefit payment obligations | 6,450 |
2023 | |
SummaryOfBenefitPlansLineItems [Line Items] | |
Benefit payment obligations | 2,059 |
2022 to 2028 | |
SummaryOfBenefitPlansLineItems [Line Items] | |
Benefit payment obligations | $ 11,128 |
26. Income tax (Details)
26. Income tax (Details) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
SummaryOfIncomeTaxLineItems [Line Items] | |||
Tax loss carryforward | $ 53,792 | $ 6,160 | |
Inventories | $ 0 | 13,454 | 7,520 |
Trade receivables and other receivables | 445,102 | 481,066 | 204,972 |
Trade payables and other payables | 1,954,762 | 424,670 | 1,659,011 |
Salaries and social security taxes payable | 49,439 | (95,813) | 36,176 |
Benefit plans | 105,984 | 219,113 | 154,759 |
Tax liabilities | 15,631 | 55,897 | 23,232 |
Provisions | 345,859 | (546,274) | 221,846 |
Deferred tax asset | 2,916,777 | 605,906 | 2,313,676 |
Property, plant and equipment | (10,748,162) | (7,466,457) | (9,779,890) |
Financial assets at fair value through profit or loss | (212,477) | (386,145) | (59,581) |
Borrowings | (4,446) | (43,454) | (12,424) |
Deferred tax liability | (10,965,085) | (7,896,056) | (9,851,895) |
Net deferred tax (liabilities) assets | (8,048,308) | (7,290,150) | $ (7,538,219) |
Result from exposure to inflation | |||
SummaryOfIncomeTaxLineItems [Line Items] | |||
Tax loss carryforward | (1,988) | ||
Inventories | (9,064) | (2,427) | |
Trade receivables and other receivables | (371,025) | (66,156) | |
Trade payables and other payables | 757,645 | (535,455) | |
Salaries and social security taxes payable | 130,428 | (11,676) | |
Benefit plans | (128,800) | (49,949) | |
Tax liabilities | (43,540) | (7,498) | |
Provisions | 755,078 | (71,602) | |
Deferred tax asset | 1,036,929 | (746,751) | |
Property, plant and equipment | 903,151 | 3,027,954 | |
Financial assets at fair value through profit or loss | 374,867 | 19,230 | |
Borrowings | 37,986 | 4,010 | |
Deferred tax liability | 1,316,004 | 3,051,194 | |
Net deferred tax (liabilities) assets | 2,352,933 | 2,304,443 | |
Charged to profit and loss | |||
SummaryOfIncomeTaxLineItems [Line Items] | |||
Tax loss carryforward | 49,620 | ||
Inventories | (4,390) | 8,361 | |
Trade receivables and other receivables | 335,061 | 342,250 | |
Trade payables and other payables | 772,447 | (698,886) | |
Salaries and social security taxes payable | 14,824 | (120,313) | |
Benefit plans | 13,980 | 121,519 | |
Tax liabilities | 3,274 | 40,163 | |
Provisions | 137,055 | (696,518) | |
Deferred tax asset | 1,272,251 | (953,803) | |
Property, plant and equipment | (4,184,856) | (714,521) | |
Financial assets at fair value through profit or loss | (201,199) | (345,794) | |
Borrowings | 1,022 | (35,040) | |
Deferred tax liability | (4,385,033) | (1,095,355) | |
Net deferred tax (liabilities) assets | (3,112,782) | (2,049,158) | |
Charged to other comprehensive income | |||
SummaryOfIncomeTaxLineItems [Line Items] | |||
Tax loss carryforward | 0 | ||
Inventories | 0 | 0 | |
Trade receivables and other receivables | 0 | 0 | |
Trade payables and other payables | 0 | 0 | |
Salaries and social security taxes payable | 0 | 0 | |
Benefit plans | 1,691 | (7,216) | |
Tax liabilities | 0 | 0 | |
Provisions | 0 | 0 | |
Deferred tax asset | 1,691 | (7,216) | |
Property, plant and equipment | 0 | 0 | |
Financial assets at fair value through profit or loss | 0 | 0 | |
Borrowings | 0 | 0 | |
Deferred tax liability | 0 | 0 | |
Net deferred tax (liabilities) assets | $ 1,691 | $ (7,216) |
26. Income tax (Details 1)
26. Income tax (Details 1) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
SummaryOfIncomeTaxLineItems [Line Items] | |||
Deferred tax asset | $ 2,916,777 | $ 2,425,764 | |
Deferred tax liability | (10,965,085) | (9,715,914) | |
Net deferred tax assets (liabilities) | (8,048,308) | (7,290,150) | $ (7,538,219) |
To be recovered in less than 12 months | |||
SummaryOfIncomeTaxLineItems [Line Items] | |||
Deferred tax asset | 2,310,153 | 669,450 | |
Deferred tax liability | (1,966,173) | (2,740,288) | |
To be recovered in more than 12 months | |||
SummaryOfIncomeTaxLineItems [Line Items] | |||
Deferred tax asset | 606,624 | 1,756,314 | |
Deferred tax liability | $ (8,998,912) | $ (6,975,626) |
26. Income tax (Details 2)
26. Income tax (Details 2) - ARS ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income Tax Details 2Abstract | ||||
Deferred tax | $ (759,849) | $ 255,285 | $ 342,403 | |
Current tax | (1,114,384) | (760,641) | (484,887) | |
Difference between provision and tax return | (3,163) | (4,700) | (4,786) | |
Income tax expense | (1,877,396) | (510,056) | (147,270) | |
Profit for the year before taxes | $ 6,174,862 | $ 5,590,691 | $ 388,041 | |
Applicable tax rate | 30.00% | 35.00% | 35.00% | |
Loss for the year at the tax rate | $ (1,852,459) | $ (1,956,742) | $ (135,814) | |
Gain (loss) from interest in joint ventures | 560 | (6) | (3) | |
Non-taxable income | 220,769 | 115,661 | 138,040 | |
Gain on net monetary position and others | (1,007,010) | 902,631 | (144,707) | |
Difference between provision and tax return | (3,163) | (4,700) | (4,786) | |
Change in the income tax rate | [1] | 763,907 | 433,100 | 0 |
Income tax expense | $ (1,877,396) | $ (510,056) | $ (147,270) | |
[1] | Refers to the effect of applying to deferred tax assets and liabilities the changes in income tax rates in accordance with the previously detailed tax reform on the basis of the year in which they are expected to be realized/settled. |
26. Income tax (Details 3)
26. Income tax (Details 3) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Details 3Abstract | ||
Current | $ 1,114,384 | $ 760,641 |
Total tax payable | 1,114,384 | 760,641 |
Tax withholdings | (497,058) | (71,550) |
Income tax provision net | $ 617,326 | $ 689,091 |
27. Tax liabilities (Details)
27. Tax liabilities (Details) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SummaryOfTaxLiabilitiesLineItems [Line Items] | ||
Current | $ 784,045 | $ 1,555,501 |
Provincial, municipal and federal contributions and taxes | ||
SummaryOfTaxLiabilitiesLineItems [Line Items] | ||
Current | 130,445 | 587,723 |
VAT payable | ||
SummaryOfTaxLiabilitiesLineItems [Line Items] | ||
Current | 412,547 | 728,173 |
Tax withholdings | ||
SummaryOfTaxLiabilitiesLineItems [Line Items] | ||
Current | 127,121 | 131,091 |
SUSS withholdings | ||
SummaryOfTaxLiabilitiesLineItems [Line Items] | ||
Current | 7,435 | 5,190 |
Municipal taxes | ||
SummaryOfTaxLiabilitiesLineItems [Line Items] | ||
Current | 106,117 | 101,082 |
Tax regularization plan | ||
SummaryOfTaxLiabilitiesLineItems [Line Items] | ||
Current | $ 380 | $ 2,242 |
28. Leases (Details)
28. Leases (Details) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SummaryOfLeasingsLineItems [Line Items] | ||
Total future minimum lease payments | $ 396,017 | $ 305,920 |
2018 | ||
SummaryOfLeasingsLineItems [Line Items] | ||
Total future minimum lease payments | 0 | 124,503 |
2019 | ||
SummaryOfLeasingsLineItems [Line Items] | ||
Total future minimum lease payments | 155,454 | 124,626 |
2020 | ||
SummaryOfLeasingsLineItems [Line Items] | ||
Total future minimum lease payments | 138,048 | 52,194 |
2021 | ||
SummaryOfLeasingsLineItems [Line Items] | ||
Total future minimum lease payments | $ 102,515 | $ 4,597 |
28. Leases (Details 1)
28. Leases (Details 1) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Leases Details 1Abstract | |||
Total lease expenses | $ 125,157 | $ 126,098 | $ 126,193 |
28. Leases (Details 2)
28. Leases (Details 2) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SummaryOfLeasingsLineItems [Line Items] | ||
Total future minimum lease collections | $ 173,619 | $ 395,955 |
2018 | ||
SummaryOfLeasingsLineItems [Line Items] | ||
Total future minimum lease collections | 0 | 202,143 |
2019 | ||
SummaryOfLeasingsLineItems [Line Items] | ||
Total future minimum lease collections | $ 173,619 | $ 193,812 |
28. Leases (Details 3)
28. Leases (Details 3) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Leases Details 3Abstract | |||
Total lease income | $ 190,370 | $ 212,265 | $ 199,431 |
29. Provisions (Details)
29. Provisions (Details) - ARS ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
SummaryOfProvisionsLineItems [Line Items] | ||
Provisions, beginning | $ 883,119 | |
Provisions, ending | 1,070,150 | $ 883,119 |
Non-current liabilities | ||
SummaryOfProvisionsLineItems [Line Items] | ||
Provisions, beginning | 883,119 | 504,038 |
Increases | 472,067 | 411,975 |
Decreases | (85,662) | (4) |
Result from exposure to inflation | (199,374) | (32,890) |
Provisions, ending | 1,070,150 | 883,119 |
Current liabilities | ||
SummaryOfProvisionsLineItems [Line Items] | ||
Provisions, beginning | 190,858 | 129,808 |
Increases | 252,030 | 130,389 |
Decreases | (239,585) | (58,930) |
Result from exposure to inflation | (15,868) | (10,409) |
Provisions, ending | $ 187,435 | $ 190,858 |
30. Revenue from sales (Details
30. Revenue from sales (Details) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SummaryOfRevenueFromSalesLineItems [Line Items] | |||
Revenue from sales | $ 55,953,649 | $ 39,602,868 | $ 25,826,759 |
Sales of electricity | |||
SummaryOfRevenueFromSalesLineItems [Line Items] | |||
Revenue from sales | 55,689,651 | 39,329,729 | 25,576,978 |
Right of use on poles | |||
SummaryOfRevenueFromSalesLineItems [Line Items] | |||
Revenue from sales | 190,370 | 212,265 | 213,449 |
Connection charges | |||
SummaryOfRevenueFromSalesLineItems [Line Items] | |||
Revenue from sales | 51,105 | 49,369 | 30,893 |
Reconnection charges | |||
SummaryOfRevenueFromSalesLineItems [Line Items] | |||
Revenue from sales | $ 22,523 | $ 11,505 | $ 5,439 |
31. Expenses by nature (Details
31. Expenses by nature (Details) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SummaryOfExpensesByNatureLineItems [Line Items] | |||
Transmission and distribution expenses | $ 10,912,722 | $ 9,247,065 | $ 13,263,857 |
Selling expenses | 5,032,681 | 3,567,838 | 3,379,261 |
Administrative expenses | 2,872,127 | 2,504,506 | 2,288,037 |
Expenses by nature | 18,817,530 | 15,319,409 | 18,931,155 |
Salaries and social security taxes | |||
SummaryOfExpensesByNatureLineItems [Line Items] | |||
Transmission and distribution expenses | 4,331,442 | 4,997,823 | 5,104,795 |
Selling expenses | 777,014 | 886,976 | 861,097 |
Administrative expenses | 914,507 | 917,200 | 987,713 |
Expenses by nature | 6,022,963 | 6,801,999 | 6,953,605 |
Pension plans | |||
SummaryOfExpensesByNatureLineItems [Line Items] | |||
Transmission and distribution expenses | 80,695 | 124,507 | 142,590 |
Selling expenses | 14,476 | 22,097 | 24,053 |
Administrative expenses | 17,037 | 22,850 | 27,589 |
Expenses by nature | 112,208 | 169,454 | 194,232 |
Communications expenses | |||
SummaryOfExpensesByNatureLineItems [Line Items] | |||
Transmission and distribution expenses | 81,110 | 55,281 | 49,817 |
Selling expenses | 269,674 | 289,371 | 251,381 |
Administrative expenses | 16,017 | 22,804 | 20,318 |
Expenses by nature | 366,801 | 367,456 | 321,516 |
Allowance for the impairment of trade and other receivables | |||
SummaryOfExpensesByNatureLineItems [Line Items] | |||
Transmission and distribution expenses | 0 | 0 | 0 |
Selling expenses | 977,503 | 391,615 | 433,371 |
Administrative expenses | 0 | 0 | 0 |
Expenses by nature | 977,503 | 391,615 | 433,371 |
Supplies consumption | |||
SummaryOfExpensesByNatureLineItems [Line Items] | |||
Transmission and distribution expenses | 790,392 | 687,199 | 513,318 |
Selling expenses | 0 | 0 | 0 |
Administrative expenses | 122,623 | 109,780 | 64,249 |
Expenses by nature | 913,015 | 796,979 | 577,567 |
Leases and insurance | |||
SummaryOfExpensesByNatureLineItems [Line Items] | |||
Transmission and distribution expenses | 530 | 653 | 870 |
Selling expenses | 0 | 0 | 0 |
Administrative expenses | 180,218 | 182,024 | 173,973 |
Expenses by nature | 180,748 | 182,677 | 174,843 |
Security service | |||
SummaryOfExpensesByNatureLineItems [Line Items] | |||
Transmission and distribution expenses | 136,656 | 130,263 | 134,404 |
Selling expenses | 2,027 | 1,797 | 22,855 |
Administrative expenses | 128,699 | 141,231 | 85,461 |
Expenses by nature | 267,382 | 273,291 | 242,720 |
Fees and remuneration for services | |||
SummaryOfExpensesByNatureLineItems [Line Items] | |||
Transmission and distribution expenses | 1,411,812 | 1,081,974 | 897,754 |
Selling expenses | 1,040,164 | 876,612 | 923,607 |
Administrative expenses | 1,007,152 | 820,225 | 771,520 |
Expenses by nature | 3,459,128 | 2,778,811 | 2,592,881 |
Public relations and marketing | |||
SummaryOfExpensesByNatureLineItems [Line Items] | |||
Transmission and distribution expenses | 0 | 0 | 0 |
Selling expenses | 0 | 0 | 0 |
Administrative expenses | 32,246 | 56,659 | 0 |
Expenses by nature | 32,246 | 56,659 | 0 |
Advertising and sponsorship | |||
SummaryOfExpensesByNatureLineItems [Line Items] | |||
Transmission and distribution expenses | 0 | 0 | 0 |
Selling expenses | 0 | 0 | 0 |
Administrative expenses | 16,612 | 29,187 | 0 |
Expenses by nature | 16,612 | 29,187 | 0 |
Reimbursements to personnel | |||
SummaryOfExpensesByNatureLineItems [Line Items] | |||
Transmission and distribution expenses | 60 | 89 | 1,821 |
Selling expenses | 68 | 55 | 343 |
Administrative expenses | 498 | 827 | 1,520 |
Expenses by nature | 626 | 971 | 3,684 |
Depreciation of property, plants and | |||
SummaryOfExpensesByNatureLineItems [Line Items] | |||
Transmission and distribution expenses | 2,014,887 | 1,740,231 | 1,739,293 |
Selling expenses | 300,255 | 275,125 | 301,301 |
Administrative expenses | 246,357 | 132,733 | 106,647 |
Expenses by nature | 2,561,499 | 2,148,089 | 2,147,241 |
Directors and Supervisory Committee | |||
SummaryOfExpensesByNatureLineItems [Line Items] | |||
Transmission and distribution expenses | 0 | 0 | 0 |
Selling expenses | 0 | 0 | 0 |
Administrative expenses | 21,893 | 21,429 | 11,937 |
Expenses by nature | 21,893 | 21,429 | 11,937 |
ENRE penalties | |||
SummaryOfExpensesByNatureLineItems [Line Items] | |||
Transmission and distribution expenses | 2,064,330 | 428,049 | 4,677,844 |
Selling expenses | 1,052,135 | 428,663 | 367,907 |
Administrative expenses | 0 | 0 | 0 |
Expenses by nature | 3,116,465 | 856,712 | 5,045,751 |
Taxes and charges | |||
SummaryOfExpensesByNatureLineItems [Line Items] | |||
Transmission and distribution expenses | 0 | 0 | 0 |
Selling expenses | 598,908 | 395,263 | 193,081 |
Administrative expenses | 162,549 | 32,011 | 27,088 |
Expenses by nature | 761,457 | 427,274 | 220,169 |
Other | |||
SummaryOfExpensesByNatureLineItems [Line Items] | |||
Transmission and distribution expenses | 808 | 996 | 1,351 |
Selling expenses | 457 | 264 | 265 |
Administrative expenses | 5,719 | 15,546 | 10,022 |
Expenses by nature | $ 6,984 | $ 16,806 | $ 11,638 |
31. Expenses by nature (Detai_2
31. Expenses by nature (Details Narrative) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Expenses By Nature Details Narrative Abstract | |||
Expenses capitalized in property, plant and equipment | $ 1,000,000 | $ 869,700 | $ 602,000 |
32. Other operating expense, _3
32. Other operating expense, net (Details) - ARS ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
SummaryOfOtherOperatingExpensesNetLineItems [Line Items] | ||||
Other operating income | $ 321,756 | $ 157,812 | $ 172,147 | |
Other operating expense | (1,642,566) | (1,260,504) | (1,085,162) | |
Other operating expense, net | (1,320,810) | (1,102,692) | (913,015) | |
Services provided to third parties | ||||
SummaryOfOtherOperatingExpensesNetLineItems [Line Items] | ||||
Other operating income | 74,522 | 89,303 | 120,580 | |
Commissions on municipal taxes collection | ||||
SummaryOfOtherOperatingExpensesNetLineItems [Line Items] | ||||
Other operating income | 77,088 | 51,358 | 42,131 | |
Related parties | ||||
SummaryOfOtherOperatingExpensesNetLineItems [Line Items] | ||||
Other operating income | 44,303 | 4,263 | 921 | |
Income from non-reimbursable customer contributions | ||||
SummaryOfOtherOperatingExpensesNetLineItems [Line Items] | ||||
Other operating income | 5,574 | 4,372 | 1,520 | |
Fines to suppliers | ||||
SummaryOfOtherOperatingExpensesNetLineItems [Line Items] | ||||
Other operating income | [1] | 76,914 | 7,811 | 0 |
Others | ||||
SummaryOfOtherOperatingExpensesNetLineItems [Line Items] | ||||
Other operating income | 43,355 | 705 | 6,995 | |
Other operating expense | (45,918) | (14,398) | (1,534) | |
Gratifications for services | ||||
SummaryOfOtherOperatingExpensesNetLineItems [Line Items] | ||||
Other operating expense | (74,266) | (80,802) | (69,678) | |
Cost for services provided to third parties | ||||
SummaryOfOtherOperatingExpensesNetLineItems [Line Items] | ||||
Other operating expense | (52,429) | (65,238) | (98,328) | |
Severance paid | ||||
SummaryOfOtherOperatingExpensesNetLineItems [Line Items] | ||||
Other operating expense | (16,645) | (28,353) | (31,243) | |
Donations and contributions | ||||
SummaryOfOtherOperatingExpensesNetLineItems [Line Items] | ||||
Other operating expense | (6) | 0 | 0 | |
Debit and Credit Tax | ||||
SummaryOfOtherOperatingExpensesNetLineItems [Line Items] | ||||
Other operating expense | (594,750) | (479,525) | (306,892) | |
Other expenses - FOCEDE | ||||
SummaryOfOtherOperatingExpensesNetLineItems [Line Items] | ||||
Other operating expense | 0 | 0 | (31,223) | |
Provision for contingencies | ||||
SummaryOfOtherOperatingExpensesNetLineItems [Line Items] | ||||
Other operating expense | (724,097) | (542,364) | (301,808) | |
Disposals of property, plant and equipment | ||||
SummaryOfOtherOperatingExpensesNetLineItems [Line Items] | ||||
Other operating expense | $ (134,455) | $ (49,824) | $ (244,456) | |
[1] | Relates to fines applied to Suppliers for failing to comply with agreed-upon contractual conditions. |
33. Net financial expense (Deta
33. Net financial expense (Details) - ARS ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
SummaryOfNetFinancialExpenseLineItems [Line Items] | ||||
Financial income | $ 671,783 | $ 453,804 | $ 384,593 | |
Financial expenses | (4,976,719) | (2,570,256) | (2,589,227) | |
Other financial expense | (1,965,320) | (168,468) | (87,303) | |
Net financial expense | (6,270,256) | (2,284,920) | (2,291,937) | |
Commercial interest | ||||
SummaryOfNetFinancialExpenseLineItems [Line Items] | ||||
Financial income | 273,457 | 177,655 | 262,536 | |
Financial expenses | (2,958,366) | (1,716,843) | (2,028,136) | |
Financial interest | ||||
SummaryOfNetFinancialExpenseLineItems [Line Items] | ||||
Financial income | 398,326 | 276,149 | 122,057 | |
Interest and other | ||||
SummaryOfNetFinancialExpenseLineItems [Line Items] | ||||
Financial expenses | (1,987,092) | (819,377) | (535,721) | |
Fiscal interest | ||||
SummaryOfNetFinancialExpenseLineItems [Line Items] | ||||
Financial expenses | (22,752) | (31,153) | (18,762) | |
Bank fees and expenses | ||||
SummaryOfNetFinancialExpenseLineItems [Line Items] | ||||
Financial expenses | (8,509) | (2,883) | (6,608) | |
Exchange differences | ||||
SummaryOfNetFinancialExpenseLineItems [Line Items] | ||||
Other financial expense | (2,629,966) | (564,056) | (911,819) | |
Adjustment to present value of receivables | ||||
SummaryOfNetFinancialExpenseLineItems [Line Items] | ||||
Other financial expense | (327) | (431) | 5,749 | |
Changes in fair value of financial assets | ||||
SummaryOfNetFinancialExpenseLineItems [Line Items] | ||||
Other financial expense | [1] | 746,532 | 474,896 | 891,773 |
Net gain from the repurchase of Corporate Notes | ||||
SummaryOfNetFinancialExpenseLineItems [Line Items] | ||||
Other financial expense | 4,539 | 0 | 90 | |
Other financial expense | ||||
SummaryOfNetFinancialExpenseLineItems [Line Items] | ||||
Other financial expense | $ (86,098) | $ (78,877) | $ (73,096) | |
[1] | Includes changes in the fair value of financial assets on cash equivalents as of December 31, 2018, 2017 and 2016 for $ 43.4 million, $ 37.3 million and $ 39.6 million, respectively. |
34. Basic and diluted earning_3
34. Basic and diluted earnings per share (Details) - ARS ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Basic And Diluted Earnings Per Share Details Abstract | |||
Profit (Loss) for the period attributable to the owners of the Company | $ 4,297,466 | $ 5,080,635 | $ 240,771 |
Weighted average number of common shares outstanding | 890,492,000 | 898,280,000 | 897,043,000 |
Basic and diluted profit (loss) earnings per share - in pesos | $ 4.83 | $ 5.66 | $ 0.27 |
35. Related-party transaction_2
35. Related-party transactions (Details) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
SummaryOfRelatedpartyTransactionsLineItems [Line Items] | |||
Related-party income | $ 44,303 | $ 4,263 | $ 18,608 |
CYCSA | |||
SummaryOfRelatedpartyTransactionsLineItems [Line Items] | |||
Related-party income | 0 | 0 | 17,686 |
PESA | |||
SummaryOfRelatedpartyTransactionsLineItems [Line Items] | |||
Related-party income | 149 | 0 | 0 |
PESA | |||
SummaryOfRelatedpartyTransactionsLineItems [Line Items] | |||
Related-party income | 11,161 | 4,263 | 0 |
SACDE | |||
SummaryOfRelatedpartyTransactionsLineItems [Line Items] | |||
Related-party income | 32,993 | 0 | 0 |
Transener | |||
SummaryOfRelatedpartyTransactionsLineItems [Line Items] | |||
Related-party income | 0 | 0 | 369 |
Transba | |||
SummaryOfRelatedpartyTransactionsLineItems [Line Items] | |||
Related-party income | $ 0 | $ 0 | $ 553 |
35. Related-party transaction_3
35. Related-party transactions (Details 1) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
SummaryOfRelatedpartyTransactionsLineItems [Line Items] | |||
Related-party expense | $ (188,627) | $ (150,457) | $ (149,891) |
PESA | |||
SummaryOfRelatedpartyTransactionsLineItems [Line Items] | |||
Related-party expense | (86,098) | (60,944) | (67,642) |
SACME | |||
SummaryOfRelatedpartyTransactionsLineItems [Line Items] | |||
Related-party expense | (81,698) | (68,960) | (65,298) |
Salaverri, Dellatorre, Burgio y Wetzler Malbran | |||
SummaryOfRelatedpartyTransactionsLineItems [Line Items] | |||
Related-party expense | 0 | (876) | (6,365) |
PYSSA | |||
SummaryOfRelatedpartyTransactionsLineItems [Line Items] | |||
Related-party expense | 0 | 0 | (39) |
OSV | |||
SummaryOfRelatedpartyTransactionsLineItems [Line Items] | |||
Related-party expense | (19,521) | (18,965) | (11,474) |
ABELOVICH, POLANO & ASSOC. | |||
SummaryOfRelatedpartyTransactionsLineItems [Line Items] | |||
Related-party expense | $ (1,310) | $ (712) | $ 0 |
35. Related-party transaction_4
35. Related-party transactions (Details 2) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Relatedparty Transactions Details 2Abstract | |||
Key Management personnel's remuneration - Salaries | $ 194,040 | $ 250,646 | $ 229,206 |
35. Related-party transaction_5
35. Related-party transactions (Details 3) - ARS ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SummaryOfRelatedpartyTransactionsLineItems [Line Items] | ||
Other receivables - Noncurrent | $ 4,662 | $ 8,015 |
Other receivables - Current | 1,946 | 1,614 |
SACME | ||
SummaryOfRelatedpartyTransactionsLineItems [Line Items] | ||
Other receivables - Noncurrent | 4,662 | 8,015 |
Other receivables - Current | 766 | 1,131 |
PESA | ||
SummaryOfRelatedpartyTransactionsLineItems [Line Items] | ||
Other receivables - Current | $ 1,180 | $ 483 |