Table of Contents
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of • 2004
Commission File Number: 001-12440
ENERSIS S.A.
Santa Rosa 76
Santiago, Chile
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F:
Form 20-F þ Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes o No þ
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes o No þ
Indicate by check mark whether by furnishing the information
contained in this Form, the Registrant is also thereby furnishing the information to the Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes o No þ
If “Yes” is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): N/A
Table of Contents
ITEM 1
Enersis S.A. and Subsidiaries
Index to the Unaudited Consolidated Information
Consolidated Balance Sheets of March 31, 2003 and 2004 | ||||
Consolidated Income Statement for the three months ended March 31, 2003 and 2004 | ||||
Consolidated Statements of Cash Flows for the three months ended March 31, 2003 and 2004 |
The financial statements as of and for the three-month periods ended March 31, 2003 and 2004 included in this report include all adjustments, consisting of normal recurring accruals, which we consider necessary for a fair presentation of our financial position and results of operations. These financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in Chile, which differ in material respects from the accounting principles generally accepted in the United States. See note • to the consolidated financial statements included in our annual report on Form 20-F for the year ended December 31, 2003. Results for the three months ended March 31, 2004 are not necessarily indicative of results for our fiscal year ending December 31, 2004 or any other period.
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CONSOLIDATED BALANCE SHEET
First quarter ended March 31, | ||||||||||||||||
2003 | 2004 | Change | % Change | |||||||||||||
(in millions of Ch$) | ||||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash | 40,372 | 40,499 | 127 | 0.3 | % | |||||||||||
Time deposits | 245,493 | 367,127 | 121,634 | 49.5 | % | |||||||||||
Marketable securities | 2,000 | 19,787 | 17,787 | – | ||||||||||||
Accounts receivable | 480,355 | 513,180 | 32,824 | 6.8 | % | |||||||||||
Notes receivable | 4,558 | 3,981 | (577 | ) | (12.7 | %) | ||||||||||
Other accounts receivable | 63,333 | 100,013 | 36,680 | 57.9 | % | |||||||||||
Amounts due from related companies | 191,149 | 138,174 | (52,975 | ) | (27.7 | %) | ||||||||||
Inventories | 62,881 | 69,242 | 6,361 | 10.1 | % | |||||||||||
Income taxes to be recovered | 54,310 | 50,900 | (3,410 | ) | (6.3 | %) | ||||||||||
Prepaid expenses | 22,843 | 30,582 | 7,739 | 33.9 | % | |||||||||||
Deferred income taxes | 69,410 | 54,434 | (14,975 | ) | (21.6 | %) | ||||||||||
Other current taxes | 259,183 | 27,928 | (231,255 | ) | (89.2 | %) | ||||||||||
Net of long-term leasing contracts | – | – | – | – | ||||||||||||
Net of assets for leasing | – | – | – | – | ||||||||||||
Total current assets | 1,495,886 | 1,415,847 | (80,039 | ) | (5.4 | %) | ||||||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||||||||||
Property | 131,138 | 118,509 | (12,629 | ) | (9.6 | %) | ||||||||||
Buildings and infrastructure | 11,673,690 | 10,333,215 | (1,340,475 | ) | (11.5 | %) | ||||||||||
Plant and equipment | 2,033,937 | 1,833,482 | (200,455 | ) | (9.9 | %) | ||||||||||
Other assets | 487,825 | 334,146 | (153,679 | ) | (31.5 | %) | ||||||||||
Technical reappraisal | 758,453 | 641,812 | (116,641 | ) | (15.4 | %) | ||||||||||
Sub-total | 15,085,044 | 13,261,165 | (1,823,879 | ) | (12.1 | %) | ||||||||||
Accumulated depreciation | (5,258,858 | ) | (5,017,174 | ) | 241,683 | 4.6 | % | |||||||||
Total property, plant and equipment | 9,826,186 | 8,243,991 | (1,582,196 | ) | (16.1 | )% | ||||||||||
OTHER ASSETS | ||||||||||||||||
Investments in related companies | 209,229 | 192,136 | (17,094 | ) | (8.2 | %) | ||||||||||
Investments in other companies | 165,431 | 138,449 | (26,982 | ) | (16.3 | %) | ||||||||||
Positive goodwill | 837,104 | 766,598 | (70,506 | ) | (8.4 | %) | ||||||||||
Negative goodwill | (128,321 | ) | (89,702 | ) | 38,619 | 30.1 | % | |||||||||
Long-term receivables | 136,366 | 124,675 | (11,691 | ) | (8.6 | %) | ||||||||||
Amounts due from related companies | 1,037 | 785 | (253 | ) | – | |||||||||||
Deferred income taxes | – | – | – | – | ||||||||||||
Intangibles | 90,369 | 83,347 | (7,022 | ) | (7.8 | %) | ||||||||||
Accumulated amortization | (41,764 | ) | (41,873 | ) | (110 | ) | (0.3 | %) | ||||||||
Others | 242,624 | 191,179 | (51,445 | ) | (21.2 | %) | ||||||||||
Net of long-term leasing contracts | – | – | – | – | ||||||||||||
Total other assets | 1,512,075 | 1,365,592 | (146,483 | ) | (9.7 | %) | ||||||||||
TOTAL ASSETS | 12,834,148 | 11,025,430 | (1,808,718 | ) | (14.1 | )% |
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First quarter ended March 31, | ||||||||||||||||
2003 | 2004 | Change | % Change | |||||||||||||
(in millions of Ch$) | ||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Due to banks and financial institutions (short-term) | 439,355 | 271,894 | (167,460 | ) | 38.1 | % | ||||||||||
Due to banks and financial institutions (portion of long term) | 890,678 | 147,302 | (743,376 | ) | 83.5 | % | ||||||||||
Commercial paper equivalent | 13,442 | – | (13,442 | ) | 100.0 | % | ||||||||||
Bonds payable (short-term) | 519,700 | 58,154 | (461,546 | ) | 88.8 | % | ||||||||||
Long-term liabilities maturing before one year | 34,418 | 26,951 | (7,467 | ) | 21.7 | % | ||||||||||
Dividends payable | 37,563 | 42,442 | 4,878 | (13.0 | %) | |||||||||||
Accounts payable | 225,935 | 225,301 | (635 | ) | 0.3 | % | ||||||||||
Notes payable | 26,258 | 25,100 | (1,158 | ) | – | |||||||||||
Miscellaneous payables | 79,678 | 46,734 | (32,944 | ) | 41.3 | % | ||||||||||
Accounts payable to related companies | 13,691 | 29,442 | 15,751 | (115.1 | %) | |||||||||||
Provisions | 76,163 | 40,459 | (35,704 | ) | 46.9 | % | ||||||||||
Withholdings | 57,344 | 70,598 | 13,254 | (23.1 | %) | |||||||||||
Income tax | 39,273 | 61,061 | 21,788 | (55.5 | %) | |||||||||||
Anticipated income | 12,302 | 10,484 | (1,817 | ) | 14.8 | % | ||||||||||
Deferred taxes | – | – | – | – | ||||||||||||
Reimbursable financial contribution | 3,120 | 2,051 | (1,069 | ) | 34.3 | % | ||||||||||
Other current liabilities | 54,527 | 50,945 | (3,583 | ) | 6.6 | % | ||||||||||
Total current liabilities | 2,523,449 | 1,108,919 | (1,414,530 | ) | 56.1 | % | ||||||||||
LONG-TERM LIABILITIES | ||||||||||||||||
Due to banks and financial institutions | 1,483,054 | 843,356 | (639,698 | ) | 43.1 | % | ||||||||||
Bonds payable | 2,134,032 | 2,513,543 | 379,511 | (17.8 | %) | |||||||||||
Notes payable | 215,578 | 145,497 | (70,080 | ) | 32.5 | % | ||||||||||
Miscellaneous payables | 23,052 | 27,152 | 4,100 | (17.8 | %) | |||||||||||
Amounts payable to related companies | 986,164 | 88 | (986,077 | ) | 100.0 | % | ||||||||||
Provisions | 261,393 | 325,947 | 64,554 | (24.7 | %) | |||||||||||
Deferred taxes | 79,757 | 33,397 | (46,359 | ) | 58.1 | % | ||||||||||
Reimbursable financial contribution | 13,837 | 8,124 | (5,713 | ) | 41.3 | % | ||||||||||
Other long-term liabilities | 93,325 | 53,262 | (40,063 | ) | 42.9 | % | ||||||||||
Total long-term liabilities | 5,290,193 | 3,950,367 | (1,339,826 | ) | 25.3 | % | ||||||||||
Minority interest | 4,030,871 | 3,395,513 | (635,358 | ) | (15.8 | )% | ||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||||||
Paid-in capital, no par value | 751,208 | 2,227,711 | 1,476,503 | 196.6 | % | |||||||||||
Reserve to equity revaluation | 3,756 | (11,139 | ) | (14,895 | ) | – | ||||||||||
Additional paid-in capital-share premium | 33,537 | 157,963 | 124,426 | – | ||||||||||||
Other reserves | 50,339 | 512 | (49,827 | ) | (99.0 | )% | ||||||||||
Total capital and reserves | 838,840 | 2,375,048 | 1,536,208 | 183.1 | % | |||||||||||
Future dividends reserve | – | – | – | – | ||||||||||||
Retained earnings | 179,955 | 187,542 | 7,587 | 4.2 | % | |||||||||||
Retained losses | – | – | – | – | ||||||||||||
Net income | (26,243 | ) | 9,618 | 35,861 | 136.7 | % | ||||||||||
Interim dividends | – | – | – | – | ||||||||||||
Development subsidiaries deficits | (2,918 | ) | (1,578 | ) | 1,340 | 45.9 | % | |||||||||
Total retained earnings | 150,794 | 195,583 | 44,788 | 29.7 | % | |||||||||||
Total shareholders’ equity | 989,634 | 2,570,631 | 1,580,996 | 159.8 | % |
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First quarter ended March 31, | ||||||||||||||||
2003 | 2004 | Change | % Change | |||||||||||||
(in millions of Ch$) | ||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 12,834,148 | 11,025,430 | (1,808,718 | ) | (14.1 | )% |
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CONSOLIDATED INCOME STATEMENT
First quarter ended March 31, | ||||||||||||||||
CONS. INCOME STATEMENT | 2003 | 2004 | Change | % Change | ||||||||||||
(in million of Ch$) | ||||||||||||||||
Revenues from Generation | 234,075 | 237,837 | 3,762 | 1.6 | % | |||||||||||
Revenues from Distribution | 434,581 | 476,175 | 41,594 | 9.6 | % | |||||||||||
Revenues from Other Businesses | 40,825 | 35,273 | (5,552 | ) | (13.6 | %) | ||||||||||
Consolidation Adjustments | (82,432 | ) | (72,951 | ) | 9,481 | 11.5 | % | |||||||||
Operating Revenues | 627,049 | 676,334 | 49,285 | 7.9 | % | |||||||||||
Op. Expenses from Generation | (133,101 | ) | (140,922 | ) | (7,821 | ) | (5.9 | %) | ||||||||
Op. Expenses from Distribution | (352,322 | ) | (372,561 | ) | (20,239 | ) | (5.7 | %) | ||||||||
Op.Expenses from Other Businesses | (28,522 | ) | (27,037 | ) | 1,485 | 5.2 | % | |||||||||
Consolidation Adjustments | 76,424 | 66,643 | (9,781 | ) | (12.8 | %) | ||||||||||
Operating Expenses | (437,521 | ) | (473,877 | ) | (36,356 | ) | (8.3 | %) | ||||||||
Operating Margin | 189,528 | 202,457 | 12,929 | 6.8 | % | |||||||||||
SG&A from Generation | (7,642 | ) | (8,062 | ) | (420 | ) | (5.5 | %) | ||||||||
SG&A from Distribution | (36,181 | ) | (34,851 | ) | 1,330 | 3.7 | % | |||||||||
SG&A from Other Businesses | (7,982 | ) | (7,367 | ) | 615 | 7.7 | % | |||||||||
Consolidation Adjustments | 7,090 | 6,599 | (491 | ) | (6.9 | %) | ||||||||||
Selling and Administrative Expenses | (44,715 | ) | (43,680 | ) | 1,035 | 2.3 | % | |||||||||
Operating Income | 144,813 | 158,776 | 13,963 | 9.6 | % | |||||||||||
Net Financial Income (Expenses) | (87,994 | ) | (75,969 | ) | 12,025 | 13.7 | % | |||||||||
Net Income from Related Companies | 10,606 | 8,905 | (1,700 | ) | (16.0 | %) | ||||||||||
Net other Non Operating Income (Expense) | (41,977 | ) | (12,815 | ) | 29,162 | 69.5 | % | |||||||||
Net of Monetary Exposure | 2,985 | 7,243 | 4,258 | 142.7 | % | |||||||||||
Positive Goodwill Amortization | (13,575 | ) | (13,275 | ) | 300 | 2.2 | % | |||||||||
Non Operating Income | (129,955 | ) | (85,910 | ) | 44,045 | 33.9 | % | |||||||||
Net Income before Taxes, Minority Interest and Negative Goodwill Amortization | 14,858 | 72,867 | 58,008 | — | ||||||||||||
Extraordinary Items | — | — | — | — | ||||||||||||
Income Tax | (39,782 | ) | (52,676 | ) | (12,894 | ) | (32.4 | %) | ||||||||
Minority Interest | (6,212 | ) | (15,202 | ) | (8,990 | ) | (144.7 | %) | ||||||||
Negative Goodwill Amortization | 4,893 | 4,630 | (263 | ) | (5.4 | %) | ||||||||||
NET INCOME | (26,243 | ) | 9,618 | 35,861 | 136.7 | % | ||||||||||
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CONSOLIDATED CASH FLOW
First quarter ended March 31, | ||||||||||||||||
2003 | 2004 | Change | % Change | |||||||||||||
(in millions of Ch$) | ||||||||||||||||
CASH FLOWS ORIGINATED FROM OPERATING ACTIVITIES | ||||||||||||||||
Net income (loss) for the year | (26,243 | ) | 9,618 | 35,861 | 136.7 | % | ||||||||||
Profit (losses) from sales of assets: | ||||||||||||||||
(Profit) loss on sale of fixed assets | 125 | 39 | (86 | ) | (68.7 | )% | ||||||||||
Charges (credits) which do not represent cash flows: | ||||||||||||||||
Depreciation | 118,814 | 100,134 | (18,680 | ) | (15.7 | %) | ||||||||||
Amortization of intangibles | 2,841 | 1,572 | (1,269 | ) | (44.7 | %) | ||||||||||
Write-offs and accrued expenses | 9,462 | 16,247 | 6,785 | 71.7 | % | |||||||||||
Accrued profit from related companies (less) | (10,702 | ) | (8,905 | ) | 1,797 | 16.8 | % | |||||||||
Accrued losses from related companies | 97 | – | (97 | ) | (100.0 | %) | ||||||||||
Amortization of positive goodwill | 13,575 | 13,275 | (300 | ) | (2.2 | %) | ||||||||||
Amortization of negative goodwill (less) | (4,893 | ) | (4,630 | ) | 263 | 5.4 | % | |||||||||
Net, price-level restatement | (4,277 | ) | (907 | ) | 3,370 | 78.8 | % | |||||||||
Net, foreign exchange effect | 1,292 | (6,337 | ) | (7,628 | ) | – | ||||||||||
Other credits which do not represent cash flow (less) | (9,307 | ) | (5,986 | ) | 3,320 | 35.7 | % | |||||||||
Other charges which do not represent cash flow | 42,595 | 25,180 | (17,415 | ) | (40.9 | %) | ||||||||||
Asset variations which affect cash flow: | ||||||||||||||||
Decrease in receivables accounts | (14,005 | ) | (20,364 | ) | (6,360 | ) | (45.4 | %) | ||||||||
Decrease (increase) in inventory | 1,293 | (266 | ) | (1,558 | ) | (120.5 | %) | |||||||||
Decrease (increase) in other assets | 29,837 | (28,063 | ) | (57,900 | ) | (194.1 | %) | |||||||||
Liabilities variations which affect cash flow: | ||||||||||||||||
(Decreased) increase in payable accounts related to operating income | (5,463 | ) | 1,520 | 6,983 | 127.8 | % | ||||||||||
Increase of payable interest | 4,547 | 32,201 | 27,654 | 608.2 | % | |||||||||||
Net increase (decrease) of payable income tax | 20,889 | 36,207 | 15,318 | 73.3 | % | |||||||||||
Increase (decrease) of other payable accounts related to non-operating income | (21,253 | ) | (33,582 | ) | (12,328 | ) | (58.0 | %) | ||||||||
Net (decrease) of payable value added tax and other taxes | 20,740 | 9,228 | (11,512 | ) | (55.5 | %) | ||||||||||
Profit related to minority interest | 6,212 | 15,202 | 8,990 | 144.7 | % | |||||||||||
NET POSITIVE CASH FLOW ORIGINATED FROM OPERATING ACTIVITIES | 176,175 | 151,384 | (24,791 | ) | (14.1 | )% | ||||||||||
CASH FLOWS ORIGINATED FROM FINANCING ACTIVITIES | ||||||||||||||||
Shares issued and subscribed | – | – | – | – | ||||||||||||
Proceeds from loans hired | 216,954 | 228,504 | 11,549 | 5.3 | % |
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First quarter ended March 31, | ||||||||||||||||
2003 | 2004 | Change | % Change | |||||||||||||
(in millions of Ch$) | ||||||||||||||||
Proceeds from debt issuance | 12,365 | 137,950 | 125,586 | – | ||||||||||||
Proceeds from loans obtained from related companies | – | – | – | – | ||||||||||||
Proceeds from other loans obtained from related companies | – | – | – | – | ||||||||||||
Other sources of financing | 5,815 | 15,307 | 9,492 | 163.2 | % | |||||||||||
Capital paid | – | – | – | – | ||||||||||||
Dividends paid | (20,448 | ) | (17,833 | ) | 2,615 | 12.8 | % | |||||||||
Loans, debt amortization (less) | (214,033 | ) | (362,770 | ) | (148,737 | ) | (69.5 | %) | ||||||||
Issuance debt amortization (less) | (186 | ) | (10,835 | ) | (10,649 | ) | – | |||||||||
Amortization of loans obtained from related companies | (4,445 | ) | – | 4,445 | 100.0 | % | ||||||||||
Amortization of other loans obtained from related companies | – | – | – | – | ||||||||||||
Expenses paid related to capital variations (less) | – | – | – | – | ||||||||||||
Expenses paid related to debt issuance (less) | – | (370 | ) | (370 | ) | – | ||||||||||
Other distributions related to financing (less) | (2,189 | ) | (5,533 | ) | (3,344 | ) | (152.8 | )% | ||||||||
NET (NEGATIVE) CASH FLOW ORIG. FROM FINANCING | (6,167 | ) | (15,580 | ) | (9,413 | ) | (152.6 | )% | ||||||||
CASH FLOWS ORIGINATED FROM INVESTING ACTIVITIES | ||||||||||||||||
Sale of fixed assets | 8,803 | 349 | (8,454 | ) | (96.0 | %) | ||||||||||
Sale of other investments | – | – | – | – | ||||||||||||
Sale of long-term investments | – | 2,483 | 2,483 | – | ||||||||||||
Collection upon other loans to related companies | 7,506 | 6,121 | (1,385 | ) | (18.5 | %) | ||||||||||
Other income on investments | 675 | 181 | (494 | ) | (73.2 | %) | ||||||||||
Additions to fixed assets (less) | (76,543 | ) | (56,532 | ) | 20,011 | 26.1 | % | |||||||||
Long-term investments (less) | (5 | ) | – | 5 | 100.0 | % | ||||||||||
Investment in financing instruments | – | – | – | – | ||||||||||||
Other loans to related companies (less) | (144 | ) | – | 144 | – | |||||||||||
Other investment disbursements (less) | (3,706 | ) | (1,069 | ) | 2,637 | 71.2 | % | |||||||||
NET (NEGATIVE) CASH FLOW ORIGINATED FROM INVESTMENT | (63,415 | ) | (48,467 | ) | 14,947 | 23.6 | % | |||||||||
NET POSITIVE CASH FLOW FOR THE PERIOD | 106,594 | 87,336 | (19,257 | ) | (18.1 | )% | ||||||||||
EFFECT OF PRICE-LEVEL RESTATEMENT UPON CASH AND CASH EQUIVALENT | (8,354 | ) | 12,653 | 21,007 | – | |||||||||||
NET VARIATION OF CASH AND CASH EQUIVALENT | 98,240 | 99,989 | 1,749 | 1.8 | % | |||||||||||
INITIAL BALANCE OF CASH AND CASH EQUIVALENT | 222,298 | 329,346 | 107,048 | 48.2 | % | |||||||||||
FINAL BALANCE OF CASH AND CASH EQUIVALENT | 320,537 | 429,335 | 108,798 | 33.9 | % |
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ITEM 2
CONSOLIDATED BALANCE SHEET ANALYSIS
Total assets show a decrease amounting to Ch$1,809 billion, or 14.1% mainly due to:
Fixed assets decreased Ch$1,582 billion or 16.1%, this is principally due to the sale of Central Canutillar for Ch$125.5 billion, transmission lines for Ch$21.6 billion, deconsolidation of Río Maipo for Ch$40.6 billion and Infraestructura 2000 for Ch$168.8 billion. Also, due to the effect of exchange rate on fixed assets of foreign subsidiaries as a result of applying Technical Bulletin No. 64.
Current assets decreased by Ch$80.0 billion due principally to:
• | the decrease of Ch$231.3 billion in other current assets, explained basically by deconsolidation of Canutillar and the sale of the transmission lines on April last year, lower forward contracts for Ch$50.2 billion, and lower time deposits and reserve funds from Infraestructura 2000 for Ch$32.0 billion; |
• | lower short term accounts receivable from related companies by Ch$53.0 billion; |
• | increase of time deposits for Ch$121.6 billion due to cash generation in Emgesa and Codensa; and |
• | increase of debtors due to sales of Ch$32.8 billion coming from Codensa and Cachoeira Dourada, partially compensated by lower debtors in Investluz by Ch$18.6 billion and the deconsolidation of Río Maipo by Ch$9.4 billion. |
Other long term assets registered a reduction of Ch$146.5 billion, explained by:
• | reduction in the negative and positive goodwill of net investments of Ch$70.5 billion, as a result of the amortization of a complete year for Ch$53.0 billion and the elimination of goodwill of Río Maipo of Ch$10.1 billion; |
• | reduction of other long term assets by Ch$51.4 billion due to lower effects of fair value of derivatives of Ch$34.5 billion and lower retirement benefits of Ch$14.0 billion; and |
• | reduction of investments in other companies by Ch$27.0 billion due to the Chilean Peso exchange effect on the Empresa Eléctrica de Bogotá of Ch$25.1 billion. |
Total liabilities show a decrease of Ch$1,809 billion, or 35.3%. This is mainly due to:
Current liabilities decreased by Ch$1,415 billion or 56.1%, principally explained by Ch$743.4 billion of lower obligations with banks as a result of the prepayments and refinancing performed last year, reduction of short term bank obligations of Ch$167.5 billion due to debt payments and reductions of obligations with the public (bonds) of Ch$461.5 billion.
Long term liabilities fell by Ch$1,340 billion, or 25.3%, mainly as a result of the reduction of Ch$986.1 billion in payable accounts to related companies following the conversion into equity of the debt with Elesur, a reduction of Ch$639.7 billion in obligations with banks and of Ch$70.1 billion in accounts payable, partially compensated by an increase of Ch$379.5 billion in the obligations with the public and an increase of Ch$64.6 billion in provisions.
Minority interests fell by Ch$635.4 billion as a result of the increase on the ownership in Cerj and Costanera, the deconsolidation of Infraestructura 2000 and the reduction of the net worth of the foreign subsidiaries due to the Technical Bulletin No. 64.
With regard to equity, it increased by Ch$1,581 billion respect to March 2003. This variation is principally explained by the subscription of shares of Ch$1,477 billion during the capital increase 2003 and the overprice of Ch$124.4 billion for the conversion into equity of the debt of Elesur and the local bonds B1 and B2.
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ITEM 3
CONSOLIDATED INCOME STATEMENT ANALYSIS
The table below breaks down operating revenues by country for the periods ended March 31, 2003 and 2004.
First quarter ended March 31, | ||||||||||||||||
2003 | 2004 | Change | % Change | |||||||||||||
(in millions of Ch$) | ||||||||||||||||
Electricity distribution subsidiaries (Chile) | 112,295 | 102,603 | (9,692 | ) | (8.6 | )% | ||||||||||
Non-electricity subsidiaries Chile(1) | 28,991 | 29,780 | 789 | 2.7 | % | |||||||||||
Total operating revenues from Chile, except generation business | 141,286 | 132,383 | (8,903 | ) | (6.3 | )% | ||||||||||
Edesur (Argentina) | 51,454 | 56,037 | 4,583 | 8.9 | % | |||||||||||
Distrilima/Edelnor (Peru) | 55,115 | 46,767 | (8,348 | ) | (15.1 | )% | ||||||||||
Cerj (Brazil) | 87,414 | 103,719 | 16,305 | 18.7 | % | |||||||||||
Investluz/Coelce (Brazil) | 50,384 | 71,260 | 20,876 | 41.4 | % | |||||||||||
Luz de Bogota/Codensa (Colombia) | 77,920 | 95,789 | 17,869 | 22.9 | % | |||||||||||
Total operating revenues, excluding Chile and generation business | 322,287 | 373,572 | 51,285 | 15.9 | % | |||||||||||
Endesa-Chile | 245,907 | 243,330 | (2,577 | ) | (1.0 | )% | ||||||||||
Less: intercompany transactions | (82,431 | ) | (72,951 | ) | 9,480 | (11.5 | )% | |||||||||
Total operating revenues | 627,049 | 676,334 | 49,285 | 7.9 | % |
(1) | Includes operating revenues ofCompañía Americana de Multiservicios Ltda.,Synapsis Soluciones y Servicios IT Ltda.,Inmobiliaria Manso de Velasco LimitadaandHolding Enersis y Soc. de Inv. |
The table below breaks down operating costs by country for the periods ended March 31, 2003 and 2004.
First quarter ended March 31, | ||||||||||||||||
2003 | 2004 | Change | % Change | |||||||||||||
(in millions of Ch$) | ||||||||||||||||
Electricity distribution subsidiaries (Chile) | (80,776 | ) | (73,419 | ) | 7,357 | (9.1 | )% | |||||||||
Non-electricity subsidiaries Chile(1) | (20,974 | ) | (22,677 | ) | (1,703 | ) | 8.1 | % | ||||||||
Total operating costs, Chile except generation business | (101,750 | ) | (96,096 | ) | 5,654 | (5.6 | )% | |||||||||
Edesur (Argentina) | (47,730 | ) | (48,645 | ) | (915 | ) | 1.9 | % | ||||||||
Distrilima/Edelnor (Peru) | (40,905 | ) | (34,810 | ) | 6,095 | (14.9 | )% | |||||||||
Cerj (Brazil) | (75,538 | ) | (85,471 | ) | (9,933 | ) | 13.1 | % | ||||||||
Investluz/Coelce (Brazil) | (38,774 | ) | (59,563 | ) | (20,789 | ) | 53.6 | % | ||||||||
Luz de Bogota/Codensa (Colombia) | (68,600 | ) | (70,653 | ) | (2,053 | ) | 3.0 | % | ||||||||
Total operating costs, excluding Chile and generation business | (271,547 | ) | (299,142 | ) | (27,595 | ) | 10.2 | % | ||||||||
Endesa-Chile | (140,648 | ) | (145,282 | ) | (4,634 | ) | 3.3 | % | ||||||||
Less: intercompany transactions | 76,424 | 66,643 | (9,781 | ) | (12.8 | )% | ||||||||||
Total operating costs | (437,521 | ) | (473,877 | ) | (36,356 | ) | 8.3 | % |
(1) | Includes operating costs ofCompañía Americana de Multiservicios Ltda.,Synapsis Soluciones y Servicios IT Ltda.,Inmobiliaria Manso de Velasco LimitadaandHolding Enersis y Soc. de Inv. |
The table below breaks down our selling and administrative expenses by country for the periods ended March 31, 2003 and 2004.
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First quarter ended March 31, | ||||||||||||||||
2003 | 2004 | Change | % Change | |||||||||||||
(in millions of Ch$) | ||||||||||||||||
Electricity distribution subsidiaries (Chile) | (8,049 | ) | (8,422 | ) | (373 | ) | 4.6 | % | ||||||||
Non-electricity subsidiaries Chile(1) | (7,472 | ) | (7,110 | ) | 362 | (4.8 | )% | |||||||||
Total selling and administrative expenses Chile, except generation business | (15,521 | ) | (15,532 | ) | (11 | ) | 0.1 | % | ||||||||
Edesur (Argentina) | (7,831 | ) | (7,001 | ) | 830 | (10.6 | )% | |||||||||
Distrilima/Edelnor (Peru) | (4,996 | ) | (4,089 | ) | 907 | (18.2 | )% | |||||||||
Cerj (Brazil) | (2,190 | ) | (4,462 | ) | (2,272 | ) | 103.7 | % | ||||||||
Investluz/Coelce (Brazil) | (9,967 | ) | (8,517 | ) | 1,450 | (14.5 | )% | |||||||||
Luz de Bogota/Codensa (Colombia) | (3,144 | ) | (2,360 | ) | 784 | (24.9 | )% | |||||||||
Total selling and administrative expenses, excluding Chile and generation business | (28,128 | ) | (26,429 | ) | 1,699 | (6.0 | )% | |||||||||
Endesa-Chile | (8,156 | ) | (8,319 | ) | (163 | ) | 2.0 | % | ||||||||
Less: intercompany transactions | 7,090 | 6,599 | (491 | ) | (6.9 | )% | ||||||||||
Total selling and administrative expenses | (44,715 | ) | (43,681 | ) | 1,034 | (2.3 | )% |
(1) | Includes selling and administrative expenses ofCompañía Americana de Multiservicios Ltda.,Synapsis Soluciones y Servicios IT Ltda.,Inmobiliaria Manso de Velasco LimitadaandHolding Enersis y Soc. de Inv. |
The table below breaks down our operating income by country for the periods ended March 31, 2003 and 2004.
First quarter ended March 31, | ||||||||||||||||
2003 | 2004 | Change | % Change | |||||||||||||
(in millions of Ch$) | ||||||||||||||||
Electricity distribution subsidiaries (Chile) | 23,470 | 20,762 | (2,708 | ) | (11.5 | )% | ||||||||||
Non-electricity subsidiaries Chile(1) | 545 | (7 | ) | (552 | ) | (101.3 | )% | |||||||||
Total operating income Chile except generation business | 24,015 | 20,755 | (3,260 | ) | (13.6 | )% | ||||||||||
Edesur (Argentina) | (4,107 | ) | 391 | 4,498 | n.a. | |||||||||||
Distrilima/Edelnor (Peru) | 9,214 | 7,868 | (1,346 | ) | (14.6 | )% | ||||||||||
Cerj (Brazil) | 9,686 | 13,786 | 4,100 | 42.3 | % | |||||||||||
Investluz/Coelce (Brazil) | 1,643 | 3,180 | 1,537 | 93.5 | % | |||||||||||
Luz de Bogota/Codensa (Colombia) | 6,176 | 22,776 | 16,600 | 268.8 | % | |||||||||||
Total operating income, excluding Chile and generation business | 22,612 | 48,001 | 25,389 | 112.3 | % | |||||||||||
Endesa-Chile | 97,103 | 89,729 | (7,374 | ) | (7.6 | )% | ||||||||||
Less: intercompany transactions | 1,083 | 291 | (792 | ) | (73.1 | )% | ||||||||||
Total operating income | 144,813 | 158,776 | 13,963 | 9.6 | % |
(1) | Includes operating income ofCompañía Americana de Multiservicios Ltda.,Synapsis Soluciones y Servicios IT Ltda.,Inmobiliaria Manso de Velasco LimitadaandHolding Enersis y Soc. de Inv. |
The table below sets forth non-operating income (expense) for the periods indicated.
First quarter ended March 31, | ||||||||||||||||
2003 | 2004 | Change | % Change | |||||||||||||
(in millions of Ch$) | ||||||||||||||||
Net interest expense | (87,994 | ) | (75,969 | ) | 12,025 | (13.7 | )% |
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First quarter ended March 31, | ||||||||||||||||
2003 | 2004 | Change | % Change | |||||||||||||
(in millions of Ch$) | ||||||||||||||||
Net income from related companies | 10,606 | 8,905 | (1,701 | ) | (16.0 | )% | ||||||||||
Net other non-operating income (expense) | (41,977 | ) | (12,815 | ) | 29,162 | (69.5 | )% | |||||||||
Net monetary exposure | 2,985 | 7,244 | 4,259 | 142.7 | % | |||||||||||
Goodwill amortization | (13,575 | ) | (13,275 | ) | 300 | (2.2 | )% | |||||||||
Non- operating expense | (129,955 | ) | (85,910 | ) | 44,045 | (33.9 | )% |
The table below sets forth our net income for the periods indicated.
First quarter ended March 31, | ||||||||||||||||
2003 | 2004 | Change | % Change | |||||||||||||
(in millions of Ch$) | ||||||||||||||||
Operating income | 144,813 | 158,776 | 13,963 | 9.6 | % | |||||||||||
Non-operating income | (129,955 | ) | (85,910 | ) | 44,045 | (33.9 | )% | |||||||||
Net income before taxes, minority interest and amortization of negative goodwill | 14,858 | 72,866 | 58,008 | 390.4 | % | |||||||||||
Income taxes | (39,782 | ) | (52,676 | ) | (12,894 | ) | 32.4 | % | ||||||||
Minority interest | (6,212 | ) | (15,202 | ) | (8,990 | ) | 144.7 | % | ||||||||
Amortization of negative goodwill | 4,893 | 4,630 | (263 | ) | (5.4 | )% | ||||||||||
Extraordinary items | 0 | 0 | 0 | n.a. | ||||||||||||
Net income | (26,243 | ) | 9,618 | 35,861 | n.a. |
Operating Income
Our operating income for the first quarter of 2004 increased 9.6%, or Ch$14.0 billion, to Ch$158.8 billion compared to the same period in 2003. Our operating income increased despite the deconsolidation of Río Maipo and Infraestructura Dos Mil, S.A. and the 15.7% appreciation of the Chilean peso against the U.S. dollar during the first quarter if 2004 compared to the same period in 2003.
During the first quarter of 2004, our generation business experienced an increase of 8.1% in physical sales, from 11,881 GWh in 2003 to 12,842 GWh in 2004. In addition, during the first quarter of 2004, our distribution business experienced an increase of 5% in physical sales, from 12,333 GWh in 2003 to 12,948 GWh in 2004. These increases are mainly due to economic recovery in most of the countries where we operate. Our customer base increased increased 4% from 10.15 million as March 31, 2003 to 10.55 million as of March 31, 2004.This amounts to 0.4 million new clients.
The increase of Ch$49.3 billion in operating revenues during the first quarter of 2004 compared to the same period in 2003, was partially offset by an increase of Ch$36.4 billion in operating costs during the first quarter of 2004 compared to the same period in 2003. Selling and administrative expenses decreased 2.3%, or Ch$1.0 billion during the first quarter of 2004 compared to the same period in 2003.
Non-Operating Income
Non-Operating Income registered a loss of Ch$85.9 billion, which represents a decrease of Ch$44.0 billion respect to a loss of Ch$130.0 billion booked as of March 2003.
This is mainly explained by the following.
Net financial expenses decreased by 13.7% or Ch$12.0 billion, going down from Ch$88.0 billion as of March 2003, to Ch$76.0 billion. This decrease is mainly the result of an important reduction in debt.
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Investments in related companies decreased Ch$1.7 billion, going down from a net profit of Ch$10.6 billion as of March 2003 to a net profit of Ch$8.9 billion as of March 2004, primarily due to lower profits of related companies, namely CIEN by Ch$5.0 billion, partially compensated by higher profits on GasAtacama Holding Ltda. amounting to Ch$1.4 billion and CGTF amounting to Ch$2.4 billion.
Positive goodwill amortization remained basically flat with a decrease reaching Ch$13.3 billion. This lower amortization is a consequence of the Chilean Peso appreciation affecting foreign subsidiaries accounted in dollars.
Net other non-operating income registered a loss of Ch$12.8 billion, going up from a loss of Ch$42.0 billion registered as of March 2003. The main reasons that explain this variation are detailed as follows:
• | indemnification of Ch$7.8 billion received by Edesur due to the Azopardo substation fire; |
• | lower losses of Ch$6.5 billion due to the application of Technical Bulletin No. 64; |
• | lower provisions of Ch$10.0 billion for legal contingency and litigation; |
• | lower expenses of Ch$3.5 billion on related companies; |
• | lower expenses of Ch$4.4 billion on updating pensions and UFIR Brazil taxes; and |
• | higher net income of Ch$0.9 billion from power balances on the CDEC-SING. |
The above were partially compensated by:
• | higher expenses of Ch$4.7 billion due to equity taxes on Colombia; and |
• | lower dividends of Ch$0.5 billion received from related companies. |
Net monetary exposure shows a net positive variation of Ch$4.3 billion improving from a profit of Ch$3.0 billion as of March 31, 2003, to a higher profit of Ch$7.2 billion during this period. This was principally due to the effects of the nominal depreciation of the Chilean Peso against the U.S. dollar by 3.8% as of March 31, 2004 compared to the nominal depreciation by 1.8% as of March 2003. These effects were compensated to a large extent by the exchange hedging policy that the Company keeps in place.
Income and deferred taxes registered an increase amounting to Ch$12.9 billion from Ch$40.0 billion as of March 2003 to Ch$52.7 billion as of March 2004. This is mainly explained by a Ch$2.3 billion higher income tax basically coming from Codensa, and a higher effect from deferred taxes of Ch$10.6 billion, related mainly to the subsidiaries on Argentina.
Negative goodwill amortization decreased from Ch$4.9 billion as of March 2003 to Ch$4.6 billion as of March 2004 due to lower amortizations, resulting from the Chilean Peso exchange rate variations.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
ENERSIS S.A. | ||||
Date: June 30, 2004 | By: | /s/ Mario Valcarce | ||
Name: | Mario Valcarce | |||
Title: | Chief Executive Officer | |||