FORM 6-K
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of February, 2005
Commission File Number: 001-12440
ENERSIS S.A.
Santa Rosa 76
Santiago, Chile
Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F:
Form 20-F [X] Form 40-F [ ]
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes [ ] No [X]
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 [ ] No [X]
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 [ ] No [X]
If “Yes” is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): N/A
ENERSIS ANNOUNCES CONSOLIDATED RESULTS FOR
YEAR ENDED DECEMBER 31, 2004
Highlights for the Period
[All figures in Chilean Pesos]
Net Income strongly grew 246.7%, based on an important 15.4% improvement in Operating Income, as well as a 20.9% increase in Non Operating Income.
Operating Income improved basically as a consequence of higher Operating Income in our :
Generation subsidiaries in Colombia, Argentina and Brazil
Distribution subsidiaries in Colombia, Brazil, Chile and Argentina
Non operating income also improved, and mainly due to a :
20.9% reduction in net financial expenses
73.5% increase in net income from related companies
226.0% increase in net of monetary exposure
Physical sales confirmed the increasing trend exhibited since 2H03, as a reflection of the recovery of the economy.
Physical sales in generation increased 5.5%, from 50,633 GWh to 53,443 GWh
Physical sales in distribution increased 5.5%, from 49,577 GWh to 52,314 GWh
As in previous quarters, our client base grew again, adding more than 440,000 new clients to be served by our distribution subsidiaries.
Demand for electricity showed a sustained growth in all our concession areas, as follows :
Argentina: 5.3%
Brazil: 4.5%
Chile: 7.6%
Colombia: 4.3%
Peru: 7.1%
As result of our efforts to improve the overall efficiency in our distribution business, labor productivity increased 6.4%, from 1,429 clients per employee in 2003 to 1,521 in 2004.
In Chile, the new hydroelectric power plant Ralco was authorized to increase its installed capacity from 570MW up to 690MW.
As planned, indebtedness was reduced by US$206 million.
Moody’s upgrade rating of Enersis to Ba1 from Ba2 with stable outlook.
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Table of
Contents
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www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 3 |
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General Information
(Santiago, Chile, January 27, 2004) Enersis (NYSE: ENI), announced today consolidated financial results year ended December, 2004. All figures are in both US$ and Ch$, and in accordance with Chilean Generally Accepted Accounting Principles (Chilean GAAP) as shown in the standardized form required by Chilean authorities (FECU). Variations refer to the comparison between 2004 and 2003 and figures have been adjusted by the CPI variation with the one-month lag accounting convention between both periods, equal to 2.5%.
For the purpose of converting Chilean pesos (Ch$) into US dollars (US$), we have used the exchange rate prevailing as of December 2004, equal to US$1 = Ch$557.40, which compared to the exchange rate of US$1 = Ch$593.80 prevailing as of December 2003, represents a Chilean nominal peso appreciation of 6.13% against the US$.
The consolidation includes the following investment vehicles and companies,
a) In Chile: Endesa Chile (NYSE: EOC), Chilectra, Synapsis, CAM and Inm. Manso de Velasco.
b) Outside Chile: Distrilima (Peru), Cerj and Investluz (Brazil), Edesur (Argentina), Luz de Bogotá (Colombia) and Enersis Internacional.
In the following pages you will find a detailed analysis of Financial Statements, a brief explanation for most of variations, and comments about the main items of Income Statement and Cash Flow Statement compared to the information booked as of December, 2003.
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Simplified Organizational Structure
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Market Information
Equity Market
The improved risk perception of Latin America, together with the recovery in demand for electricity in the majority of the areas under concession, was reflected in a sustained growth in the liquidity of Enersis shares, both on the local market and New York Stock Exchange.
During the year 2004, market capitalization increased 16.0% from US$4,729 million to US$5,486 million. Additionally, the share price rose from $86.0 to $93.66.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 6 |
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During 2004, the ADR price rose by 15.6%, from US$7.36 to US$8.51, which compares very favorably with respect to the 3.1% variation of the Dow Jones Index for the same period.
Over the last 12 months, the Enersis unit price has increased 6.1%, from € 5.86 to € 6.22.
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Market Perception
The latest research published on Enersis shows the following target prices for the ADR.
Table 1
Publication Date | Company | Main Analyst | Target Price US$ (*) | Recommendation |
January 17, 2005 | Larraín Vial | Cristian Ramirez | 8.42 | Outperform |
October 29, 2004 | Credit Suisse | Emerson Leite | 8.00 | Outperform |
October 28, 2004 | Bear Stearns | Rowe Michels | 10.0 | Outperform |
October 25, 2004 | BBVA | Mariela Uturriaga | 8.30 | Outperform |
October 18, 2004 | UBS | Gustavo Gattass | 7.56 | Neutral 2 |
September 28, 2004 | Santander | Raimundo Valdés | 8.20 | Buy |
September 22, 2004 | Smith Barney | Stephen Trent | 7.50 | Hold |
August 9, 2004 | Raymond James | Ricardo Cavanagh | 8.00 | Buy |
July 28, 2004 | Merrill Lynch | Frank McGann | 8.80 | Buy |
ADR average target price (US$) | 8.31 | |||
Debt Market
The risk perception of bondholders has improved during 2004, reaching prices over 105% of par value, as shown in the following chart. This reflects the market confidence in the capacity of Enersis to pay its debt.
Enersis Yankee Bonds
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Risk Rating Classification
International risk rating classification:
Standard & Poor’s: | BBB- / Stable |
Rationale
“The BBB- corporate credit rating on Enersis reflects its solid business position in Chile and significantly improved financial profile, offset by the weak performance of its investments in Argentina and Brazil”.
Fitch: | BBB- / Stable> |
Rationale
“The ratings and Rating Outlook of Enersis reflect the success of the company’s financial strategy implemented during 2003 and early 2004, which resulted in an improved capital structure and increased financial flexibility consistent with Fitch Ratings’ expectations”.
Moody’s: | Ba1 / Stable(upgrade 25/01/05) |
Rationale
“Key macroeconomic improvements and stronger financial performance support the rating upgrade. In Moody's view a number of regulatory and company developments in 2004 help support on-going improvements at Enersis”.
Local risk rating classification:
Feller Rate: | A+ / Stable |
Fitch: | A / Stable |
Humphrey’s: | BBB / Stable |
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Consolidated Income Statement
Under Chilean GAAP, million Ch$
CONS. INCOME STATEMENT - (million Ch$) | YE 03 | YE 04 | Var 04-03 | Chg % |
Revenues from Generation | 918,634 | 1,012,305 | 93,671 | 10.2% |
Revenues from Distribution | 1,651,253 | 1,858,860 | 207,607 | 12.6% |
Revenues from Engineering and Real Estate | 36,272 | 30,711 | (5,561) | (15.3%) |
Revenues from Other Businesses | 144,867 | 150,320 | 5,453 | 3.8% |
Consolidation Adjustments | (332,575) | (343,271) | (10,696) | (3.2%) |
Operating Revenues | 2,418,451 | 2,708,925 | 290,474 | 12.0% |
Costs from Generation | (543,006) | (611,808) | (68,802) | (12.7%) |
Costs from Distribution | (1,316,948) | (1,458,325) | (141,377) | (10.7%) |
Costs from Engineering and Real Estate | (31,966) | (25,816) | 6,150 | 19.2% |
Costs from Other Businesses | (105,871) | (118,542) | (12,671) | (12.0%) |
Consolidation Adjustments | 302,579 | 316,403 | 13,824 | 4.6% |
Operating Costs | (1,695,212) | (1,898,088) | (202,876) | (12.0%) |
Operating Margin | 723,239 | 810,837 | 87,598 | 12.1% |
SG&A from Generation | (31,018) | (33,003) | (1,985) | (6.4%) |
SG&A from Distribution | (140,427) | (139,121) | 1,306 | 0.9% |
SG&A from Engineering and Real Estate | (2,822) | (3,449) | (627) | (22.2%) |
SG&A from Other Businesses | (30,118) | (30,731) | (613) | (2.0%) |
Consolidation Adjustments | 30,644 | 29,669 | (975) | (3.2%) |
Selling and Administrative Expenses | (173,741) | (176,635) | (2,894) | (1.7%) |
Operating Income | 549,498 | 634,202 | 84,704 | 15.4% |
Interest Income | 68,916 | 73,636 | 4,720 | 6.8% |
Interest Expense | (430,943) | (360,140) | 70,803 | 16.4% |
Net Financial Income (Expenses) | (362,027) | (286,504) | 75,523 | 20.9% |
Equity Gains from Related Companies | 18,198 | 31,146 | 12,948 | 71.2% |
Equity Losses from Related Companies | (243) | (1) | 242 | 99.6% |
Net Income from Related Companies | 17,955 | 31,145 | 13,190 | 73.5% |
Other Non Operating Income | 195,206 | 133,633 | (61,573) | (31.5%) |
Other Non Operating Expenses | (252,038) | (207,356) | 44,682 | 17.7% |
Net other Non Operating Income (Expense) | (56,832) | (73,723) | (16,891) | (29.7%) |
Price Level Restatement | (4,612) | (777) | 3,835 | 83.2% |
Foreign Exchange Effect | (6,206) | 14,407 | 20,613 | 332.1% |
Net of Monetary Exposure | (10,818) | 13,630 | 24,448 | 226.0% |
Positive Goodwill Amortization | (54,559) | (53,201) | 1,358 | 2.5% |
Non Operating Income | (466,281) | (368,653) | 97,628 | 20.9% |
Net Inc b. Taxes, Min Int and Neg Goodwill Amort. | 83,217 | 265,549 | 182,332 | 219.1% |
Extraordinary Items | - | - | - | - |
Income Tax | (42,610) | (137,241) | (94,631) | (222.1%) |
Minority Interest | (80,283) | (101,107) | (20,824) | (25.9%) |
Negative Goodwill Amortization | 52,456 | 17,107 | (35,349) | (67.4%) |
NET INCOME | 12,780 | 44,308 | 31,528 | 246.7% |
R.A.I.I.D.A.I.E. | 1,040,675 | 1,138,905 | 98,230 | 9.4% |
RAIIDAIE: Net income before taxes, interest, depreciation, amortization and extraordinary items (as defined by local SEC).
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Under Chilean GAAP, thousand US$
CONS. INCOME STATEMENT - (thousand US$) | YE 03 | YE 04 | Var 04-03 | Chg % |
Revenues from Generation | 1,648,070 | 1,816,119 | 168,049 | 10.2% |
Revenues from Distribution | 2,962,420 | 3,334,876 | 372,456 | 12.6% |
Revenues from Engineering and Real Estate | 65,074 | 55,097 | (9,977) | (15.3%) |
Revenues from Other Businesses | 259,898 | 269,681 | 9,783 | 3.8% |
Consolidation Adjustments | (596,654) | (615,843) | (19,189) | (3.2%) |
Operating Revenues | 4,338,807 | 4,859,930 | 521,123 | 12.0% |
Costs from Generation | (974,177) | (1,097,610) | (123,433) | (12.7%) |
Costs from Distribution | (2,362,662) | (2,616,299) | (253,637) | (10.7%) |
Costs from Engineering and Real Estate | (57,348) | (46,315) | 11,033 | 19.2% |
Costs from Other Businesses | (189,937) | (212,670) | (22,733) | (12.0%) |
Consolidation Adjustments | 542,840 | 567,641 | 24,801 | 4.6% |
Operating Costs | (3,041,285) | (3,405,253) | (363,968) | (12.0%) |
Operating Margin | 1,297,522 | 1,454,677 | 157,155 | 12.1% |
SG&A from Generation | (55,648) | (59,209) | (3,561) | (6.4%) |
SG&A from Distribution | (251,932) | (249,589) | 2,343 | 0.9% |
SG&A from Engineering and Real Estate | (5,063) | (6,188) | (1,125) | (22.2%) |
SG&A from Other Businesses | (54,033) | (55,133) | (1,100) | (2.0%) |
Consolidation Adjustments | 54,977 | 53,227 | (1,750) | (3.2%) |
Selling and Administrative Expenses | (311,699) | (316,891) | (5,192) | (1.7%) |
Operating Income | 985,823 | 1,137,786 | 151,963 | 15.4% |
Interest Income | 123,638 | 132,106 | 8,468 | 6.8% |
Interest Expense | (773,131) | (646,107) | 127,024 | 16.4% |
Net Financial Income (Expenses) | (649,492) | (514,001) | 135,491 | 20.9% |
Equity Gains from Related Companies | 32,648 | 55,877 | 23,229 | 71.2% |
Equity Losses from Related Companies | (436) | (2) | 434 | 99.6% |
Net Income from Related Companies | 32,212 | 55,875 | 23,663 | 73.5% |
Other Non Operating Income | 350,208 | 239,743 | (110,465) | (31.5%) |
Other Non Operating Expenses | (452,167) | (372,006) | 80,161 | 17.7% |
Net other Non Operating Income (Expense) | (101,959) | (132,262) | (30,303) | (29.7%) |
Price Level Restatement | (8,274) | (1,394) | 6,880 | 83.2% |
Foreign Exchange Effect | (11,134) | 25,847 | 36,981 | 332.1% |
Net of Monetary Exposure | (19,408) | 24,453 | 43,861 | 226.0% |
Positive Goodwill Amortization | (97,881) | (95,445) | 2,436 | 2.5% |
Non Operating Income | (836,529) | (661,380) | 175,149 | 20.9% |
Net Inc b. Taxes, Min Int and Neg Goodwill Amort. | 149,295 | 476,407 | 327,112 | 219.1% |
Extraordinary Items | - | - | - | - |
Income Tax | (76,444) | (246,216) | (169,772) | (222.1%) |
Minority Interest | (144,031) | (181,390) | (37,359) | (25.9%) |
Negative Goodwill Amortization | 94,108 | 30,691 | (63,417) | (67.4%) |
NET INCOME | 22,927 | 79,490 | 56,563 | 246.7% |
R.A.I.I.D.A.I.E. | 1,867,017 | 2,043,245 | 176,229 | 9.4% |
RAIIDAIE: Net income before taxes, interest, depreciation, amortization and extraordinary items (as defined by local SEC).
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Consolidated Income Statement Analysis
(Source in $ FECU)
Net Income
As of December 2004, the company registered profits of $44,308 million that represents an increase of $31,528 million or 246.2% respect to profits of $12,780 million achieved in 2003. The increase in results partially is explained mainly by the improved operating income and the lower interest expense during the period, partially offset by the increase in tax payments, higher minority interest and lower negative goodwill. This variation is explained as follows:
Operating Income
Activities of Enersis are developed through subsidiaries in 5 different countries where the Company operates. Core business of the Company are Generation and Distribution of electricity.
YE 03 | YE 04 | |||||||
Million Ch$ | Operating Revenues | Operating Costs | SG & A | Operating Income | Operating Revenues | Operating Costs | SG & A | Operating Income |
Endesa | 943,288 | (564,208) | (32,107) | 346,973 | 1,032,662 | (629,191) | (34,446) | 369,025 |
Chilectra S.A. | 444,803 | (314,129) | (35,299) | 95,375 | 483,006 | (342,987) | (42,408) | 97,611 |
Edesur S.A. | 188,541 | (165,195) | (28,724) | (5,378) | 208,983 | (181,425) | (27,811) | (253) |
Distrilima (Edelnor) | 180,346 | (135,623) | (17,526) | 27,197 | 182,363 | (137,720) | (16,818) | 27,825 |
Cerj | 325,533 | (289,209) | (11,198) | 25,126 | 354,638 | (293,145) | (14,600) | 46,893 |
Investluz (Coelce) | 212,572 | (162,022) | (30,374) | 20,176 | 264,358 | (229,674) | (29,794) | 4,890 |
Codensa S.A. | 299,459 | (250,770) | (17,306) | 31,383 | 365,513 | (273,375) | (7,689) | 84,449 |
CAM Ltda. | 94,011 | (73,624) | (6,305) | 14,082 | 100,424 | (84,077) | (7,113) | 9,234 |
Inmobiliaria Manso de Velasco Ltda. | 11,617 | (10,764) | (1,733) | (880) | 10,354 | (8,432) | (2,008) | (86) |
Synapsis Soluciones y Servicios IT Ltda. | 46,415 | (31,089) | (6,369) | 8,957 | 45,447 | (33,363) | (6,084) | 6,000 |
Enersis Holding and other investment vehicles | 4,440 | (1,158) | (17,443) | (14,161) | 4,448 | (1,102) | (17,533) | (14,187) |
Consolidation Adjustments | (332,574) | 302,579 | 30,643 | 648 | (343,271) | 316,403 | 29,669 | 2,801 |
Total Consolidation | 2,418,451 | (1,695,212) | (173,741) | 549,498 | 2,708,925 | (1,898,088) | (176,635) | 634,202 |
YE 03 | YE 04 | |||||||
Million Ch$ | Operating Revenues | Operating Costs | SG & A | Operating Income | Operating Revenues | Operating Costs | SG & A | Operating Income |
Endesa | 1,692,300 | (1,012,214) | (57,601) | 622,485 | 1,852,641 | (1,128,796) | (61,798) | 662,047 |
Chilectra S.A. | 797,996 | (563,561) | (63,328) | 171,107 | 866,534 | (615,334) | (76,082) | 175,118 |
Edesur S.A. | 338,251 | (296,367) | (51,532) | (9,648) | 374,925 | (325,484) | (49,894) | (454) |
Distrilima (Edelnor) | 323,549 | (243,314) | (31,442) | 48,793 | 327,167 | (247,076) | (30,172) | 49,919 |
Cerj | 584,020 | (518,854) | (20,090) | 45,077 | 636,236 | (525,915) | (26,193) | 84,128 |
Investluz (Coelce) | 381,363 | (290,675) | (54,492) | 36,197 | 474,270 | (412,045) | (53,452) | 8,773 |
Codensa S.A. | 537,243 | (449,892) | (31,048) | 56,302 | 655,746 | (490,447) | (13,794) | 151,505 |
CAM Ltda. | 168,660 | (132,085) | (11,311) | 25,264 | 180,165 | (150,838) | (12,761) | 16,566 |
Inmobiliaria Manso de Velasco Ltda. | 20,841 | (19,311) | (3,109) | (1,579) | 18,576 | (15,127) | (3,602) | (154) |
Synapsis Soluciones y Servicios IT Ltda. | 83,271 | (55,775) | (11,426) | 16,069 | 81,534 | (59,855) | (10,915) | 10,764 |
Enersis Holding and other investment vehicles | 7,966 | (2,078) | (31,294) | (25,405) | 7,980 | (1,977) | (31,455) | (25,452) |
Consolidation Adjustments | (596,652) | 542,840 | 54,975 | 1,163 | (615,843) | 567,641 | 53,227 | 5,025 |
Total Consolidation | 4,338,807 | (3,041,285) | (311,699) | 985,823 | 4,859,930 | (3,405,253) | (316,891) | 1,137,786 |
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Operating income as of December 2004 amounted to $634,202 million, reflecting an increase of $84,704 million, or 15.4%, with respect to the previous year. This increase is principally due to an important increase in operating income in the Generation subsidiaries in Colombia, Brazil and Argentina and in the Distribution subsidiaries in Colombia and Argentina.
If we compare the operating income, deducting the effects of the appreciation of the Chilean Peso against the US Dollar, (6.1% between December 2003 and December 2004 from $593.80 to $557.40, respectively) the increase in Operating Income would have been 22.1%.
Non Operating Income
The company’s non-operating result improved by $97,628 million or 20.9% decreasing from a loss of $466,281 million as of December 31, 2003 to a loss of $368,653 million as of December 31 this year. This is principally due to lower interest expense, to the effects of exchange differences and to profits on investments in related companies.
Financial expenses net of financial incomedecreased by $75,523 million or 20.9% from a net expense of $362,027 million in 2003 to a net expense of $286,504 million in 2004. This reduction in interest expense is mainly the result of lower indebtedness and a decline in interest rates.
Income from investments in related companiesshows an increase of $13,190 million or 73.5%, rising from a profit of $17,955 million as of December 2003 to a profit of $31,145 million as of December 2004. This is due bassically to the registered profit of $11,857 million from the affiliate Central Fortaleza (CGTF) as a result of the initiation of the operations of the plant at the beginning of the year 2004 and to the increase of $6,486 million in the profit registered from Gas Atacama, partially compensated by the reduction of $4,975 million in the profit registered from CIEN.
Amortization on positive goodwillremains at the same levels with no significant variations. This amounted to $53,201 million, a reduction of 2.5%. The reduced amortization is due to the effect of the Chilean Peso exchange rate on the foreign subsidiaries controlled in US Dollars and that have a positive goodwill.
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Net other non-operating income and expensesreflect an increase of $16,891 million, rising from a net loss of $56,832 million in December 2003 to a net loss of $73,723 million as of December 2004. The principal reasons for this variation are as follows:
A decrease of $84,677 million in profits on the sale of investments.
A rise of $12,549 million in net expenses on the recalculation of power in the Central Interconnected System.
An increase of $4.488 million in the Equity Tax of 1.2% on all companies established in Colombia.
Net losses amounting to $5,240 million on derivative instrument contracts.
A reduction of $2,434 million in dividends from affiliated companies.
The above was partially compensated by the following:
A reduction of $12,252 million in losses as a result of the adjustment on the conversion to Chilean norms following the application of Technical Bulletin Nº 64, principally on the subsidiaries in Brazil. This was mainly produced by the appreciation of the Brazilian Real against the US Dollar during the year 2003 and its impact on the structure of the monetary assets and liabilities.
A reduction of $56,225 million in provisions on contingencies and lawsuits.
A reduction of $16,182 million in expenses on Brazilian Pension Schemes.
Indemnity of $7,657 million received by Edesur from Alstom-Pirelli on the case involving the Azopardo sub-station.
Price-level restatement and foreign exchange differencesas of December 2004 show an increase of $24,448 million with respect to the same period of last year, improving from a loss of $10,818 million as of December 2003 to a profit of $13,630 million during the current period. This is principally due to the effects of holding, during the first half of the year, an active position, when the US Dollar was at its highest rate in the year, then having a more passive position, when the US Dollar fell till it assumed a revaluation of the Chilean Peso of 6.1% as of December 2004. During the previous year, the revaluation of the Chilean Peso was 17.4% and this had a negative effect on the position we were holding in 2003.
Income Tax and Deferred Taxes.As of December 2004 the company shows an increase of $94,631 million in tax expenses with respect of the previous year, rising from $42,610 in December 2003 to $137,241 million in the current year.
The reduction of $12,560 million in income tax is mainly explained by the fact that in the year 2003 the company recognized the tax on profits resulting from the sale of its investments in Río Maipo, Canutillar and Infraestructura 2000 amounting to $23,120 million. This was partially compensated by the increase in taxes this year due to the increase of $6,452 million and $8,749 million in taxable profits in the subsidiaries, Codensa and Emgesa, respectively, and the rise in the subsidiaries Edelnor and Cerj of $3,400 million and $3,247 million, respectively.
With regard to deferred taxes, these show a negative variation of $107,191 million, explained mainly by the generating subsidiaries in Argentina (Costanera and Chocón) for $47,961 million. This is the outcome of the fact that in June, 2003 the companies registered for the first time the effects of tax losses (mainly the devaluation of the Argentine Peso), that the companies had as of that date ($24,332 million in profits from deferred taxes). However, as a result of the recovery in the exchange rate and of the improved results of the companies, the tax loss has reduced, reflecting losses of $14,028 million as of December, 2004 due to the reversal in deferred taxes. Other companies that show significant increases in expenses on deferred taxes
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PRESS RELEASE | |
include: Cerj with $27,783 million, Enersis with $12,899 million, Edelnor with $5,150 million, Endesa Chile with $8,362 million and Edegel with $5,352 million.
Amortization on negative goodwillin 2004 amounted to $17,107 million which, when compared to the same period of the previous year, reflects a reduction of $35,349 million. The reduction in the amortization is explained by the acceleration that took place in 2003 of the greater added value following the investment in Cerj that took place at the beginning of 2003.
Evolution Of Key Financial Ratios
Indicator | Unit | YE 03 | YE 04 | Var 04-03 | Chg % |
Liquidity | Times | 1.00 | 1.49 | 0.49 | 49.0% |
Acid ratio test * | Times | 0.95 | 1.40 | 0.45 | 47.5% |
Working capital | million Ch$ | 1,151 | 500,270 | 499,119 | 43,363.9% |
Working capital | thousands US$ | 2,065 | 897,506 | 895,441 | 43,363.9% |
Leverage ** | Times | 0.82 | 0.85 | 0.03 | 3.7% |
Short-term debt | % | 0.23 | 0.21 | (0.02) | (8.7%) |
Long-term debt | % | 0.77 | 0.79 | 0.02 | 2.6% |
Interest Coverage*** | Times | 2.41 | 3.16 | 0.75 | 31.1% |
EBITDA**** | th. US$ | 1,730,574 | 1,830,811 | 100,237 | 5.8% |
ROE | % | 0.49% | 1.73% | 1.24% | 253.1% |
ROA | % | 0.12% | 0.42% | 0.30% | 250.0% |
** Using the ratio = Total debt / (equity + minority interest)
***EBITDAEI/Interest expenses = (Earnings before taxes+Fin exp+Net non operating income+depreciation+Positive Goodwill) /Interest expenses
****EBITDA: Operating Income+Depreciation+Amortization
Liquidity ratioas of December 2004 was 1.49, a 49.0% improvement over the ratio as of the same date in the previous year. This reflects the improved financial situation of the company following the Capital Increase and the rescheduling of debts carried out in the last two years.
Leverage ratioas of December 31, 2004 was 0.85 times, reflecting a slight fall of 3.7% from the ratio for the same period of the year 2003. This is fundamentally due to the effect of the exchange rate in Chile.
On the other hand,return on equityimproved to 1.73%. As of the same date of last year, this was 0.49%. This increase in yield is the result of a larger profit for the period with respect to last year.
Return on assetsrose from 0.12% in December 2003 to 0.42% as of December 2004. This increase is basically due to the improved results for the period and to the reduction in total assets. as of December 2004 was 0.12%, the same amount of December 2003.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 15 |
PRESS RELEASE | |
Consolidated Balance Sheet
Assets Under Chilean GAAP, Million Ch$
ASSETS - (million Ch$) | YE 03 | YE 04 | Var 04-03 | Chg % |
CURRENT ASSETS | ||||
Cash | 27,029 | 56,494 | 29,465 | 109.0% |
Time deposits | 262,661 | 450,744 | 188,083 | 71.6% |
Marketable securities | 11,435 | 12,322 | 887 | 7.8% |
Accounts receivable, net | 478,850 | 528,740 | 49,890 | 10.4% |
Notes receivable, net | 8,572 | 2,828 | (5,744) | (67.0%) |
Other accounts receivable, net | 96,549 | 63,814 | (32,735) | (33.9%) |
Amounts due from related companies | 17,487 | 114,386 | 96,899 | 554.1% |
Inventories | 45,416 | 50,981 | 5,565 | 12.3% |
Income taxes recoverable | 62,818 | 97,638 | 34,820 | 55.4% |
Prepaid expenses | 16,864 | 45,011 | 28,147 | 166.9% |
Deferred income taxes | 53,024 | 60,006 | 6,982 | 13.2% |
Other current assets | 75,777 | 36,117 | (39,660) | (52.3%) |
Total currrent assets | 1,156,481 | 1,519,081 | 362,600 | 31.4% |
PROPERTY, PLANT AND EQUIPMENT | ||||
Land | 118,340 | 122,607 | 4,267 | 3.6% |
Buildings and infraestructure and works in progress | 10,305,285 | 9,864,986 | (440,299) | (4.3%) |
Machinery and equipment | 1,806,292 | 1,721,120 | (85,172) | (4.7%) |
Other plant and equipment | 356,792 | 398,709 | 41,917 | 11.7% |
Technical appraisal | 634,958 | 584,183 | (50,775) | (8.0%) |
Sub - Total | 13,221,667 | 12,691,605 | (530,062) | (4.0%) |
Accumulated depreciation | (4,922,898) | (5,006,783) | (83,885) | (1.7%) |
Total property, plant and equipment | 8,298,769 | 7,684,822 | (613,947) | (7.4%) |
OTHER ASSETS | ||||
Investments in related companies | 184,717 | 191,465 | 6,748 | 3.7% |
Investments in other companies | 136,797 | 49,993 | (86,804) | (63.5%) |
Positive goodwill, net | 799,907 | 733,535 | (66,372) | (8.3%) |
Negative goodwill, net | (81,215) | (56,736) | 24,479 | 30.1% |
Long-term receivables | 131,133 | 125,910 | (5,223) | (4.0%) |
Amounts due from related companies | 132,332 | 456 | (131,876) | (99.7%) |
Intangibles | 79,100 | 80,709 | 1,609 | 2.0% |
Accumulated amortization | (40,254) | (44,014) | (3,760) | (9.3%) |
Others assets | 185,126 | 222,304 | 37,178 | 20.1% |
Total other assets | 1,527,643 | 1,303,622 | (224,021) | (14.7%) |
TOTAL ASSETS | 10,982,893 | 10,507,525 | (475,368) | (4.3%) |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 16 |
PRESS RELEASE | |
Assets Under Chilean GAAP, Thousand US$
ASSETS - (thousand US$) | YE 03 | YE 04 | Var 04-03 | Chg % |
CURRENT ASSETS | ||||
Cash | 48,491 | 101,353 | 52,862 | 109.0% |
Time deposits | 471,225 | 808,654 | 337,429 | 71.6% |
Marketable securities | 20,515 | 22,106 | 1,591 | 7.8% |
Accounts receivable, net | 859,078 | 948,583 | 89,505 | 10.4% |
Notes receivable, net | 15,379 | 5,074 | (10,305) | (67.0%) |
Other accounts receivable, net | 173,213 | 114,485 | (58,728) | (33.9%) |
Amounts due from related companies | 31,372 | 205,213 | 173,841 | 554.1% |
Inventories | 81,478 | 91,462 | 9,984 | 12.3% |
Income taxes recoverable | 112,698 | 175,167 | 62,469 | 55.4% |
Prepaid expenses | 30,255 | 80,752 | 50,497 | 166.9% |
Deferred income taxes | 95,127 | 107,653 | 12,526 | 13.2% |
Other current assets | 135,947 | 64,795 | (71,152) | (52.3%) |
Total currrent assets | 2,074,779 | 2,725,298 | 650,519 | 31.4% |
PROPERTY, PLANT AND EQUIPMENT | ||||
Land | 212,307 | 219,962 | 7,655 | 3.6% |
Buildings and infraestructure and works in progress | 18,488,132 | 17,698,217 | (789,915) | (4.3%) |
Machinery and equipment | 3,240,567 | 3,087,765 | (152,802) | (4.7%) |
Other plant and equipment | 640,100 | 715,301 | 75,201 | 11.7% |
Technical appraisal | 1,139,142 | 1,048,050 | (91,092) | (8.0%) |
Sub - Total | 23,720,249 | 22,769,295 | (950,954) | (4.0%) |
Accumulated depreciation | (8,831,895) | (8,982,388) | (150,493) | (1.7%) |
Total property, plant and equipment | 14,888,355 | 13,786,907 | (1,101,448) | (7.4%) |
OTHER ASSETS | ||||
Investments in related companies | 331,390 | 343,497 | 12,107 | 3.7% |
Investments in other companies | 245,420 | 89,690 | (155,730) | (63.5%) |
Positive goodwill, net | 1,435,068 | 1,315,994 | (119,074) | (8.3%) |
Negative goodwill, net | (145,703) | (101,787) | 43,916 | 30.1% |
Long-term receivables | 235,258 | 225,888 | (9,370) | (4.0%) |
Amounts due from related companies | 237,409 | 818 | (236,591) | (99.7%) |
Intangibles | 141,909 | 144,795 | 2,886 | 2.0% |
Accumulated amortization | (72,217) | (78,963) | (6,746) | (9.3%) |
Others assets | 332,124 | 398,823 | 66,699 | 20.1% |
Total other assets | 2,740,658 | 2,338,755 | (401,903) | (14.7%) |
TOTAL ASSETS | 19,703,793 | 18,850,960 | (852,833) | (4.3%) |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 17 |
PRESS RELEASE | |
Liabilities and Shareholders Equity Under Chilean GAAP, Million Ch$
LIABILITIES AND SHAREHOLDER´S EQUITY - (million Ch$) | YE 03 | YE 04 | Var 04-03 | Chg % |
CURRENT LIABILITIES | ||||
Short-term debt due to banks and financial institutions | 319,960 | 191,923 | (128,037) | 40.0% |
Current portion of long-term debt due to banks and financial institutions | 169,837 | 106,941 | (62,896) | 37.0% |
Current portion of bonds payable | 72,719 | 107,084 | 34,365 | (47.3%) |
Current portion of long-term notes payable | 21,970 | 26,750 | 4,780 | (21.8%) |
Dividends payable | 3,238 | 3,400 | 162 | (5.0%) |
Accounts payable | 220,830 | 253,003 | 32,173 | (14.6%) |
Short-term notes payable | 21,597 | 13,409 | (8,188) | 37.9% |
Miscellaneous payables | 45,014 | 38,607 | (6,407) | 14.2% |
Accounts payable to related companies | 31,517 | 81,509 | 49,992 | (158.6%) |
Accrued expenses | 55,047 | 44,333 | (10,714) | 19.5% |
Withholdings | 65,295 | 49,750 | (15,545) | 23.8% |
Income taxes payable | 49,036 | 54,419 | 5,383 | (11.0%) |
Anticipated income | 12,275 | 6,505 | (5,770) | 47.0% |
Reinbursable financial contribution | 2,512 | 2,150 | (362) | 14.4% |
Other current liabilities | 64,483 | 39,031 | (25,452) | 39.5% |
Total current liabilities | 1,155,330 | 1,018,811 | (136,519) | 11.8% |
LONG-TERM LIABILITIES | ||||
Due to banks and financial institutions | 854,742 | 626,112 | (228,630) | 26.7% |
Bonds payable | 2,356,777 | 2,493,500 | 136,723 | (5.8%) |
Long -term notes payable | 148,977 | 143,254 | (5,723) | 3.8% |
Accounts payables | 27,473 | 50,584 | 23,111 | (84.1%) |
Amounts payable to related companies | 87 | - | (87) | 100.0% |
Accrued expenses | 325,352 | 311,025 | (14,327) | 4.4% |
Deferred income taxes | 7,195 | 63,536 | 56,341 | - |
Reinbursable financial contribution | 9,337 | 6,288 | (3,049) | 32.7% |
Other long-term liabilities | 52,508 | 109,856 | 57,348 | (109.2%) |
Total long-term liabilities | 3,782,448 | 3,804,155 | 21,707 | (0.6%) |
Minority interest | 3,433,014 | 3,125,006 | (308,008) | (9.0%) |
SHAREHOLDERS´ EQUITY | ||||
Paid-in capital, no par value | 2,283,404 | 2,283,404 | - | 0.0% |
Additional paid-in capital (share premium) | 163,306 | 162,726 | (580) | (0.4%) |
Other reserves | (26,313) | (122,589) | (96,276) | 365.9% |
Total capital and reserves | 2,420,397 | 2,323,541 | (96,856) | (4.0%) |
Retained earnings | 180,417 | 194,378 | 13,961 | 7.7% |
Net income for the period | 12,779 | 44,308 | 31,529 | 246.7% |
Deficits of subsidaries in development stage | (1,492) | (2,674) | (1,182) | 79.2% |
Total retained earnings | 191,704 | 236,012 | 44,308 | 23.1% |
Total shareholder´s equity | 2,612,101 | 2,559,553 | (52,548) | (2.0%) |
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY | 10,982,892 | 10,507,525 | (475,367) | (4.3%) |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 18 |
PRESS RELEASE | |
Liabilities and Shareholders Equity Under Chilean GAAP, Thousand US$
LIABILITIES - (thousand US$) | YE 03 | YE 04 | Var 04-03 | Chg % |
CURRENT LIABILITIES | ||||
Short-term debt due to banks and financial institutions | 574,022 | 344,318 | (229,704) | 40.0% |
Current portion of long-term debt due to banks and financial institutions | 304,695 | 191,857 | (112,838) | 37.0% |
Current portion of bonds payable | 130,461 | 192,113 | 61,652 | (47.3%) |
Current portion of long-term notes payable | 39,415 | 47,991 | 8,576 | (21.8%) |
Dividends payable | 5,809 | 6,100 | 291 | (5.0%) |
Accounts payable | 396,179 | 453,898 | 57,719 | (14.6%) |
Short-term notes payable | 38,746 | 24,056 | (14,690) | 37.9% |
Miscellaneous payables | 80,757 | 69,263 | (11,494) | 14.2% |
Accounts payable to related companies | 56,543 | 146,231 | 89,688 | (158.6%) |
Accrued expenses | 98,757 | 79,535 | (19,222) | 19.5% |
Withholdings | 117,142 | 89,254 | (27,888) | 23.8% |
Income taxes payable | 87,973 | 97,630 | 9,657 | (11.0%) |
Anticipated income | 22,022 | 11,670 | (10,352) | 47.0% |
Reinbursable financial contribution | 4,507 | 3,857 | (650) | 14.4% |
Other current liabilities | 115,685 | 70,023 | (45,662) | 39.5% |
Total current liabilities | 2,072,713 | 1,827,797 | (244,916) | 11.8% |
LONG-TERM LIABILITIES | ||||
Due to banks and financial institutions | 1,533,445 | 1,123,272 | (410,173) | 26.7% |
Bonds payable | 4,228,161 | 4,473,448 | 245,287 | (5.8%) |
Long -term notes payable | 267,271 | 257,004 | (10,267) | 3.8% |
Accounts payables | 49,288 | 90,750 | 41,462 | (84.1%) |
Amounts payable to related companies | 156 | - | (156) | 100.0% |
Accrued expenses | 583,696 | 557,992 | (25,704) | 4.4% |
Deferred income taxes | 12,908 | 113,986 | 101,078 | - |
Reinbursable financial contribution | 16,751 | 11,281 | (5,470) | 32.7% |
Other long-term liabilities | 94,202 | 197,086 | 102,884 | (109.2%) |
Total long-term liabilities | 6,785,877 | 6,824,821 | 38,944 | (0.6%) |
Minority interest | 6,158,977 | 5,606,398 | (552,579) | (9.0%) |
SHAREHOLDERS´ EQUITY | ||||
Paid-in capital, no par value | 4,096,527 | 4,096,527 | - | 0.0% |
Additional paid-in capital (share premium) | 292,978 | 291,938 | (1,040) | (0.4%) |
Other reserves | (47,207) | (219,930) | (172,723) | 365.9% |
Total capital and reserves | 4,342,298 | 4,168,534 | (173,764) | (4.0%) |
Retained earnings | 323,676 | 348,723 | 25,047 | 7.7% |
Net income for the period | 22,926 | 79,490 | 56,564 | 246.7% |
Deficits of subsidaries in development stage | (2,677) | (4,797) | (2,120) | 79.2% |
Total retained earnings | 343,925 | 423,416 | 79,491 | 23.1% |
Total shareholder´s equity | 4,686,224 | 4,591,950 | (94,274) | (2.0%) |
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY | 19,703,791 | 18,850,965 | (852,826) | (4.3%) |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 19 |
PRESS RELEASE | |
Consolidated Balance Sheet Analysis
The Company’s total assets reflect a decrease of $475,368 million respect to the same period of the previous year. This was principally due to:
A decrease of $613,947 million, or 7.4% in Fixed Assets due principally to the depreciation for the year of $379,491 million and the effect of the exchange rate on the fixed assets of the overseas companies as a result of the methodology of carrying the non-monetary assets in historic Dollars, in accordance with Technical Bulletin Nº 64 in the subsidiaries located in unstable countries. This is partly compensated by new incorporations amounting to $265,934 million.
- Current Assets show an increase of $362,600 million due principally to:
- An increase of $29,465 million in cash and of $188,083 million in term deposits due principally to an increase of $152,564 million in deposits in Codensa, for a future reduction in capital, $33,258 million and $16,327 million in Endesa Chile and Betania respectively, as cash surpluses, partially compensated by a reduction of $13,541 million in deposits in Emgesa and of $10,343 million in Chocón, held to pay dividends.
- Increase of $96,899 million in short term accounts receivable from related companies, explained basically by the due date within one year of the loan to Atacama Finance for $104,134 million, partially compensated by smaller accounts receivable from Gas Atacama for $2,681 million, from Cemsa for $1,874 million and from Cien for $1,049.
- An increase of $49,890 million in sales debtors, mainly due to the increase in invoicing at the subsidiaries Codensa, an increase of $17,647 million, Chilectra $6,395 million, Investluz $6,173 million, Emgesa $5,921 million, Cerj $4,167 million and Edelnor $4,055 million, amongst others, partially compensated by Cachoeira Dourada that decreased by $7,379 million.
- An increase of $34,819 million in tax recoverable, mainly in Elesur for $56,363 million and Codensa for $15,596 million, partially compensated by reductions of $14,844 million in Enersis, $11,895 million in Cerj, $9,682 million in Endesa and $2,904 million in Coelce.
- An increase of $28,147 million in prepaid expenses, mainly from Cerj and Investluz for $21,704 and $3,215 million, respectively, on the regulatory asset and Lot A.
- A decrease of $39,660 million in other current assets, mainly as a result of the reduction of $21,901 million, a reduction of $8,953 million in forward contracts and repro agreements, a reduction of $8,953 million in guarantee deposits and a reduction of $4,163 million in deferred expenses on credits for $4,163 million.
- A reduction of $32,735 million in sundry debtors due mainly to the payment from OHL of $38,730 million for the sale of Infraestructura 2000 and $4,023 million less in prepayments to suppliers in Codensa, partially compensated by the recalculation of the power in the Central Interconnected System for $17,572.
Other long term assets show a decrease of $224,020 million, explained mainly as follows:
A reduction of $131,875 million in accounts receivable from related companies, explained basically by the maturity within a year of the loan of $131,875 million to Atacama Finance transferred to short term during the year 2004 and payment of part of the loan.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 20 |
PRESS RELEASE | |
- A reduction of $66,372 million in the positive goodwill that corresponds principally to the amortization of the year 2004 for $53,201 million. The difference is the result of the exchange rate in Chile for the goodwill in the subsidiaries controlled in Dollars.
- A reduction of $86,804 million in Investments in Other Companies, basically the investment in Empresa Eléctrica de Bogotá, as a result of the liquidation of Luz de Bogotá and the transfer to minority interests of its holding.
- A reduction of $59,843 million in other long term assets due to the decrease of $46,527 million in deferred commissions and expenses on loans, a reduction of $23,070 million in the effects of the valuation to a Fair Value of the derivatives and a reduction of $5,184 million in post-retirement benefits, compensated partially by an increase of $11,161 million in expenses and discounts on bonds
The total liabilities show a reduction of $475,368 million with respect to the same period of the previous year. This is principally due to:
- Reduction in the short term and the short-term portion of the long-term obligations with banks of $128,037 million and $62,896 million respectively, as a result of prepayments of the Edesur loan for $63,284 million and of the Codensa loan for $82,340 million.
- Reduction of $16,609 million in other current liabilities, principally due to the reduction of $29,680 million in derivative contracts and their fair value.
- Increase of $34,365 million in short term obligations with the public following the transfer to short term of the Edegel bonds for $22,733 million and the Cerj bonds for $16,522 million.
- Increase of $32,172 million in accounts payable, principally in Endesa and Edesur for $21,023 million and $11,956 million, respectively.
- Increase of $136,723 million in obligations with the public, taken to prepay debts with banks.
- Increase of $57,348 million in other long-term liabilities, mainly in Enersis due to the Fair Value of the derivative instruments taken.
- Increase of $56,340 million in long term deferred taxes, mainly in Endesa and Edelnor for $39,396 million and $14,805 million, respectively.
- Reduction of $228,630 million in obligations with banks following prepayments of credits with cash surpluses or with the proceeds of bond issues.
Minority interestsfell by $308,008 million due to the increase in the participations in Cerj and Costanera and to the liquidation of Luz de Bogotá, added to the effect of the reduction in the investments in the foreign subsidiaries controlled in Dollars in accordance with Bulletin Nº 64.
Equitydecreased by $52,548 million with respect to December 2003. This variation is explained principally by the reduction of $96,275 million in other reserves provoked by the revaluation of the Chilean Peso and its effect on the equity given the difference in conversion adjustment on the investments controlled in US Dollars, partially compensated by the increase of $13,961 million in retained earnings and by the increase of $31,528 million in the profit for the period.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 21 |
PRESS RELEASE | |
Financial Debt Maturity with Third Parties, Million Ch$ (*)
TOTAL | |||||||
Million Ch$ | 2005 | 2006 | 2007 | 2008 | 2009 | Balance | |
Chile | 61,914 | 395,484 | 37,056 | 438,045 | 233,815 | 1,344,163 | 2,510,477 |
Enersis | 144 | 176,514 | 1,530 | 196,708 | 1,620 | 413,504 | 790,020 |
Chilectra | 8 | - | - | - | - | - | 8 |
Other(*) | 1,133 | - | - | - | - | - | 1,133 |
Endesa Chile (**) | 60,629 | 218,970 | 35,526 | 241,337 | 232,195 | 930,659 | 1,719,316 |
Argentina | 56,283 | 70,117 | 38,960 | 11,731 | 11,731 | 22,578 | 211,401 |
Edesur | 16,704 | 40,528 | 20,841 | - | - | - | 78,074 |
Costanera | 39,579 | 29,589 | 18,119 | 11,731 | 11,731 | 22,578 | 133,327 |
Perú | 60,217 | 72,751 | 43,388 | 13,583 | 17,939 | 18,488 | 226,365 |
Edelnor | 12,224 | 30,561 | 9,944 | 5,094 | 6,791 | 13,583 | 78,197 |
Edegel | 47,992 | 42,190 | 33,444 | 8,489 | 11,148 | 4,905 | 148,168 |
Brasil | 85,489 | 60,514 | 68,093 | 48,044 | 18,894 | 64,546 | 345,580 |
Coelce | 11,578 | 12,541 | 13,784 | 39,052 | 10,950 | 52,093 | 139,998 |
Ampla | 72,422 | 46,019 | 51,744 | 7,967 | 7,945 | 12,453 | 198,549 |
Cachoeira | 1,489 | 1,954 | 2,565 | 1,025 | - | - | 7,033 |
Colombia | 90,240 | 53,141 | 13,606 | - | 84,840 | 174,935 | 416,762 |
Codensa | 9,399 | - | - | - | 11,662 | 104,961 | 126,022 |
Emgesa | 67,235 | 39,535 | - | - | 73,178 | - | 179,948 |
Betania | 13,606 | 13,606 | 13,606 | - | - | 69,974 | 110,792 |
TOTAL | 354,143 | 652,007 | 201,103 | 511,403 | 367,221 | 1,624,709 | 3,710,586 |
(**) Includes: Endesa Chile Internacional, Pangue, Pehuenche, San Isidro, Celta and Tunel El Melon
Financial Debt Maturity with Third Parties, Thousand US$
TOTAL | |||||||
Thousand US$ | 2005 | 2006 | 2007 | 2008 | 2009 | Balance | |
Chile | 111,077 | 709,515 | 66,480 | 785,872 | 419,475 | 2,411,487 | 4,503,906 |
Enersis | 258 | 316,673 | 2,745 | 352,903 | 2,907 | 741,844 | 1,417,330 |
Chilectra | 15 | - | - | - | - | - | 15 |
Other(*) | 2,033 | - | - | - | - | - | 2,033 |
Endesa Chile (**) | 108,771 | 392,842 | 63,735 | 432,969 | 416,569 | 1,669,643 | 3,084,528 |
Argentina | 100,975 | 125,794 | 69,896 | 21,046 | 21,046 | 40,507 | 379,263 |
Edesur | 29,968 | 72,710 | 37,390 | - | - | - | 140,068 |
Costanera | 71,006 | 53,084 | 32,505 | 21,046 | 21,046 | 40,507 | 239,195 |
Perú | 108,031 | 130,518 | 77,840 | 24,368 | 32,184 | 33,168 | 406,109 |
Edelnor | 21,931 | 54,828 | 17,840 | 9,138 | 12,184 | 24,368 | 140,289 |
Edegel | 86,100 | 75,690 | 60,000 | 15,230 | 20,000 | 8,800 | 265,820 |
Brasil | 153,370 | 108,565 | 122,162 | 86,193 | 33,898 | 115,798 | 619,986 |
Coelce | 20,772 | 22,500 | 24,730 | 70,060 | 19,644 | 93,457 | 251,163 |
Ampla | 129,927 | 82,560 | 92,831 | 14,294 | 14,253 | 22,341 | 356,206 |
Cachoeira | 2,671 | 3,506 | 4,601 | 1,839 | - | - | 12,617 |
Colombia | 161,894 | 95,338 | 24,410 | - | 152,207 | 313,840 | 747,689 |
Codensa | 16,862 | - | - | - | 20,923 | 188,304 | 226,089 |
Emgesa | 120,623 | 70,928 | - | - | 131,284 | - | 322,835 |
Betania | 24,410 | 24,410 | 24,410 | - | - | 125,536 | 198,766 |
TOTAL | 635,347 | 1,169,729 | 360,788 | 917,480 | 658,810 | 2,914,799 | 6,656,954 |
(**) Includes: Endesa Chile Internacional, Pangue, Pehuenche, San Isidro, Celta and Tunel El Melon
(*) Source: Internal financial report
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 22 |
PRESS RELEASE | |
Consolidated Cash Flow
Under Chilean GAAP, million Ch$
Table 8
Million Ch$ | YE 03 | YE 04 | Var 04-03 | Chg % |
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | ||||
Net income (loss) for the year | 12,780 | 44,308 | 31,528 | - |
Gain (losses) from sales of assets: | ||||
Losses (gain) on sale of property, plant and equipment | (84,697) | (6,842) | 77,855 | 91.9% |
Charges (credits) to income which do not represent cash flows: | - | |||
Depreciation | 406,326 | 379,491 | (26,835) | (6.6%) |
Amortization of intangibles | 8,798 | 6,801 | (1,997) | (22.7%) |
Write-offs and accrued expenses | 55,762 | 38,380 | (17,382) | (31.2%) |
Equity in income of related companies | (18,198) | (31,147) | (12,949) | (71.2%) |
Equity in losses of related companies | 243 | 1 | (242) | (99.7%) |
Amortization of positive goodwill | 54,559 | 53,201 | (1,358) | (2.5%) |
Amortization of negative goodwill | (52,456) | (17,107) | 35,349 | 67.4% |
Price-level restatement, net | 4,612 | 777 | (3,835) | (83.2%) |
Exchange difference, net | 6,206 | (14,407) | (20,613) | (332.1%) |
Other credits to income which do not represent cash flows | (30,522) | (15,464) | 15,058 | 49.3% |
Other charges to income which do not represent cash flows | 157,088 | 111,142 | (45,946) | (29.2%) |
Changes in assets which affect cash flows: | - | |||
Decrease (increase) in trade receivables | (86,517) | (24,174) | 62,343 | 72.1% |
Decrease (increase) in inventory | 10,632 | (6,984) | (17,616) | (165.7%) |
Decrease (increase) in other assets | 19,853 | (7,544) | (27,397) | (138.0%) |
Changes in liabilities which affect cash flow: | - | |||
Decreased (increase) in payable accounts associated with operating results | 32,553 | (9,453) | (42,006) | (129.0%) |
Decreased (increase) of payable interest | (11,368) | 46,422 | 57,790 | 508.4% |
Decreased (increase) in income tax payable | (42,044) | 38,054 | 80,098 | 190.5% |
Decreased (increase) in other accounts payable associated with non-operating results | 40,178 | (65,353) | (105,531) | (262.7%) |
Decreased (increase) in value added tax and other similar taxes payable, net | 24,768 | (3,206) | (27,974) | (112.9%) |
Income (loss) attributable to minority interest | 80,283 | 101,107 | 20,824 | 25.9% |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | 588,839 | 618,005 | 29,166 | 5.0% |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 23 |
PRESS RELEASE | |
Cont. Table 8
Million Ch$ | YE 03 | YE 04 | Var 04-03 | Chg % |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of shares issued to minorities | 560,126 | - | (560,126) | - |
Proceeds from debt issuance | 1,048,163 | 827,706 | (220,457) | (21.0%) |
Proceeds from bond issuance | 848,825 | 328,720 | (520,105) | (61.3%) |
Proceeds from loans obtained from related companies | - | - | - | - |
Proceeds from other loans obtained from related companies | - | - | - | - |
Other sources of financing | 24,639 | 22,782 | (1,857) | (7.5%) |
Capital paid | (24,632) | (21,172) | 3,460 | 14.0% |
Dividends paid | (82,815) | (97,013) | (14,198) | (17.1%) |
Payment of debt | (2,181,274) | (1,191,305) | 989,969 | 45.4% |
Payment of bonds | (499,248) | (22,110) | 477,138 | 95.6% |
Payments of loans obtained from related companies | (4,579) | - | 4,579 | 100.0% |
Payments of other loans obtained from related companies | - | - | - | - |
Payments of shares issuance costs | (11,102) | - | 11,102 | - |
Payments of bonds issuance costs | (5,823) | (2,363) | 3,460 | 59.4% |
Other disbursements for financing | (118,931) | (34,369) | 84,562 | 71.1% |
NET CASH FLOW FROM FINANCING ACTIVITIES | (446,651) | (189,124) | 257,527 | 57.7% |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from sale of property, plant and equipment | 164,779 | 15,538 | (149,241) | (90.6%) |
Sale of investment | 124,873 | 2,558 | (122,315) | (98.0%) |
Other loans received from related companies | 25,596 | 15,295 | (10,301) | (40.2%) |
Other receipts from investments | 51,033 | 40,574 | (10,459) | (20.5%) |
Additions to property, plant and equipment | (265,255) | (265,934) | (679) | (0.3%) |
Long-term investments | (3,062) | (344) | 2,718 | 88.8% |
Investment in financing instruments | - | - | - | - |
Other loans granted to related companies | (320) | - | 320 | 100.0% |
Other investment disbursements | (7,060) | (1,592) | 5,468 | 77.5% |
NET CASH FLOW FROM INVESTMENT ACTIVITIES | 90,584 | (193,905) | (284,489) | (314.1%) |
NET CASH FLOW FOR THE PERIOD | 232,772 | 234,976 | 2,204 | 0.9% |
EFFECT OF PRICE-LEVEL RESTATEMENT ON CASH AND CASH EQUIVALENT | (122,485) | (27,185) | 95,300 | 77.8% |
NET VARIATION ON CASH AND CASH EQUIVALENT | 110,287 | 207,791 | 97,504 | 88.4% |
CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE YEAR | 228,989 | 339,447 | 110,458 | 48.2% |
CASH AND CASH EQUIVALENT AT THE END OF THE YEAR | 339,276 | 547,238 | 207,962 | 61.3% |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 24 |
PRESS RELEASE | |
Under Chilean GAAP, Thousand US$
Table 8.1
Thousand US$ | YE 03 | YE 04 | Var 04-03 | Chg % |
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | ||||
Net income (loss) for the year | 22,928 | 79,490 | 56,562 | - |
Gain (losses) from sales of assets: | ||||
Losses (gain) on sale of property. plant and equipment | (151,950) | (12,274) | 139,676 | 91.9% |
Charges (credits) to income which do not represent cash flows: | ||||
Depreciation | 728,967 | 680,824 | (48,143) | (6.6%) |
Amortization of intangibles | 15,784 | 12,202 | (3,582) | (22.7%) |
Write-offs and accrued expenses | 100,039 | 68,855 | (31,184) | (31.2%) |
Equity in income of related companies | (32,648) | (55,878) | (23,230) | (71.2%) |
Equity in losses of related companies | 436 | 1 | (435) | (99.7%) |
Amortization of positive goodwill | 97,881 | 95,445 | (2,436) | (2.5%) |
Amortization of negative goodwill | (94,108) | (30,691) | 63,417 | 67.4% |
Price-level restatement. net | 8,274 | 1,394 | (6,880) | (83.2%) |
Exchange difference. net | 11,134 | (25,846) | (36,980) | (332.1%) |
Other credits to income which do not represent cash flows | (54,758) | (27,743) | 27,015 | 49.3% |
Other charges to income which do not represent cash flows | 281,823 | 199,394 | (82,429) | (29.2%) |
Changes in assets which affect cash flows: | ||||
Decrease (increase) in trade receivables | (155,215) | (43,368) | 111,847 | 72.1% |
Decrease (increase) in inventory | 19,074 | (12,529) | (31,603) | (165.7%) |
Decrease (increase) in other assets | 35,617 | (13,535) | (49,152) | (138.0%) |
Changes in liabilities which affect cash flow: | ||||
Decreased (increase) in payable accounts associated with operating results | 58,402 | (16,958) | (75,360) | (129.0%) |
Decreased (increase) of payable interest | (20,395) | 83,283 | 103,678 | 508.4% |
Decreased (increase) in income tax payable | (75,429) | 68,270 | 143,699 | 190.5% |
Decreased (increase) in other accounts payable associated with non-operating results | 72,081 | (117,246) | (189,327) | (262.7%) |
Decreased (increase) in value added tax and other similar taxes payable. net | 44,435 | (5,752) | (50,187) | (112.9%) |
Income (loss) attributable to minority interest | 144,031 | 181,390 | 37,359 | 25.9% |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | 1,056,403 | 1,108,728 | 52,325 | 5.0% |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 25 |
PRESS RELEASE | |
Cont. Table 8.1
Thousand US$ | YE 03 | YE 04 | Var 04-03 | Chg % |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of shares issued to minorities | 1,004,891 | - | (1,004,891) | - |
Proceeds from debt issuance | 1,880,450 | 1,484,941 | (395,509) | (21.0%) |
Proceeds from bond issuance | 1,522,829 | 589,738 | (933,091) | (61.3%) |
Proceeds from loans obtained from related companies | - | - | - | - |
Proceeds from other loans obtained from related companies | - | - | - | - |
Other sources of financing | (7.5%) | 44,203 | 40,872 | (3,331) |
Capital paid | (44,191) | (37,983) | 6,208 | 14.0% |
Dividends paid | (148,574) | (174,046) | (25,472) | (17.1%) |
Payment of debt | (3,913,301) | (2,137,253) | 1,776,048 | 45.4% |
Payment of bonds | (895,673) | (39,666) | 856,007 | 95.6% |
Payments of loans obtained from related companies | (8,215) | - | 8,215 | 100.0% |
Payments of other loans obtained from related companies | - | - | - | - |
Payments of shares issuance costs | (19,917) | - | 19,917 | - |
Payments of bonds issuance costs | (10,447) | (4,239) | 6,208 | 59.4% |
Other disbursements for financing | (213,367) | (61,659) | 151,708 | 71.1% |
NET CASH FLOW FROM FINANCING ACTIVITIES | (801,311) | (339,297) | 462,014 | 57.7% |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from sale of property. plant and equipment | 295,621 | 27,876 | (267,745) | (90.6%) |
Sale of investment | 224,028 | 4,589 | 219,439 | (98.0%) |
Other loans received from related companies | 45,920 | 27,440 | (18,480) | (40.2%) |
Other receipts from investments | 91,555 | 72,792 | (18,763) | (20.5%) |
Additions to property. plant and equipment | (475,879) | (477,097) | (1,218) | (0.3%) |
Long-term investments | (5,493) | (617) | 4,876 | 88.8% |
Investment in financing instruments | - | - | - | - |
Other loans granted to related companies | (574) | - | 574 | 100.0% |
Other investment disbursements | (12,666) | (2,856) | 9,810 | 77.5% |
NET CASH FLOW FROM INVESTMENT ACTIVITIES | 162,512 | (347,874) | (510,386) | (314.1%) |
NET CASH FLOW FOR THE PERIOD | 417,603 | 421,557 | 3,954 | 0.9% |
EFFECT OF PRICE-LEVEL RESTATEMENT ON CASH AND CASH EQUIVALENT | (219,743) | (48,771) | 170,972 | 77.8% |
NET VARIATION ON CASH AND CASH EQUIVALENT | 197,860 | 372,786 | 174,926 | 88.4% |
CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE YEAR | 410,816 | 608,983 | 198,167 | 48.2% |
CASH AND CASH EQUIVALENT AT THE END OF THE YEAR | 608,676 | 981,769 | 373,093 | 61.3% |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 26 |
PRESS RELEASE | |
Consolidated Cash Flow Analysis
During the period, the Company generated net cash flows of $234,976 million, comprised of the following activities:
Table 9
Effective Cash Flow (million Ch$) | YE 03 | YE 04 | Var 04-0 | Chg % |
Operating | 588,839 | 618,005 | 29,166 | 5.0% |
Financing | (446,651) | (189,124) | 257,527 | 57.7% |
Investment | 90,584 | (193,905) | (284,489) | (314.1%) |
Net cash flow of the period | 232,772 | 234,976 | 2,204 | 0.9% |
Table 9.1
Effective Cash Flow (thousand US$) | YE 03 | YE 04 | Var 04-0 | Chg % |
Operating | 1,056,403 | 1,108,728 | 52,325 | 5.0% |
Financing | (801,311) | (339,297) | 462,014 | 57.7% |
Investment | 162,512 | (347,874) | (510,386) | (314.1%) |
Net cash flow of the period | 417,603 | 421,557 | 3,954 | 0.9% |
Operating activitiesgenerated a net positive cash flow of $618,005 million, an increase of $29,166 million with respect to that obtained as of the same date of the previous year. As of December 2004, the operating cash flow is comprised mainly of:
- The profit for the period amounting to $44,308 million, plus:
- Charges of $589,794 million to the income statement that do not represent cash flow and correspond mainly to the Depreciation for the period for $379,491 million, write-offs and provisions for $38,380 million, amortizations of positive goodwill of $53,201 million, the other charges that do not represent cash flow for $111,142 million among which is the negative effect of the conversion of the overseas branches to the Technical Bulletin for $30,810 million and,
- The variation of net liabilities that affect the cash flow by $107,571 million.
- The above was partly compensated by:
- Increase in net liabilities that affect the operating cash flow of $38,701 million, credits for $78,124 million that do not represent cash flows, of which $15,464 million correspond to the positive effect of the conversion of the overseas branches.
- Profit on sales of assets of $6,841 million.
Financingactivities produced a negative cash flow of $189,124 million due mainly to the payment of loans for a value of $1,191,305 million, payments of dividends for $97,013 million, the payment of Bonds for $22,110 million and division of capital of subsidiaries for $21,172. The above is partly compensated by the receipt of loans for $827,706 million, bond issues for $328,720 million and other sources of financing for $22,781 million.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 27 |
PRESS RELEASE | |
Investment activitiesgenerated a net negative cash flow of $193,905 million that correspond mainly to the incorporation of fixed assets for $265,934 million. Outstanding among these is the investment made by Endesa in the Ralco Power Plant that for the 2004 period was $65,258 million and other payments for $1,592 million partially compensated by other income from investments for $40,574 million, recovery of $15,295 million in loans to related companies and the sale of subsidiaries for $2,557 million.
Cash Flow Received From Foreign Subsidiaries by Enersis, Chilectra and Endesa Chile (*)
Table 10
Millions Ch$ | Interest Received | Dividends Received | Management Fee | Prepayment intercompany | Others | |||||
YE 03 | YE 04 | YE 03 | YE 04 | YE 03 | YE 04 | YE 03 | YE 04 | YE 03 | YE 04 | |
Argentina | 8,800 | 6,285 | - | - | 987 | 7,304 | - | 11,152 | - | 193 |
Peru | - | - | 11,171 | 13,939 | - | - | - | - | 13,180 | 10,406 |
Brazil | 3,648 | 3,626 | - | 15,471 | - | - | - | - | - | - |
Colombia | 15,724 | 12,670 | 8,296 | 6,002 | - | - | 6,238 | 65,773 | - | - |
Chile | - | - | - | - | - | - | - | - | - | - |
Total | 28,172 | 22,581 | 19,467 | 35,412 | 987 | 7,304 | 6,238 | 76,926 | 13,180 | 10,600 |
Millions Ch$ | Total Cash Received | |||||||||
YE 03 | YE 04 | |||||||||
Argentina | 9,787 | 24,935 | ||||||||
Peru | 24,351 | 24,345 | ||||||||
Brazil | 3,648 | 19,097 | ||||||||
Colombia | 30,257 | 84,446 | ||||||||
Chile | - | - | ||||||||
Total | 68,043 | 152,823 | ||||||||
Table 10.1
Thousand US$ | Interest Received | Dividend Received | Management Fee | Prepayment Intercompany | Others | |||||
YE 03 | YE 04 | YE 03 | YE 04 | YE 03 | YE 04 | YE 03 | YE 04 | YE 03 | YE 04 | |
Argentina | 15,787 | 11,276 | - | - | 1,771 | 13,104 | - | 20,008 | - | 347 |
Peru | - | - | 20,041 | 25,007 | - | - | - | - | 23,645 | 18,669 |
Brazil | 6,545 | 6,505 | - | 27,756 | - | - | - | - | - | - |
Colombia | 28,209 | 22,731 | 14,883 | 10,768 | - | - | 11,191 | 118,000 | - | - |
Chile | - | - | - | - | - | - | - | - | - | - |
Total | 50,541 | 40,512 | 34,924 | 63,531 | 1,771 | 13,104 | 11,191 | 138,008 | 23,645 | 19,016 |
Thousand US$ | Total Cash Received | |||||||||
YE 03 | YE 04 | |||||||||
Argentina | 17,558 | 44,735 | ||||||||
Peru | 43,686 | 43,676 | ||||||||
Brazil | 6,545 | 34,261 | ||||||||
Colombia | 54,283 | 151,499 | ||||||||
Chile | - | - | ||||||||
Total | 122,072 | 274,171 | ||||||||
(*) Source: Internal financial report
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 28 |
PRESS RELEASE | |
Capex and Depreciation
Table 11
Payments for Additions of Fixed assets | Depreciation | |||
Million Ch$ | YE 03 | YE 04 | YE 03 | YE 04 |
Endesa S.A. | 134,419 | 96,136 | 183,975 | 170,790 |
Chilectra S.A. | 25,601 | 32,716 | 13,077 | 14,696 |
Edesur S.A. | 25,652 | 31,293 | 53,719 | 47,884 |
Edelnor S.A. | 19,311 | 11,370 | 16,098 | 16,037 |
Cerj | 23,661 | 46,243 | 46,188 | 42,489 |
Coelce | 19,636 | 27,581 | 38,098 | 35,667 |
Codensa S.A. | 16,240 | 15,654 | 51,674 | 48,496 |
Cam Ltda. | 541 | 2,006 | 1,181 | 1,121 |
Inmobiliaria Manso de Velasco Ltda. | - | 20 | 234 | 289 |
Synapsis Soluciones y Servicios Ltda. | 195 | 2,821 | 968 | 962 |
Holding Enersis | - | 94 | 1,112 | 1,060 |
Total | 265,256 | 265,934 | 406,325 | 379,491 |
Table 11.1
Payments for Additions of Fixed assets | Depreciation | |||
Thousand US$ | YE 03 | YE 04 | YE 03 | YE 04 |
Endesa S.A. | 241,154 | 172,472 | 330,059 | 306,405 |
Chilectra S.A. | 45,929 | 58,694 | 23,461 | 26,365 |
Edesur S.A. | 46,021 | 56,141 | 96,374 | 85,906 |
Edelnor S.A. | 34,645 | 20,398 | 28,881 | 28,771 |
Cerj | 42,449 | 82,962 | 82,863 | 76,227 |
Coelce | 35,228 | 49,482 | 68,349 | 63,988 |
Codensa S.A. | 29,135 | 28,084 | 92,705 | 87,004 |
Cam Ltda. | 971 | 3,599 | 2,119 | 2,011 |
Inmobiliaria Manso de Velasco Ltda. | - | 36 | 420 | 518 |
Synapsis Soluciones y Servicios Ltda. | 350 | 5,061 | 1,737 | 1,726 |
Holding Enersis | - | 169 | 1,995 | 1,902 |
Total | 475,881 | 477,097 | 728,963 | 680,823 |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 29 |
PRESS RELEASE | |
Analysis Of The Exchange Risk And The Interest Rate
The company has a high percentage of its credits expressed in US Dollars as the greater part of its sales in the different markets where it operates is mainly indexed to that currency. Nevertheless, the Brazilian and Colombian markets are less indexed to the Dollar and, therefore, the subsidiaries in those markets have most of their debt in local currency. In the case of Argentina, an important proportion of the income is derived from exports of energy to Brazil and these are indexed to the Dollar, reducing the exposure to an exchange risk in that country.
Despite this natural hedge of the exchange risk, in a scenario of a high volatility of the Dollar, the company has continued with its policy of partly covering its debts in Dollars in order to mitigate the effects of the fluctuations in the exchange rate on the results. Considering the important reduction in the accounting mismatch in recent years, achieving prudent levels, the company has modified its policy on Dollar-Peso hedging in order to establish a policy of covering the cash flows, together with a maximum permissible accounting mismatch, on which hedging operations will be performed.
As of December 2004, on a consolidated basis, the company has hedged in Chile, by means of USD/UF Swap operations, an amount of US$700 million, compared to US$219 million in forward contracts as of the same date of the previous year. This variation is principally due to the modification of the hedging policy mentioned above.
With regard to interest rate risks, on a consolidated basis, the company has a fixed rate/variable rate ratio of approximately 83.7% / 16.3% fixed / variable as of December 31, 2004. The percentage of debt at a fixed rate has fallen slightly if compared with the 99.0% / 1.0% ratio as of the same date of the previous year due to the low level of market interest rates that have permitted the company to borrow at more attractive interest rates.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 30 |
PRESS RELEASE | |
Generation Business
Table 12
Million US$ | Million Ch$ | ||||||
YE 03 | YE 04 | YE 03 | YE 04 | Chg% | |||
Operating Revenues | 1,692 | 1,853 | 943,288 | 1,032,662 | 9.5% | ||
Operating Costs | (1,012) | (1,129) | (564,208) | (629,191) | (11.5%) | ||
Selling and Administrative Expenses | (58) | (62) | (32,107) | (34,445) | (7.3%) | ||
Operating Income | 622 | 662 | 346,974 | 369,025 | 6.4% | ||
Interest Income | 28 | 27 | 15,644 | 14,912 | (4.7%) | ||
Interest Expenses | (375) | (345) | (209,240) | (192,558) | 8.0% | ||
Net Financial Income (Expenses) | (347) | (319) | (193,596) | (177,646) | 8.2% | ||
Equity Gains from Related Company | 33 | 35 | 18,186 | 19,289 | 6.1% | ||
Equity Losses from Related Company | (1) | (0) | (383) | (86) | 77.4% | ||
Net Income from Related Companies | 32 | 34 | 17,804 | 19,203 | 7.9% | ||
Other Non Operating Income | 82 | 92 | 45,688 | 51,242 | 12.2% | ||
Other Non Operating Expenses | (110) | (142) | (61,564) | (79,286) | (28.8%) | ||
Net other Non Operating Income (Expenses) | (28) | (50) | (15,876) | (28,044) | (76.6%) | ||
Price Level Restatement | 1 | 4 | 589 | 2,211 | - | ||
Foreign Exchange Effect | 16 | 37 | 9,180 | 20,630 | 124.7% | ||
Net of Monetary Exposure | 18 | 41 | 9,769 | 22,841 | 133.8% | ||
Positive Goodwill Amortization | (3) | (3) | (1,582) | (1,464) | 7.5% | ||
Non Operating Income | (329) | (296) | (183,480) | (165,109) | 10.0% | ||
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 293 | 366 | 163,494 | 203,916 | 24.7% | ||
Extraordinary Items | - | - | - | - | - | ||
Income Tax | (50) | (168) | (28,063) | (93,427) | - | ||
Minority Interest | (128) | (77) | (71,326) | (42,802) | 40.0% | ||
Negative Goodwill Amortization | 29 | 29 | 15,979 | 16,102 | 0.8% | ||
NET INCOME | 144 | 150 | 80,084 | 83,789 | 4.6% | ||
Net Income
Endesa Chile recorded a Net Income of $83,789 million which is $3,705 million higher than the previous year. This is mainly explained by:
Operating Income
Endesa Chile’s operating income as of December 2004 came to $369,026 million, an increase of 6.4% over the result obtained as of the same date in 2003. This increase in the operating income is mainly due to the improved operating income of the subsidiaries in Colombia, Brazil and Argentina which were partially compensated by the lower operating income in Chile and Peru. During the current period of 2004, sales amounted to 53.443 GWh, representing an increase of 5.5% with respect to 2003.
InChile,the operating income during the current year amounted to $149.718 million, reflecting a decrease of $9,423 million with respect to the figure achieved during the year 2003. This was the result of greater variable operating costs that the company had to assume due to the greater utilization of thermal generation during the first half of 2004 as a consequence of the relatively low hydrology in the area. This situation changed in the latter part of the year, principally due to the start up of the operations of the Ralco hydroelectricity plant.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 31 |
PRESS RELEASE | |
InArgentinathe operating income in 2004 amounted to $34,379 million, an increase of $1,258 or 3.8% over the previous year when the operating income came to $33,121 million. The operation in Argentina shows a significant increase of 30% in sales income which amounted to $148,300 million as a result of the important rise in generation and demand for electric energy. The increase of 74% in the physical sales of the subsidiary, Central Costanera with respect to the year 2003, due to the ability of the Costanera plant to operate not only with natural gas but also with fuel oil, was partly compensated by lower sales by El Chocón, in view of the low hydrology in the Comahue zone. The share in the aggregate thermal generation of our companies in Argentina rose by 50.3% in 2003 to 70.4% in 2004. Consequently, the operating costs in Argentina grew by 41.0% to $111,352 million in 2004. The cost of fuel during the period increased by 237.6% due to the restrictions on natural gas on the Argentine market that obliged Costanera to increase its generation with liquid fuels. If we eliminate the effect of the variation in the Chilean exchange rate, the increase in the operating incomes of Costanera and El Chocón would be $3,129 million and $768 million, respectively.
InBrazil,our subsidiary, Cachoeira Dourada, achieved an operating income of $14,314 million, an increase of $10,565 million or 281.8% with respect to the year 2003. This improvement is a reflection of the achievements in its contractual agreements signed during the year 2004 with its principal client, CELG. Operating revenues rose by 33.1% with respect to the year 2003, amounting to $42,006 million. Cachoeira Dourada’s physical generation increased by 7.9% in relation to 2003, as a result of the growing demand and the favorable hydrology reigning in the zone during the current year. If we eliminate the effect of the variation in the Chilean exchange rate, the increase in the operating income would be $10,881 million.
InColombia,the subsidiaries Emgesa and Betania showed increases in their operating income of $18,333 million and $11,990 million, respectively. Emgesa achieved an operating income of $100,903 million and Betania of $17,553 million. These improved results are the consequence of a greater demand on the Colombian market and to an abundance of water supplies during the year 2004, which led to an increase of 17.6% in income from sales of energy. Physical sales rose by 667 GWh and physical generation by 1,087 GWh, with a smaller contribution from thermal generation. This permitted a reduction in purchases of energy and in the cost of fuel in relation to the previous year. If we eliminate the effect of the variation in the Chilean exchange rate, the increase in the operating incomes of Emgesa and Betania would be $24,572 million and $13,171 million, respectively.
InPeru,the operating income of the subsidiary Edegel for the year 2004 fell by 17.0% from $62,829 million as of the same date of last year to $52,158 million. Revenues rose during the period by $8,843 million or 7.7% to $123,375 million. Physical sales fell with respect to 2003 due to a shortage of water in the region, provoking an increase in prices which, also affected by the international prices of fuel, compensated for the fall in physical sales. However, the lower level of rainfall also affected the company’s operating costs that increased by 44.6% with respect to 2003, amounting to $63,779 million. Edegel’s physical generation of electric energy during the year 2004 fell by 3.9% to 4,285 GWh, hydroelectric generation decreased by 408.4 GWh and thermal generation rose by 235 GWh. This led to an increase in the cost of fuel and to greater purchases of electric energy. If we eliminate the effect of the variation in the Chilean exchange rate, the decrease in the operating income would be $5,381 million or 8.5%.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 32 |
PRESS RELEASE | |
Non Operating Income
Endesa Chile recorded a Non operating Loss of $165,109 million which is $18,371 million lower than the previous year.
Table 13
Country | Market | GWh Sold | Var 04-03 | Chg % | Market Share (*) | ||
YE 03 | YE 04 | YE 03 | YE 04 | ||||
Chile | SIC & SING | 18,681 | 18,462 | (219) | (1.2%) | 43.9% | 40.3% |
SIC | 17,718 | 17,454 | (264) | (1.5%) | 55.2% | 50.4% | |
SING | 963 | 1,008 | 45 | 4.7% | 9.2% | 9.0% | |
Argentina | SIN | 9,259 | 11,604 | 2,345 | 25.3% | 11.9% | 14.0% |
Chocón | 4,676 | 3,631 | (1,045) | (22.3%) | |||
Costanera | 4,583 | 7,973 | 3,390 | 74.0% | |||
Perú | SICN | 4,443 | 4,328 | (115) | (2.6%) | 25.3% | 23.3% |
Edegel | 4,443 | 4,328 | (115) | (2.6%) | |||
Colombia | SIN | 14,481 | 15,148 | 667 | 4.6% | 22.2% | 23.3% |
Betania | 2,598 | 2,534 | (64) | (2.5%) | |||
Emgesa | 12,302 | 12,614 | 312 | 2.5% | |||
Brazil | SICN | 3,770 | 3,902 | 132 | 3.5% | 1.0% | 1.2% |
Cachoeira | 3,770 | 3,902 | 132 | 3.5% | |||
Total | 50,634 | 53,444 | 2,810 | 5.5% | |||
Table 14
Company | GWh Produced | Var 04-03 | Chg % | |
YE 03 | YE 04 | |||
Chilean Companies | 16,525 | 16,797 | 272 | 1.6% |
Chocón | 4,038 | 3,432 | (606) | (15.0%) |
Costanera | 4,090 | 8,171 | 4,081 | 99.8% |
Edegel | 4,458 | 4,285 | (173) | (3.9%) |
Betania | 1,589 | 1,853 | 264 | 16.6% |
Emgesa | 9,205 | 10,028 | 823 | 8.9% |
Cachoeira | 3,024 | 3,262 | 238 | 7.9% |
TOTAL | 42,929 | 47,828 | 4,899 | 11.4% |
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PRESS RELEASE | |
Distribution Business
Table 15
Distribution Business | YE 03 | YE 04 | Var 04-03 | Chg % |
Customers (Th) | 10,443 | 10,886 | 443 | 4.2% |
GWh Sold | 49,577 | 52,314 | 2,737 | 5.5% |
Clients/Employe | 1,429 | 1,521 | 92 | 6.4% |
Energy Losses % (TTM) | 12.2% | 11.9% | (0.3%) | (2.5%) |
Highlights
InChile,Physical sales in our concession area increased by 7.6% in 2004.
In line with our expectations, Chilectra tariffs decreased 4.4%.
The Board of Chilectra approved the new client - orientation structure of the company, making innovation one of its main drivers.
InBrazil,Coelce ‘s physical sales increased by 4.0% in 2004.
Also Cerj’s physical sales increased by 4,8% and energy losses went down to 22,8% during the year 2004.
On November 2004, Coelce issued debentures in local currency, by Brl$ 89 million with a 8 years maturity. This is the largest maturity ever issued by an electric company in Brazil. Also, on June 2004, Cerj, issued debentures in local currency, by Brl$ 294 million for 3 years, as part of its strengthening plan.
InColombia,physical sales in our concession area increased by 4.3% in 2004
Energy losses decreased below 10%, reaching 9,7% which is a very close level to technical losses.
On March 2004, Codensa issued bonds in local currency, by Cop$ 500 million, funds used to prepay short term debt.
InArgentina,energy demand has continued growing, as a consequence of the strong industrial activity, showing an increase of 5.3% when compared to the previous year.
On October 2004, Edesur issued bonds in local currency, by Ar$ 120 million. This is the first issuance in local currency since the Argentinean crisis. It is worth mentioning that Edesur was assigned with BBB local rating from Fitch Ratings.
InPeru,the country risk has been reaching lower historical levels, helping companies to get better conditions for new local refinancing.
Physical sales in our concession area increased by 7.1% during 2004.
On June 2004, Edelnor issued bonds in local currency, by Pen$ 150 million, to refinance its debt.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 34 |
PRESS RELEASE | |
On the following pages an analysis of Enersis’ distribution subsidiaries is shown. Figures of foreign subsidiaries are accounted for under Chilean Technical Bulletin 64, therefore they could differ from those registered in their respective local GAAP.
Chilectra (Under Chilean GAAP)
Table 16
Million US$ | Million Ch$ | ||||||
YE 03 | YE 04 | YE 03 | YE 04 | Chg% | |||
Revenues from Sales | 757 | 817 | 422,212 | 455,366 | 7.9% | ||
Other Operating Revenues | 41 | 50 | 22,591 | 27,640 | 22.4% | ||
Operating Revenues | 798 | 867 | 444,803 | 483,006 | 8.6% | ||
Energy Purchases | (477) | (527) | (265,627) | (293,868) | (10.6%) | ||
Other Operating Cost | (87) | (88) | (48,502) | (49,119) | (1.3%) | ||
Operating Costs | (564) | (615) | (314,129) | (342,986) | (9.2%) | ||
Selling and Administrative Expenses | (63) | (76) | (35,299) | (42,408) | (20.1%) | ||
Operating Income | 171 | 175 | 95,375 | 97,612 | 2.3% | ||
Interest Income | 3 | 3 | 1,845 | 1,555 | (15.7%) | ||
Interest Expenses | (68) | (57) | (38,002) | (31,888) | 16.1% | ||
Net Financial Income (Expenses) | (65) | (54) | (36,157) | (30,334) | 16.1% | ||
Equity Gains from Related Company | 8 | 9 | 4,305 | 5,123 | 19.0% | ||
Equity Losses from Related Company | (102) | (39) | (57,027) | (21,818) | 61.7% | ||
Net Income from Related Companies | (95) | (30) | (52,722) | (16,695) | 68.3% | ||
Other Non Operating Income | 44 | 45 | 24,474 | 25,006 | 2.2% | ||
Other Non Operating Expenses | (18) | (20) | (10,111) | (11,067) | (9.5%) | ||
Conversion Effect (BT 64) | - | - | - | - | |||
Net other Non Operating Income (Expenses) | 26 | 25 | 14,363 | 13,939 | (3.0%) | ||
Price Level Restatement | 16 | 10 | 8,920 | 5,655 | (36.6%) | ||
Foreign Exchange Effect | - | - | - | - | |||
Net of Monetary Exposure | 16 | 10 | 8,920 | 5,655 | (36.6%) | ||
Positive Goodwill Amortization | (1) | (1) | (347) | (468) | (34.9%) | ||
Non Operating Income | (118) | (50) | (65,943) | (27,903) | 57.7% | ||
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 53 | 125 | 29,432 | 69,709 | 136.8% | ||
Extraordinary Items | - | - | - | - | |||
Income Tax | (1) | 12 | (424) | 6,592 | - | ||
Minority Interest | 19 | 2 | 10,502 | 1,021 | (90.3%) | ||
Negative Goodwill Amortization | 24 | - | 13,246 | - | (100.0%) | ||
NET INCOME | 95 | 139 | 52,756 | 77,322 | 46.6% | ||
Net Income
Chilectra registered a Net Income of $77,322 million, which is $24,566 million higher than the previous year. This result is mainly explained by:
Operating Income
Higher Operating Income of $2,237 million, due to higher operating revenues of $38,202 million, partially compensated by higher operating costs of $28,856.
Non Operating Income
Lower Non-Operating Loss of $38,040 million, due to lower net loss from related companies of $36,027 million, lower net financial expenses of $5,823 million, compensated by lower net of monetary exposure of $3,265 million.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 35 |
PRESS RELEASE | |
Other
Regarding Negative Goodwill Amortization, it decreased $13,246 million. The minority interest reached $1,021 million.
Additional Information
Table 17
Chilectra | YE 03 | YE 04 | Chg% |
Customers (Th) | 1,341 | 1,371 | 2.2% |
GWh Sold | 10,518 | 11,317 | 7.6% |
Clients/Employee | 1,800 | 1,981 | 10.1% |
Energy Losses % (TTM) | 5.6% | 5.2% | 0.4% |
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PRESS RELEASE | |
Cerj (Under Chilean GAAP *)
Table 18
Million US$ | Million Ch$ | ||||||
YE 03 | YE 04 | YE 03 | YE 04 | Chg% | |||
Revenues from Sales | 552 | 605 | 307,640 | 337,498 | 9.7% | ||
Other Operating Revenues | 32 | 31 | 17,893 | 17,139 | (4.2%) | ||
Operating Revenues | 584 | 636 | 325,533 | 354,638 | 8.9% | ||
Energy Purchases | (337) | (334) | (187,676) | (186,273) | 0.7% | ||
Other Operating Cost | (182) | (192) | (101,533) | (106,872) | (5.3%) | ||
Operating Costs | (519) | (526) | (289,209) | (293,145) | (1.4%) | ||
Selling and Administrative Expenses | (20) | (26) | (11,199) | (14,600) | (30.4%) | ||
Operating Income | 45 | 84 | 25,125 | 46,892 | 86.6% | ||
Interest Income | 24 | 36 | 13,272 | 20,138 | 51.7% | ||
Interest Expenses | (72) | (94) | (40,127) | (52,278) | (30.3%) | ||
Net Financial Income (Expenses) | (48) | (58) | (26,855) | (32,140) | (19.7%) | ||
Equity Gains from Related Company | - | - | - | - | |||
Equity Losses from Related Company | (6) | (4) | (3,242) | (2,366) | 27.0% | ||
Net Income from Related Companies | (6) | (4) | (3,242) | (2,366) | 27.0% | ||
Other Non Operating Income | 14 | 47 | 7,851 | 26,451 | - | ||
Other Non Operating Expenses | (129) | (95) | (72,000) | (52,852) | 26.6% | ||
Conversion Effect (BT 64) | (109) | (26) | (60,674) | (14,467) | 76.2% | ||
Net other Non Operating Income (Expenses) | (224) | (73) | (124,822) | (40,867) | 67.3% | ||
Price Level Restatement | - | - | - | - | |||
Foreign Exchange Effect | - | - | - | - | |||
Net of Monetary Exposure | - | - | - | - | |||
Positive Goodwill Amortization | - | - | - | - | |||
Non Operating Income | (278) | (135) | (154,919) | (75,373) | 51.3% | ||
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | (233) | (51) | (129,794) | (28,481) | 78.1% | ||
Extraordinary Items | - | - | - | - | |||
Income Tax | 51 | (4) | 28,552 | (2,478) | (108.7%) | ||
Minority Interest | - | - | - | - | |||
Negative Goodwill Amortization | - | - | - | - | |||
NET INCOME | (182) | (56) | (101,243) | (30,959) | 69.4% | ||
Net Income
Cerj registered a Net Loss of $30,959 million which is $70,284 million lower loss than the previous year. This result is mainly due to:
Operating Income
Higher Operating Income of $21,767 million, mainly explained by higher revenues from sales of $29,858 million, due to physical sales, which increased by 352 GWh and also the reduction of energy losses down to 22.8%. This was partially compensated by higher operating costs of $3,936 million.
Non Operating Income
Lower Non Operating Loss of $79,546 million, mainly explained by lower net other non operating expenses of $83,955 million, mainly explained by a lower negative conversion effect of $46,207 million as a result of the Brazilian Reais appreciation and the application of the Technical Bulletin N°64 of Chilean GAAP.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 37 |
PRESS RELEASE | |
Other
Tax loss increase $31,030 million compared to the previous year.
Additional Information
Table 19
Cerj | YE 03 | YE 04 | Chg% |
Customers (Th) | 2,012 | 2,115 | 5.1% |
GWh Sold | 7,276 | 7,628 | 4.8% |
Clients/Employee | 1,326 | 1,502 | 13.3% |
Energy Losses % (TTM) | 23.6% | 22.8% | 0.8% |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 38 |
PRESS RELEASE | |
Coelce (Under Chilean GAAP*)
Table 20
Million US$ | Million Ch$ | ||||
YE 03 | YE 04 | YE 03 | YE 04 | Chg % | |
Revenues from Sales | 375 | 467 | 209,078 | 260,188 | 24.4% |
Other Operating Revenues | 6 | 7 | 3,494 | 4,170 | 19.3% |
Operating Revenues | 381 | 474 | 212,572 | 264,358 | 24.4% |
Energy Purchases | (167) | (290) | (93,085) | (161,653) | (73.7%) |
Other Operating Cost | (124) | (122) | (68,937) | (68,021) | 1.3% |
Operating Costs | (291) | (412) | (162,022) | (229,674) | (41.8%) |
Selling and Administrative Expenses | (54) | (53) | (30,362) | (29,782) | 1.9% |
Operating Income | 36 | 9 | 20,188 | 4,902 | (75.7%) |
Interest Income | 41 | 31 | 22,988 | 17,461 | (24.0%) |
Interest Expenses | (57) | (43) | (31,775) | (23,819) | 25.0% |
Net Financial Income (Expenses) | (16) | (11) | (8,787) | (6,359) | 27.6% |
Equity Gains from Related Company | - | - | - | - | |
Equity Losses from Related Company | - | - | - | - | |
Net Income from Related Companies | - | - | - | - | |
Other Non Operating Income | 2 | 1 | 1,076 | 471 | (56.3%) |
Other Non Operating Expenses | (11) | (2) | (6,139) | (845) | 86.2% |
Conversion Effect (BT 64) | (22) | (21) | (12,536) | (11,552) | 7.8% |
Net other Non Operating Income (Expenses) | (32) | (21) | (17,599) | (11,927) | 32.2% |
Price Level Restatement | - | - | - | - | |
Foreign Exchange Effect | - | - | - | - | |
Net of Monetary Exposure | - | - | - | - | |
Positive Goodwill Amortization | - | - | - | - | |
Non Operating Income | (47) | (33) | (26,386) | (18,286) | 30.7% |
Net Income b, Taxes. Min Int and Neg Goodwill Amort, | (11) | (24) | (6,198) | (13,383) | (115.9%) |
Extraordinary Items | - | - | - | - | |
Income Tax | (8) | (1) | (4,245) | (656) | 84.5% |
Minority Interest | - | - | - | - | |
Negative Goodwill Amortization | - | - | - | - | |
NET INCOME | (19) | (25) | (10,443) | (14,040) | (34.4%) |
* | Please take note that these figures could differed from those accounted under Brazilian GAAP. |
Net Income
Coelce registered a Net Loss of $14,040 million which is $3,597 million higher than the previous year. This result is mainly due to:
Operating Income
Lower Operating Income of $15,286 million, mainly due to higher operating costs of $67,652 million basically related to higher energy purchases that were not entirely compensated by the increase in tariffs and the increase of 236 GWh in physical sales. This increase in costs was partially compensated by higher operating revenues of $51,786 million related by higher revenues from sales. This reduction is significantly offset by Non Operating Loss.
Non Operating Income
Lower Non Operating Loss of $8,100 million, mainly explained by lower net financial expenses of $2,428 million and negative conversion effect of $984 million as a result of the Brazilian Reais appreciation and the application of the Technical Bulletin N°64 of Chilean GAAP.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 39 |
PRESS RELEASE | |
Other
Tax loss decrease by $3,589 million compared to the previous year.
Additional Information
Table 21
Coelce | YE 03 | YE 04 | Chg % |
Customers (Th) | 2,109 | 2,334 | 10.7% |
GWh Sold | 5,905 | 6,141 | 4.0% |
Clients/Employee | 1,534 | 1,746 | 13.8% |
Energy Losses % (TTM) | 13.5% | 13.9% | (0.4%) |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 40 |
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Codensa (Under Chilean GAAP*)
Table 22
Million US$ | Million Ch$ | ||||
YE 03 | YE 04 | YE 03 | YE 04 | Chg % | |
Revenues from Sales | 436 | 509 | 242,969 | 283,603 | 16.7% |
Other Operating Revenues | 101 | 147 | 56,489 | 81,910 | 45.0% |
Operating Revenues | 537 | 656 | 299,459 | 365,513 | 22.1% |
Energy Purchases | (274) | (309) | (152,916) | (172,289) | (12.7%) |
Other Operating Cost | (182) | (184) | (101,306) | (102,344) | (1.0%) |
Operating Costs | (456) | (493) | (254,222) | (274,633) | (8.0%) |
Selling and Administrative Expenses | (19) | (12) | (10,662) | (6,431) | 39.7% |
Operating Income | 62 | 152 | 34,574 | 84,449 | 144.3% |
Interest Income | 15 | 32 | 8,435 | 18,047 | 114.0% |
Interest Expenses | (9) | (22) | (4,951) | (12,480) | (152.1%) |
Net Financial Income (Expenses) | 6 | 10 | 3,484 | 5,567 | 59.8% |
Equity Gains from Related Company | - | - | - | - | |
Equity Losses from Related Company | - | - | - | - | |
Net Income from Related Companies | - | - | - | - | |
Other Non Operating Income | 8 | 14 | 4,469 | 7,559 | 69.2% |
Other Non Operating Expenses | (2) | (6) | (1,360) | (3,218) | (136.7%) |
Conversion Effect (BT 64) | (0) | (12) | (91) | (6,526) | - |
Net other Non Operating Income (Expenses) | 5 | (4) | 3,019 | (2,185) | (172.4%) |
Price Level Restatement | - | - | - | - | |
Foreign Exchange Effect | - | - | - | - | |
Net of Monetary Exposure | - | - | - | - | |
Positive Goodwill Amortization | - | - | - | - | |
Non Operating Income | 12 | 6 | 6,502 | 3,382 | (48.0%) |
Net Income b, Taxes. Min Int and Neg Goodwill Amort, | 74 | 158 | 41,077 | 87,831 | 113.8% |
Extraordinary Items | - | - | - | - | |
Income Tax | (41) | (56) | (22,606) | (31,156) | (37.8%) |
Minority Interest | - | - | - | - | |
Negative Goodwill Amortization | - | - | - | - | |
NET INCOME | 33 | 102 | 18,471 | 56,675 | - |
* | Please take note that these figures could differed from those accounted under Colombian GAAP. |
Net Income
Codensa registered a Net Income of $56,675 million which is $38,204 million higher than the previous year. This result is mainly due to:
Operating Income
Higher Operating Income of $49,875 million, primarily explained by higher energy sales of $40,634 million due to greater demand that led to a rise of 4.3% in physical sales that amounted 9,656 GWh.
Non Operating Income
Lower Non-Operating Income of $3,120 million, primarily explained by higher other non operating expenses of $5.204 million and higher losses of $6.435 million, related to the negative conversion effect registered as a result of the application of Technical Bulletin N°64 of Chilean GAAP.
Other
Tax loss increase by $8,550 million compared to the previous year.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 41 |
PRESS RELEASE | |
Additional Information
Table 23
Codensa | YE 03 | YE 04 | Chg % |
Customers (Th) | 1,972 | 2,015 | 2.2% |
GWh Sold | 9,254 | 9,656 | 4.3% |
Clients/Employee | 2,298 | 2,236 | (2.7%) |
Energy Losses % (TTM) | 10.2% | 9.7% | 0.5% |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 42 |
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Edelnor (Under Chilean GAAP*)
Table 24
Million US$ | Million Ch$ | ||||
YE 03 | YE 04 | YE 03 | YE 04 | Chg % | |
Revenues from Sales | 313 | 318 | 174,428 | 177,369 | 1.7% |
Other Operating Revenues | 11 | 9 | 5,917 | 4,993 | (15.6%) |
Operating Revenues | 324 | 327 | 180,345 | 182,363 | 1.1% |
Energy Purchases | (202) | (208) | (112,353) | (115,843) | (3.1%) |
Other Operating Cost | (42) | (39) | (23,269) | (21,877) | 6.0% |
Operating Costs | (243) | (247) | (135,623) | (137,720) | (1.5%) |
Selling and Administrative Expenses | (31) | (30) | (17,522) | (16,804) | 4.1% |
Operating Income | 49 | 50 | 27,201 | 27,838 | 2.3% |
Interest Income | 4 | 4 | 1,974 | 1,962 | (0.6%) |
Interest Expenses | (10) | (12) | (5,614) | (6,870) | (22.4%) |
Net Financial Income (Expenses) | (7) | (9) | (3,640) | (4,907) | (34.8%) |
Equity Gains from Related Company | - | - | - | - | |
Equity Losses from Related Company | - | - | - | - | |
Net Income from Related Companies | - | - | - | - | |
Other Non Operating Income | 6 | 7 | 3,520 | 3,998 | 13.6% |
Other Non Operating Expenses | (3) | (6) | (1,465) | (3,479) | (137.6%) |
Conversion Effect (BT 64) | (3) | (10) | (1,565) | (5,328) | - |
Net other Non Operating Income (Expenses) | 1 | (9) | 491 | (4,810) | - |
Price Level Restatement | - | - | - | - | |
Foreign Exchange Effect | - | - | - | - | |
Net of Monetary Exposure | - | - | - | - | |
Positive Goodwill Amortization | - | - | - | - | |
Non Operating Income | (6) | (17) | (3,149) | (9,717) | - |
Net Income b, Taxes. Min Int and Neg Goodwill Amort, | 43 | 33 | 24,052 | 18,121 | (24.7%) |
Extraordinary Items | - | - | - | - | |
Income Tax | (19) | (33) | (10,648) | (18,644) | (75.1%) |
Minority Interest | - | - | - | - | |
Negative Goodwill Amortization | - | - | - | - | |
NET INCOME | 24 | (1) | 13,404 | (523) | (103.9%) |
* | Please take note that these figures could differed from those accounted under Peruvian GAAP. |
Net Income
Edelnor registered a Net Loss of $523 million, negatively compared with a Net Profit of $13,404 million registered the previous year. This result is mainly due to:
Operating Income
Higher Operating Income of $637 million, related to higher revenues from sales of $2,941 million, compensated by higher operating cost of $2,097 million.
Non Operating Income
Higher Non-Operating Losses of $6,568 million, mainly due to higher net financial expenses of $1,267 million and higher net other non operating expenses of $5,301 million mainly explained by the negative BT 64 conversion effect of $3,763 million.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 43 |
PRESS RELEASE | |
Other
Higher Tax Loss of $7,996 million, from $10,648 million to $18,644 registered on the year 2004.
Additional Information
Table 25
Edelnor | YE 03 | YE 04 | Chg % |
Customers (Th) | 892 | 912 | 2.2% |
GWh Sold | 3,968 | 4,250 | 7.1% |
Clients/Employee | 1,610 | 1,680 | 4.3% |
Energy Losses % (TTM) | 8.4% | 8.4% | 0.0% |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 44 |
PRESS RELEASE | |
Edesur (Under Chilean GAAP*)
Table 26
Million US$ | Million Ch$ | ||||
YE 03 | YE 04 | YE 03 | YE 04 | Chg % | |
Revenues from Sales | 314 | 350 | 175,280 | 195,105 | 11.3% |
Other Operating Revenues | 24 | 25 | 13,260 | 13,877 | 4.7% |
Operating Revenues | 338 | 375 | 188,541 | 208,982 | 10.8% |
Energy Purchases | (148) | (189) | (82,646) | (105,475) | (27.6%) |
Other Operating Cost | (148) | (136) | (82,549) | (75,950) | 8.0% |
Operating Costs | (296) | (325) | (165,195) | (181,425) | (9.8%) |
Selling and Administrative Expenses | (52) | (50) | (28,724) | (27,811) | 3.2% |
Operating Income | (10) | (0) | (5,378) | (254) | 95.3% |
Interest Income | 11 | 7 | 6,099 | 3,665 | (39.9%) |
Interest Expenses | (22) | (24) | (12,448) | (13,225) | (6.2%) |
Net Financial Income (Expenses) | (11) | (17) | (6,349) | (9,560) | (50.6%) |
Equity Gains from Related Company | 0 | - | 7 | - | (100.0%) |
Equity Losses from Related Company | - | (0) | - | (0) | |
Net Income from Related Companies | 0 | (0) | 7 | (0) | (100.4%) |
Other Non Operating Income | 1 | 14 | 339 | 7,642 | - |
Other Non Operating Expenses | (20) | (15) | (10,971) | (8,576) | 21.8% |
Conversion Effect (BT 64) | 13 | 3 | 7,392 | 1,686 | (77.2%) |
Net other Non Operating Income (Expenses) | (6) | 1 | (3,240) | 752 | 123.2% |
Price Level Restatement | - | - | - | - | |
Foreign Exchange Effect | - | - | - | - | |
Net of Monetary Exposure | - | - | - | - | |
Positive Goodwill Amortization | - | - | - | - | |
Non Operating Income | (17) | (16) | (9,581) | (8,808) | 8.1% |
Net Income b, Taxes. Min Int and Neg Goodwill Amort, | (27) | (16) | (14,959) | (9,061) | 39.4% |
Extraordinary Items | - | - | - | - | |
Income Tax | (23) | (14) | (12,820) | (8,069) | 37.1% |
Minority Interest | - | - | - | - | |
Negative Goodwill Amortization | - | - | - | - | |
NET INCOME | (50) | (31) | (27,779) | (17,130) | 38.3% |
* | Please take note that these figures could differed from those accounted under Argentinean GAAP. |
Net Income
Edesur registered a Net Loss of $17,130 million, $10,649 million lower loss than the previous year. This result is mainly due to:
Operating Income
Higher Operating Loss of $5,124 million, mainly due to higher operating revenues by $19,825 million, explained by the improved energy demand observed in the country and which has led to an increase of 5.3% in physical sales. This was compensated by $16,230 million higher operating costs related to higher energy purchases.
Non Operating Income
Lower Non-Operating Losses of $773 million, mainly explained by higher net other non operating income of $3,992 million, partially compensated by higher net financial expenses of $3,211 million.
Other
Tax loss decrease by $4,751 million compared to the previous year.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 45 |
PRESS RELEASE | |
Additional Information
Table 27
Edesur | YE 03 | YE 04 | Chg % |
Customers (Th) | 2,117 | 2,139 | 1.0% |
GWh Sold | 12,656 | 13,322 | 5.3% |
Clients/Employee | 938 | 939 | 0.2% |
Energy Losses % (TTM) | 11.8% | 11.8% | 0.0% |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 46 |
PRESS RELEASE | |
Partially Consolidated Income Statement
Parent Company Consolidated with Enersis Internacional December 2004 Earnings Report
Under Chilean GAAP, Million Ch$
Table 29
4Q 03 | Var % | (in million Ch$ of YE04) | YE 04 | YE 03 | Var % |
787 | 9.4% | Gross Operating Margin | 3,331 | 3,282 | 1.5% |
(5,513) | 10.8% | S&A Expenses | (17,315) | (17,444) | 0.7% |
(4,726) | 14.2% | Operating Income | (13,983) | (14,162) | 1.3% |
6,725 | 115.7% | Endesa | 50,257 | 48,035 | 4.6% |
23,927 | 52.2% | Chilectra | 92,361 | 103,622 | (10.9%) |
- | NA | Río Maipo | - | - | NA |
124 | (2360.0%) | Edesur | (11,100) | (17,995) | 38.3% |
88 | (1112.5%) | Edelnor | 355 | 6,150 | (94.2%) |
(1,805) | (528.8%) | Cerj | (24,877) | (72,620) | 65.7% |
(239) | (112.0%) | Coelce | (1,678) | (2,299) | 27.0% |
1,466 | 128.5% | Codensa | 11,399 | 1,926 | 492.0% |
2,071 | 40.6% | CAM LTDA | 5,574 | 7,027 | (20.7%) |
924 | 10.6% | Inm Manso de Velasco | 3,006 | 1,339 | 124.4% |
2,225 | (45.2%) | Synapsis | 4,229 | 5,794 | (27.0%) |
- | NA | CGTF | 11,857 | - | NA |
122 | (303.8%) | Other | (1,271) | 0 | NA |
35,628 | 28.1% | Net Income from Related Companies | 140,113 | 80,978 | 73.0% |
12,801 | (27.0%) | Interest Income | 44,772 | 59,094 | (24.2%) |
(41,029) | 60.3% | Interest Expense | (72,354) | (146,161) | 50.5% |
(28,228) | 75.4% | Net Financial Income (Expenses) | (27,581) | (87,068) | 68.3% |
1,727 | 186.1% | Other Non Operating Income | 11,872 | 102,241 | (88.4%) |
(7,091) | (32.9%) | Other Non Operating Expenses | (18,718) | (23,820) | 21.4% |
(5,364) | 16.4% | Net other Non Operating Income (Expenses) | (6,846) | 78,421 | (108.7%) |
2,469 | 117.3% | Price Level Restatement | (1,597) | (5,303) | 69.9% |
(12,203) | 29.0% | Foreign Exchange Effect | (11,519) | (24,106) | 52.2% |
(9,734) | (66.1%) | Net Monetary Exposure | (13,116) | (29,408) | 55.4% |
(12,793) | (0.3%) | Positive Goodwill Amortization | (51,265) | (51,110) | (0.3%) |
(20,492) | 125.5% | Non Operating Income | 41,305 | (8,187) | 604.5% |
(25,218) | 104.6% | Net Income before (1). (2) & (3) | 27,321 | (22,349) | 222.3% |
11,825 | (36.0%) | Income Tax (1) | 16,946 | 12,952 | 30.8% |
71 | (88.6%) | Negative Goodwill Amortization (2) | 40 | 22,176 | (99.8%) |
- | NA | Minority Interest (3) | - | - | NA |
(13,322) | (165.6%) | NET INCOME | 44,308 | 12,781 | 246.7% |
(0.41) | EPS (Ch$) | 1.36 | 0.39 | ||
(0.04) | EPADS (US$) | 0.12 | 0.04 | ||
32,651,166 | Common Shares Outstanding (Th) | 32,651,166 | 32,651,166 | ||
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 47 |
PRESS RELEASE | |
Under Chilean GAAP, Thousand US$
Table 29.1
4Q 04 | 4Q 03 | Var % | (in thousand US$ of YE04) | YE 04 | YE 03 | Var % |
1,544 | 1,411 | 9.4% | Gross Operating Margin | 5,977 | 5,888 | 1.5% |
(8,821) | (9,890) | 10.8% | S&A Expenses | (31,064) | (31,295) | 0.7% |
(7,277) | (8,479) | 14.2% | Operating Income | (25,087) | (25,407) | 1.3% |
26,030 | 12,065 | 115.7% | Endesa | 90,164 | 86,177 | 4.6% |
65,321 | 42,926 | 52.2% | Chilectra | 165,700 | 185,902 | (10.9%) |
- | - | NA | Río Maipo | - | - | NA |
(5,035) | 223 | (2360.0%) | Edesur | (19,914) | (32,284) | 38.3% |
(1,605) | 159 | (1112.5%) | Edelnor | 636 | 11,034 | (94.2%) |
(20,365) | (3,239) | (528.8%) | Cerj | (44,631) | (130,284) | 65.7% |
(909) | (429) | (112.0%) | Coelce | (3,010) | (4,125) | 27.0% |
6,008 | 2,629 | 128.5% | Codensa | 20,450 | 3,455 | 492.0% |
5,225 | 3,715 | 40.6% | CAM LTDA | 10,000 | 12,606 | (20.7%) |
1,834 | 1,657 | 10.6% | Inm Manso de Velasco | 5,393 | 2,403 | 124.4% |
2,189 | 3,991 | (45.2%) | Synapsis | 7,587 | 10,395 | (27.0%) |
3,654 | - | NA | CGTF | 21,272 | - | NA |
(448) | 220 | (303.8%) | Others | (2,280) | 0 | NA |
81,897 | 63,918 | 28.1% | Net Income from Related Companies | 251,368 | 145,279 | 73.0% |
16,760 | 22,966 | (27.0%) | Interest Income | 80,324 | 106,016 | (24.2%) |
(29,222) | (73,609) | 60.3% | Interest Expense | (129,806) | (262,220) | 50.5% |
(12,462) | (50,643) | 75.4% | Net Financial Income (Expenses) | (49,482) | (156,203) | 68.3% |
8,863 | 3,098 | 186.1% | Other Non Operating Income | 21,298 | 183,425 | (88.4%) |
(16,906) | (12,721) | (32.9%) | Other Non Operating Expenses | (33,580) | (42,734) | 21.4% |
(8,043) | (9,623) | 16.4% | Net other Non Operating Income (Expenses) | (12,282) | 140,691 | (108.7%) |
(766) | 4,429 | 117.3% | Price Level Restatement | (2,865) | (9,513) | 69.9% |
(28,238) | (21,893) | 29.0% | Foreign Exchange Effect | (20,665) | (43,246) | 52.2% |
(29,004) | (17,463) | (66.1%) | Net Monetary Exposure | (23,530) | (52,760) | 55.4% |
(23,022) | (22,951) | (0.3%) | Positive Goodwill Amortization | (91,971) | (91,694) | (0.3%) |
9,366 | (36,763) | 125.5% | Non Operating Income | 74,103 | (14,687) | 604.5% |
2,089 | (45,242) | 104.6% | Net Income before (1). (2) & (3) | 49,016 | (40,094) | 222.3% |
13,577 | 21,215 | (36.0%) | Income Tax (1) | 30,402 | 23,236 | 30.8% |
15 | 128 | (88.6%) | Negative Goodwill Amortization (2) | 72 | 39,785 | (99.8%) |
- | - | NA | Minority Interest (3) | - | - | NA |
15,681 | (23,899) | (165.6%) | NET INCOME | 79,490 | 22,927 | 246.7% |
0.27 | (0.41) | EPS (Ch$) | 1.36 | 0.39 | ||
0.02 | (0.04) | EPADS (US$) | 0.12 | 0.04 | ||
32,651,166 | 32,651,166 | Common Shares Outstanding (Th) | 32,651,166 | 32,651,166 | ||
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 48 |
PRESS RELEASE | |
Ownership of the Company as of December 31, 2004
TOTAL SHAREHOLDERS: 9,771
Conference Call Invitation
Enersis is pleased to inform you that it will hold a conference call to review its results for the period, on Friday, January 28, 2005, at 11:00 AM (New York time). To participate, please dial +1 (617) 614-3450 or +1 (800) 510-0178 (toll free USA), approximately 10 minutes prior to the scheduled start time, Passcode ID: 24556420.
The phone replay will be available since January 29, until February 5, dialing +1 (617) 801-6888 or 1+ (888) 286-8010 (toll free USA) Passcode ID: 94143432.
To access the call online, or to access the replay, go to:http://www.enersis.comInvestor Relations (please note that this is a listen only mode).
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 49 |
PRESS RELEASE | |
Contact Information
For further information, please contact Enersis:
Susana Rey
Head of Investor Relations
srm@e.enersis.cl
56 (2) 353 4554
Pablo Lanyi-Grunfeldt | Marcela Muñoz | Cristián Palacios | Carmen Poblete |
Investor Relations | Investor Relations | Investor Relations | Investor Relations |
Representative | Representative | Representative | Representative |
pll@e.enersis.cl | mml1@e.enersis.cl | cpg1@e.enersis.cl | cpt@e.enersis.cl |
56 (2) 353 4552 | 56 (2) 353 4555 | 56 (2) 353 4492 | 56 (2) 353 4447 |
Mariluz Muñoz
Investor Relations
Assistant
mlmr@e.enersis.cl
56 (2) 353 4682
Disclaimer
This Press Release contains statements that could constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this announcement and include statements regarding the intent, belief or current expectations of Enersis and its management with respect to, among other things: (1) Enersis’ business plans; (2) Enersis’cost-reduction plans; (3) trends affecting Enersis’ financial condition or results of operations, including market trends in the electricity sector in Chile or elsewhere; (4) supervision and regulation of the electricity sector in Chile or elsewhere; and (5) the future effect of any changes in the laws and regulations applicable to Enersis’ or its affiliates. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of various factors. These factors include a decline in the equity capital markets of the United States or Chile, an increase in the market rates of interest in the United States or elsewhere, adverse decisions by government regulators in Chile or elsewhere and other factors described in Enersis’ Annual Report on Form 20-F. Readers are cautioned not to place undue reliance on those forward-looking statements, which state only as of their dates. Enersis undertakes no obligation to release publicly the result of any revisions to these forward-looking statements.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 50 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
ENERSIS S.A. | |||||||
Date: February 01, 2005 | By: | /s/ Mario Valcarce | |||||
Name: Mario Valcarce | |||||||
Title: Chief Executive Officer |