FORM 6-K
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of May, 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
THE FIRST QUARTER ENDED MARCH 31, 2005
HIGHLIGHTS FOR THE PERIOD
[All figures in Chilean Pesos]
• | Operating Income improved 20.9%, to US$ 337 million from US$ 279 million, basically as a consequence of higher Operating Income reported by, | |
° | Generation subsidiaries in Chile, Colombia, Brazil and Argentina | |
° | Distribution subsidiaries in Chile, Colombia, Brazil, Argentina and Perú | |
• | Non operating income decreased 23.8%mainly due to, | |
° | A reduction in net other non operating income | |
° | A negative effect on exchange rate variation | |
• | Physical sales confirmed the increasing trend exhibited since 2H03, related to a recovered economic situation | |
° | Physical sales in generation increased 6.3%, from 12,842 GWh to 13,656 GWh | |
° | Physical sales in distribution increased 4.2%, from 12,948 GWh to 13,493 GWh | |
• | Our client base grew by more than 400,000 new customers. This growth is equivalent to add, every year, a new, mid size distribution company | |
• | Demand for electricity showed a sustained growth in all our concession areas, as follows : | |
° | Brazil: 8.1% | |
° | Peru: 5.9% | |
° | Chile: 3.8% | |
° | Argentina: 2.2% | |
° | Colombia: 1.2% | |
• | Labor productivity increased 4.0%, from 1,466 clients per employee in March 2004 to 1,525 last March 2005. | |
• | As planned, consolidated financial average debt was reduced by US$72 million. | |
• | During the quarter, Rating Agencies just started to recognized the overall improvement of Enersis, as follows, | |
° | Moody’s upgraded to Ba1 from Ba2 with stable outlook | |
° | Fitch, affirmed BBB- and improved the outlook, to Positive from Stable | |
° | S&P, affirmed BBB- and also improved the outlook, to Positive from Stable | |
• | Net Income decreased 21.5%, mostly because of the fall in Non Operating Income | |
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TABLE OF
CONTENTS
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GENERAL INFORMATION
(Santiago, Chile, April 27, 2005) Enersis (NYSE: ENI), announced today consolidated financial results for the first quarter, ended March 31, 2005. All figures are in both US$ and Ch$, and in accordance with Chilean Generally Accepted Accounting Principles (Chilean GAAP) as shown in the standardized form required by Chilean authorities (FECU). Variations refer to the period between March 31, 2004, and March 31, 2005. Figures have been adjusted by the CPI variation between both periods, equal to 2.2% .
For the purpose of converting Chilean pesos (Ch$) into US dollars (US$), we have used the exchange rate prevailing as of March 2005 for both periods under comparison, equal to US$1 = Ch$585.93. From an economic perspective, the Chilean peso appreciated by 4.9% against the US$, comparing March 31, 2005 to March 31, 2004.
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 and Cash Flow Statements compared to the information booked as of March 31, 2004.
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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.
The last 12 months, market capitalization increased 33.7% from US$4,084 million to US$5,461 million. Additionally, the share price rose from Ch$77.1 to Ch$98.0.
Source: Bloomberg
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 6 |
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Over the last 12 months, the ADR price rose by 30.6%, from US$6.43 to US$8.40, which compares very favorably with respect to the 1.41% variation of the Dow Jones Index for the same period.
Over the last 12 months, the Enersis unit price has increased 25.7%, from € 5.14 to € 6.46.
Source: Bloomberg
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 7 |
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MARKETPERCEPTION |
The latest research published on Enersis shows the following target prices for the ADR.
Table 1 | ||||
Publication Date | Company | Main Analyst | Target Price | Recommendation |
US$ (*) | ||||
April 26, 2005 | Merrill Lynch | Frank McGann | 12.00 | Buy |
April 14, 2005 | Larraín Vial | Cristian Ramirez | 9.07 | Outperform |
April 13, 2005 | Smith Barney | Stephen Trent | 10.25 | Hold |
April 11, 2005 | Bear Stearns | Rowe Michels | 11.00 | Peerperform |
February 28, 2005 | Raymond James | Ricardo Cavanagh | 10.60 | Buy |
ADR average target price (US$) | 10.58 | |||
DEBTMARKET |
The risk perception of bondholders has improved, reaching prices over 103% of par value, as shown in the following chart.
Source: Bloomberg
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RISK RATING CLASSIFICATION
International risk rating classification:
Moody’s: | Ba1 / Stable |
Rationale(26/Ene/05)
“Moody’s Investors Service upgraded the senior unsecured debt ratings of Enersis and Endesa Chile to Ba1 from Ba2...... Key macroeconomic improvements and stronger financial performance at both Enersis and Endesa Chile support the rating upgrades.”
Standard & Poor’s: | BBB- / Positive |
Rationale(28/Ene/05)
“S&P Rating Services affirmed its BBB- corporate credit rating on Chile-based electricity provider Enersis and revised the outlook to positive from stable, reflecting S&P’s expectations that Enersis financial profile will continue improving.......”
Fitch: | BBB- / Positive |
Rationale(09/Feb/05)
“…Operating income continues to grow reflecting improved regional economic conditions, strong demand growth, and lower regulatory uncertainties. Further improvement along this trend may result in additional positive rating actions.”
Local risk rating classification:
Feller Rate: | Bonds: A+ / Stable |
Shares: 1stClass Level 1 | |
Fitch: | Bonds: A+ / Stable |
Shares: 1stClass Level 1 |
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RAIIDAIE: Net income before taxes, interest, depreciation, amortization and extraordinary items (as defined by local SEC).
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RAIIDAIE: Net income before taxes, interest, depreciation, amortization and extraordinary items (as defined by local SEC).
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CONSOLIDATEDINCOMESTATEMENTANALYSIS
(Source in Ch$ FECU)
NETINCOME
As of March 2005, the company registered profits of Ch$7,716 million that represents a decrease of Ch$2,114 million or 21,5% respect to profits of Ch$9,830 million achieved in 2004. The decrease in results is explained mainly by lower non operating income and higher minority interest, the sum of which could not be offset by a 20.8% increase in operating income.
OPERATINGINCOME
Activities of Enersis are developed through subsidiaries in 5 different countries where the Company operates. Core business of the Company are Generation and Distribution of electricity.
Table 3 | ||||||||
1Q 04 | 1Q 05 | |||||||
Million Ch$ | Operating Revenues | Operating Costs | SG & A | Operating Income | Operating Revenues | Operating Costs | SG& A | Operating Income |
Endesa | 248,683 | (148,478) | (8,502) | 91,703 | 284,866 | (168,874) | (9,898) | 106,094 |
Chilectra S.A. | 106,361 | (75,427) | (8,607) | 22,327 | 117,580 | (88,279) | (7,406) | 21,895 |
Edesur S.A. | 57,270 | (49,715) | (7,155) | 400 | 66,115 | (54,930) | (7,132) | 4,053 |
Distrilima (Edelnor) | 47,796 | (35,576) | (4,179) | 8,041 | 54,556 | (41,129) | (4,998) | 8,429 |
Cerj | 106,001 | (87,351) | (4,560) | 14,090 | 128,950 | (102,856) | (5,122) | 20,972 |
Investluz (Coelce) | 72,828 | (60,873) | (8,704) | 3,251 | 71,693 | (53,558) | (9,156) | 8,979 |
Codensa S.A. | 97,896 | (72,207) | (2,412) | 23,277 | 106,198 | (77,481) | (2,743) | 25,974 |
CAM Ltda. | 17,978 | (15,050) | (1,608) | 1,320 | 21,191 | (17,794) | (1,699) | 1,698 |
Inmobiliaria Manso de Velasco Ltda. | 1,131 | (362) | (524) | 245 | 1,059 | (619) | (430) | 10 |
Synapsis Soluciones y Servicios IT Ltda. | 10,221 | (7,480) | (1,571) | 1,170 | 9,210 | (6,689) | (1,648) | 873 |
Enersis Holding and other investment vehicles | 1,105 | (284) | (3,564) | (2,743) | 1,112 | (264) | (3,298) | (2,450) |
Consolidation Adjustments | (74,556) | 68,108 | 6,745 | 297 | (64,821) | 58,943 | 6,792 | 914 |
Total Consolidation | 692,714 | (484,695) | (44,641) | 163,378 | 797,709 | (553,530) | (46,738) | 197,441 |
Table 3.1 | ||||||||
1Q 04 | 1Q 05 | |||||||
Thousand US$ | Operating Revenues | Operating Costs | SG & A | Operating Income | Operating Revenues | Operating Costs | SG& A | Operating Income |
Endesa | 424,424 | (253,406) | (14,510) | 156,508 | 486,178 | (288,215) | (16,893) | 181,070 |
Chilectra S.A. | 181,525 | (128,730) | (14,689) | 38,106 | 200,672 | (150,665) | (12,640) | 37,367 |
Edesur S.A. | 97,742 | (84,848) | (12,211) | 683 | 112,838 | (93,749) | (12,172) | 6,917 |
Distrilima (Edelnor) | 81,573 | (60,717) | (7,132) | 13,724 | 93,110 | (70,195) | (8,530) | 14,385 |
Cerj | 180,911 | (149,081) | (7,783) | 24,046 | 220,078 | (175,542) | (8,742) | 35,794 |
Investluz (Coelce) | 124,295 | (103,891) | (14,855) | 5,548 | 122,357 | (91,406) | (15,626) | 15,324 |
Codensa S.A. | 167,078 | (123,235) | (4,116) | 39,727 | 181,247 | (132,236) | (4,681) | 44,330 |
CAM Ltda. | 30,683 | (25,686) | (2,745) | 2,252 | 36,167 | (30,369) | (2,900) | 2,899 |
Inmobiliaria Manso de Velasco Ltda. | 1,930 | (618) | (894) | 419 | 1,808 | (1,056) | (734) | 18 |
Synapsis Soluciones y Servicios IT Ltda. | 17,444 | (12,766) | (2,681) | 1,997 | 15,718 | (11,416) | (2,813) | 1,489 |
Enersis Holding and other investment vehicles | 1,886 | (485) | (6,083) | (4,682) | 1,898 | (451) | (5,629) | (4,183) |
Consolidation Adjustments | (127,244) | 116,239 | 11,512 | 507 | (110,629) | 100,598 | 11,592 | 1,560 |
Total Consolidation | 1,182,247 | (827,223) | (76,186) | 278,837 | 1,361,439 | (944,702) | (79,767) | 336,970 |
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Operating income as of March 2005 amounted to Ch$197,441 million, reflecting an increase of Ch$34,063 million, or 20.9%, with respect to the previous year. This increase is principally due to an important increase in operating income in the Generation subsidiaries in Chile, Colombia, Brazil and Argentina as well as all the distribution subsidiaries.
If we compare the operating income, deducting the effects of the 4.9% appreciation of the Chilean Peso against the US Dollar, the increase in Operating Income would have been 23.6% .
NONOPERATINGINCOME
The company’s non-operating result increased by Ch$21,137 million or 23.8% increasing from a loss of Ch$88,908 million as of March 2004 to a loss of Ch$110,045 million as of March this year. This is principally due to higher non operating expenses, to the effects of exchange differences and monetary adjustment, partially compensated with lower interest expenses.
Interest expense net of interest income decreased by Ch$3,615 million or 4.7% from a net expense of Ch$77,640 million in 2004 to a net expense of Ch$74,025 million in 2005. This reduction in interest expense is mainly the result of lower average indebtedness.
Income from investments in related companies shows a decrease of Ch$1,069 million or 11.8%, from a profit of Ch$9,101 million as of March 2004 to a lower profit of Ch$8,032 million as of March 2005. This is due basically to lower profits of Ch$367 million registered from our related company Central Fortaleza (CGTF), of Ch$637 million from Gas Atacama and Ch$233 million from CIEN.
Amortization on positive goodwill remains at the same levels with no significant variations. This amounted to Ch$13,307 million, a reduction of 1.9% . The reduced amortization is due to the effect of the Chilean Peso exchange rate on the foreign subsidiaries carried in US Dollars and that have a positive goodwill.
Net other non-operating income and expenses reflect an increase of Ch$15,464 million, rising from a net loss of Ch$14,205 million in March 2004 to a net loss of Ch$29,669 million as of March 2005. The principal reasons for this variation are as follows:
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- Non recurring indemnity of Ch$7,999 million received by Edesur in 2004 from Alstom-Pirelli in the caseinvolving the Azopardo sub-station fire.
- Higher net losses amounting to Ch$8,562 million on derivative instrument contracts.
- Higher expenses of Ch$1,468 million in provisions for contingencies and lawsuits.
- An increase of Ch$1,611 million in the equity tax of 1.2% on all companies established in Colombia.
The above was partially compensated by the following:
- Lower losses of Ch$3,962 million as a result of the adjustment on the conversion to Chilean normsfollowing the application of Technical Bulletin Nº 64, principally on the subsidiaries in Colombia andBrazil.
- A reduction of Ch$1,621 million in expenses on Brazilian Pension System.
- An increase of Ch$759 million in dividends from related companies.
Foreign exchange differences as of March 2005 show a decrease of Ch$6,025 million with respect to the same period of last year, from a profit of Ch$6,476 million as of March 2004 to a lower profit of Ch$451 million during the current period. This is primarily due to the profit of Ch$3,955 million generated by the settlement of forwards. During this first quarter, the appreciation of the Chilean Peso against the US Dollar was 3.8% compared to the 5.1% in the previous period.
Income Tax and Deferred Taxes. As of March 2005 the company shows an decrease of Ch$4,540 million in tax expenses with respect of the previous year, from Ch$53,835 in March 2004 to Ch$49,295 million in the current year.
The increase of Ch$2,441 million in income tax is mainly explained by better tax results in our subsidiaries. This imply to account higher tax provisions of Ch$2,039 million in Ampla, of Ch$2,054 million in Edelnor, of Ch$1,462 million in Chilectra, of Ch$1,292 million in Edesur and of Ch$1,093 million in Emgesa, partially compensated by Ch$6,568 million in Enersis.
With regard to deferred taxes, that do not represent cash flow, these show a positive variation of Ch$6,981 million, explained mainly by the decrease on deferred taxes in Edelnor for Ch$ 4,791 million, Edesur for Ch$4,019 million and Edegel for Ch$ 3,309 million, partially compensated by Enersis and Coelce with Ch$5,650 million and Ch$1,682 million, respectively.
Amortization on negative goodwill in 2005 amounted to Ch$4,395 million which, when compared to the same period of the previous year, reflects a reduction of Ch$336 million. The reduction in the amortization is explained by the effect of exchange rate applied in foreign subsidiaries accounted for in dollars and that have a negative goodwill.
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*Current assets net of inventories and pre-paid expenses
**Using the ratio = Total debt / (equity + minority interest)
***EBITDAEI/Interest expenses = (Earnings before taxes+Fin exp+Net non operating income+depreciation+Positive Goodwill) /Interest expenses
****EBITDA: Operating Income+Depreciation+Amortization
Liquidity ratio as of March 2005 was 1.42, a 11.8% improvement over the ratio as of the same date in the previous year. This reflects the improved financial situation of the company following the Capital Increase and the rescheduling of debts carried out in the last two years.
Leverage ratio as of March 2005 was 0.88 times, reflecting a slight increase of 3.5% from the ratio for the same period of the year 2004. This is fundamentally due to the effect of the exchange rate in Chile.
EBITDA Evolution | |||||
1Q 2004 | Date | 1Q 2005 | Date | Variation | |
NominalTh Ch$ | 260,483,000 | 301,312,000 | |||
Exchange rate used | 616.41 | 03/31/04 | 585.93 | 03/31/05 | |
NominalTh US$ | 422,581 | 514,246 | 21.7% | ||
Accumulated Inflation in Chile | 2.20% | ||||
Adjusted by InflationTh Ch$ | 267,321,277 | 301,312,000 | |||
Exchange rate used | 585.93 | 03/31/05 | 585.93 | 03/31/05 | |
Ajusted by InflationTh US$ | 456,234 | 514,246 | 12.7% |
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ASSETSUNDERCHILEANGAAP, THOUSANDUS$ | ||||
Table 5.1 | ||||
ASSETS - (thousand US$) | 1Q 04 | 1Q 05 | Var 05-04 | Chg % |
CURRENT ASSETS | ||||
Cash | 70,639 | 90,505 | 19,866 | 28.1% |
Time deposits | 640,355 | 820,943 | 180,588 | 28.2% |
Marketable securities | 34,514 | 27,779 | (6,735) | (19.5%) |
Accounts receivable, net | 895,106 | 954,669 | 59,563 | 6.7% |
Notes receivable, net | 6,944 | 4,772 | (2,172) | (31.3%) |
Other accounts receivable, net | 174,446 | 109,859 | (64,587) | (37.0%) |
Amounts due from related companies | 241,008 | 19,015 | (221,993) | (92.1%) |
Inventories | 120,775 | 95,079 | (25,696) | (21.3%) |
Income taxes recoverable | 88,782 | 145,897 | 57,115 | 64.3% |
Prepaid expenses | 53,342 | 90,924 | 37,582 | 70.5% |
Deferred income taxes | 94,946 | 86,349 | (8,597) | (9.1%) |
Other current assets | 48,713 | 117,933 | 69,220 | 142.1% |
Total currrent assets | 2,469,571 | 2,563,724 | 94,153 | 3.8% |
PROPERTY, PLANT AND EQUIPMENT | ||||
Land | 206,707 | 214,906 | 8,199 | 4.0% |
Buildings and infraestructure and works in progres | 18,023,562 | 17,449,753 | (573,809) | (3.2%) |
Machinery and equipment | 3,198,025 | 3,091,985 | (106,040) | (3.3%) |
Other plant and equipment | 582,830 | 645,804 | 62,974 | 10.8% |
Technical appraisal | 1,119,472 | 1,044,916 | (74,556) | (6.7%) |
Sub - Total | 23,130,596 | 22,447,364 | (683,232) | (3.0%) |
Accumulated depreciation | (8,751,134) | (8,980,951) | (229,817) | (2.6%) |
Total property, plant and equipment | 14,379,462 | 13,466,412 | (913,050) | (6.3%) |
OTHER ASSETS | ||||
Investments in related companies | 335,130 | 333,361 | (1,769) | (0.5%) |
Investments in other companies | 241,486 | 89,448 | (152,038) | (63.0%) |
Positive goodwill, net | 1,337,127 | 1,222,101 | (115,026) | (8.6%) |
Negative goodwill, net | (156,462) | (94,266) | 62,196 | 39.8% |
Long-term receivables | 217,463 | 185,499 | (31,964) | (14.7%) |
Amounts due from related companies | 1,369 | 190,805 | 189,436 | - |
Intangibles | 145,376 | 145,675 | 299 | 0.2% |
Accumulated amortization | (73,036) | (80,934) | (7,898) | (10.8%) |
Others assets | 333,461 | 407,727 | 74,266 | 22.3% |
Total other assets | 2,381,914 | 2,399,416 | 17,502 | 0.7% |
TOTAL ASSETS | 19,230,947 | 18,429,552 | (801,395) | (4.2%) |
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LIABILITIES ANDSHAREHOLDERSEQUITYUNDERCHILEANGAAP,MILLIONCH$
Table 6 | ||||
LIABILITIES AND SHAREHOLDER´S EQUITY - (million Ch$) | 1Q 04 | 1Q 05 | Var 05-04 | Chg % |
CURRENT LIABILITIES | ||||
Short-term debt due to banks and financial institutions | 277,876 | 121,444 | (156,432) | 56.3% |
Current portion of long-term debt due to banks and financial institutions | 150,542 | 129,633 | (20,909) | 13.9% |
Promissory notes | - | - | - | |
Current portion of bonds payable | 59,434 | 99,824 | 40,390 | (68.0%) |
Current portion of long-term notes payable | 27,544 | 25,715 | (1,829) | 6.6% |
Dividends payable | 43,376 | 82,670 | 39,294 | (90.6%) |
Accounts payable | 230,257 | 240,775 | 10,518 | (4.6%) |
Short-term notes payable | 25,653 | 14,625 | (11,028) | 43.0% |
Miscellaneous payables | 47,762 | 40,710 | (7,052) | 14.8% |
Accounts payable to related companies | 30,090 | 78,817 | 48,727 | (161.9%) |
Accrued expenses | 49,081 | 52,259 | 3,178 | (6.5%) |
Withholdings | 72,151 | 46,913 | (25,238) | 35.0% |
Income taxes payable | 62,405 | 74,041 | 11,637 | (18.6%) |
Anticipated income | 10,715 | 5,241 | (5,474) | 51.1% |
Deferred income taxes | - | - | - | - |
Reinbursable financial contribution | 2,097 | 1,895 | (202) | 9.6% |
Other current liabilities | 52,065 | 43,930 | (8,135) | 15.6% |
Total current liabilities | 1,141,047 | 1,058,493 | (82,554) | 7.2% |
LONG-TERM LIABILITIES | ||||
Due to banks and financial institutions | 861,910 | 586,350 | (275,560) | 32.0% |
Bonds payable | 2,568,841 | 2,722,015 | 153,173 | (6.0%) |
Long -term notes payable | 148,698 | 144,938 | (3,760) | 2.5% |
Accounts payables | 27,749 | 53,408 | 25,658 | (92.5%) |
Amounts payable to related companies | 89 | - | (89) | 100.0% |
Accrued expenses | 325,386 | 320,770 | (4,616) | 1.4% |
Deferred income taxes | 34,132 | 73,359 | 39,227 | (114.9%) |
Reinbursable financial contribution | 8,303 | 5,987 | (2,316) | 27.9% |
Other long-term liabilities | 54,433 | 91,286 | 36,853 | (67.7%) |
Total long-term liabilities | 4,029,544 | 3,998,113 | (31,431) | 0.8% |
Minority interest | 3,470,214 | 3,139,865 | (330,349) | (9.5%) |
SHAREHOLDERS´ EQUITY | ||||
Paid-in capital, no par value | 2,276,721 | 2,283,404 | 6,683 | 0.3% |
Additional paid-in capital (share premium) | 161,438 | 161,424 | (14) | (0.0%) |
Other reserves | 523 | (66,284) | (66,808) | - |
Total capital and reserves | 2,427,299 | 2,360,276 | (67,022) | (2.8%) |
Retained earnings | 191,668 | 236,616 | 44,948 | 23.5% |
Net income for the period | 9,830 | 7,716 | (2,114) | (21.5%) |
Deficits of subsidaries in development stage | (1,612) | (2,652) | (1,040) | 64.5% |
Total retained earnings | 199,886 | 241,680 | 41,794 | 20.9% |
Total shareholder´s equity | 2,627,185 | 2,601,956 | (25,229) | (1.0%) |
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY | 11,267,989 | 10,798,427 | (469,562) | (4.2%) |
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LIABILITIES ANDSHAREHOLDERSEQUITYUNDERCHILEANGAAP,THOUSANDUS$
Table 6.1 | ||||
LIABILITIES - (thousand US$) | 1Q 04 | 1Q 05 | Var 05-04 | Chg % |
CURRENT LIABILITIES | ||||
Short-term debt due to banks and financial institutions | 474,248 | 207,267 | (266,981) | 56.3% |
Current portion of long-term debt due to banks and financial in | 256,929 | 221,244 | (35,685) | 13.9% |
Current portion of bonds payable | 101,435 | 170,369 | 68,934 | (68.0%) |
Current portion of long-term notes payable | 47,008 | 43,887 | (3,121) | 6.6% |
Dividends payable | 74,029 | 141,092 | 67,063 | (90.6%) |
Accounts payable | 392,978 | 410,929 | 17,951 | (4.6%) |
Short-term notes payable | 43,781 | 24,960 | (18,821) | 43.0% |
Miscellaneous payables | 81,515 | 69,480 | (12,035) | 14.8% |
Accounts payable to related companies | 51,354 | 134,516 | 83,162 | (161.9%) |
Accrued expenses | 83,767 | 89,191 | 5,424 | (6.5%) |
Withholdings | 123,140 | 80,066 | (43,074) | 35.0% |
Income taxes payable | 106,505 | 126,365 | 19,860 | (18.6%) |
Anticipated income | 18,287 | 8,945 | (9,342) | 51.1% |
Reinbursable financial contribution | 3,578 | 3,233 | (345) | 9.6% |
Other current liabilities | 88,860 | 74,975 | (13,885) | 15.6% |
Total current liabilities | 1,947,411 | 1,806,518 | (140,893) | 7.2% |
LONG-TERM LIABILITIES | ||||
Due to banks and financial institutions | 1,471,012 | 1,000,717 | (470,295) | 32.0% |
Bonds payable | 4,384,212 | 4,645,631 | 261,419 | (6.0%) |
Long -term notes payable | 253,782 | 247,364 | (6,418) | 2.5% |
Accounts payables | 47,360 | 91,150 | 43,790 | (92.5%) |
Amounts payable to related companies | 153 | - | (153) | 100.0% |
Accrued expenses | 555,333 | 547,455 | (7,878) | 1.4% |
Deferred income taxes | 58,253 | 125,201 | 66,948 | (114.9%) |
Reinbursable financial contribution | 14,171 | 10,218 | (3,953) | 27.9% |
Other long-term liabilities | 92,901 | 155,797 | 62,896 | (67.7%) |
Total long-term liabilities | 6,877,175 | 6,823,533 | (53,642) | 0.8% |
Minority interest | 5,922,574 | 5,358,771 | (563,803) | (9.5%) |
SHAREHOLDERS´ EQUITY | ||||
Paid-in capital, no par value | 3,885,654 | 3,897,060 | 11,406 | 0.3% |
Additional paid-in capital (share premium) | 275,525 | 275,501 | (24) | (0.0%) |
Other reserves | 893 | (113,127) | (114,020) | - |
Total capital and reserves | 4,142,643 | 4,028,257 | (114,386) | (2.8%) |
Retained earnings | 327,118 | 403,829 | 76,711 | 23.5% |
Net income for the period | 16,777 | 13,169 | (3,608) | (21.5%) |
Deficits of subsidaries in development stage | (2,752) | (4,527) | (1,775) | 64.5% |
Total retained earnings | 341,143 | 412,472 | 71,329 | 20.9% |
Total shareholder´s equity | 4,483,786 | 4,440,729 | (43,057) | (1.0%) |
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY | 19,230,947 | 18,429,550 | (801,397) | (4.2%) |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 19 |
PRESS RELEASE | |
CONSOLIDATEDBALANCESHEETANALYSIS
The Company’s total assets reflect a decrease of Ch$469.562 million with respect to the same period of the previous year. This was principally due to:
A decrease of Ch$534,984 million, or 6.3% in Fixed Assets due principally to the depreciation for the year of Ch$380,000 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 nominal Dollars, in accordance with Technical Bulletin Nº 64 in the subsidiaries located in unstable countries. This is partly compensated by new incorporations amounting to Ch$266,000 million. | ||
Current Assets show an increase of Ch$55,166 million due principally to: | ||
An increase of Ch$11,640 million in cash and of Ch$105,812 million in term deposits due principally to an increase of Ch$169,679 million in deposits in Codensa, for a future reduction in capital, Ch$54,689, 15,670 and 13,451 million in Endesa Chile, Betania and Edelnor respectively, as cash surpluses, partially compensated by a reduction of Ch$81,033 million in deposits in Emgesa and of Ch$70,304 million in Enersis. | ||
An increase of Ch$34,899 million in sales debtors, mainly due to the increase in invoicing at the subsidiaries, Chilectra Ch$9,867 million, Investluz Ch$10,192 million, Emgesa Ch$3,634 million and Cerj Ch$2,619 million, amongst others, partially compensated by Cachoeira Dourada that decreased by Ch$9,545 million. | ||
An increase of Ch$33,465 million in tax recoverable, mainly in Elesur for Ch$32,599 million and Codensa for Ch$18,274 million, partially compensated by reductions of Ch$8,194 million in Enersis, Ch$3,918 million in Cerj, Ch$5,499 million in Endesa and Ch$5,096 million in Chilectra. | ||
An increase of Ch$40,558 million in other current assets, mainly as a result of higher of Ch$49,457 million in forward contracts and repro agreements, partially compensated by Ch$5,468 million in lower guarantee deposits. | ||
A reduction of Ch$130,073 million in accounts receivable from related companies, explained basically by the maturity within a year of the loan of Ch$111,486 million to Atacama Finance transferred to short term during the year 2004 and payment of part of the loan. | ||
A reduction of Ch$37,843 million in sundry debtors due mainly to the payment from OHL of Ch$39,025 million for the sale of Infraestructura 2000. | ||
Other long term assets show an increase of Ch$10,255 million, explained mainly as follows: | ||
Higher accounts receivable from related companies by Ch$ 110,996 million. Basically explained by extending for more than one year the loan granted to Atacama Finance. | ||
Decrease of positive goodwill by Ch$ 67,398 million. This corresponds to the annual average amortization by Ch$ 53,000 million. Plus, the exchabge rate effect on other several minor positive goodwill located in subsidiaries accounted in US Dollars. | ||
Decrease of Ch$89,084 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 company. | ||
Increase of Ch$43,514 million in other long term assets due to the investment in Empresa Eléctrica de Bogotá of Ch$44,670 million, higher regulatory assets in Brazil of Ch$20,092 million, compensated by ther decrease in deferred commissions and expenses on loans of Ch$22,330 million and lower effects of the valuation to a Fair Value of the derivatives of Ch$ 30,785 million. | ||
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 20 |
PRESS RELEASE | |
Total liabilities show a reduction of Ch$469,562 million with respect to the same period of the previous year. This is principally due to:
Short-term liabilitiesshow a reduction of Ch$82,554 million or 7.2% as a result of: | ||
Reduction in the short term and the short-term portion of the long-term obligations with banks of Ch$156,432 million and Ch$20,909 million respectively, as a result of prepayments of the Edesur loan for Ch$30,071 million, Coelce loan for Ch$44,264 million and of the Emgesa loan for Ch$24,426 million. | ||
Increase of Ch$40,390 million in short term bond obligations following the transfer to short term of the Edegel bonds for Ch$32,061 million and the Cerj bonds for Ch$12,488 million. | ||
Increase of Ch$48,727 million in accounts payable to related Companies, principally from Enersis to Endesa Internacional for Ch$55,523 million. | ||
Long term liabilities decreased by Ch$31,431 million or 0.8% due basically to the following: | ||
A reduction of Ch$275,560 million in bank debt resulting from payments with excess flow, or through bond refinancing. | ||
Increase of Ch$153,173 million in bond, taken to prepay debts with banks. | ||
Increase of Ch$36,853 million in other long-term liabilities, mainly in Enersis due to the Fair Value of the derivative instruments taken. | ||
Increase of Ch$39,227 million in long term deferred taxes, mainly in Endesa and Edelnor for Ch$35,683 million and Ch$11,648 million, respectively. | ||
Minority interestincreased by Ch$330,349 million due 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.
Equity decreased by Ch$25,229 million with respect to March 2004. This variation is explained principally by the reduction of Ch$66,808 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 Ch$44,948 million in retained earnings.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 21 |
PRESS RELEASE | |
FINANCIALDEBTMATURITY WITHTHIRDPARTIES,MILLIONCH$(*)
Table 7 | |||||||
TOTAL | |||||||
Million Ch$ | 2005 | 2006 | 2007 | 2008 | 2009 | Balance | |
Chile | 59,118 | 403,847 | 38,705 | 413,343 | 374,427 | 1,252,139 | 2,541,579 |
Enersis | 143 | 181,994 | 1,520 | 159,808 | 1,609 | 412,119 | 757,193 |
Chilectra | 67 | - | - | - | - | - | 67 |
Other (*) | 2,784 | - | - | - | - | - | 2,784 |
Endesa Chile (**) | 56,124 | 221,852 | 37,185 | 253,535 | 372,818 | 840,020 | 1,781,535 |
Argentina | 41,341 | 79,932 | 41,308 | 12,429 | 12,429 | 25,022 | 212,461 |
Edesur | 9,559 | 48,732 | 22,165 | - | - | - | 80,456 |
Costanera | 31,782 | 31,201 | 19,143 | 12,429 | 12,429 | 25,022 | 132,005 |
Perú | 56,650 | 88,681 | 45,673 | 23,000 | 18,901 | 19,522 | 252,427 |
Edelnor | 11,762 | 44,174 | 10,517 | 5,387 | 7,183 | 14,365 | 93,388 |
Edegel | 44,888 | 44,507 | 35,156 | 17,613 | 11,719 | 5,156 | 159,039 |
Brasil | 56,364 | 47,011 | 70,513 | 115,507 | 21,155 | 91,267 | 401,817 |
Coelce | 7,793 | 13,184 | 14,422 | 42,422 | 12,748 | 54,759 | 145,328 |
Ampla | 47,373 | 31,798 | 53,429 | 72,048 | 8,407 | 36,508 | 249,563 |
Cachoeira | 1,198 | 2,029 | 2,663 | 1,036 | - | - | 6,926 |
Colombia | 25,599 | 107,949 | 14,382 | - | 89,758 | 184,915 | 422,604 |
Codensa | 10,247 | - | - | - | 12,328 | 110,949 | 133,524 |
Emgesa | 969 | 93,567 | - | - | 77,430 | - | 171,967 |
Betania | 14,382 | 14,382 | 14,382 | - | - | 73,966 | 117,113 |
TOTAL | 239,072 | 727,420 | 210,582 | 564,279 | 516,670 | 1,572,864 | 3,830,887 |
(**)Includes: Endesa Chile Internacional, Pangue, Pehuenche, San Isidro, Celta and Tunel El Melon
FINANCIALDEBTMATURITY WITHTHIRDPARTIES,THOUSANDUS$
Table 7.1 | |||||||
TOTAL | |||||||
Thousand US$ | 2005 | 2006 | 2007 | 2008 | 2009 | Balance | |
Chile | 100,896 | 689,240 | 66,058 | 705,448 | 639,030 | 2,137,010 | 4,337,683 |
Enersis | 244 | 310,607 | 2,594 | 272,742 | 2,746 | 703,358 | 1,292,292 |
Chilectra | 115 | - | - | - | - | - | 115 |
Other (*) | 4,752 | - | - | - | - | - | 4,752 |
Endesa Chile (**) | 95,785 | 378,633 | 63,464 | 432,706 | 636,284 | 1,433,652 | 3,040,525 |
Argentina | 70,556 | 136,419 | 70,500 | 21,212 | 21,212 | 42,705 | 362,604 |
Edesur | 16,315 | 83,170 | 37,829 | - | - | - | 137,313 |
Costanera | 54,242 | 53,250 | 32,671 | 21,212 | 21,212 | 42,705 | 225,292 |
Perú | 96,684 | 151,351 | 77,950 | 39,254 | 32,259 | 33,317 | 430,814 |
Edelnor | 20,074 | 75,391 | 17,950 | 9,194 | 12,259 | 24,517 | 159,384 |
Edegel | 76,610 | 75,960 | 60,000 | 30,060 | 20,000 | 8,800 | 271,430 |
Brasil | 96,197 | 80,232 | 120,344 | 197,134 | 36,106 | 155,764 | 685,776 |
Coelce | 13,301 | 22,500 | 24,613 | 72,402 | 21,757 | 93,456 | 248,029 |
Ampla | 80,852 | 54,269 | 91,186 | 122,963 | 14,349 | 62,308 | 425,927 |
Cachoeira | 2,044 | 3,463 | 4,544 | 1,768 | - | - | 11,820 |
Colombia | 43,690 | 184,236 | 24,546 | - | 153,188 | 315,593 | 721,253 |
Codensa | 17,489 | - | - | - | 21,040 | 189,356 | 227,884 |
Emgesa | 1,654 | 159,690 | - | - | 132,149 | - | 293,493 |
Betania | 24,546 | 24,546 | 24,546 | - | - | 126,237 | 199,875 |
TOTAL | 408,022 | 1,241,479 | 359,397 | 963,048 | 881,795 | 2,684,390 | 6,538,131 |
(*) Source: Internal financial report |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 22 |
PRESS RELEASE | |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 23 |
PRESS RELEASE | |
Cont. Table 8 | ||||
Million Ch$ | 1Q 04 | 1Q 05 | Var 05-04 | Chg % |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of shares issued to minorities | - | - | - | - |
Proceeds from debt issuance | 233,531 | 106,595 | (126,936) | (54.4%) |
Proceeds from bond issuance | 140,985 | 149,487 | 8,502 | 6.0% |
Proceeds from loans obtained from related companies | - | - | - | - |
Proceeds from other loans obtained from related companies | - | - | - | - |
Other sources of financing | 15,644 | 1,139 | (14,505) | (92.7%) |
Capital paid | - | (51,965) | (51,965) | - |
Dividends paid | (18,225) | (95) | 18,130 | 99.5% |
Payment of debt | (370,751) | (245,192) | 125,559 | 33.9% |
Payment of bonds | (11,074) | (32,495) | (21,421) | (193.4%) |
Payments of loans obtained from related companies | - | - | - | - |
Payments of other loans obtained from related companies | - | - | - | - |
Payments of shares issuance costs | - | - | - | - |
Payments of bonds issuance costs | (378) | (994) | (616) | (162.9%) |
Other disbursements for financing | (5,655) | (5,095) | 560 | 9.9% |
NET CASH FLOW FROM FINANCING ACTIVITIES | (15,923) | (78,615) | (62,692) | - |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from sale of property, plant and equipment | 357 | 1,119 | 762 | - |
Sale of investment | 2,538 | - | (2,538) | (100.0%) |
Other loans received from related companies | 6,255 | 27 | (6,228) | (99.6%) |
Other receipts from investments | 185 | 139 | (46) | (24.8%) |
Additions to property, plant and equipment | (57,776) | (56,888) | 888 | 1.5% |
Long-term investments | - | - | - | - |
Investment in financing instruments | - | - | - | - |
Other loans granted to related companies | - | - | - | - |
Other investment disbursements | (1,092) | (658) | 434 | 39.7% |
NET CASH FLOW FROM INVESTMENT ACTIVITIES | (49,533) | (56,262) | (6,729) | (13.6%) |
NET CASH FLOW FOR THE PERIOD | 89,258 | 23,641 | (65,617) | (73.5%) |
EFFECT OF PRICE-LEVEL RESTATEMENT ON CASH AND CASH EQUIVALENT | 12,931 | 34,288 | 21,357 | 165.2% |
NET VARIATION ON CASH AND CASH EQUIVALENT | 102,189 | 57,929 | (44,260) | (43.3%) |
CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE YEAR | 336,591 | 542,859 | 206,268 | 61.3% |
CASH AND CASH EQUIVALENT AT THE END OF THE YEAR | 438,780 | 600,789 | 162,009 | 36.9% |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 24 |
PRESS RELEASE | |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 25 |
PRESS RELEASE | |
Cont. Table 8.1 | ||||
Thousand US$ | 1Q 04 | 1Q 05 | Var 05-04 | Chg % |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of shares issued to minorities | - | - | - | - |
Proceeds from debt issuance | 398,565 | 181,925 | (216,640) | (54.4%) |
Proceeds from bond issuance | 240,617 | 255,128 | 14,511 | 6.0% |
Proceeds from loans obtained from related companies | - | - | - | - |
Proceeds from other loans obtained from related companies | - | - | - | - |
Other sources of financing | 26,699 | 1,943 | (24,756) | (92.7%) |
Capital paid | - | (88,688) | (88,688) | - |
Dividends paid | (31,104) | (162) | 30,942 | 99.5% |
Payment of debt | (632,756) | (418,467) | 214,289 | 33.9% |
Payment of bonds | (18,900) | (55,459) | (36,559) | (193.4%) |
Payments of loans obtained from related companies | - | - | - | - |
Payments of other loans obtained from related companies | - | - | - | - |
Payments of shares issuance costs | - | - | - | - |
Payments of bonds issuance costs | (645) | (1,696) | (1,051) | (162.9%) |
Other disbursements for financing | (9,651) | (8,696) | 955 | 9.9% |
NET CASH FLOW FROM FINANCING ACTIVITIES | (27,176) | (134,172) | (106,996) | - |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from sale of property, plant and equipment | 609 | 1,910 | 1,301 | - |
Sale of investment | 4,332 | - | (4,332) | (100.0%) |
Other loans received from related companies | 10,675 | 46 | (10,629) | (99.6%) |
Other receipts from investments | 316 | 237 | (79) | (24.8%) |
Additions to property, plant and equipment | (98,606) | (97,091) | 1,515 | 1.5% |
Long-term investments | - | - | - | - |
Investment in financing instruments | - | - | - | - |
Other loans granted to related companies | - | - | - | - |
Other investment disbursements | (1,864) | (1,123) | 741 | 39.7% |
NET CASH FLOW FROM INVESTMENT ACTIVITIES | (84,537) | (96,022) | (11,485) | (13.6%) |
NET CASH FLOW FOR THE PERIOD | 152,336 | 40,347 | (111,989) | (73.5%) |
EFFECT OF PRICE-LEVEL RESTATEMENT ON CASH AND CASH EQUIVALENT | 22,069 | 58,519 | 36,450 | 165.2% |
NET VARIATION ON CASH AND CASH EQUIVALENT | 174,405 | 98,867 | (75,538) | (43.3%) |
CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE YEAR | 574,456 | 926,492 | 352,036 | 61.3% |
CASH AND CASH EQUIVALENT AT THE END OF THE YEAR | 748,861 | 1,025,359 | 276,498 | 36.9% |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 26 |
PRESS RELEASE | |
CONSOLIDATEDCASHFLOWANALYSIS
During the period, the Company generated net cash flows of Ch$23,641 million, comprised of the following activities:
Table 9 | ||||
Effective Cash Flow (million Ch$) | 1Q 04 | 1Q 05 | Var 05-04 | Chg % |
Operating | 154,714 | 158,518 | 3,804 | 2.5% |
Financing | (15,923) | (78,615) | (62,692) | (393.7%) |
Investment | (49,533) | (56,262) | (6,729) | 13.6% |
Net cash flow of the period | 89,258 | 23,641 | (65,617) | (73.5%) |
Table 9.1 | ||||
Effective Cash Flow (thousand US$) | 1Q 04 | 1Q 05 | Var 05-04 | Chg % |
Operating | 264,049 | 270,541 | 6,492 | 2.5% |
Financing | (27,176) | (134,172) | (106,996) | (393.7%) |
Investment | (84,538) | (96,022) | (11,484) | 13.6% |
Net cash flow of the period | 152,335 | 40,347 | (111,988) | (73.5%) |
Operating activities generated a net positive cash flow of Ch$158,518 million, an increase of Ch$3,804 million with respect to that obtained as of the same date of the previous year. As of March 2005, the operating cash flow is comprised mainly of:
The profit for the period amounting to Ch$7,716 million, plus: | ||
Charges of Ch$141,624 million to the income statement that do not represent cash flow and correspond mainly to the Depreciation for the period for Ch$101,694 million, write-offs and provisions for Ch$7.288 million, amortizations of positive goodwill of Ch$13,307 million, the other charges that do not represent cash flow for Ch$15,630 million among which is the negative effect of the conversion of the overseas branches to the Technical Bulletin for Ch$1,306 million and, | ||
The variation of net liabilities that affect the cash flow by Ch$223 million. | ||
The above was partly compensated by: | ||
Increase in net liabilities that affect the operating cash flow of Ch$9,259 million, credits for Ch$16,833 million that do not represent cash flows, of which Ch$366 million correspond to the positive effect of the conversion of the overseas branches. | ||
Profit on sales of assets of Ch$267 million. | ||
Financingactivities produced a negative cash flow of Ch$78,615 million due mainly to the payment of loans for a value of Ch$245,192 million, payments to the public for Ch$32,495 million and division of capital of subsidiaries for Ch$51,965. The above is partly compensated by the receipt of loans for Ch$106,595 million, bond issues for Ch$149,487 million and other sources of financing for Ch$1,139 million.
Investment activitiesgenerated a net negative cash flow of Ch$56,261 million that correspond mainly to the incorporation of fixed assets for Ch$56,888 million and other payments for Ch$658 million partially compensated by the sale of fixed assets for Ch$1,119 million.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 27 |
PRESS RELEASE | |
Cash Flow Received From Foreign Subsidiaries by Enersis, Chilectra and Endesa Chile (*)
Table 10 | ||||||||
Millions Ch$ | Interest Received | Dividends Received | Management Fee | Prepayment intercompany | ||||
1Q 04 | 1Q 05 | 1Q 04 | 1Q 05 | 1Q 04 | 1Q 05 | 1Q 04 | 1Q 05 | |
Argentina | 1.846 | 1.569 | - | - | 1.458 | 956 | 11.723 | - |
Peru | - | - | - | - | - | - | - | - |
Brazil | - | - | - | 14.711 | - | - | - | - |
Colombia | 8.786 | - | 6.677 | - | - | - | - | - |
Chile | - | - | - | - | - | - | - | - |
Total | 10.632 | 1.569 | 6.677 | 14.711 | 1.458 | 956 | 11.723 | - |
Millions Ch$ | Total Cash Received | |||||||||
1Q 04 | 1Q 05 | |||||||||
Argentina | 15.028 | 2.524 | ||||||||
Peru | - | - | ||||||||
Brazil | - | 14.711 | ||||||||
Colombia | 15.463 | - | ||||||||
Chile | - | - | ||||||||
Total | 30.491 | 17.235 | ||||||||
Table 10.1 | ||||||||||
Thousand US$ | Interest Received | Dividends Received | Management Fee | Prepayment Intercompany | Others | |||||
1Q 04 | 1Q 05 | 1Q 04 | 1Q 05 | 1Q 04 | 1Q 05 | 1Q 04 | 1Q 05 | 1Q 04 | 1Q 05 | |
Argentina | 3,151 | 2,677 | - | - | 2,489 | 1,631 | 20,008 | - | - | - |
Peru | - | - | - | - | - | - | - | - | - | - |
Brazil | - | - | - | 25,107 | - | - | - | - | - | - |
Colombia | 14,994 | - | 11,395 | - | - | - | - | - | - | - |
Chile | - | - | - | - | - | - | - | - | - | - |
Total | 18,146 | 2,677 | 11,395 | 25,107 | 2,489 | 1,631 | 20,008 | - | - | - |
Thousand US$ | Total Cash Received | |||||||||
1Q 04 | 1Q 05 | |||||||||
Argentina | 25,648 | 4,308 | ||||||||
Peru | - | - | ||||||||
Brazil | - | 25,107 | ||||||||
Colombia | 26,390 | - | ||||||||
Chile | - | - | ||||||||
Total | 52,038 | 29,415 | ||||||||
(*) Source: Internal financial report |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 28 |
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www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 29 |
PRESS RELEASE | |
ANALYSISOFTHEEXCHANGERISKANDTHEINTERESTRATE
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 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 March 2005, on a consolidated basis, the company has hedged in Chile, by means of USD/UF Swap operations, an amount of USCh$700 million and USCh$140 million in forwards contracts, compared to USCh$40 million in forward contracts as of the same date of the previous year. This variation is principally due to the modification of the hedging policy mentioned above.
With regard to interest rate risks, on a consolidated basis, the company has a fixed rate/variable rate ratio of approximately 84.5% / 15.5% fixed / variable as of March, 2005. The percentage of debt at a fixed rate has fallen slightly if compared with the 84.6% / 15.4% ratio as of the same date of the previous year due to the low level of market interest rates that have permitted the company to borrow at more attractive interest rates.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 30 |
PRESS RELEASE | |
GENERATIONBUSINESS | |||||
Table 12 | |||||
Million US$ | Million Ch$ | ||||
1Q 04 | 1Q 05 | 1Q 04 | 1Q 05 | Chg % | |
Operating Revenues | 424 | 486 | 248,683 | 284,866 | 14.6% |
Operating Costs | (253) | (288) | (148,478) | (168,874) | (13.7%) |
Selling and Administrative Expenses | (15) | (17) | (8,502) | (9,898) | (16.4%) |
Operating Income | 157 | 181 | 91,703 | 106,094 | 15.7% |
Interest Income | 7 | 10 | 4,003 | 5,821 | 45.4% |
Interest Expenses | (89) | (88) | (52,322) | (51,494) | 1.6% |
Net Financial Income (Expenses) | (82) | (78) | (48,319) | (45,673) | 5.5% |
Equity Gains from Related Company | 11 | 10 | 6,602 | 5,895 | (10.7%) |
Equity Losses from Related Company | (0) | (0) | (13) | (25) | 87.4% |
Net Income from Related Companies | 11 | 10 | 6,589 | 5,871 | (10.9%) |
Other Non Operating Income | 11 | 22 | 6,240 | 13,040 | 109.0% |
Other Non Operating Expenses | (32) | (34) | (18,595) | (20,206) | (8.7%) |
Net other Non Operating Income (Expenses) | (21) | (12) | (12,355) | (7,166) | 42.0% |
Price Level Restatement | (1) | (3) | (347) | (1,882) | - |
Foreign Exchange Effect | (0) | (8) | (146) | (4,599) | - |
Net of Monetary Exposure | (1) | (11) | (493) | (6,481) | - |
Positive Goodwill Amortization | (1) | (1) | (407) | (382) | 6.1% |
Non Operating Income | (94) | (92) | (54,985) | (53,831) | 2.1% |
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 63 | 89 | 36,718 | 52,263 | 42.3% |
Extraordinary Items | - | - | - | - | - |
Income Tax | (47) | (43) | (27,557) | (25,321) | 8.1% |
Minority Interest | (9) | (26) | (5,347) | (15,211) | (184.5%) |
Negative Goodwill Amortization | 8 | 7 | 4,396 | 4,343 | (1.2%) |
NET INCOME | 14 | 27 | 8,210 | 16,073 | 95.8% |
NETINCOME |
Endesa Chile recorded a Net Income of Ch$16,073 million which is Ch$7,863 million higher than the previous year. This is mainly explained by:
OPERATINGINCOME |
Operating income in the first quarter of 2005 of Ch$106,094 million is 15.7% more than the Ch$91,703 million obtained in the same period of 2004. This is the result of an increase of Ch$15,472 million in operating income in Chile and in our subsidiaries in Argentina, Brazil and Colombia, partly offset by a reduction of USCh$1,081 million in Peru.
Analyzed by item, consolidated sales to March 2005 increased by 14.6%, the equivalent of Ch$36,183 million, while variable fuel costs increased by Ch$13,721 million, purchases of energy, tolls and energy transportation and other variable costs grew by Ch$3,480 million and depreciation, amortization and other fixed costs increased by USCh$3,195 million. Administrative and selling expenses increased by Ch$1,396 million.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 31 |
PRESS RELEASE | |
In Chile, operating income for the first quarter amounted to Ch$37,832 million, an increase of 11.2 % over the same period of 2004, due to a 12.3% increase in sales and a 13.7% increase in cost of sales and a 2.6% reduction in administrative and selling expenses. The sales increase of Ch$13,572 million was the result of a 7.2% increase in volume, mainly sales on the spot market where the company’s average sales price increased due to the natural gas shortage. The increase of Ch$9,870 million in the cost of sales consisted of a 59.7% rise in fuel costs, energy purchases and other variable costs of Ch$7,726 million and of Ch$3,895 million in higher depreciation, amortization and other fixed costs, which were partly offset by lower tolls of Ch$1,751 million and lower administrative and selling expenses of Ch$116 million.
In Argentina, operating income in the quarter was Ch$13,580 million, an increase of 45.2% compared to the first quarter of 2004 when it was Ch$ 9,350 million. The improved result in Argentina was mainly due to higher sales volumes and firmer average sales prices, mainly on the spot market. The operating income of Central Costanera improved by Ch$1,815 million to Ch$11,475 million as a result of higher energy sales placed on the spot market. The low energy prices in the south of Brazil, following the good hydrology in that zone, meant only slight calls on the CIEN interconnection line during the first quarter, but demand calls were made beginning on March 19 which are forcing Costanera to supply energy with oil production, adversely affecting the company’s results. Costanera shows revenues in the quarter from sales of capacity for the interconnection in accordance e current contracts.
The operating income of El Chocón increased by Ch$2,415 million as a result of the hydrology in the Comahue zone and the above-mentioned improved spot prices.In Brazil, Cachoeira Dourada showed an operating income of Ch$3,630 million for the first quarter of 2005 compared to a loss of Ch$220 million in the same period of 2004. Due to the better hydrology in the South-East Center zone, there was a better production mix with 224 Gwh of increased generation and less purchases. Sales increased by 74%, equivalent to Ch$5,198 million, which included the higher prices. It should be mentioned that Cachoeira Dourada obtained contracts for 133 MW in April in the last tender for supplying electricity companies in South-East of Brazil. These contracts cover a period of 8 years from 2008 at a reference price of 83.48 reals per MWh, higher than earlier Brazilian tenders.
In Colombia, operating income for the first quarter increased by 11.9% to Ch$33,689 million due to better results from Emgesa and Betania. Energy sales increased by 8%, mainly reflecting firmer average energy sale prices and good hydrology in general, even though the north-east zone that affects Emgesa has suffered a fall in hydrology in March, compensated by higher hydrology that affects Betania. This has also permitted a reduction in the costs of energy purchases compared to the first quarter of 2004.
In Peru, the operating income of Edegel in the quarter declined by 5.9% to Ch$17,364 million, explained by lower sales of Ch$2,743 million as a result of reduced sales prices deriving from better hydrology in the country, partly offset by lower fuel and energy purchases, and higher tolls and transportation costs. This all led to a Ch$1,081 million reduction in operating income compared to the first quarter of 2004.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 32 |
PRESS RELEASE | |
NONOPERATINGINCOME
Endesa Chile recorded a Non operating Loss of Ch$53,831 million which is Ch$1,153 million lower than the previous year.
Table 13 | ||||||||
Country | Market | GWh Sold | Var 05-04 | Chg % | Market Share (*) | |||
1Q 04 | 1Q 05 | 1Q 04 | 1Q 05 | |||||
Chile | SIC & SING | 4,315 | 4,624 | 309 | 7.2% | 38.6% | 38.3% | |
SIC | 4,095 | 4,388 | 293 | 7.2% | 47.9% | 48.1% | ||
SING | 220 | 236 | 16 | 7.3% | 8.3% | 8.0% | ||
Argentina | SIN | 2,756 | 3,362 | 606 | 22.0% | 13.1% | 15.4% | |
Chocón | 604 | 730 | 127 | 20.9% | 2.9% | 3.3% | ||
Costanera | 2,152 | 2,631 | 480 | 22.3% | 10.3% | 12.1% | ||
Perú | SICN | 1,196 | 1,263 | 67 | 5.6% | 26.2% | 26.5% | |
Edegel | 1,196 | 1,263 | 67 | 5.6% | ||||
Colombia | SIN | 3,672 | 3,463 | (209) | (5.7%) | 22.9% | 20.2% | |
Betania | 330 | 515 | 185 | 56.1% | 2.1% | 3.0% | ||
Emgesa | 3,341 | 2,948 | (393) | (11.8%) | 20.8% | 17.2% | ||
Brazil | SICN | 903 | 944 | 40 | 4.5% | 1.1% | 1.1% | |
Cachoeira | 903 | 944 | 40 | 4.5% | ||||
Total | 12,842 | 13,656 | 814 | 6.3% | ||||
(*) Respect to GWh sold |
Table 14 | ||||
Company | GWh Produced | Var 05-04 | Chg % | |
1Q 04 | 1Q 05 | |||
Chilean Companies | 3,953 | 4,301 | 348 | 8.8% |
Chocón | 572 | 673 | 101 | 17.7% |
Costanera | 2,140 | 2,631 | 491 | 23.0% |
Edegel | 1,175 | 1,239 | 64 | 5.5% |
Betania | 268 | 444 | 175 | 65.3% |
Emgesa | 2,566 | 2,411 | (154) | (6.0%) |
Cachoeira | 708 | 931 | 224 | 31.6% |
TOTAL | 11,381 | 12,631 | 1,249 | 11.0% |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 33 |
PRESS RELEASE | |
DISTRIBUTIONBUSINESS | |||||
Table 15 | |||||
Distribution Business | 1Q 04 | 1Q 05 | Var 05-04 | Chg % | |
Customers (Th) | 10,551 | 10,962 | 411 | 3.9% | |
GWh Sold | 12,948 | 13,493 | 545 | 4.2% | |
Clients/Employe | 1,466 | 1,525 | 59 | 4.0% | |
Energy Losses % (TTM) | 12.1% | 11.9% | (0.2%) | (1.6%) | |
HIGHLIGHTS |
InChile, physical sales in our concession area increased by 3.8% YoY in the first quarter 2005 and the energy losses are stabilized in 5.2% YoY (TAM).
InBrazil, Coelce’s physicals sales increased by 11.4% YoY in the first quarter 2005. The energy losses were 14% YoY (TAM); Coelce is developing a losses recovery plan that includes aDAT network, better measures against theft and through inspections.
The YoY billing increased to 100%.
Ampla’s physicals sales increased by 5.7% .
The energy losses decreased form 23.6% YoY (TAM) in the first quarter 2004 to 22.9% YoY (TAM) in the first quarter 2005 and the YoY billing increased to 98%, both due mainly to theDAT network.
On February 2005 Ampla issued debentures in local currency by Brl$ 400 million with 3 and 5-year maturities. The high demand for these debentures allowed to decrease the spreads.
InColombia, the energy demand in our concession area increased by 1.2% YoY and the energy losses decreased from 10.2% YoY (TAM) in the first quarter 2004 to 9.8% YoY (TAM) in the first quarter 2005.
InArgentina, physical sales in our concession area increased by 2.2% YoY.
In spite of the economic situation, the billing and the energy losses are maintained at fair levels.
InPeru, physical sales in our concession area increased by 5.9% YoY.
Edelnor subscribed a contract with energy generators to ensure the supply until 2007; this reduces the risk of buying in the spot market at higher prices.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 34 |
PRESS RELEASE | |
CHILECTRA(UNDERCHILEANGAAP) | |||||
Table 16 | |||||
Million US$ | Million Ch$ | ||||
1Q 04 | 1Q 05 | 1Q 04 | 1Q 05 | Chg % | |
Revenues from Sales | 172 | 191 | 100.835 | 112.050 | 11,1% |
Other Operating Revenues | 9 | 9 | 5.526 | 5.531 | 0,1% |
Operating Revenues | 182 | 201 | 106.361 | 117.581 | 10,5% |
Energy Purchases | (111) | (131) | (64.931) | (76.467) | (17,8%) |
Other Operating Cost | (18) | (20) | (10.495) | (11.812) | (12,5%) |
Operating Costs | (129) | (151) | (75.426) | (88.279) | (17,0%) |
Selling and Administrative Expenses | (15) | (13) | (8.608) | (7.406) | 14,0% |
Operating Income | 38 | 37 | 22.327 | 21.896 | (1,9%) |
Interest Income | 1 | 1 | 558 | 344 | (38,3%) |
Interest Expenses | (16) | (13) | (9.183) | (7.651) | 16,7% |
Net Financial Income (Expenses) | (15) | (12) | (8.625) | (7.306) | 15,3% |
Equity Gains from Related Company | 3 | 4 | 1.626 | 2.137 | 31,4% |
Equity Losses from Related Company | (6) | (4) | (3.360) | (2.613) | 22,2% |
Net Income from Related Companies | (3) | (1) | (1.734) | (477) | 72,5% |
Other Non Operating Income | 10 | 8 | 6.018 | 4.915 | (18,3%) |
Other Non Operating Expenses | (3) | (3) | (1.849) | (1.527) | 17,4% |
Conversion Effect (BT 64) | - | - | - | - | |
Net other Non Operating Income (Expenses) | 7 | 6 | 4.169 | 3.388 | (18,7%) |
Price Level Restatement | (4) | (8) | (2.523) | (4.440) | (76,0%) |
Foreign Exchange Effect | - | - | - | - | |
Net of Monetary Exposure | (4) | (8) | (2.523) | (4.440) | (76,0%) |
Positive Goodwill Amortization | (0) | (0) | (88) | (155) | (76,5%) |
Non Operating Income | (15) | (15) | (8.801) | (8.991) | (2,2%) |
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 23 | 22 | 13.526 | 12.905 | (4,6%) |
Extraordinary Items | - | - | - | - | |
Income Tax | (6) | (9) | (3.521) | (5.233) | (48,6%) |
Minority Interest | 2 | 2 | 961 | 1.175 | 22,3% |
Negative Goodwill Amortization | 0 | - | 20 | - | (100,0%) |
NET INCOME | 19 | 15 | 10.986 | 8.847 | (19,5%) |
NETINCOME |
Chilectra registered a net income of Ch$8,847 million, which is Ch$2,139 million lower than the previous year. This result is mainly explained by:
OPERATINGINCOME |
Lower operating income of Ch$431 million, due to higher operating costs of Ch$12,853, partially compensated by higher operating revenues of Ch$11,220 million.
NONOPERATINGINCOME |
Higher non-operating loss of Ch$189 million, due to lower net other non operating income of Ch$781 million and higher net of monetary exposure loss of Ch$1,917 million, compensated by lower net financial expenses of Ch$1,319 million.
OTHER |
Tax loss increased Ch$1,712 million compared to the previous year.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 35 |
PRESS RELEASE | |
ADDITIONALINFORMATION | |||
Table 17 | |||
Chilectra | 1Q 04 | 1Q 05 | Chg % |
Customers (Th) | 1.347 | 1.380 | 2,4% |
GWh Sold | 2.721 | 2.823 | 3,8% |
Clients/Employee | 1.990 | 1.991 | 0,0% |
Energy Losses % (TTM) | 5,5% | 5,2% | 0,3% |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 36 |
PRESS RELEASE | |
CERJ(UNDERCHILEANGAAP *) | |||||
Table 18 | |||||
Million US$ | Million Ch$ | ||||
1Q 04 | 1Q 05 | 1Q 04 | 1Q 05 | Chg % | |
Revenues from Sales | 174 | 210 | 101,765 | 122,955 | 20.8% |
Other Operating Revenues | 7 | 10 | 4,235 | 5,996 | 41.6% |
Operating Revenues | 181 | 220 | 106,001 | 128,950 | 21.7% |
Energy Purchases | (96) | (109) | (56,041) | (63,910) | (14.0%) |
Other Operating Cost | (53) | (66) | (31,310) | (38,946) | (24.4%) |
Operating Costs | (149) | (176) | (87,351) | (102,857) | (17.8%) |
Selling and Administrative Expenses | (8) | (9) | (4,560) | (5,122) | (12.3%) |
Operating Income | 24 | 36 | 14,089 | 20,971 | 48.8% |
Interest Income | 6 | 10 | 3,356 | 5,568 | 65.9% |
Interest Expenses | (16) | (32) | (9,308) | (18,469) | (98.4%) |
Net Financial Income (Expenses) | (10) | (22) | (5,952) | (12,901) | (116.8%) |
Equity Gains from Related Company | - | 1 | - | 606 | |
Equity Losses from Related Company | (1) | - | (357) | - | 100.0% |
Net Income from Related Companies | (1) | 1 | (357) | 606 | - |
Other Non Operating Income | 1 | 0 | 464 | 265 | (43.0%) |
Other Non Operating Expenses | (21) | (12) | (12,192) | (7,301) | 40.1% |
Conversion Effect (BT 64) | (1) | (1) | (341) | (580) | (69.9%) |
Net other Non Operating Income (Expenses) | (21) | (13) | (12,069) | (7,616) | 36.9% |
Price Level Restatement | - | - | - | - | |
Foreign Exchange Effect | - | - | - | - | |
Net of Monetary Exposure | - | - | - | - | |
Positive Goodwill Amortization | - | - | - | - | |
Non Operating Income | (31) | (34) | (18,378) | (19,911) | (8.3%) |
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | (7) | 2 | (4,289) | 1,060 | 124.7% |
Extraordinary Items | - | - | - | - | |
Income Tax | (1) | (5) | (482) | (3,006) | - |
Minority Interest | - | - | - | - | |
Negative Goodwill Amortization | - | - | - | - | |
NET INCOME | (8) | (3) | (4,772) | (1,945) | 59.2% |
* Please take note that these figures could differed from those accounted under Brazilian GAAP. |
Cerj registered a net loss of Ch$1,945 million which is Ch$2,827 million lower loss than the previous year. This result is mainly due to:
OPERATINGINCOME |
Higher operating income of Ch$6,882 million, mainly explained by higher revenues from sales of Ch$21,190 million. This was partially compensated by higher operating costs of Ch$15,506 million.
NONOPERATINGINCOME |
Higher non operating loss of Ch$1,533 million, mainly explained by higher net financial expenses of Ch$6,949 million, due to higher interest expenses of Ch$9,161 million and lower interest income of Ch$2,212 million. This is partially compensated by lower net other non operating expenses of Ch$4,453 million.
OTHER |
Tax loss increase Ch$2,524 million compared to the previous year.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 37 |
PRESS RELEASE | |
ADDITIONALINFORMATION | |||
Table 19 | |||
Cerj | 1Q 04 | 1Q 05 | Chg % |
Customers (Th) | 2,033 | 2,141 | 5.3% |
GWh Sold | 1,951 | 2,063 | 5.7% |
Clients/Employee | 1,359 | 1,478 | 8.8% |
Energy Losses % (TTM) | 23.6% | 22.9% | 0.7% |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 38 |
PRESS RELEASE | |
COELCE(UNDERCHILEANGAAP*) | |||||
Table 20 | |||||
Million US$ | Million Ch$ | ||||
1Q 04 | 1Q 05 | 1Q 04 | 1Q 05 | Chg % | |
Revenues from Sales | 122 | 121 | 71,752 | 70,681 | (1.5%) |
Other Operating Revenues | 2 | 2 | 1,076 | 1,012 | (6.0%) |
Operating Revenues | 124 | 122 | 72,828 | 71,693 | (1.6%) |
Energy Purchases | (72) | (57) | (42,381) | (33,558) | 20.8% |
Other Operating Cost | (32) | (34) | (18,492) | (19,999) | (8.2%) |
Operating Costs | (104) | (91) | (60,873) | (53,558) | 12.0% |
Selling and Administrative Expenses | (15) | (16) | (8,704) | (9,156) | (5.2%) |
Operating Income | 6 | 15 | 3,251 | 8,979 | 176.2% |
Interest Income | 9 | 9 | 5,300 | 5,057 | (4.6%) |
Interest Expenses | (13) | (11) | (7,525) | (6,688) | 11.1% |
Net Financial Income (Expenses) | (4) | (3) | (2,225) | (1,631) | 26.7% |
Equity Gains from Related Company | - | - | - | - | |
Equity Losses from Related Company | - | - | - | - | |
Net Income from Related Companies | - | - | - | - | |
Other Non Operating Income | 0 | 0 | 61 | 171 | 182.2% |
Other Non Operating Expenses | (1) | (2) | (559) | (1,344) | (140.3%) |
Conversion Effect (BT 64) | (7) | 0 | (3,920) | 91 | 102.3% |
Net other Non Operating Income (Expenses) | (8) | (2) | (4,418) | (1,082) | 75.5% |
Price Level Restatement | - | - | - | - | |
Foreign Exchange Effect | - | - | - | - | |
Net of Monetary Exposure | - | - | - | - | |
Positive Goodwill Amortization | - | - | - | - | |
Non Operating Income | (11) | (5) | (6,644) | (2,713) | 59.2% |
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | (6) | 11 | (3,393) | 6,266 | - |
Extraordinary Items | - | - | - | - | |
Income Tax | (2) | (5) | (1,355) | (3,028) | (123.4%) |
Minority Interest | - | - | - | - | |
Negative Goodwill Amortization | - | - | - | - | |
NET INCOME | (8) | 6 | (4,748) | 3,238 | 168.2% |
* Please take note that these figures could differed from those accounted under Brazilian GAAP. |
NETINCOME |
Coelce registered net income of Ch$3,238 million which is Ch$7,986 million higher than the Ch$4,748 million net loss the previous year. This result is mainly due to:
OPERATINGINCOME |
Higher operating income of Ch$5,728 million, mainly due to lower operating costs of Ch$7,315 million. This decrease in costs was partially offset by lower operating revenues of Ch$1,135 million related by lower revenues from sales.
NONOPERATINGINCOME |
Lower Non Operating Loss of Ch$3,931 million, mainly explained by lower net financial expenses of Ch$594 million and better conversion effect of Ch$4,011 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 increase by Ch$1,673 million compared to the previous year.
ADDITIONALINFORMATION
Table 21 | |||
Coelce | 1Q 04 | 1Q 05 | Chg % |
Customers (Th) | 2,170 | 2,357 | 8.6% |
GWh Sold | 1,439 | 1,603 | 11.4% |
Clients/Employee | 1,589 | 1,759 | 10.6% |
Energy Losses % (TTM) | 13.6% | 14.0% | (0.5%) |
Coelce Financial Debt Maturity (with third party) |
US$ 248 million |
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www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 40 |
PRESS RELEASE | |
CODENSA(UNDERCHILEANGAAP*)
Table 22 | |||||
Million US$ | Million Ch$ | ||||
1Q 04 | 1Q 05 | 1Q 04 | 1Q 05 | Chg % | |
Revenues from Sales | 128 | 141 | 74,759 | 82,398 | 10.2% |
Other Operating Revenues | 39 | 41 | 23,137 | 23,800 | 2.9% |
Operating Revenues | 167 | 181 | 97,896 | 106,198 | 8.5% |
Energy Purchases | (78) | (83) | (45,574) | (48,495) | (6.4%) |
Other Operating Cost | (45) | (49) | (26,633) | (28,986) | (8.8%) |
Operating Costs | (123) | (132) | (72,207) | (77,481) | (7.3%) |
Selling and Administrative Expenses | (4) | (5) | (2,412) | (2,743) | (13.7%) |
Operating Income | 40 | 44 | 23,277 | 25,974 | 11.6% |
Interest Income | 7 | 10 | 4,309 | 5,647 | 31.1% |
Interest Expenses | (5) | (6) | (2,863) | (3,571) | (24.7%) |
Net Financial Income (Expenses) | 2 | 4 | 1,446 | 2,077 | 43.6% |
Equity Gains from Related Company | - | - | - | - | |
Equity Losses from Related Company | - | - | - | - | |
Net Income from Related Companies | - | - | - | - | |
Other Non Operating Income | 1 | 0 | 298 | 223 | (25.3%) |
Other Non Operating Expenses | (5) | (8) | (2,965) | (4,509) | (52.1%) |
Conversion Effect (BT 64) | 0 | (2) | 12 | (931) | - |
Net other Non Operating Income (Expenses) | (5) | (9) | (2,655) | (5,217) | (96.5%) |
Price Level Restatement | - | - | - | - | |
Foreign Exchange Effect | - | - | - | - | |
Net of Monetary Exposure | - | - | - | - | |
Positive Goodwill Amortization | - | - | - | - | |
Non Operating Income | (2) | (5) | (1,209) | (3,140) | (159.8%) |
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 38 | 39 | 22,068 | 22,834 | 3.5% |
Extraordinary Items | - | - | - | - | |
Income Tax | (17) | (14) | (9,704) | (8,432) | 13.1% |
Minority Interest | - | - | - | - | |
Negative Goodwill Amortization | - | - | - | - | |
NET INCOME | 21 | 25 | 12,364 | 14,402 | 16.5% |
NETINCOME
Codensa registered net income of Ch$14,402 million which is Ch$2,010 million higher than the previous year. This result is mainly due to:
OPERATINGINCOME
Higher operating income of Ch$2,697 million, primarily explained by higher energy sales of Ch$7,639 million. This is partially compensated by higher operating costs of Ch$5,993 due to higher energy purchases.
NONOPERATINGINCOME
Higher non-operating loss of Ch$1,931 million, primarily explained by higher net other non operating expenses of Ch$2,562 million, related to the negative conversion effect registered as a result of the application of Technical Bulletin N°64 of Chilean GAAP of Ch$943 million and higher other non operating expenses of Ch$1,544.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg.41 |
PRESS RELEASE | |
OTHER
Tax loss decrease by Ch$1,272 million or 13.1% compared to the previous year.
ADDITIONALINFORMATION
Table 23
Codensa | 1Q 04 | 1Q 05 | Chg % |
Customers (Th) | 1.983 | 2.026 | 2,2% |
GWh Sold | 2.357 | 2.386 | 1,2% |
Clients/Employee | 2.314 | 2.274 | (1,7%) |
Energy Losses % (TTM) | 10,2% | 9,8% | 0,4% |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg.42 |
PRESS RELEASE | |
EDELNOR(UNDERCHILEANGAAP*)
Table 24 | |||||
Million US$ | Million Ch$ | ||||
1Q 04 | 1Q 05 | 1Q 04 | 1Q 05 | Chg % | |
Revenues from Sales | 79 | 92 | 46,339 | 53,613 | 15.7% |
Other Operating Revenues | 2 | 2 | 1,457 | 943 | (35.3%) |
Operating Revenues | 82 | 93 | 47,796 | 54,556 | 14.1% |
Energy Purchases | (51) | (59) | (29,622) | (34,658) | (17.0%) |
Other Operating Cost | (10) | (11) | (5,954) | (6,472) | (8.7%) |
Operating Costs | (61) | (70) | (35,576) | (41,129) | (15.6%) |
Selling and Administrative Expenses | (7) | (9) | (4,179) | (4,998) | (19.6%) |
Operating Income | 14 | 14 | 8,041 | 8,429 | 4.8% |
Interest Income | 1 | 1 | 455 | 562 | 23.5% |
Interest Expenses | (4) | (3) | (2,181) | (1,488) | 31.8% |
Net Financial Income (Expenses) | (3) | (2) | (1,726) | (926) | 46.3% |
Equity Gains from Related Company | - | - | - | - | |
Equity Losses from Related Company | - | - | - | - | |
Net Income from Related Companies | - | - | - | - | |
Other Non Operating Income | 1 | 1 | 710 | 606 | (14.8%) |
Other Non Operating Expenses | (0) | (3) | (83) | (1,741) | - |
Conversion Effect (BT 64) | 0 | (1) | 38 | (570) | - |
Net other Non Operating Income (Expenses) | 1 | (3) | 665 | (1,705) | - |
Price Level Restatement | - | - | - | - | |
Foreign Exchange Effect | - | - | - | - | |
Net of Monetary Exposure | - | - | - | - | |
Positive Goodwill Amortization | - | - | - | - | |
Non Operating Income | (2) | (4) | (1,060) | (2,631) | (148.2%) |
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 12 | 10 | 6,981 | 5,797 | (17.0%) |
Extraordinary Items | - | - | - | - | |
Income Tax | (10) | (5) | (5,914) | (3,178) | 46.3% |
Minority Interest | - | - | - | - | |
Negative Goodwill Amortization | - | - | - | - | |
NET INCOME | 2 | 4 | 1,069 | 2,621 | 145.2% |
NETINCOME
Edelnor registered net income of Ch$2,621 million, positively compared with the net income of Ch$1,069 million registered the previous year. This result is mainly due to:
OPERATINGINCOME
The operating income reached Ch$8,431 million, almost the same amount registered the previous year.
NONOPERATINGINCOME
Higher Non-Operating Losses of Ch$1,570 million, mainly due to higher net other non operating expenses of Ch$2,369 million mainly explained by the negative BT 64 conversion effect of Ch$570 million and higher non operating expenses of Ch$1,657.
OTHER
Lower tax loss of Ch$2,737 million, from Ch$5,915 million to Ch$3,178 registered on the year 2004.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg.43 |
PRESS RELEASE | |
ADDITIONALINFORMATION | |||
Table 25 | |||
Edelnor | 1Q 04 | 1Q 05 | Chg % |
Customers (Th) | 897 | 913 | 1,8% |
GWh Sold | 1.041 | 1.102 | 5,9% |
Clients/Employee | 1.634 | 1.700 | 4,0% |
Energy Losses % (TTM) | 8,5% | 8,4% | 0,1% |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 44 |
PRESS RELEASE | |
EDESUR(UNDERCHILEANGAAP*) | |||||
Table 26 | |||||
Million US$ | Million Ch$ | ||||
1Q 04 | 1Q 05 | 1Q 04 | 1Q 05 | Chg % | |
Revenues from Sales | 91 | 104 | 53.582 | 61.213 | 14,2% |
Other Operating Revenues | 6 | 8 | 3.688 | 4.902 | 32,9% |
Operating Revenues | 98 | 113 | 57.270 | 66.115 | 15,4% |
Energy Purchases | (49) | (63) | (28.438) | (36.867) | (29,6%) |
Other Operating Cost | (36) | (31) | (21.278) | (18.063) | 15,1% |
Operating Costs | (85) | (94) | (49.716) | (54.930) | (10,5%) |
Selling and Administrative Expenses | (12) | (12) | (7.155) | (7.132) | 0,3% |
Operating Income | 1 | 7 | 399 | 4.053 | - |
Interest Income | 1 | 1 | 767 | 397 | (48,2%) |
Interest Expenses | (8) | (6) | (4.625) | (3.238) | 30,0% |
Net Financial Income (Expenses) | (7) | (5) | (3.858) | (2.841) | 26,4% |
Equity Gains from Related Company | - | - | - | - | - |
Equity Losses from Related Company | - | - | - | - | |
Net Income from Related Companies | - | - | - | - | - |
Other Non Operating Income | 14 | 0 | 8.193 | 90 | (98,9%) |
Other Non Operating Expenses | (5) | (4) | (2.932) | (2.394) | 18,4% |
Conversion Effect (BT 64) | 3 | (1) | 1.491 | (553) | (137,1%) |
Net other Non Operating Income (Expenses) | 12 | (5) | 6.753 | (2.857) | (142,3%) |
Price Level Restatement | - | - | - | - | |
Foreign Exchange Effect | - | - | - | - | |
Net of Monetary Exposure | - | - | - | - | |
Positive Goodwill Amortization | - | - | - | - | |
Non Operating Income | 5 | (10) | 2.895 | (5.698) | - |
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 6 | (3) | 3.294 | (1.645) | (150,0%) |
Extraordinary Items | - | - | - | - | |
Income Tax | (10) | (5) | (5.933) | (3.205) | 46,0% |
Minority Interest | - | - | - | - | |
Negative Goodwill Amortization | - | - | - | - | |
NET INCOME | (5) | (8) | (2.639) | (4.851) | (83,8%) |
* Please take note that these figures could differed from those accounted under Argentinean GAAP. | |||||
NETINCOME |
Edesur registered net loss of Ch$4,851 million, Ch$2,212 million higher loss than the previous year. This result is mainly due to:
OPERATINGINCOME
Higher operating income of Ch$3,654 million, mainly due to higher operating revenues by Ch$8,845 million, partially compensated by Ch$5,214 million higher operating costs related to higher energy purchases.
NONOPERATINGINCOMEHigher non operating losses of Ch$8,593 million, mainly explained by higher net other non operating expenses of Ch$9,610 million, partially compensated by lower net financial expenses of Ch$1,017 million.
OTHERTax loss decrease by Ch$2,728 million compared to the previous year.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 45 |
PRESS RELEASE | |
ADDITIONALINFORMATION
Table 27 |
Edesur | 1Q 04 | 1Q 05 | Chg % |
Customers (Th) | 2.121 | 2.145 | 1,1% |
GWh Sold | 3.439 | 3.516 | 2,2% |
Clients/Employee | 941 | 942 | 0,1% |
Energy Losses % (TTM) | 11,7% | 11,7% | 0,0% |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 46 |
PRESS RELEASE | |
PARTIALLYCONSOLIDATEDINCOMESTATEMENT
Parent Company Consolidated with Enersis Internacional December 2004 Earnings Report
UNDERCHILEANGAAP, MILLIONCH$ | |||
Table 29 | |||
(in million Ch$ of 1Q04) | 1Q 05 | 1Q 04 | Var % |
Gross Operating Margin | 842 | 821 | 2.5% |
S&A Expenses | (3,153) | (3,563) | (11.5%) |
Operating Income | (2,311) | (2,742) | 15.7% |
Endesa | 9,641 | 4,924 | 95.8% |
Chilectra | 9,160 | 12,497 | (26.7%) |
Edesur | (3,143) | (1,710) | 83.8% |
Edelnor | 1,093 | 617 | 77.2% |
Cerj | (1,563) | (3,834) | 59.2% |
Coelce | 429 | (253) | 269.8% |
Codensa | 3,118 | 2,958 | (5.4%) |
CAM LTDA | 1,356 | 544 | 149.3% |
Inm Manso de Velasco | 268 | 1,579 | (83.0%) |
Synapsis | 801 | 1,063 | (24.6%) |
CGTF | 2,133 | 2,499 | (14.7%) |
Other | 302 | 0 | - |
Net Income from Related Companies | 23,594 | 20,884 | 13.0% |
Interest Income | 12,558 | 13,569 | (7.5%) |
Interest Expense | (17,735) | (21,834) | 18.8% |
Net Financial Income (Expenses) | (5,177) | (8,265) | 37.4% |
Other Non Operating Income | 2,154 | 2,202 | (2.2%) |
Other Non Operating Expenses | (10,018) | (1,867) | (436.6%) |
Net other Non Operating Income (Expenses) | (7,864) | 335 | (2450.9%) |
Price Level Restatement | (174) | 614 | (128.3%) |
Foreign Exchange Effect | 9,470 | 9,573 | (1.1%) |
Net Monetary Exposure | 9,296 | 10,187 | (8.8%) |
Positive Goodwill Amortization | (12,768) | (12,679) | 0.7% |
Non Operating Income | 7,080 | 10,462 | (32.3%) |
Net Income before (1), (2) & (3) | 4,769 | 7,720 | (38.2%) |
Income Tax (1) | 2,937 | 2,018 | 45.5% |
Negative Goodwill Amortization (2) | 10 | 92 | (88.7%) |
Minority Interest (3) | - | - | NA |
NET INCOME | 7,716 | 9,830 | (21.5%) |
EPS (Ch$) | 0.24 | 0.30 | |
EPADS (US$) | 0.00 | 0.00 | |
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 | |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 48 |
PRESS RELEASE | |
Table 29.1 | |||
(in thousand US$ of 1Q05) | 1Q 05 | 1Q 04 | Var % |
Gross Operating Margin | 1,436 | 1,401 | 2.5% |
S&A Expenses | (5,381) | (6,081) | (11.5%) |
Operating Income | (3,944) | (4,680) | 15.7% |
Endesa | 16,454 | 8,405 | 95.8% |
Chilectra | 15,633 | 21,328 | (26.7%) |
Edesur | (5,364) | (2,918) | 83.8% |
Edelnor | 1,866 | 1,053 | 77.2% |
Cerj | (2,668) | (6,544) | 59.2% |
Coelce | 733 | (432) | 269.8% |
Codensa | 5,321 | 5,049 | (5.4%) |
CAM LTDA | 2,314 | 928 | 149.3% |
Inm Manso de Velasco | 457 | 2,694 | (83.0%) |
Synapsis | 1,367 | 1,814 | (24.6%) |
CGTF | 3,640 | 4,265 | (14.7%) |
Others | 515 | 0 | - |
Net Income from Related Companies | 40,267 | 35,643 | 13.0% |
Interest Income | 21,433 | 23,158 | (7.5%) |
Interest Expense | (30,268) | (37,264) | 18.8% |
Net Financial Income (Expenses) | (8,836) | (14,106) | 37.4% |
Other Non Operating Income | 3,676 | 3,757 | (2.2%) |
Other Non Operating Expenses | (17,098) | (3,186) | (436.6%) |
Net other Non Operating Income (Expenses) | (13,422) | 571 | (2450.9%) |
Price Level Restatement | (297) | 1,048 | (128.3%) |
Foreign Exchange Effect | 16,162 | 16,338 | (1.1%) |
Net Monetary Exposure | 15,865 | 17,387 | (8.8%) |
Positive Goodwill Amortization | (21,790) | (21,639) | 0.7% |
Non Operating Income | 12,084 | 17,856 | (32.3%) |
Net Income before (1), (2) & (3) | 8,139 | 13,176 | (38.2%) |
Income Tax (1) | 5,012 | 3,445 | 45.5% |
Negative Goodwill Amortization (2) | 18 | 156 | (88.7%) |
Minority Interest (3) | - | - | NA |
NET INCOME | 13,169 | 16,777 | (21.5%) |
EPS (Ch$) | 0.24 | 0.30 | |
EPADS (US$) | 0.00 | 0.00 | |
Common Shares Outstanding (Th) | 32,651,166 | 32,651,166 | |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 49 |
PRESS RELEASE | |
CONFERENCECALLINVITATION
Enersis is pleased to inform you that it will hold a conference call to review its results for the period, on Thursday, April 28, 2005, at 12:00 PM (New York time). To participate, please dial +1 (617) 614-4072 or +1 (800) 688-0836 (toll free USA), approximately 10 minutes prior to the scheduled start time, Passcode ID: 50283766
The phone replay will be available since April 28, until May 5, dialing +1 (617) 801-6888 or 1+ (888) 286-8010 (toll free USA) Passcode ID: 97921632
To access the call online, or to access the replay, go to:http://www.enersis.com Investor Relations, the conference will be complemented by a Power Point “slides show”.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 50 |
PRESS RELEASE | |
CONTACTINFORMATION
For further information, please contact us:
Susana Rey | ||
Head of Investor Relations | ||
srm@e.enersis.cl | ||
56 (2) 353 4554 | ||
Cristián Palacios | Marcela Muñoz | Carmen Poblete |
Investor Relations | Investor Relations | Investor Relations |
Representative | Representative | Representative |
cpg1@e.enersis.cl | mml1@e.enersis.cl | cpt@e.enersis.cl |
56 (2) 353 4492 | 56 (2) 353 4555 | 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. 51 |
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: May 9, 2005 | By: | /s/ Mario Valcarce | |||||
Name: Mario Valcarce | |||||||
Title: Chief Executive Officer |