FORM 6-K
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of July, 2006
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
PRESS RELEASE | ||
ENERSIS ANNOUNCES CONSOLIDATED RESULTS FOR
THE FIRST HALF ENDED JUNE 30, 2006
HIGHLIGHTS FOR THEPERIOD
[All figures in Chilean Pesos]
- Net income grew by more than 43 times, reaching Ch$ 218,227 million, related primarily to a strong 41.2% growth in Operating Income and to a 49.9% decrease in non-operating expense, as well as to a 51.9% reduction in interest expense.
- Net income, before taxes, increased 181.9%, reaching Ch$ 422,764 million.
- Operating Revenues increased by 13.7% to Ch$ 1,909,800 million, as a consequence of higher operating revenues in distribution business in Brazil and Chile, and also in generation business in Chile, Argentina, Peru and Brazil.
- Operating margin increased from 28.8% to 33.9%
- EBITDA grew by 25.9% reaching Ch$ 749,181 million.
- Operating Income improved 41.2% to Ch$ 538,558 million mainly due to,
- 33.7% increase in operating income in Distribution Business
- 47.9% increase in operating income in Generation and Transmission Business
- ROE increased more than 40 times to 7.7% and ROA increased more than 39 times to 2.0%. These measures take into account net income for only the first semester of 2006 and have not been annualized.
- Net cash flow provided by operating activities increased by 38.9%
- Interest coverage improved 33.0% reaching to 4.4 times, in line with investment grade level companies.
- Physical sales continued growing, according to the recovered economic situation in the region, with an increase of 5.3% in physical sales in distribution and 5.4% in generation.
- Electricity sales in GWh (for distribution) increased in all our concession areas, as follows:
- Santiago 4.8%
- Buenos Aires 5.1%
- Bogotá 5.7%
- Rio de Janeiro & Fortaleza 5.3%
- Lima 7.1%
- Our client base in distribution grew by more than 350 thousand new customers.
Pg. 1
PRESS RELEASE | ||
TABLE OF
CONTENTS
Pg. 2
PRESS RELEASE | ||
Pg. 3
PRESS RELEASE | ||
GENERAL INFORMATION
(Santiago, Chile, July 27, 2006) Enersis S.A. (NYSE: ENI), announced today its consolidated financial results for the first half, ended June 30, 2006. All figures are in both US$ and Ch$, under Chilean Generally Accepted Accounting Principles (Chilean GAAP), as seen in the standardized form required by Chilean authorities (FECU). Variations refer to the period between June 30, 2005 and June 30, 2006. 2005 figures have been adjusted by the accounting convention for CPI variation between both periods, equal to 3.7% .
For the purpose of converting Chilean pesos (Ch$) into US dollars (US$), we have used the exchange rate prevailing as of June 30, 2006 for both periods under comparison, equal to US$1 = Ch$539.44. The Chilean peso appreciated by 7% against the US$ comparing June 30, 2006 with June 30, 2005.
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), Endesa Brasil (Brazil) [*], Edesur (Argentina), Codensa (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 on the main items of Income and Cash Flow Statements compared to the information booked as of June 2005.
[*] Consolidated since October 2005 and includes Endesa Fortaleza, CIEN, Cachoeira Dourada, Ampla and Coelce.
Pg. 4
PRESS RELEASE | ||
SIMPLIFIED ORGANIZATIONAL STRUCTURE
Pg. 5
PRESS RELEASE | ||
MARKET INFORMATION
EQUITY MARKET
During the last 12 months, market capitalization increased 7.8% from US$ 6,818 million to US$ 7,347 million, while Enersis' ADR price changed from US$ 10.44 to US$ 11.25. This 7.8% variation is favorably compared with 7.1% increase in the Dow Jones Utilities Average for the same period.
Pg. 6
PRESS RELEASE | ||
Over the last 12 months, the Enersis’ Chilean share price decreased by 0.5%, from Ch$ 122.10 to Ch$ 121.50. This variation is compared with the 3.4% increase of the IPSA Index.
Over the last 12 months, the Enersis’ share price in the Latin American market of the Madrid Stock Exchange, (Latibex) increased by 2.5%, from € 8.57 to € 8.78, compared to the 50.2% variation of the Latibex Index.
Pg. 7
PRESS RELEASE | ||
MARKET PERCEPTION
The research released during the period on Enersis shows the following target prices for the Company’s ADR.
Table 1 | ||||||||
Publication Date | Company | Main Analyst | Target Price | Recommendation | ||||
US$ | ||||||||
July 26, 2006 | Raymond James | Ricardo Cavanagh | 13.8 | Buy | ||||
July 21, 2006 | Merrill Lynch | Frank McGann | 15.0 | Buy | ||||
July 05, 2006 | BBVA Corredores | Francisco Puente | 13.4 | Hold | ||||
June 13, 2006 | Larraín Vial | Cristián Ramírez | 13.9 | Overweight | ||||
ADR average target price (US$) | 14.0 | |||||||
Source: Bloomberg and market researches
DEBT MARKET
The following chart shows the pricing of our Yankee Bonds during the last twelve months.
Pg. 8
PRESS RELEASE | ||
RISK RATING CLASSIFICATION
CORPORATE RISK RATING CLASSIFICATION:
Moody’s: Ba1 / Positive
Rationale (14/10/05)
“Moody’s Investors Service affirmed the rating of Enersis”… “and improved the rating outlook”… “to positive from stable”... “The change in outlook reflects improving financial performance, changes in the regulatory framework in Chile that are favorable for the company, and stronger demand growth for electricity in several countries in which Enersis and Endesa Chile have operations.”
Standard & Poor’s: BBB- / Positive
Rationale (26/10/05)
“Standard & Poor’s raised Enersis’ senior unsecured debt to BBB- from BB+, eliminating the one-notch difference between Enersis’s corporate credit rating and the rating of its senior secured debt”.
“The BBB- corporate credit rating on Enersis is based on its good business profile, which reflects the strong creditworthiness of its Chilean investments, the strong competitive position in the countries where it operates (Argentina, Brazil, Chile, Colombia, and Peru), and the growing demand for power in the region.”
Fitch: BBB / Stable
Rationale (02/06/06)
“…The Risk Rating Agency upgraded Enersis’ rating from BBB- to BBB with a Stable Outlook, reflecting the sustained improvements in the Group’s finances in recent times.” Fitch “acknowledges the sustained improvement in the credit quality of the Company since the beginning of 2004, a more comfortable spread of maturities and a greater solidity presented by its operations in general”.
DOMESTIC RISK RATING CLASSIFICATION:
Feller Rate: | Bonds: A+ / Positive | |
Shares: 1stClass Level 1 | ||
Fitch: | Bonds: A+ / Stable | |
Shares: 1stClass Level 1 |
Pg. 9
PRESS RELEASE | ||
CONSOLIDATED INCOME STATEMENT
UNDER CHILEAN GAAP, MILLION CH$
Table 2
CONS. INCOME STATEMENT - (million Ch$) | 6M 05 | 6M 06 | Var 06-05 | Chg % | ||||
Revenues from Generation & Transmission | 594,359 | 780,282 | 185,923 | 31.3% | ||||
Revenues from Distribution | 1,167,276 | 1,265,909 | 98,633 | 8.4% | ||||
Revenues from Engineering and Real Estate | 13,392 | 22,362 | 8,970 | 67.0% | ||||
Revenues from Other Businesses | 76,520 | 91,118 | 14,598 | 19.1% | ||||
Consolidation Adjustments | (171,187) | (249,871) | (78,685) | (46.0%) | ||||
Operating Revenues | 1,680,360 | 1,909,800 | 229,440 | 13.7% | ||||
Costs from Generation | (383,988) | (476,324) | (92,336) | (24.0%) | ||||
Costs from Distribution | (892,330) | (925,133) | (32,803) | (3.7%) | ||||
Costs from Engineering and Real Estate | (11,759) | (18,449) | (6,690) | (56.9%) | ||||
Costs from Other Businesses | (61,162) | (74,824) | (13,662) | (22.3%) | ||||
Consolidation Adjustments | 153,624 | 233,044 | 79,420 | 51.7% | ||||
Operating Costs | (1,195,616) | (1,261,686) | (66,070) | (5.5%) | ||||
Operating Margin | 484,744 | 648,114 | 163,370 | 33.7% | ||||
SG&A from Generation | (20,682) | (23,428) | (2,746) | (13.3%) | ||||
SG&A from Distribution | (82,681) | (83,778) | (1,097) | (1.3%) | ||||
SG&A from Engineering and Real Estate | (1,464) | (1,729) | (265) | (18.1%) | ||||
SG&A from Other Businesses | (15,118) | (18,780) | (3,662) | (24.2%) | ||||
Consolidation Adjustments | 16,511 | 18,159 | 1,650 | 10.0% | ||||
Selling and Administrative Expenses | (103,434) | (109,556) | (6,122) | (5.9%) | ||||
Operating Income | 381,310 | 538,558 | 157,248 | 41.2% | ||||
Interest Income | 46,585 | 77,620 | 31,035 | 66.6% | ||||
Interest Expense | (195,477) | (190,152) | 5,325 | 2.7% | ||||
Net Interest (Expense) | (148,892) | (112,532) | 36,360 | 24.4% | ||||
Equity Gains from Related Companies | 7,171 | 3,356 | (3,815) | (53.2%) | ||||
Equity Losses from Related Companies | (4,069) | (24) | 4,045 | - | ||||
Net Income from Related Companies | 3,102 | 3,331 | 229 | 7.4% | ||||
Other Non Operating Income | 40,315 | 124,830 | 84,515 | - | ||||
Other Non Operating Expenses | (98,712) | (108,893) | (10,181) | (10.3%) | ||||
Net other Non Operating Income (Expense) | (58,397) | 15,937 | 74,334 | 127.3% | ||||
Price Level Restatement | (1,002) | 2,072 | 3,074 | - | ||||
Foreign Exchange Effect | 1,912 | 3,097 | 1,185 | 62.0% | ||||
Net of Monetary Exposure | 910 | 5,169 | 4,259 | - | ||||
Positive Goodwill Amortization | (28,062) | (27,699) | 363 | 1.3% | ||||
Non Operating Income | (231,339) | (115,794) | 115,545 | 49.9% | ||||
Net Inc b. Taxes, Min Int and Neg Goodwill Amort. | 149,971 | 422,764 | 272,793 | 181.9% | ||||
Extraordinary Items | - | - | - | - | ||||
Income Tax | (96,492) | (46,417) | 50,075 | 51.9% | ||||
Minority Interest | (57,530) | (162,032) | (104,502) | (181.7%) | ||||
Negative Goodwill Amortization | 9,063 | 3,912 | (5,151) | (56.8%) | ||||
NET INCOME | 5,012 | 218,227 | 213,215 | 4,254.1% | ||||
EBITDA | 594,834 | 749,181 | 154,347 | 25.9% | ||||
Pg. 10
PRESS RELEASE | ||
UNDER CHILEAN GAAP, THOUSAND US$
Table 2.1
CONS. INCOME STATEMENT - (thousand US$) | 6M 05 | 6M 06 | Var 06-05 | Chg % | ||||
Revenues from Generation & Transmission | 1,101,808 | 1,446,467 | 344,659 | 31.3% | ||||
Revenues from Distribution | 2,163,866 | 2,346,710 | 182,844 | 8.4% | ||||
Revenues from Engineering and Real Estate | 24,826 | 41,455 | 16,629 | 67.0% | ||||
Revenues from Other Businesses | 141,851 | 168,913 | 27,062 | 19.1% | ||||
Consolidation Adjustments | (317,342) | (463,204) | (145,862) | (46.0%) | ||||
Operating Revenues | 3,115,008 | 3,540,337 | 425,329 | 13.7% | ||||
Costs from Generation | (711,827) | (882,998) | (171,171) | (24.0%) | ||||
Costs from Distribution | (1,654,178) | (1,714,989) | (60,811) | (3.7%) | ||||
Costs from Engineering and Real Estate | (21,799) | (34,201) | (12,402) | (56.9%) | ||||
Costs from Other Businesses | (113,381) | (138,706) | (25,325) | (22.3%) | ||||
Consolidation Adjustments | 284,784 | 432,012 | 147,228 | 51.7% | ||||
Operating Costs | (2,216,402) | (2,338,882) | (122,480) | (5.5%) | ||||
Operating Margin | 898,606 | 1,201,455 | 302,849 | 33.7% | ||||
SG&A from Generation | (38,340) | (43,430) | (5,090) | (13.3%) | ||||
SG&A from Distribution | (153,272) | (155,305) | (2,033) | (1.3%) | ||||
SG&A from Engineering and Real Estate | (2,714) | (3,206) | (492) | (18.1%) | ||||
SG&A from Other Businesses | (28,025) | (34,814) | (6,789) | (24.2%) | ||||
Consolidation Adjustments | 30,608 | 33,662 | 3,054 | 10.0% | ||||
Selling and Administrative Expenses | (191,743) | (203,091) | (11,348) | (5.9%) | ||||
Operating Income | 706,863 | 998,364 | 291,501 | 41.2% | ||||
Interest Income | 86,359 | 143,890 | 57,531 | 66.6% | ||||
Interest Expense | (362,371) | (352,500) | 9,871 | 2.7% | ||||
Net Interest (Expense) | (276,012) | (208,610) | 67,402 | 24.4% | ||||
Equity Gains from Related Companies | 13,293 | 6,221 | (7,072) | (53.2%) | ||||
Equity Losses from Related Companies | (7,542) | (45) | 7,497 | - | ||||
Net Income from Related Companies | 5,751 | 6,176 | 425 | 7.4% | ||||
Other Non Operating Income | 74,735 | 231,407 | 156,672 | - | ||||
Other Non Operating Expenses | (182,989) | (201,863) | (18,874) | (10.3%) | ||||
Net other Non Operating Income (Expense) | (108,255) | 29,544 | 137,799 | 127.3% | ||||
Price Level Restatement | (1,858) | 3,841 | 5,699 | - | ||||
Foreign Exchange Effect | 3,545 | 5,741 | 2,196 | 62.0% | ||||
Net of Monetary Exposure | 1,687 | 9,582 | 7,895 | - | ||||
Positive Goodwill Amortization | (52,020) | (51,348) | 672 | 1.3% | ||||
Non Operating Income | (428,849) | (214,657) | 214,192 | 49.9% | ||||
Net Inc b. Taxes, Min Int and Neg Goodwill Amort. | 278,014 | 783,707 | 505,693 | 181.9% | ||||
Extraordinary Items | - | - | - | - | ||||
Income Tax | (178,874) | (86,047) | 92,827 | 51.9% | ||||
Minority Interest | (106,648) | (300,370) | (193,722) | (181.7%) | ||||
Negative Goodwill Amortization | 16,801 | 7,253 | (9,548) | (56.8%) | ||||
NET INCOME | 9,294 | 404,542 | 395,248 | 4,254.1% | ||||
EBITDA | 1,102,688 | 1,388,813 | 286,125 | 25.9% | ||||
Pg. 11
PRESS RELEASE | ||
PROFORMA CONSOLIDATED INCOME STATEMENT
UNDER CHILEAN GAAP, MILLION CH$
Table 3 | ||||||||||
6M 05 | 6M 05 pf* | 6M 06 | Chg | Chg | ||||||
O6 / 05 | O6 / 05 Pf * | |||||||||
Operating Revenues | 1,680,360 | 1,750,609 | 1,909,800 | 13.7% | 9.1% | |||||
Operating Costs | (1,195,616) | (1,210,046) | (1,261,686) | (5.5%) | (4.3%) | |||||
Operating Margin | 484,744 | 540,563 | 648,114 | 33.7% | 19.9% | |||||
S&A Expenses | (103,434) | (105,868) | (109,556) | (5.9%) | (3.5%) | |||||
Operating Income | 381,310 | 434,695 | 538,558 | 41.2% | 23.9% | |||||
Non Operating Income | (231,339) | (269,682) | (115,794) | 49.9% | 57.1% | |||||
NI before Taxes | 149,971 | 165,013 | 422,764 | 181.9% | 156.2% | |||||
Income Tax | (96,492) | (114,635) | (46,417) | 51.9% | 59.5% | |||||
Minority Interest | (57,530) | (54,428) | (162,032) | (181.6%) | (197.7%) | |||||
Negative Goodwill Amortization | 9,063 | 9,063 | 3,912 | (56.8%) | (56.8%) | |||||
Net Income | 5,012 | 5,012 | 218,227 | 4,253.7% | 4,253.7% | |||||
UNDER CHILEAN GAAP, THOUSAND US$
Table 3.1 | ||||||||||
6M 05 | 6M 05 pf* | 6M 06 | Chg | Chg | ||||||
O6 / 05 | O6 / 05 Pf * | |||||||||
Operating Revenues | 3,115,008 | 3,245,234 | 3,540,337 | 13.7% | 9.1% | |||||
Operating Costs | (2,216,402) | (2,243,152) | (2,338,882) | (5.5%) | (4.3%) | |||||
Operating Margin | 898,606 | 1,002,082 | 1,201,457 | 33.7% | 19.9% | |||||
S&A Expenses | (191,743) | (196,255) | (203,091) | (5.9%) | (3.5%) | |||||
Operating Income | 706,863 | 805,827 | 998,366 | 41.2% | 23.9% | |||||
Non Operating Income | (428,850) | (499,930) | (214,655) | 49.9% | 57.1% | |||||
NI before Taxes | 278,012 | 305,896 | 783,709 | 181.9% | 156.2% | |||||
Income Tax | (178,874) | (212,508) | (86,047) | 51.9% | 59.5% | |||||
Minority Interest | (106,648) | (100,898) | (300,370) | (181.6%) | (197.7%) | |||||
Negative Goodwill Amortization | 16,801 | 16,801 | 7,253 | (56.8%) | (56.8%) | |||||
Net Income | 9,292 | 9,292 | 404,544 | 4,253.7% | 4,253.7% | |||||
* pf: Proforma Income Statement, consolidates 6M05 of Cien and Fortaleza |
Pg. 12
PRESS RELEASE | ||
CONSOLIDATED INCOME STATEMENT ANALYSIS
(Source in Ch$ FECU)
NET INCOME
As of June 2006, profits increased more than 43 times up to Ch$218,227 million, which represent an increase of Ch$ 213,215 million. This is explained by an important 41.2% improvement in operating income, lower non operating losses of Ch$115,545 or 49.9% and also by the recognition of the positive effect of deferred taxes in Chilectra (ex-Elesur) due to the approval of the merger last March.
OPERATING INCOME
Operating income as of June 2006 amounted to Ch$ 538,558 million, increasing Ch$ 157,248 million. This is principally due to an important improvement in operating income in the distribution subsidiaries in Brazil, Chile, Argentina and Colombia, and in generation subsidiaries in Chile and Argentina. Additionally, explained by the consolidation since October 2005, of some Brazilian assets under the new holding company Endesa Brasil.
Table 4
6M05 | 6M06 | |||||||||||||||
Million Ch$ | Operating Revenues | Operating Costs | SG & A | Operating Income | Operating Revenues | Operating Costs | SG& A | Operating Income | ||||||||
Endesa Chile | 600,819 | (391,431) | (20,823) | 188,565 | 637,050 | (375,808) | (18,695) | 242,547 | ||||||||
Cachoeira (*) | - | - | - | - | 32,568 | (15,311) | (1,864) | 15,393 | ||||||||
Fortaleza (**) | - | - | - | - | 54,904 | (34,568) | (571) | 19,765 | ||||||||
Cien (**) | - | - | - | - | 68,885 | (62,740) | (2,332) | 3,813 | ||||||||
Chilectra S.A. | 271,112 | (197,897) | (19,480) | 53,735 | 318,392 | (237,658) | (22,056) | 58,678 | ||||||||
Edesur S.A. | 134,694 | (116,205) | (16,482) | 2,007 | 135,391 | (105,359) | (16,369) | 13,663 | ||||||||
Distrilima (Edelnor) | 112,353 | (85,717) | (10,162) | 16,474 | 105,455 | (78,108) | (10,035) | 17,312 | ||||||||
Ampla | 266,849 | (213,326) | (11,095) | 42,428 | 282,057 | (211,904) | (8,850) | 61,303 | ||||||||
Investluz (Coelce) | 161,231 | (119,345) | (19,463) | 22,423 | 211,754 | (146,162) | (18,649) | 46,943 | ||||||||
Codensa S.A. | 221,094 | (161,231) | (6,161) | 53,702 | 212,860 | (145,943) | (7,777) | 59,140 | ||||||||
CAM Ltda. | 52,988 | (44,833) | (3,782) | 4,373 | 63,473 | (54,742) | (4,030) | 4,701 | ||||||||
Inmobiliaria Manso de Velasco Ltda. | 3,523 | (3,042) | (889) | (408) | 8,528 | (6,159) | (1,226) | 1,143 | ||||||||
Synapsis Soluciones y Servicios IT Ltda. | 21,196 | (15,772) | (3,586) | 1,838 | 25,319 | (18,942) | (4,551) | 1,826 | ||||||||
Enersis Holding and other investment vehicles | 2,321 | (555) | (7,587) | (5,821) | 2,326 | (1,139) | (10,236) | (9,049) | ||||||||
Consolidation Adjustments | (167,820) | 153,738 | 16,076 | 1,994 | (249,162) | 232,857 | 17,685 | 1,380 | ||||||||
Total Consolidation | 1,680,360 | (1,195,616) | (103,434) | 381,310 | 1,909,800 | (1,261,686) | (109,556) | 538,558 |
Table 4.1
6M05 | 6M06 | |||||||||||||||
Thousand US$ | Operating Revenues | Operating Costs | SG & A | Operating Income | Operating Revenues | Operating Costs | SG& A | Operating Income | ||||||||
Endesa Chile | 1,113,782 | (725,624) | (38,602) | 349,556 | 1,180,948 | (696,664) | (34,656) | 449,628 | ||||||||
Cachoeira (*) | - | - | - | - | 60,373 | (28,383) | (3,455) | 28,535 | ||||||||
Fortaleza (**) | - | - | - | - | 101,779 | (64,082) | (1,058) | 36,639 | ||||||||
Cien (**) | - | - | - | - | 127,698 | (116,306) | (4,323) | 7,068 | ||||||||
Chilectra S.A. | 502,580 | (366,857) | (36,111) | 99,612 | 590,228 | (440,563) | (40,887) | 108,777 | ||||||||
Edesur S.A. | 249,692 | (215,418) | (30,554) | 3,720 | 250,985 | (195,312) | (30,344) | 25,328 | ||||||||
Distrilima (Edelnor) | 208,277 | (158,900) | (18,838) | 30,539 | 195,490 | (144,794) | (18,603) | 32,093 | ||||||||
Ampla | 494,678 | (395,458) | (20,567) | 78,652 | 522,869 | (392,822) | (16,405) | 113,642 | ||||||||
Investluz (Coelce) | 298,886 | (221,239) | (36,080) | 41,567 | 392,545 | (270,952) | (34,571) | 87,022 | ||||||||
Codensa S.A. | 409,858 | (298,886) | (11,421) | 99,551 | 394,594 | (270,545) | (14,417) | 109,632 | ||||||||
CAM Ltda. | 98,228 | (83,110) | (7,010) | 8,107 | 117,665 | (101,479) | (7,471) | 8,715 | ||||||||
Inmobiliaria Manso de Velasco Ltda. | 6,531 | (5,639) | (1,647) | (755) | 15,810 | (11,418) | (2,273) | 2,119 | ||||||||
Synapsis Soluciones y Servicios IT Ltda. | 39,293 | (29,238) | (6,648) | 3,406 | 46,936 | (35,115) | (8,437) | 3,385 | ||||||||
Enersis Holding and other investment vehicles | 4,303 | (1,029) | (14,064) | (10,790) | 4,312 | (2,112) | (18,975) | (16,775) | ||||||||
Consolidation Adjustments | (311,101) | 284,995 | 29,801 | 3,696 | (461,890) | 431,664 | 32,784 | 2,557 | ||||||||
Total Consolidation | 3,115,008 | (2,216,402) | (191,743) | 706,863 | 3,540,337 | (2,338,882) | (203,091) | 998,364 |
(*) Consolidated by Endesa Chile until September 30th, 2005. Since October 1th is consolidated by Enersis through Endesa Brasil. | ||||||||||||||||
(**) Since October 1, 2005, these subsidiaries are consolidated by Enersis through Endesa Brasil. |
Pg. 13
PRESS RELEASE | ||
If we compare the consolidation perimeter in homogeneous terms, the operating income increased by 23.9% between both periods. Now, if we add to this comparison, the 6.8% revaluation effect of the Chilean Peso against the US Dollar, the operating income would have increased 34.4% .
NONOPERATINGINCOME
The company’s non-operating losses decreased 49.9%, from a loss of Ch$231,339 million to a loss of Ch$ 115,794 million. This is principally attributable to:
Net Interest Expensesimproved by Ch$ 36,360 million or 24.4%, from Ch$148,892 million to a net expense of Ch$ 112,532 million, due to higher interest income from the investment of cash surplus and the reduction in net interest expenses is mainly explained by the control on average debt, even though the company has consolidated two new subsidiaries in this period (CIEN and Endesa Fortaleza). Another reason has to do with higher interest income from investments of cash surplus.
Income from investments in related companies increased Ch$ 229 million. This is mainly explained by the consolidation of CIEN and Endesa Fortaleza since October 2005. In that sense, as of June 2005, Ch$4,061 million loss and Ch$1,775 million profits were recognized for CIEN and Endesa Fortaleza (meaning a net loss of Ch$2,286 million), amounts that for this period are not accounted for as related companies and therefore appear as zero. Moreover, lower profits of Ch$ 1,485 million from our related company Atacama Holding Ltda. should be added.
Amortization on positive goodwill remains at the same levels with no significant variations.
Net other non-operating incomeincreased Ch$ 74,334 million or 127.3% . The main reasons for this variation are,
- Higher profits of Ch$ 56,647 million as a result of the adjustment on the conversion to Chilean GAAP following the application of Technical Bulletin Nº 64, principally on our subsidiaries in Colombia, Brazil and Peru.
- Higher profits on sale of assets of Ch$12,446 million.
- Lower expenses of provisions and contingencies of Ch$8,848 million.
- Lower losses from correction of energy and capacity payments of Ch$ 2,727 million.
These items were partially compensated by higher expenses for energy efficiency in Brazilian subsidiaries of Ch$9,849 million.
Price-level restatementnon cashprofits increased by Ch$3,074 million. This is principally due to the effect of inflation of 1.0% recorded for the first half of 2005, and 1.1% as of June 2006, over non-monetary assets and liabilities and those denominated in UF.
The Foreign Exchange Effectincreased by Ch$ 1,185 million, due to the dollar mismatch position as of June 2006.
Income tax and Deferred taxregistered a loss of Ch$ 46,417 million, compared with the expense of Ch$96,492 million in June 2005, this means a positive variation of Ch$ 50,075 million.
Pg. 14
PRESS RELEASE | ||
The increase of Ch$73,406 million inincome tax is mainly explained by higher provisions in Coelce, Enersis, Pehuenche, Ampla and Chilectra of Ch$ 13,718 million, Ch$ 10,887 million, Ch$ 7,351 million, Ch$ 7,172 million, Ch$ 4,957 million respectively related to improved results, together with the effect of the consolidation of Fortaleza and CIEN equivalent to Ch$ 16,084 million and Ch$ 8,681 million respectively. This was partially compensated by tax recovered for Ch$ 5,788 million in Emgesa.
Deferred taxes –which do not constitute cash flow- registered a positive variation of Ch$ 123,481 million. This increase was mainly explained by the effect recognized in Chilectra (ex Elesur) for Ch$ 107,170 million as consequence of the merge between Elesur and Chilectra. This merge implied, for Elesur, in adjustment in the provisions on valuations upon accumulated tax losses, as booked in previous exercises.
Amortization on negative goodwill decreased Ch$ 5,151 million, explained by the end of the final amortization of Betania and the first purchase on Edegel, which effect is a lower amortization of Ch$ 1,403 million and Ch$3,442 million respectively. Also it must be taken into account the effect of the exchange rate applied in foreign subsidiaries accounted for in dollars and which have a negative goodwill.
EVOLUTION OF KEY FINANCIAL RATIOS
Table 5
Indicator | Unit | 6M05 | 6M06 | Var 06-05 | Chg % | |||||
Liquidity | Times | 1.32 | 1.10 | (0.22) | (16.7%) | |||||
Acid ratio test * | Times | 1.21 | 1.02 | (0.19) | (15.7%) | |||||
Working capital | million Ch$ | 348,951 | 156,433 | (192,518) | (55.2%) | |||||
Working capital | th. US$ | 646,876 | 289,991 | (356,884) | (55.2%) | |||||
Leverage ** | Times | 0.88 | 0.88 | - | 0.0% | |||||
Short-term debt | % | 0.21 | 0.30 | 0.09 | 42.9% | |||||
Long-term debt | % | 0.79 | 0.70 | (0.09) | (11.4%) | |||||
Interest Coverage*** | Times | 3.30 | 4.39 | 1.09 | 33.0% | |||||
EBITDA**** | th. US$ | 1,102,688 | 1,388,813 | 286,125 | 25.9% | |||||
ROE | % | 0.19% | 7.70% | 7.51% | 3952.6% | |||||
ROA | % | 0.05% | 1.97% | 1.92% | 3839.6% | |||||
* 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
Pg. 15
PRESS RELEASE | ||
Liquidity ratiodecreased to 1.10 times, basically as a consequence of bonds maturing in the coming 12 months and therefore included in the short term. This ratio shows an improvement with respect to December 2005, when the ratio was 0.88 times, although lower than the 1.32 for June 2005. Nevertheless, the company is showing strong liquidity, also considering that bond maturities will be partially financed with long term debt.
Leverage reached 0.88, the same level as of June 2005, mainly due to the new debt included after the consolidation of Fortaleza and CIEN since October 2005, offset by a decrease in obligations with banks due to prepayments during the second semester of 2005 and the first half 2006. As well as the US dollar Chilean peso exchange rate effect
ROE increased to 7.70%, mainly explained by the higher net income recorded in the period.
ROA increased to 1.97% explained by the higher net income during the period.
Interest Coverage improved 33.0% to 4.4 times, mainly due to the reduction in interest expenses and increase in operating results in all our subsidiaries through Latin America. This ratio, over 4 times aligns the company with ranges required for strong investment grade companies.
Pg. 16
PRESS RELEASE | ||
CONSOLIDATED BALANCE SHEET
ASSETS UNDER CHILEAN GAAP,MILLION CH$
Table 6
ASSETS - (million Ch$) | 6M 05 | 6M 06 | Var 06-05 | Chg % | ||||
CURRENT ASSETS | ||||||||
Cash | 44,431 | 52,223 | 7,792 | 17.5% | ||||
Time deposits | 435,488 | 423,209 | (12,280) | (2.8%) | ||||
Marketable securities | 9,400 | 3,724 | (5,676) | (60.4%) | ||||
Accounts receivable, net | 629,357 | 755,769 | 126,412 | 20.1% | ||||
Notes receivable, net | 3,187 | 5,662 | 2,475 | 77.6% | ||||
Other accounts receivable, net | 77,808 | 129,418 | 51,610 | 66.3% | ||||
Amounts due from related companies | 9,440 | 7,922 | (1,518) | (16.1%) | ||||
Inventories | 72,844 | 72,020 | (824) | (1.1%) | ||||
Income taxes recoverable | 65,789 | 47,102 | (18,687) | (28.4%) | ||||
Prepaid expenses | 47,348 | 60,939 | 13,591 | 28.7% | ||||
Deferred income taxes | 44,983 | 63,848 | 18,866 | 41.9% | ||||
Other current assets | 12,403 | 67,674 | 55,271 | - | ||||
Total currrent assets | 1,452,478 | 1,689,510 | 237,032 | 16.3% | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||
Land | 137,406 | 134,817 | (2,589) | (1.9%) | ||||
Buildings and infraestructure and works in progress | 10,942,122 | 10,850,620 | (91,502) | (0.8%) | ||||
Machinery and equipment | 1,964,056 | 1,940,538 | (23,518) | (1.2%) | ||||
Other plant and equipment | 402,707 | 553,725 | 151,018 | 37.5% | ||||
Technical appraisal | 205,531 | 187,829 | (17,702) | (8.6%) | ||||
Sub - Total | 13,651,823 | 13,667,529 | 15,707 | 0.1% | ||||
Accumulated depreciation | (5,523,716) | (5,585,347) | (61,631) | (1.1%) | ||||
Total property, plant and equipment | 8,128,107 | 8,082,182 | (45,925) | (0.6%) | ||||
OTHER ASSETS | ||||||||
Investments in related companies | 194,134 | 104,711 | (89,423) | (46.1%) | ||||
Investments in other companies | 53,792 | 25,701 | (28,091) | (52.2%) | ||||
Positive goodwill, net | 741,090 | 676,823 | (64,267) | (8.7%) | ||||
Negative goodwill, net | (52,044) | (33,350) | 18,694 | 35.9% | ||||
Long-term receivables | 114,587 | 143,889 | 29,302 | 25.6% | ||||
Amounts due from related companies | 114,562 | 94,549 | (20,013) | (17.5%) | ||||
Intangibles | 88,759 | 87,038 | (1,721) | (1.9%) | ||||
Accumulated amortization | (50,517) | (53,467) | (2,950) | (5.8%) | ||||
Others assets | 279,442 | 259,508 | (19,934) | (7.1%) | ||||
Total other assets | 1,483,805 | 1,305,401 | (178,404) | (12.0%) | ||||
TOTAL ASSETS | 11,064,390 | 11,077,093 | 12,703 | 0.1% | ||||
Pg. 17
PRESS RELEASE | ||
ASSETS UNDER CHILEAN GAAP,THOUSAND US$
Table 6.1
ASSETS - (thousand US$) | 6M 05 | 6M 06 | Var 06-05 | Chg % | ||||
CURRENT ASSETS | ||||||||
Cash | 82,365 | 96,809 | 14,444 | 17.5% | ||||
Time deposits | 807,297 | 784,533 | (22,764) | (2.8%) | ||||
Marketable securities | 17,426 | 6,904 | (10,522) | (60.4%) | ||||
Accounts receivable, net | 1,166,685 | 1,401,024 | 234,339 | 20.1% | ||||
Notes receivable, net | 5,909 | 10,497 | 4,588 | 77.6% | ||||
Other accounts receivable, net | 144,238 | 239,912 | 95,674 | 66.3% | ||||
Amounts due from related companies | 17,500 | 14,686 | (2,814) | (16.1%) | ||||
Inventories | 135,037 | 133,509 | (1,528) | (1.1%) | ||||
Income taxes recoverable | 121,957 | 87,316 | (34,641) | (28.4%) | ||||
Prepaid expenses | 87,772 | 112,967 | 25,195 | 28.7% | ||||
Deferred income taxes | 83,387 | 118,361 | 34,974 | 41.9% | ||||
Other current assets | 22,992 | 125,453 | 102,461 | - | ||||
Total currrent assets | 2,692,566 | 3,131,971 | 439,405 | 16.3% | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||
Land | 254,720 | 249,920 | (4,800) | (1.9%) | ||||
Buildings and infraestructure and works in progres | 20,284,225 | 20,114,600 | (169,625) | (0.8%) | ||||
Machinery and equipment | 3,640,916 | 3,597,320 | (43,596) | (1.2%) | ||||
Other plant and equipment | 746,528 | 1,026,482 | 279,954 | 37.5% | ||||
Technical appraisal | 381,009 | 348,193 | (32,816) | (8.6%) | ||||
Sub - Total | 25,307,398 | 25,336,514 | 29,116 | 0.1% | ||||
Accumulated depreciation | (10,239,722) | (10,353,973) | (114,251) | (1.1%) | ||||
Total property, plant and equipment | 15,067,676 | 14,982,540 | (85,136) | (0.6%) | ||||
OTHER ASSETS | ||||||||
Investments in related companies | 359,881 | 194,111 | (165,770) | (46.1%) | ||||
Investments in other companies | 99,718 | 47,643 | (52,075) | (52.2%) | ||||
Positive goodwill, net | 1,373,814 | 1,254,678 | (119,136) | (8.7%) | ||||
Negative goodwill, net | (96,478) | (61,823) | 34,655 | 35.9% | ||||
Long-term receivables | 212,418 | 266,737 | 54,319 | 25.6% | ||||
Amounts due from related companies | 212,372 | 175,272 | (37,100) | (17.5%) | ||||
Intangibles | 164,539 | 161,348 | (3,191) | (1.9%) | ||||
Accumulated amortization | (93,647) | (99,116) | (5,469) | (5.8%) | ||||
Others assets | 518,022 | 481,069 | (36,953) | (7.1%) | ||||
Total other assets | 2,750,640 | 2,419,919 | (330,721) | (12.0%) | ||||
TOTAL ASSETS | 20,510,881 | 20,534,430 | 23,549 | 0.1% | ||||
Pg. 18
PRESS RELEASE | ||
LIABILITIES AND SHAREHOLDERS EQUITY UNDER CHILEAN GAAP, MILLION CH$
Table 7
LIABILITIES AND SHAREHOLDER´S EQUITY - (million Ch$) | 6M 05 | 6M 06 | Var 06-05 | Chg % | ||||
CURRENT LIABILITIES | ||||||||
Short-term debt due to banks and financial institutions | 98,938 | 103,832 | 4,894 | (4.9%) | ||||
Current portion of long-term debt due to banks and financial institutions | 137,026 | 169,647 | 32,621 | (23.8%) | ||||
Promissory notes | - | - | - | |||||
Current portion of bonds payable | 202,464 | 471,493 | 269,029 | (132.9%) | ||||
Current portion of long-term notes payable | 21,746 | 46,627 | 24,881 | (114.4%) | ||||
Dividends payable | 52,206 | 17,305 | (34,901) | 66.9% | ||||
Accounts payable | 258,138 | 319,778 | 61,641 | (23.9%) | ||||
Short-term notes payable | 16,187 | 16,591 | 404 | (2.5%) | ||||
Miscellaneous payables | 49,322 | 88,510 | 39,188 | (79.5%) | ||||
Accounts payable to related companies | 56,837 | 40,560 | (16,277) | 28.6% | ||||
Accrued expenses | 55,249 | 63,392 | 8,143 | (14.7%) | ||||
Withholdings | 56,026 | 70,050 | 14,024 | (25.0%) | ||||
Income taxes payable | 36,022 | 52,597 | 16,575 | (46.0%) | ||||
Anticipated income | 4,836 | 2,947 | (1,889) | 39.1% | ||||
Deferred income taxes | - | - | - | - | ||||
Reinbursable financial contribution | 2,270 | 1,275 | (995) | 43.8% | ||||
Other current liabilities | 56,261 | 68,472 | 12,211 | (21.7%) | ||||
Total current liabilities | 1,103,527 | 1,533,077 | 429,550 | (38.9%) | ||||
LONG-TERM LIABILITIES | ||||||||
Due to banks and financial institutions | 644,201 | 667,986 | 23,785 | (3.7%) | ||||
Bonds payable | 2,692,492 | 2,079,318 | (613,174) | 22.8% | ||||
Long -term notes payable | 127,333 | 167,765 | 40,432 | (31.8%) | ||||
Accounts payables | 63,858 | 71,042 | 7,183 | (11.2%) | ||||
Amounts payable to related companies | - | 12,669 | 12,669 | - | ||||
Accrued expenses | 357,278 | 462,327 | 105,049 | (29.4%) | ||||
Deferred income taxes | 69,681 | 11,502 | (58,179) | 83.5% | ||||
Reinbursable financial contribution | 5,994 | 3,386 | (2,608) | 43.5% | ||||
Other long-term liabilities | 100,440 | 180,074 | 79,634 | (79.3%) | ||||
Total long-term liabilities | 4,061,278 | 3,656,068 | (405,210) | 10.0% | ||||
Minority interest | 3,199,725 | 3,053,017 | (146,708) | (4.6%) | ||||
SHAREHOLDERS´ EQUITY | ||||||||
Paid-in capital, no par value | 2,367,890 | 2,365,607 | (2,283) | (0.1%) | ||||
Additional paid-in capital | 23,679 | 26,022 | 2,343 | 9.9% | ||||
Additional paid-in capital (share premium) | 170,434 | 170,438 | 4 | 0.0% | ||||
Other reserves | (100,074) | (213,912) | (113,838) | 113.8% | ||||
Total capital and reserves | 2,461,929 | 2,348,154 | (113,775) | (4.6%) | ||||
Retained earnings | 232,919 | 268,550 | 35,631 | 15.3% | ||||
Net income for the period | 5,012 | 218,227 | 213,215 | - | ||||
Deficits of subsidaries in development stage | - | - | - | - | ||||
Total retained earnings | 237,931 | 486,777 | 248,845 | 104.6% | ||||
Total shareholder´s equity | 2,699,860 | 2,834,931 | 135,071 | 5.0% | ||||
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY | 11,064,390 | 11,077,093 | 12,703 | 0.1% | ||||
Pg. 19
PRESS RELEASE | ||
LIABILITIES AND SHAREHOLDERS EQUITY UNDER CHILEAN GAAP,THOUSAND US$
Table 7.1 | ||||||||
LIABILITIES - (thousand US$) | 6M 05 | 6M 06 | Var 06-05 | Chg % | ||||
CURRENT LIABILITIES | ||||||||
Short-term debt due to banks and financial institutions | 183,408 | 192,480 | 9,072 | (4.9%) | ||||
Current portion of long-term debt due to banks and financial in | 254,015 | 314,488 | 60,473 | (23.8%) | ||||
Current portion of bonds payable | 375,322 | 874,041 | 498,719 | (132.9%) | ||||
Current portion of long-term notes payable | 40,313 | 86,437 | 46,124 | (114.4%) | ||||
Dividends payable | 96,778 | 32,079 | (64,699) | 66.9% | ||||
Accounts payable | 478,529 | 592,796 | 114,267 | (23.9%) | ||||
Short-term notes payable | 30,007 | 30,755 | 748 | (2.5%) | ||||
Miscellaneous payables | 91,432 | 164,078 | 72,646 | (79.5%) | ||||
Accounts payable to related companies | 105,363 | 75,189 | (30,174) | 28.6% | ||||
Accrued expenses | 102,419 | 117,515 | 15,096 | (14.7%) | ||||
Withholdings | 103,859 | 129,856 | 25,997 | (25.0%) | ||||
Income taxes payable | 66,776 | 97,503 | 30,727 | (46.0%) | ||||
Anticipated income | 8,965 | 5,463 | (3,502) | 39.1% | ||||
Reinbursable financial contribution | 4,208 | 2,363 | (1,845) | 43.8% | ||||
Other current liabilities | 104,295 | 126,932 | 22,637 | (21.7%) | ||||
Total current liabilities | 2,045,690 | 2,841,978 | 796,288 | (38.9%) | ||||
LONG-TERM LIABILITIES | ||||||||
Due to banks and financial institutions | 1,194,204 | 1,238,295 | 44,091 | (3.7%) | ||||
Bonds payable | 4,991,273 | 3,854,587 | (1,136,686) | 22.8% | ||||
Long -term notes payable | 236,047 | 310,999 | 74,952 | (31.8%) | ||||
Accounts payables | 118,379 | 131,695 | 13,316 | (11.2%) | ||||
Amounts payable to related companies | - | 23,485 | 23,485 | - | ||||
Accrued expenses | 662,313 | 857,050 | 194,737 | (29.4%) | ||||
Deferred income taxes | 129,174 | 21,323 | (107,851) | 83.5% | ||||
Reinbursable financial contribution | 11,112 | 6,276 | (4,836) | 43.5% | ||||
Other long-term liabilities | 186,193 | 333,816 | 147,623 | (79.3%) | ||||
Total long-term liabilities | 7,528,693 | 6,777,525 | (751,168) | 10.0% | ||||
Minority interest | 5,931,568 | 5,659,605 | (271,963) | (4.6%) | ||||
SHAREHOLDERS´ EQUITY | ||||||||
Paid-in capital, no par value | 4,389,534 | 4,385,301 | (4,233) | (0.1%) | ||||
Additional paid-in capital | 43,895 | 48,238 | 4,343 | 9.9% | ||||
Additional paid-in capital (share premium) | 315,946 | 315,954 | 8 | 0.0% | ||||
Other reserves | (185,515) | (396,545) | (211,030) | 113.8% | ||||
Total capital and reserves | 4,563,860 | 4,352,948 | (210,912) | (4.6%) | ||||
Retained earnings | 431,779 | 497,831 | 66,052 | 15.3% | ||||
Net income for the period | 9,292 | 404,544 | 395,252 | - | ||||
Deficits of subsidaries in development stage | - | - | - | - | ||||
Total retained earnings | 441,071 | 902,375 | 461,304 | 104.6% | ||||
Total shareholder´s equity | 5,004,932 | 5,255,323 | 250,391 | 5.0% | ||||
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY | 20,510,882 | 20,534,430 | 23,549 | 0.1% | ||||
Pg. 20
PRESS RELEASE | ||
CONSOLIDATEDBALANCESHEETANALYSIS
The Company’sTotal Assets increased by Ch$12,703 million. This was due to:
• | A decrease of Ch$45,925 million, or 0.6% inFixed Assetsbecause of the depreciation for the year in the amount of Ch$377,000 million and the effect of the Chilean Peso US Dollar exchange rate of Ch$410,000 million on fixed assets of overseas companies. According to the methodology of carrying non-monetary assets in nominal Dollars, pursuant to Technical Bulletin Nº 64 in the subsidiaries located in countries with unstable currencies and the effect of Ch$290,006 million due to inflation adjustment. This was partially compensated by the addition of new fixed assets amounting to Ch$392,495 million and the incorporation of Endesa Fortaleza, CIEN and Etevensa by Ch$107,645 million, Ch$293,090 million and Ch$126,807 million respectively. | ||
• | Current Assetsincreased by Ch$237,032 million, mainly due to: | ||
• | An increase of Ch$126,412 million in accounts receivables, mainly due to the higher invoicing at the subsidiaries Coelce of Ch$25,270 million, Edesur of Ch$16,695, Cachoeira Dourada of Ch$14,144 million, Chilectra of Ch$10,465 million, Codensa of Ch$9,614 million, CAM of Ch$6,302 million and the consolidation of CIEN of Ch$46,356 million. | ||
• | An increase in other accounts receivables of Ch$51,610 million due to the increase in Ampla of Ch$26,171 million, Codensa of Ch$15,960 million and Endesa Chile of Ch$11,225 million. | ||
• | An increase in other current assets of Ch$ 55,271 million, due to an increase in reverse repurchase agreements of Ch$54,965 million. | ||
• | Other long term assetsdecreased of Ch$178,404 million, explained mainly as follows: | ||
• | Decrease of investments in related companies for Ch$89,422 million, due to the decrease of CIEN for Ch$52,846 million and Fortaleza for Ch$30,851 million, due to the fact that these companies are now consolidated and not accounted for as equity investment. | ||
• | Decrease of positive goodwill of Ch$64,267 million. This corresponds to the annual average amortization by Ch$55,000 million. The difference is due to the exchange rate effect on other several minor positive goodwill amounts booked in subsidiaries accounted in US Dollars. | ||
• | A decrease of Ch$28,091 million in investments in other related companies, basically explained by the lower investment in Empresa Eléctrica de Bogotá of Ch$27,881 million. | ||
Total LiabilitiesandShareholder’s Equitydecreased Ch$12,703 million, due to: | |||
• | Short-term liabilitiesincreased Ch$429,550 million or 38.9% as a result of: | ||
• | Increase of Ch$269,029 million in short term portion of bond obligations corresponding to Enersis bonds of Ch$161,727 million, Endesa Chile of Ch$108,818 million, Edegel of Ch$57,095 million, Edelnor of Ch$36,167 million and Emgesa of Ch$26,959 million, partially compensated by prepayments of Ch$130,417 million. | ||
Pg. 21
PRESS RELEASE | ||
• | Increase in payable accounts of Ch$61,640 million due to the increase in Coelce of Ch$14,128 million, Codensa of Ch$9,859 million and the consolidation of CIEN and Fortaleza of Ch$37,061 million. | |
• | Increase in miscellaneous payable accounts of Ch$39,188 million, mostly explained by the increase in Ampla of Ch$13,109 million and of Ch$3,095 million and Ch$7,023 million related to the consolidation of Endesa Fortaleza and CIEN respectively. | |
• Long term liabilitiesdecreased of Ch$405,210 million or 10.0% due to: | ||
• | Decrease of Ch$613,174 million in the long term portion of bonds payable, due to the transfer to short term of bonds of Ch$445,478 million and the effect of the exchange rate, partially offset by new bond issuances of Ch$47,685 million. | |
This was partially compensated by: | ||
• | An increase of Ch$105,049 million in provisions, basically explained by the consolidation of Endesa Fortaleza of Ch$45,083 million and CIEN of Ch$89,097 million. |
Minority interestdecreased Ch$146,708 million, mainly explained by the effect of capital reduction in Codensa; the constitution of Endesa Brasil and the effect of the reduction in the investments in the foreign subsidiaries booked in US Dollars in accordance to Bulletin N°64.
Shareholders’ Equity increased by Ch$135,071 million. This variation is explained principally by the increase of Ch$35,631 million in retained earnings and the increase of Ch$213,215 million in net income, partially offset by the reduction of Ch$113,838 million in other reserves, due to the revaluation of the appreciation of the Chilean Peso and its effect on the equity given the difference in conversion adjustment on the investments booked in US Dollars.
Pg. 22
PRESS RELEASE | ||
DEBT MATURITY WITH THIRD PARTIES,MILLION CH$
Table 8
TOTAL | |||||||
Million Ch$ | 2006 | 2007 | 2008 | 2009 | 2010 | Balance | |
Chile | 305,371 | 27,669 | 242,434 | 341,953 | 127,477 | 1,074,749 | 2,119,652 |
Enersis | 175,977 | 1,604 | 17,879 | 1,698 | 1,698 | 431,702 | 630,558 |
Chilectra | 2 | - | - | - | - | - | 2 |
Other (*) | 2,715 | 478 | - | - | - | - | 3,193 |
Endesa Chile (**) | 126,678 | 25,586 | 224,555 | 340,255 | 125,779 | 643,047 | 1,485,899 |
Argentina | 55,620 | 48,276 | 46,189 | 26,214 | 15,819 | 12,099 | 204,217 |
Edesur | 17,144 | 22,335 | 19,854 | 3,115 | - | - | 62,447 |
Costanera | 32,342 | 24,028 | 24,421 | 21,186 | 13,906 | 7,315 | 123,197 |
Hidroinvest | 5,178 | - | - | - | - | - | 5,178 |
Ctm | - | - | - | - | - | - | - |
Tesa | 957 | 1,914 | 1,914 | 1,914 | 1,914 | 4,784 | 13,395 |
Perú | 108,664 | 64,545 | 42,059 | 40,038 | 17,898 | 87,383 | 360,587 |
Edelnor | 55,673 | 10,030 | 4,964 | 12,286 | 4,964 | 36,821 | 124,738 |
Edegel | 52,990 | 54,515 | 37,095 | 27,752 | 12,934 | 50,563 | 235,849 |
Brasil | 56,187 | 108,113 | 142,575 | 94,820 | 115,239 | 121,407 | 638,342 |
Coelce | 11,450 | 34,953 | 28,502 | 22,747 | 14,116 | 33,270 | 145,039 |
Ampla | 29,571 | 42,205 | 84,743 | 43,328 | 75,633 | 3,349 | 278,829 |
Cachoeira | 1,177 | 2,894 | 938 | - | - | - | 5,009 |
Cien | 11,827 | 23,503 | 23,503 | 23,503 | 19,867 | 39,223 | 141,425 |
Fortaleza | 2,162 | 4,558 | 4,888 | 5,243 | 5,623 | 45,565 | 68,040 |
Colombia | 63,809 | 11,951 | - | 74,877 | 32,779 | 255,062 | 438,477 |
Codensa | 8,236 | - | - | 10,243 | - | 92,190 | 110,669 |
Emgesa | 49,598 | - | - | 64,633 | - | 51,217 | 165,448 |
Betania | 5,975 | 11,951 | - | - | 32,779 | 111,654 | 162,359 |
TOTAL | 589,651 | 260,553 | 473,256 | 577,903 | 309,212 | 1,550,700 | 3,761,275 |
DEBT MATURITY WITH THIRD PARTIES,THOUSAND US$
Table 8.1
TOTAL | |||||||
Thousand US$ | 2006 | 2007 | 2008 | 2009 | 2010 | Balance | |
Chile | 566,089 | 51,292 | 449,417 | 633,904 | 236,314 | 1,992,342 | 3,929,357 |
Enersis | 326,221 | 2,973 | 33,144 | 3,148 | 3,148 | 800,278 | 1,168,912 |
Chilectra | 4 | - | - | - | - | - | 4 |
Other (*) | 5,032 | 887 | - | - | - | - | 5,919 |
Endesa Chile (**) | 234,832 | 47,432 | 416,273 | 630,756 | 233,166 | 1,192,064 | 2,754,522 |
Argentina | 103,107 | 89,492 | 85,623 | 48,595 | 29,325 | 22,429 | 378,573 |
Edesur | 31,781 | 41,403 | 36,805 | 5,775 | - | - | 115,763 |
Costanera | 59,954 | 44,542 | 45,271 | 39,273 | 25,778 | 13,561 | 228,380 |
Hidroinvest | 9,599 | - | - | - | - | - | 9,599 |
Ctm | - | - | - | - | - | - | - |
Tesa | 1,774 | 3,547 | 3,547 | 3,547 | 3,547 | 8,868 | 24,831 |
Perú | 201,438 | 119,651 | 77,968 | 74,222 | 33,179 | 161,989 | 668,447 |
Edelnor | 103,206 | 18,593 | 9,202 | 22,776 | 9,202 | 68,257 | 231,237 |
Edegel | 98,232 | 101,058 | 68,766 | 51,446 | 23,976 | 93,732 | 437,210 |
Brasil | 104,158 | 200,417 | 264,301 | 175,776 | 213,627 | 225,062 | 1,183,341 |
Coelce | 21,226 | 64,795 | 52,837 | 42,168 | 26,168 | 61,675 | 268,869 |
Ampla | 54,818 | 78,239 | 157,094 | 80,319 | 140,206 | 6,209 | 516,886 |
Cachoeira | 2,182 | 5,364 | 1,738 | - | - | - | 9,285 |
Cien | 21,924 | 43,569 | 43,569 | 43,569 | 36,828 | 72,710 | 262,170 |
Fortaleza | 4,008 | 8,449 | 9,062 | 9,719 | 10,424 | 84,468 | 126,130 |
Colombia | 118,288 | 22,154 | - | 138,805 | 60,764 | 472,827 | 812,837 |
Codensa | 15,267 | - | - | 18,989 | - | 170,900 | 205,156 |
Emgesa | 91,944 | - | - | 119,816 | - | 94,944 | 306,704 |
Betania | 11,077 | 22,154 | - | - | 60,764 | 206,982 | 300,977 |
TOTAL | 1,093,079 | 483,006 | 877,310 | 1,071,302 | 573,210 | 2,874,648 | 6,972,554 |
(*) Includes: CAM | |||||||
(**) Includes: Endesa Chile Internacional, Pangue, Pehuenche, San Isidro, Celta and Tunel El Melon. |
Pg. 23
PRESS RELEASE | ||
CONSOLIDATEDCASHFLOW
UNDER CHILEAN GAAP, MILLION CH$
Table 9
Million Ch$ | 6M 05 | 6M 06 | Var 06-05 | Chg % |
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | ||||
Net income (loss) for the year | 5,012 | 218,227 | 213,215 | - |
Gain (losses) from sales of assets: | ||||
Losses (gain) on sale of property, plant and equipment | 1,637 | (17,031) | (18,668) | - |
Charges (credits) to income which do not represent cash flows: | ||||
Depreciation | 209,142 | 206,269 | (2,873) | (1.4%) |
Amortization of intangibles | 4,382 | 4,354 | (28) | (0.6%) |
Write-offs and accrued expenses | 26,850 | 10,218 | (16,632) | (61.9%) |
Equity in income of related companies | (7,171) | (3,356) | 3,815 | 53.2% |
Equity in losses of related companies | 4,069 | 24 | (4,045) | - |
Amortization of positive goodwill | 28,063 | 27,699 | (364) | (1.3%) |
Amortization of negative goodwill | (9,063) | (3,912) | 5,151 | 56.8% |
Price-level restatement, net | 1,002 | (2,072) | (3,074) | - |
Exchange difference, net | (1,912) | (3,097) | (1,185) | (62.0%) |
Other credits to income which do not represent cash flows | (13,294) | (63,517) | (50,223) | - |
Other charges to income which do not represent cash flows | 48,598 | 48,466 | (132) | (0.3%) |
Changes in assets which affect cash flows: | - | |||
Decrease (increase) in trade receivables | (26,011) | (90,749) | (64,738) | - |
Decrease (increase) in inventory | (13,477) | (1,323) | 12,154 | 90.2% |
Decrease (increase) in other assets | 7,256 | (48,139) | (55,395) | - |
Changes in liabilities which affect cash flow: | - | |||
Decreased (increase) in payable accounts associated with operating results | (50,654) | 53,181 | 103,835 | - |
Decreased (increase) of payable interest | 23,354 | 22,767 | (587) | (2.5%) |
Decreased (increase) in income tax payable | 17,010 | (102,958) | (119,968) | - |
Decreased (increase) in other accounts payable associated with non-operating results | 39,814 | 40,483 | 669 | 1.7% |
Decreased (increase) in value added tax and other similar taxes payable, net | (22,094) | 732 | 22,826 | 103.3% |
Income (loss) attributable to minority interest | 57,530 | 162,032 | 104,502 | 181.6% |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | 330,042 | 458,297 | 128,255 | 38.9% |
Pg. 24
PRESS RELEASE | ||
Cont. Table 9
Million Ch$ | 6M 05 | 6M 06 | Var 06-05 | Chg % |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of shares issued to minorities | - | - | - | - |
Proceeds from debt issuance | 209,303 | 520,174 | 310,871 | 148.5% |
Proceeds from bond issuance | 176,145 | 54,660 | (121,485) | (69.0%) |
Proceeds from loans obtained from related companies | - | (1,269) | (1,269) | - |
Proceeds from other loans obtained from related companies | - | - | - | - |
Other sources of financing | 1,590 | 2,364 | 774 | 48.6% |
Capital paid | (84,764) | (11,730) | 73,034 | 86.2% |
Dividends paid | (74,452) | (78,665) | (4,213) | (5.7%) |
Payment of debt | (390,817) | (454,549) | (63,732) | (16.3%) |
Payment of bonds | (106,261) | (100,360) | 5,901 | 5.6% |
Payments of loans obtained from related companies | - | (6,186) | (6,186) | - |
Payments of other loans obtained from related companies | - | - | - | - |
Payments of shares issuance costs | - | - | - | - |
Payments of bonds issuance costs | (1,018) | - | 1,018 | 100.0% |
Other disbursements for financing | (4,879) | (1,036) | 3,843 | 78.8% |
NET CASH FLOW FROM FINANCING ACTIVITIES | (275,154) | (76,599) | 198,555 | 72.2% |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from sale of property, plant and equipment | 1,326 | 721 | (605) | (45.6%) |
Sale of investment | - | - | - | - |
Other loans received from related companies | 28 | - | (28) | (100.0%) |
Other receipts from investments | 2,086 | 718 | (1,368) | (65.6%) |
Additions to property, plant and equipment | (147,383) | (218,937) | (71,554) | (48.5%) |
Long-term investments | (24,561) | (12,864) | 11,697 | 47.6% |
Investment in financing instruments | - | - | - | - |
Other loans granted to related companies | - | - | - | - |
Other investment disbursements | (746) | (716) | 30 | 4.1% |
NET CASH FLOW FROM INVESTMENT ACTIVITIES | (169,250) | (231,077) | (61,827) | (36.5%) |
NET CASH FLOW FOR THE PERIOD | (114,362) | 150,621 | 264,983 | - |
EFFECT OF PRICE-LEVEL RESTATEMENT ON CASH AND CASH EQUIVALENT | 34,989 | 21,184 | (13,805) | (39.5%) |
NET VARIATION ON CASH AND CASH EQUIVALENT | (79,373) | 171,805 | 251,178 | - |
CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE YEAR | 573,160 | 364,271 | (208,889) | (36.4%) |
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD | 493,787 | 536,076 | 42,289 | 8.6% |
Pg. 25
PRESS RELEASE | ||
UNDER CHILEAN GAAP,THOUSAND US$
Table 9.1
Thousand US$ | 6M 05 | 6M 06 | Var 06-05 | Chg % |
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | ||||
Net income (loss) for the year | 9,292 | 404,544 | 395,252 | - |
Gain (losses) from sales of assets: | ||||
Losses (gain) on sale of property, plant and equipment | 3,035 | (31,572) | (34,607) | - |
Charges (credits) to income which do not represent cash flows: | ||||
Depreciation | 387,702 | 382,376 | (5,326) | (1.4%) |
Amortization of intangibles | 8,123 | 8,070 | (53) | (0.6%) |
Write-offs and accrued expenses | 49,774 | 18,942 | (30,832) | (61.9%) |
Equity in income of related companies | (13,293) | (6,221) | 7,072 | 53.2% |
Equity in losses of related companies | 7,543 | 45 | (7,498) | - |
Amortization of positive goodwill | 52,022 | 51,348 | (674) | (1.3%) |
Amortization of negative goodwill | (16,801) | (7,253) | 9,548 | 56.8% |
Price-level restatement, net | 1,857 | (3,841) | (5,698) | - |
Exchange difference, net | (3,544) | (5,741) | (2,197) | (62.0%) |
Other credits to income which do not represent cash flows | (24,644) | (117,746) | (93,102) | - |
Other charges to income which do not represent cash flows | 90,090 | 89,845 | (245) | (0.3%) |
Changes in assets which affect cash flows: | ||||
Decrease (increase) in trade receivables | (48,219) | (168,229) | (120,010) | - |
Decrease (increase) in inventory | (24,983) | (2,452) | 22,531 | 90.2% |
Decrease (increase) in other assets | 13,451 | (89,239) | (102,690) | - |
Changes in liabilities which affect cash flow: | ||||
Decreased (increase) in payable accounts associated with operating results | (93,901) | 98,585 | 192,486 | - |
Decreased (increase) of payable interest | 43,293 | 42,204 | (1,089) | (2.5%) |
Decreased (increase) in income tax payable | 31,533 | (190,861) | (222,394) | - |
Decreased (increase) in other accounts payable associated with non-operating results | 73,806 | 75,047 | 1,241 | 1.7% |
Decreased (increase) in value added tax and other similar taxes payable, net | (40,957) | 1,356 | 42,313 | 103.3% |
Income (loss) attributable to minority interest | 106,648 | 300,370 | 193,722 | 181.6% |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | 611,826 | 849,580 | 237,754 | 38.9% |
Pg. 26
PRESS RELEASE | ||
Cont. Table 9.1
Thousand US$ | 6M 05 | 6M 06 | Var 06-05 | Chg % |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of shares issued to minorities | - | - | - | - |
Proceeds from debt issuance | 388,001 | 964,285 | 576,284 | 148.5% |
Proceeds from bond issuance | 326,533 | 101,327 | (225,206) | (69.0%) |
Proceeds from loans obtained from related companies | - | (2,353) | (2,353) | - |
Proceeds from other loans obtained from related companies | - | - | - | - |
Other sources of financing | 2,948 | 4,381 | 1,433 | 48.6% |
Capital paid | (157,133) | (21,745) | 135,388 | 86.2% |
Dividends paid | (138,017) | (145,828) | (7,811) | (5.7%) |
Payment of debt | (724,487) | (842,631) | (118,144) | (16.3%) |
Payment of bonds | (196,984) | (186,045) | 10,939 | 5.6% |
Payments of loans obtained from related companies | - | (11,467) | (11,467) | - |
Payments of other loans obtained from related companies | - | - | - | - |
Payments of shares issuance costs | - | - | - | - |
Payments of bonds issuance costs | (1,887) | - | 1,887 | 100.0% |
Other disbursements for financing | (9,045) | (1,921) | 7,124 | 78.8% |
NET CASH FLOW FROM FINANCING ACTIVITIES | (510,072) | (141,998) | 368,074 | 72.2% |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from sale of property, plant and equipment | 2,458 | 1,337 | (1,121) | (45.6%) |
Sale of investment | - | - | - | - |
Other loans received from related companies | 52 | - | (52) | (100.0%) |
Other receipts from investments | 3,867 | 1,331 | (2,536) | (65.6%) |
Additions to property, plant and equipment | (273,215) | (405,861) | (132,646) | (48.5%) |
Long-term investments | (45,531) | (23,847) | 21,684 | 47.6% |
Investment in financing instruments | - | - | - | - |
Other loans granted to related companies | - | - | - | - |
Other investment disbursements | (1,383) | (1,326) | 57 | 4.1% |
NET CASH FLOW FROM INVESTMENT ACTIVITIES | (313,751) | (428,366) | (114,615) | (36.5%) |
NET CASH FLOW FOR THE PERIOD | (212,001) | 279,217 | 491,218 | - |
EFFECT OF PRICE-LEVEL RESTATEMENT ON CASH AND CASH EQUIVALENT | 64,862 | 39,271 | (25,591) | (39.5%) |
NET VARIATION ON CASH AND CASH EQUIVALENT | (147,140) | 318,488 | 465,628 | - |
CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE YEAR | 1,062,509 | 675,276 | (387,233) | (36.4%) |
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD | 915,370 | 993,764 | 78,394 | 8.6% |
Pg. 27
PRESS RELEASE | ||
CONSOLIDATEDCASHFLOWANALYSIS
During the period, the Company generated a positive net cash flow of Ch$150,621 million, comprised of the following activities:
Table 10 | ||||
Effective Cash Flow (million Ch$) | 6M05 | 6M06 | Var 06-05 | Chg % |
Operating | 330,042 | 458,297 | 128,255 | 38.9% |
Financing | (275,154) | (76,599) | 198,555 | 72.2% |
Investment | (169,250) | (231,077) | (61,827) | (36.5%) |
Net cash flow of the period | (114,362) | 150,621 | 264,983 | 231.7% |
Table 10.1 | ||||
Effective Cash Flow (thousand US$) | 6M05 | 6M06 | Var 06-05 | Chg % |
Operating | 611,823 | 849,580 | 237,757 | 38.9% |
Financing | (510,073) | (141,997) | 368,076 | 72.2% |
Investment | (313,751) | (428,365) | (114,614) | (36.5%) |
Net cash flow of the period | (212,001) | 279,217 | 491,218 | 231.7% |
Operating activities generated a net positive cash flow of Ch$458,297 million, an increase of Ch$128,255 million due to excellent operating results registered by our subsidiaries. The operating cash flow is comprised mainly of:
• | Net income for the period amounting to Ch$218,227 million, plus: | |
• | Charges of Ch$297,030 million to the income statement that do not represent cash flow and correspond mainly to the Depreciation of the period for Ch$206,269 million, write-offs and provisions for Ch$10,218 million, amortizations of positive goodwill of Ch$27,699 million, amortization of intangibles of Ch$4,353 million, losses in investments of Ch$24 million and other charges that do not represent cash flow for Ch$48,466 million, which includes the Ch$30,910 million negative conversion effect of the application of the Technical Bulletin N°64 over foreign subsidiaries. | |
• | The variation of net liabilities that affect cash flow of Ch$14,204 million. | |
• | The above was partly compensated by: | |
• | Non cash credits for Ch$63,517 million that do not represent cash flows, of which Ch$57,729 million correspond to the positive effect of the conversion of the overseas subsidiaries. | |
• | Profits on assets sale of Ch$17,031 million. | |
• | Profit on investment in related companies of Ch$3,356 million. | |
• | Negative goodwill amortization of Ch$3,912 million. | |
• | Variation in net assets that affect operating cash flow of Ch$140,211 million. |
Financing activities resulted in a negative cash flow of Ch$76,599 million mainly due to the payment of loans for a value of Ch$454,549 million, payments to the public for Ch$100,360 million, dividend payments of Ch$78,665 million, and capital distributions of subsidiaries for Ch$11,730 million. The above is partly compensated by loans obtained for Ch$520,174 million, bond issues for Ch$54,660 million and other sources of financing for Ch$2,363 million.
Pg. 28
PRESS RELEASE | ||
Investment activitieshad a net negative cash flow of Ch$231,077 million that correspond mainly to the addition of fixed assets for Ch$218,937 million, other long term investments for Ch$12,864 million and other disbursements of Ch$715 million, partially compensated by the sale of fixed assets of Ch$721 million and other investment revenues of Ch$718 million.
CASH FLOW RECEIVED FROM FOREIGN SUBSIDIARIES BY ENERSIS,CHILECTRA AND ENDESA CHILE
Table 11 | ||||||||||
Millions Ch$ | Interest Received | Dividends Received | Management Fee | Prepayment intercompany | Capital Reductions | |||||
6M05 | 6M06 | 6M05 | 6M06 | 6M05 | 6M06 | 6M05 | 6M06 | 6M05 | 6M06 | |
Argentina | 2,901 | 2,983 | - | - | 907 | 162 | - | 10,789 | - | - |
Peru | - | - | 4,658 | 4,702 | - | - | - | - | 3,765 | - |
Brazil | 1,803 | 1,658 | 19,118 | - | - | - | - | 33,569 | - | - |
Colombia | - | 19,528 | 5,542 | - | - | - | 22,986 | 93,587 | - | - |
Total | 4,703 | 24,169 | 29,319 | 4,702 | 907 | 162 | 22,986 | 137,945 | 3,765 | - |
Millions Ch$ | Total Cash Received | |
6M05 | 6M06 | |
Argentina | 3,807 | 13,933 |
Peru | 8,424 | 4,702 |
Brazil | 20,921 | 35,227 |
Colombia | 28,528 | 113,115 |
Total | 61,680 | 166,978 |
Table 11.1 | ||||||||||
Thousand US$ | Interest Received | Dividends Received | Management Fee | Prepayment Intercompany | Capital Reductions | |||||
6M05 | 6M06 | 6M05 | 6M06 | 6M05 | 6M06 | 6M05 | 6M06 | 6M05 | 6M06 | |
Argentina | 5,377 | 5,529 | - | - | 1,681 | 300 | - | 20,000 | - | - |
Peru | - | - | 8,636 | 8,717 | - | - | - | - | 6,980 | - |
Brazil | 3,342 | 3,074 | 35,440 | - | - | - | - | 62,229 | - | - |
Colombia | - | 36,200 | 10,274 | - | - | - | 42,611 | 173,490 | - | - |
Total | 8,719 | 44,803 | 54,350 | 8,717 | 1,681 | 300 | 42,611 | 255,719 | 6,980 | - |
Thousand US$ | Total Cash Received | |
6M05 | 6M06 | |
Argentina | 7,058 | 25,829 |
Peru | 15,616 | 8,717 |
Brazil | 38,782 | 65,303 |
Colombia | 52,885 | 209,690 |
Total | 114,341 | 309,539 |
Source: Internal Financial Report
Pg. 29
PRESS RELEASE | ||
CAPEX AND DEPRECIATION
Table 12
Payments for Additions of | ||||
Fixed assets | Depreciation | |||
Million Ch$ | 6M05 | 6M06 | 6M05 | 6M06 |
Endesa | 28,708 | 74,101 | 96,376 | 86,775 |
Cachoeira (*) | - | 608 | - | 7,706 |
Fortaleza (**) | - | 305 | - | 2,518 |
Cien (**) | - | 253 | - | 5,962 |
Chilectra S.A. | 19,179 | 22,616 | 7,893 | 8,719 |
Edesur S.A. | 15,579 | 15,572 | 25,045 | 22,073 |
Edelnor S.A. | 6,154 | 8,523 | 9,145 | 8,612 |
Ampla | 38,338 | 54,410 | 22,817 | 21,312 |
Coelce | 25,893 | 30,447 | 19,347 | 18,367 |
Codensa S.A. | 11,016 | 9,794 | 26,550 | 21,031 |
Cam Ltda. | 1,174 | 371 | 520 | 1,404 |
Inmobiliaria Manso de Velasco Ltda. | 99 | 526 | 186 | 171 |
Synapsis Soluciones y Servicios Ltda. | 1,195 | 1,368 | 729 | 996 |
Holding Enersis | 49 | 43 | 535 | 623 |
Total | 147,383 | 218,937 | 209,142 | 206,269 |
Table 12.1
Payments for Additions of | ||||
Fixed assets | Depreciation | |||
Thousand US$ | 6M05 | 6M06 | 6M05 | 6M06 |
Endesa | 53,218 | 137,366 | 178,659 | 160,861 |
Cahoeira (*) | - | 1,128 | - | 14,286 |
Fortaleza (**) | - | 565 | - | 4,667 |
Cien (**) | - | 469 | - | 11,053 |
Chilectra S.A. | 35,553 | 41,925 | 14,632 | 16,163 |
Edesur S.A. | 28,881 | 28,867 | 46,428 | 40,918 |
Edelnor S.A. | 11,409 | 15,800 | 16,953 | 15,965 |
Ampla | 71,070 | 100,864 | 42,298 | 39,507 |
Coelce | 48,001 | 56,442 | 35,865 | 34,048 |
Codensa S.A. | 20,421 | 18,156 | 49,218 | 38,987 |
Cam Ltda. | 2,177 | 687 | 964 | 2,603 |
Inmobiliaria Manso de Velasco Ltda. | 183 | 974 | 345 | 317 |
Synapsis Soluciones y Servicios Ltda. | 2,215 | 2,535 | 1,351 | 1,846 |
Holding Enersis | 91 | 80 | 992 | 1,155 |
Total | 273,217 | 405,859 | 387,704 | 382,376 |
(*) Consolidated by Endesa Chile until September 30th, 2005. Since October 1th is consolidated by Enersis through Endesa Brasil. | ||||
(**) Since October 1th, 2005 is consolidated by Enersis through Endesa Brasil. |
Pg. 30
PRESS RELEASE | ||
ANALYSIS OF THE EXCHANGE RISK AND THE INTEREST RATE
The company has a high percentage of its loans in US Dollars considering that an important part of its sales, in the different markets where it operates, are mainly indexed to that currency. Nevertheless, the Brazilian and Colombian markets are indexed to the US Dollar to a lower extent and, therefore, subsidiaries in those markets have most of their liabilities in local currency. In the case of Argentina, the company has chosen to replace US$ denominated debt with local currency debt, when market financial conditions best allow it.
In a scenario of a high exchange rate risk, the company has continued with its policy of partly covering its liabilities in dollars in order to mitigate the effects of the fluctuations in the exchange rate upon results. Considering the important reduction in the accounting mismatch in recent years, the company has modified its policy on Dollar-Peso hedging in order to establish a policy of covering cash flows, together with a maximum permissible accounting mismatch, on which hedging operations will be performed.
As of June 30, 2006, the company has hedged in Chile, by means of USD/UF Swap operations, an amount of US$700 million on a consolidated basis and no forward contracts, due primarily to the modification of the hedging policy. A year ago, the company had already contracted US$700 million of the total Swap Dollar-UF as part of the establishment of the new hedging policy and there were US$125 million in forward contracts.
With regard to interest rate risk, the company has, on a consolidated basis, a proportion of its indebtedness at a fixed rate/variable rate ratio of approximately 78.3% / 21.7% fixed / variable as of June 30, 2006. The percentage of its indebtedness at a fixed rate has decreased compared with the 83.4% / 16.6% ratio as of the same date in the previous year. This is due to the maturity of some interest rate coverage contracts during years 2005 and 2006, and to the incorporation in the consolidation perimeter, variable rate debt in Brazil, through the new subsidiary Endesa Brasil. Nevertheless, risk levels have remained within the hedging levels defined by the company’s policy.
Pg. 31
PRESS RELEASE | ||
ARGENTINA |
GENERATION
In the generation business, the high demand of energy has resulted in a 7% increase in our production in Argentina. We can see that the good hydrology in the country allowed Chocón to produce more than 60% primarily sold in the spot market. The increase in prices, allowed the company to improve its margin. On the other hand, Costanera increased its operating costs and reduced its revenues due to the lower energy sales. Even though, revenues on a consolidated basis in this country increased more than 15%.
To contribute to the stabilization of Argentina’s electricity market, Endesa Chile accepted to participate in the Regulator’s project FONINVEMEM to increase the safety margins in the system through the construction of two 800 megawatt combined cycle plants.
COSTANERA
Operating Income
Thousand US$ | Million Ch$ | |||||||||
6M 05 | 6M 06 | 6M 05 | 6M 06 | Chg % | ||||||
Operating Revenues | 139,525 | 148,057 | 75,265 | 79,868 | 6.1% | |||||
Operating Costs | 129,608 | 145,345 | 69,916 | 78,405 | 12.1% | |||||
Operating Margin | 9,917 | 2,712 | 5,350 | 1,463 | (72.7%) | |||||
Selling and Administrative Expenses | 1,734 | 1,798 | 935 | 970 | 3.7% | |||||
Operating Income | 8,183 | 914 | 4,414 | 493 | (88.8%) | |||||
Additional Information
Table 14
Costanera | 6M05 | 6M06 | Chg % | |||
GWh Produced | 4,818 | 4,310 | (10.5%) | |||
GWh Sold | 4,831 | 4,316 | (10.7%) | |||
Market Share | 10.4% | 8.9% | (13.9%) | |||
Pg. 32
PRESS RELEASE | ||
CHOCÓN
Operating Income
Thousand US$ | Million Ch$ | |||||||||
6M 05 | 6M 06 | 6M 05 | 6M 06 | Chg % | ||||||
Operating Revenues | 35,973 | 54,497 | 19,405 | 29,398 | 51.5% | |||||
Operating Costs | 25,363 | 26,373 | 13,682 | 14,227 | 4.0% | |||||
Operating Margin | 10,610 | 28,124 | 5,723 | 15,171 | 165.1% | |||||
Selling and Administrative Expenses | 562 | 711 | 303 | 384 | 26.5% | |||||
Operating Income | 10,047 | 27,413 | 5,420 | 14,787 | 172.8% | |||||
Additional Information
Table 16
Chocón | 6M05 | 6M06 | Chg % | |||
GWh Produced | 1,530 | 2,463 | 60.9% | |||
GWh Sold | 1,646 | 2,514 | 52.7% | |||
Market Share | 3.5% | 5.2% | 47.2% | |||
Pg. 33
PRESS RELEASE | ||
DISTRIBUTION
Edesur reported an important increased in the Operating Income, as a consequence of the accounting effect of the 28% VAD increase. This increase has been approved by Congress and currently we are waiting for the final approval of the president. Our company is facing a strong demand, increasing energy sales by 5.1%, reinforced by 26 thousand new customers and reducing energy losses.
EDESUR
Operating Income
Table 17Million US$ | Million Ch$ | |||||||||
6M 05 | 6M 06 | 6M 05 | 6M 06 | Chg % | ||||||
Revenues from Sales | 231 | 231 | 124,459 | 124,559 | 0.1% | |||||
Other Operating Revenues | 19 | 20 | 10,235 | 10,832 | 5.8% | |||||
Operating Revenues | 250 | 251 | 134,694 | 135,391 | 0.5% | |||||
Energy Purchases | (139) | (131) | (74,752) | (70,414) | 5.8% | |||||
Other Operating Cost | (77) | (65) | (41,453) | (34,946) | 15.7% | |||||
Operating Costs | (215) | (195) | (116,205) | (105,359) | 9.3% | |||||
Selling and Administrative Expenses | (31) | (30) | (16,482) | (16,369) | 0.7% | |||||
Operating Income | 4 | 25 | 2,007 | 13,663 | - | |||||
* Please take note that these figures could differ from those accounted under Argentine GAAP. |
Additional Information
Table 18
Edesur | 6M05 | 6M06 | Chg % | |||
Customers (Th) | 2,152 | 2,178 | 1.2% | |||
GWh Sold | 6,921 | 7,274 | 5.1% | |||
Clients/Employee | 947 | 921 | (2.8%) | |||
Energy Losses % (6M) | 11.0% | 10.4% | (5.7%) | |||
Energy Losses % (TTM) | 11.7% | 11.0% | (5.6%) | |||
Pg. 34
PRESS RELEASE | ||
BRAZIL |
ENDESA BRASIL
Table 19
' | ||||
Thousand US$ | Million Ch$ | |||
6M 06 | 6M 06 | |||
Revenues from Sales | 1,024,364 | 552,583 | ||
Other Operating Revenues | 30,616 | 16,515 | ||
Operating Revenues | 1,054,979 | 569,098 | ||
Energy Purchases | (475,736) | (256,631) | ||
Other Operating Cost | (247,441) | (133,480) | ||
Operating Costs | (723,178) | (390,111) | ||
Selling and Administrative Expenses | (63,216) | (34,101) | ||
Operating Income | 268,586 | 144,886 | ||
* Please take note that these figures could differ from those accounted under Brazilian GAAP. |
GENERATION
In the generation business, it is important to highlight the important increase of 39.1% in the Operating Income of Cachoeira Dourada. This strong improvement was basically attributable to higher operating revenues related to higher physical sales, higher margins and also responding to favorable hydrology, which allowed lower energy purchases.
Fortaleza, our other generation facility, diminished 26% its Operating Income basically due to the increase in Operating Costs, driven by higher energy purchase price. Our transmission company Cien, reduced its Operating Result, affected by lower physical sales.
CACHOEIRA
Operating Income
Table 20Thousand US$ | Million Ch$ | |||||||||
6M 05 | 6M 06 | 6M 05 | 6M 06 | Chg % | ||||||
Operating Revenues | 52,710 | 60,373 | 28,434 | 32,568 | 14.5% | |||||
Operating Costs | (26,680) | (28,383) | (14,392) | (15,311) | (6.4%) | |||||
Operating Margin | 26,030 | 31,990 | 14,041 | 17,257 | 22.9% | |||||
Selling and Administrative Expenses | (5,517) | (3,455) | (2,976) | (1,864) | 37.4% | |||||
Operating Income | 20,512 | 28,534 | 11,065 | 15,393 | 39.1% | |||||
* Please take note that these figures could differ from those accounted under Brazilian GAAP.
Additional Information
Table 21
Cachoeira | 6M05 | 6M06 | Chg % | |||
GWh Produced | 1,809 | 1,968 | 8.8% | |||
GWh Sold | 1,895 | 1,989 | 5.0% | |||
Market Share | 1.1% | 1.1% | 0.0% | |||
Pg. 35
PRESS RELEASE | ||
FORTALEZA
Operating Income
Table 22
Thousand US$ | Thousand US$ | Million Ch$ | Million Ch$ | |||||||
6M 05 | 6M 06 | 6M 05 | 6M 06 | Chg % | ||||||
Operating Revenues | 99,480 | 101,779 | 53,663 | 54,904 | 2.3% | |||||
Operating Costs | (49,065) | (64,082) | (26,468) | (34,568) | 30.6% | |||||
Operating Margin | 50,414 | 37,697 | 27,196 | 20,335 | (25.2%) | |||||
Selling and Administrative Expenses | (912) | (1,058) | (492) | (571) | 16.1% | |||||
Operating Income | 49,503 | 36,639 | 26,704 | 19,765 | (26.0%) | |||||
Additional Information
Table 23Fortaleza | 6M05 | 6M06 | Chg % | |||
GWh Produced | 180 | 206 | 14.4% | |||
GWh Sold | 1,334 | 1,334 | (0.0%) | |||
Market Share | 0.8% | - | ||||
Pg. 36
PRESS RELEASE | ||
TRANSMISSION
CIEN
Operating Income
Table 24
Thousand US$ | Thousand US$ | Million Ch$ | Million Ch$ | |||||||
6M 05 | 6M 06 | 6M 05 | 6M 06 | Chg % | ||||||
Operating Revenues | 195,404 | 127,697 | 105,409 | 68,885 | (34.6%) | |||||
Operating Costs | (142,251) | (116,306) | (76,736) | (62,740) | -18.2% | |||||
Operating Margin | 53,153 | 6,783 | 28,673 | 3,659 | (87.2%) | |||||
Selling and Administrative Expenses | (3,692) | (4,324) | (1,992) | (2,332) | 17.1% | |||||
Operating Income | 49,461 | 7,067 | 26,681 | 3,812 | (85.7%) | |||||
Additional Information
Table 25
CIEN | 6M05 | 6M06 | Chg % | |||
GWh Produced | - | - | - | |||
GWh Sold | 3,494 | 3,101 | (11.3%) | |||
Market Share | 1.8% | - | ||||
Pg. 37
PRESS RELEASE | ||
DISTRIBUTION
In the distribution business, our two subsidiaries, Ampla and Coelce, reported significant increases in their operating results as a consequence of higher physical sales and numbers of clients in both companies during the period, given the greater demand and lower energy losses. In that sense losses were reduced in Ampla by 4.1% and in Coelce by 5.2% . Ampla continued its gradual reduction of energy losses thanks to the technical measures being applied. Today, we have more than 330,000 clients connected under the new technical solutions, and we will continue adding new customers to reach our target of 500,000 expected by 2008.
Also, it is important to mention that the tariffs for Coelce and Ampla increased by 10.0% and 2.9%, respectively, which have been applied since April, 2006 in the case of Coelce and from March, 2006 in the case of Ampla.
AMPLA
Operating Income
Table 26Million US$ | Million Ch$ | |||||||||
6M 05 | 6M 06 | 6M 05 | 6M 06 | Chg % | ||||||
Revenues from Sales | 471 | 506 | 253,863 | 273,221 | 7.6% | |||||
Other Operating Revenues | 24 | 16 | 12,986 | 8,835 | (32.0%) | |||||
Operating Revenues | 495 | 523 | 266,849 | 282,057 | 5.7% | |||||
Energy Purchases | (243) | (230) | (131,344) | (123,959) | 5.6% | |||||
Other Operating Cost | (152) | (163) | (81,982) | (87,945) | (7.3%) | |||||
Operating Costs | (395) | (393) | (213,326) | (211,904) | 0.7% | |||||
Selling and Administrative Expenses | (21) | (16) | (11,095) | (8,850) | 20.2% | |||||
Operating Income | 79 | 114 | 42,428 | 61,303 | 44.5% | |||||
* Please take note that these figures could differ from those accounted under Brazilian GAAP. |
Additional Information
Ampla | 6M05 | 6M06 | Chg % | |||
Customers (Th) | 2,163 | 2,267 | 4.8% | |||
GWh Sold | 4,039 | 4,347 | 7.6% | |||
Clients/Employee | 1,486 | 1,638 | 10.3% | |||
Energy Losses % (6M) | 23.4% | 22.4% | (3.9%) | |||
Energy Losses % (TTM) | 22.9% | 22.0% | (4.1%) | |||
Pg. 38
PRESS RELEASE | ||
COELCE
Operating Income
Table 28
Million US$ | Million Ch$ | |||||||||
6M 05 | 6M 06 | 6M 05 | 6M 06 | Chg % | ||||||
Revenues from Sales | 292 | 385 | 157,704 | 207,881 | 31.8% | |||||
Other Operating Revenues | 7 | 7 | 3,527 | 3,873 | 9.8% | |||||
Operating Revenues | 299 | 393 | 161,231 | 211,754 | 31.3% | |||||
Energy Purchases | (144) | (177) | (77,498) | (95,353) | (23.0%) | |||||
Other Operating Cost | (78) | (94) | (41,847) | (50,810) | (21.4%) | |||||
Operating Costs | (221) | (271) | (119,345) | (146,162) | (22.5%) | |||||
Selling and Administrative Expenses | (36) | (35) | (19,463) | (18,649) | 4.2% | |||||
Operating Income | 42 | 87 | 22,423 | 46,943 | 109.3% | |||||
* Please take note that these figures could differ from those accounted under Brazilian GAAP. |
Additional Information
Table 29Coelce | 6M05 | 6M06 | Chg % | |||
Customers (Th) | 2,378 | 2,481 | 4.3% | |||
GWh Sold | 3,177 | 3,249 | 2.3% | |||
Clients/Employee | 1,772 | 1,888 | 6.6% | |||
Energy Losses % (6M) | 14.1% | 12.9% | (8.0%) | |||
Energy Losses % (TTM) | 14.2% | 13.5% | (5.2%) | |||
Pg. 39
PRESS RELEASE | ||
CHILE |
GENERATION
Operating Income for the Chilean operations increased 114.9% . This positive variation is explained as a result of node prices averaging over US$60.69 per MWh, and a higher spot energy prices due to an strong demand and the constant cuts in natural gas supplies from Argentina. The good hydrology enabled Endesa Chile to increase the proportion of hydraulic generation while at the same time reducing its thermal generation, allowing reducing operating costs by 12.6% .
In relation to long term investment projects, Endesa Chile, who signed a join venture agreement with Colbun, is currently studying the feasibility of building 2.355 MW of hydroelectric capacity in the southern area of Chile
ENDESA CHILE
Consolidated Income Statement
Table 30
Million US$ | Million Ch$ | |||||||||
6M05 | 6M06 | 6M05 | 6M06 | Chg % | ||||||
Operating Revenues | 1,114 | 1,181 | 600,819 | 637,050 | 6.0% | |||||
Operating Costs | (726) | (697) | (391,431) | (375,808) | 4.0% | |||||
Selling and Administrative Expenses | (39) | (35) | (20,823) | (18,695) | 10.2% | |||||
Operating Income | 350 | 450 | 188,565 | 242,547 | 28.6% | |||||
Interest Income | 19 | 13 | 10,031 | 6,848 | (31.7%) | |||||
Interest Expenses | (191) | (163) | (102,880) | (88,192) | 14.3% | |||||
Net Financial Income (Expenses) | (172) | (151) | (92,849) | (81,343) | 12.4% | |||||
Equity Gains from Related Company | 10 | 40 | 5,374 | 21,461 | - | |||||
Equity Losses from Related Company | (8) | (0) | (4,129) | (6) | 99.9% | |||||
Net Income from Related Companies | 2 | 40 | 1,245 | 21,455 | - | |||||
Other Non Operating Income | 41 | 121 | 22,282 | 65,071 | 192.0% | |||||
Other Non Operating Expenses | (50) | (37) | (27,196) | (19,976) | 26.5% | |||||
Net other Non Operating Income (Expenses) | (9) | 84 | (4,914) | 45,095 | - | |||||
Price Level Restatement | 3 | 3 | 1,442 | 1,630 | 0.0% | |||||
Foreign Exchange Effect | (0) | (3) | (157) | (1,733) | - | |||||
Net of Monetary Exposure | 2 | (0) | 1,285 | (103) | (108.0%) | |||||
Positive Goodwill Amortization | (1) | (1) | (787) | (475) | 39.6% | |||||
Non Operating Income | (178) | (28) | (96,020) | (15,372) | 84.0% | |||||
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 172 | 421 | 92,544 | 227,175 | 145.5% | |||||
Extraordinary Items | - | - | - | - | - | |||||
Income Tax | (84) | (109) | (45,576) | (58,931) | (29.3%) | |||||
Minority Interest | (44) | (89) | (23,683) | (47,826) | (101.9%) | |||||
Negative Goodwill Amortization | 17 | 7 | 8,955 | 3,892 | (56.5%) | |||||
NET INCOME | 60 | 230 | 32,241 | 124,310 | 285.6% | |||||
Pg. 40
PRESS RELEASE | ||
Additional Information
Table 31
Chilean Companies | 6M05 | 6M06 | Chg % | |||
GWh Produced | 8,437 | 9,147 | 8.4% | |||
GWh Sold | 9,171 | 9,632 | 5.0% | |||
Market Share | 37.6% | 38.8% | 3.1% | |||
Endesa-Chile Parent Company Financial Debt Maturity (with third party)
US$ 2,755 million
Pg. 41
PRESS RELEASE | ||
DISTRIBUTION
Chilectra reported a 9.2% increase in operating income. This improvement is explained mainly by higher sales, and the increase of more than 34,000 new clients. It’s important to mention, that in April 18, 2006, Chilectra began the auction of 49.720 GWh, for a period of 11 years, starting the year 2010.
CHILECTRA
Income Statement
Table 32
Million US$ | Million Ch$ | |||||||||
6M 05 | 6M 06 | 6M 05 | 6M 06 | Chg % | ||||||
Revenues from Sales | 465 | 549 | 250,767 | 296,247 | 18.1% | |||||
Other Operating Revenues | 38 | 41 | 20,345 | 22,145 | 8.8% | |||||
Operating Revenues | 503 | 590 | 271,112 | 318,392 | 17.4% | |||||
Energy Purchases | (316) | (386) | (170,603) | (208,432) | (22.2%) | |||||
Other Operating Cost | (51) | (54) | (27,293) | (29,226) | (7.1%) | |||||
Operating Costs | (367) | (441) | (197,897) | (237,658) | (20.1%) | |||||
Selling and Administrative Expenses | (36) | (41) | (19,480) | (22,056) | (13.2%) | |||||
Operating Income | 100 | 109 | 53,735 | 58,678 | 9.2% | |||||
Interest Income | 2 | 3 | 1,049 | 1,473 | 40.4% | |||||
Interest Expenses | (30) | (24) | (16,315) | (13,140) | 19.5% | |||||
Net Financial Income (Expenses) | (28) | (22) | (15,266) | (11,666) | 23.6% | |||||
Equity Gains from Related Company | 9 | 27 | 4,886 | 14,467 | 196.1% | |||||
Equity Losses from Related Company | (30) | (0) | (16,134) | (158) | 99.0% | |||||
Net Income from Related Companies | (21) | 27 | (11,248) | 14,309 | - | |||||
Other Non Operating Income | 8 | 8 | 4,228 | 4,295 | 1.6% | |||||
Other Non Operating Expenses | (4) | (5) | (2,066) | (2,650) | (28.2%) | |||||
Conversion Effect (BT 64) | - | - | - | - | ||||||
Net other Non Operating Income (Expenses) | 4 | 3 | 2,162 | 1,646 | (23.9%) | |||||
Price Level Restatement | (6) | (2) | (3,310) | (1,285) | 61.2% | |||||
Foreign Exchange Effect | - | - | - | - | ||||||
Net of Monetary Exposure | (6) | (2) | (3,310) | (1,285) | 61.2% | |||||
Positive Goodwill Amortization | (1) | (1) | (321) | (299) | 6.9% | |||||
Non Operating Income | (52) | 5 | (27,983) | 2,705 | 109.7% | |||||
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 48 | 114 | 25,752 | 61,383 | 138.4% | |||||
Extraordinary Items | - | - | - | - | ||||||
Income Tax | (25) | 184 | (13,225) | 99,452 | - | |||||
Minority Interest | 2 | 2 | 1,230 | 828 | (32.6%) | |||||
Negative Goodwill Amortization | - | - | - | - | ||||||
NET INCOME | 26 | 300 | 13,757 | 161,664 | 1,075.1% | |||||
Additional Information
Table 33
Chilectra | 6M05 | 6M06 | Chg % | |||
Customers (Th) | 1,388 | 1,422 | 2.4% | |||
GWh Sold | 5,809 | 6,087 | 4.8% | |||
Clients/Employee | 1,989 | 1,978 | (0.5%) | |||
Energy Losses % (6M) | 5.4% | 5.3% | (1.9%) | |||
Energy Losses % (TTM) | 5.3% | 5.4% | 2.1% | |||
Pg. 42
PRESS RELEASE | ||
COLOMBIA |
GENERATION
In the generation business in this country, the Operating Result showed a decrease, mainly explained by the reduction of Operating Revenues in Emgesa, due to the lower physical sales, and by the lower spot prices given the good hydrology. This effect was partially compensated by the reduction of Operating Costs, explained by lower energy purchases.
The attractiveness of the Colombian market, let Endesa Chile, on March 2, 2006, to buy the Thermal Plant name Termocartagena, a 203 MW plant, investing around US$17 million, and announced an additional investment plan of roughly US$15 million to pay debts and repair the plant, improving its generation mix and commercial strategy.
BETANIA
Operating Income
Table 34 | ||||||||||
Thousand US$ | Million Ch$ | |||||||||
6M 05 | 6M 06 | 6M 05 | 6M 06 | Chg % | ||||||
Operating Revenues | 37,123 | 32,021 | 20,026 | 17,273 | (13.7%) | |||||
Operating Costs | 19,516 | 18,407 | 10,528 | 9,929 | (5.7%) | |||||
Operating Margin | 17,607 | 13,614 | 9,498 | 7,344 | (22.7%) | |||||
Selling and Administrative Expenses | 384 | 599 | 207 | 323 | 56.0% | |||||
Operating Income | 17,223 | 13,015 | 9,291 | 7,021 | (24.4%) | |||||
* Please take note that these figures could differ from those accounted under Colombian GAAP. |
Additional Information
Table 35
Betania | 6M05 | 6M06 | Chg % | |||
GWh Produced | 1,029 | 1,189 | 15.5% | |||
GWh Sold | 1,278 | 1,527 | 19.4% | |||
Market Share | 3.8% | 4.4% | 17.6% | |||
Betania Financial Debt Maturity (with third party)
US$ 301 million
Pg. 43
PRESS RELEASE | ||
EMGESA
Operating Income
Table 36 | ||||||||||
Thousand US$ | Million Ch$ | |||||||||
6M 05 | 6M 06 | 6M 05 | 6M 06 | Chg % | ||||||
Operating Revenues | 231,042 | 207,066 | 124,633 | 111,700 | (10.4%) | |||||
Operating Costs | 115,077 | 112,451 | 62,077 | 60,661 | (2.3%) | |||||
Operating Margin | 115,965 | 94,615 | 62,556 | 51,039 | (18.4%) | |||||
Selling and Administrative Expenses | 3,553 | 3,542 | 1,917 | 1,911 | (0.3%) | |||||
Operating Income | 112,412 | 91,073 | 60,639 | 49,128 | (19.0%) | |||||
* Please take note that these figures could differ from those accounted under Colombian GAAP. |
Additional Information
Table 37
Emgesa | 6M05 | 6M06 | Chg % | |||
GWh Produced | 4,914 | 4,869 | (0.9%) | |||
GWh Sold | 6,186 | 5,818 | (5.9%) | |||
Market Share | 18.5% | 16.9% | (8.5%) | |||
Emgesa Financial Debt Maturity (with third party)
US$ 307 million
Pg. 44
PRESS RELEASE | ||
DISTRIBUTION
In the distribution business, our subsidiary Codensa registered an increase in operating income basically associated to a 5.7% increase in physical sales, as well as lower operating costs. In addition, our portfolio of customers increased by 65,000 and energy losses decreased 5.6% .
CODENSA
Operating Income
Table 38 | ||||||||||
Million US$ | Million Ch$ | |||||||||
6M 05 | 6M 06 | 6M 05 | 6M 06 | Chg % | ||||||
Revenues from Sales | 323 | 306 | 174,380 | 165,187 | (5.3%) | |||||
Other Operating Revenues | 87 | 88 | 46,713 | 47,673 | 2.1% | |||||
Operating Revenues | 410 | 395 | 221,094 | 212,860 | (3.7%) | |||||
Energy Purchases | (186) | (173) | (100,341) | (93,253) | 7.1% | |||||
Other Operating Cost | (113) | (98) | (60,890) | (52,689) | 13.5% | |||||
Operating Costs | (299) | (271) | (161,231) | (145,943) | 9.5% | |||||
Selling and Administrative Expenses | (11) | (14) | (6,161) | (7,777) | (26.2%) | |||||
Operating Income | 100 | 110 | 53,702 | 59,140 | 10.1% | |||||
* Please take note that these figures could differ from those accounted under Colombian GAAP. |
Additional Information
Table 39
Codensa | 6M05 | 6M06 | Chg % | |||
Customers (Th) | 2,042 | 2,107 | 3.2% | |||
GWh Sold | 4,914 | 5,193 | 5.7% | |||
Clients/Employee | 2,363 | 2,288 | (3.2%) | |||
Energy Losses % (6M) | 9.5% | 9.1% | (4.9%) | |||
Energy Losses % (TTM) | 9.8% | 9.2% | (5.6%) | |||
Codensa Financial Debt Maturity (with third party)
US$ 205 million
Pg. 45
PRESS RELEASE | ||
PERU |
GENERATION
Our subsidiary Edegel, reported a decrease in its operating result. While the electricity production increased by 37.8% and physical sales by 32.2%, operating revenues increased 21.7% due to a 15% growth in spot market sales. Higher thermo production driven by a lower hydrology and higher sales increased operating costs by 51.7% .
EDEGEL
Operating Income
Table 40 | ||||||||||
Thousand US$ | Million Ch$ | |||||||||
6M 05 | 6M 06 | 6M 05 | 6M 06 | Chg % | ||||||
Operating Revenues | 123,876 | 150,785 | 66,824 | 81,339 | 21.7% | |||||
Operating Costs | 56,628 | 85,926 | 30,547 | 46,352 | 51.7% | |||||
Operating Margin | 67,248 | 64,859 | 36,276 | 34,988 | (3.6%) | |||||
Selling and Administrative Expenses | 8,370 | 10,328 | 4,515 | 5,571 | 23.4% | |||||
Operating Income | 58,878 | 54,531 | 31,761 | 29,416 | (7.4%) | |||||
* Please take note that these figures could differ from those accounted under Peruvian GAAP. |
Additional Information
Table 41
Edegel | 6M05 | 6M06 | Chg % | |||
GWh Produced | 2,266 | 3,123 | 37.8% | |||
GWh Sold | 2,379 | 3,145 | 32.2% | |||
Market Share | 24.9% | 29.0% | 16.8% | |||
Edegel Financial Debt Maturity (with third party)
US$ 437 million
Pg. 46
PRESS RELEASE | ||
DISTRIBUTION
Our Edelnor slightly increase its operating income. During this period, our company increased its physical sales by 7.1% . The number of clients increased in almost 21,000 new customers. On the other hand, the tariff revision process ended in November 2005, concluded with no changes. The next tariff setting process will take place in 2009. The recent law, called “libro blanco”, was recently approved by the congress. This new regulatory framework will enhance our business in this country, creating new opportunities and bringing Peru a solid and transparent scenario to develop the electric business.
EDELNOR
Operating Income
Table 42 | ||||||||||
Million US$ | Million Ch$ | |||||||||
6M 05 | 6M 06 | 6M 05 | 6M 06 | Chg % | ||||||
Revenues from Sales | 204 | 190 | 109,932 | 102,601 | (6.7%) | |||||
Other Operating Revenues | 4 | 5 | 2,420 | 2,854 | 17.9% | |||||
Operating Revenues | 208 | 195 | 112,353 | 105,455 | (6.1%) | |||||
Energy Purchases | (135) | (122) | (72,741) | (65,887) | 9.4% | |||||
Other Operating Cost | (24) | (23) | (12,976) | (12,220) | 5.8% | |||||
Operating Costs | (159) | (145) | (85,717) | (78,108) | 8.9% | |||||
Selling and Administrative Expenses | (19) | (19) | (10,162) | (10,035) | 1.2% | |||||
Operating Income | 31 | 32 | 16,474 | 17,312 | 5.1% | |||||
* Please take note that these figures could differ from those accounted under Peruvian GAAP. |
Additional Information
Table 43
Edelnor | 6M05 | 6M06 | Chg % | |||
Customers (Th) | 915 | 936 | 2.3% | |||
GWh Sold | 2,240 | 2,398 | 7.1% | |||
Clients/Employee | 1,713 | 1,721 | 0.5% | |||
Energy Losses % (6M) | 8.5% | 8.4% | (1.1%) | |||
Energy Losses % (TTM) | 8.5% | 8.1% | (4.1%) | |||
Edelnor Financial Debt Maturity (with third party)
US$ 231 million
Pg. 47
PRESS RELEASE | ||
PARTIALLY CONSOLIDATED INCOME STATEMENT
(Parent Company Consolidated with Enersis International First Half 2006 Earnings Report)
UNDER CHILEAN GAAP,MILLION CH$
Table 44 | ||||||||||||
2Q 06 | 2Q 05 | Var % | (in million Ch$ of 1H06) | 6M 06 | 6M 05 | Var % | ||||||
847 | 889 | (4.8%) | Gross Operating Margin | 1,682 | 1,765 | (4.8%) | ||||||
(4,682) | (4,303) | (8.8%) | S&A Expenses | (8,400) | (7,585) | (10.7%) | ||||||
(3,835) | (3,414) | (12.3%) | Operating Income | (6,718) | (5,820) | (15.4%) | ||||||
54,455 | 9,302 | 485.4% | Endesa | 74,562 | 19,339 | 285.6% | ||||||
129,523 | 19,291 | 571.4% | Chilectra | 146,906 | 28,827 | 409.6% | ||||||
860 | (5,535) | 115.5% | Edesur | 616 | (8,807) | 107.0% | ||||||
224 | 1,584 | (85.8%) | Edelnor | 591 | 2,722 | (78.3%) | ||||||
2,601 | (17,070) | (115.2%) | Ampla | 6,111 | (18,698) | 132.7% | ||||||
- | (194) | (100.0%) | Coelce | - | 253 | (100.0%) | ||||||
7,025 | 4,273 | 64.4% | Codensa | 10,737 | 7,519 | 42.8% | ||||||
241 | 490 | (50.8%) | CAM LTDA | 1,521 | 1,902 | (20.0%) | ||||||
1,680 | 667 | 151.8% | Inm Manso de Velasco | 1,719 | 946 | 81.7% | ||||||
(82) | 1,082 | (107.6%) | Synapsis | 1,017 | 1,916 | (46.9%) | ||||||
9,337 | - | - | Endesa Brasil | 13,819 | - | - | ||||||
- | (444) | (100.0%) | CGTF | - | 1,775 | (100.0%) | ||||||
(107,065) | (4,652) | (2201.6%) | Other | - | (4,338) | 100.0% | ||||||
98,799 | 8,795 | 1023.3% | Net Income from Related Companies | 257,599 | 33,356 | 672.3% | ||||||
11,497 | 13,502 | (14.9%) | Interest Income | 22,501 | 26,575 | (15.3%) | ||||||
(15,550) | (16,668) | 6.7% | Interest Expense | (30,458) | (35,130) | 13.3% | ||||||
(4,054) | (3,165) | (28.1%) | Net Financial Income (Expenses) | (7,958) | (8,555) | 7.0% | ||||||
1,933 | 5,997 | (67.8%) | Other Non Operating Income | 3,480 | 8,239 | (57.8%) | ||||||
(235) | 7,024 | (103.3%) | Other Non Operating Expenses | (1,696) | (3,405) | 50.2% | ||||||
1,698 | 13,021 | (87.0%) | Net other Non Operating Income (Expenses) | 1,784 | 4,834 | (63.1%) | ||||||
(807) | (520) | (55.1%) | Price Level Restatement | (464) | (701) | 33.9% | ||||||
1,836 | (5,872) | 131.3% | Foreign Exchange Effect | 6,921 | 3,986 | 73.6% | ||||||
1,029 | (6,392) | 116.1% | Net Monetary Exposure | 6,457 | 3,285 | 96.6% | ||||||
(13,649) | (13,661) | 0.1% | Positive Goodwill Amortization | (26,922) | (26,952) | 0.1% | ||||||
83,824 | (1,401) | 6081.3% | Non Operating Income | 230,960 | 5,969 | 3769.2% | ||||||
79,988 | (4,815) | 1761.1% | Net Income before (1), (2) & (3) | 224,242 | 149 | - | ||||||
(2,963) | 1,784 | (266.0%) | Income Tax (1) | (6,035) | 4,842 | (224.6%) | ||||||
10 | 11 | (3.9%) | Negative Goodwill Amortization (2) | 20 | 21 | (6.2%) | ||||||
- | - | NA | Minority Interest (3) | - | - | NA | ||||||
77,036 | (3,020) | 2650.6% | NET INCOME | 218,227 | 5,012 | 4254.1% | ||||||
2.36 | (0.09) | EPS (Ch$) | 6.68 | 0.15 | ||||||||
0.22 | (0.01) | EPADS (US$) | 0.62 | 0.01 | ||||||||
32,651,166 | 32,651,166 | Common Shares Outstanding (Th) | 32,651,166 | 32,651,166 | ||||||||
Pg. 48
PRESS RELEASE | ||
UNDER CHILEAN GAAP,THOUSAND US$
Table 44.1 | ||||||||||||
2Q 06 | 2Q 05 | Var % | (in thousand US$ of 1H06) | 6M 06 | 6M 05 | Var % | ||||||
1,570 | 1,649 | (4.8%) | Gross Operating Margin | 3,117 | 3,273 | (4.8%) | ||||||
(8,680) | (7,978) | (8.8%) | S&A Expenses | (15,571) | (14,062) | (10.7%) | ||||||
(7,109) | (6,329) | (12.3%) | Operating Income | (12,454) | (10,789) | (15.4%) | ||||||
100,947 | 17,245 | 485.4% | Endesa | 138,222 | 35,850 | 285.6% | ||||||
240,106 | 35,762 | 571.4% | Chilectra | 272,331 | 53,438 | 409.6% | ||||||
1,594 | (10,260) | 115.5% | Edesur | 1,141 | (16,325) | 107.0% | ||||||
416 | 2,936 | (85.8%) | Edelnor | 1,095 | 5,046 | (78.3%) | ||||||
4,822 | (31,645) | (115.2%) | Ampla | 11,328 | (34,661) | 132.7% | ||||||
- | (360) | (100.0%) | Coelce | - | 469 | (100.0%) | ||||||
13,023 | 7,921 | 64.4% | Codensa | 19,905 | 13,938 | 42.8% | ||||||
447 | 909 | (50.8%) | CAM LTDA | 2,820 | 3,525 | (20.0%) | ||||||
3,115 | 1,237 | 151.8% | Inm Manso de Velasco | 3,187 | 1,754 | 81.7% | ||||||
(153) | 2,006 | (107.6%) | Synapsis | 1,885 | 3,552 | (46.9%) | ||||||
17,308 | - | - | Endesa Brasil | 25,617 | - | - | ||||||
- | (824) | (100.0%) | CGTF | - | 3,291 | (100.0%) | ||||||
(198,474) | (8,623) | (2201.6%) | Others | - | (8,041) | 100.0% | ||||||
183,150 | 16,305 | 1023.3% | Net Income from Related Companies | 477,530 | 61,835 | 672.3% | ||||||
21,312 | 25,030 | (14.9%) | Interest Income | 41,711 | 49,265 | (15.3%) | ||||||
(28,827) | (30,898) | 6.7% | Interest Expense | (56,463) | (65,123) | 13.3% | ||||||
(7,515) | (5,868) | (28.1%) | Net Financial Income (Expenses) | (14,752) | (15,858) | 7.0% | ||||||
3,584 | 11,117 | (67.8%) | Other Non Operating Income | 6,450 | 15,273 | (57.8%) | ||||||
(435) | 13,022 | (103.3%) | Other Non Operating Expenses | (3,143) | (6,311) | 50.2% | ||||||
3,149 | 24,138 | (87.0%) | Net other Non Operating Income (Expenses) | 3,307 | 8,962 | (63.1%) | ||||||
(1,495) | (964) | (55.1%) | Price Level Restatement | (860) | (1,300) | 33.9% | ||||||
3,403 | (10,886) | 131.3% | Foreign Exchange Effect | 12,830 | 7,388 | 73.6% | ||||||
1,908 | (11,850) | 116.1% | Net Monetary Exposure | 11,970 | 6,089 | 96.6% | ||||||
(25,302) | (25,324) | 0.1% | Positive Goodwill Amortization | (49,908) | (49,962) | 0.1% | ||||||
155,390 | (2,598) | 6081.3% | Non Operating Income | 428,147 | 11,065 | 3769.2% | ||||||
148,280 | (8,927) | 1761.1% | Net Income before (1), (2) & (3) | 415,693 | 277 | - | ||||||
(5,492) | 3,308 | (266.0%) | Income Tax (1) | (11,187) | 8,975 | (224.6%) | ||||||
19 | 20 | (3.9%) | Negative Goodwill Amortization (2) | 37 | 40 | (6.2%) | ||||||
- | - | NA | Minority Interest (3) | - | - | NA | ||||||
142,807 | (5,599) | 2650.6% | NET INCOME | 404,542 | 9,294 | 4254.1% | ||||||
2.36 | (0.09) | EPS (Ch$) | 6.68 | 0.15 | ||||||||
0.22 | (0.01) | EPADS (US$) | 0.62 | 0.01 | ||||||||
32,651,166 | 32,651,166 | Common Shares Outstanding (Th) | 32,651,166 | 32,651,166 | ||||||||
Pg. 49
PRESS RELEASE | ||
OWNERSHIP OF THE COMPANY AS OF JUNE 30,2006
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, July 28, 2006, at 12:00 PM New York time (12:00 PM Chilean Time). To participate, please dial +1 (617) 213-8058 or +1 (866) 578-5801 (toll free USA), approximately 10 minutes prior to the scheduled start time, Passcode ID: 43570297
The phone replay will be available since July 28, 2006, until August 4, 2006, dialing +1 (617) 801-6888 or 1+ (888) 286-8010 (toll free USA) Passcode ID: 66637643
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”.
Pg. 50
PRESS RELEASE | ||
CONTACT INFORMATION
For further information, please contact us:
Susana Rey
Head of Investor Relations
srm@e.enersis.cl
56 (2) 353 4554
Cristian Palacios | Marcela Muñoz | Ignacio Gonzalez | Carmen Poblete |
Investor Relations | Investor Relations | Investor Relations | Investor Relations |
Representative | Representative | Representative | Representative |
cpg1@e.enersis.cl | mml1@e.enersis.cl | ijgr@e.enersis.cl | cpt@e.enersis.cl |
56 (2) 353 4492 | 56 (2) 353 4555 | 56 (2) 353 4552 | 56 (2) 353 4447 |
Maria Luz 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.
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. | ||
By: /s/ Mario Valcarce | ||
-------------------------------------------------- | ||
Name: | Mario Valcarce | |
Title: | Chief Executive Officer |
Date: July. 31, 2006