FORM 6-K
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of October, 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 NINE MONTHS ENDED SEPTEMBER 30, 2006
HIGHLIGHTS FOR THE PERIOD
[All figures in Chilean Pesos]
- Operating Revenues increased by 18% to Ch$ 2,905,426 million, as a consequence of higher operating revenues in distribution business and the higher level of generation in order to supply an increasing energetic demand.
- Operating Income improved 32% totaling Ch$ 797,941 million, and the increase by country is as follows:
- Chile 44%
- Argentina 57%
- Brazil 57%
- Colombia 9%
- Peru 1%
- The ratio of Operating Margin to Revenues rose from 30% to 33%.
- Net income, before taxes, increased 96%, reaching Ch$ 539,494 million.
- Net income grew 6.3 times, reaching Ch$ 243,506 million, related primarily to a strong 32% growth in Operating Income and to a 22% decrease in non-operating expense.
- EBITDA grew by 23% reaching Ch$ 1,115,826 million.
- Interest coverage improved 22% reaching to 4.3 times, in line with investment grade level companies.
- ROE increased 5.9 times reaching 9% and ROA increased 5.9 times reaching 2%. These measures take into account net income for the first nine months of each year and have not been annualized.
- Net cash flow provided by operating activities increased by 16% to Ch$ 622,511 million.
- Physical sales continued growing, in line with the stable economic situation in the region, with an increase of 5% in physical sales in distribution and 23% in generation and transmission.
- Electricity sales in GWh (for distribution) grew in all our concession areas, as follows:
- Santiago 4%
- Buenos Aires 5%
- Bogotá 6%
- Rio de Janeiro & Fortaleza 5%
- Lima 7%
- Our client base in distribution has been increased by more than 350 thousand new customers.
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TABLE OF
CONTENTS
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GENERAL INFORMATION
(Santiago, Chile, October 26, 2006) Enersis S.A. (NYSE: ENI), announced today its consolidated financial results for the nine months ended September 30, 2006. All figures are in both US$ and Ch$, under Chilean Generally Accepted Accounting Principles (Chilean GAAP), as seen in the standardized form required by Chilean authorities (FECU). Variations refer to the period between September 30, 2005 and September 30, 2006. 2005 figures have been adjusted by the accounting convention for CPI variation between both periods, equal to 3.8% .
For the purpose of converting Chilean pesos (Ch$) into US dollars (US$), we have used the exchange rate prevailing as of September 30, 2006 for both periods under comparison, equal to US$1 = Ch$537.03 The Chilean peso depreciated by 1.5% against the US$ comparing September 30, 2006 with September 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 variations, and comments on the main items in the Income and Cash Flow Statements compared to the information as of September 2005.
[*] Consolidated since October 2005 and including Endesa Fortaleza, CIEN, Cachoeira Dourada, Ampla and Coelce.
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SIMPLIFIEDORGANIZATIONALSTRUCTURE
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MARKET INFORMATION
EQUITYMARKET
The chart below shows the behavior of Enersis stock listing in NYSE (“ENI”) against Dow Jones and the DJ Utilities benchmarks:
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Over the last 12 months, the Enersis’ Chilean share price increased by 17.9%, from Ch$ 120.65 to Ch$ 142.25. This variation is compared with the 5.9% 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 from € 9.40 to € 10.44. The chart below shows the behavior of XENI stock listing in the Madrid Stock Exchange against Latibex.
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MARKETPERCEPTION
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$ | ||||||||
August 7, 2006 | Penta Inversiones | Oscar Boettiger | 12.9 | Attractive | ||||
August 21, 2006 | Bear Stearn | Rowe Michels | 14.5 | Outperform | ||||
August 29, 2006 | Deutsche Bank | Marcus Sequeira | 16.0 | Buy | ||||
August 31, 2006 | Raymond James | Ricardo Cavanagh | 15.0 | Buy | ||||
September 4, 2006 | Banchile | Sergio Zapata | 14.0 | Hold | ||||
September 19, 2006 | Santander | Raimundo Valdes | 14.6 | Buy | ||||
October 16, 2006 | Alfa Corredores | Rodrigo Cristi | 13.8 | Hold | ||||
October 23, 2006 | Merrill Lynch | Frank McGann | 15.0 | Buy | ||||
ADR average target price (US$) | 14.5 | |||||||
Source: Bloomberg and market researches
DEBTMARKET
The following chart shows the pricing of our Yankee Bonds during the last twelve months.
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RISKRATINGCLASSIFICATION
CORPORATE RISK RATING CLASSIFICATION:
Moody’s: Ba1 / Review for possible upgrade
Rationale (18/10/06)
“Moody's Investors Service placed the senior unsecured Ba1 debt ratings of ENERSIS S.A. ("Enersis"), and Endesa Chile under review for possible upgrade”…….”The rating action is prompted by a number of credit considerations. The financial performance of both Enersis and Endesa Chile has improved markedly over the last two years as a result of improvements in the regulatory framework and increased demand for electricity in the countries in which the companies operate: Chile, Colombia, Peru, Brazil and Argentina”
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 |
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CONSOLIDATED INCOME STATEMENT
UNDER CHILEAN GAAP, MILLION CH$
Table 2
CONS. INCOME STATEMENT - (million Ch$) | 9M 05 | 9M 06 | Var 06-05 | Chg % | ||||
Revenues from Generation & Transmission | 889,900 | 1,211,179 | 321,279 | 36.1% | ||||
Revenues from Distribution | 1,708,556 | 1,905,019 | 196,463 | 11.5% | ||||
Revenues from Engineering and Real Estate | 21,514 | 35,290 | 13,776 | 64.0% | ||||
Revenues from Other Businesses | 120,019 | 143,859 | 23,840 | 19.9% | ||||
Consolidation Adjustments | (268,362) | (389,921) | (121,559) | (45.3%) | ||||
Operating Revenues | 2,471,627 | 2,905,426 | 433,799 | 17.6% | ||||
Costs from Generation | (557,803) | (759,236) | (201,433) | (36.1%) | ||||
Costs from Distribution | (1,290,900) | (1,394,960) | (104,060) | (8.1%) | ||||
Costs from Engineering and Real Estate | (17,591) | (26,789) | (9,198) | (52.3%) | ||||
Costs from Other Businesses | (96,739) | (121,976) | (25,237) | (26.1%) | ||||
Consolidation Adjustments | 244,947 | 365,104 | 120,157 | 49.1% | ||||
Operating Costs | (1,718,086) | (1,937,857) | (219,771) | (12.8%) | ||||
Operating Margin | 753,541 | 967,569 | 214,028 | 28.4% | ||||
SG&A from Generation | (29,265) | (37,923) | (8,658) | (29.6%) | ||||
SG&A from Distribution | (116,467) | (127,485) | (11,018) | (9.5%) | ||||
SG&A from Engineering and Real Estate | (2,388) | (2,654) | (266) | (11.2%) | ||||
SG&A from Other Businesses | (23,980) | (28,460) | (4,480) | (18.7%) | ||||
Consolidation Adjustments | 24,544 | 26,894 | 2,350 | 9.6% | ||||
Selling and Administrative Expenses | (147,555) | (169,628) | (22,073) | (15.0%) | ||||
Operating Income | 605,986 | 797,941 | 191,955 | 31.7% | ||||
Interest Income | 59,214 | 96,929 | 37,715 | 63.7% | ||||
Interest Expense | (275,240) | (287,243) | (12,003) | (4.4%) | ||||
Net Interest (Expense) | (216,026) | (190,313) | 25,713 | 11.9% | ||||
Equity Gains from Related Companies | 13,954 | 4,371 | (9,583) | (68.7%) | ||||
Equity Losses from Related Companies | (8,839) | (187) | 8,653 | 97.9% | ||||
Net Income from Related Companies | 5,115 | 4,184 | (931) | (18.2%) | ||||
Other Non Operating Income | 65,033 | 105,326 | 40,293 | 62.0% | ||||
Other Non Operating Expenses | (134,882) | (142,417) | (7,535) | (5.6%) | ||||
Net other Non Operating Income (Expense) | (69,850) | (37,092) | 32,758 | 46.9% | ||||
Price Level Restatement | (1,579) | 376 | 1,955 | N/A | ||||
Foreign Exchange Effect | (5,937) | 6,499 | 12,436 | N/A | ||||
Net of Monetary Exposure | (7,516) | 6,874 | 14,390 | N/A | ||||
Positive Goodwill Amortization | (42,537) | (42,101) | 436 | 1.0% | ||||
Non Operating Income | (330,814) | (258,447) | 72,367 | 21.9% | ||||
Net Inc b. Taxes, Min Int and Neg Goodwill Amort. | 275,172 | 539,494 | 264,322 | 96.1% | ||||
Extraordinary Items | - | - | - | - | ||||
Income Tax | (139,694) | (95,243) | 44,451 | 31.8% | ||||
Minority Interest | (109,257) | (205,758) | (96,501) | (88.3%) | ||||
Negative Goodwill Amortization | 12,446 | 5,013 | (7,433) | (59.7%) | ||||
NET INCOME | 38,667 | 243,506 | 204,839 | 529.8% | ||||
EBITDA | 906,649 | 1,115,826 | 209,177 | 23.1% | ||||
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UNDERCHILEANGAAP, THOUSANDUS$
Table 2.1
CONS. INCOME STATEMENT - (thousand US$) | 9M 05 | 9M 06 | Var 06-05 | Chg % | ||||
Revenues from Generation & Transmission | 1,657,077 | 2,255,328 | 598,251 | 36.1% | ||||
Revenues from Distribution | 3,181,491 | 3,547,324 | 365,833 | 11.5% | ||||
Revenues from Engineering and Real Estate | 40,062 | 65,714 | 25,652 | 64.0% | ||||
Revenues from Other Businesses | 223,486 | 267,879 | 44,393 | 19.9% | ||||
Consolidation Adjustments | (499,715) | (726,070) | (226,355) | (45.3%) | ||||
Operating Revenues | 4,602,400 | 5,410,175 | 807,775 | 17.6% | ||||
Costs from Generation | (1,038,681) | (1,413,768) | (375,087) | (36.1%) | ||||
Costs from Distribution | (2,403,777) | (2,597,546) | (193,769) | (8.1%) | ||||
Costs from Engineering and Real Estate | (32,756) | (49,884) | (17,128) | (52.3%) | ||||
Costs from Other Businesses | (180,137) | (227,131) | (46,994) | (26.1%) | ||||
Consolidation Adjustments | 456,114 | 679,857 | 223,743 | 49.1% | ||||
Operating Costs | (3,199,237) | (3,608,470) | (409,233) | (12.8%) | ||||
Operating Margin | 1,403,164 | 1,801,705 | 398,541 | 28.4% | ||||
SG&A from Generation | (54,494) | (70,616) | (16,122) | (29.6%) | ||||
SG&A from Distribution | (216,872) | (237,388) | (20,516) | (9.5%) | ||||
SG&A from Engineering and Real Estate | (4,447) | (4,942) | (495) | (11.2%) | ||||
SG&A from Other Businesses | (44,653) | (52,995) | (8,342) | (18.7%) | ||||
Consolidation Adjustments | 45,704 | 50,079 | 4,375 | 9.6% | ||||
Selling and Administrative Expenses | (274,761) | (315,863) | (41,102) | (15.0%) | ||||
Operating Income | 1,128,403 | 1,485,842 | 357,439 | 31.7% | ||||
Interest Income | 110,263 | 180,492 | 70,229 | 63.7% | ||||
Interest Expense | (512,522) | (534,873) | (22,351) | (4.4%) | ||||
Net Interest (Expense) | (402,259) | (354,381) | 47,878 | 11.9% | ||||
Equity Gains from Related Companies | 25,983 | 8,139 | (17,844) | (68.7%) | ||||
Equity Losses from Related Companies | (16,459) | (347) | 16,112 | 97.9% | ||||
Net Income from Related Companies | 9,524 | 7,792 | (1,732) | (18.2%) | ||||
Other Non Operating Income | 121,097 | 196,126 | 75,029 | 62.0% | ||||
Other Non Operating Expenses | (251,164) | (265,195) | (14,031) | (5.6%) | ||||
Net other Non Operating Income (Expense) | (130,067) | (69,068) | 60,999 | 46.9% | ||||
Price Level Restatement | (2,940) | 700 | 3,640 | N/A | ||||
Foreign Exchange Effect | (11,056) | 12,101 | 23,157 | N/A | ||||
Net of Monetary Exposure | (13,996) | 12,800 | 26,796 | N/A | ||||
Positive Goodwill Amortization | (79,209) | (78,396) | 813 | 1.0% | ||||
Non Operating Income | (616,007) | (481,254) | 134,753 | 21.9% | ||||
Net Inc b. Taxes, Min Int and Neg Goodwill Amort. | 512,396 | 1,004,588 | 492,192 | 96.1% | ||||
Extraordinary Items | - | - | - | - | ||||
Income Tax | (260,122) | (177,352) | 82,770 | 31.8% | ||||
Minority Interest | (203,447) | (383,141) | (179,694) | (88.3%) | ||||
Negative Goodwill Amortization | 23,176 | 9,335 | (13,841) | (59.7%) | ||||
NET INCOME | 72,002 | 453,430 | 381,428 | 529.8% | ||||
EBITDA | 1,688,264 | 2,077,773 | 389,509 | 23.1% | ||||
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PROFORMACONSOLIDATEDINCOMESTATEMENT
UNDERCHILEANGAAP, MILLIONCH$
Table 3
(million Ch$) | 9M 05 | 9M 05 pf* | 9M 06 | Chg | Chg | |||||
O6 / 05 | O6 / 05 Pf * | |||||||||
Operating Revenues | 2,471,627 | 2,547,444 | 2,905,426 | 17.6% | 14.1% | |||||
Operating Costs | (1,718,086) | (1,730,650) | (1,937,857) | (12.8%) | (12.0%) | |||||
Operating Margin | 753,541 | 816,794 | 967,570 | 28.4% | 18.5% | |||||
S&A Expenses | (147,555) | (150,975) | (169,628) | (15.0%) | (12.4%) | |||||
Operating Income | 605,986 | 665,819 | 797,942 | 31.7% | 19.8% | |||||
Non Operating Income | (330,814) | (373,539) | (258,447) | 21.9% | 30.8% | |||||
NI before Taxes | 275,172 | 292,280 | 539,493 | 96.1% | 84.6% | |||||
Income Tax | (139,694) | (161,119) | (95,243) | 31.8% | 40.9% | |||||
Minority Interest | (109,257) | (104,941) | (205,758) | (88.3%) | (96.1%) | |||||
Negative Goodwill Amortization | 12,446 | 12,446 | 5,013 | (59.7%) | (59.7%) | |||||
Net Income | 38,667 | 38,667 | 243,506 | 529.8% | 529.8% | |||||
* pf: Proforma Income Statement, consolidates 9M05 of Cien and Fortaleza |
UNDERCHILEANGAAP, THOUSANDUS$
Table 3.1
(thousand US$) | 9M 05 | 9M 05 pf* | 9M 06 | Chg | Chg | |||||
O6 / 05 | O6 / 05 Pf * | |||||||||
Operating Revenues | 4,602,400 | 4,743,579 | 5,410,175 | 17.6% | 14.1% | |||||
Operating Costs | (3,199,237) | (3,222,632) | (3,608,470) | (12.8%) | (12.0%) | |||||
Operating Margin | 1,403,164 | 1,520,947 | 1,801,705 | 28.4% | 18.5% | |||||
S&A Expenses | (274,761) | (281,129) | (315,863) | (15.0%) | (12.4%) | |||||
Operating Income | 1,128,403 | 1,239,817 | 1,485,842 | 31.7% | 19.8% | |||||
Non Operating Income | (616,007) | (695,564) | (481,252) | 21.9% | 30.8% | |||||
NI before Taxes | 512,396 | 544,253 | 1,004,586 | 96.1% | 84.6% | |||||
Income Tax | (260,122) | (300,018) | (177,352) | 31.8% | 40.9% | |||||
Minority Interest | (203,447) | (195,409) | (383,141) | (88.3%) | (96.1%) | |||||
Negative Goodwill Amortization | 23,176 | 23,176 | 9,335 | (59.7%) | (59.7%) | |||||
Net Income | 72,002 | 72,001 | 453,429 | 529.8% | 529.8% | |||||
* pf: Proforma Income Statement, consolidates 9M05 of Cien and Fortaleza |
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CONSOLIDATEDINCOMESTATEMENTANALYSIS
(Source in Ch$ FECU)
NETINCOME
As of September 2006, net income increased more than 6.3 times up to Ch$243,506 million, which represents an increase of Ch$ 204,839 million. This is mainly explained by an important 31.7% improvement in operating income, 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 between Chilectra and Elesur.
OPERATINGINCOME
Operating income as of September 2006 amounted to Ch$ 797,941 million, increasing Ch$ 191,955 million. This is principally due to an important improvement in operating income in generation subsidiaries in Chile and Argentina, and in distribution subsidiaries in Brazil, Chile, Argentina, Peru and Colombia. Additionally, explained by the consolidation since October 2005, of some Brazilian assets under the new holding company Endesa Brasil.
Table 4 | 9M05 | 9M06 | ||||||||||||||
Million Ch$ | Operating Revenues | Operating Costs | SG & A | Operating Income | Operating Revenues | Operating Costs | SG& A | Operating Income | ||||||||
Endesa Chile | 900,817 | (569,898) | (29,541) | 301,378 | 995,643 | (592,544) | (28,317) | 374,782 | ||||||||
Cachoeira (*) | - | - | - | - | 51,731 | (23,366) | (5,421) | 22,944 | ||||||||
Fortaleza (**) | - | - | - | - | 80,900 | (53,212) | (774) | 26,914 | ||||||||
Cien (**) | - | - | - | - | 103,093 | (107,541) | (3,503) | (7,951) | ||||||||
Chilectra S.A. | 444,832 | (323,589) | (30,112) | 91,131 | 494,777 | (364,682) | (35,648) | 94,447 | ||||||||
Edesur S.A. | 184,392 | (164,107) | (22,738) | (2,453) | 184,096 | (161,190) | (25,598) | (2,692) | ||||||||
Distrilima (Edelnor) | 154,367 | (117,455) | (13,919) | 22,993 | 157,580 | (115,707) | (14,960) | 26,913 | ||||||||
Ampla | 368,817 | (290,543) | (14,120) | 64,154 | 416,956 | (316,298) | (13,135) | 87,523 | ||||||||
Investluz (Coelce) | 239,309 | (171,450) | (27,253) | 40,606 | 317,749 | (218,864) | (27,675) | 71,210 | ||||||||
Codensa S.A. | 316,840 | (223,756) | (8,326) | 84,758 | 333,861 | (218,219) | (10,422) | 105,220 | ||||||||
CAM Ltda. | 84,169 | (71,194) | (6,185) | 6,790 | 101,664 | (87,425) | (6,132) | 8,107 | ||||||||
Inmobiliaria Manso de Velasco Ltda. | 5,907 | (3,988) | (1,450) | 469 | 14,249 | (8,512) | (1,847) | 3,890 | ||||||||
Synapsis Soluciones y Servicios IT Ltda. | 32,300 | (24,697) | (5,408) | 2,195 | 38,662 | (32,739) | (7,164) | (1,241) | ||||||||
Enersis Holding and other investment vehicles | 3,549 | (847) | (12,385) | (9,683) | 3,533 | (1,811) | (15,205) | (13,483) | ||||||||
Consolidation Adjustments | (263,672) | 243,438 | 23,882 | 3,648 | (389,068) | 364,253 | 26,173 | 1,358 | ||||||||
Total Consolidation | 2,471,627 | (1,718,086) | (147,555) | 605,986 | 2,905,426 | (1,937,857) | (169,628) | 797,941 | ||||||||
Table 4.1 | 9M05 | 9M06 | ||||||||||||||
Thousand US$ | Operating Revenues | Operating Costs | SG & A | Operating Income | Operating Revenues | Operating Costs | SG& A | Operating Income | ||||||||
Endesa Chile | 1,677,405 | (1,061,203) | (55,009) | 561,193 | 1,853,981 | (1,103,372) | (52,729) | 697,880 | ||||||||
Cachoeira (*) | - | - | - | - | 96,328 | (43,509) | (10,095) | 42,724 | ||||||||
Fortaleza (**) | - | - | - | - | 150,643 | (99,085) | (1,441) | 50,117 | ||||||||
Cien (**) | - | - | - | - | 191,968 | (200,251) | (6,524) | (14,807) | ||||||||
Chilectra S.A. | 828,319 | (602,552) | (56,071) | 169,695 | 921,322 | (679,072) | (66,380) | 175,870 | ||||||||
Edesur S.A. | 343,355 | (305,583) | (42,340) | (4,568) | 342,804 | (300,150) | (47,666) | (5,012) | ||||||||
Distrilima (Edelnor) | 287,446 | (218,712) | (25,918) | 42,816 | 293,429 | (215,457) | (27,857) | 50,116 | ||||||||
Ampla | 686,772 | (541,018) | (26,292) | 119,461 | 776,410 | (588,976) | (24,458) | 162,975 | ||||||||
Investluz (Coelce) | 445,616 | (319,256) | (50,748) | 75,612 | 591,679 | (407,546) | (51,534) | 132,599 | ||||||||
Codensa S.A. | 589,986 | (416,655) | (15,504) | 157,827 | 621,680 | (406,345) | (19,407) | 195,929 | ||||||||
CAM Ltda. | 156,731 | (132,570) | (11,517) | 12,644 | 189,308 | (162,794) | (11,418) | 15,096 | ||||||||
Inmobiliaria Manso de Velasco Ltda. | 10,999 | (7,426) | (2,699) | 874 | 26,534 | (15,850) | (3,439) | 7,244 | ||||||||
Synapsis Soluciones y Servicios IT Ltda. | 60,146 | (45,988) | (10,071) | 4,087 | 71,992 | (60,963) | (13,340) | (2,311) | ||||||||
Enersis Holding and other investment vehicles | 6,609 | (1,577) | (23,061) | (18,029) | 6,578 | (3,373) | (28,314) | (25,108) | ||||||||
Consolidation Adjustments | (490,983) | 453,305 | 44,470 | 6,793 | (724,482) | 678,273 | 48,737 | 2,528 | ||||||||
Total Consolidation | 4,602,401 | (3,199,235) | (274,761) | 1,128,404 | 5,410,175 | (3,608,470) | (315,865) | 1,485,840 | ||||||||
(*) 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 19.8% between both periods. Now, if we add to this comparison, the 1.5% devaluation effect of the Chilean Peso against the US Dollar, the operating income would have increased 17.3% .
NONOPERATINGINCOME
The company’s non-operating losses decreased 21.9%, from a loss of Ch$330,814 million to a loss of Ch$ 258,447 million. This is mainly consequence of:
Net Interest Expensesimproved by Ch$ 25,713 million or 11.9%, from Ch$216,026 million to a net expense of Ch$ 190,313 million, due to higher interest income from the investment of cash surplus and the reduction in net interest by the control on average debt, even though the company has consolidated two new subsidiaries in this period (CIEN and Endesa Fortaleza).
Income from investments in related companies decreased Ch$ 931 million. This is mainly explained by of lower profits in Gas Atacama by Ch$ 2,948 million and Electrogas by Ch$ 219 million. This reductions were partially compensated with lower recognized loss of CIEN by Ch$ 8,789 million and the profit in CGTF of Ch$ 6,130 million, which as of September 2005, all of which reached a net loss of Ch$ 2,660 million.
Amortization on positive goodwill remains with no significant variations, decreasing 1%.
Net other non-operating incomeimproved 46.9%, reducing a net loss from Ch$ 69,850 million to a net loss of Ch$ 37,092. The main reasons for this variation are,
- Higher profits of Ch$ 39,149 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 fixed assets of Ch$11,990 million.
- Lower expenses of provisions and contingencies of Ch$10,116 million.
These items were partially compensated by:
- Higher expenses for energy efficiency in Brazilian subsidiaries of Ch$ 11,371 million.
- Higher tax expenses in Brazil of Ch$ 11,496 million.
Price-level restatementnon-cashprofits increased by Ch$ 1,955 million. This is principally due to the effect of inflation of 1.9% recorded for the nine months of 2005, and 2.5% for same period 2006, over non-monetary assets and liabilities and those denominated in UF.
The Foreign Exchange Effectincreased by Ch$ 12,436 million, due to the dollar mismatch position as of September 2006.
Income tax and Deferred taxregistered a loss of Ch$ 95,243 million, compared with the expense of Ch$ 139,694 million in September 2005, this means a positive variation of Ch$ 44,451 million.
Pg. 14
PRESS RELEASE | ||
The increase of Ch$91,402 million inincome tax is mainly explained by higher provisions in Coelce, Endesa, Pehuenche, Codensa and Ampla of Ch$ 21,827 million, Ch$ 15,674 million, Ch$ 10,685 million, Ch$ 8,107 million, Ch$ 7,291 million, respectively, together with the effect of the consolidation of Fortaleza and CIEN equivalent to Ch$ 19,631 million and Ch$ 128 million respectively. This was partially compensated by smaller expenses of Ch$ 3,666 million in Edesur and of Ch$ 3,399 million in Edegel.
Deferred taxes, which do not constitute cash flow- registered a positive variation of Ch$ 135,853 million. This increase was mainly explained by the Ch$ 134,449 million from Chilectra due to the one time effect recognized in this company for Ch$ 107,170 million as consequence of the merger between Elesur and Chilectra. This merger implied, for Elesur, an adjustment in the provisions on valuations upon accumulated tax losses, as booked in previous exercises. This result occurs together with the positive effect of the consolidation of CIEN and CGTF by Ch$ 15,501 and Ch$ 8,203 respectively, partially compensated by variations in Enersis and Endesa by Ch$ 23,111 million and Ch$ 10,510 million respectively.
Amortization on negative goodwill decreased Ch$ 7,433 million, explained by the final amortization of Betania and the first purchase on Edegel, which effect is a lower amortization of Ch$ 2,572 million and Ch$ 4,620 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.
EVOLUTIONOFKEYFINANCIALRATIOS
Table 5 | ||||||||||
Indicator | Unit | 9M05 | 9M06 | Var 06-05 | Chg % | |||||
Liquidity | Times | 1.11 | 1.14 | 0.03 | 2.7% | |||||
Acid ratio test * | Times | 1.00 | 1.06 | 0.06 | 6.0% | |||||
Working capital | million Ch$ | 121,479 | 214,723 | 93,244 | 76.8% | |||||
Working capital | th. US$ | 226,206 | 399,834 | 173,629 | 76.8% | |||||
Leverage ** | Times | 0.88 | 0.91 | 0.03 | 3.4% | |||||
Short-term debt | % | 0.24 | 0.29 | 0.05 | 20.8% | |||||
Long-term debt | % | 0.76 | 0.71 | (0.05) | (6.6%) | |||||
Interest Coverage*** | Times | 3.50 | 4.26 | 0.76 | 21.7% | |||||
EBITDA**** | th. US$ | 1,688,264 | 2,077,773 | 389,509 | 23.1% | |||||
ROE | % | 1.44% | 8.46% | 7.02% | 487.5% | |||||
ROA | % | 0.37% | 2.18% | 1.81% | 489.2% | |||||
* Current assets net of inventories and pre-paid expenses | ||||||||||
** Using the ratio = Total debt / (equity + minority interest) | ||||||||||
***EBITDAEI/Interest expenses = (Earnings before taxes+Fin exp+Net non operating income+depreciation+Positive Goodwill) /Interest expenses | ||||||||||
****EBITDA: Operating Income+Depreciation+Amortization |
Liquidity ratioincreased to 1.14 times, basically as a consequence of bonds maturing in the coming 12 months and therefore included in the short term. This ratio shows a small rise respect to September 2005, when the ratio was 1.11 times. Nevertheless, the company is showing strong liquidity, reducing its obligations with banks using cash surplus.
Pg. 15
PRESS RELEASE | ||
Leverage reached 0.91 times, higher than the 0.88 recorded as of September 2005 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 2005 and the nine months 2006. As well as the US dollar Chilean peso exchange rate effect
ROE reached 8.46%, improving significantly respect the 1.44% seen as of September 2005, mainly explained by the higher net income.
ROA increased to 2.18% explained by the higher net income.
Interest Coverage improved 21.7% to 4.26 times, mainly due to the reduction in interest expenses as a result of debt prepayments, and increase in operating results in all our subsidiaries throughout Latin America.
Pg. 16
PRESS RELEASE | ||
CONSOLIDATEDBALANCESHEET
ASSETSUNDERCHILEANGAAP,MILLIONCH$
Table 6 | ||||||||
ASSETS - (million Ch$) | 9M 05 | 9M 06 | Var 06-05 | Chg % | ||||
CURRENT ASSETS | ||||||||
Cash | 57,641 | 53,041 | (4,600) | (8.0%) | ||||
Time deposits | 233,973 | 481,589 | 247,616 | 105.8% | ||||
Marketable securities | 4,004 | 8,227 | 4,223 | 105.4% | ||||
Accounts receivable, net | 630,602 | 808,328 | 177,726 | 28.2% | ||||
Notes receivable, net | 3,870 | 5,176 | 1,307 | 33.8% | ||||
Other accounts receivable, net | 72,572 | 103,862 | 31,290 | 43.1% | ||||
Amounts due from related companies | 12,516 | 6,671 | (5,845) | (46.7%) | ||||
Inventories | 81,647 | 71,466 | (10,181) | (12.5%) | ||||
Income taxes recoverable | 54,227 | 49,095 | (5,132) | (9.5%) | ||||
Prepaid expenses | 44,204 | 56,872 | 12,668 | 28.7% | ||||
Deferred income taxes | 43,882 | 56,979 | 13,096 | 29.8% | ||||
Other current assets | 33,620 | 42,216 | 8,596 | 25.6% | ||||
Total currrent assets | 1,272,759 | 1,743,521 | 470,762 | 37.0% | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||
Land | 131,587 | 135,391 | 3,804 | 2.9% | ||||
Buildings and infraestructure and works in progress | 10,419,660 | 10,966,928 | 547,268 | 5.3% | ||||
Machinery and equipment | 1,817,513 | 1,956,918 | 139,405 | 7.7% | ||||
Other plant and equipment | 418,234 | 580,652 | 162,418 | 38.8% | ||||
Technical appraisal | 191,139 | 187,564 | (3,575) | (1.9%) | ||||
Sub - Total | 12,978,133 | 13,827,453 | 849,320 | 6.5% | ||||
Accumulated depreciation | (5,327,015) | (5,696,127) | (369,112) | (6.9%) | ||||
Total property, plant and equipment | 7,651,118 | 8,131,326 | 480,208 | 6.3% | ||||
OTHER ASSETS | ||||||||
Investments in related companies | 179,724 | 105,155 | (74,569) | (41.5%) | ||||
Investments in other companies | 47,003 | 24,269 | (22,734) | (48.4%) | ||||
Positive goodwill, net | 734,929 | 671,749 | (63,180) | (8.6%) | ||||
Negative goodwill, net | (43,480) | (32,084) | 11,396 | 26.2% | ||||
Long-term receivables | 111,759 | 146,586 | 34,826 | 31.2% | ||||
Amounts due from related companies | 102,095 | 94,126 | (7,969) | (7.8%) | ||||
Intangibles | 83,196 | 86,977 | 3,781 | 4.5% | ||||
Accumulated amortization | (48,829) | (54,711) | (5,882) | (12.0%) | ||||
Others assets | 274,305 | 269,625 | (4,680) | (1.7%) | ||||
Total other assets | 1,440,702 | 1,311,692 | (129,010) | (9.0%) | ||||
TOTAL ASSETS | 10,364,579 | 11,186,539 | 821,960 | 7.9% | ||||
Pg. 17
PRESS RELEASE | ||
ASSETSUNDERCHILEANGAAP,THOUSANDUS$
Table 6.1
ASSETS - (thousand US$) | 9M 05 | 9M 06 | Var 06-05 | Chg % | ||||
CURRENT ASSETS | ||||||||
Cash | 107,333 | 98,766 | (8,567) | (8.0%) | ||||
Time deposits | 435,680 | 896,763 | 461,083 | 105.8% | ||||
Marketable securities | 7,456 | 15,319 | 7,863 | 105.4% | ||||
Accounts receivable, net | 1,174,240 | 1,505,182 | 330,942 | 28.2% | ||||
Notes receivable, net | 7,206 | 9,639 | 2,433 | 33.8% | ||||
Other accounts receivable, net | 135,137 | 193,401 | 58,264 | 43.1% | ||||
Amounts due from related companies | 23,306 | 12,422 | (10,884) | (46.7%) | ||||
Inventories | 152,034 | 133,076 | (18,958) | (12.5%) | ||||
Income taxes recoverable | 100,976 | 91,420 | (9,556) | (9.5%) | ||||
Prepaid expenses | 82,313 | 105,901 | 23,588 | 28.7% | ||||
Deferred income taxes | 81,713 | 106,100 | 24,387 | 29.8% | ||||
Other current assets | 62,603 | 78,609 | 16,006 | 25.6% | ||||
Total currrent assets | 2,369,996 | 3,246,599 | 876,603 | 37.0% | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||
Land | 245,027 | 252,111 | 7,084 | 2.9% | ||||
Buildings and infraestructure and works in progres | 19,402,380 | 20,421,444 | 1,019,064 | 5.3% | ||||
Machinery and equipment | 3,384,378 | 3,643,964 | 259,586 | 7.7% | ||||
Other plant and equipment | 778,791 | 1,081,229 | 302,438 | 38.8% | ||||
Technical appraisal | 355,918 | 349,261 | (6,657) | (1.9%) | ||||
Sub - Total | 24,166,495 | 25,748,008 | 1,581,513 | 6.5% | ||||
Accumulated depreciation | (9,919,400) | (10,606,721) | (687,321) | (6.9%) | ||||
Total property, plant and equipment | 14,247,095 | 15,141,288 | 894,193 | 6.3% | ||||
OTHER ASSETS | ||||||||
Investments in related companies | 334,663 | 195,809 | (138,854) | (41.5%) | ||||
Investments in other companies | 87,524 | 45,192 | (42,332) | (48.4%) | ||||
Positive goodwill, net | 1,368,506 | 1,250,859 | (117,647) | (8.6%) | ||||
Negative goodwill, net | (80,964) | (59,744) | 21,220 | 26.2% | ||||
Long-term receivables | 208,106 | 272,956 | 64,850 | 31.2% | ||||
Amounts due from related companies | 190,110 | 175,272 | (14,838) | (7.8%) | ||||
Intangibles | 154,919 | 161,959 | 7,040 | 4.5% | ||||
Accumulated amortization | (90,924) | (101,877) | (10,953) | (12.0%) | ||||
Others assets | 510,782 | 502,066 | (8,716) | (1.7%) | ||||
Total other assets | 2,682,722 | 2,442,493 | (240,229) | (9.0%) | ||||
TOTAL ASSETS | 19,299,813 | 20,830,380 | 1,530,567 | 7.9% | ||||
Pg. 18
PRESS RELEASE | ||
LIABILITIES ANDSHAREHOLDERSEQUITYUNDERCHILEANGAAP,MILLIONCH$
Table 7 | ||||||||
LIABILITIES AND SHAREHOLDER´S EQUITY - (million Ch$) | 9M 05 | 9M 06 | Var 06-05 | Chg % | ||||
CURRENT LIABILITIES | ||||||||
Short-term debt due to banks and financial institutions | 99,437 | 188,556 | 89,118 | 89.6% | ||||
Current portion of long-term debt due to banks and financial institutions | 111,345 | 128,681 | 17,335 | 15.6% | ||||
Promissory notes | - | - | - | - | ||||
Current portion of bonds payable | 329,062 | 295,987 | (33,075) | (10.1%) | ||||
Current portion of long-term notes payable | 27,598 | 37,774 | 10,177 | 36.9% | ||||
Dividends payable | 17,185 | 81,386 | 64,201 | - | ||||
Accounts payable | 253,017 | 319,039 | 66,022 | 26.1% | ||||
Short-term notes payable | 15,524 | 17,636 | 2,111 | 13.6% | ||||
Miscellaneous payables | 59,739 | 109,229 | 49,490 | 82.8% | ||||
Accounts payable to related companies | 51,738 | 42,890 | (8,848) | (17.1%) | ||||
Accrued expenses | 58,773 | 75,273 | 16,500 | 28.1% | ||||
Withholdings | 50,314 | 71,047 | 20,733 | 41.2% | ||||
Income taxes payable | 37,329 | 70,659 | 33,329 | 89.3% | ||||
Anticipated income | 4,527 | 3,176 | (1,351) | (29.8%) | ||||
Deferred income taxes | - | - | - | - | ||||
Reinbursable financial contribution | 1,941 | 1,111 | (830) | (42.7%) | ||||
Other current liabilities | 33,750 | 86,355 | 52,606 | 155.9% | ||||
Total current liabilities | 1,151,280 | 1,528,798 | 377,518 | 32.8% | ||||
LONG-TERM LIABILITIES | ||||||||
Due to banks and financial institutions | 567,708 | 759,195 | 191,487 | 33.7% | ||||
Bonds payable | 2,334,651 | 2,187,168 | (147,482) | (6.3%) | ||||
Long -term notes payable | 122,988 | 108,051 | (14,937) | (12.1%) | ||||
Accounts payables | 59,275 | 153,945 | 94,670 | 159.7% | ||||
Amounts payable to related companies | 9,997 | 12,612 | 2,616 | 26.2% | ||||
Accrued expenses | 333,003 | 395,688 | 62,686 | 18.8% | ||||
Deferred income taxes | 76,087 | 8,494 | (67,593) | (88.8%) | ||||
Reinbursable financial contribution | 5,081 | 3,207 | (1,874) | (36.9%) | ||||
Other long-term liabilities | 180,070 | 162,212 | (17,858) | (9.9%) | ||||
Total long-term liabilities | 3,688,859 | 3,790,572 | 101,713 | 2.8% | ||||
Minority interest | 2,847,106 | 2,987,853 | 140,747 | 4.9% | ||||
SHAREHOLDERS´ EQUITY | ||||||||
Paid-in capital, no par value | 2,370,173 | 2,365,607 | (4,567) | (0.2%) | ||||
Additional paid-in capital | 56,884 | 59,140 | 2,256 | 4.0% | ||||
Additional paid-in capital (share premium) | 172,963 | 172,799 | (165) | (0.1%) | ||||
Other reserves | (197,744) | (234,005) | (36,261) | 18.3% | ||||
Total capital and reserves | 2,402,277 | 2,363,540 | (38,737) | (1.6%) | ||||
Retained earnings | 236,390 | 272,270 | 35,880 | 15.2% | ||||
Net income for the period | 38,667 | 243,506 | 204,839 | 529.8% | ||||
Deficits of subsidaries in development stage | - | - | - | - | ||||
Total retained earnings | 275,057 | 515,776 | 240,719 | 87.5% | ||||
Total shareholder´s equity | 2,677,334 | 2,879,316 | 201,982 | 7.5% | ||||
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY | 10,364,579 | 11,186,539 | 821,960 | 7.9% | ||||
Pg. 19
PRESS RELEASE | ||
LIABILITIES ANDSHAREHOLDERSEQUITYUNDERCHILEANGAAP,THOUSANDUS$
Table 7.1 | ||||||||
LIABILITIES - (thousand US$) | 9M 05 | 9M 06 | Var 06-05 | Chg % | ||||
CURRENT LIABILITIES | ||||||||
Short-term debt due to banks and financial institutions | 185,161 | 351,108 | 165,947 | 89.6% | ||||
Current portion of long-term debt due to banks and financial in | 207,335 | 239,616 | 32,281 | 15.6% | ||||
Current portion of bonds payable | 612,744 | 551,155 | (61,589) | (10.1%) | ||||
Current portion of long-term notes payable | 51,389 | 70,339 | 18,950 | 36.9% | ||||
Dividends payable | 32,000 | 151,548 | 119,548 | - | ||||
Accounts payable | 471,142 | 594,080 | 122,938 | 26.1% | ||||
Short-term notes payable | 28,908 | 32,839 | 3,931 | 13.6% | ||||
Miscellaneous payables | 111,239 | 203,394 | 92,155 | 82.8% | ||||
Accounts payable to related companies | 96,341 | 79,865 | (16,476) | (17.1%) | ||||
Accrued expenses | 109,440 | 140,164 | 30,724 | 28.1% | ||||
Withholdings | 93,690 | 132,297 | 38,607 | 41.2% | ||||
Income taxes payable | 69,511 | 131,573 | 62,062 | 89.3% | ||||
Anticipated income | 8,429 | 5,915 | (2,514) | (29.8%) | ||||
Reinbursable financial contribution | 3,615 | 2,069 | (1,546) | (42.7%) | ||||
Other current liabilities | 62,845 | 160,802 | 97,957 | 155.9% | ||||
Total current liabilities | 2,143,790 | 2,846,765 | 702,975 | 32.8% | ||||
LONG-TERM LIABILITIES | ||||||||
Due to banks and financial institutions | 1,057,126 | 1,413,692 | 356,566 | 33.7% | ||||
Bonds payable | 4,347,338 | 4,072,712 | (274,626) | (6.3%) | ||||
Long -term notes payable | 229,015 | 201,200 | (27,815) | (12.1%) | ||||
Accounts payables | 110,376 | 286,660 | 176,284 | 159.7% | ||||
Amounts payable to related companies | 18,615 | 23,485 | 4,870 | 26.2% | ||||
Accrued expenses | 620,082 | 736,809 | 116,727 | 18.8% | ||||
Deferred income taxes | 141,681 | 15,816 | (125,865) | (88.8%) | ||||
Reinbursable financial contribution | 9,461 | 5,971 | (3,490) | (36.9%) | ||||
Other long-term liabilities | 335,307 | 302,054 | (33,253) | (9.9%) | ||||
Total long-term liabilities | 6,869,000 | 7,058,400 | 189,400 | 2.8% | ||||
Minority interest | 5,301,577 | 5,563,661 | 262,084 | 4.9% | ||||
SHAREHOLDERS´ EQUITY | ||||||||
Paid-in capital, no par value | 4,413,484 | 4,404,980 | (8,504) | (0.2%) | ||||
Additional paid-in capital | 105,924 | 110,125 | 4,201 | 4.0% | ||||
Additional paid-in capital (share premium) | 322,074 | 321,767 | (307) | (0.1%) | ||||
Other reserves | (368,218) | (435,740) | (67,522) | 18.3% | ||||
Total capital and reserves | 4,473,264 | 4,401,132 | (72,132) | (1.6%) | ||||
Retained earnings | 440,180 | 506,993 | 66,813 | 15.2% | ||||
Net income for the period | 72,001 | 453,430 | 381,429 | 529.8% | ||||
Deficits of subsidaries in development stage | - | - | - | - | ||||
Total retained earnings | 512,181 | 960,423 | 448,242 | 87.5% | ||||
Total shareholder´s equity | 4,985,445 | 5,361,555 | 376,110 | 7.5% | ||||
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY | 19,299,813 | 20,830,380 | 1,530,568 | 7.9% | ||||
Pg. 20
PRESS RELEASE | ||
CONSOLIDATEDBALANCESHEETANALYSIS
The Company’sTotal Assets increased by Ch$821,960 million. This was due to:
• | A rise of Ch$480,208 million, or 6.3% inFixed Assetsbecause of the new addition of fixed assets by near Ch$ 475,000 million, the addition of fixed assets due to the consolidation of CGTF, CIEN and Etevensa by Ch$ 106,490 million, Ch$ 288,325 million and Ch$ 126,807 million respectively. This was partially compensated for one year fixed asset depreciation by Ch$ 410,585 million and real exchange rate effect on in the subsidiaries located in countries with unstable currencies, pursuant to Technical Bulletin Nº 64, which originated a diminish of Ch$ 114,146 million. | |
• | Current Assetsincreased by Ch$ 470,762 million, mainly due to: | |
• | An increase of Ch$247,616 million in time deposits, mainly due to cash surplus at the subsidiaries Ampla of Ch$ 88,002 million, Codensa of Ch$ 62,309 million and Endesa Brasil of Ch$ 20,280 million and the consolidation of CGTF of Ch$ 60,688 million, and CIEN of Ch$44,189 million, partially compensated for rescues in Betania of Ch$14,375, Endesa of Ch$ 12,469 million and Edegel of Ch$ 6,668 million. | |
• | An increase in accounts receivable of Ch$ 177,726 million, principally due to a rise in billing from distribution subsidiaries Codensa of Ch$ 30,866 million, Coelce of Ch$ 20,365 million, Ampla of Ch$ 15,049 million, Cachoeira Dourada of Ch$ 15,635 million, Chilectra of Ch$ 12,421 million, Edegel of Ch$ 11,733 million, Endesa of Ch$ 11,075 million and CIEN of Ch$ 43,476 million. | |
• | An increase in other accounts receivable by Ch$ 31,290 million due mainly to San Isidro of Ch$ 14,418 million and Chilean generation plants for tolls reliquidation of Ch$ 11,604 million. | |
• | Other long term assetsdecreased of Ch$ 129,010 million, explained mainly as follows: | |
• | Decrease of investments in related companies for Ch$ 74,569 million, due to the decrease of CIEN for Ch$43,723 million and Fortaleza for Ch$32,730 million, due to the fact that these companies are now consolidated and not accounted for as equity investment. | |
• | Decrease of positive goodwill of Ch$63,180 million. This corresponds to the annual average amortization by near Ch$56,100 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$22,734 million in investments in other related companies, basically explained by the lower investment in Empresa Eléctrica de Bogotá of Ch$17,607 million due to the liquidation of Capital Energía S.A. | |
• | A rise on long term receivables of Ch$ 34,826 million mainly due to increasing in Endesa Costanera and Chocón of Ch$ 49,889 million due to wholesale electric investment market fund in Argentina, Túnel El Melón of Ch$9,230 million through accounts receivable from MOP and the consolidation of CIEN of Ch$ 23,861 million by the hand of accounts receivable from Copel. The above mentioned was partially compensated by reduction in Coelce of Ch$ 37,131 million in regulatory asset and Ampla of Ch$ 7,690 million of free energy. | |
Pg. 21
PRESS RELEASE | ||
Total Liabilities andShareholder’s Equity increased Ch$821,960 million, due to:
• | Short-term liabilitiesincreased Ch$377,518 million or 32.8% as a result of: | |
• | Increase of Ch$89,118 million in short term portion of bank obligations corresponding to Emgesa of Ch$58,064 million, Ampla of Ch$50,422 million and Edegel of Ch$9,358 million and partially compensated by diminishing of Codensa of Ch$31,064 million. | |
• | Increase in payable accounts of Ch$66,022 million due to the increase in Coelce of Ch$12,722 million, Codensa of Ch$4,591 million and the consolidation of CIEN and Fortaleza of Ch$50,036 million. | |
• | Increase in payable dividend of Ch$64.201 million, principally due to Codensa of Ch$29.096 million, and Endesa Internacional of Ch$27.911 million (Distrilima, Codensa, Emgesa, CIEN and Investluz). | |
• | Increase in miscellaneous payable accounts of Ch$49.490 million as result of rise in Ampla of Ch$10.890 million and the addition of CGTF and CIEN’s consolidation, of Ch$4.503 million and of Ch$6.799 million respectively. | |
• | Increase in other current liabilities of Ch$51.776 million basically in Edesur of Ch$15.639 million, Codensa of Ch$13.850 million and Ampla of Ch$13.591 million. | |
• | Increase in income taxes of Ch$33.329 million, where highlights Endesa with a rise of Ch$20.638 million and Codensa of Ch$8.098 million. | |
• | Decrease of short term bonds payable of Ch$33.075 million, originated by payments in Endesa Chile of Ch$111.752 million, Emgesa of Ch$36.954 million, Endesa Chile Internacional of Ch$82.396 million, partially compensated for short term transfers of Enersis long term bonds of Ch$161.024 million, Edegel of Ch$48.727 million, Edelnor of Ch$28.213 million, Edesur of Ch$6.989 million and Emgesa of Ch$4.355 million. | |
• | Long term liabilitiesincreased of Ch$101.713 million or 10.0% due to: | |
• | Increase of Ch$191.487 million in bank obligations corresponding to Betania of Ch$53.961 million, Chocón of Ch$53.703 million, Edesur of Ch$45.525 million and Edegel of Ch$35.198 million, together with consolidation of CGTF of Ch$63.534 million and CIEN of Ch$116.138 million. The above mentioned is partially compensated with decrease in Endesa of Ch$50.627 million, Pehuenche of Ch$13.732 million and Ampla of Ch$17.815 million. | |
• | Increase in miscellaneous payable accounts of Ch$94.670 million, due to rise in Edegel of Ch$58.508 million and Endesa Brasil of Ch$26.851 million, together with consolidation of CIEN of Ch$11.814 million. | |
• | Increase of provisions of Ch$62.686 million, explained for consolidation of CGTF of Ch$47.839 million and CIEN of Ch$12.277 million. | |
• | Decrease of Ch$147,482 million in the long term portion of bonds payable, due to the transfer to short term of bonds of Ch$249,309 million and the effect of the exchange rate, partially offset by new bond issuances of Ch$91.390 million in Ampla. | |
Minority interestincreased Ch$140.747 million, mainly explained by the effect of the constitution of Endesa Brasil, the new subsidiaries CIEN and CGTF, which consolidated since October 2005 and due to the growth in US$ hold overseas subsidiaries equity in accordance to Bulletin N°64.
Shareholders’ Equity increased by Ch$201.982 million. This variation is explained principally by the increase of Ch$35.880 million in retained earnings and the increase of Ch$204.839 million in net income, partially offset by the reduction of Ch$36.261 million in other reserves, due to the revaluation of the Chilean Peso and its effect on the equity given the difference in conversion adjustment on the investments booked in US Dollars.
Pg. 22
PRESS RELEASE | ||
DEBTMATURITY WITHTHIRDPARTIES,MILLIONCH$
Table 8
TOTAL | |||||||
Million Ch$ | 2006 | 2007 | 2008 | 2009 | 2010 | Balance | |
Chile | 180,253 | 27,956 | 243,479 | 340,544 | 128,390 | 1,062,590 | 1,983,211 |
Enersis | 176,431 | 1,626 | 17,830 | 1,722 | 1,722 | 437,636 | 636,967 |
Chilectra | - | - | - | - | - | - | - |
Other (*) | 279 | 735 | 1,980 | - | - | - | 2,994 |
Endesa Chile (**) | 3,543 | 25,595 | 223,669 | 338,823 | 126,668 | 624,954 | 1,343,251 |
Argentina | 26,320 | 46,530 | 61,240 | 49,588 | 55,684 | 37,719 | 277,081 |
Edesur | 4,354 | 15,544 | 29,788 | 9,818 | 25,952 | - | 85,456 |
Costanera | 21,013 | 23,926 | 23,282 | 25,334 | 15,297 | 10,581 | 119,433 |
Chocon | - | - | 6,265 | 12,531 | 12,531 | 22,376 | 53,703 |
Hidroinvest | - | 5,155 | - | - | - | - | 5,155 |
CTM | - | - | - | - | - | - | - |
Tesa | 952 | 1,905 | 1,905 | 1,905 | 1,905 | 4,762 | 13,335 |
Perú | 91,574 | 72,952 | 47,926 | 44,989 | 18,952 | 92,989 | 369,382 |
Edelnor | 41,002 | 10,010 | 4,957 | 12,269 | 4,957 | 39,225 | 112,421 |
Edegel | 50,572 | 62,942 | 42,968 | 32,720 | 13,994 | 53,764 | 256,961 |
Brazil | 41,272 | 102,502 | 142,803 | 124,094 | 117,776 | 222,602 | 723,626 |
Endesa Brasil | - | - | - | - | - | - | - |
Coelce | 5,835 | 29,354 | 29,036 | 24,318 | 15,805 | 42,879 | 147,227 |
Ampla | 20,915 | 42,382 | 84,631 | 43,735 | 76,595 | 95,314 | 363,572 |
Cachoeira | 595 | 2,830 | 872 | - | - | - | 4,297 |
Cien | 11,774 | 23,398 | 23,398 | 23,398 | 19,778 | 39,048 | 140,793 |
Fortaleza | 2,152 | 4,537 | 4,867 | 5,220 | 5,598 | 45,362 | 67,736 |
Colombia | 44,931 | 46,726 | - | 82,039 | 8,972 | 306,164 | 488,831 |
Codensa | 9,017 | - | - | 11,215 | - | 100,932 | 121,164 |
Emgesa | 29,373 | 33,644 | - | 70,824 | - | 56,074 | 189,915 |
Betania | 6,541 | 13,082 | - | - | 8,972 | 149,158 | 177,753 |
TOTAL | 384,350 | 296,666 | 495,448 | 641,254 | 329,773 | 1,722,065 | 3,842,132 |
(*) Includes: CAM | |||||||
(**) Includes: Endesa Chile Internacional, Pangue, Pehuenche, San Isidro, Celta and Tunel El Melon. |
DEBTMATURITY WITHTHIRDPARTIES,THOUSANDUS$
Table 8.1
TOTAL | |||||||
Thousand US$ | 2006 | 2007 | 2008 | 2009 | 2010 | Balance | |
Chile | 335,647 | 52,057 | 453,380 | 634,125 | 239,073 | 1,978,642 | 3,692,925 |
Enersis | 328,532 | 3,028 | 33,201 | 3,206 | 3,206 | 814,919 | 1,186,092 |
Chilectra | - | - | - | - | - | - | - |
Other (*) | 519 | 1,369 | 3,687 | - | - | - | 5,574 |
Endesa Chile (**) | 6,597 | 47,660 | 416,492 | 630,920 | 235,867 | 1,163,723 | 2,501,259 |
Argentina | 49,010 | 86,644 | 114,035 | 92,337 | 103,689 | 70,237 | 515,951 |
Edesur | 8,107 | 28,945 | 55,468 | 18,282 | 48,325 | - | 159,127 |
Costanera | 39,129 | 44,553 | 43,353 | 47,174 | 28,484 | 19,703 | 222,395 |
Chocon | - | - | 11,667 | 23,333 | 23,333 | 41,667 | 100,000 |
Hidroinvest | - | 9,599 | - | - | - | - | 9,599 |
CTM | - | - | - | - | - | - | - |
Tesa | 1,774 | 3,547 | 3,547 | 3,547 | 3,547 | 8,868 | 24,831 |
Peru | 170,520 | 135,843 | 89,242 | 83,774 | 35,290 | 173,155 | 687,824 |
Edelnor | 76,350 | 18,640 | 9,231 | 22,846 | 9,231 | 73,040 | 209,338 |
Edegel | 94,170 | 117,203 | 80,011 | 60,928 | 26,059 | 100,114 | 478,486 |
Brazil | 76,852 | 190,868 | 265,913 | 231,075 | 219,310 | 414,506 | 1,347,459 |
Endesa Brasil | - | - | - | - | - | - | - |
Coelce | 10,866 | 54,659 | 54,067 | 45,283 | 29,430 | 79,845 | 274,150 |
Ampla | 38,946 | 78,920 | 157,590 | 81,438 | 142,628 | 177,483 | 677,006 |
Cachoeira | 1,108 | 5,270 | 1,624 | - | - | - | 8,002 |
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 | 83,666 | 87,009 | - | 152,764 | 16,706 | 570,105 | 910,250 |
Codensa | 16,790 | - | - | 20,883 | - | 187,946 | 225,618 |
Emgesa | 54,696 | 62,649 | - | 131,881 | - | 104,414 | 353,640 |
Betania | 12,180 | 24,360 | - | - | 16,706 | 277,746 | 330,992 |
TOTAL | 715,695 | 552,420 | 922,570 | 1,194,075 | 614,069 | 3,206,645 | 7,154,408 |
(*) Includes: CAM | |||||||
(**) Includes: Endesa Chile Internacional, Pangue, Pehuenche, San Isidro, Celta and Tunel El Melon. |
Pg. 23
PRESS RELEASE | ||
CONSOLIDATEDCASHFLOW
UNDERCHILEANGAAP, MILLIONCH$
Table 9
Million Ch$ | 9M 05 | 9M 06 | Var 06-05 | Chg % |
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | ||||
Net income (loss) for the year | 38,667 | 243,506 | 204,839 | |
Gain (losses) from sales of assets: | ||||
Losses (gain) on sale of property, plant and equipment | (1,881) | (16,771) | (14,890) | - |
Charges (credits) to income which do not represent cash flows: | ||||
Depreciation | 294,412 | 311,844 | 17,432 | 5.9% |
Amortization of intangibles | 6,250 | 6,042 | (208) | (3.3%) |
Write-offs and accrued expenses | 22,479 | 17,114 | (5,365) | (23.9%) |
Equity in income of related companies | (13,954) | (4,371) | 9,583 | 68.7% |
Equity in losses of related companies | 8,839 | 187 | (8,652) | - |
Amortization of positive goodwill | 42,537 | 42,101 | (436) | (1.0%) |
Amortization of negative goodwill | (12,446) | (5,013) | 7,433 | 59.7% |
Price-level restatement, net | 1,580 | (376) | (1,956) | N/A |
Exchange difference, net | 5,937 | (6,500) | (12,437) | N/A |
Other credits to income which do not represent cash flows | (26,407) | (27,282) | (875) | (3.3%) |
Other charges to income which do not represent cash flows | 92,279 | 44,611 | (47,668) | (51.7%) |
Changes in assets which affect cash flows: | - | 0.0% | ||
Decrease (increase) in trade receivables | (52,264) | (156,469) | (104,205) | (199.4%) |
Decrease (increase) in inventory | (26,760) | 3,632 | 30,392 | N/A |
Decrease (increase) in other assets | 7,049 | (75,130) | (82,179) | N/A |
Changes in liabilities which affect cash flow: | ||||
Decreased (increase) in payable accounts associated with operating results | 15,648 | 101,747 | 86,099 | - |
Decreased (increase) of payable interest | 34,031 | 23,712 | (10,319) | (30.3%) |
Decreased (increase) in income tax payable | 36,793 | (88,491) | (125,284) | N/A |
Decreased (increase) in other accounts payable associated with non-operating results | (8,978) | 93,797 | 102,775 | N/A |
Decreased (increase) in value added tax and other similar taxes payable, net | (35,908) | (91,138) | (55,230) | (153.8%) |
Income (loss) attributable to minority interest | 109,257 | 205,758 | 96,501 | 88.3% |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | 537,160 | 622,511 | 85,351 | 15.9% |
Pg. 24
PRESS RELEASE | ||
Cont. Table 9
Million Ch$ | 9M 05 | 9M 06 | Var 06-05 | Chg % |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of shares issued to minorities | - | - | - | - |
Proceeds from debt issuance | 296,504 | 791,150 | 494,646 | 166.8% |
Proceeds from bond issuance | 161,037 | 148,821 | (12,216) | (7.6%) |
Proceeds from loans obtained from related companies | - | - | - | - |
Proceeds from other loans obtained from related companies | - | - | - | - |
Other sources of financing | 646 | 26,962 | 26,316 | - |
Capital paid | (255,598) | (11,895) | 243,703 | 95.3% |
Dividends paid | (110,669) | (106,805) | 3,864 | 3.5% |
Payment of debt | (529,007) | (618,438) | (89,431) | (16.9%) |
Payment of bonds | (101,850) | (265,798) | (163,948) | (161.0%) |
Payments of loans obtained from related companies | - | (7,498) | (7,498) | - |
Payments of other loans obtained from related companies | - | - | - | - |
Payments of shares issuance costs | - | - | - | - |
Payments of bonds issuance costs | (932) | (504) | 428 | 45.9% |
Other disbursements for financing | (13,730) | (2,321) | 11,409 | 83.1% |
NET CASH FLOW FROM FINANCING ACTIVITIES | (553,599) | (46,327) | 507,272 | 91.6% |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from sale of property, plant and equipment | 4,641 | 27,389 | 22,748 | - |
Sale of investment | - | 34 | 34 | - |
Other loans received from related companies | 2,814 | - | (2,814) | (100.0%) |
Other receipts from investments | 3,725 | 4,374 | 649 | 17.4% |
Additions to property, plant and equipment | (226,602) | (372,565) | (145,963) | (64.4%) |
Long-term investments | (33,542) | (12,441) | 21,101 | 62.9% |
Investment in financing instruments | - | - | - | - |
Other loans granted to related companies | - | - | - | - |
Other investment disbursements | (683) | (15,976) | (15,293) | - |
NET CASH FLOW FROM INVESTMENT ACTIVITIES | (249,647) | (369,184) | (119,537) | (47.9%) |
NET CASH FLOW FOR THE PERIOD | (266,086) | 207,000 | 473,086 | N/A |
EFFECT OF PRICE-LEVEL RESTATEMENT ON CASH AND CASH EQUIVALENT | 3,177 | (15,098) | (18,275) | N/A |
NET VARIATION ON CASH AND CASH EQUIVALENT | (262,909) | 191,902 | 454,811 | N/A |
CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE YEAR | 581,665 | 369,315 | (212,350) | (36.5%) |
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD | 318,756 | 561,217 | 242,461 | 76.1% |
Pg. 25
PRESS RELEASE | ||
UNDERCHILEANGAAP,THOUSANDUS$
Table 9.1
Thousand US$ | 9M 05 | 9M 06 | Var 06-05 | Chg % |
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | ||||
Net income (loss) for the year | 72,002 | 453,430 | 381,428 | - |
Gain (losses) from sales of assets: | ||||
Losses (gain) on sale of property, plant and equipment | (3,502) | (31,229) | (27,727) | - |
Charges (credits) to income which do not represent cash flows: | ||||
Depreciation | 548,223 | 580,682 | 32,459 | 5.9% |
Amortization of intangibles | 11,638 | 11,250 | (388) | (3.3%) |
Write-offs and accrued expenses | 41,858 | 31,868 | (9,990) | (23.9%) |
Equity in income of related companies | (25,984) | (8,139) | 17,845 | 68.7% |
Equity in losses of related companies | 16,459 | 347 | (16,112) | - |
Amortization of positive goodwill | 79,208 | 78,396 | (812) | (1.0%) |
Amortization of negative goodwill | (23,176) | (9,335) | 13,841 | 59.7% |
Price-level restatement, net | 2,942 | (700) | (3,642) | N/A |
Exchange difference, net | 11,055 | (12,103) | (23,158) | N/A |
Other credits to income which do not represent cash flows | (49,172) | (50,801) | (1,629) | (3.3%) |
Other charges to income which do not represent cash flows | 171,832 | 83,070 | (88,762) | (51.7%) |
Changes in assets which affect cash flows: | ||||
Decrease (increase) in trade receivables | (97,320) | (291,360) | (194,040) | (199.4%) |
Decrease (increase) in inventory | (49,830) | 6,763 | 56,593 | N/A |
Decrease (increase) in other assets | 13,126 | (139,898) | (153,024) | N/A |
Changes in liabilities which affect cash flow: | ||||
Decreased (increase) in payable accounts associated with operating results | 29,138 | 189,463 | 160,325 | - |
Decreased (increase) of payable interest | 63,369 | 44,154 | (19,215) | (30.3%) |
Decreased (increase) in income tax payable | 68,512 | (164,779) | (233,291) | N/A |
Decreased (increase) in other accounts payable associated with non-operating results | (16,718) | 174,660 | 191,378 | N/A |
Decreased (increase) in value added tax and other similar taxes payable, net | (66,864) | (169,707) | (102,843) | (153.8%) |
Income (loss) attributable to minority interest | 203,447 | 383,141 | 179,694 | 88.3% |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | 1,000,243 | 1,159,174 | 158,931 | 15.9% |
Pg. 26
PRESS RELEASE | ||
Cont. Table 9.1
Thousand US$ | 9M 05 | 9M 06 | Var 06-05 | Chg % |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of shares issued to minorities | - | - | - | - |
Proceeds from debt issuance | 552,118 | 1,473,195 | 921,077 | 166.8% |
Proceeds from bond issuance | 299,866 | 277,118 | (22,748) | (7.6%) |
Proceeds from loans obtained from related companies | - | - | - | - |
Proceeds from other loans obtained from related companies | - | - | - | - |
Other sources of financing | 1,203 | 50,205 | 49,002 | - |
Capital paid | (475,947) | (22,149) | 453,798 | 95.3% |
Dividends paid | (206,076) | (198,880) | 7,196 | 3.5% |
Payment of debt | (985,060) | (1,151,590) | (166,530) | (16.9%) |
Payment of bonds | (189,654) | (494,941) | (305,287) | (161.0%) |
Payments of loans obtained from related companies | - | (13,962) | (13,962) | - |
Payments of other loans obtained from related companies | - | - | - | - |
Payments of shares issuance costs | - | - | - | - |
Payments of bonds issuance costs | (1,735) | (939) | 796 | 45.9% |
Other disbursements for financing | (25,567) | (4,321) | 21,246 | 83.1% |
NET CASH FLOW FROM FINANCING ACTIVITIES | (1,030,853) | (86,265) | 944,588 | 91.6% |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from sale of property, plant and equipment | 8,642 | 51,000 | 42,358 | - |
Sale of investment | - | 64 | 64 | - |
Other loans received from related companies | 5,240 | - | (5,240) | (100.0%) |
Other receipts from investments | 6,936 | 8,145 | 1,209 | 17.4% |
Additions to property, plant and equipment | (421,954) | (693,750) | (271,796) | (64.4%) |
Long-term investments | (62,458) | (23,166) | 39,292 | 62.9% |
Investment in financing instruments | - | - | - | - |
Other loans granted to related companies | - | - | - | - |
Other investment disbursements | (1,272) | (29,748) | (28,476) | - |
NET CASH FLOW FROM INVESTMENT ACTIVITIES | (464,866) | (687,455) | (222,589) | (47.9%) |
NET CASH FLOW FOR THE PERIOD | (495,477) | 385,452 | 880,929 | N/A |
EFFECT OF PRICE-LEVEL RESTATEMENT ON CASH AND CASH EQUIVALENT | 5,916 | (28,113) | (34,029) | N/A |
NET VARIATION ON CASH AND CASH EQUIVALENT | (489,561) | 357,339 | 846,900 | N/A |
CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE YEAR | 1,083,115 | 687,699 | (395,416) | (36.5%) |
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD | 593,553 | 1,045,038 | 451,485 | 76.1% |
Pg. 27
PRESS RELEASE | ||
CONSOLIDATEDCASHFLOWANALYSIS
During the period, the Company generated a positive net cash flow of Ch$207,000 million, comprised of the following activities:
Table 10
Effective Cash Flow (million Ch$) | 9M05 | 9M06 | Var 06-05 | Chg % |
Operating | 537,160 | 622,511 | 85,351 | 15.9% |
Financing | (553,599) | (46,327) | 507,272 | (91.6%) |
Investment | (249,647) | (369,184) | (119,537) | 47.9% |
Net cash flow of the period | (266,086) | 207,000 | 473,086 | (177.8%) |
Table 10.1
Effective Cash Flow (thousand US$) | 9M05 | 9M06 | Var 06-05 | Chg % |
Operating | 1,000,243 | 1,159,174 | 158,931 | 15.9% |
Financing | (1,030,853) | (86,265) | 944,588 | (91.6%) |
Investment | (464,866) | (687,455) | (222,589) | 47.9% |
Net cash flow of the period | (495,476) | 385,454 | 880,930 | (177.8%) |
Operating activities generated a net positive cash flow of Ch$622,511 million, an increase of Ch$85,351 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$243,506 million, plus: | |
• | Charges of Ch$378,358 million to the income statement that do not represent cash flow and correspond mainly to the Depreciation of the period for Ch$311,844 million, write-offs and provisions for Ch$17,114 million, amortizations of positive goodwill of Ch$42,101 million, amortization of intangibles of Ch$6,042 million, losses in long term investments of Ch$186 million and other charges that do not represent cash flow for Ch$44,611 million, which includes the Ch$20,470 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$39,627 million. | |
• | The above was partially compensated by: | |
• | Non cash credits for Ch$27,282 million that do not represent cash flows, of which Ch$13,221 million correspond to the positive effect of the conversion of the overseas subsidiaries. | |
• | Profits on assets sale of Ch$16,770 million. | |
• | Profit on investment in related companies of Ch$4,370 million. | |
• | Negative goodwill amortization of Ch$5,013 million. | |
• | Variation in net assets that affect operating cash flow of Ch$227,997 million. | |
Pg. 28
PRESS RELEASE | ||
Financing activities resulted in a negative cash flow of Ch$46,327 million mainly due to the payment of loans for a value of Ch$618,438 million, payments to the public for Ch$265,798 million, dividend payments of Ch$106,804 million, and capital distributions of subsidiaries for Ch$11,984 million. The above is partly compensated by loans obtained for Ch$791,149 million, bond issues for Ch$148,821 million and other sources of financing for Ch$26,962 million.
Investment activitieshad a net negative cash flow of Ch$369,184 million that correspond mainly to the addition of fixed assets for Ch$372,565 million, other long term investments for Ch$12,441 million and other disbursements of Ch$15,976 million, partially compensated by the sale of fixed assets of Ch$27,388 million and other investment revenues of Ch$4,374 million.
CASHFLOWRECEIVEDFROMFOREIGNSUBSIDIARIES BYENERSIS,CHILECTRA ANDENDESACHILE
Table 11 | ||||||||||
Millions Ch$ | Interest Received | Dividends Received | Management Fee | Prepayment intercompany | Capital Reductions | |||||
9M05 | 9M06 | 9M05 | 9M06 | 9M05 | 9M06 | 9M05 | 9M06 | 9M05 | 9M06 | |
Argentina | - | 851 | - | - | - | 242 | - | 64,444 | - | - |
Peru | - | - | 9,336 | 10,230 | - | - | - | - | 7,484 | - |
Brazil | 1,788 | 1,651 | 19,174 | - | - | - | - | 33,419 | - | - |
Colombia | - | 19,314 | 8,364 | - | - | - | 22,883 | 92,906 | 46,936 | - |
Total | 1,788 | 21,816 | 36,873 | 10,230 | - | 242 | 22,883 | 190,769 | 54,420 | - |
Millions Ch$ | Total Cash Received | |
9M05 | 9M06 | |
Argentina | - | 65,537 |
Peru | 16,820 | 10,230 |
Brazil | 20,961 | 35,070 |
Colombia | 78,183 | 112,220 |
Total | 115,964 | 223,056 |
Table 11.1 | ||||||||||
Thousand US$ | Interest Received | Dividends Received | Management Fee | Prepayment Intercompany | Capital Reductions | |||||
9M05 | 9M06 | 9M05 | 9M06 | 9M05 | 9M06 | 9M05 | 9M06 | 9M05 | 9M06 | |
Argentina | - | 1,586 | - | - | - | 450 | - | 120,000 | - | - |
Peru | - | - | 17,384 | 19,049 | - | - | - | - | 13,936 | - |
Brazil | 3,329 | 3,074 | 35,703 | - | - | - | - | 62,229 | - | - |
Colombia | - | 35,964 | 15,574 | - | - | - | 42,611 | 173,000 | 87,399 | - |
Total | 3,329 | 40,623 | 68,662 | 19,049 | - | 450 | 42,611 | 355,229 | 101,335 | - |
Thousand US$ | Total Cash Received | |
9M05 | 9M06 | |
Argentina | - | 122,036 |
Peru | 31,321 | 19,049 |
Brazil | 39,032 | 65,303 |
Colombia | 145,583 | 208,964 |
Total | 215,936 | 415,351 |
Source: Internal Financial Report
Pg. 29
PRESS RELEASE | ||
CAPEX ANDDEPRECIATION
Table 12
Payments for Additions of | Depreciation | |||
Fixed assets | ||||
Million Ch$ | 9M05 | 9M06 | 9M05 | 9M06 |
Endesa | 38,943 | 132,657 | 137,510 | 131,371 |
Cachoeira (*) | - | 874 | - | 11,504 |
Fortaleza (**) | - | 915 | - | 3,769 |
Cien (**) | - | 1,017 | - | 10,149 |
Chilectra S.A. | 31,192 | 43,903 | 12,443 | 13,411 |
Edesur S.A. | 22,890 | 27,141 | 34,343 | 32,878 |
Edelnor S.A. | 11,355 | 14,353 | 12,657 | 12,924 |
Ampla | 63,019 | 78,115 | 31,378 | 32,194 |
Coelce | 39,346 | 50,274 | 26,720 | 27,725 |
Codensa S.A. | 15,712 | 19,468 | 36,400 | 31,361 |
Cam Ltda. | 892 | 652 | 784 | 1,778 |
Inmobiliaria Manso de Velasco Ltda. | 580 | 932 | 277 | 261 |
Synapsis Soluciones y Servicios Ltda. | 2,558 | 2,190 | 1,088 | 1,563 |
Holding Enersis | 115 | 73 | 813 | 956 |
Total | 226,602 | 372,564 | 294,412 | 311,844 |
Table 12.1
Payments for Additions of | Depreciation | |||
Fixed assets | ||||
Thousand US$ | 9M05 | 9M06 | 9M05 | 9M06 |
Endesa | 72,516 | 247,020 | 256,057 | 244,625 |
Cahoeira (*) | - | 1,627 | - | 21,421 |
Fortaleza (**) | - | 1,704 | - | 7,018 |
Cien (**) | - | 1,894 | - | 18,898 |
Chilectra S.A. | 58,082 | 81,752 | 23,170 | 24,973 |
Edesur S.A. | 42,623 | 50,539 | 63,950 | 61,222 |
Edelnor S.A. | 21,144 | 26,726 | 23,569 | 24,066 |
Ampla | 117,348 | 145,457 | 58,429 | 59,948 |
Coelce | 73,265 | 93,614 | 49,755 | 51,626 |
Codensa S.A. | 29,256 | 36,252 | 67,780 | 58,397 |
Cam Ltda. | 1,660 | 1,214 | 1,460 | 3,311 |
Inmobiliaria Manso de Velasco Ltda. | 1,080 | 1,735 | 516 | 486 |
Synapsis Soluciones y Servicios Ltda. | 4,762 | 4,078 | 2,026 | 2,910 |
Holding Enersis | 213 | 136 | 1,514 | 1,780 |
Total | 421,950 | 693,748 | 548,225 | 580,681 |
(*) 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
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ANALYSISOFTHEEXCHANGERISKANDTHEINTERESTRATE
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, Argentine 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 September 30, 2006, the company has hedged in Chile, by means of USD/UF Swap operations, an amount of US$700 million on a consolidated basis and holds US$ 163 million in forward contracts, allowing an adequate managing 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$74 million in forward contracts.
With regard to interest rate risk, the company has, on a consolidated basis, a proportion of its indebtedness at a fixed rate/variable rate ratio of approximately 71.7% / 28.4% fixed / variable as of September 30, 2006. The percentage of its indebtedness at a fixed rate has decreased compared with the 82.1% / 17.9% ratio as of the same date in the previous year. This is due to the maturity of some interest rate coverage contracts during years 2005 and 2006, and to the incorporation in the consolidation perimeter, variable rate debt in Brazil, through the new subsidiary Endesa Brasil. Nevertheless, risk levels have remained within the hedging levels defined by the company’s policy.
Pg. 31
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ARGENTINA
GENERATION
The contribution of the argentine generation subsidiaries to Enersis’ consolidated operating results increased more than 37%. This improvement is mainly due to the better hydrology and the availability of our facilities that allowed capitalizing on the higher demand of energy in Argentina, which reached over 9% during the period. The greater level of generation achieved, in addition to higher electricity prices as a consequence of the recognition of greater fuel prices in the spot market, resulted in an increase in our sales and revenues in Argentina. On the other hand, the higher cost of fuel in the system, led to an increase in our cost of thermal generation when compared to the first nine months of 2005.
To contribute to the stabilization of Argentina’s electricity market, Endesa Chile accepted to participate in the Regulator’s fund FONINVEMEM created to increase the safety margins in the system through the construction of two 800 megawatt combined cycle plants, which are expected to begin operations in early 2009.
COSTANERA
Operating Income
Table 13 | |||||||
Thousand US$ | Million Ch$ | ||||||
9M 05 | 9M 06 | 9M 05 | 9M 06 | Chg % | |||
Operating Revenues | 211,812 | 252,320 | 113,749 | 135,503 | 19.1% | ||
Operating Costs | 193,135 | 245,677 | 103,720 | 131,936 | 27.2% | ||
Operating Margin | 18,677 | 6,643 | 10,030 | 3,568 | (64.4%) | ||
Selling and Administrative Expenses | 2,539 | 2,773 | 1,363 | 1,489 | 9.2% | ||
Operating Income | 16,138 | 3,870 | 8,666 | 2,079 | (76.0%) | ||
Additional Information
Table 14
Costanera | 9M05 | 9M06 | Chg % |
GWh Produced | 6,663 | 6,312 | (5.3%) |
GWh Sold | 6,683 | 6,336 | (5.2%) |
Market Share | 10.2% | 8.7% | (14.7%) |
Pg. 32
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CHOCÓN
Operating Income
Table 15 | |||||||
Thousand US$ | Million Ch$ | ||||||
9M 05 | 9M 06 | 9M 05 | 9M 06 | Chg % | |||
Operating Revenues | 57,312 | 88,397 | 30,778 | 47,472 | 54.2% | ||
Operating Costs | 35,954 | 40,947 | 19,308 | 21,990 | 13.9% | ||
Operating Margin | 21,359 | 47,450 | 11,470 | 25,482 | 122.2% | ||
Selling and Administrative Expenses | 873 | 1,067 | 469 | 573 | 22.3% | ||
Operating Income | 20,486 | 46,383 | 11,002 | 24,909 | 126.4% | ||
Additional Information
Table 16
Chocón | 9M05 | 9M06 | Chg % |
GWh Produced | 2,849 | 4,087 | 43.5% |
GWh Sold | 2,988 | 4,161 | 39.3% |
Market Share | 4.5% | 5.7% | 25.3% |
Pg. 33
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DISTRIBUTION
Edesur reported a 5% increase in energy sales as a consequence of the higher demand in the country and a 6% reduction in energy losses. Nevertheless, Operating Income decreased in 10%, mainly as a consequence of the conservative accounting criteria utilized, that reverses the revenues proceeding from the 28% VAD increase announced by the authorities and applied since November 2005. Based on the fact that the Agreement Act was as of September, not signed by the Argentine Government.
EDESUR
Operating Income
Table 17 | |||||||
Million US$ | Million Ch$ | ||||||
9M 05 | 9M 06 | 9M 05 | 9M 06 | Chg % | |||
Revenues from Sales | 318 | 318 | 170,596 | 170,767 | 0.1% | ||
Other Operating Revenues | 26 | 25 | 13,796 | 13,329 | (3.4%) | ||
Operating Revenues | 343 | 343 | 184,392 | 184,096 | (0.2%) | ||
Energy Purchases | (192) | (197) | (103,366) | (105,853) | (2.4%) | ||
Other Operating Cost | (113) | (103) | (60,741) | (55,337) | 8.9% | ||
Operating Costs | (306) | (300) | (164,107) | (161,190) | 1.8% | ||
Selling and Administrative Expenses | (42) | (48) | (22,738) | (25,598) | (12.6%) | ||
Operating Income | (5) | (5) | (2,453) | (2,692) | (9.8%) | ||
Additional Information
Table 18
Edesur | 9M05 | 9M06 | Chg % |
Customers (Th) | 2,158 | 2,189 | 1.4% |
GWh Sold | 10,498 | 11,022 | 5.0% |
Clients/Employee | 941 | 916 | (2.7%) |
Energy Losses % (6M) | 11.7% | 11.0% | (6.5%) |
Energy Losses % (TTM) | 11.6% | 10.8% | (7.0%) |
Pg. 34
PRESS RELEASE | ||
BRAZIL
ENDESABRASIL
Table 19
Thousand US$ | Million Ch$ | ||
9M 06 | 9M 06 | ||
Revenues from Sales | 1,531,133 | 822,265 | |
Other Operating Revenues | 48,660 | 26,132 | |
Operating Revenues | 1,579,793 | 848,396 | |
Energy Purchases | (737,296) | (395,950) | |
Other Operating Cost | (376,369) | (202,122) | |
Operating Costs | (1,113,665) | (598,072) | |
Selling and Administrative Expenses | (98,737) | (53,025) | |
Operating Income | 367,391 | 197,300 | |
GENERATION
In the generation business, operating income from Brazil tripled as a consequence of the creation of Endesa Brasil and its consolidation of Fortaleza. From a management perspective, when comparing results including Fortaleza’s figures to September 2005, Operating Income increased 10% as the result of greater revenues in both Cachoeira and Fortaleza. This improvement is most significantly explained by the impact of better hydrology in the southeast central region of Brazil on our level of electricity production, which translated to sales given the 4% higher demand for electricity in the country. These favorable conditions additionally led to a decrease in power purchases reducing energy and power costs.
CACHOEIRA
Operating Income
Table 20 | |||||||
Thousand US$ | Million Ch$ | ||||||
9M 05 | 9M 06 | 9M 05 | 9M 06 | Chg % | |||
Operating Revenues | 80,706 | 96,328 | 43,342 | 51,731 | 19.4% | ||
Operating Costs | (37,882) | (43,509) | (20,344) | (23,366) | (14.9%) | ||
Operating Margin | 42,824 | 52,819 | 22,998 | 28,365 | 23.3% | ||
Selling and Administrative Expenses | (6,966) | (10,095) | (3,741) | (5,421) | (44.9%) | ||
Operating Income | 35,858 | 42,723 | 19,257 | 22,944 | 19.1% | ||
Pg. 35
PRESS RELEASE | ||
Additional Information
Table 21
Cachoeira | 9M05 | 9M06 | Chg % |
GWh Produced | 2,645 | 3,159 | 19.4% |
GWh Sold | 2,898 | 3,186 | 9.9% |
Market Share | 1.2% | 1.2% | 0.0% |
FORTALEZA
Operating Income
Table 22
Thousand US$ | Thousand US$ | Million Ch$ | Million Ch$ | ||||
9M 05 | 9M 06 | 9M 05 | 9M 06 | Chg % | |||
Operating Revenues | 142,905 | 150,643 | 76,744 | 80,900 | 5.4% | ||
Operating Costs | (69,157) | (99,085) | (37,139) | (53,212) | 43.3% | ||
Operating Margin | 73,748 | 51,558 | 39,605 | 27,688 | (30.1%) | ||
Selling and Administrative Expenses | (1,180) | (1,441) | (634) | (774) | 22.1% | ||
Operating Income | 72,568 | 50,117 | 38,971 | 26,914 | (30.9%) | ||
Additional Information
Table 23
Fortaleza | 9M05 | 9M06 | Chg % |
GWh Produced | 250 | 220 | (12.1%) |
GWh Sold | 2,012 | 2,016 | 0.2% |
Market Share | - | 0.8% | - |
Pg. 36
PRESS RELEASE | ||
TRANSMISSION
CIEN
Operating Income
Table 24
Thousand US$ | Thousand US$ | Million Ch$ | Million Ch$ | ||||
9M 05 | 9M 06 | 9M 05 | 9M 06 | Chg % | |||
Operating Revenues | 239,299 | 191,968 | 128,511 | 103,093 | (19.8%) | ||
Operating Costs | (195,141) | (200,251) | (104,796) | (107,541) | 2.6% | ||
Operating Margin | 44,159 | (15,128) | 23,715 | (8,124) | (134.3%) | ||
Selling and Administrative Expenses | (5,311) | (6,524) | (2,852) | (3,503) | 22.8% | ||
Operating Income | 38,847 | (14,807) | 20,862 | (7,952) | (138.1%) | ||
Additional Information
Table 25
CIEN | 9M05 | 9M06 | Chg % |
GWh Produced | - | - | - |
GWh Sold | 5,100 | 4,747 | (6.9%) |
Market Share | - | 1.8% | - |
Pg. 37
PRESS RELEASE | ||
DISTRIBUTION
In the distribution business of our two subsidiaries, Ampla and Coelce, reported significant increases in their Operating Results as a consequence of 5% higher physical sales and 4% increase in the numbers of clients in both companies during the period, given the greater demand in the country. Additionally, energy losses were reduced in Ampla by 3% and in Coelce by 10%. Ampla continued its gradual reduction of energy losses thanks to the technical measures being applied, reaching the fifth month of energy losses under 20%. Today, we have more than 350,000 clients connected under the new technical solutions, and we will continue adding new customers to reach our target of 500,000 expected by 2008.
AMPLA
Operating Income
Table 26 | |||||||
Million US$ | Million Ch$ | ||||||
9M 05 | 9M 06 | 9M 05 | 9M 06 | Chg % | |||
Revenues from Sales | 654 | 751 | 351,344 | 403,170 | 14.8% | ||
Other Operating Revenues | 33 | 26 | 17,473 | 13,786 | (21.1%) | ||
Operating Revenues | 687 | 776 | 368,817 | 416,956 | 13.1% | ||
Energy Purchases | (327) | (344) | (175,613) | (184,629) | (5.1%) | ||
Other Operating Cost | (214) | (245) | (114,930) | (131,669) | (14.6%) | ||
Operating Costs | (541) | (589) | (290,543) | (316,298) | (8.9%) | ||
Selling and Administrative Expenses | (26) | (24) | (14,120) | (13,135) | 7.0% | ||
Operating Income | 119 | 163 | 64,154 | 87,523 | 36.4% | ||
* Please take note that these figures could differ from those accounted under Brazilian GAAP. |
Pg. 38
PRESS RELEASE | ||
Additional Information
Table 27
Ampla | 9M05 | 9M06 | Chg % |
Customers (Th) | 2,191 | 2,292 | 4.6% |
GWh Sold | 6,020 | 6,428 | 6.8% |
Clients/Employee | 1,554 | 1,612 | 3.7% |
Energy Losses % (6M) | 22.7% | 22.0% | (3.1%) |
Energy Losses % (TTM) | 22.7% | 21.8% | (3.8%) |
COELCE
Operating Income
Table 28 | |||||||
Million US$ | Million Ch$ | ||||||
9M 05 | 9M 06 | 9M 05 | 9M 06 | Chg % | |||
Revenues from Sales | 432 | 579 | 232,063 | 311,079 | 34.0% | ||
Other Operating Revenues | 13 | 12 | 7,246 | 6,670 | (8.0%) | ||
Operating Revenues | 446 | 592 | 239,309 | 317,749 | 32.8% | ||
Energy Purchases | (213) | (265) | (114,266) | (142,374) | (24.6%) | ||
Other Operating Cost | (106) | (142) | (57,184) | (76,490) | (33.8%) | ||
Operating Costs | (319) | (408) | (171,450) | (218,864) | (27.7%) | ||
Selling and Administrative Expenses | (51) | (52) | (27,253) | (27,675) | (1.5%) | ||
Operating Income | 76 | 133 | 40,606 | 71,210 | 75.4% | ||
Additional Information
Table 29
Coelce | 9M05 | 9M06 | Chg % |
Customers (Th) | 2,409 | 2,512 | 4.3% |
GWh Sold | 4,843 | 4,968 | 2.6% |
Clients/Employee | 1,842 | 1,913 | 3.9% |
Energy Losses % (6M) | 14.0% | 12.6% | (10.0%) |
Energy Losses % (TTM) | 14.1% | 13.0% | (8.2%) |
Pg. 39
PRESS RELEASE | ||
Pg. 40
PRESS RELEASE | ||
CHILE
GENERATION
Operating Income for the Chilean operations increased 74%. This positive variation is the result of the strong increase in electricity demand that led to a 7% higher energy production in a higher average electricity price market. The price in the spot market reached US$100 per MWh in April and May, mainly due to the constant cuts in natural gas supplies from Argentina. The good hydrology enabled Endesa Chile to increase the proportion of hydraulic generation while at the same time reducing its thermal generation, allowing cutting down operating costs including electricity purchases.
In relation to investment projects, Endesa Chile, is currently analyzing several facilities such as building Aysén, Palmucho, Canela, Ojos de Agua, among others.
ENDESACHILE
Consolidated Income Statement
Table 30
Million US$ | Million Ch$ | ||||||
9M05 | 9M06 | 9M05 | 9M06 | Chg % | |||
Operating Revenues | 1,677 | 1,854 | 900,817 | 995,643 | 10.5% | ||
Operating Costs | (1,061) | (1,103) | (569,898) | (592,544) | (4.0%) | ||
Selling and Administrative Expenses | (55) | (53) | (29,541) | (28,317) | 4.1% | ||
Operating Income | 561 | 698 | 301,378 | 374,782 | 24.4% | ||
Interest Income | 25 | 21 | 13,562 | 11,107 | (18.1%) | ||
Interest Expenses | (267) | (244) | (143,437) | (130,989) | 8.7% | ||
Net Financial Income (Expenses) | (242) | (223) | (129,874) | (119,882) | 7.7% | ||
Equity Gains from Related Company | 15 | 56 | 7,824 | 29,963 | - | ||
Equity Losses from Related Company | (17) | (0) | (8,891) | (172) | 98.1% | ||
Net Income from Related Companies | (2) | 55 | (1,066) | 29,791 | - | ||
Other Non Operating Income | 76 | 71 | 41,026 | 37,931 | (7.5%) | ||
Other Non Operating Expenses | (79) | (41) | (42,265) | (22,047) | 47.8% | ||
Net other Non Operating Income (Expenses) | (2) | 30 | (1,239) | 15,884 | - | ||
Price Level Restatement | 3 | 3 | 1,669 | 1,790 | 0.0% | ||
Foreign Exchange Effect | 21 | 5 | 11,027 | 2,475 | (77.6%) | ||
Net of Monetary Exposure | 24 | 8 | 12,696 | 4,265 | (66.4%) | ||
Positive Goodwill Amortization | (2) | (1) | (1,094) | (713) | 34.8% | ||
Non Operating Income | (225) | (132) | (120,578) | (70,655) | 41.4% | ||
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 337 | 566 | 180,800 | 304,127 | 68.2% | ||
Extraordinary Items | - | - | - | - | - | ||
Income Tax | (135) | (208) | (72,397) | (111,734) | (54.3%) | ||
Minority Interest | (73) | (101) | (38,991) | (54,435) | (39.6%) | ||
Negative Goodwill Amortization | 23 | 9 | 12,297 | 4,983 | (59.5%) | ||
NET INCOME | 152 | 266 | 81,709 | 142,941 | 74.9% | ||
Pg. 41
PRESS RELEASE | ||
Additional Information
Table 31
Chilean Companies | 9M05 | 9M06 | Chg % |
GWh Produced | 13,778 | 14,693 | 6.6% |
GWh Sold | 15,121 | 15,420 | 2.0% |
Market Share | 41.1% | 41.3% | 0.3% |
DISTRIBUTION
Operating Income for the Chilean operations increased by 4%, explained as a consequence of higher physical sales of 4%, which reflects the higher economic activity of the country, and the increase of 33,000 new clients. Energy losses decreased 2%, which continues to be mostly technical.
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. The bids must be received in October 31st. Let me highlight, that the second auction of 78.000 GWh, has been scheduled for 2007.
Pg. 42
PRESS RELEASE | ||
CHILECTRA
Income Statement
Table 32 | |||||||
Million US$ | Million Ch$ | ||||||
9M 05 | 9M 06 | 9M 05 | 9M 06 | Chg % | |||
Revenues from Sales | 768 | 856 | 412,534 | 459,620 | 11.4% | ||
Other Operating Revenues | 60 | 65 | 32,298 | 35,157 | 8.9% | ||
Operating Revenues | 828 | 921 | 444,832 | 494,777 | 11.2% | ||
Energy Purchases | (521) | (593) | (279,835) | (318,603) | (13.9%) | ||
Other Operating Cost | (81) | (86) | (43,754) | (46,079) | (5.3%) | ||
Operating Costs | (603) | (679) | (323,589) | (364,682) | (12.7%) | ||
Selling and Administrative Expenses | (56) | (66) | (30,112) | (35,648) | (18.4%) | ||
Operating Income | 170 | 176 | 91,131 | 94,447 | 3.6% | ||
Interest Income | 2 | 3 | 1,333 | 1,805 | 35.4% | ||
Interest Expenses | (43) | (36) | (23,349) | (19,299) | 17.3% | ||
Net Financial Income (Expenses) | (41) | (33) | (22,016) | (17,494) | 20.5% | ||
Equity Gains from Related Company | 15 | 38 | 7,879 | 20,478 | 159.9% | ||
Equity Losses from Related Company | (34) | (11) | (18,117) | (5,782) | 68.1% | ||
Net Income from Related Companies | (19) | 27 | (10,238) | 14,696 | - | ||
Other Non Operating Income | 10 | 11 | 5,288 | 6,088 | 15.1% | ||
Other Non Operating Expenses | (5) | (7) | (2,515) | (3,751) | (49.1%) | ||
Conversion Effect (BT 64) | - | - | - | - | |||
Net other Non Operating Income (Expenses) | 5 | 4 | 2,773 | 2,337 | (15.7%) | ||
Price Level Restatement | 6 | (0) | 3,347 | (169) | (105.0%) | ||
Foreign Exchange Effect | - | - | - | - | |||
Net of Monetary Exposure | 6 | (0) | 3,347 | (169) | (105.0%) | ||
Positive Goodwill Amortization | (1) | (1) | (456) | (449) | 1.5% | ||
Non Operating Income | (50) | (2) | (26,590) | (1,079) | 95.9% | ||
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 120 | 174 | 64,541 | 93,369 | 44.7% | ||
Extraordinary Items | - | - | - | - | |||
Income Tax | (29) | 219 | (15,621) | 117,391 | - | ||
Minority Interest | (1) | 1 | (489) | 527 | - | ||
Negative Goodwill Amortization | - | - | - | - | |||
NET INCOME | 90 | 393 | 48,431 | 211,287 | 336% | ||
Additional Information
Table 33
Chilectra | 9M05 | 9M06 | Chg % |
Customers (Th) | 1,396 | 1,429 | 2.4% |
GWh Sold | 8,847 | 9,235 | 4.4% |
Clients/Employee | 1,983 | 2,077 | 4.8% |
Energy Losses % (6M) | 5.6% | 5.5% | (2.1%) |
Energy Losses % (TTM) | 5.5% | 5.5% | (0.8%) |
Pg. 43
PRESS RELEASE | ||
COLOMBIA
GENERATION
In the generation business in this country, the contribution to Enersis´ consolidated operating result showed a decrease of 5%, mainly explained by lower spot prices given the good hydrology that allowed our facilities to increase electricity production. This higher generation allowed the reduction of operating costs, explained by lower energy purchases.
The attractiveness of the Colombian market, led Endesa Chile, on March 2, 2006, to buy the thermal plant Termocartagena, for around US$17 million. An additional US$15 million will be invested as part of the plan to restore the capacity of the plant to 203 MW plant This investment improves our generation mix and strengthens our commercial strategy in Colombia.
BETANIA
Operating Income
Table 34 | |||||||
Thousand US$ | Million Ch$ | ||||||
9M 05 | 9M 06 | 9M 05 | 9M 06 | Chg % | |||
Operating Revenues | 58,396 | 50,627 | 31,360 | 27,188 | (13.3%) | ||
Operating Costs | 33,891 | 30,110 | 18,200 | 16,170 | (11.2%) | ||
Operating Margin | 24,505 | 20,517 | 13,160 | 11,018 | (16.3%) | ||
Selling and Administrative Expenses | 563 | 912 | 302 | 490 | 62.1% | ||
Operating Income | 23,943 | 19,605 | 12,858 | 10,528 | (18.1%) | ||
* Please take note that these figures could differ from those accounted under Colombian GAAP. |
Additional Information
Table 35
Betania | 9M05 | 9M06 | Chg % |
GWh Produced | 1,570 | 1,733 | 10.4% |
GWh Sold | 2,043 | 2,364 | 15.7% |
Market Share | 4.0% | 4.5% | 13.1% |
Pg. 44
PRESS RELEASE | ||
EMGESA
Operating Income
Table 36Thousand US$ | Million Ch$ | |||||||||
9M 05 | 9M 06 | 9M 05 | 9M 06 | Chg % | ||||||
Operating Revenues | 325,830 | 322,100 | 174,980 | 172,977 | (1.1%) | |||||
Operating Costs | 166,709 | 168,101 | 89,528 | 90,275 | 0.8% | |||||
Operating Margin | 159,121 | 153,999 | 85,453 | 82,702 | (3.2%) | |||||
Selling and Administrative Expenses | 4,971 | 5,196 | 2,670 | 2,790 | 4.5% | |||||
Operating Income | 154,150 | 148,803 | 82,783 | 79,912 | (3.5%) | |||||
Additional Information
Table 37Emgesa | 9M05 | 9M06 | Chg % | |||
GWh Produced | 7,285 | 7,844 | 7.7% | |||
GWh Sold | 9,233 | 9,166 | (0.7%) | |||
Market Share | 18.1% | 17.5% | (3.0%) | |||
Pg. 45
PRESS RELEASE | ||
DISTRIBUTION
In the distribution business, our subsidiary Codensa registered a 34% increase in Operating Income basically associated to a 6% increase in physical sales, as well as 67,000 new customers and other related businesses. In addition, energy losses decreased 5%.
CODENSA
Operating Income
Table 38Million US$ | Million Ch$ | |||||||||
9M 05 | 9M 06 | 9M 05 | 9M 06 | Chg % | ||||||
Revenues from Sales | 451 | 462 | 242,069 | 248,338 | 2.6% | |||||
Other Operating Revenues | 139 | 159 | 74,771 | 85,523 | 14.4% | |||||
Operating Revenues | 590 | 622 | 316,840 | 333,861 | 5.4% | |||||
Energy Purchases | (260) | (261) | (139,763) | (140,009) | (0.2%) | |||||
Other Operating Cost | (156) | (146) | (83,993) | (78,210) | 6.9% | |||||
Operating Costs | (417) | (406) | (223,756) | (218,219) | 2.5% | |||||
Selling and Administrative Expenses | (16) | (19) | (8,326) | (10,422) | (25.2%) | |||||
Operating Income | 158 | 196 | 84,758 | 105,220 | 24.1% | |||||
Additional Information
Table 39Codensa | 9M05 | 9M06 | Chg % | |||
Customers (Th) | 2,055 | 2,122 | 3.2% | |||
GWh Sold | 7,469 | 7,917 | 6.0% | |||
Clients/Employee | 2,309 | 2,292 | (0.7%) | |||
Energy Losses % (6M) | 9.5% | 9.0% | (5.3%) | |||
Energy Losses % (TTM) | 9.6% | 9.1% | (5.3%) | |||
Pg. 46
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PERU
GENERATION
Our subsidiary Edegel, reported a decrease in 7% of its operating result. While the electricity production increased due to growing electricity demand in the market along with the efficiency of our hydro facilities and the merger with Etevensa as of June 2006 allowing physical sales to grow by 40%, and revenues to hike 30%, the higher costs of operations most importantly the price of fuel as a consequence of higher thermo production and depreciation resulting from the consolidation of the Ventanilla power plant, translated into lower operating income.
The merger between Edegel and Etevensa was completed on June 1, 2006. As a result, the group has become the leading generator in Peru in a system experiencing growing demand and with well-adapted regulations. This merger increases the balance between the company’s thermal and hydroelectric capacity, thus improving the generation mix. Additionally, during October the construction of Ventanilla (500 MW) and Santa Rosa (227 MW) thermal plants concluded.
EDEGEL
Operating Income
Table 40Thousand US$ | Million Ch$ | |||||||||
9M 05 | 9M 06 | 9M 05 | 9M 06 | Chg % | ||||||
Operating Revenues | 171,980 | 224,516 | 92,358 | 120,572 | 30.5% | |||||
Operating Costs | 81,876 | 137,461 | 43,970 | 73,820 | 67.9% | |||||
Operating Margin | 90,104 | 87,055 | 48,389 | 46,751 | (3.4%) | |||||
Selling and Administrative Expenses | 11,884 | 14,416 | 6,382 | 7,742 | 21.3% | |||||
Operating Income | 78,220 | 72,639 | 42,006 | 39,009 | (7.1%) | |||||
Additional Information
Table 41Edegel | 9M05 | 9M06 | Chg % | |||
GWh Produced | 3,306 | 4,837 | 46.3% | |||
GWh Sold | 3,472 | 4,847 | 39.6% | |||
Market Share | 24.1% | 29.5% | 22.8% | |||
Pg. 47
PRESS RELEASE | ||
DISTRIBUTION
Edelnor increases its operating income by 17%. During this period, our company increased its physical sales by 7% and the number of clients increased in almost 22,000 new customers.
On the other hand, 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 Perú a solid and transparent scenario to develop the electric business.
EDELNOR
Operating Income
Table 42Million US$ | Million Ch$ | |||||||||
9M 05 | 9M 06 | 9M 05 | 9M 06 | Chg % | ||||||
Revenues from Sales | 280 | 285 | 150,459 | 153,069 | 1.7% | |||||
Other Operating Revenues | 7 | 8 | 3,908 | 4,512 | 15.4% | |||||
Operating Revenues | 287 | 293 | 154,367 | 157,580 | 2.1% | |||||
Energy Purchases | (185) | (181) | (99,417) | (97,437) | 2.0% | |||||
Other Operating Cost | (34) | (34) | (18,039) | (18,270) | (1.3%) | |||||
Operating Costs | (219) | (215) | (117,455) | (115,707) | 1.5% | |||||
Selling and Administrative Expenses | (26) | (28) | (13,919) | (14,960) | (7.5%) | |||||
Operating Income | 43 | 50 | 22,993 | 26,913 | 17.0% | |||||
Additional Information
Table 43Edelnor | 9M05 | 9M06 | Chg % | |||
Customers (Th) | 920 | 942 | 2.4% | |||
GWh Sold | 3,356 | 3,605 | 7.4% | |||
Clients/Employee | 1,729 | 1,728 | (0.1%) | |||
Energy Losses % (6M) | 8.6% | 8.3% | (3.4%) | |||
Energy Losses % (TTM) | 8.6% | 8.4% | (2.0%) | |||
Pg. 48
PRESS RELEASE | ||
PARTIALLYCONSOLIDATEDINCOMESTATEMENT
(Parent Company Consolidated with Enersis International First Quarter 2006 Earnings Report)
UNDER CHILEAN GAAP, MILLION CH$
Table 443Q 06 | 3Q 05 | Var % | (in million Ch$ of 9M06) | 9M 06 | 9M 05 | Var % | ||||||||
838 | 894 | (6.3%) | Gross Operating Margin | 2,543 | 2,683 | (5.2%) | ||||||||
(4,171) | (4,393) | 5.1% | S&A Expenses | (12,688) | (12,084) | (5.0%) | ||||||||
(3,333) | (3,500) | 4.8% | Operating Income | (10,145) | (9,401) | (7.9%) | ||||||||
10,132 | 29,399 | (65.5%) | Endesa | 85,738 | 49,009 | 74.9% | ||||||||
46,729 | 32,553 | 43.5% | Chilectra | 195,692 | 61,784 | 216.7% | ||||||||
(11,632) | (3,835) | (203.3%) | Edesur | (11,007) | (12,765) | 13.8% | ||||||||
1,653 | 2,489 | (33.6%) | Edelnor | 2,252 | 5,249 | (57.1%) | ||||||||
2,791 | 419 | 566.2% | Ampla | 8,988 | (18,541) | 148.5% | ||||||||
- | 563 | (100.0%) | Coelce | - | 820 | (100.0%) | ||||||||
3,503 | 2,991 | 17.1% | Codensa | 14,390 | 10,616 | 35.6% | ||||||||
1,282 | 794 | 61.5% | CAM LTDA | 2,824 | 2,723 | 3.7% | ||||||||
812 | 742 | 9.5% | Inm Manso de Velasco | 2,555 | 1,701 | 50.2% | ||||||||
(1,029) | 426 | (341.6%) | Synapsis | 2 | 2,369 | (99.9%) | ||||||||
5,532 | - | - | Endesa Brasil | 19,544 | - | - | ||||||||
- | 4,330 | (100.0%) | CGTF | - | 6,129 | (100.0%) | ||||||||
(1,695) | (108) | - | Other | (1,695) | (4,507) | 62.4% | ||||||||
58,078 | 70,764 | (17.9%) | Net Income from Related Companies | 319,284 | 104,587 | 205.3% | ||||||||
8,984 | 11,649 | (22.9%) | Interest Income | 31,800 | 38,596 | (17.6%) | ||||||||
(13,880) | (16,551) | 16.1% | Interest Expense | (44,764) | (52,173) | 14.2% | ||||||||
(4,896) | (4,902) | 0.1% | Net Financial Income (Expenses) | (12,964) | (13,577) | 4.5% | ||||||||
1,256 | 2,402 | (47.7%) | Other Non Operating Income | 4,785 | 10,757 | (55.5%) | ||||||||
(6,793) | 793 | (956.3%) | Other Non Operating Expenses | (8,513) | (2,659) | (220.1%) | ||||||||
(5,537) | 3,196 | (273.3%) | Net other Non Operating Income (Expenses) | (3,728) | 8,097 | (146.0%) | ||||||||
(1,551) | (696) | (123.0%) | Price Level Restatement | (2,022) | (1,406) | (43.7%) | ||||||||
(2,380) | (25,183) | 90.6% | Foreign Exchange Effect | 4,638 | (21,141) | 121.9% | ||||||||
(3,931) | (25,878) | 84.8% | Net Monetary Exposure | 2,616 | (22,547) | 111.6% | ||||||||
(13,637) | (13,654) | 0.1% | Positive Goodwill Amortization | (40,935) | (40,983) | 0.1% | ||||||||
30,078 | 29,525 | 1.9% | Non Operating Income | 264,272 | 35,576 | 642.8% | ||||||||
26,745 | 26,025 | 2.8% | Net Income before (1), (2) & (3) | 254,127 | 26,175 | - | ||||||||
(4,532) | 7,550 | (160.0%) | Income Tax (1) | (10,651) | 12,460 | (185.5%) | ||||||||
10 | 10 | 1.5% | Negative Goodwill Amortization (2) | 30 | 31 | (2.8%) | ||||||||
- | - | NA | Minority Interest (3) | - | - | |||||||||
22,223 | 33,585 | (33.8%) | NET INCOME | 243,506 | 38,667 | 529.8% | ||||||||
0.68 | 1.03 | EPS (Ch$) | 7.46 | 1.18 | 529.8% | |||||||||
0.06 | 0.10 | EPADS (US$) | 0.69 | 0.11 | 529.8% | |||||||||
32,651,166 | 32,651,166 | Common Shares Outstanding (Th) | 32,651,166 | 32,651,166 | 0.0% | |||||||||
Pg. 49
PRESS RELEASE | ||
UNDER CHILEAN GAAP, THOUSAND US$
Table 44.13Q 06 | 3Q 05 | Var % | (in thousand US$ of 9M06) | 9M 06 | 9M 05 | Var % | ||||||
1,560 | 1,664 | (6.3%) | Gross Operating Margin | 4,736 | 4,996 | (5.2%) | ||||||
(7,766) | (8,181) | 5.1% | S&A Expenses | (23,627) | (22,502) | (5.0%) | ||||||
(6,207) | (6,517) | 4.8% | Operating Income | (18,891) | (17,506) | (7.9%) | ||||||
18,867 | 54,744 | (65.5%) | Endesa | 159,652 | 91,260 | 74.9% | ||||||
87,013 | 60,617 | 43.5% | Chilectra | 364,396 | 115,047 | 216.7% | ||||||
(21,659) | (7,141) | (203.3%) | Edesur | (20,496) | (23,770) | 13.8% | ||||||
3,078 | 4,635 | (33.6%) | Edelnor | 4,194 | 9,774 | (57.1%) | ||||||
5,198 | 780 | 566.2% | Ampla | 16,736 | (34,525) | 148.5% | ||||||
- | 1,049 | (100.0%) | Coelce | - | 1,527 | (100.0%) | ||||||
6,522 | 5,570 | 17.1% | Codensa | 26,795 | 19,767 | 35.6% | ||||||
2,387 | 1,479 | 61.5% | CAM LTDA | 5,259 | 5,070 | 3.7% | ||||||
1,512 | 1,382 | 9.5% | Inm Manso de Velasco | 4,758 | 3,168 | 50.2% | ||||||
(1,916) | 793 | (341.6%) | Synapsis | 5 | 4,411 | (99.9%) | ||||||
10,301 | - | - | Endesa Brasil | 36,393 | - | - | ||||||
- | 8,062 | (100.0%) | CGTF | - | 11,413 | (100.0%) | ||||||
(3,157) | (202) | - | Others | (3,157) | (8,392) | 62.4% | ||||||
108,147 | 131,769 | (17.9%) | Net Income from Related Companies | 594,536 | 194,750 | 205.3% | ||||||
16,729 | 21,691 | (22.9%) | Interest Income | 59,214 | 71,869 | (17.6%) | ||||||
(25,845) | (30,820) | 16.1% | Interest Expense | (83,355) | (97,151) | 14.2% | ||||||
(9,116) | (9,128) | 0.1% | Net Financial Income (Expenses) | (24,140) | (25,282) | 4.5% | ||||||
2,338 | 4,474 | (47.7%) | Other Non Operating Income | 8,909 | 20,030 | (55.5%) | ||||||
(12,649) | 1,477 | (956.3%) | Other Non Operating Expenses | (15,852) | (4,952) | (220.1%) | ||||||
(10,311) | 5,951 | (273.3%) | Net other Non Operating Income (Expenses) | (6,942) | 15,078 | (146.0%) | ||||||
(2,888) | (1,295) | (123.0%) | Price Level Restatement | (3,765) | (2,619) | (43.7%) | ||||||
(4,431) | (46,893) | 90.6% | Foreign Exchange Effect | 8,637 | (39,366) | 121.9% | ||||||
(7,320) | (48,188) | 84.8% | Net Monetary Exposure | 4,872 | (41,985) | 111.6% | ||||||
(25,393) | (25,425) | 0.1% | Positive Goodwill Amortization | (76,226) | (76,315) | 0.1% | ||||||
56,007 | 54,978 | 1.9% | Non Operating Income | 492,099 | 66,247 | 642.8% | ||||||
49,801 | 48,461 | 2.8% | Net Income before (1), (2) & (3) | 473,208 | 48,741 | - | ||||||
(8,439) | 14,059 | (160.0%) | Income Tax (1) | (19,834) | 23,202 | (185.5%) | ||||||
19 | 18 | 1.5% | Negative Goodwill Amortization (2) | 56 | 58 | (2.8%) | ||||||
- | - | NA | Minority Interest (3) | - | - | 0.0% | ||||||
41,380 | 62,539 | (33.8%) | NET INCOME | 453,430 | 72,002 | 529.8% | ||||||
0.68 | 1.03 | EPS (Ch$) | 7.46 | 1.18 | 529.8% | |||||||
0.06 | 0.10 | EPADS (US$) | 0.69 | 0.11 | 529.8% | |||||||
32,651,166 | 32,651,166 | Common Shares Outstanding (Th) | 32,651,166 | 32,651,166 | 0.0% | |||||||
Pg. 50
PRESS RELEASE | ||
OWNERSHIP OF THE COMPANY AS OF SEPTEMBER 30, 2006
CONFERENCECALLINVITATION
Enersis is pleased to inform you that it will hold a conference call to review its results for the period, on Friday, October 27, 2006, at 11:00 AM EST (Eastern Standard Time) (12:00 noon Chilean time). To participate, please dial +1 (617) 213-8853 or +1 (866) 831-6224 (toll free USA), approximately 10 minutes prior to the scheduled start time, Passcode ID: 42686097
The phone replay will be available between October 27, 2006, and November 3, 2006, dialing +1 (617) 801-6888 or 1+ (888) 286-8010 (toll free USA) Passcode ID: 68051534
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 presentation”.
Pg. 51
PRESS RELEASE | ||
CONTACT INFORMATION
For further information, please contact us:
Susana Rey
Head of Investor Relations
srm@e.enersis.cl
56 (2) 353 4554
Denisse Labarca | Marcela Muñoz | Ignacio Gonzalez | Carmen Poblete | |||
Investor Relations | Investor Relations | Investor Relations | Investor Relations | |||
Representative | Representative | Representative | Representative | |||
dla@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. 52
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: October. 26, 2006