FORM 6-K
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of April, 2007
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
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ENERSIS ANNOUNCES CONSOLIDATED RESULTS FOR
THE FIRST QUARTER MARCH 31, 2007
HIGHLIGHTS FOR THEPERIOD
[All figures in Chilean Pesos]
- Operating Revenues increased 12.6% to Ch$1,072,808 million, as a consequence of 18.1% higher revenues in generation and transmission business and of 9.5% higher revenues in distribution business.
- Operating Margin grew 24.6%, reaching Ch$411,966 million.
- EBITDA grew 22.6% reaching Ch$464,029 million.
- Energy demand continued growing in all our subsidiaries in the operating countries, as follows
• | Chile | 5.1% | |
• | Argentina | 8.8% | |
• | Brasil | 3.7% | |
• | Colombia | 8.1% | |
• | Perú | 6.9% |
- Physical sales continued growing, with increases of 6.3% in distribution and 8.0% in generation.
- Our client base in distribution continue growing, increasing as of March, 2007 by 375 thousand new customers.
- Energy losses, at aggregate level, diminished from 11.3% to 11.1%.
- Enersis’ Chilean stock price increased 39.7% and ADR grew 37.4%, reaching Ch$176.00 and US$16.29 respectively.
- Our market capitalization reached Ch$5,746,605 million, achieving a significant improvement of 39.7%.
- As of April 18th, 2007, a new node price was published by the authority, to be effective for the period within May and October 2007, reaching US$73.17 per MWh, revealing an increase of 8.7%.
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TABLE OF
CONTENTS
HIGHLIGHTS FOR THE PERIOD | 1 | |
TABLE OF | ||
CONTENTS | 1 | |
GENERAL INFORMATION | 4 | |
SIMPLIFIED ORGANIZATIONAL STRUCTURE | 5 | |
MARKET INFORMATION | 6 | |
EQUITY MARKET | 6 | |
MARKET PERCEPTION | 9 | |
DEBT MARKET | 9 | |
RISK RATING CLASSIFICATION | 10 | |
CORPORATE RISK RATING CLASSIFICATION: | 10 | |
DOMESTIC RISK RATING CLASSIFICATION: | 10 | |
CONSOLIDATED INCOME STATEMENT | 11 | |
UNDER CHILEAN GAAP, MILLION CH$ | 11 | |
UNDER CHILEAN GAAP, THOUSAND US$ | 12 | |
CONSOLIDATED INCOME STATEMENT ANALYSIS | 12 | |
NET INCOME | 13 | |
OPERATING INCOME | 13 | |
NON OPERATING INCOME | 14 | |
EVOLUTION OF KEY FINANCIAL RATIOS | 14 | |
CONSOLIDATED BALANCE SHEET | 16 | |
ASSETS UNDER CHILEAN GAAP, MILLION CH$ | 16 | |
ASSETS UNDER CHILEAN GAAP, THOUSAND US$ | 17 | |
LIABILITIES AND SHAREHOLDERS EQUITY UNDER CHILEAN GAAP, MILLION CH$ | 18 | |
LIABILITIES AND SHAREHOLDERS EQUITY UNDER CHILEAN GAAP, THOUSAND US$ | 19 | |
CONSOLIDATED BALANCE SHEET ANALYSIS | 20 | |
DEBT MATURITY WITH THIRD PARTIES, MILLION CH$ | 22 | |
DEBT MATURITY WITH THIRD PARTIES, THOUSAND US$ | 22 | |
CONSOLIDATED CASH FLOW | 23 | |
UNDER CHILEAN GAAP, MILLION CH$ | 23 | |
UNDER CHILEAN GAAP, THOUSAND US$ | 25 | |
CONSOLIDATED CASH FLOW ANALYSIS | 27 | |
CASH FLOW RECEIVED FROM FOREIGN SUBSIDIARIES BY ENERSIS, CHILECTRA AND ENDESA CHILE (*) | 28 | |
CAPEX AND DEPRECIATION | 29 | |
ANALYSIS OF THE EXCHANGE RISK AND THE INTEREST RATE | 30 |
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ARGENTINA | 31 | |
GENERATION | 31 | |
Costanera | 31 | |
Chocón | 32 | |
DISTRIBUTION | 32 | |
Edesur | 33 | |
BRAZIL | 34 | |
Endesa Brasil | 34 | |
GENERATION | 34 | |
Cachoeira Dourada | 34 | |
Fortaleza | 35 | |
TRANSMISSION | 36 | |
Cien | 36 | |
DISTRIBUTION | 37 | |
Ampla | 37 | |
Coelce | 38 | |
CHILE | 39 | |
GENERATION | 39 | |
Endesa Chile | 39 | |
DISTRIBUTION | 40 | |
Chilectra | 40 | |
COLOMBIA | 42 | |
GENERATION | 42 | |
Betania | 43 | |
Emgesa | 42 | |
DISTRIBUTION | 44 | |
Codensa | 44 | |
PERU | 45 | |
GENERATION | 45 | |
Edegel | 45 | |
DISTRIBUTION | 46 | |
Edelnor | 46 | |
PARTIALLY CONSOLIDATED INCOME STATEMENT | 47 | |
UNDER CHILEAN GAAP, MILLION CH$ | 47 | |
UNDER CHILEAN GAAP, THOUSAND US$ | 48 | |
CONFERENCE CALL INVITATION | 49 | |
CONTACT INFORMATION | 50 | |
DISCLAIMER | 50 |
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GENERALINFORMATION
(Santiago, Chile, April 25, 2007) Enersis S.A. (NYSE: ENI), announced today its consolidated financial results for the quarter ended March 31, 2007. All figures are in both US$ and Ch$, under Chilean Generally Accepted Accounting Principles (Chilean GAAP), as seen in the standardized form required by Chilean authorities (FECU). Variations refer to the period between March 31, 2006 and March 31, 2007. Year 2006 figures have been adjusted by the accounting convention for CPI variation between both periods, equal to 2.7% .
For the purpose of converting Chilean pesos (Ch$) into US dollars (US$), we have used the exchange rate prevailing as of March 31, 2007 for both periods under comparison, equal to US$1 = Ch$539.21. The Chilean peso depreciated by 2.4% against the US$ comparing March 31, 2007 with March 31, 2006.
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) and Codensa.
In the following pages you will find a detailed analysis of financial statements, a brief explanation for most important changes, and comments on main items in the Income and Cash Flow Statements compared to the information as of March 2006.
[*] Consolidated since October 2005 and including Endesa Fortaleza, CIEN, Cachoeira Dourada, Ampla and Coelce.
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SIMPLIFIEDORGANIZATIONALSTRUCTURE
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MARKETINFORMATION
EQUITYMARKET
New York Stock Exchange (NYSE)
Over the last 12 months, the Enersis’ ADR stock price increased 37.4%, from US$11.86 to US$16.29, over the 11.21% increase of the Dow Jones Industrial Index. The growth of the ADR price has been higher than the Adrian Index performance1, which reached a growing rate of 33.5% .
The chart below presents the performance of Enersis stock listing in NYSE (“ENI”) against Dow Jones and the DJ Utilities benchmarks:
Stock price variation v/s Local Stock Index
Daily Average Transactions Volume
(1 ADR = 50 local shares)
Source: Bloomberg
____________________________
1 ADRIAN Index is a Bolsa Electrónica de Chile’s composite global index for ADRs listed in the United States.
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Bolsa de Comercio de Santiago (BCS)
Over the last 12 months, the Enersis’ Chilean stock price increased 39.7%, from Ch$126.00 to Ch$176.00. This variation is compared with the 34.2% increase on the IPSA Index.
Stock price variation v/s Local Stock Index
Daily Average Transactions Volume
Bolsa de Comercio de Santiago
Source: Bloomberg
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Bolsa de Comercio de Madrid (Latibex)
Over the last 12 months, the Enersis’ share price in the Latin American market of the Madrid Stock Exchange, (Latibex) increased from € 9.95 to € 12.13. The chart below presents the performance of XENI stock listing in the Madrid Stock Exchange against Latibex.
Stock price variation v/s Local Stock Index
Daily Average Transactions Volume
(1 unit = 50 local shares)
Source: Bloomberg
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MARKETPERCEPTION
The research released during the period on Enersis shows the following target prices for the Company’s ADR.
Table 1 | ||||
Publication Date | Company | Main Analyst | Target Price | Recommendation |
US$ | ||||
13-Dec-06 | Santander | Raimundo Valdés | 17.3 | Buy |
21-Dec-06 | Alfa Corredores | Rodrigo Cristi | 17.3 | In Revision |
17-Jan-07 | Bear Stearn | Rowe Michels | 16 | Peer Perform |
04-Feb-07 | Penta | Jorge Palavecino | 18.1 | Neutral |
07-Feb-07 | Raymond James | Ricardo Cavanagh | 17.5 | Buy |
16-Feb-07 | Deutsche Bank | Marcus Sequeira | 19.5 | Buy |
13-Mar-07 | Banchile (*) | Sergio Zapata | 16.8 | Hold |
27-Mar-07 | UBS (**) | Brian Chase | 17.9 | Neutral 2 |
24-Apr-07 | Larraín Vial | Cristián Ramírez | 20.6 | Overweight |
25-Apr-07 | Merrill Lynch | Frank McGann | 22.0 | Buy |
ADR average target price (US$) | 18.3 | |||
(*) The analyst used an exchange rate of Ch$550.00 forecasted by Banchile as of Dec-07 |
(**) UBS only estimates the local share target price, therefore we have used an exchange rate at the report publication's date |
(Ch$537.45) for making the conversion to ADR price. |
Source: Bloomberg and market researches
DEBTMARKET
The following chart shows the pricing of our Yankee Bonds during the last twelve months.
Enersis Yankee Bonds
Source: Bloomberg
It is important to mention that, the Yankee Bond for US$ 300 million maturating 2006 was paid on December 1st, 2006.
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RISKRATINGCLASSIFICATION
CORPORATE RISK RATING CLASSIFICATION:
Moody’s: Baa3 / Stable
Rationale (14/12/06)
“Moody’s upgraded its rating for Enersis and for its 60% owned subsidiary, Endesa Chile, from Ba1 to Baa3, both withStable Outlook. With this rating action, both companies achieved “investment grade” category. Moody’s upgrade was mainly due to the companies’ higher financial flexibility and liquidity, and based also in the fact that the financial performance has raised markedly over the last two years as a result of improvements in the regulatory framework and higher demand for electricity in the countries in which the companies operate; namely, Chile, Colombia, Peru, Brazil and Argentina.
The ratings were placed onStable Outlook, reflecting the stable scenario in the region, with higher prices for electricity, better economic conditions, strong increase in electricity demand and a lower regulatory uncertainty.”
Standard & Poor’s: BBB- / Positive
Rationale (15/12/05)
Standard & Poor's Ratings placed the 'BBB-' ratings on Chile-based electricity provider Enersis S.A. on CreditWatch with positive implications due to the improvement of the company's consolidated debt service coverage ratios and financial flexibility.
Standard & Poor's expects to resolve the CreditWatch listing after completing a detailed analysis of Endesa Chile's projected cash flow for the period from 2007 to 2011, including its exposure water availability and capital expenditures.”
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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CONSOLIDATEDINCOMESTATEMENT
UNDERCHILEANGAAP, MILLIONCH$
Table 2
CONS. INCOME STATEMENT - (million Ch$) | 1Q 06 | 1Q 07 | Var 06-07 | Chg % |
Revenues from Generation & Transmission | 380.192 | 448.870 | 68.678 | 18,1% |
Revenues from Distribution | 642.955 | 703.903 | 60.948 | 9,5% |
Revenues from Engineering and Real Estate | 7.630 | 9.151 | 1.521 | 19,9% |
Revenues from Other Businesses | 41.414 | 39.276 | (2.138) | (5,2%) |
Consolidation Adjustments | (119.076) | (128.391) | (9.315) | (7,8%) |
Operating Revenues | 953.115 | 1.072.808 | 119.693 | 12,6% |
Costs from Generation | (227.463) | (247.724) | (20.261) | (8,9%) |
Costs from Distribution | (467.424) | (494.747) | (27.323) | (5,8%) |
Costs from Engineering and Real Estate | (5.960) | (7.150) | (1.190) | (20,0%) |
Costs from Other Businesses | (33.513) | (33.318) | 195 | 0,6% |
Consolidation Adjustments | 111.858 | 122.097 | 10.239 | 9,2% |
Operating Costs | (622.501) | (660.842) | (38.341) | (6,2%) |
Operating Margin | 330.614 | 411.966 | 81.352 | 24,6% |
SG&A from Generation | (10.442) | (12.436) | (1.994) | (19,1%) |
SG&A from Distribution | (43.572) | (44.028) | (456) | (1,0%) |
SG&A from Engineering and Real Estate | (851) | (789) | 62 | 7,3% |
SG&A from Other Businesses | (9.138) | (8.951) | 187 | 2,0% |
Consolidation Adjustments | 7.916 | 7.997 | 81 | 1,0% |
Selling and Administrative Expenses | (56.088) | (58.208) | (2.120) | (3,8%) |
Operating Income | 274.526 | 353.758 | 79.232 | 28,9% |
Interest Income | 27.014 | 27.284 | 270 | 1,0% |
Interest Expense | (96.269) | (106.863) | (10.594) | (11,0%) |
Net Interest (Expense) | (69.255) | (79.579) | (10.324) | (14,9%) |
Equity Gains from Related Companies | 2.756 | 661 | (2.095) | (76,0%) |
Equity Losses from Related Companies | (65) | (2.058) | (1.992) | - |
Net Income from Related Companies | 2.691 | (1.396) | (4.087) | N/A |
Other Non Operating Income | 32.296 | 52.971 | 20.675 | 64,0% |
Other Non Operating Expenses | (71.828) | (95.399) | (23.571) | (32,8%) |
Net other Non Operating Income (Expense) | (39.532) | (42.428) | (2.896) | (7,3%) |
Price Level Restatement | 179 | (134) | (313) | (174,9%) |
Foreign Exchange Effect | 2.117 | 185 | (1.932) | (91,3%) |
Net of Monetary Exposure | 2.296 | 51 | (2.245) | (97,8%) |
Positive Goodwill Amortization | (14.022) | (13.993) | 29 | 0,2% |
Non Operating Income | (117.822) | (137.345) | (19.523) | (16,6%) |
Net Inc b. Taxes, Min Int and Neg Goodwill Amort. | 156.704 | 216.413 | 59.709 | 38,1% |
Extraordinary Items | - | - | - | N/A |
Income Tax | 36.903 | (97.646) | (134.549) | N/A |
Minority Interest | (51.103) | (65.754) | (14.651) | (28,7%) |
Negative Goodwill Amortization | 2.499 | 1.128 | (1.371) | (54,9%) |
NET INCOME | 145.003 | 54.141 | (90.862) | (62,7%) |
EBITDA | 378.575 | 464.029 | 85.454 | 22,6% |
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UNDERCHILEANGAAP, THOUSANDUS$
Table 2.1 | ||||
CONS. INCOME STATEMENT - (thousand US$) | 1Q 06 | 1Q 07 | Var 06-07 | Chg % |
Revenues from Generation & Transmission | 705.091 | 832.459 | 127.368 | 18,1% |
Revenues from Distribution | 1.192.401 | 1.305.432 | 113.031 | 9,5% |
Revenues from Engineering and Real Estate | 14.151 | 16.971 | 2.820 | 19,9% |
Revenues from Other Businesses | 76.805 | 72.840 | (3.965) | (5,2%) |
Consolidation Adjustments | (220.834) | (238.110) | (17.276) | (7,8%) |
Operating Revenues | 1.767.614 | 1.989.593 | 221.979 | 12,6% |
Costs from Generation | (421.844) | (459.421) | (37.577) | (8,9%) |
Costs from Distribution | (866.868) | (917.541) | (50.673) | (5,8%) |
Costs from Engineering and Real Estate | (11.054) | (13.260) | (2.206) | (20,0%) |
Costs from Other Businesses | (62.152) | (61.790) | 362 | 0,6% |
Consolidation Adjustments | 207.448 | 226.436 | 18.988 | 9,2% |
Operating Costs | (1.154.469) | (1.225.574) | (71.105) | (6,2%) |
Operating Margin | 613.145 | 764.019 | 150.874 | 24,6% |
SG&A from Generation | (19.366) | (23.063) | (3.697) | (19,1%) |
SG&A from Distribution | (80.808) | (81.653) | (845) | (1,0%) |
SG&A from Engineering and Real Estate | (1.579) | (1.464) | 115 | 7,3% |
SG&A from Other Businesses | (16.946) | (16.601) | 345 | 2,0% |
Consolidation Adjustments | 14.681 | 14.830 | 149 | 1,0% |
Selling and Administrative Expenses | (104.019) | (107.950) | (3.931) | (3,8%) |
Operating Income | 509.126 | 656.069 | 146.943 | 28,9% |
Interest Income | 50.099 | 50.600 | 501 | 1,0% |
Interest Expense | (178.537) | (198.184) | (19.647) | (11,0%) |
Net Interest (Expense) | (128.439) | (147.585) | (19.146) | (14,9%) |
Equity Gains from Related Companies | 5.111 | 1.226 | (3.885) | (76,0%) |
Equity Losses from Related Companies | (121) | (3.817) | (3.696) | - |
Net Income from Related Companies | 4.990 | (2.592) | (7.582) | N/A |
Other Non Operating Income | 59.896 | 98.238 | 38.342 | 64,0% |
Other Non Operating Expenses | (133.209) | (176.923) | (43.714) | (32,8%) |
Net other Non Operating Income (Expense) | (73.314) | (78.685) | (5.371) | (7,3%) |
Price Level Restatement | 332 | (248) | (580) | (174,9%) |
Foreign Exchange Effect | 3.925 | 343 | (3.582) | (91,3%) |
Net of Monetary Exposure | 4.258 | 95 | (4.163) | (97,8%) |
Positive Goodwill Amortization | (26.005) | (25.951) | 54 | 0,2% |
Non Operating Income | (218.509) | (254.718) | (36.209) | (16,6%) |
Net Inc b. Taxes, Min Int and Neg Goodwill Amort. | 290.618 | 401.351 | 110.733 | 38,1% |
Extraordinary Items | - | - | - | N/A |
Income Tax | 68.440 | (181.090) | (249.530) | N/A |
Minority Interest | (94.773) | (121.945) | (27.172) | (28,7%) |
Negative Goodwill Amortization | 4.634 | 2.092 | (2.542) | (54,9%) |
NET INCOME | 268.918 | 100.408 | (168.510) | (62,7%) |
EBITDA | 702.091 | 860.571 | 158.480 | 22,6% |
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CONSOLIDATEDINCOMESTATEMENTANALYSIS
(Source in Ch$ FECU)
NETINCOME
As of March 2007, net income decreased 62.7% down to Ch$54,141 million compared to the same period as of 2006, whereby net income was Ch$145,003 million. This is mainly explained by the one time-effect recognition of the positive effect of deferred taxes for Ch$110,580 million due to the merger between Chilectra and Elesur, occurred on March, 2006. If we isolate this effect and compare in homogeneous terms, we would appreciate an improvement of 57.3%
OPERATINGINCOME
Operating income as of March 2007 amounted to Ch$353,758 million, presenting an increase of Ch$79,232 million (which means an improvement of 28.9%) comparing to Ch$274,526 recorded the same period previous year. If we take into account the 2.4% devaluation effect of Chilean peso against US$ (from Ch$526.18 to Ch$539.21), Operating Income improves by 28.5% .
Table 4 | ||||||||
1Q06 | 1Q07 | |||||||
Operating | Operating Costs | SG & A | Operating | Operating | Operating Costs | SG& A | Operating | |
Million Ch$ | Revenues | Income | Revenues | Income | ||||
Endesa Chile | 297,603 | (166,958) | (8,287) | 122,358 | 394,424 | (213,751) | (10,092) | 170,581 |
Cachoeira (*) | 15,410 | (7,541) | (874) | 6,995 | 19,072 | (7,695) | (751) | 10,626 |
Fortaleza (**) | 28,339 | (17,239) | (243) | 10,857 | 25,012 | (13,612) | (324) | 11,076 |
Cien (**) | 44,320 | (40,629) | (1,031) | 2,660 | 26,208 | (27,154) | (1,359) | (2,305) |
Chilectra | 156,394 | (117,383) | (11,685) | 27,326 | 180,342 | (138,681) | (10,427) | 31,234 |
Edesur | 67,949 | (52,668) | (7,933) | 7,348 | 78,410 | (63,375) | (9,560) | 5,475 |
Distrilima (Edelnor) | 54,590 | (40,872) | (4,845) | 8,873 | 56,183 | (39,579) | (4,906) | 11,698 |
Ampla | 148,418 | (108,713) | (4,517) | 35,188 | 150,788 | (97,868) | (5,735) | 47,185 |
Investluz (Coelce) | 104,546 | (71,851) | (11,356) | 21,339 | 113,278 | (68,583) | (9,627) | 35,068 |
Codensa | 111,060 | (75,937) | (3,426) | 31,697 | 124,902 | (86,662) | (3,745) | 34,495 |
CAM Ltda. | 28,318 | (24,452) | (2,088) | 1,778 | 24,870 | (21,549) | (2,457) | 864 |
Inmobiliaria Manso de Velasco Ltda. | 1,019 | (608) | (624) | (213) | 1,820 | (1,314) | (533) | (27) |
Synapsis Soluciones y Servicios IT Ltda. | 11,908 | (8,731) | (1,990) | 1,187 | 13,229 | (10,707) | (2,011) | 511 |
Enersis Holding and other investment vehicles | 1,180 | (330) | (4,870) | (4,020) | 1,177 | (1,061) | (4,453) | (4,337) |
Consolidation Adjustments | (117,939) | 111,411 | 7,681 | 1,153 | (136,907) | 130,749 | 7,772 | 1,614 |
Total Consolidation | 953,115 | (622,501) | (56,088) | 274,526 | 1,072,808 | (660,842) | (58,208) | 353,758 |
Table 4.1 | ||||||||
1Q06 | 1Q07 | |||||||
Operating | Operating Costs | SG & A | Operating | Operating | Operating Costs | SG& A | Operating | |
Thousand US$ | Revenues | Income | Revenues | Income | ||||
Endesa Chile | 551,925 | (309,634) | (15,368) | 226,923 | 731,484 | (396,416) | (18,716) | 316,352 |
Cachoeira (*) | 28,579 | (13,985) | (1,622) | 12,973 | 35,371 | (14,271) | (1,392) | 19,708 |
Fortaleza (**) | 52,556 | (31,971) | (451) | 20,134 | 46,387 | (25,245) | (600) | 20,542 |
Cien (**) | 82,194 | (75,348) | (1,913) | 4,933 | 48,605 | (50,359) | (2,521) | (4,274) |
Chilectra | 290,043 | (217,694) | (21,670) | 50,678 | 334,456 | (257,193) | (19,338) | 57,925 |
Edesur | 126,016 | (97,676) | (14,713) | 13,626 | 145,417 | (117,532) | (17,730) | 10,155 |
Distrilima (Edelnor) | 101,241 | (75,800) | (8,985) | 16,456 | 104,194 | (73,401) | (9,098) | 21,695 |
Ampla | 275,251 | (201,616) | (8,377) | 65,258 | 279,647 | (181,502) | (10,636) | 87,508 |
Investluz (Coelce) | 193,887 | (133,253) | (21,060) | 39,574 | 210,081 | (127,192) | (17,854) | 65,034 |
Codensa | 205,967 | (140,830) | (6,354) | 58,783 | 231,639 | (160,720) | (6,945) | 63,973 |
CAM Ltda. | 52,517 | (45,348) | (3,872) | 3,297 | 46,124 | (39,964) | (4,557) | 1,603 |
Inmobiliaria Manso de Velasco Ltda. | 1,889 | (1,128) | (1,157) | (395) | 3,375 | (2,438) | (989) | (51) |
Synapsis Soluciones y Servicios IT Ltda. | 22,084 | (16,192) | (3,691) | 2,200 | 24,534 | (19,857) | (3,730) | 948 |
Enersis Holding and other investment vehicles | 2,188 | (612) | (9,032) | (7,455) | 2,182 | (1,968) | (8,259) | (8,044) |
Consolidation Adjustments | (218,726) | 206,618 | 14,245 | 2,137 | (253,903) | 242,483 | 14,414 | 2,993 |
Total Consolidation | 1,767,614 | (1,154,469) | (104,019) | 509,126 | 1,989,593 | (1,225,574) | (107,950) | 656,069 |
(*) | 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. |
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NONOPERATINGINCOME
The company’s non-operating losses increased 16.6%, from a loss of Ch$117,822 million to a loss of Ch$137,345 million. This is mainly explained by:
Net Interest Expensesincreasedby Ch$10,324 million or 14.9%, from Ch$69,255 million to Ch$79,579 million, due to higher average debt mainly through our subsidiaries CIEN and Ampla, in addition to the outstanding debt of Etevensa at the date of the merger with Edegel (June 1st, 2006), as well as increasing in interest rates used in refinancing from US$ to local denominated debt basically in CIEN. Further, Edesur shows a rise of Ch$3,722 million in interests due to higher service quality fines.
Income from investments in related companies decreased Ch$4,087 million, showing a net loss of Ch$1,396 million compared to an income of Ch$2,691 million as of March, 2006. This is mainly explained by lower profits in Gas Atacama by Ch$3,943 million proceeding from continuous natural gas restrictions from Argentina.
Amortization on positive goodwill remains with no significant variations, decreasing 0.2% to Ch$13,993.
Net other non-operating incomeworsen from a net loss of Ch$39,532 million to a net loss of Ch$42,428. The main reasons for this variation are,
- Equity Tax in Colombia of Ch$16,448 million.
- Net losses of Ch$14,775 million proceeding from conversion adjustments to Chilean norms in order to compliance Technical Bulletin N° 64, mainly through subsidiaries in Brazil, Colombia and Peru.
- Reliquidations of energy and power in SIC by Ch$6,889 million.
These items were partially compensated by:
- Tariff adjustment from previous periods in Edesur by Ch$27,968 million.
- Lower expenses from provisions and contingencies by Ch$9,152 million, mainly in Endesa Chile.
The Foreign Exchange Effectdecreased by Ch$1,932 million, decreasing from a positive income of Ch$ 2,117 million whereby Chilean peso devaluated 2.7% against US$, to an income of Ch$185 million, where Chilean peso devaluated 1.2% against US$. The aforementioned is due to the active mismatch position in US$ that the company has held in both exercises.
Income tax and Deferred taxregistered a net expense of Ch$97,646 million, which compared with the profit of Ch$36,903 million in March 2006, presents a negative variation of Ch$134,549 million.
The increase of Ch$25,497 million inincome tax is mainly explained by higher provisions in Endesa Chile by Ch$13,079 million, in Edesur by Ch$8,900 million, in CIEN by Ch$5,634 million and in Coelce by Ch$4,342 million. The aforementioned is in part offset by lower expenses in Codensa by Ch$5,443 million and in Chilectra by Ch$4,702 million.
Deferred taxes, which do not constitute cash flow, registered a negative variation of Ch$109,052 million mainly explained by the one time effect recognized in Chilectra for Ch$110,580 million as consequence of the merger between Elesur and Chilectra. This merger implied, for Elesur, a reversion adjustment in the provisions on valuations upon accumulated tax losses, as booked in previous exercises.
Amortization on negative goodwill decreased Ch$1,371 million, reaching an amount of Ch$1,128 million, explained by the final amortization regarding the purchase of the first stake in Betania, which effect is a lower amortization of Ch$1,355 million.
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EVOLUTIONOFKEYFINANCIALRATIOS
Table 5 | |||||
Indicator | Unit | 1Q06 | 1Q07 | Var 06-07 | Chg % |
Liquidity | Times | 1.06 | 1.25 | 0.19 | 17.9% |
Acid ratio test * | Times | 0.97 | 1.16 | 0.19 | 19.6% |
Working capital | million Ch$ | 92,888 | 368,187 | 275,299 | N/A |
Working capital | th. US$ | 172,266 | 682,826 | 510,560 | N/A |
Leverage ** | Times | 0.90 | 0.96 | 0.06 | 6.7% |
Short-term debt | % | 0.31 | 0.27 | (0.04) | (12.9%) |
Long-term debt | % | 0.69 | 0.73 | 0.04 | 5.8% |
Interest Coverage*** | Times | 4.26 | 4.59 | 0.33 | 7.7% |
EBITDA**** | th. US$ | 702,091 | 860,571 | 158,480 | 22.6% |
ROE | % | 5.18% | 1.84% | (3.34%) | (64.5%) |
ROA | % | 1.33% | 0.48% | (0.85%) | (63.9%) |
* 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 1.25 times, which represents an improvement of 17.9% . This means that the company is showing stronger liquidity, reducing its obligations with banks through cash surplus and structuring an adequate debt maturity calendar.
Leverage reached 0.96 times, maintaining slightly higher as in the same period last year, increasing 6.7% .
Interest Coverage improved 7.7% to 4.59 times, mainly due to the increase in operating results for the Group, which more than offset the higher financial expenses.
ROE reached 1.84%, decreasing regard 5.18% seen as of March 2006, mainly explained by the lower net income as of March, 2007, due to the lower net income as a consequence of the positive one time effect due to the merger between Chilectra and Elesur, occurred in the year 2006. If we isolate this effect and compare in homogeneous terms, we would appreciate an improvement from 1.23% to 1.84% in this indicator.
ROA decreased from 1.33% as of March, 2006, to 0.48% as of March, 2007, reflecting the lower net income on this quarter due to the merger between Chilectra and Elesur. If we isolate this effect and compare in homogeneous terms, we would appreciate an improvement from 0.32% to 0.48% in this indicator.
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CONSOLIDATEDBALANCESHEET
ASSETSUNDERCHILEANGAAP,MILLIONCH$
Table 6 | ||||
ASSETS - (million Ch$) | 1Q 06 | 1Q 07 | Var 06-07 | Chg % |
CURRENT ASSETS | ||||
Cash | 57,844 | 50,598 | (7,246) | (12.5%) |
Time deposits | 388,260 | 345,251 | (43,009) | (11.1%) |
Marketable securities | 7,155 | 17,674 | 10,519 | - |
Accounts receivable, net | 775,780 | 919,609 | 143,829 | 18.5% |
Notes receivable, net | 4,233 | 8,081 | 3,849 | 90.9% |
Other accounts receivable, net | 67,974 | 108,909 | 40,935 | 60.2% |
Amounts due from related companies | 99,407 | 24,046 | (75,361) | (75.8%) |
Inventories | 73,529 | 77,103 | 3,574 | 4.9% |
Income taxes recoverable | 57,015 | 45,095 | (11,920) | (20.9%) |
Prepaid expenses | 61,992 | 51,532 | (10,460) | (16.9%) |
Deferred income taxes | 53,195 | 56,221 | 3,026 | 5.7% |
Other current assets | 24,432 | 160,791 | 136,359 | - |
Total currrent assets | 1,670,817 | 1,864,911 | 194,094 | 11.6% |
PROPERTY, PLANT AND EQUIPMENT | ||||
Land | 134,610 | 134,459 | (151) | (0.1%) |
Buildings and infraestructure and works in progress | 10,865,559 | 11,095,816 | 230,257 | 2.1% |
Machinery and equipment | 1,840,244 | 2,048,371 | 208,127 | 11.3% |
Other plant and equipment | 446,858 | 594,355 | 147,497 | 33.0% |
Technical appraisal | 188,496 | 187,640 | (856) | (0.5%) |
Sub - Total | 13,475,767 | 14,060,640 | 584,873 | 4.3% |
Accumulated depreciation | (5,480,482) | (5,909,678) | (429,197) | (7.8%) |
Total property, plant and equipment | 7,995,286 | 8,150,962 | 155,676 | 1.9% |
OTHER ASSETS | ||||
Investments in related companies | 106,928 | 116,622 | 9,694 | 9.1% |
Investments in other companies | 26,558 | 24,416 | (2,142) | (8.1%) |
Positive goodwill, net | 699,221 | 642,574 | (56,647) | (8.1%) |
Negative goodwill, net | (34,898) | (44,691) | (9,793) | (28.1%) |
Long-term receivables | 135,643 | 145,387 | 9,744 | 7.2% |
Amounts due from related companies | - | 91,684 | 91,684 | N/A |
Deferred income taxes | 12,015 | 10,189 | (1,826) | - |
Intangibles | 86,434 | 93,060 | 6,626 | 7.7% |
Accumulated amortization | (52,064) | (57,166) | (5,102) | (9.8%) |
Others assets | 253,306 | 310,132 | 56,826 | 22.4% |
Total other assets | 1,233,142 | 1,332,206 | 99,064 | 8.0% |
TOTAL ASSETS | 10,899,245 | 11,348,079 | 448,834 | 4.1% |
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ASSETSUNDERCHILEANGAAP,THOUSANDUS$
Table 6.1 | ||||
ASSETS - (thousand US$) | 1Q 06 | 1Q 07 | Var 06-07 | Chg % |
CURRENT ASSETS | ||||
Cash | 107,275 | 93,838 | (13,437) | (12.5%) |
Time deposits | 720,054 | 640,291 | (79,763) | (11.1%) |
Marketable securities | 13,269 | 32,777 | 19,508 | - |
Accounts receivable, net | 1,438,735 | 1,705,476 | 266,741 | 18.5% |
Notes receivable, net | 7,850 | 14,988 | 7,138 | 90.9% |
Other accounts receivable, net | 126,062 | 201,979 | 75,917 | 60.2% |
Amounts due from related companies | 184,357 | 44,595 | (139,762) | (75.8%) |
Inventories | 136,365 | 142,993 | 6,628 | 4.9% |
Income taxes recoverable | 105,738 | 83,632 | (22,106) | (20.9%) |
Prepaid expenses | 114,969 | 95,570 | (19,399) | (16.9%) |
Deferred income taxes | 98,653 | 104,265 | 5,612 | 5.7% |
Other current assets | 45,311 | 298,197 | 252,886 | - |
Total currrent assets | 3,098,639 | 3,458,599 | 359,960 | 11.6% |
PROPERTY, PLANT AND EQUIPMENT | ||||
Land | 249,644 | 249,363 | (281) | (0.1%) |
Buildings and infraestructure and works in progres | 20,150,886 | 20,577,913 | 427,027 | 2.1% |
Machinery and equipment | 3,412,852 | 3,798,837 | 385,985 | 11.3% |
Other plant and equipment | 828,727 | 1,102,269 | 273,542 | 33.0% |
Technical appraisal | 349,578 | 347,990 | (1,588) | (0.5%) |
Sub - Total | 24,991,686 | 26,076,372 | 1,084,686 | 4.3% |
Accumulated depreciation | (10,163,910) | (10,959,883) | (795,973) | (7.8%) |
Total property, plant and equipment | 14,827,777 | 15,116,489 | 288,712 | 1.9% |
OTHER ASSETS | ||||
Investments in related companies | 198,305 | 216,283 | 17,978 | 9.1% |
Investments in other companies | 49,253 | 45,281 | (3,972) | (8.1%) |
Positive goodwill, net | 1,296,751 | 1,191,695 | (105,056) | (8.1%) |
Negative goodwill, net | (64,720) | (82,882) | (18,162) | (28.1%) |
Long-term receivables | 251,558 | 269,629 | 18,071 | 7.2% |
Amounts due from related companies | - | 170,033 | 170,033 | N/A |
Deferred income taxes | 22,283 | 18,896 | (3,387) | - |
Intangibles | 160,297 | 172,585 | 12,288 | 7.7% |
Accumulated amortization | (96,556) | (106,018) | (9,462) | (9.8%) |
Others assets | 469,772 | 575,160 | 105,388 | 22.4% |
Total other assets | 2,286,942 | 2,470,663 | 183,721 | 8.0% |
TOTAL ASSETS | 20,213,358 | 21,045,751 | 832,393 | 4.1% |
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LIABILITIES ANDSHAREHOLDERSEQUITYUNDERCHILEANGAAP,MILLIONCH$
Table 7 | ||||
LIABILITIES AND SHAREHOLDER´S EQUITY - (million Ch$) | 1Q 06 | 1Q 07 | Var 06-07 | Chg % |
CURRENT LIABILITIES | ||||
Short-term debt due to banks and financial institutions | 148,638 | 139,222 | (9,416) | (6.3%) |
Current portion of long-term debt due to banks and financial instit | 128,661 | 143,070 | 14,409 | 11.2% |
Current portion of bonds payable | 456,940 | 236,948 | (219,992) | (48.1%) |
Current portion of long-term notes payable | 32,151 | 42,220 | 10,069 | 31.3% |
Dividends payable | 44,183 | 35,685 | (8,498) | (19.2%) |
Accounts payable | 315,952 | 388,275 | 72,322 | 22.9% |
Short-term notes payable | 17,403 | 11,466 | (5,938) | (34.1%) |
Miscellaneous payables | 83,155 | 109,913 | 26,758 | 32.2% |
Accounts payable to related companies | 50,936 | 30,214 | (20,721) | (40.7%) |
Accrued expenses | 76,560 | 71,883 | (4,677) | (6.1%) |
Withholdings | 73,197 | 108,626 | 35,429 | 48.4% |
Income taxes payable | 77,810 | 97,958 | 20,147 | 25.9% |
Anticipated income | 2,944 | 3,636 | 692 | 23.5% |
Reinbursable financial contribution | 1,586 | 874 | (712) | (44.9%) |
Other current liabilities | 67,812 | 76,735 | 8,923 | 13.2% |
Total current liabilities | 1,577,929 | 1,496,724 | (81,205) | (5.1%) |
LONG-TERM LIABILITIES | ||||
Due to banks and financial institutions | 620,485 | 1,005,122 | 384,638 | 62.0% |
Bonds payable | 2,142,378 | 2,176,049 | 33,671 | 1.6% |
Long -term notes payable | 114,115 | 112,574 | (1,540) | (1.3%) |
Accounts payables | 63,878 | 152,360 | 88,482 | - |
Amounts payable to related companies | 13,963 | 11,394 | (2,568) | (18.4%) |
Accrued expenses | 453,130 | 348,160 | (104,970) | (23.2%) |
Deferred income taxes | - | - | - | N/A |
Reinbursable financial contribution | 4,053 | 3,007 | (1,046) | (25.8%) |
Other long-term liabilities | 177,847 | 245,867 | 68,020 | 38.2% |
Total long-term liabilities | 3,589,849 | 4,054,535 | 464,686 | 12.9% |
Minority interest | 2,933,264 | 2,856,631 | (76,633) | (2.6%) |
SHAREHOLDERS´ EQUITY | ||||
Paid-in capital, no par value | 2,429,478 | 2,415,284 | (14,194) | (0.6%) |
Additional paid-in capital | (7,288) | 4,831 | 12,119 | - |
Additional paid-in capital (share premium) | 172,616 | 172,468 | (148) | (0.1%) |
Other reserves | (213,619) | (228,392) | (14,773) | 6.9% |
Total capital and reserves | 2,381,187 | 2,364,191 | (16,995) | (0.7%) |
Retained earnings | 272,013 | 522,039 | 250,026 | 91.9% |
Net income for the period | 145,003 | 54,141 | (90,862) | (62.7%) |
Interim dividends | - | - | - | - |
Deficits of subsidaries in development stage | - | (182) | (182) | - |
Total retained earnings | 417,016 | 575,998 | 158,982 | 38.1% |
Total shareholder´s equity | 2,798,203 | 2,940,189 | 141,986 | 5.1% |
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY | 10,899,245 | 11,348,079 | 448,834 | 4.1% |
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LIABILITIES ANDSHAREHOLDERSEQUITYUNDERCHILEANGAAP,THOUSANDUS$
Table 7.1 | ||||
LIABILITIES - (thousand US$) | 1Q 06 | 1Q 07 | Var 06-07 | Chg % |
CURRENT LIABILITIES | ||||
Short-term debt due to banks and financial institutions | 275,658 | 258,196 | (17,462) | (6.3%) |
Current portion of long-term debt due to banks and financial in | 238,610 | 265,333 | 26,723 | 11.2% |
Current portion of bonds payable | 847,424 | 439,435 | (407,989) | (48.1%) |
Current portion of long-term notes payable | 59,626 | 78,299 | 18,673 | 31.3% |
Dividends payable | 81,940 | 66,179 | (15,761) | (19.2%) |
Accounts payable | 585,954 | 720,080 | 134,126 | 22.9% |
Short-term notes payable | 32,275 | 21,264 | (11,011) | (34.1%) |
Miscellaneous payables | 154,217 | 203,840 | 49,623 | 32.2% |
Accounts payable to related companies | 94,464 | 56,035 | (38,429) | (40.7%) |
Accrued expenses | 141,986 | 133,312 | (8,674) | (6.1%) |
Withholdings | 135,749 | 201,454 | 65,705 | 48.4% |
Income taxes payable | 144,304 | 181,669 | 37,365 | 25.9% |
Anticipated income | 5,460 | 6,744 | 1,284 | 23.5% |
Reinbursable financial contribution | 2,942 | 1,621 | (1,321) | (44.9%) |
Other current liabilities | 125,762 | 142,309 | 16,547 | 13.2% |
Total current liabilities | 2,926,371 | 2,775,771 | (150,600) | (5.1%) |
LONG-TERM LIABILITIES | ||||
Due to banks and financial institutions | 1,150,729 | 1,864,065 | 713,336 | 62.0% |
Bonds payable | 3,973,179 | 4,035,625 | 62,446 | 1.6% |
Long -term notes payable | 211,633 | 208,777 | (2,856) | (1.3%) |
Accounts payables | 118,467 | 282,562 | 164,095 | - |
Amounts payable to related companies | 25,894 | 21,132 | (4,762) | (18.4%) |
Accrued expenses | 840,359 | 645,686 | (194,673) | (23.2%) |
Deferred income taxes | - | - | - | N/A |
Reinbursable financial contribution | 7,517 | 5,577 | (1,940) | (25.8%) |
Other long-term liabilities | 329,830 | 455,977 | 126,147 | 38.2% |
Total long-term liabilities | 6,657,608 | 7,519,399 | 861,791 | 12.9% |
Minority interest | 5,439,929 | 5,297,808 | (142,121) | (2.6%) |
SHAREHOLDERS´ EQUITY | ||||
Paid-in capital, no par value | 4,505,625 | 4,479,302 | (26,323) | (0.6%) |
Additional paid-in capital | (13,517) | 8,959 | 22,476 | - |
Additional paid-in capital (share premium) | 320,128 | 319,854 | (274) | (0.1%) |
Other reserves | (396,171) | (423,568) | (27,397) | 6.9% |
Total capital and reserves | 4,416,066 | 4,384,547 | (31,519) | (0.7%) |
Retained earnings | 504,466 | 968,156 | 463,690 | 91.9% |
Net income for the period | 268,918 | 100,408 | (168,510) | (62.7%) |
Interim dividends | - | - | - | - |
Deficits of subsidaries in development stage | - | (338) | (338) | - |
Total retained earnings | 773,384 | 1,068,226 | 294,842 | 38.1% |
Total shareholder´s equity | 5,189,449 | 5,452,773 | 263,324 | 5.1% |
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY | 20,213,358 | 21,045,751 | 832,393 | 4.1% |
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CONSOLIDATEDBALANCESHEETANALYSIS
The Company’sTotal Assets increased Ch$448.834 million. This was due to:
• | Current Assetsincreased by Ch$194,094 million, equivalent to a 11.6%, mainly due to: | |
• | An increase in accounts receivable Ch$143,829 million, principally due to a rise in billing from distribution subsidiaries Codensa by Ch$63,710 million, Costanera by Ch$16,813 million, Endesa Chile by Ch$15,460 million, Chilectra by Ch$15,721 million, Ampla by Ch$12,894 million, Emgesa by Ch$11,890 million, and Chocón by Ch$5,123 million. | |
• | An increase in another current assets by Ch$136,359 million, principally due to an increment in of sell back instruments in Endesa Chile, Chilectra and Enersis of Ch$134,098 million. | |
• | An increase in other accounts receivable by Ch$40,935 million due mainly to increase in Chilean generation subsidiaries as result of tolls reliquidations by Ch$8,391 million and Ch$7,810 million of suppliers anticipated payments in Chilean subsidiaries by Ch$7,810 million, in Codensa by Ch$7,188 million, in Coelce by Ch$4,971 million and in Túnel Melón by Ch$2,574 million. | |
• | Decrease in amounts due to related companies by Ch$75,361 million, mainly due to renewal until year 2008 of an intercompany loan with Atacama Finance by Ch$91,684 million, partially offset by increasings in accounts receivable from Sistemas SEC by Ch$7,325 million and from GNL Chile by Ch$4,983 million. | |
• | Decrease in time deposits by Ch$43,009 million, due to redeems in Codensa by Ch$50,941 million in order to pay capital reductions, CIEN by Ch$22,225 million for payment of obligations, Cachoeira Dourada by Ch$17,373 million for dividends payment and Edelnor by Ch$13,049 million. The aforementioned partially offset by an increase in time deposits of Endesa Brasil by Ch$35,655 million, Ampla by Ch$15,436 million and Costanera by Ch$15,036 million. | |
• | Fixed Assetsincreased by Ch$155,677 million, equivalent to 1,9% explained mainly by new fixed assets addition of approximately Ch$528,000 million, fixed assets inclusion due to consolidation of Etevensa of Ch$126,807 million. The above mentioned is in part offset by fixed asset depreciation for around Ch$420.000 million and fixed asset sales of Ch$44,866 million and also due to the real exchange rate effect on foreign companies’ assets as result of the policy settled in Technical Bulletin N°64 related to register in historical US$ non monetary assets belonging to subsidiaries located in unstable countries by Ch$13,547 million. | |
• | Other assetsincreased by Ch$99,064 million, explained mainly as follows: | |
• | Increase in amounts due to related companies by Ch$91,684 million, mainly due to renewal until year 2008 of a loan made to Atacama Finance by the same amount. | |
• | Increase in other accounts receivables of Ch$56,826 million mainly due to increasing in fair value of derivative instruments by Ch$54,642 million. | |
• | Decrease in positive goodwill by Ch$56,647 million. | |
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Total Liabilities increase by Ch$448,834 million, due to:
• | Long term liabilitiesincreased of Ch$464,686 million or 12.9% due to: | |
• | Increase of Ch$384,638 million in bank liabilities corresponding increase in Enersis by Ch$142,814 million, Betania by Ch$61,322 million, CGTF of Ch$61,293 million, Chocón by Ch$53,921 million, CIEN by Ch$41,923 million, Ampla by Ch$32,653 million and Edesur by Ch$20,063 million. The above mentioned is partially offset with decrease in Pehuenche by Ch$13,479 million, Tesa by Ch$12,460 million and Celta by Ch$4,407 million. | |
• | Increase in other accounts payable of Ch$88,482 million, due to increasing in Edegel by Ch$57,840 and in Endesa Brasil by Ch$29,197 million. | |
• | Increase in other long term liabilities by Ch$68,020 million mainly due to increasing in Enersis by Ch$38,036 million for derivatives fair value and Edesur by Ch$15,511 million. | |
• | Decrease in provisions by Ch$104,970 million, due to lower provisions on labor and third parties contingencies of CGTF, Ampla, Coelce and CIEN by Ch$104,603 million. | |
• | Short-term liabilitiesdecreased Ch$81,205 million or 5.1% as a result of: | |
• | Decrease in bonds payable of Ch$219,992 million due to payments for Enersis of Ch$165,845 million, Emgesa of Ch$42,700 million, Edegel of Ch$40,823 million and Endesa Chile of Ch$38,030 million, partially offset by reclassifications to short term in Ampla of Ch$76,048 million. | |
• | Increase in payable accounts of Ch$72,322 million due to the increase in Costanera by Ch$23,131 million, Endesa Chile by Ch$12,239, Coelce by Ch$9,291 and Edegel by Ch$9,176 million. | |
• | Increase in miscellaneous payable accounts of Ch$26,757 million as result of increases in Coelce of Ch$7,544 million, Codensa of Ch$5,863 million and Edegel of Ch$5,457 million respectively. | |
• | Increase in income taxes of Ch$20,147 million, it is worth mentioning the increase of Edelnor in Ch$8,481 million, Pangue with Ch$6,555 million and Codensa with Ch$5,424 million. | |
Minority interestreached Ch$2,856,631 million, decreasing near to 2.6% equal to Ch$76,633 million, almost the same amount of the actualization regard first quarter 2006, which is equal to 2.7% .
Shareholders’ Equity increased by Ch$141,986 million. This variation is mainly explained by the increase of Ch$249,844 million in retained earnings, partially offset by the negative variation of net income for the period by Ch$90,862.
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Table 8
TOTAL | |||||||
Million Ch$ | 2007 | 2008 | 2009 | 2010 | 2011 | Balance | |
Chile | 26,649 | 405,267 | 342,074 | 128,535 | 48,223 | 1,008,985 | 1,959,734 |
Enersis | 1,624 | 179,656 | 1,719 | 1,719 | 1,818 | 435,150 | 621,685 |
Chilectra | - | - | - | - | - | - | - |
Other (*) | 2,827 | 2,334 | 238 | 119 | - | - | 5,518 |
Endesa Chile (**) | 22,199 | 223,277 | 340,117 | 126,697 | 46,405 | 573,836 | 1,332,531 |
Argentina | 44,604 | 61,500 | 67,402 | 39,781 | 33,142 | 2,175 | 248,604 |
Edesur | 10,607 | 29,615 | 27,252 | 8,697 | - | - | 76,171 |
Costanera | 33,996 | 25,594 | 27,569 | 18,503 | 10,675 | 2,175 | 118,512 |
Chocon | - | 6,291 | 12,582 | 12,582 | 22,467 | - | 53,921 |
Hidroinvest | - | - | - | - | - | - | - |
CTM | - | - | - | - | - | - | - |
Tesa | - | - | - | - | - | - | - |
Perú | 80,732 | 80,556 | 51,387 | 23,950 | 24,501 | 91,648 | 352,774 |
Edelnor | 34,648 | 5,080 | 12,574 | 5,080 | 7,602 | 35,150 | 100,136 |
Edegel | 46,083 | 75,476 | 38,813 | 18,869 | 16,899 | 56,498 | 252,638 |
Brazil | 44,722 | 127,281 | 101,227 | 174,063 | 134,514 | 180,843 | 762,649 |
Endesa Brasil | - | - | - | - | - | - | - |
Coelce | 19,693 | 25,776 | 25,196 | 19,417 | 19,417 | 34,746 | 144,246 |
Ampla | 15,380 | 93,495 | 68,252 | 93,891 | 53,935 | 52,740 | 377,694 |
Cachoeira | 2,480 | 587 | - | - | - | - | 3,067 |
Cien | 2,612 | 2,538 | 2,538 | 55,133 | 55,133 | 53,840 | 171,794 |
Fortaleza | 4,556 | 4,886 | 5,241 | 5,621 | 6,029 | 39,517 | 65,850 |
Colombia | 108,801 | - | 90,189 | 19,399 | 147,709 | 276,217 | 642,314 |
Codensa | 92,902 | - | 12,309 | 19,399 | 49,236 | 97,734 | 271,580 |
Emgesa | 1,538 | - | 77,880 | - | - | 103,396 | 182,814 |
Betania | 14,361 | - | - | - | 98,472 | 75,087 | 187,920 |
TOTAL | 305,507 | 674,605 | 652,278 | 385,728 | 388,089 | 1,559,868 | 3,966,076 |
(*) | Includes: CAM |
(**) | Includes: Endesa Chile Internacional, Pangue, Pehuenche, San Isidro, Celta and Tunel El Melon. |
DEBTMATURITY,THOUSANDUS$
Table 8.1
TOTAL | |||||||
Thousand US$ | 2007 | 2008 | 2009 | 2010 | 2011 | Balance | |
Chile | 49,423 | 751,594 | 634,398 | 238,377 | 89,433 | 1,871,229 | 3,634,454 |
Enersis | 3,011 | 333,183 | 3,188 | 3,188 | 3,371 | 807,013 | 1,152,955 |
Chilectra | - | - | - | - | - | - | - |
Other (*) | 5,242 | 4,329 | 442 | 221 | - | - | 10,234 |
Endesa Chile (**) | 41,170 | 414,082 | 630,768 | 234,968 | 86,061 | 1,064,216 | 2,471,265 |
Argentina | 82,720 | 114,056 | 125,002 | 73,777 | 61,464 | 4,034 | 461,052 |
Edesur | 19,672 | 54,923 | 50,541 | 16,129 | - | - | 141,264 |
Costanera | 63,048 | 47,466 | 51,128 | 34,314 | 19,797 | 4,034 | 219,788 |
Chocon | - | 11,667 | 23,333 | 23,333 | 41,667 | - | 100,000 |
Hidroinvest | - | - | - | - | - | - | - |
CTM | - | - | - | - | - | - | - |
Tesa | - | - | - | - | - | - | - |
Peru | 149,722 | 149,397 | 95,301 | 44,417 | 45,439 | 169,967 | 654,242 |
Edelnor | 64,258 | 9,422 | 23,320 | 9,422 | 14,099 | 65,188 | 185,709 |
Edegel | 85,464 | 139,975 | 71,982 | 34,995 | 31,340 | 104,778 | 468,533 |
Brazil | 82,940 | 236,052 | 187,731 | 322,811 | 249,465 | 335,384 | 1,414,383 |
Endesa Brasil | - | - | - | - | - | - | - |
Coelce | 36,522 | 47,803 | 46,728 | 36,011 | 36,011 | 64,439 | 267,513 |
Ampla | 28,524 | 173,393 | 126,578 | 174,128 | 100,026 | 97,809 | 700,457 |
Cachoeira | 4,600 | 1,088 | - | - | - | - | 5,688 |
Cien | 4,845 | 4,706 | 4,706 | 102,248 | 102,248 | 99,850 | 318,603 |
Fortaleza | 8,449 | 9,062 | 9,719 | 10,424 | 11,181 | 73,287 | 122,122 |
Colombia | 201,778 | - | 167,261 | 35,977 | 273,935 | 512,263 | 1,191,213 |
Codensa | 172,293 | - | 22,828 | 35,977 | 91,312 | 181,254 | 503,663 |
Emgesa | 2,853 | - | 144,433 | - | - | 191,755 | 339,040 |
Betania | 26,633 | - | - | - | 182,623 | 139,254 | 348,510 |
TOTAL | 566,583 | 1,251,099 | 1,209,693 | 715,358 | 719,736 | 2,892,877 | 7,355,345 |
(*) | Includes: CAM |
(**) | Includes: Endesa Chile Internacional, Pangue, Pehuenche, San Isidro, Celta and Tunel El Melon. |
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CONSOLIDATEDCASHFLOW
UNDERCHILEANGAAP, MILLIONCH$
Table 9 | ||||
Million Ch$ | 1Q 06 | 1Q 07 | Var 06-07 | Chg % |
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | ||||
Net income (loss) for the year | 145,003 | 54,141 | (90,862) | (62.7%) |
Gain (losses) from sales of assets: | ||||
Losses (gain) on sale of property, plant and equipment | (166) | 15 | 181 | N/A |
Charges (credits) to income which do not represent cash flows: | ||||
Depreciation | 101,448 | 108,100 | 6,652 | 6.6% |
Amortization of intangibles | 2,600 | 2,171 | (429) | (16.5%) |
Write-offs and accrued expenses | 7,434 | 6,323 | (1,111) | (14.9%) |
Equity in income of related companies | (2,756) | (661) | 2,095 | 76.0% |
Equity in losses of related companies | 65 | 2,058 | 1,993 | - |
Amortization of positive goodwill | 14,022 | 13,993 | (29) | (0.2%) |
Amortization of negative goodwill | (2,499) | (1,128) | 1,371 | 54.9% |
Price-level restatement, net | (179) | 134 | 313 | N/A |
Exchange difference, net | (2,117) | (185) | 1,932 | 91.3% |
Other credits to income which do not represent cash flows | (10,039) | (9,893) | 146 | 1.5% |
Other charges to income which do not represent cash flows | 27,505 | 38,304 | 10,799 | 39.3% |
Changes in assets which affect cash flows: | - | N/A | ||
Decrease (increase) in trade receivables | (5,754) | (78,346) | (72,592) | - |
Decrease (increase) in inventory | 2,188 | (10,685) | (12,873) | N/A |
Decrease (increase) in other assets | (204,447) | (39,115) | 165,332 | 80.9% |
Changes in liabilities which affect cash flow: | ||||
Decreased (increase) in payable accounts associated with operating results | 50,751 | 13,231 | (37,520) | (73.9%) |
Decreased (increase) of payable interest | 13,470 | (5,055) | (18,525) | N/A |
Decreased (increase) in income tax payable | 15,926 | (40,199) | (56,125) | N/A |
Decreased (increase) in other accounts payable associated with non-operating results | 20,815 | 56,051 | 35,236 | 169.3% |
Decreased (increase) in value added tax and other similar taxes payable, net | (2,763) | 8,443 | 11,206 | N/A |
Income (loss) attributable to minority interest | 51,103 | 65,754 | 14,651 | 28.7% |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | 221,611 | 183,449 | (38,162) | (17.2%) |
Pg. 23
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Cont. Table 9 | ||||
Million Ch$ | 1Q 06 | 1Q 07 | Var 06-07 | Chg % |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of shares issued to minorities | - | - | - | N/A |
Proceeds from debt issuance | 218,900 | 360,372 | 141,472 | 64.6% |
Proceeds from bond issuance | 51,221 | 105,906 | 54,685 | 106.8% |
Proceeds from loans obtained from related companies | - | - | - | N/A |
Proceeds from other loans obtained from related companies | - | - | - | N/A |
Other sources of financing | 5 | 234 | 229 | - |
Capital paid | - | - | - | N/A |
Dividends paid | (33,347) | (118,443) | (85,096) | - |
Payment of debt | (174,914) | (260,658) | (85,744) | (49.0%) |
Payment of bonds | (82,387) | (19,652) | 62,735 | 76.1% |
Payments of loans obtained from related companies | (2,048) | - | 2,048 | N/A |
Payments of other loans obtained from related companies | - | - | - | N/A |
Payments of shares issuance costs | - | - | - | N/A |
Payments of bonds issuance costs | - | - | - | N/A |
Other disbursements for financing | (1,616) | (525) | 1,091 | 67.5% |
NET CASH FLOW FROM FINANCING ACTIVITIES | (24,186) | 67,234 | 91,420 | 378.0% |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from sale of property, plant and equipment | 134 | 496 | 362 | - |
Sale of investment | - | - | - | N/A |
Other loans received from related companies | - | - | - | N/A |
Other receipts from investments | 725 | - | (725) | N/A |
Additions to property, plant and equipment | (114,528) | (121,935) | (7,407) | (6.5%) |
Long-term investments | (13,018) | (31,975) | (18,957) | (145.6%) |
Investment in financing instruments | - | - | - | N/A |
Other loans granted to related companies | - | (4,143) | (4,143) | N/A |
Other investment disbursements | (725) | (80) | 645 | 89.0% |
NET CASH FLOW FROM INVESTMENT ACTIVITIES | (127,413) | (157,636) | (30,223) | (23.7%) |
NET CASH FLOW FOR THE PERIOD | 70,012 | 93,047 | 23,035 | 32.9% |
EFFECT OF PRICE-LEVEL RESTATEMENT ON CASH AND CASH EQUIVALENT | 14,184 | 14,297 | 113 | 0.8% |
NET VARIATION ON CASH AND CASH EQUIVALENT | 84,196 | 107,344 | 23,148 | 27.5% |
CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE YEAR | 368,926 | 440,971 | 72,045 | 19.5% |
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD | 453,122 | 548,314 | 95,192 | 21.0% |
Pg. 24
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UNDERCHILEANGAAP,THOUSANDUS$
Table 9.1 | ||||
Thousand US$ | 1Q 06 | 1Q 07 | Var 06-07 | Chg % |
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | ||||
Net income (loss) for the year | 268,918 | 100,408 | (168,510) | (62.7%) |
Gain (losses) from sales of assets: | ||||
Losses (gain) on sale of property, plant and equipment | (308) | 27 | 335 | N/A |
Charges (credits) to income which do not represent cash flows: | ||||
Depreciation | 188,142 | 200,478 | 12,336 | 6.6% |
Amortization of intangibles | 4,823 | 4,026 | (797) | (16.5%) |
Write-offs and accrued expenses | 13,787 | 11,726 | (2,061) | (14.9%) |
Equity in income of related companies | (5,111) | (1,226) | 3,885 | 76.0% |
Equity in losses of related companies | 121 | 3,816 | 3,695 | - |
Amortization of positive goodwill | 26,005 | 25,951 | (54) | (0.2%) |
Amortization of negative goodwill | (4,634) | (2,092) | 2,542 | 54.9% |
Price-level restatement, net | (332) | 248 | 580 | N/A |
Exchange difference, net | (3,925) | (343) | 3,582 | 91.3% |
Other credits to income which do not represent cash flows | (18,618) | (18,346) | 272 | 1.5% |
Other charges to income which do not represent cash flows | 51,010 | 71,038 | 20,028 | 39.3% |
Changes in assets which affect cash flows: | ||||
Decrease (increase) in trade receivables | (10,672) | (145,298) | (134,626) | - |
Decrease (increase) in inventory | 4,057 | (19,817) | (23,874) | N/A |
Decrease (increase) in other assets | (379,160) | (72,541) | 306,619 | 80.9% |
Changes in liabilities which affect cash flow: | ||||
Decreased (increase) in payable accounts associated with operating results | 94,121 | 24,537 | (69,584) | (73.9%) |
Decreased (increase) of payable interest | 24,980 | (9,374) | (34,354) | N/A |
Decreased (increase) in income tax payable | 29,536 | (74,552) | (104,088) | N/A |
Decreased (increase) in other accounts payable associated with non-operating results | 38,603 | 103,951 | 65,348 | 169.3% |
Decreased (increase) in value added tax and other similar taxes payable, net | (5,123) | 15,658 | 20,781 | N/A |
Income (loss) attributable to minority interest | 94,773 | 121,945 | 27,172 | 28.7% |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | 410,992 | 340,218 | (70,774) | (17.2%) |
Pg. 25
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Cont. Table 9.1 | ||||
Thousand US$ | 1Q 06 | 1Q 07 | Var 06-07 | Chg % |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of shares issued to minorities | - | - | - | N/A |
Proceeds from debt issuance | 405,964 | 668,333 | 262,369 | 64.6% |
Proceeds from bond issuance | 94,993 | 196,409 | 101,416 | 106.8% |
Proceeds from loans obtained from related companies | - | - | - | N/A |
Proceeds from other loans obtained from related companies | - | - | - | N/A |
Other sources of financing | 9 | 433 | 424 | - |
Capital paid | - | - | - | N/A |
Dividends paid | (61,844) | (219,659) | (157,815) | - |
Payment of debt | (324,389) | (483,408) | (159,019) | (49.0%) |
Payment of bonds | (152,792) | (36,446) | 116,346 | 76.1% |
Payments of loans obtained from related companies | (3,798) | - | 3,798 | N/A |
Payments of other loans obtained from related companies | - | - | - | N/A |
Payments of shares issuance costs | - | - | - | N/A |
Payments of bonds issuance costs | - | - | - | N/A |
Other disbursements for financing | (2,997) | (973) | 2,024 | 67.5% |
NET CASH FLOW FROM FINANCING ACTIVITIES | (44,855) | 124,690 | 169,545 | 378.0% |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from sale of property, plant and equipment | 249 | 920 | 671 | - |
Sale of investment | - | - | - | N/A |
Other loans received from related companies | - | - | - | N/A |
Other receipts from investments | 1,345 | - | (1,345) | N/A |
Additions to property, plant and equipment | (212,400) | (226,136) | (13,736) | (6.5%) |
Long-term investments | (24,143) | (59,299) | (35,156) | (145.6%) |
Investment in financing instruments | - | - | - | N/A |
Other loans granted to related companies | - | (7,684) | (7,684) | N/A |
Other investment disbursements | (1,345) | (148) | 1,197 | 89.0% |
NET CASH FLOW FROM INVESTMENT ACTIVITIES | (236,294) | (292,347) | (56,053) | (23.7%) |
NET CASH FLOW FOR THE PERIOD | 129,842 | 172,561 | 42,719 | 32.9% |
EFFECT OF PRICE-LEVEL RESTATEMENT ON CASH AND CASH EQUIVALENT | 26,305 | 26,515 | 210 | 0.8% |
NET VARIATION ON CASH AND CASH EQUIVALENT | 156,147 | 199,076 | 42,929 | 27.5% |
CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE YEAR | 684,197 | 817,809 | 133,612 | 19.5% |
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD | 840,344 | 1,016,885 | 176,541 | 21.0% |
Pg. 26
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CONSOLIDATEDCASHFLOWANALYSIS
During the period, the Company generated a positive net cash flow of Ch$93,047 million, comprised by the following activities:
Table 10 | ||||
Effective Cash Flow (million Ch$) | 1Q06 | 1Q07 | Var 06-07 | Chg % |
Operating | 221,611 | 183,449 | (38,162) | (17.2%) |
Financing | (24,186) | 67,234 | 91,420 | 378.0% |
Investment | (127,413) | (157,636) | (30,223) | (23.7%) |
Net cash flow of the period | 70,012 | 93,047 | 23,035 | (32.9%) |
Table 10.1 | ||||
Effective Cash Flow (thousand US$) | 1Q06 | 1Q07 | Var 06-07 | Chg % |
Operating | 410,991 | 340,218 | (70,773) | (17.2%) |
Financing | (44,855) | 124,690 | 169,545 | 378.0% |
Investment | (236,297) | (292,347) | (56,050) | (23.7%) |
Net cash flow of the period | 129,840 | 172,561 | 42,721 | (32.9%) |
Operating activities generated a net positive cash flow of Ch$183,449 million, which represent a decrease of 17.2% . The operating cash flow is comprised mainly of:
• | Net income for the period amounting to Ch$54,141 million, plus: | |
• | Charges of Ch$159,215 million to the income statement that do not represent cash flow and correspond mainly to the depreciation of the period for Ch$108,100 million, write-offs and provisions for Ch$6,323 million, amortizations of positive goodwill of Ch$13,993 million, amortization of intangibles of Ch$2,171 million, losses in long term investments of Ch$2,058 million net losses in asset sales of Ch$15 million, and other charges that do not represent cash flow for Ch$38,304 million, which includes the Ch$35,984 million negative conversion effect of the application of the Technical Bulletin N°64 over foreign subsidiaries. | |
• | Liabilities variation which affect operational flow of Ch$32,471 million. | |
• | The above was partially compensated by: | |
• | Non cash credits for Ch$9,893 million that do not represent cash flows, of which Ch$9,149 million correspond to the positive effect of the conversion of the overseas subsidiaries. | |
• | Profit on investment in related companies of Ch$661 million. | |
• | Negative goodwill amortization of Ch$1,128 million. | |
• | Variation in net assets that affect operating cash flow of Ch$128,147 million. | |
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Financing activities resulted in a positive cash flow of Ch$67,234 million mainly due to loans obtained of Ch$360,372 million, bonds issues of Ch$105,906 million and other financing sources of Ch$234 million. The above is partly compensated by loans payment for a value of Ch$260,658 million, dividend payments of Ch$118,443 million, bonds payments of Ch$19,652 million and other disbursements of Ch$525 million.
Investment activitieshad a net negative cash flow of Ch$157,636 million, which represents an increase of 23.7% or Ch$30,223 million. This disbursements are mainly due to the addition of fixed assets for Ch$121,935 million, long term investments for Ch$31,974, other loans to related companies for Ch$4,143 milion and other disbursements of Ch$80 million, partially compensated by the sale of fixed assets of Ch$496 million.
CASHFLOWRECEIVEDFROMFOREIGNSUBSIDIARIES BYENERSIS,CHILECTRA ANDENDESACHILE
Table 11 | ||||||||||
Millions Ch$ | Interest Received | Dividends Received | Management Fee | Prepayment intercompany | Capital Reductions | |||||
1Q06 | 1Q07 | 1Q06 | 1Q07 | 1Q06 | 1Q07 | 1Q06 | 1Q07 | 1Q06 | 1Q07 | |
Argentina | 1,543 | 381 | - | - | 81 | 42 | - | - | - | - |
Peru | - | - | - | 1,578 | - | - | - | - | - | - |
Brazil | - | - | - | - | - | - | - | - | - | - |
Colombia | 16,562 | - | - | 25,237 | - | - | 30,377 | - | - | - |
Total | 18,105 | 381 | - | 26,815 | 81 | 42 | 30,377 | - | - | - |
Millions Ch$ | Total Cash Received | |
1Q06 | 1Q07 | |
Argentina | 1,624 | 423 |
Peru | - | 1,578 |
Brazil | - | - |
Colombia | 46,939 | 25,237 |
Total | 48,563 | 27,238 |
Table 11.1 | ||||||||||
Thousand US$ | Interest Received | Dividends Received | Management Fee | Prepayment Intercompany | Capital Reductions | |||||
1Q06 | 1Q07 | 1Q06 | 1Q07 | 1Q06 | 1Q07 | 1Q06 | 1Q07 | 1Q06 | 1Q07 | |
Argentina | 2,862 | 707 | - | - | 150 | 77 | - | - | - | |
Peru | - | - | - | 2,927 | - | - | - | - | - | - |
Brazil | - | - | - | - | - | - | - | - | - | - |
Colombia | 30,715 | - | - | 46,804 | - | - | 56,336 | - | - | - |
Total | 33,577 | 707 | - | 49,731 | 150 | 77 | 56,336 | - | - | - |
Thousand US$ | Total Cash Received | |
1Q06 | 1Q07 | |
Argentina | 3,012 | 784 |
Peru | - | 2,927 |
Brazil | - | - |
Colombia | 87,051 | 46,804 |
Total | 90,062 | 50,515 |
Source: Internal Financial Report
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PAYMENTS FORADDITIONS OFFIXEDASSETS ANDDEPRECIATION
Table 12 | ||||
Payments for Additions of | Depreciation | |||
Fixed assets | ||||
Million Ch$ | 1Q06 | 1Q07 | 1Q06 | 1Q07 |
Endesa | 45,441 | 54,687 | 42,254 | 47,976 |
Cachoeira (*) | 63 | 436 | 3,860 | 3,416 |
Fortaleza (**) | 65 | 71 | 1,257 | 1,279 |
Cien (**) | 93 | 21 | 2,987 | 3,334 |
Chilectra S.A. | 11,580 | 10,228 | 4,391 | 4,672 |
Edesur S.A. | 7,385 | 8,210 | 11,109 | 10,271 |
Edelnor S.A. | 3,537 | 4,887 | 4,268 | 4,394 |
Ampla | 25,951 | 14,865 | 10,511 | 10,242 |
Coelce | 14,753 | 20,516 | 9,138 | 10,155 |
Codensa S.A. | 4,074 | 5,988 | 10,535 | 10,894 |
Cam Ltda. | 206 | 851 | 287 | 386 |
Inmobiliaria Manso de Velasco Ltda. | 280 | 314 | 86 | 77 |
Synapsis Soluciones y Servicios Ltda. | 1,066 | 789 | 450 | 669 |
Holding Enersis | 33 | 72 | 314 | 335 |
Total | 114,528 | 121,935 | 101,448 | 108,100 |
Table 12.1 | ||||
Payments for Additions of | Depreciation | |||
Fixed assets | ||||
Thousand US$ | 1Q06 | 1Q07 | 1Q06 | 1Q07 |
Endesa | 84,274 | 101,421 | 78,363 | 88,975 |
Cahoeira (*) | 116 | 808 | 7,158 | 6,335 |
Fortaleza (**) | 121 | 132 | 2,331 | 2,373 |
Cien (**) | 173 | 39 | 5,539 | 6,184 |
Chilectra S.A. | 21,476 | 18,969 | 8,143 | 8,665 |
Edesur S.A. | 13,695 | 15,226 | 20,602 | 19,048 |
Edelnor S.A. | 6,560 | 9,063 | 7,915 | 8,149 |
Ampla | 48,128 | 27,568 | 19,493 | 18,994 |
Coelce | 27,360 | 38,048 | 16,946 | 18,833 |
Codensa S.A. | 7,555 | 11,105 | 19,538 | 20,204 |
Cam Ltda. | 382 | 1,579 | 532 | 716 |
Inmobiliaria Manso de Velasco Ltda. | 518 | 583 | 159 | 143 |
Synapsis Soluciones y Servicios Ltda. | 1,978 | 1,464 | 835 | 1,241 |
Holding Enersis | 61 | 134 | 582 | 621 |
Total | 212,398 | 226,139 | 188,138 | 200,479 |
(*) | 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. 29
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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. However, 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 March 31, 2007, the company has hedged in Chile, by means of US$/UF Swap operations, an amount of US$600 million on a consolidated basis and holds US$125 million in forward contracts, allowing an adequate managing of the hedging policy. In addition, the company holds US$1 million in US$/Ch$ forward contracts. At the same date one year ago, the company had already contracted US$700 million of the total Swap US$/UF as part of the establishment of the new hedging policy whereby US$100 million expired during the year 2006.There were not held forward contracts.
Regarding 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 69.2% / 30.8% fixed / variable as of March 31, 2007. The percentage of its indebtedness at a fixed rate has decreased compared with the 79.1% / 20.9% ratio as of the same date in the previous year. This is mainly due to the fact that some subsidiaries refinanced its maturities from fix to variable rate. Nevertheless, the risk levels had maintained in the range of the coverage policies establish by the Group.
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![](https://capedge.com/proxy/6-K/0001292814-07-001236/arg.gif)
ARGENTINA |
GENERATION
In generation business, our subsidiary Costanera recorded an increase in Operating Income of Ch$3,316 million, reaching Ch$3,922 million, mainly due to an increase in physical sales of 11.6%, resulting in total physical sales of 2,450 GWh, and also due to better average margin for the period. Production increased by 11.4% reaching 2,445 GWh as of March 31, 2007.
On the other hand, in our subsidiary Chocón Operating Income was Ch$4,804 million during first quarter 2007, a decrease of Ch$1,475 million, as a result of lower physical sales by 28.1%, caused by caudal management measures of the Argentine Energy Secretary, and a lower hydrology.
COSTANERA
Operating Income
Table 13 | |||||||
Million US$ | Million Ch$ | ||||||
1Q 06 | 1Q 07 | 1Q 06 | 1Q 07 | Chg % | |||
Operating Revenues | 53 | 75 | 28,837 | 40,550 | 40.6% | ||
Operating Costs | (51) | (67) | (27,740) | (36,055) | (30.0%) | ||
Operating Margin | 2 | 8 | 1,097 | 4,495 | - | ||
Selling and Administrative Expenses | (1) | (1) | (491) | (573) | (16.7%) | ||
Operating Income | 1 | 7 | 606 | 3,922 | - | ||
* | Please take note that these figures could differ from those accounted under Argentine GAAP. |
Additional Information
Table 14
Costanera | 1Q06 | 1Q07 | Var 06-07 | Chg % |
GWh Produced | 2,195 | 2,445 | 250 | 11.4% |
GWh Sold | 2,195 | 2,450 | 254 | 11.6% |
Market Share | 9.0% | 9.6% | - | 6.8% |
Costanera Financial Debt Maturity (with third party)
US$ 220 million
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CHOCÓN
Operating Income
Table 15 | |||||||
Million US$ | Million Ch$ | ||||||
1Q 06 | 1Q 07 | 1Q 06 | 1Q 07 | Chg % | |||
Operating Revenues | 25 | 24 | 13,600 | 12,679 | (6.8%) | ||
Operating Costs | (13) | (14) | (7,127) | (7,647) | (7.3%) | ||
Operating Margin | 12 | 9 | 6,473 | 5,032 | (22.3%) | ||
Selling and Administrative Expenses | (0) | (0) | (193) | (228) | (17.9%) | ||
Operating Income | 12 | 9 | 6,279 | 4,804 | (23.5%) | ||
* | Please take note that these figures could differ from those accounted under Argentine GAAP. |
Additional Information
Chocón | 1Q06 | 1Q07 | Var 06-07 | Chg % |
GWh Produced | 1,110 | 735 | -374 | (33.7%) |
GWh Sold | 1,137 | 817 | -320 | (28.1%) |
Market Share | 4.6% | 3.2% | - | (31.2%) |
Chocón Financial Debt Maturity (with third party)
US$ 100 million
DISTRIBUTION
Edesur reported a 25.5% decrease in Operating Income, from Ch$7,348 million to Ch$5,475 million basically explained by an increase in fines resulting from quality service fixed in the Agreement Act, and also due to public thoroughfare security. The aforementioned effect was partially offset by an 8.8% increase in physical sales.
Energy losses decreased 0.1 percent point, reaching 9.1% for the period, and the clients’ base grew by 32 thousand, totalizing 2.2 million clients.
It is important to mention that the as of December 28, 2006, through Decree N°1,959, the Argentine Government ratified the Agreement Act published in January 8, 2007 on the Official Bulletin of the Argentine Republic.
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On February 5, 2007, the National Electricity Regulatory Entity (ENRE) published in the Official Bulletin its Resolution ENRE No.50/2007 approving the values of EDESUR’s Tariff Table effective as of February 1, 2007, which corresponds to consumption accrued during the period between November 1st, 2005 and January 31st, 2007, the ENRE has established that the total amount will be invoiced in 55 equal and consecutive installments.
EDESUR
Operating Income
Table 17 | |||||||
Million US$ | Million Ch$ | ||||||
1Q 06 | 1Q 07 | 1Q 06 | 1Q 07 | Chg % | |||
Revenues from Sales | 116 | 136 | 62,390 | 73,106 | 17.2% | ||
Other Operating Revenues | 10 | 10 | 5,559 | 5,304 | (4.6%) | ||
Operating Revenues | 126 | 145 | 67,949 | 78,410 | 15.4% | ||
Energy Purchases | (66) | (74) | (35,390) | (40,117) | (13.4%) | ||
Other Operating Cost | (32) | (43) | (17,278) | (23,258) | (34.6%) | ||
Operating Costs | (98) | (118) | (52,668) | (63,375) | (20.3%) | ||
Selling and Administrative Expenses | (15) | (18) | (7,933) | (9,560) | (20.5%) | ||
Operating Income | 14 | 10 | 7,348 | 5,475 | (25.5%) | ||
* | Please take note that these figures could differ from those accounted under Argentine GAAP. |
Additional Information
Edesur | 1Q06 | 1Q07 | Var 06-07 | Chg % |
Customers (Th) | 2,170 | 2,202 | 32 | 1.4% |
GWh Sold | 3,664 | 3,985 | 321 | 8.8% |
Clients/Employee | 925 | 904 | (21) | (2.3%) |
Energy Losses % (12M) | 9.2% | 9.1% | - | (1.5%) |
Edesur Financial Debt Maturity (with third party)
US$ 141million
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BRAZIL |
ENDESABRASIL
Table 19 | |||||||
Million US$ | Million Ch$ | Chg % | |||||
1Q 06 | 1Q 07 | 1Q 06 | 1Q 07 | ||||
Revenues from Sales | 540 | 514 | 291,142 | 277,130 | (4.8%) | ||
Other Operating Revenues | 16 | 14 | 8,547 | 7,812 | (8.6%) | ||
Operating Revenues | 556 | 528 | 299,690 | 284,942 | (4.9%) | ||
Energy Purchases | (254) | (215) | (136,722) | (116,159) | 15.0% | ||
Other Operating Cost | (126) | (93) | (67,915) | (50,062) | 26.3% | ||
Operating Costs | (380) | (308) | (204,637) | (166,221) | 18.8% | ||
Selling and Administrative Expenses | (35) | (34) | (19,072) | (18,212) | 4.5% | ||
Operating Income | 141 | 186 | 75,981 | 100,510 | 32.3% | ||
* | Please take note that these figures could differ from those accounted under Brazilian GAAP. |
GENERATION
In the generation business, operating income of Cachoeira rose by 51.9%, improving from Ch$6,995 million to Ch$10,626 million, mainly due an increase in physical sales by 11.4% reaching 1,057 GWh, and also due to better average margin.
Fortaleza slightly improved its Operating Income by 2.0% reaching Ch$10,857, due to the local currency appreciation, and Chilean peso devaluation against US$.
CIEN registered a negative Operating Income of Ch$2,305 million, which represents a decrease compared to the positive result Ch$2,660 million as of 1Q06, mainly due to lower average sales margin and physical sales volumes, which is the result of the lack of supply from Argentina.
It is important to mention that CIEN is redesigning its business in order to reduce its dependency of energy supply in both countries. In that sense, the company is renegotiating its supply contracts, as well as searching for an adequate payment for its international transmission services.
CACHOEIRA
Operating Income
Table 20 | |||||||
Million US$ | Million Ch$ | ||||||
1Q 06 | 1Q 07 | 1Q 06 | 1Q 07 | Chg % | |||
Operating Revenues | 29 | 35 | 15,410 | 19,072 | 23.8% | ||
Operating Costs | (14) | (14) | (7,541) | (7,695) | (2.0%) | ||
Operating Margin | 15 | 21 | 7,870 | 11,377 | 44.6% | ||
Selling and Administrative Expenses | (2) | (1) | (874) | (751) | 14.2% | ||
Operating Income | 13 | 20 | 6,995 | 10,626 | 51.9% | ||
* | Please take note that these figures could differ from those accounted under Brazilian GAAP. |
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Additional Information
Cachoeira | 1Q06 | 1Q07 | Var 06-07 | Chg % |
GWh Produced | 3,559 | 4,241 | 682 | 19.2% |
GWh Sold | 949 | 1,057 | 108 | 11.4% |
Market Share | 1.1% | 1.2% | - | 9.1% |
Cachoeira Financial Debt Maturity (with third party) US$ 6 million
FORTALEZA
Operating Income
Table 22 | |||||||
Million US$ | Million Ch$ | ||||||
1Q 06 | 1Q 07 | 1Q 06 | 1Q 07 | Chg % | |||
Operating Revenues | 53 | 46 | 28,339 | 25,012 | (11.7%) | ||
Operating Costs | (32) | (25) | (17,239) | (13,612) | -21.0% | ||
Operating Margin | 21 | 21 | 11,101 | 11,400 | 2.7% | ||
Selling and Administrative Expenses | (0) | (1) | (243) | (324) | 33.0% | ||
Operating Income | 20 | 21 | 10,857 | 11,076 | 2.0% | ||
Additional Information
Table 23Fortaleza | 1Q06 | 1Q07 | Var 06-07 | Chg % |
GWh Produced | 131 | 1 | -130 | (99.4%) |
GWh Sold | 666 | 664 | -3 | (0.4%) |
Market Share | 0.7% | 0.7% | - | - |
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Fortaleza Financial Debt Maturity (with third party)
US$ 122 million
TRANSMISSION
CIEN
Operating Income
Table 24 | |||||||
Million US$ | Million Ch$ | ||||||
1Q 06 | 1Q 07 | 1Q 06 | 1Q 07 | Chg % | |||
Operating Revenues | 82 | 49 | 44,320 | 26,208 | (40.9%) | ||
Operating Costs | (75) | (50) | (40,629) | (27,154) | -33.2% | ||
Operating Margin | 6 | (2) | 3,015 | (946) | N/A | ||
Selling and Administrative Expenses | (2) | (3) | (1,031) | (1,359) | 31.8% | ||
Operating Income | 5 | (4) | 2,660 | (2,305) | N/A | ||
Additional Information
Table 25
CIEN | 1Q06 | 1Q07 | Var 06-07 | Chg % |
GWh Produced | 0 | 0 | - | - |
GWh Sold | 1,564 | 1,154 | -410 | (26.2%) |
Market Share | 1.7% | 1.3% | - | - |
Cien Financial Debt Maturity (with third party)
US$ 319 million
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DISTRIBUTION
In the distribution business, our subsidiary Ampla presents as of March 2007 an improvement of 34.1% in Operating Income, which grew from Ch$11,997 million to Ch$47,185 million, due to higher demand, which boosted physical sales 3.6% reaching 2,367 GWh, better margin and lower energy losses of 0.5 percent points. The clients’ base grew in 98 thousand clients reaching 2.34 million.
Coelce presents an improvement of Ch$13,729 million in Operating Income, reaching Ch$35,068 million, as consequence of higher physical sales, which increased in 3.7% reaching 1,717 GWh, and also due to better margins. Energy losses decreased by 0.5 percent points from 13.0% to 12.5% as of March, 2007. The clients’ base grew by 115 thousand clients achieving a 4.7% increase.
AMPLA
Operating Income
Table 26 | |||||||
Million US$ | Million Ch$ | ||||||
1Q 06 | 1Q 07 | 1Q 06 | 1Q 07 | Chg % | |||
Revenues from Sales | 271 | 274 | 146,203 | 147,850 | 1.1% | ||
Other Operating Revenues | 4 | 5 | 2,215 | 2,938 | 32.7% | ||
Operating Revenues | 275 | 280 | 148,418 | 150,788 | 1.6% | ||
Energy Purchases | (116) | (134) | (62,785) | (72,216) | (15.0%) | ||
Other Operating Cost | (85) | (48) | (45,929) | (25,652) | 44.1% | ||
Operating Costs | (202) | (182) | (108,713) | (97,868) | 10.0% | ||
Selling and Administrative Expenses | (8) | (11) | (4,517) | (5,735) | (27.0%) | ||
Operating Income | 65 | 88 | 35,188 | 47,185 | 34.1% | ||
* | Please take note that these figures could differ from those accounted under Brazilian GAAP. |
Additional Information
Ampla | 1Q06 | 1Q07 | Var 06-07 | Chg % |
Customers (Th) | 2,244 | 2,342 | 98 | 4.4% |
GWh Sold | 2,284 | 2,367 | 83 | 3.6% |
Clients/Employee | 1,637 | 1,682 | 45 | 2.7% |
Energy Losses % (12M) | 23.3% | 22.8% | - | (2.0%) |
Ampla Financial Debt Maturity (with third party)
US$ 700 million
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COELCE
Operating Income
Table 28 | |||||||
Million US$ | Million Ch$ | ||||||
1Q 06 | 1Q 07 | 1Q 06 | 1Q 07 | Chg % | |||
Revenues from Sales | 186 | 205 | 100,117 | 110,318 | 10.2% | ||
Other Operating Revenues | 8 | 5 | 4,429 | 2,959 | (33.2%) | ||
Operating Revenues | 194 | 210 | 104,546 | 113,278 | 8.4% | ||
Energy Purchases | (85) | (88) | (45,610) | (47,335) | (3.8%) | ||
Other Operating Cost | (49) | (39) | (26,241) | (21,248) | 19.0% | ||
Operating Costs | (133) | (127) | (71,851) | (68,583) | 4.5% | ||
Selling and Administrative Expenses | (21) | (18) | (11,356) | (9,627) | 15.2% | ||
Operating Income | 40 | 65 | 21,339 | 35,068 | 64.3% | ||
* | Please take note that these figures could differ from those accounted under Brazilian GAAP. |
Additional Information
Coelce | 1Q06 | 1Q07 | Var 06-07 | Chg % |
Customers (Th) | 2,456 | 2,571 | 115 | 4.7% |
GWh Sold | 1,656 | 1,717 | 61 | 3.7% |
Clients/Employee | 1,861 | 2,034 | 173 | 9.3% |
Energy Losses % (12M) | 13.0% | 12.5% | - | (3.5%) |
Coelce Financial Debt Maturity (with third party)
US$ 268 million
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CHILE
GENERATION
Operating Income for the Chilean operations in 1Q07 were Ch$101,372, increasing 53.4% compared to . the same 2006 period. This positive variation is the result of a 11.9% increase in physical sales, an average node price over US$65 per MWh and higher energy’ spot prices. These higher spot prices are the result of the increase in electricity demand and thermo generation with diesel oil, due to the lack of supply of natural gas from Argentina.
The good reservoir level has allowed Endesa Chile to increase its hydro generation; nevertheless, Operating Cost grew 33.9% mainly due to an increase of Ch$21.911 millions in fuel and lubricant costs resulting from higher thermo generation.
It is worth mentioning that the commercial policy of Endesa has allowed it to become a net seller in the spot market, making possible to take advantage of the margins derived from selling at high prices electricity generated with hydro plants.
ENDESACHILE
Consolidated Income Statement
Table 30 | ||||||||||
Million US$ | Million Ch$ | |||||||||
1Q06 | 1Q07 | 1Q06 | 1Q07 | Chg % | ||||||
Operating Revenues | 552 | 731 | 297,603 | 394,424 | 32.5% | |||||
Operating Costs | (310) | (396) | (166,958) | (213,751) | (28.0%) | |||||
Selling and Administrative Expenses | (15) | (19) | (8,287) | (10,092) | (21.8%) | |||||
Operating Income | 227 | 316 | 122,358 | 170,581 | 39.4% | |||||
Interest Income | 5 | 8 | 2,922 | 4,284 | 46.6% | |||||
Interest Expenses | (83) | (84) | (44,816) | (45,042) | (0.5%) | |||||
Net Financial Income (Expenses) | (78) | (76) | (41,894) | (40,758) | 2.7% | |||||
Equity Gains from Related Company | 16 | 14 | 8,786 | 7,508 | (14.5%) | |||||
Equity Losses from Related Company | (0) | (4) | (8) | (2,026) | - | |||||
Net Income from Related Companies | 16 | 10 | 8,777 | 5,482 | (37.5%) | |||||
Other Non Operating Income | 19 | 15 | 10,069 | 8,071 | (19.8%) | |||||
Other Non Operating Expenses | (45) | (74) | (24,191) | (39,699) | (64.1%) | |||||
Net other Non Operating Income (Expenses) | (26) | (59) | (14,122) | (31,628) | (124.0%) | |||||
Price Level Restatement | (1) | 0 | (484) | 16 | N/A | |||||
Foreign Exchange Effect | (3) | (1) | (1,744) | (586) | 66.4% | |||||
Net of Monetary Exposure | (4) | (1) | (2,228) | (570) | 74.4% | |||||
Positive Goodwill Amortization | (0) | (0) | (239) | (222) | 7.1% | |||||
Non Operating Income | (92) | (126) | (49,705) | (67,695) | (36.2%) | |||||
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 135 | 191 | 72,653 | 102,886 | 41.6% | |||||
Extraordinary Items | - | - | - | - | - | |||||
Income Tax | (47) | (74) | (25,246) | (39,923) | (58.1%) | |||||
Minority Interest | (29) | (27) | (15,467) | (14,376) | 7.1% | |||||
Negative Goodwill Amortization | 5 | 2 | 2,489 | 1,118 | (55.1%) | |||||
NET INCOME | 64 | 92 | 34,429 | 49,704 | 44.4% | |||||
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Additional Information
Table 31
Chilean Companies | 1Q06 | 1Q07 | Var 06-07 | Chg % | ||||
GWh Produced | 4,369 | 5,191 | 821 | 18.8% | ||||
GWh Sold | 4,671�� | 5,226 | 556 | 11.9% | ||||
Market Share | 37.9% | 40.0% | - | 5.6% | ||||
Endesa-Chile Parent Company Financial Debt Maturity (with third party)
US$ 2,471 million
DISTRIBUTION
Operating Income for the Chilean operations increased by 14.3% or Ch$3,908 million, reaching Ch$31,234 million, mainly due to higher physical sales of 5.1%, which reach 3,157 GWh, reflecting favorable economic conditions of the country. Also, the increase in Operating Margin is the result of higher sales margin.
Our clients’ base rose by 34 thousand, reaching 1,44 million customers.
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CHILECTRA
Income Statement
Table 32 | ||||||||||
Million US$ | Million Ch$ | |||||||||
1Q 06 | 1Q 07 | 1Q 06 | 1Q 07 | Chg % | ||||||
Revenues from Sales | 271 | 309 | 145,934 | 166,852 | 14.3% | |||||
Other Operating Revenues | 19 | 25 | 10,460 | 13,490 | 29.0% | |||||
Operating Revenues | 290 | 334 | 156,394 | 180,342 | 15.3% | |||||
Energy Purchases | (192) | (228) | (103,433) | (122,891) | (18.8%) | |||||
Other Operating Cost | (26) | (29) | (13,950) | (15,790) | (13.2%) | |||||
Operating Costs | (218) | (257) | (117,383) | (138,681) | (18.1%) | |||||
Selling and Administrative Expenses | (22) | (19) | (11,685) | (10,427) | 10.8% | |||||
Operating Income | 51 | 58 | 27,326 | 31,234 | 14.3% | |||||
Interest Income | 3 | 3 | 1,410 | 1,709 | 21.2% | |||||
Interest Expenses | (12) | (12) | (6,397) | (6,634) | (3.7%) | |||||
Net Financial Income (Expenses) | (9) | (9) | (4,986) | (4,925) | 1.2% | |||||
Equity Gains from Related Company | 12 | 21 | 6,346 | 11,083 | 74.6% | |||||
Equity Losses from Related Company | (1) | - | (511) | - | N/A | |||||
Net Income from Related Companies | 11 | 21 | 5,836 | 11,083 | 89.9% | |||||
Other Non Operating Income | 3 | 4 | 1,780 | 2,083 | 17.0% | |||||
Other Non Operating Expenses | (0) | (0) | (217) | (222) | (2.5%) | |||||
Conversion Effect (BT 64) | - | - | - | - | ||||||
Net other Non Operating Income (Expenses) | 3 | 3 | 1,563 | 1,861 | 19.0% | |||||
Price Level Restatement | (2) | (2) | (1,284) | (923) | 28.1% | |||||
Foreign Exchange Effect | - | - | - | - | ||||||
Net of Monetary Exposure | (2) | (2) | (1,284) | (923) | 28.1% | |||||
Positive Goodwill Amortization | (0) | (0) | (150) | (150) | 0.2% | |||||
Non Operating Income | 2 | 13 | 978 | 6,946 | - | |||||
Net Income b. Taxes, Min Int and Neg Goodwill Am | 52 | 71 | 28,304 | 38,180 | 34.9% | |||||
Extraordinary Items | - | - | - | - | ||||||
Income Tax | 195 | (12) | 105,254 | (6,465) | (106.1%) | |||||
Minority Interest | 1 | (0) | 407 | (129) | (131.6%) | |||||
Negative Goodwill Amortization | - | - | - | - | ||||||
NET INCOME | 248 | 59 | 133,965 | 31,587 | -76% | |||||
Additional Information
Table 33
Chilectra | 1Q06 | 1Q07 | Var 06-07 | Chg % | ||||
Customers (Th) | 1,411 | 1,445 | 34 | 2.4% | ||||
GWh Sold | 3,005 | 3,157 | 152 | 5.1% | ||||
Clients/Employee | 1,957 | 2,032 | 75 | 3.8% | ||||
Energy Losses % (12M) | 4.7% | 5.1% | - | 9.0% | ||||
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COLOMBIA
GENERATION
Our subsidiary Emgesa presented an increase of Ch$9,087 million in Operating Income, which reach Ch$36,899 million as of March 2007. This improve is mainly the result of higher average sales margin, higher capacity charge and higher physical sales of 3.8%, effects that more than offset the 5 GWh of lower generation.
Our subsidiary Betania reported a decrease in Operating Income of Ch$3,022 million compared to the same period in 2006, reaching Ch$1,027 million. This decrease is mainly the result of a reduction in physical sales by 230 GWh, and also lower average margin.
EMGESA
Operating Income
Table 36 | ||||||||||
Million US$ | Million Ch$ | |||||||||
1Q 06 | 1Q 07 | 1Q 06 | 1Q 07 | Chg % | ||||||
Operating Revenues | 112 | 135 | 60,564 | 72,930 | 20.4% | |||||
Operating Costs | (59) | (65) | (31,835) | (34,948) | (9.8%) | |||||
Operating Margin | 53 | 70 | 28,730 | 37,982 | 32.2% | |||||
Selling and Administrative Expenses | (2) | (2) | (918) | (1,083) | (18.0%) | |||||
Operating Income | 52 | 68 | 27,812 | 36,899 | 32.7% | |||||
Additional Information
Table 37
Emgesa | 1Q06 | 1Q07 | Var 06-07 | Chg % | ||||
GWh Produced | 2,465 | 2,460 | -5 | (0.2%) | ||||
GWh Sold | 2,959 | 3,071 | 113 | 3.8% | ||||
Market Share | 17.5% | 17.8% | - | 1.7% | ||||
Emgesa Financial Debt Maturity (with third party)
US$ 339 million
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BETANIA
Operating Income
Table 34 | ||||||||||
Million US$ | Million Ch$ | |||||||||
1Q 06 | 1Q 07 | 1Q 06 | 1Q 07 | Chg % | ||||||
Operating Revenues | 14 | 12 | 7,326 | 6,561 | (10.4%) | |||||
Operating Costs | (6) | (10) | (3,173) | (5,317) | (67.6%) | |||||
Operating Margin | 8 | 2 | 4,153 | 1,243 | (70.1%) | |||||
Selling and Administrative Expenses | (0) | (0) | (104) | (217) | (107.8%) | |||||
Operating Income | 8 | 2 | 4,049 | 1,027 | (74.6%) | |||||
Additional Information
Table 35
Betania | 1Q06 | 1Q07 | Var 06-07 | Chg % | ||||
GWh Produced | 511 | 285 | -226 | (44.1%) | ||||
GWh Sold | 607 | 376 | -230 | (38.1%) | ||||
Market Share | 3.6% | 2.2% | - | (39.3%) | ||||
Betania Financial Debt Maturity (with third party)
US$ 349 million
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DISTRIBUTION
In the distribution business, our subsidiary Codensa registered a 8.8% increase in Operating Income, reaching Ch$34,495 million, mainly due a higher demand, which resulted in a increase in physical sales of 8.1%, lower energy losses (9.2% versus 9.4% on 2006’s same period), which were partially offset by a decrease in purchases and sales margins.
Codensa increased its client’s base by 66 thousand new customers during the period.
CODENSA
Operating Income
Table 38 | ||||||||||
Million US$ | Million Ch$ | |||||||||
1Q 06 | 1Q 07 | 1Q 06 | 1Q 07 | Chg % | ||||||
Revenues from Sales | 156 | 169 | 84,141 | 91,292 | 8.5% | |||||
Other Operating Revenues | 50 | 62 | 26,919 | 33,610 | 24.9% | |||||
Operating Revenues | 206 | 232 | 111,060 | 124,902 | 12.5% | |||||
Energy Purchases | (92) | (107) | (49,428) | (57,505) | (16.3%) | |||||
Other Operating Cost | (49) | (54) | (26,510) | (29,157) | (10.0%) | |||||
Operating Costs | (141) | (161) | (75,937) | (86,662) | (14.1%) | |||||
Selling and Administrative Expenses | (6) | (7) | (3,426) | (3,745) | (9.3%) | |||||
Operating Income | 59 | 64 | 31,697 | 34,495 | 8.8% | |||||
Additional Information
Table 39
Codensa | 1Q06 | 1Q07 | Var 06-07 | Chg % | ||||
Customers (Th) | 2,091 | 2,157 | 67 | 3.2% | ||||
GWh Sold | 2,545 | 2,750 | 205 | 8.0% | ||||
Clients/Employee | 2,265 | 2,302 | 37 | 1.6% | ||||
Energy Losses % (12M) | 9.4% | 9.2% | - | (2.1%) | ||||
Codensa Financial Debt Maturity (with third party)
US$ 504 million
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PERU
GENERATION
On our subsidiary Edegel, Operating Income were Ch$20,994 million, an increase of 29% compared to Ch$16,268 million as of March 2006. This increase is mainly the result of higher physical production and sales, which increased by 52.5% . The higher sales level are the result of the greater demand and higher generation due to the merger between Edegel and Etevensa, which was completed on June 1, 2006, and made possible supplying this higher demand with own generation.
EDEGEL
Operating Income
Table 40 | ||||||||||
Million US$ | Million Ch$ | |||||||||
1Q 06 | 1Q 07 | 1Q 06 | 1Q 07 | Chg % | ||||||
Operating Revenues | 62 | 83 | 33,216 | 44,613 | 34.3% | |||||
Operating Costs | (27) | (38) | (14,602) | (20,721) | (42.0%) | |||||
Operating Margin | 35 | 44 | 18,614 | 23,892 | 28.4% | |||||
Selling and Administrative Expenses | (4) | (5) | (2,346) | (2,899) | (23.5%) | |||||
Operating Income | 30 | 39 | 16,268 | 20,994 | 29.0% | |||||
Additional Information
Table 41
Edegel | 1Q06 | 1Q07 | Var 06-07 | Chg % | ||||
GWh Produced | 1,317 | 2,002 | 685 | 52.0% | ||||
GWh Sold | 1,279 | 1,951 | 672 | 52.5% | ||||
Market Share | 25.0% | 32.9% | - | 31.7% | ||||
Edegel Financial Debt Maturity (with third party)
US$ 469 million
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DISTRIBUTION
Edelnor increases its operating income by Ch$2,825 million, reaching Ch$11,698 million. This increase is the result of higher demand and an improve in unitary margins, as a consequence of the decrease in the cost of energy purchased. The higher demand makes possible to increase Edelnor’s physical sales in 6.9%, reaching 1,292 GWh as of March, 2007. The number of clients grew by 30 thousand, reaching 961 thousand customers.
EDELNOR
Operating Income
Table 42 | ||||||||||
Million US$ | Million Ch$ | |||||||||
1Q 06 | 1Q 07 | 1Q 06 | 1Q 07 | Chg % | ||||||
Revenues from Sales | 98 | 99 | 52,835 | 53,356 | 1.0% | |||||
Other Operating Revenues | 3 | 5 | 1,755 | 2,827 | 61.0% | |||||
Operating Revenues | 101 | 104 | 54,590 | 56,183 | 2.9% | |||||
Energy Purchases | (64) | (60) | (34,571) | (32,290) | 6.6% | |||||
Other Operating Cost | (12) | (14) | (6,301) | (7,289) | (15.7%) | |||||
Operating Costs | (76) | (73) | (40,872) | (39,579) | 3.2% | |||||
Selling and Administrative Expenses | (9) | (9) | (4,845) | (4,906) | (1.3%) | |||||
Operating Income | 16 | 22 | 8,873 | 11,698 | 31.8% | |||||
Additional Information
Table 43
Edelnor | 1Q06 | 1Q07 | Var 06-07 | Chg % | ||||
Customers (Th) | 931 | 961 | 30 | 3.3% | ||||
GWh Sold | 1,209 | 1,292 | 82 | 6.9% | ||||
Clients/Employee | 1,737 | 1,773 | 37 | 2.1% | ||||
Energy Losses % (12M) | 8.3% | 8.4% | - | 1.2% | ||||
Edelnor Financial Debt Maturity (with third party)
US$ 186 million
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PARTIALLYCONSOLIDATEDINCOMESTATEMENT
(Parent Company First Quarter 2007 Earnings Report)
UNDERCHILEANGAAP,MILLIONCH$
Table 44 | ||||||
(in million Ch$ of 1Q07) | 1Q06 | 1Q07 | Var % | |||
Gross Operating Margin | 857 | 839 | (2.0%) | |||
S&A Expenses | (3,818) | (4,036) | 5.7% | |||
Operating Income | (2,961) | (3,197) | 8.0% | |||
Endesa | 20,651 | 29,813 | 44.4% | |||
Chilectra | 17,853 | 20,312 | 13.8% | |||
Edesur | (251) | 9,412 | N/A | |||
Edelnor | 376 | 2,490 | - | |||
Ampla | 3,604 | 2,681 | (25.6%) | |||
Coelce | - | - | N/A | |||
Codensa | 3,812 | 2,607 | (31.6%) | |||
CAM LTDA | 1,315 | 316 | (75.9%) | |||
Inm Manso de Velasco | 40 | 581 | - | |||
Synapsis | 1,129 | 214 | (81.0%) | |||
Endesa Brasil | 4,603 | 5,187 | 12.7% | |||
CGTF | - | - | N/A | |||
Other | 109,956 | - | N/A | |||
Net Income from Related Companies | 163,088 | 73,613 | (54.9%) | |||
Interest Income | 11,301 | 10,358 | (8.3%) | |||
Interest Expense | (15,310) | (13,691) | (10.6%) | |||
Net Financial Income (Expenses) | (4,009) | (3,334) | (16.9%) | |||
Other Non Operating Income | 1,588 | 1,767 | 11.3% | |||
Other Non Operating Expenses | (1,500) | (295) | (80.3%) | |||
Net other Non Operating Income (Expenses) | 88 | 1,472 | - | |||
Price Level Restatement | 352 | (174) | N/A | |||
Foreign Exchange Effect | 5,222 | 1,364 | (73.9%) | |||
Net Monetary Exposure | 5,575 | 1,189 | (78.7%) | |||
Positive Goodwill Amortization | (13,632) | (13,620) | (0.1%) | |||
Non Operating Income | 151,109 | 59,321 | (60.7%) | |||
Net Income before (1), (2) & (3) | 148,148 | 56,124 | (62.1%) | |||
Income Tax (1) | (3,155) | (1,994) | (36.8%) | |||
Negative Goodwill Amortization (2) | 10 | 10 | (0.2%) | |||
Minority Interest (3) | - | - | N/A | |||
NET INCOME | 145,003 | 54,141 | (62.7%) | |||
EPS (Ch$) | 4.44 | 1.66 | (62.7%) | |||
EPADS (US$) | 0.41 | 0.15 | (62.7%) | |||
Common Shares Outstanding (Th) | 32,651,166 | 32,651,166 | 0.0% | |||
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UNDERCHILEANGAAP,THOUSANDUS$
Table 44.1
(in thousand US$ of 1Q07) | 1Q06 | 1Q07 | Var % | |||
Gross Operating Margin | 1,589 | 1,557 | (2.0%) | |||
S&A Expenses | (7,080) | (7,485) | 5.7% | |||
Operating Income | (5,491) | (5,928) | 8.0% | |||
Endesa | 38,298 | 55,290 | 44.4% | |||
Chilectra | 33,109 | 37,670 | 13.8% | |||
Edesur | (465) | 17,456 | N/A | |||
Edelnor | 698 | 4,617 | - | |||
Ampla | 6,685 | 4,972 | (25.6%) | |||
Coelce | - | - | N/A | |||
Codensa | 7,070 | 4,834 | (31.6%) | |||
CAM LTDA | 2,438 | 587 | (75.9%) | |||
Inm Manso de Velasco | 74 | 1,077 | - | |||
Synapsis | 2,094 | 397 | (81.0%) | |||
Endesa Brasil | 8,536 | 9,619 | 12.7% | |||
CGTF | - | - | N/A | |||
Others | 203,920 | - | N/A | |||
Net Income from Related Companies | 302,457 | 136,520 | (54.9%) | |||
Interest Income | 20,958 | 19,209 | (8.3%) | |||
Interest Expense | (28,394) | (25,392) | (10.6%) | |||
Net Financial Income (Expenses) | (7,436) | (6,182) | (16.9%) | |||
Other Non Operating Income | 2,945 | 3,277 | 11.3% | |||
Other Non Operating Expenses | (2,782) | (547) | (80.3%) | |||
Net other Non Operating Income (Expenses) | 163 | 2,730 | - | |||
Price Level Restatement | 653 | (323) | N/A | |||
Foreign Exchange Effect | 9,685 | 2,529 | (73.9%) | |||
Net Monetary Exposure | 10,338 | 2,206 | (78.7%) | |||
Positive Goodwill Amortization | (25,281) | (25,259) | (0.1%) | |||
Non Operating Income | 280,241 | 110,015 | (60.7%) | |||
Net Income before (1), (2) & (3) | 274,750 | 104,086 | (62.1%) | |||
Income Tax (1) | (5,851) | (3,697) | (36.8%) | |||
Negative Goodwill Amortization (2) | 19 | 19 | (0.2%) | |||
Minority Interest (3) | - | - | N/A | |||
NET INCOME | 268,918 | 100,408 | (62.7%) | |||
EPS (Ch$) | 4.44 | 1.66 | -62.7% | |||
EPADS (US$) | 0.41 | 0.15 | -62.7% | |||
Common Shares Outstanding (Th) | 32,651,166 | 32,651,166 | 0.0% | |||
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OWNERSHIP OF THECOMPANY AS OFMARCH31,2007
TOTAL SHAREHOLDERS: 8,698
CONFERENCECALLINVITATION
Enersis is pleased to inform you that it will hold a conference call to review its results for the period, on Thursday, April 26th, 2007, at 12:00 PM EST (Eastern Standard Time) (12:00 noon Chilean time). To participate, please dial +1 (617) 614-3474 or +1 (800) 706-7749 (toll free USA), approximately 10 minutes prior to the scheduled start time, Passcode ID: 37135427.
The phone replay will be available between April 26th, 2007, and May 3rd, 2007, dialing 1+ (617) 801-6888 or +1 (888) 286-8010 (toll free USA) Passcode ID: 40098723.
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”.
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CONTACTINFORMATION
For further information, please contact us:
Susana Rey | ||||
Head of Investor Relations | ||||
srm@e.enersis.cl | ||||
56 (2) 353 4554 | ||||
Denisse Labarca | Ignacio González | Carmen Poblete | ||
Investor Relations Representative | Investor Relations Representative | Investor Relations Representative | ||
dla@e.enersis.cl | ijgr@e.enersis.cl | cpt@e.enersis.cl | ||
56 (2) 353 4492 | 56 (2) 353 4552 | 56 (2) 353 4447 | ||
María 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.
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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/ Ignacio Antoñanzas | |
-------------------------------------------------- | |
Title: Chief Executive Officer |
Date: April 27, 2007