FORM 6-K
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of July, 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 HALF ENDING JUNE 30, 2007
HIGHLIGHTS FOR THE PERIOD
[All figures in Chilean Pesos]
x Operating Revenues increased 8.9% to Ch$ 2,143,726 million, as a consequence of 13.3% higher revenues in the generation and transmission business, and of 6.3% higher revenues in the distribution business.
x EBITDA grew by 6.7% reaching Ch$ 826,840 million.
x Operating Income grew by 9.5%, reaching Ch$ 611,345 million, explained by 11.4% higher income in generation and transmission and 8.0% higher income in distribution.
x Energy demand continued growing in the five countries where we operate:
Chile 6.2%
Argentina 5.9%
Brazil 4.6%
Colombia 4.8%
Peru 10.5%
x In distribution, physical sales increased 6.6%, while our client base recorded 415 thousand new customers. Additionally, energy losses, on an aggregated basis, diminished to 11.3% .
x Over the last twelve months, Enersis’ Chilean stock price increased by 73.8% and the ADS price rose by 78.2%, reaching Ch$ 211.18 and US$ 20.05, respectively in June 30, 2007.
x Our market capitalization reached Ch$ 6,895,273 million; more than US$ 13 billion.
x On July 18th, 2007, the Chilean authority (CNE) once again adjusted the node price, this time to US$ 81.9 per MWh, an increase of 11.9% in dollar terms in relation to the prior resetting process which took place in April for the period May-October 2007 (US$ 73.2 per MWh).
x Restrictions of natural gas coming from Argentina affected the San Isidro and Taltal power plants significantly during the second quarter, reaching over 97% in June 2007. Consequently, these generation companies registered higher consumptions of liquid fuels in lieu of natural gas.
x In July 2007, Standard & Poor’s increased the international rating risk classification for Enersis and Endesa Chile to BBB (stable). In the same month, local rating agencies Feller Rate and Fitch improved the domestic risk rating to AA- (stable).
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TABLE OF
CONTENTS
HIGHLIGHTS FOR THE PERIOD | 1 | |
TABLE OF | ||
CONTENTS | 2 | |
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: | 11 | |
CONSOLIDATED INCOME STATEMENT | 12 | |
UNDER CHILEAN GAAP, MILLION CH$ | 12 | |
UNDER CHILEAN GAAP, THOUSAND US$ | 13 | |
CONSOLIDATED INCOME STATEMENT ANALYSIS | 14 | |
NET INCOME | 14 | |
OPERATING INCOME | 14 | |
NON OPERATING INCOME | 15 | |
EVOLUTION OF KEY FINANCIAL RATIOS | 16 | |
CONSOLIDATED BALANCE SHEET | 17 | |
ASSETS UNDER CHILEAN GAAP, MILLION CH$ | 17 | |
ASSETS UNDER CHILEAN GAAP, THOUSAND US$ | 18 | |
LIABILITIES AND SHAREHOLDERS EQUITY UNDER CHILEAN GAAP, MILLION CH$ | 19 | |
LIABILITIES AND SHAREHOLDERS EQUITY UNDER CHILEAN GAAP, THOUSAND US$ | 20 | |
CONSOLIDATED BALANCE SHEET ANALYSIS | 21 | |
DEBT MATURITY, MILLION CH$ | 23 | |
DEBT MATURITY, THOUSAND US$ | 23 | |
CONSOLIDATED CASH FLOW | 24 | |
UNDER CHILEAN GAAP, MILLION CH$ | 24 | |
UNDER CHILEAN GAAP, THOUSAND US$ | 26 | |
CONSOLIDATED CASH FLOW ANALYSIS | 28 | |
CASH FLOW RECEIVED BY ENERSIS, CHILECTRA AND ENDESA CHILE FROM FOREIGN SUBSIDIARIES | 29 | |
PAYMENTS FOR ADDITIONS OF FIXED ASSETS AND DEPRECIATION | 30 | |
ANALYSIS OF EXCHANGE RISK AND INTEREST RATE | 31 | |
ARGENTINA | 32 | |
GENERATION | 32 | |
Costanera | 32 |
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Chocón | 33 | |
DISTRIBUTION | 33 | |
Edesur | 34 | |
BRAZIL | 35 | |
Endesa Brasil | 35 | |
GENERATION | 35 | |
Cachoeira | 35 | |
Fortaleza | 36 | |
TRANSMISSION | 37 | |
Cien | 37 | |
DISTRIBUTION | 37 | |
Ampla | 38 | |
Coelce | 38 | |
CHILE | 40 | |
GENERATION | 40 | |
ENDESA CHILE | 40 | |
DISTRIBUTION | 41 | |
Chilectra | 42 | |
COLOMBIA | 43 | |
GENERATION | 43 | |
Emgesa | 43 | |
Betania | 44 | |
DISTRIBUTION | 44 | |
Codensa | 44 | |
PERU | 46 | |
GENERATION | 46 | |
Edegel | 46 | |
DISTRIBUTION | 46 | |
Edelnor | 47 | |
PARTIALLY CONSOLIDATED INCOME STATEMENT | 48 | |
UNDER CHILEAN GAAP, MILLION CH$ | 48 | |
UNDER CHILEAN GAAP, THOUSAND US$ | 49 | |
CONFERENCE CALL INVITATION | 50 | |
CONTACT INFORMATION | 51 | |
DISCLAIMER | 51 |
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GENERAL INFORMATION
(Santiago, Chile, July 27, 2007) Enersis S.A. (NYSE: ENI), announced today its consolidated financial results for the semester ended June 30, 2007. All figures are in both US$ and Ch$, under Chilean Generally Accepted Accounting Principles (Chilean GAAP), as seen in the standardized form required by Chilean authorities (FECU). Variations refer to the period between June 30, 2006 and June 30, 2007. Figures for June 30, 2006, have been adjusted by the one-month lag accounting convention for CPI variation between both periods, equal to 2.9% .
For the purpose of converting Chilean pesos (Ch$) into United States dollars (US$), we have used the exchange rate prevailing as of June 30, 2007 for both periods under comparison, equal to US$ 1 = Ch$ 526.86. The Chilean peso appreciated by 2.4% against the US$ comparing June 30, 2007 with June 30, 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 (Colombia).
In the following pages you will find a detailed analysis of the financial statements, a brief explanation for the most important changes, and comments on the main items in the Income and Cash Flow Statements compared to the information as of June 2006.
[*] Consolidated since October 2005 and including Endesa Fortaleza, CIEN, Cachoeira Dourada, Ampla and Coelce.
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SIMPLIFIEDORGANIZATIONALSTRUCTURE
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MARKET INFORMATION
EQUITYMARKET
New York Stock Exchange (NYSE)
Over the last 12 months, the Enersis’ price increased 78.2%, from US$ 11.3 to US$ 20.1, well in excess over the 20.3% increase of the Dow Jones Industrial Index. The growth of the ADS price has been higher than the Adrian Index performance1, which rose by 62.4% .
The chart below presents the performance of Enersis ADS 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 73.8%, from Ch$ 121,5 to Ch$ 211.2. This variation compares favorably with the 63.2% increase for 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 € 8.8 to € 14.9, or 69.5% exceeding the 54.8% growth for the Latibex Index. 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
(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$ | ||||||||
04-Feb-07 | Penta | Jorge Palavecino | 21.3 | Neutral | ||||
07-Feb-07 | Raymond James | Ricardo Cavanagh | 17.5 | Buy | ||||
24-Apr-07 | Larraín Vial | Cristián Ramírez | 20.6 | Overweight | ||||
25-Apr-07 | Merrill Lynch | Frank McGann | 22.0 | Buy | ||||
02-May-07 | Deutsche Bank | Marcus Sequeira | 23.0 | Buy | ||||
02-May-07 | Bear Stearns | Rowe Michels | 19.0 | Peer Perform | ||||
14-May-07 | UBS (**) | Brian Chase | 20.4 | Neutral 2 | ||||
16-May-07 | Santander | Raimundo Valdés | 21.0 | Buy | ||||
24-May-07 | Banchile (*) | Sergio Zapata | 20.2 | Hold | ||||
ADR average target price (US$) | 20.6 | |||||||
(*) The analyst used an exchange rate of Ch$545 forecasted by Banchile for the end of year 2007. | ||||||||
(**) UBS only estimates the local share target price, therefore we have used an exchange rate as of June, 2007 (Ch$526.86) for making the conversion to ADR price. |
Source: Bloomberg and market research
DEBTMARKET
The following chart shows the pricing of our Yankee Bonds during the last twelve months.
Enersis Yankee Bonds
Source: Bloomberg
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RISK RATING CLASSIFICATION
CORPORATE RISK RATING CLASSIFICATION:
Fitch: BBB / Stable
Rationale (July 5, 2007)
“Fitch has affirmed both the Foreign Currency Issuer Default Rating (FC IDR) and the Local Currency IDR (LC IDR) for Enersis S.A. (Enersis) at 'BBB.' The unsecured debt rating is also 'BBB' and applies to the company's US$600.6 million of Yankee Bonds. The ratings affect approximately US$679 million of debt. All ratings have a Stable Outlook.
The ratings reflect continued growth in electricity demand in all the countries where Enersis has a presence. In general, Enersis operates in countries with a stable regulatory framework, resulting in growing tariffs and electricity prices, and a manageable level of government interference.”
Standard & Poor’s: BBB / Stable
Rationale (July 03, 2007)
“Standard & Poor's Ratings Services raised its ratings on Chile-based electricity provider Enersis S.A. by one notch, to 'BBB' from 'BBB-', and removed them from CreditWatch with positive implications where they were placed on Dec. 15, 2006. The outlook is stable. The upgrade reflects the improvement of the company's financial risk profile mainly due to the very good performance of its Chilean operations, which represent about 50% of its consolidated EBITDA adjusted by ownership, combined with adequate debt service coverage ratios (DSCR) and very good liquidity and financial flexibility.”
Moody’s: Baa3 / Stable
Rationale (December 14, 2006)
“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 on 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.”
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DOMESTIC RISK RATING CLASSIFICATION:
Feller Rate: Bonds: AA- / Positive • Shares: 1st Class Level 1
Rationale (July 6, 2007)
“Feller Rate improved the credit risk classification for the Company’s local bonds and bonds lines to the level “AA-” from “A+”, with stable outlook. These ratings had been under positive outlook since July, 2006. Feller Rate remarked, that it had raised the risk rating category based upon Enersis’ improved financial profile, derived from the better financial situation of the Chilean subsidiary Endesa Chile, as well as to the sustained positive results arising from the distribution business, mainly through the subsidiary Chilectra.
At the same time, and due to a healthy financial flexibility, the agency expects that Enersis will continue facing refinancing of its consolidated debt maturity in better terms and conditions, to reduce its total debt.”
Fitch: Bonds: AA- / Stable • Shares: 1st Class Level 1
Rationale (July 20, 2007)
“Fitch Ratings raised its domestic credit rating for Enersis S.A. (“Enersis” or “the Company”) to “AA-“ from “A+”, maintaining a “Stable Outlook.” This change affects the local bonds issuance No.264 (Series B1 and B2). The increase in the rating for Enersis reflects the culmination of a credit improvement plan to reduce debt and extend debt maturities, resulting in a stronger cash flow and greater financial flexibility.”
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UNDER CHILEAN GAAP, MILLION CH$
Table 2 | ||||||||
CONS. INCOME STATEMENT - (million Ch$) | 1H 06 | 1H 07 | Var 06-07 | Chg % | ||||
Revenues from Generation & Transmission | 802,910 | 909,795 | 106,885 | 13.3% | ||||
Revenues from Distribution | 1,305,835 | 1,388,228 | 82,393 | 6.3% | ||||
Revenues from Engineering and Real Estate | 23,011 | 19,507 | (3,504) | (15.2%) | ||||
Revenues from Other Businesses | 93,761 | 92,895 | (866) | (0.9%) | ||||
Consolidation Adjustments | (257,123) | (266,699) | (9,576) | (3.7%) | ||||
Operating Revenues | 1,968,394 | 2,143,726 | 175,332 | 8.9% | ||||
Costs from Generation | (490,138) | (565,230) | (75,092) | (15.3%) | ||||
Costs from Distribution | (950,967) | (996,726) | (45,759) | (4.8%) | ||||
Costs from Engineering and Real Estate | (18,984) | (15,687) | 3,297 | 17.4% | ||||
Costs from Other Businesses | (76,994) | (76,922) | 72 | 0.1% | ||||
Consolidation Adjustments | 239,803 | 251,954 | 12,151 | 5.1% | ||||
Operating Costs | (1,297,280) | (1,402,611) | (105,331) | (8.1%) | ||||
Operating Margin | 671,114 | 741,115 | 70,001 | 10.4% | ||||
SG&A from Generation | (24,107) | (22,963) | 1,145 | 4.7% | ||||
SG&A from Distribution | (86,214) | (101,433) | (15,219) | (17.7%) | ||||
SG&A from Engineering and Real Estate | (1,780) | (1,826) | (45) | (2.6%) | ||||
SG&A from Other Businesses | (19,325) | (20,527) | (1,202) | (6.2%) | ||||
Consolidation Adjustments | 18,686 | 16,979 | (1,707) | (9.1%) | ||||
Selling and Administrative Expenses | (112,740) | (129,770) | (17,031) | (15.1%) | ||||
Operating Income | 558,375 | 611,345 | 52,970 | 9.5% | ||||
Interest Income | 67,268 | 56,483 | (10,785) | (16.0%) | ||||
Interest Expense | (195,495) | (203,863) | (8,368) | (4.3%) | ||||
Net Interest (Expense) | (128,227) | (147,380) | (19,153) | (14.9%) | ||||
Equity Gains from Related Companies | 3,453 | 1,319 | (2,134) | (61.8%) | ||||
Equity Losses from Related Companies | (25) | (3,630) | (3,605) | N/A | ||||
Net Income from Related Companies | 3,428 | (2,311) | (5,739) | N/A | ||||
Other Non Operating Income | 128,496 | 88,622 | (39,874) | (31.0%) | ||||
Other Non Operating Expenses | (111,140) | (219,726) | (108,586) | (97.7%) | ||||
Net other Non Operating Income (Expense) | 17,357 | (131,104) | (148,461) | N/A | ||||
Price Level Restatement | 2,132 | (2,204) | (4,336) | N/A | ||||
Foreign Exchange Effect | 3,187 | 3,531 | 344 | 10.8% | ||||
Net of Monetary Exposure | 5,319 | 1,327 | (3,992) | (75.0%) | ||||
Positive Goodwill Amortization | (28,503) | (28,429) | 74 | 0.3% | ||||
Non Operating Income | (130,626) | (307,897) | (177,271) | (135.7%) | ||||
Net Inc b. Taxes, Min Int and Neg Goodwill Amort. | 427,749 | 303,448 | (124,301) | (29.1%) | ||||
Extraordinary Items | - | - | - | - | ||||
Income Tax | (40,488) | (159,568) | (119,080) | (294.1%) | ||||
Minority Interest | (166,731) | (85,959) | 80,772 | 48.4% | ||||
Negative Goodwill Amortization | 4,026 | 2,297 | (1,729) | (43.0%) | ||||
NET INCOME | 224,556 | 60,218 | (164,338) | (73.2%) | ||||
EBITDA | 775,106 | 826,840 | 51,734 | 6.7% | ||||
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UNDERCHILEANGAAP, THOUSANDUS$
Table 2.1CONS. INCOME STATEMENT - (thousand US$) | 1H 06 | 1H 07 | Var 06-07 | Chg % | ||||
Revenues from Generation & Transmission | 1,523,954 | 1,726,825 | 202,871 | 13.3% | ||||
Revenues from Distribution | 2,478,525 | 2,634,908 | 156,383 | 6.3% | ||||
Revenues from Engineering and Real Estate | 43,676 | 37,025 | (6,651) | (15.2%) | ||||
Revenues from Other Businesses | 177,962 | 176,319 | (1,643) | (0.9%) | ||||
Consolidation Adjustments | (488,029) | (506,204) | (18,175) | (3.7%) | ||||
Operating Revenues | 3,736,085 | 4,068,873 | 332,788 | 8.9% | ||||
Costs from Generation | (930,300) | (1,072,827) | (142,527) | (15.3%) | ||||
Costs from Distribution | (1,804,971) | (1,891,824) | (86,853) | (4.8%) | ||||
Costs from Engineering and Real Estate | (36,033) | (29,775) | 6,258 | 17.4% | ||||
Costs from Other Businesses | (146,138) | (146,001) | 137 | 0.1% | ||||
Consolidation Adjustments | 455,155 | 478,217 | 23,062 | 5.1% | ||||
Operating Costs | (2,462,286) | (2,662,209) | (199,923) | (8.1%) | ||||
Operating Margin | 1,273,799 | 1,406,664 | 132,865 | 10.4% | ||||
SG&A from Generation | (45,757) | (43,586) | 2,171 | 4.7% | ||||
SG&A from Distribution | (163,637) | (192,523) | (28,886) | (17.7%) | ||||
SG&A from Engineering and Real Estate | (3,379) | (3,466) | (87) | (2.6%) | ||||
SG&A from Other Businesses | (36,679) | (38,961) | (2,282) | (6.2%) | ||||
Consolidation Adjustments | 35,467 | 32,226 | (3,241) | (9.1%) | ||||
Selling and Administrative Expenses | (213,985) | (246,308) | (32,323) | (15.1%) | ||||
Operating Income | 1,059,817 | 1,160,356 | 100,539 | 9.5% | ||||
Interest Income | 127,678 | 107,207 | (20,471) | (16.0%) | ||||
Interest Expense | (371,057) | (386,939) | (15,882) | (4.3%) | ||||
Net Interest (Expense) | (243,379) | (279,733) | (36,354) | (14.9%) | ||||
Equity Gains from Related Companies | 6,554 | 2,503 | (4,051) | (61.8%) | ||||
Equity Losses from Related Companies | (47) | (6,890) | (6,843) | N/A | ||||
Net Income from Related Companies | 6,507 | (4,389) | (10,896) | N/A | ||||
Other Non Operating Income | 243,891 | 168,209 | (75,682) | (31.0%) | ||||
Other Non Operating Expenses | (210,947) | (417,049) | (206,102) | (97.7%) | ||||
Net other Non Operating Income (Expense) | 32,943 | (248,840) | (281,783) | N/A | ||||
Price Level Restatement | 4,046 | (4,183) | (8,229) | N/A | ||||
Foreign Exchange Effect | 6,049 | 6,702 | 653 | 10.8% | ||||
Net of Monetary Exposure | 10,095 | 2,519 | (7,576) | (75.0%) | ||||
Positive Goodwill Amortization | (54,099) | (53,960) | 139 | 0.3% | ||||
Non Operating Income | (247,933) | (584,404) | (336,471) | (135.7%) | ||||
Net Inc b. Taxes, Min Int and Neg Goodwill Amort. | 811,884 | 575,952 | (235,932) | (29.1%) | ||||
Extraordinary Items | - | - | - | - | ||||
Income Tax | (76,847) | (302,866) | (226,019) | (294.1%) | ||||
Minority Interest | (316,461) | (163,153) | 153,308 | 48.4% | ||||
Negative Goodwill Amortization | 7,641 | 4,360 | (3,281) | (43.0%) | ||||
NET INCOME | 426,216 | 114,293 | (311,923) | (73.2%) | ||||
EBITDA | 1,471,179 | 1,569,374 | 98,195 | 6.7% | ||||
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CONSOLIDATED INCOME STATEMENT ANALYSIS
(Source: FECU)
NETINCOME
As of June 2007, net income decreased 73.2% down to Ch$ 60,218 million. It is important to highlight that the financial statements for the first semester of 2006 included the one time recognition of the positive effect of deferred taxes for Ch$ 110,796 million due Chilectra and Elesur merge, booked in March 2006. If we isolate this effect and compare in homogeneous terms, we would have registered a decrease of 47.1% instead, and mainly due to a lower non operating income, which in turn is driven primarily by the effect of losses proceeding from Technical Bulletin N° 64 (“BT 64”), related to foreign subsidiaries for Ch$ 119,994 million (Ch$ 52,475 million net of minority interest), which is partially offset by significantly better operating income in 2007.
OPERATINGINCOME
Operating income as of June 2007 amounted to Ch$ 611,345 million, presenting an increase of Ch$ 52,970 million, or 9.5% . If we take into account the effect of the 2.4% appreciation of the Chilean peso against the dollar (from Ch$ 539.44 to Ch$ 526.86 per US$), Operating Income would have risen by 13.8% instead.
Table 41H06 | 1H07 | |||||||||||||||
Million Ch$ | Operating Revenues | Operating Costs | SG & A | Operating Income | Operating Revenues | Operating Costs | SG& A | Operating Income | ||||||||
Endesa Chile | 655,525 | (386,707) | (19,237) | 249,581 | 789,283 | (492,560) | (18,895) | 277,828 | ||||||||
Cachoeira (*) | 33,512 | (15,755) | (1,918) | 15,839 | 41,030 | (15,228) | (1,075) | 24,727 | ||||||||
Fortaleza (**) | 56,496 | (35,570) | (588) | 20,338 | 50,965 | (27,948) | (723) | 22,294 | ||||||||
Cien (**) | 70,883 | (64,559) | (2,400) | 3,924 | 57,904 | (56,564) | (2,435) | (1,095) | ||||||||
Chilectra | 327,733 | (244,550) | (22,901) | 60,282 | 364,567 | (281,522) | (22,175) | 60,870 | ||||||||
Edesur | 139,317 | (108,414) | (16,844) | 14,059 | 152,085 | (117,965) | (19,413) | 14,707 | ||||||||
Distrilima (Edelnor) | 109,824 | (81,080) | (10,128) | 18,616 | 110,062 | (77,783) | (9,831) | 22,448 | ||||||||
Ampla | 281,549 | (215,978) | (9,107) | 56,464 | 279,831 | (194,490) | (13,381) | 71,960 | ||||||||
Investluz (Coelce) | 217,895 | (150,401) | (19,190) | 48,304 | 220,914 | (146,937) | (28,277) | 45,700 | ||||||||
Codensa | 229,516 | (150,545) | (8,003) | 70,968 | 260,768 | (178,028) | (8,356) | 74,384 | ||||||||
CAM Ltda. | 65,314 | (56,330) | (4,147) | 4,837 | 62,818 | (53,232) | (5,004) | 4,582 | ||||||||
Inmobiliaria Manso de Velasco Ltda. | 8,775 | (6,338) | (1,262) | 1,175 | 4,758 | (3,659) | (1,249) | (150) | ||||||||
Synapsis Soluciones y Servicios IT Ltda. | 26,053 | (19,491) | (4,683) | 1,879 | 27,692 | (21,513) | (5,406) | 773 | ||||||||
Enersis Holding and other investment vehicles | 2,396 | (1,172) | (10,530) | (9,306) | 2,386 | (2,178) | (9,994) | (9,786) | ||||||||
Consolidation Adjustments | (256,394) | 239,610 | 18,198 | 1,414 | (281,337) | 266,996 | 16,444 | 2,103 | ||||||||
Total Consolidation | 1,968,394 | (1,297,280) | (112,740) | 558,374 | 2,143,726 | (1,402,611) | (129,770) | 611,345 | ||||||||
Table 4.1
1H06 | 1H07 | |||||||||||||||
Thousand US$ | Operating Revenues | Operating Costs | SG & A | Operating Income | Operating Revenues | Operating Costs | SG& A | Operating Income | ||||||||
Endesa Chile | 1,244,211 | (733,984) | (36,513) | 473,714 | 1,498,089 | (934,898) | (35,863) | 527,328 | ||||||||
Cachoeira (*) | 63,607 | (29,903) | (3,640) | 30,064 | 77,877 | (28,903) | (2,040) | 46,934 | ||||||||
Fortaleza (**) | 107,231 | (67,513) | (1,117) | 38,602 | 96,733 | (53,046) | (1,372) | 42,315 | ||||||||
Cien (**) | 134,538 | (122,535) | (4,555) | 7,448 | 109,905 | (107,361) | (4,622) | (2,079) | ||||||||
Chilectra | 622,049 | (464,164) | (43,467) | 114,418 | 691,962 | (534,340) | (42,089) | 115,533 | ||||||||
Edesur | 264,430 | (205,773) | (31,971) | 26,686 | 288,663 | (223,902) | (36,847) | 27,914 | ||||||||
Distrilima (Edelnor) | 208,451 | (153,893) | (19,222) | 35,335 | 208,902 | (147,636) | (18,660) | 42,607 | ||||||||
Ampla | 534,391 | (409,935) | (17,286) | 107,170 | 531,131 | (369,150) | (25,398) | 136,583 | ||||||||
Investluz (Coelce) | 413,573 | (285,467) | (36,423) | 91,683 | 419,302 | (278,892) | (53,670) | 86,740 | ||||||||
Codensa | 435,629 | (285,740) | (15,190) | 134,699 | 494,948 | (337,903) | (15,860) | 141,185 | ||||||||
CAM Ltda. | 123,968 | (106,916) | (7,872) | 9,180 | 119,232 | (101,037) | (9,498) | 8,697 | ||||||||
Inmobiliaria Manso de Velasco Ltda. | 16,655 | (12,030) | (2,396) | 2,229 | 9,032 | (6,945) | (2,370) | (284) | ||||||||
Synapsis Soluciones y Servicios IT Ltda. | 49,450 | (36,995) | (8,889) | 3,567 | 52,561 | (40,832) | (10,261) | 1,469 | ||||||||
Enersis Holding and other investment vehicles | 4,548 | (2,224) | (19,987) | (17,664) | 4,528 | (4,134) | (18,969) | (18,576) | ||||||||
Consolidation Adjustments | (486,645) | 454,788 | 34,540 | 2,683 | (533,989) | 506,768 | 31,212 | 3,991 | ||||||||
Total Consolidation | 3,736,086 | (2,462,285) | (213,988) | 1,059,814 | 4,068,875 | (2,662,211) | (246,307) | 1,160,356 | ||||||||
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NONOPERATINGINCOME
The company’s non-operating losses improved Ch$ 177,271, from a loss of Ch$ 130,626 million in 2006 to a loss of Ch$ 307,897 million in 2007. This is mainly explained by:
Net Interest Expenseincreasedby Ch$ 19,153 million, or 14.9%, from Ch$ 128,227 million to Ch$ 147,380 million, due to higher average debt mainly incurred by our subsidiaries CIEN, Ampla, and Codensa.
Income from investments in related companies decreased by Ch$ 5,739 million, a net loss of Ch$ 2,311 million compared to income of Ch$ 3,428 million as of June 2006. This is mainly explained by Ch$5,387 million in lower profits from GasAtacama, which in turn is the consequence of the continuing restrictions of natural gas imports from Argentina.
Net other non-operating incomedecreased by Ch$ 148,461 million from a net income of Ch$ 17,357 million in 2006 to a net loss of Ch$ 131,104 this year. The main reasons for this variation are as follows:
- Net losses of Ch$ 144,640 million proceeding from conversion adjustments in accordance with BT 64 for our subsidiaries in Brazil, Colombia and Peru (Ch$ 51,730 million net of minority interest).
- Lower profit in the sale of fixed assets, for Ch$ 19,382 million, because of non-recurring sales.
- Equity Tax in Colombia of Ch$ 15,554 million.
- Higher fines and penalties for Ch$ 9,533 million.
- Correction of energy and power invoices in the SIC for Ch$ 8,327 million.
These items were partially compensated by:
- Tariff adjustment from previous periods in Edesur for Ch$ 29,274 million.
- Lower expenses from energy efficiency programs in Brazilian subsidiaries for Ch$ 9,488 million.
- Profits from new contracts with Cemsa and CIEN for Ch$ 8,658 million.
Price Level Restatementshows a negative variation of Ch$ 4,336 million, mainly due to higher inflation of 1.9% in the first half 2007, in comparison with 1.1% registered during the first half 2006, over monetary and non-monetary assets and liabilities, principally debt denominated in U.F., as well as accounting effects on the income statement.
Income tax and Deferred taxregistered a net expense of Ch$ 159,568 million, which compared with the expense of Ch$ 40,488 million in June 2006, results in a negative variation of Ch$ 119,080 million.
The decrease of Ch$ 11,256 million inincome tax is mainly explained by lower provisions in Ampla, for Ch$ 10,819 million, Enersis for Ch$ 9,488 million, in Codensa for Ch$ 8,489 million, in CGTF for Ch$ 4,576 million and in Chilectra for Ch$ 3,809 million, partially offset by increases in Endesa for Ch$ 11,031 million, Chocón for Ch$ 5,943 million, Pehuenche for Ch$ 4,184 million, Emgesa for Ch$ 2,821 million and Coelce for Ch$ 2,032.
Deferred taxes, which do not constitute cash flow, registered a negative variation of Ch$ 130,336 million, mainly explained by the one-time effect recognized as of March 2006 in Chilectra for Ch$ 110,796 million as a consequence of the Elesur and Chilectra merge. This merger implied, for Elesur, a reversion adjustment in the provisions on valuations upon accumulated tax losses, as booked in previous exercises. Other important variations occurred in Ampla, with Ch$ 15,767 million, Enersis with Ch$8,764 million, Endesa Fortaleza with Ch$ 7,189 million and Edesur with Ch$ 5,063 million, partially offset by CIEN with Ch$ 8,223 million, Edegel with Ch$ 7,009 million, Chocón with Ch$ 5,532 million and Endesa Chile with Ch$ 4,815 million.
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Amortization of negative goodwill decreased Ch$ 1,729 million, reaching an amount of Ch$ 2,297 million, explained by the final amortization related to the purchase of the first stake in Betania, which effect is a lower amortization of Ch$ 1,678 million.
EVOLUTIONOFKEYFINANCIALRATIOS
Table 5Indicator | Unit | 1H06 | 1H07 | Var 06-07 | Chg % | |||||
Liquidity | Times | 1.10 | 1.31 | 0.21 | 19.1% | |||||
Acid ratio test * | Times | 1.02 | 1.21 | 0.19 | 18.6% | |||||
Working capital | million Ch$ | 160,970 | 419,545 | 258,575 | 160.6% | |||||
Working capital | th. US$ | 305,526 | 796,312 | 490,785 | 160.6% | |||||
Leverage ** | Times | 0.88 | 1.01 | 0.13 | 14.8% | |||||
Short-term debt | % | 0.30 | 0.24 | (0.06) | (20.0%) | |||||
Long-term debt | % | 0.70 | 0.76 | 0.06 | 8.6% | |||||
Interest Coverage*** | Times | 4.35 | 4.50 | 0.15 | 3.4% | |||||
EBITDA**** | th. US$ | 1,471,179 | 1,569,374 | 98,195 | 6.7% | |||||
ROE | % | 7.70% | 2.15% | (5.55%) | (72.1%) | |||||
ROA | % | 1.97% | 0.54% | (1.43%) | (72.6%) | |||||
* Current assets net of inventories and pre-paid expenses
** Using the ratio = Total debt / (equity + minority interest)
***EBITDAEI/Interest expenses = (Earnings before taxes+Fin exp+Net non operating income+depreciation+Positive Goodwill) /Interest expenses
****EBITDA: Operating Income+Depreciation+Amortization
Liquidity ratioincreased to 1.31 times, which represents an improvement of 19.1% . This means that the company is showing stronger liquidity, reducing its obligations with banks through cash surpluses and structuring an adequate debt maturity calendar.
Leverage reached 1.01 times, increasing 14.8% over last year’s figure of 0.88.
Interest Coverage improved 3.4%, from 4.35 times to 4.50 times, mainly due to the increase in operating results for the Group, which more than offset the higher interest expense.
ROE reached 2.2% for the first semester of 2007, decreasing from 7.7% as of June 2006, mainly explained by the non-recurrence associated with the merger between Chilectra and Elesur in March 2006.
ROA decreased from 1.97% as of June 2006, to 0.54% as of June 2007. This negative variation, as in the case of ROE, is mainly related to the one time positive effect booked in the first quarter 2006, derived from merging Elesur and Chilectra.
Pg. 16
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CONSOLIDATED BALANCE SHEET
ASSETSUNDERCHILEANGAAP,MILLIONCH$
Table 6ASSETS - (million Ch$) | 1H 06 | 1H 07 | Var 06-07 | Chg % | ||||
CURRENT ASSETS | ||||||||
Cash | 53,737 | 47,642 | (6,096) | (11.3%) | ||||
Time deposits | 435,482 | 316,960 | (118,522) | (27.2%) | ||||
Marketable securities | 3,832 | 12,825 | 8,993 | - | ||||
Accounts receivable, net | 771,927 | 941,953 | 170,025 | 22.0% | ||||
Notes receivable, net | 5,826 | 9,433 | 3,606 | 61.9% | ||||
Other accounts receivable, net | 131,793 | 111,585 | (20,208) | (15.3%) | ||||
Amounts due from related companies | 13,911 | 40,387 | 26,476 | - | ||||
Inventories | 74,109 | 85,155 | 11,046 | 14.9% | ||||
Income taxes recoverable | 69,367 | 79,136 | 9,770 | 14.1% | ||||
Prepaid expenses | 62,706 | 46,181 | (16,526) | (26.4%) | ||||
Deferred income taxes | 65,700 | 57,949 | (7,751) | (11.8%) | ||||
Other current assets | 69,637 | 36,873 | (32,764) | (47.1%) | ||||
Total currrent assets | 1,758,027 | 1,786,077 | 28,050 | 1.6% | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||
Land | 138,726 | 133,878 | (4,848) | (3.5%) | ||||
Buildings and infraestructure and works in progress | 11,139,187 | 11,048,943 | (90,244) | (0.8%) | ||||
Machinery and equipment | 1,996,814 | 2,028,775 | 31,961 | 1.6% | ||||
Other plant and equipment | 588,109 | 631,406 | 43,297 | 7.4% | ||||
Technical appraisal | 193,276 | 184,598 | (8,678) | (4.5%) | ||||
Sub - Total | 14,056,112 | 14,027,600 | (28,512) | (0.2%) | ||||
Accumulated depreciation | (5,739,547) | (5,951,494) | (211,946) | (3.7%) | ||||
Total property, plant and equipment | 8,316,565 | 8,076,106 | (240,459) | (2.9%) | ||||
OTHER ASSETS | ||||||||
Investments in related companies | 107,748 | 111,678 | 3,930 | 3.6% | ||||
Investments in other companies | 26,446 | 23,979 | (2,467) | (9.3%) | ||||
Positive goodwill, net | 696,451 | 638,587 | (57,864) | (8.3%) | ||||
Negative goodwill, net | (34,317) | (42,490) | (8,173) | (23.8%) | ||||
Long-term receivables | 148,062 | 152,944 | 4,882 | 3.3% | ||||
Amounts due from related companies | 97,291 | 89,584 | (7,707) | (7.9%) | ||||
Deferred income taxes | - | - | - | - | ||||
Intangibles | 89,562 | 93,112 | 3,550 | 4.0% | ||||
Accumulated amortization | (55,018) | (57,973) | (2,955) | (5.4%) | ||||
Others assets | 267,034 | 282,945 | 15,911 | 6.0% | ||||
Total other assets | 1,343,258 | 1,292,365 | (50,893) | (3.8%) | ||||
TOTAL ASSETS | 11,417,850 | 11,154,548 | (263,302) | (2.3%) | ||||
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ASSETSUNDERCHILEANGAAP,THOUSANDUS$
Table 6.1
ASSETS - (thousand US$) | 1H 06 | 1H 07 | Var 06-07 | Chg % | ||||
CURRENT ASSETS | ||||||||
Cash | 101,996 | 90,426 | (11,570) | (11.3%) | ||||
Time deposits | 826,560 | 601,602 | (224,958) | (27.2%) | ||||
Marketable securities | 7,274 | 24,342 | 17,068 | - | ||||
Accounts receivable, net | 1,465,147 | 1,787,861 | 322,714 | 22.0% | ||||
Notes receivable, net | 11,059 | 17,904 | 6,845 | 61.9% | ||||
Other accounts receivable, net | 250,148 | 211,792 | (38,356) | (15.3%) | ||||
Amounts due from related companies | 26,403 | 76,656 | 50,253 | - | ||||
Inventories | 140,661 | 161,627 | 20,966 | 14.9% | ||||
Income taxes recoverable | 131,660 | 150,204 | 18,544 | 14.1% | ||||
Prepaid expenses | 119,019 | 87,652 | (31,367) | (26.4%) | ||||
Deferred income taxes | 124,701 | 109,990 | (14,711) | (11.8%) | ||||
Other current assets | 132,173 | 69,985 | (62,188) | (47.1%) | ||||
Total currrent assets | 3,336,801 | 3,390,040 | 53,239 | 1.6% | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||
Land | 263,308 | 254,106 | (9,202) | (3.5%) | ||||
Buildings and infraestructure and works in progres | 21,142,594 | 20,971,307 | (171,287) | (0.8%) | ||||
Machinery and equipment | 3,790,027 | 3,850,690 | 60,663 | 1.6% | ||||
Other plant and equipment | 1,116,253 | 1,198,433 | 82,180 | 7.4% | ||||
Technical appraisal | 366,845 | 350,373 | (16,472) | (4.5%) | ||||
Sub - Total | 26,679,027 | 26,624,910 | (54,117) | (0.2%) | ||||
Accumulated depreciation | (10,893,875) | (11,296,158) | (402,283) | (3.7%) | ||||
Total property, plant and equipment | 15,785,151 | 15,328,752 | (456,399) | (2.9%) | ||||
OTHER ASSETS | ||||||||
Investments in related companies | 204,510 | 211,969 | 7,459 | 3.6% | ||||
Investments in other companies | 50,195 | 45,513 | (4,682) | (9.3%) | ||||
Positive goodwill, net | 1,321,890 | 1,212,062 | (109,828) | (8.3%) | ||||
Negative goodwill, net | (65,135) | (80,648) | (15,513) | (23.8%) | ||||
Long-term receivables | 281,026 | 290,293 | 9,267 | 3.3% | ||||
Amounts due from related companies | 184,661 | 170,033 | (14,628) | (7.9%) | ||||
Deferred income taxes | - | - | - | - | ||||
Intangibles | 169,991 | 176,730 | 6,739 | 4.0% | ||||
Accumulated amortization | (104,426) | (110,034) | (5,608) | (5.4%) | ||||
Others assets | 506,840 | 537,040 | 30,200 | 6.0% | ||||
Total other assets | 2,549,553 | 2,452,958 | (96,595) | (3.8%) | ||||
TOTAL ASSETS | 21,671,506 | 21,171,750 | (499,756) | (2.3%) | ||||
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LIABILITIES ANDSHAREHOLDERSEQUITYUNDERCHILEANGAAP,MILLIONCH$
Table 7
LIABILITIES AND SHAREHOLDER´S EQUITY - (million Ch$) | 1H 06 | 1H 07 | Var 06-07 | Chg % | ||||
CURRENT LIABILITIES | ||||||||
Short-term debt due to banks and financial institutions | 106,843 | 81,153 | (25,690) | (24.0%) | ||||
Current portion of long-term debt due to banks and financial institutions | 174,567 | 119,302 | (55,265) | (31.7%) | ||||
Current portion of bonds payable | 485,166 | 172,754 | (312,412) | (64.4%) | ||||
Current portion of long-term notes payable | 38,339 | 28,441 | (9,898) | (25.8%) | ||||
Dividends payable | 17,807 | 46,373 | 28,566 | 160.4% | ||||
Accounts payable | 329,052 | 431,108 | 102,056 | 31.0% | ||||
Short-term notes payable | 17,072 | 14,057 | (3,014) | (17.7%) | ||||
Miscellaneous payables | 87,412 | 119,872 | 32,460 | 37.1% | ||||
Accounts payable to related companies | 41,736 | 22,150 | (19,587) | (46.9%) | ||||
Accrued expenses | 65,231 | 74,496 | 9,265 | 14.2% | ||||
Withholdings | 91,602 | 99,407 | 7,805 | 8.5% | ||||
Income taxes payable | 54,123 | 22,848 | (31,275) | (57.8%) | ||||
Anticipated income | 3,033 | 8,450 | 5,418 | 178.6% | ||||
Reinbursable financial contribution | 1,312 | 1,033 | (279) | (21.3%) | ||||
Other current liabilities | 83,764 | 125,088 | 41,324 | 49.3% | ||||
Total current liabilities | 1,597,057 | 1,366,532 | (230,525) | (14.4%) | ||||
LONG-TERM LIABILITIES | ||||||||
Due to banks and financial institutions | 687,357 | 996,658 | 309,301 | 45.0% | ||||
Bonds payable | 2,139,619 | 2,384,600 | 244,981 | 11.4% | ||||
Long -term notes payable | 117,655 | 120,644 | 2,989 | 2.5% | ||||
Accounts payables | 128,077 | 147,368 | 19,291 | 15.1% | ||||
Amounts payable to related companies | 13,036 | 9,894 | (3,143) | (24.1%) | ||||
Accrued expenses | 475,734 | 362,731 | (113,004) | (23.8%) | ||||
Deferred income taxes | 11,836 | 1,898 | (9,938) | (84.0%) | ||||
Reinbursable financial contribution | 3,484 | 3,289 | (195) | (5.6%) | ||||
Other long-term liabilities | 185,296 | 213,248 | 27,952 | 15.1% | ||||
Total long-term liabilities | 3,762,094 | 4,240,330 | 478,236 | 12.7% | ||||
Minority interest | 3,141,555 | 2,751,634 | (389,921) | (12.4%) | ||||
SHAREHOLDERS´ EQUITY | ||||||||
Paid-in capital, no par value | 2,434,209 | 2,415,284 | (18,925) | (0.8%) | ||||
Additional paid-in capital | 26,776 | 45,890 | 19,114 | 71.4% | ||||
Additional paid-in capital (share premium) | 175,381 | 175,395 | 13 | 0.0% | ||||
Other reserves | (220,116) | (269,855) | (49,739) | 22.6% | ||||
Total capital and reserves | 2,416,251 | 2,366,714 | (49,537) | (2.1%) | ||||
Retained earnings | 276,338 | 369,120 | 92,782 | 33.6% | ||||
Net income for the period | 224,556 | 60,218 | (164,338) | (73.2%) | ||||
Interim dividends | - | - | - | - | ||||
Deficits of subsidaries in development stage | - | - | - | - | ||||
Total retained earnings | 500,894 | 429,338 | (71,555) | (14.3%) | ||||
Total shareholder´s equity | 2,917,144 | 2,796,052 | (121,092) | (4.2%) | ||||
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY | 11,417,850 | 11,154,548 | (263,302) | (2.3%) | ||||
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LIABILITIES ANDSHAREHOLDERSEQUITYUNDERCHILEANGAAP,THOUSANDUS$
Table 7.1LIABILITIES - (thousand US$) | 1H 06 | 1H 07 | Var 06-07 | Chg % | ||||
CURRENT LIABILITIES | ||||||||
Short-term debt due to banks and financial institutions | 202,792 | 154,031 | (48,761) | (24.0%) | ||||
Current portion of long-term debt due to banks and financial in | 331,335 | 226,439 | (104,896) | (31.7%) | ||||
Current portion of bonds payable | 920,863 | 327,894 | (592,969) | (64.4%) | ||||
Current portion of long-term notes payable | 72,768 | 53,981 | (18,787) | (25.8%) | ||||
Dividends payable | 33,798 | 88,018 | 54,220 | 160.4% | ||||
Accounts payable | 624,552 | 818,259 | 193,707 | 31.0% | ||||
Short-term notes payable | 32,403 | 26,681 | (5,722) | (17.7%) | ||||
Miscellaneous payables | 165,912 | 227,522 | 61,610 | 37.1% | ||||
Accounts payable to related companies | 79,217 | 42,041 | (37,176) | (46.9%) | ||||
Accrued expenses | 123,811 | 141,397 | 17,586 | 14.2% | ||||
Withholdings | 173,864 | 188,678 | 14,814 | 8.5% | ||||
Income taxes payable | 102,727 | 43,366 | (59,361) | (57.8%) | ||||
Anticipated income | 5,756 | 16,039 | 10,283 | 178.6% | ||||
Reinbursable financial contribution | 2,490 | 1,960 | (530) | (21.3%) | ||||
Other current liabilities | 158,987 | 237,422 | 78,435 | 49.3% | ||||
Total current liabilities | 3,031,273 | 2,593,728 | (437,545) | (14.4%) | ||||
LONG-TERM LIABILITIES | ||||||||
Due to banks and financial institutions | 1,304,630 | 1,891,695 | 587,065 | 45.0% | ||||
Bonds payable | 4,061,076 | 4,526,060 | 464,984 | 11.4% | ||||
Long -term notes payable | 223,313 | 228,987 | 5,674 | 2.5% | ||||
Accounts payables | 243,095 | 279,710 | 36,615 | 15.1% | ||||
Amounts payable to related companies | 24,743 | 18,778 | (5,965) | (24.1%) | ||||
Accrued expenses | 902,962 | 688,477 | (214,485) | (23.8%) | ||||
Deferred income taxes | 22,465 | 3,603 | (18,862) | (84.0%) | ||||
Reinbursable financial contribution | 6,613 | 6,243 | (370) | (5.6%) | ||||
Other long-term liabilities | 351,698 | 404,753 | 53,055 | 15.1% | ||||
Total long-term liabilities | 7,140,595 | 8,048,306 | 907,711 | 12.7% | ||||
Minority interest | 5,962,789 | 5,222,705 | (740,084) | (12.4%) | ||||
SHAREHOLDERS´ EQUITY | ||||||||
Paid-in capital, no par value | 4,620,220 | 4,584,300 | (35,920) | (0.8%) | ||||
Additional paid-in capital | 50,822 | 87,102 | 36,280 | 71.4% | ||||
Additional paid-in capital (share premium) | 332,880 | 332,905 | 25 | 0.0% | ||||
Other reserves | (417,788) | (512,195) | (94,407) | 22.6% | ||||
Total capital and reserves | 4,586,134 | 4,492,112 | (94,022) | (2.1%) | ||||
Retained earnings | 524,499 | 700,603 | 176,104 | 33.6% | ||||
Net income for the period | 426,215 | 114,296 | (311,919) | (73.2%) | ||||
Interim dividends | - | - | - | - | ||||
Deficits of subsidaries in development stage | - | - | - | - | ||||
Total retained earnings | 950,715 | 814,900 | (135,815) | (14.3%) | ||||
Total shareholder´s equity | 5,536,849 | 5,307,012 | (229,837) | (4.2%) | ||||
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY | 21,671,506 | 21,171,750 | (499,756) | (2.3%) | ||||
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CONSOLIDATED BALANCE SHEET ANALYSIS
The Company’sTotal Assets decreased by Ch$ 263,302 million. This was due to:
• | Current Assetsincreased by Ch$ 28,050 million, mainly due to: |
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• | Fixed Assetsdecreased 2.9%, or Ch$ 240,459 million, mainly explained by depreciation, for one year, of approximately Ch$ 420,000 million, sales of fixed assets of Ch$ 47,123 million and due to the real exchange rate effect on foreign companies’ assets as result the application of BT 64 related to register in historical US$ non-monetary assets in subsidiaries located in so-called “unstable countries” for Ch$ 299,679 million. The aforementioned is partially offset by fixed assets depreciation of approximately Ch$ 548,000 million. |
• | Other assetsdecreased by Ch$ 50,893 million, explained mainly as follows: |
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Total Liabilities decreased by Ch$ 263,302 million, due to:
•Short-term liabilitiesdecreased by Ch$ 230,525 million, or 14.4%, as result of: | ||
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•Long term liabilitiesincreased by Ch$ 478,236 million, or 12.7%, due to: | ||
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Minority interestreached Ch$ 2,751,634 million, a decrease of Ch$ 389,921 million, or 12.4%, which is mainly produced by two effects: purchases made to minority stake holders in Betania, Endesa Costanera and Chocón, and reductions in equity due to dividends paid and capital reductions, as in the case of Codensa (for further details, see note N°21a of the FECU).
Shareholders’ Equity decreased 12.4%, or Ch$ 121,092 million. This variation is mainly explained by the decrease of Ch$ 164,338 million in earnings, and reserves of Ch$ 49,739 million originated in exchange rate effect over foreign investments coverage, partially offset by the increase in accumulated earnings of Ch$ 92,782 million.
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DEBTMATURITY,MILLIONCH
Table 8
TOTAL | |||||||
Million Ch$ | 2007 | 2008 | 2009 | 2010 | 2011 | Balance | |
Chile | 13,342 | 224,978 | 518,495 | 54,851 | 47,350 | 1,079,592 | 1,938,608 |
Enersis | 834 | 1,740 | 186,143 | 1,743 | 1,843 | 441,087 | 633,390 |
Chilectra | 1,407 | - | - | - | - | - | 1,407 |
Other (*) | 1,591 | 3,534 | - | 957 | - | - | 6,083 |
Endesa Chile (**) | 9,510 | 219,704 | 332,351 | 52,151 | 45,507 | 638,504 | 1,297,728 |
Argentina | 23,124 | 52,543 | 48,906 | 42,832 | 45,347 | 16,128 | 228,882 |
Edesur | 3,731 | 21,289 | 9,632 | 11,235 | 5,618 | 11,235 | 62,739 |
Costanera | 19,394 | 25,108 | 26,981 | 19,304 | 17,777 | 4,893 | 113,456 |
Chocon | - | 6,147 | 12,293 | 12,293 | 21,953 | - | 52,686 |
Hidroinvest | - | - | - | - | - | - | - |
CTM | - | - | - | - | - | - | - |
Tesa | - | - | - | - | - | - | - |
Perú | 36,024 | 105,008 | 52,958 | 26,107 | 26,653 | 102,018 | 348,769 |
Edelnor | 17,457 | 18,620 | 12,344 | 4,988 | 7,463 | 41,299 | 102,172 |
Edegel | 18,568 | 86,387 | 40,614 | 21,120 | 19,189 | 60,718 | 246,596 |
Brazil | 25,909 | 130,532 | 107,717 | 185,267 | 143,064 | 192,084 | 784,573 |
Endesa Brasil | - | - | - | - | - | - | - |
Coelce | 9,777 | 24,473 | 26,508 | 22,300 | 22,300 | 41,935 | 147,293 |
Ampla | 10,879 | 98,196 | 73,609 | 100,290 | 57,689 | 55,544 | 396,207 |
Cachoeira | 1,750 | 609 | - | - | - | - | 2,358 |
Cien | 1,240 | 2,479 | 2,479 | 57,184 | 57,184 | 55,994 | 176,560 |
Fortaleza | 2,265 | 4,774 | 5,121 | 5,492 | 5,891 | 38,612 | 62,155 |
Colombia | 40,683 | - | 98,570 | 37,616 | 161,303 | 367,434 | 705,605 |
Codensa | 31,988 | - | 13,453 | 37,616 | 53,814 | 172,607 | 309,478 |
Emgesa | 857 | - | 85,116 | - | - | 112,863 | 198,837 |
Betania | 7,838 | - | - | - | 107,489 | 81,963 | 197,290 |
TOTAL | 139,083 | 513,061 | 826,646 | 346,673 | 423,717 | 1,757,256 | 4,006,436 |
(*) 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 | 25,324 | 427,017 | 984,122 | 104,110 | 89,872 | 2,049,105 | 3,679,551 |
Enersis | 1,584 | 3,303 | 353,307 | 3,307 | 3,498 | 837,200 | 1,202,199 |
Chilectra | 2,671 | - | - | - | - | - | 2,671 |
Other (*) | 3,020 | 6,708 | - | 1,817 | - | - | 11,545 |
Endesa Chile (**) | 18,050 | 417,006 | 630,815 | 98,985 | 86,375 | 1,211,905 | 2,463,136 |
Argentina | 43,891 | 99,729 | 92,826 | 81,297 | 86,070 | 30,612 | 434,426 |
Edesur | 7,081 | 40,407 | 18,282 | 21,325 | 10,662 | 21,325 | 119,082 |
Costanera | 36,810 | 47,656 | 51,210 | 36,639 | 33,741 | 9,287 | 215,344 |
Chocon | - | 11,667 | 23,333 | 23,333 | 41,667 | - | 100,000 |
Hidroinvest | - | - | - | - | - | - | - |
CTM | - | - | - | - | - | - | - |
Tesa | - | - | - | - | - | - | - |
Peru | 68,376 | 199,309 | 100,517 | 49,552 | 50,588 | 193,633 | 661,976 |
Edelnor | 33,133 | 35,342 | 23,430 | 9,467 | 14,166 | 78,388 | 193,926 |
Edegel | 35,242 | 163,967 | 77,087 | 40,086 | 36,422 | 115,246 | 468,049 |
Brazil | 49,177 | 247,755 | 204,450 | 351,643 | 271,540 | 364,583 | 1,489,148 |
Endesa Brasil | - | - | - | - | - | - | - |
Coelce | 18,556 | 46,451 | 50,313 | 42,326 | 42,326 | 79,594 | 279,567 |
Ampla | 20,648 | 186,380 | 139,712 | 190,355 | 109,496 | 105,424 | 752,015 |
Cachoeira | 3,321 | 1,156 | - | - | - | - | 4,476 |
Cien | 2,353 | 4,706 | 4,706 | 108,537 | 108,537 | 106,278 | 335,118 |
Fortaleza | 4,298 | 9,062 | 9,719 | 10,424 | 11,181 | 73,287 | 117,972 |
Colombia | 77,218 | - | 187,089 | 71,396 | 306,158 | 697,403 | 1,339,264 |
Codensa | 60,715 | - | 25,535 | 71,396 | 102,140 | 327,615 | 587,402 |
Emgesa | 1,627 | - | 161,554 | - | - | 214,219 | 377,400 |
Betania | 14,876 | - | - | - | 204,018 | 155,568 | 374,463 |
TOTAL | 263,986 | 973,810 | 1,569,005 | 657,999 | 804,230 | 3,335,337 | 7,604,366 |
(*) Includes: CAM | |||||||
(**) Includes: Endesa Chile Internacional, Pangue, Pehuenche, San Isidro, Celta and Tunel El Melon. |
Pg. 23
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CONSOLIDATEDCASHFLOW
UNDER CHILEAN GAAP, MILLION CH$
Table 9Million Ch$ | 1H 06 | 1H 07 | Var 06-07 | Chg % |
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | ||||
Net income (loss) for the year | 224,556 | 60,218 | (164,338) | (73.2%) |
Gain (losses) from sales of assets: | ||||
Losses (gain) on sale of property, plant and equipment | (17,525) | (265) | 17,260 | 98.5% |
Charges (credits) to income which do not represent cash flows: | ||||
Depreciation | 212,251 | 211,221 | (1,030) | (0.5%) |
Amortization of intangibles | 4,480 | 4,274 | (206) | (4.6%) |
Write-offs and accrued expenses | 10,514 | 24,278 | 13,764 | 130.9% |
Equity in income of related companies | (3,453) | (1,319) | 2,134 | 61.8% |
Equity in losses of related companies | 25 | 3,630 | 3,605 | - |
Amortization of positive goodwill | 28,503 | 28,429 | (74) | (0.3%) |
Amortization of negative goodwill | (4,026) | (2,297) | 1,729 | 42.9% |
Price-level restatement, net | (2,132) | 2,204 | 4,336 | N/A |
Exchange difference, net | (3,187) | (3,530) | (343) | (10.8%) |
Other credits to income which do not represent cash flows | (65,359) | (30,417) | 34,942 | 53.5% |
Other charges to income which do not represent cash flows | 49,871 | 148,214 | 98,343 | 197.2% |
Changes in assets which affect cash flows: | ||||
Decrease (increase) in trade receivables | (93,381) | (97,017) | (3,636) | (3.9%) |
Decrease (increase) in inventory | (1,361) | (15,667) | (14,306) | - |
Decrease (increase) in other assets | (49,535) | (38,458) | 11,077 | 22.4% |
Changes in liabilities which affect cash flow: | ||||
Decreased (increase) in payable accounts associated with operating results | 54,723 | 48,242 | (6,481) | (11.8%) |
Decreased (increase) of payable interest | 23,427 | 22,376 | (1,051) | (4.5%) |
Decreased (increase) in income tax payable | (105,944) | (90,426) | 15,518 | 14.6% |
Decreased (increase) in other accounts payable associated with non-operating results | 41,657 | 33,994 | (7,663) | (18.4%) |
Decreased (increase) in value added tax and other similar taxes payable, net | 753 | (817) | (1,570) | N/A |
Income (loss) attributable to minority interest | 166,731 | 85,959 | (80,772) | (48.4%) |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | 471,588 | 392,825 | (78,763) | (16.7%) |
Pg. 24
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Cont. Table 9
Million Ch$ | 1H 06 | 1H 07 | Var 06-07 | Chg % |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of shares issued to minorities | - | - | - | N/A |
Proceeds from debt issuance | 535,259 | 540,502 | 5,243 | 1.0% |
Proceeds from bond issuance | 56,245 | 311,864 | 255,619 | - |
Proceeds from loans obtained from related companies | (1,306) | - | 1,306 | N/A |
Proceeds from other loans obtained from related companies | - | - | - | N/A |
Other sources of financing | 2,432 | - | (2,432) | N/A |
Capital paid | (12,071) | - | 12,071 | N/A |
Dividends paid | (80,947) | (365,960) | (285,013) | - |
Payment of debt | (467,731) | (548,333) | (80,602) | (17.2%) |
Payment of bonds | (103,271) | (116,865) | (13,594) | (13.2%) |
Payments of loans obtained from related companies | (6,365) | (1,240) | 5,125 | - |
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 | (1,066) | (689) | 377 | 35.4% |
NET CASH FLOW FROM FINANCING ACTIVITIES | (78,820) | (180,721) | (101,901) | (129.3%) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from sale of property, plant and equipment | 742 | 2,573 | 1,831 | - |
Sale of investment | - | - | - | N/A |
Other loans received from related companies | - | - | - | N/A |
Other receipts from investments | 739 | 475 | (264) | (35.8%) |
Additions to property, plant and equipment | (225,287) | (255,811) | (30,524) | (13.5%) |
Long-term investments | (13,237) | (32,545) | (19,308) | (145.9%) |
Investment in financing instruments | - | - | - | N/A |
Other loans granted to related companies | - | (19,968) | (19,968) | N/A |
Other investment disbursements | (736) | (3,095) | (2,359) | - |
NET CASH FLOW FROM INVESTMENT ACTIVITIES | (237,779) | (308,373) | (70,594) | (29.7%) |
NET CASH FLOW FOR THE PERIOD | 154,989 | (96,269) | (251,258) | (162.1%) |
EFFECT OF PRICE-LEVEL RESTATEMENT ON CASH AND CASH EQUIVALENT | 21,799 | 26,693 | 4,894 | 22.5% |
NET VARIATION ON CASH AND CASH EQUIVALENT | 176,788 | (69,577) | (246,365) | (139.4%) |
CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE YEAR | 374,835 | 448,452 | 73,617 | 19.6% |
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD | 551,623 | 378,875 | (172,748) | (31.3%) |
Pg. 25
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UNDERCHILEANGAAP,THOUSANDUS$
Table 9.1
Thousand US$ | 1H 06 | 1H 07 | Var 06-07 | Chg % |
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | ||||
Net income (loss) for the year | 426,216 | 114,296 | (311,920) | (73.2%) |
Gain (losses) from sales of assets: | ||||
Losses (gain) on sale of property, plant and equipment | (33,263) | (504) | 32,759 | 98.5% |
Charges (credits) to income which do not represent cash flows: | ||||
Depreciation | 402,860 | 400,906 | (1,954) | (0.5%) |
Amortization of intangibles | 8,503 | 8,112 | (391) | (4.6%) |
Write-offs and accrued expenses | 19,956 | 46,081 | 26,125 | 130.9% |
Equity in income of related companies | (6,554) | (2,503) | 4,051 | 61.8% |
Equity in losses of related companies | 47 | 6,890 | 6,843 | - |
Amortization of positive goodwill | 54,099 | 53,960 | (139) | (0.3%) |
Amortization of negative goodwill | (7,641) | (4,360) | 3,281 | 42.9% |
Price-level restatement, net | (4,046) | 4,183 | 8,229 | N/A |
Exchange difference, net | (6,049) | (6,701) | (652) | (10.8%) |
Other credits to income which do not represent cash flows | (124,054) | (57,733) | 66,321 | 53.5% |
Other charges to income which do not represent cash flows | 94,658 | 281,316 | 186,658 | 197.2% |
Changes in assets which affect cash flows: | ||||
Decrease (increase) in trade receivables | (177,241) | (184,141) | (6,900) | (3.9%) |
Decrease (increase) in inventory | (2,584) | (29,737) | (27,153) | - |
Decrease (increase) in other assets | (94,019) | (72,995) | 21,024 | 22.4% |
Changes in liabilities which affect cash flow: | ||||
Decreased (increase) in payable accounts associated with operating results | 103,866 | 91,566 | (12,300) | (11.8%) |
Decreased (increase) of payable interest | 44,465 | 42,471 | (1,994) | (4.5%) |
Decreased (increase) in income tax payable | (201,085) | (171,632) | 29,453 | 14.6% |
Decreased (increase) in other accounts payable associated with non-operating results | 79,067 | 64,523 | (14,544) | (18.4%) |
Decreased (increase) in value added tax and other similar taxes payable, net | 1,429 | (1,551) | (2,980) | N/A |
Income (loss) attributable to minority interest | 316,461 | 163,153 | (153,308) | (48.4%) |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | 895,091 | 745,597 | (149,494) | (16.7%) |
Pg. 26
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Cont. Table 9.1
Thousand US$ | 1H 06 | 1H 07 | Var 06-07 | Chg % |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of shares issued to minorities | - | - | - | N/A |
Proceeds from debt issuance | 1,015,942 | 1,025,893 | 9,951 | 1.0% |
Proceeds from bond issuance | 106,755 | 591,929 | 485,174 | - |
Proceeds from loans obtained from related companies | (2,479) | - | 2,479 | N/A |
Proceeds from other loans obtained from related companies | - | - | - | N/A |
Other sources of financing | 4,616 | - | (4,616) | N/A |
Capital paid | (22,911) | - | 22,911 | N/A |
Dividends paid | (153,640) | (694,605) | (540,965) | - |
Payment of debt | (887,771) | (1,040,756) | (152,985) | (17.2%) |
Payment of bonds | (196,012) | (221,815) | (25,803) | (13.2%) |
Payments of loans obtained from related companies | (12,081) | (2,354) | 9,727 | - |
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 | (2,023) | (1,307) | 716 | 35.4% |
NET CASH FLOW FROM FINANCING ACTIVITIES | (149,605) | (343,016) | (193,411) | (129.3%) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from sale of property, plant and equipment | 1,408 | 4,883 | 3,475 | - |
Sale of investment | - | - | - | N/A |
Other loans received from related companies | - | - | - | N/A |
Other receipts from investments | 1,403 | 901 | (502) | (35.8%) |
Additions to property, plant and equipment | (427,603) | (485,539) | (57,936) | (13.5%) |
Long-term investments | (25,124) | (61,772) | (36,648) | (145.9%) |
Investment in financing instruments | - | - | - | N/A |
Other loans granted to related companies | - | (37,900) | (37,900) | N/A |
Other investment disbursements | (1,397) | (5,875) | (4,478) | - |
NET CASH FLOW FROM INVESTMENT ACTIVITIES | (451,313) | (585,302) | (133,989) | (29.7%) |
NET CASH FLOW FOR THE PERIOD | 294,174 | (182,723) | (476,897) | (162.1%) |
EFFECT OF PRICE-LEVEL RESTATEMENT ON CASH AND CASH EQUIVALENT | 41,375 | 50,665 | 9,290 | 22.5% |
NET VARIATION ON CASH AND CASH EQUIVALENT | 335,549 | (132,058) | (467,607) | (139.4%) |
CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE YEAR | 711,451 | 851,179 | 139,728 | 19.6% |
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD | 1,047,000 | 719,121 | (327,879) | (31.3%) |
Pg. 27
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CONSOLIDATED CASH FLOW ANALYSIS
During the period, the Company generated a net cash outflow of Ch$ 96,269 million, comprised by the following activities:
Table 10Effective Cash Flow (million Ch$) | 1H06 | 1H07 | Var 06-07 | Chg % |
Operating | 471,588 | 392,825 | (78,763) | (16.7%) |
Financing | (78,820) | (180,721) | (101,901) | (129.3%) |
Investment | (237,779) | (308,373) | (70,594) | (29.7%) |
Net cash flow of the period | 154,989 | (96,269) | (251,258) | (162.1%) |
Table 10.1
Effective Cash Flow (thousand US$) | 1H06 | 1H07 | Var 06-07 | Chg % |
Operating | 895,092 | 745,597 | (149,495) | (16.7%) |
Financing | (149,603) | (343,016) | (193,413) | (129.3%) |
Investment | (451,313) | (585,304) | (133,991) | (29.7%) |
Net cash flow of the period | 294,176 | (182,723) | (476,899) | (162.1%) |
Operating activities generated a net positive cash flow of Ch$ 392,825 million, which represent a decrease of 16.7% . The operating cash flow is broken as follows:
• | Net income for the period amounting to Ch$ 60,218 million, plus: | ||
• | Charges of Ch$ 422,250 million to the income statement that do not represent cash flow and correspond mainly to the depreciation of the period for Ch$ 211,221 million, write-offs and provisions for Ch$ 24,278 million, amortizations of positive goodwill of Ch$ 28,429 million, amortization of intangibles of Ch$ 4,274 million, losses in long term investments of Ch$ 3,630 million, and other charges that do not represent cash flow for Ch$ 148,214 million, which includes the Ch$ 140,600 million negative conversion effect of the application of BT 64 for foreign subsidiaries. | ||
• | Liabilities variation which affect operating cash flow of Ch$ 13,369 million. | ||
• | The items above were partially compensated by: | ||
• | Non-cash credits for Ch$ 37,564 million that do not represent cash flows, of which Ch$ 20,606 million correspond to the positive effect on the BT 64 conversion accountings from foreign subsidiaries. | ||
• | Profit on investment in related companies of Ch$ 1,319 million. | ||
• | Negative goodwill amortization of Ch$ 2,297 million. | ||
• | Variation in net assets that affect operating cash flow of Ch$ 151,142 million. |
Financing activities resulted in a negative cash flow of Ch$ 180,721 million mainly due to loans repayment of Ch$ 548,333 million, dividend payments of Ch$ 365,960 million, bonds redemptions by Ch$ 116,865 million, repayments of debts with related companies of Ch$ 1,240 million, and other outflows of Ch$ 689 million. The outflows above are partly offset by new financings, mainly through loans for a value of Ch$ 540,502 million, and bond issuances of Ch$ 311,864 million.
Investment activitieshad a net negative cash flow of Ch$ 308,373 million, which represents an increase of 29.7% or Ch$ 70,594 million. These disbursements are mainly due to the addition of fixed assets for Ch$ 255,811 million, long term investments for Ch$ 32,545, other loans to related companies for Ch$ 19,968 million and other disbursements of Ch$ 3,095 million, partially compensated by the sale of fixed assets of Ch$ 2,573 million.
Pg. 28
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CASHFLOWRECEIVED BYENERSIS,CHILECTRA ANDENDESACHILEFROMFOREIGNSUBSIDIARIES
Table 11
Millions Ch$ | Interest Received | Dividends Received | Management Fee | Prepayment intercompany | Capital Reductions | |||||
1H06 | 1H07 | 1H06 | 1H07 | 1H06 | 1H07 | 1H06 | 1H07 | 1H06 | 1H07 | |
Argentina | 2,913 | 828 | - | 5,698 | 158 | 158 | 10,537 | - | - | - |
Peru | - | - | 4,593 | 3,819 | - | - | - | - | - | - |
Brazil | 1,620 | - | - | 36,635 | - | - | 32,786 | - | - | - |
Colombia | 19,072 | - | - | 24,659 | - | - | 91,405 | - | - | - |
Total | 23,605 | 828 | 4,593 | 70,811 | 158 | 158 | 134,728 | - | - | - |
Millions Ch$ | Total Cash Received | |
1H06 | 1H07 | |
Argentina | 13,608 | 6,684 |
Peru | 4,593 | 3,819 |
Brazil | 34,406 | 36,635 |
Colombia | 110,477 | 24,659 |
Total | 163,084 | 71,797 |
Table 11.1
Thousand US$ | Interest Received | Dividends Received | Management Fee | Prepayment Intercompany | Capital Reductions | |||||
1H06 | 1H07 | 1H06 | 1H07 | 1H06 | 1H07 | 1H06 | 1H07 | 1H06 | 1H07 | |
Argentina | 5,529 | 1,571 | - | 10,814 | 300 | 300 | 20,000 | - | - | - |
Peru | - | - | 8,717 | 7,249 | - | - | - | - | - | - |
Brazil | 3,074 | - | - | 69,534 | - | - | 62,229 | - | - | - |
Colombia | 36,200 | - | - | 46,804 | - | - | 173,490 | - | - | - |
Total | 44,803 | 1,571 | 8,717 | 134,401 | 300 | 300 | 255,719 | - | - | - |
Thousand US$ | Total Cash Received | |
1H06 | 1H07 | |
Argentina | 25,829 | 12,686 |
Peru | 8,717 | 7,249 |
Brazil | 65,303 | 69,534 |
Colombia | 209,690 | 46,804 |
Total | 309,539 | 136,273 |
Source: Internal Financial Report
Pg. 29
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PAYMENTS FORADDITIONS OFFIXEDASSETS ANDDEPRECIATION
Table 12Payments for Additions of | Depreciation | |||
Fixed assets | ||||
Million Ch$ | 1H06 | 1H07 | 1H06 | 1H07 |
Endesa | 76,250 | 97,160 | 89,291 | 93,814 |
Cachoeira (*) | 626 | 891 | 7,929 | 6,677 |
Fortaleza (**) | 314 | 563 | 2,591 | 2,499 |
Cien (**) | 260 | 46 | 6,135 | 6,517 |
Chilectra S.A. | 23,272 | 27,990 | 8,972 | 9,669 |
Edesur S.A. | 16,024 | 16,540 | 22,713 | 20,077 |
Edelnor S.A. | 8,770 | 12,054 | 8,862 | 8,647 |
Ampla | 55,988 | 36,579 | 21,930 | 18,870 |
Coelce | 31,330 | 45,473 | 18,900 | 19,958 |
Codensa S.A. | 10,078 | 15,886 | 21,641 | 21,509 |
Cam Ltda. | 382 | 841 | 1,445 | 793 |
Inmobiliaria Manso de Velasco Ltda. | 541 | 534 | 176 | 154 |
Synapsis Soluciones y Servicios Ltda. | 1,408 | 1,046 | 1,025 | 1,345 |
Holding Enersis | 45 | 208 | 641 | 692 |
Total | 225,287 | 255,811 | 212,251 | 211,221 |
Table 12.1
Payments for Additions of | Depreciation | |||
Fixed assets | ||||
Thousand US$ | 1H06 | 1H07 | 1H06 | 1H07 |
Endesa | 144,725 | 184,413 | 169,478 | 178,062 |
Cahoeira (*) | 1,188 | 1,692 | 15,049 | 12,673 |
Fortaleza (**) | 595 | 1,068 | 4,917 | 4,743 |
Cien (**) | 493 | 88 | 11,644 | 12,370 |
Chilectra S.A. | 44,171 | 53,126 | 17,029 | 18,352 |
Edesur S.A. | 30,414 | 31,393 | 43,110 | 38,107 |
Edelnor S.A. | 16,646 | 22,878 | 16,820 | 16,412 |
Ampla | 106,267 | 69,428 | 41,624 | 35,815 |
Coelce | 59,466 | 86,309 | 35,872 | 37,881 |
Codensa S.A. | 19,128 | 30,152 | 41,075 | 40,825 |
Cam Ltda. | 726 | 1,596 | 2,743 | 1,505 |
Inmobiliaria Manso de Velasco Ltda. | 1,027 | 1,013 | 334 | 292 |
Synapsis Soluciones y Servicios Ltda. | 2,673 | 1,985 | 1,945 | 2,553 |
Holding Enersis | 86 | 394 | 1,217 | 1,313 |
Total | 427,605 | 485,535 | 402,858 | 400,904 |
(*) 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. |
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ANALYSISOFEXCHANGERISKANDINTERESTRATE
The Company has a high percentage of its loans in dollars, as an important part of its sales, in the different markets where it operates, are partly indexed to that currency. However, the Brazilian, Argentine and Colombian markets are indexed to the dollars 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 dollar-denominated debt with local currency debt, when market financial conditions warrant it.
In a scenario of a high exchange rate risk, the company has continued with its policy of partly covering its liabilities in dollars in order to mitigate the effects of the fluctuations in the exchange rate upon results. Considering the important reduction in the accounting mismatch in recent years, the company has modified its policy on dollar-peso hedging in order to establish a policy of covering cash flows, together with a maximum permissible accounting mismatch, on which hedging operations will be performed.
As of June 30, 2007, the company had hedged in Chile, by means of US$/UF swap operations, an amount of US$ 600 million on a consolidated basis and held US$ 125 million in forward contracts, allowing for an adequate management of the hedging policy. In addition, the Company holds US$ 10 million in US$/Ch$ forward contracts. At the same date last year, the Company had already contracted US$ 700 million of the total US$/UF swap as part of the establishment of the new hedging policy whereby US$ 100 million expired during 2006.
In terms of interest rate risk, the Company had, on a consolidated basis, a proportion of its indebtedness at a fixed / variable ratio of approximately 71.8% fixed / 28.2% variable as of June 30, 2007. The percentage of its indebtedness at a fixed rate has decreased compared with the 78.3% / 21.7% ratio as of the same date in 2006. This is mainly due to the fact that some subsidiaries refinanced their debts from fixed to variable rate. Nevertheless, the risk levels had remained within the range of the coverage policies established by the Group.
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![]() | PRESS RELEASE First Half 2007 – Breakdown by Country |
ARGENTINA
GENERATION
In the generation business, our subsidiary Costanera recorded an increase in Operating Income of Ch$ 2,299 million, reaching Ch$ 2,761 million, due to an increase in operating revenues of 18.4% while operating costs rose by 15.7%, as a result of a more efficient commercial policy, as well as higher average sales prices. Both effects more than offset the lower physical sales.
At our subsidiary Chocón, Operating Income was Ch$ 14,654 million during the first half of 2007, showing no significant variations, with higher average sales prices and lower physical sales of 14.7%, derived from hydrological management measures of the Argentine Energy Secretariat, and a lower hydrology.
COSTANERA
Operating Income
Million US$ | Million Ch$ | ||||||
1H 06 | 1H 07 | 1H 06 | 1H 07 | Chg % | |||
Operating Revenues | 156 | 185 | 82,184 | 97,335 | 18.4% | ||
Operating Costs | (153) | (177) | (80,724) | (93,461) | (15.7%) | ||
Operating Margin | 3 | 7 | 1,460 | 3,874 | 165.3% | ||
Selling and Administrative Expenses | (2) | (2) | (998) | (1,113) | (11.5%) | ||
Operating Income | 1 | 5 | 462 | 2,761 | - | ||
* Please take note that these figures may differ from those accounted under Argentine GAAP. |
Additional Information
Costanera | 1H06 | 1H07 | Var 06-07 | Chg % |
GWh Produced | 4,310 | 4,170 | -140 | (3.2%) |
GWh Sold | 4,316 | 4,188 | -127 | (2.9%) |
Market Share | 8.9% | 8.2% | - | (8.3%) |
Costanera Financial Debt Maturity (with third party) US$ 215 million
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CHOCÓN
Operating Income
Million US$ | Million Ch$ | ||||||
1H 06 | 1H 07 | 1H 06 | 1H 07 | Chg % | |||
Operating Revenues | 57 | 58 | 30,250 | 30,491 | 0.8% | ||
Operating Costs | (29) | (29) | (15,092) | (15,322) | (1.5%) | ||
Operating Margin | 29 | 29 | 15,159 | 15,169 | 0.1% | ||
Selling and Administrative Expenses | (1) | (1) | (449) | (516) | (14.9%) | ||
Operating Income | 28 | 28 | 14,710 | 14,654 | (0.4%) | ||
* Please take note that these figures may differ from those accounted under Argentine GAAP. |
Additional Information
Chocón | 1H06 | 1H07 | Var 06-07 | Chg % |
GWh Produced | 2,463 | 2,035 | -428 | (17.4%) |
GWh Sold | 2,514 | 2,145 | -369 | (14.7%) |
Market Share | 5.2% | 4.2% | - | (19.4%) |
Chocon Financial Debt Maturity (with third party) US$ 100 million
DISTRIBUTION
Edesur reported a 4.6% increase in Operating Income, from Ch$ 14,059 million to Ch$ 14,707 million, basically explained by better sales margins, and higher energy demand which reached 7,887 GWh. Our client base grew by 30 thousand, amounting to 2.2 million clients.
It is important to remember that as of December 28, 2006, through Decree N°1,959, the Argentine Government ratified the Agreement Act published in January 8, 2007 in the Official Bulletin of the Argentine Republic. 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 tariffs effective as of February 1, 2007, which corresponds to consumption accrued during the period between November 1st, 2005 and January 31st, 2007. The ENRE established that the total amount will be invoiced in 55 equal and consecutive monthly installments.
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EDESUR
Operating Income
Million US$ | Million Ch$ | ||||||
1H 06 | 1H 07 | 1H 06 | 1H 07 | Chg % | |||
Operating Revenues | 264 | 289 | 139,317 | 152,085 | 9.2% | ||
Operating Costs | (206) | (224) | (108,414) | (117,965) | (8.8%) | ||
Operating Margin | 59 | 65 | 30,904 | 34,120 | 10.4% | ||
Selling and Administrative Expenses | (32) | (37) | (16,844) | (19,413) | (15.2%) | ||
Operating Income | 27 | 28 | 14,059 | 14,707 | 4.6% | ||
* Please take note that these figures may differ from those accounted under Argentine GAAP. |
Additional Information
Table 18
Edesur | 1H06 | 1H07 | Var 06-07 | Chg % |
Customers (Th) | 2,178 | 2,208 | 31 | 1.4% |
GWh Sold | 7,274 | 7,887 | 613 | 8.4% |
Clients/Employee | 921 | 893 | (28) | (3.0%) |
Energy Losses % (12M) | 10.4% | 10.5% | - | 0.8% |
Edesur Financial Debt Maturity (with third party) US$ 119million
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BRAZIL
ENDESABRASIL
Million US$ | Million Ch$ | Chg % | |||||
1H 06 | 1H 07 | 1H 06 | 1H 07 | ||||
Operating Revenues | 1,095 | 1,052 | 576,914 | 554,430 | (3.9%) | ||
Operating Costs | (758) | (658) | (399,352) | (346,432) | 13.3% | ||
Operating Margin | 337 | 395 | 177,562 | 207,998 | 17.1% | ||
Selling and Administrative Expenses | (67) | (89) | (35,090) | (46,685) | (33.0%) | ||
Operating Income | 270 | 306 | 142,472 | 161,313 | 13.2% | ||
* Please take note that these figures could differ from those accounted under Brazilian GAAP. |
GENERATION
In the generation business, operating income of Cachoeira Dourada rose by 56.1%, improving from Ch$ 15,839 million to Ch$ 24,727 million, mainly due to better average purchases and sales margins, led by higher average prices, while physical sales did not vary significantly.
Fortaleza slightly improved its Operating Income by 9.6% reaching Ch$ 22,294, mainly due to better average purchase and sales margins, while physical sales remained almost unchanged.
CIEN registered a negative Operating Income of Ch$ 1,095 million, worse than the positive result Ch$ 3,924 million as of same period last year, mainly due to lower physical sales volumes, which is the result of the lack of gas exports from Argentina to Brazil.
CIEN is restructuring its business in order to reduce its dependency on the energy supply in both countries. The company is renegotiating its supply contracts, as well as searching for an adequate payment for its international transmission services.
CACHOEIRA
Operating Income
Million US$ | Million Ch$ | ||||||
1H 06 | 1H 07 | 1H 06 | 1H 07 | Chg % | |||
Operating Revenues | 64 | 78 | 33,512 | 41,030 | 22.4% | ||
Operating Costs | (30) | (29) | (15,755) | (15,228) | 3.3% | ||
Operating Margin | 34 | 49 | 17,757 | 25,802 | 45.3% | ||
Selling and Administrative Expenses | (4) | (2) | (1,918) | (1,075) | 44.0% | ||
Operating Income | 30 | 47 | 15,839 | 24,727 | 56.1% | ||
* Please take note that these figures may differ from those accounted under Brazilian GAAP. |
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Additional Information
Table 21
Cachoeira | 1H06 | 1H07 | Var 06-07 | Chg % |
GWh Produced | 1,968 | 1,863 | -105 | (5.4%) |
GWh Sold | 1,989 | 1,955 | -34 | (1.7%) |
Market Share | 1.1% | 1.1% | - | 0.0% |
Cachoeira Financial Debt Maturity (with third party)
US$ 4 million
FORTALEZA
Operating Income
Million US$ | Million Ch$ | ||||||
1H 06 | 1H 07 | 1H 06 | 1H 07 | Chg % | |||
Operating Revenues | 107 | 97 | 56,496 | 50,965 | (9.8%) | ||
Operating Costs | (68) | (53) | (35,570) | (27,948) | (21.4%) | ||
Operating Margin | 40 | 44 | 20,926 | 23,017 | 10.0% | ||
Selling and Administrative Expenses | (1) | (1) | (588) | (723) | 22.9% | ||
Operating Income | 39 | 42 | 20,338 | 22,294 | 9.6% | ||
Additional Information
Fortaleza | 1H06 | 1H07 | Var 06-07 | Chg % |
GWh Produced | 206 | 1 | -205 | (99.8%) |
GWh Sold | 1,339 | 1,337 | -2 | (0.1%) |
Market Share | 0.8% | 0.7% | - | - |
Fortaleza Financial Debt Maturity (with third party)
US$ 118 million
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TRANSMISSION
CIEN
Operating Income
Million US$ | Million Ch$ | ||||||
1H 06 | 1H 07 | 1H 06 | 1H 07 | Chg % | |||
Operating Revenues | 135 | 110 | 70,883 | 57,904 | (18.3%) | ||
Operating Costs | (123) | (107) | (64,559) | (56,564) | (12.4%) | ||
Operating Margin | 12 | 3 | 6,324 | 1,340 | (78.8%) | ||
Selling and Administrative Expenses | (5) | (5) | (2,400) | (2,435) | 1.5% | ||
Operating Income | 7 | (2) | 3,924 | (1,095) | N/A | ||
Additional Information
Table 25
CIEN | 1H06 | 1H07 | Var 06-07 | Chg % |
GWh Produced | 0 | 0 | - | - |
GWh Sold | 3,101 | 2,193 | -908 | (29.3%) |
Market Share | N.A. | N.A. | - | - |
Cien Financial Debt Maturity (with third party) US$ 335 million
DISTRIBUTION
In the distribution business, our subsidiary Ampla registered an improvement of 27.4% in Operating Income, reaching Ch$ 71,960 million, due to higher demand, which boosted physical sales 4.0% reaching 4,521 GWh, and also explained by better margins. Energy losses reached 22.3%, an improvement in comparison with the 22.4% loss level registered the same period in 2006. Our client base grew by 105 thousand clients reaching 2.37 million.
Coelce reduced its Operating Income by Ch$ 2,604 million, reaching Ch$ 45,700 million, as a consequence of an allowance for doubtful accounts due to the non-recoverability estimation for fixed assets, of Ch$ 11,338 million, partially offset by higher physical sales, which increased 5.8% reaching 3,439 GWh, and also due to better margins. Energy losses decreased significantly, from 12.9% to 12.6% as of June 2007. The client base grew by 136 thousand clients achieving a 5.5% increase.
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AMPLA
Operating Income
Million US$ | Million Ch$ | ||||||
1H 06 | 1H 07 | 1H 06 | 1H 07 | Chg % | |||
Operating Revenues | 534 | 531 | 281,549 | 279,831 | (0.6%) | ||
Operating Costs | (410) | (369) | (215,978) | (194,490) | 9.9% | ||
Operating Margin | 124 | 162 | 65,571 | 85,341 | 30.2% | ||
Selling and Administrative Expenses | (17) | (25) | (9,107) | (13,381) | (46.9%) | ||
Operating Income | 107 | 137 | 56,464 | 71,960 | 27.4% | ||
* Please take note that these figures may differ from those accounted under Brazilian GAAP. |
Additional Information
Ampla | 1H06 | 1H07 | Var 06-07 | Chg % |
Customers (Th) | 2,267 | 2,372 | 105 | 4.6% |
GWh Sold | 4,347 | 4,521 | 174 | 4.0% |
Clients/Employee | 1,638 | 1,692 | 54 | 3.3% |
Energy Losses % (12M) | 22.4% | 22.3% | - | (0.8%) |
Ampla Financial Debt Maturity (with third party)
US$ 752 million
COELCE
Operating Income
Million US$ | Million Ch$ | ||||||
1H 06 | 1H 07 | 1H 06 | 1H 07 | Chg % | |||
Operating Revenues | 414 | 419 | 217,895 | 220,914 | 1.4% | ||
Operating Costs | (285) | (279) | (150,401) | (146,937) | 2.3% | ||
Operating Margin | 128 | 140 | 67,494 | 73,977 | 9.6% | ||
Selling and Administrative Expenses | (36) | (54) | (19,190) | (28,277) | (47.4%) | ||
Operating Income | 92 | 87 | 48,304 | 45,700 | (5.4%) | ||
* Please take note that these figures may differ from those accounted under Brazilian GAAP. |
Additional Information
Coelce | 1H06 | 1H07 | Var 06-07 | Chg % |
Customers (Th) | 2,481 | 2,617 | 136 | 5.5% |
GWh Sold | 3,249 | 3,439 | 189 | 5.8% |
Clients/Employee | 1,888 | 2,032 | 144 | 7.6% |
Energy Losses % (12M) | 12.9% | 12.6% | - | (2.6%) |
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Coelce Financial Debt Maturity (with third party) US$ 280 million
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CHILE
GENERATION
Operating Income for the Chilean operations were Ch$ 149,780, increasing 3.6% compared to the same period in 2006, in part as consequence of a 0.7% increase in physical sales. Hydrological reserves in the reservoirs have enabled Endesa Chile to maintain hydroelectric generation. Endesa’s commercial policy has permitted mitigation of hydrological risk and, in addition to the efficiency of its facilities, has allowed it to become a net seller in the spot market. Additionally, operating cost grew by 50% mainly due to an increase of Ch$ 67,965 million in fuel and lubricant costs resulting from higher thermal generation.
ENDESACHILE
Consolidated Income Statement
Million US$ | Million Ch$ | ||||||
1H06 | 1H07 | 1H06 | 1H07 | Chg % | |||
Operating Revenues | 1,244 | 1,498 | 655,525 | 789,283 | 20.4% | ||
Operating Costs | (734) | (935) | (386,707) | (492,560) | (27.4%) | ||
Selling and Administrative Expenses | (37) | (36) | (19,237) | (18,895) | 1.8% | ||
Operating Income | 474 | 527 | 249,581 | 277,828 | 11.3% | ||
Interest Income | 13 | 17 | 7,048 | 8,822 | 25.2% | ||
Interest Expenses | (172) | (174) | (90,750) | (91,454) | (0.8%) | ||
Net Financial Income (Expenses) | (159) | (157) | (83,702) | (82,632) | 1.3% | ||
Equity Gains from Related Company | 42 | 32 | 22,084 | 16,675 | (24.5%) | ||
Equity Losses from Related Company | (0) | (7) | (7) | (3,570) | - | ||
Net Income from Related Companies | 42 | 25 | 22,077 | 13,105 | (40.6%) | ||
Other Non Operating Income | 127 | 21 | 66,958 | 11,237 | (83.2%) | ||
Other Non Operating Expenses | (39) | (148) | (20,555) | (77,871) | - | ||
Net other Non Operating Income (Expenses) | 88 | (126) | 46,403 | (66,635) | - | ||
Price Level Restatement | 3 | 2 | 1,677 | 1,148 | (31.6%) | ||
Foreign Exchange Effect | (3) | 11 | (1,784) | 5,653 | - | ||
Net of Monetary Exposure | (0) | 13 | (107) | 6,801 | - | ||
Positive Goodwill Amortization | (1) | (1) | (489) | (438) | 10.5% | ||
Non Operating Income | (30) | (246) | (15,818) | (129,799) | - | ||
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 444 | 281 | 233,763 | 148,029 | (36.7%) | ||
Extraordinary Items | - | - | - | - | - | ||
Income Tax | (115) | (124) | (60,640) | (65,069) | (7.3%) | ||
Minority Interest | (93) | (44) | (49,212) | (23,114) | 53.0% | ||
Negative Goodwill Amortization | 8 | 4 | 4,005 | 2,277 | (43.1%) | ||
NET INCOME | 243 | 118 | 127,915 | 62,123 | (51.4%) | ||
Additional Information
Chilean Companies | 1H06 | 1H07 | Var 06-07 | Chg % |
GWh Produced | 9,147 | 9,557 | 411 | 4.5% |
GWh Sold | 9,632 | 9,702 | 70 | 0.7% |
Market Share | 38.8% | 36.8% | - | (5.2%) |
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Endesa-Chile Parent Company Financial Debt Maturity (with third party)
US$ 2,463 million
DISTRIBUTION
Operating Income for the Chilean operations increased by 1.03% or Ch$ 588 million, reaching Ch$ 60,870 million, mainly due to higher physical sales of 5.9%, which reached 6,449 GWh, reflecting favorable demand conditions of the country, and also due to the better purchase and sales margins during the period. Energy losses increased to 5.5% regarding the 5.3% achieved first semester 2006, meanwhile our clients’ base rose by 40 thousand, reaching 1.46 million customers.
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CHILECTRA
Income Statement
Table 32
Million US$ | Million Ch$ | |||||||||
1H 06 | 1H 07 | 1H 06 | 1H 07 | Chg % | ||||||
Operating Revenues | 622 | 692 | 327,733 | 364,567 | 11.2% | |||||
Operating Costs | (464) | (534) | (244,550) | (281,522) | (15.1%) | |||||
Operating Margin | 158 | 158 | 83,184 | 83,045 | (0.2%) | |||||
Selling and Administrative Expenses | (43) | (42) | (22,901) | (22,175) | 3.2% | |||||
Operating Income | 114 | 116 | 60,282 | 60,870 | 1.0% | |||||
Interest Income | 5 | 5 | 2,532 | 2,778 | 9.7% | |||||
Interest Expenses | (26) | (25) | (13,521) | (12,992) | 3.9% | |||||
Net Financial Income (Expenses) | (21) | (19) | (10,988) | (10,213) | 7.1% | |||||
Equity Gains from Related Company | 28 | 23 | 14,886 | 12,029 | (19.2%) | |||||
Equity Losses from Related Company | (0) | (2) | (162) | (883) | 3.9% | |||||
Net Income from Related Companies | 28 | 21 | 14,724 | 11,146 | (24.3%) | |||||
Other Non Operating Income | 6 | 8 | 3,287 | 4,054 | 23.4% | |||||
Other Non Operating Expenses | (5) | (3) | (2,522) | (1,411) | 44.0% | |||||
Conversion Effect (BT 64) | - | - | - | - | ||||||
Net other Non Operating Income (Expenses) | 1 | 5 | 765 | 2,643 | - | |||||
Price Level Restatement | (3) | (1) | (1,322) | (271) | 79.5% | |||||
Foreign Exchange Effect | - | - | - | - | ||||||
Net of Monetary Exposure | (3) | (1) | (1,322) | (271) | 79.5% | |||||
Positive Goodwill Amortization | (1) | (1) | (308) | (297) | 3.4% | |||||
Non Operating Income | 5 | 6 | 2,871 | 3,008 | 4.8% | |||||
Net Income b. Taxes, Min Int and Neg Goodwill Am | 120 | 121 | 63,153 | 63,878 | 1.1% | |||||
Extraordinary Items | - | - | - | - | ||||||
Income Tax | 194 | (17) | 102,337 | (9,072) | (108.9%) | |||||
Minority Interest | 2 | (3) | 853 | (1,382) | - | |||||
Negative Goodwill Amortization | - | - | - | - | ||||||
NET INCOME | 316 | 101 | 166,352 | 53,424 | (67.9%) | |||||
Additional Information
Table 33
Chilectra | 1H06 | 1H07 | Var 06-07 | Chg % | ||||
Customers (Th) | 1,422 | 1,462 | 41 | 2.9% | ||||
GWh Sold | 6,087 | 6,449 | 362 | 5.9% | ||||
Clients/Employee | 1,978 | 2,031 | 53 | 2.7% | ||||
Energy Losses % (12M) | 5.3% | 5.5% | - | 4.0% | ||||
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![](https://capedge.com/proxy/6-K/0001292814-07-002260/colombia.gif)
COLOMBIA
GENERATION
Emgesa recorded an increase of Ch$ 20,737 million in Operating Income, which reached Ch$ 71,290 million as of June 2007. This improvement is mainly the result of higher average sales margin, higher reliability charge and higher physical sales of 2.4%, effects that more than offset the 5% of lower generation.
Betania reported an increase in Operating Income of Ch$ 625 million compared to the same period in 2006, reaching Ch$ 7,849 million. This is mainly the result of higher average sales margin, partially compensated by a 16.8% reduction in physical sales.
EMGESA
Operating Income
Table 36
Million US$ | Million Ch$ | |||||||||
1H 06 | 1H 07 | 1H 06 | 1H 07 | Chg % | ||||||
Operating Revenues | 218 | 268 | 114,939 | 141,211 | 22.9% | |||||
Operating Costs | (118) | (129) | (62,420) | (67,797) | (8.6%) | |||||
Operating Margin | 100 | 139 | 52,519 | 73,414 | 39.8% | |||||
Selling and Administrative Expenses | (4) | (4) | (1,966) | (2,123) | (8.0%) | |||||
Operating Income | 96 | 135 | 50,553 | 71,290 | 41.0% | |||||
* Please take note that these figures may differ from those accounted under Colombian GAAP. |
Additional Information
Table 37
Emgesa | 1H06 | 1H07 | Var 06-07 | Chg % | ||||
GWh Produced | 4,869 | 4,625 | -244 | (5.0%) | ||||
GWh Sold | 5,818 | 5,956 | 138 | 2.4% | ||||
Market Share | 16.9% | 16.8% | - | (0.8%) | ||||
Emgesa Financial Debt Maturity (with third party)
US$ 377million
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BETANIA
Operating Income
Table 34
Million US$ | Million Ch$ | |||||||||
1H 06 | 1H 07 | 1H 06 | 1H 07 | Chg % | ||||||
Operating Revenues | 34 | 37 | 17,774 | 19,712 | 10.9% | |||||
Operating Costs | (19) | (22) | (10,217) | (11,561) | (13.1%) | |||||
Operating Margin | 14 | 15 | 7,557 | 8,152 | 7.9% | |||||
Selling and Administrative Expenses | (1) | (1) | (332) | (302) | 9.0% | |||||
Operating Income | 14 | 15 | 7,224 | 7,849 | 8.6% | |||||
* Please take note that these figures may differ from those accounted under Colombian GAAP. |
Additional Information
Table 35
Betania | 1H06 | 1H07 | Var 06-07 | Chg % | ||||
GWh Produced | 1,189 | 889 | -301 | (25.3%) | ||||
GWh Sold | 1,527 | 1,270 | -257 | (16.8%) | ||||
Market Share | 3.6% | 2.2% | - | (40.2%) | ||||
Betania Financial Debt Maturity (with third party)
US$ 374 million
DISTRIBUTION
In the distribution business, Codensa registered a 4.8% increase in Operating Income, reaching Ch$ 74,384 million, mainly due to higher demand, which resulted in an increase in physical sales of 7.1%, lower energy losses (9.1% versus 9.0% on 2006’s same period), which were partially offset by a decrease in purchases and sales margins. Codensa increased its client base by 69 thousand new customers during the period.
CODENSA
Operating Income
Table 38
Million US$ | Million Ch$ | |||||||||
1H 06 | 1H 07 | 1H 06 | 1H 07 | Chg % | ||||||
Operating Revenues | 436 | 495 | 229,516 | 260,768 | 13.6% | |||||
Operating Costs | (286) | (338) | (150,545) | (178,028) | (18.3%) | |||||
Operating Margin | 150 | 157 | 78,971 | 82,741 | 4.8% | |||||
Selling and Administrative Expenses | (15) | (16) | (8,003) | (8,356) | (4.4%) | |||||
Operating Income | 135 | 141 | 70,968 | 74,384 | 4.8% | |||||
* Please take note that these figures could differ from those accounted under Colombian GAAP. |
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Additional Information
Table 39
Codensa | 1H06 | 1H07 | Var 06-07 | Chg % | ||||
Customers (Th) | 2,107 | 2,176 | 69 | 3.3% | ||||
GWh Sold | 5,193 | 5,562 | 369 | 7.1% | ||||
Clients/Employee�� | 2,288 | 2,298 | 10 | 0.4% | ||||
Energy Losses % (12M) | 9.1% | 9.0% | - | (0.8%) | ||||
Codensa Financial Debt Maturity (with third party)
US$ 587 million
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PERU
GENERATION
Our subsidiary Edegel, had Operating Income of Ch$ 32,955 million, registering an increase of 8.9% compared to Ch$ 30,270 million as of June 2006. This increase is mainly the result of higher physical production and sales, which increased by 25.8% . 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 its own generation.
EDEGEL
Operating Income
Table 40
Million US$ | Million Ch$ | |||||||||
1H 06 | 1H 07 | 1H 06 | 1H 07 | Chg % | ||||||
Operating Revenues | 159 | 165 | 83,698 | 86,914 | 3.8% | |||||
Operating Costs | (91) | (92) | (47,696) | (48,414) | (1.5%) | |||||
Operating Margin | 68 | 73 | 36,002 | 38,500 | 6.9% | |||||
Selling and Administrative Expenses | (11) | (11) | (5,733) | (5,545) | 3.3% | |||||
Operating Income | 57 | 63 | 30,270 | 32,955 | 8.9% | |||||
* Please take note that these figures could differ from those accounted under Peruvian GAAP. |
Additional Information
Table 41
Edegel | 1H06 | 1H07 | Var 06-07 | Chg % | ||||
GWh Produced | 3,123 | 3,960 | 837 | 26.8% | ||||
GWh Sold | 3,145 | 3,957 | 811 | 25.8% | ||||
Market Share | 29.0% | 32.8% | - | 13.1% | ||||
Edegel Financial Debt Maturity (with third party)
US$ 468 million
DISTRIBUTION
Edelnor increased its operating income by Ch$ 3,832 million, reaching Ch$ 22,448 million. This increase is the result of higher demand and an improvement in physical margins, as a consequence of the decrease in the cost of energy purchased. The higher demand made it possible to increase Edelnor’s physical sales by 7.7%, reaching 2,582 GWh as of June, 2007. The number of clients grew by 35 thousand, reaching 971 thousand customers.
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EDELNOR
Operating Income
Table 42
Million US$ | Million Ch$ | |||||||||
1H 06 | 1H 07 | 1H 06 | 1H 07 | Chg % | ||||||
Operating Revenues | 208 | 209 | 109,824 | 110,062 | 0.2% | |||||
Operating Costs | (154) | (148) | (81,080) | (77,783) | 4.1% | |||||
Operating Margin | 55 | 61 | 28,744 | 32,279 | 12.3% | |||||
Selling and Administrative Expenses | (19) | (19) | (10,128) | (9,831) | 2.9% | |||||
Operating Income | 35 | 43 | 18,616 | 22,448 | 20.6% | |||||
* Please take note that these figures could differ from those accounted under Peruvian GAAP. |
Additional Information
Table 43
Edelnor | 1H06 | 1H07 | Var 06-07 | Chg % | ||||
Customers (Th) | 936 | 971 | 35 | 3.8% | ||||
GWh Sold | 2,398 | 2,582 | 184 | 7.8% | ||||
Clients/Employee | 1,721 | 1,792 | 72 | 4.2% | ||||
Energy Losses % (12M) | 8.4% | 8.2% | - | (2.0%) | ||||
Edelnor Financial Debt Maturity (with third party)
US$ 194million
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PARTIALLY CONSOLIDATED INCOME STATEMENT
(Parent Company First Half 2007 Earnings Report)
UNDERCHILEANGAAP,MILLIONCH$
Table 44
2Q 07 | 2Q 06 | Var % | (in million Ch$ of 1H07) | 1H 07 | 1H 06 | Var % | ||||||
834 | 860 | (2.9%) | Gross Operating Margin | 1,687 | 1,730 | (2.5%) | ||||||
(5,098) | (4,764) | (7.0%) | S&A Expenses | (9,198) | (8,643) | (6.4%) | ||||||
(4,263) | (3,905) | (9.2%) | Operating Income | (7,511) | (6,913) | (8.7%) | ||||||
6,972 | 55,744 | (87.5%) | Endesa | 37,262 | 76,725 | (51.4%) | ||||||
21,258 | 133,028�� | (84.0%) | Chilectra | 41,895 | 151,166 | (72.3%) | ||||||
(236) | 888 | (126.6%) | Edesur | 9,327 | 633 | 1372.3% | ||||||
1,948 | 225 | 764.6% | Edelnor | 4,478 | 608 | 636.8% | ||||||
(3,983) | 2,626 | (251.7%) | Ampla | (1,259) | 6,288 | (120.0%) | ||||||
- | - | N/A | Coelce | - | - | N/A | ||||||
(1,127) | 7,176 | (115.7%) | Codensa | 1,521 | 11,049 | (86.2%) | ||||||
2,334 | 230 | 915.7% | CAM LTDA | 2,655 | 1,565 | 69.6% | ||||||
2,160 | 1,729 | 24.9% | Inm Manso de Velasco | 2,750 | 1,769 | 55.4% | ||||||
(340) | (101) | (237.6%) | Synapsis | (122) | 1,046 | (111.7%) | ||||||
6,436 | 9,543 | (32.6%) | Endesa Brasil | 11,705 | 14,220 | (17.7%) | ||||||
- | - | N/A | CGTF | - | - | N/A | ||||||
- | (111,715) | N/A | Other | - | - | N/A | ||||||
35,422 | 99,372 | (64.4%) | Net Income from Related Companies | 110,212 | 265,069 | (58.4%) | ||||||
5,848 | 11,671 | (49.9%) | Interest Income | 16,371 | 23,153 | (29.3%) | ||||||
(12,477) | (15,786) | 21.0% | Interest Expense | (26,387) | (31,342) | 15.8% | ||||||
(6,629) | (4,115) | (61.1%) | Net Financial Income (Expenses) | (10,016) | (8,188) | (22.3%) | ||||||
2,133 | 1,967 | 8.5% | Other Non Operating Income | 3,929 | 3,580 | 9.7% | ||||||
233 | (221) | 205.7% | Other Non Operating Expenses | (67) | (1,745) | 96.2% | ||||||
2,366 | 1,746 | 35.5% | Net other Non Operating Income (Expenses) | 3,862 | 1,836 | 110.4% | ||||||
(409) | (835) | 51.0% | Price Level Restatement | (586) | (477) | (22.8%) | ||||||
(3,973) | 1,816 | (318.8%) | Foreign Exchange Effect | (2,588) | 7,122 | (136.3%) | ||||||
(4,382) | 981 | (546.8%) | Net Monetary Exposure | (3,174) | 6,644 | (147.8%) | ||||||
(13,854) | (13,853) | (0.0%) | Positive Goodwill Amortization | (27,691) | (27,703) | 0.0% | ||||||
12,924 | 84,131 | 84.6% | Non Operating Income | 73,194 | 237,658 | (69.2%) | ||||||
8,661 | 80,226 | 89.2% | Net Income before (1), (2) & (3) | 65,683 | 230,745 | (71.5%) | ||||||
(3,459) | (3,004) | 15.2% | Income Tax (1) | (5,485) | (6,210) | (11.7%) | ||||||
10 | 10 | (5.8%) | Negative Goodwill Amortization (2) | 20 | 21 | (3.0%) | ||||||
- | - | N/A | Minority Interest (3) | - | - | N/A | ||||||
5,211 | 77,233 | 93.3% | NET INCOME | 60,218 | 224,556 | (73.2%) | ||||||
0.16 | 2.37 | EPS (Ch$) | 1.84 | 6.88 | ||||||||
0.02 | 0.22 | EPADS (US$) | 0.18 | 0.65 | ||||||||
32,651,166 | 32,651,166 | Common Shares Outstanding (Th) | 32,651,166 | 32,651,166 | ||||||||
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UNDERCHILEANGAAP,THOUSANDUS$
Table 44.1
2Q 07 | 2Q 06 | Var % | (in thousand US$ of 1H06) | 1H 07 | 1H 06 | Var % | ||||||
1,584 | 1,632 | (2.9%) | Gross Operating Margin | 3,203 | 3,284 | (2.5%) | ||||||
(9,675) | (9,043) | (7.0%) | S&A Expenses | (17,459) | (16,405) | (6.4%) | ||||||
(8,092) | (7,411) | (9.2%) | Operating Income | (14,256) | (13,121) | (8.7%) | ||||||
13,233 | 105,803 | (87.5%) | Endesa | 70,725 | 145,627 | (51.4%) | ||||||
40,349 | 252,492 | (84.0%) | Chilectra | 79,519 | 286,919 | (72.3%) | ||||||
(448) | 1,686 | (126.6%) | Edesur | 17,703 | 1,202 | 1372.3% | ||||||
3,698 | 428 | 764.6% | Edelnor | 8,499 | 1,154 | 636.8% | ||||||
(7,560) | 4,984 | (251.7%) | Ampla | (2,390) | 11,935 | (120.0%) | ||||||
- | - | N/A | Coelce | - | - | N/A | ||||||
(2,139) | 13,619 | (115.7%) | Codensa | 2,888 | 20,971 | (86.2%) | ||||||
4,430 | 436 | 915.7% | CAM LTDA | 5,040 | 2,971 | 69.6% | ||||||
4,099 | 3,281 | 24.9% | Inm Manso de Velasco | 5,219 | 3,358 | 55.4% | ||||||
(645) | (191) | (237.6%) | Synapsis | (232) | 1,986 | (111.7%) | ||||||
12,215 | 18,113 | (32.6%) | Endesa Brasil | 22,217 | 26,989 | (17.7%) | ||||||
- | - | N/A | CGTF | - | - | N/A | ||||||
- | (212,039) | N/A | Others | - | - | N/A | ||||||
67,232 | 188,612 | (64.4%) | Net Income from Related Companies | 209,187 | 503,111 | (58.4%) | ||||||
11,099 | 22,153 | (49.9%) | Interest Income | 31,073 | 43,946 | (29.3%) | ||||||
(23,681) | (29,963) | 21.0% | Interest Expense | (50,084) | (59,488) | 15.8% | ||||||
(12,582) | (7,810) | (61.1%) | Net Financial Income (Expenses) | (19,010) | (15,542) | (22.3%) | ||||||
4,049 | 3,733 | 8.5% | Other Non Operating Income | 7,457 | 6,796 | 9.7% | ||||||
442 | (419) | 205.7% | Other Non Operating Expenses | (126) | (3,312) | 96.2% | ||||||
4,492 | 3,315 | 35.5% | Net other Non Operating Income (Expenses) | 7,331 | 3,484 | 110.4% | ||||||
(776) | (1,585) | 51.0% | Price Level Restatement | (1,112) | (906) | (22.8%) | ||||||
(7,542) | 3,446 | (318.8%) | Foreign Exchange Effect | (4,912) | 13,517 | (136.3%) | ||||||
(8,317) | 1,861 | (546.8%) | Net Monetary Exposure | (6,024) | 12,611 | (147.8%) | ||||||
(26,295) | (26,294) | (0.0%) | Positive Goodwill Amortization | (52,559) | (52,582) | 0.0% | ||||||
24,530 | 159,684 | 84.6% | Non Operating Income | 138,925 | 451,083 | (69.2%) | ||||||
16,438 | 152,273 | 89.2% | Net Income before (1), (2) & (3) | 124,669 | 437,962 | (71.5%) | ||||||
(6,566) | (5,702) | 15.2% | Income Tax (1) | (10,411) | (11,786) | (11.7%) | ||||||
19 | 20 | (5.8%) | Negative Goodwill Amortization (2) | 38 | 39 | (3.0%) | ||||||
- | - | N/A | Minority Interest (3) | - | - | N/A | ||||||
9,891 | 146,590 | 93.3% | NET INCOME | 114,296 | 426,215 | (73.2%) | ||||||
0.16 | 2.37 | EPS (Ch$) | 1.84 | 6.88 | ||||||||
0.02 | 0.22 | EPADS (US$) | 0.18 | 0.65 | ||||||||
32,651,166 | 32,651,166 | Common Shares Outstanding (Th) | 32,651,166 | 32,651,166 | ||||||||
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OWNERSHIP OF THE COMPANY AS OF JUNE 30,2007
TOTAL SHAREHOLDERS: 8,590
CONFERENCE CALL INVITATION
Enersis is pleased to inform you that it will hold a conference call to review its results for the period, on Monday, July 30th, 2007, at 11:00 AM EST (Eastern Standard Time) (11:00 AM Chilean time). To participate, please dial +1 (617) 213-4857 or +1 (888) 680-0890 (toll free USA), approximately 10 minutes prior to the scheduled start time, Passcode ID: 28486942.
The phone replay will be available between July 30th, 2007, and August 9 th, 2007, dialing 1+ (617) 801-6888 or +1 (888) 286-8010 (toll free USA) Passcode ID: 30700207.
For this Conference Call you can access before to the pre-registration site athttps://www.theconferencingservice.com/prereg/key.process?key=PX7TAAQUY and make your registration quicker. If not, please connect approximately 10 minutes prior to the scheduled start time.
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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 | ||||||
Carmen Poblete | Ignacio González | Denisse Labarca | Doris Saba | |||
Investor Relations | Investor Relations | Investor Relations | Investor Relations | |||
Representative | Representative | Representative | Representative | |||
cpt@e.enersis.cl | ijgr@e.enersis.cl | dla@e.enersis.cl | dsb@e.enersis.cl | |||
56 (2) 353 4447 | 56 (2) 353 4552 | 56 (2) 353 4492 | 56 (2) 353 4555 | |||
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.
Pg. 51
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
ENERSIS S.A. | |
By: /s/ Ignacio Antoñanzas | |
-------------------------------------------------- | |
Title: Chief Executive Officer |
Date: July 31, 2007