FORM 6-K
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of November, 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 NINE MONTHS ENDED SEPTEMBER 30, 2007
HIGHLIGHTS FOR THE PERIOD
[All figures in Chilean Pesos]
x Operating Revenues increased 13.5% to Ch$ 3,434,815 million, as a consequence of 25.3% higher operating revenues in the generation and transmission business, and 4.4% higher revenues in the distribution business.
x Operating margin grew 7.3% reaching Ch$ 1,071,720 million.
x EBITDA grew 3.6% reaching Ch$ 1,199,930 million.
x Operating Income improved 6.1% totaling Ch$ 876,439 million, explained by 5.6% higher income in generation and transmission and 5.4% higher income in distribution.
x Over the last 12 months, Enersis’ Chilean stock price increased 26.7%, reaching Ch$ 180.3 and ADS price improved by 34.4%, achieving US$ 17.7 as of September 30, 2007.
x Our market capitalization grew by 93% during the last three years, reaching Ch$ 5,887,005 million, equivalent to more than US$ 11.5 billion.
x Energy demand continued growing in the five countries where we operate:
• Chile | 5.3% | |
• Argentina | 6.1% | |
• Brazil | 4.5% | |
• Colombia | 4.3% | |
• Peru | 10.5% |
x In distribution, physical sales increased 6.4%, while our client base grew 4.0% . Additionally, energy losses, on an aggregated basis, averaged 11.3% .
x Restrictions of natural gas coming from Argentina hit the San Isidro and Taltal power plants significantly during the third quarter, reaching 87% lack of supply in September 2007. Consequently, these generation companies registered higher consumptions of liquid fuels in lieu of natural gas.
x In September 2007, the CNE again adjusted the node price of the SIC 12.6 %, reaching US$ 92.18 MWh.
x In the revision of October 2007, the CNE delivered the final report on the SIC node price, setting a new monomic price of US$ 104.05 MWh at the Alto Jahuel node, effective since November 2007, representing an increase of 12.9 % in dollar terms compared to the node price adjusted in September 2007.
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x On September 28th, 2007, Endesa Chile’s board endorsed the construction of a thermoelectric plant called Quintero, which will start its operations in the year 2009.
x On September 1st, 2007, Colombian generation companies Emgesa and Betania celebrated the merger.
x In the third quarter 2007, Standard & Poor’s increased the international rating risk classification for Enersis and Endesa Chile to BBB (stable), achieving the Investment Grade by the three international risk agencies.
x Local Rating agencies, Feller Rate and Fitch improved the domestic risk rating to AA- (stable), demonstrating strong operating and financial skills.
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TABLE OF
CONTENTS
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GENERAL INFORMATION
(Santiago, Chile, October 30, 2007) Enersis S.A. (NYSE: ENI), announced today its consolidated financial results for nine months ended September 30, 2007. All figures are in both US$ and Ch$, under Chilean Generally Accepted Accounting Principles (Chilean GAAP), as seen in the standardized form required by Chilean authorities (FECU). Variations refer to the period between September 30, 2006 and September 30, 2007. 2006 figures have been adjusted by the accounting convention for CPI variation between both periods, equal to 4.7% .
For the purpose of converting Chilean pesos (Ch$) into US dollars (US$), we have used the exchange rate prevailing as of September 30, 2007 for both periods under comparison, equal to US$1 = Ch$511.23 The Chilean peso appreciated by 4.8% against the US$ comparing September 30, 2007 and September 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 Brazil (Brazil) [*], Edesur (Argentina) and Codensa (Colombia).
In the following pages you will find a detailed analysis of financial statements, a brief explanation for most variations, and comments on the main items in the Income and Cash Flow Statements compared to the information as of September 2006.
[*] Consolidated since October 2005 and includes Endesa Fortaleza, CIEN, Cachoeira Dourada, Ampla and Coelce.
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SIMPLIFIEDORGANIZATIONALSTRUCTURE
![](https://capedge.com/proxy/6-K/0001292814-07-003100/fp6a.gif)
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MARKET INFORMATION
EQUITYMARKET
New York Stock Exchange (NYSE)
Over the last 12 months, the Enersis’ ADS price increased 34.4%, from US$ 13.2 to US$ 17.7, over the 19.0% increase of the Dow Jones Industrial Index. The growth of the ADS price was higher than the Adrian Index performance1, which rose by 32.4% .
The chart below shows the performance of Enersis’ ADS stock at the NYSE (“ENI”) against Dow Jones and the DJ Utilities benchmarks:
![](https://capedge.com/proxy/6-K/0001292814-07-003100/fp7a.gif)
Source: Bloomberg
_____________________________
1 ADRIAN Index is a Bolsa Electrónica de Chile’s composite global index for ADS’ listed in the United States Stocks .
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Bolsa de Comercio de Santiago (BCS)
Over the last 12 months, the Enersis’ Chilean stock price increased 26.7%, from Ch$ 142,3 to Ch$ 180.3. This variation is compared with the 42.5% increase of the IPSA Index.
![](https://capedge.com/proxy/6-K/0001292814-07-003100/fp8a.gif)
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 € 10.4 to € 12.5, or 20.1% . The chart below presents the performance of XENI stock listing in the Madrid Stock Exchange against Latibex.
![](https://capedge.com/proxy/6-K/0001292814-07-003100/fp9a.gif)
Source: Bloomberg
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MARKETPERCEPTION
The research released during the period on Enersis shows the following target prices for the Company’s ADS.
Table 1
Publication Date | Company | Main Analyst | Target Price | Recommendation | ||||
US$ | ||||||||
07-Feb-07 | Raymond James | Ricardo Cavanagh | 17,5 | Buy | ||||
02-May-07 | Deutsche Bank | Marcus Sequeira | 23,0 | Buy | ||||
02-May-07 | Bear Stearns | Rowe Michels | 19,0 | Peer Perform | ||||
12-Sep-07 | Santander | Raimundo Valdés | 22,0 | Buy | ||||
01-Oct-07 | Penta Inversiones | Jorge Palavecino | 22,5 | Neutral | ||||
11-Oct-07 | UBS | Brian Chase | 20,2 | Neutral 2 | ||||
12-Oct-07 | Banchile (*) | Sergio Zapata | 21,5 | Buy | ||||
23-Oct-07 | Merrill Lynch | Frank McGann | 22,0 | Buy | ||||
26-Oct-07 | Larrain Vial | Jorge Donoso | 24,4 | Overweight | ||||
ADR average target price (US$) | 21,3 | |||||||
(*) The analyst used an exchange rate of Ch$535 forecasted by Banchile for the end of year 2008. |
Source: Bloomberg and market researches
DEBTMARKET
The following chart shows the pricing of our Yankee Bonds during the last twelve months.
Enersis Yankee Bonds
Source: Bloomberg
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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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CONSOLIDATED INCOME STATEMENT
UNDERCHILEANGAAP, MILLIONCH$Table 2
CONS. INCOME STATEMENT - (million Ch$) | 9M 06 | 9M 07 | Var 06-07 | Chg % | ||||
Revenues from Generation & Transmission | 1,263,841 | 1,583,758 | 319,917 | 25.3% | ||||
Revenues from Distribution | 1,983,221 | 2,070,271 | 87,050 | 4.4% | ||||
Revenues from Engineering and Real Estate | 36,949 | 44,134 | 7,185 | 19.4% | ||||
Revenues from Other Businesses | 150,620 | 144,201 | (6,419) | (4.3%) | ||||
Consolidation Adjustments | (408,268) | (407,550) | 718 | 0.2% | ||||
Operating Revenues | 3,026,363 | 3,434,815 | 408,452 | 13.5% | ||||
Costs from Generation | (794,920) | (1,091,447) | (296,527) | (37.3%) | ||||
Costs from Distribution | (1,458,718) | (1,505,199) | (46,481) | (3.2%) | ||||
Costs from Engineering and Real Estate | (28,048) | (33,057) | (5,009) | (17.9%) | ||||
Costs from Other Businesses | (127,709) | (117,661) | 10,048 | 7.9% | ||||
Consolidation Adjustments | 382,264 | 384,270 | 2,006 | 0.5% | ||||
Operating Costs | (2,027,132) | (2,363,095) | (335,963) | (16.6%) | ||||
Operating Margin | 999,231 | 1,071,720 | 72,489 | 7.3% | ||||
SG&A from Generation | (35,442) | (34,343) | 1,099 | 3.1% | ||||
SG&A from Distribution | (133,571) | (153,076) | (19,505) | (14.6%) | ||||
SG&A from Engineering and Real Estate | (2,779) | (3,227) | (448) | (16.1%) | ||||
SG&A from Other Businesses | (29,797) | (30,990) | (1,193) | (4.0%) | ||||
Consolidation Adjustments | 28,158 | 26,355 | (1,803) | (6.4%) | ||||
Selling and Administrative Expenses | (173,431) | (195,281) | (21,850) | (12.6%) | ||||
Operating Income | 825,800 | 876,439 | 50,639 | 6.1% | ||||
Interest Income | 104,070 | 82,049 | (22,021) | (21.2%) | ||||
Interest Expense | (301,022) | (305,883) | (4,861) | (1.6%) | ||||
Net Interest (Expense) | (196,951) | (223,834) | (26,883) | (13.7%) | ||||
Equity Gains from Related Companies | 4,576 | 2,522 | (2,054) | (44.9%) | ||||
Equity Losses from Related Companies | (195) | (5,694) | (5,498) | N/A | ||||
Net Income from Related Companies | 4,381 | (3,171) | (7,552) | N/A | ||||
Other Non Operating Income | 107,338 | 150,934 | 43,596 | 40.6% | ||||
Other Non Operating Expenses | (147,613) | (283,033) | (135,420) | (91.7%) | ||||
Net other Non Operating Income (Expense) | (40,275) | (132,099) | (91,824) | N/A | ||||
Price Level Restatement | 393 | (11,638) | (12,031) | N/A | ||||
Foreign Exchange Effect | 6,805 | 11,263 | 4,458 | 65.5% | ||||
Net of Monetary Exposure | 7,198 | (375) | (7,573) | N/A | ||||
Positive Goodwill Amortization | (44,080) | (43,910) | 170 | 0.4% | ||||
Non Operating Income | (269,727) | (403,389) | (133,662) | (49.6%) | ||||
Net Inc b. Taxes, Min Int and Neg Goodwill Amort. | 556,073 | 473,050 | (83,023) | (14.9%) | ||||
Extraordinary Items | - | - | - | - | ||||
Income Tax | (90,943) | (179,054) | (88,111) | (96.9%) | ||||
Minority Interest | (215,429) | (178,369) | 37,060 | 17.2% | ||||
Negative Goodwill Amortization | 5,249 | 3,389 | (1,860) | (35.4%) | ||||
NET INCOME | 254,950 | 119,016 | (135,934) | (53.3%) | ||||
EBITDA | 1,158,626 | 1,199,930 | 41,304 | 3.6% | ||||
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UNDERCHILEANGAAP, THOUSANDUS$
Table 2.1
CONS. INCOME STATEMENT - (thousand US$) | 9M 06 | 9M 07 | Var 06-07 | Chg % | ||||
Revenues from Generation & Transmission | 2,472,157 | 3,097,937 | 625,780 | 25.3% | ||||
Revenues from Distribution | 3,879,313 | 4,049,589 | 170,276 | 4.4% | ||||
Revenues from Engineering and Real Estate | 72,275 | 86,328 | 14,053 | 19.4% | ||||
Revenues from Other Businesses | 294,623 | 282,067 | (12,556) | (4.3%) | ||||
Consolidation Adjustments | (798,600) | (797,194) | 1,406 | 0.2% | ||||
Operating Revenues | 5,919,768 | 6,718,727 | 798,959 | 13.5% | ||||
Costs from Generation | (1,554,916) | (2,134,944) | (580,028) | (37.3%) | ||||
Costs from Distribution | (2,853,351) | (2,944,270) | (90,919) | (3.2%) | ||||
Costs from Engineering and Real Estate | (54,865) | (64,662) | (9,797) | (17.9%) | ||||
Costs from Other Businesses | (249,808) | (230,154) | 19,654 | 7.9% | ||||
Consolidation Adjustments | 747,733 | 751,658 | 3,925 | 0.5% | ||||
Operating Costs | (3,965,205) | (4,622,372) | (657,167) | (16.6%) | ||||
Operating Margin | 1,954,563 | 2,096,355 | 141,792 | 7.3% | ||||
SG&A from Generation | (69,327) | (67,176) | 2,151 | 3.1% | ||||
SG&A from Distribution | (261,273) | (299,427) | (38,154) | (14.6%) | ||||
SG&A from Engineering and Real Estate | (5,436) | (6,313) | (877) | (16.1%) | ||||
SG&A from Other Businesses | (58,286) | (60,619) | (2,333) | (4.0%) | ||||
Consolidation Adjustments | 55,079 | 51,552 | (3,527) | (6.4%) | ||||
Selling and Administrative Expenses | (339,243) | (381,982) | (42,739) | (12.6%) | ||||
Operating Income | 1,615,320 | 1,714,373 | 99,053 | 6.1% | ||||
Interest Income | 203,569 | 160,494 | (43,075) | (21.2%) | ||||
Interest Expense | (588,819) | (598,327) | (9,508) | (1.6%) | ||||
Net Interest (Expense) | (385,250) | (437,833) | (52,583) | (13.7%) | ||||
Equity Gains from Related Companies | 8,952 | 4,933 | (4,019) | (44.9%) | ||||
Equity Losses from Related Companies | (382) | (11,137) | (10,755) | N/A | ||||
Net Income from Related Companies | 8,570 | (6,204) | (14,774) | N/A | ||||
Other Non Operating Income | 209,961 | 295,237 | 85,276 | 40.6% | ||||
Other Non Operating Expenses | (288,740) | (553,631) | (264,891) | (91.7%) | ||||
Net other Non Operating Income (Expense) | (78,779) | (258,394) | (179,615) | N/A | ||||
Price Level Restatement | 769 | (22,764) | (23,533) | N/A | ||||
Foreign Exchange Effect | 13,311 | 22,031 | 8,720 | 65.5% | ||||
Net of Monetary Exposure | 14,080 | (733) | (14,813) | N/A | ||||
Positive Goodwill Amortization | (86,223) | (85,891) | 332 | 0.4% | ||||
Non Operating Income | (527,603) | (789,055) | (261,452) | (49.6%) | ||||
Net Inc b. Taxes, Min Int and Neg Goodwill Amort. | 1,087,717 | 925,317 | (162,400) | (14.9%) | ||||
Extraordinary Items | - | - | - | - | ||||
Income Tax | (177,891) | (350,241) | (172,350) | (96.9%) | ||||
Minority Interest | (421,393) | (348,901) | 72,492 | 17.2% | ||||
Negative Goodwill Amortization | 10,267 | 6,630 | (3,637) | (35.4%) | ||||
NET INCOME | 498,701 | 232,805 | (265,896) | (53.3%) | ||||
EBITDA | 2,266,349 | 2,347,142 | 80,793 | 3.6% | ||||
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CONSOLIDATED INCOME STATEMENT ANALYSIS
(Source in Ch$ FECU)
NETINCOME
Reached Ch$119,016 million a decrease of 53.3% . It is important to highlight that financial statements for nine months of 2006 included the one time recognition of the positive effect of deferred taxes for Ch$ 137,467 million due to Chilectra and Elesur merger of March 2006. If we isolate this effect and compare in homogeneous terms, we would have registered an increase of 1.3% instead, due to a higher operating income by Ch$ 50,639 million compensated by a higher non operating income, which in turn is primarily driven by the effect of losses proceeding from the application of Technical Bulletin N° 64 (“BT 64”), related to foreign subsidiaries for Ch$ 124,416 million (Ch$ 40,123 million net of minority interest).
OPERATINGINCOME
Operating income amounted to Ch$ 876,439 million, increasing Ch$ 50,639 million, compared to Ch$ 825,800 million registered as of September 2006, growing 6.1% . If we take into account the effect of 4.8% appreciation of the Chilean peso against the US dollar (from Ch$ 537.03 to Ch$ 511.23 per US$), Operating Income would have risen by 9.6% instead.
Table 49M06 | 9M07 | |||||||||||||||
Million Ch$ | Operating Revenues | Operating Costs | SG & A | Operating Income | Operating Revenues | Operating Costs | SG& A | Operating Income | ||||||||
Endesa Chile | 1,042,438 | (620,394) | (29,648) | 392,396 | 1,253,200 | (844,508) | (28,357) | 380,335 | ||||||||
Cachoeira (*) | 49,899 | (24,464) | (1,411) | 24,024 | 62,692 | (22,863) | (1,812) | 38,017 | ||||||||
Fortaleza (**) | 84,702 | (55,713) | (810) | 28,179 | 76,602 | (39,711) | (1,119) | 35,772 | ||||||||
Cien (**) | 107,938 | (112,595) | (3,668) | (8,325) | 230,001 | (219,676) | (3,339) | 6,986 | ||||||||
Chilectra | 518,347 | (381,822) | (37,697) | 98,828 | 570,029 | (443,840) | (33,852) | 92,337 | ||||||||
Edesur | 192,749 | (168,766) | (26,801) | (2,818) | 219,431 | (173,702) | (30,194) | 15,535 | ||||||||
Distrilima (Edelnor) | 167,116 | (122,271) | (15,385) | 29,460 | 161,747 | (114,608) | (14,850) | 32,289 | ||||||||
Ampla | 422,777 | (328,234) | (13,752) | 80,791 | 401,239 | (280,127) | (23,836) | 97,276 | ||||||||
Investluz (Coelce) | 332,683 | (229,151) | (28,976) | 74,556 | 326,257 | (230,153) | (37,965) | 58,139 | ||||||||
Codensa | 349,552 | (228,475) | (10,912) | 110,165 | 391,567 | (262,769) | (12,267) | 116,531 | ||||||||
CAM Ltda. | 106,442 | (91,534) | (6,420) | 8,488 | 98,815 | (83,044) | (7,385) | 8,386 | ||||||||
Inmobiliaria Manso de Velasco Ltda. | 14,919 | (8,912) | (1,934) | 4,073 | 21,638 | (14,656) | (2,308) | 4,674 | ||||||||
Synapsis Soluciones y Servicios IT Ltda. | 40,479 | (34,278) | (7,501) | (1,300) | 41,707 | (31,362) | (8,741) | 1,604 | ||||||||
Enersis Holding and other investment vehicles | 3,699 | (1,896) | (15,920) | (14,117) | 3,680 | (3,256) | (14,804) | (14,380) | ||||||||
Consolidation Adjustments | (407,377) | 381,373 | 27,404 | 1,400 | (423,790) | 401,180 | 25,548 | 2,938 | ||||||||
Total Consolidation | 3,026,363 | (2,027,132) | (173,431) | 825,800 | 3,434,815 | (2,363,095) | (195,281) | 876,439 | ||||||||
Table 4.1
9M06 | 9M07 | |||||||||||||||
Thousand US$ | Operating Revenues | Operating Costs | SG & A | Operating Income | Operating Revenues | Operating Costs | SG& A | Operating Income | ||||||||
Endesa Chile | 2,039,078 | (1,213,533) | (57,994) | 767,551 | 2,451,342 | (1,651,915) | (55,468) | 743,959 | ||||||||
Cachoeira (*) | 97,607 | (47,853) | (2,760) | 46,993 | 122,629 | (44,721) | (3,544) | 74,364 | ||||||||
Fortaleza (**) | 165,683 | (108,977) | (1,585) | 55,121 | 149,839 | (77,677) | (2,188) | 69,974 | ||||||||
Cien (**) | 211,134 | (220,244) | (7,175) | (16,285) | 449,897 | (429,702) | (6,531) | 13,664 | ||||||||
Chilectra | 1,013,921 | (746,869) | (73,737) | 193,315 | 1,115,015 | (868,181) | (66,217) | 180,618 | ||||||||
Edesur | 377,029 | (330,117) | (52,424) | (5,512) | 429,222 | (339,773) | (59,061) | 30,389 | ||||||||
Distrilima (Edelnor) | 326,889 | (239,170) | (30,094) | 57,625 | 316,388 | (224,182) | (29,048) | 63,159 | ||||||||
Ampla | 826,981 | (642,047) | (26,900) | 158,033 | 784,851 | (547,947) | (46,625) | 190,280 | ||||||||
Investluz (Coelce) | 650,751 | (448,235) | (56,679) | 145,837 | 638,181 | (450,195) | (74,263) | 113,723 | ||||||||
Codensa | 683,748 | (446,911) | (21,345) | 215,491 | 765,931 | (513,993) | (23,996) | 227,942 | ||||||||
CAM Ltda. | 208,208 | (179,047) | (12,558) | 16,604 | 193,288 | (162,440) | (14,445) | 16,403 | ||||||||
Inmobiliaria Manso de Velasco Ltda. | 29,183 | (17,433) | (3,783) | 7,967 | 42,325 | (28,669) | (4,515) | 9,141 | ||||||||
Synapsis Soluciones y Servicios IT Ltda. | 79,180 | (67,050) | (14,672) | (2,542) | 81,581 | (61,346) | (17,098) | 3,137 | ||||||||
Enersis Holding and other investment vehicles | 7,235 | (3,709) | (31,140) | (27,614) | 7,198 | (6,369) | (28,957) | (28,127) | ||||||||
Consolidation Adjustments | (796,857) | 745,992 | 53,604 | 2,739 | (828,961) | 784,735 | 49,974 | 5,748 | ||||||||
Total Consolidation | 5,919,769 | (3,965,203) | (339,243) | 1,615,323 | 6,718,727 | (4,622,374) | (381,980) | 1,714,373 | ||||||||
(*) Consolidated by Endesa Chile until September 30th, 2005. Since October 1th is consolidated by Enersis through Endesa Brasil. | ||||||||||||||||
(**) Since October 1, 2005, these subsidiaries are consolidated by Enersis through Endesa Brasil. |
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NONOPERATINGINCOME
The company’s non-operating losses increased Ch$ 133,662, from a loss of Ch$ 269,727 million in 2006 to a loss of Ch$ 403,389 million in 2007. This is mainly explained by:
Net Interest Expensesincreased by Ch$ 26,883 million or 13.7%, from Ch$196,951 million to a net expense of Ch$ 223,834 million, due to higher average debt of our subsidiaries Codensa, Ampla, and Edelnor, and also to the reduction in interest income. Additionally, our subsidiary Edesur recorded an increase of Ch$ 6,728 million in interests proceeding from fines and penalties.
Income from investments in related companies decreased Ch$ 7,552 million, from a positive result of Ch$ 4,381 million to a loss of Ch$ 3,171 million. This is mainly explained by Ch$ 7,629 million lower profits in Gas Atacama Holding, which is the consequence of continued restrictions of natural gas imports from Argentina.
Amortization on positive goodwill remains with no significant variations, reaching Ch$ 43,910 million.
Net other non-operating expenseincreased Ch$ 91,824 million from a net loss of Ch$ 40,275 million to a net loss of Ch$ 132,099 this period. The main reasons for this variation were as follows:
- Net losses of Ch$ 124,416 million proceeding from conversion adjustments in accordance with BT 64 for our subsidiaries in Brazil, Colombia and Peru (Ch$ 40,123 million net of minority interest).
- Lower profit in the sale of fixed assets, for Ch$ 18,831 million. In 2006 Ampla Generation’s assets were sold.
- Higher Equity Tax in Colombia of Ch$ 16,714 million.
- Higher fines and penalties for Ch$ 10,792 million. (Brazilian and Argentinean distribution companies).
- Tariff adjustment from previous periods in Edesur for Ch$ 28,406 million.
- Lower provisions from contingencies and litigations in Brazilian subsidiaries for Ch$ 14,635 million.
- Lower tax expenses in Brazil of Ch$ 12,042 million.
- Lower expenses from energy efficiency programs in Brazilian subsidiaries for Ch$ 10,951 million.
- Profits from new contracts with Cemsa and CIEN for Ch$ 8,380 million.
Price-level restatementshows a negative variation of Ch$ 12,031 million, mainly due to higher inflation of 5.1% in the first nine months 2007, in comparison with 2.5% registered during the first nine months 2006, over monetary and non-monetary assets and liabilities, principally debt denominated in U.F., as well as accounting effects on the income statement.
The Foreign Exchange Effectincreased Ch$ 4,458 million, due to the dollar mismatch position as of September 2007.
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Income tax and Deferred taxregistered a loss of Ch$ 179,054 million, compared to the loss of Ch$90,943 million in September 2006; a negative variation of Ch$ 88,111 million.
The decrease of Ch$57,420 million inincome tax is mainly explained by lower provisions in Emgesa, Endesa, Codensa, Ampla, Enersis, Fortaleza and Coelce of Ch$ 20,178 million, Ch$ 16,545 million, Ch$ 13,345 million, Ch$ 10,382 million, Ch$ 9,968 million, Ch$ 5,458 million and Ch$ 5,156 million respectively. This was partially compensated an increase of Ch$ 9,305 million in Edesur, of Ch$ 7,162 million in Cien and of Ch$ 6,968 million in Pehuenche.
Deferred taxes, which do not constitute cash flow, registered a negative variation of Ch$ 145,531 million, due to the one time effect recognized in this company for Ch$ 137,467 million, as consequence of the merge between Elesur and Chilectra. This merge 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, for Ch$ 16,992 million, Endesa Fortaleza for Ch$ 8,833 million and Edesur for Ch$ 6,232 million, partially offset by Coelce for Ch$ 9,692 million, Endesa Chile for Ch$ 7,924 million, Chocón for Ch$ 6,316 million and Edegel for Ch$ 6,089 million.
Amortization on negative goodwill decreased Ch$ 1,860 million, reaching an amount of Ch$ 3,389 million, explained by the final amortization related to the purchase of the first stake in Betania, which effect is a lower amortization of Ch$ 1,684 million.
EVOLUTIONOFKEYFINANCIALRATIOSTable 5
Indicator | Unit | 9M06 | 9M07 | Var 06-07 | Chg % | |||||
Liquidity | Times | 1.14 | 1.24 | 0.10 | 8.8% | |||||
Acid ratio test * | Times | 1.06 | 1.14 | 0.08 | 7.5% | |||||
Working capital | million Ch$ | 224,815 | 380,185 | 155,370 | 69.1% | |||||
Working capital | th. US$ | 439,753 | 743,668 | 303,915 | 69.1% | |||||
Leverage ** | Times | 0.91 | 0.99 | 0.08 | 8.8% | |||||
Short-term debt | % | 0.29 | 0.29 | - | 0.0% | |||||
Long-term debt | % | 0.71 | 0.71 | - | 0.0% | |||||
Interest Coverage*** | Times | 4.23 | 4.18 | (0.05) | (1.2%) | |||||
EBITDA**** | th. US$ | 2,266,349 | 2,347,142 | 80,793 | 3.6% | |||||
ROE | % | 11.28% | 5.60% | (5.68%) | (50.4%) | |||||
ROA | % | 2.89% | 1.41% | (1.48%) | (51.2%) | |||||
* Current assets net of inventories and pre-paid expenses
** Using the ratio = Total debt / (equity + minority interest)
***EBITDAEI/Interest expenses = (Earnings before taxes+Fin exp+Net non operating income+depreciation+Positive Goodwill) /Interest expenses
****EBITDA: Operating Income+Depreciation+Amortization
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Liquidity ratioincreased 8.8% to 1.24 times. The company continues showing strong liquidity, reducing its obligations with banks using cash surplus and structuring an adequate debt maturity calendar.
Leverage reached 0.99 times as of September 2007, slowly higher compared to the same period 2006.
Interest Coverage decreased to 4.18 times. Despite operating results increased in all our subsidiaries throughout Latin America, financial expenses increase offset this positive result.
ROE dropped to 5.6% from 11.28%, both measured in annual terms, mainly explained by the lower result explained by the non-recurrent effect related to the merger between Chilectra and Elesur in March 2006.
ROA decreased from 2.89% as of September 2006, to 1.41% as of September 2007. This negative variation, as in the case of ROE, is mainly related to the one time positive effect from the first quarter of 2006, derived from the merger Elesur and Chilectra.
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CONSOLIDATED BALANCE SHEET
ASSETSUNDERCHILEANGAAP,MILLIONCH$Table 6
ASSETS - (million Ch$) | 9M 06 | 9M 07 | Var 06-07 | Chg % | ||||
CURRENT ASSETS | ||||||||
Cash | 55,533 | 91,059 | 35,525 | 64.0% | ||||
Time deposits | 504,224 | 292,489 | (211,735) | (42.0%) | ||||
Marketable securities | 8,613 | 11,752 | 3,139 | 36.4% | ||||
Accounts receivable, net | 840,266 | 922,039 | 81,773 | 9.7% | ||||
Notes receivable, net | 5,420 | 11,520 | 6,100 | 112.6% | ||||
Other accounts receivable, net | 107,256 | 95,716 | (11,540) | (10.8%) | ||||
Amounts due from related companies | 13,038 | 139,908 | 126,870 | 973.1% | ||||
Inventories | 74,825 | 105,558 | 30,733 | 41.1% | ||||
Income taxes recoverable | 73,433 | 144,241 | 70,808 | 96.4% | ||||
Prepaid expenses | 59,545 | 44,314 | (15,231) | (25.6%) | ||||
Deferred income taxes | 59,657 | 57,939 | (1,718) | (2.9%) | ||||
Other current assets | 44,200 | 63,180 | 18,980 | 42.9% | ||||
Total currrent assets | 1,846,009 | 1,979,715 | 133,706 | 7.2% | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||
Land | 141,754 | 135,099 | (6,655) | (4.7%) | ||||
Buildings and infraestructure and works in progress | 11,454,510 | 11,035,694 | (418,816) | (3.7%) | ||||
Machinery and equipment | 2,048,893 | 1,998,098 | (50,795) | (2.5%) | ||||
Other plant and equipment | 627,537 | 649,925 | 22,388 | 3.6% | ||||
Technical appraisal | 196,379 | 181,084 | (15,295) | (7.8%) | ||||
Sub - Total | 14,469,073 | 13,999,900 | (469,173) | (3.2%) | ||||
Accumulated depreciation | (5,955,575) | (6,001,609) | (46,034) | (0.8%) | ||||
Total property, plant and equipment | 8,513,498 | 7,998,292 | (515,206) | (6.1%) | ||||
OTHER ASSETS | ||||||||
Investments in related companies | 110,098 | 108,073 | (2,025) | (1.8%) | ||||
Investments in other companies | 25,410 | 23,451 | (1,959) | (7.7%) | ||||
Positive goodwill, net | 703,321 | 642,919 | (60,402) | (8.6%) | ||||
Negative goodwill, net | (33,592) | (40,075) | (6,483) | (19.3%) | ||||
Long-term receivables | 153,475 | 206,064 | 52,588 | 34.3% | ||||
Amounts due from related companies | 98,550 | 498 | (98,052) | (99.5%) | ||||
Intangibles | 91,065 | 92,587 | 1,522 | 1.7% | ||||
Accumulated amortization | (57,283) | (58,582) | (1,299) | (2.3%) | ||||
Others assets | 282,297 | 269,110 | (13,187) | (4.7%) | ||||
Total other assets | 1,373,342 | 1,244,046 | (129,296) | (9.4%) | ||||
TOTAL ASSETS | 11,732,849 | 11,222,053 | (510,796) | (4.4%) | ||||
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ASSETSUNDERCHILEANGAAP,THOUSANDUS$
Table 6.1ASSETS - (thousand US$) | 9M 06 | 9M 07 | Var 06-07 | Chg % | |||
CURRENT ASSETS | |||||||
Cash | 108,627 | 178,117 | 69,490 | 64.0% | |||
Time deposits | 986,295 | 572,128 | (414,167) | (42.0%) | |||
Marketable securities | 16,848 | 22,988 | 6,140 | 36.4% | |||
Accounts receivable, net | 1,643,617 | 1,803,570 | 159,953 | 9.7% | |||
Notes receivable, net | 10,601 | 22,533 | 11,932 | 112.6% | |||
Other accounts receivable, net | 209,800 | 187,227 | (22,573) | (10.8%) | |||
Amounts due from related companies | 25,503 | 273,670 | 248,167 | 973.1% | |||
Inventories | 146,362 | 206,479 | 60,117 | 41.1% | |||
Income taxes recoverable | 143,640 | 282,144 | 138,504 | 96.4% | |||
Prepaid expenses | 116,474 | 86,681 | (29,793) | (25.6%) | |||
Deferred income taxes | 116,693 | 113,333 | (3,360) | (2.9%) | |||
Other current assets | 86,458 | 123,584 | 37,126 | 42.9% | |||
Total currrent assets | 3,610,917 | 3,872,454 | 261,537 | 7.2% | |||
PROPERTY, PLANT AND EQUIPMENT | |||||||
Land | 277,281 | 264,262 | (13,019) | (4.7%) | |||
Buildings and infraestructure and works in progres | 22,405,787 | 21,586,554 | (819,233) | (3.7%) | |||
Machinery and equipment | 4,007,772 | 3,908,413 | (99,359) | (2.5%) | |||
Other plant and equipment | 1,227,504 | 1,271,297 | 43,793 | 3.6% | |||
Technical appraisal | 384,131 | 354,213 | (29,918) | (7.8%) | |||
Sub - Total | 28,302,473 | 27,384,739 | (917,734) | (3.2%) | |||
Accumulated depreciation | (11,649,503) | (11,739,547) | (90,044) | (0.8%) | |||
Total property, plant and equipment | 16,652,970 | 15,645,193 | (1,007,777) | (6.1%) | |||
OTHER ASSETS | |||||||
Investments in related companies | 215,359 | 211,397 | (3,962) | (1.8%) | |||
Investments in other companies | 49,704 | 45,873 | (3,831) | (7.7%) | |||
Positive goodwill, net | 1,375,743 | 1,257,593 | (118,150) | (8.6%) | |||
Negative goodwill, net | (65,708) | (78,389) | (12,681) | (19.3%) | |||
Long-term receivables | 300,207 | 403,075 | 102,868 | 34.3% | |||
Amounts due from related companies | 192,770 | 974 | (191,796) | (99.5%) | |||
Intangibles | 178,129 | 181,107 | 2,978 | 1.7% | |||
Accumulated amortization | (112,049) | (114,590) | (2,541) | (2.3%) | |||
Others assets | 552,192 | 526,397 | (25,795) | (4.7%) | |||
Total other assets | 2,686,347 | 2,433,437 | (252,910) | (9.4%) | |||
TOTAL ASSETS | 22,950,234 | 21,951,084 | (999,150) | (4.4%) | |||
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LIABILITIES ANDSHAREHOLDERSEQUITYUNDERCHILEANGAAP,MILLIONCH$
Table 7
LIABILITIES AND SHAREHOLDER´S EQUITY - (million Ch$) | 9M 06 | 9M 07 | Var 06-07 | Chg % |
CURRENT LIABILITIES | ||||
Short-term debt due to banks and financial institutions | 197,418 | 133,996 | (63,421) | (32.1%) |
Current portion of long-term debt due to banks and financial institutions | 134,729 | 136,913 | 2,184 | 1.6% |
Promissory notes | - | - | - | - |
Current portion of bonds payable | 309,898 | 349,688 | 39,790 | 12.8% |
Current portion of long-term notes payable | 39,549 | 29,290 | (10,260) | (25.9%) |
Dividends payable | 85,211 | 41,698 | (43,513) | (51.1%) |
Accounts payable | 334,034 | 449,814 | 115,780 | 34.7% |
Short-term notes payable | 18,464 | 14,126 | (4,339) | (23.5%) |
Miscellaneous payables | 100,765 | 92,293 | (8,472) | (8.4%) |
Accounts payable to related companies | 44,906 | 23,912 | (20,994) | (46.8%) |
Accrued expenses | 78,810 | 80,615 | 1,805 | 2.3% |
Withholdings | 94,929 | 87,052 | (7,877) | (8.3%) |
Income taxes payable | 73,979 | 11,540 | (62,439) | (84.4%) |
Anticipated income | 3,326 | 9,392 | 6,066 | 182.4% |
Deferred income taxes | - | - | - | - |
Reinbursable financial contribution | 1,164 | 1,235 | 72 | 6.1% |
Other current liabilities | 104,012 | 137,967 | 33,955 | 32.6% |
Total current liabilities | 1,621,194 | 1,599,530 | (21,664) | (1.3%) |
LONG-TERM LIABILITIES | ||||
Due to banks and financial institutions | 794,877 | 964,715 | 169,838 | 21.4% |
Bonds payable | 2,289,965 | 2,146,712 | (143,254) | (6.3%) |
Long -term notes payable | 113,129 | 117,131 | 4,002 | 3.5% |
Accounts payables | 161,181 | 141,059 | (20,122) | (12.5%) |
Amounts payable to related companies | 13,205 | 9,600 | (3,605) | (27.3%) |
Accrued expenses | 414,286 | 360,420 | (53,866) | (13.0%) |
Deferred income taxes | 8,893 | 6,356 | (2,537) | (28.5%) |
Reinbursable financial contribution | 3,357 | 3,831 | 474 | 14.1% |
Other long-term liabilities | 169,836 | 229,446 | 59,610 | 35.1% |
Total long-term liabilities | 3,968,729 | 3,979,271 | 10,542 | 0.3% |
Minority interest | 3,128,282 | 2,812,406 | (315,876) | (10.1%) |
SHAREHOLDERS´ EQUITY | ||||
Paid-in capital, no par value | 2,476,790 | 2,415,284 | (61,506) | (2.5%) |
Additional paid-in capital | 61,920 | 123,180 | 61,260 | 98.9% |
Additional paid-in capital (share premium) | 180,920 | 180,903 | (18) | (0.0%) |
Other reserves | (245,004) | (388,213) | (143,209) | 58.5% |
Total capital and reserves | 2,474,626 | 2,331,153 | (143,473) | (5.8%) |
Retained earnings | 285,067 | 380,676 | 95,609 | 33.5% |
Net income for the period | 254,950 | 119,016 | (135,934) | (53.3%) |
Deficits of subsidaries in development stage | - | - | - | - |
Total retained earnings | 540,018 | 499,692 | (40,325) | (7.5%) |
Total shareholder´s equity | 3,014,644 | 2,830,846 | (183,798) | (6.1%) |
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY | 11,732,849 | 11,222,053 | (510,796) | (4.4%) |
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LIABILITIES ANDSHAREHOLDERSEQUITYUNDERCHILEANGAAP,THOUSANDUS$
Table 7.1
LIABILITIES - (thousand US$) | 9M 06 | 9M 07 | Var 06-07 | Chg % |
CURRENT LIABILITIES | ||||
Short-term debt due to banks and financial institutions | 386,162 | 262,106 | (124,056) | (32.1%) |
Current portion of long-term debt due to banks and financial in | 263,538 | 267,811 | 4,273 | 1.6% |
Current portion of bonds payable | 606,182 | 684,013 | 77,831 | 12.8% |
Current portion of long-term notes payable | 77,361 | 57,292 | (20,069) | (25.9%) |
Dividends payable | 166,678 | 81,565 | (85,113) | (51.1%) |
Accounts payable | 653,393 | 879,865 | 226,472 | 34.7% |
Short-term notes payable | 36,118 | 27,631 | (8,487) | (23.5%) |
Miscellaneous payables | 197,103 | 180,530 | (16,573) | (8.4%) |
Accounts payable to related companies | 87,839 | 46,774 | (41,065) | (46.8%) |
Accrued expenses | 154,158 | 157,689 | 3,531 | 2.3% |
Withholdings | 185,687 | 170,280 | (15,407) | (8.3%) |
Income taxes payable | 144,709 | 22,573 | (122,136) | (84.4%) |
Anticipated income | 6,505 | 18,371 | 11,866 | 182.4% |
Reinbursable financial contribution | 2,276 | 2,416 | 140 | 6.1% |
Other current liabilities | 203,454 | 269,872 | 66,418 | 32.6% |
Total current liabilities | 3,171,164 | 3,128,788 | (42,376) | (1.3%) |
LONG-TERM LIABILITIES | ||||
Due to banks and financial institutions | 1,554,833 | 1,887,048 | 332,215 | 21.4% |
Bonds payable | 4,479,325 | 4,199,112 | (280,213) | (6.3%) |
Long -term notes payable | 221,288 | 229,117 | 7,829 | 3.5% |
Accounts payables | 315,280 | 275,921 | (39,359) | (12.5%) |
Amounts payable to related companies | 25,830 | 18,779 | (7,051) | (27.3%) |
Accrued expenses | 810,370 | 705,005 | (105,365) | (13.0%) |
Deferred income taxes | 17,395 | 12,434 | (4,961) | (28.5%) |
Reinbursable financial contribution | 6,567 | 7,494 | 927 | 14.1% |
Other long-term liabilities | 332,210 | 448,811 | 116,601 | 35.1% |
Total long-term liabilities | 7,763,099 | 7,783,720 | 20,621 | 0.3% |
Minority interest | 6,119,128 | 5,501,255 | (617,873) | (10.1%) |
SHAREHOLDERS´ EQUITY | ||||
Paid-in capital, no par value | 4,844,767 | 4,724,458 | (120,309) | (2.5%) |
Additional paid-in capital | 121,119 | 240,947 | 119,828 | 98.9% |
Additional paid-in capital (share premium) | 353,892 | 353,857 | (35) | (0.0%) |
Other reserves | (479,244) | (759,371) | (280,127) | 58.5% |
Total capital and reserves | 4,840,534 | 4,559,891 | (280,643) | (5.8%) |
Retained earnings | 557,610 | 744,628 | 187,018 | 33.5% |
Net income for the period | 498,700 | 232,803 | (265,897) | (53.3%) |
Deficits of subsidaries in development stage | - | - | - | - |
Total retained earnings | 1,056,310 | 977,432 | (78,878) | (7.5%) |
Total shareholder´s equity | 5,896,845 | 5,537,323 | (359,522) | (6.1%) |
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY | 22,950,236 | 21,951,086 | (999,149) | (4.4%) |
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CONSOLIDATED BALANCE SHEET ANALYSIS
The Company’sTotal Assets decreased Ch$ 510,796 million. This was due to:
• A decline of Ch$ 515,206 million, or 6.1% inFixed Assetsis explained by one year fixed asset depreciation by nearly Ch$ 420,000, lower fixed assets of Ch$ 21,261 million, and real exchange rate effect upon subsidiaries located in countries with unstable currencies, pursuant to Technical Bulletin N° 64, by Ch$ 620,000 million. This is partially offset by the addition of fixed assets by nearly Ch$ 548,000 million.
•Other assets decreased of Ch$ 129,296 million, explained mainly as follows:
• Decrease in accounts receivable from related companies for Ch$ 98,052 million, due to the above mentioned trespass at Atacama Finance’s level.
• Decrease of positive goodwill of Ch$60,402 million, basically due to the amortization of the one year effect.
• Increase in other long term assets for Ch$ 13,187, basically explained by the decrease resulting from the sale of a 3.81% stake in Empresa Eléctrica de Bogotá for Ch$ 42,550 million and the amortization in deferred expenses by Ch$ 20,279 million, partially compensated by the higher fair value in derivatives instruments by Ch$ 50,642 million and warrant deposits by Ch$ 3,265 million.
• Increase in negative goodwill of Ch$ 6,483 million, due to the purchase of incremental equity stakes in Chocón, Costanera and Betania.
• A rise in long term receivables of Ch$ 52,589 million. Codensa for Ch$ 58,484 million (for the program “Codensa Hogar”), Chocón and Endesa Costanera for Ch$ 20,605 million due to wholesale electric investment market fund in Argentina (FONINVEMEM) and Edesur for Ch$ 18,869 million regarding the tariff adjustment. The above mentioned was partially compensated by reduction in Cien of Ch$ 24,982 million, Copel and in Ampla of Ch$ 11,207 million of regulatory assets.
•Current Assets increased by Ch$ 133,706 million, a 7.2% mainly due to:
• An increase of Ch$126,870 million in amounts due to related companies, mainly due to the trespass into short term of the account collectable from Atacama Finance Co by Ch$ 90,222 million, and also due to the increase in accounts receivable from GNL Quintero by Ch$ 23,649 million, SEC System by Ch$ 6,732 million and GNL Chile by Ch$ 4,950 million.
• An increase in accounts receivable of Ch$ 81,773 million, principally due to a rise in billing from subsidiaries Ampla of Ch$ 28,873 million, Codensa of Ch$ 19,426 million, Endesa Chile of Ch$ 15,914 million, Endesa Costanera of Ch$ 14,174 million, Emgesa of Ch$ 10,265 million Cachoeira Dourada of Ch$ 8,161 million and Edesur of Ch$ 7,936 million, partially offset by decreases in Chilectra of Ch$ 11,911 million and Coelce of Ch$ 6,407 million.
• An increase in tax receivable of Ch$ 70,808 million due to increases in Endesa Chile of Ch$ 29,097 million, Emgesa of Ch$ 13,553 million, Ampla of Ch$ 13,034 million, Enersis of Ch$ 9,116 million and Cien of Ch$ 7,876 million.
• An increase in inventories by Ch$ 30,733 million, mainly at Endesa Chile by Ch$ 24,151 due to an increase in coal and fuel oil, and at CAM by Ch$ 4,571 million.
• Increase in cash and cash equivalent by Ch$ 35,525 million, mainly in Emgesa by Ch$ 31,677 million and Codensa by Ch$ 2,726 million.
• Decrease in time deposits from Ch$ 211,735 million, due to redemptions in Ampla Energía for Ch$ 102,770 million, Codensa for Ch$ 84,942 million in order to pay capital reductions, Coelce for Ch$ 20,006 million, Endesa Brasil for Ch$ 16,228 million in order to pay dividends, Edelnor for Ch$ 12,343 million, Endesa Costanera for Ch$ 7,888 million and Cono Sur for Ch$ 5,457 million for dividend payments. This is compensated by an increase in Emgesa for Ch$ 45,859 million, Ampla for Ch$ 11,466 million and Cachoeira Dourada for Ch$ 8,189 million.
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Total Liabilities decreased Ch$510,796 million, due to:
•Short-term liabilities decreased Ch$21,664 million or 1.3% as a result of:
• Decrease of Ch$63,421 million in bank liabilities corresponding to reductions in Emgesa Ch$59,951 million, Ampla Ch$ 52,358 million, Edegel Ch$ 22,589, partially offset by increases in Codensa Ch$34,928 million and Coelce by Ch$ 27,109 million.
• Decrease in income taxes of Ch$ 62,439 million, primarily associated with Endesa Chile Ch$ 21,742 million, Codensa Ch$ 18,490 million, Emgesa Ch$ 15,394 million, CGTF for Ch$ 9,066 million and Cien Ch$ 4,500 million.
• Decrease in payable dividend in Ch$43.512 million, of which Ch$ 26,171 million corresponds to third parties and Ch$17.342 million Endesa Internacional.
• Decrease in accounts payable to related companies of Ch$ 20,994 million, due to repayments of debt from Enersis to Endesa Internacional Ch$ 15,149 million, and also due to lower debt of Ch$ 4,249 million with Cemsa.
• Increase in accounts payable Ch$ 115,780 million, due to higher debt with suppliers in San Isidro by Ch$ 27,408 million, Endesa Chile Ch$ 21,416 million, Codensa Ch$ 15,259 million, Edegel Ch$ 14,655 million, Costanera Ch$ 9,190 million and Chilectra Ch$ 7,823 million.
• Increase in miscellaneous payable accounts of Ch$34,026 million as result of rise in Edesur Ch$26,513 million, electric emergency provisions Ch$16,388 million in Argentina and Brazil and energetic efficient program in our Brazilian subsidiaries Ch$ 4,045 million. This is partially compensated by reductions in derivative contracts Ch$ 7,051 million and in liabilities received Ch$ 8,392 million.
•Long term liabilitiesincreased by Ch$10.452 million or 0.3% due to:
• Increase of Ch$169.838 million in bank obligations corresponding to the increase at Enersis by Ch$162.062 million, Cien Ch$57.157 million and Ampla Ch$33.833 million. The above mentioned effect is partially compensated with decreases in Edesur Ch$53.130 million and Endesa Fortaleza by Ch$10.494 million.
• Increase in miscellaneous payable accounts Ch$60.083 million, due to a rise in Enersis of Ch$79.277 million for the fair market value of derivatives and a decrease at Edesur of Ch$13.615 million.
• Decrease in other long term obligations Ch$ 143,253 million, mainly due to the transfer to short term liabilities Endesa Chile Ch$ 224,908 million, Ampla Ch$ 74,997 million, Coelce Ch$ 14,309 million and Edelnor Ch$ 5,190 million. This was partially offset by new bond issuances in Codensa Ch$ 134,252 million, Emgesa Ch$60.537 million, Edegel Ch$ 41,351 million, Edesur Ch$ 26,757 million and Edelnor Ch$ 27,334 million.
• Decrease in provisions of Ch$ 53,866 million, due to lower provisions for labor and third-party contingencies in CGTF, Ampla, Coelce and Cien for Ch$ 47,344 million.
• Decrease in creditors by Ch$ 20,121 million, due to lower leasing obligations in Edegel Ch$ 24,668 million.
Pg. 24
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Minority interestreached Ch$ 2,812,406 million, showing a decrease of Ch$ 315,876 million, or 10.1%, 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 and the exchange rate effect (for further details, please see note N°21a of FECU).
Shareholders’ Equity decreased Ch$ 183,798 million compared with September 30, 2006. This variation was mainly explained by the decrease of Ch$ 135,934 million in earnings, and reserves Ch$ 143,209 million originated in over foreign investments coverage, partially offset by the increase in accumulated earnings of Ch$ 95,609 million.
Pg. 25
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DEBTMATURITY WITHTHIRDPARTIES,MILLIONCH$
Table 8
TOTAL | |||||||
Million Ch$ | 2007 | 2008 | 2009 | 2010 | 2011 | Balance | |
Chile | 4,514 | 222,052 | 503,570 | 52,847 | 75,965 | 1,083,856 | 1,942,804 |
Enersis | 859 | 1,792 | 180,725 | 1,794 | 1,898 | 454,208 | 641,276 |
Chilectra | - | - | - | - | - | - | - |
Other (*) | 447 | 5,080 | 325 | 190 | - | - | 6,042 |
Endesa Chile (**) | 3,208 | 215,180 | 322,520 | 50,863 | 74,067 | 629,648 | 1,295,486 |
Argentina | 16,560 | 33,713 | 48,982 | 44,423 | 46,966 | 19,165 | 209,811 |
Edesur | 3,243 | 2,764 | 10,880 | 13,770 | 8,419 | 10,703 | 49,780 |
Costanera | 13,317 | 24,985 | 26,173 | 18,724 | 17,246 | 8,462 | 108,908 |
Chocon | - | 5,964 | 11,929 | 11,929 | 21,301 | - | 51,123 |
Hidroinvest | - | - | - | - | - | - | - |
CTM | - | - | - | - | - | - | - |
Tesa | - | - | - | - | - | - | - |
Perú | 23,768 | 103,026 | 52,005 | 25,718 | 30,380 | 124,176 | 359,074 |
Edelnor | 10,764 | 27,205 | 12,296 | 4,968 | 7,434 | 59,507 | 122,176 |
Edegel | 13,004 | 75,820 | 39,709 | 20,750 | 22,946 | 64,670 | 236,898 |
Brazil | 14,860 | 164,776 | 103,594 | 188,930 | 145,290 | 193,360 | 810,810 |
Endesa Brasil | - | - | - | - | - | - | - |
Coelce | 5,100 | 57,908 | 21,553 | 22,927 | 22,927 | 42,584 | 173,000 |
Ampla | 5,455 | 99,212 | 74,665 | 102,666 | 58,639 | 56,457 | 397,095 |
Cachoeira | 904 | 618 | - | - | - | - | 1,522 |
Cien | 1,203 | 2,406 | 2,406 | 58,008 | 58,008 | 56,853 | 178,882 |
Fortaleza | 2,198 | 4,633 | 4,969 | 5,329 | 5,716 | 37,466 | 60,311 |
Colombia | 47,791 | 5,256 | 92,766 | 35,325 | 151,611 | 345,296 | 678,046 |
Codensa | 38,294 | 5,256 | 12,634 | 35,325 | 50,537 | 162,098 | 304,144 |
Emgesa | 9,497 | - | 80,132 | - | 101,074 | 183,199 | 373,902 |
Betania | - | - | - | - | - | - | - |
TOTAL | 107,493 | 528,823 | 800,918 | 347,245 | 450,212 | 1,765,854 | 4,000,545 |
(*) Includes: CAM | |||||||
(**) Includes: Endesa Chile Internacional, Pangue, Pehuenche, San Isidro, Celta and Tunel El Melon. |
DEBTMATURITY WITHTHIRDPARTIES,THOUSANDUS$
Table 8.1
TOTAL | |||||||
Thousand US$ | 2007 | 2008 | 2009 | 2010 | 2011 | Balance | |
Chile | 8,830 | 434,348 | 985,017 | 103,372 | 148,592 | 2,120,095 | 3,800,255 |
Enersis | 1,681 | 3,505 | 353,510 | 3,510 | 3,712 | 888,461 | 1,254,378 |
Chilectra | - | - | - | - | - | - | - |
Other (*) | 874 | 9,938 | 636 | 371 | - | - | 11,818 |
Endesa Chile (**) | 6,275 | 420,905 | 630,872 | 99,491 | 144,880 | 1,231,634 | 2,534,058 |
Argentina | 32,393 | 65,946 | 95,813 | 86,895 | 91,869 | 37,488 | 410,404 |
Edesur | 6,344 | 5,407 | 21,282 | 26,936 | 16,468 | 20,936 | 97,373 |
Costanera | 26,049 | 48,872 | 51,197 | 36,626 | 33,735 | 16,552 | 213,031 |
Chocon | - | 11,667 | 23,333 | 23,333 | 41,667 | - | 100,000 |
Hidroinvest | - | - | - | - | - | - | - |
CTM | - | - | - | - | - | - | - |
Tesa | - | - | - | - | - | - | - |
Peru | 46,492 | 201,525 | 101,726 | 50,307 | 59,425 | 242,897 | 702,373 |
Edelnor | 21,056 | 53,216 | 24,052 | 9,718 | 14,542 | 116,399 | 238,984 |
Edegel | 25,436 | 148,310 | 77,674 | 40,589 | 44,883 | 126,498 | 463,389 |
Brazil | 29,066 | 322,313 | 202,636 | 369,560 | 284,197 | 378,225 | 1,585,998 |
Endesa Brasil | - | - | - | - | - | - | - |
Coelce | 9,977 | 113,272 | 42,160 | 44,847 | 44,847 | 83,297 | 338,400 |
Ampla | 10,671 | 194,065 | 146,051 | 200,822 | 114,703 | 110,433 | 776,744 |
Cachoeira | 1,768 | 1,209 | - | - | - | - | 2,976 |
Cien | 2,353 | 4,706 | 4,706 | 113,467 | 113,467 | 111,207 | 349,906 |
Fortaleza | 4,298 | 9,062 | 9,719 | 10,424 | 11,181 | 73,287 | 117,972 |
Colombia | 93,482 | 10,281 | 181,457 | 69,099 | 296,561 | 675,423 | 1,326,303 |
Codensa | 74,906 | 10,281 | 24,713 | 69,099 | 98,854 | 317,074 | 594,926 |
Emgesa | 18,576 | - | 156,744 | - | 197,708 | 358,349 | 731,376 |
Betania | - | - | - | - | - | - | - |
TOTAL | 210,264 | 1,034,413 | 1,566,649 | 679,234 | 880,645 | 3,454,128 | 7,825,332 |
(*) Includes: CAM | |||||||
(**) Includes: Endesa Chile Internacional, Pangue, Pehuenche, San Isidro, Celta and Tunel El Melon. |
Pg. 26
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CONSOLIDATED CASH FLOW
UNDERCHILEANGAAP, MILLIONCH$
Table 9
Million Ch$ | 9M 06 | 9M 07 | Var 06-07 | Chg % |
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | ||||
Net income (loss) for the year | 254,950 | 119,016 | (135,934) | (53.3%) |
Gain (losses) from sales of assets: | ||||
Losses (gain) on sale of property, plant and equipment | (17,559) | (631) | 16,928 | 96.4% |
Charges (credits) to income which do not represent cash flows: | ||||
Depreciation | 326,500 | 315,939 | (10,561) | (3.2%) |
Amortization of intangibles | 6,326 | 7,552 | 1,226 | 19.4% |
Write-offs and accrued expenses | 17,919 | 39,592 | 21,673 | 120.9% |
Equity in income of related companies | (4,576) | (2,522) | 2,054 | 44.9% |
Equity in losses of related companies | 195 | 5,694 | 5,499 | - |
Amortization of positive goodwill | 44,080 | 43,910 | (170) | (0.4%) |
Amortization of negative goodwill | (5,249) | (3,389) | 1,860 | 35.4% |
Price-level restatement, net | (393) | 11,638 | 12,031 | N/A |
Exchange difference, net | (6,805) | (11,263) | (4,458) | (65.5%) |
Other credits to income which do not represent cash flows | (28,564) | (45,975) | (17,411) | (61.0%) |
Other charges to income which do not represent cash flows | 46,708 | 169,384 | 122,676 | - |
Changes in assets which affect cash flows: | - | 0.0% | ||
Decrease (increase) in trade receivables | (163,823) | (162,870) | 953 | 0.6% |
Decrease (increase) in inventory | 3,803 | (37,420) | (41,223) | N/A |
Decrease (increase) in other assets | (78,661) | (40,907) | 37,754 | 48.0% |
Changes in liabilities which affect cash flow: | ||||
Decreased (increase) in payable accounts associated with operating results | 106,529 | 131,189 | 24,660 | 23.1% |
Decreased (increase) of payable interest | 24,827 | 196 | (24,631) | (99.2%) |
Decreased (increase) in income tax payable | (92,651) | (108,584) | (15,933) | (17.2%) |
Decreased (increase) in other accounts payable associated with non-operating results | 98,206 | 11,138 | (87,068) | (88.7%) |
Decreased (increase) in value added tax and other similar taxes payable, net | (95,421) | (57,802) | 37,619 | 39.4% |
Income (loss) attributable to minority interest | 215,429 | 178,370 | (37,059) | (17.2%) |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | 651,769 | 562,252 | (89,517) | (13.7%) |
Pg. 27
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Cont. Table 9
Million Ch$ | 9M 06 | 9M 07 | Var 06-07 | Chg % |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of shares issued to minorities | - | - | - | - |
Proceeds from debt issuance | 828,334 | 615,791 | (212,543) | (25.7%) |
Proceeds from bond issuance | 155,815 | 330,440 | 174,625 | 112.1% |
Proceeds from loans obtained from related companies | - | - | - | - |
Proceeds from other loans obtained from related companies | - | - | - | - |
Other sources of financing | 28,229 | - | (28,229) | (100.0%) |
Capital paid | (12,454) | - | 12,454 | 100.0% |
Dividends paid | (111,824) | (411,434) | (299,610) | - |
Payment of debt | (647,505) | (576,948) | 70,557 | 10.9% |
Payment of bonds | (278,291) | (124,402) | 153,889 | 55.3% |
Payments of loans obtained from related companies | (7,851) | (1,757) | 6,094 | - |
Payments of other loans obtained from related companies | - | - | - | - |
Payments of shares issuance costs | - | - | - | - |
Payments of bonds issuance costs | (528) | - | 528 | 100.0% |
Other disbursements for financing | (2,430) | (1,385) | 1,045 | 43.0% |
NET CASH FLOW FROM FINANCING ACTIVITIES | (48,505) | (169,696) | (121,191) | (249.9%) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from sale of property, plant and equipment | 28,676 | 3,114 | (25,562) | (89.1%) |
Sale of investment | 36 | - | (36) | - |
Other loans received from related companies | - | - | - | - |
Other receipts from investments | 4,580 | 42,830 | 38,250 | - |
Additions to property, plant and equipment | (390,075) | (402,123) | (12,048) | (3.1%) |
Long-term investments | (13,025) | (33,597) | (20,572) | (157.9%) |
Investment in financing instruments | - | - | - | - |
Other loans granted to related companies | - | (27,754) | (27,754) | - |
Other investment disbursements | (16,726) | (54,458) | (37,732) | - |
NET CASH FLOW FROM INVESTMENT ACTIVITIES | (386,535) | (471,988) | (85,453) | (22.1%) |
NET CASH FLOW FOR THE PERIOD | 216,729 | (79,432) | (296,161) | 136.7% |
EFFECT OF PRICE-LEVEL RESTATEMENT ON CASH AND CASH EQUIVALENT | (15,807) | 18,299 | 34,106 | N/A |
NET VARIATION ON CASH AND CASH EQUIVALENT | 200,922 | (61,133) | (262,055) | N/A |
CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE YEAR | 386,673 | 462,535 | 75,862 | 19.6% |
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD | 587,595 | 401,402 | (186,193) | (31.7%) |
Pg. 28
![]() | PRESS RELEASE | |
UNDERCHILEANGAAP,THOUSANDUS$
Table 9.1
Thousand US$ | 9M 06 | 9M 07 | Var 06-07 | Chg % |
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | ||||
Net income (loss) for the year | 498,699 | 232,803 | (265,896) | (53.3%) |
Gain (losses) from sales of assets: | ||||
Losses (gain) on sale of property, plant and equipment | (34,346) | (1,234) | 33,112 | 96.4% |
Charges (credits) to income which do not represent cash flows: | ||||
Depreciation | 638,656 | 617,997 | (20,659) | (3.2%) |
Amortization of intangibles | 12,374 | 14,772 | 2,398 | 19.4% |
Write-offs and accrued expenses | 35,051 | 77,444 | 42,393 | 120.9% |
Equity in income of related companies | (8,951) | (4,933) | 4,018 | 44.9% |
Equity in losses of related companies | 381 | 11,137 | 10,756 | - |
Amortization of positive goodwill | 86,223 | 85,891 | (332) | (0.4%) |
Amortization of negative goodwill | (10,267) | (6,630) | 3,637 | 35.4% |
Price-level restatement, net | (769) | 22,764 | 23,533 | N/A |
Exchange difference, net | (13,311) | (22,031) | (8,720) | (65.5%) |
Other credits to income which do not represent cash flows | (55,873) | (89,931) | (34,058) | (61.0%) |
Other charges to income which do not represent cash flows | 91,364 | 331,327 | 239,963 | - |
Changes in assets which affect cash flows: | ||||
Decrease (increase) in trade receivables | (320,449) | (318,585) | 1,864 | 0.6% |
Decrease (increase) in inventory | 7,439 | (73,197) | (80,636) | N/A |
Decrease (increase) in other assets | (153,866) | (80,018) | 73,848 | 48.0% |
Changes in liabilities which affect cash flow: | ||||
Decreased (increase) in payable accounts associated with operating results | 208,378 | 256,615 | 48,237 | 23.1% |
Decreased (increase) of payable interest | 48,563 | 384 | (48,179) | (99.2%) |
Decreased (increase) in income tax payable | (181,232) | (212,397) | (31,165) | (17.2%) |
Decreased (increase) in other accounts payable associated with non-operating results | 192,097 | 21,786 | (170,311) | (88.7%) |
Decreased (increase) in value added tax and other similar taxes payable, net | (186,650) | (113,065) | 73,585 | 39.4% |
Income (loss) attributable to minority interest | 421,394 | 348,903 | (72,491) | (17.2%) |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | 1,274,905 | 1,099,803 | (175,102) | (13.7%) |
Pg. 29
![]() | PRESS RELEASE | |
Cont. Table 9.1
Thousand US$ | 9M 06 | 9M 07 | Var 06-07 | Chg % |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of shares issued to minorities | - | - | - | - |
Proceeds from debt issuance | 1,620,277 | 1,204,529 | (415,748) | (25.7%) |
Proceeds from bond issuance | 304,785 | 646,362 | 341,577 | 112.1% |
Proceeds from loans obtained from related companies | - | - | - | - |
Proceeds from other loans obtained from related companies | - | - | - | - |
Other sources of financing | 55,218 | - | (55,218) | (100.0%) |
Capital paid | (24,361) | - | 24,361 | 100.0% |
Dividends paid | (218,735) | (804,792) | (586,057) | - |
Payment of debt | (1,266,563) | (1,128,550) | 138,013 | 10.9% |
Payment of bonds | (544,356) | (243,340) | 301,016 | 55.3% |
Payments of loans obtained from related companies | (15,357) | (3,437) | 11,920 | - |
Payments of other loans obtained from related companies | - | - | - | - |
Payments of shares issuance costs | - | - | - | - |
Payments of bonds issuance costs | (1,033) | - | 1,033 | 100.0% |
Other disbursements for financing | (4,753) | (2,710) | 2,043 | 43.0% |
NET CASH FLOW FROM FINANCING ACTIVITIES | (94,879) | (331,937) | (237,058) | (249.9%) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from sale of property, plant and equipment | 56,092 | 6,092 | (50,000) | (89.1%) |
Sale of investment | 70 | - | (70) | - |
Other loans received from related companies | - | - | - | - |
Other receipts from investments | 8,959 | 83,779 | 74,820 | - |
Additions to property, plant and equipment | (763,013) | (786,580) | (23,567) | (3.1%) |
Long-term investments | (25,478) | (65,718) | (40,240) | (157.9%) |
Investment in financing instruments | - | - | - | - |
Other loans granted to related companies | - | (54,288) | (54,288) | - |
Other investment disbursements | (32,717) | (106,524) | (73,807) | - |
NET CASH FLOW FROM INVESTMENT ACTIVITIES | (756,086) | (923,239) | (167,153) | (22.1%) |
NET CASH FLOW FOR THE PERIOD | 423,936 | (155,373) | (579,309) | 136.7% |
EFFECT OF PRICE-LEVEL RESTATEMENT ON CASH AND CASH EQUIVALENT | (30,920) | 35,793 | 66,713 | N/A |
NET VARIATION ON CASH AND CASH EQUIVALENT | 393,017 | (119,580) | (512,597) | N/A |
CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE YEAR | 756,358 | 904,749 | 148,391 | 19.6% |
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD | 1,149,375 | 785,169 | (364,206) | (31.7%) |
Pg. 30
![]() | PRESS RELEASE Nine Months 2007 – Consolidated Cash Flow Analysis |
CONSOLIDATED CASH FLOW ANALYSIS
During the period, the Company generated a net cash outflow of Ch$ 79,432 million, comprised by the following activities:
Table 10
Effective Cash Flow (million Ch$) | 9M06 | 9M07 | Var 06-07 | Chg % |
Operating | 651,769 | 562,252 | (89,517) | (13.7%) |
Financing | (48,505) | (169,696) | (121,191) | (249.9%) |
Investment | (386,535) | (471,988) | (85,453) | (22.1%) |
Net cash flow of the period | 216,729 | (79,432) | (296,161) | 136.7% |
Table 10.1
Effective Cash Flow (thousand US$) | 9M06 | 9M07 | Var 06-07 | Chg % |
Operating | 1,274,903 | 1,099,803 | (175,100) | (13.7%) |
Financing | (94,879) | (331,937) | (237,058) | (249.9%) |
Investment | (756,088) | (923,239) | (167,151) | (22.1%) |
Net cash flow of the period | 423,936 | (155,373) | (579,309) | 136.7% |
Operating activities generated a net positive cash flow of Ch$ 562,252 million, which represent a decrease of 13.7% . The operating cash flow is broken as follows:
• Net income for the period amounting to Ch$ 119,017 million, plus:
• Charges of Ch$ 593,708 million to the income statement that do not represent cash flow and correspond mainly to the depreciation of the period for Ch$ 315,939 million, write-offs and provisions for Ch$ 39,592 million, amortizations of positive goodwill Ch$ 43,910 million, amortization of intangibles Ch$ 7,552 million, losses in long term investments of Ch$ 5,694 million, and other charges that do not represent cash flow Ch$ 169,384 million, which includes the Ch$ 156,381 million negative conversion effect of the applying BT 64 for foreign subsidiaries.
• The above was partially compensated by:
• Non-cash credits for Ch$ 63,150 million that do not represent cash flows, which includes Ch$ 32,475 million related to the positive effect on the BT 64 conversion accountings from foreign subsidiaries.
• Profit on investment in related companies Ch$ 2,522 million.
• Negative goodwill amortization Ch$ 3,389 million.
• Variation in net assets that affect operating cash flow Ch$ 241,196 million.
• Variation in net liabilities that affect operating cash flow Ch$23,863 million.
Pg. 31
![]() | PRESS RELEASE Nine Months 2007 – Consolidated Cash Flow Analysis |
Financing activities resulted in a negative cash flow of Ch$ 169,696 million mainly due to loans repayment of Ch$ 576,948 million, dividend payments Ch$ 411,434 million, bonds payments Ch$ 124,402 million, repayments of debts with related companies Ch$ 1,757 million, and other outflows Ch$ 1,385 million. The outflows above are partly offset by new financings, mainly through loans for a value of Ch$ 615,791 million, and bond issuances Ch$ 330,440 million
Investment activitiesshowed a net negative cash flow of Ch$ 471,988 million, which compared to the same period 2006, represents an increase by 22.1 %. These disbursements correspond to the addition of fixed assets for Ch$402,123 million, other long term investments Ch$ 33,597 million, loans to related companies Ch$27,754 million and other disbursements Ch$ 54,458 million , partially compensated by sale of fixed assets Ch$3,114 million and other investment revenues Ch$42,830 million.
CASHFLOWRECEIVEDFROMFOREIGNSUBSIDIARIES BYENERSIS,CHILECTRA ANDENDESACHILE
Table 11
Millions Ch$ | Interest Received | Dividends Received | Management Fee | Prepayment intercompany | Capital Reductions | |||||
9M06 | 9M07 | 9M06 | 9M07 | 9M06 | 9M07 | 9M06 | 9M07 | 9M06 | 9M07 | |
Argentina | 5,016 | 1,515 | - | 5,820 | 230 | 80 | 61,348 | - | - | - |
Peru | - | - | 9,725 | 9,863 | - | - | - | - | - | - |
Brazil | 1,572 | - | - | 56,861 | - | - | 31,813 | - | - | - |
Colombia | 18,514 | - | - | 28,163 | - | - | 88,695 | - | - | - |
Total | 25,101 | 1,515 | 9,725 | 100,707 | 230 | 80 | 181,856 | - | - | - |
Millions Ch$ | Total Cash Received | |
9M06 | 9M07 | |
Argentina | 66,593 | 7,414 |
Peru | 9,725 | 9,863 |
Brazil | 33,385 | 56,861 |
Colombia | 107,208 | 28,163 |
Total | 216,912 | 102,301 |
Table 11.1
Thousand US$ | Interest Received | Dividends Received | Management Fee | Prepayment Intercompany | Capital Reductions | |||||
9M06 | 9M07 | 9M06 | 9M07 | 9M06 | 9M07 | 9M06 | 9M07 | 9M06 | 9M07 | |
Argentina | 9,811 | 2,963 | - | 11,384 | 450 | 156 | 120,000 | - | - | - |
Peru | - | - | 19,023 | 19,294 | - | - | - | - | - | - |
Brazil | 3,074 | - | - | 111,224 | - | - | 62,229 | - | - | - |
Colombia | 36,214 | - | - | 55,088 | - | - | 173,493 | - | - | - |
Total | 49,099 | 2,963 | 19,023 | 196,989 | 450 | 156 | 355,722 | - | - | - |
Thousand US$ | Total Cash Received | |
9M06 | 9M07 | |
Argentina | 130,261 | 14,502 |
Peru | 19,023 | 19,294 |
Brazil | 65,303 | 111,224 |
Colombia | 209,707 | 55,088 |
Total | 424,294 | 200,108 |
Source: Internal Financial Report
Pg. 32
![]() | PRESS RELEASE Nine Months 2007 – Capex and Depreciation |
CAPEX ANDDEPRECIATION
Table 12
Payments for Additions of | Depreciation | |||
Fixed assets | ||||
Million Ch$ | 9M06 | 9M07 | 9M06 | 9M07 |
Endesa | 138,892 | 143,897 | 137,545 | 143,886 |
Cachoeira (*) | 915 | 1,345 | 12,045 | 9,718 |
Fortaleza (**) | 958 | 1,231 | 3,946 | 2,649 |
Cien (**) | 1,065 | 167 | 10,626 | 9,486 |
Chilectra S.A. | 45,966 | 46,651 | 14,041 | 15,288 |
Edesur S.A. | 28,417 | 25,234 | 34,423 | 29,239 |
Edelnor S.A. | 15,028 | 16,289 | 13,531 | 12,611 |
Ampla | 81,786 | 66,116 | 33,707 | 26,668 |
Coelce | 52,637 | 71,998 | 29,028 | 30,455 |
Codensa S.A. | 20,383 | 25,651 | 32,835 | 31,438 |
Cam Ltda. | 683 | 1,110 | 1,862 | 1,228 |
Inmobiliaria Manso de Velasco Ltda. | 976 | 830 | 273 | 238 |
Synapsis Soluciones y Servicios Ltda. | 2,293 | 1,346 | 1,636 | 1,953 |
Holding Enersis | 76 | 258 | 1,000 | 1,082 |
Total | 390,075 | 402,123 | 326,500 | 315,939 |
Table 12.1
Payments for Additions of | Depreciation | |||
Fixed assets | ||||
Thousand US$ | 9M06 | 9M07 | 9M06 | 9M07 |
Endesa | 271,682�� | 281,471 | 269,047 | 281,450 |
Cahoeira (*) | 1,790 | 2,632 | 23,562 | 19,010 |
Fortaleza (**) | 1,874 | 2,408 | 7,719 | 5,182 |
Cien (**) | 2,082 | 327 | 20,785 | 18,555 |
Chilectra S.A. | 89,912 | 91,253 | 27,466 | 29,905 |
Edesur S.A. | 55,586 | 49,359 | 67,333 | 57,193 |
Edelnor S.A. | 29,396 | 31,862 | 26,468 | 24,668 |
Ampla | 159,979 | 129,328 | 65,933 | 52,165 |
Coelce | 102,962 | 140,833 | 56,780 | 59,572 |
Codensa S.A. | 39,871 | 50,176 | 64,228 | 61,494 |
Cam Ltda. | 1,336 | 2,171 | 3,642 | 2,403 |
Inmobiliaria Manso de Velasco Ltda. | 1,910 | 1,624 | 534 | 466 |
Synapsis Soluciones y Servicios Ltda. | 4,485 | 2,632 | 3,200 | 3,821 |
Holding Enersis | 149 | 505 | 1,957 | 2,116 |
Total | 763,016 | 786,581 | 638,653 | 618,001 |
(*) 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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ANALYSIS OF EXCHANGE RISK AND INTEREST RATE
The Company has a percentage of its loans in dollars, as part of its sales in the different markets where it operates, are partly indexed to that currency. However, the Brazilian, Colombian and Argentine 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 allow it.
In a scenario of a high exchange rate risk, the company has continued with its policy of partly covering its liabilities in dollars in order to mitigate the effects of the fluctuations in the exchange rate upon results. Considering the important reduction in the accounting mismatch in recent years, the company has modified its policy on dollar-peso hedging in order to establish a policy of covering cash flows, together with a maximum permissible accounting mismatch, on which hedging operations will be performed.
As of September 30, 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. 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 70.8% fixed / 29.2% variable as of September 30, 2007. The percentage of its indebtedness at a fixed rate has decreased compared with the 71.7% / 28.4% ratio as of the same date in 2006.
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ARGENTINA
GENERATION
In order to contribute to the stabilization of Argentina’s electricity market, Endesa Chile accepted to participate in the Regulator’s fund FONINVEMEM created to increase the safety margins in the system through the construction of two 800 megawatt combined cycle plants, which are expected to begin operations early 2009.
COSTANERA
In the generation business, our subsidiary Costanera recorded a negative Operating Income of Ch$ 1,142 million, due to a 26.2% increase in Operating Costs as a result of higher production with liquid fuels, which led to a 30.7% of higher fuel purchases. This was partially offset by higher average sale prices. Physical sales declined by 4.8% .
Operating Income
Table 13
Million US$ | Million Ch$ | ||||||
9M06 | 9M07 | 9M06 | 9M07 | Chg % | |||
Operating Revenues | 278 | 343 | 141,872 | 175,491 | 23.7% | ||
Operating Costs | (270) | (341) | (138,198) | (174,577) | (26.2%) | ||
Operating Margin | 7 | 2 | 3,674 | 914 | (75.1%) | ||
Selling and Administrative Expenses | (3) | (4) | (1,559) | (2,056) | (31.9%) | ||
Operating Income | 4 | (2) | 2,115 | (1,142) | (154.0%) | ||
* Please take note that these figures could differ from those accounted under Argentine GAAP. |
Additional Information
Table 14
Costanera | 9M06 | 9M07 | Var 06-07 | Chg % |
GWh Produced | 6.312 | 6.013 | (299) | (4,7%) |
GWh Sold | 6.336 | 6.034 | (302) | (4,8%) |
Market Share | 8,7% | 7,8% | - | (10,2%) |
Costanera Financial Debt Maturity (with third party)
US$ 213 million
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CHOCÓN
At our subsidiary Chocón, Operating Income was Ch$ 22,371 million, decreasing 11.4%, due to lower operating revenues and less physical sales of 22.4%, derived from a lower hydrology in Comahue Region, which was partially compensated by higher average sale prices in the period.
Operating Income
Table 15
Million US$ | Million Ch$ | ||||||
9M06 | 9M07 | 9M06 | 9M07 | Chg % | |||
Operating Revenues | 97 | 89 | 49,703 | 45,736 | (8.0%) | ||
Operating Costs | (46) | (44) | (23,768) | (22,454) | 5.5% | ||
Operating Margin | 51 | 46 | 25,935 | 23,282 | (10.2%) | ||
Selling and Administrative Expenses | (1) | (2) | (682) | (911) | (33.5%) | ||
Operating Income | 49 | 44 | 25,253 | 22,371 | (11.4%) | ||
* Please take note that these figures could differ from those accounted under Argentine GAAP. |
Additional Information
Table 16
Chocón | 9M06 | 9M07 | Var 06-07 | Chg % |
GWh Produced | 4.087 | 3.068 | (1.020) | (24,9%) |
GWh Sold | 4.161 | 3.230 | (931) | (22,4%) |
Market Share | 5,7% | 4,2% | - | (26,8%) |
Chocon Financial Debt Maturity (with third party)
US$ 100 million
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DISTRIBUTION
It is important to remember that 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 charged in 55 monthly payments and consecutive monthly installments.
EDESUR
Operating Income reached Ch$ 15,535 million compared to the negative results of September 2006. This was explained by 8.6% of better physical sales, reaching 11,973 GWh as a consequence of the higher demand in the country plus the addition of 28,000 more clients.
Operating Income
Table 17
Million US$ | Million Ch$ | ||||||
9M 06 | 9M 07 | 9M 06 | 9M 07 | Chg % | |||
Revenues from Sales | 350 | 398 | 178,793 | 203,670 | 13.9% | ||
Other Operating Revenues | 27 | 31 | 13,956 | 15,761 | 12.9% | ||
Operating Revenues | 377 | 429 | 192,749 | 219,431 | 13.8% | ||
Energy Purchases | (217) | (223) | (110,828) | (113,889) | (2.8%) | ||
Other Operating Cost | (113) | (117) | (57,937) | (59,813) | (3.2%) | ||
Operating Costs | (330) | (340) | (168,766) | (173,702) | (2.9%) | ||
Selling and Administrative Expenses | (52) | (59) | (26,801) | (30,194) | (12.7%) | ||
Operating Income | (6) | 30 | (2,818) | 15,535 | - | ||
* Please take note that these figures could differ from those accounted under Argentine GAAP. |
Additional Information
Table 18
Edesur | 9M06 | 9M07 | Var 06-07 | Chg % |
Customers (Th) | 2,189 | 2,217 | 28 | 1.3% |
GWh Sold | 11,022 | 11,973 | 951 | 8.6% |
Clients/Employee | 916 | 880 | (35) | (3.8%) |
Energy Losses % (9M) | 11.0% | 11.0% | - | 0.6% |
Edesur Financial Debt Maturity (with third party)
US$ 97 million
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BRAZIL
ENDESABRASIL
Table 19
Million US$ | Million Ch$ | Chg % | |||||
9M06 | 9M07 | 9M06 | 9M07 | ||||
Revenues from Sales | 1,663 | 1,804 | 850,013 | 922,355 | 8.5% | ||
Other Operating Revenues | 40 | 83 | 20,218 | 42,326 | 109.4% | ||
Operating Revenues | 1,702 | 1,887 | 870,230 | 964,680 | 10.9% | ||
Energy Purchases | (811) | (994) | (414,560) | (507,925) | (22.5%) | ||
Other Operating Cost | (408) | (303) | (208,691) | (154,657) | 25.9% | ||
Operating Costs | (1,219) | (1,296) | (623,251) | (662,582) | (6.3%) | ||
Selling and Administrative Expenses | (100) | (136) | (51,253) | (69,285) | (35.2%) | ||
Operating Income | 383 | 455 | 195,726 | 232,813 | 18.9% | ||
* Please take note that these figures could differ from those accounted under Brazilian GAAP.
GENERATION
CACHOEIRA
In the generation business, Operating Income rose by 58.2%, improving from Ch$ 24,024 million up to Ch$ 38,017 million, mainly due to better average purchases and sales margins and higher physical sales, reaching 3,230 GWh.
Operating Income
Table 20
Million US$ | Million Ch$ | ||||||
9M06 | 9M07 | 9M06 | 9M07 | Chg % | |||
Operating Revenues | 98 | 123 | 49,899 | 62,692 | 25.6% | ||
Operating Costs | (48) | (45) | (24,464) | (22,863) | 6.5% | ||
Operating Margin | 50 | 78 | 25,435 | 39,829 | 56.6% | ||
Selling and Administrative Expenses | (3) | (4) | (1,411) | (1,812) | (28.4%) | ||
Operating Income | 47 | 74 | 24,024 | 38,017 | 58.2% | ||
* Please take note that these figures could differ from those accounted under Brazilian GAAP.
Additional Information
Table 21
Cachoeira | 9M06 | 9M07 | Var 06-07 | Chg % |
GWh Produced | 3.159 | 2.856 | (303) | (9,6%) |
GWh Sold | 3.186 | 3.230 | 44 | 1,4% |
Market Share | 1,2% | 1,2% | - | 0,0% |
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Cachoeira Financial Debt Maturity (with third party)
US$ 3 million
FORTALEZA
The company improved its Operating Income by 26.9% reaching Ch$ 35,772, mainly due to better average purchase and sales margins, while physical sales remained almost unchanged.
Operating Income
Table 22
Million US$ | Million Ch$ | ||||||
9M06 | 9M07 | 9M06 | 9M07 | Chg % | |||
Operating Revenues | 166 | 150 | 84,702 | 76,602 | (9.6%) | ||
Operating Costs | (109) | (78) | (55,713) | (39,711) | 28.7% | ||
Operating Margin | 57 | 72 | 28,990 | 36,891 | 27.3% | ||
Selling and Administrative Expenses | (2) | (2) | (810) | (1,119) | (38.1%) | ||
Operating Income | 55 | 70 | 28,179 | 35,772 | 26.9% | ||
Additional Information
Table 23
Fortaleza | 9M06 | 9M07 | Var 06-07 | Chg % |
GWh Produced | 220 | 14 | (206) | (93,5%) |
GWh Sold | 2.016 | 2.018 | 2 | 0,1% |
Market Share | 0,8% | 0,7% | - | - |
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Fortaleza Financial Debt Maturity (with third party)
US$ 118 million
TRANSMISSION
CIEN
The company registered a positive Operating Income of Ch$ 6,986 million, a much better result than the losses of Ch$ 8,325 million as of same period last year, explained by higher physical sales by 9.9%, reaching 5,218 GWh.
It is important to remind that 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 compensation for its international transmission capacity.
Operating Income
Table 24
Million US$ | Million Ch$ | ||||||
9M06 | 9M07 | 9M06 | 9M07 | Chg % | |||
Operating Revenues | 211 | 450 | 107,938 | 230,001 | 113.1% | ||
Operating Costs | (220) | (430) | (112,595) | (219,676) | (295.1%) | ||
Operating Margin | (9) | 20 | (4,657) | 10,324 | 321.7% | ||
Selling and Administrative Expenses | (7) | (7) | (3,668) | (3,339) | 9.0% | ||
Operating Income | (16) | 14 | (8,325) | 6,986 | N/A | ||
Additional Information
Table 25
CIEN | 9M06 | 9M07 | Var 06-07 | Chg % |
GWh Sold | 4.747 | 5.218 | 471 | 9,9% |
Market Share | N.A. | N.A. | - | - |
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Cien Financial Debt Maturity (with third party)
US$ 350 million
DISTRIBUTION
AMPLA
Our subsidiary recorded an improvement of 20.4% in Operating Income, reaching Ch$ 97,276 million, due to higher energy demand, which boosted physical sales by 3.6% reaching 6,661 GWh, and also explained by better margins. Energy losses improved from 22% down to 21.7%, confirming the efforts made in reducing this item. Our client base grew by 87 thousand clients.
Operating Income
Table 26
Million US$ | Million Ch$ | ||||||
9M 06 | 9M 07 | 9M 06 | 9M 07 | Chg % | |||
Revenues from Sales | 813 | 767 | 415,484 | 392,355 | (5.6%) | ||
Other Operating Revenues | 14 | 17 | 7,291 | 8,884 | 21.9% | ||
Operating Revenues | 827 | 785 | 422,777 | 401,239 | (5.1%) | ||
Energy Purchases | (378) | (385) | (193,306) | (196,690) | (1.8%) | ||
Other Operating Cost | (264) | (163) | (134,928) | (83,437) | 38.2% | ||
Operating Costs | (642) | (548) | (328,234) | (280,127) | 14.7% | ||
Selling and Administrative Expenses | (27) | (47) | (13,752) | (23,836) | (73.3%) | ||
Operating Income | 158 | 190 | 80,791 | 97,276 | 20.4% | ||
* Please take note that these figures could differ from those accounted under Brazilian GAAP. |
Additional Information
Table 27
Ampla | 9M06 | 9M07 | Var 06-07 | Chg % |
Customers (Th) | 2,292 | 2,379 | 87 | 3.8% |
GWh Sold | 6,428 | 6,661 | 234 | 3.6% |
Clients/Employee | 1,612 | 1,699 | 87 | 5.4% |
Energy Losses % (9M) | 22.0% | 21.7% | - | (1.3%) |
Ampla Financial Debt Maturity (with third party) US$ 777 million
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COELCE
The company reduced its Operating Income reaching Ch$ 58,139 million, as consequence of an allowance for uncollectible accounts of Ch$ 13,298 million, partially offset by higher physical sales, which increased 6.1% reaching 5,272 GWh, and also due to better margins. Energy losses maintained in 12.6% . The client base grew by 139 thousand clients achieving a 5.5% increase.
Operating Income
Table 28
Million US$ | Million Ch$ | ||||||
9M 06 | 9M 07 | 9M 06 | 9M 07 | Chg % | |||
Revenues from Sales | 637 | 613 | 325,700 | 313,354 | (3.8%) | ||
Other Operating Revenues | 14 | 25 | 6,984 | 12,904 | 84.8% | ||
Operating Revenues | 651 | 638 | 332,683 | 326,257 | (1.9%) | ||
Energy Purchases | (292) | (312) | (149,066) | (159,518) | (7.0%) | ||
Other Operating Cost | (157) | (138) | (80,085) | (70,636) | 11.8% | ||
Operating Costs | (448) | (450) | (229,151) | (230,153) | (0.4%) | ||
Selling and Administrative Expenses | (57) | (74) | (28,976) | (37,965) | (31.0%) | ||
Operating Income | 146 | 114 | 74,556 | 58,139 | (22.0%) | ||
* Please take note that these figures could differ from those accounted under Brazilian GAAP. |
Additional Information
Table 29
Coelce | 9M06 | 9M07 | Var 06-07 | Chg % |
Customers (Th) | 2,512 | 2,651 | 139 | 5.5% |
GWh Sold | 4,968 | 5,272 | 304 | 6.1% |
Clients/Employee | 1,913 | 2,044 | 131 | 6.8% |
Energy Losses % (9M) | 12.6% | 12.6% | - | 0.1% |
Coelce Financial Debt Maturity (with third party) US$ 338 million
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CHILE
GENERATION
ENDESACHILE
Consolidated Income Statement
Table 30
Million US$ | Million Ch$ | ||||||
9M 06 | 9M 07 | 9M 06 | 9M 07 | Chg % | |||
Operating Revenues | 2,039 | 2,451 | 1,042,438 | 1,253,200 | 20.2% | ||
Operating Costs | (1,214) | (1,652) | (620,394) | (844,508) | (36.1%) | ||
Selling and Administrative Expenses | (58) | (55) | (29,648) | (28,357) | 4.4% | ||
Operating Income | 768 | 744 | 392,396 | 380,335 | (3.1%) | ||
Interest Income | 23 | 28 | 11,629 | 14,393 | 23.8% | ||
Interest Expenses | (268) | (264) | (137,146) | (134,806) | 1.7% | ||
Net Financial Income (Expenses) | (246) | (236) | (125,518) | (120,413) | 4.1% | ||
Equity Gains from Related Company | 61 | 61 | 31,372 | 31,276 | (0.3%) | ||
Equity Losses from Related Company | (0) | (11) | (180) | (5,571) | - | ||
Net Income from Related Companies | 61 | 50 | 31,192 | 25,704 | (17.6%) | ||
Other Non Operating Income | 78 | 25 | 39,714 | 12,567 | (68.4%) | ||
Other Non Operating Expenses | (45) | (151) | (23,083) | (76,988) | - | ||
Net other Non Operating Income (Expenses) | 33 | (126) | 16,631 | (64,421) | - | ||
Price Level Restatement | 4 | 7 | 1,874 | 3,336 | 78.0% | ||
Foreign Exchange Effect | 5 | 27 | 2,592 | 13,650 | - | ||
Net of Monetary Exposure | 9 | 33 | 4,466 | 16,987 | - | ||
Positive Goodwill Amortization | (1) | (1) | (746) | (646) | 13.5% | ||
Non Operating Income | (145) | (279) | (73,974) | (142,789) | (93.0%) | ||
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 623 | 465 | 318,422 | 237,547 | (25.4%) | ||
Extraordinary Items | - | - | - | - | - | ||
Income Tax | (229) | (140) | (116,986) | (71,460) | 38.9% | ||
Minority Interest | (111) | (90) | (56,994) | (46,202) | 18.9% | ||
Negative Goodwill Amortization | 10 | 7 | 5,217 | 3,359 | (35.6%) | ||
NET INCOME | 293 | 241 | 149,661 | 123,242 | (17.7%) | ||
Chilean Operations
Operating Income for Chilean operations decreased 11.7%, reaching Ch$ 199,377 million, due to 7.4% of lower physical sales. Energy production reached 13,992 GWh, 4.8% lower than the same period as of 2006 explained by lower hydrological reserves in the Endesa Chile’s reservoirs.
Endesa’s commercial policy has mitigated the hydrological risk which, in addition to the efficiency of its facilities, has allowed Endesa Chile to become a net seller in the spot market. Additionally, operating cost grew by 29.1% mainly due to an increase of Ch$ 160,561 million in fuel costs associated to thermal generation.
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Additional Information
Table 31
Chilean Companies | 9M06 | 9M07 | Var 06-07 | Chg % |
GWh Produced | 14.693 | 13.992 | (701) | (4,8%) |
GWh Sold | 15.420 | 14.286 | (1.134) | (7,4%) |
Market Share | 41,3% | 36,2% | - | (12,3%) |
Endesa-Chile Parent Company Financial Debt Maturity (with third party)
US$ 2,534 million
DISTRIBUTION
It is important to mention that in the year 2006, Chilectra participated in the first auction for 4.500 GWh at an average price of US$ 54 MWh. This auction was for a period of 11 years, starting the year 2010.
Currently, Chilectra is facing its second auction process for 3 blocks of 2,500 GWh each. Terms of the auction comprise maturity periods of 11, 13 and 15 years respectively, starting from 2011.
CHILECTRA
Operating Income decreased 6.6%, explained by higher Operating Costs as a consequence of higher generation prices, as well as growing electricity demand. Physical sales increased 5% and customers rose to 1.47 million clients. Energy losses reached 6.0%, which continue to be mostly technical.
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Income Statement
Table 32
Million US$ | Million Ch$ | ||||||
9M 06 | 9M 07 | 9M 06 | 9M 07 | Chg % | |||
Revenues from Sales | 942 | 1,027 | 481,515 | 525,042 | 9.0% | ||
Other Operating Revenues | 72 | 88 | 36,832 | 44,988 | 22.1% | ||
Operating Revenues | 1,014 | 1,115 | 518,347 | 570,029 | 10.0% | ||
Energy Purchases | (652) | (765) | (333,577) | (391,070) | (17.2%) | ||
Other Operating Cost | (94) | (103) | (48,245) | (52,770) | (9.4%) | ||
Operating Costs | (747) | (868) | (381,822) | (443,840) | (16.2%) | ||
Selling and Administrative Expenses | (74) | (66) | (37,697) | (33,852) | 10.2% | ||
Operating Income | 193 | 181 | 98,828 | 92,337 | (6.6%) | ||
Interest Income | 7 | 8 | 3,469 | 4,019 | 15.8% | ||
Interest Expenses | (40) | (38) | (20,206) | (19,207) | 4.9% | ||
Net Financial Income (Expenses) | (33) | (30) | (16,737) | (15,189) | 9.2% | ||
Equity Gains from Related Company | 42 | 34 | 21,440 | 17,618 | (17.8%) | ||
Equity Losses from Related Company | (12) | (0) | (6,054) | (187) | 96.9% | ||
Net Income from Related Companies | 30 | 34 | 15,387 | 17,431 | 13.3% | ||
Other Non Operating Income | 9 | 25 | 4,480 | 12,757 | 184.7% | ||
Other Non Operating Expenses | (7) | (12) | (3,554) | (6,219) | (75.0%) | ||
Conversion Effect (BT 64) | - | - | - | - | |||
Net other Non Operating Income (Expenses) | 2 | 13 | 926 | 6,538 | - | ||
Price Level Restatement | (0) | 0 | (177) | 224 | - | ||
Foreign Exchange Effect | - | - | - | - | |||
Net of Monetary Exposure | (0) | 0 | (177) | 224 | - | ||
Positive Goodwill Amortization | (1) | (1) | (470) | (442) | 6.0% | ||
Non Operating Income | (2) | 17 | (1,071) | 8,562 | - | ||
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 191 | 197 | 97,757 | 100,899 | 3.2% | ||
Extraordinary Items | - | - | - | - | |||
Income Tax | 240 | (22) | 122,908 | (11,336) | (109.2%) | ||
Minority Interest | 1 | (9) | 552 | (4,377) | - | ||
Negative Goodwill Amortization | - | - | - | - | |||
NET INCOME | 433 | 167 | 221,217 | 85,186 | (61.5%) | ||
Additional Information
Table 33
Chilectra | 9M06 | 9M07 | Var 06-07 | Chg % |
Customers (Th) | 1,429 | 1,471 | 42 | 3.0% |
GWh Sold | 9,235 | 9,695 | 460 | 5.0% |
Clients/Employee | 2,077 | 2,026 | -52 | (2.5%) |
Energy Losses % (9M) | 5.5% | 6.0% | - | 8.8% |
Chilectra Financial Debt Maturity (with third party)
US$ 0 million
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COLOMBIA
GENERATION
It is important to mention than, as of September 1, 2007, the merger process between Emgesa and Betania was completed, and the resulting company was named Emgesa.
EMGESA
The contribution to Enersis´ consolidated operating result reached Ch$ 117,778 showing an increase by Ch$ 23,088 million. Mainly explained by higher average prices and physical sales. Operating costs increased by Ch$ 12,135 or 10.9% explained by upper energy purchases and less electricity production, due to a lower hydrology.
Operating Income
Table 34
Million US$ | Million Ch$ | ||||||
9M 06 | 9M 07 | 9M 06 | 9M 07 | Chg % | |||
Operating Revenues | 410 | 479 | 209.573 | 245.035 | 16,9% | ||
Operating Costs | (218) | (242) | (111.448) | (123.583) | (10,9%) | ||
Operating Margin | 192 | 238 | 98.125 | 121.452 | 23,8% | ||
Selling and Administrative Expenses | (7) | (7) | (3.434) | (3.673) | (7,0%) | ||
Operating Income | 185 | 230 | 94.690 | 117.778 | 24,4% | ||
Since September 1, 2007, Betania is merge with Emgesa. | |||||||
* Please take note that these figures could differ from those accounted under Colombian GAAP. |
Additional Information
Table 35
Emgesa | 9M06 | 9M07 | Var 06-07 | Chg % |
GWh Produced | 9.577 | 8.778 | -799 | 11,9% |
GWh Sold | 11.530 | 11.676 | 146 | 27,4% |
Market Share | 22,0% | 21,7% | - | (1,7%) |
Emgesa Financial Debt Maturity (with third party)
US$ 731 million
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DISTRIBUTION
CODENSA
Our subsidiary registered a 5.8% increase in Operating Income basically associated to a 7% increase in physical sales, reaching 8,474 GWh as consequence of higher demand. Additionally, the company registered 71 thousand new customers. In addition, energy losses decreased almost 1%. This was partially offset by a decrease in sales margin.
Operating Income
Table 36
Million US$ | Million Ch$ | ||||||
9M 06 | 9M 07 | 9M 06 | 9M 07 | Chg % | |||
Revenues from Sales | 509 | 561 | 260,010 | 286,782 | 10.3% | ||
Other Operating Revenues | 175 | 205 | 89,543 | 104,784 | 17.0% | ||
Operating Revenues | 684 | 766 | 349,552 | 391,567 | 12.0% | ||
Energy Purchases | (287) | (336) | (146,590) | (171,891) | (17.3%) | ||
Other Operating Cost | (160) | (178) | (81,886) | (90,878) | (11.0%) | ||
Operating Costs | (447) | (514) | (228,475) | (262,769) | (15.0%) | ||
Selling and Administrative Expenses | (21) | (24) | (10,912) | (12,267) | (12.4%) | ||
Operating Income | 215 | 228 | 110,165 | 116,531 | 5.8% | ||
* Please take note that these figures could differ from those accounted under Colombian GAAP. |
Additional Information
Table 37
Codensa | 9M06 | 9M07 | Var 06-07 | Chg % |
Customers (Th) | 2,122 | 2,193 | 71 | 3.3% |
GWh Sold | 7,917 | 8,474 | 558 | 7.0% |
Clients/Employee | 2,292 | 2,321 | 29 | 1.3% |
Energy Losses % (9M) | 9.0% | 8.8% | - | (2.7%) |
Codensa Financial Debt Maturity (with third party)
US$ 595 million
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PERU
GENERATION
EDEGEL
Our subsidiary reported a decrease in 7.3% in its operating result, reaching Ch$ 37,861 million. Electricity sales increased 22.5%, reaching 5,937 GWh due to growing electricity demand in the market. The higher sales were compensated by lower average sale prices, which reduced by 17%. Energy production increased 18.8%, reaching 5,749 GWh and operating costs increased by 7.6%, reaching Ch$ 83,187 million.
Operating Income
Table 38
Million US$ | Million Ch$ | ||||||
9M 06 | 9M 07 | 9M 06 | 9M 07 | Chg % | |||
Operating Revenues | 247 | 252 | 126,239 | 128,756 | 2.0% | ||
Operating Costs | (151) | (163) | (77,290) | (83,187) | (7.6%) | ||
Operating Margin | 96 | 89 | 48,948 | 45,569 | (6.9%) | ||
Selling and Administrative Expenses | (16) | (15) | (8,106) | (7,708) | 4.9% | ||
Operating Income | 80 | 74 | 40,843 | 37,861 | (7.3%) | ||
* Please take note that these figures could differ from those accounted under Peruvian GAAP. |
Additional Information
Table 39
Edegel | 9M06 | 9M07 | Var 06-07 | Chg % |
GWh Produced | 4.837 | 5.749 | 912 | 18,9% |
GWh Sold | 4.847 | 5.937 | 1.090 | 22,5% |
Market Share | 29,5% | 32,7% | - | 10,6% |
Edegel Financial Debt Maturity (with third party)
US$ 463 million
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DISTRIBUTION
EDELNOR
The company increased by 9.6% its operating income, reaching Ch$ 32,289 million, explained by higher energy demand and better sales margin. Higher demand increased physical sales by 7.3%, reaching 3,868 GWh as of September 2007. The number of clients increased in 37 thousand new customers. Energy losses decreased 0.1%, closing in 8.2% .
Operating Income
Table 40
Million US$ | Million Ch$ | ||||||
9M 06 | 9M 07 | 9M 06 | 9M 07 | Chg % | |||
Revenues from Sales | 313 | 294 | 160,263 | 150,552 | (6.1%) | ||
Other Operating Revenues | 13 | 22 | 6,854 | 11,195 | 63.4% | ||
Operating Revenues | 327 | 316 | 167,116 | 161,747 | (3.2%) | ||
Energy Purchases | (200) | (178) | (102,016) | (90,907) | 10.9% | ||
Other Operating Cost | (40) | (46) | (20,255) | (23,702) | (17.0%) | ||
Operating Costs | (239) | (224) | (122,271) | (114,608) | 6.3% | ||
Selling and Administrative Expenses | (30) | (29) | (15,385) | (14,850) | 3.5% | ||
Operating Income | 58 | 63 | 29,460 | 32,289 | 9.6% | ||
* Please take note that these figures could differ from those accounted under Peruvian GAAP. |
Additional Information
Table 41
Edelnor | 9M06 | 9M07 | Var 06-07 | Chg % |
Customers (Th) | 942 | 980 | 37 | 4.0% |
GWh Sold | 3,605 | 3,868 | 263 | 7.4% |
Clients/Employee | 1,728 | 1,798 | 70 | 4.1% |
Energy Losses % (9M) | 8.3% | 8.2% | - | (1.8%) |
Edelnor Financial Debt Maturity (with third party)
US$ 239 million
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PARTIALLY CONSOLIDATED INCOME STATEMENT
(Parent Company Nine Months 2007 Earnings Report)
UNDERCHILEANGAAP,MILLIONCH$
Table 42
3Q 06 | 3Q 07 | Var % | (in million Ch$ of 9M07) | 9M 06 | 9M 07 | Var % | ||||||
877 | 847 | (3.4%) | Gross Operating Margin | 2,663 | 2,588 | (2.8%) | ||||||
(4,365) | (4,098) | 6.1% | S&A Expenses | (13,285) | (13,591) | (2.3%) | ||||||
(3,488) | (3,251) | 6.8% | Operating Income | (10,622) | (11,002) | (3.6%) | ||||||
10,588 | 35,467 | 235.0% | Endesa | 89,768 | 73,922 | (17.7%) | ||||||
48,885 | 23,906 | (51.1%) | Chilectra | 204,889 | 67,142 | (67.2%) | ||||||
(12,178) | (4,253) | (65.1%) | Edesur | (11,524) | 5,373 | (146.6%) | ||||||
1,731 | (57) | (103.3%) | Edelnor | 2,358 | 4,564 | 93.6% | ||||||
2,921 | 2,125 | (27.3%) | Ampla | 9,410 | 826 | (91.2%) | ||||||
- | - | N/A | Coelce | - | - | N/A | ||||||
3,664 | 7,686 | 109.8% | Codensa | 15,066 | 9,256 | (38.6%) | ||||||
1,342 | 1,020 | (24.0%) | CAM LTDA | 2,957 | 3,761 | 27.2% | ||||||
850 | 3,627 | 326.8% | Inm Manso de Velasco | 2,675 | 6,464 | 141.6% | ||||||
(1,077) | 170 | 115.8% | Synapsis | 3 | 43 | 1590.1% | ||||||
5,788 | 9,973 | 72.3% | Endesa Brasil | 20,463 | 22,052 | 7.8% | ||||||
- | - | N/A | CGTF | - | - | N/A | ||||||
(1,775) | - | N/A | Other | (1,775) | - | (100.0%) | ||||||
60,739 | 79,665 | 31.2% | Net Income from Related Companies | 334,290 | 193,404 | (42.1%) | ||||||
9,400 | 10,658 | 13.4% | Interest Income | 33,294 | 27,553 | (17.2%) | ||||||
(14,523) | (13,231) | 8.9% | Interest Expense | (46,868) | (40,463) | 13.7% | ||||||
(5,123) | (2,573) | 49.8% | Net Financial Income (Expenses) | (13,573) | (12,909) | 4.9% | ||||||
1,314 | 4,475 | 240.5% | Other Non Operating Income | 5,009 | 8,530 | 70.3% | ||||||
(7,112) | (403) | 94.3% | Other Non Operating Expenses | (8,913) | (472) | 94.7% | ||||||
(5,798) | 4,072 | (170.2%) | Net other Non Operating Income (Expenses) | (3,904) | 8,058 | (306.4%) | ||||||
(1,624) | (5,615) | (245.7%) | Price Level Restatement | (2,117) | (6,220) | (193.8%) | ||||||
(2,493) | (7,583) | 204.2% | Foreign Exchange Effect | 4,856 | (10,254) | (311.2%) | ||||||
(4,118) | (13,199) | 220.5% | Net Monetary Exposure | 2,739 | (16,474) | (701.4%) | ||||||
(14,270) | (14,240) | 0.2% | Positive Goodwill Amortization | (42,859) | (42,818) | 0.1% | ||||||
31,430 | 53,725 | (70.9%) | Non Operating Income | 276,693 | 129,261 | (53.3%) | ||||||
27,942 | 50,474 | (80.6%) | Net Income before (1), (2) & (3) | 266,071 | 118,259 | (55.6%) | ||||||
(4,744) | 6,388 | (234.7%) | Income Tax (1) | (11,152) | 727 | (106.5%) | ||||||
10 | 9 | (10.1%) | Negative Goodwill Amortization (2) | 32 | 30 | (5.3%) | ||||||
- | - | N/A | Minority Interest (3) | - | - | N/A | ||||||
23,209 | 56,871 | (145.0%) | NET INCOME | 254,950 | 119,016 | (53.3%) | ||||||
0.71 | 1.74 | EPS (Ch$) | 7.81 | 3.65 | ||||||||
0.07 | 0.17 | EPADS (US$) | 0.76 | 0.36 | ||||||||
32,651,166 | 32,651,166 | Common Shares Outstanding (Th) | 32,651,166 | 32,651,166 | ||||||||
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UNDERCHILEANGAAP,THOUSANDUS$
Table 42.1
3Q 06 | 3Q 07 | Var % | (in thousand US$ of 9M07) | 9M 06 | 9M 07 | Var % | ||||||
1,715 | 1,657 | (3.4%) | Gross Operating Margin | 5,208 | 5,063 | (2.8%) | ||||||
(8,538) | (8,016) | 6.1% | S&A Expenses | (25,986) | (26,584) | (2.3%) | ||||||
(6,822) | (6,359) | 6.8% | Operating Income | (20,777) | (21,521) | (3.6%) | ||||||
20,711 | 69,376 | 235.0% | Endesa | 175,592 | 144,596 | (17.7%) | ||||||
95,623 | 46,762 | (51.1%) | Chilectra | 400,777 | 131,335 | (67.2%) | ||||||
(23,821) | (8,318) | (65.1%) | Edesur | (22,543) | 10,509 | (146.6%) | ||||||
3,386 | (111) | (103.3%) | Edelnor | 4,613 | 8,928 | 93.6% | ||||||
5,714 | 4,157 | (27.3%) | Ampla | 18,407 | 1,615 | (91.2%) | ||||||
- | - | N/A | Coelce | - | - | N/A | ||||||
7,167 | 15,035 | 109.8% | Codensa | 29,471 | 18,106 | (38.6%) | ||||||
2,625 | 1,996 | (24.0%) | CAM LTDA | 5,784 | 7,356 | 27.2% | ||||||
1,662 | 7,094 | 326.8% | Inm Manso de Velasco | 5,233 | 12,645 | 141.6% | ||||||
(2,107) | 332 | 115.8% | Synapsis | 5 | 85 | 1590.1% | ||||||
11,322 | 19,507 | 72.3% | Endesa Brasil | 40,027 | 43,136 | 7.8% | ||||||
- | - | N/A | CGTF | - | - | N/A | ||||||
(3,472) | - | N/A | Others | (3,472) | - | (100.0%) | ||||||
118,809 | 155,830 | 31.2% | Net Income from Related Companies | 653,893 | 378,311 | (42.1%) | ||||||
18,388 | 20,848 | 13.4% | Interest Income | 65,126 | 53,896 | (17.2%) | ||||||
(28,409) | (25,881) | 8.9% | Interest Expense | (91,677) | (79,148) | 13.7% | ||||||
(10,021) | (5,033) | 49.8% | Net Financial Income (Expenses) | (26,551) | (25,252) | 4.9% | ||||||
2,571 | 8,754 | 240.5% | Other Non Operating Income | 9,799 | 16,685 | 70.3% | ||||||
(13,912) | (789) | 94.3% | Other Non Operating Expenses | (17,434) | (923) | 94.7% | ||||||
(11,341) | 7,965 | (170.2%) | Net other Non Operating Income (Expenses) | (7,636) | 15,762 | (306.4%) | ||||||
(3,177) | (10,984) | (245.7%) | Price Level Restatement | (4,140) | (12,166) | (193.8%) | ||||||
(4,877) | (14,834) | 204.2% | Foreign Exchange Effect | 9,499 | (20,058) | (311.2%) | ||||||
(8,054) | (25,817) | 220.5% | Net Monetary Exposure | 5,359 | (32,224) | (701.4%) | ||||||
(27,913) | (27,855) | 0.2% | Positive Goodwill Amortization | (83,836) | (83,754) | 0.1% | ||||||
61,480 | 105,089 | (70.9%) | Non Operating Income | 541,230 | 252,843 | (53.3%) | ||||||
54,657 | 98,730 | (80.6%) | Net Income before (1), (2) & (3) | 520,452 | 231,322 | (55.6%) | ||||||
(9,279) | 12,495 | (234.7%) | Income Tax (1) | (21,814) | 1,423 | (106.5%) | ||||||
20 | 18 | (10.1%) | Negative Goodwill Amortization (2) | 62 | 59 | (5.3%) | ||||||
- | - | N/A | Minority Interest (3) | - | - | N/A | ||||||
45,398 | 111,243 | (145.0%) | NET INCOME | 498,700 | 232,803 | (53.3%) | ||||||
0.71 | 1.74 | EPS (Ch$) | 7.81 | 3.65 | ||||||||
0.07 | 0.17 | EPADS (US$) | 0.76 | 0.36 | ||||||||
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 SEPTEMBER 30,2007
TOTAL SHAREHOLDERS: 8,515
CONFERENCE CALL INVITATION
Enersis is pleased to inform you that it will hold a conference call to review its results for the period, on Wednesday, October 31st , 2007, at 11:00 AM EST (Eastern Standard Time) (12:00 PM Chilean time). To participate, please dial +1 (617) 213-4870 or +1 (888) 713-4218 (toll free USA), approximately 10 minutes prior to the scheduled start time, Pass code ID: 97071826.
The phone replay will be available between October 31st, 2007, and November 7 th, 2007, dialing 1+ (617) 801-6888 or +1 (888) 286-8010 (toll free USA) Pass code ID: 83276396.
For this Conference Call you can access before to the pre-registration site athttps://www.theconferencingservice.com/prereg/key.process?key=PX7YPVJL6 and make your registration quicker.
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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 | ||||||
Ignacio González | Denisse Labarca | Doris Saba | Carmen Poblete | |||
Investor Relations | Investor Relations | Investor Relations | Investor Relations | |||
Representative | Representative | Representative | Representative | |||
ijgr@e.enersis.cl | dla@e.enersis.cl | dsb@e.enersis.cl | cpt@e.enersis.cl | |||
56 (2) 353 4552 | 56 (2) 353 4492 | 56 (2) 353 4555 | 56 (2) 353 4447 | |||
Maria Luz Muñoz | ||||||
Investor Relations | ||||||
Assistant | ||||||
mlmr@e.enersis.cl | ||||||
56 (2) 353 4682 |
DISCLAIMER
This Press Release contains statements that could constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this announcement and include statements regarding the intent, belief or current expectations of Enersis and its management with respect to, among other things: (1) Enersis’ business plans; (2) Enersis’ cost-reduction plans; (3) trends affecting Enersis’ financial condition or results of operations, including market trends in the electricity sector in Chile or elsewhere; (4) supervision and regulation of the electricity sector in Chile or elsewhere; and (5) the future effect of any changes in the laws and regulations applicable to Enersis’ or its affiliates. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of various factors. These factors include a decline in the equity capital markets of the United States or Chile, an increase in the market rates of interest in the United States or elsewhere, adverse decisions by government regulators in Chile or elsewhere and other factors described in Enersis’ Annual Report on Form 20-F. Readers are cautioned not to place undue reliance on those forward-looking statements, which state only as of their dates. Enersis undertakes no obligation to release publicly the result of any revisions to these forward-looking statements.
Pg. 53
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: November 07, 2007