FORM 6-K
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of May, 2008
Commission File Number: 001-12440
ENERSIS S.A.
Santa Rosa 76
Santiago, Chile
Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F:
Form 20-F [X] Form 40-F [ ]
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes [ ] No [X]
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes [ ] No [X]
Indicate by check mark whether by furnishing the information
contained in this Form, the Registrant is also thereby furnishing the
information to the Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes [ ] No [X]
If °;Yes” is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): N/A
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ENERSIS ANNOUNCES CONSOLIDATED RESULTS FOR
THE FIRST QUARTER ENDED MARCH 31, 2008
HIGHLIGHTS FOR THEPERIOD
[All figures in Chilean Pesos]
ECONOMIC-FINANCIALSUMMARY
The most important topics as of March 2008, as compared with March 2007, may be summarized as follows:
• Net Income recorded 19.2%, reaching Ch$69,748 million.
• Operating Revenues grew by 5.6%, reaching Ch$1,224,601 million, explained by 12.1% higher operating revenues arising from our generation and transmission businesses, and 1.1% arising from our distribution business.
• Operating Income decreased by 11.2%, reaching Ch$339,657 million, due to a decrease in
Generation and Transmission | 4.5% | |
Distribution | 18.4% |
• If we compare in homogeneous terms and isolate the appreciation of the Chilean peso effect, which decreased Ch$101.5, from Ch$539.21 as of March 2007 to Ch$437.71 on March 2008, Operating Income would have increased a 1.6% .
SUMMARY OFDISTRIBUTIONBUSINESS
• Energy sales continue growing in the countries were we operate:
Chile | 0.4% | |
Argentina | 2.5% | |
Brazil | 2.8% | |
Colombia | 4.9% | |
Peru | 8.0% |
• Consolidated physical sales grew a 3.0% . Higher increases were shown by Edelnor, Coelce and Codensa.
• Distribution clients continue growing, this time reaching 406 thousand new clients. Higher increasing were in Coelce, Codensa and Edelnor.
• Energy losses –at the aggregate level- dropped from 11.1% to 10.4% . The largest such drop occurred in Ampla, Coelce and Codensa.
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• On March 11, 2008, the third bid of energy for distribution companies was made. It was done in two blocks, 1,800 GWh/year for years 2011 to 2021 and 1,500 GWh/year for years 2022 and 2023 and adjudged 1.8 TWh/ year at an average price of 65.8 US$/MWh.
• Tariff Revisions;
• Codensa, programmed for 2008.
• Edesur, programmed for 2008.
• Chilectra, programmed for November 2008.
• Coelce, programmed for April 2011.
• Ampla, programmed for March 2009.
SUMMARY OFGENERATIONBUSINESS
• Energy demand in those countries that we operate continued to grow, as follows:
Chile | 0.7% | |
Argentina | 3.8% | |
Brazil | 3.3% | |
Colombia | 1.6% | |
Peru | 9.4% |
• Our installed capacity expanded by 3.0%, from 13,726 to 14,182 MW; basically, because of the incorporation of San Isidro II, Palmucho, Canela and the generation of Taltal.
• Physical sales grew in Costanera, Edegel, Emgesa and Fortaleza.
• Chile’s National Energy Commission (CNE) published the node price for the SIC corresponding to the price-fixing of April 2008, which were 118.28 US$/MWh and 52.4 Ch$/kWh monomic price for the Alto Jahuel node 220, representing a 13.7% increase in US dollars and a 2.6% drop in Chilean pesos.
• Chile’s CNE published the node prices for the SING corresponding to the price fixing of April 2008, which were 115.9 US$/MWh and 51.3 Ch$/kWh monomic price for the Crucero 220 node, representing a 0% US dollar price hike and an 8% drop in Chilean pesos.
• On April 1, 2008 was issued the Law 20,257 that stimulates the use of non-conventional renewable energies (ERNC). The main objective of this law is to force generators that at least a 5% of their contracted energy must come from non-conventional renewable sources, between years 2010 and 2014, increasing progressively in annual 0,5% from the 2015 to year 2024, when it reaches a 10%.
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TABLE OFCONTENTS
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GENERALINFORMATION
(Santiago, Chile, April 25, 2008) Enersis S.A. (NYSE: ENI), announced today its consolidated financial results for the first quarter ended on March 31, 2008. All figures are in both US$ and Ch$, under Chilean Generally Accepted Accounting Principles (Chilean GAAP), as seen in the standardized form required by Chilean authorities (FECU). Variations refer to the period between March 31, 2007 and March 31, 2008. Figures for 2008 have been adjusted by the accounting convention for CPI variation between both periods, accounting to 8.1% .
Any figures in US$ are merely offered as a convenience translation, using theobservado exchange rate of Ch$437.71 = US$1 for March 31, 2008. The Chilean pesos appreciated by 18.8% against the US$ between March 31, 2007 and the comparable date in 2008.
The consolidation includes the following investment vehicles and companies,
a) In Chile: Endesa Chile (NYSE: EOC)*, Chilectra, Synapsis, CAM and Inmobiliaria Manso de Velasco.
b) Outside Chile: Distrilima (Peru), Endesa Brasil (Brazil)**, Edesur (Argentina) and Codensa (Colombia).
In the following pages you will find a detailed analysis of financial statements, a brief explanation for most variations, and comments on main items in the Income and Cash Flow Statements compared to the information as of March 2007.
* Includes its Chilean subsidiaries (Celta, Pangue, Pehuenche, San Isidro, Tunel El Melon) and Costanera, El Chocón, Edegel.
** Includes Endesa Fortaleza, CIEN, Cachoeira Dourada, Ampla and Coelce.
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SIMPLIFIEDORGANIZATIONALSTRUCTURE
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MARKETINFORMATION
EQUITYMARKET
New York Stock Exchange (NYSE)
During the period, the company’s ADS stock price raised 7.5% . The chart below presents the performance of Enersis’ ADS stock price listing in NYSE (“ENI”) against Dow Jones and the DJ Utilities Index:
![](https://capedge.com/proxy/6-K/0001292814-08-001352/fp07.gif)
Source: Bloomberg
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Bolsa de Comercio de Santiago (BCS)
The chart below presents the performance of the Enersis’ Chilean stock price during the last 12 months compared to Chilean Stock Index:
![](https://capedge.com/proxy/6-K/0001292814-08-001352/fp08.gif)
Source: Bloomberg
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Madrid Stock Exchange (Latibex)
The chart below illustrates the Enersis’ share price at the Madrid Stock Exchange, (Latibex) over the last 12 months compared with the Local Stock Index:
![](https://capedge.com/proxy/6-K/0001292814-08-001352/fp09.gif)
Source: Bloomberg
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MARKETPERCEPTION
The chart below summarizes the ADS´ target price released by analysts.
Table 1
Publication Date | Company | Main Analyst | Target Price | Recommendation | ||||
US$ | ||||||||
01/Oct/07 | Penta Inversiones | Jorge Palavecino | 22.5 | Neutral (3) | ||||
11/Oct/07 | UBS | Brian Chase | 20.2 | Neutral (4) | ||||
12/Oct/07 | Banchile (1) | Sergio Zapata | 21.5 | Buy | ||||
26/Oct/07 | Larrain Vial | Jorge Donoso | 24.4 | Overweight | ||||
30/Oct/07 | Deutsche Bank | Marcus Sequeira | 23.0 | Buy | ||||
30/Oct/07 | Bear Stearns | Rowe Michels | 19.0 | Peer Perform (5) | ||||
10/Dec/07 | Alfa Corredores (2) | Lorena Pizarro | 23.4 | Buy | ||||
06/Feb/08 | Merrill Lynch | Frank McGann | 22.0 | Buy | ||||
26/Feb/08 | Raymond James | Ricardo Cavanagh | 20.8 | Buy | ||||
27/Mar/08 | Santander | Diego Celedón | 23.5 | Buy | ||||
ADR average target price (US$) | 22.0 | |||||||
(1) The analyst used an exchange rate of Ch$535 forecasted by Banchile for the end of year 2008.
(2) We used an exchange rate of Ch$497 as of report´s date
(3) Target price differ between -8% & 8% from real price.
(4) Target price differ between -6% & 6% from real price.
(5) Stock is supposed to perform in line with estimation
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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RISKRATINGCLASSIFICATION
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 Credit Watch 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.”
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.”
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.”
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 Chile: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$) | 03M 07 | 03M 08 | Var 07-08 | Chg % | ||||
Revenues from Generation & Transmission | 485,229 | 543,854 | 58,625 | 12.1% | ||||
Revenues from Distribution | 760,919 | 769,016 | 8,097 | 1.1% | ||||
Revenues from Engineering and Real Estate | 9,892 | 9,954 | 62 | 0.6% | ||||
Revenues from Other Businesses | 42,457 | 42,215 | (242) | (0.6%) | ||||
Consolidation Adjustments | (138,791) | (140,438) | (1,647) | (1.2%) | ||||
Operating Revenues | 1,159,706 | 1,224,601 | 64,895 | 5.6% | ||||
Costs from Generation | (267,790) | (338,652) | (70,862) | (26.5%) | ||||
Costs from Distribution | (534,822) | (578,452) | (43,630) | (8.2%) | ||||
Costs from Engineering and Real Estate | (7,729) | (7,753) | (24) | (0.3%) | ||||
Costs from Other Businesses | (36,017) | (34,625) | 1,392 | 3.9% | ||||
Consolidation Adjustments | 131,987 | 135,053 | 3,066 | 2.3% | ||||
Operating Costs | (714,371) | (824,429) | (110,058) | (15.4%) | ||||
Operating Margin | 445,335 | 400,172 | (45,163) | (10.1%) | ||||
SG&A from Generation | (13,444) | (10,341) | 3,103 | 23.1% | ||||
SG&A from Distribution | (47,594) | (44,999) | 2,595 | 5.5% | ||||
SG&A from Engineering and Real Estate | (853) | (1,011) | (158) | (18.5%) | ||||
SG&A from Other Businesses | (9,676) | (11,150) | (1,474) | (15.2%) | ||||
Consolidation Adjustments | 8,644 | 6,986 | (1,658) | (19.2%) | ||||
Selling and Administrative Expenses | (62,923) | (60,515) | 2,408 | 3.8% | ||||
Operating Income | 382,412 | 339,657 | (42,755) | (11.2%) | ||||
Interest Income | 29,494 | 30,074 | 580 | 2.0% | ||||
Interest Expense | (115,519) | (90,309) | 25,210 | 21.8% | ||||
Net Interest (Expense) | (86,025) | (60,235) | (25,790) | 30.0% | ||||
Equity Gains from Related Companies | 715 | 4,202 | 3,487 | 487.8% | ||||
Equity Losses from Related Companies | (2,224) | (419) | 1,805 | 81.2% | ||||
Net Income from Related Companies | (1,509) | 3,783 | 5,292 | N/A | ||||
Other Non Operating Income | 57,262 | 24,724 | (32,538) | (56.8%) | ||||
Other Non Operating Expenses | (103,126) | (123,046) | (19,920) | (19.3%) | ||||
Net other Non Operating Income (Expense) | (45,864) | (98,322) | (52,458) | (114.4%) | ||||
Price Level Restatement | (144) | (4,592) | (4,448) | N/A | ||||
Foreign Exchange Effect | 200 | (1,834) | (2,034) | (1017.0%) | ||||
Net of Monetary Exposure | 56 | (6,426) | (6,482) | N/A | ||||
Positive Goodwill Amortization | (15,127) | (15,062) | 65 | 0.4% | ||||
Non Operating Income | (148,469) | (176,262) | (27,793) | (18.7%) | ||||
Net Inc b. Taxes, Min Int and Neg Goodwill Amort. | 233,943 | 163,395 | (70,548) | (30.2%) | ||||
Extraordinary Items | - | - | - | - | ||||
Income Tax | (105,556) | (55,936) | 49,620 | 47.0% | ||||
Minority Interest | (71,080) | (38,721) | 32,359 | 45.5% | ||||
Negative Goodwill Amortization | 1,219 | 1,010 | (209) | 17.2% | ||||
NET INCOME | 58,526 | 69,748 | 11,222 | 19.2% | ||||
EBITDA | 501,615 | 442,294 | (59,321) | (11.8%) | ||||
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UNDERCHILEANGAAP, THOUSANDUS$
Table 2.1
CONS. INCOME STATEMENT - (thousand US$) | 03M 07 | 03M 08 | Var 07-08 | Chg % | ||||
Revenues from Generation & Transmission | 1,108,562 | 1,242,499 | 133,937 | 12.1% | ||||
Revenues from Distribution | 1,738,408 | 1,756,908 | 18,500 | 1.1% | ||||
Revenues from Engineering and Real Estate | 22,599 | 22,742 | 143 | 0.6% | ||||
Revenues from Other Businesses | 96,999 | 96,445 | (554) | (0.6%) | ||||
Consolidation Adjustments | (317,084) | (320,846) | (3,762) | (1.2%) | ||||
Operating Revenues | 2,649,485 | 2,797,745 | 148,260 | 5.6% | ||||
Costs from Generation | (611,798) | (773,691) | (161,893) | (26.5%) | ||||
Costs from Distribution | (1,221,864) | (1,321,542) | (99,678) | (8.2%) | ||||
Costs from Engineering and Real Estate | (17,658) | (17,713) | (55) | (0.3%) | ||||
Costs from Other Businesses | (82,284) | (79,104) | 3,180 | 3.9% | ||||
Consolidation Adjustments | 301,539 | 308,545 | 7,006 | 2.3% | ||||
Operating Costs | (1,632,065) | (1,883,505) | (251,440) | (15.4%) | ||||
Operating Margin | 1,017,420 | 914,241 | (103,179) | (10.1%) | ||||
SG&A from Generation | (30,715) | (23,624) | 7,091 | 23.1% | ||||
SG&A from Distribution | (108,734) | (102,806) | 5,928 | 5.5% | ||||
SG&A from Engineering and Real Estate | (1,949) | (2,310) | (361) | (18.5%) | ||||
SG&A from Other Businesses | (22,107) | (25,473) | (3,366) | (15.2%) | ||||
Consolidation Adjustments | 19,749 | 15,960 | (3,789) | (19.2%) | ||||
Selling and Administrative Expenses | (143,755) | (138,254) | 5,501 | 3.8% | ||||
Operating Income | 873,665 | 775,987 | (97,678) | (11.2%) | ||||
Interest Income | 67,382 | 68,707 | 1,325 | 2.0% | ||||
Interest Expense | (263,916) | (206,322) | 57,594 | 21.8% | ||||
Net Interest (Expense) | (196,533) | (137,615) | 58,918 | 30.0% | ||||
Equity Gains from Related Companies | 1,633 | 9,600 | 7,967 | 487.8% | ||||
Equity Losses from Related Companies | (5,081) | (958) | 4,123 | 81.2% | ||||
Net Income from Related Companies | (3,448) | 8,643 | 12,091 | N/A | ||||
Other Non Operating Income | 130,821 | 56,485 | (74,336) | (56.8%) | ||||
Other Non Operating Expenses | (235,604) | (281,113) | (45,509) | (19.3%) | ||||
Net other Non Operating Income (Expense) | (104,783) | (224,628) | (119,845) | (114.4%) | ||||
Price Level Restatement | (330) | (10,490) | (10,160) | N/A | ||||
Foreign Exchange Effect | 457 | (4,190) | (4,647) | (1017.0%) | ||||
Net of Monetary Exposure | 127 | (14,680) | (14,807) | N/A | ||||
Positive Goodwill Amortization | (34,558) | (34,410) | 148 | 0.4% | ||||
Non Operating Income | (339,196) | (402,691) | (63,495) | (18.7%) | ||||
Net Inc b. Taxes, Min Int and Neg Goodwill Amort. | 534,469 | 373,296 | (161,173) | (30.2%) | ||||
Extraordinary Items | - | - | - | - | ||||
Income Tax | (241,155) | (127,792) | 113,363 | 47.0% | ||||
Minority Interest | (162,391) | (88,464) | 73,927 | 45.5% | ||||
Negative Goodwill Amortization | 2,786 | 2,309 | (477) | 17.2% | ||||
NET INCOME | 133,710 | 159,349 | 25,639 | 19.2% | ||||
EBITDA | 1,145,998 | 1,010,472 | (135,526) | (11.8%) | ||||
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CONSOLIDATEDINCOMESTATEMENTANALYSIS
(Source in Ch$ FECU)
NETINCOME
Enersis’ result for the first quarter of the year 2008 was Ch$69,748 million, which is 19.2% higher than that obtained during equal period of the previous year and whose result amounted to Ch$58,526 million.
OPERATINGINCOME
The operating income as of March 31, 2008 dropped by Ch$42,755 million, from Ch$382,412 million as of March 31, 2007 to Ch$339,657 million in the current period showing a drop of 11.0% . It is important to mention that the comparison of the operating income between both years is heavily impacted by the greater appreciation of the Chilean peso against the US dollar and of the other currencies of those countries where we have investments, added to the steep updating of last year’s figures for comparative purposes; which was 8.1% .
If we compare in homogeneous terms and isolate the appreciation of the Chilean peso effect, which decreased Ch$101.5, from Ch$539.21 as of March 2007 to Ch$437.71 on March 2008, Operating Income would have increased a 1.6%.
Table 4
03M 07 | 03M 06 | |||||||||||||||
Million Ch$ | Operating Revenues | Operating Costs | SG & A | Operating Income | Operating Revenues | Operating Costs | SG& A | Operating Income | ||||||||
Endesa Chile | 426,372 | (231,065) | (10,910) | 184,397 | 480,560 | (317,050) | (8,464) | 155,046 | ||||||||
Cachoeira (*) | 20,617 | (8,318) | (812) | 11,487 | 54,192 | (9,801) | (583) | 43,808 | ||||||||
Fortaleza (**) | 27,038 | (14,715) | (350) | 11,973 | 40,157 | (38,441) | (399) | 1,317 | ||||||||
Cien (**) | 28,331 | (29,354) | (1,469) | (2,492) | 1,535 | (4,469) | (942) | (3,876) | ||||||||
Chilectra | 194,950 | (149,914) | (11,272) | 33,764 | 253,656 | (215,670) | (10,558) | 27,428 | ||||||||
Edesur | 84,761 | (68,508) | (10,334) | 5,919 | 67,769 | (51,874) | (9,048) | 6,847 | ||||||||
Distrilima (Edelnor) | 60,734 | (42,785) | (5,303) | 12,646 | 53,118 | (35,844) | (4,516) | 12,758 | ||||||||
Ampla | 163,002 | (105,795) | (6,200) | 51,007 | 151,998 | (105,608) | (6,567) | 39,823 | ||||||||
Investluz (Coelce) | 122,454 | (74,138) | (10,407) | 37,909 | 108,654 | (80,046) | (9,929) | 18,679 | ||||||||
Codensa | 135,019 | (93,682) | (4,048) | 37,289 | 133,822 | (89,410) | (4,362) | 40,050 | ||||||||
CAM Ltda. | 26,884 | (23,295) | (2,656) | 933 | 28,227 | (24,709) | (3,226) | 292 | ||||||||
Inmobiliaria Manso de Velasco Ltda. | 1,967 | (1,421) | (576) | (30) | 1,767 | (1,269) | (717) | (219) | ||||||||
Synapsis Soluciones y Servicios IT Ltda. | 14,301 | (11,574) | (2,174) | 553 | 12,720 | (9,516) | (1,768) | 1,436 | ||||||||
Enersis Holding and other investment vehicles | 1,272 | (1,147) | (4,814) | (4,689) | 1,267 | (400) | (6,138) | (5,271) | ||||||||
Consolidation Adjustments | (147,996) | 141,340 | 8,402 | 1,746 | (164,841) | 159,678 | 6,702 | 1,539 | ||||||||
Total Consolidation | 1,159,706 | (714,371) | (62,923) | 382,412 | 1,224,601 | (824,429) | (60,515) | 339,657 | ||||||||
Table 4.1
03M 07 | 03M 08 | |||||||||||||||
Thousand US$ | Operating Revenues | Operating Costs | SG & A | Operating Income | Operating Revenues | Operating Costs | SG& A | Operating Income | ||||||||
Endesa Chile | 974,097 | (527,896) | (24,925) | 421,276 | 1,097,895 | (724,339) | (19,338) | 354,219 | ||||||||
Cachoeira (*) | 47,103 | (19,004) | (1,856) | 26,242 | 123,809 | (22,392) | (1,332) | 100,085 | ||||||||
Fortaleza (**) | 61,772 | (33,618) | (799) | 27,355 | 91,743 | (87,824) | (911) | 3,008 | ||||||||
Cien (**) | 64,726 | (67,064) | (3,357) | (5,694) | 3,506 | (10,209) | (2,151) | (8,854) | ||||||||
Chilectra | 445,386 | (342,497) | (25,751) | 77,138 | 579,508 | (492,723) | (24,122) | 62,663 | ||||||||
Edesur | 193,645 | (156,514) | (23,610) | 13,521 | 154,827 | (118,513) | (20,671) | 15,644 | ||||||||
Distrilima (Edelnor) | 138,755 | (97,748) | (12,116) | 28,891 | 121,353 | (81,891) | (10,318) | 29,145 | ||||||||
Ampla | 372,397 | (241,701) | (14,164) | 116,532 | 347,258 | (241,275) | (15,003) | 90,980 | ||||||||
Investluz (Coelce) | 279,761 | (169,376) | (23,775) | 86,609 | 248,232 | (182,875) | (22,684) | 42,674 | ||||||||
Codensa | 308,467 | (214,027) | (9,248) | 85,192 | 305,732 | (204,268) | (9,966) | 91,498 | ||||||||
CAM Ltda. | 61,419 | (53,221) | (6,068) | 2,131 | 64,488 | (56,451) | (7,371) | 665 | ||||||||
Inmobiliaria Manso de Velasco Ltda. | 4,495 | (3,246) | (1,317) | (68) | 4,038 | (2,900) | (1,638) | (501) | ||||||||
Synapsis Soluciones y Servicios IT Ltda. | 32,671 | (26,443) | (4,968) | 1,261 | 29,061 | (21,740) | (4,038) | 3,283 | ||||||||
Enersis Holding and other investment vehicles | 2,906 | (2,622) | (10,998) | (10,714) | 2,896 | (913) | (14,024) | (12,041) | ||||||||
Consolidation Adjustments | (338,114) | 322,908 | 19,195 | 3,989 | (376,598) | 364,802 | 15,311 | 3,516 | ||||||||
Total Consolidation | 2,649,485 | (1,632,069) | (143,756) | 873,660 | 2,797,749 | (1,883,510) | (138,256) | 775,982 | ||||||||
(*) 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
As of March 31, 2008, Enersis shows a non-operating income loss amounting to Ch$176,262 million, which represents increased losses of Ch$27,793 million, with respect to the non-operating loss obtained as of the same date of 2007, which amounted to Ch$148,469 million.
Net interest expensesdecreased 30.0%, or Ch$25,790 million, from a net expense of Ch$86.025 million as of March 2007, to a net expense of Ch$60.235 million in the current period. The decrease is mainly attributable to a lower average interest rate and the impact of foreign exchange rate in the financial expenses of –principally- Endesa Chile, Ampla and Coelce. Likewise, our subsidiary Edesur -during this period- reduced its interest payments by Ch$5,728 million by bringing penalties up to date regarding quality of service.
Net profits from investments in related companies show an increase of Ch$5,292 million, after accounting a net loss of Ch$1,509 million during the first quarter of the year 2007, to a net profit of Ch$3,783 million in March 2008. This benefit is mainly due to the accounting of the profit obtained in Gas Atacama Holding of Ch$2,983 million (a loss of Ch$1,633 million as of March 2007).
Amortization on positive goodwill does not show significant variations and amounted to Ch$15,062 million as of March 31, 2008, a drop of Ch$65 million, equivalent to 0.4% compared with the same period of 2007.
Net other non-operating revenues and expensesaccounted an increase in losses of Ch$52,458 million compared to a net loss of Ch$45.864 million as of March 2007. Main reasons that explain such variation in the results are:
• Higher net losses of Ch$47,546 million, originating from the conversion adjustment to Chilean accounting rules (Technical Bulletin N°64) mainly of the subsidiaries in Brazil, Colombia and Peru (Ch$6,655 million, net of minority holders).
• A lower profit -on account of the tariff adjustment of previous years in Edesur- amounting to Ch$30.233 million, acknowledged in March 2007.
The foregoing was partially offset by:
• Lower expense on account of Equity Taxes in Colombia, of Ch$12,965 million.
• Profit on account of a capacity re-settlement in Chile, of Ch$6,586 million.
• Lower expenses on account of penalties & fines, of Ch$6,551 million, in CIEN and CGTF.
Price-level restatementshows a negative variation of Ch$4,448 million, which is mostly attributable to the higher inflation effect during the first quarter of the year 2008 which reached 0.8%, as compared with 0.2% during the same period of last year. Such variation impacts non-monetary assets & liabilities and certain monetary ones, mainly UF-denominated bonds, as well as the updating of profit & loss accounts.
Foreign Exchange difference as of March 31, 2008 accounted a negative variation of Ch$2,034 million, from a profit of Ch$200 million during the first quarter of the year 2007 to a loss of Ch$1,834 million in the current period. The foregoing is the result of a mismatched position in US dollars of assets owned by the company during both periods, and also due to variations of the US dollar parity with the Chilean peso. Thus, during the first quarter of the year 2007, the foreign exchange rate increased $6.82 pesos, from $532.39 to $539.21, as opposed to this period in which the foreign exchange rate dropped by $59.18 pesos, from $496.89 to $437.71.
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Income tax and Deferred taxduring the first quarter of 2008 were Ch$55,936 million; which, when compared to the Ch$105,556 million of 2007’s first quarter, results in a positive variation of Ch$49,620 million.
Income tax, expenses accounted Ch$34,741 million, mainly explained by lower income tax provision in our subsidiaries: Endesa Chile Ch$16,251 million, Coelce Ch$8,443 million, Edesur Ch$8,152 million, Cien Ch$8,014 million and CGTF Ch$3,170, partially offset by increments in Ampla Ch$6,447 million, Pehuenche Ch$3,796 million and Codensa Ch$3,081 million.
Deferred taxes, which do not represent cash flows- show a positive variation of Ch$14,879 million, originating mostly from the acknowledged effect on Enersis Ch$12,108 million, on Ampla Ch$8,249 million, on Chilectra Ch$7,658 million and on Coelce Ch$5,966 million, partially offset by Cien Ch$9,049 million, San Isidro Ch$4,930 million, Endesa Chile Ch$2,296 million and Edegel Ch$2,152 million.
Amortization on negative goodwill amounted to Ch$1,010 million as of March 31, 2008, which does not present any significant variations with respect to the same period of last year, in which it amounted to Ch$1,219 million.
Minority interest decreased by Ch$32,359 million, reaching Ch$38,721 million, as a result of a decrease in some of our subsidiaries’ results. Emgesa decreased by Ch$14,262 million, Codensa Ch$9,915 million, Edegel Ch$8,766 million, Edelnor Ch$5,019 million and Edesur Ch$4,304 million. These negative results were partially offset by increases at Endesa Chile by Ch$9,572 million, Endesa Brazil Ch$9,075 million and Pehuenche by Ch$1,362 million.
EVOLUTIONOFKEYFINANCIALRATIOS
Table 5
Indicator | Unit | 03M 07 | 03M 08 | Var 07-08 | Chg % | |||||
Liquidity | Times | 1.26 | 1.28 | 0.02 | 1.6% | |||||
Acid ratio test * | Times | 1.18 | 1.19 | 0.01 | 0.8% | |||||
Working capital | million Ch$ | 428,254 | 466,313 | 38,059 | 8.9% | |||||
Working capital | th. US$ | 978,396 | 1,065,346 | 86,950 | 8.9% | |||||
Leverage ** | Times | 0.96 | 1.01 | 0.05 | 5.2% | |||||
Short-term debt | % | 0.27 | 0.31 | 0.04 | 14.8% | |||||
Long-term debt | % | 0.73 | 0.69 | (0.04) | (5.5%) | |||||
Interest Coverage*** | Times | 4.59 | 5.20 | 0.61 | 13.3% | |||||
EBITDA**** | th. US$ | 1,145,998 | 1,010,472 | (135,526) | (11.8%) | |||||
ROE | % | 7.36% | 9.64% | 2.28% | 31.0% | |||||
ROA | % | 1.92% | 2.60% | 0.68% | 35.4% | |||||
* 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 ratioas of March 2008 is 1.28x, which represents an increase of 1.6%, compared to the same date of 2007. This reflects a company with solid liquidity position to fulfill its financial obligations, finance its investments with cash surplus, having an adequate maturity schedule of its debt.
Leverage was 1.01 times as of March 31, 2008, increasing its level by 5.2% when compared to the same period of the year 2007
Hedging of financial expensesincreased 0.61 times or the equivalent to 13.3%, growing from 4.59x, in March 2007, to 5.20x in the current period. The foregoing is the result of an increase of the results obtained by the Enersis Group in the current period, added to the reduction in financial expenses.
ROE is 9.64%, which is compared positively against previous year figure of 7.36% . This increase is directly related to better results obtained in the period.
ROA went from 1.92% in March 2007, to 2.60% in March 2008, reflecting the best results obtained in the current period and the reduction of those assets that are US dollars denominated.
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CONSOLIDATEDBALANCESHEET
ASSETSUNDERCHILEANGAAP,MILLIONCH$
Table 6
ASSETS - (million Ch$) | 03M 07 | 03M 08 | Var 07-08 | Chg % |
CURRENT ASSETS | ||||
Cash | 54,697 | 40,332 | (14,365) | (26.3%) |
Time deposits | 373,216 | 379,586 | 6,370 | 1.7% |
Marketable securities | 19,105 | 5,616 | (13,490) | (70.6%) |
Accounts receivable, net | 994,098 | 889,030 | (105,068) | (10.6%) |
Notes receivable, net | 8,736 | 12,355 | 3,619 | 41.4% |
Other accounts receivable, net | 116,179 | 88,236 | (27,942) | (24.1%) |
Amounts due from related companies | 25,994 | 147,285 | 121,291 | 466.6% |
Inventories | 84,359 | 92,492 | 8,134 | 9.6% |
Income taxes recoverable | 79,533 | 142,720 | 63,187 | 79.4% |
Prepaid expenses | 55,706 | 62,965 | 7,258 | 13.0% |
Deferred income taxes | 60,774 | 67,896 | 7,121 | 11.7% |
Other current assets | 173,815 | 202,278 | 28,463 | 16.4% |
Total currrent assets | 2,046,212 | 2,130,790 | 84,578 | 4.1% |
PROPERTY, PLANT AND EQUIPMENT | ||||
Land | 145,350 | 129,769 | (15,581) | (10.7%) |
Buildings and infraestructure and works in progress | 12,163,407 | 10,643,888 | (1,519,519) | (12.5%) |
Machinery and equipment | 2,214,289 | 1,776,714 | (437,575) | (19.8%) |
Other plant and equipment | 642,497 | 543,145 | (99,352) | (15.5%) |
Technical appraisal | 34,008 | 33,878 | (130) | (0.4%) |
Sub - Total | 15,199,552 | 13,127,394 | (2,072,159) | (13.6%) |
Accumulated depreciation | (6,388,362) | (5,710,003) | 678,359 | 10.6% |
Total property, plant and equipment | 8,811,190 | 7,417,391 | (1,393,799) | (15.8%) |
OTHER ASSETS | ||||
Investments in related companies | 126,068 | 50,028 | (76,040) | (60.3%) |
Investments in other companies | 26,394 | 20,596 | (5,798) | (22.0%) |
Positive goodwill, net | 694,622 | 629,291 | (65,331) | (9.4%) |
Negative goodwill, net | (48,311) | (31,941) | 16,370 | 33.9% |
Long-term receivables | 157,163 | 188,794 | 31,631 | 20.1% |
Amounts due from related companies | 99,110 | 2,589 | (96,521) | (97.4%) |
Deferred income taxes | 11,014 | - | (11,014) | - |
Intangibles | 100,598 | 88,079 | (12,519) | (12.4%) |
Accumulated amortization | (61,797) | (56,365) | 5,432 | 8.8% |
Others assets | 305,010 | 255,928 | (49,082) | (16.1%) |
Total other assets | 1,409,872 | 1,146,999 | (262,873) | (18.6%) |
TOTAL ASSETS | 12,267,274 | 10,695,180 | (1,572,094) | (12.8%) |
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ASSETSUNDERCHILEANGAAP,THOUSANDUS$
Table 6.1
ASSETS - (thousand US$) | 03M 07 | 03M 08 | Var 07-08 | Chg % |
CURRENT ASSETS | ||||
Cash | 124,961 | 92,143 | (32,818) | (26.3%) |
Time deposits | 852,657 | 867,209 | 14,552 | 1.7% |
Marketable securities | 43,648 | 12,829 | (30,819) | (70.6%) |
Accounts receivable, net | 2,271,133 | 2,031,093 | (240,040) | (10.6%) |
Notes receivable, net | 19,959 | 28,226 | 8,267 | 41.4% |
Other accounts receivable, net | 265,424 | 201,586 | (63,838) | (24.1%) |
Amounts due from related companies | 59,386 | 336,490 | 277,104 | 466.6% |
Inventories | 192,727 | 211,310 | 18,583 | 9.6% |
Income taxes recoverable | 181,703 | 326,062 | 144,359 | 79.4% |
Prepaid expenses | 127,268 | 143,850 | 16,582 | 13.0% |
Deferred income taxes | 138,846 | 155,116 | 16,270 | 11.7% |
Other current assets | 397,101 | 462,127 | 65,026 | 16.4% |
Total currrent assets | 4,674,812 | 4,868,040 | 193,228 | 4.1% |
PROPERTY, PLANT AND EQUIPMENT | ||||
Land | 332,070 | 296,472 | (35,598) | (10.7%) |
Buildings and infraestructure and works in progress | 27,788,736 | 24,317,215 | (3,471,521) | (12.5%) |
Machinery and equipment | 5,058,803 | 4,059,112 | (999,691) | (19.8%) |
Other plant and equipment | 1,467,861 | 1,240,878 | (226,983) | (15.5%) |
Technical appraisal | 77,696 | 77,398 | (298) | (0.4%) |
Sub - Total | 34,725,166 | 29,991,076 | (4,734,090) | (13.6%) |
Accumulated depreciation | (14,594,966) | (13,045,173) | 1,549,793 | 10.6% |
Total property, plant and equipment | 20,130,200 | 16,945,903 | (3,184,297) | (15.8%) |
OTHER ASSETS | ||||
Investments in related companies | 288,017 | 114,295 | (173,722) | (60.3%) |
Investments in other companies | 60,300 | 47,053 | (13,247) | (22.0%) |
Positive goodwill, net | 1,586,946�� | 1,437,690 | (149,256) | (9.4%) |
Negative goodwill, net | (110,372) | (72,973) | 37,399 | 33.9% |
Long-term receivables | 359,057 | 431,322 | 72,265 | 20.1% |
Amounts due from related companies | 226,428 | 5,914 | (220,514) | (97.4%) |
Deferred income taxes | 25,163 | - | (25,163) | - |
Intangibles | 229,828 | 201,227 | (28,601) | (12.4%) |
Accumulated amortization | (141,183) | (128,772) | 12,411 | 8.8% |
Others assets | 696,831 | 584,697 | (112,134) | (16.1%) |
Total other assets | 3,221,016 | 2,620,454 | (600,562) | (18.6%) |
TOTAL ASSETS | 28,026,029 | 24,434,397 | (3,591,632) | (12.8%) |
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LIABILITIES ANDSHAREHOLDERSEQUITYUNDERCHILEANGAAP,MILLIONCH$
Table 7
LIABILITIES AND SHAREHOLDER´S EQUITY - (million Ch$) | 03M 07 | 03M 08 | Var 07-08 | Chg % |
CURRENT LIABILITIES | ||||
Short-term debt due to banks and financial institutions | 150,499 | 173,041 | 22,542 | 15.0% |
Current portion of long-term debt due to banks and financial institutions | 154,659 | 110,883 | (43,776) | (28.3%) |
Current portion of bonds payable | 256,141 | 329,774 | 73,634 | 28.7% |
Current portion of long-term notes payable | 45,639 | 31,071 | (14,569) | (31.9%) |
Dividends payable | 38,575 | 115,853 | 77,278 | 200.3% |
Accounts payable | 419,725 | 442,989 | 23,265 | 5.5% |
Short-term notes payable | 12,394 | 13,471 | 1,077 | 8.7% |
Miscellaneous payables | 118,816 | 86,608 | (32,207) | (27.1%) |
Accounts payable to related companies | 32,662 | 31,595 | (1,067) | (3.3%) |
Accrued expenses | 77,706 | 76,260 | (1,446) | (1.9%) |
Withholdings | 117,424 | 90,252 | (27,173) | (23.1%) |
Income taxes payable | 105,892 | 27,298 | (78,594) | (74.2%) |
Anticipated income | 3,931 | 6,354 | 2,423 | 61.6% |
Reinbursable financial contribution | 945 | 1,482 | 537 | 56.8% |
Other current liabilities | 82,950 | 127,545 | 44,595 | 53.8% |
Total current liabilities | 1,617,958 | 1,664,477 | 46,519 | 2.9% |
LONG-TERM LIABILITIES | ||||
Due to banks and financial institutions | 1,086,537 | 933,298 | (153,239) | (14.1%) |
Bonds payable | 2,352,309 | 1,887,512 | (464,797) | (19.8%) |
Long -term notes payable | 121,693 | 97,363 | (24,330) | (20.0%) |
Accounts payables | 164,701 | 142,772 | (21,929) | (13.3%) |
Amounts payable to related companies | 12,317 | 7,190 | (5,128) | (41.6%) |
Accrued expenses | 376,361 | 307,755 | (68,607) | (18.2%) |
Deferred income taxes | - | 30,700 | 30,700 | - |
Reinbursable financial contribution | 3,251 | 4,251 | 1,001 | 30.8% |
Other long-term liabilities | 265,782 | 304,952 | 39,170 | 14.7% |
Total long-term liabilities | 4,382,953 | 3,715,794 | (667,159) | (15.2%) |
Minority interest | 3,088,018 | 2,426,260 | (661,758) | (21.4%) |
SHAREHOLDERS´ EQUITY | ||||
Paid-in capital, no par value | 2,610,922 | 2,594,015 | (16,907) | (0.6%) |
Additional paid-in capital | 5,222 | 20,752 | 15,530 | 297.4% |
Additional paid-in capital (share premium) | 186,438 | 186,340 | (98) | (0.1%) |
Other reserves | (246,892) | (546,510) | (299,618) | 121.4% |
Total capital and reserves | 2,555,691 | 2,254,598 | (301,093) | (11.8%) |
Retained earnings | 564,325 | 564,303 | (22) | (0.0%) |
Net income for the period | 58,526 | 69,748 | 11,221 | 19.2% |
Interim dividends | - | - | - | - |
Deficits of subsidaries in development stage | (197) | - | 197 | (100.0%) |
Total retained earnings | 622,654 | 634,050 | 11,396 | 1.8% |
Total shareholder´s equity | 3,178,345 | 2,888,649 | (289,696) | (9.1%) |
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY | 12,267,274 | 10,695,180 | (1,572,094) | (12.8%) |
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LIABILITIES ANDSHAREHOLDERSEQUITYUNDERCHILEANGAAP,THOUSANDUS$
Table 7.1
LIABILITIES - (thousand US$) | 03M 07 | 03M 08 | Var 07-08 | Chg % |
CURRENT LIABILITIES | ||||
Short-term debt due to banks and financial institutions | 343,833 | 395,333 | 51,500 | 15.0% |
Current portion of long-term debt due to banks and financial institutions | 353,336 | 253,325 | (100,011) | (28.3%) |
Current portion of bonds payable | 585,184 | 753,408 | 168,224 | 28.7% |
Current portion of long-term notes payable | 104,268 | 70,985 | (33,283) | (31.9%) |
Dividends payable | 88,129 | 264,679 | 176,550 | 200.3% |
Accounts payable | 958,911 | 1,012,061 | 53,150 | 5.5% |
Short-term notes payable | 28,317 | 30,777 | 2,460 | 8.7% |
Miscellaneous payables | 271,449 | 197,867 | (73,582) | (27.1%) |
Accounts payable to related companies | 74,620 | 72,183 | (2,437) | (3.3%) |
Accrued expenses | 177,528 | 174,224 | (3,304) | (1.9%) |
Withholdings | 268,270 | 206,191 | (62,079) | (23.1%) |
Income taxes payable | 241,923 | 62,366 | (179,557) | (74.2%) |
Anticipated income | 8,981 | 14,517 | 5,536 | 61.6% |
Reinbursable financial contribution | 2,159 | 3,386 | 1,227 | 56.8% |
Other current liabilities | 189,509 | 291,392 | 101,883 | 53.8% |
Total current liabilities | 3,696,416 | 3,802,694 | 106,278 | 2.9% |
LONG-TERM LIABILITIES | ||||
Due to banks and financial institutions | 2,482,322 | 2,132,230 | (350,092) | (14.1%) |
Bonds payable | 5,374,128 | 4,312,244 | (1,061,884) | (19.8%) |
Long -term notes payable | 278,022 | 222,438 | (55,584) | (20.0%) |
Accounts payables | 376,280 | 326,180 | (50,100) | (13.3%) |
Amounts payable to related companies | 28,141 | 16,426 | (11,715) | (41.6%) |
Accrued expenses | 859,841 | 703,102 | (156,739) | (18.2%) |
Deferred income taxes | - | 70,138 | 70,138 | - |
Reinbursable financial contribution | 7,426 | 9,712 | 2,286 | 30.8% |
Other long-term liabilities | 607,211 | 696,699 | 89,488 | 14.7% |
Total long-term liabilities | 10,013,371 | 8,489,168 | (1,524,203) | (15.2%) |
Minority interest | 7,054,940 | 5,543,077 | (1,511,863) | (21.4%) |
SHAREHOLDERS´ EQUITY | ||||
Paid-in capital, no par value | 5,964,960 | 5,926,334 | (38,626) | (0.6%) |
Additional paid-in capital | 11,930 | 47,411 | 35,481 | 297.4% |
Additional paid-in capital (share premium) | 425,940 | 425,716 | (224) | (0.1%) |
Other reserves | (564,053) | (1,248,566) | (684,513) | 121.4% |
Total capital and reserves | 5,838,777 | 5,150,895 | (687,882) | (11.8%) |
Retained earnings | 1,289,266 | 1,289,216 | (50) | (0.0%) |
Net income for the period | 133,710 | 159,347 | 25,637 | 19.2% |
Interim dividends | - | - | - | - |
Deficits of subsidaries in development stage | (450) | - | 450 | (100.0%) |
Total retained earnings | 1,422,526 | 1,448,563 | 26,037 | 1.8% |
Total shareholder´s equity | 7,261,303 | 6,599,457 | (661,846) | (9.1%) |
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY | 28,026,029 | 24,434,397 | (3,591,632) | (12.8%) |
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CONSOLIDATEDBALANCESHEETANALYSIS
The company’sTotal Assets as of March 2008 dropped by Ch$1,572,094 million respect to the sameperiod of the previous year; this is mostly attributable to:
• A reduction ofFixed assets for Ch$1,393,799 million, equivalent to 15.8% mainly as a result of the impact of the real foreign exchange rate on the fixed assets of foreign companies, pursuant to Technical Bulletin N°64 in those subsidiaries that reside in unstable countries, for approximately Ch$1,608,000 million and for 1-year fixed asset depreciation of nearly Ch$404,250 million and for fixed asset sales for Ch$3.556 million. The foregoing is partially offset by fixed asset additions during the last year of approximately Ch$613,340 million.
• A reduction ofOther assets for Ch$262,873 million, caused mainly because of:
• Reduced receivables from related companies for Ch$96,521 million, as a result of transferring Atacama Finance receivables to the short-term.
• Reduced investments in related companies of Ch$76,040 million, mostly attributable to the impairment provision in Gas Atacama Holding Ltda. for Ch$48,890 million, the acknowledged impairment of investments during the last 12 months for Ch$2,540 million and the impact of the foreign exchange rate for nearly Ch$31,000 million
• Reduced Positive Goodwill on investments for Ch$65,331 million, basically brought about by the amortization of the Positive Goodwill on investments registered during the last 12 months.
• Reduction in Other long-term assets for Ch$49,082 million, basically explained by the amortization of deferred expenses for Ch$48,260 million, a reduction of tax credits for Ch$7,853 million and smaller guarantee deposits for Ch$2,583 million, partially offset by a growth in the fair value of derivative instruments for Ch$12,074 million.
• An increase in Long-term debtors for Ch$31,631 million, principally as a consequence of the increases of Codensa for Ch$56,600 million, the Codesa Hogar program, Chocón and Endesa Costanera for Ch$14,048 million, for increments to contributions to the investment FONINVEMEM. The foregoing is partially offset by a reduction of Ampla’s regulatory assets of Ch$27,510 million, as well as Edesur’s of Ch$10,253 million, and for the acknowledgement of the retroactive tariff price adjustment.
• A reduction of the balance on Negative Goodwill on investments of Ch$16,370 million, mostly attributable to the amortization of the last 12 months and the impact of the foreign exchange rate.
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•Current assets presents an increase of Ch$84,578 million equivalent to 4,1%, which is explained by:
• Increased receivables from related companies for Ch$121,291 million, mostly attributable to the transferring of Atacama Finance Co. receivables by Ch$80.145 million to the short-term, and to increased receivables from GNL Quintero by Ch$45,198 million, partially offset by a reduction of accounts receivable from GNL Chile by Ch$3,675 million.
• Increased recoverable taxes for Ch$63,187 million as a consequence of the increases in Endesa Chile by Ch$41,631 million, in San Isidro by Ch$12,680 million, in Enersis by Ch$ 7,900 million and in Endesa Eco by Ch$5,709 million; partially offset by a reduction in Chilectra by Ch$4,147 million.
• Increases in Other current assets of Ch$28,463 million, explained mostly by increased deposits on account of debt and guarantees on Enersis by Ch$38,378 million, an increase in Coelce by Ch$16,097 million for the Brazilian Government’s environmental projectLuz para todos; partially offset by smaller buyback agreements in Chilectra by Ch$17,418 million, and in Cachoeira Dourada by Ch$4,071 million in smaller deposits.
• A reduction in sales debtors by Ch$105,068 million, mainly because of the impact of currency variations and of the previous year updating. The principal reductions occur in Coelce by Ch$38,302 million, in Codensa by Ch$32,380 million, in Ampla by Ch$14,485 million, in Cien by Ch$12,304 million, in Emgesa by Ch$8,731 million, in Edesur by Ch$8,117 million and in Pehuenche by Ch$7,546 million; partially offset by increases in Endesa Chile of Ch$14,846 million and Cachoeira Dourada of Ch$10,822 million.
• A reduction in miscellaneous debtors by Ch$27,942 million mostly explained by smaller debtors on account of capacity settlement in Chile by Ch$7,783 million, a greater collection in Codensa Hogar’s portfolio by Ch$6,829 million, and smaller advance payments to suppliers in San Isidro and Coelce for Ch$6,337 million and Ch$4,957 million, respectively.
The company’sTotal Liabilities accounted a reduction of Ch$1,572,094 million with respect to thesame period of the previous year.
•Long-term liabilities presents a reduction of Ch$667,159 million, equivalent to 15,2% and mostly attributable to:
• A reduction in bonds payable reaching Ch$464,797 million, mostly explained by the transfer to short-term of Ch$329,450 million in Endesa Chile, Edegel Ch$9,490 million, Edelnor Ch$7,188 million and by a sharp reduction of the impact of the constant $/US$ exchange rate en Chile for approximately Ch$400,000 million. The foregoing is partially offset by the placement of new bond issues in Codensa of Ch$96,097 million, in Endesa Chile of Ch$79,290 million, in Edegel of Ch$35,503 million, in Edelnor of Ch$35,081 million, in Edesur of Ch$22,765 million and in Emgesa of Ch$9,612 million.
• A reduction of Long-term Bank Debt for Ch$153,239 million owed to a reduction in Edesur of Ch$42,098 million, in Enersis of Ch$39,154 million, in Coelce of Ch$22,600 million, in El Chocón of Ch$22,177 million, in CGTF of Ch$20,572 million, in Cien of Ch$20,418 million, in Edegel of Ch$16,698 million and in Endesa Costanera of Ch$13,366 million, partially offset by an increase in Ampla of Ch$38,253 million and Endesa Chile of Ch$19,851 million.
• Reduced Provisions for Ch$68,606 million, which are explained mostly by reduced provisions on account of tax & labor contingencies in Ampla, Coelce and CIEN for Ch$ 42,143 million, a lesser benefit obligation to retired employees in Codensa, Emgesa, Ampla and Coelce of Ch$14,239 million, and a smaller provision for contingencies in Endesa Fortaleza of Ch$13,122 million.
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•Current Liabilities increased by Ch$46,519 million, equivalent to 2.9%, which are explained by variations in:
• Increased short-term public borrowing amounting to Ch$73,634 million mostly attributable to transfers from the long-term in Endesa Chile, Codensa, Edegel and Edelnor -as previously explained- for Ch$359,434 million; and partially offset by payments in Ampla of Ch$83,348 million, in Endesa Chile of Ch$81,172 million, in Edegel of Ch$32,272 million and in Edelnor of Ch$16,782 million, added to the Chilean peso appreciation effect.
• Increased Dividends Payable of Ch$77,278 million; of which, Ch$52,411 million correspond to dividends payable to third parties, and Ch$25,717 million to Endesa Internacional.
• Increased Other Current Liabilities for Ch$45,132 million as a result of the increment in Edesur of Ch$40,826 million, increased fair values of derivative contracts for Ch$17,458 million, partially offset by reduced liabilities on account of collections on Codensa’s portfolio for Ch$8,191 million.
• Reduced Income Tax Payments reaching Ch$78.594 million; noteworthy among which are: Endesa Chile and its Chilean subsidiaries with Ch$58,689 million, Edelnor with Ch$13,191 million and Codensa with Ch$13,154 million, partially offset by an increase in Edesur‘s income tax payments of Ch$6,730 million.
• Reduced Bank Borrowings of Ch$43,776 million, mainly attributable to distribution in Edesur by Ch$15,967 million, in Emgesa by Ch$15,815 million, in Pehuenche by Ch$14,990 million, in Coelce by Ch$13,576 million and in Cachoeira Dourada by Ch$3,313 million; partly offset by short-term transfers in Ampla of Ch$16,969 million, in El Chocón of Ch$7,531 million and in Costanera of Ch$5,152 million.
• Reduced miscellaneous Debtors amounting to Ch$32,207 million mostly because of the reduction occurring in Emgesa of Ch$12,307 million, the equity tax payment in Edegel of Ch$10,899, and the payment of a leasing and a fuel bill in Ampla of Ch$5,844 million.
Minority interest totaled Ch$2,426,260 million, reflecting a reduction of Ch$661,758 million, equivalent to 21.4% of the total, as a result of shareholders’ equity reductions experienced by the companies because of the dividends paid out and of the impact of the US dollar / Chilean peso exchange rate.
The company’sEquity dropped by Ch$289,696 million, when compared to that of March 2007. This variation is mostly explained by a drop in reserves amounting to Ch$299,618 million, mainly attributable to the impact of the US dollar / Chilean peso exchange rate in hedging foreign investments; all this was partially offset by an increase of this year’s results amounting to Ch$11,221 million.
Pg. 24
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DEBTMATURITY WITHTHIRDPARTIES,MILLIONCH$
Table 8
TOTAL | |||||||
Million Ch$ | 2008 | 2009 | 2010 | 2011 | 2012 | Balance | |
Chile | 204,778 | 431,588 | 46,384 | 91,136 | 12,789 | 1,029,391 | 1,816,067 |
Enersis | 1,852 | 155,053 | 1,855 | 1,961 | 2,074 | 466,859 | 629,654 |
Chilectra | 30 | - | - | - | - | - | 30 |
Other (*) | 5,721 | 294 | 172 | - | - | - | 6,187 |
Endesa Chile (**) | 197,175 | 276,241 | 44,358 | 89,175 | 10,715 | 562,533 | 1,180,197 |
Argentina | 24,925 | 46,366 | 40,394 | 46,439 | 14,119 | 7,863 | 180,106 |
Edesur | 2,213 | 9,489 | 11,932 | 11,963 | 4,886 | - | 40,483 |
Costanera | 17,605 | 26,664 | 18,248 | 16,238 | 9,233 | 7,863 | 95,852 |
Chocon | 5,107 | 10,213 | 10,213 | 18,238 | - | - | 43,771 |
Hidroinvest | - | - | - | - | - | - | - |
CTM | - | - | - | - | - | - | - |
Tesa | - | - | - | - | - | - | - |
Perú | 84,690 | 56,322 | 25,091 | 32,617 | 46,472 | 104,221 | 349,413 |
Edelnor | 30,138 | 16,626 | 4,791 | 10,353 | 14,346 | 51,259 | 127,514 |
Edegel | 54,552 | 39,696 | 20,300 | 22,263 | 32,126 | 52,962 | 221,899 |
Brazil | 74,954 | 84,735 | 132,818 | 171,557 | 169,717 | 101,534 | 735,315 |
Endesa Brasil | - | - | - | - | - | - | - |
Coelce | 53,343 | 12,550 | 18,559 | 18,559 | 17,536 | 43,514 | 164,061 |
Ampla | 15,523 | 65,871 | 57,586 | 95,994 | 95,873 | 31,191 | 362,038 |
Cachoeira | - | - | - | - | - | - | - |
Cien | 2,121 | 2,060 | 52,110 | 52,110 | 51,060 | - | 159,460 |
Fortaleza | 3,967 | 4,254 | 4,563 | 4,894 | 5,249 | 26,830 | 49,756 |
Colombia | 64,884 | 88,397 | 54,012 | 144,173 | 81,393 | 255,067 | 687,925 |
Codensa | 50,268 | 12,014 | 54,012 | 48,058 | 8,103 | 154,145 | 326,600 |
Emgesa | 14,615 | 76,383 | - | 96,116 | 73,290 | 100,921 | 361,325 |
Betania | - | - | - | - | - | - | - |
TOTAL | 454,231 | 707,408 | 298,699 | 485,921 | 324,491 | 1,498,076 | 3,768,826 |
(*) Includes: CAM
(**) Includes: Endesa Chile Internacional, Pangue, Pehuenche, San Isidro, Celta and Tunel El Melon.
DEBTMATURITY WITHTHIRDPARTIES,THOUSANDUS$
Table 8.1
TOTAL | |||||||
Thousand US$ | 2008 | 2009 | 2010 | 2011 | 2012 | Balance | |
Chile | 467,840 | 986,014 | 105,971 | 208,211 | 29,218 | 2,351,766 | 4,149,020 |
Enersis | 4,231 | 354,237 | 4,237 | 4,481 | 4,739 | 1,066,593 | 1,438,518 |
Chilectra | 68 | - | - | - | - | - | 68 |
Other (*) | 13,070 | 673 | 392 | - | - | - | 14,135 |
Endesa Chile (**) | 450,470 | 631,105 | 101,341 | 203,730 | 24,480 | 1,285,173 | 2,696,298 |
Argentina | 56,944 | 105,929 | 92,284 | 106,095 | 32,256 | 17,965 | 411,474 |
Edesur | 5,056 | 21,680 | 27,261 | 27,330 | 11,163 | - | 92,489 |
Costanera | 40,222 | 60,916 | 41,690 | 37,098 | 21,094 | 17,965 | 218,985 |
Chocon | 11,667 | 23,333 | 23,333 | 41,667 | - | - | 100,000 |
Hidroinvest | - | - | - | - | - | - | - |
CTM | - | - | - | - | - | - | - |
Tesa | - | - | - | - | - | - | - |
Peru | 193,485 | 128,673 | 57,324 | 74,517 | 106,171 | 238,105 | 798,275 |
Edelnor | 68,855 | 37,984 | 10,946 | 23,654 | 32,775 | 117,108 | 291,321 |
Edegel | 124,630 | 90,690 | 46,378 | 50,863 | 73,396 | 120,997 | 506,954 |
Brazil | 171,241 | 193,587 | 303,438 | 391,941 | 387,739 | 231,966 | 1,679,913 |
Endesa Brasil | - | - | - | - | - | - | - |
Coelce | 121,869 | 28,672 | 42,401 | 42,401 | 40,062 | 99,412 | 374,816 |
Ampla | 35,465 | 150,490 | 131,562 | 219,310 | 219,033 | 71,259 | 827,119 |
Cachoeira | - | - | - | - | - | - | - |
Cien | 4,845 | 4,706 | 119,051 | 119,051 | 116,652 | - | 364,304 |
Fortaleza | 9,062 | 9,719 | 10,424 | 11,181 | 11,992 | 61,295 | 113,673 |
Colombia | 148,235 | 201,953 | 123,397 | 329,381 | 185,951 | 582,729 | 1,571,647 |
Codensa | 114,844 | 27,448 | 123,397 | 109,794 | 18,511 | 352,163 | 746,157 |
Emgesa | 33,391 | 174,505 | - | 219,587 | 167,440 | 230,567 | 825,489 |
Betania | - | - | - | - | - | - | - |
TOTAL | 1,037,743 | 1,616,157 | 682,414 | 1,110,145 | 741,337 | 3,422,532 | 8,610,328 |
(*) Includes: CAM
(**) Includes: Endesa Chile Internacional, Pangue, Pehuenche, San Isidro, Celta and Tunel El Melon.
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CONSOLIDATEDCASHFLOW
UNDERCHILEANGAAP, MILLIONCH$
Table 9
Million Ch$ | 03M 07 | 03M 08 | Var 07-08 | Chg % |
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | ||||
Net income (loss) for the year | 58,526 | 69,748 | 11,222 | 19.2% |
Gain (losses) from sales of assets: | ||||
Losses (gain) on sale of property, plant and equipment | 16 | (492) | (508) | N/A |
Charges (credits) to income which do not represent cash flows: | ||||
Depreciation | 116,856 | 101,031 | (15,825) | (13.5%) |
Amortization of intangibles | 2,347 | 1,605 | (742) | (31.6%) |
Write-offs and accrued expenses | 6,835 | 9,427 | 2,592 | 37.9% |
Equity in income of related companies | (715) | (4,202) | (3,487) | - |
Equity in losses of related companies | 2,224 | 419 | (1,805) | (81.2%) |
Amortization of positive goodwill | 15,127 | 15,062 | (65) | (0.4%) |
Amortization of negative goodwill | (1,219) | (1,009) | 210 | 17.2% |
Price-level restatement, net | 144 | 4,592 | 4,448 | 3,088.6% |
Exchange difference, net | (200) | 1,834 | 2,034 | N/A |
Other credits to income which do not represent cash flows | (10,694) | (6,690) | 4,004 | 37.4% |
Other charges to income which do not represent cash flows | 41,407 | 84,835 | 43,428 | 104.9% |
Changes in assets which affect cash flows: | ||||
Decrease (increase) in trade receivables | (84,692) | 44,256 | 128,948 | N/A |
Decrease (increase) in inventory | (11,551) | (62,689) | (51,138) | 442.7% |
Decrease (increase) in other assets | (42,283) | (75,963) | (33,680) | (79.7%) |
Changes in liabilities which affect cash flow: | ||||
Decreased (increase) in payable accounts associated with operating results | 14,303 | 61,196 | 46,893 | 327.9% |
Decreased (increase) of payable interest | (5,464) | (19,463) | (13,999) | (256.2%) |
Decreased (increase) in income tax payable | (43,455) | 22,942 | 66,397 | N/A |
Decreased (increase) in other accounts payable associated with non-operating results | 60,591 | 10,189 | (50,402) | (83.2%) |
Decreased (increase) in value added tax and other similar taxes payable, net | 9,127 | (30,469) | (39,596) | N/A |
Income (loss) attributable to minority interest | 71,080 | 38,721 | (32,359) | (45.5%) |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | 198,308 | 264,878 | 66,570 | 33.6% |
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Cont. Table 9
Million Ch$ | 03M 07 | 03M 08 | Var 07-08 | Chg % | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Proceeds from issuance of shares issued to minorities | - | - | - | - | ||||
Proceeds from debt issuance | 389,562 | 168,501 | (221,061) | (56.7%) | ||||
Proceeds from bond issuance | 114,484 | 19,426 | (95,058) | (83.0%) | ||||
Proceeds from loans obtained from related companies | - | - | - | - | ||||
Proceeds from other loans obtained from related companies | - | - | - | - | ||||
Other sources of financing | 253 | - | (253) | - | ||||
Capital paid | - | - | - | - | ||||
Dividends paid | (128,036) | (39,830) | 88,206 | 68.9% | ||||
Payment of debt | (281,772) | (145,209) | 136,563 | 48.5% | ||||
Payment of bonds | (21,244) | (90,429) | (69,185) | 325.7% | ||||
Payments of loans obtained from related companies | - | - | - | - | ||||
Payments of other loans obtained from related companies | - | - | - | - | ||||
Payments of shares issuance costs | - | - | - | - | ||||
Payments of bonds issuance costs | - | - | - | - | ||||
Other disbursements for financing | (567) | (463) | 104 | 18.3% | ||||
NET CASH FLOW FROM FINANCING ACTIVITIES | 72,680 | (88,005) | (160,685) | (221.1%) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Proceeds from sale of property, plant and equipment | 536 | 307 | (229) | (42.8%) | ||||
Sale of investment | - | 7,381 | 7,381 | - | ||||
Other loans received from related companies | - | - | - | - | ||||
Other receipts from investments | - | 251 | 251 | - | ||||
Additions to property, plant and equipment | (131,811) | (146,292) | (14,481) | (11.0%) | ||||
Long-term investments | (34,564) | - | 34,564 | 100.0% | ||||
Investment in financing instruments | - | - | - | - | ||||
Other loans granted to related companies | (4,479) | (12,675) | (8,196) | 183.0% | ||||
Other investment disbursements | (86) | (22,036) | (21,950) | 25,523.5% | ||||
NET CASH FLOW FROM INVESTMENT ACTIVITIES | (170,405) | (173,064) | (2,659) | (1.6%) | ||||
NET CASH FLOW FOR THE PERIOD | 100,583 | 3,809 | (96,774) | 96.2% | ||||
EFFECT OF PRICE-LEVEL RESTATEMENT ON CASH AND CASH EQUIVALENT | 15,455 | (34,228) | (49,683) | N/A | ||||
NET VARIATION ON CASH AND CASH EQUIVALENT | 116,038 | (30,419) | (146,457) | N/A | ||||
CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE YEAR | 476,689 | 581,134 | 104,445 | 21.9% | ||||
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD | 592,727 | 550,715 | (42,012) | (7.1%) | ||||
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UNDERCHILEANGAAP,THOUSANDUS$
Table 9.1
Thousand US$ | 03M 07 | 03M 08 | Var 07-08 | Chg % | ||||
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | ||||||||
Net income (loss) for the year | 133,710 | 159,349 | 25,639 | 19.2% | ||||
Gain (losses) from sales of assets: | ||||||||
Losses (gain) on sale of property, plant and equipment | 36 | (1,123) | (1,159) | N/A | ||||
Charges (credits) to income which do not represent cash flows: | ||||||||
Depreciation | 266,971 | 230,818 | (36,153) | (13.5%) | ||||
Amortization of intangibles | 5,362 | 3,667 | (1,695) | (31.6%) | ||||
Write-offs and accrued expenses | 15,615 | 21,537 | 5,922 | 37.9% | ||||
Equity in income of related companies | (1,634) | (9,600) | (7,966) | - | ||||
Equity in losses of related companies | 5,081 | 958 | (4,123) | (81.2%) | ||||
Amortization of positive goodwill | 34,559 | 34,410 | (149) | (0.4%) | ||||
Amortization of negative goodwill | (2,785) | (2,306) | 479 | 17.2% | ||||
Price-level restatement, net | 329 | 10,490 | 10,161 | 3,088.6% | ||||
Exchange difference, net | (457) | 4,190 | 4,647 | N/A | ||||
Other credits to income which do not represent cash flows | (24,432) | (15,285) | 9,147 | 37.4% | ||||
Other charges to income which do not represent cash flows | 94,599 | 193,816 | 99,217 | 104.9% | ||||
Changes in assets which affect cash flows: | ||||||||
Decrease (increase) in trade receivables | (193,489) | 101,107 | 294,596 | N/A | ||||
Decrease (increase) in inventory | (26,390) | (143,221) | (116,831) | 442.7% | ||||
Decrease (increase) in other assets | (96,600) | (173,546) | (76,946) | (79.7%) | ||||
Changes in liabilities which affect cash flow: | ||||||||
Decreased (increase) in payable accounts associated with operating results | 32,677 | 139,811 | 107,134 | 327.9% | ||||
Decreased (increase) of payable interest | (12,483) | (44,466) | (31,983) | (256.2%) | ||||
Decreased (increase) in income tax payable | (99,278) | 52,413 | 151,691 | N/A | ||||
Decreased (increase) in other accounts payable associated with non-operating results | 138,427 | 23,277 | (115,150) | (83.2%) | ||||
Decreased (increase) in value added tax and other similar taxes payable, net | 20,852 | (69,610) | (90,462) | N/A | ||||
Income (loss) attributable to minority interest | 162,391 | 88,464 | (73,927) | (45.5%) | ||||
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | �� | 453,062 | 605,149 | 152,087 | 33.6% | |||
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Cont. Table 9.1
Thousand US$ | 03M 07 | 03M 08 | Var 07-08 | Chg % | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Proceeds from issuance of shares issued to minorities | - | - | - | - | ||||
Proceeds from debt issuance | 890,000 | 384,959 | (505,041) | (56.7%) | ||||
Proceeds from bond issuance | 261,552 | 44,380 | (217,172) | (83.0%) | ||||
Proceeds from loans obtained from related companies | - | - | - | - | ||||
Proceeds from other loans obtained from related companies | - | - | - | - | ||||
Other sources of financing | 578 | - | (578) | - | ||||
Capital paid | - | - | - | - | ||||
Dividends paid | (292,513) | (90,996) | 201,517 | 68.9% | ||||
Payment of debt | (643,741) | (331,747) | 311,994 | 48.5% | ||||
Payment of bonds | (48,534) | (206,595) | (158,061) | 325.7% | ||||
Payments of loans obtained from related companies | - | - | - | - | ||||
Payments of other loans obtained from related companies | - | - | - | - | ||||
Payments of shares issuance costs | - | - | - | - | ||||
Payments of bonds issuance costs | - | - | - | - | ||||
Other disbursements for financing | (1,295) | (1,058) | 237 | 18.3% | ||||
NET CASH FLOW FROM FINANCING ACTIVITIES | 166,046 | (201,057) | (367,103) | (221.1%) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Proceeds from sale of property, plant and equipment | 1,225 | 701 | (524) | (42.8%) | ||||
Sale of investment | - | 16,862 | 16,862 | - | ||||
Other loans received from related companies | - | - | - | - | ||||
Other receipts from investments | - | 574 | 574 | - | ||||
Additions to property, plant and equipment | (301,138) | (334,221) | (33,083) | (11.0%) | ||||
Long-term investments | (78,966) | - | 78,966 | 100.0% | ||||
Investment in financing instruments | - | - | - | - | ||||
Other loans granted to related companies | (10,233) | (28,957) | (18,724) | 183.0% | ||||
Other investment disbursements | (196) | (50,344) | (50,148) | 25,523.5% | ||||
NET CASH FLOW FROM INVESTMENT ACTIVITIES | (389,308) | (395,386) | (6,078) | (1.6%) | ||||
NET CASH FLOW FOR THE PERIOD | 229,794 | 8,703 | (221,091) | 96.2% | ||||
EFFECT OF PRICE-LEVEL RESTATEMENT ON CASH AND CASH EQUIVALENT | 35,309 | (78,199) | (113,508) | N/A | ||||
NET VARIATION ON CASH AND CASH EQUIVALENT | 265,102 | (69,496) | (334,598) | N/A | ||||
CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE YEAR | 1,089,052 | 1,327,668 | 238,616 | 21.9% | ||||
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD | 1,354,155 | 1,258,172 | (95,983) | (7.1%) | ||||
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CONSOLIDATED CASH FLOW ANALYSIS
During the period, the company generated a positive cash flow of Ch$3,809 million, which is comprised by the following items:
Table 10
Effective Cash Flow (million Ch$) | 03M 07 | 03M 08 | Var 07-08 | Chg % | ||||
Operating | 198,308 | 264,878 | 66,570 | 33.6% | ||||
Financing | 72,680 | (88,005) | (160,685) | 221.1% | ||||
Investment | (170,405) | (173,064) | (2,659) | (1.6%) | ||||
Net cash flow of the period | 100,583 | 3,809 | (96,774) | 96.2% | ||||
Table 10.1
Effective Cash Flow (thousand US$) | 03M 07 | 03M 08 | Var 07-08 | Chg % | ||||
Operating | 453,058 | 605,144 | 152,086 | 33.6% | ||||
Financing | 166,046 | (201,057) | (367,103) | 221.1% | ||||
Investment | (389,310) | (395,386) | (6,076) | (1.6%) | ||||
Net cash flow of the period | 229,793 | 8,701 | (221,092) | 96.2% | ||||
As of March 31, 2008, the company’sOperating activities generated a net positive cash flow of Ch$264,878 million, representing an increase of 33.6% with respect to the same period of last year. This cash flow is comprised mostly of:
The year’s profit of Ch$69,748 million, plus:
- Charges to results that do not represent a cash flow for Ch$218,805 million, mainly corresponding to the year’s depreciation for Ch$101,031 million, penalties & provisions for Ch$9,427 million, Amortization of Positive Goodwill for Ch$15,062 million, Amortization for Intangibles for Ch$1,605 million, loss of permanent investments for Ch$419 million, and other charges that do not represent cash flow for Ch$84,835 million, among which is the impact on account of negative conversions by the foreign subsidiaries –pursuant to Technical Bulletin N°64- amounting to Ch$82,537 million.
- Variation of net liabilities that affect the operating cash flow for Ch$44,394 million.
The foregoing was partially offset by:
- Credits that do not represent cash flow for Ch$11,902 million and which correspond to other credits for Ch$6,690 million; of which, Ch$5,879 million correspond to the positive conversion effect of the foreign subsidiaries, profits from investments in related companies for Ch$4,202 million, and amortization of goodwill on investments for Ch$1,010 million.
- Variation of net assets that affect the operating cash flow for Ch$94,397 million.
Financing activities originated a net positive cash flow of Ch$88,005 million, mainly from payments of Ch$145,209 million, dividend payments of Ch$39,830 million, payment bond debt of Ch$90,429 million, and other disbursements amounting to Ch$463 million. The foregoing is partially offset by loans amounting to Ch$168,500 million and the placement of bonds amounting to Ch$19,426 million.
Investment activitiesgenerated a net cash flow of Ch$173,064 million, which compared with the same period of last year, represents a reduction of 1.6% or Ch$2,659 million. These disbursements correspond mainly to the incorporation of fixed assets amounting to Ch$146,292 million, other loans to related companies of Ch$12,675 million, and other disbursements reaching Ch$22,036 million; the foregoing was partially offset by collections from the sale of permanent investments for Ch$7,381, collections from the sale of fixed assets for Ch$307 million, and other investment income for Ch$251 million.
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CASHFLOWRECEIVEDFROMFOREIGNSUBSIDIARIES BYENERSIS,CHILECTRA ANDENDESACHILE
Table 11
Millions Ch$ | Interest Received | Dividends Received | Management Fee | Prepayment intercompany | Capital Reductions | |||||||||||||||
03M 07 | 03M 08 | 03M 07 | 03M 08 | 03M 07 | 03M 08 | 03M 07 | 03M 08 | 03M 07 | 03M 08 | |||||||||||
Argentina | - | 78 | - | - | 343 | 206 | - | - | - | - | ||||||||||
Peru | - | - | 1,281 | - | - | - | - | - | - | - | ||||||||||
Brazil | - | - | - | 23,644 | - | - | - | - | - | - | ||||||||||
Colombia | - | - | 20,487 | 9,423 | - | - | - | - | - | - | ||||||||||
Total | - | 78 | 21,768 | 33,067 | 343 | 206 | - | - | - | - | ||||||||||
Millions Ch$ | Total Cash Received | |||
03M 07 | 03M 08 | |||
Argentina | 343 | 284 | ||
Peru | 1,281 | - | ||
Brazil | - | 23,644 | ||
Colombia | 20,487 | 9,423 | ||
Total | 22,111 | 33,351 | ||
Table 11.1
Thousand US$ | Interest Received | Dividends Received | Management Fee | Prepayment Intercompany | Capital Reductions | |||||||||||||||
03M 07 | 03M 08 | 03M 07 | 03M 08 | 03M 07 | 03M 08 | 03M 07 | 03M 08 | 03M 07 | 03M 08 | |||||||||||
Argentina | - | 178 | - | - | 784 | 471 | - | - | - | - | ||||||||||
Peru | - | - | 2,927 | - | - | - | - | - | - | - | ||||||||||
Brazil | - | - | - | 54,017 | - | - | - | - | - | - | ||||||||||
Colombia | - | - | 46,804 | 21,528 | - | - | - | - | - | - | ||||||||||
Total | - | 178 | 49,731 | 75,545 | 784 | 471 | - | - | - | - | ||||||||||
Thousand US$ | Total Cash Received | |||
03M 07 | 03M 08 | |||
Argentina | 784 | 648 | ||
Peru | 2,927 | - | ||
Brazil | - | 54,017 | ||
Colombia | 46,804 | 21,528 | ||
Total | 50,515 | 76,194 | ||
Source: Internal Financial Report
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CAPEX ANDDEPRECIATION
Table 12
Payments for Additions of Fixed assets | Depreciation | |||||||
Million Ch$ | 03M 07 | 03M 08 | 03M 07 | 03M 08 | ||||
Endesa | 59,117 | 61,329 | 51,862 | 47,560 | ||||
Cachoeira (*) | 471 | 15 | 3,693 | 2,745 | ||||
Fortaleza (**) | 77 | 273 | 1,383 | 961 | ||||
Cien (**) | 23 | 296 | 3,604 | 2,698 | ||||
Chilectra S.A. | 11,056 | 10,206 | 5,050 | 5,586 | ||||
Edesur S.A. | 8,875 | 10,411 | 11,103 | 8,404 | ||||
Edelnor S.A. | 5,283 | 4,912 | 4,750 | 3,219 | ||||
Ampla | 16,069 | 23,645 | 11,072 | 10,064 | ||||
Coelce | 22,178 | 25,527 | 10,978 | 8,863 | ||||
Codensa S.A. | 6,473 | 6,710 | 11,776 | 9,310 | ||||
Cam Ltda. | 920 | 734 | 417 | 454 | ||||
Inmobiliaria Manso de Velasco Ltda. | 339 | 732 | 83 | 65 | ||||
Synapsis Soluciones y Servicios Ltda. | 853 | 1,423 | 723 | 702 | ||||
Holding Enersis | 77 | 79 | 362 | 400 | ||||
Total | 131,811 | 146,292 | 116,856 | 101,031 | ||||
Table 12.1
Payments for Additions of Fixed assets | Depreciation | |||||||
Million Ch$ | 03M 07 | 03M 08 | 03M 07 | 03M 08 | ||||
Endesa | 135,059 | 140,112 | 118,484 | 108,656 | ||||
Cachoeira (*) | 1,076 | 35 | 8,436 | 6,271 | ||||
Fortaleza (*) | 176 | 624 | 3,160 | 2,195 | ||||
Cien (*) | 52 | 675 | 8,234 | 6,164 | ||||
Chilectra S.A. | 25,258 | 23,318 | 11,537 | 12,763 | ||||
Edesur S.A. | 20,276 | 23,786 | 25,365 | 19,199 | ||||
Edelnor S.A. | 12,069 | 11,222 | 10,853 | 7,353 | ||||
Ampla | 36,712 | 54,020 | 25,296 | 22,992 | ||||
Coelce | 50,667 | 58,318 | 25,080 | 20,249 | ||||
Codensa S.A. | 14,789 | 15,329 | 26,905 | 21,269 | ||||
Cam Ltda. | 2,103 | 1,677 | 954 | 1,038 | ||||
Inmobiliaria Manso de Velasco Ltda. | 774 | 1,673 | 190 | 149 | ||||
Synapsis Soluciones y Servicios Ltda. | 1,949 | 3,251 | 1,651 | 1,604 | ||||
Holding Enersis | 176 | 181 | 827 | 913 | ||||
Total | 301,136 | 334,221 | 266,971 | 230,815 | ||||
(*) Consolidated by Enersis through Endesa Brasil since October 1st, 2005.
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ANALYSIS OF THE INTEREST AND THE EXCHANGE RATE RISK
The company has a high percentage of its loans in US Dollars considering that an important part of its sales, in the different markets where it operates, are mainly indexed to that currency. However, the Brazilian, Argentine and Colombian markets are indexed to the US Dollar to a lower extent and, therefore, subsidiaries in those markets have most of their liabilities in local currency. In the case of Argentina, the company has chosen to replace dollar denominated debt with local currency debt, when market financial conditions allow it.
In a high exchange rate risk scenario, the company has continued with its policy of partly covering its liabilities in dollars in order to minimize the effects of the fluctuations in the exchange rate upon results. Considering the important reduction in the accounting mismatch in recent years, the company has modified its policy on Dollar-Peso hedging in order to establish a policy of covering cash flows, together with a maximum permissible accounting mismatch, on which hedging operations will be performed.
As of March 31, 2008, the company has hedged in Chile, through US$/UF Swap operations, an amount of US$ 600 million on a consolidated basis and holds US$ 125 million in forward contracts, allowing for an adequate management of the hedging policy. At the same period of last year, the Company had already engaged US$ 600 million of the total US$/UF swap and the US$ 125 million of US$/UF swap as part of the settlement of the new hedging policy already mentioned. Additionally, the company kept US$1 million short-term forward contracts.
In terms of interest rate risk, the Company had, on a consolidated basis, a proportion of its indebtedness at a fixed / variable ratio of approximately 70.2% fixed / 29.8% variable as of March 31, 2008. The percentage of its indebtedness at a fixed rate has decreased compared with the 69.2% / 30.8% ratio as of the same date in 2007.
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OTHERRISKS
As is the usual practice in bank credits and capital market operations, a portion of Enersis financial debt –as well as that of its affiliate Endesa Chile- is subject to cross-default provisions (incumplimiento cruzado). Should certain defaults on the part of relevant subsidiaries not be resolved, they could result in cross-defaults at the level of Enersis and Endesa Chile, in which case, they may eventually call up certain liabilities in these companies.
Nonpayment –following whatever grace period may be applicable- of debt of these companies or of any of its more relevant subsidiaries, for individual amounts over the equivalent of US$ 30 million, could enforce the payment acceleration provisions of syndicated credits subscribed in 2004. The credits subscribed by Endesa (in January and December 2006) and by Enersis (in December 2006) have a US$ 50 million threshold. Analogously, nonpayment –following whatever grace period may be applicable- of debt of these companies or of any of its more relevant subsidiaries, for individual amounts over the equivalent of US$ 30 million, could enforce the payment acceleration provisions of the Yankee Bonds. Additionally, certain credit contracts include provisions according to which certain events –other than nonpayment- on the part of these companies or any of its more relevant subsidiaries, such as bankruptcy, insolvency, adverse final judicial decisions for amounts over US$ 50 million, or asset expropriation could trigger the application of the acceleration provisions of these credits.
These credits have no clauses by virtue of which eventual changes in the classification of these companies or of their debt by risk classification companies would generate the obligation to prepay such debt. Nevertheless, a change in the risk classification of foreign currency debt according to the risk classification agency, Standard & Poor’s (S&P), could cause a change in the margin applicable to determine the rate of interest on credits syndicated and subscribed between 2004 and 2006. As of March 2008, these obligations & restrictions have been met fully.
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ARGENTINA
GENERATION
COSTANERA
Operating Income, increased by Ch$2,575 million, reaching at a first-quarter result of Ch$6,815 million in March 2008, which represents an increase of 60.7%, in turn, resulting from 6.1% better revenues, while operating costs remained roughly similar to those of its homologous preceding quarter. A more efficient management in terms of production and commercial policy has enabled Costanera increase its operating income, considering that its physical sales expanded by 5.1% to 2,575 GWh as of March 2008.
Table 13
Million US$ | Million Ch$ | |||||||||
03M 07 | 03M 08 | 03M 07 | 03M 08 | Chg % | ||||||
Operating Revenues | 100 | 106 | 43,835 | 46,497 | 6.1% | |||||
Operating Costs | (89) | (89) | (38,976) | (39,088) | (0.3%) | |||||
Gross Profit | 11 | 17 | 4,859 | 7,410 | 52.5% | |||||
Selling and Administrative Expenses | (1) | (1) | (620) | (595) | 3.9% | |||||
Operating Income | 10 | 16 | 4,239 | 6,815 | 60.7% | |||||
Figures may differ from those accounted under Argentine GAAP.s
Additional Information
Table 14
Costanera | 03M 07 | 03M 08 | Var 07-08 | Chg % | ||||
GWh Produced | 2,445 | 2,575 | 130 | 5.3% | ||||
GWh Sold | 2,450 | 2,575 | 126 | 5.1% | ||||
Market Share | 9.6% | 9.7% | - | 1.3% | ||||
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CHOCÓN
Operating Income, dropped by 51.2% to Ch$2,537 million during the first quarter of 2008, as a result of 26.5% lower physical sales as compared with the previous year, conditioned by the Limay River water management on the part of Argentina’s Energy Secretariat and the low hydrology of the area. The Chocon’s reservoirs went to the minimum level, ending the first quarter without energy available.
Table 15
Million US$ | Million Ch$ | |||||||||
03M 07 | 03M 08 | 03M 07 | 03M 08 | Chg % | ||||||
Operating Revenues | 31 | 22 | 13,706 | 9,711 | (29.2%) | |||||
Operating Costs | (19) | (16) | (8,265) | (6,895) | 16.6% | |||||
Gross Profit | 12 | 6 | 5,440 | 2,815 | (48.3%) | |||||
Selling and Administrative Expenses | (1) | (1) | (247) | (279) | (12.9%) | |||||
Operating Income | 12 | 6 | 5,194 | 2,537 | (51.2%) | |||||
Figures may differ from those accounted under Argentine GAAP.
Additional Information
Table 16
Chocón | 03M 07 | 03M 08 | Var 07-08 | Chg % | ||||
GWh Produced | 735 | 466 | (269) | (36.7%) | ||||
GWh Sold | 817 | 600 | (217) | (26.5%) | ||||
Market Share | 3.2% | 2.3% | - | (29.2%) | ||||
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DISTRIBUTION
EDESUR
Operating Income increased by Ch$928 million during the first quarter of the year 2007 from Ch$ 5,919 million to Ch$6,847 million. The later is principally explained by better buy/sell margins during the period, which is associated to the increased demand, the greater number of clients, an increase of the capacity sold to large corporate clients.
The increase in demand has been strongly boosted by the greater level of economic activity and the higher temperatures, all of which have contributed to an increase of physical sales by 2.4%, reaching 4,083 GWh during the first quarter of 2008. Energy losses increased by 0.1p. p. reaching 9.2% as of March 2008 and the number of clients grew by 35,000, reaching 2.2 million clients.
Table 17
Million US$ | Million Ch$ | |||||||||
03M 07 | 03M 08 | 03M 07 | 03M 08 | Chg % | ||||||
Revenues from Sales | 181 | 142 | 79,028 | 62,110 | (21.4%) | |||||
Other Operating Revenues | 13 | 13 | 5,734 | 5,659 | (1.3%) | |||||
Operating Revenues | 194 | 155 | 84,761 | 67,769 | (20.0%) | |||||
Energy Purchases | (99) | (75) | (43,366) | (32,724) | 24.5% | |||||
Other Operating Cost | (57) | (44) | (25,141) | (19,150) | 23.8% | |||||
Operating Costs | (157) | (119) | (68,508) | (51,874) | 24.3% | |||||
Selling and Administrative Expenses | (24) | (21) | (10,334) | (9,048) | 12.4% | |||||
Operating Income | 14 | 16 | 5,919 | 6,847 | 15.7% | |||||
Additional Information
Table 18
Edesur | 03M 07 | 03M 08 | Var 07-08 | Chg % | ||||
Customers (Th) | 2,202 | 2,237 | 35 | 1.6% | ||||
GWh Sold | 3,985 | 4,083 | 98 | 2.4% | ||||
Clients/Employee | 904 | 870 | (34) | (3.7%) | ||||
Energy Losses % (3M) | 9.1% | 9.2% | 0.1 | 0.8% | ||||
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BRAZIL
ENDESABRASIL(*)
Table 19
Million US$ | Million Ch$ | Chg % | ||||||||
03M 07 | 03M 08 | 03M 07 | 03M 08 | |||||||
Revenues from Sales | 684 | 641 | 299,578 | 280,386 | (6.4%) | |||||
Other Operating Revenues | 19 | 59 | 8,445 | 25,640 | 203.6% | |||||
Operating Revenues | 704 | 699 | 308,023 | 306,026 | (0.6%) | |||||
Energy Purchases | (263) | (305) | (115,153) | (133,398) | (15.8%) | |||||
Other Operating Cost | (147) | (124) | (64,532) | (54,457) | 15.6% | |||||
Operating Costs | (411) | (429) | (179,685) | (187,855) | (4.5%) | |||||
Selling and Administrative Expenses | (45) | (46) | (19,687) | (20,343) | (3.3%) | |||||
Operating Income | 248 | 224 | 108,651 | 97,828 | (10.0%) | |||||
(*) Consolidated by Enersis since October 1st 2005.
GENERATION
CACHOEIRADOURADA
Operating Income, in the first quarter of the year 2008 reached Ch$43,808 million, which is significantly higher than the Ch$11,487 million obtained during the same period of the year 2007 which represents an increase of 281.4% . The latter is the consequence of the policy of reducing the sale contracts of energy and of the high prices that prevailed in the energy market during the first months of this year, which was partially offset by a 17.1% reduction in physical sales, to 877 GWh.
Table 20
Million US$ | Million Ch$ | |||||||||
03M 07 | 03M 08 | 03M 07 | 03M 08 | Chg % | ||||||
Operating Revenues | 47 | 124 | 20,617 | 54,192 | 162.8% | |||||
Operating Costs | (19) | (22) | (8,318) | (9,801) | (17.8%) | |||||
Gross Profit | 28 | 101 | 12,299 | 44,391 | 260.9% | |||||
Selling and Administrative Expenses | (2) | (1) | (812) | (583) | 28.2% | |||||
Operating Income | 26 | 100 | 11,487 | 43,808 | 281.4% | |||||
Additional Information
Table 21
Cachoeira | 03M 07 | 03M 08 | Var 07-08 | Chg % | ||||
GWh Produced | 981 | 705 | (276) | (28.1%) | ||||
GWh Sold | 1,057 | 877 | (180) | (17.1%) | ||||
Market Share | 1.2% | 0.9% | - | (25.0%) | ||||
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FORTALEZA
Operating Income,amounted to Ch$1,317 million, a reduction of 89.0% in the period, at which time their operating income amounted to Ch$11,973 million. This drop is mainly due to the smaller energy buy/sell margin during the period, resulting in turn from high energy spot prices. Physical sales reached to 669 GWh as of March 2008 (663 GWh in March 2007).
Table 22
Million US$ | Million Ch$ | |||||||||
03M 07 | 03M 08 | 03M 07 | 03M 08 | Chg % | ||||||
Operating Revenues | 62 | 92 | 27,038 | 40,157 | 48.5% | |||||
Operating Costs | (34) | (88) | (14,715) | (38,441) | (161.2%) | |||||
Gross Profit | 28 | 4 | 12,323 | 1,715 | (86.1%) | |||||
Selling and Administrative Expenses | (1) | (1) | (350) | (399) | (14.0%) | |||||
Operating Income | 27 | 3 | 11,973 | 1,317 | (89.0%) | |||||
Additional Information
Table 23
Fortaleza | 03M 07 | 03M 08 | Var 07-08 | Chg % | ||||
GWh Produced | 1 | 81 | 80 | - | ||||
GWh Sold | 663 | 669 | 6 | 0.9% | ||||
Market Share | 0.7% | 0.7% | - | - | ||||
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TRANSMISSION
CIEN
Operating Income, registered a loss, during this first quarter, of Ch$3,876 million, which when compared with the period of the preceding year reflects a greater loss of Ch$1,384 million. The foregoing is explained because the Government of Brazil has not yet provided ANEEL with the guidelines required to set a retribution price for the services of energy transport which, beginning this year, has become this company’s new business. The company did not have any physical sales in the current period, in line with its new line of business.
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Table 24
Million US$ | Million Ch$ | |||||||||
03M 07 | 03M 08 | 03M 07 | 03M 08 | Chg % | ||||||
Operating Revenues | 65 | 4 | 28,331 | 1,535 | (94.6%) | |||||
Operating Costs | (67) | (10) | (29,354) | (4,469) | (115.2%) | |||||
Gross Profit | (2) | (7) | (1,022) | (2,934) | (187.0%) | |||||
Selling and Administrative Expenses | (3) | (2) | (1,469) | (942) | 35.9% | |||||
Operating Income | (6) | (9) | (2,492) | (3,876) | (55.5%) | |||||
DISTRIBUTION
AMPLA
Operating Income, accounted Ch$39,823 million, which, when compared with the same date of the preceding year, represents a drop of 21.9% or the equivalent to Ch$11,184 million. Such lower result is owed mainly to lower energy buy/sell margins, which dropped mainly because of the increase of average energy buying prices. Physical sales increased by 1.1% to 2,394 GWh during the present period. Energy losses diminished by 1.8 p.p, down to a level of 21.0% (22.8% in the year 2007). The number of Ampla clients increased by 63,000, reaching 2.4 million clients.
Table 26
Million US$ | Million Ch$ | |||||||||
03M 07 | 03M 08 | 03M 07 | 03M 08 | Chg % | ||||||
Revenues from Sales | 365 | 338 | 159,826 | 147,751 | (7.6%) | |||||
Other Operating Revenues | 7 | 10 | 3,176 | 4,248 | 33.7% | |||||
Operating Revenues | 372 | 347 | 163,002 | 151,998 | (6.8%) | |||||
Energy Purchases | (178) | (164) | (78,065) | (71,649) | 8.2% | |||||
Other Operating Cost | (63) | (78) | (27,730) | (33,959) | (22.5%) | |||||
Operating Costs | (242) | (241) | (105,795) | (105,608) | 0.2% | |||||
Selling and Administrative Expenses | (14) | (15) | (6,200) | (6,567) | (5.9%) | |||||
Operating Income | 117 | 91 | 51,007 | 39,823 | (21.9%) | |||||
Additional Information
Table 27
Ampla | 03M 07 | 03M 08 | Var 07-08 | Chg % | ||||
Customers (Th) | 2,342 | 2,405 | 64 | 2.7% | ||||
GWh Sold | 2,367 | 2,394 | 27 | 1.1% | ||||
Clients/Employee | 1,682 | 1,755 | 73 | 4.3% | ||||
Energy Losses % (3M) | 22.8% | 21.0% | (1.8) | (8.2%) | ||||
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COELCE
Operating Income, dropped by Ch$19,230 million, reaching Ch$18.679 million during the first quarter of the year 2008. Such drop in the operating income is principally attributable to a reduction of this year’s buy/sell margin, as a result of the downturn of tariff prices occurred in April of 2007 and the greater purchase price of energy. The foregoing was partially offset by a 5.0% increase in physical sales to 1,803 GWh during the first quarter of the year 2008. Energy losses dropped by 1.1 p.p, to a level of 11.4% in the current period. The number of clients reached 2.72 million, all of which represents a growth of 154,000 clients when compared to the same date of the year 2007, i.e. a 6.0% increase.
Table 28
Million US$ | Million Ch$ | |||||||||
03M 07 | 03M 08 | 03M 07 | 03M 08 | Chg % | ||||||
Revenues from Sales | 272 | 237 | 119,254 | 103,578 | (13.1%) | |||||
Other Operating Revenues | 7 | 12 | 3,199 | 5,076 | 58.7% | |||||
Operating Revenues | 280 | 248 | 122,454 | 108,654 | (11.3%) | |||||
Energy Purchases | (117) | (130) | (51,169) | (57,043) | (11.5%) | |||||
Other Operating Cost | (52) | (53) | (22,969) | (23,003) | (0.1%) | |||||
Operating Costs | (169) | (183) | (74,138) | (80,046) | (8.0%) | |||||
Selling and Administrative Expenses | (24) | (23) | (10,407) | (9,929) | 4.6% | |||||
Operating Income | 87 | 43 | 37,909 | 18,679 | (50.7%) | |||||
Figures may differ from those accounted under Brazilian GAAP.
Additional Information
Table 29
Coelce | 03M 07 | 03M 08 | Var 07-08 | Chg % | ||||
Customers (Th) | 2,571 | 2,725 | 155 | 6.0% | ||||
GWh Sold | 1,717 | 1,803 | 86 | 5.0% | ||||
Clients/Employee | 2,034 | 2,159 | 125 | 6.2% | ||||
Energy Losses % (3M) | 12.5% | 11.4% | (1.1) | (9.4%) | ||||
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CHILE
GENERATION
ENDESACHILE
Consolidated Income Statement of Endesa Chile
Table 30
Million US$ | Million Ch$ | |||||||||
03M 07 | 03M 08 | 03M 07 | 03M 08 | Chg % | ||||||
Operating Revenues | 974 | 1,098 | 426,372 | 480,560 | 12.7% | |||||
Operating Costs | (528) | (724) | (231,065) | (317,050) | (37.2%) | |||||
Selling and Administrative Expenses | (25) | (19) | (10,910) | (8,464) | 22.4% | |||||
Operating Income | 421 | 354 | 184,397 | 155,046 | (15.9%) | |||||
Interest Income | 11 | 10 | 4,631 | 4,544 | (1.9%) | |||||
Interest Expenses | (111) | (90) | (48,691) | (39,434) | 19.0% | |||||
Net Financial Income (Expenses) | (101) | (80) | (44,059) | (34,890) | 20.8% | |||||
Equity Gains from Related Company | 19 | 56 | 8,117 | 24,430 | 201.0% | |||||
Equity Losses from Related Company | (5) | (1) | (2,190) | (276) | 87.4% | |||||
Net Income from Related Companies | 14 | 55 | 5,926 | 24,154 | 307.6% | |||||
Other Non Operating Income | 20 | 23 | 8,725 | 10,009 | 14.7% | |||||
Other Non Operating Expenses | (98) | (144) | (42,915) | (62,923) | (46.6%) | |||||
Net other Non Operating Income (Expenses) | (78) | (121) | (34,189) | (52,914) | (54.8%) | |||||
Price Level Restatement | 0 | (2) | 18 | (708) | (4096.2%) | |||||
Foreign Exchange Effect | (1) | 27 | (633) | 11,804 | (1963.5%) | |||||
Net of Monetary Exposure | (1) | 25 | (616) | 11,097 | (1902.2%) | |||||
Positive Goodwill Amortization | (1) | (1) | (240) | (255) | (6.3%) | |||||
Non Operating Income | (167) | (121) | (73,178) | (52,809) | 27.8% | |||||
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 254 | 234 | 111,220 | 102,236 | (8.1%) | |||||
Extraordinary Items | - | - | - | - | - | |||||
Income Tax | (99) | (84) | (43,157) | (36,667) | 15.0% | |||||
Minority Interest | (36) | 25 | (15,541) | 11,080 | 171.3% | |||||
Negative Goodwill Amortization | 3 | 2 | 1,208 | 1,000 | (17.2%) | |||||
NET INCOME | 123 | 177 | 53,730 | 77,649 | 44.5% | |||||
Chilean Operations
Operating Income,reached Ch$88,266 million, 19.5% less that the Ch$109,584 million accounted at the end of the first quarter of 2007, even though operating revenue amounted to Ch$297,355 million, which, when compared with Ch$226,752 million in the same period of the previous year, represented an increase of 31.1% .
This price hike, resulting from the first quarter in which the node price of over US$100 per MWh with high energy spot prices, was amply compensated by a greater operating cost which increased by 79%, amounting to Ch$205,145 million; noteworthy among which are Ch$102,348 million from higher fuel & lubricant costs on account of greater thermal generation with petroleum at high prices derived –among other reasons- from a low hydrology.
It is worth mention that this commercial policy has enabled Endesa Chile been a net seller in the spot market, even when its production as accounted at the March 2008 closing meant a 6.9% drop in generation. Physical sales during the first quarter of the year totaled 4,755 GWh.
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Additional Information
Table 31
Chilean Companies | 03M 07 | 03M 08 | Var 07-08 | Chg % | ||||
GWh Produced | 5,191 | 4,830 | (360) | (6.9%) | ||||
GWh Sold | 5,226 | 4,755 | (472) | (9.0%) | ||||
Market Share | 39.9% | 36.0% | - | (9.8%) | ||||
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DISTRIBUTION
CHILECTRA
Operating Income, accounted Ch$27,428 million during the period, which represents a drop of Ch$6,336 million with respect to the same period of last year equivalent to 18.8% . This is due to the increase in energy purchases considering higher prices paid out to generators and greater physical energy purchases in order to satisfy the demand of our clients. The Ch$58,706 million in greater operating revenues were not enough to offset the greater operating costs of Ch$65,755 million. During the period, physical sales amounted to 3,171 GWh, with a slight 0.4% increase when compared to the same period of 2007, impacted by the energy savings plan launched by the Government of Chile. The foregoing was partially offset by lower sales & administration expenses of Ch$714 million or 6%, mainly explained by a reduction of Ch$820 million in operating & maintenance costs.
Table 32
Million US$ | Million Ch$ | |||||||||
03M 07 | 03M 08 | 03M 07 | 03M 08 | Chg % | ||||||
Revenues from Sales | 412 | 541 | 180,366 | 236,598 | 31.2% | |||||
Other Operating Revenues | 33 | 39 | 14,583 | 17,058 | 17.0% | |||||
Operating Revenues | 445 | 580 | 194,950 | 253,656 | 30.1% | |||||
Energy Purchases | (304) | (451) | (132,845) | (197,450) | (48.6%) | |||||
Other Operating Cost | (39) | (42) | (17,069) | (18,220) | (6.7%) | |||||
Operating Costs | (342) | (493) | (149,914) | (215,670) | (43.9%) | |||||
Selling and Administrative Expenses | (26) | (24) | (11,272) | (10,558) | 6.3% | |||||
Operating Income | 77 | 63 | 33,764 | 27,428 | (18.8%) | |||||
Interest Income | 4 | 6 | 1,847 | 2,814 | 52.3% | |||||
Interest Expenses | (16) | (11) | (7,171) | (4,684) | 34.7% | |||||
Net Financial Income (Expenses) | (12) | (4) | (5,324) | (1,870) | 64.9% | |||||
Equity Gains from Related Company | 27 | 26 | 11,981 | 11,361 | (5.2%) | |||||
Equity Losses from Related Company | - | (3) | - | (1,521) | - | |||||
Net Income from Related Companies | 27 | 22 | 11,981 | 9,839 | (17.9%) | |||||
Other Non Operating Income | 5 | 6 | 2,251 | 2,762 | 22.7% | |||||
Other Non Operating Expenses | (1) | (6) | (240) | (2,800) | 1066.8% | |||||
Conversion Effect (BT 64) | - | - | - | - | ||||||
Net other Non Operating Income (Expenses) | 5 | (0) | 2,011 | (39) | (101.9%) | |||||
Price Level Restatement | (1) | (3) | (272) | (1,436) | 427.9% | |||||
Foreign Exchange Effect | (2) | 18 | (726) | 8,091 | (1214.9%) | |||||
Net of Monetary Exposure | (2) | 15 | (998) | 6,655 | (767.0%) | |||||
Positive Goodwill Amortization | (0) | (0) | (162) | (135) | 16.5% | |||||
Non Operating Income | 17 | 33 | 7,509 | 14,451 | 92.4% | |||||
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 94 | 96 | 41,273 | 41,878 | 1.5% | |||||
Extraordinary Items | - | - | - | - | ||||||
Income Tax | (16) | 1 | (6,988) | 542 | 107.8% | |||||
Minority Interest | (0) | (5) | (139) | (1,971) | 1316.8% | |||||
Negative Goodwill Amortization | - | - | - | - | ||||||
NET INCOME | 78 | 92 | 34,146 | 40,450 | 18.5% | |||||
Additional Information
Table 33
Chilectra | 03M 07 | 03M 08 | Var 07-08 | Chg % | ||||
Customers (Th) | 1,445 | 1,492 | 48 | 3.3% | ||||
GWh Sold | 3,157 | 3,171 | 15 | 0.4% | ||||
Clients/Employee | 2,032 | 2,047 | 15 | 0.8% | ||||
Energy Losses % (3M) | 5.1% | 5.5% | 0.4 | 9.2% | ||||
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COLOMBIA
GENERATION
On September, 2007 Colombian generation companies Emgesa and Betania completed the merger process, and the resulting company was named Emgesa.
EMGESA
Operating Income,totaled Ch$42,539 million at the closing of the first quarter of 2008, which is Ch$1,542 million higher than the operating income obtained during the same period in 2007. The greater result is explained, principally, by growth in energy sales margin, resulting from higher spot prices that prevailed in the market, higher revenues due to reliability charges and lower thermal generation costs, and the good hydrology during the period. Physical sales increased by 9.1%, amounting to 3,760 GWh as of March 2008.
Table 36
Million US$ | Million Ch$ | |||||||||
03M 07 | 03M 08 | 03M 07 | 03M 08 | Chg % | ||||||
Operating Revenues | 196 | 184 | 85,929 | 80,487 | (6.3%) | |||||
Operating Costs | (99) | (84) | (43,526) | (36,781) | 15.5% | |||||
Operating Margin | 97 | 100 | 42,403 | 43,707 | 3.1% | |||||
Selling and Administrative Expenses | (3) | (3) | (1,405) | (1,167) | 16.9% | |||||
Operating Income | 94 | 97 | 40,997 | 42,539 | 3.8% | |||||
Since September 1, 2007, Betania is merged with Emgesa.
* Please notice that these figures could differ from those accounted under Colombian GAAP.
Additional Information
Table 37
Emgesa | 03M 07 | 03M 08 | Var 07-08 | Chg % | ||||
GWh Produced | 2,745 | 2,882 | 137 | 5.0% | ||||
GWh Sold | 3,448 | 3,760 | 312 | 9.1% | ||||
Market Share | 19.9% | 21.2% | - | 6.6% | ||||
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DISTRIBUTION
CODENSA
Operating Income, totaled Ch$40,050 million during the first quarter of the year 2008, which represents a growth of Ch$ 2,761 million or 7.4% with respect to the same period of last year.
This increment is mostly owed to the increased energy demand which increased physical sales by 4.9% reaching 2,884 GWh and a 1.6pp reduction in energy losses, which went from 9.2% during the first quarter of the year 2007 to 7.6% in the current period, added to the period’s better buy/sell margin. Clients increased by 73,000, reaching 2.2 million as of March 2008.
Table 38
Million US$ | Million Ch$ | |||||||||
03M 07 | 03M 08 | 03M 07 | 03M 08 | Chg % | ||||||
Revenues from Sales | 225 | 223 | 98,687 | 97,580 | (1.1%) | |||||
Other Operating Revenues | 83 | 83 | 36,332 | 36,242 | (0.2%) | |||||
Operating Revenues | 308 | 306 | 135,019 | 133,822 | (0.9%) | |||||
Energy Purchases | (142) | (138) | (62,163) | (60,454) | 2.7% | |||||
Other Operating Cost | (72) | (66) | (31,519) | (28,956) | 8.1% | |||||
Operating Costs | (214) | (204) | (93,682) | (89,410) | 4.6% | |||||
Selling and Administrative Expenses | (9) | (10) | (4,048) | (4,362) | (7.8%) | |||||
Operating Income | 85 | 91 | 37,289 | 40,050 | 7.4% | |||||
* Please noticethat these figures could differ from those accounted under Colombian GAAP.
Additional Information
Table 39
Codensa | 03M 07 | 03M 08 | Var 07-08 | Chg % | ||||
Customers (Th) | 2,157 | 2,230 | 73 | 3.4% | ||||
GWh Sold | 2,750 | 2,884 | 133 | 4.9% | ||||
Clients/Employee | 2,302 | 2,370 | 68 | 2.9% | ||||
Energy Losses % (3M) | 9.2% | 7.6% | (1.6) | (17.6%) | ||||
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PERU
GENERATION
EDEGEL
Operating Income,accounted Ch$13,171 million, which represents a 42.0% drop with respect to the Ch$22,694 million of the first quarter of 2007. Generation increased by 3.6%, reaching 2,074 GWh. However, operating revenue decreased 20.5%, from Ch$48,226 million to Ch$38,323 million. Operating costs increased by 2.6% to Ch$22,976 million. The decrease in revenues is largely attributable to a 38% drop in average spot prices. Increase costs are mostly attributable to a 15.4% increase in thermal generation, compared to the first quarter of 2007.
Table 40
Million US$ | Million Ch$ | |||||||||
03M 07 | 03M 08 | 03M 07 | 03M 08 | Chg % | ||||||
Operating Revenues | 110 | 88 | 48,226 | 38,323 | (20.5%) | |||||
Operating Costs | (51) | (52) | (22,399) | (22,976) | (2.6%) | |||||
Operating Margin | 59 | 35 | 25,828 | 15,347 | (40.6%) | |||||
Selling and Administrative Expenses | (7) | (5) | (3,134) | (2,176) | 30.6% | |||||
Operating Income | 52 | 30 | 22,694 | 13,171 | (42.0%) | |||||
* Please noticethat these figures could differ from those accounted under Peruvian GAAP.
Additional Information
Table 41
Edegel | 03M 07 | 03M 08 | Var 07-08 | Chg % | ||||
GWh Produced | 2,002 | 2,074 | 72 | 3.6% | ||||
GWh Sold | 1,951 | 2,063 | 112 | 5.7% | ||||
Market Share | 32.9% | 31.7% | - | (3.8%) | ||||
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DISTRIBUTION
EDELNOR
Operating Income registered Ch$12,758 million, higher by Ch$112 million to the result obtained during the same period of the previous year, reaching Ch$12,646 million. This is mostly due to the greater energy demand and the better unit margin sales conditions. The increment in demand and greater sales to half-tension Regulated Clients contribute to a better sales margin.
The important increase in demand for energy made physical sales sore by 8.0% amounting to 1,396 GWh during the period. The number of clients increased by 34,000 reaching 995,000 as of March 2008. Energy losses increased by 0.1 p.p to a level of 8.5% in the current period as compared to last year’s 8.4% in the same period.
Operating Income
Table 42
Million US$ | Million Ch$ | |||||||||
03M 07 | 03M 08 | 03M 07 | 03M 08 | Chg % | ||||||
Revenues from Sales | 132 | 114 | 57,677 | 50,037 | (13.2%) | |||||
Other Operating Revenues | 7 | 7 | 3,056 | 3,081 | 0.8% | |||||
Operating Revenues | 139 | 121 | 60,734 | 53,118 | (12.5%) | |||||
Energy Purchases | (80) | (67) | (34,905) | (29,361) | 15.9% | |||||
Other Operating Cost | (18) | (15) | (7,879) | (6,483) | 17.7% | |||||
Operating Costs | (98) | (82) | (42,785) | (35,844) | 16.2% | |||||
Selling and Administrative Expenses | (12) | (10) | (5,303) | (4,516) | 14.8% | |||||
Operating Income | 29 | 29 | 12,646 | 12,758 | 0.9% | |||||
* Please noticethat these figures could differ from those accounted under Peruvian GAAP.
Additional Information
Table 43
Edelnor | 03M 07 | 03M 08 | Var 07-08 | Chg % | ||||
Customers (Th) | 961 | 995 | 33 | 3.5% | ||||
GWh Sold | 1,292 | 1,396 | 105 | 8.1% | ||||
Clients/Employee | 1,773 | 1,780 | 6 | 0.4% | ||||
Energy Losses % (3M) | 8.4% | 8.5% | 0.1 | 2.1% | ||||
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PARTIALLY CONSOLIDATED INCOME STATEMENT
(Parent Company First Quarter 2008 Earnings Report)
UNDERCHILEANGAAP,MILLIONCH$
Table 44
(in million Ch$ of 3M08) | 3M 07 | 3M 08 | Var % | |||
Gross Operating Margin | 907 | 868 | (4.4%) | |||
S&A Expenses | (4,363) | (4,214) | 3.4% | |||
Operating Income | (3,456) | (3,347) | 3.2% | |||
Endesa | 32,228 | 46,575 | 44.5% | |||
Chilectra | 21,958 | 30,334 | 38.2% | |||
Edesur | 10,175 | 1,961 | (80.7%) | |||
Edelnor | 2,691 | (2,706) | (200.5%) | |||
Ampla | 2,898 | 7,207 | 148.7% | |||
Coelce | - | - | N/A | |||
Codensa | 2,818 | 62 | (97.8%) | |||
CAM LTDA | 342 | 125 | (63.4%) | |||
Inm Manso de Velasco | 628 | 632 | 0.7% | |||
Synapsis | 231 | 1,338 | 477.8% | |||
Endesa Brasil | 5,607 | 15,470 | 175.9% | |||
CGTF | - | - | N/A | |||
Other | - | - | N/A | |||
Net Income from Related Companies | 79,576 | 100,998 | 26.9% | |||
Interest Income | 11,197 | 7,602 | (32.1%) | |||
Interest Expense | (14,800) | (13,189) | 10.9% | |||
Net Financial Income (Expenses) | (3,604) | (5,587) | (55.1%) | |||
Other Non Operating Income | 1,910 | 3,904 | 104.4% | |||
Other Non Operating Expenses | (319) | (81) | 74.5% | |||
Net other Non Operating Income (Expenses) | 1,592 | 3,823 | 140.2% | |||
Price Level Restatement | (188) | (1,553) | (724.7%) | |||
Foreign Exchange Effect | 1,474 | (21,841) | (1581.7%) | |||
Net Monetary Exposure | 1,286 | (23,394) | (1919.5%) | |||
Positive Goodwill Amortization | (14,723) | (14,670) | 0.4% | |||
Non Operating Income | 64,126 | 61,169 | (4.6%) | |||
Net Income before (1), (2) & (3) | 60,671 | 57,823 | (4.7%) | |||
Income Tax (1) | (2,155) | 11,915 | (652.9%) | |||
Negative Goodwill Amortization (2) | 11 | 9 | (14.6%) | |||
Minority Interest (3) | - | - | N/A | |||
NET INCOME | 58,526 | 69,748 | 19.2% | |||
EPS (Ch$) | 1.79 | 2.14 | ||||
EPADS (US$) | 0.20 | 0.24 | ||||
Common Shares Outstanding (Th) | 32,651,166 | 32,651,166 | ||||
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UNDERCHILEANGAAP,THOUSANDUS$
Table 44.1
(in thousand US$ of 3M08) | 3M 07 | 3M 08 | Var % | |||
Gross Operating Margin | 2,073 | 1,983 | (4.4%) | |||
S&A Expenses | (9,968) | (9,628) | 3.4% | |||
Operating Income | (7,895) | (7,646) | 3.2% | |||
Endesa | 73,629 | 106,405 | 44.5% | |||
Chilectra | 50,165 | 69,303 | 38.2% | |||
Edesur | 23,245 | 4,480 | (80.7%) | |||
Edelnor | 6,149 | (6,182) | (200.5%) | |||
Ampla | 6,621 | 16,465 | 148.7% | |||
Coelce | - | - | N/A | |||
Codensa | 6,437 | 142 | (97.8%) | |||
CAM LTDA | 781 | 286 | (63.4%) | |||
Inm Manso de Velasco | 1,435 | 1,444 | 0.7% | |||
Synapsis | 529 | 3,056 | 477.8% | |||
Endesa Brasil | 12,809 | 35,342 | 175.9% | |||
CGTF | - | - | N/A | |||
Others | - | - | N/A | |||
Net Income from Related Companies | 181,800 | 230,742 | 26.9% | |||
Interest Income | 25,581 | 17,367 | (32.1%) | |||
Interest Expense | (33,813) | (30,132) | 10.9% | |||
Net Financial Income (Expenses) | (8,233) | (12,765) | (55.1%) | |||
Other Non Operating Income | 4,364 | 8,919 | 104.4% | |||
Other Non Operating Expenses | (728) | (185) | 74.5% | |||
Net other Non Operating Income (Expenses) | 3,636 | 8,733 | 140.2% | |||
Price Level Restatement | (430) | (3,548) | (724.7%) | |||
Foreign Exchange Effect | 3,368 | (49,898) | (1581.7%) | |||
Net Monetary Exposure | 2,937 | (53,447) | (1919.5%) | |||
Positive Goodwill Amortization | (33,637) | (33,515) | 0.4% | |||
Non Operating Income | 146,504 | 139,749 | (4.6%) | |||
Net Income before (1), (2) & (3) | 138,609 | 132,103 | (4.7%) | |||
Income Tax (1) | (4,924) | 27,222 | (652.9%) | |||
Negative Goodwill Amortization (2) | 25 | 21 | (14.6%) | |||
Minority Interest (3) | - | - | N/A | |||
NET INCOME | 133,710 | 159,349 | 19.2% | |||
EPS (Ch$) | 1.79 | 2.14 | ||||
EPADS (US$) | 0.20 | 0.24 | ||||
Common Shares Outstanding (Th) | 32,651,166 | 32,651,166 | ||||
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OWNERSHIP OF THE COMPANY AS OF MARCH 31,2008
CONFERENCE CALL INVITATION
Enersis is pleased to inform you that it will hold a conference call to review its results for the period, on Monday, April 28, 2008, at 12:00 AM EST (Eastern Standard Time) (12:00 pm Chilean time). To participate, please dial +1 (617) 213-4866 or +1 (888) 713-4214 (toll free USA), approximately 10 minutes prior to the scheduled start time, Passcode ID: 23968574.
The phone replay will be available between April 28, 2008, and May 05, 2008, dialing +1 (617) 801-6888 or +1 (888) 286-8010 (toll free USA) Passcode ID: 86353109.
To access the call online, or to access the replay, go to:http://www.enersis.com Investor Relations.
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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 |
María Luz Muñoz | |||
Investor Relations | |||
Assistant | |||
mlmr@e.enersis.cl | |||
56 (2) 353 4682 |
DISCLAIMER
This Press Release contains statements that could constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this announcement and include statements regarding the intent, belief or current expectations of Enersis and its management with respect to, among other things: (1) Enersis’ business plans; (2) Enersis’ cost-reduction plans; (3) trends affecting Enersis’ financial condition or results of operations, including market trends in the electricity sector in Chile or elsewhere; (4) supervision and regulation of the electricity sector in Chile or elsewhere; and (5) the future effect of any changes in the laws and regulations applicable to Enersis’ or its subsidiarys. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of various factors. These factors include a decline in the equity capital markets of the United States or Chile, an increase in the market rates of interest in the United States or elsewhere, adverse decisions by government regulators in Chile or elsewhere and other factors described in Enersis’ Annual Report on Form 20-F. Readers are cautioned not to place undue reliance on those forward-looking statements, which state only as of their dates. Enersis undertakes no obligation to release publicly the result of any revisions to these forward-looking statements.
Pg. 52
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
ENERSIS S.A. | |
By: /s/ Ignacio Antoñanzas | |
-------------------------------------------------- | |
Title: Chief Executive Officer |
Date: May 5, 2008