FORM 6-K
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of July, 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
ontained in this Form, the Registrant is also thereby furnishing the
information to the Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes [ ] No [X]
If °;Yes” is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): N/A
PRESS RELEASE | ||
ENERSIS ANNOUNCES CONSOLIDATED RESULTS FOR
THE FIRST HALF ENDED JUNE 30, 2008
HIGHLIGHTS FOR THEPERIOD
[All figures in Chilean Pesos]
ECONOMIC-FINANCIALSUMMARY
The most important topics as of June 2008, as compared with June 2007, may be summarized as follows:
• Operating Revenues grew by 28.5%, for the first time overstepping Ch$ 3 trillion, recording Ch$3,000,843 million.
• Operating Income increased by 19.1%, reaching Ch$794,694 million, due to an increase in:
Distribution | 21.3% | ||
Generation and Transmission | 16.8% |
• Net Income amounted to Ch$155,940 million, representing a 137.8% increase.
• Business liquidity, reflected by the net cash flow from operating activities, increased by 74.7%, reaching Ch$747,347 million.
• Net Interest Income improved by Ch$13,469 million, an 8.3% income.
SUMMARY OFDISTRIBUTIONBUSINESS
• Operating Revenues provided by Distribution business continued to grow, this time, by 18.7%, reaching Ch$283,452 million.
• In addition to other reasons, higher revenues were recorded thanks to an additional 385,000 new clients over the last 12 months, broken down as follows:
• Chile 3.2% or 47 thousand new clients
• Argentina 1.6% or 36 thousand new clients
• Colombia 3.2% or 69 thousand new clients
• Brazil 4.0 % or 202 thousand new clients
• Peru 3.6% or 35 thousand new clients
This reflects the natural growth of our subsidiaries, due to the incorporation of new clients at an annual average rate of 3% and 4%. In terms of number of new clients, this is equivalent to opening a new medium size Distribution company every year.
• Consolidated physical sales increased by 2.1%, while Peru taking the lead in terms of growth, with a 7.6% increase over June 2007 figures.
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• An important improvement in Distribution business was the reduction in energy losses, which dropped from 11.3% to 10.8% .
• On March 11, 2008, the third auction of energy for distribution companies was made. It was done in two blocks, 1,800 GWh/year for years 2011 to 2021 and 1,500 GWh/year for years 2022 and 2023 and adjudged 1.8 TWh/ year at an average price of 65.8 US$/MWh.
• Regarding Tariff Revisions, the schedule is as follows;
• Codensa, scheduled for 2008.
• Edesur, scheduled for 2008.
• Chilectra, scheduled for November 2008.
• Ampla, scheduled for March 2009.
• Coelce, scheduled for April 2011.
SUMMARY OFGENERATIONBUSINESS
• As Distribution business, Operating Income coming from Generation and Transmission also showed an important increase by 40%, reaching Ch$396,633 million.
• Operating revenues increased, due to a 3.0% higher consolidated sales explained by an increase in installed capacity from 13,602 to 13,885 MW, basically due to the incorporation of new projects, such as San Isidro II, Taltal, Palmucho, Canela and Ojos de Agua.
• The incorporation of these new projects reflects the real commitment of Enersis to providing a safe energy supply in keeping with the country’s demand. At the same time, two of the above-mentioned projects are part of initiatives intended to supply the environmentally-compatible system of solutions with the highest degree of standards and sustainability requirements.
• Generation subsidiaries reporting the highest operating increases were Emgesa and Endesa Costanera.
MARKETSUMMARY
• Enersis continues to be one of the most liquid companies in Chile
January 08 | February | March | April | May | June 08 | |||||||
Total Traded Amounts (MM Ch$) | 2,272,001 | 1,166,947 | 1,248,822 | 1,775,611 | 2,207,625 | 1,626,523 | ||||||
Part Enersis (%) | 8.0% | 6.6% | 8.9% | 12.5% | 4.9% | 4.8% | ||||||
RISKRATINGCLASSIFICATIONINFORMATION
In the macroeconomic arena, is important to highlight that in the second quarter of 2008, two of the countries in which Enersis operates received an Investment Grade classification. This means that cash flow coming from our businesses in those countries may become increasingly predictable and stable. Moreover, these countries have been awarded at least two ratings, thus facilitating the participation of new international funds in the development and financing of large-scale energy projects, for which Enersis is an excellent market reference.
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The upgrades are as follows:
Brazil
• S Fitch BBB- April 2, 2008
• &P BBB- July 14, 2008
Peru
• S&P BBB- April 30, 2008
• Fitch BBB- May 29, 2008
Enersis risk classification is as follows;
INTERNATIONAL CORPORATIVE CLASSIFICATION
CHILEAN BOND CLASSIFICATION
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GENERALINFORMATION
(Santiago, Chile, July 31, 2008) Enersis S.A. (NYSE: ENI), announced today its consolidated financial results for the first half ended on June 30, 2008. All figures are in both US$ and Ch$, under Chilean Generally Accepted Accounting Principles (Chilean GAAP), as seen in the standardized form required by Chilean authorities (FECU). Variations refer to the period between June 30, 2007 and June 30, 2008. Figures for 2008 have been adjusted by the accounting convention for CPI variation between both periods, accounting to 8.9% .
Any figures in US$ are merely offered as a convenience translation, using theobservado exchange rate of Ch$526.05 = US$1 for June 30, 2008. The Chilean pesos appreciated by 0.2% against the US$ between June 30, 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 June 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)
The chart below presents the performance of Enersis’ ADS stock price listing in NYSE (“ENI”) against Dow Jones and the DJ Utilities Index:
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 selective Chilean Stock Index:
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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:
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DEBTMARKET
The following chart shows the pricing of our Yankee Bonds during the last twelve months.
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RISKRATINGCLASSIFICATION
Fitch: BBB / Stable
Rationale(July 2, 2008); “Fitch Ratings 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', which affects its foreign unsecured debt issuances. In addition Enersis’ national scale rating was affirmed at ‘AA-(chl)’, which affects approximately US$84 million of local bond issuances (UF denominated). All ratings have a Stable Outlook. The ratings reflect the expected growth in energy demand all throughout Latin America. The ratings are tempered by the company’s dependence on dividend payments from its subsidiaries to repay its own debt, and its exposure to less creditworthy international markets, such as Argentina and Colombia, which adds some volatility to the earnings profile.”
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.”
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 2, 2008); “Fitch Ratings has affirmed Enersis’ national scale rating at ‘AA-(chl)’, which affects approximately US$84 million of local bond issuances (UF denominated). All ratings have a Stable Outlook. In addition, Fitch affirmed Enersis’ equity rating at ‘Level 1’. The ratings are tempered by the company’s dependence on dividend payments from its subsidiaries to repay its own debt, and its exposure to less creditworthy international markets, such as Argentina and Colombia, which adds some volatility to the earnings profile.”
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CONSOLIDATEDINCOMESTATEMENT
UNDERCHILEANGAAP, MILLIONCH$
Table 2 | ||||
CONS. INCOME STATEMENT - (million Ch$) | 6M 07 | 6M 08 | Var 07-08 | Chg % |
Revenues from Generation & Transmission | 990,767 | 1,387,400 | 396,633 | 40.0% |
Revenues from Distribution | 1,513,225 | 1,796,677 | 283,452 | 18.7% |
Revenues from Engineering and Real Estate | 21,243 | 21,022 | (221) | (1.0%) |
Revenues from Other Businesses | 101,163 | 109,610 | 8,447 | 8.3% |
Consolidation Adjustments | (290,435) | (313,866) | (23,431) | (8.1%) |
Operating Revenues | 2,335,963 | 3,000,843 | 664,880 | 28.5% |
Costs from Generation | (615,535) | (953,767) | (338,232) | (54.9%) |
Costs from Distribution | (1,085,435) | (1,308,170) | (222,735) | (20.5%) |
Costs from Engineering and Real Estate | (17,083) | (16,616) | 467 | 2.7% |
Costs from Other Businesses | (83,768) | (89,298) | (5,530) | (6.6%) |
Consolidation Adjustments | 274,377 | 300,357 | 25,980 | 9.5% |
Operating Costs | (1,527,444) | (2,067,494) | (540,050) | (35.4%) |
Gross Profit | 808,519 | 933,349 | 124,830 | 15.4% |
SG&A from Generation | (25,006) | (24,525) | 481 | 1.9% |
SG&A from Distribution | (110,460) | (103,466) | 6,994 | 6.3% |
SG&A from Engineering and Real Estate | (1,989) | (2,049) | (60) | (3.0%) |
SG&A from Other Businesses | (22,354) | (24,713) | (2,359) | (10.6%) |
Consolidation Adjustments | 18,490 | 16,098 | (2,392) | (12.9%) |
Selling and Administrative Expenses | (141,319) | (138,655) | 2,664 | 1.9% |
Operating Income | 667,200 | 794,694 | 127,494 | 19.1% |
Interest Income | 60,065 | 68,030 | 7,965 | 13.3% |
Interest Expense | (222,007) | (216,503) | 5,504 | 2.5% |
Net Interest (Expense) | (161,942) | (148,473) | (13,469) | 8.3% |
Equity Gains from Related Companies | 1,436 | 4,405 | 2,969 | 206.7% |
Equity Losses from Related Companies | (3,953) | (998) | 2,955 | 74.8% |
Net Income from Related Companies | (2,517) | 3,408 | 5,925 | N/A |
Other Non Operating Income | 96,510 | 83,958 | (12,552) | (13.0%) |
Other Non Operating Expenses | (239,282) | (181,158) | 58,124 | 24.3% |
Net other Non Operating Income (Expense) | (142,772) | (97,200) | 45,572 | 31.9% |
Price Level Restatement | (2,400) | (3,964) | (1,564) | (65.2%) |
Foreign Exchange Effect | 3,845 | 573 | (3,272) | (85.1%) |
Net of Monetary Exposure | 1,445 | (3,391) | (4,836) | N/A |
Positive Goodwill Amortization | (30,959) | (30,941) | 18 | 0.1% |
Non Operating Income | (336,745) | (276,597) | 60,148 | 17.9% |
Net Inc b. Taxes, Min Int and Neg Goodwill Amort. | 330,455 | 518,097 | 187,642 | 56.8% |
Extraordinary Items | - | - | - | - |
Income Tax | (173,769) | (171,503) | 2,266 | 1.3% |
Minority Interest | (93,609) | (193,079) | (99,470) | (106.3%) |
Negative Goodwill Amortization | 2,501 | 2,425 | (76) | (3.0%) |
NET INCOME | 65,578 | 155,940 | 90,362 | 137.8% |
EBITDA (*) | 901,874 | 1,027,506 | 125,632 | 13.9% |
(*) EBITDA: Operating Income+Depreciation+Amortization |
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UNDERCHILEANGAAP, THOUSANDUS$
Table 2.1 | ||||
CONS. INCOME STATEMENT - (thousand US$) | 6M 07 | 6M 08 | Var 07-08 | Chg % |
Revenues from Generation & Transmission | 1,883,408 | 2,637,392 | 753,984 | 40.0% |
Revenues from Distribution | 2,876,580 | 3,415,411 | 538,831 | 18.7% |
Revenues from Engineering and Real Estate | 40,382 | 39,962 | (420) | (1.0%) |
Revenues from Other Businesses | 192,307 | 208,364 | 16,057 | 8.3% |
Consolidation Adjustments | (552,105) | (596,647) | (44,542) | (8.1%) |
Operating Revenues | 4,440,572 | 5,704,483 | 1,263,911 | 28.5% |
Costs from Generation | (1,170,107) | (1,813,073) | (642,966) | (54.9%) |
Costs from Distribution | (2,063,369) | (2,486,779) | (423,410) | (20.5%) |
Costs from Engineering and Real Estate | (32,474) | (31,586) | 888 | 2.7% |
Costs from Other Businesses | (159,240) | (169,752) | (10,512) | (6.6%) |
Consolidation Adjustments | 521,580 | 570,967 | 49,387 | 9.5% |
Operating Costs | (2,903,610) | (3,930,224) | (1,026,614) | (35.4%) |
Gross Profit | 1,536,962 | 1,774,259 | 237,297 | 15.4% |
SG&A from Generation | (47,535) | (46,621) | 914 | 1.9% |
SG&A from Distribution | (209,980) | (196,685) | 13,295 | 6.3% |
SG&A from Engineering and Real Estate | (3,781) | (3,895) | (114) | (3.0%) |
SG&A from Other Businesses | (42,494) | (46,978) | (4,484) | (10.6%) |
Consolidation Adjustments | 35,149 | 30,602 | (4,547) | (12.9%) |
Selling and Administrative Expenses | (268,642) | (263,577) | 5,065 | 1.9% |
Operating Income | 1,268,321 | 1,510,682 | 242,361 | 19.1% |
Interest Income | 114,181 | 129,322 | 15,141 | 13.3% |
Interest Expense | (422,026) | (411,563) | 10,463 | 2.5% |
Net Interest (Expense) | (307,845) | (282,241) | 25,604 | 8.3% |
Equity Gains from Related Companies | 2,730 | 8,374 | 5,644 | 206.7% |
Equity Losses from Related Companies | (7,515) | (1,896) | 5,619 | 74.8% |
Net Income from Related Companies | (4,784) | 6,478 | 11,262 | N/A |
Other Non Operating Income | 183,461 | 159,600 | (23,861) | (13.0%) |
Other Non Operating Expenses | (454,866) | (344,374) | 110,492 | 24.3% |
Net other Non Operating Income (Expense) | (271,404) | (184,774) | 86,630 | 31.9% |
Price Level Restatement | (4,562) | (7,536) | (2,974) | (65.2%) |
Foreign Exchange Effect | 7,309 | 1,089 | (6,220) | (85.1%) |
Net of Monetary Exposure | 2,747 | (6,447) | (9,194) | N/A |
Positive Goodwill Amortization | (58,853) | (58,817) | 36 | 0.1% |
Non Operating Income | (640,139) | (525,801) | 114,338 | 17.9% |
Net Inc b. Taxes, Min Int and Neg Goodwill Amort. | 628,181 | 984,882 | 356,701 | 56.8% |
Extraordinary Items | - | - | - | - |
Income Tax | (330,329) | (326,020) | 4,309 | 1.3% |
Minority Interest | (177,947) | (367,035) | (189,088) | (106.3%) |
Negative Goodwill Amortization | 4,754 | 4,610 | (144) | (3.0%) |
NET INCOME | 124,659 | 296,436 | 171,777 | 137.8% |
EBITDA (*) | 1,714,426 | 1,953,248 | 238,822 | 13.9% |
(*) EBITDA: Operating Income+Depreciation+Amortization |
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CONSOLIDATEDINCOMESTATEMENTANALYSIS
(Source in Ch$ FECU)
NETINCOME
As of June 30, 2008, Enersis’ income had increased significantly by 137.8% totaling Ch$155,940 million, which is Ch$90,362 million greater than the previous year’s first half income, which amounted to Ch$65,578 million.
OPERATINGINCOME
Operating income ending June 30, 2008 increased by Ch$127,494 million, up from Ch$667,200 million on June 30, 2007 to Ch$794,694 million for this period, corresponding to a 19.1% increase. This is due to the good results recorded in the distribution and generation businesses.
Generation and Transmission Businesses showed a Ch$58,882 million increase in their operating income, equal to 16.8%, totaling Ch$409,108 million. This increase was recorded despite a 3.9% decrease in physical generation sales, which dropped from 32,801 GWh in June 2007 to 31,532 GWh in June 2008 primarily as a result of a 4.9% decrease in Chile, and a 9.9% decrease in Argentina brought on by lower hydrology in both countries and shrinking demand due to public and private sector campaigns to save electricity in Chile.
In theDistribution sector our subsidiaries recorded a Ch$67,711 million increase in their operating income, which is equal to a 21.3% hike amounting to Ch$385,041 million. Physical sales ending June 30, 2008 totaled 31,085 GWh, up 645 GWh or 2.1% from the same period last year. Furthermore, a total of 385 thousand new customers signed on representing a 3.3% increase over same period last year for a total customer base greater than 12.1 million.
Table 4 | ||||||||||
6M 07 | 6M 08 | |||||||||
Million Ch$ | Operating | Operating | SG & A | Operating | Operating | Operating | SG& A | Operating | ||
Revenues | Costs | Income | Revenues | Costs | Income | |||||
Endesa Chile | 859,529 | (536,398) | (20,577) | 302,554 | 1,074,659 | (741,692) | (19,566) | 313,401 | ||
Cachoeira (*) | 44,682 | (16,583) | (1,171) | 26,928 | 93,418 | (19,633) | (1,323) | 72,462 | ||
Fortaleza (**) | 55,501 | (30,435) | (787) | 24,279 | 61,581 | (45,178) | (1,018) | 15,385 | ||
Cien (**) | 63,057 | (61,598) | (2,652) | (1,193) | 172,613 | (159,355) | (2,762) | 10,496 | ||
Chilectra | 397,699 | (306,578) | (24,148) | 66,973 | 503,988 | (412,706) | (22,186) | 69,096 | ||
Edesur | 165,621 | (128,464) | (21,141) | 16,016 | 161,278 | (125,857) | (24,538) | 10,883 | ||
Distrilima (Edelnor) | 119,858 | (84,706) | (10,706) | 24,446 | 127,207 | (86,271) | (10,892) | 30,044 | ||
Ampla | 304,736 | (211,800) | (14,572) | 78,364 | 377,889 | (257,559) | (16,815) | 103,515 | ||
Investluz (Coelce) | 240,575 | (160,014) | (30,794) | 49,767 | 277,605 | (198,534) | (19,266) | 59,805 | ||
Codensa | 283,976 | (193,872) | (9,100) | 81,004 | 348,710 | (227,243) | (9,643) | 111,824 | ||
CAM Ltda. | 68,409 | (57,970) | (5,449) | 4,990 | 75,333 | (64,317) | (7,439) | 3,577 | ||
Inmobiliaria Manso de Velasco Ltda. | 5,181 | (3,985) | (1,360) | (164) | 4,112 | (3,020) | (1,343) | (251) | ||
Synapsis Soluciones y Servicios IT Ltda. | 30,157 | (23,428) | (5,887) | 842 | 31,688 | (24,156) | (3,963) | 3,569 | ||
Enersis Holding and other investment vehicles | 2,598 | (2,372) | (10,883) | (10,657) | 2,589 | (825) | (13,348) | (11,584) | ||
Consolidation Adjustments | (305,616) | 290,759 | 17,908 | 3,051 | (311,827) | 298,852 | 15,447 | 2,472 | ||
Total Consolidation | 2,335,963 | (1,527,444) | (141,319) | 667,200 | 3,000,843 | (2,067,494) | (138,655) | 794,694 | ||
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Table 4.1 | ||||||||||
6M 07 | 6M 08 | |||||||||
Thousand US$ | Operating | Operating | SG & A | Operating Income | Operating | Operating | SG& A | Operating | ||
Revenues | Costs | Revenue | Costs | Income | ||||||
Endesa Chile | 1,633,930 | (1,019,671) | (39,115) | 575,144 | 2,042,884 | (1,409,927) | (37,193) | 595,763 | ||
Cachoeira (*) | 84,939 | (31,523) | (2,227) | 51,189 | 177,583 | (37,321) | (2,515) | 137,747 | ||
Fortaleza (**) | 105,504 | (57,855) | (1,496) | 46,154 | 117,064 | (85,882) | (1,935) | 29,247 | ||
Cien (**) | 119,868 | (117,095) | (5,042) | (2,269) | 328,130 | (302,927) | (5,251) | 19,952 | ||
Chilectra | 756,011 | (582,792) | (45,904) | 127,314 | 958,062 | (784,538) | (42,174) | 131,350 | ||
Edesur | 314,839 | (244,205) | (40,189) | 30,446 | 306,583 | (239,250) | (46,646) | 20,687 | ||
Distrilima (Edelnor) | 227,845 | (161,023) | (20,351) | 46,472 | 241,816 | (163,997) | (20,705) | 57,115 | ||
Ampla | 579,292 | (402,624) | (27,700) | 148,968 | 718,351 | (489,609) | (31,964) | 196,778 | ||
Investluz (Coelce) | 457,324 | (304,181) | (58,539) | 94,603 | 527,717 | (377,405) | (36,624) | 113,687 | ||
Codensa | 539,827 | (368,543) | (17,298) | 153,985 | 662,883 | (431,979) | (18,331) | 212,573 | ||
CAM Ltda. | 130,043 | (110,198) | (10,358) | 9,487 | 143,205 | (122,265) | (14,142) | 6,798 | ||
Inmobiliaria Manso de Velasco Ltda. | 9,849 | (7,575) | (2,585) | (311) | 7,818 | (5,741) | (2,553) | (477) | ||
Synapsis Soluciones y Servicios IT Ltda. | 57,328 | (44,536) | (11,190) | 1,602 | 60,238 | (45,919) | (7,533) | 6,787 | ||
Enersis Holding and other investment vehicles | 4,939 | (4,510) | (20,688) | (20,259) | 4,921 | (1,569) | (25,374) | (22,023) | ||
Consolidation Adjustments | (580,964) | 552,721 | 34,043 | 5,800 | (592,771) | 568,107 | 29,364 | 4,699 | ||
Total Consolidation | 4,440,575 | (2,903,610) | (268,639) | 1,268,326 | 5,704,483 | (3,930,224) | (263,576) | 1,510,683 | ||
(*) 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. |
NONOPERATINGINCOME
As of the end of first semester 2008, the company had recorded a loss in non-operating income amounting to Ch$276,597 million, which represents Ch$60,148 million less in losses compared to the same period in 2007, which totaled Ch$336,745 million.
Interest expense net of interest incomeunderwent an 8.3% decrease equal to Ch$13.469 million, resulting from a drop in net expenses of Ch$161.942 million as of June 2007 to net expenses of Ch$148.473 million for the current period. This decrease in interest expense is primarily due to greater interest income of Ch$7.965 million, mostly from Chilectra, Edesur, and Codensa, and greater interest expense of Ch$5.504 million, primarily from Endesa Chile, given a lower average exchange rate, and from Edesur as a result of lower fine updates which were partially offset by Codensa’s greater debt.
Equity in income of related companies, net, increased by Ch$5,925 million after having gone from a net loss of Ch$2,517 million during first semester 2007 to a net income of Ch$3,408 million in the current period. This increased benefit was partially the result of having recognized the Ch$2,692 million in income obtained fromInversiones Gas Atacama Holding during the period (a Ch$3,002 million loss for the June 2007 period).
Goodwill amortizationdid not undergo any significant changes and amounted to Ch$30,941 million as of June 30th, 2008, with a decrease of Ch$18 million.
Other non-operating income and expenses, net, recorded a loss of Ch$45,572 million, from Ch$142,772 million in June 2007 to a net loss of Ch$97,200 million in the current period. The main reasons for this change are as follows:
• A lower net loss of Ch$60,944 million resulting from an adjustment for converting to Chilean standards, after having reconciled under Technical Bulletin No. 64 primarily in the Brazilian and Colombian subsidiaries (Ch$24,276 million, net of minority interest).
• Fewer expenses related to a Heritage Tax in Colombia of Ch$9,651 million.
• Fewer expenses related to fines and penalties of Ch$11,834 million, primarily in CIEN, Edesur, and CGTF.
• Increased income of Ch$8,111 million resulting from a reversal of the contingency provision, mainly in Ampla.
Pg. 15
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The above was partially offset by:
• Ch$31,880 million less in income due to tariff adjustments in previous fiscal years in Edesur, which was recognized during first quarter 2007.
• Ch$9,429 million less in revenues in CIEN due to the liquidation of its contract with Cemsa, recognized in 2007.
Price-level restatementunderwent a negative change of Ch$1,564 million, primarily due to the impact of higher inflation during first semester 2008 which hit 3.2% versus 1.9% during the same period in 2007. This change has affected both non-monetary and monetary assets and liabilities, mainly UF-denominated bonds, in addition to updated income accounts.
Foreign currency translationas of June 30th, 2008 revealed a negative change of Ch$3,272 million, moving from a positive balance of Ch$3,845 million in first semester 2007 to Ch$573 million for the current period. This is the result of both an active position of mismatch in dollars held by the company during both periods and changes in the Chilean peso-dollar parity. Consequently during the previous period the exchange rate fell $5.53 pesos from Ch$532.39 to Ch$526.86 while it actually increased Ch$29.16 this period from Ch$496.89 to Ch$526.05.
Income Taxes and Deferred Taxesduring first semester 2008 recorded an expense of Ch$171,503 million, which represents a positive change of Ch$2,266 million when compared to the Ch$173,769 million expense recorded as of June 30, 2007.
TheIncome Tax Expense decreased Ch$4,714 million, which is primarily due to lower income tax provisions in our following subsidiaries: Endesa Chile, Ch$22,650 million; Coelce, Ch$10,048 million; CIEN, Ch$7,888 million; El Chocón, Ch$3,972 million; and CGTF, Ch$2,642 million. This was partially offset by greater provisions in Ampla, Ch$12,536 million; Codensa, Ch$9,568 million; Emgesa, Ch$5,334 million; Pehuenche, Ch$5,207 million; Costanera, Ch$4,585 million; and San Isidro, Ch$3,727 million.
RegardingDeferred Taxes, which do not represent cash flows, they recorded a negative change of Ch$2,448 million, primarily due to the recorded changes in CIEN for Ch$13,983; San Isidro for Ch$8,674 million; Endesa Chile for Ch$4,977 million; Chilectra for Ch$2,572 million; Edelnor for Ch$1,995 million; and CGTF for Ch$1,010 million, which was partially offset by Coelce for Ch$9,418 million; Edesur for Ch$9,363 million; Ampla for Ch$5,699 million; Enersis for Ch$4,886 million; and Codensa for Ch$3,047 million.
Goodwill Amortizationamounted to Ch$2,425 million as of June 30th, 2008, which does not represent any significant change from the same period last year for which this figure totaled Ch$2,501 million.
Minority Interestincreased by Ch$99,470 million for a total of Ch$193,079 million. This was triggered by a significant increase in the results of some of our subsidiaries that now have a high percentage of minority interest, to which Codensa underwent an increase of Ch$35,502 million; Endesa Chile, Ch$27,056 million; Emgesa, Ch$18,141 million; Endesa Brazil, Ch$16,403 million; and Coelce, Ch$6,210; this was partially offset by a decrease in Edesur of Ch$ 5,193 million and in El Chocón of Ch$2,034 million. (See Note 21.b of the FECU for more information)
Pg. 16
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EVOLUTIONOFKEYFINANCIALRATIOS
Table 5 | |||||
Indicator | Unit | 6M 07 | 6M 08 | Var 07-08 | Chg % |
Liquidity | Times | 1.31 | 1.20 | (0.11) | (8.4%) |
Acid ratio test * | Times | 1.21 | 1.12 | (0.09) | (7.4%) |
Working capital | million Ch$ | 456,884 | 443,545 | (13,339) | (2.9%) |
Working capital | th. US$ | 868,518 | 843,162 | (25,356) | (2.9%) |
Leverage ** | Times | 1.01 | 1.10 | 0.09 | 8.9% |
Short-term debt | % | 0.24 | 0.34 | 0.10 | 41.7% |
Long-term debt | % | 0.76 | 0.66 | (0.10) | (13.2%) |
Interest Coverage*** | Times | 4.33 | 5.06 | 0.73 | 16.9% |
EBITDA**** | th. US$ | 1,714,426 | 1,953,248 | 238,821 | 13.9% |
ROE | % | 4.30% | 10.22% | 5.92% | 137.7% |
ROA | % | 1.08% | 2.52% | 1.44% | 133.3% |
* 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 |
Theliquidity index as of June 2008 amounted to 1.20 times, revealing a 0.11 -fold decrease, equal to 8.4%, compared to the same period last year. The latter is due to a temporary situation. In effect, during the second quarter took place the refinancing of Endesa Chile’s bonds that mature in less than one year and that were transferred to the short term. Despite the latter, the indexes reflect that the company enjoys a sound position in terms of liquidity, while it continues to hold bank debt and finance its investments with cash surplus, while having an appropriate schedule of debt maturity.
Theindebtedness ratio sits at 1.10 as of June 30, 2008, having increasing 8.9% over its 2007 level.
Financial expenses coverage increased 0.73 times or the equivalent of 16.9%, having jumped from 4.33 times in June 2007 to 5.06 times in the current period. This is due to the better results obtained by the Enersis Group during this period, in addition to a reduction in interest expense.
Furthermore, the annualprofitability based on shareholders’ equity amounted to 10.22%, which was 4.30% for the same period last year.
Annualprofitability based on assetsjumped from 1.08% in June 2007 to 2.52% in June 2008, which is also a reflection of the better results recorded for this year, partly offset by an increase in dollar-denominated assets.
Pg. 17
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CONSOLIDATEDBALANCESHEET
ASSETSUNDERCHILEANGAAP,MILLIONCH$
Table 6 | ||||
ASSETS - (million Ch$) | 6M 07 | 6M 08 | Var 07-08 | Chg % |
CURRENT ASSETS | ||||
Cash | 51,882 | 103,197 | 51,315 | 98.9% |
Time deposits | 345,169 | 488,593 | 143,424 | 41.6% |
Marketable securities | 13,966 | 14,957 | 990 | 7.1% |
Accounts receivable, net | 1,025,786 | 1,178,722 | 152,936 | 14.9% |
Notes receivable, net | 10,272 | 16,764 | 6,492 | 63.2% |
Other accounts receivable, net | 121,516 | 77,064 | (44,452) | (36.6%) |
Amounts due from related companies | 43,981 | 193,326 | 149,345 | 339.6% |
Inventories | 92,733 | 101,815 | 9,082 | 9.8% |
Income taxes recoverable | 86,179 | 175,811 | 89,632 | 104.0% |
Prepaid expenses | 50,291 | 67,550 | 17,259 | 34.3% |
Deferred income taxes | 63,107 | 79,693 | 16,586 | 26.3% |
Other current assets | 40,154 | 163,561 | 123,407 | - |
Total currrent assets | 1,945,037 | 2,661,054 | 716,017 | 36.8% |
PROPERTY, PLANT AND EQUIPMENT | ||||
Land | 145,793 | 145,288 | (505) | (0.3%) |
Buildings and infraestructure and works in progress | 12,198,483 | 12,039,548 | (158,935) | (1.3%) |
Machinery and equipment | 2,209,335 | 2,163,861 | (45,474) | (2.1%) |
Other plant and equipment | 687,602 | 674,405 | (13,197) | (1.9%) |
Technical appraisal | 34,843 | 34,682 | (161) | (0.5%) |
Sub - Total | 15,276,056 | 15,057,785 | (218,272) | (1.4%) |
Accumulated depreciation | (6,481,177) | (6,561,467) | (80,290) | (1.2%) |
Total property, plant and equipment | 8,794,880 | 8,496,318 | (298,562) | (3.4%) |
OTHER ASSETS | ||||
Investments in related companies | 121,617 | 72,734 | (48,883) | (40.2%) |
Investments in other companies | 26,113 | 24,142 | (1,971) | (7.5%) |
Positive goodwill, net | 695,421 | 631,166 | (64,255) | (9.2%) |
Negative goodwill, net | (46,272) | (37,162) | 9,110 | 19.7% |
Long-term receivables | 166,556 | 212,194 | 45,638 | 27.4% |
Amounts due from related companies | 97,557 | 2,728 | (94,829) | (97.2%) |
Deferred income taxes | - | - | - | - |
Intangibles | 101,399 | 103,795 | 2,396 | 2.4% |
Accumulated amortization | (63,132) | (67,232) | (4,100) | (6.5%) |
Others assets | 308,127 | 290,301 | (17,826) | (5.8%) |
Total other assets | 1,407,386 | 1,232,667 | (174,719) | (12.4%) |
TOTAL ASSETS | 12,147,303 | 12,390,039 | 242,736 | 2.0% |
Pg. 18
PRESS RELEASE | ||
ASSETSUNDERCHILEANGAAP,THOUSANDUS$
Table 6.1 | ||||
ASSETS - (thousand US$) | 6M 07 | 6M 08 | Var 07-08 | Chg % |
CURRENT ASSETS | ||||
Cash | 98,625 | 196,174 | 97,549 | 98.9% |
Time deposits | 656,153 | 928,796 | 272,643 | 41.6% |
Marketable securities | 26,550 | 28,432 | 1,882 | 7.1% |
Accounts receivable, net | 1,949,979 | 2,240,703 | 290,724 | 14.9% |
Notes receivable, net | 19,527 | 31,868 | 12,341 | 63.2% |
Other accounts receivable, net | 230,997 | 146,496 | (84,501) | (36.6%) |
Amounts due from related companies | 83,607 | 367,505 | 283,898 | 339.6% |
Inventories | 176,283 | 193,546 | 17,263 | 9.8% |
Income taxes recoverable | 163,824 | 334,210 | 170,386 | 104.0% |
Prepaid expenses | 95,600 | 128,409 | 32,809 | 34.3% |
Deferred income taxes | 119,963 | 151,493 | 31,530 | 26.3% |
Other current assets | 76,331 | 310,923 | 234,592 | - |
Total currrent assets | 3,697,439 | 5,058,557 | 1,361,118 | 36.8% |
PROPERTY, PLANT AND EQUIPMENT | ||||
Land | 277,147 | 276,187 | (960) | (0.3%) |
Buildings and infraestructure and works in progress | 23,188,828 | 22,886,699 | (302,129) | (1.3%) |
Machinery and equipment | 4,199,858 | 4,113,414 | (86,444) | (2.1%) |
Other plant and equipment | 1,307,103 | 1,282,018 | (25,085) | (1.9%) |
Technical appraisal | 66,235 | 65,929 | (306) | (0.5%) |
Sub - Total | 29,039,172 | 28,624,246 | (414,926) | (1.4%) |
Accumulated depreciation | (12,320,457) | (12,473,086) | (152,629) | (1.2%) |
Total property, plant and equipment | 16,718,714 | 16,151,161 | (567,553) | (3.4%) |
OTHER ASSETS | ||||
Investments in related companies | 231,189 | 138,265 | (92,924) | (40.2%) |
Investments in other companies | 49,640 | 45,893 | (3,747) | (7.5%) |
Positive goodwill, net | 1,321,967 | 1,199,821 | (122,146) | (9.2%) |
Negative goodwill, net | (87,961) | (70,643) | 17,318 | 19.7% |
Long-term receivables | 316,616 | 403,372 | 86,756 | 27.4% |
Amounts due from related companies | 185,452 | 5,186 | (180,266) | (97.2%) |
Deferred income taxes | - | - | - | - |
Intangibles | 192,755 | 197,311 | 4,556 | 2.4% |
Accumulated amortization | (120,011) | (127,805) | (7,794) | (6.5%) |
Others assets | 585,737 | 551,851 | (33,886) | (5.8%) |
Total other assets | 2,675,384 | 2,343,251 | (332,133) | (12.4%) |
TOTAL ASSETS | 23,091,537 | 23,552,969 | 461,432 | 2.0% |
Pg. 19
PRESS RELEASE | ||
LIABILITIES ANDSHAREHOLDERSEQUITYUNDERCHILEANGAAP,MILLIONCH$
Table 7 | ||||
LIABILITIES AND SHAREHOLDER´S EQUITY - (million Ch$) | 6M 07 | 6M 08 | Var 07-08 | Chg % |
CURRENT LIABILITIES | ||||
Short-term debt due to banks and financial institutions | 88,375 | 139,662 | 51,287 | 58.0% |
Current portion of long-term debt due to banks and financial institutions | 129,919 | 145,128 | 15,208 | 11.7% |
Current portion of bonds payable | 188,129 | 643,773 | 455,643 | 242.2% |
Current portion of long-term notes payable | 30,972 | 29,541 | (1,431) | (4.6%) |
Dividends payable | 50,500 | 104,751 | 54,251 | 107.4% |
Accounts payable | 469,476 | 616,018 | 146,542 | 31.2% |
Short-term notes payable | 15,308 | 19,494 | 4,186 | 27.3% |
Miscellaneous payables | 130,541 | 101,731 | (28,810) | (22.1%) |
Accounts payable to related companies | 24,121 | 29,521 | 5,399 | 22.4% |
Accrued expenses | 81,126 | 82,669 | 1,543 | 1.9% |
Withholdings | 108,254 | 107,924 | (330) | (0.3%) |
Income taxes payable | 24,881 | 29,492 | 4,611 | 18.5% |
Anticipated income | 9,202 | 15,390 | 6,188 | 67.2% |
Reinbursable financial contribution | 1,125 | 1,389 | 264 | 23.5% |
Other current liabilities | 136,221 | 151,026 | 14,805 | 10.9% |
Total current liabilities | 1,488,153 | 2,217,509 | 729,356 | 49.0% |
LONG-TERM LIABILITIES | ||||
Due to banks and financial institutions | 1,085,361 | 1,284,146 | 198,785 | 18.3% |
Bonds payable | 2,596,829 | 1,977,870 | (618,959) | (23.8%) |
Long -term notes payable | 131,381 | 129,117 | (2,264) | (1.7%) |
Accounts payables | 160,484 | 189,706 | 29,222 | 18.2% |
Amounts payable to related companies | 10,774 | 7,370 | (3,404) | (31.6%) |
Accrued expenses | 395,014 | 384,250 | (10,764) | (2.7%) |
Deferred income taxes | 2,067 | 59,491 | 57,424 | 100.0% |
Reinbursable financial contribution | 3,582 | 4,109 | 527 | 14.7% |
Other long-term liabilities | 232,227 | 244,692 | 12,465 | 5.4% |
Total long-term liabilities | 4,617,720 | 4,280,751 | (336,969) | (7.3%) |
Minority interest | 2,996,529 | 2,838,355 | (158,174) | (5.3%) |
SHAREHOLDERS´ EQUITY | ||||
Paid-in capital, no par value | 2,630,245 | 2,594,015 | (36,229) | (1.4%) |
Additional paid-in capital | 49,975 | 83,009 | 33,034 | 66.1% |
Additional paid-in capital (share premium) | 191,005 | 190,777 | (228) | (0.1%) |
Other reserves | (293,872) | (434,960) | (141,088) | 48.0% |
Total capital and reserves | 2,577,352 | 2,432,841 | (144,511) | (5.6%) |
Retained earnings | 401,971 | 464,643 | 62,672 | 15.6% |
Net income for the period | 65,578 | 155,940 | 90,363 | 137.8% |
Interim dividends | - | - | - | - |
Deficits of subsidaries in development stage | - | - | - | - |
Total retained earnings | 467,549 | 620,584 | 153,034 | 32.7% |
Total shareholder´s equity | 3,044,901 | 3,053,424 | 8,523 | 0.3% |
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY | 12,147,303 | 12,390,039 | 242,736 | 2.0% |
Pg. 20
PRESS RELEASE | ||
LIABILITIES ANDSHAREHOLDERSEQUITYUNDERCHILEANGAAP,THOUSANDUS$
Table 7.1
LIABILITIES - (thousand US$) | 6M 07 | 6M 08 | Var 07-08 | Chg % |
CURRENT LIABILITIES | ||||
Short-term debt due to banks and financial institutions | 167,998 | 265,492 | 97,494 | 58.0% |
Current portion of long-term debt due to banks and financial institutions | 246,972 | 275,882 | 28,910 | 11.7% |
Current portion of bonds payable | 357,626 | 1,223,786 | 866,160 | 242.2% |
Current portion of long-term notes payable | 58,876 | 56,156 | (2,720) | (4.6%) |
Dividends payable | 95,999 | 199,128 | 103,129 | 107.4% |
Accounts payable | 892,456 | 1,171,026 | 278,570 | 31.2% |
Short-term notes payable | 29,101 | 37,058 | 7,957 | 27.3% |
Miscellaneous payables | 248,153 | 193,386 | (54,767) | (22.1%) |
Accounts payable to related companies | 45,854 | 56,118 | 10,264 | 22.4% |
Accrued expenses | 154,218 | 157,151 | 2,933 | 1.9% |
Withholdings | 205,787 | 205,159 | (628) | (0.3%) |
Income taxes payable | 47,298 | 56,063 | 8,765 | 18.5% |
Anticipated income | 17,493 | 29,257 | 11,764 | 67.2% |
Reinbursable financial contribution | 2,138 | 2,640 | 502 | 23.5% |
Other current liabilities | 258,951 | 287,094 | 28,143 | 10.9% |
Total current liabilities | 2,828,919 | 4,215,395 | 1,386,476 | 49.0% |
LONG-TERM LIABILITIES | ||||
Due to banks and financial institutions | 2,063,228 | 2,441,110 | 377,882 | 18.3% |
Bonds payable | 4,936,469 | 3,759,852 | (1,176,617) | (23.8%) |
Long -term notes payable | 249,750 | 245,446 | (4,304) | (1.7%) |
Accounts payables | 305,074 | 360,623 | 55,549 | 18.2% |
Amounts payable to related companies | 20,481 | 14,010 | (6,471) | (31.6%) |
Accrued expenses | 750,906 | 730,443 | (20,463) | (2.7%) |
Deferred income taxes | 3,930 | 113,091 | 109,161 | 100.0% |
Reinbursable financial contribution | 6,809 | 7,811 | 1,002 | 14.7% |
Other long-term liabilities | 441,455 | 465,150 | 23,695 | 5.4% |
Total long-term liabilities | 8,778,100 | 8,137,536 | (640,564) | (7.3%) |
Minority interest | 5,696,282 | 5,395,600 | (300,682) | (5.3%) |
SHAREHOLDERS´ EQUITY | ||||
Paid-in capital, no par value | 4,999,990 | 4,931,120 | (68,870) | (1.4%) |
Additional paid-in capital | 95,000 | 157,796 | 62,796 | 66.1% |
Additional paid-in capital (share premium) | 363,092 | 362,659 | (433) | (0.1%) |
Other reserves | (558,640) | (826,842) | (268,202) | 48.0% |
Total capital and reserves | 4,899,442 | 4,624,733 | (274,709) | (5.6%) |
Retained earnings | 764,132 | 883,268 | 119,136 | 15.6% |
Net income for the period | 124,660 | 296,436 | 171,776 | 137.8% |
Interim dividends | - | - | - | - |
Deficits of subsidaries in development stage | - | - | - | - |
Total retained earnings | 888,792 | 1,179,704 | 290,912 | 32.7% |
Total shareholder´s equity | 5,788,235 | 5,804,438 | 16,203 | 0.3% |
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY | 23,091,535 | 23,552,969 | 461,434 | 2.0% |
Pg. 21
PRESS RELEASE | ||
CONSOLIDATEDBALANCESHEETANALYSIS
The company’stotal assets as of June 2008 increased by Ch$242,736 million compared to the sameperiod last year, which is mainly due to:
- A Ch$716,017 million increase inCurrent assets, equal to 36.8%, as a result of:
• An increase in debtors due sales of Ch$152,936 million given the greater level of invoicing from Endesa Chile at Ch$27,087 million, Ampla at Ch$24,966 million, Cachoeira Dourada at Ch$16,140 million, Endesa Costanera at Ch$31,834 million and CIEN at Ch$99,365 million, which was partially offset by a decrease in Codensa of Ch$42,472 million, primarily the result of a long-term carryover (Codensa Hogar).
• A Ch$149,345 increase in instruments receivable from related companies primarily due to the transfer to the short term of accounts receivable from Atacama Finance Co. in the amount of Ch$96,370 million and an increase in accounts receivable from GNL Quintero in the amount of Ch$54,906 million, which was partially offset by a decrease in accounts receivable from GNL
Chile in the amount of Ch$3,406 million.
• A Ch$143,424 million increase in time deposits primarily due to Endesa Chile and Enersis having floated Ch$99,556 million and Ch$32,509 million, respectively.
• A Ch$123,407 million increase in other current assets primarily due to Enersis, Endesa Chile, and Chilectra having invested Ch$42,014 million, Ch$15,467 million and Ch$22,144 million, respectively, in Sales and Repurchase Agreements. Furthermore, Enersis invested an additional Ch$23,238 million in deposits for obligations and guarantees, and Coelce invested an additional Ch$18,339 million related to the Brazilian government’s “Light for All” project.
• A Ch$89,632 million increase in recoverable taxes resulting from increases by Endesa Chile for Ch$44,775 million, San Isidro for Ch$10,112 million, Enersis for Ch$ 4,875 million, Chilectra for Ch$7,301 million, Investluz for Ch$7,834 million, Ampla for Ch$11,821 million, and Endesa Eco for Ch$3,117 million.
• A Ch$51,315 million increase in available cash, primarily due to greater balances recorded by Emgesa (Ch$13,534 million) and CIEN (Ch$34,661 million), both due to collections from customers, and Hidroinvest (Ch$7,398 million) due to dividends received.
• A Ch$44,452 million reduction in sundry debtors, primarily due to collections made by Endesa Chile and generation subsidiaries in the amount of Ch$18,943 million (accounts payable resulting from enforcement of the Short Law), Ch$9,093 million in additional funds from the Codensa Hogar portfolio, and fewer advances to suppliers in Coelce (Ch$5,837 million), San Isidro (Ch$2,687 million), Ampla (Ch$3,299 million) and Endesa Eco (Ch$1,209 million), respectively. - A Ch$298,562 million drop inFixed Assets, equal to 3.4%, primarily due to the real exchange rate effect on fixed assets of foreign companies as a result of the methodology of expressing non-monetary assets in historic dollars, according to Technical Bulletin No.64, in subsidiaries domiciled in unstable countries for an amount of approximately Ch$550,000 million, and as a result of the depreciation of one-year fixed assets for an amount of approximately Ch$436,500 million and Ch$2,971 million in sales of fixed assets. The latter was partially offset by additions to fixed assets over the last year for approximately Ch$690,000 million.
- A Ch$174.719 million reduction in Other Assets primarily due to the following:
• A reduction in accounts receivable from related companies in the amount of Ch$94,829 million, primarily due to the transfer to the short term of accounts receivable from Atacama Finance in the amount of Ch$96,370 million.
Pg. 22
PRESS RELEASE | ||
• A reduction in Goodwill in the amount of Ch$64,225 million, essentially due to the amortization of goodwill recorded during the previous twelve months.
• A decrease in investments in related companies in the amount of Ch$48,883 million, primarily due to an investment loss in Gas Atacama Holding Ltda. for Ch$60,500 million, greatly due to an impairment provision over said investment toward the end of 2007 in the amount of Ch$50,455 million. The latter was partially offset by a greater investment in Central Hidroeléctrica de Aysén of Ch$12,633 million.
• A Ch$17,826 million decrease in Other Long-term Assets, primarily due to lower deferred expenses in the amount of Ch$25,528 million, which was partially offset by an increase of Ch$8,908 million in escrow accounts.
• An increase in Long-Term Debtors in the amount of Ch$45,638 million, mainly resulting from the transfer to the short term of Ch$65,312 million in Codensa (Codensa Hogar program), and in Chocón and Endesa Costanera in the amount of Ch$9,105 million for increased contributions to the Wholesale Market Investment Fund (FONINVEMEM). The latter was partly offset by a Ch$20,624 million decrease in Ampla’s regulatory assets.
• A decrease in the balance of negative goodwill in the amount of Ch$9,110 million, largely due to amortization over the last twelve months and the exchange rate effect.
The company’stotal liabilities increased by Ch$242,736 million from the same period last year, whichwas largely due to the following:
- An increase incurrent liabilities of Ch$729,356 million, equal to 49.0%, resulting from changes in the following areas:
• An increase in short-term public debt of Ch$455,643 million mostly due to a transfer to the long term in Endesa Chile of Ch$536,571 million and from Codensa (Ch$13,760 million), which were partially offset by payments in Ampla for Ch$90,124 million and Edesur for Ch$3,709 million.
• A Ch$146,542 million increase in accounts payable due to the following increases: Ch$118,077 million in CIEN because of higher energy purchases; Ch$25,284 million in Costanera; Ch$14,182 million in Ampla; and Ch$11,806 million in Chilectra, all of which was partially offset by a Ch$22,620 million reduction in San Isidro and a Ch$5,659 million reduction in Coelce.
• A Ch$54,251 million increase in dividends payable: Ch$36,672 million correspond to more third-party dividends payable and Ch$17,579 million to Endesa Internacional.
• An increase in bank debt in the amount of Ch$51,287 million primarily due to a Ch$48,910 million increase in Colece and a Ch$6,361 million increase in Cam, partly offset by a reduction in Pangue in the amount of Ch$4,847 million.
• An increase in other current liabilities in the amount of Ch$15,068 million due to increases in CGTF (Ch$5,270 million), Coelce (Ch$4,815 million) and Ampla (Ch$4,107 million). - Long-term liabilities decreased by Ch$336,969 million, equal to 7.3%, in large part due to the following:
• A decrease in public debt in the amount of Ch$618,959 million, primarily due to a transfer to the short term in Endesa Chile of Ch$536,571 million, in Edegel of Ch$18,411 million, and in Edelnor of Ch$15,657 million, and an update due the inflationary effect in comparative terms for approximately Ch$150,000 million. The latter was partly offset by Edelnor having floated an additional Ch$40,793 million in bonds, Edegel having floated Ch$31,330 million and Codensa having floated Ch$13,743 million, and by the Ch$22,922 million effect of local currency on Ampla.
Pg. 23
PRESS RELEASE | ||
• An increase in long-term bank debt in the amount of Ch$198,785 million due to more bank credit in Endesa Chile of Ch$152,859 million in revolving funds, and Ch$89,401 million in Ampla, partly offset by a reduction in El Chocón of Ch$17,045 million, in Costanera of Ch$11,901 million, in Edegel of Ch$7,376 million and in Emgesa of Ch$5,821 million.
• An increase in long-term deferred taxes of Ch$57,424 million, which can be partly explained by the impact of a reduction in deferred tax expenses, primarily due to a reversal in the valuation allowance in Betania given the merger with Emgesa.
Minority interest totaled Ch$2,838,355 million, revealing a reduction of Ch$158,174 million, equal to 5.3%, as a result of reductions in the amount of shareholders’ equity the companies had because of paid dividends, and the effect of the dollar-peso exchange rate (See Note 21 of FECU for more information).
Shareholders’ equity increased by Ch$8,523 million as of June 2007. This change is primarily due to the period’s income of Ch$155,940 million, partly offset by a decrease in reserves of Ch$141,087 million, largely due to the exchange rate effect of the dollar on investment hedges abroad, a reduction in the cumulative results of Ch$2,905 million, and a Ch$3,423 million decrease in capital revaluation.
Pg. 24
PRESS RELEASE | ||
DEBTMATURITY WITHTHIRDPARTIES,MILLIONCH$
Table 8
TOTAL | |||||||
Million Ch$ | 2008 | 2009 | 2010 | 2011 | 2012 | Balance | |
Chile | 222,092 | 520,197 | 55,166 | 108,326 | 12,057 | 1,227,156 | 2,144,994 |
Enersis | 959 | 186,012 | 1,895 | 2,004 | 2,119 | 477,037 | 670,026 |
Chilectra | - | - | - | - | - | - | - |
Other (*) | 7,003 | 2,299 | 810 | - | - | - | 10,112 |
Endesa Chile (**) | 214,130 | 331,885 | 52,461 | 106,322 | 9,938 | 750,119 | 1,464,856 |
Argentina | 25,975 | 56,695 | 51,674 | 57,581 | 18,542 | 5,921 | 216,389 |
Edesur | 2,648 | 11,479 | 14,941 | 14,991 | 5,882 | - | 49,940 |
Costanera | 17,190 | 32,942 | 24,458 | 20,672 | 12,660 | 5,921 | 113,844 |
Chocon | 6,137 | 12,275 | 12,275 | 21,919 | - | - | 52,605 |
Hidroinvest | - | - | - | - | - | - | - |
CTM | - | - | - | - | - | - | - |
Tesa | - | - | - | - | - | - | - |
Perú | 55,847 | 65,192 | 28,902 | 48,471 | 55,064 | 133,533 | 387,009 |
Edelnor | 21,105 | 18,484 | 5,319 | 11,542 | 15,957 | 66,124 | 138,532 |
Edegel | 34,742 | 46,708 | 23,583 | 36,929 | 39,106 | 67,409 | 248,477 |
Brazil | 73,379 | 121,986 | 187,530 | 246,805 | 238,760 | 121,056 | 989,515 |
Endesa Brasil | - | - | - | - | - | - | - |
Coelce | 60,796 | 23,625 | 31,673 | 40,163 | 36,132 | 46,013 | 238,402 |
Ampla | 8,669 | 90,397 | 81,404 | 131,762 | 128,553 | 41,207 | 481,992 |
Cachoeira | - | - | - | - | - | - | - |
Cien | 1,311 | 2,476 | 68,566 | 68,566 | 67,305 | - | 208,224 |
Fortaleza | 2,603 | 5,488 | 5,886 | 6,312 | 6,770 | 33,837 | 60,896 |
Colombia | 40,459 | 100,747 | 61,489 | 164,132 | 92,661 | 292,034 | 751,523 |
Codensa | 40,459 | 13,678 | 61,489 | 54,711 | 9,224 | 175,485 | 355,046 |
Emgesa | - | 87,069 | - | 109,422 | 83,436 | 116,549 | 396,477 |
Betania | - | - | - | - | - | - | - |
TOTAL | 417,752 | 864,816 | 384,760 | 625,316 | 417,083 | 1,779,701 | 4,489,429 |
(*) 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 | 422,189 | 988,873 | 104,868 | 205,924 | 22,920 | 2,332,774 | 4,077,548 |
Enersis | 1,823 | 353,602 | 3,602 | 3,809 | 4,028 | 906,828 | 1,273,693 |
Chilectra | - | - | - | - | - | - | - |
Other (*) | 13,313 | 4,370 | 1,540 | - | - | - | 19,222 |
Endesa Chile (**) | 407,053 | 630,901 | 99,726 | 202,115 | 18,892 | 1,425,947 | 2,784,632 |
Argentina | 49,378 | 107,775 | 98,230 | 109,460 | 35,248 | 11,256 | 411,347 |
Edesur | 5,034 | 21,820 | 28,402 | 28,496 | 11,181 | - | 94,934 |
Costanera | 32,677 | 62,621 | 46,495 | 39,297 | 24,066 | 11,256 | 216,413 |
Chocon | 11,667 | 23,333 | 23,333 | 41,667 | - | - | 100,000 |
Hidroinvest | - | - | - | - | - | - | - |
CTM | - | - | - | - | - | - | - |
Tesa | - | - | - | - | - | - | - |
Peru | 106,163 | 123,927 | 54,942 | 92,142 | 104,674 | 253,841 | 735,688 |
Edelnor | 40,121 | 35,137 | 10,111 | 21,941 | 30,334 | 125,700 | 263,343 |
Edegel | 66,042 | 88,791 | 44,830 | 70,200 | 74,340 | 128,141 | 472,345 |
Brazil | 139,490 | 231,890 | 356,486 | 469,166 | 453,873 | 230,123 | 1,881,028 |
Endesa Brasil | - | - | - | - | - | - | - |
Coelce | 115,570 | 44,910 | 60,210 | 76,349 | 68,685 | 87,469 | 453,193 |
Ampla | 16,479 | 171,841 | 154,746 | 250,475 | 244,375 | 78,333 | 916,248 |
Cachoeira | - | - | - | - | - | - | - |
Cien | 2,492 | 4,706 | 130,342 | 130,342 | 127,944 | - | 395,826 |
Fortaleza | 4,949 | 10,433 | 11,189 | 11,999 | 12,869 | 64,322 | 115,761 |
Colombia | 76,910 | 191,516 | 116,889 | 312,009 | 176,144 | 555,145 | 1,428,614 |
Codensa | 76,910 | 26,001 | 116,889 | 104,003 | 17,535 | 333,590 | 674,928 |
Emgesa | - | 165,515 | - | 208,006 | 158,609 | 221,555 | 753,687 |
Betania | - | - | - | - | - | - | - |
TOTAL | 794,130 | 1,643,982 | 731,414 | 1,188,701 | 792,858 | 3,383,140 | 8,534,225 |
(*) Includes: CAM
(**) Includes: Endesa Chile Internacional, Pangue, Pehuenche, San Isidro, Celta and Tunel El Melon.
Pg. 25
PRESS RELEASE | ||
CONSOLIDATEDCASHFLOW
UNDERCHILEANGAAP, MILLIONCH$
Table 9
Million Ch$ | 6M07 | 6M08 | Var 07-08 | Chg % |
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | ||||
Net income (loss) for the year | 65,578 | 155,940 | 90,362 | 137.8% |
Gain (losses) from sales of assets: | ||||
Losses (gain) on sale of property, plant and equipment | (289) | (318) | (29) | (10.2%) |
Charges (credits) to income which do not represent cash flows: | ||||
Depreciation | 230,020 | 228,611 | (1,409) | (0.6%) |
Amortization of intangibles | 4,654 | 4,201 | (453) | (9.7%) |
Write-offs and accrued expenses | 26,439 | 21,078 | (5,361) | (20.3%) |
Equity in income of related companies | (1,436) | (4,405) | (2,969) | - |
Equity in losses of related companies | 3,953 | 998 | (2,955) | (74.8%) |
Amortization of positive goodwill | 30,959 | 30,941 | (18) | (0.1%) |
Amortization of negative goodwill | (2,502) | (2,425) | 77 | 3.1% |
Price-level restatement, net | 2,400 | 3,964 | 1,564 | 65.2% |
Exchange difference, net | (3,845) | (573) | 3,272 | 85.1% |
Other credits to income which do not represent cash flows | (33,124) | (41,049) | (7,925) | (23.9%) |
Other charges to income which do not represent cash flows | 161,405 | 112,567 | (48,838) | (30.3%) |
Changes in assets which affect cash flows: | ||||
Decrease (increase) in trade receivables | (105,651) | 9,448 | 115,099 | N/A |
Decrease (increase) in inventory | (17,062) | 6,616 | 23,678 | (138.8%) |
Decrease (increase) in other assets | (41,881) | (168,606) | (126,725) | - |
Changes in liabilities which affect cash flow: | ||||
Decreased (increase) in payable accounts associated with operating results | 52,536 | 134,872 | 82,336 | 156.7% |
Decreased (increase) of payable interest | 24,368 | 31,815 | 7,447 | 30.6% |
Decreased (increase) in income tax payable | (98,474) | 35,267 | 133,741 | N/A |
Decreased (increase) in other accounts payable associated with non-operating results | 37,020 | (1,910) | (38,930) | N/A |
Decreased (increase) in value added tax and other similar taxes payable, net | (890) | (2,762) | (1,872) | - |
Income (loss) attributable to minority interest | 93,609 | 193,079 | 99,470 | 106.3% |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | 427,786 | 747,348 | 319,562 | 74.7% |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of shares issued to minorities | - | - | - | - |
Proceeds from debt issuance | 588,607 | 454,057 | (134,550) | (22.9%) |
Proceeds from bond issuance | 339,620 | 33,440 | (306,180) | (90.2%) |
Proceeds from loans obtained from related companies | - | - | - | - |
Proceeds from other loans obtained from related companies | - | - | - | - |
Other sources of financing | - | - | - | - |
Capital paid | - | - | - | - |
Dividends paid | (398,530) | (278,054) | 120,476 | 30.2% |
Payment of debt | (597,134) | (381,018) | 216,116 | 36.2% |
Payment of bonds | (127,266) | (108,627) | 18,639 | (14.6%) |
Payments of loans obtained from related companies | (1,350) | (1,263) | 87 | - |
Payments of other loans obtained from related companies | - | - | - | - |
Payments of shares issuance costs | - | - | - | - |
Payments of bonds issuance costs | - | - | - | - |
Other disbursements for financing | (750) | (5,346) | (4,596) | - |
NET CASH FLOW FROM FINANCING ACTIVITIES | (196,805) | (286,810) | (90,005) | (45.7%) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from sale of property, plant and equipment | 2,802 | 1,788 | (1,014) | (36.2%) |
Sale of investment | - | 7,532 | 7,532 | - |
Other loans received from related companies | - | - | - | - |
Other receipts from investments | 517 | 422 | (95) | - |
Additions to property, plant and equipment | (278,578) | (350,598) | (72,020) | (25.9%) |
Long-term investments | (35,442) | (8,858) | 26,584 | 75.0% |
Investment in financing instruments | - | - | - | - |
Other loans granted to related companies | (21,745) | (26,691) | (4,946) | 22.7% |
Other investment disbursements | (3,371) | (5,574) | (2,203) | 65.3% |
NET CASH FLOW FROM INVESTMENT ACTIVITIES | (335,817) | (381,979) | (46,162) | (13.7%) |
NET CASH FLOW FOR THE PERIOD | (104,836) | 78,559 | 183,395 | (174.9%) |
EFFECT OF PRICE-LEVEL RESTATEMENT ON CASH AND CASH EQUIVALENT | 29,069 | 13,192 | (15,877) | (54.6%) |
NET VARIATION ON CASH AND CASH EQUIVALENT | (75,767) | 91,752 | 167,519 | N/A |
CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE YEAR | 488,364 | 594,970 | 106,606 | 21.8% |
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD | 412,597 | 686,722 | 274,125 | 66.4% |
Pg. 26
PRESS RELEASE | ||
UNDERCHILEANGAAP,THOUSANDUS$
Table 9.1
Thousand US$ | 6M 07 | 6M 08 | Var 07-08 | Chg % |
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | ||||
Net income (loss) for the year | 124,659 | 296,436 | 171,777 | 137.8% |
Gain (losses) from sales of assets: | ||||
Losses (gain) on sale of property, plant and equipment | (549) | (605) | (56) | (10.2%) |
Charges (credits) to income which do not represent cash flows: | ||||
Depreciation | 437,259 | 434,580 | (2,679) | (0.6%) |
Amortization of intangibles | 8,847 | 7,985 | (862) | (9.7%) |
Write-offs and accrued expenses | 50,259 | 40,068 | (10,191) | (20.3%) |
Equity in income of related companies | (2,730) | (8,374) | (5,644) | - |
Equity in losses of related companies | 7,514 | 1,896 | (5,618) | (74.8%) |
Amortization of positive goodwill | 58,852 | 58,817 | (35) | (0.1%) |
Amortization of negative goodwill | (4,756) | (4,610) | 146 | 3.1% |
Price-level restatement, net | 4,562 | 7,536 | 2,974 | 65.2% |
Exchange difference, net | (7,309) | (1,089) | 6,220 | 85.1% |
Other credits to income which do not represent cash flows | (62,967) | (78,032) | (15,065) | (23.9%) |
Other charges to income which do not represent cash flows | 306,824 | 213,986 | (92,838) | (30.3%) |
Changes in assets which affect cash flows: | ||||
Decrease (increase) in trade receivables | (200,838) | 17,960 | 218,798 | N/A |
Decrease (increase) in inventory | (32,434) | 12,577 | 45,011 | (138.8%) |
Decrease (increase) in other assets | (79,614) | (320,514) | (240,900) | - |
Changes in liabilities which affect cash flow: | ||||
Decreased (increase) in payable accounts associated with operating results | 99,869 | 256,386 | 156,517 | 156.7% |
Decreased (increase) of payable interest | 46,323 | 60,478 | 14,155 | 30.6% |
Decreased (increase) in income tax payable | (187,195) | 67,041 | 254,236 | N/A |
Decreased (increase) in other accounts payable associated with non-operating results | 70,374 | (3,630) | (74,004) | N/A |
Decreased (increase) in value added tax and other similar taxes payable, net | (1,692) | (5,250) | (3,558) | - |
Income (loss) attributable to minority interest | 177,947 | 367,035 | 189,088 | 106.3% |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | 813,204 | 1,420,679 | 607,475 | 74.7% |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of shares issued to minorities | - | - | - | - |
Proceeds from debt issuance | 1,118,918 | 863,145 | (255,773) | (22.9%) |
Proceeds from bond issuance | 645,604 | 63,567 | (582,037) | (90.2%) |
Proceeds from loans obtained from related companies | - | - | - | - |
Proceeds from other loans obtained from related companies | - | - | - | - |
Other sources of financing | - | - | - | - |
Capital paid | - | - | - | - |
Dividends paid | (757,590) | (528,569) | 229,021 | 30.2% |
Payment of debt | (1,135,128) | (724,299) | 410,829 | 36.2% |
Payment of bonds | (241,928) | (206,495) | 35,433 | (14.6%) |
Payments of loans obtained from related companies | (2,566) | (2,400) | 166 | - |
Payments of other loans obtained from related companies | - | - | - | - |
Payments of shares issuance costs | - | - | - | - |
Payments of bonds issuance costs | - | - | - | - |
Other disbursements for financing | (1,426) | (10,163) | (8,737) | - |
NET CASH FLOW FROM FINANCING ACTIVITIES | (374,118) | (545,214) | (171,096) | (45.7%) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from sale of property, plant and equipment | 5,326 | 3,400 | (1,926) | (36.2%) |
Sale of investment | - | 14,319 | 14,319 | - |
Other loans received from related companies | - | - | - | - |
Other receipts from investments | 983 | 801 | (182) | - |
Additions to property, plant and equipment | (529,566) | (666,473) | (136,907) | (25.9%) |
Long-term investments | (67,374) | (16,839) | 50,535 | 75.0% |
Investment in financing instruments | - | - | - | - |
Other loans granted to related companies | (41,336) | (50,739) | (9,403) | 22.7% |
Other investment disbursements | (6,408) | (10,595) | (4,187) | 65.3% |
NET CASH FLOW FROM INVESTMENT ACTIVITIES | (638,375) | (726,126) | (87,751) | (13.7%) |
NET CASH FLOW FOR THE PERIOD | (199,289) | 149,338�� | 348,627 | (174.9%) |
EFFECT OF PRICE-LEVEL RESTATEMENT ON CASH AND CASH EQUIVALENT | 55,259 | 25,078 | (30,181) | (54.6%) |
NET VARIATION ON CASH AND CASH EQUIVALENT | (144,030) | 174,417 | 318,447 | N/A |
CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE YEAR | 928,360 | 1,131,014 | 202,654 | 21.8% |
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD | 784,330 | 1,305,431 | 521,101 | 66.4% |
Pg. 27
PRESS RELEASE | ||
CONSOLIDATEDCASHFLOWANALYSIS
During the period the company generated a positive net cash flow totaling Ch$78,559 million, which can be broken down as follows:
Table 10
Effective Cash Flow (million Ch$) | 6M 07 | 6M 08 | Var 07-08 | Chg % | ||||
Operating | 427,786 | 747,348 | 319,562 | 74.7% | ||||
Financing | (196,805) | (286,810) | (90,005) | (45.7%) | ||||
Investment | (335,817) | (381,979) | (46,162) | (13.7%) | ||||
Net cash flow of the period | (104,836) | 78,559 | 183,395 | 174.9% | ||||
Table 10.1
Effective Cash Flow (thousand US$) | 6M 07 | 6M 08 | Var 07-08 | Chg % | ||||
Operating | 813,204 | 1,420,679 | 607,475 | 74.7% | ||||
Financing | (374,118) | (545,214) | (171,096) | (45.7%) | ||||
Investment | (638,375) | (726,126) | (87,751) | (13.7%) | ||||
Net cash flow of the period | (199,289) | 149,338 | 348,627 | 174.9% | ||||
As of June 30, 2008,operating activities generated a positive net cash flow of Ch$747,348 million, which represents a 74.7% increase over last year. This flow is primarily made up of the following:
Net income of Ch$155,940 million, plus
- Ch$402,359 million in charges that do not represent cash flow but that mostly correspond to Ch$228,611 million in depreciation for the period, Ch$21,078 million in write-downs and provisions, Ch$30,941 million in goodwill amortization, Ch$4,201 million in amortization of intangibles, Ch$998 million in loss on permanent investments, and Ch$112,567 million in other charges that do not represent cash flow, which includes the BT 64 negative conversion effect of foreign subsidiaries for a sum of Ch$107,034 million.
- Ch$197,282 million due to changes in net liabilities that affect operating cash flow.
The above was partly offset by:
- Ch$48,452 million in credits that do not represent cash flow, which correspond to Ch$41,049 million in other credits that do not represent cash flow, of which Ch$37,304 million correspond to the positive conversion effect of subsidiaries abroad, Ch$4,405 million correspond to investment income in related companies, and Ch$2,425 million to negative goodwill amortization.
- Changes in net assets affecting operating flow amount to Ch$152,542 million.
Financing activities generated a negative net flow of Ch$286,810 million due to loan payments for Ch$381,018 million, dividends payments for Ch$278,054 million, public debt payments for Ch$108,627 million, documented loan payments from related companies for Ch$1,263 million, and other disbursements for Ch$5,346 million. The latter is partly offset by loans secured for Ch$454,057 million and bond floats for Ch$33,440 million.
Investment activitiesgenerated a negative net flow of Ch$381,979 million, which, when compared to the same period last year, represent a greater cash contribution equal to 13.7% or Ch$46,162 million. These disbursements correspond in part to the incorporation of fixed assets for Ch$350,598 million,
Pg. 28
PRESS RELEASE | ||
permanent investments for Ch$8,858 million, other loans to related companies for Ch$26,691 million, and other disbursements for Ch$5,574 million, which are partly offset by Ch$7,532 in sales collected on permanent investments, Ch$1,788 million in sales collected on fixed assets, and other investment income for Ch$422 million.
CASHFLOWRECEIVEDFROMFOREIGNSUBSIDIARIES BYENERSIS,CHILECTRA ANDENDESACHILE
Table 11
Millions Ch$ | Interest Received | Dividends Received | Management Fee | Prepayment intercompany | Capital Reductions | |||||||||||||||
6M 07 | 6M 08 | 6M 07 | 6M 08 | 6M 07 | 6M 08 | 6M 07 | 6M 08 | 6M 07 | 6M 08 | |||||||||||
Argentina | 94 | 170 | 5,689 | 176 | 891 | 389 | - | - | - | - | ||||||||||
Peru | - | - | 3,813 | 7,699 | - | - | - | - | - | - | ||||||||||
Brazil | - | - | 36,578 | 28,416 | - | - | - | - | - | - | ||||||||||
Colombia | - | - | 24,621 | 28,746 | - | - | - | - | - | - | ||||||||||
Total | 94 | 170 | 70,702 | 65,037 | 891 | 389 | - | - | - | - | ||||||||||
Millions Ch$ | Total Cash Received | |||
6M 07 | 6M 08 | |||
Argentina | 6,673 | 735 | ||
Peru | 3,813 | 7,699 | ||
Brazil | 36,578 | 28,416 | ||
Colombia | 24,621 | 28,746 | ||
Total | 71,686 | 65,596 | ||
Table 11.1
Thousand US$ | Interest Received | Dividends Received | Management Fee | Prepayment intercompany | Capital Reductions | |||||||||||||||
6M 07 | 6M 08 | 6M 07 | 6M 08 | 6M 07 | 6M 08 | 6M 07 | 6M 08 | 6M 07 | 6M 08 | |||||||||||
Argentina | 178 | 324 | 10,814 | 334 | 1,693 | 739 | - | - | - | - | ||||||||||
Peru | - | - | 7,249 | 14,636 | - | - | - | - | - | - | ||||||||||
Brazil | - | - | 69,534 | 54,017 | - | - | - | - | - | - | ||||||||||
Colombia | - | - | 46,804 | 54,645 | - | - | - | - | - | - | ||||||||||
Total | 178 | 324 | 134,401 | 123,633 | 1,693 | 739 | - | - | - | - | ||||||||||
Thousand US$ | Total Cash Received | |||
6M 07 | 6M 08 | |||
Argentina | 12,686 | 1,397 | ||
Peru | 7,249 | 14,636 | ||
Brazil | 69,534 | 54,017 | ||
Colombia | 46,804 | 54,645 | ||
Total | 136,273 | 124,696 | ||
Source: Internal Financial Report
Pg. 29
PRESS RELEASE | ||
CAPEX ANDDEPRECIATION
Table 12
Payments for Additions of Fixed assets | Depreciation | |||||||
Million Ch$ | 6M 07 | 6M 08 | 6M 07 | 6M 08 | ||||
Endesa | 105,807 | 118,128 | 102,163 | 105,255 | ||||
Cachoeira (*) | 970 | 66 | 7,271 | 6,572 | ||||
Fortaleza (**) | 613 | 397 | 2,721 | 2,313 | ||||
Cien (**) | 50 | 386 | 7,097 | 6,501 | ||||
Chilectra S.A. | 30,481 | 28,520 | 10,530 | 11,604 | ||||
Edesur S.A. | 18,012 | 35,977 | 21,864 | 20,249 | ||||
Edelnor S.A. | 13,127 | 15,495 | 9,417 | 7,769 | ||||
Ampla | 39,835 | 59,002 | 20,549 | 20,605 | ||||
Coelce | 49,520 | 65,809 | 21,734 | 21,643 | ||||
Codensa S.A. | 17,300 | 21,338 | 23,423 | 22,636 | ||||
Cam Ltda. | 916 | 1,217 | 864 | 1,008 | ||||
Inmobiliaria Manso de Velasco Ltda. | 582 | 1,153 | 168 | 134 | ||||
Synapsis Soluciones y Servicios Ltda. | 1,139 | 2,344 | 1,465 | 1,475 | ||||
Holding Enersis | 226 | 766 | 754 | 847 | ||||
Total | 278,578 | 350,598 | 230,020 | 228,611 | ||||
Table 12.1
Payments for Additions of Fixed assets | Depreciation | |||||||
Thousand US$ | 6M 07 | 6M 08 | 6M 07 | 6M 08 | ||||
Endesa | 201,135 | 224,556 | 194,208 | 200,086 | ||||
Cachoeira (*) | 1,843 | 125 | 13,822 | 12,494 | ||||
Fortaleza (*) | 1,165 | 755 | 5,173 | 4,397 | ||||
Cien (*) | 94 | 734 | 13,491 | 12,358 | ||||
Chilectra S.A. | 57,943 | 54,214 | 20,018 | 22,059 | ||||
Edesur S.A. | 34,240 | 68,390 | 41,562 | 38,493 | ||||
Edelnor S.A. | 24,955 | 29,455 | 17,902 | 14,768 | ||||
Ampla | 75,725 | 112,160 | 39,063 | 39,170 | ||||
Coelce | 94,135 | 125,100 | 41,316 | 41,142 | ||||
Codensa S.A. | 32,886 | 40,563 | 44,526 | 43,031 | ||||
Cam Ltda. | 1,741 | 2,313 | 1,643 | 1,917 | ||||
Inmobiliaria Manso de Velasco Ltda. | 1,107 | 2,192 | 320 | 255 | ||||
Synapsis Soluciones y Servicios Ltda. | 2,165 | 4,456 | 2,785 | 2,803 | ||||
Holding Enersis | 430 | 1,456 | 1,434 | 1,610 | ||||
Total | 529,564 | 666,471 | 437,263 | 434,584 | ||||
(*) Consolidated by Enersis through Endesa Brasil since October 1st, 2005.
Pg. 30
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ANALYSISOFTHEINTEREST AND THEEXCHANGERATERISK
The Company holds a portion of its debt in dollar-denominated instruments, due to the fact that some of its sales in markets where it operates are indexed to this currency. However, dollar indexation is greater in the Brazilian, Colombian, and Argentinean markets, and accordingly subsidiaries in these countries prefer to borrow in local currency. In the case of Argentina, dollar-based financing has gradually been replaced by financing in local currency to the extent that conditions governing terms and market rates allow for it.
Notwithstanding this natural exchange rate hedge, when facing a scenario in which the dollar is extremely volatile, the company has continued to follow a strategy of partially hedging its dollar-denominated liabilities in order to mitigate the impact of exchange rate fluctuations on its bottom line. Bearing in mind the significant reduction of accounting mismatch in recent years, which has reached sensible levels, the company has made changes to its dollar-peso hedging policy with a view to establishing a cash flow hedging policy, along with the greatest degree of accounting mismatch allowed, in order to guide its hedging operations.
As of June 30th, 2008, the company’s consolidated hedged indebtedness in Chile amounted to US$ 600 million and US$ 125 million in dollar/UF and dollar/peso swap contracts, respectively, thus enabling the company to comply with the aforementioned hedging policy. As of the same period in 2007, the company already had dollar/UF swap contracts for US$ 600 million and dollar/peso swap contracts for US$ 125 million as part of the previously-mentioned new hedging policy it had begun to enforce.
Regarding interest rate risk, the company’s consolidated debt is broken down into fixed and variable rates at approximately 67% and 33%, respectively, as of June 30th, 2008. The fixed-rate percentage of its indebtedness has decreased slightly when compared to the last year’s ratio of 71.8%:28.2%, as a result of refinancing new debt at a variable rate.
Pg. 31
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OTHERRISKS
As is customary for certain credit and capital market debt facilities, a portion of Enersis and Endesa Chile’s financial indebtedness is subject to cross default provisions. Any matured default by any of the relevant subsidiaries could result in a cross default to Enersis and Endesa Chile, in which case, certain indebtedness held by these companies could potentially become due and payable.
Any default on debt exceeding an equivalent of US$30 million on an individual basis—after expiration of grace periods if applicable—by these companies or by any of their relevant subsidiaries could give rise to the prepayment of syndicated loans subscribed in 2004. Loans subscribed by Endesa in January and December 2006 and by Enersis in December 2006 contain US$50 million thresholds. Similarly, any default on loans exceeding an equivalent of US$30 million on an individual basis—after expiration of grace periods if applicable—by these companies or any of their subsidiaries could give rise to the prepayment of Yankee bonds. Furthermore, some financial covenants contain provisions according to which certain default events, in these companies or any of their relevant subsidiaries, such as bankruptcy, insolvency, adverse legal rulings and rulings for amounts exceeding US$ 50 million, and asset expropriation, could trigger the acceleration rights of such indebtedness.
The financial covenants do not contain clauses requiring the mandatory prepayment of indebtedness due to changes in control or the debt rating of these companies by risk classification agencies. However, a change in foreign-currency debt rating by the risk classification agency Standard & Poor’s (S&P) may give rise to a change in the margin applied when determining the interest rates of the syndicated loans signed in 2004 and 2006.
As of June 30, 2008, these obligations and restrictions have been complied with in full.
Pg. 32
PRESS RELEASE | ||
ARGENTINA
GENERATION
In Argentina, our Operating Income reached Ch$13,001 million, compared with the Ch$18,965 million recorded during the first half of 2007, represents a decrease of 31.4% .
COSTANERA
Less hydraulic availability translated into greater use of thermal facilities which use costly liquid fuels. TheOperating Income of Endesa Costanera improved by Ch$7.340 million, coming in at Ch$10.347 million, due to a 36.0% increase in revenues and a 29.9% hike in operating costs. More efficient managerial practices and a sound commercial policy made it possible for Endesa Costanera to boost its operating income considering that its physical sales increased by 10.8% along with a hike in average tariffs.
Table 13 | ||||||||||
Million US$ | Million Ch$ | |||||||||
6M 07 | 6M 08 | 6M 07 | 6M 08 | Chg % | ||||||
Operating Revenues | 201 | 274 | 105,998 | 144,145 | 36.0% | |||||
Operating Costs | (193) | (251) | (101,779) | (132,235) | (29.9%) | |||||
Gross Profit | 8 | 23 | 4,219 | 11,910 | 182.3% | |||||
Selling and Administrative Expenses | (2) | (3) | (1,211) | (1,563) | (29.1%) | |||||
Operating Income | 6 | 20 | 3,007 | 10,347 | - | |||||
Figures may differ from those accounted under Argentine GAAP. |
Additional Information
Table 14
Costanera | 6M 07 | 6M 08 | Var 07-08 | Chg % | ||||
GWh Produced | 4,170 | 4,639 | 468 | 11.2% | ||||
GWh Sold | 4,189 | 4,639 | 449 | 10.7% | ||||
Market Share | 8.2% | 8.8% | - | 7.4% | ||||
Pg. 33
PRESS RELEASE | ||
CHOCÓN
El Chocón recorded a Ch$13.304 million decrease in itsOperating Income for a total figure of Ch$2,654 million for first semester 2008, as a result of a 50.3% drop in physical sales compared to the previous year resulting from water flow management on the Limay River in addition to a poor hydrology.
Table 15 | ||||||||||
Million US$ | Million Ch$ | |||||||||
6M 07 | 6M 08 | 6M 07 | 6M 08 | Chg % | ||||||
Operating Revenues | 63 | 39 | 33,205 | 20,730 | (37.6%) | |||||
Operating Costs | (32) | (33) | (16,686) | (17,444) | (4.5%) | |||||
Gross Profit | 31 | 6 | 16,519 | 3,286 | (80.1%) | |||||
Selling and Administrative Expenses | (1) | (1) | (562) | (632) | (12.1%) | |||||
Operating Income | 30 | 5 | 15,958 | 2,654 | (83.4%) | |||||
Figures may differ from those accounted under Argentine GAAP. |
Additional Information
Table 16
Chocón | 6M 07 | 6M 08 | Var 07-08 | Chg % | ||||
GWh Produced | 2,035 | 701 | (1,334) | (65.6%) | ||||
GWh Sold | 2,145 | 1,067 | (1,078) | (50.3%) | ||||
Market Share | 4.2% | 2.0% | - | (51.8%) | ||||
Pg. 34
PRESS RELEASE | ||
DISTRIBUTION
EDESUR
In Argentina our subsidiary Edesur recorded a Ch$5,133 million reduction in itsOperating Income from Ch$16,016 million for first semester 2007 to Ch$10,883 million for the current period. The latter is primarily due to an increase in fixed costs that was partially offset by greater demand and more customers. The increase in demand was triggered by greater economic activity and higher temperatures, which boosted physical sales by 2.1% for a total of 8,050 GWh for first semester 2008.
Energy losses remained stable at 10.5% for both periods and the number of customers increased by 36,000 for a total of 2.24 million.
Table 17 | ||||||||||
Million US$ | Million Ch$ | |||||||||
6M 07 | 6M 08 | 6M 07 | 6M 08 | Chg % | ||||||
Revenues from Sales | 292 | 281 | 153,802 | 147,863 | (3.9%) | |||||
Other Operating Revenues | 22 | 26 | 11,819 | 13,415 | 13.5% | |||||
Operating Revenues | 315 | 307 | 165,621 | 161,278 | (2.6%) | |||||
Energy Purchases | (164) | (152) | (86,088) | (80,194) | 6.8% | |||||
Other Operating Cost | (81) | (87) | (42,376) | (45,664) | (7.8%) | |||||
Operating Costs | (244) | (239) | (128,464) | (125,857) | 2.0% | |||||
Selling and Administrative Expenses | (40) | (47) | (21,141) | (24,538) | (16.1%) | |||||
Operating Income | 30 | 21 | 16,016 | 10,883 | (32.1%) | |||||
Figures may differ from those accounted under Argentine GAAP. |
Additional Information
Table 18
Edesur | 6M 07 | 6M 08 | Var 07-08 | Chg % | ||||
Customers (Th) | 2,208 | 2,244 | 36 | 1.6% | ||||
GWh Sold | 7,887 | 8,050 | 163 | 2.1% | ||||
Clients/Employee | 893 | 851 | (42) | (4.7%) | ||||
Energy Losses % | 10.5 | 10.5 | 0.0 | 0.4% | ||||
Pg. 35
PRESS RELEASE | ||
BRAZIL
GENERATION
CACHOEIRADOURADA
Operating Income in Brazil from our subsidiary Cachoeira Dourada for first semester 2008 amounted to Ch$72.462 million, which is much higher than the Ch$26.928 million recorded during the same period in 2007, representing a 169.1% increase. The latter is the result of a sound business policy of adjusting energy sales contracts to fit high prices on the energy market during the first months of this year. These price increases were triggered by a 9.2% increase in physical sales which amounted to 2,134 GWh (compared to 1,955 GWh in 2007).
Table 20 | ||||||||||
Million US$ | Million Ch$ | |||||||||
6M 07 | 6M 08 | 6M 07 | 6M 08 | Chg % | ||||||
Operating Revenues | 85 | 178 | 44,682 | 93,418 | 109.1% | |||||
Operating Costs | (32) | (37) | (16,583) | (19,633) | (18.4%) | |||||
Gross Profit | 53 | 140 | 28,099 | 73,785 | 162.6% | |||||
Selling and Administrative Expenses | (2) | (3) | (1,171) | (1,323) | (12.9%) | |||||
Operating Income | 51 | 138 | 26,928 | 72,462 | 169.1% | |||||
Figures may differ from those accounted under Brazilian GAAP. |
Additional Information
Table 21
Cachoeira | 6M 07 | 6M 08 | Var 07-08 | Chg % | ||||
GWh Produced | 1,863 | 1,532 | (331) | (17.8%) | ||||
GWh Sold | 1,955 | 2,134 | 178 | 9.1% | ||||
Market Share | 1.1% | 1.0% | - | (5.1%) | ||||
FORTALEZA
Endesa Fortaleza’sOperating Income totaled Ch$15.385 million, a 36.6% decrease compared to the same period in 2007 when the company’s operating income was Ch$24,277 million. This reduction is primarily due to lower energy purchase/sales margin for the period given high spot prices for energy. Physical sales amounted 1,388 GWh as of June 2008.
Table 22 | ||||||||||
Million US$ | Million Ch$ | |||||||||
6M 07 | 6M 08 | 6M 07 | 6M 08 | Chg % | ||||||
Operating Revenues | 106 | 117 | 55,501 | 61,581 | 11.0% | |||||
Operating Costs | (58) | (86) | (30,435) | (45,178) | (48.4%) | |||||
Gross Profit | 48 | 31 | 25,065 | 16,403 | (34.6%) | |||||
Selling and Administrative Expenses | (1) | (2) | (787) | (1,018) | (29.3%) | |||||
Operating Income | 46 | 29 | 24,279 | 15,385 | (36.6%) | |||||
Figures may differ from those accounted under Brazilian GAAP. |
Pg. 36
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Additional Information
Table 23
Fortaleza | 6M 07 | 6M 08 | Var 07-08 | Chg % | ||||
GWh Produced | 1 | 81 | 80 | - | ||||
GWh Sold | 1,333 | 1,338 | 5 | 0.3% | ||||
Market Share | 0.7% | 0.7% | - | - | ||||
TRANSMISSION
CIEN
CIEN’s first semesterOperating Income reached Ch$10.496 million, which was Ch$11,689 million greater than the same period last year when the company recorded a loss of Ch$1.193 million. During this period, the company signed a contract with CAMMESA to export energy from Brazil to Argentina for seven months beginning in May thus providing the company a fixed income from tolls. Although the Brazilian government does not provide ANEEL the guidelines for determining the retribution value for energy transportation services, as of this year this has become the company’s focus. Physical sales for the period amounted to 1,043 GWh (2,295 GWh for June 2007).
Table 24 | ||||||||||
Million US$ | Million Ch$ | |||||||||
6M 07 | 6M 08 | 6M 07 | 6M 08 | Chg % | ||||||
Operating Revenues | 120 | 328 | 63,057 | 172,613 | 173.7% | |||||
Operating Costs | (117) | (303) | (61,598) | (159,355) | (358.7%) | |||||
Gross Profit | 3 | 25 | 1,459 | 13,258 | (808.5%) | |||||
Selling and Administrative Expenses | (5) | (5) | (2,652) | (2,762) | (4.1%) | |||||
Operating Income | (2) | 20 | (1,193) | 10,496 | 980.0% | |||||
Figures may differ from those accounted under Brazilian GAAP. |
Additional Information
Table 25
CIEN | 6M 07 | 6M 08 | Var 07-08 | Chg % | ||||
GWh Sold | 2,193 | 1,043 | -1,150 | (52.5%) | ||||
Market Share | N.A. | N.A. | - | - | ||||
Pg. 37
PRESS RELEASE | ||
DISTRIBUTION
AMPLA
In Brazil, Ampla’sOperating Income was Ch$103,515 million which represented a 32.1% increase or Ch$25,151 million more when compared to last period. These greater results are primarily due to a better energy purchase/sales margin resulting from greater sales prices. Physical sales also went up 1.7% amounting to 4,597 GWh for this period. Energy losses dropped 1.7 percentage points (p.p.) reaching at 20.6% (compared to 22.3% for the same period in 2007). Ampla’s customer base increased by 59,000 clients for a total of 2.43 million customers.
Table 26 | ||||||||||
Million US$ | Million Ch$ | |||||||||
6M 07 | 6M 08 | 6M 07 | 6M 08 | Chg % | ||||||
Revenues from Sales | 567 | 698 | 298,106 | 367,262 | 23.2% | |||||
Other Operating Revenues | 13 | 20 | 6,630 | 10,626 | 60.3% | |||||
Operating Revenues | 579 | 718 | 304,736 | 377,889 | 24.0% | |||||
Energy Purchases | (296) | (357) | (155,870) | (187,683) | (20.4%) | |||||
Other Operating Cost | (106) | (133) | (55,930) | (69,876) | (24.9%) | |||||
Operating Costs | (403) | (490) | (211,800) | (257,559) | (21.6%) | |||||
Selling and Administrative Expenses | (28) | (32) | (14,572) | (16,815) | (15.4%) | |||||
Operating Income | 149 | 197 | 78,364 | 103,515 | 32.1% | |||||
Figures may differ from those accounted under Brazilian GAAP. |
Additional Information
Table 27
Ampla | 6M 07 | 6M 08 | Var 07-08 | Chg % | ||||
Customers (Th) | 2,371 | 2,430 | 59 | 2.5% | ||||
GWh Sold | 4,521 | 4,597 | 77 | 1.7% | ||||
Clients/Employee | 1,692 | 1,783 | 90 | 5.3% | ||||
Energy Losses % | 22.3 | 20.6 | (1.7) | (7.5%) | ||||
Pg. 38
PRESS RELEASE | ||
COELCE
Coelce’sOperating Income increase by Ch$10.038 million for a total of Ch$59,805 million for first semester of 2008. This increase in operating income is primarily due to a 128-GWh or 3.7% increase in physical sales as well as a reduction in energy losses which fell from 12.6% in June 2007 to 11.6% in June 2008 and lower expenses for the unrecoverable funds reserve for this period. The latter is partially offset by a lower purchase/sales margin during the period due to a tariff adjustment in April 2007 and a greater energy purchase price. Coelce added 139,000 new customers during the 2008 period, representing a 5.3% increase over 2007 for a total of 2.76 million customers.
Table 28 | ||||||||||
Million US$ | Million Ch$ | |||||||||
6M 07 | 6M 08 | 6M 07 | 6M 08 | Chg % | ||||||
Revenues from Sales | 442 | 496 | 232,577 | 260,704 | 12.1% | |||||
Other Operating Revenues | 15 | 32 | 7,998 | 16,901 | 111.3% | |||||
Operating Revenues | 457 | 528 | 240,575 | 277,605 | 15.4% | |||||
Energy Purchases | (211) | (263) | (110,971) | (138,325) | (24.7%) | |||||
Other Operating Cost | (93) | (114) | (49,044) | (60,209) | (22.8%) | |||||
Operating Costs | (304) | (377) | (160,014) | (198,534) | (24.1%) | |||||
Selling and Administrative Expenses | (59) | (37) | (30,794) | (19,266) | 37.4% | |||||
Operating Income | 95 | 114 | 49,767 | 59,805 | 20.2% | |||||
Figures may differ from those accounted under Brazilian GAAP. |
Additional Information
Table 29
Coelce | 6M 07 | 6M 08 | Var 07-08 | Chg % | ||||
Customers (Th) | 2,617 | 2,756 | 140 | 5.3% | ||||
GWh Sold | 3,439 | 3,567 | 129 | 3.7% | ||||
Clients/Employee | 2,032 | 2,179 | 147 | 7.2% | ||||
Energy Losses % | 12.6 | 11.6 | (1.1) | (8.3%) | ||||
Pg. 39
PRESS RELEASE | ||
CHILE
GENERATION
ENDESACHILE
Consolidated Income Statement of Endesa Chile
Table 30 | ||||||||||
Million US$ | Million Ch$ | |||||||||
6M 07 | 6M 08 | 6M 07 | 6M 08 | Chg % | ||||||
Operating Revenues | 1,634 | 2,043 | 859,529 | 1,074,659 | 25.0% | |||||
Operating Costs | (1,020) | (1,410) | (536,398) | (741,692) | (38.3%) | |||||
Selling and Administrative Expenses | (39) | (37) | (20,577) | (19,566) | 4.9% | |||||
Operating Income | 575 | 596 | 302,554 | 313,401 | 3.6% | |||||
Interest Income | 18 | 18 | 9,607 | 9,630 | 0.2% | |||||
Interest Expenses | (189) | (169) | (99,593) | (88,671) | 11.0% | |||||
Net Financial Income (Expenses) | (171) | (150) | (89,986) | (79,041) | 12.2% | |||||
Equity Gains from Related Company | 35 | 84 | 18,160 | 44,354 | 144.2% | |||||
Equity Losses from Related Company | (7) | (1) | (3,888) | (767) | 80.3% | |||||
Net Income from Related Companies | 27 | 83 | 14,271 | 43,587 | 205.4% | |||||
Other Non Operating Income | 23 | 54 | 12,237 | 28,178 | 130.3% | |||||
Other Non Operating Expenses | (161) | (96) | (84,802) | (50,374) | 40.6% | |||||
Net other Non Operating Income (Expenses) | (138) | (42) | (72,565) | (22,196) | 69.4% | |||||
Price Level Restatement | 2 | 9 | 1,250 | 4,833 | 286.7% | |||||
Foreign Exchange Effect | 12 | (16) | 6,156 | (8,381) | (236.1%) | |||||
Net of Monetary Exposure | 14 | (7) | 7,406 | (3,547) | (147.9%) | |||||
Positive Goodwill Amortization | (1) | (1) | (477) | (535) | (12.1%) | |||||
Non Operating Income | (269) | (117) | (141,351) | (61,733) | 56.3% | |||||
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 306 | 478 | 161,203 | 251,668 | 56.1% | |||||
Extraordinary Items | - | - | - | - | - | |||||
Income Tax | (135) | (147) | (70,860) | (77,188) | (8.9%) | |||||
Minority Interest | (48) | (79) | (25,171) | (41,623) | (65.4%) | |||||
Negative Goodwill Amortization | 5 | 5 | 2,480 | 2,404 | (3.1%) | |||||
NET INCOME | 129 | 257 | 67,652 | 135,261 | 99.9% | |||||
*Includes generation subsidiaries in Chile, Argentina, Colombia and Peru. |
Chilean Operations
In Chile,Operating Income reached Ch$161,234 million—1.7% higher than the $158.531 million recorded at the end of first semester 2007—even though revenues from operations amounted to Ch$595,776 million, which represented a 35.6% increase compared to Ch$439,455 million from the same period last year. This increase was brought on by first semester increases in the average node price (reaching close to US$130 per MWh), along with high spot prices, which were greatly offset by greater operating expenses that underwent an increase of 57.1%, totaling Ch$425,415 million, Ch$166,745 million of which corresponded to greater fuel and lubricant costs given the increased use of oil-fired thermal generation at high production costs. The latter was caused by low hydrology until May of this year, among other aspects. It is worth mentioning that foreign policy has enabled Endesa Chile to sell on the spot market even when the 9,211 GWh of production recorded at the close of June 2008 translated into a 3.6% decrease.
Pg. 40
PRESS RELEASE | ||
Additional Information
Table 31 | ||||||||
Chilean Companies | 6M 07 | 6M 08 | Var 07-08 | Chg % | ||||
GWh Produced | 9,557 | 9,211 | (346) | (3.6%) | ||||
GWh Sold | 9,702 | 9,227 | (475) | (4.9%) | ||||
Market Share | 36.8% | 35.1% | - | (4.7%) | ||||
Pg. 41
PRESS RELEASE | ||
DISTRIBUTION
CHILECTRA
In Chile, our subsidiary Chilectra recorded Ch$69,096 million in Operating Income which represented a Ch$2,123 million or 3.2% increase over last period’s figures. The latter is due to a decrease in overhead offset by less demand of energy during the period. As a result of the latter, physical sales amounted to 6,249 GWh, down 3.1% when compared to the same period in 2007. This was due to the energy savings plan launched by the Chilean government, which had the desired effect. The number of customers grew by 47,000 for a total of 1.5 million as of June 2008.
Table 32 | ||||||||||
Million US$ | Million Ch$ | |||||||||
6M 07 | 6M 08 | 6M 07 | 6M 08 | Chg % | ||||||
Revenues from Sales | 696 | 890 | 366,041 | 468,051 | 27.9% | |||||
Other Operating Revenues | 60 | 68 | 31,658 | 35,937 | 13.5% | |||||
Operating Revenues | 756 | 958 | 397,699 | 503,988 | 26.7% | |||||
Energy Purchases | (514) | (711) | (270,237) | (374,063) | (38.4%) | |||||
Other Operating Cost | (69) | (73) | (36,341) | (38,643) | (6.3%) | |||||
Operating Costs | (583) | (785) | (306,578) | (412,706) | (34.6%) | |||||
Selling and Administrative Expenses | (46) | (42) | (24,148) | (22,186) | 8.1% | |||||
Operating Income | 127 | 131 | 66,973 | 69,096 | 3.2% | |||||
Interest Income | 4 | 10 | 2,340 | 5,161 | 120.6% | |||||
Interest Expenses | (27) | (18) | (14,148) | (9,529) | 32.6% | |||||
Net Financial Income (Expenses) | (22) | (8) | (11,808) | (4,368) | 63.0% | |||||
Equity Gains from Related Company | 25 | 46 | 13,100 | 24,102 | 84.0% | |||||
Equity Losses from Related Company | (2) | - | (962) | - | - | |||||
Net Income from Related Companies | 23 | 46 | 12,138 | 24,102 | 98.6% | |||||
Other Non Operating Income | 8 | 17 | 4,415 | 9,185 | 108.0% | |||||
Other Non Operating Expenses | (3) | (4) | (1,537) | (2,351) | 53.0% | |||||
Conversion Effect (BT 64) | - | - | - | - | ||||||
Net other Non Operating Income (Expenses) | 5 | 13 | 2,878 | 6,834 | 137.4% | |||||
Price Level Restatement | (6) | (7) | (3,018) | (3,931) | 30.2% | |||||
Foreign Exchange Effect | 5 | (1) | 2,723 | (616) | (122.6%) | |||||
Net of Monetary Exposure | (1) | (9) | (295) | (4,546) | 1443.1% | |||||
Positive Goodwill Amortization | (1) | (1) | (324) | (306) | 5.5% | |||||
Non Operating Income | 5 | 41 | 2,590 | 21,714 | - | |||||
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 132 | 173 | 69,563 | 90,810 | 30.5% | |||||
Extraordinary Items | - | - | - | - | ||||||
Income Tax | (19) | (21) | (9,879) | (11,073) | (12.1%) | |||||
Minority Interest | (3) | (6) | (1,505) | (3,030) | 101.3% | |||||
Negative Goodwill Amortization | - | - | - | - | ||||||
NET INCOME | 111 | 146 | 58,179 | 76,708 | 31.8% | |||||
Additional Information
Table 33 | ||||||||
Chilectra | 6M 07 | 6M 08 | Var 07-08 | Chg % | ||||
Customers (Th) | 1,462 | 1,509 | 47 | 3.2% | ||||
GWh Sold | 6,449 | 6,249 | (200) | (3.1%) | ||||
Clients/Employee | 2,031 | 2,056 | 25 | 1.2% | ||||
Energy Losses % | 5.5 | 6.0 | 0.5 | 9.9% | ||||
Pg. 42
PRESS RELEASE | ||
COLOMBIA
GENERATION
EMGESA
The operating income of our subsidiary in Colombia, Emgesa, came in at Ch$111,620 million at the close of first semester 2008, which represents a 29.5% increase when compared to the same period in 2007. These improved results are primarily due to an 18.5% increase in revenues from operations resulting from greater average sales prices triggered by reliability, appreciation of the Colombian peso, and a 9.2% boost in physical sales volume, all of which contributed to the 7,891 GWh with greater hydraulic dispatch given the improved hydrology. Likewise, operating costs underwent a 7.8% increase mostly due to greater tolls. Production increased by 8.9% reaching a total of 6,004 GWh, thus revealing the good performance of our operations in this country.
Table 34 | ||||||||||
Million US$ | Million Ch$ | |||||||||
6M 07 | 6M 08 | 6M 07 | 6M 08 | Chg % | ||||||
Operating Revenues | 333 | 395 | 175,246 | 207,687 | 18.5% | |||||
Operating Costs | (164) | (177) | (86,421) | (93,183) | (7.8%) | |||||
Gross Profit | 169 | 218 | 88,825 | 114,504 | 28.9% | |||||
Selling and Administrative Expenses | (5) | (5) | (2,642) | (2,884) | (9.2%) | |||||
Operating Income | 164 | 212 | 86,183 | 111,620 | 29.5% | |||||
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 35 | ||||||||
Emgesa | 6M 07 | 6M 08 | Var 07-08 | Chg % | ||||
GWh Produced | 5,513 | 6,004 | 491 | 8.9% | ||||
GWh Sold | 7,226 | 7,891 | 664 | 9.2% | ||||
Market Share | 20.4% | 21.7% | - | 6.8% | ||||
Pg. 43
PRESS RELEASE | ||
DISTRIBUTION
CODENSA
Cadensa’s operating income totaled Ch$111.824 million as of June 2008, which represents a Ch$30.820 -million or 38.0% increase over last year’s figures. This increase is primarily the result of a 5.1% increase in energy demand (totaling 5,845 GWh) and a 1.3 percentage point drop in energy losses—falling from 9.0% in June 2007 to 7.7% for the current period—in addition to the impact of a higher purchase/sales margin during the period. The number of customers also increased by 69,000 for a total of 2.25 million as of June 2008.
Table 36 | ||||||||||
Million US$ | Million Ch$ | |||||||||
6M 07 | 6M 08 | 6M 07 | 6M 08 | Chg % | ||||||
Revenues from Sales | 396 | 484 | 208,566 | 254,665 | 22.1% | |||||
Other Operating Revenues | 143 | 179 | 75,410 | 94,044 | 24.7% | |||||
Operating Revenues | 540 | 663 | 283,976 | 348,710 | 22.8% | |||||
Energy Purchases | (242) | (292) | (127,474) | (153,762) | (20.6%) | |||||
Other Operating Cost | (126) | (140) | (66,398) | (73,480) | (10.7%) | |||||
Operating Costs | (369) | (432) | (193,872) | (227,243) | (17.2%) | |||||
Selling and Administrative Expenses | (17) | (18) | (9,100) | (9,643) | (6.0%) | |||||
Operating Income | 154 | 213 | 81,004 | 111,824 | 38.0% | |||||
* Please notice that these figures could differ from those accounted under Colombian GAAP. |
Additional Information
Table 37 | ||||||||
Codensa | 6M 07 | 6M 08 | Var 07-08 | Chg % | ||||
Customers (Th) | 2,176 | 2,245 | 69 | 3.2% | ||||
GWh Sold | 5,562 | 5,845 | 283 | 5.1% | ||||
Clients/Employee | 2,298 | 2,373 | 75 | 3.3% | ||||
Energy Losses % | 9.0 | 7.7 | (1.3) | (14.6%) | ||||
Pg. 44
PRESS RELEASE | ||
PERU
GENERATION
EDEGEL
Edegel, recorded Ch$24,484 million inOperating Income,, which represented a 31.8% decrease vis-à-vis the Ch$35,888 million recorded for first semester 2007. Production was up by 4% totaling 4,119 GWh; however, revenues from operations recorded a 5.1% decrease, dropping from Ch$94,649 million to Ch$89,864 million, while costs of operations jumped 14.8% for a total of Ch$60,507 million. The reduced revenues are primarily attributable to lower physical sales on the spot market as well as lower average prices at around 10%. Likewise, the greater costs are due to the higher variable cost of fuel for diesel-fired thermal generation given the costs to maintain Camisea’s pipes and greater energy purchases when compared to first semester 2007.
Table 38 | ||||||||||
Million US$ | Million Ch$ | |||||||||
6M 07 | 6M 08 | 6M 07 | 6M 08 | Chg % | ||||||
Operating Revenues | 180 | 171 | 94,649 | 89,864 | (5.1%) | |||||
Operating Costs | (100) | (115) | (52,723) | (60,507) | (14.8%) | |||||
Gross Profit | 80 | 56 | 41,927 | 29,357 | (30.0%) | |||||
Selling and Administrative Expenses | (11) | (9) | (6,039) | (4,873) | 19.3% | |||||
Operating Income | 68 | 47 | 35,888 | 24,484 | (31.8%) | |||||
* Please notice that these figures could differ from those accounted under Peruvian GAAP. |
Additional Information
Table 39 | ||||||||
Edegel | 6M 07 | 6M 08 | Var 07-08 | Chg % | ||||
GWh Produced | 3,960 | 4,119 | 159 | 4.0% | ||||
GWh Sold | 3,957 | 4,194 | 237 | 6.0% | ||||
Market Share | 32.8% | 31.5% | - | (3.9%) | ||||
Pg. 45
PRESS RELEASE | ||
DISTRIBUTION
EDELNOR
Our subsidiary Edelnor recorded Ch$30,044 million inOperating Income, which is Ch$5,598 million more compared to 2007 when the company’s operating income amounted to Ch$24,446 million. This is primarily due to greater demand for energy and a higher sales margin. The increased demand, especially a spike in sales to medium-tension regulated customers, contributed to the company’s greater sales margin. The significant increase in energy demand triggered a 7.6% increase in physical energy sales which topped off at 2,777 GWh for the period. The number of customers also increased by 35,000 for a June 2008 period-end total of one million customers. Energy losses went up by 0.3 percentage points, totaling 8.5% during the period, compared to 8.2% for the same period last year.
Table 40 | ||||||||||
Million US$ | Million Ch$ | |||||||||
6M 07 | 6M 08 | 6M 07 | 6M 08 | Chg % | ||||||
Revenues from Sales | 214 | 227 | 112,447 | 119,672 | 6.4% | |||||
Other Operating Revenues | 14 | 14 | 7,411 | 7,535 | 1.7% | |||||
Operating Revenues | 228 | 242 | 119,858 | 127,207 | 6.1% | |||||
Energy Purchases | (129) | (133) | (67,956) | (70,080) | (3.1%) | |||||
Other Operating Cost | (32) | (31) | (16,750) | (16,190) | 3.3% | |||||
Operating Costs | (161) | (164) | (84,706) | (86,271) | (1.8%) | |||||
Selling and Administrative Expenses | (20) | (21) | (10,706) | (10,892) | (1.7%) | |||||
Operating Income | 46 | 57 | 24,446 | 30,044 | 22.9% | |||||
* Please notice that these figures could differ from those accounted under Peruvian GAAP. |
Additional Information
Table 41 | ||||||||
Edelnor | 6M 07 | 6M 08 | Var 07-08 | Chg % | ||||
Customers (Th) | 971 | 1,006 | 35 | 3.6% | ||||
GWh Sold | 2,582 | 2,777 | 195 | 7.6% | ||||
Clients/Employee | 1,792 | 1,787 | (5) | (0.3%) | ||||
Energy Losses % | 8.2 | 8.5 | 0.3 | 3.3% | ||||
Pg. 46
PRESS RELEASE | ||
PARTIALLYCONSOLIDATEDINCOMESTATEMENT
(Parent Company First Half 2008 Earnings Report)
UNDERCHILEANGAAP,MILLIONCH$
Table 42 | ||||||||||||
2Q 07 | 2Q 08 | Var % | (in million Ch$) | 6M 07 | 6M 08 | Var % | ||||||
1,295 | 1,291 | (0.4%) | Operating Revenues | 2,598 | 2,589 | (0.4%) | ||||||
(387) | (416) | 7.5% | Operating Costs | (760) | (825) | 8.6% | ||||||
908 | 875 | (3.7%) | Gross Profit | 1,837 | 1,763 | (4.0%) | ||||||
(5,549) | (4,572) | 17.6% | S&A Expenses | (10,017) | (8,887) | 11.3% | ||||||
(4,641) | (3,697) | 20.3% | Operating Income | (8,179) | (7,124) | 12.9% | ||||||
7,577 | 33,438 | 341.3% | Endesa Chile | 40,578 | 81,131 | 99.9% | ||||||
23,140 | 21,075 | (8.9%) | Chilectra | 45,624 | 52,138 | 14.3% | ||||||
(262) | (1,762) | 572.4% | Edesur | 10,157 | 246 | (97.6%) | ||||||
2,121 | 8,472 | 299.5% | Edelnor | 4,877 | 5,701 | 16.9% | ||||||
(4,339) | 354 | N/A | Ampla | (1,371) | 7,734 | N/A | ||||||
- | - | N/A | Coelce | - | - | N/A | ||||||
(1,229) | 11,457 | N/A | Codensa | 1,657 | 11,520 | 595.3% | ||||||
2,541 | (366) | N/A | CAM LTDA | 2,892 | (238) | N/A | ||||||
2,351 | 941 | (60.0%) | Inm Manso de Velasco | 2,995 | 1,588 | (47.0%) | ||||||
(370) | 1,937 | N/A | Synapsis | (133) | 3,307 | N/A | ||||||
7,006 | 14,737 | 110.3% | Endesa Brasil | 12,747 | 30,578 | 139.9% | ||||||
- | - | N/A | CGTF | - | - | N/A | ||||||
- | - | N/A | Other | - | - | N/A | ||||||
38,536 | 90,283 | 134.3% | Net Income from Related Companies | 120,021 | 193,705 | 61.4% | ||||||
6,363 | 8,546 | 34.3% | Interest Income | 17,828 | 16,330 | (8.4%) | ||||||
(13,580) | (13,478) | 0.8% | Interest Expense | (28,735) | (26,983) | 6.1% | ||||||
(7,217) | (4,932) | 31.7% | Net Financial Income (Expenses) | (10,907) | (10,653) | 2.3% | ||||||
2,322 | 1,412 | (39.2%) | Other Non Operating Income | 4,278 | 5,409 | 26.4% | ||||||
254 | (352) | N/A | Other Non Operating Expenses | (72) | (435) | (500.1%) | ||||||
2,576 | 1,060 | (58.8%) | Net other Non Operating Income (Expenses) | 4,206 | 4,975 | 18.3% | ||||||
(445) | (1,561) | (250.8%) | Price Level Restatement | (638) | (3,151) | (394.0%) | ||||||
(4,328) | 31,858 | N/A | Foreign Exchange Effect | (2,818) | 9,493 | (436.8%) | ||||||
(4,773) | 30,297 | N/A | Net Monetary Exposure | (3,456) | 6,341 | N/A | ||||||
(15,079) | (15,075) | 0.0% | Positive Goodwill Amortization | (30,156) | (30,097) | 0.2% | ||||||
14,043 | 101,633 | (623.7%) | Non Operating Income | 79,708 | 164,271 | 106.1% | ||||||
9,402 | 97,937 | (941.6%) | Net Income before (1), (2) & (3) | 71,529 | 157,147 | 119.7% | ||||||
(3,766) | (13,429) | 256.6% | Income Tax (1) | (5,973) | (1,227) | (79.5%) | ||||||
11 | 11 | 5.4% | Negative Goodwill Amortization (2) | 22 | 21 | (4.8%) | ||||||
- | - | N/A | Minority Interest (3) | - | - | N/A | ||||||
5,647 | 84,519 | (1,396.8%) | NET INCOME | 65,578 | 155,940 | 137.8% | ||||||
0.17 | 2.59 | EPS (Ch$) | 2.01 | 4.78 | ||||||||
0.02 | 0.25 | EPADS (US$) | 0.19 | 0.45 | ||||||||
32,651,166 | 32,651,166 | Common Shares Outstanding (Th) | 32,651,166 | 32,651,166 | ||||||||
Pg. 47
PRESS RELEASE | ||
UNDERCHILEANGAAP,THOUSANDUS$
Table 42.1
2Q 07 | 2Q 08 | Var % | (in thousand US$) | 6M 07 | 6M 08 | Var % | ||||||
2,463 | 2,454 | (0.4%) | Operating Revenues | 4,938 | 4,921 | (0.4%) | ||||||
(736) | (791) | 7.5% | Operating Costs | (1,446) | (1,569) | 8.6% | ||||||
1,727 | 1,663 | (3.7%) | Gross Profit | 3,493 | 3,352 | (4.0%) | ||||||
(10,549) | (8,690) | 17.6% | S&A Expenses | (19,042) | (16,894) | 11.3% | ||||||
(8,822) | (7,028) | 20.3% | Operating Income | (15,549) | (13,542) | 12.9% | ||||||
14,404 | 63,565 | 341.3% | Endesa | 77,138 | 154,227 | 99.9% | ||||||
43,988 | 40,063 | (8.9%) | Chilectra | 86,730 | 99,111 | 14.3% | ||||||
(498) | (3,350) | 572.4% | Edesur | 19,308 | 468 | (97.6%) | ||||||
4,031 | 16,104 | 299.5% | Edelnor | 9,270 | 10,837 | 16.9% | ||||||
(8,248) | 673 | N/A | Ampla | (2,607) | 14,702 | N/A | ||||||
- | - | N/A | Coelce | - | - | N/A | ||||||
(2,335) | 21,779 | N/A | Codensa | 3,150 | 21,900 | 595.3% | ||||||
4,831 | (695) | N/A | CAM LTDA | 5,497 | (452) | N/A | ||||||
4,470 | 1,789 | (60.0%) | Inm Manso de Velasco | 5,693 | 3,019 | (47.0%) | ||||||
(704) | 3,683 | N/A | Synapsis | (253) | 6,287 | N/A | ||||||
13,318 | 28,014 | 110.3% | Endesa Brasil | 24,231 | 58,127 | 139.9% | ||||||
- | - | N/A | CGTF | - | - | N/A | ||||||
- | - | N/A | Others | - | - | N/A | ||||||
73,255 | 171,625 | 134.3% | Net Income from Related Companies | 228,156 | 368,226 | 61.4% | ||||||
12,095 | 16,245 | 34.3% | Interest Income | 33,891 | 31,042 | (8.4%) | ||||||
(25,815) | (25,621) | 0.8% | Interest Expense | (54,625) | (51,294) | 6.1% | ||||||
(13,719) | (9,375) | 31.7% | Net Financial Income (Expenses) | (20,734) | (20,252) | 2.3% | ||||||
4,414 | 2,684 | (39.2%) | Other Non Operating Income | 8,133 | 10,283 | 26.4% | ||||||
483 | (669) | N/A | Other Non Operating Expenses | (138) | (826) | (500.1%) | ||||||
4,897 | 2,015 | (58.8%) | Net other Non Operating Income (Expenses) | 7,995 | 9,456 | 18.3% | ||||||
(846) | (2,967) | (250.8%) | Price Level Restatement | (1,213) | (5,991) | (394.0%) | ||||||
(8,227) | 60,561 | N/A | Foreign Exchange Effect | (5,357) | 18,045 | (436.8%) | ||||||
(9,073) | 57,593 | N/A | Net Monetary Exposure | (6,570) | 12,054 | N/A | ||||||
(28,665) | (28,657) | 0.0% | Positive Goodwill Amortization | (57,325) | (57,213) | 0.2% | ||||||
26,695 | 193,201 | (623.7%) | Non Operating Income | 151,522 | 312,272 | 106.1% | ||||||
17,873 | 186,173 | (941.6%) | Net Income before (1), (2) & (3) | 135,973 | 298,730 | 119.7% | ||||||
(7,159) | (25,528) | 256.6% | Income Tax (1) | (11,355) | (2,333) | (79.5%) | ||||||
20 | 21 | 5.4% | Negative Goodwill Amortization (2) | 42 | 40 | (4.8%) | ||||||
- | - | N/A | Minority Interest (3) | - | - | N/A | ||||||
10,734 | 160,667 | (1,396.8%) | NET INCOME | 124,659 | 296,436 | 137.8% | ||||||
0.17 | 2.59 | EPS (Ch$) | 2.01 | 4.78 | ||||||||
0.02 | 0.25 | EPADS (US$) | 0.19 | 0.45 | ||||||||
32,651,166 | 32,651,166 | Common Shares Outstanding (Th) | 32,651,166 | 32,651,166 | ||||||||
Pg. 48
PRESS RELEASE | ||
OWNERSHIP OF THECOMPANY AS OFJUNE30,2008
CONFERENCECALLINVITATION
Enersis is pleased to inform you that it will hold a conference call to review its results for the period, on Friday, August 01, 2008, at 11:00 AM EST (Eastern Standard Time) (11:00 pm Chilean time). To participate, please dial +1 (617) 213-4863 or +1 (888) 713-4209 (toll free USA), approximately 10 minutes prior to the scheduled start time, Passcode ID: 23355792.
The phone replay will be available between August 01, 2008, and August 08, 2008, dialing +1 (617) 801-6888 or +1 (888) 286-8010 (toll free USA) Passcode ID: 94297151.
To access the call online, or to access the replay, go to:http://www.enersis.com Investor Relations.
Pg. 49
PRESS RELEASE | ||
CONTACTINFORMATION
For further information, please contact us:
Susana Rey
Head of Investor Relations
srm@e.enersis.cl
56 (2) 353 4554
Denisse Labarca | Doris Saba | Carmen Poblete | ||
Investor Relations | Investor Relations | Investor Relations | ||
Representative | Representative | Representative | ||
dla@e.enersis.cl | dsb@e.enersis.cl | cpt@e.enersis.cl | ||
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 subsidiaries. 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. 50
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: August 01, 2008