FORM 6-K
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of July, 2009
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
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ENERSIS
ANNOUNCES CONSOLIDATED RESULTS
FOR FIRST SEMESTER ENDED JUNE 30th, 2009
These Financial Statements have been prepared under IFRS.
There are important changes in the accounting principles used for these financial statements,
which have been authorized by the Superintendence of Securities and Insurance
as part of the migration from Chilean Generally Accepted Accounting Principles to IFRS.
Figures as of June 2008 have been reconciled under IFRS for comparable purposes.
HIGHLIGHTS FOR THEPERIOD
SUMMARY
For the six months ended on June 30, 2009, Enersis’ Net Income was Ch$360.906 million, an increase of 46.0% with respect to the same period in 2008.
This better outcome is mainly explained by the increase in energy sales and lower purchases of fuel and other operating expenses, which implied a 15.2% higher Gross Income (before SG&A expenses).
This higher operating profitability has been achieved in the context of a medium term strategy consistently applied to shorter term specific policies. Enersis has been quickly adapting itself to an unstable, challenging and still recessive environment.
As a consequence of the strategy applied and the policies implemented, the analysis is as follows:
1.- Improve profitability:
Management has required all subsidiaries to optimize the use of funds through the correct implementation of commercial and operating policies, with the goal of confronting adequately the difficult market conditions. The results are as follows:
• Operating Revenues increased 3.5% higher, an increase of Ch$107,869 million, amounting to Ch$3,176,647 million for the six months ended June 30, 2009.
• EBITDA increased by 16.9% or Ch$175,575 million, amounting to Ch$1,213,571 million.
• As mentioned above, Operating Income rose 20.4%, or Ch$167,980 million up to Ch$ 992,575 million, basically explained by the performance of the Generation Business Segment.
2.- Maintain a solid financial position:
Enersis continues to tightly supervise and control its subsidiaries in the five countries in which it operates. In this current economic scenario, the goal is to count with enough liquidity, and with the ability to confront challenges and opportunities in the region. In this context, it is noteworthy to highlight the following indicators:
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• Interest Coverage increased 17.3%, to 5.5 times.
• Liquidity improved significantly: cash and cash equivalent increased 17.2%, reaching Ch$1,224,695 million as of June 2009.
3.- Provide the best service quality in Latin-America:
• An example of our constant concern to provide the best service in the different concession areas was the award received by Coelce, in Fortaleza, Brazil. On July 7th, 2009, Coelce was distinguished as the “Best Distribution Company in Brazil” by “Associação Brasileira de Distribuidoras de Energia Elétrica”.
4.- Add value to our shareholders:
• Enersis share price, for the last twelve months, increased 21.3% from Ch$162.71 to Ch$197.42 which implies a better return than the IPSA (Local Stock Exchange Index), which increased 3.0% during the same period, and other major Stock Exchange Indexes in Latam and in the world.
• Annualized ROE increased 31.0%, from 17.0% as of June 2008 to 22.3% as of June 2009.
GENERATION ANDTRANSMISSIONBUSINESSES
• Operating Income increased 42.1% mainly explained by the performance of the operations in Chile, and to a lower degree, in Colombia and Peru, due to the better production mix as a consequence of the favorable hydrological conditions.
• Physical sales increased by 6.5%, amounting 33,367 GWh.
DISTRIBUTIONBUSINESS
• Operating Revenues grew 5.5%, equivalent to Ch$104,513 million.
• Operating Income decreased by Ch$16,719 million, or 4.3%, to Ch$369,650 million, and is explained primarily by reductions in our subsidiaries in Brazil, Colombia and Chile, partly offset by increases in Peru and Argentina.
• Consolidated physical sales were in line with the previous period, amounting to 31,148 GWh.
• There were 415,000 new clients over the last twelve months. This is equivalent to add a new mid size Distribution Company every year. They broken down as follows:
• Brazil | 4.1% or 210 thousand new clients | |
• Colombia | 3.6% or 80 thousand new clients | |
• Chile | 3.3% or 50 thousand new clients | |
• Peru | 3.8% or 38 thousand new clients | |
• Argentina | 1.6% or 37 thousand new clients |
• Energy losses decreased by 10.8% .
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FINANCIALS
• Liquidity, a key consideration in our financial management, continues to be in a very solid position, as evidenced below:
- Credit Lines for US$440 million available in the aggregate for Enersis and Endesa Chile in the Chilean capital markets, and an additional US$800 million in undrawn revolving debt facilities in the international capital markets.
- Cash and Cash Equivalents amount to the equivalent of US$1,781 million.
• Debt maturities are comfortably spread out, as can be seen in the following schedule:
Million US$ | TOTAL | |||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | Balance | ||||||||||
Chile | 100 | 213 | 116 | 11 | 223 | 368 | 863 | 1,894 | ||||||||
Argentina | 42 | 69 | 56 | 18 | 14 | 8 | 0 | 206 | ||||||||
Peru | 29 | 47 | 67 | 79 | 50 | 49 | 81 | 402 | ||||||||
Brazil | 68 | 242 | 217 | 211 | 69 | 29 | 27 | 863 | ||||||||
Colombia | 95 | 190 | 95 | 89 | 42 | 79 | 292 | 884 | ||||||||
TOTAL | 334 | 762 | 551 | 408 | 398 | 533 | 1,263 | 4,249 | ||||||||
* Includes accrued interest of financial debt only. |
- Despite the difficult financial situation prevailing in the markets, the Enersis Group has refinanced debt coming due during the first semester and there are no difficulties foreseen in refinancing the upcoming debt maturities with our access to banks and capital markets.
- The positive perspective that the financial markets have on the Chilean-sourced liquidity for Enersis and Endesa Chile, was evidenced by the overwhelming approval from the bondholders to Yankee Bond consent solicitations ended on July 24, 2009, for notes representing over US$ 1.5 billion in the aggregate.
• Coverage and Protection
Enersis continued applying a rigorous control over its liquidity for all its subsidiaries. In that respect, and in addition to strict internal rules to protect our cash flows, balance sheet, and liquidity, we currently have:
- Cross Currency Swaps for a total amount of US$ 929 million to match currency in which cash flows are originated and their associated debt.
- Interest Rate Swaps for US$ 212 million, in order to provide protection against variations.
- Collars, for a value of US$ 150 million, intended to provide additional protection.
- Forwards, for US$ 53 million, to protect against foreign exchange rate variations.
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The aforementioned financial tools are being permanently evaluated and adjusted to the changing macroeconomic scenario, in order to achieve the most efficient levels of protection. These instruments, however, do not replace the most important reason behind our liquidity: theverystable nature of our business.
MARKETSUMMARY
• In the chart below we show the evolution of the Enersis ADR price versus de Dow Jones Industrial Index (red), the Nasdaq Index (green) and the Standard & Poor´s 500 Index (orange), three indicators that reflect the evolution of prices in the U.S. markets.
• With respect to the stock price variations in the local market during the first semester of 2009, Enersis continued showing a positive trend following the tendency of the Chilean market. Although in a six-month horizon, the Enersis stock price has increased less than the Chilean exchange indices, over a 12-month horizon, the opposite is true, as explained above.
• In addition, during this year, Enersis and its subsidiary Endesa Chile, continued to be among the most traded companies at the Santiago Stock Exchange.
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Top Ten Traded Santiago Stock Exchange, Jan - Jun 2009 | ||||
Amounts in Ch$ million | % | |||
D&S | 2,269,341,098 | 20.90 | ||
SQM-B | 1,320,384,079 | 12.16 | ||
CAP | 590,218,932 | 5.43 | ||
ENDESA | 586,864,393 | 5.40 | ||
ENERSIS | 548,382,160 | 5.05 | ||
CENCOSUD | 415,855,305 | 3.83 | ||
COPEC | 345,415,035 | 3.18 | ||
LA POLAR | 332,489,269 | 3.06 | ||
LAN | 304,103,748 | 2.80 | ||
GENER | 302,627,848 | 2.79 | ||
Source: Santiago Stock Exchange |
RISKRATINGCLASSIFICATIONINFORMATION
During this semester, we had our scheduled informative meetings with the rating agencies. In this occasion, besides to revisit the overall conditions of the Company, we illustrated them about the accounting changes derived from migrating from Chilean GAAP to IFRS.
In this way, we clarified that there were no changes at all over our fundamentals, or upon our core business. Moreover, the fact of having our financials accounted under IFRS, will ease the comparative analysis with a wider world wide benchmark, favoring the analysts work.
Also, another positive consequence is that from a pure quantitative point of view, the majority of our key indicators improve, while the quality of the information is now less biased by several adjustments done in the past to reconcile five different GAAP´s.
Notwithstanding the improvement of the key indicators, rating agencies have not yet adjusted the classification for the company. Agencies are in internal discussions with respect to the IFRS valuation methodology for Chilean companies.
During the second half, we expect rating agencies to reevaluate our rating risk classification, considering the sustained financial strength of the Company.
The current risk classifications are:
• International Ratings:
Enersis | S&P | Moody’s | Fitch | |||
Corporate | BBB, Stable | Baa3, Stable | BBB, Stable | |||
• Domestic Ratings (for securities issued in Chile):
Enersis | Feller Rate | Fitch | ||
Shares | 1stClass Level 1 | 1stClass Level 1 | ||
Bonds | AA-, Stable | AA-, Stable | ||
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TABLE OFCONTENTS
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GENERALINFORMATION
(Santiago, Chile, Wednesday 29th, July 2009) Enersis S.A. (NYSE: ENI), announced today its consolidated financial results for the first half ended on June 30th, 2009. All figures are in Ch$, under International Financial Reporting Standards (IFRS). Variations of Income Statements and cash flows refer to the fiscal periods as of June 30th, 2008 and June 30th, 2009, while variations of balance sheet accounts refer to the period between December 31st, 2008 and June 30th, 2009.
Figures as of June 30th, 2009 are additionally presented in US$ and they are merely offered as a convenience translation, using the exchange rate of US$1 = Ch$531.76 (June 30, 2009).
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 important variations and comments on main items in the Balance Sheet, P&L, and Cash Flow Statements compared to the information as of June 30th, 2008.
* Includes Endesa Chile Chilean subsidiaries (Celta, Pangue, Pehuenche, San Isidro, Túnel El Melón), non Chilean subsidiaries (Costanera, El Chocón, Edegel and Emgesa) and jointly controlled companies or associates companies (Gas Atacama, Trasquillota and HidroAysén).
** Includes Endesa Fortaleza, CIEN, Cachoeira Dourada, Ampla and Coelce.
SIMPLIFIED ORGANIZATIONAL STRUCTURE
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MARKETINFORMATION
EQUITY MARKET
New York Stock Exchange (NYSE)
The chart below shows the performance of Enersis’ ADR (“ENI”) price at the NYSE, compared to the Dow Jones Industrials and the Dow Jones Utilities indexes over the last 12 months:
![](https://capedge.com/proxy/6-K/0001292814-09-001796/fp09a.gif)
![](https://capedge.com/proxy/6-K/0001292814-09-001796/fp09b.gif)
Santiago Stock Exchange (BCS)
The chart below shows the performance of Enersis’ Chilean stock price over the last 12 months compared to the selective Chilean selective Stock Index (IPSA):
![](https://capedge.com/proxy/6-K/0001292814-09-001796/fp09c.gif)
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Madrid Stock Exchange (Latibex) - Spain
The chart below, shows Enersis’ share price (“XENI”) at the Latibex over the last 12 months compared to the Local Stock Index (IBEX):
![](https://capedge.com/proxy/6-K/0001292814-09-001796/fp10b.gif)
![](https://capedge.com/proxy/6-K/0001292814-09-001796/fp10c.gif)
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DEBTMARKET
Yankee Bonds Price Evolution
The following chart shows the pricing of our Yankee Bonds over the last twelve months compared to the Ishares Iboxx Investment Grade Corporate Bond Fund Index:
![](https://capedge.com/proxy/6-K/0001292814-09-001796/fp11a.gif)
(*) IShares Iboxx Corporate Investment Grade Bonds Fund is an exchange traded fund incorporated in the U.S.A. The Index measures the performance of a fixed number of investment grade corporate bonds.
Yankee Bond Consent
The positive perspective that the financial markets have on the Chilean sourced liquidity for Enersis and Endesa Chile, was evidenced by the overwhelming approval from the bondholders to Yankee Bond consent solicitations ended on July 24, 2009.
Enersis and Endesa Chile executed amendments to Sections 501 (4), (5) and (6) of their respective Yankee Bond indentures, for notes representing over US$ 1.5 billion in the aggregate. These sections of the Indenture, the clauses dealing with potential cross default, bankruptcy and insolvency proceedings, now leave Yankee Bond debt issued at the Enersis and Endesa Chile level with no potential default triggers arising from debt outside Chile.
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RISK RATING CLASSIFICATION
Fitch: BBB / Stable
Rationale (April 15, 2009); “Relevant classification factors are: (i) Geographical diversification in Latin America, which provides natural protection against different regulatory frameworks and weather conditions. In summary, Enersis’ subsidiaries are financially strong and they count on leadership positions within their markets; (ii) Stable Cash Flows from Distribution segment: this business benefits from a healthy and organic growth in annual terms, being Chilectra the most predictable one; (iii) Volatility of business is offset: Contractual position of the Company reduces risk related to dryer hydrological conditions, meanwhile diversified generation matrix and geographical diversity provide natural protection.”
Standard & Poor’s: BBB / Stable
Rationale (December 30, 2008); “The 'BBB' ratings on Chile-based electricity provider Enersis S.A. reflects its satisfactory business risk profile resulting from the strong creditworthiness of its Chilean investments, its solid competitive position in the countries where it operates (Argentina, Brazil, Chile, Colombia, and Peru), and the favorable economic conditions and growing demand for power in the region. These factors are partly offset by the higher risk of its non-Chilean investments and the exposure of its 60%-owned subsidiary, Empresa Nacional de Electricidad S.A. (Endesa Chile; BBB/Stable/--) to droughts. In addition, the ratings reflect Enersis' intermediate financial risk profile resulting from its moderate leverage, adequate debt service coverage, manageable interest rate and foreign exchange risks, and adequate liquidity and financial flexibility.”
Moody’s: Baa3 / Stable
Rationale (December 19, 2008); “Enersis' Baa3 senior unsecured rating reflects the benefits of the group's activities in both the generation and distribution businesses, which offsets to some degree overall business risk. The rating also considers Enersis' significant exposure to the Chilean electricity market, where it benefits from stable macroeconomic conditions (A2 Foreign Currency, A1 Local Currency rating) as well as a transparent and favorable regulatory framework for its distribution and generation activities. The rating also incorporates the geographic and operational diversification of its subsidiaries' operations in four other Latin American countries, where (as in Chile) growing demand is expected amid tighter supply and improving macroeconomic and regulatory conditions.”
Feller Rate:Bonds: AA- / Stable - Shares: 1st Class Level 1
Rationale (July 7, 2009); “Ratings assigned to solvency, bonds and shares of Enersis reflect the good business’ structure of the company, which combined participations in generation and distribution with an important presence in several countries in Latin America, maintaining a higher proportion of its cash flow generation capacity in Chile. Likewise, the rating considers its current financial profile with debt coverage indicators and leverage at a consolidated level which have been strengthened over time.”
Fitch Chile:Bonds: AA- / Stable - Shares: 1st Class Level 1
Rationale (April 15, 2009); “Relevant classification factors are: (i) Geographical diversification in Latin America, which provides natural protection against different regulatory frameworks and weather conditions. In summary, Enersis’ subsidiaries are financially strong and they count on leadership positions within their markets; (ii) Stable Cash Flows from Distribution segment: this business benefits from a healthy and organic growth in annual terms, being Chilectra the most predictable one; (iii) Volatility of business is offset: Contractual position of the Company reduces risk related to dryer hydrological conditions, meanwhile diversified generation matrix and geographical diversity provide natural protection.”
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CONSOLIDATEDINCOMESTATEMENTANALYSIS
(Figures in Ch$)
NETINCOME
Enersis’ Net Income for the first half 2009 was Ch$360,906 million, representing an important 46.0% increase over the previous year, which was Ch$247,242 million.
UNDERIFRS
Table 2 | |||||||||
CONS. INCOME STATEMENT | Million Ch$ | Thousand US$ | |||||||
2Q08 | 2Q09 | 6M 08 | 6M 09 | Var 08-09 | Chg % | 6M09 | |||
Sales | 1,680,685 | 1,537,991 | 2,982,745 | 3,086,919 | 104,174 | 3.5% | 5,805,099 | ||
Sales of Energy | 1,542,329 | 1,399,863 | 2,753,721 | 2,820,566 | 66,845 | 2.4% | 5,304,208 | ||
Other Sales | 13,084 | 13,203 | 23,007 | 22,588 | (419) | (1.8%) | 42,478 | ||
Other services supply | 125,272 | 124,925 | 206,017 | 243,766 | 37,749 | 18.3% | 458,413 | ||
Other Operating Revenues | 34,387 | 51,829 | 86,033 | 89,728 | 3,695 | 4.3% | 168,737 | ||
Operating Revenues | 1,715,072 | 1,589,819 | 3,068,778 | 3,176,647 | 107,869 | 3.5% | 5,973,836 | ||
Energy purchases | (465,458) | (402,595) | (841,774) | (834,602) | 7,172 | 0.9% | (1,569,509) | ||
Fuel procurement costs | (259,440) | (174,795) | (466,149) | (356,328) | 109,821 | 23.6% | (670,091) | ||
Transmission expenses | (66,945) | (61,760) | (139,475) | (139,289) | 186 | 0.1% | (261,939) | ||
Other purchases and services | (130,762) | (121,668) | (228,032) | (241,761) | (13,729) | (6.0%) | (454,643) | ||
Purchases and Services | (922,605) | (760,818) | (1,675,429) | (1,571,980) | 103,449 | 6.2% | (2,956,182) | ||
Gross Income | 792,468 | 829,001 | 1,393,348 | 1,604,667 | 211,319 | 15.2% | 3,017,653 | ||
Work Performed by the entity and capitalized | 9,767 | 6,763 | 15,269 | 14,476 | (793) | (5.2%) | 27,223 | ||
Personnel expenses | (92,280) | (88,623) | (163,526) | (177,469) | (13,943) | (8.5%) | (333,739) | ||
Other fixed operating expenses | (109,310) | (104,867) | (207,095) | (228,103) | (21,008) | (10.1%) | (428,959) | ||
Gross Operating Income (EBITDA) | 600,645 | 642,274 | 1,037,996 | 1,213,571 | 175,575 | 16.9% | 2,282,179 | ||
Depreciations & Amortizations | (114,282) | (113,948) | (213,401) | (220,996) | (7,595) | (3.6%) | (415,593) | ||
Operating Income | 486,363 | 528,327 | 824,595 | 992,575 | 167,980 | 20.4% | 1,866,585 | ||
Financial Result | (48,017) | (71,347) | (151,875) | (156,134) | (4,259) | (2.8%) | (293,617) | ||
Interest Revenues | 40,944 | 29,528 | 69,265 | 64,504 | (4,761) | (6.9%) | 121,302 | ||
Interest Expenses | (135,565) | (111,096) | (232,182) | (217,826) | 14,356 | 6.2% | (409,631) | ||
Income for Readjustment items | (12,526) | 934 | (20,473) | 21,346 | 41,819 | - | 40,141 | ||
Exchange Gains (Losses) | 59,130 | 9,288 | 31,515 | (24,157) | (55,672) | (176.7%) | (45,429) | ||
Positive | 36,299 | 21,577 | 58,915 | 34,300 | (24,615) | (41.8%) | 64,502 | ||
Negative | 22,831 | (11,379) | (25,253) | (56,797) | (31,544) | (124.9%) | (106,809) | ||
Effect of Derivatives in Exchange | |||||||||
Gains (Losses) | - | (911) | (2,146) | (1,661) | 485 | 22.6% | (3,123) | ||
Share of profit of associates | 59 | 485 | 1,235 | 1,627 | 392 | 31.7% | 3,059 | ||
Income from Other Investments | (37) | 1,810 | 43 | 1,799 | 1,756 | - | 3,383 | ||
Income from asset sales | 504 | 187 | 989 | 203 | (786) | (79.5%) | 381 | ||
Net Income before Taxes | 438,872 | 459,463 | 674,988 | 840,070 | 165,082 | 24.5% | 1,579,792 | ||
Income Tax | (119,719) | (77,276) | (160,811) | (149,063) | 11,748 | 7.3% | (280,320) | ||
NET INCOME | 319,152 | 382,187 | 514,176 | 691,007 | 176,831 | 34.4% | 1,299,472 | ||
Parent Company | 146,216 | 208,856 | 247,242 | 360,906 | 113,664 | 46.0% | 678,701 | ||
Minority Holders | 172,937 | 173,331 | 266,934 | 330,101 | 63,167 | 23.7% | 620,771 | ||
Earning per Share (Ch$) | 4.5 | 6.4 | 7.6 | 11.1 | 3.0 | 46.0% | 0.021 | ||
Earning per Share ADR (Ch$) | 223.9 | 319.8 | 378.6 | 552.7 | 174 | 46.0% | 1.039 | ||
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OPERATINGINCOME
The operating income for the period ending June 30, 2009 increased by Ch$167,980 million, going from Ch$824,595 million at June 30, 2008 to Ch$ 992,575 million in the current year, representing an increase of 20.4% . Likewise, the EBITDA increased by Ch$175,575 million or 16.9%, amounting to Ch$1,213,571 million; the above is mainly due to the good results of the generation business for the period.
The operating revenues and costs, broken down by business line for the periods ending June 30, 2008 and 2009 are as follows:
Table 3
Operating Income by Businesses | Generation and Transmission | Distribution | ||||||||||
Million Ch$ | Thousand US$ | Million Ch$ | Thousand US$ | |||||||||
6M 08 | 6M 09 | 6M 09 | 6M 08 | 6M 09 | 6M 09 | |||||||
Operating Revenues | 1.366.091 | 1.400.992 | 2.634.633 | 1.891.141 | 1.995.654 | 3.752.923 | ||||||
Operating Costs | (928.522) | (779.116) | (1.465.165) | (1.504.773) | (1.626.005) | (3.057.779) | ||||||
Operating Income | 437.569 | 621.876 | 1.169.468 | 386.368 | 369.650 | 695.144 | ||||||
Operating Income by Businesses | Eliminations and Others | Consolidated | ||||||||||
Million Ch$ | Thousand US$ | Million Ch$ | Thousand US$ | |||||||||
6M 08 | 6M 09 | 6M 09 | 6M 08 | 6M 09 | 6M 09 | |||||||
Operating Revenues | (188.454) | (220.000) | (413.720) | 3.068.778 | 3.176.647 | 5.973.836 | ||||||
Operating Costs | 189.112 | 221.049 | 415.694 | (2.244.183) | (2.184.071) | (4.107.250) | ||||||
Operating Income | 658 | 1.050 | 1.974 | 824.595 | 992.575 | 1.866.585 | ||||||
Generation and Transmission Businesses showed an increase in operating income of Ch$184,307 million, equivalent to 42.1%, and totaling Ch$621,876. Physical sales of electricity generation increased by 6.5% amounting to 33,367 GWh as of June 2009 (31,321 GWh, in June 2008).
The operating income for the Generation and Transmission business line is expressed by country in the following table:
Table 4 | ||||||||||||||||||
Generation & Transmission | Chile | Argentina | Brazil | |||||||||||||||
Million Ch$ | Thousand US$ | Million Ch$ | Thousand US$ | Million Ch$ | Thousand US$ | |||||||||||||
6M 08 | 6M 09 | 6M 09 | 6M 08 | 6M 09 | 6M 09 | 6M 08 | 6M 09 | 6M 09 | ||||||||||
Operating Revenues | 724.409 | 738.907 | 1.389.549 | 167.656 | 164.351 | 309.070 | 176.608 | 153.537 | 288.735 | |||||||||
% of consolidated | 53% | 53% | 53% | 12% | 12% | 12% | 13% | 11% | 11% | |||||||||
Operating Costs | (541.624) | (396.769) | (746.143) | (140.323) | (138.363) | (260.198) | (81.666) | (76.594) | (144.039) | |||||||||
% of consolidated | 58% | 51% | 51% | 15% | 18% | 18% | 9% | 10% | 10% | |||||||||
Operating Income | 182.785 | 342.138 | 643.406 | 27.333 | 25.988 | 48.872 | 94.941 | 76.943 | 144.695 | |||||||||
Generation & Transmission | Peru | Colombia | Consolidated | |||||||||||||||
Million Ch$ | Thousand US$ | Million Ch$ | Thousand US$ | Million Ch$ | Thousand US$ | |||||||||||||
6M 08 | 6M 09 | 6M 09 | 6M 08 | 6M 09 | 6M 09 | 6M 08 | 6M 09 | 6M 09 | ||||||||||
Operating Revenues | 90.063 | 109.726 | 206.346 | 207.355 | 234.471 | 440.933 | 1.366.091 | 1.400.992 | 2.634.633 | |||||||||
% of consolidated | 7% | 8% | 8% | 15% | 17% | 17% | ||||||||||||
Operating Costs | (66.650) | (61.697) | (116.025) | (98.258) | (105.693) | (198.760) | (928.522) | (779.116) | (1.465.165) | |||||||||
% of consolidated | 7% | 8% | 8% | 11% | 14% | 14% | ||||||||||||
Operating Income | 23.414 | 48.029 | 90.321 | 109.097 | 128.778 | 242.173 | 437.569 | 621.876 | 1.169.468 | |||||||||
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Distribution businessrecorded a decrease in the operating result of Ch$16,719 million for the period, equivalent to 4.3%, totaling Ch$369,649 million as a consequence of higher operating costs. In turn, physical sales for the current period amounted to 31,148 GWh, representing an increase of 69 GWh, equivalent to 0.2% over the same period of the previous year and the number of customers increased by 415 thousand new clients, an equivalent 3.4%, exceeding the 12.6 million customer figure.
The operating income for the Distribution line of business, detailed by country, is presented in the following table:
Table 5 | ||||||||||||||||||
Chile | Argentina | Brazil | ||||||||||||||||
Distribution | Million Ch$ | Thousand US$ | Million Ch$ | Thousand US$ | Million Ch$ | Thousand US$ | ||||||||||||
6M 08 | 6M 09 | 6M 09 | 6M 08 | 6M 09 | 6M 09 | 6M 08 | 6M 09 | 6M 09 | ||||||||||
Operating Revenues | 501.828 | 579.638 | 1.090.036 | 162.778 | 182.538 | 343.271 | 755.478 | 725.445 | 1.364.235 | |||||||||
% of consolidated | 27% | 29% | 29% | 9% | 9% | 9% | 40% | 36% | 36% | |||||||||
Operating Costs | (426.239) | (505.780) | (951.143) | (139.099) | (157.865) | (296.872) | (598.192) | (585.431) | (1.100.930) | |||||||||
% of consolidated | 28% | 31% | 31% | 9% | 10% | 10% | 40% | 36% | 36% | |||||||||
Operating Income | 75.589 | 73.858 | 138.893 | 23.678 | 24.673 | 46.399 | 157.286 | 140.015 | 263.305 | |||||||||
Peru | Colombia | Consolidated | ||||||||||||||||
Distribution | Million Ch$ | Thousand US$ | Million Ch$ | Thousand US$ | Million Ch$ | Thousand US$ | ||||||||||||
6M 08 | 6M 09 | 6M 09 | 6M 08 | 6M 09 | 6M 09 | 6M 08 | 6M 09 | 6M 09 | ||||||||||
Operating Revenues | 125.792 | 153.805 | 289.238 | 345.265 | 354.228 | 666.142 | 1.891.141 | 1.995.654 | 3.752.923 | |||||||||
% of consolidated | 7% | 8% | 8% | 18% | 18% | 18% | ||||||||||||
Operating Costs | (98.219) | (121.131) | (227.793) | (243.024) | (255.798) | (481.041) | (1.504.773) | (1.626.005) | (3.057.779) | |||||||||
% of consolidated | 7% | 7% | 7% | 16% | 16% | 16% | ||||||||||||
Operating Income | 27.574 | 32.674 | 61.446 | 102.241 | 98.430 | 185.102 | 386.368 | 369.650 | 695.144 | |||||||||
Summary of operating revenues, operating costs and operating income of all the Enersis’ subsidiaries, for the period ending on June 2008 and June 2009 is detailed in the following table:
Table 6 | |||||||
6M 08 | 6M 09 | ||||||
Million Ch$ | Operating | Operating | Operating | Operating | Operating | Operating | |
Revenues | Costs | Income | Revenues | Costs | Income | ||
Endesa Chile (*) | 1,200,293 | (856,509) | 343,784 | 1,260,985 | (714,519) | 546,465 | |
Cachoeira (**) | 94,787 | (18,489) | 76,298 | 42,622 | (17,457) | 25,166 | |
Fortaleza (***) | 61,695 | (48,364) | 13,331 | 62,659 | (44,115) | 18,544 | |
Cien (**) | 23,816 | (15,533) | 8,283 | 51,798 | (16,017) | 35,781 | |
Chilectra | 501,828 | (426,239) | 75,589 | 579,638 | (505,780) | 73,858 | |
Edesur | 162,778 | (139,099) | 23,678 | 182,538 | (157,865) | 24,673 | |
Distrilima (Edelnor) | 125,792 | (98,219) | 27,574 | 153,805 | (121,131) | 32,674 | |
Ampla | 450,156 | (362,419) | 87,737 | 428,004 | (351,732) | 76,273 | |
Investluz (Coelce) | 305,322 | (235,773) | 69,549 | 297,441 | (233,619) | 63,823 | |
Codensa | 345,265 | (243,024) | 102,241 | 354,228 | (255,798) | 98,430 | |
CAM Ltda. | 76,854 | (72,298) | 4,556 | 76,411 | (75,924) | 487 | |
Inmobiliaria Manso de Velasco Ltda. | 4,545 | (4,748) | (203) | 2,064 | (1,875) | 189 | |
Synapsis Soluciones y Servicios IT Ltda. | 31,808 | (28,765) | 3,043 | 35,181 | (30,438) | 4,743 | |
Enersis Holding and other investment vehicles | 5,992 | (14,349) | (8,357) | 6,274 | (14,568) | (8,294) | |
Consolidation Adjustments | (322,153) | 319,645 | (2,508) | (357,001) | 356,765 | (236) | |
Total Consolidation | 3,068,778 | (2,244,183) | 824,595 | 3,176,647 | (2,184,071) | 992,575 | |
Pg. 15
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6M 09 | ||||||
Thousand US$ | Operating | Operating | Operating | |||
Revenues | Costs | Income | ||||
Endesa Chile (*) | 2,371,341 | (1,343,688) | 1,027,654 | |||
Cachoeira (**) | 80,153 | (32,828) | 47,325 | |||
Fortaleza (***) | 117,833 | (82,961) | 34,872 | |||
Cien (**) | 97,408 | (30,120) | 67,289 | |||
Chilectra | 1,090,036 | (951,143) | 138,893 | |||
Edesur | 343,271 | (296,872) | 46,399 | |||
Distrilima (Edelnor) | 289,238 | (227,793) | 61,446 | |||
Ampla | 804,883 | (661,448) | 143,435 | |||
Investluz (Coelce) | 559,352 | (439,331) | 120,021 | |||
Codensa | 666,142 | (481,041) | 185,102 | |||
CAM Ltda. | 143,695 | (142,779) | 917 | |||
Inmobiliaria Manso de Velasco Ltda. | 3,882 | (3,527) | 355 | |||
Synapsis Soluciones y Servicios IT Ltda. | 66,160 | (57,240) | 8,920 | |||
Enersis Holding and other investment vehicles | 11,798 | (27,395) | (15,597) | |||
Consolidation Adjustments | (671,358) | 670,914 | (444) | |||
Total Consolidation | 5,973,836 | (4,107,250) | 1,866,585 | |||
(*) Since January 1st, 2009, includes Gas Atacama, Transqullota e HydroAysén | ||||||
(**) Consolidated by Endesa Chile until September 30th, 2005. Since October 1st, 2005 is consolidated by Enersis through Endesa Brasil. | ||||||
(***) Since October 1st, 2005, these subsidiaries are consolidated by Enersis through Endesa Brasil |
FINANCIALRESULT
As of June 30th, 2009, the company recorded a financial result of Ch$156,134 million loss, representing a 2.8% increase with respect to the same period of the preceding year, or an equivalent Ch$4,259 million. This variation in results is due to exchange rate differences that amounted a variation of Ch$55,672 million, basically in Chile and Argentina. In Chile, due to the peso/dollar parity effect, which over the period appreciated more than 20% (a 6% devaluation in the previous period), the impact on net assets in dollars exposed to exchange rate fluctuations amounted to Ch$28,796 million (a loss of Ch$18,390 million during 2009 and a income of Ch$10,405 million as of June 2008). In Argentina, in turn, the Argentine peso devalued by approximately 10% during the current period (an approximate 4% appreciation in the same period last year), the impact on the dollar debt was Ch$21,433 million (a loss of Ch$14,519 million in 2009 and an income of Ch$6,258 million at June, 2008).
The above is partially offset by the value impact of the Inflation Index Units – UF (Unidades de Fomento) on Chile’s UF debt, due to the fact that during this semester the UF dropped in value by 2.4% compared to an increase of 3.2% during the same period last year, reflecting a variance of Ch$41,818 million in lower financial costs. The net financial expenditure declined by Ch$9,595 million mainly due to lower average debt over the current period.
TAXES
Tax expense was reduced in Ch$11,748 million as of June, 2009. The latter is mostly explained by the decreases in: Enersis by Ch$34,942 million, Costanera by Ch$9,824 million, San Isidro by Ch$6,993 million and Codensa by Ch$4,638 million. Offset, in part, by increases in: Gas Atacama of Ch$16,823 million, CIEN by Ch$11,417 million, Emgesa by Ch$6,599 million, Pangue by Ch$5,496 million and Edegel in the amount of Ch$4,491 million.
Pg. 16
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CONSOLIDATED BALANCE SHEET ANALYSIS
ASSETSUNDERIFRS
Table 7
ASSETS | Million Ch$ | Thousand US$ | |||||
2007 | 2008 | 6M 09 | Var 08-09 | Chg % | 6M 09 | ||
CURRENT ASSETS | |||||||
Cash and Cash Equivalents | 588,877 | 1,318,062 | 947,082 | (370,980) | (28.1%) | 1,781,033 | |
Financial assets in reasonable value with | |||||||
change in results | - | 1,324 | 1,103 | (221) | 0.0% | 2,075 | |
Financial assets available for sale | - | - | 20,059 | 20,059 | - | 37,722 | |
Accounts receivable, net | 1,159,728 | 1,313,582 | 1,316,916 | 3,334 | 0.3% | 2,476,523 | |
Amounts due from related companies | 52,579 | 24,747 | 18,256 | (6,491) | (26.2%) | 34,331 | |
Inventories | 96,743 | 99,400 | 104,663 | 5,263 | 5.3% | 196,823 | |
Assets for Hedging | - | - | - | - | - | - | |
Prepaid expenses | 10,916 | 8,973 | 10,278 | 1,305 | 14.5% | 19,328 | |
Income taxes recoverable | 146,791 | 131,788 | 150,557 | 18,769 | 14.2% | 283,130 | |
Other current assets | 15,847 | 28,876 | 40,238 | 11,362 | 39.3% | 75,669 | |
Total currrent assets | 2,071,482 | 2,926,752 | 2,609,152 | (317,600) | (10.9%) | 4,906,635 | |
OTHER ASSETS | |||||||
Financial Assets available for sale | 22,501 | 22,495 | 2,533 | (19,962) | (88.7%) | 4,764 | |
Other Financial Assets | 156,668 | 150,946 | 153,297 | 2,351 | 1.6% | 288,282 | |
Long-term receivables | 101,373 | 144,508 | 103,341 | (41,167) | (28.5%) | 194,339 | |
Amounts due from related companies | 505 | 641 | 575 | (66) | (10.3%) | 1,082 | |
Investments in associates | 11,885 | 37,334 | 19,530 | (17,804) | (47.7%) | 36,727 | |
Intangibles | 1,467,885 | 1,459,390 | 1,440,897 | (18,492) | (1.3%) | 2,709,676 | |
Land, plant and equipment, net | 7,589,675 | 8,579,345 | 8,106,562 | (472,783) | (5.5%) | 15,244,776 | |
Investment Property | 28,504 | 26,364 | 26,835 | 471 | 1.8% | 50,465 | |
Deferred income taxes | 541,265 | 512,852 | 477,720 | (35,132) | (6.9%) | 898,376 | |
Assets for Hedging | 1,036 | 2,487 | 1,266 | (1,220) | (49.1%) | 2,381 | |
Prepaid expenses | 1,386 | 1,203 | 3,086 | 1,883 | 156.6% | 5,804 | |
Others assets | 70,737 | 72,215 | 85,255 | 13,040 | 18.1% | 160,326 | |
Total other assets | 9,993,418 | 11,009,780 | 10,420,899 | (588,881) | (5.3%) | 19,596,997 | |
TOTAL ASSETS | 12,064,900 | 13,936,532 | 13,030,051 | (906,481) | (6.5%) | 24,503,632 | |
Pg. 17
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The company’sTotal Assets as of June 2009 decreased by Ch$906,481 million compared to the period ended on December 2008 which is mainly due to:
• A Ch$317,600 million decrease in Current Assets, equal to 10.9%, as a result of:
- A Ch$370,980 million decrease in cash and cash equivalent mainly due to reduced balances at Endesa Chile amounting to Ch$336,340 million in terms of dividend and bonus payments, to payment of dividends at Enersis totaling Ch$79,545 million, Ch$13,597 million at Codensa, Ch$13,592 million at Costanera and Ch$9,968 million at Cachoeira Dourada, partially compensated by increases at Emgesa amounting to Ch$30,611 million, Ch$22,642 million at Endesa Brasil, Ch$22,219 million at Ampla and Ch$13,274 million at Central Fortaleza.
Partially compensated by:
- An increase in available financial assets for sale amounting to Ch$20,059 million, due to the transfer from the long-term of EEB shares that are up for sale.
- An increase in accounts receivable for current taxes amounting to Ch$18,769 million.
• Decrease in Non-Current Assets amounting to Ch$588,881 million representing a 5.3%, mainly due to:
- Reduction in Properties, Plants and Equipment, reached an amount of Ch$472,783 million due to the impact of converting foreign currencies to Chilean pesos by those subsidiaries whose functional currencies differ from the Chilean peso, the latter effect totalized approximately Ch$612,000 million, added to the depreciation effect for the period amounting Ch$220,996 million partially set off by acquisitions during the period amounting to approximately Ch$353,630 million.
- Decreased trade debtors and other receivables amounting Ch$41,167 million, mainly due to the transfer to the short term of the Atacama Finance accounts receivables amounting Ch$45,935 million.
- Decrease in assets due to deferred taxes amounting Ch$35,132 million resulting, from reduced tax losses amounting Ch$27,146 million and the impact of the conversion to Chilean pesos of foreign subsidiaries amounting to Ch$9,500 million.
Pg. 18
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LIABILITIES ANDSHAREHOLDERSEQUITYUNDERIFRS
Table 8 | |||||||
LIABILITIES AND SHAREHOLDER´S EQUITY | Million Ch$ | Thousand US$ | |||||
2007 | 2008 | 6M 09 | Var 08-09 | Chg % | 6M 09 | ||
CURRENT LIABILITIES | |||||||
Loans that acrue interests | 719,737 | 1,244,976 | 840,376 | (404,600) | (32.5%) | 1,580,367 | |
Other financial liabilities | - | - | 553 | 553 | - | 1,041 | |
Sundry Creditors and other Accounts payable | 796,251 | 986,103 | 910,455 | (75,649) | (7.7%) | 1,712,153 | |
Accounts payable to related companies | 69,458 | 115,993 | 130,709 | 14,716 | 12.7% | 245,804 | |
Provisions | 78,638 | 107,398 | 87,319 | (20,079) | (18.7%) | 164,207 | |
Income taxes payable | 102,642 | 178,700 | 168,550 | (10,150) | (5.7%) | 316,966 | |
Other current liabilities | 20,612 | 30,315 | 23,082 | (7,233) | (23.9%) | 43,407 | |
Defererd liabilities | 14,223 | 12,180 | 19,426 | 7,246 | 59.5% | 36,532 | |
Employee Benefits | 4,497 | 5,353 | 4,923 | (430) | (8.0%) | 9,258 | |
Liabilities from Hedge | 10,854 | 4,269 | 5,258 | 990 | 23.2% | 9,888 | |
Accumulated Liabilities (or acrued), total | - | - | - | - | - | - | |
Total current liabilities | 1,816,911 | 2,685,287 | 2,190,651 | (494,636) | (18.4%) | 4,119,624 | |
NON-CURRENT LIABILITIES | |||||||
Loans that acrue interests | 3,366,743 | 3,821,828 | 3,337,549 | (484,279) | (12.7%) | 6,276,419 | |
Other non-current financial liabilities | - | - | 11,021 | 11,021 | - | 20,725 | |
Sundry Creditors and other Accounts payable | 45,119 | 51,221 | 67,486 | 16,265 | 31.8% | 126,911 | |
Accounts payable to related companies | 8,162 | 8,978 | 5,401 | (3,577) | (39.8%) | 10,156 | |
Provisions | 200,023 | 212,383 | 227,432 | 15,049 | 0.0% | 427,696 | |
Deferred income taxes | 589,750 | 637,376 | 566,831 | (70,545) | (0) | 1,065,952 | |
Other long-term liabilities | 30,898 | 33,984 | 39,076 | 5,092 | 15.0% | 73,484 | |
Defererd liabilities | 144,366 | 178,973 | 182,457 | 3,485 | 1.9% | 343,120 | |
Employee Benefits | 143,944 | 173,319 | 176,926 | 3,607 | 2.1% | 332,718 | |
Liabilities from Hedge | 213,419 | 104,053 | 197,733 | 93,680 | 90.0% | 371,847 | |
Total long-term liabilities | 4,742,425 | 5,222,114 | 4,811,911 | (410,203) | (7.9%) | 9,049,028 | |
SHAREHOLDERS´ EQUITY | |||||||
Paid-in capital | 2,594,015 | 2,824,883 | 2,824,883 | - | 0.0% | 5,312,327 | |
Shares owned by the parent's company | - | - | - | - | - | - | |
Other reserves | (564,985) | (1,244,278) | (1,307,706) | (63,429) | 5.1% | (2,459,204) | |
Retained earnings | 502,274 | 1,003,120 | 1,357,427 | 354,308 | 35.3% | 2,552,707 | |
Net income for the period | 369,827 | 507,590 | 360,906 | (146,684) | (28.9%) | 678,701 | |
Total shareholder's equity atributable to | 2,901,131 | 3,091,315 | 3,235,510 | 144,195 | 4.7% | 6,084,530 | |
the Parent's comp. | |||||||
Minority Interest | 2,604,433 | 2,937,816 | 2,791,979 | (145,837) | (5.0%) | 5,250,450 | |
Total shareholder´s equity | 5,505,564 | 6,029,131 | 6,027,489 | 1,642 | (0.0%) | 11,334,980 | |
TOTAL LIABILITIES AND SHAREHOLDER´S | 12,064,900 | 13,936,532 | 13,030,051 | (906,481) | (6.5%) | 24,503,632 | |
EQUITY | |||||||
Pg. 19
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The company’sTotal Liabilities decreased by Ch$906,481 million from the period ended on December 2008, which was largely due to the following:
• Decrease inCurrent Liabilities of Ch$494,636 million, equal to 18.4%, due to:
- Accruing loans declining by Ch$404,600 million mainly at Endesa Chile amounting to Ch$407,459 million due to bonus payments, a drop in the exchange rate and the UF; by Ch$42,578 million at Edegel in loans and bonus payments amounting to Ch$34,239 million and the conversion impact; by Ch$21,751 million at Emgesa due to the conversion impact; by Ch$22,310 million at Enersis in loan payments amounting to Ch$15,626 million and the exchange rate and UF impact; at Codensa by Ch$11,109 million in loan payments and transfers from the long term and at Chilectra Ch$12,423 million. Partially compensated by the increase in Ampla by Ch$41,367 million due to a bond issuance and Cien by Ch$27,452 million.
- Reduction in Trade Creditors totaling Ch$75,649 million mainly at Endesa for Ch$25,622 million, Edesur Ch$18,749 million, Endesa Eco Ch$14,255 million, Costanera Ch$13,793 million and San Isidro Ch$9,780 million; the above is partially offset by an increase in accounts payable at Cien amounting to Ch$29,823 million, Codensa for Ch$26,327 million and Emgesa for Ch$25,460 million.
- Decrease in current Provisions by Ch$20,079 million due to lower provisions for contingencies and lawsuits totaling Ch$13,771 million and a reduction in the employee benefit liability for Ch$4,246 million.
• Non Current Liabilities decreased by Ch$410,203 million, equal to a 7.9%, mainly to:
- Accruing loans declined by Ch$484,279 million mainly at Endesa Chile amounting to Ch$138,549 million derived from a drop in the exchange rate and the UF; at Codensa for Ch$86,654 million because of the transfer of bonds to the short term and the conversion effect; at Grupo Endesa Brasil Ch$84,060 million due to the transfer to the short term and the conversion impact; at Enersis Ch$65,466 million derived from exchange rate and UF impact; at Edegel Ch$27,191 million due to exchange rate and conversion effect; at Costanera Ch$23,964 million due to transfer to the short term, loan payment and conversion effect and at El Chocon by Ch$13,009 million due to the conversion effect.
- Decrease in liabilities due to deferred taxes by Ch$70,545 million derived basically from the conversion impact in foreign subsidiaries amounting to Ch$46,156 million and a reduction in deferred taxes at Codensa amounting to Ch$9,365 million; at Endesa Ch$6,868 million; at Pangue Ch$6,117 million; at San Isidro Ch$3,513 million and at Celta Ch$2,604 million.
- Increase in Hedging Liabilities amounting to Ch$93,680 million resulting from increased Mark-to-Market derivatives at Enersis totaling Ch$95,388 million.
Net Shareholders’ equity declined by Ch$1,642 million with respect to December 2008. The Parent Company equity increased by Ch$144,195 million which is explained mainly by the Ch$360,906 million period result, the increase in Hedge Reserves amounting to Ch$72,526 million, partially compensated by the decline in conversion reserve on acquired investments and goodwill amounting to Ch$140,389 million and a reduction due to the recording of the minimum dividend totaling Ch$138,045 million. The minority interest declined by Ch$145,837 as a result of the net effects on conversion, minimum dividend, derivatives’ hedge reserves and the minority shares’ results.
Pg. 20
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DEBTMATURITY WITHTHIRDPARTIES,MILLIONCH$
Table 9
TOTAL | ||||||||||||||||
Million Ch$ | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | Balance | |||||||||
Chile | 99,535 | 213,432 | 116,211 | 11,070 | 222,663 | 368,040 | 862,729 | 1,893,681 | ||||||||
Enersis | 90,099 | 19,329 | 1,957 | 2,069 | 2,188 | 253,843 | 209,805 | 579,290 | ||||||||
Chilectra | 551 | - | - | - | - | - | - | 551 | ||||||||
Other (*) | 6,069 | 2,436 | 42 | 120 | - | - | - | 8,667 | ||||||||
Endesa Chile (**) | 2,816 | 191,667 | 114,212 | 8,881 | 220,475 | 114,197 | 652,923 | 1,305,172 | ||||||||
Argentina | 41,824 | 69,118 | 55,922 | 17,893 | 13,562 | 7,575 | - | 205,894 | ||||||||
Edesur | 1,798 | 26,321 | 13,051 | 5,096 | 407 | 264 | - | 46,936 | ||||||||
Costanera | 26,778 | 26,512 | 20,714 | 12,798 | 13,155 | 7,312 | - | 107,269 | ||||||||
Chocon | 13,248 | 16,285 | 22,157 | - | - | - | - | 51,689 | ||||||||
Peru | 28,739 | 46,738 | 67,185 | 78,811 | 50,321 | 49,325 | 81,011 | 402,130 | ||||||||
Edelnor | 5,555 | 17,912 | 26,211 | 22,996 | 25,778 | 26,308 | 35,822 | 160,582 | ||||||||
Edegel | 23,184 | 28,826 | 40,974 | 55,815 | 24,543 | 23,018 | 45,189 | 241,547 | ||||||||
Brazil | 68,469 | 242,194 | 217,159 | 210,624 | 68,525 | 29,234 | 27,109 | 863,315 | ||||||||
Coelce | 8,135 | 106,293 | 39,102 | 37,969 | 27,938 | 21,274 | 6,515 | 247,226 | ||||||||
Ampla | 56,371 | 72,538 | 114,285 | 109,690 | 33,617 | 486 | 2,025 | 389,012 | ||||||||
Cien | 1,283 | 57,714 | 57,714 | 56,466 | - | - | - | 173,176 | ||||||||
Fortaleza | 2,680 | 5,649 | 6,059 | 6,498 | 6,970 | 7,475 | 18,569 | 53,900 | ||||||||
Colombia | 95,071 | 190,443 | 94,996 | 89,383 | 42,484 | 79,016 | 292,129 | 883,524 | ||||||||
Codensa | 10,555 | 88,077 | 52,776 | 8,898 | 42,484 | 65,970 | 124,419 | 393,179 | ||||||||
Emgesa | 84,516 | 102,366 | 42,221 | 80,485 | - | 13,046 | 167,711 | 490,345 | ||||||||
TOTAL | 333,639 | 761,926 | 551,472 | 407,781 | 397,556 | 533,191 | 1,262,978 | 4,248,543 | ||||||||
(*) Includes: CAM | ||||||||||||||||
(**) Includes: Endesa Chile, Pangue, Pehuenche, San Isidro, Celta and Túnel El Melón. |
DEBTMATURITY WITHTHIRDPARTIES,THOUSANDUS$
Table 9.1
TOTAL | ||||||||||||||||
Thousand US$ | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | Balance | |||||||||
Chile | 187,181 | 401,370 | 218,540 | 20,818 | 418,729 | 692,116 | 1,622,402 | 3,561,156 | ||||||||
Enersis | 169,435 | 36,348 | 3,680 | 3,891 | 4,115 | 477,364 | 394,549 | 1,089,382 | ||||||||
Chilectra | 1,036 | - | - | - | - | - | - | 1,036 | ||||||||
Other (*) | 11,414 | 4,582 | 79 | 225 | - | - | - | 16,299 | ||||||||
Endesa Chile (**) | 5,297 | 360,440 | 214,781 | 16,702 | 414,614 | 214,753 | 1,227,853 | 2,454,439 | ||||||||
Argentina | 78,653 | 129,980 | 105,163 | 33,649 | 25,504 | 14,246 | - | 387,194 | ||||||||
Edesur | 3,382 | 49,498 | 24,542 | 9,582 | 765 | 496 | - | 88,266 | ||||||||
Costanera | 50,357 | 49,857 | 38,954 | 24,066 | 24,738 | 13,750 | - | 201,724 | ||||||||
Chocon | 24,914 | 30,624 | 41,667 | - | - | - | - | 97,205 | ||||||||
Peru | 54,045 | 87,893 | 126,344 | 148,207 | 94,631 | 92,759 | 152,345 | 756,224 | ||||||||
Edelnor | 10,446 | 33,685 | 49,291 | 43,245 | 48,477 | 49,473 | 67,366 | 301,982 | ||||||||
Edegel | 43,599 | 54,208 | 77,053 | 104,962 | 46,154 | 43,286 | 84,979 | 454,241 | ||||||||
Brazil | 128,759 | 455,457 | 408,378 | 396,088 | 128,864 | 54,977 | 50,981 | 1,623,505 | ||||||||
Coelce | 15,299 | 199,889 | 73,533 | 71,402 | 52,539 | 40,006 | 12,253 | 464,921 | ||||||||
Ampla | 106,009 | 136,411 | 214,918 | 206,278 | 63,218 | 913 | 3,808 | 731,555 | ||||||||
Cien | 2,413 | 108,533 | 108,533 | 106,188 | - | - | - | 325,667 | ||||||||
Fortaleza | 5,039 | 10,624 | 11,394 | 12,220 | 13,107 | 14,057 | 34,920 | 101,362 | ||||||||
Colombia | 178,786 | 358,138 | 178,645 | 168,090 | 79,894 | 148,593 | 549,363 | 1,661,509 | ||||||||
Codensa | 19,849 | 165,634 | 99,247 | 16,733 | 79,894 | 124,059 | 233,975 | 739,392 | ||||||||
Emgesa | 158,937 | 192,504 | 79,398 | 151,356 | - | 24,534 | 315,388 | 922,117 | ||||||||
TOTAL | 627,425 | 1,432,837 | 1,037,070 | 766,852 | 747,622 | 1,002,691 | 2,375,091 | 7,989,588 | ||||||||
(*) Includes: CAM | ||||||||||||||||
(**) Includes: Endesa Chile, Pangue, Pehuenche, San Isidro, Celta and Túnel El Melón. |
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EVOLUTIONOFKEYFINANCIALRATIOS
Table 10
Indicator | Unit | 2008 | 6M09 | Var 08 - 09 | Chg % |
Liquidity | Times | 1.1 | 1.2 | 0.1 | 9.2% |
Acid ratio test * | Times | 1.0 | 1.1 | 0.1 | 8.6% |
Working capital | million Ch$ | 241,465 | 418,501 | 177,036 | 73.3% |
Working capital | th. US$ | 454,087 | 787,011 | 332,924 | 73.3% |
Leverage ** | Times | 1.3 | 1.2 | (0.1) | (11.5%) |
Short-term debt | % | 0.3 | 0.3 | (0.0) | (8.8%) |
Long-term debt | % | 0.7 | 0.7 | 0.0 | 4.5% |
* Current assets net of inventories and pre-paid expenses | |||||
** Using the ratio = Total debt / (equity + minority interest) |
Indicator | Unit | 6M08 | 6M 09 | Var 08-09 | Chg % |
Financial Expense Coverage*** | Times | 4.7 | 5.5 | 0.8 | 17.3% |
Op.Income / Op.Rev. | % | 26.9 | 31.2 | 4.4 | 16.3% |
ROE | % | 17.0 | 22.3 | 5.3 | 31.0% |
ROA | % | 9.6 | 10.6 | 1.0 | 10.2% |
***EBITDA/Financial Costs |
Liquidity index as of June, 2009 was 1.2, an improvement of 0.1 or an equivalent of 9.2% compared to December, 2008. This shows a company that continually presents a strong liquidity position, reducing its bank borrowings and financing its investments with its cash surpluses and having a satisfactory debt maturity pattern.
Leverage ratio was 1.2, reflecting a reduction of 0.1 with respect to December, 2008, due to lower indebtedness during 2009.
Financial Expense Coverage increased 0.8 times or an equivalent 17.3%, going from 4.7 in June 2008 to 5.5 for the current period. The above is the result of a significant EBITDA increase achieved by the company over the current period and to the containment of debt service costs, mainly due to a positive UF effect.
Operating Income over Operating Revenues profitability increased 16.3%, reaching a 31.2% in June, 2009.
The annualROE amounted to 22.3% in June, 2009 with an increase of 31.0% over June, 2008 when it reached 17.0% . This increase is derived from higher period results despite an increase in Parent Company equity.
AnnualROA went from 9.6% in June, 2008 to 10.6% in June 2009, situation which also reflects the improved current period result, together with a decline in assets, mainly in terms of conversion effects from the functional currency to the Chilean peso.
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CONSOLIDATEDSTATEMENTS OFCASHFLOWSANALYSIS
UNDERIFRS
Table 11
CASH FLOW | Million Ch$ | Thousand US$ | ||||
6M 08 | 6M 09 | Var 08-09 | Chg % | 6M09 | ||
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | ||||||
Net income (loss) for the year | 514,176 | 691,007 | 176,831 | 34.4% | 1,299,472 | |
Adjustments to reconcile with the gain (loss) of the operations, total | 342,923 | 277,613 | (65,310) | (19.0%) | 522,065 | |
Net cash from operating activities before non monetary adjustment | 857,099 | 968,621 | 111,522 | 13.0% | 1,821,537 | |
Non monetary adjustments: | - | - | ||||
Depreciation | 207,509 | 214,646 | 7,137 | 3.4% | 403,653 | |
Amortization of intangibles | 5,893 | 6,349 | 456 | 7.8% | 11,940 | |
(Reversal of) Impairment losses | - | - | - | - | - | |
Foreign Exchange losses | (31,515) | 24,157 | 55,672 | 176.7% | 45,429 | |
Change in the value of Investment Property | - | - | - | - | - | |
Non realized Gain (loss) on the fair value of hedging instruments | - | - | - | - | - | |
Gain (loss) for decrease in the non current assets account not available for | ||||||
sale | 989 | 203 | (786) | (79.5%) | 381 | |
Gain (loss) on the sale of other assets and financial liabilities | 844 | - | (844) | (100.0%) | - | |
Participation in Gain (loss) of Investments | (597) | - | 597 | 100.0% | - | |
Provisions | 21,039 | 38,631 | 17,592 | 83.6% | 72,648 | |
Reversal of not used provision | 7,112 | 6,053 | (1,059) | (14.9%) | 11,383 | |
Provisions used | 8,045 | 11,846 | 3,801 | 47.2% | 22,277 | |
Increase (decrease) on assets for deferred taxes | 20,551 | (10,003) | (30,554) | (148.7%) | (18,811) | |
Increase (decrease) on liabilities for deferred taxes | 4,940 | (8,439) | (13,379) | - | (15,870) | |
Other non monetary adjustments | (17,394) | (8,902) | 8,492 | 48.8% | (16,741) | |
Total Non monetary adjustments: | 153,528 | 258,344 | 104,816 | 68.3% | 485,829 | |
Increase (decrease) in non current assets and Disposal Groups | ||||||
available for sale | 1,710 | - | (1,710) | (100.0%) | - | |
Increase (decrease) in inventory | (17,460) | (91) | 17,369 | 99.5% | (171) | |
Increase (decrease) in sundry debtors and other accounts receivable | 94,329 | 12,240 | (82,089) | (87.0%) | 23,018 | |
Increase (decrease) in prepaid expenses | 3,577 | 1,935 | (1,642) | (45.9%) | 3,638 | |
Decrease (increase) in other assets | (84,389) | (41,887) | 42,502 | 50.4% | (78,770) | |
Increase (decrease) in sundry creditors and other accounts payable | 63,608 | (205,962) | (269,570) | - | (387,321) | |
Increase (decrease) on deferred income | 12,612 | 2,273 | (10,339) | (82.0%) | 4,275 | |
Increase (decrease) on acruances | (3,212) | (3,570) | (358) | (11.1%) | (6,713) | |
Decreased (increase) in income tax payable | (165,860) | (187,144) | (21,284) | (12.8%) | (351,934) | |
Decreased (increase) in employee benefits | 543 | 4,838 | 4,295 | - | 9,099 | |
Decreased (increase) in other disbursements | (68,107) | (18,422) | 49,685 | 73.0% | (34,643) | |
Changes in working capital | (158,183) | (380,183) | (222,000) | (140.3%) | (714,952) | |
Proceeds from Dividends classified as operational | - | 255 | 255 | - | 480 | |
Payments of Dividends classified as operational | 3,014 | 12,269 | 9,255 | - | 23,073 | |
Interest received | - | 574 | 574 | - | 1,079 | |
Interest paid | (162) | 32,249 | 32,411 | - | 60,645 | |
Income taxes received | - | 792 | 792 | - | 1,490 | |
Income taxes paid | 10,330 | 36,493 | 26,163 | - | 68,627 | |
Other gains (losses) from other operating activities | - | (225) | (225) | - | (423) | |
Cash generated by the operating activities | (13,182) | (79,615) | (66,433) | - | (149,720) | |
NET CASH FLOW FROM OPERATING ACTIVITIES | 839,261 | 767,167 | (72,095) | (8.6%) | 1,442,695 | |
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UNDERIFRS
Cont. Table 11 | ||||||||||
NET CASH FLOW FROM OPERATING ACTIVITIES | 839,261 | 767,167 | (72,095) | (8.6%) | 1,442,695 | |||||
CASH FLOWS PROVIDED BY INVESTING ACTIVITIES | - | |||||||||
Proceeds from the sale of plant and equipment | (1,978) | 5,139 | 7,117 | - | 9,664 | |||||
Proceeds from the sale of intangible assets | - | 756 | 756 | - | 1,422 | |||||
Proceeds from the sale of investment property | 7,555 | - | (7,555) | (100.0%) | - | |||||
Proceeds from the sale of investment in associates | - | - | - | - | - | |||||
Other cash flows from investment activities | (4,328) | 3,861 | 8,189 | 189.2% | 7,262 | |||||
Dividends received | 2,296 | 4,572 | 2,276 | 99.1% | 8,598 | |||||
Interest received | 638 | 1,878 | 1,240 | 194.3% | 3,533 | |||||
Acquisition of property, plant and equipment | 352,745 | 339,876 | (12,869) | (3.6%) | 639,152 | |||||
Payments for the acquisition of property, plant and equipment | - | 92 | 92 | - | 173 | |||||
Acquisition of pintangible assets | 3,207 | 1,493 | (1,714) | (53.4%) | 2,808 | |||||
Payments for the acquisition of associates | - | 24,975 | 24,975 | - | 46,967 | |||||
Provided loans to related companies | 26,226 | 7,299 | (18,927) | (72.2%) | 13,726 | |||||
Provided loans to non related companies | - | - | - | - | - | |||||
Other cash flows from investing activities | 1,847 | 23,111 | 21,264 | - | 43,462 | |||||
NET CASH FLOW FROM INVESTING ACTIVITIES | (379,875) | (380,639) | (765) | (0.2%) | (715,810) | |||||
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES | - | |||||||||
Proceeds from loans | 438,734 | 368,770 | (69,964) | (15.9%) | 693,490 | |||||
Proceeds from the issue of other financial liabilities | 10,682 | 38,107 | 27,425 | - | 71,662 | |||||
Proceeds from other financial sources | 19,537 | 21,310 | 1,773 | 9.1% | 40,074 | |||||
Repayment/ drawing of borrowings | 459,506 | 373,659 | (85,847) | (18.7%) | 702,684 | |||||
Repayment of finance lease liabilities | 3,682 | 2,684 | (998) | (27.1%) | 5,047 | |||||
Loans repayments to related companies | 1,292 | 1,428 | 136 | 10.5% | 2,685 | |||||
Interest paid classified as financial | 96,310 | 111,187 | 14,877 | 15.4% | 209,093 | |||||
Dividends paid | 268,289 | 245,840 | (22,449) | (8.4%) | 462,314 | |||||
Other cash flows from financing activities | (21,569) | (361,619) | (340,050) | - | (680,042) | |||||
NET CASH FLOW FROM FINANCING ACTIVITIES | (381,696) | (668,230) | (286,535) | (75.1%) | (1,256,638) | |||||
Net increase (decrease) in cash and cash equivalents | 77,690 | (281,702) | (359,392) | - | (529,753) | |||||
Effects of exchange rate fluctuations on cash held | 35,830 | (89,278) | (125,108) | - | (167,892) | |||||
Effects of consolidation adjustments on cash held | - | - | - | - | - | |||||
Cash and cash equivalents at begining of period | 588,877 | 1,318,062 | 729,185 | 123.8% | 2,478,678 | |||||
Cash and cash equivalents at end of period | 702,398 | 947,082 | 244,684 | 34.8% | 1,781,033 | |||||
The company generated a negative cash flow of Ch$281,702 million for the period, which can be broken down as follows:
Operating activities generated a positive net cash flow of Ch$767,167 million that represents a drop of 8.6% with respect to the same period of the previous year. This cash flow consists mainly of the income for the period.
Investment activitiesgenerated a net negative cash flow of Ch$380,639 million, that compared to the same period of the preceding year represents a 0.2% inferior cash flow or Ch$ 764 million. Basically, these payments represent the incorporation of fixed assets amounting to Ch$339,876 million, investments in related companies for Ch$24,975 million and other investment disbursements for Ch$30,410 million; the above was partially offset by the revenue from investments amounting to Ch$16,207 million.
Financing activities originated a negative cash flow of Ch$668,230 million, from loan repayments totaling Ch$373,659 million, dividend payments of Ch$245,840 million, interest payments of Ch$111,187 million, and other debt service payments totaling Ch$365,731 million. The above is offset in part by the acquisition of loans for Ch$368,770 million and bond positions for Ch$38,107 million as well as other financing sources amounting to Ch$21,310 million.
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CASHFLOWRECEIVEDFROMFOREIGNSUBSIDIARIES BYENERSIS,CHILECTRA ANDENDESACHILE
Table 13
Interest Received | Dividends Received | Total Cash Received | ||||||||||||||||
Millions Ch$ | Thousand US$ | Millions Ch$ | Thousand US$ | Millions Ch$ | Thousand US$ | |||||||||||||
6M 08 | 6M 09 | 6M 09 | 6M 08 | 6M 09 | 6M 09 | 6M 08 | 6M 09 | 6M 09 | ||||||||||
Argentina | 565 | 460 | 865 | 178 | - | - | 743 | 460 | 865 | |||||||||
Peru | - | - | - | 7,783 | 7,196 | 13,533 | 7,783 | 7,196 | 13,533 | |||||||||
Brazil | - | 6,309 | 11,864 | 28,724 | 16,282 | 30,619 | 28,724 | 22,591 | 42,483 | |||||||||
Colombia | - | - | - | 29,058 | 12,731 | 23,942 | 29,058 | 12,731 | 23,942 | |||||||||
Chile | - | - | - | - | - | - | - | |||||||||||
Total | 565 | 6,769 | 12,729 | 65,743 | 36,209 | 68,093 | 66,308 | 42,978 | 80,823 | |||||||||
Source: Internal Financial Report |
CAPEX ANDDEPRECIATION
Table 14
Payments for Additions of Fixed assets | Depreciation | ||||||||||
Million Ch$ | Thousand US$ | Million Ch$ | Thousand US$ | ||||||||
Million Ch$ | 6M 08 | 6M 09 | 6M 09 | 6M 08 | 6M 09 | 6M 09 | |||||
Endesa Chile | 115,471 | 169,230 | 318,245 | 91,284 | 96,976 | 182,368 | |||||
Cachoeira (*) | - | - | - | 4,000 | 3,308 | 6,222 | |||||
Endesa Fortaleza (**) | 359 | - | - | 4,030 | 3,655 | 6,873 | |||||
Cien (**) | - | 379 | 713 | 7,815 | 9,441 | 17,755 | |||||
Chilectra S.A. | 28,084 | 15,602 | 29,341 | 9,125 | 9,815 | 18,458 | |||||
Edesur S.A. | 47,802 | 27,358 | 51,447 | 8,867 | 8,800 | 16,549 | |||||
Edelnor S.A. | 14,101 | 19,942 | 37,501 | 9,861 | 10,017 | 18,838 | |||||
Ampla | 59,614 | 38,110 | 71,667 | 24,169 | 23,494 | 44,181 | |||||
Coelce | 62,241 | 44,040 | 82,820 | 17,751 | 19,269 | 36,237 | |||||
Codensa S.A. | 19,902 | 22,460 | 42,237 | 27,584 | 26,873 | 50,537 | |||||
Cam Ltda. | 1,199 | 1,296 | 2,437 | 925 | 916 | 1,723 | |||||
Inmobiliaria Manso de Velasco Ltda. | 1,133 | 461 | 867 | 104 | 131 | 246 | |||||
Synapsis Soluciones y Servicios Ltda. | 2,115 | 931 | 1,751 | 1,514 | 1,389 | 2,612 | |||||
Holding Enersis y sociedades de Inversión | 724 | 66 | (1,148) | 479 | 561 | 1,056 | |||||
Total | 352,745 | 339,875 | 637,877 | 207,509 | 214,646 | 403,653 | |||||
(*) Consolidated by Enersis through Endesa Brasil since October 1st, 2005. |
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THEPRINCIPALRISKS ASSOCIATED TO THE ACTIVITIES OF THEENERSISGROUP
The Group’s activities are subject to a broad range of governmental standards, and any modification of such standards may affect the Group’s activities, economic situation and operating results.
The Group’s operating subsidiaries are subject to a broad range of rules regarding tariffs and other issues that govern their activities, both in Chile and other countries in which we operate. As a result, the introduction of new laws and regulations, such as amendments to current laws and standards, could impact our activities, economic situation and operating results.
On occasion, these new laws and standards modify aspects of the regulations that can affect existing rights which, in such event, could have adverse effects on future Group accounts.
The Group’s activities are subject to broad environmental regulations that. Eventual modifications to these issues could affect activities, the economic situation and operating results.
Enersis and its operating subsidiaries are subject to environmental standards that, among others, require that environmental impact studies be carried out regarding future projects, together with the acquisition of licenses, permits and other mandatory approvals as well as compliance with all the requirements provided for in such licenses, permits and standards. As with any other regulated company, Enersis cannot guarantee:
- That the public authorities will approve such environmental impact studies;
- That public opposition will not lead to delays and modifications of any submitted project;
- That the laws and standards will not be amended or interpreted in such a way that could increase compliance expense or that operation, plants and plans of the companies in which the Group participates are affected.
The Group’s commercial policies have been planned so that eventual impacts arising from changes in hydrological conditions are reduced.
The Enersis Group’s operations include hydroelectric generation and therefore depend at all times on the existing hydrological conditions in the broad geographic zones in which the Group’s hydroelectric generating plants are located. If hydrological conditions produce drought or other conditions that negatively influence, the results of these hydroelectric generation activities, results could be adversely impacted. Thus Enersis has decided, as part of its commercial policy, not to commit its total capacity. Moreover, the electricity business has been impacted by atmospheric conditions that could condition consumption. Depending on the weather conditions, differences in the business margins can occur.
The financial situation and operating results can be impacted adversely if exposure to risks such as interest rates, the price of commodities and the exchange rate are not managed efficiently.
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Interest Rate Risk
Interest rate variations modify the reasonable value of those assets and liabilities that accrue a fixed interest rate, as well as the future flow of assets and liabilities pegged to a variable interest rate.
The purpose of interest rate exposure management is to achieve an adequate balance in debt structures, thereby minimizing debt costs with reduced volatility on financial results.
Consistent with current interest rate hedging policy, the portion of fixed and/or secured debt rate over the total net debt was 40% as of June 30th, 2009.
Depending on the Group’s forecasts and debt structure objectives, hedging transactions take place through contracted derivatives that mitigate these risks. The instruments currently used to comply with this policy are collars, that ensure the Libor rate within a specific band, or simply interest rate swaps that from variable to fixed rates.
The Enersis Group’s financial debt structure according to fixed, secured or variable rate, after contracted derivatives, is the following:
Net position:
12/31/2008 | 06/30/2009 | |
Fixed interest rate | 46% | 36% |
Protected interest rate | 3% | 3% |
Variable interest rate | 51% | 61% |
Total | 100% | 100% |
Exchange rate risks:
The exchange rate risks are mainly related to the following transactions:
- Foreign currency debts contracted by Group’s companies.
- Payments made on international markets for the acquisition of projects related materials.
- Group companies incomes directly linked to the evolution of the dollar.
- Cash flows from subsidiary companies to headquarters in Chile are exposed to exchange rate fluctuations.
In order to mitigate exchange rate risks, the Enersis Group’s exchange rate hedging policy is based on cash flows and it strives to maintain a balance between the flows indexed to United States dollar and the asset and liability levels in such currency.
Currency swaps and exchange rate forwards are the instruments currently used in compliance with this policy. Likewise, the policy strives to refinance debts in each company’s functional currency.
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Commodities Risks:
The Enersis Group is exposed to price fluctuation risks on some commodities, basically through:
- Fuel purchases for the electrical power generating process.
- Energy buying-selling transactions on local markets.
The company does not execute commodity derivates transactions aimed to managing fuel fluctuations.
With the objective of reducing risks in extreme drought situations, the company has designed a trading policy that defines sales commitment levels consistent with its generating plants’ sound energy capacity in a dry year and includes risk mitigation clauses in some contracts with non regulated clients.
Liquidity Risks:
In engaging committed long term borrowing facilities and short term financial investments the Group maintains a consistent liquidity policy, for the adequate amounts required to support projected needs for the period, contingent with the situation and the expectations of the debt and equity markets.
The aforementioned projected needs include net financial debt maturities that are after including financial derivatives. For further detail on the characteristics and conditions of these financial derivatives, see note 17 to the Consolidated Financial Statements.
As of June 30, 2009, the Enersis Group held liquidity in the amount of Ch$ 947,082 million in cash and cash equivalent and Ch$106,352 million in available credit lines. As of December 31, 2008, the Group’s liquidity totaling was Ch$1,318,062 million in cash and cash equivalent, and Ch$ 127,290 million in available credit lines.
Credit Risks
Given the current economic climate, the Group has been carefully following the credit risk standing.
- Trade Accounts Receivable:
Credit risk in accounts receivable, originating from trading activities, is historically very limited given that the short collection term conditions to customer doesn’t allows them to individually accumulate significant amounts. Additionally, in the case of the so called “unregulated clients” of our electricity generation and distribution business, a formal procedure is applied to control the credit risk, using a systematic evaluation of our counterparties, index definition and credit risk factors by virtue of which the contracts are approved or additional guarantee demands are defined.
Furthermore, in our electricity generating business line, in the event of non-payment, some countries allow power supply cut-offs, and in almost all contracts such lack of payment is established as cause for contract termination. To this end, credit risks are constantly monitored and the maximum amounts exposed to payment risks are measured, which, as has been said, are limited.
In turn, in our electricity distribution business line, the energy supply cut-off is, in all cases, a power held by our companies when faced with default by our customers, applied in accordance with the regulation in force in each country, enabling the credit risk evaluation and control process, which in fact is also limited.
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- Financial Assets:
Surplus cash flow investments are placed in prime national and foreign financial entities (with an investment grade equivalent risk rating) with established limits set for each entity (not more than 30% per entity).
In the selection of banks for investment, consideration is given to those that hold two investment grade classifications, considering the three main international risk agencies (Moody’s, S&P and Fitch).
Positions are backed up by treasury bonds from the country of operations and instruments issued by the most reputable banks, favoring, wherever possible, the first ones.
Derivatives are engaged through highly solvent entities such that about 90% of operations are carried out with entities that hold an A or higher rating.
Risk Measurement
The Enersis Group measures the Value at Risk of its debt and financial derivatives positions with a view to guaranteeing that the risk taken by the company remains consistent with the risk exposure defined by Management, thus restricting the volatility of its financial results.
The positions portfolio used in the calculations of the current Value at Risk is comprised of:
- Debt
- Financial Derivatives
The calculated Value at Risk represents the possible value loss of the aforementioned positions portfolio over one day time horizon with 95% probability. To this end the volatility of the risk variables that affect the value of the positions portfolio has been studied, including:
- The U.S. dollar Libor interest rate.
- The usual banking local indexes for debts, and taking into account the different currencies our companies operate under.
- The exchange rates of the different currencies involved in the calculation.
The Value at Risk calculation, using the Montecarlo methods, is based on generating possible future scenarios (on a one-day time horizon) of the risk variables of the market values (both spot and timed). The number of scenarios generated ensures observance of the simulation’s convergence criteria. In the simulated scenarios of future prices the volatilities matrix and the correlations between the different risk variables calculated on historic price logarithmic returns are applied.
Once the price scenarios have been generated, the portfolio’s reasonable value is calculated for each one of the scenarios, generating an allotment of possible one-day values. The one-day Risk Value, calculated with a 95% of confidence, is rated as a 5% percentile of the possible increases of the portfolio’s reasonable value for one day.
The valuation of the diverse debt and financial derivative positions in the calculation has been consistent with the economic equity calculation method reported to Management.
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In view of the aforementioned hypothesis, the Value at Risk of the positions mentioned above, broken down by type of position, is detailed in the following table:
31/12/2008 | 30/06/2009 | |
Financial positions: | Th Ch$ | Th Ch$ |
Interest rates | 19,684,705 | 25,314,568 |
Exchange rates | 4,093,964 | 3,994,034 |
Correlations | (4,547,152) | (3,994,034) |
Total | 19,231,517 | 25,314,568 |
Value at Risk positions have evolved during the 1st semester of 2009, as a function of the expiration/initiation of operations throughout the period.
Other Risks
A portion of Enersis and Endesa Chile’s debt is subject to cross default provisions. If certain defaults in debt of certain specific subsidiaries are not remedied within specified grace periods, a cross default could affect Endesa Chile and Enersis, and under certain scenarios, debts at the holding company level could be accelerated.
Nonpayment – after any applicable grace period – of the debts of Enersis and Endesa Chile, or their so-called Relevant Subsidiaries, with an individual principal amount outstanding in excess of fifty million dollars (or its equivalent in other currencies), and with a missed payment also in excess of fifty million dollars, could give rise to a cross default of several bank revolving debt facilities at the Endesa Chile and Enersis levels. Furthermore, some of these debt facilities are also subject to cross acceleration provisions in the event of a default in other Relevant Subsidiary debt, for reasons other than payment default, for events such as bankruptcy, insolvency proceedings, and materially adverse governmental or legal actions, in all cases for amounts in excess of fifty million dollars.
Similarly, nonpayment – after any given applicable grace period - of the debts of these companies or any of their Chilean subsidiaries, in single indebtedness in default with a principal in excess of thirty million dollars, could potentially give rise to a cross default of Enersis and Endesa Chile Yankee bonds. After an amendment to the Yankee Bond Indentures executed on July 24, 2009, no subsidiary outside Chile can trigger the cross default and bankruptcy/insolvency clauses of the Yankee Indentures.
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BOOKVALUE ANDECONOMICVALUE OFASSETS
Regarding the more important assets, the following should be mentioned:
Properties, Plants and Equipment are valued at their purchase cost, net of the corresponding accumulated depreciation and impairment loss they have been subject to. Properties, Plants and Equipment, net of their residual value, if applicable, are depreciated by linearly distributing the cost of their different elements along the estimated years of useful life, which is the period that the companies expect to use them. The useful life is reviewed regularly.
The capital gain (lower investments or goodwill value) generated by consolidation represents the acquisition cost surplus on the Group’s share in terms of the reasonable value of assets and liabilities, including the identifiable contingent liabilities of a Subsidiary at the time of acquisition. Capital gain is not amortized, rather at the closing of each accounting period an assessment is made of whether any impairment has occurred during the period that could reduce its recoverable value to an amount below the registered net cost, proceeding in this event to make a timely impairment adjustment (See Note 3.d to the Consolidated Financial Statements).
Throughout the fiscal year and in particular at the date of closing, an assessment is made as to any indication of possible loss due to the impairment of any asset. In the event of any such indication, an estimate of the recoverable sum of said asset is made to determine, if applicable, the depreciated amount. If this involves identifiable assets that do not originate independent cash flows, the recoverability of the Cash Generating Unit that the asset belongs to is estimated, understanding as such the smaller Group of identifiable assets that generate independent cash incomes. As a result of this assessment, it has been determined that there is no impairment associated to businesses acquired, with the exception of the investment of our joint subsidiary Gas Atacama Holding Ltda., whose proof of depreciation determined that during 2007 the value recovered from said investment was in fact lower than its book value, thereby making provision for such.
Assets expressed in foreign currency are submitted at the prevalent exchange rate at the closing of the period.
Notes and accounts receivable from related companies are classified according to their short and long term maturities. These operations are adjusted according to prevalent market equity conditions.
In summary, assets are valued according to the International Financial Reporting Standards, whose criteria are expressed in Note 3 of the Consolidated Financial Statements.
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ARGENTINA
GENERATION
ENDESACOSTANERA
Operating Income amounted to Ch$6,722 million, a drop of 60.2% versus the same period of the preceding year. While physical sales increased by 8.9% over the first semester, the drop in average prices led to a 9.2% decrease in operating revenues. In comparing both periods, operating costs declined 5%, mainly explained by lower fuel consumption due to increased gas availability.
Table 15 | |||||||||
Endesa Costanera | Million Ch$ | Thousand US$ | |||||||
6M 08 | 6M 09 | Var 08-09 | Chg % | 6M 09 | |||||
Operating Revenues | 143,323 | 130,155 | (13,168) | (9.2%) | 244,762 | ||||
Operating Costs | (110,160) | (104,224) | 5,937 | 5.4% | (195,998) | ||||
Gross Profit | 33,163 | 25,931 | (7,232) | (21.8%) | 48,765 | ||||
Other Costs | (7,419) | (9,268) | (1,849) | (24.9%) | (17,430) | ||||
Gross Operating Income (EBITDA) | 25,744 | 16,663 | (9,081) | (35.3%) | 31,335 | ||||
Depreciation and Amortization | (8,846) | (9,941) | (1,095) | (12.4%) | (18,694) | ||||
Operating Income | 16,898 | 6,722 | (10,176) | (60.2%) | 12,641 | ||||
Figures may differ from those accounted under Argentine GAAP. |
Additional Information
Table 16
Endesa Costanera | 6M 08 | 6M 09 | Var 08-09 | Chg % | ||||
GWh Produced | 4,639 | 5,028 | 389 | 8.4% | ||||
GWh Sold | 4,639 | 5,052 | 413 | 8.9% | ||||
Market Share | 8.8% | 9.7% | - | 10.7% | ||||
![](https://capedge.com/proxy/6-K/0001292814-09-001796/fp32a.gif)
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ELCHOCÓN
Chocón showed improved dam levels at the onset of this year, thereby providing improved water availability. This led to an increase in operating income that totaled Ch$16,727 million as of June, 2009, resulting from a 64.1% growth in physical sales compared to the first semester of the previous year.
Table 17 | |||||||||
El Chocón | Million Ch$ | Thousand US$ | |||||||
6M 08 | 6M 09 | Var 08-09 | Chg % | 6M 09 | |||||
Operating Revenues | 20,708 | 30,720 | 10,012 | 48.4% | 57,771 | ||||
Operating Costs | (9,713) | (9,705) | 8 | 0.1% | (18,251) | ||||
Gross Profit | 10,994 | 21,015 | 10,021 | 91.1% | 39,521 | ||||
Other Costs | (1,999) | (2,467) | (468) | (23.4%) | (4,639) | ||||
Gross Operating Income (EBITDA) | 8,996 | 18,549 | 9,553 | 106.2% | 34,881 | ||||
Depreciation and Amortization | (1,759) | (1,821) | (62) | (3.5%) | (3,425) | ||||
Operating Income | 7,237 | 16,727 | 9,491 | 131.1% | 31,457 | ||||
Figures may differ from those accounted under Argentine GAAP. |
Additional Information
Table 18
El Chocón | 6M 08 | 6M 09 | Var 08-09 | Chg % | ||||
GWh Produced | 701 | 1,533 | 833 | 118.8% | ||||
GWh Sold | 1,067 | 1,750 | 684 | 64.1% | ||||
Market Share | 2.0% | 3.4% | - | 66.7% | ||||
![](https://capedge.com/proxy/6-K/0001292814-09-001796/fp33a.gif)
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DISTRIBUTION
EDESUR
Our subsidiary Edesur showed an increase in operating income of Ch$995 million, going from Ch$23,678 million as of June, 2008 to Ch$24,673 million for the current period. This is mainly due to an increase in average sales prices, partially offset by an increase in energy purchases, an increase in operating and maintenance expense, as well as personnel costs. Physical sales dropped 1.0%, totaling 7,970 GWh for the period ending June, 2009. Energy losses declined to a 10.5% (as of June 2008, these were at 10.8%) and the number of customers increased in 37 thousand, totaling 2.3 million.
Table 19 | |||||||||
Edesur | Million Ch$ | Thousand US$ | |||||||
6M 08 | 6M 09 | Var 08-09 | Chg % | 6M 09 | |||||
Operating Revenues | 162.778 | 182.538 | 19.760 | 12,1% | 343.271 | ||||
Operating Costs | (81.078) | (87.188) | (6.110) | (7,5%) | (163.962) | ||||
Gross Profit | 81.700 | 95.350 | 13.650 | 16,7% | 179.310 | ||||
Other Costs | (49.155) | (61.877) | (12.722) | (25,9%) | (116.362) | ||||
Gross Operating Income (EBITDA) | 32.545 | 33.473 | 928 | 2,9% | 62.948 | ||||
Depreciation and Amortization | (8.867) | (8.800) | 67 | 0,8% | (16.549) | ||||
Operating Income | 23.678 | 24.673 | 995 | 4,2% | 46.399 | ||||
Figures may differ from those accounted under Argentine GAAP. |
Additional Information
Table 20
Edesur | 6M 08 | 6M 09 | Var 08-09 | Chg % | ||||
Customers (Th) | 2,244 | 2,281 | 37 | 1.7% | ||||
GWh Sold | 8,047 | 7,970 | (77) | (1.0%) | ||||
Clients/Employee | 851 | 861 | 10 | 1.2% | ||||
Energy Losses % | 10.8% | 10.5% | (0.3%) | (2.5%) | ||||
![](https://capedge.com/proxy/6-K/0001292814-09-001796/fp34a.gif)
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BRAZIL
GENERATION
CACHOEIRA
Operating Income from our subsidiary Cachoeira decreased Ch$51,132 million going from Ch$76,298 million in the first semester of 2008 to Ch$25,166 million at June 30, 2009. This drop is an outcome of the drop in market sales prices, which at the preceding year had been very high, as well as lower energy sales which in this semester totaled 1,712 GWh (2,134 GWh in June 2008). The conversion effect on these financial statements from the Brazilian Real to the Chilean Peso, in both periods, produced a drop, in pesos, of 13.8% as of June 2009, versus June 2008.
Table 21 | |||||||||
Cachoeira | Million Ch$ | Thousand US$ | |||||||
6M 08 | 6M 09 | Var 08-09 | Chg % | 6M 09 | |||||
Operating Revenues | 94,787 | 42,622 | (52,165) | (55.0%) | 80,153 | ||||
Operating Costs | (11,247) | (10,587) | 661 | 5.9% | (19,909) | ||||
Gross Profit | 83,540 | 32,036 | (51,504) | (61.7%) | 60,244 | ||||
Other Costs | (3,212) | (3,548) | (336) | (10.5%) | (6,672) | ||||
Gross Operating Income (EBITDA) | 80,328 | 28,488 | (51,840) | (64.5%) | 53,573 | ||||
Depreciation and Amortization | (4,030) | (3,322) | 708 | 17.6% | (6,248) | ||||
Operating Income | 76,298 | 25,166 | (51,132) | (67.0%) | 47,325 | ||||
Figures may differ from those accounted under Brazilian GAAP. |
Additional Information
Table 22
Cachoeira | 6M 08 | 6M 09 | Var 08-09 | Chg % | ||||
GWh Produced | 1,532 | 1,325 | (207) | (13.5%) | ||||
GWh Sold | 2,134 | 1,712 | (421) | (19.8%) | ||||
Market Share | 1.0% | 0.9% | - | (8.3%) | ||||
FORTALEZA(CGTF)
Operating Income amounted Ch$18,544 million, indicating an increase of Ch$5,213 million over the year 2008 when the operating income totaled Ch$13.331 million. This increase is mainly due to lower energy purchasing costs for the period, resulting from the drop in market purchase prices with respect to the same period of the preceding year, and partially offset by the increase in purchase quantities that ranged from 1,272 GWh the previous year to a current 1,558 GWh. Physical sales totaled 1,651 GWh as of June, 2009 (1,338 GWh for 2008). The conversion effect on these financial statements from the Brazilian Real to the Chilean Peso, in both periods, produced a drop, in pesos, of 13.8% as of June 2009, versus June 2008.
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Table 23 | |||||||||
Fortaleza | Million Ch$ | Thousand US$ | |||||||
6M 08 | 6M 09 | Var 08-09 | Chg % | 6M 09 | |||||
Operating Revenues | 61,695 | 62,659 | 964 | 1.6% | 117,833 | ||||
Operating Costs | (40,303) | (35,519) | 4,784 | 11.9% | (66,795) | ||||
Gross Profit | 21,392 | 27,140 | 5,748 | 26.9% | 51,038 | ||||
Other Costs | (4,030) | (4,941) | (911) | (22.6%) | (9,292) | ||||
Gross Operating Income (EBITDA) | 17,361 | 22,199 | 4,837 | 27.9% | 41,745 | ||||
Depreciation and Amortization | (4,030) | (3,655) | 376 | 9.3% | (6,873) | ||||
Operating Income | 13,331 | 18,544 | 5,213 | 39.1% | 34,872 | ||||
Figures may differ from those accounted under Brazilian GAAP. |
Additional Information
Table 24
Fortaleza | 6M 08 | 6M 09 | Var 08-09 | Chg % | ||||
GWh Produced | 81 | 95 | 14 | 17,5% | ||||
GWh Sold | 1.338 | 1.651 | 313 | 23,4% | ||||
Market Share | 0,7% | 0,9% | - | 28,7% | ||||
TRANSMISSION
CIEN
Operating Income as of June 2009 totaled Ch$35,781 million, which is Ch$27,498 million over the June, 2008 figure which was recorded at Ch$8,283 million. During the 2009 period, the company exported energy to Uruguay and Argentina, initiating this activity in the month of February unlike the preceding year when exports to Argentina only started in April. The conversion effect on these financial statements from the Brazilian Real to the Chilean Peso, in both periods, produces a drop, in pesos, of 13.8% as of June 2009, versus June 2008.
Table 25 | |||||||||
Cien | Million Ch$ | Thousand US$ | |||||||
6M 08 | 6M 09 | Var 08-09 | Chg % | 6M 09 | |||||
Operating Revenues | 23,816 | 51,798 | 27,982 | 117.5% | 97,408 | ||||
Operating Costs | (2,538) | (1,212) | 1,326 | 52.2% | (2,280) | ||||
Gross Profit | 21,278 | 50,586 | 29,308 | 137.7% | 95,129 | ||||
Other Costs | (5,145) | (5,340) | (194) | (3.8%) | (10,041) | ||||
Gross Operating Income (EBITDA) | 16,132 | 45,246 | 29,114 | 180.5% | 85,088 | ||||
Depreciation and Amortization | (7,849) | (9,465) | (1,616) | (20.6%) | (17,799) | ||||
Operating Income | 8,283 | 35,781 | 27,498 | 332.0% | 67,289 | ||||
Figures may differ from those accounted under Brazilian GAAP. |
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Additional Information
DISTRIBUTION
AMPLA
Operating Income amounted to Ch$76,273 million which, compared to the same period of the preceding year, represents a drop of 13.1% or Ch$11,464 million. This result is due mainly to a lower energy purchase-sales margin resulting from a lower average sales price, partially offset by a 1.4% increase in physical sales amounting 4,660 GWh over the current period. Energy losses remained stable at 20.6% . The number of Ampla customers increased by 64 thousand, totaling 2.5 million. The conversion effect on these financial statements from the Brazilian Real to the Chilean Peso, in both periods, produced a drop, in pesos, of 13.8% as of June 2009, versus June 2008.
Table 26 | |||||||||
Ampla | Million Ch$ | Thousand US$ | |||||||
6M 08 | 6M 09 | Var 08-09 | Chg % | 6M 09 | |||||
Operating Revenues | 450.156 | 428.004 | (22.152) | (4,9%) | 804.883 | ||||
Operating Costs | (277.162) | (258.920) | 18.242 | 6,6% | (486.911) | ||||
Gross Profit | 172.994 | 169.084 | (3.910) | (2,3%) | 317.971 | ||||
Other Costs | (60.765) | (68.298) | (7.533) | (12,4%) | (128.437) | ||||
Gross Operating Income (EBITDA) | 112.229 | 100.787 | (11.442) | (10,2%) | 189.534 | ||||
Depreciation and Amortization | (24.492) | (24.514) | (22) | (0,1%) | (46.100) | ||||
Operating Income | 87.737 | 76.273 | (11.464) | (13,1%) | 143.435 | ||||
Figures may differ from those accounted under Brazilian GAAP. |
Additional Information
Table 27
Ampla | 6M 08 | 6M 09 | Var 08-09 | Chg % | ||||
Customers (Th) | 2,430 | 2,493 | 64 | 2.6% | ||||
GWh Sold | 4,597 | 4,660 | 62 | 1.4% | ||||
Clients/Employee | 1,783 | 1,953 | 170 | 9.5% | ||||
Energy Losses % | 20.6% | 20.6% | 0.0% | 0.2% | ||||
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COELCE
Operating Income decreased by Ch$5,726 million, amounting to Ch$63,823 million for the current period. This cut in operating income is mainly due to a lower energy purchase-sales margin during the current period and greater toll costs, partially offset by an increase in physical sales of 3.6%, amounting to 3,695 GWh, and a drop in energy losses that went from 12.0% in June, 2008 to 11.6% in June, 2009. The number of customers totaled 2.9 million, representing an increase of 146 thousand in terms of the same period of 2008, or 5.3% . The conversion effect on these financial statements from the Brazilian Real to the Chilean Peso, in both periods, produced a drop, in pesos, of 13.8% as of June 2009, versus June 2008.
Table 28 | |||||||||
Coelce | Million Ch$ | Thousand US$ | |||||||
6M 08 | 6M 09 | Var 08-09 | Chg % | 6M 09 | |||||
Operating Revenues | 305.322 | 297.441 | (7.881) | (2,6%) | 559.352 | ||||
Operating Costs | (173.204) | (170.341) | 2.863 | 1,7% | (320.334) | ||||
Gross Profit | 132.118 | 127.100 | (5.018) | (3,8%) | 239.018 | ||||
Other Costs | (44.041) | (43.507) | 533 | 1,2% | (81.817) | ||||
Gross Operating Income (EBITDA) | 88.078 | 83.593 | (4.485) | (5,1%) | 157.200 | ||||
Depreciation and Amortization | (18.529) | (19.770) | (1.242) | (6,7%) | (37.179) | ||||
Operating Income | 69.549 | 63.823 | (5.726) | (8,2%) | 120.021 | ||||
Figures may differ from those accounted under Brazilian GAAP. |
Additional Information
Table 29
Coelce | 6M 08 | 6M 09 | Var 08-09 | Chg % | ||||
Customers (Th) | 2,756 | 2,903 | 146 | 5.3% | ||||
GWh Sold | 3,567 | 3,695 | 128 | 3.6% | ||||
Clients/Employee | 2,179 | 2,262 | 83 | 3.8% | ||||
Energy Losses % | 12.0% | 11.6% | (0.4%) | (3.0%) | ||||
![](https://capedge.com/proxy/6-K/0001292814-09-001796/fp38b.gif)
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CHILE
GENERATION
ENDESACHILE
Consolidated Income Statement of Endesa Chile
Table 30 | |||||||||
Endesa Chile | Million Ch$ | Thousand US$ | |||||||
6M 08 | 6M 09 | Var 08-09 | Chg % | 6M 09 | |||||
Operating Revenues | 1,200,293 | 1,260,985 | 60,692 | 5.1% | 2,371,341 | ||||
Operating Costs | (687,937) | (530,212) | 157,725 | 22.9% | (997,089) | ||||
Gross Profit | 512,356 | 730,772 | 218,417 | 42.6% | 1,374,252 | ||||
Other Costs | (75,226) | (85,632) | (10,406) | (13.8%) | (161,035) | ||||
Gross Operating Income (EBITDA) | 437,130 | 645,140 | 208,011 | 47.6% | 1,213,217 | ||||
Depreciations and Amortizations | (93,346) | (98,675) | (5,330) | (5.7%) | (185,563) | ||||
Operating Income | 343,784 | 546,465 | 202,681 | 59.0% | 1,027,654 | ||||
Financial Result | (62,964) | (98,750) | (35,786) | (56.8%) | (185,704) | ||||
Interest Income | 14,838 | 17,100 | 2,262 | 15.2% | 32,157 | ||||
Interest Expenses | (95,630) | (99,145) | (3,515) | (3.7%) | (186,446) | ||||
Income for Readjustment Items | (5,053) | 9,657 | 14,710 | 291.1% | 18,160 | ||||
Exchange gains (losses) | 22,881 | (26,362) | (49,244) | (215.2%) | (49,576) | ||||
Positive | 28,046 | 12,762 | (15,284) | (54.5%) | 24,000 | ||||
Negative | (5,165) | (39,125) | (33,960) | (657.5%) | (73,576) | ||||
Net Income from financial Items | (97,178) | (97,178) | - | 0.0% | (183) | ||||
Share of profit of associates | 49,878 | 43,697 | (6,181) | (12.4%) | 82,175 | ||||
Income from Other Investments | 43 | - | (43) | (100.0%) | - | ||||
Income from asset sales | (205) | (16) | 190 | 92.4% | (29) | ||||
Net Income before Taxes | 330,536 | 491,397 | 160,860 | 48.7% | 924,095 | ||||
Income Tax | (68,189) | (83,111) | (14,922) | (21.9%) | (156,294) | ||||
Net Income before gains (losses) from discounted | |||||||||
operations, net from taxes | 262,348 | 408,286 | 145,938 | 55.6% | 767,801 | ||||
NET INCOME | 262,348 | 408,286 | 145,938 | 55.6% | 767,801 | ||||
Parent Company | 201,503 | 331,237 | 129,735 | 64.4% | 622,908 | ||||
Minority Holders | 60,845 | 77,048 | 16,203 | 26.6% | 144,893 | ||||
*Includes generation subsidiaries in Chile, Argentina, Colombia and Peru. |
Chilean Operations
The operating income in Chile amounted Ch$342,138 million, increasing an 87.2% over the Ch$182,785 million figure recorded in the same period of 2008. This growth is mainly explained by the 32.0% drop in operating costs, resulting from lower energy purchases, that amount to Ch$48,942, as well as by lower fuel consumption, in the order of Ch$108,443, product of improved hydrology throughout the period that lead to less petroleum based thermal generation at lower prices than the previous period. Operating Revenues increased by 2.0% due to higher sales volume, particularly with regard to the energy sold on the spot market that increased by 57%. Production rise 5.3% versus the same period of the preceding year, amounting to 10,375 GWh over the first semester of 2009. The EBITDA of the business in Chile, or its gross operating income, totaled Ch$390,904 million as of June, 2009 compared to Ch$227,186 million at June 2008.
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Table 31 | |||||||||
Chilean Operations | Million Ch$ | Thousand US$ | |||||||
6M 08 | 6M 09 | Var 08-09 | Chg % | 6M 09 | |||||
Operating Revenues | 724,409 | 738,907 | 14,498 | 2.0% | 1,389,549 | ||||
Operating Costs | (465,906) | (316,987) | 148,919 | 32.0% | (596,109) | ||||
Gross Profit | 258,503 | 421,920 | 163,416 | 63.2% | 793,440 | ||||
Other Costs | (31,318) | (31,015) | 302 | 1.0% | (58,326) | ||||
Gross Operating Income (EBITDA) | 227,186 | 390,904 | 163,718 | 72.1% | 735,114 | ||||
Depreciation and Amortization | (44,401) | (48,767) | (4,366) | (9.8%) | (91,708) | ||||
Operating Income | 182,785 | 342,138 | 159,353 | 87.2% | 643,406 | ||||
Additional Information
Table 32
Chilean Companies | 6M 08 | 6M 09 | Var 08-09 | Chg % | ||||
GWh Produced | 9,850 | 10,375 | 525 | 5.3% | ||||
GWh Sold | 10,068 | 10,515 | 448 | 4.4% | ||||
Market Share | 38.2% | 39.9% | - | 4.5% | ||||
DISTRIBUTION
CHILECTRA
Our Chilean subsidiary, Chilectra, showed an operating income of Ch$73,858 million representing a decrease of Ch$1,731 million, or a 2.3%, compared to the same period of the previous year. This was mainly due to a 1.2% drop in physical energy sales amounting to 6,175 GWh as of June, 2009 and a lower VAD index as a result of the November 2008 tariff setting.
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Table 33 | |||||||||
Chilectra | Million Ch$ | Thousand US$ | |||||||
6M 08 | 6M 09 | Var 08-09 | Chg % | 6M 09 | |||||
Operating Revenues | 501,828 | 579,638 | 77,810 | 15.5% | 1,090,036 | ||||
Operating Costs | (377,726) | (453,064) | (75,338) | (19.9%) | (852,008) | ||||
Gross Profit | 124,102 | 126,574 | 2,471 | 2.0% | 238,028 | ||||
Other Costs | (38,808) | (41,554) | (2,747) | (7.1%) | (78,145) | ||||
Gross Operating Income (EBITDA) | 85,295 | 85,019 | (276) | (0.3%) | 159,882 | ||||
Depreciation and Amortization | (9,706) | (11,162) | (1,456) | (15.0%) | (20,990) | ||||
Operating Income | 75,589 | 73,858 | (1,731) | (2.3%) | 138,893 | ||||
Financial Result | (5,013) | (4,299) | 713 | 14.2% | (8,085) | ||||
Interest Income | 5,131 | 4,667 | (464) | (9.0%) | 8,776 | ||||
Interest Expense | (9,587) | (9,082) | 506 | 5.3% | (17,078) | ||||
Income for Readjustment items | (2,339) | (583) | 1,756 | 75.1% | (1,096) | ||||
Exchange gains (losses) | 1,783 | 698 | (1,084) | (60.8%) | 1,314 | ||||
Positive | 11,656 | 1,502 | (10,155) | (87.1%) | 2,824 | ||||
Negative | (9,873) | (803) | 9,070 | 91.9% | (1,510) | ||||
Share of profit of associates | 41,358 | 37,586 | (3,773) | (9.1%) | 70,682 | ||||
Income from Other Investments | - | 759 | 759 | - | 1,426 | ||||
Income from assets sales | - | (330) | (330) | - | (620) | ||||
Net Income before Taxes | 111,934 | 107,573 | (4,362) | (3.9%) | 202,296 | ||||
Income Tax | (8,360) | (7,409) | 951 | 11.4% | (13,933) | ||||
Net Income before gains (losses) from | 103,574 | 100,164 | (3,411) | (3.3%) | 188,363 | ||||
discounted operations, net from taxes | |||||||||
NET INCOME | 103,574 | 100,164 | (3,411) | (3.3%) | 188,363 | ||||
Parent Company | 100,748 | 98,890 | (1,858) | (1.8%) | 185,967 | ||||
Minority Holders | 2,827 | 1,274 | (1,553) | (54.9%) | 2,396 | ||||
Additional Information
Table 34
Chilectra | 6M 08 | 6M 09 | Var 08-09 | Chg % | ||||
Customers (Th) | 1,509 | 1,559 | 50 | 3.3% | ||||
GWh Sold | 6,249 | 6,175 | (75) | (1.2%) | ||||
Clients/Employee | 2,056 | 2,141 | 85 | 4.1% | ||||
Energy Losses % | 6.2% | 5.9% | (0.3%) | (4.1%) | ||||
![](https://capedge.com/proxy/6-K/0001292814-09-001796/fp41a.gif)
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COLOMBIA
GENERATION
EMGESA
Operating Income amounted to Ch$128,778 million as of June, 2009, an 18.0% higher than the same period in 2008. This growth in income is accounted for mainly by a 13.1% increase in operating revenues for the first semester of 2009 due to a 6.3% rise in physical sales volume as well as higher average sales prices. These higher average prices during the first semester of 2009 are a product of diminished hydrology in the current period versus the preceding year. Operating Expenditures increased by 7.6% mainly due to greater energy purchasing and a higher level of fuel consumption. Emgesa’s EBITDA, or gross operating income, increased by 14.7% as of June 2009, amounting to Ch$146,504 million. The conversion effect on these financial statements from the Colombian Peso to the Chilean Peso, in both periods, produced a drop, in pesos, of 11.7% as of June 2009, versus June 2008.
Table 35 | |||||||||
Emgesa | Million Ch$ | Thousand US$ | |||||||
6M 08 | 6M 09 | Var 08-09 | Chg % | 6M 09 | |||||
Operating Revenues | 207,355 | 234,471 | 27,116 | 13.1% | 440,933 | ||||
Operating Costs | (65,749) | (72,061) | (6,313) | (9.6%) | (135,515) | ||||
Gross Profit | 141,606 | 162,409 | 20,803 | 14.7% | 305,418 | ||||
Other Costs | (13,876) | (15,905) | (2,029) | (14.6%) | (29,911) | ||||
Gross Operating Income (EBITDA) | 127,730 | 146,504 | 18,774 | 14.7% | 275,507 | ||||
Depreciation and Amortization | (18,633) | (17,726) | 907 | 4.9% | (33,335) | ||||
Operating Income | 109,097 | 128,778 | 19,681 | 18.0% | 242,173 | ||||
* Please notice that these figures could differ from those accounted under Colombian GAAP. |
Additional Information
Table 36
Emgesa | 6M 08 | 6M 09 | Var 08-09 | Chg % | ||||
GWh Produced | 6,004 | 6,634 | 629 | 10.5% | ||||
GWh Sold | 7,891 | 8,391 | 500 | 6.3% | ||||
Market Share | 21.7% | 21.2% | - | (2.7%) | ||||
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DISTRIBUTION
CODENSA
Operating Income amounted to Ch$98,430 million as of June, 2009, representing a decline of Ch$3,811 million or a 3.7% decrease compared to the same period of the previous year. This decline is mainly due to a lower energy purchase-sales margin for the period and also to a 0.5% decrease in energy sales, amounting to 5,812 GWh and a 1.5% increase in energy losses that went from 8.1% as of June, 2008 to 8.2% at the end of the current period. The number of customers increased by 80 thousand, totaling 2.3 million as of June, 2009. The conversion effect on these financial statements from the Colombian Peso to the Chilean Peso, in both periods, produced a drop, in pesos, of 11.7% as of June 2009, versus June 2008.
Table 37 | |||||||||
Codensa | Million Ch$ | Thousand US$ | |||||||
6M 08 | 6M 09 | Var 08-09 | Chg % | 6M 09 | |||||
Operating Revenues | 345.265 | 354.228 | 8.963 | 2,6% | 666.142 | ||||
Operating Costs | (170.977) | (183.895) | (12.918) | (7,6%) | (345.823) | ||||
Gross Profit | 174.288 | 170.333 | (3.955) | (2,3%) | 320.319 | ||||
Other Costs | (43.345) | (43.994) | (649) | (1,5%) | (82.733) | ||||
Gross Operating Income (EBITDA) | 130.943 | 126.339 | (4.604) | (3,5%) | 237.586 | ||||
Depreciation and Amortization | (28.702) | (27.909) | 793 | 2,8% | (52.485) | ||||
Operating Income | 102.241 | 98.430 | (3.811) | (3,7%) | 185.102 | ||||
* Please notice that these figures could differ from those accounted under Colombian GAAP. |
Additional Information
Table 38
Codensa | 6M 08 | 6M 09 | Var 08-09 | Chg % | ||||
Customers (Th) | 2,245 | 2,325 | 80 | 3.6% | ||||
GWh Sold | 5,842 | 5,812 | (30) | (0.5%) | ||||
Clients/Employee | 2,373 | 2,473 | 100 | 4.2% | ||||
Energy Losses % | 8.1% | 8.2% | 0.1% | 1.5% | ||||
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PERU
GENERATION
EDEGEL
Operating Income increases was recorded at Ch$48.029 million, representing an increase of Ch$24,615 million over June 2008, the equivalent of 105.1% . The aforementioned is explained by an increase of 2.4% in energy sales resulting from a higher hydraulic delivery due to increased hydrological levels, while the average prices during the first semester of 2009 remained stable compared with same period of 2008. In turn, operating costs reflected a drop of 25.2% as of June 2009, as a result of lower fuel consumption due to increased hydraulic production. Edegel’s EBITDA amounted to Ch$67,023 million accumulated as of June 2009 compared to an accumulated figure of Ch$41,468 for the period ending June, 2008.
Table 39 | |||||||||
Edegel | Million Ch$ | Thousand US$ | |||||||
6M 08 | 6M 09 | Var 08-09 | Chg % | 6M 09 | |||||
Operating Revenues | 90,063 | 109,726 | 19,663 | 21.8% | 206,346 | ||||
Operating Costs | (36,401) | (27,233) | 9,168 | 25.2% | (51,213) | ||||
Gross Profit | 53,662 | 82,493 | 28,831 | 53.7% | 155,132 | ||||
Other Costs | (12,194) | (15,471) | (3,276) | (26.9%) | (29,093) | ||||
Gross Operating Income (EBITDA) | 41,468 | 67,023 | 25,555 | 61.6% | 126,039 | ||||
Depreciation and Amortization | (18,054) | (18,993) | (939) | (5.2%) | (35,718) | ||||
Operating Income | 23,414 | 48,029 | 24,615 | 105.1% | 90,321 | ||||
* Please notice that these figures could differ from those accounted under Peruvian GAAP. |
Additional Information
Table 40
Edegel | 6M 08 | 6M 09 | Var 08-09 | Chg % | ||||
GWh Produced | 4,119 | 4,301 | 182 | 4.4% | ||||
GWh Sold | 4,194 | 4,295 | 101 | 2.4% | ||||
Market Share | 31.5% | 32.1% | - | 1.8% | ||||
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DISTRIBUTION
EDELNOR
Our subsidiary Edelnor showed an operating income of Ch$32,674 million, Ch$5,100 million higher than the figure for the same period of the preceding year when it amounted to Ch$27,574 million. This is mainly due to greater energy demand and greater purchase-sales margins. The increase in demand, especially the growth in sales to regulated customers, contributed to improve unit sales margin. Physical sales energy increased by 2.1% amounting to 2,836 GWh, for the period. The number of customers grew by 38 thousand clients, totaling 1 million. Energy losses reached to 8.1% versus the 8.2% for the same period of the previous year.
Table 41 | |||||||||
Edelnor | Million Ch$ | Thousand US$ | |||||||
6M 08 | 6M 09 | Var 08-09 | Chg % | 6M 09 | |||||
Operating Revenues | 125.792 | 153.805 | 28.013 | 22,3% | 289.238 | ||||
Operating Costs | (72.629) | (94.182) | (21.552) | (29,7%) | (177.113) | ||||
Gross Profit | 53.163 | 59.624 | 6.460 | 12,2% | 112.125 | ||||
Other Costs | (15.130) | (16.493) | (1.363) | (9,0%) | (31.017) | ||||
Gross Operating Income (EBITDA) | 38.033 | 43.130 | 5.097 | 13,4% | 81.108 | ||||
Depreciation and Amortization | (10.459) | (10.456) | 3 | 0,0% | (19.663) | ||||
Operating Income | 27.574 | 32.674 | 5.100 | 18,5% | 61.446 | ||||
* Please notice that these figures could differ from those accounted under Peruvian GAAP. |
Additional Information
Table 42
Edelnor | 6M 08 | 6M 09 | Var 08-09 | Chg % | ||||
Customers (Th) | 1,006 | 1,044 | 38 | 3.8% | ||||
GWh Sold | 2,777 | 2,836 | 59 | 2.1% | ||||
Clients/Employee | 1,787 | 1,703 | (84) | (4.7%) | ||||
Energy Losses % | 8.2% | 8.1% | (0.1%) | (1.2%) | ||||
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CONFERENCECALLINVITATION
Enersis is pleased to invite you to participate in aConference Call with the management to review the results for the period,on Thursday, July 30th, 2009, 12:00 noon Eastern Time (12:00 noon Chilean Time). There will be a question and answer session following management's comments. Representing ENERSIS will be Mr. Alfredo Ergas, Chief Financial Officer, Mr. Ricardo Alvial, Investment & Risks Director and Ms. Susana Rey, Head of Investor Relations.
To participate, please dial +1 (617) 213-4864 or +1 (888) 713-4211 (toll free USA), approximately 10 minutes prior to the scheduled start time, Passcode ID: 51767592
To access the phone replay, please dial +1 (617) 801-6888 or +1 (888) 286-8010 (toll free USA) Passcode ID: 99811022.
For this Conference Call you can access before to the pre-registration site athttps://www.theconferencingservice.com/prereg/key.process?key=PTA4XCUT9 and make your registration quicker. If not, please connect approximately 15 minutes prior to the scheduled start time. You can also access to the live conference call and its replay through our website athttp://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=83615&eventID=2319356.
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CONTACT INFORMATION
For further information, please contact us:
Susana Rey | ||||||
Head of Investor Relations | ||||||
srm@e.enersis.cl | ||||||
56 (2) 353 4554 | ||||||
Carmen Poblete | Denisse Labarca | Bárbara López | Cristi��n Del Sante | |||
Shares Department | Investor Relations | Investor Relations | Investor Relations | |||
Representative | Representative | Representative | Representative | |||
cpt@e.enersis.cl | dla@e.enersis.cl | bllf@e.enersis.cl | cdb@e.enersis.cl | |||
56 (2) 353 4447 | 56 (2) 353 4492 | 56 (2) 353 4552 | 56 (2) 353 4555 | |||
María Luz Muñoz | ||||||
Investor Relations | ||||||
Assistant | ||||||
mlmr@e.enersis.cl | ||||||
56 (2) 353 4682 |
DISCLAIMER
This Press Release contains statements that could constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this announcement and include statements regarding the intent, belief or current expectations of Enersis and its management with respect to, among other things: (1) Enersis’ business plans; (2) Enersis’ cost-reduction plans; (3) trends affecting Enersis’ financial condition or results of operations, including market trends in the electricity sector in Chile or elsewhere; (4) supervision and regulation of the electricity sector in Chile or elsewhere; and (5) the future effect of any changes in the laws and regulations applicable to Enersis’ or its 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.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
ENERSIS S.A. | |
By: /s/ Ignacio Antoñanzas | |
-------------------------------------------------- | |
Title: Chief Executive Officer |
Date: July 30, 2009