FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of April, 2010
Commission File Number: 001-12440
ENERSIS S.A.
(Translation of Registrant’s Name into English)
Santa Rosa 76
Santiago, Chile
(Address of principal executive office)
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
A Chilean Corporation (Sociedad Anónima Abierta)
PRESS RELEASE 1Q 2010 |
ENERSIS
ANNOUNCES CONSOLIDATED RESULTS
FOR FIRST QUARTER ENDED MARCH 31st, 2010
Highlights for the Period
Summary
Ø During the first quarter of 2010 we have seen an economic recovery positively impacting the demand of electricity. In fact, physical sales for our distribution business showed an increase of 5.2% in our concession areas.
Ø Operating Costs decreased 6.2% amounting to Ch$ 1,086,638 million.
Ø EBITDA reached Ch$ 505,637 million; this is a reduction of 11.5%. The contribution of our two lines of business was as follows:
· Generation and Transmission 52%
· Distribution 48%
Ø Operating Income decreased 17.0%, mainly explained by lower results from our Generation Business, partially offset by an improving contribution from our Distribution Business.
Ø Enersis’ Net Income attributable to the Owners of the Company was Ch$ 91,926 million, corresponding to a decrease of 40%.
Generation and Transmission Business
Consolidated results for Generation and Transmission Business are detailed as follows:
Ø Operating Revenues decreased 19.1%.
Ø Operating Costs decreased 4.8%.
Ø EBITDA decreased 29.9%, amounting to Ch$ 261,779 million.
Ø Operating Income decreased 37.2% amounting to Ch$ 199,838 million. This lower result is mainly explained by reductions in the operating income in Chile, Colombia and Peru, which was partially offset by the increasing operating income from Argentinean and Brazilian generation subsidiaries.
Factors that impacted these results are:
Ø Consolidated physical sales decreased 8.2%, primarily in Argentina, Colombia and Peru.
Ø Hydro generation experienced a 7.8% decrease, mainly attributable to Colombia.
Pg. 1
PRESS RELEASE 1Q 2010 |
In Chile, EBITDA decreased by Ch$ 84,676 million which is explained primarily by the following:
Ø Lower average prices
Ø Lower demand for electricity (lower volume sales by 4%)
In Colombia, EBITDA decreased by Ch$ 19,956 million, which is explained primarily by the following:
Ø Low hydrology explained by “El Niño”.
Ø Less efficient production mix due to higher thermal production
Ø Higher costs of fuel consumption
In Peru, EBITDA decreased by Ch$ 7,612 million, as consequence of:
Ø 9% lower physical sales
Ø Higher costs of energy purchases due to the absence of the non-recurrent provision registered as of March 2009, related to distributors without contracts
In Argentina, EBITDA increased by Ch$ 253 million, as a result of:
Ø Higher hydroelectric production dispatched due to favorable hydrological conditions
Ø Better generation mix.
In Brazil, EBITDA increased by Ch$ 371 million, as a result of:
Ø Better production mix
Ø Higher physical sales and better margins
Distribution Business
Consolidated figures for Distribution Business are detailed as follows:
Ø Operating Revenues increased 1.1%, amounting to Ch$ 1,025,390 million.
Ø Operating Costs decreased 2.2% totaling Ch$ 838,963 million.
Ø EBITDA increased 17.5%, amounting to Ch$ 242,083 million.
Ø Operating income increased by 19.1% amounting to Ch$ 186,426 million, mainly explained by better performance of subsidiaries in Brazil.
Positive factors that influenced these results are the following:
Ø Consolidated physical sales grew in average 5.2%, mainly explained by growth in demand in our subsidiaries in Brazil and Peru.
Ø Addition of 471 thousand new clients. This confirms our sustained natural growth in distribution business. This is equivalent to the incorporation of a new mid size Distribution Company every year.
In Brazil, EBITDA increased Ch$ 48,585 million, as a result of:
Ø Demand recovery
Ø Higher average sales prices
Pg. 2
PRESS RELEASE 1Q 2010 |
In Peru, EBITDA increased Ch$ 106 million, as a result of:
Ø Higher purchase/sales margins
Ø 6% increase in demand
Ø Lower energy losses
In Colombia, EBITDA decreased Ch$ 59 million, as a result of:
Ø Lower purchase/sales margins related to the last year tariff revision process
In Chile, EBITDA decreased Ch$ 8,408 million, which is explained mainly by the following:
Ø Lower purchase/sales margins due to the application of the Subtransmission tariffs over the entire present period
Ø 1% decrease demand, partly affected by the earthquake of February 2010
In Argentina, EBITDA decreased Ch$ 4,132 million, as result of:
Ø Higher fixed operating expenses related to higher inflation
Financial Summary
Ø Successful amendment to default clauses in local bonds of Endesa Chile, eliminating all references to Endesa Chile’s subsidiaries. Additionally, financial covenants of local bonds of Enersis and Endesa Chile were adjusted as a consequence of the adoption of IFRS, thus keeping the financial cushions unchanged.
Ø The average interest rate, a major cost factor, fell from 8.4% to 7.2%, a positive development for the overall Group.
Ø Liquidity, a key consideration in our financial management, continues to be in a very solid position, as shown below:
· Non-committed credit lines: US$ 533 million available in the aggregate for Enersis and Endesa Chile in the local markets.
· Committed credit lines: US$ 650 million in undrawn revolving debt facilities in the international markets and US$ 188 million in the local markets in the aggregate for Enersis and Endesa Chile.
· Cash and cash equivalents amount to US $1,913 million.
Ø Coverage and Protection: In order to mitigate exchange rate and interest rate risks, Enersis has established strict internal rules to protect our cash flows and balance sheet from variations in these variables.
· Exchange rate policy is based on cash flows and it strives to maintain a balance between flows indexed to US dollars and assets and liabilities in such currency. In addition to this policy, we have contracted Cross currency Swaps for a total amount of US$1,165 million and Forwards, for US$135 million.
· In order to reduce volatility on financial results due to changes in market interest rate, we attempt to maintain an adequate balance in debt structures. Additionally, we have contracted Interest Rate Swaps for US$ 405 million.
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.
Pg. 3
PRESS RELEASE 1Q 2010 |
Market Summary
During the first quarter 2010, Chilean stock exchange main index showed a positive performance in line with other international stock markets. The IPSA registered a 5% increase; Bovespa: +3%, Dow Jones Industrials: +4%, S&P 500: +5%, UKX: +5%, FTSE 250: +9%.
Enersis shares’ price in the local market decreased 9% during the period. Factors that influenced this result have been significant movements made by the local pension funds, and also the effect of the earthquake over the Chilean stock market. Consistently with the Chilean peso depreciation of 3% during the first quarter of 2010 and the local price performance, Enersis’ ADRs price fell 13%.
In addition, during this year, Enersis continued to be among the most traded companies at the Santiago Stock Exchange, with an average trading volume of US$ 11.7 million during the first quarter of 2010.
Top Five Daily Average Traded Amount at SSE in 1rst Quarter 2010 | |
Thousand US$ | |
LAN | 20,224 |
SQM | 15,771 |
CENCOSUD | 12,821 |
ENERSIS | 11,716 |
ENDESA CHILE | 11,511 |
Source: Santiago Stock Exchange |
Risk Rating Classification Information
Enersis credit profile has continued to strengthen in 2010, with solid debt coverage ratios, liquidity position and low leverage levels. The positive perspective of the operational and credit profile of Enersis has been reflected in the very recent upgrade made by Fitch Ratings and S&P to our foreign corporate credit rating and senior unsecured debt rating to “BBB+” from “BBB”.
Similarly, Feller Rate raised Enersis local solvency credit rating of the bonds, line of bonds and commercial paper lines to AA from AA-, and ratified the rating assigned to the company’s shares as “First Class Level 1”.
The new ratings are further supported by our diversified asset portfolio, strong credit metrics, adequate debt composition and ample liquidity. Enersis' geographic diversification through Latin America provides a hedge to different regulations and weather conditions and, its operating subsidiaries are financially strong and have leading market positions in the countries where it operates.
The current risk classifications are:
Ø International Ratings:
Enersis | S&P | Moody’s | Fitch |
Corporate | BBB+, Stable | Baa3, Stable | BBB+, Stable |
Ø Domestic Ratings (for securities issued in Chile):
Enersis | Feller Rate | Fitch |
Shares | 1stClass Level 1 | 1stClass Level 1 |
Bonds | AA, Stable | AA, Stable |
Pg. 4
PRESS RELEASE 1Q 2010 |
TABLE OFCONTENTS
Summary | 1 |
Generation and Transmission Businesses | 1 |
Distribution Business | 2 |
Financial Summary | 3 |
Market Summary | 4 |
Risk Rating Classification Information | 4 |
TABLE OF CONTENTS | 1 |
GENERAL INFORMATION | 7 |
SIMPLIFIED ORGANIZATIONAL STRUCTURE | 8 |
MARKET INFORMATION | 9 |
EQUITY MARKET | 9 |
DEBT MARKET | 11 |
CONSOLIDATED INCOME STATEMENT ANALYSIS | 12 |
NET INCOME | 12 |
UNDER IFRS | 12 |
OPERATING INCOME | 13 |
NET FINANCIAL INCOME | 14 |
TAXES | 14 |
CONSOLIDATED BALANCE SHEET ANALYSIS | 15 |
ASSETS UNDER IFRS | 15 |
BOOK VALUE AND ECONOMIC VALUE OF ASSETS | 17 |
LIABILITIES AND SHAREHOLDERS’ EQUITY UNDER IFRS | 18 |
DEBT MATURITY WITH THIRD PARTIES, MILLION CH$ | 20 |
DEBT MATURITY WITH THIRD PARTIES, THOUSAND US$ | 21 |
EVOLUTION OF KEY FINANCIAL RATIOS | 21 |
CONSOLIDATED STATEMENTS OF CASH FLOWS ANALYSIS | 23 |
UNDER IFRS | 23 |
UNDER IFRS | 24 |
CASH FLOW RECEIVED FROM FOREIGN SUBSIDIARIES BY ENERSIS, CHILECTRA AND ENDESA CHILE | 25 |
CAPEX AND DEPRECIATION | 25 |
THE PRINCIPAL RISKS ASSOCIATED TO THE ACTIVITIES OF THE ENERSIS GROUP | 26 |
ARGENTINA | 29 |
GENERATION | 29 |
Endesa Costanera | 29 |
El Chocón | 29 |
DISTRIBUTION | 30 |
Edesur | 30 |
BRAZIL | 31 |
ENDESA BRASIL | 31 |
GENERATION | 31 |
Cachoeira | 31 |
Pg. 5
PRESS RELEASE 1Q 2010 |
Fortaleza (cgtf) | 32 |
TRANSMISSION | 32 |
CIEN | 32 |
DISTRIBUTION | 33 |
Ampla | 33 |
Coelce | 33 |
CHILE | 35 |
GENERATION | 35 |
Endesa Chile | 35 |
DISTRIBUTION | 36 |
Chilectra | 36 |
COLOMBIA | 38 |
GENERATION | 38 |
Emgesa | 38 |
DISTRIBUTION | 38 |
Codensa | 38 |
PERU | 40 |
GENERATION | 40 |
Edegel | 40 |
DISTRIBUTION | 40 |
Edelnor | 40 |
OPERATING INCOME BY SUBSIDIARY | 41 |
CONFERENCE CALL INVITATION | 43 |
CONTACT INFORMATION | 44 |
DISCLAIMER | 44 |
Pg. 6
PRESS RELEASE 1Q 2010 |
General Information
(Santiago, Chile, Friday 23rd, April 2010) Enersis S.A. (NYSE: ENI), announced today its consolidated financial results for quarter ended on March 31st, 2010. All figures are in Chilean pesos (Ch$) under International Financial Reporting Standards (IFRS). Variations refer to the period between March 31st, 2009 and March 31st, 2010.
Figures as of March 31st, 2010 are additionally translated into US$, merely as a convenience translation, using the exchange rate of US$1 = Ch$534.20 as of March 31st, 2010 for the Balance Sheet, and the average exchange rate for the quarter of US$1 = Ch$518.82 for the Income Statement, Cash Flow Statements, Capex and Depreciation values.
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 P&L and Cash Flow Statements compared to the information as of March 31st, 2009.
* 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.
Pg. 7
PRESS RELEASE 1Q 2010 |
Simplified Organizational Structure
Pg. 8
PRESS RELEASE 1Q 2010 |
Market Information
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:
Return for the period: 32.4%
Santiago Stock Exchange (BCS)
The chart below shows the performance of Enersis’ Chilean stock price over the last 12 months compared to the Chilean Selective Stock Index (IPSA):
Pg. 9
PRESS RELEASE 1Q 2010 |
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):
Return for the period: 35.0%
Pg. 10
PRESS RELEASE 1Q 2010 |
Debt Market
Yankee Bonds Price Evolution
The following chart shows the pricing of two of our Yankee Bonds over the last twelve months compared to the Ishares Iboxx Investment Grade Corporate Bond Fund Index:
(*) 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.
Pg. 11
PRESS RELEASE 1Q 2010 |
Consolidated Income Statement Analysis
Net Income
Enersis’ Net Income attributable to the Owners of the Company for the first quarter 2010 was Ch$91,926 million, representing a 39.5% decrease over equal last year period, which was Ch$152,050 million.
Under IFRS
Table 1 | |||||||
CONS. INCOME STATEMENT | Million Ch$ | Thousand US$ | |||||
1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % | 1Q10 | |||
Sales | 1,548,929 | 1,408,888 | (140,041) | (9.0%) | 2,715,575 | ||
Energy sales | 1,420,703 | 1,314,909 | (105,794) | (7.4%) | 2,534,435 | ||
Other sales | 9,385 | 10,733 | 1,348 | 14.4% | 20,688 | ||
Other services | 118,841 | 83,246 | (35,595) | (30.0%) | 160,453 | ||
Other operating income | 73,348 | 63,012 | (10,336) | (14.1%) | 121,453 | ||
Revenues | 1,622,277 | 1,471,900 | (150,377) | (9.3%) | 2,837,028 | ||
Power purchased | (432,007) | (379,229) | 52,778 | 12.2% | (730,949) | ||
Cost of fuel consumed | (181,533) | (153,150) | 28,383 | 15.6% | (295,190) | ||
Transportation expenses | (77,528) | (78,504) | (976) | (1.3%) | (151,314) | ||
Other variable procurements and services | (155,542) | (159,986) | (4,444) | (2.9%) | (308,368) | ||
Procurements and Services | (846,611) | (770,870) | 75,741 | 8.9% | (1,485,821) | ||
Contribution Margin | 775,666 | 701,030 | (74,636) | (9.6%) | 1,351,207 | ||
Work on non-current assets | 7,713 | 7,006 | (707) | (9.2%) | 13,503 | ||
Employee expenses | (88,846) | (84,636) | 4,210 | 4.7% | (163,133) | ||
Other fixed operating expenses | (123,236) | (117,762) | 5,474 | 4.4% | (226,981) | ||
Gross Operating Income (EBITDA) | 571,297 | 505,637 | (65,660) | (11.5%) | 974,596 | ||
Depreciation and amortization | (107,048) | (120,376) | (13,328) | (12.5%) | (232,019) | ||
Operating Income | 464,249 | 385,262 | (78,987) | (17.0%) | 742,577 | ||
Net Financial Income | (84,787) | (83,034) | 1,753 | 2.1% | (160,046) | ||
Financial income | 34,976 | 24,022 | (10,954) | (31.3%) | 46,302 | ||
Financial expenses | (106,730) | (96,882) | 9,848 | 9.2% | (186,736) | ||
Income (Loss) for indexed assets and liabilities | 20,411 | (1,142) | (21,553) | (105.6%) | (2,201) | ||
Foreign currency exchange differences, net | (33,445) | (9,033) | 24,412 | 73.0% | (17,410) | ||
Gains | 12,030 | 23,820 | 11,790 | 98.0% | 45,911 | ||
Losses | (45,475) | (32,852) | 12,623 | 27.8% | (63,321) | ||
Net Income from Related Comp. Cons. By the Prop. | |||||||
Eq. Method | 1,142 | 703 | (439) | (38.4%) | 1,354 | ||
Net Income from other investments | (11) | (130) | (119) | - | (251) | ||
Net Income from sales of assets | 15 | 732 | 717 | - | 1,411 | ||
Net Income Before Taxes | 380,607 | 303,532 | (77,075) | (20.3%) | 585,046 | ||
Income Tax | (71,787) | (96,750) | (24,963) | (34.8%) | (186,483) | ||
NET INCOME | 308,820 | 206,782 | (102,038) | (33.0%) | 398,563 | ||
Net Income Attributable to Owners of theCompany | 152,050 | 91,926 | (60,124) | (39.5%) | 177,183 | ||
Net Income Attributable to Minority Interest | 156,771 | 114,856 | (41,915) | (26.7%) | 221,380 | ||
Ch$ /share | US$ / ADR | ||||||
1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % | 1Q10 | |||
Earning per share | 4.7 | 2.8 | (1.8) | (39.5%) | 0.3 |
Pg. 12
PRESS RELEASE 1Q 2010 |
Operating Income
Operating Income for the first quarter of 2010 decreased by Ch$ 78,987 million, from Ch$ 464,249 million to Ch$ 385,262 million as of March 31st 2010, representing a decrease of 17.0%. Likewise, the EBITDA decreased by Ch$ 65,660 million or 11.5%, amounting to Ch$ 505,637 million; the above is mainly due to the decrease in results from our generation subsidiaries in Chile and Colombia, partially offset by better results from our distribution subsidiaries in Brazil.
Operating Revenues and costs, broken down by business line for the quarters ending on March 31st, 2009 and 2010 are:
Table 2 | |||||||||||||
Operating Income by Businesses | Generation and Transmission | Distribution | |||||||||||
Million Ch$ | Chg% | Thousand US$ | Million Ch$ | Chg% | Thousand US$ | ||||||||
1Q09 | 1Q10 | 1Q10 | 1Q09 | 1Q10 | 1Q10 | ||||||||
Operating Revenues | 720,978 | 583,315 | -19.1% | 1,124,317 | 1,014,086 | 1,025,390 | 1.1% | 1,976,397 | |||||
Operating Costs | (402,666) | (383,478) | 4.8% | (739,138) | (857,565) | (838,963) | 2.2% | (1,617,068) | |||||
Operating Income | 318,312 | 199,838 | -37.2% | 385,180 | 156,521 | 186,426 | 19.1% | 359,329 | |||||
Operating Income by Businesses | Eliminations and Others | Consolidated | |||||||||||
Million Ch$ | Chg% | Thousand US$ | Million Ch$ | Chg% | Thousand US$ | ||||||||
1Q09 | 1Q10 | 1Q10 | 1Q09 | 1Q10 | 1Q10 | ||||||||
Operating Revenues | (112,787) | (136,805) | 21.3% | (263,686) | 1,622,277 | 1,471,900 | -9.3% | 2,837,028 | |||||
Operating Costs | 102,203 | 135,803 | -32.9% | 261,754 | (1,158,028) | (1,086,638) | 6.2% | (2,094,451) | |||||
Operating Income | (10,584) | (1,002) | -90.5% | (1,932) | 464,249 | 385,262 | -17.0% | 742,577 |
Generation and Transmission Businesses reached an Operating Income of Ch$ 199,838 million, representing a Ch$ 118,474 million drop from the same period last year or the equivalent to a 37.2% decrease. Physical sales decreased 8.2% amounting to 15,095 GWh for the first quarter 2010 (16,438 GWh as of the first quarter 2009).
Operating income for Generation and Transmission business line, by country in the following table:
Table 3 | ||||||||||||||||||||
Generation & Transmission | Chile | Argentina | Brazil | |||||||||||||||||
Million Ch$ | Chg% | Thousand US$ | Million Ch$ | Chg% | Thousand US$ | Million Ch$ | Chg% | Thousand US$ | ||||||||||||
1Q09 | 1Q10 | 1Q10 | 1Q09 | 1Q10 | 1Q10 | 1Q09 | 1Q10 | 1Q10 | ||||||||||||
Operating Revenues | 410,375 | 283,400 | -30.9% | 546,243 | 68,828 | 62,614 | -9.0% | 120,685 | 67,338 | 59,453 | -11.7% | 114,593 | ||||||||
% of consolidated | 57% | 49% | 49% | 10% | 11% | 11% | 9% | 10% | 10% | |||||||||||
Operating Costs | (228,550) | (188,684) | 17.4% | (363,682) | (54,143) | (46,417) | 14.3% | (89,466) | (37,884) | (34,367) | 9.3% | (66,240) | ||||||||
% of consolidated | 57% | 49% | 49% | 13% | 12% | 12% | 9% | 9% | 9% | |||||||||||
Operating Income | 181,825 | 94,716 | -47.9% | 182,561 | 14,685 | 16,197 | 10.3% | 31,219 | 29,454 | 25,087 | -14.8% | 48,353 | ||||||||
Generation & Transmission | Peru | Colombia | Consolidated | |||||||||||||||||
Million Ch$ | Chg% | Thousand US$ | Million Ch$ | Chg% | Thousand US$ | Million Ch$ | Chg% | Thousand US$ | ||||||||||||
1Q09 | 1Q10 | 1Q10 | 1Q09 | 1Q10 | 1Q10 | 1Q09 | 1Q10 | 1Q10 | ||||||||||||
Operating Revenues | 56,063 | 54,935 | -2.0% | 105,885 | 118,591 | 123,136 | 3.8% | 237,340 | 720,978 | 583,315 | -19.1% | 1,124,317 | ||||||||
% of consolidated | 8% | 9% | 9% | 16% | 21% | 21% | ||||||||||||||
Operating Costs | (28,747) | (35,222) | -22.5% | (67,889) | (53,559) | (79,011) | -47.5% | (152,290) | (402,666) | (383,478) | 4.8% | (739,138) | ||||||||
% of consolidated | 7% | 9% | 9% | 13% | 21% | 21% | ||||||||||||||
Operating Income | 27,315 | 19,713 | -27.8% | 37,996 | 65,032 | 44,126 | -32.1% | 85,051 | 318,312 | 199,838 | -37.2% | 385,180 |
Pg. 13
PRESS RELEASE 1Q 2010 |
Distribution businessincreased its operating income by Ch$29,905 million, equivalent to 19.1% and totaling Ch$186,426 million.
Physical sales amounted to 16,649 GWh, representing an increase of 825 GWh, equivalent to 5.2% variation. Our customers increased by 471 thousand, amounting 12,986 thousand customer base.
Operating income for Distribution line of business, detailed by country, as follows:
Table 4 | ||||||||||||||||||||
Distribution | Chile | Argentina | Brazil | |||||||||||||||||
Million Ch$ | Chg% | Thousand US$ | Million Ch$ | Chg% | Thousand US$ | Million Ch$ | Chg% | Thousand US$ | ||||||||||||
1Q09 | 1Q10 | 1Q10 | 1Q09 | 1Q10 | 1Q10 | 1Q09 | 1Q10 | 1Q10 | ||||||||||||
Operating Revenues | 282,155 | 211,580 | -25.0% | 407,812 | 94,033 | 75,888 | -19.3% | 146,271 | 393,272 | 475,766 | 21.0% | 917,020 | ||||||||
% of consolidated | 28% | 21% | 21% | 9% | 7% | 7% | 39% | 46% | 46% | |||||||||||
Operating Costs | (249,794) | (188,254) | 24.6% | (362,851) | (83,997) | (69,059) | 17.8% | (133,108) | (336,643) | (375,315) | -11.5% | (723,405) | ||||||||
% of consolidated | 29% | 22% | 22% | 10% | 8% | 8% | 39% | 45% | 45% | |||||||||||
Operating Income | 32,361 | 23,327 | -27.9% | 44,961 | 10,036 | 6,829 | -32.0% | 13,163 | 56,628 | 100,451 | 77.4% | 193,615 | ||||||||
Distribution | Peru | Colombia | Consolidated | |||||||||||||||||
Million Ch$ | Chg% | Thousand US$ | Million Ch$ | Chg% | Thousand US$ | Million Ch$ | Chg% | Thousand US$ | ||||||||||||
1Q09 | 1Q10 | 1Q10 | 1Q09 | 1Q10 | 1Q10 | 1Q09 | 1Q10 | 1Q10 | ||||||||||||
Operating Revenues | 76,238 | 75,536 | -0.9% | 145,593 | 168,388 | 186,619 | 10.8% | 359,701 | 1,014,086 | 1,025,390 | 1.1% | 1,976,397 | ||||||||
% of consolidated | 8% | 7% | 7% | 17% | 18% | 18% | 100% | 100% | 100% | |||||||||||
Operating Costs | (60,067) | (59,233) | 1.4% | (114,170) | (127,064) | (147,103) | -15.8% | (283,534) | (857,565) | (838,963) | 2.2% | (1,617,068) | ||||||||
% of consolidated | 7% | 7% | 7% | 15% | 18% | 18% | 100% | 100% | 100% | |||||||||||
Operating Income | 16,171 | 16,303 | 0.8% | 31,423 | 41,325 | 39,517 | -4.4% | 76,167 | 156,521 | 186,426 | 19.1% | 359,329 |
Net Financial Income
The company’s net financial income for the first quarter of 2010 was negative Ch$ 83,034 million, representing a 2.1% improvement over the same period last year. This variation is mainly explained by the positive change in Foreign currency exchange differences which improved in Ch$ 24,412 million mainly due to the relative Chilean peso depreciation relative to the Brazilian real and Colombian peso. Additionally, interest expenses decreased Ch$ 9,848 million, primarily due a lower average debt and lower interest rates during the period.
The above mentioned positive effects were partially offset by the negative change in the result for indexation in assets and liabilities which decreased Ch$ 21,553 million due to the effect of the change on the Inflation Index Unit – UF (Unidades de Fomento) over Chile’s UF denominated debt. During the present period, the UF increased 0.3% compared to a decrease of 2.7% experienced during equal period last year.
Taxes
Income Tax increased Ch$ 24,963 million. The latter is mostly explained by increases in: Endesa Chile Ch$ 22,056 million, Enersis Ch$ 11,692 million, Ampla Ch$ 10,864 million, Codensa Ch$ 4,266 million, Chilectra Ch$ 4,217, Coelce Ch$1,784, and Chocón Ch$ 1,693 million. This effect was partially offset by lower income taxes in Gas Atacama Ch$ 14,522 million, Emgesa Ch$ 3,326 million, Pehuenche Ch$ 3,130 million and Edegel Ch$ 2,730 million.
Pg. 14
PRESS RELEASE 1Q 2010 |
Consolidated Balance Sheet Analysis
Assets Under IFRS
Table 5 | ||||||
ASSETS | Million Ch$ | Thousand US$ | ||||
FY2009 | 1Q10 | Var FY2009-1Q10 | Chg % | 1Q10 | ||
CURRENT ASSETS | ||||||
Cash and cash equivalents | 1,134,901 | 1,022,163 | (112,738) | (9.9%) | 1,913,446 | |
Other current financial assets | 1,536 | 1,088 | (448) | (29.2%) | 2,036 | |
Other current non-financial assets | 38,502 | 33,778 | (4,724) | (12.3%) | 63,231 | |
Trade accounts receivable and other | ||||||
receivables, net | 1,138,647 | 1,151,321 | 12,674 | 1.1% | 2,155,224 | |
Accounts receivable from related companies | 19,014 | 21,329 | 2,315 | 12.2% | 39,927 | |
Inventories | 56,319 | 57,764 | 1,445 | 2.6% | 108,132 | |
Current tax receivable | 112,176 | 152,704 | 40,528 | 36.1% | 285,855 | |
Non-current assets (or disposal groups) | ||||||
classified as held for sale | 70,361 | 57,134 | (13,227) | (18.8%) | 106,952 | |
Total currrent assets | 2,571,456 | 2,497,280 | (74,176) | (2.9%) | 4,674,804 | |
NON CURRENT ASSETS | ||||||
Other non-current financial assets | 30,497 | 37,766 | 7,270 | 23.8% | 70,697 | |
Other non-current non-financial assets | 94,255 | 96,076 | 1,821 | 1.9% | 179,851 | |
Non-current receivables | 194,977 | 210,502 | 15,525 | 8.0% | 394,051 | |
Investments in associates accounted for | ||||||
using the equity method | 21,281 | 19,631 | (1,651) | (7.8%) | 36,748 | |
Intangibles assets apart from increased value | 1,446,122 | 1,457,821 | 11,699 | 0.8% | 2,728,980 | |
Increased value | 1,501,352 | 1,517,680 | 16,328 | 1.1% | 2,841,034 | |
Property, plant and equipment | 6,864,071 | 7,160,475 | 296,404 | 4.3% | 13,404,108 | |
Investment properties | 31,232 | 30,908 | (324) | (1.0%) | 57,858 | |
Deferred tax assets | 454,897 | 475,838 | 20,942 | 4.6% | 890,749 | |
Total non current assets | 10,638,685 | 11,006,698 | 368,013 | 3.5% | 20,604,076 | |
TOTAL ASSETS | 13,210,140 | 13,503,978 | 293,838 | 2.2% | 25,278,880 |
Total Assets increased Ch$293,836 million, mainly due to:
Ø Increase in Non-Current Assets in Ch$ 368,013 million equal to 3.5%, mainly due to:
v Increase in Property, plant and equipment, net by Ch$ 296.404 million due to conversion effect to Chilean pesos from subsidiaries statements, in approximately Ch$ 322.196 million, adittions for the period in approximately Ch$ 67.543 million, parcially compensated by depreciation during the period for Ch$ 92.230 million.
v Increase in Deferred tax assets by Ch$ 20,942 million mainly due to conversion effect to the Chilean peso during the period.
v Increase in Increased value (commercial funds) by Ch$ 16,328 million as a result of the conversion effect coming from those subsidiaries whose functional currency is different from the Chilean peso.
v Increase in Intangible Assets, different of those originated in Increased value, by Ch$ 11,699 million, mainly due to increases in intangible assets in Ampla and Coelce concessions for Ch$ 37,839 million, partially compensated by the Ch$ 173,493 million in amortizations for the period.
Pg. 15
PRESS RELEASE 1Q 2010 |
The above is partially offset by:
Ø Ch$ 74,176 million decrease in Current Assets, equal to 2.9%, as a result of:
v Ch$ 112,738 million decrease in cash and cash equivalent, primarily explained by decreases in times deposits in Endesa Chile for Ch$ 189,631 million used to pay debt, Codensa for Ch$ 89,658 million used to pay dividends and Ampla for Ch$ 18,515 million used to pay debt. This decrease in cash and cash equivalent was partially offset by increases in time deposits in Emgesa for Ch$ 44,900 million, Chilectra for Ch$ 42,536 million, Coelce for Ch$ 26,994 million, CGTF for Ch$ 22,266 million, Cachoeira Dourada for Ch$ 16,548 million, Enersis for & nbsp;Ch$ 16,721 million and Edesur for Ch$ 8,182 million.
v Decrease in Non-current assets (or disposal groups) classified as held for sale by Ch$ 13,227 million (CAM).
v Increase in Current tax receivable by Ch$ 40,528 million, which mainly corresponds to a higher Value Added Tax (“IVA”) receivable for Ch$ 22,101 million and increases in payments with charge to income taxes for Ch$ 14,675 million.
v Increase in Trade accounts receivable and other receivables for Ch$ 12,674 million, primarily due to an increase in trade account receivable in Ampla for Ch$ 11,679 million, Edesur in Ch$ 10,505 million, Chocón in Ch$ 9.560 million, Codensa in Ch$ 9,544 million, Coelce in Ch$ 5,114 million, Gas Atacama in Ch$ 4,987 million, Synapsis Ch$ 4,483 million, San Isidro Ch$ 3,857 million, Celta Ch$ 3,535 million, and Cachoeira Dourada por Ch$ 1,905 million. This effect is parcially compensated by decreases in Endesa Chile Ch$ 46,550 million and in Chilectra in Ch$ 25,723 million.
Pg. 16
PRESS RELEASE 1Q 2010 |
Book Value and Economic Value of Assets
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. Instead, 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 fr om 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.
Pg. 17
PRESS RELEASE 1Q 2010 |
Liabilities and Shareholders’ Equity Under IFRS
Table 6 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | Million Ch$ | Thousand US$ | ||||
FY2009 | 1Q10 | Var FY2009-1Q10 | Chg % | 1Q10 | ||
CURRENT LIABILITIES | ||||||
Other current financial liabilities | 730,650 | 594,344 | (136,306) | (18.7%) | 1,112,587 | |
Trade accounts payable and other payables | 976,506 | 1,014,370 | 37,864 | 3.9% | 1,898,859 | |
Accounts payable to related companies | 111,956 | 161,087 | 49,132 | 43.9% | 301,549 | |
Provisions | 100,024 | 94,814 | (5,210) | (5.2%) | 177,488 | |
Current tax payable | 185,286 | 242,105 | 56,820 | 30.7% | 453,211 | |
Current post-employment benefit obligations | 4,915 | 6,152 | 1,237 | 25.2% | 11,516 | |
Other current non-financial liabilities | 35,400 | 37,144 | 1,744 | 4.9% | 69,532 | |
Liabilities (or disposal groups) classified as held for | 50,650 | 40,179 | (10,471) | (20.7%) | 75,214 | |
sale | ||||||
Total current liabilities | 2,195,388 | 2,190,197 | (5,191) | (0.2%) | 4,099,956 | |
NON-CURRENT LIABILITIES | ||||||
Other non-current financial liabilities | 3,530,837 | 3,641,415 | 110,577 | 3.1% | 6,816,576 | |
Trade accounts payable | 58,728 | 61,045 | 2,318 | 3.9% | 114,274 | |
Accounts payable to related companies | 3,557 | 3,667 | 110 | 3.1% | 6,864 | |
Provisions | 250,287 | 257,292 | 7,005 | 2.8% | 481,639 | |
Deferred tax liabilities | 573,049 | 595,915 | 22,866 | 4.0% | 1,115,528 | |
Non-current post-employment benefit obligations | 182,689 | 189,780 | 7,091 | 3.9% | 355,260 | |
Other non-current non-financial liabilities | 38,602 | 39,291 | 689 | 1.8% | 73,551 | |
Total non-current liabilities | 4,637,749 | 4,788,404 | 150,655 | 3.2% | 8,963,691 | |
SHAREHOLDERS´ EQUITY | ||||||
Issued share capital | 2,824,883 | 2,824,883 | - | 0.0% | 5,288,062 | |
Retained earnings (losses) | 1,817,613 | 1,882,297 | 64,684 | 3.6% | 3,523,581 | |
Issuances premium | 158,760 | 158,760 | - | 0.0% | 297,191 | |
Shares owned by the parent's company | - | - | - | - | - | |
Other equity participations | (1,291,100) | (1,291,100) | - | 0.0% | (2,416,885) | |
Reserves | 8,324 | 42,978 | 34,654 | 416.3% | 80,453 | |
Total shareholders' equity attributable to | ||||||
the Owners of the Company | 3,518,480 | 3,617,817 | 99,338 | 2.8% | 6,772,402 | |
Minority Interest | 2,858,524 | 2,907,560 | 49,036 | 1.7% | 5,442,830 | |
Total shareholders' equity | 6,377,004 | 6,525,377 | 148,373 | 2.3% | 12,215,232 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 13,210,140 | 13,503,978 | 293,838 | 2.2% | 25,278,880 |
Pg. 18
PRESS RELEASE 1Q 2010 |
The company’sTotal Liabilities increased by Ch$ 293,838 million from the period ended on December 31st, 2009, largely due to the increase in non-current liabilities in Ch$ 150,655 million plus the Ch$ 148,373 million increase in Shareholders’ Equity. The detail is explained as follows:
ØNon Current Liabilities increased by Ch$ 150,655 million, equal to 3.2%, mainly due to:
v Other non financial assets (financial debt and derivatives) increased in Ch$ 110,577 million, mainly due to Emgesa for Ch$ 45,153 million because of the conversion effect, Codensa Ch$ 37,673 million, as a result of Bonds issuance and conversion effect, Enersis Ch$ 16,701 million due to conversion effect, Edegel Ch$ 10,669 million due to conversion effect, Coelce Ch$ 6,170 million and the Mark to Market (MTM) of derivatives for hedge in Ch$ 19,922 million, partially compensated by decreases in Endesa Ch$ 14,498 million due to loan payments in dollars and exchange rate effect. Ampla Ch$ 11,422 mi llion, due to loan payments and Costanera Ch$ 9,339 million for transfer to the short term.
v Increase in deferred tax liabilities in Ch$ 22,866 million, mainly due to conversion effect of foreign subsidiaries by Ch$ 23,030 million.
v Increase in post-employment benefit obligations in Ch$ 7,091 million, mainly due to conversion effect during the period.
Ø Decrease inCurrent Liabilities of Ch$ 5,190 million, a 0.2% drop, due to:
v Decrease in Other current liabilities (financial debt and derivatives) for Ch$ 136,306 million, mainly in Endesa Chile for Ch$ 131,636 million, due to bank loans payments and in Ampla for Ch$ 43.850 million due to bond payments, partially compensated by increases in Costanera for Ch$ 10,748 million for transfer from the long term to the short, in Edelnor for Ch$ 9,107 million, Ampla for Ch$ 5,591 million and in Cien Ch$5,244 million for loans.
Partially offset by:
v Increase in Current tax payable for Ch$ 56,820 million which mainly corresponds to Edesur Ch$ 13,814 million, CGTF for Ch$ 13,312 million, Ampla Ch$ 13,136 million, Codensa Ch$ 11,342 million and in Edelnor Ch$ 4,757 million.
v Increase in accounts payable to related companies in Ch$ 49,132 million which mainly corresponds to Emgesa and Enersis respectively for Ch$ 28,612 and Ch$ 16,718 million, for dividend payable to Endesa Latinoamérica.
Total Shareholders’ equityincreased by Ch$ 148,373 million with respect to December of 2009. The Total shareholders' equity attributable to the Owners of the Company increased in Ch$ 99,338 million which is explained mainly by the Ch$ 126,915 million of net income for the period less the provision of minimum dividend of 30%, equivalent to Ch$ 27,577 million.
The minorities participation increased in Ch$ 49,036 million, as a consequence of the net effects in the results, the conversion net effects, minimum dividends, reserves and derivatives hedge.
Pg. 19
PRESS RELEASE 1Q 2010 |
Debt Maturity with Third Parties, Million Ch$
Table 7 | ||||||||
TOTAL | ||||||||
Million Ch$ | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | Balance | |
Chile | 9,575 | 112,851 | 22,152 | 224,096 | 389,334 | 2,598 | 903,872 | 1,664,478 |
Enersis | 1,965 | 2,078 | 2,197 | 2,323 | 279,186 | 2,598 | 227,345 | 517,693 |
Chilectra | 12 | - | - | - | - | - | - | 12 |
Other (*) | 137 | 829 | - | - | - | - | - | 967 |
Endesa Chile (**) | 7,461 | 109,944 | 19,955 | 221,773 | 110,148 | - | 676,526 | 1,145,807 |
Argentina | 60,014 | 74,853 | 36,308 | 13,614 | 15,295 | - | - | 200,084 |
Edesur | 10,847 | 17,849 | 15,435 | 399 | 258 | - | - | 44,787 |
Costanera | 35,629 | 27,093 | 14,241 | 13,215 | 15,037 | - | - | 105,216 |
Chocon | 13,391 | 29,911 | 6,632 | - | - | - | - | 49,934 |
Hidroinvest | 147 | - | - | - | - | - | - | 147 |
CTM | - | - | - | - | - | - | - | - |
Tesa | - | - | - | - | - | - | - | - |
Peru | 40,209 | 51,015 | 101,829 | 75,562 | 52,069 | - | 102,470 | 423,155 |
Edelnor | 10,004 | 19,693 | 32,221 | 49,470 | 27,729 | - | 37,640 | 176,758 |
Edegel | 30,205 | 31,323 | 69,608 | 26,092 | 24,339 | - | 64,830 | 246,397 |
Brazil | 188,194 | 265,601 | 281,741 | 105,142 | 62,790 | 9,393 | 36,275 | 949,137 |
Endesa Brasil | 56,557 | - | - | - | - | - | - | 56,557 |
Coelce | 33,775 | 75,995 | 64,701 | 48,598 | 39,945 | - | 9,700 | 272,714 |
Ampla | 31,063 | 122,243 | 150,463 | 49,438 | 14,197 | - | 15,975 | 383,380 |
Cachoeira | - | - | - | - | - | - | - | - |
Cien | 61,231 | 61,186 | 59,951 | - | - | - | - | 182,369 |
Fortaleza | 5,569 | 6,177 | 6,625 | 7,106 | 8,648 | 9,393 | 10,600 | 54,118 |
Colombia | 74,180 | 121,335 | 93,408 | 66,459 | 108,005 | 72,335 | 357,809 | 893,531 |
Codensa | 30,058 | 55,152 | 9,299 | 66,459 | 68,940 | 3,395 | 166,612 | 399,915 |
Emgesa | 44,122 | 66,183 | 84,110 | - | 39,064 | 68,940 | 191,197 | 493,616 |
TOTAL | 372,173 | 625,656 | 535,439 | 484,873 | 627,492 | 84,326 | 1,400,426 | 4,130,385 |
(*) Includes: Endesa Chile, Pangue, Pehuenche, San Isidro, Celta and Túnel El Melón. |
Pg. 20
PRESS RELEASE 1Q 2010 |
Debt Maturity with Third Parties, Thousand US$
Table 7.1 | ||||||||
TOTAL | ||||||||
Thousand US$ | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | Balance | |
Chile | 17,925 | 211,253 | 41,467 | 419,499 | 728,816 | 4,864 | 1,692,010 | 3,115,834 |
Enersis | 3,678 | 3,889 | 4,113 | 4,349 | 522,624 | 4,864 | 425,581 | 969,099 |
Chilectra | 23 | - | - | - | - | - | - | 23 |
Other | 257 | 1,553 | - | - | - | - | - | 1,810 |
Endesa Chile (*) | 13,967 | 205,811 | 37,354 | 415,150 | 206,192 | - | 1,266,429 | 2,144,902 |
Argentina | 112,343 | 140,122 | 67,967 | 25,485 | 28,632 | - | - | 374,549 |
Edesur | 20,304 | 33,412 | 28,894 | 747 | 483 | - | - | 83,840 |
Costanera | 66,697 | 50,717 | 26,659 | 24,738 | 28,149 | - | - | 196,960 |
Chocon | 25,067 | 55,993 | 12,414 | - | - | - | - | 93,474 |
Hidroinvest | 275 | - | - | - | - | - | - | 275 |
CTM | - | - | - | - | - | - | - | - |
Tesa | - | - | - | - | - | - | - | - |
Peru | 75,270 | 95,499 | 190,620 | 141,449 | 97,470 | - | 191,820 | 792,129 |
Edelnor | 18,728 | 36,864 | 60,317 | 92,606 | 51,908 | - | 70,461 | 330,883 |
Edegel | 56,542 | 58,635 | 130,304 | 48,844 | 45,562 | - | 121,359 | 461,245 |
Brazil | 352,292 | 497,195 | 527,408 | 196,821 | 117,540 | 17,582 | 67,906 | 1,776,745 |
Endesa Brasil | 105,871 | - | - | - | - | - | - | 105,871 |
Coelce | 63,225 | 142,259 | 121,118 | 90,974 | 74,776 | - | 18,158 | 510,510 |
Ampla | 58,149 | 228,834 | 281,661 | 92,546 | 26,576 | - | 29,905 | 717,671 |
Cachoeira | - | - | - | - | - | - | - | - |
Cien | 114,622 | 114,538 | 112,226 | - | - | - | - | 341,387 |
Fortaleza | 10,424 | 11,564 | 12,402 | 13,302 | 16,188 | 17,582 | 19,843 | 101,306 |
Colombia | 138,862 | 227,134 | 174,857 | 124,408 | 202,180 | 135,409 | 669,803 | 1,672,653 |
Codensa | 56,267 | 103,243 | 17,407 | 124,408 | 129,054 | 6,355 | 311,891 | 748,624 |
Emgesa | 82,594 | 123,891 | 157,450 | - | 73,127 | 129,054 | 357,912 | 924,028 |
TOTAL | 696,692 | 1,171,202 | 1,002,319 | 907,662 | 1,174,639 | 157,855 | 2,621,539 | 7,731,908 |
(*) Includes: Endesa Chile, Pangue, Pehuenche, San Isidro, Celta and Túnel El Melón. |
Evolution Of Key Financial Ratios
Table 8 | |||||
Indicator | Unit | FY2009 | 1Q10 | Var FY2009-1Q10 | Chg % |
Liquidity | Times | 1.17 | 1.14 | (0.03) | (2.6%) |
Acid ratio test * | Times | 1.15 | 1.11 | (0.04) | (3.5%) |
Working capital | million Ch$ | 376,068 | 307,083 | (68,985) | (18.3%) |
Working capital | th. US$ | 703,984 | 574,847 | (129,136) | (18.3%) |
Leverage ** | Times | 1.07 | 1.07 | (0.00) | 0.0% |
Short-term debt | % | 32.0 | 31.0 | (1.0) | (3.1%) |
Long-term debt | % | 68.0 | 69.0 | 1.0 | 1.5% |
* Current assets net of inventories and prepaid expenses | |||||
** Using the ratio = Total debt / (equity + minority interest) |
Indicator | Unit | 1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % |
Financial Expenses Coverage*** | Times | 4.77 | 4.72 | (0.05) | (1.0%) |
Op.Income / Op.Rev. | % | 28.6 | 26.2 | (2.4) | (8.5%) |
ROE | % | 20.2 | 10.2 | (10.0) | (49.7%) |
ROA | % | 9.5 | 6.1 | (3.4) | (35.7%) |
***EBITDA/Financial Costs |
Liquidity index as of March, 2010 was 1.14, showing a decrease of 0.03 times, equivalent to 2.6% with respect to December 2009. This situation reflects a persistent strong liquidity position, maintaining its bank borrowings and financing its investments with its cash surpluses and having a satisfactory debt maturity pattern.
Leverage ratio was 1.07, maintaining the same level registered as of December 31st, 2009.
Pg. 21
PRESS RELEASE 1Q 2010 |
Financial Expenses Coverage reached 4.72 times, a decrease of 0.05 times or 1.1% drop from the ratio registered on equal period the precedent year. The aforementioned is the result of a significant increase in EBITDA generation and the positive conversion effect of exchange rates variation.
Operating Income over Operating Revenues profitability decreased 8.5%, reaching a 26.2% as of March, 2010.
The annualROE of the Parent Company reached 10.2%, a decrease of 10.0 pp. from the registered as of March 2009. This decrease is derived from the lower results for the period.
AnnualROA reached 6.1% in March 2010, a decrease of 3.4 pp. from the registered as of March 2009, reflecting the decrease in the present quarter’s results plus the increase in Total Assets.
Pg. 22
PRESS RELEASE 1Q 2010 |
Consolidated Statements of Cash Flows Analysis
Under IFRS
Table 9 | ||||||
CASH FLOW | Million Ch$ | Thousand US$ | ||||
1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % | 1Q210 | ||
CASH FLOWS PROVIDED BY (USED IN) OPERATIONS | ||||||
Net income (loss) for the year | 308,820 | 206,782 | (102,038) | (33.0%) | 398,563 | |
Adjustments to Reconcile to Operating Income | 123,016 | 170,050 | 47,034 | 38.2% | 327,764 | |
Adjustments to Reconcile to Operating Income | 1,393 | - | (1,393) | (100.0%) | - | |
Financial expenses | 86,318 | 98,024 | 11,706 | 13.6% | 188,938 | |
Financial income | (34,976) | (24,022) | 10,954 | 31.3% | (46,302) | |
Dividend income | - | - | - | - | - | |
Income tax | 71,787 | 96,750 | 24,963 | 34.8% | 186,483 | |
Share of the (profit) loss of associates accounted for using the equity method, net of cash distributions received | (1,142) | (703) | 439 | 38.4% | (1,354) | |
Other (Increases) decreases to Reconcile to Operating Income | (365) | - | 365 | 100.0% | - | |
Operating Income | 431,836 | 376,831 | (55,005) | (12.7%) | 726,327 | |
Non monetary adjustments: | - | - | ||||
Depreciation | 85,474 | 92,230 | 6,756 | 7.9% | 177,769 | |
Amortization of intangibles | 21,544 | 28,146 | 6,602 | 30.6% | 54,250 | |
(Reversal of) Impairment losses | 30 | - | (30) | (100.0%) | - | |
Unrealized foreign currency exchange differences, net | 33,445 | 9,033 | (24,412) | (73.0%) | 17,410 | |
Change in the value of Investment Property | - | - | - | - | - | |
Non realized Gain (loss) on hedging instruments of fair value | (1,088) | - | 1,088 | 100.0% | - | |
Non realized Gain (loss) on hedging instruments of cash flows | 69 | - | (69) | (100.0%) | - | |
(Gain) loss on sale of non-current assets not held for sale | 318 | (732) | (1,050) | - | (1,411) | |
Gain (loss) on the sale of other assets and financial liabilities | - | - | - | - | - | |
Participation in (profits) loss of investments | - | 130 | 130 | - | 251 | |
Increase in provisions | 22,403 | 16,140 | (6,263) | (28.0%) | 31,110 | |
Reversal of unused provisions | (3,115) | (893) | 2,222 | 71.3% | (1,722) | |
Used provisions | (7,477) | (7,266) | 211 | 2.8% | (14,005) | |
(Increase) decrease in deferred tax Assets | 4,910 | 3,646 | (1,264) | (25.7%) | 7,028 | |
Increase (decrease) in deferred tax Liabilities | (9,736) | (4,843) | 4,893 | 50.3% | (9,334) | |
Other non-monetary adjustments | (15,421) | (2,512) | 12,909 | 83.7% | (4,841) | |
Total Non monetary adjustments: | 131,356 | 133,079 | 1,723 | 1.3% | 256,505 | |
Increase (Decrease) in Working Capital in: | ||||||
Increase (decrease) in non current assets and Disposal Groups | ||||||
available for sale | - | (79,050) | (79,050) | - | (152,365) | |
Inventories | (2,098) | 24,429 | 26,527 | - | 47,086 | |
Trade accounts receivable and other receivables, net | (40,410) | 13,743 | 54,153 | 134.0% | 26,489 | |
Prepayments | (3,561) | 1,769 | 5,330 | 149.7% | 3,410 | |
Other assets | (32,150) | 3,606 | 35,756 | 111.2% | 6,951 | |
Trade accounts payable and other payables | (31,890) | (89,433) | (57,543) | (180.4%) | (172,378) | |
Deferred revenues | 1,900 | (1,770) | (3,670) | (193.2%) | (3,412) | |
Accruals | (1,193) | (1,104) | 89 | 7.4% | (2,129) | |
Taxes Payable | (49,611) | 35,540 | 85,151 | 171.6% | 68,502 | |
Post-employment benefit obligations | (22) | (4,895) | (4,873) | - | (9,435) | |
Other liabilities | (28,342) | 33,695 | 62,037 | - | 64,945 | |
Increase (Decrease) in Working Capital | (187,378) | (63,470) | 123,908 | 66.1% | (122,336) | |
Cash Flows provided by (used in) Other Operating Activities | ||||||
Proceeds from Dividends classified as operational | - | - | - | - | - | |
Payments of dividends classified as operating | - | - | - | - | - | |
Proceeds from interest received classified as operating | 84 | 69 | (15) | (17.5%) | 133 | |
Payments of interest classified as operating | 19 | (6,684) | (6,703) | - | (12,882) | |
Proceeds from refunded income tax | 17 | - | (17) | (100.0%) | - | |
Payments of income tax | (2,757) | (68,578) | (65,821) | - | (132,182) | |
Other inflows (outflows) from other operating activities | (392) | (79) | 313 | 79.8% | (153) | |
Net cash flows provided by (used in) operating activities | (3,030) | (75,272) | (72,242) | - | (145,084) | |
NET CASH FLOW FROM OPERATING ACTIVITIES | 372,784 | 371,168 | (1,616) | (0.4%) | 715,412 |
Pg. 23
PRESS RELEASE 1Q 2010 |
Under IFRS
Cont. Table 9 | ||||||
NET CASH FLOW FROM OPERATING ACTIVITIES | 372,784 | 371,168 | (1,616) | (0.4%) | 715,412 | |
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES | - | |||||
Proceeds from sales of property, plant and equipment | 4,601 | 471 | (4,130) | (89.8%) | 908 | |
Proceeds from sales of intangible assets | 756 | 983 | 227 | 30.0% | 1,894 | |
Proceeds from sales of other financial assets | - | - | - | - | - | |
Proceeds from the sale of other assets | - | - | - | - | - | |
Other cash flows provided by (used in) investing activities | 44,047 | - | (44,047) | (100.0%) | - | |
Proceeds from dividends classified for investing purposes | 1 | - | (1) | (100.0%) | - | |
Proceeds from interest received classified for investing purposes | 1,603 | 24 | (1,579) | (98.5%) | 45 | |
Purchase of property, plant and equipment | (141,437) | (79,947) | 61,490 | 43.5% | (154,095) | |
Acquisitions of investment properties | - | - | - | - | - | |
Acquisitions of intangible assets | (41,815) | (38,194) | 3,621 | 8.7% | (73,617) | |
Acquisitions of subsidiaries, net of cash acquired | - | - | - | - | - | |
Acquisitions of associates | (24,975) | - | 24,975 | 100.0% | - | |
Acquisitions of joint ventures, net of cash acquired | - | - | - | - | - | |
Loans to related companies | - | - | - | - | - | |
Loans to non related companies | (1,704) | (735) | 969 | 56.9% | (1,416) | |
Other investment disbursements | (21,058) | 654 | 21,712 | 103.1% | 1,260 | |
NET CASH FLOW FROM INVESTING ACTIVITIES | (179,982) | (116,745) | 63,237 | 35.1% | (225,021) | |
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES | - | |||||
Loans obtained | 200,203 | 24,860 | (175,343) | (87.6%) | 47,916 | |
Proceeds from issuance of other financial liabilities | 21,743 | 61,640 | 39,897 | 183.5% | 118,808 | |
Proceeds from loans from related companies | - | - | - | - | - | |
Revenue from other financing sources | 15,701 | - | (15,701) | (100.0%) | - | |
Payments of loans | (184,870) | (258,857) | (73,987) | (40.0%) | (498,937) | |
Repayment of other financial liabilities | - | (63,437) | (63,437) | - | (122,272) | |
Repayments of liabilities for financial leases | (430) | (1,675) | (1,245) | (289.4%) | (3,229) | |
Payments of loans to related parties | - | - | - | - | - | |
Payments of interest classified for financing purposes | (33,249) | (69,805) | (36,556) | (109.9%) | (134,546) | |
Dividends paid to minority interest | (4,265) | (78,671) | (74,406) | - | (151,635) | |
Dividends paid to shareholders of the company | (37) | (38,580) | (38,543) | - | (74,361) | |
Other cash flows provided by (used in) financing activities | (107,729) | - | 107,729 | 100.0% | - | |
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES | (92,932) | (424,525) | (331,593) | - | (818,255) | |
Net Increase (Decrease) in Cash and Cash Equivalents | 99,871 | (170,102) | (269,972) | - | (327,864) | |
Effects of foreign exchange rate variations on | ||||||
cash and cash equivalents | (141,852) | 57,364 | 199,216 | 140.4% | 110,566 | |
Effect of changes in scope of consolidation on cash | ||||||
and cash equivalents | 4,288 | - | (4,288) | (100.0%) | - | |
Beginning balance of cash and cash equivalents, | 1,318,062 | 1,134,901 | (183,161) | (13.9%) | 2,187,476 | |
statement of cash flows | ||||||
Ending Balance of Cash and Cash Equivalents, | ||||||
Statement of Cash Flows | 1,280,368 | 1,022,163 | (258,205) | (20.2%) | 1,970,178 |
The company generated a negative cash flow of Ch$ 170,102 million for the period, which can be broken down as follows:
Operating activities generated a positive net cash flow of Ch$ 371,168 million that represents an decrease of 0.4% regarding last year’s first quarter. This cash flow is composed primarily with net income of the period for Ch$ 206,782 million, which is adjusted to operating income in Ch$ 204,119 million. This adjustment includes fixed asset amortization, depreciation and impairments for Ch$ 120,376 million, provisions for Ch$ 9,032 million, taxes for Ch$ 96,750 million, partially compensated by the tax payments for Ch$33,038 million.
Investment activitiesgenerated a net negative cash flow of Ch$ 116,745 million, which compared with the same period of the preceding year represents a 35.1% decrease or the equivalent to Ch$ 63,237 million. This flow corresponds primarily to the incorporation of fixed assets for Ch$ 118,141 million.
Financing activities originated a negative cash flow of Ch$ 424,525 million, due to repayments of loans for Ch$ 258,857 million, dividends paid for Ch$ 117,251 million, interests paid for Ch$ 69,805 million and other financial payments for Ch$ 63,436 million. The aforementioned was partially compensated for loans obtained for Ch$ 86,500 million.
Pg. 24
PRESS RELEASE 1Q 2010 |
Cash Flow Received From Foreign Subsidiaries by Enersis, Chilectra and Endesa Chile
Table 10 | ||||||||||||||
Interest Received | Dividends Received | Capital Reductions from Subsidiaries | ||||||||||||
Millions Ch$ | Thousand US$ | Millions Ch$ | Thousand US$ | Millions Ch$ | Thousand US$ | |||||||||
1Q09 | 1Q10 | 1Q10 | 1Q09 | 1Q10 | 1Q10 | 1Q09 | 1Q10 | 1Q10 | ||||||
Argentina | 271 | 55 | 105 | - | - | - | - | - | - | |||||
Peru | - | - | - | - | - | - | - | - | - | |||||
Brazil | 6,155 | - | - | - | - | - | - | - | - | |||||
Colombia | - | - | - | - | - | - | - | 29,268 | 56,413 | |||||
Chile | - | - | - | - | - | - | - | |||||||
Total | 6,426 | 55 | 105 | - | - | - | - | 29,268 | 56,413 | |||||
Total Cash Received | ||||||||||||||
Millions Ch$ | Thousand US$ | |||||||||||||
1Q09 | 1Q10 | 1Q10 | ||||||||||||
Argentina | 271 | 55 | 105 | |||||||||||
Peru | - | - | - | |||||||||||
Brazil | 6,155 | - | - | |||||||||||
Colombia | - | 29,268 | 56,413 | |||||||||||
Chile | - | - | - | |||||||||||
Total | 6,426 | 29,323 | 56,518 | |||||||||||
Source: Internal Financial Report |
Source: Internal Financial Report
Capex and Depreciation
Table 11 | |||||||||
Payments for Additions of Fixed assets | Depreciation | ||||||||
Million Ch$ | Thousand US$ | Million Ch$ | Thousand US$ | ||||||
Million Ch$ | 1Q09 | 1Q10 | 1Q10 | 1Q09 | 1Q10 | 1Q10 | |||
Endesa Chile | 98,846 | 50,361 | 97,068 | 46,762 | 48,886 | 94,226 | |||
Cachoeira | - | - | - | 1,626 | 1,791 | 3,452 | |||
Endesa Fortaleza | - | - | - | 1,796 | 1,977 | 3,811 | |||
Cien | - | - | - | 4,703 | 9,072 | 17,486 | |||
Chilectra S.A. | 14,741 | 8,937 | 17,226 | 4,827 | 5,266 | 10,151 | |||
Edesur S.A. | 10,130 | 8,061 | 15,537 | 4,596 | 3,590 | 6,920 | |||
Edelnor S.A. | 8,622 | 3,813 | 7,349 | 5,009 | 4,975 | 9,589 | |||
Ampla (*) | 15,801 | 26,275 | 50,644 | 244 | - | - | |||
Coelce (*) | 25,103 | 11,550 | 22,262 | 1,787 | 830 | 1,599 | |||
Codensa S.A. | 7,227 | 7,268 | 14,009 | 12,600 | 14,393 | 27,742 | |||
Cam Ltda. | 835 | 332 | 640 | 518 | 436 | 840 | |||
Inmobiliaria Manso de Velasco Ltda. | 395 | 346 | 668 | 59 | 71 | 137 | |||
Synapsis Soluciones y Servicios Ltda. | 369 | 703 | 1,355 | 673 | 675 | 1,301 | |||
Holding Enersis y sociedades de Inversión | 272 | 126 | 243 | 274 | 267 | 514 | |||
Total | 182,341 | 117,773 | 227,002 | 85,474 | 92,228 | 177,769 | |||
(*) Includes concessions intangible assets. |
Pg. 25
PRESS RELEASE 1Q 2010 |
The Principal Risks associated to the activities of the Enersis Group
Commercial and Regulatory Risk
The Group’s activities are subject to a broad range of governmental standards and environmental regulations. Any modification of such standards and issues may affect the Group’s activities, economic situation and operating results.
The Group’s distribution activity is subject to a broad range of rules regarding tariffs and other issues that govern their activities in each of the countries where it operates and which could modify distribution subsidiaries operating results.
The Group’s generation activity requires environmental impact studies, acquisition of licenses, permits and other mandatory approvals as well as to be in compliance with all the requirements provided for in such licenses, permits and standards.
The Group’s generation activity is subject to existing hydrological and atmospheric conditions in the broad geographic zones in which the Group’s hydroelectric generating plants are located. Commercial policies have been planned in order to moderate the possible impact of changes in these variables.
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.
Consistent with current interest rate hedging policy, the portion of fixed and/or hedged debt rate to the total gross debt was 48% as of March 31st, 2010 on a consolidated basis.
Depending on the Group’s forecasts and debt structure objectives, hedging transactions take place through contracted derivatives that mitigate these risks.
Exchange Rate Risk
The exchange rate risk is 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 and Cash flows from subsidiary companies to headquarters in Chile are exposed to exchange rate fluctuations.
In order to mitigate exchange rate risks, Enersis’ exchange rate hedging policy is based on cash flows and it strives to maintain a balance between the flows indexed to 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.
Commodities Risk
Enersis is exposed to the price fluctuation risk on some commodities, basically of fuel purchases for the electricity generation and also of energy transactions in the local markets.
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.
Pg. 26
PRESS RELEASE 1Q 2010 |
Liquidity Risk
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.
As of March 31st, 2010, the Enersis Group held liquidity in the amount of Ch$ 1,022,162,840 thousand in cash and cash equivalent and Ch$310,000,000 thousand in available credit lines. As of December 31st, 2009, the Enersis Group held liquidity in the amount of Ch$ 1,134,900,821 thousand in cash and cash equivalent and Ch$253,550,000 thousand in available credit lines.
Credit Risk
Credit risk in accounts receivable, originating from trading activities, is historically very limited given that the short term collection conditions to customer doesn’t allow 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.
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 and 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 and the exchange rates of the different currencies involved in the calculation.
Pg. 27
PRESS RELEASE 1Q 2010 |
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 US$ 50 million dollars (or its equivalent in other currencies), and with a missed payment also in excess of US$ 50 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 US$ 50 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 US$ 30 million dollars, could potentially give rise to a cross default of Enersis and Endesa Chile Yankee bonds.
There are no clauses in the credit agreements by which changes in the corporate or debt classification of these companies from risk classification agencies could trigger prepayments. Nevertheless, a modification in the Standard & Poor’s (S&P) debt risk classification in foreign currency could trigger a change in the margin applicable to determine the interest rate, in the credit loans issued in 2004 and 2006.
Pg. 28
PRESS RELEASE 1Q 2010 |
Generation
Endesa Costanera
Operating income amounted to Ch$ 5,677 million as of March 2010, a 2.2% reduction compared to the March 2009 quarter. Total Revenues declined 11.9% compared to March 2009 due to a 23% decrease in physical sales. Endesa Costanera’s Cost of sales fell by 11.1% between both periods, mainly explained by reduced fuel costs due to lower generation level during the period.
Negative conversion effect from local currency to Chilean pesos, reduced 20.9% the 2010 first quarter results compared to last year’s figure.
Table 12 | ||||||
Endesa Costanera | Million Ch$ | Thousand US$ | ||||
1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % | 1Q10 | ||
Total Revenues | 52,567 | 46,317 | (6,250) | (11.9%) | 89,275 | |
Procurements and Services | (37,012) | (32,898) | 4,114 | 11.1% | (63,410) | |
Contribution Margin | 15,555 | 13,419 | (2,136) | (13.7%) | 25,865 | |
Other Costs | (4,685) | (3,731) | 954 | 20.4% | (7,191) | |
Gross Operating Income (EBITDA) | 10,871 | 9,688 | (1,183) | (10.9%) | 18,673 | |
Depreciation and Amortization | (5,067) | (4,011) | 1,056 | 20.8% | (7,731) | |
Operating Income | 5,804 | 5,677 | (127) | (2.2%) | 10,942 | |
Figures may differ from those accounted under Argentine GAAP. |
Table 16 | ||||
Endesa Costanera | 1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % |
GWh Produced | 2,543 | 1,919 | (625) | (24.6%) |
GWh Sold | 2,547 | 1,968 | (579) | (22.7%) |
Market Share | 9.7% | 7.0% | (2.7 pp.) | - |
El Chocón
El Chocón showed a favorable reservoir level as a result of the storage policy during 2009, thus contributing a greater hydroelectric availability. Its operating income, therefore, rose by 24.9% to Ch$ 9,349 million to the end of March 2010, due to higher physical sales of 34% over the same period of last year, and lower costs of energy purchases given its greater own generation.
Negative conversion effect from local currency to Chilean pesos, reduced 20.9% the 2010 first quarter results compared to last year’s figure.
Table 13 | ||||||
El Chocón | Million Ch$ | Thousand US$ | ||||
1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % | 1Q10 | ||
Total Revenues | 14,442 | 14,843 | 401 | 2.8% | 28,609 | |
Procurements and Services | (4,810) | (3,626) | 1,184 | 24.6% | (6,988) | |
Contribution Margin | 9,632 | 11,218 | 1,586 | 16.5% | 21,621 | |
Other Costs | (1,194) | (1,087) | 106 | 8.9% | (2,096) | |
Gross Operating Income (EBITDA) | 8,438 | 10,130 | 1,692 | 20.1% | 19,526 | |
Depreciation and Amortization | (951) | (781) | 169 | 17.8% | (1,506) | |
Operating Income | 7,488 | 9,349 | 1,861 | 24.9% | 18,020 | |
Figures may differ from those accounted under Argentine GAAP. |
Pg. 29
PRESS RELEASE 1Q 2010 |
Table 14 | ||||
El Chocón | 1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % |
GWh Produced | 563 | 819 | 256 | 45.5% |
GWh Sold | 668 | 895 | 227 | 34.0% |
Market Share | 2.5% | 3.2% | 0.7 pp. | - |
Distribution
Edesur
Operating income decreased 32% to Ch$ 6,829 million mainly due to the negative conversion effect from local currency to Chilean pesos, which reduced 20.9% the 2010 first quarter results compared to last year’s figure. In addition, average sales prices in local currency decreased 4%.
Table 15 | ||||||
Edesur | Million Ch$ | Thousand US$ | ||||
1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % | 1Q10 | ||
Total Revenues | 94,033 | 75,888 | (18,145) | (19.3%) | 146,271 | |
Procurements and Services | (47,222) | (37,163) | 10,059 | 21.3% | (71,631) | |
Contribution Margin | 46,811 | 38,725 | (8,086) | (17.3%) | 74,640 | |
Other Costs | (32,179) | (28,225) | 3,954 | 12.3% | (54,402) | |
Gross Operating Income (EBITDA) | 14,632 | 10,500 | (4,132) | (28.2%) | 20,238 | |
Depreciation and Amortization | (4,596) | (3,671) | 925 | 20.1% | (7,076) | |
Operating Income | 10,036 | 6,829 | (3,207) | (32.0%) | 13,163 | |
Figures may differ from those accounted under Argentine GAAP. |
Figures may differ from those accounted under Argentine GAAP.
Table 16 | ||||
Edesur | 1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % |
Customers (Th) | 2,272 | 2,316 | 45 | 2.0% |
GWh Sold | 4,106 | 4,313 | 207 | 5.0% |
Clients/Employee | 867 | 877 | 10 | 1.1% |
Energy Losses % | 10.5% | 10.5% | 0.0 pp. | - |
Pg. 30
PRESS RELEASE 1Q 2010 |
Brazil
Endesa Brasil
Table 17 | ||||||
Endesa Brasil | Million Ch$ | Thousand US$ | ||||
1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % | 1Q10 | ||
Total Revenues | 437,596 | 501,805 | 64,209 | 14.7% | 967,209 | |
Procurements and Services | (260,648) | (275,031) | (14,383) | (5.5%) | (530,110) | |
Contribution Margin | 176,948 | 226,774 | 49,826 | 28.2% | 437,098 | |
Other Costs | (61,948) | (62,494) | (546) | (0.9%) | (120,454) | |
Gross Operating Income (EBITDA) | 115,001 | 164,281 | 49,280 | 42.9% | 316,644 | |
Depreciation and Amortization | (29,206) | (38,690) | (9,484) | (32.5%) | (74,574) | |
Operating Income | 85,794 | 125,590 | 39,796 | 46.4% | 242,070 | |
Net Financial Income | (14,924) | (22,713) | (7,788) | (52.2%) | (43,778) | |
Financial income | 15,791 | 13,230 | (2,562) | (16.2%) | 25,500 | |
Financial expenses | (31,544) | (32,597) | (1,053) | (3.3%) | (62,830) | |
Income (Loss) for indexed assets and liabilities | - | - | - | - | - | |
Foreign currency exchange differences, net | 829 | (3,345) | (4,174) | - | (6,447) | |
Gains | 3,054 | 9,898 | 6,844 | - | 19,078 | |
Losses | (2,225) | (13,243) | (11,018) | - | (25,525) | |
Continued Operations Result | 8 | 1 | (7) | (92.5%) | 1 | |
Net Income before Taxes | 70,878 | 102,878 | 32,001 | 45.1% | 198,294 | |
Income Tax | (15,294) | (22,561) | (7,267) | (47.5%) | (43,485) | |
NET INCOME | 55,583 | 80,317 | 24,734 | 44.5% | 154,809 | |
Net Income Attributable to Owners of the | ||||||
Company | 38,666 | 49,275 | 10,609 | 27.4% | 94,976 | |
Net Income Attributable to Minority Interest | ||||||
16,917 | 31,042 | 14,125 | 83.5% | 59,833 |
Generation
Cachoeira
Operating Income increased due to higher sales volume at higher prices during the period boosted by the higher hydrology and the recovery of the demand, which increased 21% for that subsidiary.
A positive conversion effect from local currency to Chilean pesos increased 8.6% the results compared to the figure of the same period last year.
Table 18 | ||||||
Cachoeira | Million Ch$ | Thousand US$ | ||||
1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % | 1Q10 | ||
Total Revenues | 18,573 | 24,372 | 5,799 | 31.2% | 46,975 | |
Procurements and Services | (5,216) | (6,599) | (1,383) | (26.5%) | (12,719) | |
Contribution Margin | 13,357 | 17,773 | 4,415 | 33.1% | 34,256 | |
Other Costs | (1,419) | (1,487) | (68) | (4.8%) | (2,866) | |
Gross Operating Income (EBITDA) | 11,939 | 16,286 | 4,347 | 36.4% | 31,390 | |
Depreciation and Amortization | (1,634) | (1,791) | (157) | (9.6%) | (3,452) | |
Operating Income | 10,304 | 14,495 | 4,190 | 40.7% | 27,938 | |
Figures may differ from those accounted under Brazilian GAAP. |
Pg. 31
PRESS RELEASE 1Q 2010 |
Table 19 | ||||
Cachoeira | 1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % |
GWh Produced | 581 | 847 | 266 | 45.8% |
GWh Sold | 709 | 858 | 149 | 21.1% |
Market Share | 0.7% | 0.8% | 0.1 pp. | - |
Fortaleza (cgtf)
Operating Income increased mainly due to the 32% increase in the average sales prices denominated in local currency and the lower Procurement and Services costs as a consequence of the lower energy purchased costs during the period, which was related to the higher hydrology prevailing in the system.
In addition, a positive conversion effect from local currency to Chilean pesos increased 8.6% the results compared to the figure of the same period last year.
Table 20 | ||||||
Fortaleza | Million Ch$ | Thousand US$ | ||||
1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % | 1Q10 | ||
Total Revenues | 29,874 | 35,051 | 5,177 | 17.3% | 67,560 | |
Procurements and Services | (18,046) | (13,241) | 4,805 | 26.6% | (25,522) | |
Contribution Margin | 11,828 | 21,810 | 9,982 | 84.4% | 42,038 | |
Other Costs | (2,206) | (2,120) | 86 | 3.9% | (4,087) | |
Gross Operating Income (EBITDA) | 9,622 | 19,690 | 10,068 | 104.6% | 37,952 | |
Depreciation and Amortization | (1,796) | (1,977) | (181) | (10.1%) | (3,811) | |
Operating Income | 7,826 | 17,713 | 9,887 | 126.3% | 34,141 | |
Figures may differ from those accounted under Brazilian GAAP. |
Table 21 | ||||
Fortaleza | 1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % |
GWh Produced | 25 | 104 | 78 | 306.8% |
GWh Sold | 777 | 663 | (114) | (14.7%) |
Market Share | 0.8% | 0.7% | (0.1 pp.) | - |
Transmission
CIEN
Our transmission line company, CIEN, decreased its operating income to a loss of Ch$ 5,950 million, due to the lack of contracts during the first quarter 2010 when compared to equal period 2009. After the law enacted on December 2009 that recognizes for all the transmission lines the right of a regulated income, we are expecting the ANEEL’s resolution determining the annual allowed income for CIEN. It its worth mentioning that the law enacted last December granted CIEN the condition of a public service provider.
The latter has been partially offset by a reversion of overestimated variable transmission costs since year 2005, which implied a positive effect for the current period, and positive conversion effect due to Real appreciation relative to the Chilean peso.
Pg. 32
PRESS RELEASE 1Q 2010 |
Table 22 | ||||||
Cien | Million Ch$ | Thousand US$ | ||||
1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % | 1Q10 | ||
Total Revenues | 20,742 | 1,495 | (19,247) | (92.8%) | 2,882 | |
Procurements and Services | (868) | 3,732 | 4,599 | - | 7,192 | |
Contribution Margin | 19,875 | 5,227 | (14,648) | (73.7%) | 10,074 | |
Other Costs | (2,437) | (2,100) | 337 | 13.8% | (4,047) | |
Gross Operating Income (EBITDA) | 17,438 | 3,127 | (14,310) | (82.1%) | 6,027 | |
Depreciation and Amortization | (4,720) | (9,077) | (4,357) | (92.3%) | (17,496) | |
Operating Income | 12,718 | (5,950) | (18,668) | (146.8%) | (11,468) | |
Figures may differ from those accounted under Brazilian GAAP. |
Figures may differ from those accounted under Brazilian GAAP.
Distribution
Ampla
Operating Income increased 113% to Ch$ 60,158 million mainly due to the greater energy demand performance and higher average sales prices, partially compensated by the increase in the energy purchase costs, higher energy losses and lower tolls.
All the above mentioned, has been boosted by positive conversion effect due to the appreciation of Brazilian Real relative to the Chilean peso.
Table 23 | ||||||
Ampla | Million Ch$ | Thousand US$ | ||||
1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % | 1Q10 | ||
Total Revenues | 240,789 | 273,545 | 32,756 | 13.6% | 527,248 | |
Procurements and Services | (169,616) | (168,092) | 1,524 | 0.9% | (323,991) | |
Contribution Margin | 71,173 | 105,453 | 34,280 | 48.2% | 203,256 | |
Other Costs | (30,785) | (31,329) | (544) | (1.8% ) | (60,386) | |
Gross Operating Income (EBITDA) | 40,387 | 74,124 | 33,736 | 83.5% | 142,870 | |
Depreciation and Amortization | (12,100) | (13,966) | (1,866) | (15.4%) | (26,919) | |
Operating Income | 28,288 | 60,158 | 31,870 | 112.7% | 115,952 | |
Figures may differ from those accounted under Brazilian GAAP. |
Table 24 | ||||
Ampla | 1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % |
Customers (Th) | 2,477 | 2,529 | 52 | 2.1% |
GWh Sold | 2,440 | 2,621 | 182 | 7.5% |
Clients/Employee | 1,904 | 2,063 | 159 | 8.4% |
Energy Losses % | 20.5% | 21.5% | 0.9 pp. | - |
Coelce
Operating Income increased 42% to Ch$ 40,293 million mainly due to an increase in energy demand and much higher average sales margins and tolls, due to higher energy average sales prices and higher physical sales. The latter, partially offset by higher energy losses and prices of energy purchases.
All the above mentioned, has been boosted by positive conversion effect due to Real appreciation relative to the Chilean peso.
Pg. 33
PRESS RELEASE 1Q 2010 |
Table 25 | ||||||
Coelce | Million Ch$ | Thousand US$ | ||||
1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % | 1Q10 | ||
Total Revenues | 152,483 | 202,221 | 49,738 | 32.6% | 389,772 | |
Procurements and Services | (91,767) | (125,709) | (33,942) | (37.0%) | (242,299) | |
Contribution Margin | 60,716 | 76,512 | 15,796 | 26.0% | 147,473 | |
Other Costs | (23,467) | (24,414) | (947) | (4.0% ) | (47,058) | |
Gross Operating Income (EBITDA) | 37,248 | 52,097 | 14,849 | 39.9% | 100,416 | |
Depreciation and Amortization | (8,908) | (11,804) | (2,897) | (32.5%) | (22,752) | |
Operating Income | 28,341 | 40,293 | 11,952 | 42.2% | 77,663 | |
Figures may differ from those accounted under Brazilian GAAP. |
Figures may differ from those accounted under Brazilian GAAP.
Table 26 | ||||
Coelce | 1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % |
Customers (Th) | 2,878 | 2,996 | 118 | 4.1% |
GWh Sold | 1,877 | 2,153 | 276 | 14.7% |
Clients/Employee | 2,280 | 2,369 | 88 | 3.9% |
Energy Losses % | 11.6% | 11.9% | 0.3 pp. | - |
Pg. 34
PRESS RELEASE 1Q 2010 |
Chile
Generation
Endesa Chile
Consolidated Income Statement of Endesa Chile
Table 27 | ||||||
Endesa Chile | Million Ch$ | Thousand US$ | ||||
1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % | 1Q10 | ||
Total Revenues | 660.811 | 529.906 | (130.905) | (19,8%) | 1.021.373 | |
Procurements and Services | (277.990) | (261.841) | 16.148 | 5,8% | (504.689) | |
Contribution Margin | 382.821 | 268.065 | (114.757) | (30,0%) | 516.684 | |
Other Costs | (45.559) | (42.555) | 3.004 | 6,6% | (82.022) | |
Gross Operating Income (EBITDA) | 337.262 | 225.510 | (111.752) | (33,1%) | 434.662 | |
Depreciations and Amortizations | (47.797) | (50.110) | (2.313) | (4,8%) | (96.585) | |
Operating Income | 289.466 | 175.400 | (114.065) | (39,4%) | 338.077 | |
Net Financial Income | (56.487) | (30.399) | 26.088 | 46,2% | (58.593) | |
Financial income | 10.900 | 3.316 | (7.585) | (69,6%) | 6.391 | |
Financial expenses | (49.803) | (37.605) | 12.199 | 24,5% | (72.482) | |
Income (Loss) for indexed assets and liabilities | 9.352 | (25) | (9.378) | (100,3%) | (49) | |
Foreign currency exchange differences, net | (26.936) | 3.915 | 30.852 | 114,5% | 7.547 | |
Gains | 6.345 | 6.797 | 452 | 7,1% | 13.100 | |
Losses | (33.281) | (2.881) | 30.399 | 91,3% | (5.553) | |
Net Income from Related Comp. Cons. By the Prop. Eq. | 16.811 | 20.649 | 3.838 | 22,8% | 39.801 | |
Method | ||||||
Net Income from Other Investments | (11) | - | 11 | 100,0% | - | |
Net Income from asset sales | (22) | (7) | 14 | 66,6% | (14) | |
Net Income before Taxes | 249.758 | 165.643 | (84.115) | (33,7%) | 319.271 | |
Income Tax | (43.476) | (45.456) | (1.981) | (4,6%) | (87.615) | |
NET INCOME | 206.282 | 120.187 | (86.095) | (41,7%) | 231.655 | |
Net Income Attributable to Owners of the | ||||||
Company | 165.785 | 93.729 | (72.056) | (43,5%) | 180.658 | |
Net Income Attributable to | ||||||
Minority Interest | 40.498 | 26.458 | (14.039) | (34,7%) | 50.997 | |
*Includes generation subsidiaries in Chile, Argentina, Colombia and Peru. |
Chilean Operations
Operating income of the generation business in Chile was Ch$ 94,716 million as of March 2010, a reduction of 47.9% compared to the same period of the year before. This is mainly explained by a decrease in average prices of approximately 28% and a 3.5% reduced sales volume. Lower average prices were caused by slightly lower average spot price, plus lower average prices under our contracts. Physical sales declined due to a reduced electricity demand compared to the first quarter of 2009, mainly affected by the earthquake occurred on February, 27th.
Chilean generation business registered 30.9% fall in revenues, which was partially compensated by a 17% lower operating costs as a result of favorable hydrological conditions, maintaining an efficient production mix and lower fuel costs due to the availability of natural gas.
The production of 5,190 GWh in the first quarter of 2010 was 4.5% below that of 2009. This resulted in an EBITDA for the Chilean business, or the Gross Operating Income, of Ch$ 119,673 million as of March 2010, compared to Ch$ 204,349 million in the first quarter of 2009.
Pg. 35
PRESS RELEASE 1Q 2010 |
It is worth mentioning that assets as well as business interruption, attributable to the earthquake of February, 27th, are properly protected by insurance policies.
Table 28 | ||||||
Chilean Operations | Million Ch$ | Thousand US$ | ||||
1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % | 1Q10 | ||
Total Revenues | 410,375 | 283,400 | (126,975) | (30.9%) | 546,243 | |
Procurements and Services | (189,566) | (145,226) | 44,340 | 23.4% | (279,917) | |
Contribution Margin | 220,809 | 138,175 | (82,635) | (37.4%) | 266,326 | |
Other Costs | (16,460) | (18,502) | (2,042) | (12.4%) | (35,662) | |
Gross Operating Income (EBITDA) | 204,349 | 119,673 | (84,676) | (41.4%) | 230,664 | |
Depreciation and Amortization | (22,524) | (24,957) | (2,433) | (10.8%) | (48,103) | |
Operating Income | 181,825 | 94,716 | (87,109) | (47.9%) | 182,561 |
Table 29 | ||||
Chilean Companies | 1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % |
GWh Produced | 5,436 | 5,190 | (246) | (4.5%) |
GWh Sold | 5,528 | 5,336 | (192) | (3.5%) |
Market Share | 41.5% | 41.3% | (0.2 pp.) | - |
Distribution
Chilectra
Operating Income decreased due to a decline in the energy purchase/sales margin resulting from higher tariffs on the first quarter the precedent year and the lower demand during the period which was particularly affected by the effects of the Santiago’s earthquake of February 2010 and the blackout occurred on March 14th. This last event was originated in the interruption of the Transelec owned Charrúa substation operations, which affected the electric supply of all the clients belonging to Chilectra’s concession area.
Pg. 36
PRESS RELEASE 1Q 2010 |
Table 30 | ||||||
Chilectra | Million Ch$ | Thousand US$ | ||||
1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % | 1Q10 | ||
Total Revenues | 282,155 | 211,580 | (70,574) | (25.0%) | 407,812 | |
Procurements and Services | (224,187) | (161,343) | 62,844 | 28.0% | (310,983) | |
Contribution Margin | 57,967 | 50,237 | (7,730) | (13.3%) | 96,830 | |
Other Costs | (20,175) | (20,853) | (678) | (3.4% ) | (40,193) | |
Gross Operating Income (EBITDA) | 37,792 | 29,384 | (8,408) | (22.2%) | 56,636 | |
Depreciation and Amortization | (5,431) | (6,057) | (626) | (11.5%) | (11,675) | |
Operating Income | 32,361 | 23,327 | (9,034) | (27.9%) | 44,961 | |
Net Financial Income | (3,271) | (9) | 3,261 | 99.7% | (18) | |
Financial income | 2,453 | 2,044 | (409) | (16.7%) | 3,941 | |
Financial expenses | (4,752) | (2,332) | 2,420 | 50.9% | (4,496) | |
Income (Loss) for indexed assets and liabilities | (586) | 190 | 776 | 132.4% | 366 | |
Foreign currency exchange differences, net | (386) | 89 | 474 | 123.0% | 171 | |
Gains | 204 | 91 | (112) | (55.2%) | 176 | |
Losses | (589) | (3) | 587 | 99.6% | (5) | |
Net Income from Related Comp. Cons. By the | 14,077 | 20,726 | 6,649 | 47.2% | 39,949 | |
Prop. Eq. Method | ||||||
Net Income from Other Investments | - | - | - | - | - | |
Net Income from assets sales | 1 | - | (1) | (100.0%) | - | |
Net Income before Taxes | 43,168 | 44,043 | 875 | 2.0% | 84,892 | |
Income Tax | (2,378) | (6,595) | (4,217) | (177.3%) | (12,712) | |
NET INCOME | 40,790 | 37,448 | (3,342) | (8.2%) | 72,180 | |
Net Income Attributable to Owners | 40,791 | 36,785 | (4,006) | (9.8%) | 70,902 | |
of the Company | ||||||
Net Income Attributable to | (1) | 663 | 663 | - | 1,277 | |
Minority Interest |
Table 31 | ||||
Chilectra | 1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % |
Customers (Th) | 1,542 | 1,589 | 47 | 3.0% |
GWh Sold | 3,078 | 3,046 | (31) | (1.0%) |
Clients/Employee | 2,142 | 2,177 | 35 | 1.6% |
Energy Losses % | 6.0% | 6.1% | 0.1 pp. | - |
Pg. 37
PRESS RELEASE 1Q 2010 |
Colombia
Generation
Emgesa
Operating income of our generation business in Colombia reached Ch$ 44,126 million in March 2010, 32.1% lower than the same period in 2009. This is mainly explained by a less efficient production mix due to low hydrology as a consequence of El Niño phenomenon. This situation led to an increase in thermal production, replacing hydroelectric dispatch, which decreased by 41% comparing both periods. The weather factor caused an increase of 70% in operating costs because of higher energy purchases and higher costs of fuel consumption for thermal generation. This was partially compensated by a higher average price in local currency due to the greater thermal production resulting from the low hydrology. EBITDA decreased by 27% in the first quarter of 2010, reaching Ch$ 53,870 million.
In addition, a positive conversion effect from local currency to Chilean pesos increased 5.8% the current period results compared to last year’s figure.
Table 32 | ||||||
Emgesa | Million Ch$ | Thousand US$ | ||||
1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % | 1Q10 | ||
Total Revenues | 118,591 | 123,136 | 4,545 | 3.8% | 237,340 | |
Procurements and Services | (35,342) | (60,055) | (24,713) | (69.9%) | (115,754) | |
Contribution Margin | 83,249 | 63,081 | (20,168) | (24.2%) | 121,587 | |
Other Costs | (9,423) | (9,211) | 212 | 2.2% | (17,754) | |
Gross Operating Income (EBITDA) | 73,826 | 53,870 | (19,956) | (27.0%) | 103,833 | |
Depreciation and Amortization | (8,794) | (9,744) | (951) | (10.8%) | (18,782) | |
Operating Income | 65,032 | 44,126 | (20,907) | (32.1%) | 85,051 | |
* Please notice that these figures could differ from those accounted under Colombian GAAP. |
Table 33 | ||||
Emgesa | 1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % |
GWh Produced | 3,143 | 2,260 | (882) | (28.1%) |
GWh Sold | 3,955 | 3,333 | (622) | (15.7%) |
Market Share | 20.5% | 16.7% | (3.8 pp.) | - |
Distribution
Codensa
Operating Income decreased 4.4% to Ch$ 39,516 million, explained by lower purchase/sales margins due to lower tariffs during the present period as compared to the levels observed during the same period last year, which is related with the application of the new tariffs set force on the Resolution 100 of the CREG on October 2009. In addition, energy losses rose from 8.2% to 8.5%.
The above was partially offset by the positive conversion effect from local currency to Chilean pesos.
It is worth mentioning that starting this year, the change in the Codensa Hogar model of business will be reflected in the operating income as Financial Income, which corresponds to the commissions received from Colpatria.
Pg. 38
PRESS RELEASE 1Q 2010 |
Table 34 | ||||||
Codensa | Million Ch$ | Thousand US$ | ||||
1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % | 1Q10 | ||
Total Revenues | 168,388 | 186,619 | 18,231 | 10.8% | 359,701 | |
Procurements and Services | (89,407) | (105,438) | (16,031) | (17.9%) | (203,228) | |
Contribution Margin | 78,981 | 81,181 | 2,200 | 2.8% | 156,473 | |
Other Costs | (24,447) | (26,707) | (2,260) | (9.2% ) | (51,476) | |
Gross Operating Income (EBITDA) | 54,534 | 54,474 | (60) | (0.1%) | 104,997 | |
Depreciation and Amortization | (13,210) | (14,958) | (1,748) | (13.2%) | (28,830) | |
Operating Income | 41,325 | 39,517 | (1,808) | (4.4%) | 76,167 | |
* Please notice that these figures could differ from those accounted under Colombian GAAP. |
Table 35 | ||||
Codensa | 1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % |
Customers (Th) | 2,311 | 2,488 | 177 | 7.7% |
GWh Sold | 2,897 | 3,000 | 104 | 3.6% |
Clients/Employee | 2,430 | 2,437 | 7 | 0.3% |
Energy Losses % | 8.2% | 8.5% | 0.3 pp. | - |
Pg. 39
PRESS RELEASE 1Q 2010 |
Peru
Generation
Edegel
Operating income was Ch$ 19,713 million, representing a reduction of 27.8% compared to the first quarter of 2009. This is mainly explained by lower physical sales and a higher cost of sales. The 9% decline in physical sales was due to reduced sales to non-regulated customers, particularly Electroperú, whose contract ended in September 2009. The 78% increase in the cost of sales reflects the absence of the non-recurring reversal of provisions for energy purchases for distribution companies without contracts registered in the first quarter of 2009. This was partially compensated as our Peruvian operation maintained an efficient production mix with 67% hydroelectric and the rest thermal, reflecting lower fuel consumption costs.
In addition, a negative conversion effect from local currency to Chilean pesos reduced 4.6% the 2010 first quarter results compared to last year’s figure.
Table 36 | ||||||
Edegel | Million Ch$ | Thousand US$ | ||||
1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % | 1Q10 | ||
Total Revenues | 56,063 | 54,935 | (1,128) | (2.0%) | 105,885 | |
Procurements and Services | (11,259) | (20,036) | (8,777) | (78.0%) | (38,619) | |
Contribution Margin | 44,804 | 34,899 | (9,905) | (22.1%) | 67,266 | |
Other Costs | (7,888) | (5,595) | 2,293 | 29.1% | (10,784) | |
Gross Operating Income (EBITDA) | 36,915 | 29,304 | (7,612) | (20.6%) | 56,482 | |
Depreciation and Amortization | (9,600) | (9,591) | 9 | 0.1% | (18,486) | |
Operating Income | 27,315 | 19,713 | (7,603) | (27.8%) | 37,996 | |
* Please notice that these figures could differ from those accounted under Peruvian GAAP. |
Table 37 | ||||
Edegel | 1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % |
GWh Produced | 2,299 | 1,987 | (313) | (13.6%) |
GWh Sold | 2,254 | 2,042 | (212) | (9.4%) |
Market Share | 33.9% | 28.3% | (5.5 pp.) | - |
Distribution
Edelnor
Operating Income increased 1% to Ch$ 16,303 million due to an increase in physical sales and a reduction on energy losses, which was partially offset by lower electricity sales margins.
Meanwhile, clients’ base grew by 32 thousand new clients.
Pg. 40
PRESS RELEASE 1Q 2010 |
Table 38 | |||||
Edelnor | Million Ch$ | Thousand US$ | |||
1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % | 1Q10 | |
Total Revenues | 76,238 | 75,536 | (702) | (0.9% ) | 145,593 |
Procurements and Services | (45,473) | (46,464) | (991) | (2.2% ) | (89,557) |
Contribution Margin | 30,765 | 29,072 | (1,693) | (5.5%) | 56,036 |
Other Costs | (9,367) | (7,568) | 1,799 | 19.2% | (14,587) |
Gross Operating Income (EBITDA) | 21,398 | 21,504 | 106 | 0.5% | 41,449 |
Depreciation and Amortization | (5,227) | (5,201) | 25 | 0.5% | (10,026) |
Operating Income | 16,171 | 16,303 | 132 | 0.8% | 31,423 |
* Please notice that these figures could differ from those accounted under Peruvian GAAP. |
Table 39 | ||||
Edelnor | 1Q09 | 1Q10 | Var 1Q09-1Q10 | Chg % |
Customers (Th) | 1,036 | 1,067 | 32 | 3.1% |
GWh Sold | 1,428 | 1,516 | 88 | 6.2% |
Clients/Employee | 1,824 | 1,923 | 100 | 5.5% |
Energy Losses % | 8.2% | 8.1% | (0.1 pp.) | - |
Operating Income by Subsidiary
Summary of operating revenues, operating costs (including procurements, services and other costs) and operating income of all Enersis’ subsidiaries, for the first quarters ended in March 2009 and March 2010, detailed as follows:
Table 40 | ||||||
1Q09 | 1Q10 | |||||
Million Ch$ | Operating Revenues | Operating Costs | Operating Income | Operating Revenues | Operating Costs | Operating Income |
Endesa Chile (*) | 660,811 | (371,345) | 289,466 | 529,906 | (354,506) | 175,400 |
Cachoeira (**) | 18,573 | (8,269) | 10,304 | 24,372 | (9,877) | 14,495 |
Fortaleza (***) | 29,874 | (22,048) | 7,826 | 35,051 | (17,339) | 17,713 |
Cien (**) | 20,742 | (8,025) | 12,718 | 1,495 | (7,445) | (5,950) |
Chilectra | 282,155 | (249,794) | 32,361 | 211,580 | (188,254) | 23,327 |
Edesur | 94,033 | (83,997) | 10,036 | 75,888 | (69,059) | 6,829 |
Distrilima (Edelnor) | 76,238 | (60,067) | 16,171 | 75,536 | (59,233) | 16,303 |
Ampla | 240,789 | (212,501) | 28,288 | 273,545 | (213,388) | 60,158 |
Investluz (Coelce) | 152,483 | (124,142) | 28,341 | 202,221 | (161,928) | 40,293 |
Codensa | 168,388 | (127,064) | 41,325 | 186,619 | (147,103) | 39,517 |
CAM Ltda. | 30,867 | (34,424) | (3,557) | 25,543 | (26,354) | (811) |
Inmobiliaria Manso de Velasco Ltda. | 786 | (762) | 24 | 2,031 | (1,281) | 749 |
Synapsis Soluciones y Servicios IT Ltda. | 16,145 | (14,284) | 1,860 | 16,408 | (14,777) | 1,631 |
Enersis Holding and other investment vehicles | 2,885 | (7,192) | (4,307) | 2,851 | (6,974) | (4,123) |
Consolidation Adjustments | (172,492) | 165,886 | (6,607) | (191,147) | 190,878 | (269) |
Total Consolidation | 1,622,277 | (1,158,029) | 464,249 | 1,471,900 | (1,086,638) | 385,262 |
Pg. 41
PRESS RELEASE 1Q 2010 |
1Q10 | |||
Thousand US$ | Operating Revenues | Operating Costs | Operating Income |
Endesa Chile (*) | 1,021,373 | (683,296) | 338,077 |
Cachoeira (**) | 46,975 | (19,037) | 27,938 |
Fortaleza (***) | 67,560 | (33,420) | 34,141 |
Cien (**) | 2,882 | (14,350) | (11,468) |
Chilectra | 407,812 | (362,851) | 44,961 |
Edesur | 146,271 | (133,108) | 13,163 |
Distrilima (Edelnor) | 145,593 | (114,170) | 31,423 |
Ampla | 527,248 | (411,296) | 115,952 |
Investluz (Coelce) | 389,772 | (312,109) | 77,663 |
Codensa | 359,701 | (283,534) | 76,167 |
CAM Ltda. | 49,234 | (50,797) | (1,563) |
Inmobiliaria Manso de Velasco Ltda. | 3,914 | (2,470) | 1,444 |
Synapsis Soluciones y Servicios IT Ltda. | 31,625 | (28,482) | 3,143 |
Enersis Holding and other investment vehicles | 5,495 | (13,441) | (7,946) |
Consolidation Adjustments | (368,428) | 367,910 | (518) |
Total Consolidation | 2,837,028 | (2,094,451) | 742,577 |
(*) 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 |
Pg. 42
PRESS RELEASE 1Q 2010 |
Ownership of the Company as of March 31st, 2010
TOTAL SHAREHOLDERS: 7,993
Conference Call Invitation
Enersis is pleased to invite you to participate in aConference Call with the management to review the results for the period,on Friday, April 23rd, 2010, 16:30 p.m. Eastern Time (16:30 p.m. Chilean Time). There will be a question and answer session following management's comments. Representing Enersis will be Mr. Alfredo Ergas, Chief Financial Officer and Mr. Ricardo Alvial, Risk Management & I.R. Director.
To participate, please dial +1 (617) 213-4868 or +1 (888) 713-4216 (toll free USA), approximately 10 minutes prior to the scheduled start time, Passcode ID: 80943757
To access the phone replay, please dial +1 (617) 801-6888 or +1 (888) 286-8010 (toll free USA) Passcode ID: 39745477.
For this Conference Call you can access previously to the pre-registration site athttps://www.theconferencingservice.com/prereg/key.process?key=PUDWTG6PA and make your registration quicker. If not, please connect approximately 15 minutes prior to the scheduled start time. You can also access to the conference call replay through our website athttp://phx.corporate-ir.net/phoenix.zhtml?p=iroleventDetails&c=83615&eventID=3023811.
Pg. 43
PRESS RELEASE 1Q 2010 |
Contact Information
For further information, please contact us:
Ricardo Alvial Risk Management and IR Director ram@e.enersis.cl 56 (2) 353 4682 | Rodrigo Pérez Head of Investor Relations raap@e.enersis.cl 56 (2) 353 4554 |
Carmen Poblete Shares Department Associate cpt@e.enersis.cl 56 (2) 353 4447 | Denisse Labarca Investor Relations Associate dla@e.enersis.cl 56 (2) 353 4492 | Bárbara López Investor Relations Associate bllf@e.enersis.cl 56 (2) 353 4552 | Cristián Del Sante InvestorRelations Associate cdb@e.enersis.cl 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 an d involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of various factors. These factors include a decline in the equity capital markets of the United States or Chile, an increase in the market rates of interest in the United States or elsewhere, adverse decisions by government regulators in Chile or elsewhere and other factors described in Enersis’ Annual Report on Form 20-F. Readers are cautioned not to place undue reliance on those forward-looking statements, which state only as of their dates. Enersis undertakes no obligation to release publicly the result of any revisions to these forward-looking statements.
Pg. 44
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: April 23, 2010