Last checked at 7 Nov 2013 09:38
ENDESA, S.A.and Subsidiaries
Consolidated Management Reportfor the nine-monthperiod ended 30 September 2013
Madrid, 6 November 2013
Consolidated results
ENDESA reported net income of Euros 1,551 million in the nine-month period ended 30 September 2013
ENDESA reported net income of Euros 1,551 million in the first nine months of 2013, 6.7% less than in the same period the previous year, mainly due to a Euros 233 million reduction in net income at the Spain and Portugal business following the introduction on 1 January 2013 of the energy sustainability tax measures stipulated in Law 15/2012, of 27 December, which triggered an increase in costs of Euros 490 million. Another cause of this overall reduction are the urgent measures contained in Royal Decree Law 2/2013, of 1 February and in Royal Decree Law 9/2013, of 12 July, which caused net income in the business unit to decline Euros 81 million, in addition to the approximately Euros 400 million arising from the regulatory measures introduced in 2012.
These new measures, which began to be implemented from January 2013 had, a negative impact on net income for the nine-month period of Euros 415 million
It is important to stress that these impacts do not include those that may arise, on 2013, from the implementation of the various regulatory measures that are currently pending approval as explained later in the analysis of the regulatory aspects of the business in Spain and Portugal.
The poor performance of net income in the business in Spain and Portugal was partially offset by the Euros 122 million increase in net income at the business in Latin America. This was largely due to the effects of Resolution 250/2013 approved on 7 May 2013 by Argentina's Energy Secretary, which recognised the payment to Empresa Distribuidora Sur, S.A. of Euros 333 million as compensation for the cost fluctuations which had not been passed on to the end user between 2007 and February 2013 in relation to the amounts to be applied under the Cost Monitoring Mechanism (MMC) adjustment, which impacted net income to the sum of Euros 94 million.
The table below shows the breakdown of ENDESA's net income between its two business and the year-on-year change:
| ENDESA net income, January-September 2013 | |||||||
| Millions | % change | % of total net | |||||
| of Euros | 3Q12 | income | |||||
| Spain and Portugal | 1,036 | (18.4) | 66.8 | ||||
| Latin America | 515 | 31.0 | 33.2 | ||||
| TOTAL | 1,551 | (6.7) | 100.0 | ||||
For additional information please refer to: http://www.endesa.com/en/accionistas/home
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