12 Mar 2010 07:00
Andes Energia plc ("Andes")
(AIM:AEN)
Unaudited results for
Empresa Distribuidora de Electricidad de Mendoza Sociedad Anonima ("EDEMSA")
for the year ended 31 December 2009
EDEMSA, the electricity distributor for the province of Mendoza in which Andes has a 51 per cent. indirect interest, has published its financial results for the year ended 31 December 2009. This information, which has been prepared under Argentine GAAP and in Spanish, is available from the web-site of the Argentine Comision Nacional de Valores at www.cnv.gov.ar. This announcement sets out the unaudited financial information of EDEMSA for the same period prepared under IFRS in Argentine Pesos (AR$).
Financial Overview of EDEMSA
EDEMSA reported a profit for the year of AR$9 million (2008: AR$9 million loss).
Sales for the year increased by 18% over 2008, to AR$503 million. This increase resulted primarily from a 2.36% increase in the demand for energy, the pass through of increases of 12.1% in the cost of energy purchased, lower energy losses and the benefit of increases in electricity tariffs implemented on 1 August and 1 December 2009.
Gross profit has increased to AR$121 million from AR$100 million, with operating profit of AR$40 million up from AR$25 million in 2008 and EBITDA of AR$68 million (2008: AR$53 million).
The finance costs for the year have been adversely impacted by the weakening of the AR$ against the US$, resulting in an exchange loss of AR$26 million for the year. Whilst EDEMSA has endeavoured to enter into forward contracts to hedge this risk, the high cost and lack of available contracts with long term future maturities has led EDEMSA to also establish a trust with the objective of investing in US$ denominated assets. These investments yielded a gain of AR$17 million in 2009 and at the end of the year the carrying value of investments held in the trust was AR$63 million.
Furthermore, EDEMSA recognised a revenue gain of AR$19.2 million to reflect adjustments to amounts due to CAMMESA relating to certain liabilities that were declared non-refundable.
As referred above, the first new tariffs for the third review period were implemented on 1 August 2009. This resulted in an average increase of between 0% and 15% for residential users, 2% and 22% for commercial users and represented an average increase of approximately 12%. The second stage of the new tariffs for the third review period were implemented on 1 December 2009 at the same levels implemented on 1 August 2009, representing a further average increase of approximately 12%.
Neil Bleasdale, EDEMSA President commented, "Whilst the delay in the implementation of the tariff increases in 2009 adversely impacted the results for the year, the results for 2010 will benefit from these increases for the full year, which hopefully will lead to stability and economic and financial sustainability in the long term.".
balance sheet
(All amounts in Argentine Pesos (AR$))
|
| 31 December 2009 | 31 December 2008 |
| ASSETS |
|
|
| Non-current assets |
|
|
| Property, plant and equipment | 527,156,391 | 515,966,820 |
| Intangible assets | 156,705,088 | 156,705,088 |
| Available for sale investments | 1,730,972 | 847,632 |
| Other investments | 63,424,375 | 21,594,778 |
| Deferred income tax assets and other credits | 32,278,995 | 32,265,713 |
|
| 781,295,821 | 727,380,031 |
| Current assets |
|
|
| Inventories | 15,655,578 | 16,139,939 |
| Trade and other receivables | 107,384,396 | 99,517,552 |
| Available for sale investments | - | 480,647 |
| Cash and cash equivalents | 16,412,554 | 6,117,900 |
|
| 139,452,528 | 122,256,038 |
|
|
|
|
| Total assets | 920,748,349 | 849,636,069 |
|
|
|
|
| EQUITY Capital and reserves |
|
|
| Share capital | 462,585,254 | 462,585,254 |
| Fair value and other reserves | 581,435 | (301,905) |
| Retained earnings and other reserves | (17,295,655) | (26,254,831) |
| Legal reserve | 16,856,263 | 16,856,263 |
| Total equity | 462,727,297 | 452,884,781 |
|
LIABILITIES Non-current liabilities |
|
|
| Borrowings | 235,131,070 | 228,720,522 |
| Trade and other payables | 536,252 | - |
|
| 235,667,322 | 228,720,522 |
| Current liabilities Trade and other payables | 158,696,755 | 120,935,572 |
| Borrowings | 25,156,358 | 17,111,903 |
| Provisions | 38,500,617 | 29,983,291 |
|
| 222,353,730 | 168,030,766 |
|
|
|
|
| Total liabilities | 458,021,052 | 396,751,288 |
|
|
|
|
| Total equity and liabilities | 920,748,349 | 849,636,069 |
income statement
(All amounts in Argentine Pesos (AR$))
|
| Year ended | Year ended |
|
| 31 December 2009 | 31 December 2008 |
| Sales | 502,909,551 | 427,580,215 |
| Cost of sales | (381,686,136) | (327,651,213) |
| Gross profit | 121,223,415 | 99,929,002 |
| Selling and marketing costs | (47,574,388) | (36,862,395) |
| Administrative expenses | (55,604,060) | (42,641,391) |
| Other operating income | 21,623,639 | 4,726,706 |
| Operating profit | 39,668,606 | 25,151,922 |
| Finance costs net | (21,880,610) | (39,597,163) |
| Profit/(loss) before tax | 17,787,996 | (14,445,241) |
| Income tax | (8,828,820) | 5,982,702 |
| Profit/(loss) for the year | 8,959,176 | (8,462,539) |
|
|
|
|
statement of changes in shareholders' equity
(All amounts in Argentine Pesos (AR$))
|
| Share capital | Fair value and other reserves | Retained earnings | Legal reserve | Total equity |
| Balance at 1 January 2008 | 462,585,254 | 674,635 | (939,033) | 3,004 | 462,323,860 |
| Net expense recognised directly in equity | - | (976,540) | - | - | (976,540) |
| Transfer from retained earnings | - | - | (16,853,259) | 16,853,259 | - |
| Loss for the year | - | - | (8,462,539) | - | (8,462,539) |
| Balance at 31 December 2008 | 462,585,254 | (301,905) | (26,254,831) | 16,856,263 | 452,884,781 |
|
|
|
|
|
|
|
| Balance at 1 January 2009 | 462,585,254 | (301,905) | (26,254,831) | 16,856,263 | 452,884,781 |
| Net income recognised directly in equity | - | 883,340 | - | - | 883,340 |
| Profit for the year | - | - | 8,959,176 | - | 8,959,176 |
| Balance at 31 December 2009 | 462,585,254 | 581,435 | (17,295,655) | 16,856,263 | 462,727,297 |
cash flow statement
(All amounts in Argentine Pesos (AR$))
|
| Year ended | Year ended |
|
| 31 December 2009 | 31 December 2008 |
| Cash flows from operating activities |
|
|
| Net cash generated from operating activities | 96,833,719 | 40,049,636 |
|
|
|
|
| Cash flows from investing activities |
|
|
| Purchases of property, plant and equipment | (29,664,600) | (11,695,779) |
| Purchase of financial assets | (41,348,950) | (22,040,925) |
| Grant received | 5,363,598 | 2,565,209 |
| Net cash used in investing activities | (65,649,952) | (31,171,495) |
|
|
|
|
| Cash flows from financing activities |
|
|
| Debt repaid | (20,889,113) | (8,499,059) |
| Net cash used in financing activities | (20,889,113) | (8,499,059) |
|
|
|
|
| Net increase in cash and bank overdrafts | 10,294,654 | 379,082 |
| Cash and bank overdrafts at beginning of the year | 6,117,900 | 5,738,818 |
| Cash and bank overdrafts at the end of the year | 16,412,554 | 6,117,900 |
1. Basis of preparation
The report for the year ended 31 December 2009 is unaudited and has been prepared in accordance with International Financial Reporting Standards ("IFRS") on a basis consistent with the accounting policies used in the preparation of the financial information of the ultimate parent company, Andes Energia plc, for the year ended 31 December 2008.
Enquiries:
Andes Energia plc Tel :020 7495 5326
Neil Bleasdale, Chairman
Nigel Duxbury, Finance Director
Arbuthnot Securities Tel: 020 7012 2000
James Steel
Antonio Bossi
Bishopsgate Communications Tel: 020 7562 3350
Nick Rome
Michael Kinirons