12 Aug 2011 07:00
Andes Energia plc ("Andes")
(AIM:AEN)
Unaudited results for
Empresa Distribuidora de Electricidad de Mendoza Sociedad Anonima ("EDEMSA")
for the six months ending 30 June 2011
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 six months ending 30 June 2011. 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
In the first six months of 2011 EDEMSA reported a profit of AR$11 million, compared to a profit of AR$27 million in the first six months of 2010. However, it should be noted that a one time gain of AR$21 million was recognised in the comparable period last year for the surplus resulting from the Total Return Swap agreement ("TRS").
Sales for the first six months of 2011 increased by AR$18 million over the first six months of 2010, representing an increase of 5%. This increase is due to the pass through of increases in energy costs and a slight increase in demand.
Gross profits in the first six months were AR$103 million compared to AR$103 million in the first six months of 2010. Inflationary pressure resulted in operating profit dropping from AR$47 million to AR$30 million, but should be considered in the context of the fact that current tariffs are those based on 2008 cost values. The main increases in costs arose in salaries and other employee related costs and the costs of third party services. The company recorded EBITDA of AR$44 million for the first six months of 2011 compared to AR$61 million for the corresponding period last year.
Finance costs for the period were AR$13 million compared to AR$25 million for the comparable period last year after adjusting the comparable period's costs for the one time surplus resulting from the TRS transaction referred above.
Neil Bleasdale, EDEMSA President commented, "We are pleased with the results which clearly reflect the benefit of the debt buy back. We are also hoping that the introduction of a polynomial formula that recognises increases in costs due to inflation will be implemented before the end of the year.".
(Rate of exchange at 30 June 2011 AR$4.11 to US$1.00)
balance sheet
(All amounts in Argentine Pesos)
30 June 2011 | 30 June 2010 | 31 December 2010 | |
ASSETS |
|
|
|
Non-current assets |
|
|
|
Property, plant and equipment | 547,089,563 | 531,539,504 | 537,461,019 |
Intangible assets | 156,705,087 | 156,705,087 | 156,705,088 |
Available for sale investments | 29,197 | 1,640,404 | 29,197 |
Other investments | 561,344 | 1,308,181 | 676,395 |
Deferred income tax assets and other credits | 1,502,441 | 18,553,373 | 1,502,442 |
| 705,887,632 | 709,746,549 | 696,374,141 |
Current assets |
|
|
|
Inventories | 27,486,792 | 18,843,835 | 17,390,876 |
Trade and other receivables | 115,580,034 | 109,521,198 | 109,680,389 |
Available for sale investments | 7,167,041 | - | - |
Cash and cash equivalents | 23,186,454 | 17,208,086 | 21,611,103 |
| 173,420,321 | 145,573,119 | 148,682,368 |
|
|
| |
Total assets | 879,307,953 | 855,319,668 | 845,056,509 |
| EQUITY | |||
Capital and reserves | |||
Share capital | 462,585,254 | 462,585,254 | 462,585,254 |
Fair value and other reserves | 18,195,754 | 490,867 | - |
Retained earnings and other reserves | 9,525,365 | 9,742,178 | 18,094,400 |
Legal reserve | 17,813,935 | 16,856,263 | 16,856,263 |
Total equity | 508,120,308 | 489,674,562 | 497,535,917 |
LIABILITIES | |||
Non-current liabilities | |||
Deferred income tax liabilities | 7,933,911 | - | 5,273,378 |
Borrowings | 69,023,295 | 79,526,997 | 78,904,216 |
Trade and other payables | 443,439 | 505,314 | 474,377 |
77,400,645 | 80,032,311 | 84,651,971 | |
Current liabilities | |||
Trade and other payables | 196,263,372 | 172,030,500 | 170,933,306 |
Borrowings | 64,044,379 | 66,889,648 | 58,896,390 |
Provisions | 33,479,249 | 46,692,647 | 33,038,925 |
293,787,000 | 285,612,795 | 262,868,621 | |
| |||
Total liabilities | 371,187,645 | 365,645,106 | 347,520,592 |
|
|
| |
Total equity and liabilities | 879,307,953 | 855,319,668 | 845,056,509 |
income statement
(All amounts in Argentine Pesos)
| Six months ended | Six months ended | Year ended |
| 30 June 2011 | 30 June 2010 | 31 December 2010 |
Sales | 345,778,218 | 328,257,916 | 647,117,106 |
Cost of sales | (243,158,881) | (225,458,942) | (442,055,978) |
Gross profit | 102,619,337 | 102,798,974 | 205,061,128 |
Selling and marketing costs | (32,729,354) | (27,957,396) | (57,503,368) |
Administrative expenses | (43,028,758) | (29,921,512) | (69,935,320) |
Other operating income | 2,832,869 | 1,943,237 | 11,963,752 |
Operating profit | 29,694,094 | 46,863,303 | 89,586,192 |
Finance costs | (13,277,157) | (4,121,652) | (12,968,010) |
Profit before tax | 16,416,937 | 42,741,651 | 76,618,182 |
Income tax | (5,832,546) | (15,703,818) | (41,228,127) |
Profit for the period | 10,584,391 | 27,037,833 | 35,390,055 |
|
statement of changes in shareholders' equity
(All amounts in Argentine Pesos)
| Share Capital | Fair value and other reserves | Retained earnings | Legal reserve | Total equity |
Balance at 1 January 2010 | 462,585,254 | 581,435 | (17,295,655) | 16,856,263 | 462,727,297 |
Net expense recognised directly in equity | - | (90,568) | - | - | (90,568) |
Profit for the period | - | - | 27,037,833 | - | 27,037,833 |
Balance at 30 June 2010 | 462,585,254 | 490,867 | 9,742,178 | 16,856,263 | 489,674,562 |
|
|
|
|
|
|
Balance at 1 January 2011 | 462,585,254 | - | 18,094,400 | 16,856,263 | 497,535,917 |
Transfer to other reserves | - | 18,195,754 | (18,195,754) | - | - |
Transfer to legal reserve | - | - | (957,672) | 957,672 |
|
Profit for the period | - | - | 10,584,391 | - | 10,584,391 |
Balance at 30 June 2011 | 462,585,254 | 18,195,754 | 9,525,365 | 17,813,935 | 508,120,308 |
cash flow statement
(All amounts in Argentine Pesos)
| Six months ended | Six months ended | Year ended |
| 30 June 2011 | 30 June 2010 | 31 December 2010 |
Cash flows from operating activities |
|
|
|
Net cash generated from operating activities | 41,023,176 | 64,893,762 | 102,591,316 |
| |||
Cash flows from investing activities | |||
Purchases of property, plant and equipment | (18,640,264) | (10,928,512) | (24,677,374) |
(Purchase)/sale of financial assets | (7,051,990) | 62,116,194 | 63,868,320 |
Grant received | 2,803,074 | - | - |
Net cash (used in)/generated from investing activities | (22,889,180) | 51,187,682 | 39,190,946 |
| |||
Cash flows from financing activities | |||
Debt | (16,558,645) | (115,285,912) | (136,583,713) |
Net cash used in financing activities | (16,558,645) | (115,285,912) | (136,583,713) |
| |||
Net increase in cash and cash equivalents | 1,575,351 | 795,532 | 5,198,549 |
Cash and bank overdrafts at beginning of the period | 21,611,103 | 16,412,554 | 16,412,554 |
Cash and cash equivalents at the period end | 23,186,454 | 17,208,086 | 21,611,103 |
1. Basis of preparation
The report for the six months ended 30 June 2011 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 2010.
Enquiries:
Andes Energia plc Tel: +44 207 495 5326
Luis Alvarez Poli, Chief Executive Officer
Nigel Duxbury, Finance Director
Arbuthnot Securities Tel: +44 207 012 2000
Antonio Bossi
Ed Groome
Buchanan Tel: +44 207 466 5000
Tim Thompson
Ben Romney