22nd May 2012 07:00
Andes Energia plc ("Andes")
(AIM:AEN)
Unaudited results for
Empresa Distribuidora de Electricidad de Mendoza Sociedad Anonima ("EDEMSA")
for the quarter ended 31 March 2012
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 quarter ending 31 March 2012. This information, which has been prepared under IFRS and in Spanish, is available from the web-site of the Argentine Comision Nacional de Valores at www.cnv.gob.ar. This announcement sets out the unaudited financial information of EDEMSA in Argentine Pesos (AR$) for the same period prepared under IFRS on the basis outlined in notes 1 and 2 below.
Financial Overview of EDEMSA
In the first quarter of 2012 EDEMSA reported a profit of AR$7 million, compared to a profit of AR$7 million in the first quarter of 2011.
Sales for the first quarter of 2012 increased to AR$223 million, representing an increase of 25% on the corresponding period last year. This increase is mainly due to the pass through of increases in energy costs and a 8% increase in the demand for energy.
Gross profits increased from AR$55 million in the first quarter 2011 to AR$58 million in the first quarter 2012, with operating profit increasing from AR$17 million to AR$19 million, which should be considered in the context of the fact that current tariffs are those based on 2008 cost values. The company recorded EBITDA of AR$27 million for the first quarter of 2012 compared to AR$24 million for the corresponding period last year.
Neil Bleasdale, EDEMSA President commented, "Whilst the results for the quarter show an improvement in quarter on quarter performance it is important that the introduction of a tariff polynomial formula that recognises increases in costs due to inflation is approved to maintain stability and provide economic and financial strength in the long term".
balance sheet
(All amounts in Argentine Pesos)
31 March 2012 | 31 March 2011 | 31 December 2011 | |
ASSETS |
|
|
|
Non-current assets |
|
|
|
Property, plant and equipment | 578,141,954 | 541,164,325 | 574,144,950 |
Intangible assets | 156,705,085 | 156,705,087 | 156,705,086 |
Available for sale investments | 29,197 | 29,197 | 29,197 |
Other investments | - | 669,328 | - |
Deferred income tax assets and other credits | 44,090,399 | 52,562,274 | 60,787,931 |
Other credits | 12,154,687 | 1,502,443 | - |
| 791,121,322 | 752,632,654 | 791,667,164 |
Current assets |
|
|
|
Inventories | 29,919,877 | 19,713,847 | 29,939,465 |
Trade and other receivables | 150,043,195 | 119,970,735 | 146,886,069 |
Available for sale investments | 18,291,134 | 2,520,544 | 15,979,126 |
Cash and cash equivalents | 27,677,867 | 21,024,856 | 31,600,452 |
| 225,932,073 | 163,229,982 | 224,405,112 |
|
|
| |
Total assets | 1,017,053,395 | 915,862,636 | 1,016,072,276 |
| EQUITY | |||
Capital and reserves | |||
Share capital | 462,585,254 | 462,585,254 | 462,585,254 |
Fair value and other reserves | - | - | 18,195,754 |
Retained earnings and other reserves | 4,096,152 | 11,391,155 | (3,193,428) |
Legal reserve | 17,813,935 | 16,856,263 | 17,813,935 |
Reserves | 18,195,754 | - | - |
Total equity | 502,691,095 | 490,832,672 | 495,401,515 |
LIABILITIES | |||
Non-current liabilities | |||
Deferred income tax liabilities | 33,202,147 | 52,767,114 | 36,389,447 |
Borrowings | 59,681,787 | 74,345,556 | 90,616,385 |
Trade and other payables | 21,108,796 | 17,719,020 | 21,124,264 |
113,992,730 | 144,831,690 | 148,130,096 | |
Current liabilities | |||
Trade and other payables | 228,160,791 | 188,476,335 | 223,641,336 |
Borrowings | 119,409,629 | 60,398,502 | 104,715,789 |
Provisions | 52,799,150 | 31,323,437 | 44,183,540 |
400,369,570 | 280,198,274 | 372,540,665 | |
| |||
Total liabilities | 514,362,300 | 425,029,964 | 520,670,761 |
|
|
| |
Total equity and liabilities | 1,017,053,395 | 915,862,636 | 1,016,072,276 |
income statement
(All amounts in Argentine Pesos)
| Quarter ended | Quarter ended | Year ended |
| 31 March 2012 | 31 March 2011 | 31 December 2011 |
Sales | 223,087,808 | 177,918,823 | 708,795,260 |
Cost of sales | (165,398,796) | (123,367,889) | (512,061,232) |
Gross profit | 57,689,012 | 54,550,934 | 196,734,028 |
Selling and marketing costs | (17,788,539) | (16,457,161) | (70,157,459) |
Administrative expenses | (22,745,187) | (22,203,280) | (94,023,255) |
Other operating income | 1,926,013 | 1,065,896 | 11,823,011 |
Operating profit | 19,081,299 | 16,956,389 | 44,376,325 |
Finance costs | (7,803,765) | (6,820,809) | (37,110,936) |
Profit before tax | 11,277,534 | 10,135,580 | 7,265,389 |
Income tax | (3,987,954) | (3,613,041) | 3,825,993 |
Profit for the period | 7,289,580 | 6,522,539 | 11,091,382 |
|
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 2011 | 462,585,254 | - | 4,868,616 | 16,856,263 | 484,310,133 |
Profit for the period | - |
| 6,522,539 | - | 6,522,539 |
Balance at 31 March 2011 | 462,585,254 | - | 11,391,155 | 16,856,263 | 490,832,672 |
|
|
|
|
|
|
Balance at 1 January 2012 | 462,585,254 | 18,195,754 | (3,193,428) | 17,813,935 | 495,401,515 |
Profit for the period | - |
| 7,289,580 | - | 7,289,580 |
Balance at 31 March 2012 | 462,585,254 | 18,195,754 | 4,096,152 | 17,813,935 | 502,691,095 |
cash flow statement
(All amounts in Argentine Pesos)
| Quarter ended | Quarter ended | Year ended |
| 31 March 2012 | 31 March 2011 | 31 December 2011 |
Cash flows from operating activities |
|
|
|
Net cash generated from operating activities | 28,945,292 | 16,405,966 | 43,416,268 |
| |||
Cash flows from investing activities | |||
Purchases of property, plant and equipment | (8,549,099) | (8,124,171) | (47,013,369) |
(Purchase)/sale of financial assets | - | (2,513,477) | (15,302,732) |
Grant received | 2,887,164 | 2,803,074 | 2,803,074 |
Net (cash used in)/generated from investing activities | (5,661,935) | (7,834,574) | (59,513,027) |
| |||
Cash flows from financing activities | |||
Debt | (27,205,942) | (9,157,639) | 26,086,108 |
Net cash used in financing activities | (27,205,942) | (9,157,639) | 26,086,108 |
| |||
Net increase in cash and cash equivalents | (3,922,585) | (586,247) | 9,989,349 |
Cash and bank overdrafts at beginning of the period | 31,600,452 | 21,611,103 | 21,611,103 |
Cash and cash equivalents at the period end | 27,677,867 | 21,024,856 | 31,600,452 |
1. Basis of preparation
The report for the quarter ended 31 March 2012 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.
2. Adoption of IFRS
With effect from 1 January 2012 the adoption of International Financial Reporting Standards ("IFRS") for EDEMSA is mandatory. Consequently, the transition date to IFRS for EDEMSA as provided in IFRS 1 "First-time Adoption of IFRS" is 31 December 2010. On adoption of IFRS by EDEMSA the carrying value of fixed assets restated in accordance with current accounting standards is their deemed cost under IFRS 1 and EDEMSA has chosen not to apply IFRS 3 in calculating the carrying value of intangible assets at the transition date.
The acquisition of EDEMSA by the ultimate parent company was accounted for as a business combination under IFRS and the acquired assets and liabilities were measured at the acquisition date at fair value.
As referred above the unaudited financial information presented in this announcement has been prepared in accordance with IFRS on a basis consistent with the accounting policies used in the preparation of the financial information of the ultimate parent company. This has resulted in certain reclassifications between the EDEMSA IFRS financial information used in the preparation of the group accounts and the EDEMSA IFRS financial information reported by EDEMSA. These reclassifications arise primarily in non-current assets, deferred tax, depreciation and amortisation.
Enquiries:
Andes Energia plc Tel: +44 207 495 5326
Luis Alvarez Poli, Chief Executive Officer
Nigel Duxbury, Finance Director
Westhouse Securities Tel: +44 207 601 6100
Antonio Bossi
Buchanan Tel: +44 207 466 5000
Tim Thompson
Ben Romney
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