12th Aug 2009 07:00
Andes Energia plc ("Andes")
(AIM:AEN)
Unaudited results for
Empresa Distribuidora de Electricidad de Mendoza Sociedad Anonima ("EDEMSA")
for the sixth months ended 30 June 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 six months ended 30 June 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 loss for the six months of AR$11.2 million (6 months to 30 June 2008: AR$9.2 million profit)
Sales in the period increased by 20.6% over the equivalent period last year, to AR$243 million. This increase resulted primarily from a 3.5% increase in the demand for energy and the pass through of an increase in the cost of energy purchased.
Although the gross profit has increased to AR$60.4 million from AR$49.3 million, the increase in operating expenses resulted in an operating profit of AR$12.6 million down from AR$16.1 million in the equivalent period last year, with EBITDA of AR$26.6 million (6 months to 30 June 2008: AR$29.7 million).
The finance costs for the year have been adversely impacted by the weakening of the AR$ against the US$, resulting in a non-cash exchange loss of AR$24.4 million for the period. The company continues to evaluate all options available to it to minimise this currency risk. The company has established a trust with the objective of investing in US$ denominated assets and as previously mentioned has secured shareholders' approval to issue up to an equivalent of US$80 million of debt instruments denominated in AR$ or other foreign currencies at the Board's discretion, which would give the company more flexibility to manage this currency risk.
On 22 July 2009 decree number 1569-09 was published in the Official Gazette of the Province of Mendoza, which approved the procedure for the calculation of the tariff for the third review period. At the date of this announcement EDEMSA has not yet been advised of the percentage increase, which will be calculated by EPRE, the provincial regulator. The Board believes this notification will be forthcoming in the near future.
Neil Bleasdale, EDEMSA President commented, "We are pleased that the Government has approved the procedure for the calculation of the tariff increase. The tariff schedules will be published once decided by the Ministry of Infrastructure, Housing and Transport and we will update the market with more details once published.".
balance sheet
(All amounts in Argentine Pesos (AR$))
|
At |
At |
At |
|
|
30 June 2009 |
30 June 2008 |
31 December 2008 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|
ASSETS |
|||
|
Non-current assets |
|||
|
Property, plant and equipment |
516,132,551 |
510,221,452 |
515,966,820 |
|
Intangible assets |
156,705,089 |
156,705,089 |
156,705,088 |
|
Available for sale investments |
1,124,652 |
1,695,612 |
847,632 |
|
Other investments |
47,089,095 |
- |
21,594,778 |
|
Deferred income tax assets and other credits |
40,833,392 |
18,600,187 |
32,265,713 |
|
761,884,779 |
687,222,340 |
727,380,031 |
|
|
Current assets |
|||
|
Inventories |
12,893,944 |
16,026,800 |
16,139,939 |
|
Trade and other receivables |
99,093,164 |
80,241,078 |
99,517,552 |
|
Available for sale investments |
1,595,287 |
228,046 |
480,647 |
|
Cash and cash equivalents |
17,536,645 |
27,252,848 |
6,117,900 |
|
131,119,040 |
123,748,772 |
122,256,038 |
|
|
Total assets |
893,003,819 |
810,971,112 |
849,636,069 |
|
EQUITY |
|||
|
Capital and reserves |
|||
|
Share capital |
462,585,254 |
462,585,254 |
462,585,254 |
|
Fair value and other reserves |
10,263 |
542,558 |
(301,905) |
|
Retained earnings and other reserves |
(37,434,494) |
(8,563,153) |
(26,254,831) |
|
Legal reserve |
16,856,263 |
16,856,263 |
16,856,263 |
|
Total equity |
442,017,286 |
471,420,922 |
452,884,781 |
|
LIABILITIES |
|||
|
Non-current liabilities |
|||
|
Borrowings |
234,617,106 |
197,861,613 |
228,720,522 |
|
234,617,106 |
197,861,613 |
228,720,522 |
|
|
Current Liabilities |
|||
|
Trade and other payables |
145,042,948 |
103,864,271 |
120,935,572 |
|
Borrowings |
40,123,524 |
13,479,336 |
17,111,903 |
|
Provisions |
31,202,955 |
24,344,970 |
29,983,291 |
|
216,369,427 |
141,688,577 |
168,030,766 |
|
|
Total liabilities |
450,986,533 |
339,550,190 |
396,751,288 |
|
Total equity and liabilities |
893,003,819 |
810,971,112 |
849,636,069 |
income statement
(All amounts in Argentine Pesos (AR$))
|
Six months ended |
Six months ended |
Year ended |
|
|
30 June 2009 |
30 June 2008 |
31 December 2008 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|
Sales |
243,371,581 |
201,823,441 |
427,580,215 |
|
Cost of sales |
(182,887,541) |
(152,486,710) |
(327,651,213) |
|
Gross profit |
60,484,040 |
49,336,731 |
99,929,002 |
|
Selling and marketing costs |
(20,720,819) |
(17,026,923) |
(36,862,395) |
|
Administrative expenses |
(28,564,773) |
(19,074,618) |
(42,641,391) |
|
Other operating expenses |
1,441,803 |
2,892,635 |
4,726,706 |
|
Operating profit |
12,640,251 |
16,127,825 |
25,151,922 |
|
Finance costs |
(29,398,439) |
(1,915,859) |
(39,597,163) |
|
(Loss)/profit before tax |
(16,758,188) |
14,211,966 |
(14,445,241) |
|
Income tax |
5,578,525 |
(4,982,827) |
5,982,702 |
|
(Loss)/profit for the period |
(11,179,663) |
9,229,139 |
(8,462,539) |
statement of changes in shareholders' equity
(All amounts in Argentine Pesos (AR$))
|
Share capital |
Fair value and other reserves |
Retained earnings |
Legal reserve |
Total equity |
|
|
Balance at 1 January 2008 (Unaudited) |
462,585,254 |
674,635 |
(939,033) |
3,004 |
462,323,860 |
|
Net expense recognised directly in equity |
- |
(132,077) |
- |
- |
(132,077) |
|
Transfer from retained earnings |
- |
- |
(16,853,259) |
16,853,259 |
- |
|
Gain for the period |
- |
- |
9,229,139 |
- |
9,229,139 |
|
Balance at 30 June 2008 (Unaudited) |
462,585,254 |
542,558 |
(8,563,153) |
16,856,263 |
471,420,922 |
|
Net expense recognised directly in equity |
- |
(844,463) |
- |
- |
(844,463) |
|
Loss for the period |
- |
- |
(17,691,678) |
- |
(17,691,678) |
|
Balance at 31 December 2008 (Unaudited) |
462,585,254 |
(301,905) |
(26,254,831) |
16,856,263 |
452,884,781 |
|
Net income recognised directly in equity |
- |
312,168 |
- |
- |
312,168 |
|
Loss for the period |
- |
- |
(11,179,663) |
- |
(11,179,663) |
|
Balance at 30 June 2009 (Unaudited) |
462,585,254 |
10,263 |
(37,434,494) |
16,856,263 |
442,017,286 |
cash flow statement
(All amounts in Argentine Pesos (AR$))
|
Six months ended |
Six months ended |
Year ended |
|
|
30 June 2009 |
30 June 2008 |
31 December 2008 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|
Cash flows from operating activities |
|||
|
Net cash generated from operating activities |
49,997,137 |
30,621,387 |
40,049,636 |
|
Cash flows from investing activities |
|||
|
Purchases of property, plant and equipment |
(7,075,561) |
(7,337,940) |
(11,695,779) |
|
(Purchase)/sale of financial assets |
(26,573,809) |
(197,063) |
(22,040,925) |
|
Grants received |
5,363,596 |
2,565,209 |
2,565,209 |
|
Net cash used in investing activities |
(28,285,774) |
(4,969,794) |
(31,171,495) |
|
Cash flows from financing activities |
|||
|
Debt repaid |
(10,292,618) |
(4,137,563) |
(8,499,059) |
|
Net cash used in financing activities |
(10,292,618) |
(4,137,563) |
(8,499,059) |
|
Net increase in cash and bank overdrafts |
11,418,745 |
21,514,030 |
379,082 |
|
Cash and bank overdrafts at beginning of the period |
6,117,900 |
5,738,818 |
5,738,818 |
|
Cash and bank overdrafts at the end of the period |
17,536,645 |
27,252,848 |
6,117,900 |
1. Basis of preparation
The report for the six months ended 30 June 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
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