31st Jul 2013 17:49
ENDESA, S.A. and Subsidiaries: Consolidated Management Report
For the six-month period ended 30 June 2013
Madrid, 29 July 2013
Consolidated results
ENDESA reported net income of Euro 1,114 million in 1H13.
ENDESA reported net income of Euros 1,114 million in the first half of 2013, 2.8% less than in the same period the previous year, mainly due to a Euros 170 million reduction in net income at the Spain and Portugal business unit 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 310 million, with a negative impact on net income of €217 million in the first half. Additionally, net income was also affected by the annual recurring impact on ENDESA of approximately Euros 400 million arising from the regulatory measures introduced in 2012. This impact does not include the new reform measures to eliminate remaining imbalances in the energy sector adopted by the Council of Ministers on 12 July 2013.
The poor performance of net income in the business in Spain and Portugal was partially offset by the Euros 138 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 344 million as compensation for the cost increases which had not been passed on to the end user from 2007 to 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 97 million.
The table below shows the breakdown of ENDESA's net income between its two business lines and the year-on-year change:
| ENDESA net income, January-June 2013 | ||||||||||||
| Millions of Euros | % change 1H2013 | % of total net income | ||||||||||
| Spain and Portugal | 723 | (19.0) | 64.9 | |||||||||
| Latin America | 391 | 54.5 | 35.1 | |||||||||
| TOTAL | 1,114 | (2.8) | 100.0 | |||||||||
For additional information please refer to: http://www.endesa.com/en/accionistas/home
Copyright Business Wire 2013
Related Shares:
Endesa Ord