29th Sep 2010 07:00
ANDES ENERGIA PLC
("Andes" or the "Company" or with its subsidiaries the "Group")
ANDES ENERGIA PLC - UNAUDITED 2010 INTERIM RESULTS
Andes, the Latin American energy group, is pleased to announce its interim results for the six months ended 30 June 2010.
Financial highlights
·; Revenues up 27% to US$88 million from US$69 million for the equivalent period last year
·; EBITDA up 141% to US$17.4 million (H1 2009: US$7.2 million)
·; Earnings per share 1.7 US$ cents (H1 2009: Loss per share 1.24 US$ cents)
Operational highlights
·; Acquisition of interest in EDEMSA bonds with a face value of US$76.8 million
·; Continuation of geophysical studies and seismic reprocessing
·; Full impact of new tariff increases for the third review period
·; Listing of shares on Buenos Aires Stock Exchange
Luis Alvarez Poli, Chief Executive Officer, said: "We are very pleased with the progress we have made in the first six months of this year. We are now seeing the benefits of the new tariffs for the third review period and the acquisition of the interest in the EDEMSA bonds significantly improves the Group's gearing and reduces its foreign exchange risk. We continue to work towards advancing our oil and gas exploration interests and the development of our oil and gas exploration strategy, which will be our focus for the balance of this year and 2011."
Enquiries:
|
Andes Energia |
Luis Alvarez Poli, Chief Executive Officer Nigel Duxbury, Finance Director
|
T: 020 7495 5326 |
|
Arbuthnot Securities |
Antonio Bossi Ed Groome
|
T: 020 7012 2000 |
Note to Editors:
Andes is a Latin American energy group, with electricity distribution, hydro-electric power and oil and gas interests in Argentina. The Company's focus is on the Argentinean energy sector.
Chairman's review
First-half revenues in local currency increased by 35% to AR$340 million (US$88 million) compared to revenues of AR$252 million (US$69 million) for the equivalent period last year. EBITDA was US$17.4 million (H1 2009: US$7.2 million), an increase of 141% over the equivalent period last year.
Gross profit increased by 65% to US$29.3 million from US$17.8 million resulting in an 320% increase in operating profit to US$13.5 million from US$3.2 million for the equivalent period last year.
As noted in our announcement of 7 July 2010, EDEMSA and the investment trust established by EDEMSA signed agreements with Magnus International S.A., through which it acquired the rights over EDEMSA bonds with a face value of US$76.8 million held under the Total Return Swap Agreement ("TRS") and the TRS Participation Agreement referred in our announcement of 14 June 2010. A surplus of AR$21 million (US$5.4 million), resulting from the net present value impact of the reduction in borrowings has been recognized in the income statement for the period under finance costs.
EDEMSA's results also benefited from the full impact of the new tariffs for the third review period, which were implemented on 1 August 2009 and 1 December 2009.
The results of Hidroelectrica Ameghino S.A. ("HASA") continue to benefit from the change in the regulations that allows HASA to sell all the electricity it generates to the wholesale market. EBITDA for the period increased by 49% to US$1.6 million from US$1.1 million for the equivalent period last year.
We continue to advance the development of our oil and gas strategy and our main focus for the balance of 2010 is to formalise agreements and a work program that will hopefully allow us to maximise the potential of the licences we hold.
We continue to grow and develop our assets and we are confident that steps we are taking will allow us to create value for our shareholders. We are grateful to shareholders for their continued support and look forward to updating you on developments in the near future.
Neil Bleasdale
Chairman
29 September 2010
Group income statement for the six months ended 30 June 2010
|
|
30-Jun-10 |
30-Jun-09 |
31-Dec-09 |
|
|
US$ |
US$ |
US$ |
|
Revenue |
87,655,175 |
69,205,678 |
138,644,164 |
|
Cost of sales |
(58,325,730) |
(51,378,117) |
(104,513,429) |
|
Gross profit |
29,329,445 |
17,827,561 |
34,130,735 |
|
Other operating income |
472,756 |
320,116 |
5,983,904 |
|
Distribution costs |
(6,886,351) |
(5,771,274) |
(12,720,425) |
|
Administrative expenses |
(9,396,373) |
(9,157,008) |
(16,273,091) |
|
Operating profit |
13,519,477 |
3,219,395 |
11,121,123 |
|
Finance income |
76,767 |
2,347,865 |
5,608,405 |
|
Finance costs |
(2,613,791) |
(9,587,650) |
(13,105,611) |
|
Profit/(loss) before taxation |
10,982,453 |
(4,020,390) |
3,623,917 |
|
Taxation |
(5,036,204) |
1,394,647 |
(2,558,090) |
|
Profit/(loss) for the year |
5,946,249 |
(2,625,743) |
1,065,827 |
|
|
|
|
|
|
Total comprehensive income/(loss) attributable to: |
|
|
|
|
Equity holders of the parent |
2,058,322 |
(1,450,580) |
(532,667) |
|
Minority interests |
3,887,927 |
(1,175,163) |
1,598,494 |
|
|
5,946,249 |
(2,625,743) |
1,065,827 |
|
|
|
|
|
|
|
Cents |
Cents |
Cents |
|
Basic and diluted earnings/(loss) per ordinary share |
1.7 |
(1.24) |
(0.45) |
Consolidated statement of financial position as at 30 June 2010
|
|
30-Jun-10 |
30-Jun-09 |
31-Dec-09 |
|
|
US$ |
US$ |
US$ |
|
Non-current assets |
|
|
|
|
Intangible assets |
84,717,185 |
89,907,621 |
88,385,607 |
|
Property, plant and equipment |
136,164,722 |
136,830,013 |
138,966,406 |
|
Investments |
4,013,915 |
16,198,843 |
20,390,284 |
|
Available for sale financial assets |
489,695 |
297,123 |
520,778 |
|
Trade and other receivables |
571,232 |
142,284 |
336,322 |
|
Deferred income tax assets |
30,564,572 |
35,223,910 |
32,918,562 |
|
Total non-current assets |
256,521,321 |
278,599,794 |
281,517,959 |
|
|
|
|
|
|
Current assets |
|
|
|
|
Inventories |
4,794,869 |
3,393,143 |
4,098,319 |
|
Available for sale financial assets |
696,922 |
1,614,263 |
731,093 |
|
Trade and other receivables |
31,678,080 |
28,793,159 |
31,621,550 |
|
Cash and cash equivalents |
5,525,371 |
5,679,723 |
5,123,704 |
|
Total current assets |
42,695,242 |
39,480,288 |
41,574,666 |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Trade and other payables |
48,397,387 |
42,275,139 |
44,578,011 |
|
Financial liabilities |
17,638,079 |
11,391,207 |
8,312,753 |
|
Provisions |
11,881,081 |
8,211,304 |
10,078,696 |
|
Current tax liabilities |
45,288 |
49,490 |
47,990 |
|
Total current liabilities |
77,961,835 |
61,927,140 |
63,017,450 |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
Trade and other payables |
1,990,260 |
1,602,842 |
2,236,784 |
|
Financial liabilities |
32,540,369 |
74,689,783 |
73,744,456 |
|
Deferred income tax liabilities |
27,278,259 |
25,364,365 |
25,833,889 |
|
Total non-current liabilities |
61,808,888 |
101,656,990 |
101,815,129 |
|
|
|
|
|
|
Net assets |
159,445,840 |
154,495,952 |
158,260,046 |
|
|
|
|
|
|
Capital and reserves |
|
|
|
|
Called up share capital |
24,147,405 |
23,418,920 |
23,947,876 |
|
Share premium account |
29,914,999 |
28,692,270 |
29,644,391 |
|
Profit and loss account |
(45,398,634) |
(48,703,204) |
(47,614,929) |
|
Merger reserve |
66,195,556 |
66,195,556 |
66,195,556 |
|
Reverse acquisition reserve |
42,045,342 |
42,045,342 |
42,045,342 |
|
Translation reserve |
(25,440,825) |
(20,919,132) |
(22,148,975) |
|
Fair value reserve |
233,777 |
119,916 |
245,682 |
|
Equity attributable to equity holders of the parent |
91,697,620 |
90,849,668 |
92,314,943 |
|
Minority interest |
67,748,220 |
63,646,284 |
65,945,103 |
|
Total equity |
159,445,840 |
154,495,952 |
158,260,046 |
Consolidated statement of changes in equity for the six months ended 30 June 2010
|
Capital and reserves |
Share |
Share |
Profit and |
Other |
Minority |
Total |
|
|
|
capital |
premium |
loss |
reserves |
interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
|
|
At 1 January 2009 |
23,418,920 |
28,692,270 |
(47,332,067) |
90,800,431 |
71,522,624 |
167,102,178 |
|
|
Loss for the period |
- |
- |
(1,450,580) |
- |
(1,175,163) |
(2,625,743) |
|
|
Fair value adjustment |
- |
- |
- |
43,738 |
42,023 |
85,761 |
|
|
Translation differences |
- |
- |
- |
(3,402,487) |
(6,529,670) |
(9,932,157) |
|
|
Total comprehensive loss for the period |
- |
- |
(1,450,580) |
(3,358,749) |
(7,662,810) |
(12,472,139) |
|
|
Fair value of share based payments |
- |
- |
79,443 |
- |
- |
79,443 |
|
|
Dividends |
- |
- |
- |
- |
(213,530) |
(213,530) |
|
|
At 30 June 2009 |
23,418,920 |
28,692,270 |
(48,703,204) |
87,441,682 |
63,646,284 |
154,495,952 |
|
|
Profit for the period |
- |
- |
917,913 |
- |
2,773,657 |
3,691,570 |
|
|
Fair value adjustments |
- |
- |
- |
125,766 |
128,576 |
254,342 |
|
|
Translation differences |
- |
- |
|
(1,229,843) |
(465,540) |
(1,695,383) |
|
|
Total comprehensive profit for the period |
- |
- |
917,913 |
(1,104,077) |
2,436,693 |
2,250,529 |
|
|
Issue of ordinary shares |
528,956 |
952,121 |
- |
- |
- |
1,481,077 |
|
|
Fair value of share based payments |
- |
- |
170,362 |
- |
- |
170,362 |
|
|
Dividends |
- |
- |
- |
- |
(137,874) |
(137,874) |
|
|
At 31 December 2009 |
23,947,876 |
29,644,391 |
(47,614,929) |
86,337,605 |
65,945,103 |
158,260,046 |
|
|
Profit for the period |
- |
- |
2,058,322 |
- |
3,887,927 |
5,946,249 |
|
|
Fair value adjustments |
- |
- |
- |
(11,905) |
(11,438) |
(23,343) |
|
|
Translation differences |
- |
- |
- |
(3,291,850) |
(1,893,991) |
(5,185,841) |
|
|
Total comprehensive profit for the period |
- |
- |
2,058,322 |
(3,303,755) |
1,982,498 |
737,065 |
|
|
Issue of ordinary shares |
199,529 |
270,608 |
- |
- |
- |
470,137 |
|
|
Fair value of share based payments |
- |
- |
157,973 |
- |
- |
157,973 |
|
|
Dividends |
- |
- |
- |
- |
(179,381) |
(179,381) |
|
|
At 30 June 2010 |
24,147,405 |
29,914,999 |
(45,398,634) |
83,033,850 |
67,748,220 |
159,445,840 |
|
|
Other reserves |
|
Merger |
Reverse |
Translation |
Fair value |
Total |
|
|
|
reserve |
acquisition |
reserve |
reserve |
other |
|
|
|
|
reserve |
|
|
reserves |
|
|
|
US$ |
US$ |
US$ |
US$ |
US$ |
|
At 1 January 2009 |
|
66,195,556 |
42,045,342 |
(17,516,645) |
76,178 |
90,800,431 |
|
Fair value adjustment |
|
- |
- |
- |
43,738 |
43,738 |
|
Translation differences |
|
- |
- |
(3,402,487) |
- |
(3,402,487) |
|
Total comprehensive loss for the period |
|
- |
- |
(3,402,487) |
43,738 |
(3,358,749) |
|
At 30 June 2009 |
|
66,195,556 |
42,045,342 |
(20,919,132) |
119,916 |
87,441,682 |
|
Fair value adjustments |
|
- |
- |
- |
125,766 |
125,766 |
|
Translation differences |
|
- |
- |
(1,229,843) |
- |
(1,229,843) |
|
Total comprehensive profit for the period |
|
- |
- |
(1,229,843) |
125,766 |
(1,104,077) |
|
At 31 December 2009 |
|
66,195,556 |
42,045,342 |
(22,148,975) |
245,682 |
86,337,605 |
|
Fair value adjustments |
|
- |
- |
- |
(11,905) |
(11,905) |
|
Translation differences |
|
- |
- |
(3,291,850) |
- |
(3,291,850) |
|
Total comprehensive profit for the period |
|
- |
- |
(3,291,850) |
(11,905) |
(3,303,755) |
|
At 30 June 2010 |
|
66,195,556 |
42,045,342 |
(25,440,825) |
233,777 |
83,033,850 |
Consolidated cash flow statement for the six months ended 30 June 2010
|
|
30-Jun-10 |
30-Jun-09 |
31-Dec-09 |
|
|
US$ |
US$ |
US$ |
|
Profit/(loss) for the year before taxation |
10,982,453 |
(4,020,390) |
3,623,917 |
|
|
|
|
|
|
Adjustments for: |
|
|
|
|
Depreciation |
3,791,306 |
3,885,088 |
7,633,102 |
|
Movement in debt |
364,724 |
9,667,719 |
9,450,297 |
|
Revaluation of investments |
- |
- |
(66,251) |
|
Profit on sale of property, plant and equipment |
- |
76,447 |
- |
|
Increase in inventories |
(3,031,595) |
(936,448) |
(3,341,122) |
|
Increase in trade and other receivables |
(1,640,253) |
(2,225,201) |
(7,456,546) |
|
Increase in creditors and other payables |
4,336,819 |
6,218,059 |
9,884,014 |
|
Increase in provisions for liabilities and charges |
2,944,796 |
1,371,512 |
5,498,515 |
|
Profit on disposal of investments |
12,664 |
- |
76,441 |
|
Movement in tax provisions |
(609,158) |
(285,525) |
(529,482) |
|
Impairment write down |
133,115 |
141,892 |
276,195 |
|
Share based payments |
157,973 |
79,443 |
249,805 |
|
Net cash generated from operating activities |
17,442,844 |
13,972,596 |
25,298,885 |
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
Purchase of property, plant and equipment |
(2,832,947) |
(1,945,606) |
(7,942,455) |
|
Purchase of exploration assets |
- |
18,044 |
(40,021) |
|
Sale/(purchase) of investments and minority interests |
15,878,918 |
(7,787,372) |
(11,152,288) |
|
Proceeds from available for sale shares |
- |
- |
51,732 |
|
Proceeds from grants |
- |
1,473,515 |
1,434,117 |
|
Net cash generated from/(used in) investing activities |
13,045,971 |
(8,241,419) |
(17,648,915) |
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
Repayments of borrowings |
(38,666,598) |
(2,827,642) |
(7,496,292) |
|
Funds from borrowing |
8,336,625 |
804,765 |
1,609,436 |
|
Proceeds from issue of shares |
470,137 |
- |
1,481,077 |
|
Dividends |
(179,381) |
(213,530) |
(351,404) |
|
Net cash used in/(generated from) financing activities |
(30,039,217) |
(2,236,407) |
(4,757,183) |
|
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents |
449,598 |
3,494,770 |
2,892,787 |
|
Cash and cash equivalents at the beginning of the period |
5,123,704 |
2,547,841 |
2,547,841 |
|
Effect of foreign exchange rate changes |
(47,931) |
(362,888) |
(316,924) |
|
Cash and cash equivalents at the end of the period |
5,525,371 |
5,679,723 |
5,123,704 |
Notes
1. Basis of preparation
The Group consolidates the financial statements of the Company and its subsidiary undertakings.
The financial information has been prepared under the historical cost convention in accordance with International Financial Reporting Standards (IFRSs). The financial information set out in this half-yearly report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The same accounting policies, presentation and methods of computation are followed in this interim condensed consolidated report as were applied in the Group's annual financial statements for the year ended 31 December 2009. The auditor's report on those financial statements was unqualified and did not contain any statements under section 498(2) or section 498(3) of the Companies Act 2006.
2. Segmental analysis
|
|
Revenue |
Segment profit |
||||
|
|
30-Jun-10 |
30-Jun-09 |
31-Dec-09 |
30-Jun-10 |
30-Jun-09 |
31-Dec-09 |
|
Analysis of revenue and profit: |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
|
Electricity distribution |
84,602,556 |
66,860,324 |
134,467,794 |
13,849,764 |
3,472,596 |
10,600,565 |
|
Electricity generation |
3,052,619 |
2,345,354 |
4,176,370 |
1,386,894 |
857,667 |
1,159,715 |
|
|
87,655,175 |
69,205,678 |
138,644,164 |
15,236,658 |
4,330,263 |
11,760,280 |
|
Central administration costs |
|
|
|
(1,717,181) |
(1,110,868) |
(639,157) |
|
Finance income |
|
|
|
76,767 |
2,347,865 |
5,608,405 |
|
Finance costs |
|
|
|
(2,613,791) |
(9,587,650) |
(13,105,611) |
|
Profit/(loss) before tax (continuing operations) |
|
|
|
10,982,453 |
(4,020,390) |
3,623,917 |
|
|
|
30-Jun-10 |
30-Jun-09 |
31-Dec-09 |
|
Analysis of total assets: |
|
US$ |
US$ |
US$ |
|
Electricity distribution |
|
243,904,165 |
259,282,386 |
265,821,900 |
|
Electricity generation |
|
16,506,075 |
16,664,660 |
16,264,546 |
|
Oil and gas interests |
|
30,959,856 |
33,755,115 |
32,795,394 |
|
Total segment assets |
|
291,370,096 |
309,702,161 |
314,881,840 |
|
Unallocated assets |
|
7,846,467 |
8,377,921 |
8,210,785 |
|
Consolidated total assets |
|
299,216,563 |
318,080,082 |
323,092,625 |
|
|
|
30-Jun-10 |
30-Jun-09 |
31-Dec-09 |
|
Analysis of total liabilities: |
|
US$ |
US$ |
US$ |
|
Electricity distribution |
|
119,389,476 |
143,041,849 |
144,775,122 |
|
Electricity generation |
|
4,555,383 |
4,428,486 |
4,307,726 |
|
Oil and gas interests |
|
14,729 |
11,072 |
16,916 |
|
Total segment liabilities |
|
123,959,588 |
147,481,407 |
149,099,764 |
|
Unallocated liabilities |
|
15,811,135 |
16,102,723 |
15,732,815 |
|
Consolidated total liabilities |
|
139,770,723 |
163,584,130 |
164,832,579 |
2. Segmental analysis (continued)
|
|
|
30-Jun-10 |
30-Jun-09 |
31-Dec-09 |
|
Analysis of total capital expenditure: |
|
US$ |
US$ |
US$ |
|
Electricity distribution capital expenditure |
|
4,889,668 |
3,960,277 |
11,126,578 |
|
Electricity generation capital expenditure |
|
16,320 |
1,976 |
10,744 |
|
Oil and gas interests |
|
- |
- |
40,021 |
|
Total segment capital expenditure |
|
4,905,988 |
3,962,253 |
11,177,343 |
|
Other capital expenditure |
|
- |
- |
4,122 |
|
Consolidated total capital expenditure |
|
4,905,988 |
3,962,253 |
11,181,465 |
|
|
|
30-Jun-10 |
30-Jun-09 |
31-Dec-09 |
|
Analysis of total depreciation: |
|
US$ |
US$ |
US$ |
|
Electricity distribution depreciation |
|
3,747,336 |
3,838,300 |
7,540,900 |
|
Electricity generation depreciation |
|
42,923 |
45,896 |
90,283 |
|
Total segment depreciation |
|
3,790,259 |
3,884,196 |
7,631,183 |
|
Other depreciation |
|
1,047 |
892 |
1,919 |
|
Consolidated total depreciation |
|
3,791,306 |
3,885,088 |
7,633,102 |
3. Earnings/(loss) per share
Earnings/(loss) per share is presented on two bases: basic earnings/(loss) per share and diluted earnings/(loss) per share. Basic earnings/(loss) per share is in respect of all activities and diluted earnings/(loss) per share takes into account the dilution effects which would arise on conversion or vesting of warrants in issue.
|
|
30-Jun-10 |
30-Jun-09 |
31-Dec-09 |
|
|
Cents |
Cents |
Cents |
|
Basic and diluted earnings/(loss) per share |
1.70 |
(1.24) |
(0.45) |
|
|
|
|
|
|
|
US$ |
US$ |
US$ |
|
Profit/(loss) for the financial year attributable to equity holders |
2,058,322 |
(1,450,580) |
(532,667) |
|
|
|
|
|
|
|
No. |
No. |
No. |
|
Weighted average number of shares |
120,897,252 |
117,094,598 |
117,519,203 |
|
Effect of dilutive warrants |
0 |
0 |
0 |
|
Diluted weighted average number of shares |
120,897,252 |
117,094,598 |
117,519,203 |
|
|
|
|
|
|
|
No. |
No. |
No. |
|
Potential number of dilutive warrants |
31,300,000 |
31,300,000 |
31,300,000 |
|
|
31,300,000 |
31,300,000 |
31,300,000 |
4. Investments
As previously announced, the terms for the acquisition of the final 50 per cent. interest in Sodem S.A. included the possibility of an earn-out payment. However, as certain elements of the agreement were open to interpretation and the parties failed to reach agreement an arbitrator was appointed. No provision has been made in the financial statements for an earn-out payment, as the arbitration process is currently under appeal.
Related Shares:
PGR.L