29th Sep 2008 07:00
ANDES ENERGIA PLC
("Andes" or the "Company" or with its subsidiaries the "Group")
ANDES ENERGIA PLC - UNAUDITED 2008 INTERIM RESULTS
Andes, the Latin American energy group, is pleased to announce its interim results for the six months ended 30 June 2008.
Financial highlights
Revenues up 21% to US$66.5 million (H1 2007: US$54.9 million)
EBITDA up 53% to US$8.8 million (H1 2007: US$ 5.8 million)
Earnings per share of 0.07 cents
Operational highlights
Exercise of the option to acquire a further 25.5% indirect interest in the share capital of EDEMSA. Andes now owns 51% of EDEMSA.
Increase in electricity tariffs charged by EDEMSA of between 10% and 27%, implemented on 1 February 2008, equivalent to an average tariff increase of 20%.
Receipt of notification that the shareholders of Patagonia Oil & Gas S.A., Andes's consortium partner in certain oil and gas interests, had entered into a funding agreement worth up to US$94.5 million with PetroSaudi International Limited ("PetroSaudi").
Drilling commenced on the Confluencia licence block in the San Jorge basin.
Luis Alvarez Poli, Chief Executive Officer, said: "We are pleased with the continued progress we have made this year. The implementation of the tariff increase at EDEMSA has resulted in a significant increase in revenue and EBITDA for the Group. Throughout this year we have worked towards advancing our oil and gas exploration interests and the commencement of drilling on the Confluencia licence block is an exciting step in the development of our oil and gas exploration strategy."
Enquiries:
|
Andes Energia |
Luis Alvarez Poli, Chief Executive Officer Nigel Duxbury, Finance Director |
T: 020 7495 5326 |
|
Arbuthnot Securities |
James Steel Antonio Bossi |
T: 020 7012 2000 |
|
Bishopsgate Communications |
Maxine Barnes Nick Rome |
T: 020 7562 3350 |
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.
A Union Transitoria de Empresas (UTE), is a registered joint venture. UTEs have been established to manage the licence blocks held under the consortium agreement with Patagonia Oil & Gas S.A. Andes holds a 20% royalty interest, a 20% carried interest and a 3% working interest in the licences held by the consortium.
Chairman's review
I am pleased to report that first-half revenues have increased by 21% to US$66.5 million with a resulting increase in EBITDA of 53% to US$8.8 million.
These results primarily reflect the benefit of the average tariff increase of 20% implemented in February 2008 by EDEMSA. A further tariff review is due to be completed by 1 February 2009 to establish a reasonable tariff for the third period of the licence agreement. In February 2008 we also completed the acquisition of a further 25.5% indirect interest in EDEMSA.
Whilst the results of HASA have been adversely impacted by low rainfalls and the resulting low water levels in the dam, we are confident that this position is starting to turn around following recent rainfall.
Our prime focus this year has been the development of our oil and gas exploration interests.
Seismic data interpretation on Confluencia, Buen Pasto, San Bernardo, Rio Senguerr and Sierra Cuadrada blocks has been completed. There is approximately 6,000km of available information to be reprocessed, which, it is estimated, will take approximately four months.
The UTEs have entered into a tendering process to secure a contractor to conduct a further 2D and 3D seismic data acquisition program for 2,000km 2D and 1,000km² 3D seismic. Two contractors have been short-listed and this work is due to start shortly and is expected to be completed by the end of October. The specifics of the program will be defined on a case-by-case basis.
Carson Helicopters Inc., Aerogravity Division, from the USA, has been contracted to carry out a 34,780km² aeromag and aerogravity program over the licence blocks in the San Jorge basin. As of the date of this announcement approximately 32,466km² of the program area has been covered, representing 93% of the planned program. Subject to weather conditions, this program is expected to be completed shortly.
Soil gas geochemical surveys have been conducted by Exploration Technologies, Inc. A total of 1,196 samples have been gathered from the Confluencia, Buen Pasto, San Bernado, Pampa Salamanca Norte, Rio Senguerr and Sierra Cuadrada blocks. Preliminary results indicate a high level of gas anomalies, particularly in the Rio Senguerr block, the northern portion of the Confluencia block and the western portion of the Pampa Salamanca Norte block, which may prove prospective.
Once completed, the results of the survey, the seismic and the geochemical programs will be correlated allowing the Group to assess and select additional drill targets.
The joint venture consortium has signed a drilling contract with San Antonio Internacional, a subsidiary of Pride International Inc., to carry out exploration drilling in the San Jorge basin. The Group has an interest in six licence blocks in this basin, Confluencia, San Bernardo, Pampa Salamanca Norte, Buen Pasto, Sierra Cuadrada and Rio Seguerr. These blocks cover an area of approximately 25,000km². An initial four well exploration drilling program is planned
Drilling of the first well commenced on 23 September 2008 on the Confluencia licence block in the San Jorge basin. The first well will be drilled to a total maximum depth of 2,000 metres from surface and should take approximately 20 days to drill to target depth. This well is designed to evaluate the potential oil bearing zone identified through the interpretation of acquired seismic data and old well logs.
The Group plans to drill its second well in the San Bernardo block. It is expected that this well will be located close to the existing producing fields in adjacent licence areas, subject to completion of seismic interpretation. It is anticpated that the third and fourth wells will also be drilled on licence blocks in the San Jorge basin. The location of these wells will be subject to further interpretation and evaluation of data, which will allow the Group to identify potential prospects.
The UTEs have committed up to US$21 million to fund these exploration programs. This expenditure is covered by the funding arrangement with PetroSaudi, which the Company announced on 25 February 2008.
We have appointed Juan Carlos Esteban as Chief Executive Officer of the Group's oil and gas interests. Juan Carlos Esteban joined the Group from YPF. At YPF he was responsible for production activities in Argentina and Bolivia and for the operations of YPF's fields in North Mendoza and Malargue in the Cuyana and Neuquen basins. He has significant knowledge and experience in the areas where the Group holds its licences and is a valuable addition to our team.
Your Company has established a strong management, technical and operational team with which to fulfill its exploration strategies. We are confident that our efforts throughout 2008 will allow the Company to quickly advance its exploration of the various licences. We are grateful to Shareholders for their continued support and look forward to updating you on developments in the near future.
Michael Stevens
Chairman
29 September 2008
Consolidated income statement for the six months ended 30 June 2008
|
Unaudited |
Unaudited |
Audited |
|||
|
Six months |
Six months |
Year |
|||
|
ended |
ended |
ended |
|||
|
30 Jun 2008 |
30 Jun 2007 |
31 Dec 2007 |
|||
|
US$ |
US$ |
US$ |
|||
|
Revenue |
66,478,155 |
54,901,952 |
111,303,946 |
||
|
Cost of sales |
(50,365,155) |
(46,589,768) |
(95,441,770) |
||
|
Gross profit |
16,113,000 |
8,312,184 |
15,862,176 |
||
|
Other operating income |
793,686 |
691,817 |
1,322,306 |
||
|
Distribution costs |
(5,492,556) |
(4,305,610) |
(8,825,841) |
||
|
Administrative expenses before exceptional expense |
(7,213,540) |
(3,042,166) |
(7,891,138) |
||
|
Exceptional expenses |
0 |
0 |
(16,163,584) |
||
|
Total administrative expenses |
(7,213,540) |
(3,042,166) |
(24,054,722) |
||
|
Operating profit/(loss) |
4,200,590 |
1,656,225 |
(15,696,081) |
||
|
Analysed as |
|||||
|
Operating profit before exceptional expenses |
4,200,590 |
1,656,225 |
467,503 |
||
|
Exceptional expenses |
0 |
0 |
(16,163,584) |
||
|
Operating profit/(loss) |
4,200,590 |
1,656,225 |
(15,696,081) |
||
|
Finance income |
412,528 |
89,442,818 |
89,848,953 |
||
|
Finance costs |
(1,478,127) |
(1,529,219) |
(4,570,943) |
||
|
Profit before taxation |
3,134,991 |
89,569,824 |
69,581,929 |
||
|
Taxation |
(1,594,688) |
(3,122,615) |
8,544,207 |
||
|
Profit for the year |
1,540,303 |
86,447,209 |
78,126,136 |
||
|
Attributable to: |
|||||
|
Equity holders of the parent |
77,256 |
44,087,417 |
7,083,993 |
||
|
Minority interests |
1,463,047 |
42,359,792 |
71,042,143 |
||
|
|
1,540,303 |
86,447,209 |
78,126,136 |
||
|
Earnings per ordinary share (see note 4) |
|||||
|
Basic |
0.07 cents |
158.29 cents |
14.72 cents |
||
|
Diluted |
0.07 cents |
158.29 cents |
13.67 cents |
||
Consolidated balance sheet as at 30 June 2008
|
Unaudited |
Unaudited |
Audited |
|||
|
|
30 Jun 2008 |
30 Jun 2007 |
31 Dec 2007 |
||
|
US$ |
US$ |
US$ |
|||
|
Non-current assets |
|||||
|
Intangible assets |
110,159,992 |
50,550,028 |
109,837,883 |
||
|
Property, plant and equipment |
165,901,448 |
161,739,995 |
165,503,182 |
||
|
Investments |
4,701,644 |
0 |
4,576,208 |
||
|
Trade and other receivables |
31,117 |
0 |
0 |
||
|
Available for sale financial assets |
546,972 |
756,677 |
599,571 |
||
|
Deferred income tax assets and other credits |
4,520,333 |
0 |
5,228,769 |
||
|
Total non-current assets |
285,861,506 |
213,046,700 |
285,745,613 |
||
|
Current assets |
|||||
|
Inventories |
5,169,935 |
4,347,176 |
3,792,216 |
||
|
Investments |
1,004,324 |
0 |
2,347,154 |
||
|
Trade and other receivables |
30,147,474 |
25,201,040 |
34,194,011 |
||
|
Cash and cash equivalents |
10,863,399 |
4,208,996 |
23,347,231 |
||
|
Total current assets |
47,185,132 |
33,757,212 |
63,680,612 |
||
|
Current liabilities |
|||||
|
Trade and other payables |
36,296,635 |
26,119,152 |
30,085,155 |
||
|
Financial liabilities |
4,780,178 |
3,510,242 |
6,565,197 |
||
|
Provisions |
7,863,862 |
6,814,088 |
7,381,332 |
||
|
Current tax liabilities |
59,988 |
0 |
125,546 |
||
|
Total current liabilities |
49,000,663 |
36,443,482 |
44,157,230 |
||
|
Non-current liabilities |
|||||
|
Trade and other payables |
2,943,963 |
0 |
1,766,705 |
||
|
Financial liabilities |
76,299,141 |
64,788,585 |
66,118,704 |
||
|
Deferred tax liabilities |
0 |
5,905,964 |
0 |
||
|
Total non-current liabilities |
79,243,104 |
70,694,549 |
67,885,409 |
||
|
Net assets |
204,802,871 |
139,665,881 |
237,383,586 |
||
|
Capital and reserves |
|||||
|
Called up share capital |
23,418,920 |
76,438,000 |
23,418,920 |
||
|
Share premium account |
28,779,259 |
0 |
28,949,260 |
||
|
Profit and loss account |
(38,073,013) |
(5,579,375) |
(42,308,581) |
||
|
Merger reserve |
66,195,556 |
0 |
66,195,556 |
||
|
Reverse acquisition reserve |
42,045,342 |
0 |
42,045,342 |
||
|
Other reserves |
175,019 |
348,767 |
217,624 |
||
|
Equity attributable to equity holders of the parent |
122,541,083 |
71,207,392 |
118,518,121 |
||
|
Minority Interest |
82,261,788 |
68,458,489 |
118,865,465 |
||
|
Total equity |
204,802,871 |
139,665,881 |
237,383,586 |
||
Consolidated statement of changes in equity as at 30 June 2008
|
Share |
Share |
Profit and |
Merger |
Reverse |
Other |
Minority |
Total |
|||
|
|
capital |
premium |
loss |
reserve |
acquisition |
reserves |
interest |
|||
|
reserve |
||||||||||
|
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
|||
|
At 1 January 2007 |
76,438,000 |
0 |
(49,666,792) |
0 |
0 |
359,756 |
26,098,697 |
53,229,661 |
||
|
Profit for the period |
0 |
0 |
44,087,417 |
0 |
0 |
0 |
42,359,792 |
86,447,209 |
||
|
Fair value adjustment |
0 |
0 |
0 |
0 |
0 |
(10,989) |
0 |
(10,989) |
||
|
Total recognised income and expenses for the period |
0 |
0 |
44,087,417 |
0 |
0 |
(10,989) |
42,359,792 |
86,436,220 |
||
|
At 30 June 2007 |
76,438,000 |
0 |
(5,579,375) |
0 |
0 |
348,767 |
68,458,489 |
139,665,881 |
||
|
Loss for the period adjusted for impact of reverse acquisition |
0 |
0 |
(37,003,424) |
0 |
0 |
0 |
28,682,351 |
(8,321,073) |
||
|
Fair value adjustment |
0 |
0 |
0 |
0 |
0 |
10,989 |
0 |
10,989 |
||
|
Fair value of share based payments |
0 |
0 |
103,250 |
0 |
0 |
0 |
0 |
103,250 |
||
|
Total recognised income and expenses for the period |
0 |
0 |
(36,900,174) |
0 |
0 |
10,989 |
28,682,351 |
(8,206,834) |
||
|
Issue of ordinary shares |
18,615,890 |
90,310,029 |
0 |
0 |
0 |
0 |
0 |
108,925,919 |
||
|
Share issue costs |
0 |
(1,180,139) |
0 |
0 |
0 |
0 |
0 |
(1,180,139) |
||
|
Reverse acquisition |
(71,634,970) |
(60,180,630) |
170,968 |
66,195,556 |
42,045,342 |
(142,132) |
21,724,625 |
(1,821,241) |
||
|
At 31 December 2007 |
23,418,920 |
28,949,260 |
(42,308,581) |
66,195,556 |
42,045,342 |
217,624 |
118,865,465 |
237,383,586 |
||
|
Profit for the period |
0 |
0 |
77,256 |
0 |
0 |
0 |
1,463,047 |
1,540,303 |
||
|
Fair value adjustment |
0 |
0 |
0 |
0 |
0 |
(42,605) |
0 |
(42,605) |
||
|
Total recognised income and expenses for the period |
0 |
0 |
77,256 |
0 |
0 |
(42,605) |
1,463,047 |
1,497,698 |
||
|
Share issue costs |
0 |
(170,001) |
0 |
0 |
0 |
0 |
0 |
(170,001) |
||
|
Exercise of option to acquire minority interest in Sodems S.A. |
0 |
0 |
4,158,312 |
0 |
0 |
0 |
(38,066,724) |
(33,908,412) |
||
|
At 30 June 2008 |
23,418,920 |
28,779,259 |
(38,073,013) |
66,195,556 |
42,045,342 |
175,019 |
82,261,788 |
204,802,871 |
||
Consolidated cash flow statement for the six months ended 30 June 2008
|
Unaudited |
Unaudited |
Audited |
|||
|
Six months |
Six months |
Year |
|||
|
ended |
ended |
ended |
|||
|
|
30 Jun 2008 |
30 Jun 2007 |
31 Dec 2007 |
||
|
US$ |
US$ |
US$ |
|||
|
Net cash generated from operating activities (see note 3) |
15,460,734 |
7,854,700 |
6,418,939 |
||
|
Cash flows from investing activities |
|||||
|
Purchase of property, plant and equipment |
(1,539,591) |
(2,182,958) |
(6,296,322) |
||
|
Purchase of exploration assets |
0 |
0 |
(480,000) |
||
|
Purchase of investments |
0 |
0 |
(697,098) |
||
|
Proceeds from sale of investments |
448,263 |
16,063 |
42,025 |
||
|
Acquisition of subsidiary |
(34,123,403) |
0 |
(2,523,232) |
||
|
Net cash used in investing activities |
(35,214,731) |
(2,166,895) |
(9,954,627) |
||
|
Cash flows from financing activities |
|||||
|
Repayments of borrowings |
(1,334,698) |
(7,005,860) |
(8,735,105) |
||
|
Proceeds from borrowings |
8,774,864 |
0 |
0 |
||
|
Proceeds on issue of shares |
0 |
0 |
31,271,112 |
||
|
Share issue costs |
(170,001) |
0 |
(1,180,139) |
||
|
Net cash generated from/(used in) financing activities |
7,270,165 |
(7,005,860) |
21,355,868 |
||
|
Net (decrease)/increase in cash and cash equivalents |
(12,483,832) |
(1,318,055) |
17,820,180 |
||
|
Cash and cash equivalents at the beginning of the year |
23,347,231 |
5,527,051 |
5,527,051 |
||
|
Cash and cash equivalents at the end of the year |
10,863,399 |
4,208,996 |
23,347,231 |
||
Notes
1. Basis of preparation
These interim financial statements set out in this announcement do not constitute statutory accounts and are unaudited.
These condensed financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"), as adopted by the European Union, on a basis consistent with the accounting policies used in the preparation of the audited consolidated financial statements of the Group for the year ended 31 December 2007. As is currently permissible under the rules of the AIM market, this report does not comply with the full requirements of IAS 34: "Interim Financial Reporting".
The financial information relating to the year ended 31 December 2007 has been extracted from the statutory accounts for that period, a copy of which has been delivered to the Registrar of Companies. The auditors report on those financial statements was unqualified and did not contain a statement under sections 237 (2) or 237(3) of the Companies Act 1985.
2. Segmental analysis
|
Revenue |
Segment profit/(loss) |
|||||||
|
Unaudited |
Unaudited |
Audited |
Unaudited |
Unaudited |
Audited |
|||
|
Six months |
Six months |
Year |
Six months |
Six months |
Year |
|||
|
ended |
ended |
ended |
ended |
ended |
ended |
|||
|
Analysis of revenue and profit: |
30 Jun 2008 |
30 Jun 2007 |
31 Dec 2007 |
30 Jun 2008 |
30 Jun 2007 |
31 Dec 2007 |
||
|
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
|||
|
Electricity distribution |
65,104,335 |
54,901,952 |
110,700,763 |
5,191,198 |
1,656,225 |
2,188,968 |
||
|
Electricity generation |
1,373,820 |
0 |
603,183 |
(66,057) |
0 |
(655,619) |
||
|
66,478,155 |
54,901,952 |
111,303,946 |
5,125,141 |
1,656,225 |
1,533,349 |
|||
|
Central administration costs |
(924,551) |
0 |
(1,065,846) |
|||||
|
Finance income |
412,528 |
89,442,818 |
89,848,953 |
|||||
|
Finance costs |
(1,478,127) |
(1,529,219) |
(4,570,943) |
|||||
|
Exceptional items |
0 |
0 |
(16,163,584) |
|||||
|
Profit before tax |
3,134,991 |
89,569,824 |
69,581,929 |
|||||
|
Unaudited |
Unaudited |
Audited |
|||
|
Six months |
Six months |
Year |
|||
|
ended |
ended |
ended |
|||
|
Analysis of total assets: |
30 Jun 2008 |
30 Jun 2007 |
31 Dec 2007 |
||
|
US$ |
US$ |
US$ |
|||
|
Electricity distribution |
261,940,641 |
246,803,912 |
252,089,194 |
||
|
Electricity generation |
24,672,361 |
0 |
24,643,043 |
||
|
Oil and gas interests |
41,100,569 |
0 |
40,626,893 |
||
|
Total segment assets |
327,713,571 |
246,803,912 |
317,359,130 |
||
|
Unallocated assets |
5,333,067 |
0 |
32,067,095 |
||
|
Consolidated total assets |
333,046,638 |
246,803,912 |
349,426,225 |
||
3. Segmental analysis (continued)
|
Unaudited |
Unaudited |
Audited |
|||
|
Six months |
Six months |
Year |
|||
|
ended |
ended |
ended |
|||
|
Analysis of total liabilities: |
30 Jun 2008 |
30 Jun 2007 |
31 Dec 2007 |
||
|
US$ |
US$ |
US$ |
|||
|
Electricity distribution |
109,959,710 |
107,138,031 |
103,032,277 |
||
|
Electricity generation |
3,821,944 |
0 |
3,812,679 |
||
|
Oil and gas interests |
425,017 |
0 |
19,679 |
||
|
Total segment liabilities |
114,206,671 |
107,138,031 |
106,864,635 |
||
|
Unallocated liabilities |
14,037,096 |
0 |
5,178,004 |
||
|
Consolidated total liabilities |
128,243,767 |
107,138,031 |
112,042,639 |
||
|
Unaudited |
Unaudited |
Audited |
|||
|
Six months |
Six months |
Year |
|||
|
ended |
ended |
ended |
|||
|
Analysis of total capital expenditure: |
30 Jun 2008 |
30 Jun 2007 |
31 Dec 2007 |
||
|
US$ |
US$ |
US$ |
|||
|
Electricity distribution capital expenditure |
4,833,372 |
3,346,938 |
11,467,339 |
||
|
Electricity generation capital expenditure |
1,355 |
0 |
13,782 |
||
|
Total segment capital expenditure |
4,834,727 |
3,346,938 |
11,481,121 |
||
|
Other capital expenditure |
0 |
0 |
5,498 |
||
|
Consolidated total capital expenditure |
4,834,727 |
3,346,938 |
11,486,619 |
||
|
Unaudited |
Unaudited |
Audited |
|||
|
Six months |
Six months |
Year |
|||
|
ended |
ended |
ended |
|||
|
Analysis of total depreciation: |
30 Jun 2008 |
30 Jun 2007 |
31 Dec 2007 |
||
|
US$ |
US$ |
US$ |
|||
|
Electricity distribution depreciation |
4,383,226 |
4,094,824 |
8,475,928 |
||
|
Electricity generation depreciation |
50,710 |
0 |
28,435 |
||
|
Total segment depreciation |
4,433,936 |
4,094,824 |
8,504,363 |
||
|
Other depreciation |
1,764 |
0 |
1,484 |
||
|
Consolidated total depreciation |
4,435,700 |
4,094,824 |
8,505,847 |
||
4. Net cash generated from operating activities
|
Unaudited |
Unaudited |
Audited |
|||
|
Six months |
Six months |
Year |
|||
|
ended |
ended |
ended |
|||
|
|
30 Jun 2008 |
30 Jun 2007 |
31 Dec 2007 |
||
|
US$ |
US$ |
US$ |
|||
|
Profit before tax |
3,134,991 |
89,569,824 |
69,581,929 |
||
|
Depreciation and amortisation |
4,617,913 |
4,094,824 |
8,597,750 |
||
|
Impairment write off |
0 |
0 |
16,163,584 |
||
|
Share based payments |
0 |
0 |
103,250 |
||
|
Loss on sale of property, plant and equipment and financial assets |
19,086 |
290,122 |
343,696 |
||
|
Movement in net debt |
839,671 |
(87,101,130) |
(84,205,842) |
||
|
Increase in inventories |
(4,227,711) |
(2,797,904) |
(5,255,853) |
||
|
Decrease/(increase) in trade and other receivables |
3,406,685 |
1,320,587 |
(2,731,522) |
||
|
Increase in creditors and other payables |
6,407,816 |
1,595,077 |
1,667,667 |
||
|
Increase in provisions for liabilities and charges |
1,262,283 |
883,300 |
1,921,659 |
||
|
Tax |
0 |
0 |
232,621 |
||
|
15,460,734 |
7,854,700 |
6,418,939 |
|||
5. Earnings per share
Earnings per share is presented on three bases: basic earnings per share; diluted earnings per share; and adjusted basic earnings per share. Basic earnings per share is in respect of all activities and diluted earnings per share takes into account the dilution effects which would arise on conversion or vesting of warrants in issue. Adjusted basic earnings per share excludes exceptional items to enable comparison of the underlying earnings of the business with prior periods.
|
30 Jun 2008 |
30 Jun 2007 |
31 Dec 2007 |
|||
|
US$ |
US$ |
US$ |
|||
|
Basic earnings per share |
0.07 |
158.29 |
14.72 |
||
|
Diluted earnings per share |
0.07 |
158.29 |
13.67 |
||
|
Adjusted basic earnings per share |
0.07 |
158.29 |
48.30 |
||
|
|
|||||
|
Profit for the financial year attributable to equity holders |
77,256 |
44,087,417 |
7,083,993 |
||
|
Adjustments: |
|||||
|
Exceptional items |
0 |
0 |
16,163,584 |
||
|
Adjusted profit for the financial year attributable to equity holders |
77,256 |
44,087,417 |
23,247,577 |
||
|
Weighted average number of shares |
117,094,598 |
27,851,851 |
48,133,737 |
||
|
Effect of dilutive warrants |
0 |
0 |
3,693,146 |
||
|
Diluted weighted average number of shares |
117,094,598 |
27,851,851 |
51,826,883 |
||
6. Acquisition
The Company completed the acquisition of the remaining 50% per cent. of SODEMSA not already held by the Company for approximately US$34 million. The final terms include the possibility, in the event of higher than anticipated future tariff increases, of an earn out payment, which if it crystallises, may be satisfied in cash or through the issue of new shares at the Company's option. SODEMSA has a 51 per cent. controlling interest in EDEMSA, the main electricity distribution company in the Province of Mendoza.
The Company uses the economic entity method to purchase minority interests. Under the economic entity method any difference between consideration and the share of net assets acquired is recorded directly in equity.
Related Shares:
PGR.L