6-K 1 ednpr3q13_6k.htm EDENOR ANNOUNCES THIRD QUARTER 2013 RESULTS ednpr3q13_6k.htm - Generated by SEC Publisher for SEC Filing
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 6-K
 
 
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
 
For the month of November 2013
 
EMPRESA DISTRIBUIDORA Y COMERCIALIZADORA NORTE S.A. (EDENOR)
(DISTRIBUTION AND MARKETING COMPANY OF THE NORTH )
 
(Translation of Registrant's Name Into English)
 
Argentina
 
(Jurisdiction of incorporation or organization)
 
 
Av. del Libertador 6363,
12th Floor,
City of Buenos Aires (A1428ARG),
Tel: 54-11-4346-5000
 
(Address of principal executive offices)
 
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
 
Form 20-F  X     Form 40-F        

(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)

Yes          No  X  

(If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-             .)
 
 
 

 
 


Third Quarter 2013
Page 1 of 7

 

Buenos Aires, Argentina, November 13, 2013 – Empresa Distribuidora y Comercializadora Norte S.A. (NYSE: EDN; Buenos Aires Stock Exchange: EDN) (“EDENOR” or “the Company”), Argentina’s largest electricity distributor, today announced its results for the third quarter of 2013. All figures are stated in Argentine Pesos and have been prepared in accordance with International Financing Reporting Standards (“IFRS”). Solely for the convenience of the reader, Peso amounts as of and for the period ended September 30, 2013 have been translated into U.S. Dollars at the buying rate for U.S. Dollars quoted by Banco de la Nación Argentina (Banco Nación) on September 30, 2013 of Ps. 5.793.

HIGHLIGHTS

Sale of EMDERSA and Transfer of Credits.

On September 17, 2013, the Company approved an irrevocable offer for the sale of its indirect stake in EMDERSA, the parent company of EDELAR, to Energía Riojana S.A. (ERSA) a full grounded Company of the Government of the Province of La Rioja, and the transfer of certain credits held with EMDERSA and EDELAR..

The offer was accepted and the transaction was closed and effectively carried out on October 30, 2013. The total price agreed amounts to Ps. 75.2 million and is payable in 120 monthly and consecutive installments, with a grace period of 24 months.

On October 31, the Company has completed the operations regarding the sale of its stake in EMDERSA, EDELAR’s controlling company and the transfer of credits related to both these companies to the Government of La Rioja for Ps. 55.7 million and Ps..19.5 million respectively.

Merge with the subsidiary Emdersa Holding

On October 7, 2013, the Company resolved to initiate the proceedings pursuant to which the Company will absorb Emdersa Holding in order to optimize its resources, simplifying its corporate, administrative and operating structure. This merge has no impact on the Company´s finances.

EGSSA’s Sale

On October 4th 2013, Pampa Energía paid the balance of principal and interest relating to EGSSA’s sale for a total of Ps. 53.3 million, through the delivery of the Company’s Senior Notes due 2022 for a nominal value of U$S 10.0 Million and Ps. 0.5 million in cash.

Agreement for the supply of electric power to Mitre and Sarmiento railway lines

In September 2013, the Company and the Interior and Transport Ministry entered into an agreement whereby the Federal Government will partially finance the necessary electric works to meet the greater power requirements of the Mitre and Sarmiento Railway lines. The total works amount to Ps.114.3 million, of which the Federal Government will contribute Ps. 60 million.


 

Third Quarter 2013
Page 2 of 7

 

Third Quarter 2013 Operating Figures

  OPERATING FIGURES  
In million of Pesos 3Q 2013 3Q 2012 % Change vs.
2012
Net Sales 911.7 732.4 24.5%
Electric power purchases (589.5) (477.2) 23.5%
Net Operating Loss (413.5) (254.0) 62.8%
Net Loss (512.3) (277.1) 84.9%

 

Net Sales increased 24.5% to Ps. 911.7 million in the third quarter of 2013 from Ps. 732.4 million in the third quarter of 2012, mainly due to the additional income from the Resolution No. 347/12 which represents approximately Ps. 142.2 million and an increase in the volume of energy sold.

Volume of Energy Sold increased 6.1% to 5,893 GWh in the third quarter of 2013 from 5,552 GWh in the third quarter of 2012, mainly due to an increase of 12.9% in sales in residential customers and a 9.7% increase in small commercial customers partially compensated by a decrease in sales of medium commercial and industrial customers.

Electric Power Purchases increased 23.5% to Ps.589.5 million in the third quarter of 2013 from Ps. 477.2 million in the third quarter of 2012, basically due to an increase in the cost set for mobile generation of Ps. 96.3 million and an increase in demand.

Net Operating Loss increased Ps. 159.5 million, to a loss of Ps. 413.5 million in the third quarter of 2013 from a loss of Ps. 254.0 million in the third quarter of 2012. This negative result was due to the increases in transmission and distribution expenses of Ps. 170.2 million, in selling expenses of Ps. 39.5 million and other net expenses of Ps. 20.0 million, partially offset by a decrease in administrative expenses of Ps. 3.4 million. These increases were generated basically by the salaries increases granted in 2013, an increase in ENRE penalties of Ps. 32.7 million and an increase in fees and remuneration for services of Ps. 46.6 million, also related to salary increases.

Net Loss increased Ps. 235.2.million, to a loss of Ps. 512.3 million in the third quarter of 2013 from a loss of Ps. 277.1 million in the same period of 2012, mainly due to the increase in costs described above, exchange differences of Ps. 80.7 million and commercial interests accrued to CAMMESA of Ps. 188.6 million partially offset by Aeseba’s Sale Trust repurchase of Edenor Notes due 2017 and 2022 of Ps. 21.9 million and positive inflow of Ps. 153.5 million in income tax.


 

Third Quarter 2013
Page 3 of 7

 

Adjusted EBITDA

Adjusted EBITDA has decreased to a loss of Ps. 288.3 million as of September 30 , 2013 vis à vis a loss of Ps. 116.1 million for the same period of 2012.

  3Q 2013 3Q 2012
 
  (in million of Pesos)
Operating Loss (413.5) (254.0)
Depreciation of PP&E 52.6 48.1
Loss on interest in subsidiaries 0.0 0.1
EBITDA (360.9) (205.8)
PUREE Funds 58.2 84.4
Commercial Interests 14.4 5.3
Adjusted EBITDA (288.3) (116.1)

 

Discussion of Financial Results:

Operating Expenses

 

Transmission & Distribution

Selling

Administrative

Total Expenses

% Variación

 

expenses

expenses

expenses

 

3Q 2013

3Q 2012

% Variation

3Q 2013

3Q 2012

%Variation

3Q 2013

3Q 2012

%Variation

Nine Month Ended September 30,

 

 

 

 

 

 

 

 

 

 

2013

2012

 

Salaries and social security taxes

185,044

105,685

75.1%

45,249

26,823

68.7%

32,823

35,118

(6.5%)

762,667

492,391

54.9%

Pension Plan

3,864

6,869

(43.7%)

977

1,702

(42.6%)

1,064

1,687

(36.9%)

17,716

20,440

(13.3%)

Communications Expenses

2,036

2,078

(2.0%)

7,870

4,521

74.1%

478

392

21.9%

30,249

21,869

38.3%

Allowance for doubtful accounts

0

0

0.0%

8,934

6,015

48.5%

-

-

0.0%

36,373

14,336

153.7%

Supplies Consumption

39,892

24,797

60.9%

-

470

(100.0%)

2,177

1,068

103.8%

86,978

67,274

29.3%

Rent and Insurance

1,617

888

82.1%

-

72

(100.0%)

5,540

4,308

28.6%

21,010

15,848

32.6%

Security Services

5,813

2,680

116.9%

142

224

(36.6%)

2,886

872

231.0%

20,511

11,592

76.9%

Fees and remuneration for services

171,066

125,411

36.4%

51,984

44,532

16.7%

11,134

17,692

(37.1%)

683,636

515,207

32.7%

Public Relations and Marketing

0

0

0.0%

-

-

0.0%

1,077

920

17.1%

2,123

2,181

(2.7%)

Advertising and Sponsorship

0

0

0.0%

-

-

0.0%

554

475

16.6%

1,093

1,124

(2.8%)

Reimbursement to personnel

319

236

35.2%

45

49

(8.2%)

273

230

18.7%

1,509

1,393

8.3%

Depreciation of property, plant and equipment

48,239

43,105

11.9%

2,296

3,568

0.0%

2,058

1,445

-

156,972

143,074

9.7%

Directors and Supervisory Committee member´s fees

0

0

0.0%

-

-

0.0%

630

630

0.0%

1,890

1,913

(1.2%)

ENRE penalties

49,346

25,286

95.2%

12,405

3,815

225.2%

-

-

-

166,928

73,191

128.1%

Taxes and Charges

0

0

0.0%

7,861

6,453

21.8%

1,448

762

0.0%

27,079

20,617

31.3%

Other

43

20

115.0%

9

6

50.0%

287

202

42.1%

1,142

1,086

5.2%

Total

507,279

337,055

50.5%

137,772

98,250

40.2%

62,429

65,801

-5.1%

2,017,876

1,403,536

43.8%

 

 

 


 
Third Quarter 2013
Page 4 of 7

Sales

The following table shows our energy sales by category of customer (in GWh) and the number of clients for each category:

 

3Q 2013

3Q 2012

Variation

Clients

Clients

 

In Gwh

%

In Gwh

%

September-13

September-12

Variation

Residential

2,837

48.1%

2,512

45.2%

12.9%

2,402,805

2,374,496

1.2%

Small Commercial

432

7.3%

394

7.1%

9.7%

312,164

311,395

0.2%

Medium Commercial

415

7.0%

428

7.7%

(3.0%)

32,297

31,255

3.3%

Industrial

793

13.5%

827

14.9%

(4.1%)

6,333

6,149

3.0%

Wheeling System

1,093

18.5%

1,066

19.2%

2.6%

723

709

2.0%

Others

 

 

 

 

 

 

 

 

Public Lighting

187

3.2%

186

3.3%

0.8%

22

22

0.0%

Shantytowns and Others

136

2.3%

140

2.5%

(3.0%)

385

377

2.1%

Total

5,893

100.0%

5,552

100.0%

6.1%

2,754,729

2,724,403

1.1%

Capital Expenditures

During the third quarter of 2013, our capital expenditures amounted to Ps. 225.4 million, compared to Ps. 130.1 million in the third quarter of 2012. This increase was mainly due to the funds raised under the Trust created by Resolution 347/2012 which are used exclusively to finance infrastructure and corrective maintenance of the facilities.

Our capital expenditures in the third quarter of 2013 consisted mainly of the following:

  • Ps. 180.1 million in new connections due to the increase in our customer base and grid enhancements;
  • Ps. 29.0 million in network maintenance and improvements;
  • Ps. 2.8 million in legal requirements;
  • Ps. 0.7 million in communications and telecontrol; and
  • Ps. 12.8 million of other investment projects.

For the nine month period ended September 30, 2013, our Capital Expenditures totalized to Ps. 694.8 million, compared to Ps..346.5 million in the same period of 2012, including capitalized costs in property, plant and equipment.


 

Third Quarter 2013
Page 5 of 7

 

PUREE FundsPUREE Funds

For the nine month period ended September 2013, PUREE funds increased 17.0%, amounting Ps..338.1 million vis à vis Ps. 288.9 million in the same period of 2012.

Energy Losses

In the third quarter of 2013 energy losses decreased 0.5 bps compared to the third quarter of 2012.

 

Debt Status

As of today, the outstanding principal amount of our dollar denominated financial debt (net of the senior notes due 2022 that we hold and the notes due 2022 and 2017 held by AESEBA Sale Trust) is US$ 211.4 million, consisting of US$ 14.8 million principal amount of Senior Notes due 2017 and US$ 196.6 million principal amount of Senior Notes due 2022.

 


 

Third Quarter 2013
Page 6 of 7

 

About EDENOR

Empresa Distribuidora y Comercializadora Norte S.A. (Edenor) is the largest electricity distribution company in Argentina in terms of number of customers and electricity sold (both in GWh and Pesos). Through a concession, Edenor distributes electricity exclusively to the northwestern zone of the greater Buenos Aires metropolitan area and the northern part of the city of Buenos Aires, which has a population of approximately 7 million people and an area of 4,637 sq. km. In 2012, Edenor sold 20,760 GWh of energy and purchased 23,934 GWh of energy, with net sales of approximately Ps. 3.0 billion and net loss of Ps. 1,016.5 million.

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management’s current view and estimates of future economic circumstances, industry conditions, Company performance and financial results. The words “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the Company are intended to identify forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties, including those identified in the documents filed by the Company with the U.S. Securities and Exchange Commission. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

Edenor S.A.
6363 Del Libertador Avenue, 4th Floor
(C1428ARG) Buenos Aires, Argentina
Fax: 5411.4346.5358
investor@edenor.com
www.edenor.com

Conference Call Information

There will be a conference call to discuss Edenor’s quarterly results on Wednesday, November 13, 2013, at 12:00 a.m. Buenos Aires time / 10:00 a.m. New York time. For those interested in participating, please dial + 1(877) 317 - 6776 in the United States or, if outside the United States, +1(412) 317-6776 or 0800-444-2930 in Argentina. Participants should use conference ID Edenor and dial in five minutes before the call is set to begin. There will also be a live |audio webcast of the conference at www.edenor.com in the Investor Relations section.

There will be a replay of the conference call available 1 hour after the end of the conference through 11/13/2013 12:00 a.m. NY Time. To access the replay, please dial 1(877) 344-7529 or 1(412) 317-0088. The Conference ID: 10035585

For more information, please access: www.edenor.com ; www.cnv.gob.ar



 

Third Quarter 2013
Page 7 of 7

 

Income Statement, Cash Flow and Balance Sheet*
(For the nine month period ended September 30, 2013 and 2012
in thousands of U.S. dollars and Argentine Pesos)

Financial tables have been converted into U.S. dollars at a rate of Ps. 5,793 per dollar, the buying rate as of September 30, 2013, solely for the convenience of the reader.

Standalone Income Statement

 

09.30.2013

09.30.2012

Continuing Operations

US$

AR$

AR$

Revenue from sales

443,378

2,568,491

2,167,439

Electric power purchases

(273,281)

(1,583,119)

(1,306,808)

Subtotal

170,097

985,372

860,631

Transmission and distribution expenses

(240,701)

(1,394,383)

(973,446)

Gross Loss

(70,604)

(409,011)

(112,815)

Selling expenses

(69,164)

(400,669)

(259,933)

Administrative expenses

(38,464)

(222,824)

(170,157)

Other operating expenses, net

(13,311)

(77,111)

(57,704)

Loss on interest in subsidiaries

(256)

(1,484)

(2,444)

Gain (Loss) from interest in joint ventures

1

4

(21)

Operating loss before Resolution SE 250/13

(191,800)

(1,111,095)

(603,074)

Higher costs recognition- Resolution SE 250/13

381,948

2,212,623

-

Operating profit (loss)

190,148

1,101,528

(603,074)

Net financial expense

(47,604)

(275,768)

(158,006)

Profit (Loss) before taxes

142,544

825,760

(761,080)

Income tax

10,662

61,763

71,135

Profit (Loss) for the period from continuing operations

153,206

887,523

(689,945)

Discontinued operations

(16,659)

(96,503)

62,967

Profit (Loss) for the year

136,548

791,020

(626,978)

 

 

 

 

Basic and diluted earnings (loss) per share:

 

 

 

Earnings (Loss) per share from continuing operations

0.18

1.03

(0.77)

(Loss) Earnings per share from discontinued operations

(0.02)

(0.11)

0.07

 

Standalone Cash Flow

 

09.30.2013

09.30.2012

Changes in chash and cash equivalents

US$

AR$

AR$

Cash and cash equivalents at beginning of year

10,885

63,059

98,227

Exchange differences in cash and cash equivalents

1,031

5,970

2,203

Net increase / (decrease) in cash and cash equivalents

37,710

218,454

(57,434)

Cash and cash equivalents at end of period

49,626

287,483

42,996

       

Profit (Loss) for the period

136,548

791,020

(626,978)

Net cashflow provided by operating activities

172,237

997,769

15,337

Net cash flows used in investing activities

(117,994)

(683,542)

(62,395)

Net cash flow used in financing activities

(16,533)

(95,773)

(10,376)

Net increase / (decrease) in cash and cash equivalents

37,710

218,454

(57,434)

 

Standalone Balance Sheet

 

09.30.2013

09.30.2012

ASSETS

US$

AR$

AR$

Total non-current assets

861,954

4,993,302

4,953,575

Total current assets

421,796

2,443,462

978,689

Other assets available for sale

5,703

33,035

41,518

TOTAL ASSETS

1,289,453

7,469,799

5,973,782

TOTAL EQUITY

208,735

1,209,201

418,181

LIABILITIES

 

 

 

Total non-current liabilities

480,853

2,785,584

3,812,330

Total current liabilities

599,864

3,475,014

1,743,271

TOTAL LIABILITIES

1,080,718

6,260,598

5,555,601

TOTAL LIABILITIES AND EQUITY

1,289,453

7,469,799

5,973,782

 

*Consolidated figures are no longer shown as the Company has discontinued its operations in subsidiaries.

 

 
 
 
 
SIGNATURES
 
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



 
 
Empresa Distribuidora y Comercializadora Norte S.A.
     
     
  By:  /s/ Leandro Montero
  Leandro Montero
  Chief Financial Officer
 
 
 
 
Date: November 12, 2013