Edenor Announces Results for the First Nine Months of 2007
09 11월 2007 - 8:00AM
PR Newswire (US)
BUENOS AIRES, Argentina, Nov. 8 /PRNewswire-FirstCall/ -- 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 nine months ended September 30, 2007 (third quarter of 2007
accumulated). All figures are stated in Argentine Pesos and have
been prepared in accordance with Argentine GAAP. Solely for the
convenience of the reader, Peso amounts as of and for the nine-
month period ended September 30, 2007 have been translated into
U.S. Dollars at the buying rate for U.S. Dollars quoted by Banco de
la Naci�n Argentina (Banco Naci�n) on September 30, 2007 of Ps.
3.15. 9M07 Highlights Net Sales increased 47.0% to Ps. 1,503.2
million in the nine-month period ended September 30, 2007, compared
to Ps.1,022.9 million in the same period of 2006, mainly due to the
application to our non residential customers of the increase in our
distribution margin (VAD) from February 1, 2007 and the recording
of the retroactive portion of the VAD increase for the period from
November 1, 2005 through January 31, 2007, which totals Ps. 218.6
million. As of September 30, 2007 we had already invoiced Ps. 33.5
million of that amount while Ps. 185.1 million remains unbilled.
Excluding the unbilled amount of retroactive portion of the VAD
increase, net sales in the nine-month period ended September 30,
2007 would have been Ps. 1,318.1 million, representing a 28.9%
increase compared to the same period of 2006. This increase is also
driven by an increase in the volume of energy sold compared to the
nine months ended September 30, 2006. Volume of Energy Sold,
increased 9.4% to 13,574.1 GWh in the first nine months of 2007,
compared to 12,408.3 GWh in the same period of 2006. This increase
was due mainly to a 7.6% increase in average GWh consumption per
customer and to a 1.7% increase in the number of customers. Gross
Margin increased 91.6% to Ps. 830.6 million in the first nine
months of 2007, compared to Ps. 433.5 million in the same period of
2006. This increase is also largely due to the application of the
increase in our distribution margin (VAD) from February 1, 2007,
the recording of the retroactive portion of this increase and the
increase in volume of energy sold, as described above. Excluding
the unbilled amount of retroactive portion of the VAD increase, our
gross margin would have been Ps. 645.5 million in the nine-month
period ended September 30, 2007, representing a 48.9% increase when
compared with the same period of 2006. Net Operating Income
increased significantly to Ps. 350.8 million for the nine months
ended September 30, 2007, compared to Ps. 30.4 million in the same
period of 2006. This increase is also largely due to the
application of the increase in our distribution margin (VAD) from
February 1, 2007, the recording of the retroactive portion of this
increase and the increase in volume of energy sold, as described
above. Excluding the unbilled amount of retroactive portion of the
VAD increase, net operating income for the first nine months of
2007 would have amounted to Ps. 165.7 million. Net Income reached
Ps. 69.9 million in the first nine months of 2007, compared to Ps.
260.0 million in the same period of 2006. In the nine-month period
ended September 30, 2007, net income was positively affected by the
application of the VAD increase, the increase in volume of energy
sold and the recording of the retroactive portion of the VAD
increase, which were partially offset by the net exchange losses
(Ps. 32.1 million) related to our financial debt (which is
denominated in US dollars), the adjustment to present value of our
financial debt (Ps.46.3 million), the adjustment to present value
of the retroactive portion of the VAD increase and certain trade
receivables (Ps.32.4 million), and the recording of a tax charge
(Ps. 106.8 million) generated by the reversal of the deferred tax
asset related to the tax loss carryforward due to a significant
increase in our taxable income, which was partially offset by the
tax deduction of ENRE penalties in 2007 fiscal year. In the same
period of 2006, net income was positively affected by the gain
resulting from our debt restructuring, including the adjustment to
present value of the restructured debt (Ps. 254.7 million) and the
recognition of the partial reversal of the valuation allowance of
our net deferred tax assets (Ps. 72.3 million). FINANCIAL
HIGHLIGHTS Nine months period ended Nine Nine September months
months 30 * period period (excluding the ended ended % Change
unbilled % Change September September vs. retroactive vs. 30 * 30 *
2006 VAD adjustment) 2006 2007 2006 2007 Net Sales 1,503.2 (1)
1022.9 47.0% 1318.1 28.9% Electric power purchases (672.6) (589.4)
14.1% (672.6) 14.1% Gross margin 830.6 (1) 433.5 91.6% 645.5 48.9%
Net Operating Income (loss) 350.8 (1) 30.4 1,053.9% 165.7 445.1% *
In millions of Argentine Pesos (1) As of September 30, 2007, energy
sales include the retroactive portion of the VAD increase, which
amounts to Ps. 218.6 million and is being invoiced in 55
consecutive monthly installments, starting in February 2007. Of
this amount, Ps. 33.5 million were invoiced as of September 30,
2007. 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 2006, Edenor sold 16,632 GWh
of energy and purchased 18,700 GWh of energy, with net sales of
approximately Ps. 1.4 billion and net income of Ps. 293.1 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. A LONGER VERSION OF THIS PRESS RELEASE WITH FINANCIAL
STATEMENTS AND DETAILED INFORMATION WILL BE FILED WITH THE UNITED
STATES SECURITIES AND EXCHANGE COMMISSION, AND CAN BE FOUND AT
WWW.EDENOR.COM IN THE INVESTOR RELATIONS/FINANCIAL REPORTS SECTION.
Conference Call Information There will be a conference call to
discuss the Edenor's quarterly results on Friday, November 9, 2007,
at 11:00 a.m. Buenos Aires time / 9:00 a.m. EST. For those
interested in participating, please dial (888) 802-8577 in the
United States or, if outside the United States, (973) 935-8754.
Participants should use conference ID# 9373363, and dial in five
minutes before the call is set to begin. There will also be a live
audio webcast of the conference at http://www.edenor.com/ in the
Investor Relations section. The conference call will become
available for review on Conference Replay one hour after its
conclusion, and will remain available through November 16, 2007.
Please dial (877) 519-4471 or (973) 341-3080, and follow the
instructions. The Conference ID# for the replay is 9373363. For
more information, please access http://www.edenor.com/ Investor
Relations Contacts: In Buenos Aires Ivana Del Rossi Investor
Relations Officer Tel: 5411.4346.5127 Veronica Gysin Investor
Relations Tel: 5411.4346.5231 Edenor S.A. 1025 Azopardo Street,
16th Floor (C1107ADQ) Buenos Aires, Argentina Fax: 5411.4346.5358
Email: http://www.edenor.com.ar/ In New York Melanie
Carpenter/Maria Barona i-advize Corporate Communications, Inc. 82
Wall Street, Suite 805 New York, NY 10005 Tel: 212.406.3690 Fax:
212.509.7711 Email: DATASOURCE: Edenor CONTACT: Ivana Del Rossi,
Investor Relations Officer, +011-5411-4346- 5127, or Veronica
Gysin, Investor Relations, +011-5411-4346-5231, both of Edenor, ;
or Melanie Carpenter or Maria Barona, i-advize Corporate
Communications, +1-212-406-3690, fax, +1-212-509-7711, , for Edenor
Web site: http://www.edenor.com.ar/
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