6-K 1 enipr1q12_6k.htm EARNINGS RELEASE 1Q12 enipr1q12_6k.htm - Generated by SEC Publisher for SEC Filing

FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

For the month of April, 2012

Commission File Number: 001-12440

ENERSIS S.A.
(Translation of Registrant’s Name into English)

Santa Rosa 76
Santiago, Chile
(Address of principal executive office)

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 if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes    [  ]      No    [X]

Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes    [  ]      No    [X]

Indicate by check mark whether by furnishing the information
ontained in this Form, the Registrant 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): N/A

 

 

ENERSIS

ANNOUNCES CONSOLIDATED RESULTS

FOR THE PERIOD ENDED ON MARCH 31st,, 2012

 

 

Highlights for the Period

 

Ø  Operating revenues increased 4.4%, reaching Ch$ 1,644,177 million, mainly as a consequence of higher energy sales by Ch$ 86,132 million, in line with important increases in demand for electricity, as follows,

 

·        Argentina          6.4%

·        Brazil               6.6%

·        Chile                6.8%

·        Colombia          4.7%

·        Peru                 6.4%

 

Ø  Physical sales in distribution increased 981 GWh, or 5.7%, reaching 18,251 GWh. While in generation, the production reached 16,215 GWh, increasing 544 GWh, equivalent to 3.5%.

 

Ø  Another positive factor which contributes to understand this better result, corresponds to the addition of 380,000 new clients during the last twelve months.

 

Ø  Operating costs increased 6.0%, reaching Ch$ 925,421 million, due to higher energy purchases of Ch$ 38,940 million, increased fuel consumption by Ch$ 13.386 million, and higher transportation cost of Ch$ 28,688 million. As largely informed, these higher costs are heavily influenced by two and a half years of sustained drought in Chile.

 

Ø  EBITDA of the Company increased 14.4% up to Ch$ 497,025 million, in a solid proof of the benefits of adequate diversification.

 

Ø  Financial result was Ch$ 84,287 million losses, or 21.5% higher than for the first quarter of 2011. This negative output is mainly due to higher interest expenses, increase in negative exchange rate variations, as well as negative impact on loss from indexed assets and liabilities.

 

Ø  Net Income before taxes improved 7.6% or Ch$ 20.867 million of higher results

 

Ø  Taxes decreased by Ch$ 28.893 million

 

Ø  Net income increased 27,4% or Ch$ 49.759 million, from Ch$ 181.340 million up to Ch$ 231.099 million. 

 

Ø  The diversified portfolio of Enersis Group, allowed us to maintain a well balanced contribution to our EBITDA, by business segment,

 

•     Generation and Transmission:           46%

•     Distribution:                                      54%

 

 

 

 

 

Pg. 1

 

 

 

Distribution Business

 

Consolidated figures for the distribution businesses are detailed as follows:

 

Ø  Operating revenues rose 8.1% to Ch$ 1,163,172 million.

 

Ø  Procurement and service costs were Ch$ 739,972 million, 4.8% higher than for the same period of 2011.

 

Ø  EBITDA in the first quarter of 2012 amounted to Ch$ 267,165 million, 29.7% higher than the first quarter of 2011.

 

Ø  Energy sales by customer type for each of our distribution companies is as follows:

 

 

 

Factors influencing this higher distribution business EBITDA are as follows:

 

In Argentina, EBITDA decreased by Ch$ 7,936 million, mainly explained by:

Ø  Increase in operating costs, mainly due to higher energy purchases and salary increases under union agreements.

Ø  This was partially offset by higher physical sales, due to a higher demand for electricity.

 

In Brazil, EBITDA grew by Ch$ 22,226 million as result of:

Ø  Higher energy sales income of Ch$ 11,431 million, explained by a 6.8% larger demand and  higher average sale price.

Ø  This was partially compensated by Ch$ 35,087 or 28.1% lower other operating income.

 

In Chile, EBITDA grew by Ch$ 5,354 million, mainly explained by:

Ø  Higher energy sales income of Ch$ 11,666 million, explained by 6.8% larger demand and  higher average energy sale price.

 

In Colombia, EBITDA increased by Ch$ 41,049 million, mostly as result of:

Ø  The effect of the Colombian government equity tax reform, which implied recording in 2011 the entire tax payable during the period 2011-2014.

Ø  Higher energy sales income of Ch$ 28,623 million an 18.4% increase, explained by an 11.7% increase in demand and higher average energy sale price.

 

In Peru, EBITDA rose Ch$ 485 million as result of:

Ø  6.3% increase in physical sales.

Ø  Higher other operating incomes of 3.7%.

Ø  The previous was partially offset by Ch$ 12,815 million of higher energy purchases or 29.1% increase over the same period last year, and by 0.1 p.p increase in energy losses.

 

 

 

 

Pg. 2

 

 

Generation and Transmission Business

 

Ø   Operating revenues decreased 1.0% reaching Ch$ 632,454 million, due to a lower average energy sale price.

 

Ø   Procurement and services costs increased 6.8% to Ch$ 342,102 million as result of higher transportation expenses of Ch$ 23,120 million and higher fuel consumption of Ch$ 13,385 million.

  

Ø   EBITDA decreased 0.5%, amounting to Ch$ 230,587 million.

 

Ø   Consolidated electricity generation grew 5.6%, reaching 14,093 GWh, basically explained by better performances of Colombia and Brazil.

 

Ø   Consolidated physical sales increased 3.5% to 16,215 GWh, mainly because of Brazil and Colombia.

 

Main explanations for these changes are:

 

In Argentina, EBITDA decreased by Ch$ 7,756 million due to:

Ø   Lower operation revenues of Ch$ 10,458 as a consequence of an 18.6% reduction in average energy sale prices.

Ø   Higher personnel expenses of Ch$ 2,810 million.

Ø   This was partially offset by lower fuel consumption cost of Ch$ 5,165 million.

 

In Brazil, EBITDA increased by Ch$ 13,993 million due to:

Ø   Lower energy purchases cost of Ch$ 8,054 million, mainly explained by our subsidiary Endesa Fortaleza.

Ø   Higher revenues on energy sales of Ch$ 12,263 million

 

In Chile, EBITDA decreased Ch$ 63,026 million, mainly due to:

Ø   Lower operating revenues of Ch$ 38,168 million due to a 14.4% reduction in average energy sale prices.

Ø   Higher transportation cost of Ch$ 17,941 million and higher fuel consumption cost of Ch$ 4,947 million, partially offset by lower energy purchase cost of Ch$ 4,926 million.

 

In Colombia, EBITDA grew by Ch$ 50,665 million, mainly due to,

Ø   Non-recurring effect of the equity tax imposed by the Colombian government, which implied booking on the first quarter of 2011 the full amount payable in the period 2011-2014. This had an impact of Ch$ 42,672 million in operating result in that quarter.

Ø   Increase in operating revenues of Ch$ 19,801 million due to a 14.4% increase in the average energy sale price and a 2.9% increase in physical sales due to higher hydro generation.

Ø   This was partially offset by a higher fuel consumption cost of Ch$ 8,584 million.

 

In Peru, EBITDA increased by Ch$ 5,001 million due to:

Ø   Higher operating revenues of Ch$ 10,821 derive from a 17% increase in average energy sale price and a 2.0% increase in physical sales

 

 

 

Pg. 3

 

 

Ø   The latter was partially offset by higher fuel consumption cost of Ch$ 4,456 million and higher personnel expenses of Ch$1,438 million.

 

Financial Summary

 

Ø  The average nominal interest rate increased from 9.6% to 9.7%., affected by inflation in Chile.

 

Ø  Liquidity, a key consideration in our financial management, continues to be in a very solid position, as shown below on a consolidated basis for Enersis,

 

·         Cash and cash equivalents US$ 2,289 million

·         Committed credit lines US$ 905 million

·         Non-committed credit lines available US$ 1,911 million.

 

Ø  Coverage and protection: In order to mitigate exchange rate and interest rate risks, Enersis has established strict internal rules to protect our cash flows and balance sheet from fluctuations in these variables.

 

·         Our exchange rate policy is based on cash flows and we strive to maintain a balance between US dollar indexed flows, and assets and liabilities in such currency. In addition to this policy, we have contracted cross currency swaps for a total amount of US$ 1,453 million and forwards for US$ 241 million.

·         In order to reduce financial results’ volatility due to changes in market interest rates, we seek to maintain an adequate balance in our debt structure. Thus, we have contracted interest rate swaps (from variable to fixed rates) for US$ 311 million.

 

 

Market Summary

 

Ø  Since April 2011, the Chilean Stock Exchange’s main index, IPSA, showed an increase of 1.0%, remaining active for most part of the year, although reflecting the uncertainty prevailing in the international stock markets, the Chilean Stock market was decoupled of global movements, as well as other Latin American markets.

 

Ø  This situation can be seen in the behavior of some Latin America markets, as follows:

 

                        BOVESPA (Brazil):       -5.9%

                        MERVAL (Argentina):    -20.8%

                        COLCAP (Colombia):    1.5%

                        ISBVL (Peru):               11.0%.

 

            In Europe, main stock exchanges showed poor results,

                        IBEX:                           -24.3%

                        UKX:                           -2.4%

                        FTSE 250:                    -0.5%.

             

On the other hand, USA indexes showed a good performance; S&P 500: 6.2% and Dow Jones    Industrial: 7.2%. All these stock performances are calculated in their domestic currency and are,       therefore, non comparable

 

 

 

 

Pg. 4

 

 

 

Ø  Enersis’ share price remained with no major changes during the last 12 months. The price as of March 31, 2012 was $198.1 which represents a 0.2% decrease in comparison with March 31, 2011 price, when it reached $198.5. This flat performance is mainly explained by the negative global economic scenario and also by the drought affecting Chile for the last 30 months, reducing the results of its generation subsidiaries. The results of the first quarter show, however, that thanks to the diversification, it is possible to compensate local negative outcome.

 

Ø  Enersis’ ADR also remained mostly flat during the last 12 months. The price fell from US$ 20.8 on March 31, 2011, to US$ 20.2 on March 31, 2012. The global economic situation, as well as the drought affecting Chile, impacted the equity’s value.

 

Ø  During last twelve months, Enersis was, again, among the most actively traded companies in the local market (Santiago Stock Exchange and Chilean Electronic Exchange), with a daily average trading volume of US$ 5.4 million.

 

 

 

Source: Santiago Stock Exchange

 

 

 

Pg. 5

 

Risk Rating Classification Information

 

The key considerations released by the Rating Agencies to maintain a stable Outlook of the Company, are, its well diversified asset portfolio, strong credit metrics, adequate debt structure and solid liquidity. The Company’s geographic diversification in Latin America provides a natural hedge against different regulations and weather conditions. Most of Enersis’ operating subsidiaries are financially strong and have leading market positions in the countries where Enersis operates.

 

Among the main events of 2011 and 2012, we can highlight the following:

 

Ø  On April 25, 2011, Moody's upgraded the senior unsecured rating of Enersis from “Baa3” to “Baa2”, with stable outlook. We have just had our Update Meeting with no changes.

 

Ø  On December 30, 2011, Feller Rate confirmed the “AA” local rating of Enersis’ bonds, shares and commercial papers program. Rating perspectives continue to be stable.

 

Ø  More recently, Standard & Poor’s (November 30, 2011) and Fitch Ratings (January 5, 2012) affirmed the international credit risk rating for Enersis on “BBB+”, with stable outlook.

 

Current international risk ratings are:

 

Enersis

S&P

Moody’s

Fitch

Corporate

BBB+ / Stable

Baa2 / Stable

BBB+ / Stable

 

Local ratings (for securities issued in Chile):

 

Enersis

Feller Rate

Fitch

Shares

1st Class Level 1

1st Class Level 1

Bonds

AA / Stable

AA / Stable

 

 

 

 

Pg. 6

 

 

Table of Contents 

 

Distribution Business  2  
Generation and Transmission Business  3  
Financial Summary  4  
Market Summary  4  
Risk Rating Classification Information  6  
TABLE OF CONTENTS  7  
 
GENERAL INFORMATION  9  
SIMPLIFIED ORGANIZATIONAL STRUCTURE  10  
CONSOLIDATED INCOME STATEMENT ANALYSIS  11  
NET INCOME  11  
NET FINANCIAL INCOME  13  
SALE OF ASSETS  13  
TAXES  13  
CONSOLIDATED BALANCE SHEET ANALYSIS  14  
ASSETS UNDER IFRS  14  
BOOK VALUE AND ECONOMIC VALUE OF ASSETS  16  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY UNDER IFRS  17  
DEBT MATURITY WITH THIRD PARTIES, THOUSAND US$  19  
DEBT MATURITY WITH THIRD PARTIES, MILLION CH$  19  
EVOLUTION OF KEY FINANCIAL RATIOS  20  
UNDER IFRS  21  
CASH FLOW RECEIVED FROM FOREIGN SUBSIDIARIES BY ENERSIS, CHILECTRA AND ENDESA CHILE  22  
THE PRINCIPAL RISKS ASSOCIATED TO THE ACTIVITIES OF THE ENERSIS 
GROUP  23  
 
ARGENTINA  28  
GENERATION  28  
Endesa Costanera  28  
El Chocón  29  
DISTRIBUTION  30  
Edesur  30  
BRAZIL  31  
ENDESA BRASIL  31  
GENERATION  31  
Cachoeira Dourada  31  
Fortaleza (cgtf)  32  
TRANSMISSION  33  
CIEN  33  
DISTRIBUTION  34  
Ampla  34  
Coelce  35  
CHILE  36  
GENERATION  36  

 

Pg. 7

 

 

 

Endesa Chile  36  
DISTRIBUTION  37  
Chilectra  37  
COLOMBIA  39  
GENERATION  39  
Emgesa  39  
DISTRIBUTION  40  
Codensa  40  
GENERATION  41  
Edegel  41  
DISTRIBUTION  42  
Edelnor  42  
MARKET INFORMATION  44  
EQUITY MARKET  44  
DEBT MARKET  47  
CONFERENCE CALL INVITATION  48  
DISCLAIMER  49  

 

 

Pg. 8

 
 

General Information

 

(Santiago, Chile, Wednesday, April 25, 2012.) Enersis S.A. (NYSE: ENI), announced today its consolidated financial results for the first quarter of 2012. All figures are in Chilean pesos (Ch$) and in accordance with International Financial Reporting Standards (IFRS). Variations refer to the period between March 31, 2011 and March 31, 2012.

 

Figures as of March 31, 2012 are additionally translated into US$, merely as a convenience translation, using the exchange rate of US$ 1 = Ch$ 487.44 for the Balance Sheet, and the average exchange rate for the period of US$ 1 = Ch$ 489.04  for the Income Statement, Cash Flow Statements, Capex and Depreciation values.

 

The consolidation includes the following investment vehicles and companies:

a)    In Chile: Endesa Chile (NYSE: EOC)*, Chilectra, and Inmobiliaria Manso de Velasco.

b)    Others than Chile: Distrilima (Peru), Endesa Brasil (Brazil)**, Edesur (Argentina) and Codensa (Colombia).

 

*    Includes Endesa Chile Chilean subsidiaries (Endesa Eco, Celta, Pangue, Pehuenche, San Isidro, and Tunel El Melón), non Chilean subsidiaries (Endesa Costanera, El Chocón, Edegel and Emgesa) and jointly controlled companies (GasAtacama, Transquillota and HidroAysén.)

** Includes Endesa Fortaleza, CIEN, Cachoeira Dourada, Ampla and Coelce.

 

 

 

 

Pg. 9

 
 
Simplified Organizational Structure

 

 

 

 

 

Pg. 10

 
 

Consolidated Income Statement Analysis

Net Income

 

Enersis’ Net Income attributable to the owners of the controller for the cumulative period as of March 31, 2012 reached Ch$ 100,661 million, representing a 5.0% increase over the same period 2011, which was Ch$ 95,851 million.

 

Under IFRS

 

Table 1

            

CONSOLIDATED INCOME STATEMENT

(Million Ch$)

  

(Thousand US$)

 

3M 2011

3M 2012

Var 2011-2012

Chg %

  

3M 2012

Sales

1,502,128

1,591,582

89,454

6.0%

  

3,254,503

Energy sales

1,385,458

1,471,590

86,132

6.2%

  

3,009,140

Other sales

11,457

5,493

(5,964)

(52.1%)

  

11,231

Other services

105,213

114,500

9,287

8.8%

  

234,132

Other operating income

73,441

52,535

(20,906)

(28.5%)

  

107,425

Revenues

1,575,569

1,644,117

68,548

4.4%

  

3,361,928

             

Energy purchases

(445,138)

(484,078)

(38,940)

(8.7%)

  

(989,854)

Fuel consumption

(152,939)

(166,326)

(13,386)

(8.8%)

  

(340,106)

Transportation expenses

(90,199)

(118,888)

(28,688)

(31.8%)

  

(243,104)

Other variable costs

(184,769)

(156,130)

28,639

15.5%

  

(319,259)

Procurements and Services

(873,046)

(925,421)

(52,376)

(6.0%)

  

(1,892,323)

 

 

 

 

 

  

 

Contribution Margin

702,524

718,696

16,172

2.3%

  

1,469,606

             

Other work performed by entity and capitalized

8,623

9,207

584

6.8%

  

18,826

Employee benefits expense

(90,759)

(102,671)

(11,912)

(13.1%)

  

(209,943)

Other fixed operating expenses

(186,028)

(128,207)

57,821

31.1%

  

(262,160)

Gross Operating Income (EBITDA)

434,360

497,025

62,665

14.4%

  

1,016,328

Depreciation and amortization

(105,646)

(112,847)

(7,201)

(6.8%)

  

(230,753)

Reversal of impairment profit (impairment loss) recognized in profit or loss

22,001

(7,640)

(29,641)

(134.7%)

  

(15,623)

Operating Income

350,715

376,538

25,823

7.4%

  

769,952

             

Net Financial Income

(69,391)

(84,287)

(14,897)

(21.5%)

  

(172,352)

Financial income

40,948

43,895

2,947

7.2%

  

89,758

Financial costs

(108,203)

(117,766)

(9,563)

(8.8%)

  

(240,810)

Gain (Loss) for indexed assets and liabilities

(3,719)

(6,807)

(3,087)

(83.0%)

  

(13,918)

Foreign currency exchange differences, net

1,583

(3,610)

(5,193)

(328.1%)

  

(7,382)

Gains

20,465

30,101

9,636

47.1%

  

61,550

Losses

(18,882)

(33,711)

(14,829)

(78.5%)

  

(68,933)

Share of profit (loss) of associates accounted for using the equity method

2,379

2,728

349

14.7%

  

5,579

Net Income From Other Investments

52

138

86

166.5%

  

283

Net Income From Sale of Assets

(8,977)

527

9,504

105.9%

  

1,078

             

Net Income Before Taxes

274,778

295,644

20,866

7.6%

  

604,540

Income Tax

(93,438)

(64,545)

28,893

30.9%

  

(131,984)

NET INCOME ATTRIBUTABLE TO:

181,340

231,099

49,759

27.4%

  

472,556

Owners of parent

95,851

100,661

4,811

5.0%

  

205,834

Non-controlling interest

85,489

130,437

44,948

52.6%

  

266,721

             

Earning per share (Ch$ /share and US$ / ADR)

2.9  

3.1

0.1

5.0%

  

0.3

 

 

Operating income increased by Ch$ 25,823 million, a 7.4% increase when compared to the first quarter of 2011.

 

Operating revenues and costs breakdown by business line for the period ending on March 31, 2011 and March 31, 2012 are:

 

 

 

Pg. 11

 

 

Table 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income by Businesses

Generation and Transmission

Distribution

Million Ch$

 

Chg%

 

Th. US$

 

Million Ch$

 

Chg%

 

Th. US$

 

3M 2011

3M 2012

 

 

 

3M 2012

 

3M 2011

3M 2012

 

 

 

3M 2012

 

Operating Revenues

639,046

632,454

 

(1.0%)

 

1,293,256

 

1,075,926

1,163,172

 

8.1%

 

2,378,481

 

Operating Costs

(438,281)

(454,559)

 

3.7%

 

(929,493)

 

(921,954)

(963,025)

 

4.5%

 

(1,969,214)

 

Operating Income

200,765

177,894

 

(11.4%)

 

363,763

 

153,972

200,148

 

30.0%

 

409,267

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income by Businesses

Eliminations and Others

 

Consolidated

 

Million Ch$

 

Chg%

 

Th. US$

 

Million Ch$

 

Chg%

 

Th. US$

 

3M 2011

3M 2012

 

 

 

3M 2012

 

3M 2011

3M 2012

 

 

 

3M 2012

 

Operating Revenues

(139,403)

(151,509)

 

8.7%

 

(309,808)

 

1,575,569

1,644,117

 

4.4%

 

3,361,928

 

Operating Costs

135,381

150,004

 

10.8%

 

306,731

 

(1,224,854)

(1,267,580)

 

3.5%

 

(2,591,976)

 

Operating Income

(4,023)

(1,505)

 

(62.6%)

 

(3,077)

 

350,715

376,538

 

7.4%

 

769,952

 

 

Generation and transmission business evidenced an operating income of Ch$ 177,894 million, representing a Ch$ 22,871 million decrease from the first quarter of 2011, an 11.4% decrease. Physical sales increased 3.5%, amounting to 16,215 GWh in this quarter (15,672 GWh for the first quarter of 2011).

 

Operating income for generation and transmission business line, detailed by country is presented in the following table:

 

Table 3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Generation & Transmission

Chile

 

Argentina

 

Brazil

Million Ch$

 

Chg%

 

Th. US$

 

Million Ch$

 

Chg%

 

Th. US$

 

Million Ch$

 

Chg%

 

Th. US$

3M 2011

3M 2012

 

 

 

3M 2012

 

3M 2011

3M 2012

 

 

 

3M 2012

 

3M 2011

3M 2012

 

 

 

3M 2012

Operating Revenues

322,519

284,351

 

(11.8%)

 

581,448

 

69,460

59,002

 

(15.1%)

 

120,649

 

72,320

83,731

 

15.8%

 

171,216

% of consolidated

50%

45%

 

 

 

45%

 

11%

9%

 

 

 

9%

 

11%

13%

 

 

 

13%

Operating Costs

(227,787)

(252,101)

 

10.7%

 

(515,503)

 

(58,305)

(58,797)

 

0.8%

 

(120,229)

 

(28,650)

(43,962)

 

53.4%

 

(89,894)

% of consolidated

52%

55%

 

 

 

55%

 

13%

13%

 

 

 

13%

 

7%

10%

 

 

 

10%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

94,732

32,250

 

(66.0%)

 

65,945

 

11,155

205

 

(98.2%)

 

420

 

43,671

39,770

 

(8.9%)

 

81,322

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Generation & Transmission

Peru

 

Colombia

 

Consolidated

Million Ch$

 

Chg%

 

Th. US$

 

Million Ch$

 

Chg%

 

Th. US$

 

Million Ch$

 

Chg%

 

Th. US$

3M 2011

3M 2012

 

 

 

3M 2012

 

3M 2011

3M 2012

 

 

 

3M 2012

 

3M 2011

3M 2012

 

 

 

3M 2012

Operating Revenues

59,474

70,295

 

18.2%

 

143,741

 

115,384

135,185

 

17.2%

 

276,429

 

639,046

632,454

 

(1.0%)

 

1,293,256

% of consolidated

9%

11%

 

 

 

11%

 

18%

21%

 

 

 

21%

 

100%

100%

 

 

 

 

Operating Costs

(36,180)

(42,718)

 

18.1%

 

(87,350)

 

(87,470)

(57,092)

 

(34.7%)

 

(116,744)

 

(438,281)

(454,559)

 

3.7%

 

(929,493)

% of consolidated

8%

9%

 

 

 

9%

 

20%

13%

 

 

 

13%

 

100%

100%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

23,295

27,577

 

18.4%

 

56,391

 

27,913

78,092

 

179.8%

 

159,685

 

200,765

177,894

 

(11.4%)

 

363,763

 

 

Distribution business showed a Ch$ 46,175 million higher operating income, totaling Ch$ 200,148 million. Physical sales amounted to 18,251 GWh, representing an increase of 981 GWh, or 5.7%. Our customer base increased by 380 thousand of new clients approximately, amounting over 13.7 million customers.

 

Operating Income for distribution business line, detailed by country, is as follows:

 

Table 4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution

Chile

 

Argentina

 

Brazil

Million Ch$

 

Chg%

 

Th. US$

 

Million Ch$

 

Chg%

 

Th. US$

 

Million Ch$

 

Chg%

 

Th. US$

3M 2011

3M 2012

 

 

 

3M 2012

 

3M 2011

3M 2012

 

 

 

3M 2012

 

3M 2011

3M 2012

 

 

 

3M 2012

Operating Revenues

245,131

255,067

 

4.1%

 

521,566

 

71,992

85,020

 

18.1%

 

173,851

 

491,132

507,318

 

3.3%

 

1,037,375

% of consolidated

23%

22%

 

 

 

22%

 

7%

7%

 

 

 

7%

 

46%

44%

 

 

 

44%

Operating Costs

(215,052)

(220,051)

 

2.3%

 

(449,965)

 

(73,163)

(94,222)

 

28.8%

 

(192,666)

 

(404,028)

(410,478)

 

1.6%

 

(839,355)

% of consolidated

23%

23%

 

 

 

23%

 

8%

10%

 

 

 

10%

 

44%

43%

 

 

 

43%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

30,079

35,016

 

16.4%

 

71,602

 

(1,171)

(9,201)

 

685.7%

 

(18,815)

 

87,104

96,839

 

11.2%

 

198,019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution

Peru

 

Colombia

 

Consolidated

Million Ch$

 

Chg%

 

Th. US$

 

Million Ch$

 

Chg%

 

Th. US$

 

Million Ch$

 

Chg%

 

Th. US$

3M 2011

3M 2012

 

 

 

3M 2012

 

3M 2011

3M 2012

 

 

 

3M 2012

 

3M 2011

3M 2012

 

 

 

3M 2012

Operating Revenues

79,676

94,769

 

18.9%

 

193,786

 

187,995

220,999

 

17.6%

 

451,903

 

1,075,926

1,163,172

 

8.1%

 

2,378,481

% of consolidated

7%

8%

 

 

 

8%

 

17%

19%

 

 

 

19%

 

100%

100%

 

 

 

 

Operating Costs

(62,985)

(78,008)

 

23.9%

 

(159,513)

 

(166,726)

(160,266)

 

(3.9%)

 

(327,715)

 

(921,954)

(963,025)

 

4.5%

 

(1,969,214)

% of consolidated

7%

8%

 

 

 

8%

 

18%

17%

 

 

 

17%

 

100%

100%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

16,691

16,761

 

0.4%

 

34,273

 

21,270

60,733

 

185.5%

 

124,188

 

153,972

200,148

 

30.0%

 

409,267

 

 

 

 

Pg. 12

 

Net Financial Income

 

The Company’s net financial income as of March 31, 2012 totaled a loss of Ch$ 84,287 million, 21.5% higher than for the same period of 2011. The latter is mainly explained by:

 

Higher financial expense of Ch$ 9,562 million, due to the recognition of tax contingence interests of Ch$ 7,564 million in Edegel and Ch$ 1,957 in Edesur.

 

Increase in exchange rate expense of Ch$ 5,193 million, related to the USD mismatch that affects exchange rate variations, which had in March 2011 a variation of Ch$ 13.92 and this quarter a negative variation of $31.76 $/US$.

 

Higher indexed assets and liabilities expense of Ch$ 3,088 million as a result of the negative impact of inflation over U.F. denominated debt in Chile.

 

This was partially offset by higher financial revenues of Ch$ 2,947, due to higher deposits in Edelnor of Ch$ 1,566 million and in Codensa of Ch$ 960 million.

 

 

Sale of Assets

 

The net income from sale of assets registered an increase of Ch$ 9,504 million, explained by the recognition in 2011 of the loss generated due to the sale of CAM.

 

Taxes

 

Income tax net expense decreased by Ch$ 28,893 million at the end of March 2012. This is explained by decreases in: Endesa Chile by Ch$ 26,655 million, Enersis by Ch$ 11,381 million and Chilectra by Ch$ 3,138 million.

 

The latter was partially offset by increases in: Coelce by Ch$ 10,879 million, Codensa by Ch$ 3,086 million and Edesur by Ch$ 1,828 million.

 

 

 

Pg. 13

 

Consolidated Balance Sheet Analysis

 

Assets Under IFRS

 

Table 5

 

 

 

 

 

 

ASSETS

(Million Ch$)

 

(Thousand US$)

 

As of Dec 31, 2011

As of March 31, 2012

Var 2011-2012

Chg %

  

As of March 31, 2012

 

 

 

 

 

 

  

CURRENT ASSETS

 

 

 

 

 

 

Cash and cash equivalents

1,219,921

1,114,788

(105,134)

(8.6%)

 

2,287,025

Other current financial assets

939

1,117

178

18.9%

 

2,292

Other current non-financial assets

72,466

73,859

1,392

1.9%

 

151,523

Trade and other current receivables

977,602

944,319

(33,284)

(3.4%)

 

1,937,302

Accounts receivable from related companies

35,283

30,475

(4,808)

(13.6%)

 

62,520

Inventories

77,926

83,231

5,306

6.8%

 

170,751

Current tax assets

141,828

157,055

15,228

10.7%

 

322,205

Non-current assets (or disposal groups) classified as held for sale

-

-

-

 

 

-

Total Current Assets

2,525,965

2,404,843

(121,122)

(4.8%)

 

4,933,619

 

 

 

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

 

 

Other non-current financial assets

37,355

59,846

22,491

60.2%

 

122,776

Other non-current non-financial assets

109,501

106,930

(2,571)

(2.3%)

 

219,371

Trade accounts receivables and other receivables, net

443,328

412,948

(30,381)

(6.9%)

 

847,176

Investment accounted for using equity method

13,193

10,701

(2,492)

(18.9%)

 

21,954

Intangible assets other than goodwill

1,467,398

1,420,219

(47,180)

(3.2%)

 

2,913,627

Goodwill

1,476,404

1,451,301

(25,103)

(1.7%)

 

2,977,394

Property, plant and equipment, net

7,242,731

7,156,206

(86,525)

(1.2%)

 

14,681,205

Investment properties

38,056

37,922

(134)

(0.4%)

 

77,799

Deferred tax assets

379,939

397,169

17,230

4.5%

 

814,805

Total Non-Current Assets

11,207,906

11,053,242

(154,664)

(1.4%)

 

22,676,107

 

 

 

 

 

 

 

TOTAL ASSETS

13,733,871

13,458,085

(275,786)

(2.0%)

 

27,609,726

 

Total Assets decreased Ch$ 275,786 million, mainly due to:

 

Ø  Ch$ 154,664 million decrease in non-current assets, equivalent to 1.4%, as a result of:

 

v  Ch$ 86,525 million decrease in Property, Plant and Equipment, explained by the net effect resulting from the translation of financial statements from local currencies to Chilean pesos by Ch$ 87,467 million, and depreciation for the period of Ch$ 85,557 million. The latter was partially offset by the additions for the period in approximately Ch$ 87,160 million.

 

v  Ch$ 47,180 million decrease in intangible assets other than goodwill, due to the exchange rates variations of Ch$ 54,661 million, added to the amortization of the period of Ch$ 27,290 million, partially offset by additions for the period of Ch$ 34,170 million.

 

v  Ch$ 30,381 million decrease in trade accounts receivables and other receivables, mainly due to the decrease in Coelce by Ch$ 9,861 million and Ampla by Ch$ 4,132 million, by the appliance of IFRIC 12 Norm, related to service concession arrangements.  Also due to decreases in Costanera and Chocón for a total of Ch$ 13,805 million due to FONINVEMEN.

 

v  Ch$ 25,103 decrease in Goodwill, mainly as a consequence of translation of local currencies to Chilean pesos.

 

The latter was partially compensated by:

 

v  Ch$ 17,230 million increase in deferred taxes in: Endesa Chile by Ch$ 12,523 million and Enersis by Ch$ 9,065 million.

 

 

 

 

Pg. 14

 

v  Increase of Ch$ 22,614 million in other non-current financial assets, mainly explained by the grow in Endesa Chile by Ch$ 13,742 million, due to MTM of derivatives and an increase in Enersis of Ch$ 8,647 million in cash collateral.

 

Ø  Ch$ 121,122 million decrease in current assets equivalent to 4.8%, mainly due to:

 

 

v  Ch$ 105,134 million decrease in Cash and Cash Equivalent, primarily explained by decreases in: Endesa Chile by Ch$ 50,292 million due to the payment of the UF denominated bond Serie F, Enersis by Ch$46,760 million due to dividends payment and Emgesa by Ch$ 11,856 million also due to dividends payment .

 

v  Decrease in trade and other accounts receivables by Ch$ 33,284 million mainly explained by decreases in: Costanera by Ch$ 15,698 million, Pehuenche by Ch$ 15,609 million, Endesa Chile by Ch$ 8,259 million and Pangue by Ch$ 3,583 million. This was partially offset by increases in Ampla by Ch$11,238 million.

 

 

 

Pg. 15

 
 

Book Value and Economic Value of Assets

 

Regarding the more important assets, the following should be mentioned:

 

Properties, Plants and Equipment are valued at their purchase cost, net of the corresponding accumulated depreciation and impairment loss they have been subject to. Properties, Plants and Equipment, net of their residual value, if applicable, are linearly depreciated by distributing the cost of their different elements along the estimated years of useful life, which is the period that the companies expect to use them. The useful life is reviewed regularly.

 

The goodwill value generated by consolidation represents the acquisition cost surplus on the Group’s stake in terms of the reasonable value of assets and liabilities, including the identifiable contingent liabilities of a subsidiary at the time of acquisition.  Goodwill is not amortized. Instead, at the closing of each accounting period an assessment is made of whether any impairment has occurred during the period that could reduce its recoverable value to an amount below the registered net cost, proceeding in this event to make a timely impairment adjustment (See Note 3.e to the Consolidated Financial Statements).

 

Throughout the fiscal year and in particular at the date of closing, an assessment is made as to any indication of possible loss due to the impairment of any asset. In the event of any such indication, an estimate of the recoverable sum of said asset is made to determine, if applicable, the depreciated amount. If this involves identifiable assets that do not originate independent cash flows, the recoverability of the Cash Generating Unit that the asset belongs to is estimated, understanding as such the smaller group of identifiable assets that generate independent cash incomes.

 

Assets expressed in foreign currency are expressed at the prevalent exchange rate at the closing of the period.

 

Notes and accounts receivable from related companies are classified according to their short and long term maturities.  These operations are adjusted according to prevalent market equity conditions.

 

In summary, assets are valued according to the International Financial Reporting Standards, whose criteria are expressed in Note 3 of the Consolidated Financial Statements.

 

 

 

Pg. 16

 

 

Liabilities and Shareholders’ Equity Under IFRS

 

Table 6

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

(Million Ch$)

 

(Thousand US$)

 

As of Dec 31, 2011

As of March 31, 2012

Var 2011-2012

Chg %

  

As of March 31, 2012

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

Other current financial liabilities

672,082

714,106

42,023

6.3%

 

1,465,012

Trade and other current payables

1,235,064

1,217,356

(17,709)

(1.4%)

 

2,497,448

Accounts payable to related companies

157,178

179,046

21,868

13.9%

 

367,319

Other short-term provisions

99,703

92,499

(7,204)

(7.2%)

 

189,764

Current tax liabilities

235,853

215,380

(20,473)

(8.7%)

 

441,860

Current provisions for employee benefits

-

-

-

 

 

-

Other current non-financial liabilities

60,653

61,572

919

1.5%

 

126,318

Liabilities (or disposal groups) classified as held for sale

-

-

-

 

 

-

Total Current Liabilities

2,460,534

2,479,959

19,425

0.8%

 

5,087,721

 

 

 

 

 

 

 

NON-CURRENT LIABILITIES

 

 

 

 

 

 

Other non-current financial liabilities

3,271,355

3,055,779

(215,576)

(6.6%)

 

6,269,036

Non-current payables

14,305

14,653

349

2.4%

 

30,062

Accounts payable to related companies

-

-

-

 

 

-

Other-long term provisions

202,574

206,858

4,284

2.1%

 

424,376

Deferred tax liabilities

508,438

490,401

(18,038)

(3.5%)

 

1,006,074

Non-current provisions for employee benefits

277,526

270,946

(6,580)

(2.4%)

 

555,855

Other non-current non-financial liabilities

102,985

93,213

(9,773)

(9.5%)

 

191,229

Total Non-Current Liabilities

4,377,183

4,131,849

(245,334)

(5.6%)

 

8,476,631

 

 

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Issued capital

2,824,883

2,824,883

(0)

(0.0%)

 

5,795,345

Retained earnings (losses)

2,232,969

2,303,569

70,600

3.2%

 

4,725,852

Share premium

158,760

158,760

-

0.0%

 

325,701

Other equity changes

-

-

-

 

 

-

Reserves

(1,320,883)

(1,366,801)

(45,918)

(3.5%)

 

(2,804,039)

 

 

 

-

 

 

 

Equity Attributable to Shareholders of the Company

3,895,729

3,920,411

24,682

0.6%

 

8,042,858

Equity Attributable to Minority Interest

3,000,425

2,925,866

(74,559)

(2.5%)

 

6,002,516

Total Shareholders' Equity

6,896,154

6,846,277

(49,877)

(0.7%)

 

14,045,374

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

13,733,871

13,458,085

(275,786)

(2.0%)

 

27,609,726

 

 

The Company’s total liabilities and shareholders’ equity decreased by Ch$ 275,786 million, compared to the period ended on December 31, 2011, due to Ch$ 245,334 million decrease in non current liabilities and Ch$49,877 million in shareholders’ equity. This was partially offset by Ch$ 19,425 million increase in current liabilities.

 

Ø  Non-current liabilities decreased by Ch$ 245,334 million, equivalent to 5.6%, mainly due to:

 

v  Other non-current financial liabilities (financial debt and derivatives) decreased by Ch$ 215,576 million, mainly due to decreases in: Endesa Chile by Ch$ 122,727 million, due to converting U.F. bond to short term and exchange rate effect, Edelnor by Ch$ 23,656 million due to converting bond to short term and exchange rate effect, Codensa by Ch$ 17,136 million due to converting to short term, Ampla by Ch$ 16,483 million due to converting bond to short term and exchange rate effect, Coelce by Ch$ 15,655 million due to converting bond to short term and exchange rate effect, Edegel by Ch$ 15,266 million due to converting bond to short term and exchange rate effect and Fortaleza by Ch$ 1,456 due to exchange rate effect.

 

v    Deferred taxes liabilities decrease in Ch$ 18,038 million due to reductions in Edegel by Ch$ 7,442 million, CIEN by Ch$ 3,626 million, Edelnor by Ch$3,060 million, GasAtacama by Ch$ 1,919 million, Coelce by Ch$ 1,538 million and Ampla by Ch$ 967 million.

 

 

 

Pg. 17

 

 

Ø  Current liabilities increased by Ch$ 19,425 million, equivalent to 0,8%, mainly explained by the following changes:

 

v  Increase in other current financial liabilities by Ch$ 42,023 million, explained by increases in: Endesa Chile by Ch$ 53,373 million; Codensa by Ch$ 12,352 million; Edelnor by Ch$ 8,515 million. This was partially offset by decreases in Emgesa by Ch$ 21,264 million; Ampla by Ch$ 6,225 million and Coelce by Ch$ 821 million.

 

v  Increase in accounts payable to related companies of Ch$ 21,868 million, as a result of the increase of accounts payable to Endesa Latinoamerica in Ch$ 33,805 million, mainly dividends, and to GNL Quintero by Ch$2,312 million, partially offset by decreases in accounts payable to Cemsa by Ch$ 6,123 million and Carboex by Ch$ 5,587 million.

 

 

The above was partially offset by:

 

v  Reduction in current tax liabilities of Ch$ 20,473 million mainly due to the reduction in Cachoeira Dorada of Ch$ 13,090 million, Coelce by Ch$7,190 million, Pehuenche by Ch$ 5,934 million and Pangue by Ch$ 5,466 million, partially offset by increases in Chilectra by Ch$ 2,755 million, Edesur by Ch$ 2,036 million, Edelnor by Ch$ 1,998 million and Enersis by Ch$719 million.

 

v  Reduction in trade and other current liabilities by Ch$ 17,709 million due to decreases in payables for goods and services by Ch$ 127,698 million, energy suppliers by Ch$ 29,322 million, fines and claims by Ch$ 4,889 million and payables to tax autorithies by Ch$ 4,427 million. The latter is partially offset by increases in dividend payable to third parties by Ch$87,823 million, other payable accounts by Ch$23,764, fuel and gas suppliers by Ch$ 21,882 million and in social obligations by Ch$ 7,062 million.

 

Equity decreased by Ch$49,877 million with respect to the first quarter of 2011:

 

v  The equity attributable to owners of parent by Ch$24,682 million, mainly explained by the effect of the comprehensive result for the period of Ch$ 54,881 million, primarily driven by the result of the dominant of Ch$ 100,661 million, negative conversion reserves of Ch$ 72,116 million, positive hedge reserve of Ch$ 26,197 million and other reserves of Ch$ 1 million, less dividends of Ch$ 30,198 million.

 

v  Non-controlling interest decreased by Ch$ 74,559 million, mainly explained by the effect of the comprehensive result for the period of Ch$ 94,372 million, principally driven by the result for the period of the non-controllers of Ch$ 130,437 million, negative other comprehensive results of the period of Ch$ 36,065 million, and by the reduction in other equity movements of Ch$ 168,932 million.

 

 

 

Pg. 18

 

 

Debt Maturity with Third Parties, Thousand US$

 

Table 7

 

 

 

 

 

 

 

(Thousand US$)

2012

2013

2014

2015

2016

Balance

TOTAL

Chile

235,752.5

424,883.3

747,025.5

225,151.0

458,960.1

964,387.8

3,056,160.1

Enersis

4,837.1

5,115.2

593,359.3

5,720.3

443,646.9

40,910.4

1,093,589.1

Chilectra

624.6

-

-

-

-

-

624.6

Endesa Chile

230,290.8

419,768.1

153,666.2

219,430.7

15,313.2

923,477.5

1,961,946.4

Argentina

141,743.8

114,880.2

63,319.4

35,054.2

34,267.1

-

389,264.7

Edesur

38,599.0

48,526.6

6,868.4

-

-

-

93,994.0

Costanera

76,046.0

38,179.2

31,592.6

27,410.0

34,267.1

-

207,494.9

Chocón

26,823.8

28,174.3

24,858.5

7,644.2

-

-

87,500.8

Hidroinvest

275.0

-

-

-

-

-

275.0

CTM

-

-

-

-

-

-

-

TESA

-

-

-

-

-

-

-

Peru

96,630.3

111,771.3

109,189.9

84,303.5

89,309.5

226,686.7

717,891.2

Edelnor

44,648.4

59,622.0

58,717.6

50,584.9

31,946.0

97,487.8

343,006.8

Edegel

51,981.9

52,149.2

50,472.3

33,718.5

57,363.5

129,198.8

374,884.3

Brazil

504,706.7

235,274.6

168,809.1

141,126.4

193,913.4

280,106.8

1,523,937.1

Endesa Brasil

-

-

-

-

-

-

-

Coelce

104,333.6

101,835.7

99,883.8

40,002.5

95,348.4

148,710.5

590,114.5

Ampla

274,752.6

118,908.2

53,342.1

84,414.1

90,896.1

119,222.1

741,535.2

Cachoeira

-

-

-

-

-

-

-

Cien

112,071.6

-

-

-

-

-

112,071.6

Fortaleza

13,548.8

14,530.8

15,583.2

16,709.8

7,669.0

12,174.1

80,215.8

Colombia

170,199.3

134,481.4

218,551.7

139,503.5

80,912.0

1,061,119.3

1,804,767.1

Codensa

-

134,481.4

139,503.5

-

80,912.0

263,103.6

618,000.4

Emgesa

170,199.3

-

79,048.3

139,503.5

-

798,015.7

1,186,766.7

TOTAL

1,149,032.6

1,021,290.7

1,306,895.6

625,138.5

857,362.2

2,532,300.5

7,492,020.2

 

 

Debt Maturity with Third Parties, Million Ch$

 

Table 7.1

 

 

 

 

 

 

 

(Million Ch$)

2012

2013

2014

2015

2016

Balance

TOTAL

Chile

114,915

207,105

364,130

109,748

223,715

470,081

1,489,695

Enersis

2,358

2,493

289,227

2,788

216,251

19,941

533,059

Chilectra

304

-

-

-

-

-

304

Endesa Chile

112,253

204,612

74,903

106,959

7,464

450,140

956,331

Argentina

69,092

55,997

30,864

17,087

16,703

-

189,743

Edesur

18,815

23,654

3,348

-

-

-

45,816

Costanera

37,068

18,610

15,399

13,361

16,703

-

101,141

Chocón

13,075

13,733

12,117

3,726

-

-

42,651

Hidroinvest

134

-

-

-

-

-

134

CTM

-

-

-

-

-

-

-

TESA

-

-

-

-

-

-

-

Peru

47,101

54,482

53,224

41,093

43,533

110,496

349,929

Edelnor

21,763

29,062

28,621

24,657

15,572

47,519

167,195

Edegel

25,338

25,420

24,602

16,436

27,961

62,977

182,734

Brazil

246,014

114,682

82,284

68,791

94,521

136,535

742,828

Endesa Brasil

-

-

-

-

-

-

-

Coelce

50,856

49,639

48,687

19,499

46,477

72,487

287,645

Ampla

133,925

57,961

26,001

41,147

44,306

58,114

361,454

Cachoeira

-

-

-

-

-

-

-

Cien

54,628

-

-

-

-

-

54,628

Fortaleza

6,604

7,083

7,596

8,145

3,738

5,934

39,100

Colombia

82,962

65,552

106,531

68,000

39,440

517,232

879,716

Codensa

-

65,552

68,000

-

39,440

128,247

301,238

Emgesa

82,962

-

38,531

68,000

-

388,985

578,478

TOTAL

560,084

497,818

637,033

304,718

417,913

1,234,345

3,651,910

 

 

 

 

Pg. 19

 

 

 

Evolution Of Key Financial Ratios

 

Table 8

 

 

 

 

 

Indicator

Unit

As of Dec 31, 2011

As of March 31, 2012

Var 2011-2012

Chg %

Liquidity

Times

1.03

0.97

(0.06)

(5.8%)

Acid ratio test *

Times

0.99

0.92

(0.07)

(7.1%)

Working capital

Million Ch$

65,431

(75,115)

(140,547)

(214.8%)

Working capital

Thousand US$

134,235

(154,102)

(288,337)

(214.8%)

Leverage **

Times

0.99

0.97

(0.02)

(2.0%)

Short-term debt

%

36.0

38.0

2.00

5.6%

Long-term debt

%

64.0

62.0

(2.00)

(3.1%)

* (Current assets net of inventories and prepaid expenses) / Current liabilities

 

 

 

** Total debt / (equity + minority interest)

 

 

 

 

 

 

 

 

 

 

 

Table 8.1

 

 

 

 

 

Indicator

Unit

3M 2011

3M 2012

Var 2011-2012

Chg %

Financial expenses coverage *

Times

3.94

3.88

(0.1)

(1.5%)

Op. income / Op. rev.

%

22.3

22.9

0.6

2.9%

ROE **

%

12.9

9.8

(3.1)

(24.2%)

ROA **

%

8.2

6.9

(1.3)

(15.7%)

* EBITDA / Financial costs

 

 

 

 

 

** Annualized figures

 

  

 

 

 

 

The liquidity ratio at March 31, 2012 was 0.97:1, a slight decrease of 0.06 times, equivalent to 5.8%, with respect to March 31, 2011. This reflects a company with a solid liquidity position, fulfilling its financial liabilities, financing its investments with cash generation and a comfortable debt maturity structure.

  

The leverage ratio is 0.97:1 as of March 31, 2012, reducing by 2.0% compared to March 31,  2011.

  

The financial expenses coverage shows a fall of 0.06 times, equivalent to 1.5%, moving from 3.94:1 as of March 31, 2011 to 3.88:1 as of March 31, 2012. This is the result of the increase in the company’s financial cost in this period.

  

The profitability indicator, operating income over operating revenues, grew 2.9% to 22.9% as of March 31, 2012.

  

On the other hand, the annualized return on equity of the owners of the controller (dominant) is 9.8%, with a fall of 24.2% with respect to March 31, 2011 when it was 12.9%. This was the result of the lower result reported for the period, added to the increase of the equity of the owners.

  

The annualized return on assets passed from 8.2% as of March 31, 2011 to 6.9% in March 31, 2012 as a result of the decline in the result for the annualized present period.

 

 

 

Pg. 20

 

 

Consolidated Statements of Cash Flows Analysis

Under IFRS

  

 

Table 9

            

CASH FLOW

(Million Ch$)

 

(Thousand US$)

 

3M 2011

3M 2012

Var 2011-2012

Chg %

  

3M 2012

 

 

 

 

 

 

 

Net Income

181,340

231,099

49,759

27.4%

  

472,556

             

Adjustments to reconcile net income

            

Income tax expense

93,438

64,545

(28,893)

(30.9%)

  

131,984

Decrease (increse) in inventories

(2,011)

(9,242)

(7,231)

(359.6%)

  

(18,899)

Decrease (increase) in trade accounts receivable

45,576  

(1,538)

(47,114)

(103.4%)

  

(3,144)

Decrease (increase) in other operating accounts receivable

(40,948) 

(43,895)

(2,947)

(7.2%)

  

(89,758)

Decrease (increase) in trade accounts payable

(129,621) 

(145,920)

(16,299)

(12.6%)

  

(298,382)

Decrease (increase) in other operating accounts payable

111,922  

124,572

12,650

11.3%

  

254,728

Depreciation and amortization expense

105,646

112,847

7,201

6.8%

  

230,753

(Reversal of) Impairment losses

(22,001)

7,640

29,641

134.7%

  

15,623

Provisions

(5,767)

5,894

11,660

202.2%

  

12,052

Unrealized foreign currency exchange differences

(1,583) 

3,610

5,193

328.1%

  

7,382

Non-distributed gains from associates

(2,379) 

(2,728)

(349)

(14.7%)

  

(5,579)

Minority interest

-

-

-

   

-

Other non-cash

(8,973)

22,887

31,860

355.1%

  

46,801

Total adjustments to Reconcile to Operating Income

143,300  

138,673

(4,627)

(3.2%)

  

283,561

             

Dividends paid

-

-

-

   

-

Dividends received

-

-

-

   

-

Payments of interest classified as operating

-  

-

-

   

-

Proceeds of interest received classified as operating

-  

-

-

   

-

Income taxes refund (paid)

(54,552)

(106,285)

(51,734)

(94.8%)

  

(217,335)

Other inflows (outflows) of cash

(149) 

(589)

(440)

(294.3%)

  

(1,204)

             

NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES

269,939  

262,897

(7,042)

(2.6%)

 

537,578

 

 

 

 

 

 

 

Net Cash Flows provided by (used in) Investing Activities

 

 

 

 

 

 

Cash flows from loss of control of subsidiaries or other businesses.

15,367  

0

(15,366)

(100.0%)

 

1

Acquisitions of associates

-

-

-

 

 

-

Cash flows used for the purchase of non-controlling

-  

-

 

 

 

 

Loans to related companies

-

-

-

 

 

-

Proceeds from sales of property, plant and equipment

494  

1,568

1,074

217.4%

 

3,207

Purchase of property, plant and equipment

(109,666) 

(87,060)

22,606

20.6%

 

(178,022)

Proceeds from sales of intangible assets

923  

297

(626)

(67.9%)

 

607

Acquisitions of intangible assets

(49,682)

(33,773)

15,909

32.0%

 

(69,059)

Proceeds from other long term assets.

-  

-

-

 

 

-

Purchase of other long-term assets

-  

-

-

 

 

-

Proceeds from prepayments reimbursed and third party loans

-  

-

-

 

 

-

Prepayments and third party loans

(1,246) 

-

1,246

(100.0%)

 

-

Dividends received

-

-

-

 

 

-

Interest received

1,640

3,620

1,980

120.7%

 

7,403

Other inflows (outflows) of cash

(1,776) 

(10,105)

(8,328)

(468.8%)

 

(20,662)

NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES

(143,947) 

(125,451)

18,495

12.8%

 

(256,526)

 

 

 

 

 

 

 

Cash Flows provided by (used in) Financing Activities

 

 

 

 

 

 

Proceeds from shares issue

-

-

-

 

 

-

Proceeds from long-term borrowings

284,354  

417

(283,937)

(99.9%)

 

853

Repayments of borrowings

-

-

-

 

 

-

Payments of loans

(204,835)

(45,162)

159,673

78.0%

 

(92,348)

Payments of finance lease liabilities

(2,840) 

(2,248)

592

20.9%

 

(4,596)

Repayment of loans to related companies

-  

-

-

 

 

-

Dividends paid

(173,252)

(85,216)

88,036

50.8%

 

(174,251)

Interest paid

(61,479)

(86,191)

(24,712)

(40.2%)

 

(176,245)

Other financing proceeds (payments)

  

(26,580)

(26,580)

 

 

(54,352)

NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES

(158,051) 

(244,979)

(86,928)

(55.0%)

 

(500,938)

 

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS BEFORE EFFECTS OF EXCHANGE RATE

(32,059) 

(107,533)

(75,474)

(235.4%)

 

(219,886)

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

67,884  

2,399

(65,484)

(96.5%)

 

4,906

Net Increase (Decrease) in Cash and Cash Equivalents

35,825  

(105,134)

(140,959)

(393.5%)

  

(214,980)

Cash and cash equivalents at beginning of period

961,355  

1,219,921

258,566

26.9%

 

2,494,522

Ending Balance of Cash and Cash Equivalents

997,180  

1,114,788

117,608

11.8%

 

2,279,543

 

 

Pg. 21

 

 

The company generated a negative net cash flow during the period of Ch$ 107,533 million, comprising the following:

  

Operating activities for 2011 generated a net positive flow of Ch$ 262,897 million, a fall of 2.6% compared to the same period of the previous year. This flow comprises mainly the earnings for the period of Ch$ 231,099 million, which is adjusted to reconcile the result of Ch$ 142,355 million. This adjustment includes the amortization, depreciation and impairment of assets of Ch$ 120,488 million and interest expenses of Ch$ 124,572 million. This is partly compensated by the reduction in working capital of Ch$ 144,843 million.

  

Investment activities generated a negative net cash flow of Ch$ 125,451 million, a decrease in cash of 12.8% or Ch$ 18,496 million compared to the same period of 2011. These disbursements relate mainly to the acquisition of properties, plant and equipment of Ch$ 87,060 million,  the incorporation of intangible assets (IFRIC 12) of Ch$33,773 million, and other  investment disbursements of Ch$ 10,105 million, partially compensated by interests received of Ch$ 3,620 million.

  

Financing activities generated a net negative cash flow of Ch$ 244,979 million, principally for the payment of dividends for Ch$ 85,216 million, interest payments of Ch$ 86,191, other financing disbursements of Ch$ 26,580 million and loan repayments of Ch$ 45,162 million. This is partially offset by loan drawings of Ch$ 417 million.

 

Cash Flow Received From Foreign Subsidiaries by Enersis, Chilectra and Endesa Chile

 

Table 10

 

 

 

 

 

 

 

 

 

 

Cash Flow

Interest Received

Dividends Received

Capital Reductions

Others

Total Cash Received

(Thousand US$)

 

3M 2011

3M 2012

3M 2011

3M 2012

3M 2011

3M 2012

3M 2011

3M 2012

3M 2011

3M 2012

Argentina

101.8

-

-

-

-

-

-

-

101.8

-

Peru

-

-

-

-

-

-

-

-

-

-

Brazil

-

-

-

-

-

-

-

-

-

-

Colombia

-

-

-

11,185.8

-

-

-

-

-

11,185.8

Others

-

-

-

-

-

-

-

-

-

-

Total

101.8

-

-

11,185.8

-

-

-

-

101.8

11,185.8

Source: Internal Financial Report

 

 

 

Pg. 22

 

 

 

Table 11

 

 

 

 

 

 

 

 

 

 

Payments for Additions of Fixed Assets

 

Depreciation

 

 

 

 

 

 

 

 

 

 

 

Million Ch$

 

Thousand US$

 

Million Ch$

 

Thousand US$

 

3M 2011

3M 2012

 

3M 2012

 

3M 2011

3M 2012

 

3M 2012

Endesa Chile

73,146

54,213

 

110,856

 

41,757

45,075

 

92,170

Cachoeira

-

103

 

211

 

1,847

1,697

 

3,470

Endesa Fortaleza

-

276

 

564

 

2,017

1,977

 

4,043

Cien

-

56

 

115

 

5,923

3,150

 

6,441

Chilectra S.A.

10,531

1,954

 

3,996

 

5,284

5,770

 

11,799

Edesur

11,990

10,433

 

21,334

 

3,201

3,425

 

7,004

Edelnor

5,126

9,099

 

18,606

 

4,876

5,259

 

10,754

Ampla (*)

29,694

24,104

 

49,288

 

12,187

16,353

 

33,439

Coelce (*)

16,348

7,727

 

15,800

 

10,932

9,766

 

19,970

Codensa

8,002

10,091

 

20,634

 

14,514

16,129

 

32,981

Cam Ltda.(**)

46

-

 

-

 

294

-

 

 

Inmobiliaria Manso de Velasco Ltda.

226

580

 

1,186

 

68

62

 

127

Synapsis (***)

488

-

 

-

 

478

-

 

 

Enersis holding and investment companies

334

255

 

521

 

281

334

 

683

Total

155,931

118,891

 

243,111

 

103,659

108,997

 

222,880

(*) Includes concessions intangible assets.

 

 

The Principal Risks associated to the activities of the Enersis Group

 

Commercial and Regulatory Risk

 

The Group’s activities are subject to a broad range of governmental standards and environmental regulations. Any modification of such standards and regulations may affect the Group’s activities, economic situation and operating results.

 

The Group’s distribution activity is subject to a wide range of rules regarding tariffs and other issues that govern their activities in each of the countries where it operates and which could modify distribution subsidiaries operating results.

 

The Group’s generation activity is subject to existing hydrological and weather conditions in the geographic zones in which the Group’s hydroelectric generating plants are located. Commercial policies have been planned in order to moderate the possible impact of changes in these variables.

 

Group’s activities are subject to certain environmental regulation which Enersis fulfills constantly. Modifications applied on such regulations may affect the operations, economic condition or the results of these operations.

 

Enersis and its operating subsidiaries are subject to environmental regulations which, among other things, require the company to conduct environmental impact studies for future projects, obtaining permits, licenses and other authorizations and the fulfillment of all requirements of those licenses, permits and norms. As any other regulated company, Enersis cannot guarantee:

 

·        The approval from regulators of environmental impact studies.

·        That public opposition may not cause delays or modifications to any proposed project and

 

 

 

Pg. 23

 

 

·        That laws or regulations may not change or be interpreted in a manner that could adversely affect the operations or the plans for companies in which Enersis or its subsidiaries hold investments.

 

The group’s commercial activity has been planned to moderate possible impacts resulting from changes in hydrological conditions.

 

Enersis group’s operations include hydroelectric generation and therefore depend on the hydrological conditions at any time in the broad geographical zones where its hydroelectric generation installations are located. If hydrological conditions produce droughts or other conditions that negatively affect hydroelectric generation, the results could be adversely affected. Enersis has therefore defined as an essential part of its commercial policy not to contract 100% of its total capacity. The electricity business is also affected by atmospheric conditions like average temperatures which govern consumption. The different weather conditions can produce differences in the margin obtained by the business.

 

Financial situation and the results from operations could be adversely affected if risk exposure weren’t efficiently managed in regards to interest rates, prices of commodities, and exchange rates.

 

Interest Rate Risk

 

Interest rate variations modify the fair value of those assets and liabilities that accrue a fixed interest rate, as well as the future flows of assets and liabilities pegged to a variable interest rate.

 

In compliance with our current interest rate hedging policy, the portion of fixed and/or hedged debt to the total net debt was 60% as of March 31, 2012 on a consolidated basis.

 

Depending on the Group’s estimates and debt structure objectives, hedging transactions take place hiring derivatives that mitigate these risks.

 

The structure of Enersis’ financial debt sort by fixed, protected and variable interest rate, and after derivatives, is as follows:

 

Net Position:

 

Mar. 31 2012

Mar. 31 2011

%

%

Fixed Interest Rate

60%

62%

Variable Interest Rate

40%

38%

Total

100%

100%

 

 

Exchange Rate Risk

 

The exchange rate risks are mainly related to the following transactions:

  • Foreign currency debts raised by Group’s companies.
  • Payments to be made on international markets for the acquisition of projects related materials.
  • Group companies’ incomes directly linked to the evolution of the dollar, and
  • Incoming cash flows from our subsidiaries abroad exposed to exchange rate fluctuations.

 

 

 

 

Pg. 24

 

 

In order to mitigate exchange rate risks, Enersis’ exchange rate hedging policy is based on cash flows and it strives to maintain a balance between dollar indexed flows and the asset and liability levels in such currency.  Cross currency swaps and exchange rate forwards are the instruments currently used in compliance with this policy. Likewise, the policy looks to refinance debts in each company’s functional currency.

   

Commodities Risk

 

Enersis is exposed to the price fluctuation risk on some commodities, basically through

  • Fuel purchases for the electricity generation and also,
  • Energy transactions in the local markets.

 

In order to reduce risks in extreme drought conditions, the company has designed a trading policy that defines sales commitment levels consistent with its generating plants’ firm energy in a dry year, including risk mitigation clauses in some unregulated clients’ contracts.

 

In view of the operative conditions by the electricity generation market in Chile has experienced, like extreme drought and rising oil prices, the company has decided to hire a derivative to place a cap on the Brent price for consumption. As of March 31, 2012 there are no outstanding coverage instruments and instruments taken in the past have been specific and for no considerable monetary amounts. Market and operative conditions will be constantly analyzed to adjust the volume hedged or take new hedges for the following months.

 

Liquidity Risk

 

In engaging committed long term credit facilities and short term financial investments the Group maintains a consistent liquidity policy, for the amounts required to support projected needs for the period, contingent with the situation and the expectations in the debt and capital markets.

 

As of March 31, 2012, the Enersis Group held liquidity in the amount of Ch$ 1,114,788 million in Cash and Cash Equivalent and Ch$ 248,910 million in committed long term credit lines. As of December 31st, 2011, the Enersis Group held liquidity in the amount of Ch$ 1,219,921 million in Cash and Cash Equivalent and Ch$ 238,832 million in committed long term credit lines.

 

Credit Risk

 

Credit risk in accounts receivable, originating from trading activities, has been historically very limited given that the short term collection conditions with customers doesn’t allow them to individually accumulate significant amounts. Additionally, in the case of the so-called “unregulated clients” of our electricity generation and distribution business, a formal procedure is applied to control the credit risk, using a systematic evaluation of our counterparties, index definition and credit risk factors by virtue of which the contracts are approved or additional guarantee requirements are defined.

 

Furthermore, in our electricity generating business, in the event of non-payment, some countries allow power supply cut-offs, and in almost all contracts a lack of payment is established as cause for contract termination. For this purpose, credit risks are constantly monitored and the maximum amounts exposed to payment risks are measured, which are limited.

 

 

 

 

Pg. 25

 

 

In turn, in our electricity distribution business, the energy supply cut-off is a power held by our companies in case of default by our customers, applied in accordance with the applicable regulation in each country, enabling the credit risk evaluation and control process, which is also limited.

 

Surplus cash flow investments are placed in prime national and foreign financial entities (with an investment grade equivalent risk rating) with limits established for each entity.

 

In the selection of banks for investment, the Group considers those that hold two investment grade classifications, according to the three main international rating agencies (Moody’s, S&P and Fitch Ratings).

 

Positions are backed up by treasury bonds from the country of operations and instruments issued by the most reputable banks, favoring, wherever possible, the first ones. 

 

Derivatives are engaged with highly solvent entities; about 80% of operations are conducted with entities that hold an A- or higher rating.

 

Risk Measurement

 

The Enersis Group measures the Value at Risk (VaR) of its debt and financial derivatives positions in order to guarantee that the risk taken by the company remains consistent with the risk exposure defined by Management, thus restricting the volatility of its financial results.

 

The positions portfolio used in the calculations of the current Value at Risk is comprised of debt and financial derivatives.

 

The calculated Value at Risk represents the possible value loss of the aforementioned positions portfolio over one day time horizon with 95% of confidence. 

 

The volatility of the risk variables that affect the value of the positions portfolio has been studied, including:

  • The U.S. dollar Libor interest rate.
  • The usual banking local indexes for debts, taking into account the different currencies our companies operate under, and
  • The exchange rates of the different currencies involved in the calculation.

 

The calculation of VaR is based on generating possible future scenarios (at one day) of market values (both spot and term) for the risk variables, using Bootstrapping methodology. The number of scenarios generated ensures compliance with the simulation convergence criteria. A matrix of volatilities and correlations between the various risk variables calculated based on the historical values of the logarithmic price return, has been applied to simulate the future price scenario.

 

Once the price scenarios have been obtained, the fair value of the portfolio is calculated using such scenarios, obtaining a distribution of possible values at one day. The one-day 95% confidence VaR number is calculated as the 5% percentile of the potential increases in the fair value of the portfolio in one day.

 

The various debt positions and financial derivatives included in the calculation have been valued consistently using the financial capital calculation methodology reported to Management.

 

 

 

 

Pg. 26

 

 

Taking in consideration the above mentioned hypotheses, the breakdown for VaR in every mentioned type of positions is the following:

 

Financial Positions

Mar. 31

2012

Mar. 31

2011

Th Ch$

Th Ch$

Interest Rate

19,708,101

41,560,004

Exchange Rate

2,633,383

3,602,591

Correlation

(1,042,697)

(310,050)

Total

21,298,787

44,852,545

 

 

 

Other Risks

 

A portion of Enersis and Endesa Chile’s debt is subject to cross default provisions.  If certain defaults in debt of certain specific subsidiaries are not remedied within specified grace periods, a cross default could affect Endesa Chile and Enersis, and under certain scenarios, debts at the holding company level could be accelerated.

 

Nonpayment – after any applicable grace period – of the debts of Enersis and Endesa Chile, and in the case of Enersis, its subsidiaries Endesa Chile and Chilectra, with an individual principal amount outstanding in excess of US$ 50 million (or its equivalent in other currencies), and with a missed payment also in excess of US$ 50 million, could give rise to a cross default of several bank revolving debt facilities at the Endesa Chile and Enersis levels. Furthermore, some of these debt facilities are also subject to cross acceleration provisions in the event of a default in other debt of the companies mentioned above, for reasons other than payment default, for events such as bankruptcy, insolvency proceedings, and materially adverse governmental or legal actions, in all cases for amounts in excess of US$ 50 million dollars.

 

Similarly, nonpayment – after any given applicable grace period - of the debts of Enersis and Endesa Chile or any of their Chilean subsidiaries, in single indebtedness in default with a principal in excess of US$ 30 million dollars, could potentially give rise to a cross default of Enersis and Endesa Chile Yankee bonds. 

 

Finally, in the case of local bonds of Enersis and Endesa Chile, prepayment is triggered only as a result of a default of the Issuer.

 

There are no clauses in the credit agreements by which changes in the corporate or debt classification of these companies from risk rating agencies could trigger prepayments. Nevertheless, a modification in the Feller Rate and Fitch Ratings Chile local debt risk classification in could trigger a change in the margin applicable to determine the interest rate, in the local committed credit lines executed in 2009.

 

 

 

Pg. 27

 

 

Argentina

 

Generation

 

In Argentina, the first quarter of 2012 operating result amounted to Ch$ 205 million, representing a 98.2% drop in relation to the first quarter of 2011. This is primarily explained because of lower operating income of Ch$10,458, due to a 16.3% reduction in energy sales. The foregoing was partially offset by a reduction in operating costs, explained mainly by a decrease of 12.2% in fuel consumption.

 

EBITDA of the operations in Argentina amounted to Ch$ 7,243 million; namely, 51.7% lower with respect to that recorded in the first quarter of 2011. 

 

Endesa Costanera

 

Endesa Costanera’s operating result decreased by Ch$ 12,181 million, showing a negative result of Ch$ 6,084 million in the first quarter of 2012. This is explained by a 19.3% reduction in operating revenues, due to lower physical sales of Ch$ 11,227. This was partially offset by a 12.4% drop in operating costs, mainly explained by a 12.2% reduction in fuel consumption. Physical sales reached 2,392.4 GWh (2,306.3 GWh during the first quarter of 2011).

  

The effect of converting these financial statements from Argentine peso to the Chilean peso in both periods was to generate a 6.2% reduction in Chilean pesos in March 2012 when compared to March 2011.

 

 

Table 12

 

 

 

 

 

 

Endesa Costanera

Million Ch$

 

 

Thousand US$

 

3M 2011

3M 2012

Var 2011-2012

Chg%

 

3M 2012

Operating Revenues

58,055

46,828

(11,227)

(19.3%)

 

95,755

Procurement and Services

(44,908)

(39,340)

5,567

12.4%

 

(80,444)

Contribution Margin

13,147

7,488

(5,659)

(43.0%)

 

15,311

Other Costs

(4,074)

(7,352)

(3,278)

(80.5%)

 

(15,034)

Gross Operating Income (EBITDA)

9,073

136

(8,937)

(98.5%)

 

277

Depreciation and Amortization

(2,976)

(6,220)

(3,243)

(109.0%)

 

(12,718)

Operating Income

6,097

(6,084)

(12,181)

(199.8%)

 

(12,441)

Figures may differ from those accounted under Argentine GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

Table 12.1

 

 

 

 

 

 

Endesa Costanera

3M 2011

3M 2012

Var 2011-2012

Chg%

 

 

GWh Produced

2,301

2,352

51

2.2%

 

 

GWh Sold

2,306

2,392

86

3.7%

 

 

Market Share

7.9%

7.7%

(0.2) pp.

 

 

 

 

 

 

Pg. 28

 

 

El Chocón

 

El Chocón’s operating result reached Ch$ 5,347 million in this first quarter, thus reflecting a 0.3% drop compared to the same period of 2011. This result is mainly explained by a 0.9% drop in physical sales and a 5% increase in energy purchases.

 

The effect of converting these financial statements from Argentine peso to the Chilean peso in both periods was to generate a 6.2% reduction in Chilean pesos in March 2012 when compared to March 2011.

 

 

Table 13

 

 

 

 

 

 

El Chocón

Million Ch$

 

 

Thousand US$

 

3M 2011

3M 2012

Var 2011-2012

Chg%

 

3M 2012

Operating Revenues

11,401

11,295

(106)

(0.9%)

 

23,097

Procurement and Services

(4,247)

(3,639)

608

14.3%

 

(7,441)

Contribution Margin

7,154

7,656

502

7.0%

 

15,656

Other Costs

(1,070)

(1,628)

(558)

(52.2%)

 

(3,330)

Gross Operating Income (EBITDA)

6,084

6,028

(56)

(0.9%)

 

12,326

Depreciation and Amortization

(722)

(681)

41

5.7%

 

(1,392)

Operating Income

5,362

5,347

(15)

(0.3%)

 

10,934

Figures may differ from those accounted under Argentine GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

Table 13.1

 

 

 

 

 

 

El Chocón

3M 2011

3M 2012

Var 2011-2012

Chg%

 

 

GWh Produced

535

544

9

1.6%

 

 

GWh Sold

675

673

(2)

(0.2%)

 

 

Market Share

2.3%

2.2%

(0.1) pp.

 

 

 

 

 

 

Pg. 29

 

 

Distribution

Edesur

 

In Argentina, our subsidary Edesur shows a decrease in operating result drop of Ch$ 8,030 million, with a loss of Ch$ 1,171 million during the first quarter of 2011, compared to a loss of Ch$ 9,201 million in the first quarter of 2012. The negative evolution of the company results are the result of increased operating costs derived from the country’s inflation rate , without the corresponding tariff increases because of the delay in fulfiling certain clauses of the Minutes of Agreement executed with the National Government of Argentina, especially the semi-annual recognition of tariff adjustments incorporated into the Cost Monitoring Mechanism (MMC, in its Spanish acronym) and the implementation of an Integral Tariff Review (RTI, in its Spanish acronym) as provided in such Minutes, all of which is heavily impacting Edesur’s financial balance.

 

 

Regarding the rest of the operating evolution, operating expenses increased by Ch$ 10,253 million, associated mostly to higher energy purchases of Ch$ 11.033 million, marginally offset by lower transportation cost of Ch$556 million and other procurement and services of Ch$224 million. Physical sales increased by 4.4% reaching 4,536 GWh in the first quarter of 2012. The loss of energy in this period was 10.5% and the number of clients exceeded 2.3 million.

 

The effect of converting these financial statements from Argentine peso to the Chilean peso in both periods was to generate a 6.2% reduction in Chilean pesos in March 2012 when compared to March 2011.

 

Table 14

 

 

 

 

 

 

Edesur

Million Ch$

 

 

Thousand US$

 

3M 2011

3M 2012

Var 2011-2012

Chg%

 

3M 2012

Operating Revenues

71,992

85,020

13,028

18.1%

 

173,851

Procurement and Services

(36,765)

(47,018)

(10,253)

(27.9%)

 

(96,143)

Contribution Margin

35,227

38,002

2,775

7.9%

 

77,708

Other Costs

(32,710)

(43,420)

(10,711)

(32.7%)

 

(88,787)

Gross Operating Income (EBITDA)

2,518

(5,418)

(7,936)

(315.2%)

 

(11,079)

Depreciation and Amortization

(3,689)

(3,783)

(95)

(2.6%)

 

(7,736)

Operating Income

(1,171)

(9,201)

(8,030)

(685.7%)

 

(18,815)

Figures may differ from those accounted under Argentine GAAP.

 

 

 

 

 

 

 

 

 

 

 

Table 14.1

 

 

 

 

 

 

Edesur

3M 2011

3M 2012

Var 2011-2012

Chg%

 

 

Customers (Th)

2,356

2,389

33

1.4%

 

 

GWh Sold

4,345

4,536

191

4.4%

 

 

Clients/Employee

863

839

(24)

(2.7%)

 

 

Energy Losses %

10.5%

10.5%

0.0%

 

 

 

 

  

 

 

 

Pg. 30

 

 

Brazil

Endesa Brasil

Operating Income amounted to Ch$ 136,259 million, 6.3% higher than the Ch$ 128,172 million reported in the first quarter of 2011.

 

 

Table 15

 

 

 

 

 

 

Endesa Brasil

(Million Ch$)

 

 

(Thousand US$)

 

3M 2011

3M 2012

Var 2011-2012

Chg %

 

3M 2012

Sales

472,382

529,031

56,649

12.0%

 

1,081,774

Other operating income

49,683

35,087

(14,596)

(29.4%)

 

71,747

Total Revenues

522,064

564,118

42,054

8.1%

 

1,153,522

Procurements and Services

(321,460)

(319,827)

1,633

0.5%

 

(653,990)

Contribution Margin

200,605

244,291

43,686

21.8%

 

499,532

Other Costs

(63,482)

(68,700)

(5,218)

(8.2%)

 

(140,479)

Gross Operating Income (EBITDA)

137,122

175,591

38,469

28.1%

 

359,053

Depreciation and Amortization

(33,014)

(33,086)

(73)

(0.2%)

 

(67,655)

Reversal of impairment profit (loss) recognized in profit or loss

24,064  

(6,246)

(30,309)

(126.0%)

 

(12,771)

Operating Income

128,172

136,259

8,087

6.3%

 

278,626

Net Financial Income

(19,114)

(17,702)

1,413

7.4%

 

(36,197)

Financial income

28,374

27,073

(1,301)

(4.6%)

 

55,360

Financial expenses

(48,132)

(47,703)

428

0.9%

 

(97,545)

Income (Loss) for indexed assets and liabilities

-  

-

-

 

 

-

Foreign currency exchange differences, net

643  

2,928

2,285

355.3%

 

5,987

Gains

3,796

8,327

4,531

119.4%

 

17,027

Losses

(3,153)

(5,399)

(2,246)

(71.2%)

 

(11,039)

Net Income from Related Comp. Cons. by the Prop. Eq. Method 

-

(0)

(0)

 

 

(0)

Net Income from Other Investments

-  

-

-

 

 

-

Net Income from Sales of Assets

-  

-

-

 

 

-

Net Income before Taxes

109,058

118,558

9,500

8.7%

 

242,429

Income Tax

(17,314)

(27,422)

(10,108)

(58.4%)

 

(56,073)

NET INCOME

91,744

91,136

(608)

(0.7%)

 

186,356

Net Income Attributable to Owners of the Company

61,588  

63,866

2,277

3.7%

 

130,594

Net Income Attributable to Minority Interest

30,155  

27,270

(2,885)

(9.6%)

 

55,762

 

 

Generation

 

In Brazil, the operating result of our subsidaries amounted to Ch$ 39,770 million, 8.9% lower than for the first quarter of 2011, when operating results amounted to Ch$ 43,671 million.

 

Cachoeira Dourada

 

The operating result of Cachoeira Dourada was Ch$ 20,076 million, 0.6% higher than for the first quarter of 2011. This is mainly explained by 13.3% higher energy sales, reaching Ch$33,689 million and 1,075.0 GWh. This was partially offset by an increase in energy purchases of Ch$2,304 million and in transportation costs of Ch$ 3,344 million.

 

The effect of converting these financial statements from Brazilian reals to Chilean pesos in both periods was to generate a 4.3% reduction in Chilean pesos in March 2012 when compared to March 2011.

 

 

 

Pg. 31

 

 

 

Table 16

 

 

 

 

 

 

Cachoeira

Million Ch$

 

 

Thousand US$

 

3M 2011

3M 2012

Var 2011-2012

Chg%

 

3M 2012

Operating Revenues

29,733

33,695

3,962

13.3%

 

68,901

Procurement and Services

(6,325)

(10,004)

(3,679)

(58.2%)

 

(20,456)

Contribution Margin

23,408

23,691

283

1.2%

 

48,444

Other Costs

(1,605)

(1,898)

(293)

(18.3%)

 

(3,881)

Gross Operating Income (EBITDA)

21,804

21,793

(10)

(0.0%)

 

44,563

Depreciation and Amortization

(1,852)

(1,717)

135

7.3%

 

(3,511)

Operating Income

19,952

20,076

125

0.6%

 

41,053

Figures may differ from those accounted under Brazilian GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

Table 16.1

 

 

 

 

 

 

Cachoeira

3M 2011

3M 2012

Var 2011-2012

Chg%

 

 

GWh Produced

557

892

335

60.1%

 

 

GWh Sold

835

1,075

240

28.7%

 

 

Market Share

0.8%

1.0%

0.2 pp.

 

 

 

 

 

Fortaleza (cgtf)

 

The operating result of Endesa Fortaleza (CGTF) amounted to Ch$ 10,738 million, evidencing a 0.3% reduction as compared to the same period of the previous year. This reduction is mainly due to lower energy sales of 22.5% and a 27.3% drop in average energy sale prices. This was  offset by a 61.5% reduction in energy purchases cost. Physical sales of the period reached 707.3 GWh.

 

The effect of converting these financial statements from Brazilian reals to Chilean pesos in both periods was to generate a 4.3% reduction in Chilean pesos in March 2012 when compared to March 2011

 

 

Table 17

 

 

 

 

 

 

Fortaleza

Million Ch$

 

 

Thousand US$

 

3M 2011

3M 2012

Var 2011-2012

Chg%

 

3M 2012

Operating Revenues

42,587

32,334

(10,253)

(24.1%)

 

66,118

Procurement and Services

(28,101)

(17,458)

10,643

37.9%

 

(35,698)

Contribution Margin

14,486

14,877

391

2.7%

 

30,420

Other Costs

(1,691)

(2,141)

(450)

(26.6%)

 

(4,378)

Gross Operating Income (EBITDA)

12,795

12,736

(60)

(0.5%)

 

26,043

Depreciation and Amortization

(2,023)

(1,998)

26

1.3%

 

(4,085)

Operating Income

10,772

10,738

(34)

(0.3%)

 

21,958

Figures may differ from those accounted under Brazilian GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

Table 17.1

 

 

 

 

 

 

Fortaleza

3M 2011

3M 2012

Var 2011-2012

Chg%

 

 

GWh Produced

0

84

84

 

 

 

GWh Sold

663

707

44

6.6%

 

 

Market Share

0.6%

0.6%

(0.0) pp.

 

 

 

 

 

 

 

Pg. 32

 

 

 

 

Transmission

CIEN

 

Our transmission subsidiary, CIEN showed a decrease in operating result of Ch$ 5,008 million, reaching Ch$ 8,955 million. The foregoing is mostly due to Ch$ 17,908 higher depreciation, amortization and impairment losses during this period and also by the comparison with first quarter 2011, which included an impairment provision reversion of Ch$ 20,817 million, partially offsetting by the registration of toll charges during the first quarter of 2012 (RAP – Permitted Annual Remuneration) of Ch$ 17,790 million, which started in April 2011.  

  

The effect of converting these financial statements from Brazilian reals to Chilean pesos in both periods was to generate a 4.3% reduction in Chilean pesos in March 2012 when compared to March 2011.

 

Table 18

 

 

 

 

 

 

Cien

Million Ch$

 

 

Thousand US$

 

3M 2011

3M 2012

Var 2011-2012

Chg%

 

3M 2012

Operating Revenues

1,324

19,032

17,709

1338.0%

 

38,918

Procurement and Services

(759)

(3,728)

(2,969)

(391.2%)

 

(7,622)

Contribution Margin

565

15,305

14,740

2610.9%

 

31,295

Other Costs

(1,484)

(2,244)

(760)

(51.2%)

 

(4,589)

Gross Operating Income (EBITDA)

(920)

13,061

13,980

1520.0%

 

26,707

Depreciation and Amortization

(5,935)

(3,163)

2,772

46.7%

 

(6,468)

Reversal of impairment profit (loss) recognized in profit or loss

20,817  

-

(20,817)

(100.0%)

 

-

Operating Income

13,963

9,898

(4,065)

(29.1%)

 

20,239

Figures may differ from those accounted under Brazilian GAAP.

 

 

 

 

 

 

 

Pg. 33

 

 

Distribution

 

In Brazil, the operating result of our distribution subsidiaries amounted to Ch$ 96,839 million, which is 11.2% higher than that obtained in the previous year.

 

Ampla

 

Ampla’s operating result amounted to Ch$ 47,019 million, which compared to previous year,  represents a decrease of Ch$ 1.8% compared to the previous year.  This lower result is mostly due to higher depreciation, amortization and impairment losses of Ch$ 11,525. Physical sales grew by 2.5%, reaching 2,808 GWh. Energy losses dropped by 0.8 p.p., going from 20.2% to 19.4%.  The number of Ampla’s clients increased by 65 thousand, thus exceeding 2.65 million clients.

 

The effect of converting these financial statements from Brazilian reals to Chilean pesos in both periods was to generate a 4.3% drop in Chilean pesos in March 2012 as compared to March 2011.

 

Table 19

 

 

 

 

 

 

Ampla

Million Ch$

 

 

Thousand US$

 

3M 2011

3M 2012

Var 2011-2012

Chg%

 

3M 2012

Operating Revenues

280,380

290,989

10,609

3.8%

 

595,020

Procurement and Services

(191,134)

(189,326)

1,808

0.9%

 

(387,138)

Contribution Margin

89,245

101,662

12,417

13.9%

 

207,881

Other Costs

(32,601)

(34,342)

(1,741)

(5.3%)

 

(70,224)

Gross Operating Income (EBITDA)

56,645

67,320

10,675

18.8%

 

137,658

Depreciation and Amortization

(12,187)

(16,353)

(4,166)

(34.2%)

 

(33,439)

Reversal of impairment profit (loss) recognized in profit or loss

3,410  

(3,948)

(7,358)

(215.8%)

 

(8,073)

Operating Income

47,868

47,019

(849)

(1.8%)

 

96,146

Figures may differ from those accounted under Brazilian GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

Table 19.1

 

 

 

 

 

 

Ampla

3M 2011

3M 2012

Var 2011-2012

Chg%

 

 

Customers (Th)

2,587

2,652

65

2.5%

 

 

GWh Sold

2,741

2,808

67

2.5%

 

 

Clients/Employee

2,145

2,249

104

4.9%

 

 

Energy Losses %

20.2%

19.4%

(0.8) pp.

 

 

 

 

 

Pg. 34

 

 

Coelce

 

Coelce’s operating result grew by 28.3% reaching Ch$49,820 million in the first quarter of 2012. This good performance is mostly due to a 7.7% increase in energy sales and in a 6.0% reduction in operating costs, explained by 3.9% lower energy purchases. Physical sales increased by 11.7%, amounting to 2,347 GWh.  Energy losses decreased by 0.1 p.p. up to 11.8% in the first quarter of 2012.  Coelce’s number of clients expanded by 131 thousand, reaching 3.2 million clients.

 

In effect, the conversion of these financial statements from Brazilian reals to Chilean pesos in both periods caused a 4.3% drop in Chilean pesos as of for March 2012 as compared to March 2011.

 

Table 20

 

 

 

 

 

 

Coelce

Million Ch$

 

 

Thousand US$

 

3M 2011

3M 2012

Var 2011-2012

Chg%

 

3M 2012

Operating Revenues

209,570

216,329

6,759

3.2%

 

442,355

Procurement and Services

(136,533)

(128,363)

8,170

6.0%

 

(262,480)

Contribution Margin

73,037

87,966

14,929

20.4%

 

179,874

Other Costs

(23,123)

(26,082)

(2,959)

(12.8%)

 

(53,333)

Gross Operating Income (EBITDA)

49,914

61,884

11,970

24.0%

 

126,542

Depreciation and Amortization

(11,096)

(12,064)

(968)

(8.7%)

 

(24,669)

Operating Income

38,817

49,820

11,003

28.3%

 

101,873

Figures may differ from those accounted under Brazilian GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

Table 20.1

 

 

 

 

 

 

Coelce

3M 2011

3M 2012

Var 2011-2012

Chg%

 

 

Customers (Th)

3,126

3,257

131

4.2%

 

 

GWh Sold

2,101

2,347

246

11.7%

 

 

Clients/Employee

2,485

2,490

5

0.2%

 

 

Energy Losses %

12.1%

12.0%

(0.1) pp.

 

 

 

 

 

 

Pg. 35

 

 

Chile

 

Generation

Endesa Chile

 

Consolidated Income Statement of Endesa Chile

 

Table 21

 

 

 

 

 

 

Endesa Chile

(Million Ch$)

 

 

(Thousand US$)

 

3M 2011

3M 2012

Var 2011-2012

Chg %

 

3M 2012

Sales

566,632

551,552

(15,080)

(2.7%)

 

1,127,826

Other operating income

7,303

741

(6,562)

(89.9%)

 

1,515

Total Revenues

573,935

552,293

(21,642)

(3.8%)

 

1,129,342

Procurements and Services

(285,284)

(311,299)

(26,015)

(9.1%)

 

(636,551)

Contribution Margin

288,651

240,994

(47,656)

(16.5%)

 

492,791

Other Costs

(87,285)

(54,192)

33,094

37.9%

 

(110,812)

Gross Operating Income (EBITDA)

201,365

186,803

(14,563)

(7.2%)

 

381,978

Depreciation and Amortization

(42,840)

(46,642)

(3,802)

(8.9%)

 

(95,375)

Reversal of impairment profit (loss) recognized in profit or loss

74  

48

(26)

(34.9%)

 

99

Operating Income

158,600

140,209

(18,391)

(11.6%)

 

286,702

Net Financial Income

(30,281)

(41,387)

(11,107)

(36.7%)

 

(84,629)

Financial income

5,158

4,739

(419)

(8.1%)

 

9,690

Financial expenses

(34,688)

(42,402)

(7,714)

(22.2%)

 

(86,704)

Income (Loss) for indexed assets and liabilities

(1,093) 

(1,971)

(878)

(80.3%)

 

(4,030)

Foreign currency exchange differences, net

342  

(1,753)

(2,095)

(612.4%)

 

(3,585)

Gains

6,529

7,075

546

8.4%

 

14,467

Losses

(6,187)

(8,828)

(2,642)

(42.7%)

 

(18,052)

Net Income from Related Comp. Cons. by the Prop. Eq. Method 

27,281

28,492

1,211

4.4%

 

58,262

Net Income from Other Investments

52  

1

(51)

(98.7%)

 

1

Net Income from Sales of Assets

39  

-

(39)

(100.0%)

 

-

Net Income before Taxes

155,692

127,315

(28,377)

(18.2%)

 

260,336

Income Tax

(48,569)

(20,998)

27,572

56.8%

 

(42,937)

NET INCOME

107,122

106,317

(805)

(0.8%)

 

217,399

Net Income Attributable to Owners of the Company

96,859  

66,230

(30,629)

(31.6%)

 

135,429

Net Income Attributable to Minority Interest

10,263  

40,087

29,823

290.6%

 

81,970

*Includes generation subsidiaries in Chile, Argentina, Colombia and Peru.

 

Chilean Operations

 

The operating result in Chile for the first quarter of 2012 amounted to Ch$ 32,250 million, a  decrease of 66.0% compared to the first quarter of 2011. This is mostly explained by a decrease in operating income of 11.8% mostly due to a 14.0% reduction in energy sales, added to the 9.7% increment in procurement and services costs; which, in turn, were mostly due to higher transportation costs of Ch$ 17,941, a 63.9% more than same period last year.

 

The foregoing was also affected by  a 14.4% reduction in the average energy sales price expressed in Chilean pesos. Physical sales grew 0.4% reaching 5,191.1 GWh.

 

EBITDA of the business in Chile, or gross operating result, was Ch$ 52,598 million in this period, which represents an 54.5% decrease when compared to the first quarter of 2011.

 

 

 

Pg. 36

 

 

Table 22

 

 

 

 

 

 

Chilean Electricity Business

Million Ch$

 

 

Thousand US$

 

3M 2011

3M 2012

Var 2011-2012

Chg%

 

3M 2012

Operating Revenues

322,519

284,351

(38,168)

(11.8%)

 

581,448

Procurement and Services

(184,656)

(202,624)

(17,969)

(9.7%)

 

(414,331)

Contribution Margin

137,863

81,727

(56,136)

(40.7%)

 

167,117

Other Costs

(22,238)

(29,129)

(6,890)

(31.0%)

 

(59,563)

Gross Operating Income (EBITDA)

115,625

52,598

(63,026)

(54.5%)

 

107,554

Depreciation and Amortization

(20,893)

(20,349)

544

2.6%

 

(41,609)

Operating Income

94,732

32,250

(62,482)

(66.0%)

 

65,945

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 22.1

 

 

 

 

 

 

Chilean Electricity Business

3M 2011

3M 2012

Var 2011-2012

Chg%

 

 

GWh Produced

4,874

4,875

2

0.0%

 

 

GWh Sold

5,169

5,191

22

0.4%

 

 

Market Share

35.9%

33.6%

(2.2) pp.

 

 

 

             

 

 

Distribution

Chilectra

 

In Chile, our subsidary Chilectra showed an operating result of Ch$ 35,016 million, which represents an increase of Ch$ 4,937 million compared to the first quarter of 2012, or the equivalent of 16.4%.  Such increment is mostly explained by Ch$ 9,936 higher operating income, due to a 5.3% increase in energy sales. The above was partially offset by an increase in procurement and services costs of Ch$ 6,987, a 3.7% more than in 2011. This is explained by a 2.0% increase in energy purchases costs and a 31.6% increase in transportation costs.

 

Energy losses were 5.5%, a decrease of 0.2 p.p. Physical energy sales expanded by 6.8%, reaching 3,564 GWh as of March 2012.

 

The number of clients expanded by 29 thousand clients, reaching almost 1.65 million during the present period.

 

 

 

 

Pg. 37

 

 

 

Table 23

 

 

 

 

 

 

Chilectra

(Million Ch$)

 

 

(Thousand US$)

 

3M 2011

3M 2012

Var 2011-2012

Chg %

 

3M 2012

Sales

241,556

252,987

11,431

4.7%

 

517,314

Other operating income

3,574

2,080

(1,494)

(41.8%)

 

4,253

Total Revenues

245,131

255,067

9,936

4.1%

 

521,566

Procurements and Services

(186,781)

(193,769)

(6,987)

(3.7%)

 

(396,223)

Contribution Margin

58,349

61,298

2,949

5.1%

 

125,344

Other Costs

(21,105)

(18,700)

2,405

11.4%

 

(38,238)

Gross Operating Income (EBITDA)

37,244

42,598

5,354

14.4%

 

87,106

Depreciation and Amortization

(6,301)

(6,864)

(563)

(8.9%)

 

(14,035)

Reversal of impairment profit (loss) recognized in profit or loss

(864) 

(718)

146

16.9%

 

(1,469)

Operating Income

30,079

35,016

4,937

16.4%

 

71,602

Net Financial Income

1,696

3,638

1,942

114.5%

 

7,439

Financial income

3,554

3,092

(462)

(13.0%)

 

6,322

Financial expenses

(1,877)

(375)

1,502

80.0%

 

(766)

Income (Loss) for indexed assets and liabilities

263  

807

544

207.1%

 

1,651

Foreign currency exchange differences, net

(244) 

114

358

146.7%

 

233

Gains

45

243

198

439.1%

 

498

Losses

(289)

(129)

160

55.2%

 

(265)

Net Income from Related Comp. Cons. by the Prop. Eq. Method 

15,456

14,081

(1,374)

(8.9%)

 

28,794

Net Income from Other Investments

-  

-

-

 

 

-

Net Income from Sales of Assets

0  

(75)

(76)

(18424.0%)

 

(154)

Net Income before Taxes

47,230

52,660

5,430

11.5%

 

107,680

Income Tax

(7,316)

(4,178)

3,138

42.9%

 

(8,542)

NET INCOME

39,915

48,482

8,568

21.5%

 

99,138

Net Income Attributable to Owners of the Company

39,914  

48,482

8,568

21.5%

 

99,138

Net Income Attributable to Minority Interest

-  

-

-

-

 

-

Table 23.1

 

 

 

 

    

Chilectra

3M 2011

3M 2012

Var 2011-2012

Chg%

    

Customers (Th)

1,616

1,645

29

1.8%

    

GWh Sold

3,338

3,564

226

6.8%

    

Clients/Employee

2,220

2,263

43

1.9%

    

Energy Losses %

5.7%

5.5%

(0.2) pp.

 

    

 

 

Pg. 38

 

Colombia

 

Generation

 

Emgesa 

 

The operating result of our operation in Colombia amounted to Ch$ 78,092 million in this quarter, increasing by Ch$ 50,179 million or by the equivalent of 179.8% compared to the same quarter of 2011. The main effect comes from the impact of the one-time effect of the Equity Tax, which entailed registering –on January 1, 2011- the total amount payable under this concept during the entire 2011-2014 periods.

 

The good results were also caused by higher operating income of Ch$ 19,801, due to a 17.7% increase in energy sales. This was partially offset by a Ch$ 10,751 increase in procurement and services costs, 36.3% higher than for the same period of the last year, mainly due to higher fuel consumption of Ch$8,584, representing a 251.0% increase compared to the first quarter of 2012. 

 

Physical energy sales grew by 2.9% reaching 3,737.2 GWh and EBITDA in Colombia grew by 139.2% in the first quarter of 2012, reaching Ch$ 87,060 million.

 

The effect of converting these financial statements from Colombian to Chilean pesos in both periods was to generate a 6.0% increase in Chilean pesos in March 2012 when compared to March 2011.

 

Table 24

 

 

 

 

 

 

Emgesa

Million Ch$

 

 

Thousand US$

 

3M 2011

3M 2012

Var 2011-2012

Chg%

 

3M 2012

Operating Revenues

115,384

135,185

19,801

17.2%

 

276,429

Procurement and Services

(29,623)

(40,375)

(10,751)

(36.3%)

 

(82,559)

Contribution Margin

85,761

94,810

9,050

10.6%

 

193,870

Other Costs

(49,365)

(7,750)

41,616

84.3%

 

(15,847)

Gross Operating Income (EBITDA)

36,395

87,060

50,665

139.2%

 

178,023

Depreciation and Amortization

(8,482)

(8,968)

(486)

(5.7%)

 

(18,338)

Operating Income

27,913

78,092

50,179

179.8%

 

159,685

Figures may differ from those accounted under Colombian GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

Table 24.1

 

 

 

 

 

 

Emgesa

3M 2011

3M 2012

Var 2011-2012

Chg%

 

 

GWh Produced

2,743

3,073

330

12.0%

 

 

GWh Sold

3,631

3,737

106

2.9%

 

 

Market Share

18.9%

18.1%

(0.8) pp.

 

 

 

 

 

 

Pg. 39

 

Distribution

 

Codensa

 

In Colombia, Codensa’s operating result during this period was Ch$ 60,730 million, an increase of Ch$ 39,461 million, equivalent to 185.5%. The principal effect arose from the impact of the reform on Equity Taxes, which entailed registering –on January 1, 2011- the total amount payable under this concept during the entire 2011-2014 period. Additionally, during the period operating income increased in Ch$ 33,004 million, explained by a 18.4% growth in energy sales reaching Ch$ 184,393 million.

 

The latter was partially offset by higher operating costs, mainly explained by a 16.3% increase in energy purchases.

 

Physical sales grew by 4.8%, reaching 3,261 GWh in the period. Energy losses dropped by 0.2 p.p. to 8.1% and the number of clients increased by 75 thousand, exceeding 2.6 million as of March 2012.

  

The effect of converting these financial statements from Colombian to Chilean pesos in both fiscal years caused a 6.0% increase in their Chilean peso amount as of March 2012 when compared to those of March 2011.

 

Table 25

 

 

 

 

 

 

Codensa

Million Ch$

 

 

Thousand US$

 

3M 2011

3M 2012

Var 2011-2012

Chg%

 

3M 2012

Operating Revenues

187,995

220,999

33,004

17.6%

 

451,903

Procurement and Services

(103,808)

(119,867)

(16,059)

(15.5%)

 

(245,107)

Contribution Margin

84,188

101,132

16,944

20.1%

 

206,797

Other Costs

(46,984)

(22,881)

24,103

51.3%

 

(46,788)

Gross Operating Income (EBITDA)

37,204

78,251

41,047

110.3%

 

160,009

Depreciation and Amortization

(15,934)

(17,520)

(1,586)

(10.0%)

 

(35,826)

Operating Income

21,270

60,730

39,461

185.5%

 

124,183

Figures may differ from those accounted under Colombian GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

Table 25.1

 

 

 

 

 

 

Codensa

3M 2011

3M 2012

Var 2011-2012

Chg%

  

 

Customers (Th)

2,564

2,640

75

2.9%

 

 

GWh Sold

3,113

3,261

148

4.8%

 

 

Clients/Employee

2,355

2,351

(4)

(0.2%)

 

 

Energy Losses %

8.3%

8.1%

(0.2) pp.

 

 

 

 

 

 

 

Pg. 40

 

 

Peru

Generation

Edegel

 

In Peru, the operating result amounted to Ch$ 27,577 million in the first quarter of 2012,  a 18.4% increase compared to that registered in the first quarter of 2011.  This growth is mostly due to a Ch$ 10,821 million increase in operating income, as a consequence of a 18.0% increment in energy sales and an increase in the average energy sale prices of 17%. The foregoing was also due to lower energy purchases of Ch$ 802 million.

 

This better result was partly offset by higher fuel consumption and transportation costs totaling Ch$ 5,434 million.

 

Physical sales grew by 2.0% reaching 2,438.9 GWh as of March 2012. EBITDA of the business in Peru amounted to Ch$ 37,135 million in this quarter, representing an increase of 15.5% when comparing it to the same quarter of 2011.

 

The effect of converting these financial statements from Peruvian sol to Chilean pesos in both periods was to generate a 5.1% increase in Chilean pesos in March 2012, when compared to March 2011.

 

 

Table 26

 

 

 

 

 

 

Edegel

Million Ch$

 

 

Thousand US$

 

3M 2011

3M 2012

Var 2011-2012

Chg%

 

3M 2012

Operating Revenues

59,474

70,295

10,821

18.2%

 

143,741

Procurement and Services

(21,831)

(25,342)

(3,511)

(16.1%)

 

(51,820)

Contribution Margin

37,643

44,953

7,310

19.4%

 

91,920

Other Costs

(5,469)

(7,778)

(2,309)

(42.2%)

 

(15,905)

Gross Operating Income (EBITDA)

32,174

37,175

5,001

15.5%

 

76,015

Depreciation and Amortization

(8,879)

(9,597)

(718)

(8.1%)

 

(19,625)

Operating Income

23,295

27,577

4,283

18.4%

 

56,391

Figures may differ from those accounted under Peruvian GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

Table 26.1

 

 

 

 

 

 

Edegel

3M 2011

3M 2012

Var 2011-2012

Chg%

 

 

GWh Produced

2,338

2,273

(65)

(2.8%)

 

 

GWh Sold

2,391

2,439

47

2.0%

 

 

Market Share

30.7%

29.5%

(1.2) pp.

 

 

 

 

 

 

Pg. 41

 

Distribution

Edelnor

 

In Peru, our subsidary Edelnor shows an operating result of Ch$ 16,761 million, Ch$ 70 million higher to that obtained in 2011. This increase is mostly due to greater income results of Ch$ 15.093 million, due to 19.9% higher energy sales. On the other hand, operating costs also increased due to higher energy purchases of Ch$12,815 million, 29.1% more than the previous year.

 

Energy losses decreased by 0.1 p.p. reaching 8.2% in the current year. The number of clients expanded by 46 thousand, exceeding 1.15 million clients.

 

The effect of converting these financial statements from Peruvian sols to Chilean pesos in both periods was to generate a 5.1% increase in Chilean pesos in March  2012, when compared to March 2011.

 

Table 27

 

 

 

 

 

 

Edelnor

Million Ch$

 

 

Thousand US$

 

3M 2011

3M 2012

Var 2011-2012

Chg%

 

3M 2012

Operating Revenues

79,676

94,769

15,093

18.9%

 

193,786

Procurement and Services

(50,752)

(61,629)

(10,878)

(21.4%)

 

(126,021)

Contribution Margin

28,924

33,140

4,215

14.6%

 

67,765

Other Costs

(6,883)

(10,613)

(3,730)

(54.2%)

 

(21,701)

Gross Operating Income (EBITDA)

22,041

22,527

486

2.2%

 

46,064

Depreciation and Amortization

(5,351)

(5,766)

(416)

(7.8%)

 

(11,791)

Operating Income

16,690

16,761

70

0.4%

 

34,272

Figures may differ from those accounted under Peruvian GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

Table 27.1

 

 

 

 

 

 

Edelnor

3M 2011

3M 2012

Var 2011-2012

Chg%

  

 

Customers (Th)

1,109

1,155

46

4.2%

 

 

GWh Sold

1,632

1,735

103

6.3%

 

 

Clients/Employee

2,002

2,100

98

4.9%

 

 

Energy Losses %

8.3%

8.2%

(0.2) pp.

 

 

 

 

 

Pg. 42

 

Operating Income by Subsidiary

 

Summary of operating revenues, operating costs (including procurements, services and other costs) and operating income of all Enersis’ subsidiaries, for the period ended in March 31, 2011 and March 31, 2012, detailed as follows:

 

Table 28

 

 

 

 

 

 

 

3M 2011

3M 2012

Million Ch$

Operating Revenues

Operating Costs

Operating Income

Operating Revenues

Operating Costs

Operating Income

Endesa Chile (*)

573,935

(415,335)

158,600

552,293

(412,084)

140,209

Cachoeira (**)

29,733

(9,782)

19,952

33,695

(13,619)

20,076

Fortaleza (***)

42,587

(31,815)

10,772

32,334

(21,596)

10,738

Cien (**)

1,324

12,639

13,963

19,032

(9,135)

9,898

Chilectra

245,131

(215,052)

30,079

255,067

(220,051)

35,016

Edesur

71,992

(73,163)

(1,171)

85,020

(94,222)

(9,201)

Distrilima (Edelnor)

79,676

(62,986)

16,690

94,769

(78,008)

16,761

Ampla

280,380

(232,511)

47,868

290,989

(243,969)

47,019

Coelce

209,570

(170,753)

38,817

216,329

(166,509)

49,820

Codensa

187,995

(166,726)

21,270

220,998

(160,267)

60,730

CAM Ltda.

15,739

(17,179)

(1,439)

-

-

-

Inmobiliaria Manso de Velasco Ltda.

1,050

(1,190)

(140)

1,672

(1,054)

617

Synapsis Soluciones y Servicios IT Ltda.

6,693  

(6,556)

137

-

-

-

ICT

1,315

(1,167)

148

1,310

(1,297)

13

Enersis Holding and other investment vehicles

8,067  

(12,055)

(3,988)

8,438

(12,730)

(4,292)

Consolidation Adjustments

(179,618)

178,775

(843)

(167,829)

166,962

(867)

Total Consolidation

1,575,569

(1,224,854)

350,715

1,644,118

(1,267,580)

376,537

Table 28.1

 

 

 

      
 

3M 2012

      

Thousand US$

Operating Revenues

Operating Costs

Operating Income

      

Endesa Chile (*)

1,129,342

(842,640)

286,702

     

Cachoeira (**)

68,901

(27,848)

41,053

     

Fortaleza (***)

66,118

(44,160)

21,958

     

Cien (**)

38,918

(18,679)

20,239

     

Chilectra

521,566

(449,965)

71,602

     

Edesur

173,851

(192,666)

(18,815)

      

Distrilima (Edelnor)

193,786

(159,513)

34,272

     

Ampla

595,020

(498,874)

96,146

     

Investluz (Coelce)

442,355

(340,482)

101,873

     

Codensa

451,901

(327,718)

124,183

     

CAM Ltda.

-

-

-

     

Inmobiliaria Manso de Velasco Ltda.

3,418

(2,155)

1,263

     

Synapsis Soluciones y Servicios IT Ltda.

-  

-

-

     

ICT

2,679

(2,653)

27

     

Enersis Holding and other investment vehicles

17,254  

(26,031)

(8,776)

      

Consolidation Adjustments

(343,181)

341,408

(1,773)

      

Total Consolidation

3,361,929

(2,591,976)

769,952

     
             

 

 

(*) Since January 1st, 2009, includes Gas Atacama, Transquillota e HydroAysén                                 

(**) Consolidated by Endesa Chile until September 30th, 2005. Since October 1st, 2005 is consolidated by Enersis through Endesa Brasil.                                   

(***) Since October 1st, 2005, these subsidiaries are consolidated by Enersis through Endesa Brasil.                                  

                         

 

 

 

 

Pg. 43

 

 

Market Information

 

Equity Market

New York Stock Exchange (NYSE)

 

The charts below show the performance of Enersis’ ADS (“ENI”) price at the NYSE, compared to the Dow Jones Industrials and the Dow Jones Utilities indexes over the last 12 months, as well as the trading volume, both in the NYSE.

 

 

 

 

 

Source: Bloomberg

 

 

 

Pg. 44

 


PRESS RELEASE

 

Santiago Stock Exchange (BCS)

 

The charts below show the performance of Enersis’ Chilean stock price over the last 12 months compared to the Chilean Selective Stock Index (IPSA), as well as the daily average aggregate trading volume in the Santiago and Chilean Electronic Stock Exchange:

 

 

 

 

 

 

Source: Bloomberg

 

 

 

Pg. 45

 

Madrid Stock Exchange (Latibex) - Spain

 

The charts below show Enersis’ share price (“XENI”) at the Latibex over the last 12 months compared to the local stock index (IBEX), as well as the daily average trading volume in the Latibex.

 

 

 

 

 

 

 

 

 

Note: Since May 2011 onwards, the Madrid Stock Exchange modified the terms of transactions’ relations for companies listed in Latibex, changing the former contract per unit of Enersis using a 50:1 ratio, to a 1:1 ratio. Therefore, each share traded in that exchange became equivalent to one common share traded in its domestic market. The charts above consider price evolution and sales volume according to the new standard.

 

 

Source: Bloomberg

 

 

 

Pg. 46

 

Debt Market

 

Yankee Bonds Price Evolution

 

The following chart shows the pricing of two of our Yankee Bonds over the last 12 months compared to the Ishares Iboxx Investment Grade Corporate Bond Fund Index:

 

 

 

Source: Bloomberg

 

(*) Ishares Iboxx Investment Grade Corporate Bond Fund Index is an exchange traded fund incorporated in the U.S.A. The Index measures the performance of a fixed number of investment grade corporate bonds.

 

 

 

Pg. 47

 


PRESS RELEASE

Ownership of the Company as of March 31, 2012

 

TOTAL SHAREHOLDERS: 7,427

 

 

 

Conference Call Invitation

 

 

Enersis is pleased to invite you to participate in a Conference Call with the management to review the results for the period, on Wednesday, April 25, 2012, at 16:00 PM ET (17:00 PM Local Chile Time). There will be a question and answer session following management's comments. Representing Enersis will be Mr. Alfredo Ergas, Chief Financial Officer and the Investor Relations Team.

 

To participate, please dial +1 (617) 213 4870 or +1 (888) 713 4218 (toll free USA), approximately 10 minutes prior to the scheduled start time, Passcode ID: 83622722.

 

To access the phone replay, please dial +1 (617) 801 6888 or +1 (888) 286 8010 (toll free USA) Passcode ID: 99049498.

 

For this Conference Call you can access previously to the pre-registration site at

https://www.theconferencingservice.com/prereg/key.process?key=PHRQJ3F7D

and make your registration quicker. If not, please connect approximately 15 minutes prior to the scheduled start time. You can also access to the conference call replay through our Investor Relations website at http://www.enersis.cl.

 

 

 

Pg. 48

 

Contact Information

 

For further information, please contact us:

 

 

Ricardo Alvial

Investments and Risks Director

mlmr@enersis.cl

(56-2) 353 4682

Denisse Labarca

Head of Investor Relations 

denisse.labarca@endesa.es

(56-2) 353 4576

Melissa Vargas

Investor Relations Associate

emvb@enersis.cl

(56-2) 353 4555

 

 

Javier Hernández

Investor Relations Associate

jaha@enersis.cl

(56-2) 353 4492

 

 

Jorge Velis

Investor Relations Associate

jgve@enersis.cl

(56-2) 353 4552

Carmen Poblete

Shares Department Representative

cpt@enersis.cl

(56-2) 353 4447

 

Maria Luz Muñoz

Investor Relations Assistant

mlmr@enersis.cl

(56-2) 353 4682

 

       

 

Disclaimer

 

This Press Release contains statements that could constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this announcement and include statements regarding the intent, belief or current expectations of Enersis and its management with respect to, among other things: (1) Enersis’ business plans; (2) Enersis’ cost-reduction plans; (3) trends affecting Enersis’ financial condition or results of operations, including market trends in the electricity sector in Chile or elsewhere; (4) supervision and regulation of the electricity sector in Chile or elsewhere; and (5) the future effect of any changes in the laws and regulations applicable to Enersis’ or its subsidiaries. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of various factors. These factors include a decline in the equity capital markets of the United States or Chile, an increase in the market rates of interest in the United States or elsewhere, adverse decisions by government regulators in Chile or elsewhere and other factors described in Enersis’ Annual Report on Form 20-F. Readers are cautioned not to place undue reliance on those forward-looking statements, which state only as of their dates. Enersis undertakes no obligation to release publicly the result of any revisions to these forward-looking statements.

 

 

 

 

 

 

 

Pg. 49

 

SIGNATURES

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

  ENERSIS S.A. 
   
  By: /s/  Ignacio Antoñanzas Alvear  
  -------------------------------------------------- 
   
  Title: Chief Executive Officer 

Date: April 26, 2012