EDEMSA Interim Results

Published Wednesday 12th, August 2009.

Article Category: Reports

Unaudited results for Empresa Distribuidora de Electricidad de Mendoza Sociedad Anonima (EDEMSA) for the sixth months ended 30 June 2009 Article Content Andes Energia plc (Andes) (AIM:AEN) EDEMSA, the electricity distributor for the province of Mendoza in which Andes has a 51 per cent. indirect interest, has published its financial results for the six months ended 30 June 2009. This information, which has been prepared under Argentine GAAP and in Spanish, is available from the web-site of the Argentine Comision Nacional de Valores at www.cnv.gov.ar. This announcement sets out the unaudited financial information of EDEMSA for the same period prepared under IFRS in Argentine Pesos (AR$). Financial Overview of EDEMSA EDEMSA reported a loss for the six months of AR$11.2 million (6 months to 30 June 2008: AR$9.2 million profit) Sales in the period increased by 20.6% over the equivalent period last year, to AR$243 million. This increase resulted primarily from a 3.5% increase in the demand for energy and the pass through of an increase in the cost of energy purchased. Although the gross profit has increased to AR$60.4 million from AR$49.3 million, the increase in operating expenses resulted in an operating profit of AR$12.6 million down from AR$16.1 million in the equivalent period last year, with EBITDA of AR$26.6 million (6 months to 30 June 2008: AR$29.7 million). The finance costs for the year have been adversely impacted by the weakening of the AR$ against the US$, resulting in a non-cash exchange loss of AR$24.4 million for the period. The company continues to evaluate all options available to it to minimize this currency risk. The company has established a trust with the objective of investing in US$ denominated assets and as previously mentioned has secured shareholders\’ approval to issue up to an equivalent of US$80 million of debt instruments denominated in AR$ or other foreign currencies at the Board\’s discretion, which would give the company more flexibility to manage this currency risk. On 22 July 2009 decree number 1569-09 was published in the Official Gazette of the Province of Mendoza, which approved the procedure for the calculation of the tariff for the third review period. At the date of this announcement EDEMSA has not yet been advised of the percentage increase, which will be calculated by EPRE, the provincial regulator. The Board believes this notification will be forthcoming in the near future. Neil Bleasdale, EDEMSA President commented, “We are pleased that the Government has approved the procedure for the calculation of the tariff increase. The tariff schedules will be published once decided by the Ministry of Infrastructure, Housing and Transport and we will update the market with more details once published.”. balance sheet in attached document Final Results Published Tuesday 30th, June 2009.
Final results for the year ended 31 December 2008

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 Click here to download. Final Results