Quarterly results for EDEMSA
Published Wednesday 13th, May 2009.
Article Category: Reports
Unaudited results for Empresa Distribuidora de Electricidad de Mendoza Sociedad Anonima (EDEMSA)for the quarter ended 31 March 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 quarter ending 31 March 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 (“CNV”) 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 quarter of AR$9.6 million compared to a profit of AR$0.9 million for the equivalent quarter in 2008. Sales increased by 27% over the 2008 equivalent quarter, to AR$125.7 million. This increase resulted from an increase in tariffs in recognition of cost inflation, which became effective 1 February 2008, together with an increase in the demand for energy and the pass through of an increase in the cost of energy purchased Although the gross profit increased by AR$8.4 million over the 2008 equivalent quarter, the increase in operating expenses resulted in an operating profit of AR$7.8 million compared to AR$8.1 million, with EBITDA of AR$14.7 million (quarter ending 31 March 2008: AR$14.9 million). The finance costs for the quarter have been adversely impacted by the weakening of the AR$ against the US$, resulting in a non-cash exchange loss of AR$19 million for the quarter. We continue to enter into short term contracts to hedge this risk when contracts are available and in our opinion the associated cost is not uneconomic. The Board has secured shareholders and CNV approval to issue debt instruments denominated in AR$ or other foreign currencies up to an equivalent of US$80 million, which could give the company more flexibility to manage this currency risk. As announced on 11 March 2009, EDEMSA expects the next tariff review for the third pricing period to take effect from 1 February 2009 but at the date of this announcement the provincial government law decree has not yet been issued. The Board remains confident that the new tariff regime will be forthcoming and will update the market as appropriate. balance sheet Enquiries: Andes Energia plc Tel :020 7495 5326 Luis Alvarez Poli, Chief Executive Officer Nigel Duxbury, Finance Director Arbuthnot Securities Tel: 020 7012 2000 James Steel Antonio Bossi Bishopsgate Communications Tel: 020 7562 3350 Nick Rome Michael Kinirons
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