Company Quick10K Filing
Edenor
20-F 2020-12-31 Filed 2021-04-26
20-F 2019-12-31 Filed 2020-04-27
20-F 2018-12-31 Filed 2019-04-30
20-F 2017-12-31 Filed 2018-04-27
20-F 2016-12-31 Filed 2017-04-28
20-F 2015-12-31 Filed 2016-04-28
20-F 2014-12-31 Filed 2015-05-12
20-F 2013-12-31 Filed 2014-04-28
20-F 2012-12-31 Filed 2013-04-30
20-F 2011-12-31 Filed 2012-04-26
20-F 2010-12-31 Filed 2011-06-14
20-F 2009-12-31 Filed 2010-06-08

EDN 20F Annual Report

Part I
Item 1. Identity of Directors, Senior Management and Advisors
Item 2. Offer Statistics and Expected Timetable
Item 3. Key Information
Item 4. Information on The Company
Item 4A. Unresolved Staff Comments
Item 5. Operating and Financial Review and Prospects
Item 6. Directors, Senior Management and Employees
Item 7. Major Shareholders and Related Party Transactions
Item 8. Financial Information
Item 9. The Offer and Listing
Item 10. Additional Information
Item 11. Quantitative and Qualitative Disclosures About Market Risk
Item 12. Description of Securities Other Than Equity Securities
Part II
Item 13. Defaults, Dividend Arrearages and Delinquencies
Item 14. Material Modifications To The Rights of Security Holders and Use of Proceeds
Item 15. Controls and Procedures
Item 16A. Audit Committee Financial Expert
Item 16B. Code of Ethics
Item 16C. Principal Accountant Fees and Services
Item 16D. Exemptions From The Listing Standards for Audit Committees
Item 16E. Purchases of Equity Securities By The Issuer and Affiliated Purchasers
Item 16F. Change in Registrant's Certifying Accountant
Item 16G. Corporate Governance
Part III
Item 17. Financial Statements
Item 18. Financial Statements
Item 19. Exhibits
EX-12.1 v187617_ex12-1.htm
EX-12.2 v187617_ex12-2.htm
EX-13.1 v187617_ex13-1.htm

Edenor Earnings 2009-12-31

Balance SheetIncome StatementCash Flow

20-F 1 v187617_20f.htm Unassociated Document
 


UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 20-F
   
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2009
 
Commission File number: 001-33422
 
Empresa Distribuidora y Comercializadora Norte S.A.
(Exact name of registrant as specified in its charter)
 
Distribution and Marketing Company of the North S.A.
Argentine Republic
(Translation of registrant’s name into English)
(Jurisdiction of incorporation or organization)
Azopardo 1025
Ciudad de Buenos Aires, C1107ADQ
Buenos Aires, Argentina
 (Address of principal executive offices)

Ivana Del Rossi
54 11 4346 5127 / 54 11 4346 5325
Azopardo 1025 (C1107ADQ) Bs. As.
Investor Relations Officer

Securities registered or to be registered pursuant to Section 12(b) of the Act:
 
Title of each class:
Name of each exchange on which registered
   
Class B Shares
New York Stock Exchange, Inc.*
American Depositary Shares, or ADSs, evidenced by American
Depositary Receipts, each representing 20 Class B Shares
New York Stock Exchange, Inc.
*
Not for trading, but only in connection with the registration of American Depositary Shares, pursuant to the requirements of the Securities and Exchange Commission.
 

Securities registered or to be registered pursuant to Section 12(g) of the Act: None
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: N/A
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report: 462,292,111 Class A Ordinary Shares, 442,210,385 Class B Ordinary Shares and 1,952,604 Class C Ordinary Shares
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes ¨ No þ
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Sections 13 or 15(d) of the Securities Exchange Act of 1934.  Yes ¨ No þ
Note:  Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.  Yes þ No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer ¨ Accelerated filer þ Non-accelerated filer ¨
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:  U.S. GAAP ¨ IFRS ¨ Other þ
If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow: Item 17 ¨ Item 18 þ
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act).  Yes ¨ No þ
 


 
 

 

Item 1.
Identity of Directors, Senior Management and Advisors
2
Item 2.
Offer Statistics and Expected Timetable
2
Item 3.
Key Information
2
Item 4.
Information on the Company
21
Item 4A.
Unresolved Staff Comments
46
Item 5.
Operating and Financial Review and Prospects
46
Item 6.
Directors, Senior Management and Employees
86
Item 7.
Major Shareholders and Related Party Transactions
95
Item 8.
Financial Information
99
Item 9.
The Offer and Listing
103
Item 10.
Additional Information
106
Item 11.
Quantitative and Qualitative Disclosures about Market Risk
123
Item 12.
Description of Securities Other than Equity Securities
124
Item 13.
Defaults, Dividend Arrearages and Delinquencies
126
Item 14.
Material Modifications to the Rights of Security Holders and Use of Proceeds
126
Item 15.
Controls and Procedures
126
Item 16A.
Audit Committee Financial Expert
127
Item 16B.
Code of Ethics
128
Item 16C.
Principal Accountant Fees and Services
128
Item 16D.
Exemptions from the Listing Standards for Audit Committees
128
Item 16E.
Purchases of Equity Securities by the Issuer and Affiliated Purchasers
128
Item 16G.
Corporate Governance
129
Item 17.
Financial Statements
132
Item 18.
Financial Statements
132
Item 19.
Exhibits
132
Index to Financial Statements
F-1

 
 

 
 
PART I
 
Introduction
 
Empresa Distribuidora y Comercializadora Norte S.A., or Edenor, is a sociedad anónima (limited liability corporation) organized under the laws of the Argentine Republic, or Argentina.  Our principal executive offices are located at Azopardo 1025, Ciudad de Buenos Aires, C1107ADQ, Buenos Aires, Argentina.
 
Item 1.
Identity of Directors, Senior Management and Advisors
 
Not applicable.
 
Item 2.
Offer Statistics and Expected Timetable
 
Not applicable.
 
Item 3.
Key Information
 
FORWARD-LOOKING STATEMENTS
 
This annual report includes forward-looking statements, principally under the captions “Item 3. Key Information—Risk factors,” “Item 4. Information on the Company” and “Item 5. Operating and Financial Review and Prospects.” We have based these forward-looking statements largely on our current beliefs, expectations and projections about future events and financial trends affecting our business.  Forward-looking statements may also be identified by words such as “believes,” “expects,” “anticipates,” “projects,” “intends,” “should,” “seeks,” “estimates,” “future” or similar expressions.  Many important factors, in addition to those discussed elsewhere in this annual report, could cause our actual results to differ materially from those expressed or implied in our forward-looking statements, including, among other things:
 
 
·
the outcome and timing of the integral tariff revision process we are currently undertaking with the Ente Nacional Regulador de la Electricidad (Argentine National Electricity Regulator, or the ENRE) and, more generally, uncertainties relating to future government approvals to increase or adjust our tariffs;
 
 
·
general political, economic, social, demographic and business conditions in Argentina and particularly in the geographic market we serve;
 
 
·
the global financial crisis and its impact on liquidity and access to capital;
 
 
·
the impact of regulatory reform and changes in the regulatory environment in which we operate;
 
 
·
electricity shortages;
 
 
·
potential disruption or interruption of our service;
 
 
·
restrictions on the ability to exchange Pesos into foreign currencies or to transfer funds abroad;
 
 
·
the revocation or amendment of our concession by the granting authority;
 
 
·
our ability to implement our capital expenditure plan, including our ability to arrange financing when required and on reasonable terms;
 
 
·
fluctuations in inflation and exchange rates, including a devaluation of the Peso; and
 
 
·
additional matters identified in “Risk factors.”
 
 
2

 

Forward-looking statements speak only as of the date they were made, and we undertake no obligation to update publicly or to revise any forward-looking statements after we file this annual report because of new information, future events or other factors.  In light of these limitations, undue reliance should not be placed on forward-looking statements contained in this annual report.
 
SELECTED FINANCIAL DATA
 
The following table presents selected financial and operating data.  This information should be read in conjunction with our audited financial statements and related notes and “Item 5. Operating and Financial Review and Prospects” included elsewhere in this annual report.
 
The financial data as of December 31, 2009 and 2008 and for each of the three years in the period ended December 31, 2009 are derived from our audited financial statements, which were audited by Price Waterhouse & Co. S.R.L., member firm of PricewaterhouseCoopers, for the years ended December 31, 2009 and 2008 and Deloitte & Co. S.R.L., member firm of Deloitte & Touche Tohmatsu, for the year ended December 31, 2007.  We engaged Price Waterhouse & Co. S.R.L as our new auditors in April 2008, in order to consolidate our audit with that of our controlling shareholder, Pampa Energia S.A., also audited by Price Waterhouse & Co. S.R.L.  Our audited financial statements have been prepared in accordance with generally accepted accounting principles in the City of Buenos Aires, which we refer to as Argentine GAAP and which differ in certain significant respects from U.S. Generally Accepted Accounting Principles (U.S.GAAP).  Note 27 to our audited financial statements included elsewhere in this annual report provides a description of the significant differences between Argentine GAAP and U.S. GAAP, as they relate to us, and a reconciliation to U.S. GAAP of net income for the years then ended December 31, 2009, 2008 and 2007 and shareholders’ equity as of December 31, 2009 and2008.
 
In this annual report, except as otherwise specified, references to “$”, “U.S. $” and “Dollars” are to U.S. Dollars, and references to “Ps. ” and “Pesos” are to Argentine Pesos.  Solely for the convenience of the reader, Peso amounts as of and for the year ended December 31, 2009 have been translated into U.S. Dollars at the buying rate for U.S. Dollars quoted by Banco de la Nación Argentina (Banco Nación) on December 31, 2009 of Ps. 3.80 to U.S. $1.00.  The U.S. Dollar equivalent information should not be construed to imply that the Peso amounts represent, or could have been or could be converted into, U.S. Dollars at such rates or any other rate.  See “Item 3. Key Information – Exchange rates.”
 
Under Argentine GAAP, we generally are not required to record the effects of inflation in our financial statements.  However, because Argentina experienced a high rate of inflation in 2002, with the wholesale price index increasing by approximately 118%, we were required by Decree No. 1269/2002 and Comisión Nacional de Valores (National Securities Commission or CNV) Resolution No. 415/2002 to restate our financial statements in constant Pesos in accordance with Argentine GAAP.  On March 25, 2003, Decree No. 664/2003 rescinded the requirement that financial statements be prepared in constant currency, effective for financial periods on or after March 1, 2003.  As a result, we are not required to restate and have not restated our financial statements for inflation after February 28, 2003.  See note 2 to our audited financial statements included in this annual report.

 
3

 

Certain figures included in this annual report have been subject to rounding adjustments.  Accordingly, figures shown as totals may not sum due to rounding.
 
    
For the year ended December 31,
 
   
2009
   
2008
   
2007
   
2006
   
2005
 
   
(in millions, except for per share and per ADS data)
 
Statement of operations data
                                   
Argentine GAAP
                                   
Net sales(1)
  U.S. $ 546.8     Ps.
2,077.9
    Ps.
2,000.2
    Ps.
1,981.9
    Ps.
1,378.3
    Ps.
1,262.2
 
Electric power purchases
    (264.0 )     (1,003.4 )     (934.7 )     (889.9 )     (799.1 )     (757.7 )
Gross margin
    282.8       1,074.5       1,065.5       1,092.0       579.3       504.5  
Transmission and distribution expenses
    (144.4 )     (548.6 )     (497.9 )     (417.6 )     (362.1 )     (346.1 )
Selling expenses
    (41.8 )     (158.9 )     (126.0 )     (120.6 )     (87.9 )     (86.0 )
Administrative expenses
    (46.5 )     (176.6 )     (138.7 )     (124.7 )     (93.3 )     (72.9 )
Net operating income (loss)
    50.1       190.4       302.9       429.2       35.9       (0.4 )
Other income (expenses), net
    6.1       23.2       (29.9 )     1.0       (22.9 )     (0.7 )
Financial income (expenses) and holding gains (losses):
                                               
Generated by assets:
                                               
Exchange difference
    5.6       21.4       8.1       (0.9 )     2.6       2.1  
Interest
    4.3       16.2       9.8       13.4       13.9       12.9  
Holding results
    9.9       37.6       (7.3 )     0.1       0.1       (0.6 )
Generated by liabilities:
                                               
Financial expenses
    (3.1 )     (11.7 )     (10.0 )     (21.0 )     (25.4 )     (14.1 )
Exchange difference
    (26.1 )     (99.1 )     (92.7 )     (29.9 )     (13.3 )     (29.0 )
Interest
    (23.1 )     (87.7 )     (95.3 )     (74.5 )     (101.3 )     (119.5 )
Holding results
                                  (0.2 )
Adjustment to present value of the retroactive tariff increase arising from the application of the new electricity rate schedule and other receivables(2)
    0.9       3.4       13.5       (29.6 )            
Gain on extinguishment of former debt(3)
                            179.2        
Adjustment to present value of notes(4)
    (1.4 )     (5.2 )     (8.5 )     (21.5 )     57.1        
Gain (loss) from the purchase of notes(5)
    21.4       81.4       93.6       (10.2 )            
Adjustment to present value of purchased notes(4)
                      (8.6 )            
Income (loss) before taxes
    44.6       169.9       184.3       247.4       125.9       (149.6 )
Income tax(6)
    (20.9 )     (79.3 )     (61.2 )     (125.0 )     167.2        
Net income (loss)
  U.S. $ 23.7     Ps.
 90.6
    Ps.
123.1
    Ps.
122.5
    Ps.
293.1
    Ps.
(149.6)
 
Net  income (loss) per ordinary share – basic and diluted
    0.027       0.101       0.137       0.135       0.352       (0.180 )
Dividends declared per ordinary share(7)
                                   
Net income per ADS(8) — basic and diluted
    0.54       2.02       2.716       2.702              
                                                 
Number of shares outstanding
    906,455,100       906,455,100       906,455,100       906,455,100       831,610,200       831,610,200  
                                                 
U.S. GAAP
                                               
Net sales/service revenues
  U.S. $ 569.3     Ps.
2,163.3
    Ps.
2,059.0
    Ps.
1,937.0
    Ps.
1,403.5
    Ps.
1,334.9
 
Electric power purchases
    (264.1 )     (1,003.4 )     (934.7 )     (889.9 )     (799.1 )     (757.7 )
Transmission and distribution expenses
    (164.2 )     (624.0 )     (577.0 )     (477.5 )     (450.3 )     (425.3 )
Gross margin
    141.0       535.9       547.3       569.6       154.1       151.0  
Operating expenses, net
    (86.1 )     (327.2 )     (296.6 )     (207.5 )     (194.1 )     185.0  
Net operating income (loss)
    54.9       208.7       250.7       362.1       40.0       (33.1 )
Financial (expense), net and holding gains
    (11.2 )     (42.6 )     82.0       (46.5 )     (133.3 )     (139.1 )
Net income (loss) before income taxes
    43.7       166.2       332.7       315.7       (173.3 )     (172.1 )
Income tax
    (24.5 )     (93.1 )     (68.2 )     (99.9 )     128.0       8.1  
Net income (loss) for the year
    19.2       73.1       264.5       215.8       (45.3 )     (164.0 )
Net income (loss) per ordinary share – basic and diluted(7)
    0.021       0.081       0.295       0.238       (0.054 )     (0.197 )
Net income  per ADS(8) — basic and diluted
    0.43       1.62       5.90       4.761              
 

(1)
Net sales for 2007 include the retroactive portion of the February 2007 tariff increase, which amounts in aggregate to Ps. 218.6 million, and is being invoiced in 55 equal and consecutive monthly installments, starting in February 2007. As of December 31, 2009 we had invoiced Ps. 149.4  million of this amount.
(2)
Reflects the adjustment to present value of the retroactive portion of the tariff increase that is being invoiced in 55 consecutive monthly installments, starting in February 2007, and the adjustment to present value of Ps. 38.4 million due under the payment plan agreement with the Province of Buenos Aires that is being invoiced in 18  installments, starting in January 2007.  As of December 31, 2009 and 2008, Ps. 2.3 million was due under the payment plan agreement with the Province of Buenos Aires, and Ps. 69.2 million and Ps. 118.9 million of the retroactive tariff increase had not been invoiced in 2009 and 2008, respectively.  In accordance with Argentine GAAP, we account for these long term receivables at their net present value, which we calculate at a discount rate of 10.5% for the retroactive tariff increase and 19.62% for the payment plan agreement, recording the resulting non-cash charge as an adjustment to present value of these two receivables.  See “Item 4. Information on the Company —Framework agreement (Shantytowns).”

 
4

 

(3)
Our debt restructuring generated a one-time gain of Ps. 179.2 million in the year ended December 31, 2006, reflecting the recognition of a Ps. 55.3 million waiver of principal amount on our financial debt, a Ps. 75 million waiver of accrued interest on our financial debt and a Ps. 65.7 million waiver of penalties related to the non-payment of our financial debt, which more than offset Ps. 16.8 million in related restructuring costs.  See “Item 5. Operating and Financial Review and Prospects—Liquidity and capital resources—Debt” for a description of the restructuring notes.
(4)
We record our financial debt in our balance sheet at fair value reflecting our management’s best estimate of the amounts expected to be paid at each year end, calculated at a discount rate of 10.5% for the years ended December 31, 2009, 2008 and 2007 and 10% for the year ended December 31, 2006.  We did not record any adjustment to present value in any year before the year ended December 31, 2006 because our financial debt was in default.
(5)
In 2007, we repurchased U.S. $43.7 million principal amount of our outstanding Fixed Rate Par Notes due 2016 and redeemed and repurchased  U.S. $240 million principal amount of our outstanding Discount Notes due 2014. In addition, in the year ended December 31, 2008 and 2009, we repurchased U.S. $32.5 million and U.S. $32.2 million principal amount of our outstanding Fixed Rate Par Notes due 2016, respectively  and U.S. $17.5 million and  U.S. $53.8 million  principal amount of our outstanding Senior Notes due 2017, respectively.
(6)
In 2006, our income tax result reflects the reversal of net deferred tax assets, primarily due to the fact that, as a consequence of the ratification of the Adjustment Agreement in January 2007 and the renegotiation of our financial debt in April 2006, we generated taxable income that allowed us to offset a significant portion of the tax loss carryforwards we generated in 2002.
(7)
We have not declared or paid any dividends since August 14, 2001.
(8)
Each ADS represents 20 Class B ordinary shares.

 
5

 
 
   
As of December 31,
 
   
2009
   
2008
   
2007
   
2006
   
2005
 
   
(in millions)
 
Balance sheet data
                                   
Argentine GAAP
                                   
Current Assets:
                                   
Cash and banks
  U.S.$  2.3     Ps.
8,7
    Ps. 6.1     Ps. 3.5     Ps. 0.5     Ps. 11.7  
Investments
    57.8       219,7       121.0       97.7       32.2       296.5  
Trade receivables
    102.4       389,2       400.4       346.0       270.9       231.9  
Other receivables
    16.1       61,1       42.8       26.0       30.2       21.7  
Supplies
    3.9       14,8       16.7       23.2       13.6       13.8  
Total current assets
  U.S.$  182.5     Ps.
693,5
    Ps. 587.0     Ps. 496.3     Ps. 347.5     Ps. 575.6  
Non-Current Assets:
                                               
Trade receivables
    22.9       87.0       111.4       100.3              
Other receivables
    23.4       88.8       99.5       144.1       256.5       74.7  
Investments in other companies
    0.1       0.4       0.4       0.4       0.4       0.4  
Investments
                67.2                    
Supplies
    4.9       18.6       12.8       13.8       4.9       36.5  
Property, plant and equipment
    916.4       3,482.4       3,256.3       3,092.7       2,925.4       2,889.3  
Total non-current assets
  U.S.$  967.7     Ps. 3,677.2     Ps. 3,547.6     Ps. 3,351.3     Ps. 3,187.2     Ps. 3,000.9  
Total assets
  U.S.$  1,150.2     Ps. 4,370.7     Ps. 4,134.6     Ps. 3,847.6     Ps. 3,534.7     Ps. 3,576.5  
Current liabilities:
                                               
Trade account payable
    91.5       347.8       339.3       316.2       267.6       205.1  
Loans
    21.8       83.0       27.2       29.3       2.0       1,620.1  
Salaries and social security taxes
    31.2       118.4       94.8       59.9       51.4       34.1  
Taxes
    36.9       140.3       111.0       84.6       62.2       67.9  
Other liabilities
    2.1       8.0       10.5       9.7       26.4       175.8  
Accrued litigation
    16.5       62.8       52.8       39.9       25.9       18.3  
Total current liabilities
  U.S.$  200.0     Ps. 760.3     Ps. 635.6     Ps. 539.6     Ps. 435.6     Ps. 2,121.3  
Non-current liabilities:
                                               
Trade account payable
    12.3       46.8       40.2       35.5       31.3       26.8  
Loans
    186.2       707.5       913.1       949.1       1,095.5        
Salaries and social security taxes
    11.5       43.7       40.1       24.7       20.3       12.4  
Taxes
    2.5       9.4       0       0       0       0  
Other liabilities
    160.7       610.8       369.0       281.4       241.1        
Accrued Litigation
    2.7       10.0       45.1       42.8       40.6       38.7  
Total non-current liabilities
    375.9       1,428.2       1,407.5       1,333.5       1,428.7       77.8  
Total liabilities
  U.S.$  575.9     Ps. 2,188.5     Ps. 2,043.0     Ps. 1,873.0     Ps. 1,864.3     Ps. 2,199.2  
Shareholders’ equity
    574.3       2,182.2       2,091.6       1,974.6       1,670.4       1,377.3  
Total liabilities and shareholders’ equity
  U.S.$  1,150.2     Ps. 4,370.7     Ps. 4,134.6     Ps. 3,847.6     Ps. 3,534.7     Ps. 3,576.5  
                                                 
U.S. GAAP
                                               
Current assets
  U.S.$  185.1     Ps. 703.3     Ps. 666.7     Ps. 536.7     Ps. 547.0     Ps. 728.8  
Property, plant and equipment, net
    934.8       3,552.4       3,331.2       3,175.7       3,016.4       3,009.7  
Other non-current assets
    68.5       260.4       258.4       346.6       201.5       145.5  
Total assets
  U.S.$  1,188.4     Ps. 4,516.1     Ps. 4,256.3     Ps. 4,059.0     Ps. 3,764.9     Ps. 3,884.0  
Current liabilities
  U.S.$  208.1     Ps. 790.9     Ps. 707.5     Ps. 573.7     Ps. 470.0       Ps 2,124.8  
Non-current liabilities
    506.3       1,923.8       1,821.6       2,018.2       2,225.1       640.3  
Total liabilities
    714.4       2,714.7       2,529.1       2,591.9       2,695.1       2,765.1  
Shareholders’ equity
    474.1       1,801.4       1,727.2       1,467.1       1,069.8       1,118.8  
Total liabilities and shareholders’ equity
  U.S.$  1,188.4     Ps. 4,516.1     Ps. 4,256.3     Ps. 4,059.0     Ps. 3,764.9     Ps. 3,884.0  
 
 
6

 

   
Year ended December 31,
 
   
2009
   
2008
   
2007
   
2006
   
2005
 
   
(in millions)
 
Cash flow data
                                   
Argentine GAAP
                                   
Operating activities:
                                   
Net income (loss)
  U.S.$ 23.8    
Ps.
90.6
   
Ps.
123.1
    Ps.
122.5
    Ps.
293.1
    Ps.
(149.6
Adjustment to reconcile net income (loss) to net cash flows provided by (used in) operating activities:
                                     
Depreciation of property, plant and equipment
    46.2       175.4       170.3       174.4       179.0       178.4  
Retirement of property, plant and equipment
    0.7       2.8       1.9       1.1       0.7       0.9  
Gain on extinguishment of former debt
                            (179.2 )      
                                                 
Gain from investments in affiliated parties
                      (0.1 )     (0.1 )      
Loss (Gain) from investments
    6.9       26.4       (4.3 )     (8.5 )            
Adjustment to present value of notes
    1.4       5.2       8.5       21.5       (57.1 )      
(Gain) Loss from the purchase and redemption of notes
    (21.4 )     (81.4 )     (93.6 )     10.2              
Adjustment to present value of the repurchased and redeemed notes
                      8.6              
Exchange differences, interest and penalties on loans
    47.0       178.6       232.7       69.5       49.1       139.0  
Supplies recovered from third parties
                            (5.8 )      
Increase in trade receivables due to the unbilled portion of the retroactive tariff increase
                      (171.3 )            
Recovery of the accrual for tax contingencies
    (9.3 )     (35.5 )                        
Income tax
    20.9       79.3       61.2       125.0       (167.2 )      
Allowance for doubtful accounts
    3.5       13.5       17.1                    
Reversal of the allowance for doubtful accounts
    (7.1 )     (26.9 )     (24.0 )                  
Allowance for other doubtful accounts
    0.9       3.3       1.7                    
Adjustment to net present value of the retroactive tariff increase arising from the application of the new electricity rate schedule and of the Payment Plan Agreement with the Province of Buenos Aires
    (0.9 )     (3.4 )     (13.5 )     29.6              
Changes in operating assets and liabilities:
                                               
Decrease (Increase) in trade receivables (net of the unbilled portion of the retroactive tariff increase)
    12.7       48.1       (49.5 )     (36.9 )     (39.0 )     (37.1 )
Net decrease (increase) in other receivables
    1.4       5.3       (33.4 )     (8.4 )     (23.1 )     (27.2 )
(Increase) Decrease in supplies
    (1.0 )     (3.9 )     7.4       (18.4 )     1.4       (5.4 )
Increase in trade accounts payable
    4.0       15.2       27.8       52.7       67.1       54.4  
Increase in salaries and social security taxes
    7.2       27.2       50.3       12.9       25.2       4.5  
(Decrease) Increase in taxes
    (15.0 )     (56.9 )     26.4       22.5       (5.7 )     23.6  
Increase in other liabilities
    62.9       239.1       78.1       17.7       91.7       36.8  
Net increase in accrued litigation
    2.8       10.6       15.1       16.2       9.5       7.7  
Financial interest paid, net of interest capitalized
    (20.2 )     (76.8 )     (62.7 )     (25.5 )     (26.7 )     (46.5 )
Financial and commercial interest collected
    8.5