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
Item 16 H. Mine Safety Disclosures
Part III
Item 17. Financial Statements
Item 18. Financial Statements
Item 19. Exhibits
Note 1 | General Information
Note 2 | Regulatory Framework
Note 3 | Basis of Preparation
Note 4 | Accounting Policies
Note 4.1 | Changes in The Accounting Policies
Note 4.1.1 | New Standards, Amendments and Interpretations Effective As of December 31, 2016 and Adopted By The Company:
Note 4.1.2 | New Standards, Amendments and Interpretations Not Effective and Not Early Adopted By The Company:
Note 4.2 | Property, Plant and Equipment
Note 4.3 | Interests in Joint Ventures
Note 4.4 | Revenue Recognition
Note 4.5 | Effects of The Changes in Foreign Currency Exchange Rates
Note 4.6 | Trade and Other Receivables
Note 4.7 | Inventories
Note 4.8 | Financial Assets
Note 4.8.1 | Classification
Note 4.8.2 | Recognition and Measurement
Note 4.8.3 | Impairment of Financial Assets
Note 4.8.4 | Offsetting of Financial Instruments
Note 4.9 | Derivative Financial Instruments
Note 4.10 | Cash and Cash Equivalents
Note 4.11 | Equity
Note 4.12 | Trade and Other Payables
Note 4.13 | Borrowings
Note 4.14 | Deferred Revenue
Note 4.15 | Employee Benefits
Note 4.16 | Income Tax and Tax on Minimum Presumed Income
Note 4.17 | Assignments of Use
Note 4.18 | Provisions and Contingencies
Note 4.19 | Balances with Related Parties
Note 4.20 | Higher Costs and Income Recognition
Note 4.21 | Share-Based Compensation Plan
Note 5 | Financial Risk Management
Note 5.1 | Financial Risk Factors
Note 5.2 | Concentration Risk Factors
Note 5.3 | Capital Risk Management
Note 5.4 | Regulatory Risk Factors
Note 5.5 | Fair Value Estimate
Note 6 | Critical Accounting Estimates and Judgments
Note 7 | Interest in Joint Venture
Note 8 | Contingencies and Lawsuits
Note 9 | Property, Plant and Equipment
Note 10 | Financial Instruments
Note 11 | Other Receivables
Note 12 | Trade Receivables
Note 13 | Financial Assets At Fair Value Through Profit or Loss
Note 14 | Financial Assets At Amortized Cost
Note 15 | Inventories
Note 16 | Cash and Cash Equivalents
Note 17 | Share Capital and Additional Paid-In Capital
Note 18 | Allocation of Profits
Note 19 | Trade Payables
Note 20 | Other Payables
Note 21 | Deferred Revenue
Note 22 | Borrowings
Note 23 | Salaries and Social Security Taxes
Note 24 | Benefit Plans
Note 25 | Income Tax and Tax on Minimum Presumed Income / Deferred Tax
Note 26 | Income Tax / Tax on Minimum Presumed Income Payable, Net
Note 27 | Tax Liabilities
Note 28 | Leasings
Note 29 | Provisions
Note 30 | Revenue From Sales
Note 31 | Expenses By Nature
Note 32 | Other Operating Expense, Net
Note 33 | Net Financial Expense
Note 34 | Basic and Diluted (Loss) Earnings per Share
Note 35 | Related-Party Transactions
Note 36 | Trust for The Management of Electric Power Transmission Works
Note 37 | Electric Works Arrangement - Agreement for The Supply of Electric Power To Mitre and Sarmiento Railway Lines
Note 38 | Construction Works - San Miguel and San MartíN Transformer Centers
Note 39 | Agreement for The Execution of Works - La Matanza Municipality
Note 40 | Request for Removal of Facilities To Carry Out Expansion Works in Jorge Newbery Airport Southern Head Station
Note 41 | Merger Process - Emdersa Holding S.A.
Note 42 | Safekeeping of Documentation
Note 43 | Ordinary and Extraordinary Shareholders' Meeting
Note 44 | Share-Based Compensation Plan
Note 45 | Events After The Reporting Period
EX-12.1 exhibit12_1.htm
EX-12.2 exhibit12_2.htm
EX-13.1 exhibit13_1.htm

Edenor Earnings 2016-12-31

Balance SheetIncome StatementCash Flow

20-F 1 ednform20f_2016.htm FORM 20-F ednform20f_2016.htm - Generated by SEC Publisher for SEC Filing  

As filed with the Securities and Exchange Commission on April 28, 2017

 

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, 2016 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)

Avenida Del Libertador 6363

Ciudad de Buenos Aires, C1428ARG

Buenos Aires, Argentina
(Address of principal executive offices)

Leandro Montero

Tel.: +54 11 4346 5510 / Fax: +54 11 4346 5325 Avenida Del Libertador 6363 (C1428ARG)
Buenos Aires, Argentina

Chief Financial Officer

(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

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 Common Shares

New York Stock Exchange, Inc.*

American Depositary Shares, or ADSs, evidenced by American Depositary Receipts, each representing 20 Class B Common 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 Common Shares, 442,210,385 Class B Common Shares and 1,952,604 Class C Common 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 x

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 x

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 x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every

Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer

¨

Accelerated Filer

x

Non-Accelerated Filer

¨

Emerging Growth Company

¨

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ¨

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

 


 
 

 

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:  U.S. GAAP ¨
International Financial Reporting Standards as issued by the International Accounting Standards Board
x Other ¨

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 ¨

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 x

 

 


 
 

 

PART I
Item 1.  Identity of Directors, Senior Management and Advisors  1
Item 2.  Offer Statistics and Expected Timetable  1
Item 3.  Key Information  1
Item 4.  Information on the Company  34
Item 4A.  Unresolved Staff Comments  68
Item 5.  Operating and Financial Review and Prospects  68
Item 6.  Directors, Senior Management and Employees  108
Item 7.  Major Shareholders and Related Party Transactions  119
Item 8.  Financial Information  124
Item 9.  The Offer and Listing  129
Item 10.  Additional Information  132
Item 11.  Quantitative and Qualitative Disclosures about Market Risk  150
Item 12.  Description of Securities Other than Equity Securities  151
 
PART II
Item 13.  Defaults, Dividend Arrearages and Delinquencies  152
Item 14.  Material Modifications to the Rights of Security Holders and Use of Proceeds 152
Item 15.  Controls and Procedures  152
Item 16A. Audit Committee Financial Expert  153
Item 16B. Code of Ethics |  154
Item 16C. Principal Accountant Fees and Services  154
Item 16D. Exemptions from the Listing Standards for Audit Committees  154
Item 16E.  Purchases of Equity Securities by the Issuer and Affiliated Purchasers  154
Item 16F.  Change in Registrant’s Certifying Accountant  154
Item 16G. Corporate Governance  154
Item 16H. Mine Safety Disclosures  158
 
PART III
Item 17.  Financial Statements  159
Item 18.  Financial Statements  159
Item 19.  Exhibits  159
   
Index to Financial Statements F-1

 

 

 


 
 

 

PART I

Item 1.         Identity of Directors, Senior Management and Advisors

Not applicable.

Item 2.         Offer Statistics and Expected Timetable

Not applicable.

Item 3.         Key Information

In this annual report, except as otherwise specified, references to “we”, “us”, “our” and “the Company” are references to (i) Empresa Distribuidora y Comercializadora Norte S.A., or “Edenor”, on a standalone basis prior to March 1, 2011, (ii) Edenor, Empresa Distribuidora Eléctrica Regional S.A. (“Emdersa”) and Aeseba S.A. (“Aeseba”), between March 1, 2011 and March 31, 2013, (iii) Edenor and Emdersa, between March 1, 2011 and September 30, 2013, and (iv) Edenor on a standalone basis, from October 1, 2013 through the date of filing of this annual report. References to Edenor, Emdersa and/or Aeseba on a standalone basis are made by naming each company as the case may be. For more information, see “Item 4Information on the CompanyHistory and Development of the Company.”

 

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  implementation of the resolution that concluded the integral tariff revision (Revision Tarifaria Integral, or “RTI”) process in the upcoming years;

·         uncertainties related to future government interventions or legal actions, such as provisional remedies, that could affect our tariffs;

·         general political, economic, social, demographic and business conditions in the Republic of Argentina, or “Argentina” and particularly in the geographic market we serve;

·         the impact of regulatory reform and changes in the regulatory environment in which we operate;

·         electricity shortages;

·         the evolution of energy losses and the impact of fines and penalties and uncollectable debt;

·         potential disruption or interruption of our service;

·         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 exchange rates, including a devaluation of the Peso;

·         the impact of high rates of inflation on our costs; and,

·         additional matters identified in “Risk factors”.

                                                 

 

1


 
 

 

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.

 

 

2


 
 

 

SELECTED FINANCIAL DATA

The following tables present our summary financial data for the years ended December 31, 2016, 2015, 2014, 2013 and 2012. This information should be read in conjunction with our audited financial statements as of December 31, 2016 and 2015 and for each of the three years in the period ended December 31, 2016 (the Financial Statements”), the related notes thereto and the information under “Item 5. Operating and Financial Review and Prospectsˮ included elsewhere in this annual report. The financial data as of December 31, 2016, have been derived from our Financial Statements.

Our Financial Statements have been prepared in accordance with International Financing Reporting Standards (“IFRSˮ), as issued by the International Accounting Standards Board (“IASBˮ), and these have been approved by resolution of the board of directors’ meeting held on March 8, 2017.  See “Item 18—Financial Statements”.

The selected statement of comprehensive (loss) income data for the years ended December 31, 2016, 2015, 2014, 2013 and 2012, and the selected statement of financial position data as of December 31, 2016, 2015, 2014, 2013 and 2012 have been prepared in accordance with IFRS, as issued by the IASB, and have been derived from our financial statements, which were audited by Price Waterhouse & Co. S.R.L. (“PwC”), member firm of PricewaterhouseCoopers network. The financial data as of December 31, 2014, 2013 and 2012 is derived from our audited consolidated financial statements that are not included in this annual report, which were also audited by PwC.

During 2016, we recorded, as we had done in 2012 and 2014, negative operating and net results, thus deteriorating once again our economic and financial situation, which had temporarily improved in 2015 as a consequence of the issuance of Resolution No. 32/15 by the Secretariat of Energy (the “SE”). Such resolution addressed the need for the adjustment of our distribution resources and considered the adoption of urgent and interim measures necessary in order not only to maintain the quality and safety of our service but also to satisfy the constant year-on-year increase in demand for electricity following Argentina’s relative economic growth in recent years (especially, from 2012 through 2015).

The negative results mentioned above were mainly caused because by the delay in the performance of certain obligations under the Adjustment Agreement, especially with regard to the implementation of the semi-annual rate adjustments and the completion of the RTI process. In this context, on December 16, 2015, the Macri administration (as defined below) issued Decree No. 134/15, which declared the state of emergency with respect to the national electricity system, authorizing the Ministry of Energy and Mining (the “ME&M”) to implement a nation-wide plan of action for the generation, transmission and distribution of electricity and to take actions to guarantee the supply of the electricity under adequate economic and technical conditions.

As part of the restructuring of the electricity sector, in January 2016, the ME&M issued Resolution No. 6/16 and the Ente Nacional Regulador de la Electricidad (“ENRE”) Resolution No. 1/16, through which approved a new tariff scheme that established the new generation cost and partially adjusted our distribution added value (“VAD”) in order to make investments, carry out maintenance works and expand networks.

In respect of these measures, from May through November 2016, several courts granted provisional remedies (injunctions) ordering the temporary suspension of the resolutions increasing tariffs in the Province of Buenos Aires. In the “Abarca” case, an injunction was issued extending throughout the entire concession area of the Province of Buenos Aires, which was lifted on September 6, 2016, and its economic impact on us was compensated in four installments that were charged to the customers’ invoices as from October 2016. Other provisional remedies were granted with respect to the districts of “Pilar” and “La Matanza”, which remained in effect until October 24 and November 11, 2016, respectively, when they expired. The negative effect related to these provisional remedies was compensated by Compañía Administradora del Mercado Mayorista Eléctrico S.A. (“CAMMESA”) through credit notes as authorized by the ME&M (Note No. 2016-04484723). As of the date of this annual report, no injunction remains in force, and the tariff scheme resulting from the referenced ENRE resolutions was applied to all customers.

The tariff scheme established by Resolution No. 1/16, which improved our gross margin (taking into account that the effects of the provisional remedies were compensated), resulted insufficient to comply with the provision of the public service in a satisfactory manner in terms of quality and safety, mainly because of the increase in operating expenses, particularly as a result of the recalculation of ENRE fines and penalties following the implementation of Note No. 120,151 issued on April 15, 2016 (the “Note”), and the increase in non-technical losses and past due receivables. Thus, within a context of continued increase in the demand for electricity, our economic and financial situation became untenable.

 

3


 
 

 

However, despite the negative operating and net results recorded in 2016, our board of directors is optimistic that the new tariff schedule (set in force by Resolution No. 63/17 of the ENRE) will establish a regulatory framework with clear and precise rules, which will make possible for us not only to cover our operation costs, afford our investment plans and meet debt interest payments, but also to deal with the impact of the different variables that affect our business from time to time.

Our Financial Statements are included in this annual report beginning on page F-1.  The statement of cash flows for the year ended December 31, 2015 has been revised to present the cash inflows related to such agreements within financing activities in the statement of cash flows, instead of operating activities as previously presented. Also, the increase in the balances of the loans with CAMMESA for funds received by the FOCEDE for the year ended December 31, 2015 is now presented as a non-cash transaction in the supplementary disclosures to the statement of cash flows instead of operating activities as previously presented.

This correction to the financial statements impacted only the statement of cash flows, and there was no impact on the statements of financial position, comprehensive income, or equity, or on the basic and diluted (loss) earnings per share.

In accordance with the decision of our board of directors to divest and sell the subsidiary Aeseba as of March 31, 2013 and the subsidiaries Emdersa Holding S.A. (“Emdersa Holdingˮ or “EHSA”), including Emdersa and its subsidiaries, Empresa Distribuidora de San Luis S.A. (“Edesal”), Empresa Distribuidora de La Rioja S.A. (“Edelar”), Empresa Distribuidora de Salta S.A. (“Edesa”) and Emdersa Generación Salta S.A. (“EGSSA”), as of December 31, 2011, we have classified the corresponding assets and liabilities associated to these subsidiaries in the consolidated financial statements as of December 31, 2013, 2012 and 2011 as “Assets of disposal groups classified as held for sale” and “Liabilities of disposal groups classified as held for sale”. As of October 11, 2011, October 25, 2011 and May 10, 2012 the Company sold its direct and indirect stake in EGSSA (subject to a condition precedent related to Emdersa’s spin-off), Edesal and Edesa, respectively. The corresponding charges to results have been included within “Income (Loss) from discontinued operations” line item in our consolidated statements of comprehensive loss for the years ended December 31, 2012 and 2011. As of April 5, 2013, the Company sold its stake in Aeseba. The corresponding charges to results have been included within “Loss from Discontinued operations” line item in our consolidated statements of comprehensive loss for the year ended December 31, 2013.

 

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, 2016 have been translated into U.S. Dollars at the selling exchange rate for U.S. Dollars quoted by Banco de la Nación Argentina (the “Banco Nación”) on December 31, 2016, which was Ps. 15.89 to U.S.$ 1.00, unless otherwise indicated. 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” and “Item 3.  Key Information—Risk Factors—Risks Relating to Argentina—Fluctuations in the value of the Peso could adversely affect the Argentine economy, and, in turn adversely affect our results of operations.”

Certain figures included in this annual report have been subject to rounding adjustments. Accordingly, any discrepancies between the totals and the sums of amounts are due to rounding.

 

4


 
 

 

Statement of comprehensive (loss) income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

2016

 

2015

 

2014

 

2013

 

2012

 

 

US$

 

Ps.

 

Ps.

 

Ps.

 

Ps.

 

Ps.

Continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from sales (1)

 

823.1

 

13,079.6

 

3,802.2

 

3,598.4

 

3,440.7

 

2,976.2

Electric power purchases

 

(381.4)

 

(6,060.3)

 

(2,022.0)

 

(1,878.1)

 

(2,050.3)

 

(1,740.2)

Subtotal

 

441.7

 

7,019.3

 

1,780.2

 

1,720.3

 

1,390.4

 

1,236.0

Transmission and distribution expenses

 

(386.9)

 

(6,147.2)

 

(3,153.7)

 

(2,825.1)

 

(2,055.3)

 

(1,344.1)

Gross income (Loss)

 

54.9

 

872.1

 

(1,373.5)

 

(1,104.8)

 

(664.9)

 

(108.1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling expenses

 

(101.7)

 

(1,616.7)

 

(832.8)

 

(657.9)

 

(548.3)

 

(352.9)

Administrative expenses

 

(73.1)

 

(1,162.3)

 

(706.1)

 

(496.8)

 

(324.8)

 

(249.4)

Other operating income

 

5.5

 

87.2

 

79.2

 

52.4

 

61.6

 

32.3

Other operating expense

 

(29.2)

 

(463.9)

 

(502.5)

 

(318.7)

 

(142.8)

 

(150.3)

Gain from acquisition of companies

 

-

 

-

 

-

 

-

 

-

 

-

Income from non-reimbursable customer
contributions

 

0.0

 

0.8

 

0.8

 

0.8

 

0.7

 

-

Operating (loss) profit before SE Resolution 250/13 and subsequent Notes

 

(143.7)

 

(2,283.0)

 

(3,334.9)

 

(2,525.0)

 

(1,618.5)

 

(828.4)

Recognition of income – provisional remedies – MEyM Note 2016-04484723

 

70.8

 

1,125.6

 

-

 

-

 

-

 

-

Income recognition on account of the RTI - SE Resolution 32/15

 

26.4

 

419.7

 

5,025.1

 

-

 

-

 

-

Higher costs recognition - SE Resolution 250/13 and subsequents Notes

 

5.1

 

81.5

 

551.5

 

2,271.9

 

2,933.1

 

-

Operating (loss) profit

 

(41.3)

 

(656.1)

 

2,241.7

 

(253.1)

 

1,314.6

 

(828.4)

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial income

 

12.4

 

196.8

 

96.2

 

235.5

 

287.1

 

75.5

Financial expenses (2)

 

(90.9)

 

(1,444.9)

 

(450.0)

 

(592.0)

 

(504.9)

 

(226.0)

Other financial expense

 

(1.7)

 

(27.5)

 

(561.7)

 

(324.5)

 

(273.1)

 

(168.1)

Net financial (expense)

 

(80.3)

 

(1,275.6)

 

(915.5)

 

(681.0)

 

(490.9)

 

(318.6)

(Loss) profit before taxes

 

(121.6)

 

(1,931.7)

 

1,326.2

 

(934.1)

 

823.7

 

(1,147.0)

 

 

-

 

 

 

 

 

 

 

 

 

 

Income tax

 

46.8

 

743.1

 

(183.8)

 

154.4

 

44.1

 

116.7

(Loss) profit for the year from continuing operations

 

(74.8)

 

(1,188.7)

 

1,142.4

 

(779.7)

 

867.8

 

(1,030.3)

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations

 

-

 

-

 

-

 

-

 

(95.1)

 

16.9

(Loss) profit for the year

 

(74.8)

 

(1,188.7)

 

1,142.4

 

(779.7)

 

772.7

 

(1,013.4)

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) profit for the year attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

Owners of the Company

 

(74.8)

 

(1,188.7)

 

1,142.4

 

(779.7)

 

771.7

 

(1,016.5)

Non-controlling interests

 

-

 

-

 

-

 

-

 

1.0

 

3.1

(Loss) profit for the year

 

(74.8)

 

(1,188.7)

 

1,142.4

 

(779.7)

 

772.7

 

(1,013.4)

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) profit for the year attributable to the owners of the parent

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

(74.8)

 

(1,188.7)

 

1,142.4

 

(779.7)

 

867.9

 

(1,030.3)

Discontinued operations

 

-

 

-

 

-

 

-

 

(96.2)

 

13.8

 

 

(74.8)

 

(1,188.7)

 

1,142.4

 

(779.7)

 

771.7

 

(1,016.5)

 

 

5


 
 

 

Statement of comprehensive (loss) income * (continued)

 

 

2016

 

2016

 

2015

 

2014

 

2013

 

2012

 

 

US$

 

Ps.

 

Ps.

 

Ps.

 

Ps.

 

Ps.

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

Items that will not be reclassified to profit or loss

 

 

 

 

 

 

 

 

 

 

 

 

Results related to benefit plans

 

0.5

 

7.8

 

(3.7)

 

(17.8)

 

(21.0)

 

7.9

Tax effect of actuarial (losses) income on benefit plans

 

(0.2)

 

(2.7)

 

1.3

 

6.2

 

7.4

 

(2.8)

Total other comprehensive loss from discontinued operations

 

-

 

-

 

-

 

-

 

-

 

(2.1)

Total other comprehensive income (loss)

 

0.3

 

5.1

 

(2.4)

 

(11.6)

 

(13.6)

 

3.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income for the year attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

Owners of the parent

 

(74.5)

 

(1,183.6)

 

1,140.0

 

(791.3)

 

758.1

 

(1,013.2)

Non-controlling interests

 

-

 

-

 

-

 

-

 

1.0

 

2.8

Comprehensive (loss) income for the year

 

(74.5)

 

(1,183.6)

 

1,140.0

 

(791.3)

 

759.1

 

(1,010.4)

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) profit for the year attributable to the owners of the parent

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

(74.5)

 

(1,183.6)

 

1,140.0

 

(791.3)

 

757.1

 

(1,025.1)

Discontinued operations

 

 

 

-

 

-

 

-

 

1.0

 

11.9

 

 

(74.5)

 

(1,183.6)

 

1,140.0

 

(791.3)

 

758.1

 

(1,013.2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted (loss) earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted (loss) earnings per share from continuing operations

 

(0.08)

 

(1.33)

 

1.27

 

(0.87)

 

0.97

 

(1.15)

Basic and diluted (loss) earnings per share from discontinued operations

 

-

 

-

 

-

 

-

 

(0.11)

 

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted (loss) earnings per ADS (3):

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted (loss) earnings per ADS from continuing operations

 

(1.67)

 

(26.60)

 

25.40

 

(17.40)

 

19.40

 

(23.00)

Basic and diluted (loss) earnings per ADS from discontinued operations

 

-

 

-

 

-

 

-

 

(2.20)

 

0.40

 

(*)      Certain amounts of the presented financial data for comparative purposes (2013 and 2012) have been reclassified (with regard to the financial statements as of such dates) following the disclosure criteria used for the financial statements as of December 31, 2016, mainly due to discontinued operations.

(1)     Revenue from operations is recognized on an accrual basis and derives mainly from electricity distribution. Such revenue includes electricity supplied, whether billed or unbilled, at the end of each year, and has been valued on the basis of applicable tariffs and the charges determined by the Resolution No. 347/12.

(2)     Net of interest capitalized at December 31, 2016, 2015, 2014, 2013 and 2012 for Ps. 189.7 million,  Ps. 255.9 million, Ps. 123.9 million, Ps. 24.5 million and Ps. 25.4 million, respectively.

(3)     Each ADS represents 20 Class B common shares.

 

 

 

 

6


 
 

 

Statement of financial position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

2016

 

2015

 

2014

 

2013

 

2012

 

 

US$

 

Ps.

 

Ps.

 

Ps.

 

Ps.

 

Ps.

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment

 

704.7

 

11,197.0

 

8,885.8

 

6,652.5

 

5,189.3

 

4,344.6

Intangible assets

 

-

 

-

 

-

 

-

 

-

 

845.8

Interest in joint ventures

 

0.0

 

0.4

 

0.4

 

0.4

 

0.4

 

0.4

Deferred tax asset

 

64.1

 

1,019.0

 

50.0

 

87.2

 

-

 

-

Other receivables

 

3.2

 

50.5

 

153.8

 

249.2

 

199.4

 

195.0

Trade receivables

 

-

 

-

 

-

 

-

 

-

 

2.0

Financial assets at amortized cost

 

2.8

 

44.4

 

-

 

-

 

-

 

-

Financial assets at fair value through profit or loss

 

-

 

-

 

23.6

 

-

 

-

 

-

Total non-current assets

 

774.8

 

12,311.4

 

9,113.6

 

6,989.3

 

5,389.1

 

5,387.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

Assets under construction

 

-

 

-

 

-

 

-

 

-

 

84.5

Inventories

 

18.1

 

287.8

 

134.9

 

74.0

 

83.9

 

85.0

Other receivables

 

11.3

 

179.3

 

1,079.8

 

250.3

 

522.1

 

127.2

Trade receivables

 

245.5

 

3,901.1

 

963.0

 

882.9

 

803.1

 

889.4

Financial assets at fair value through profit or loss

 

125.5

 

1,993.9

 

1,560.4

 

254.4

 

216.4

 

3.4

Financial assets at amortized cost

 

0.1

 

1.5

 

-

 

-

 

-

 

-

Derivative financial instruments

 

-

 

-

 

0.2

 

-

 

-

 

-

Cash and cash equivalents

 

16.3

 

258.6

 

129.0

 

179.1

 

243.5

 

71.1

Total current assets

 

416.8

 

6,622.2

 

3,867.3

 

1,640.7

 

1,869.0

 

1,260.6

Assets of disposal group classified as held for sale

 

-

 

 

 

-

 

-

 

-

 

223.4

TOTAL ASSETS

 

1,191.5

 

18,933.5

 

12,980.9

 

8,630.0

 

7,258.1

 

6,871.8

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Capital and reserves attributable to the owners

 

 

 

 

 

 

 

 

 

 

 

 

Share capital

 

56.5

 

897.0

 

897.0

 

897.0

 

897.0

 

897.0

Adjustment to share capital

 

25.0

 

397.7

 

397.7

 

397.7

 

397.7

 

397.7

Additional paid-in capital

 

0.2

 

3.5

 

3.5

 

3.5

 

3.5

 

3.5

Treasury stock

 

0.6

 

9.4

 

9.4

 

9.4

 

9.4

 

9.4

Adjustment to treasury stock

 

0.7

 

10.3

 

10.3

 

10.3

 

10.3

 

10.3

Legal reserve

 

4.6

 

73.3

 

-

 

-

 

-

 

-

Opcional reserve

 

11.1

 

176.1

 

-

 

-

 

-

 

-

Other reserve

 

1.3

 

20.3

 

-

 

-

 

-

 

-

Other comprehensive (loss) income

 

(2.3)

 

(37.2)

 

(42.3)

 

(39.9)

 

(28.3)

 

(14.6)

Accumulated deficit

 

(74.8)

 

(1,188.6)

 

249.4

 

(893.0)

 

(113.3)

 

(885.1)

Equity attributable to the owners

 

22.8

 

361.8

 

1,525.0

 

385.0

 

1,176.3

 

418.2

Non-controlling interest

 

-

 

-

 

-

 

-

 

-

 

71.1

TOTAL EQUITY

 

22.8

 

361.8

 

1,525.0

 

385.0

 

1,176.3

 

489.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Trade payables

 

14.7

 

232.9

 

225.0

 

231.1

 

220.8

 

155.3

Other payables (1)

 

321.2

 

5,103.3

 

2,391.9

 

1,644.6

 

944.7

 

1,894.8

Borrowings

 

174.3

 

2,769.6

 

2,461.0

 

1,598.4

 

1,309.9

 

1,350.7

Deferred revenue

 

12.6

 

200.0

 

153.8

 

109.1

 

33.7

 

264.4

Salaries and social security taxes payable

 

5.9

 

94.3

 

80.0

 

62.9

 

26.0

 

17.5

Benefit plans

 

16.7

 

266.1

 

204.4

 

150.4

 

102.7

 

97.4

Deferred tax liability

 

-

 

-

 

-

 

-

 

73.4

 

230.4

Tax liabilities

 

0.0

 

0.7

 

1.9

 

3.2

 

4.4

 

10.0

Provisions

 

21.5

 

341.4

 

259.6

 

112.1

 

83.1

 

80.0

Total non-current liabilities

 

566.9

 

9,008.3

 

5,777.6

 

3,911.8

 

2,798.7

 

4,100.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Trade payables

 

429.3

 

6,821.1

 

4,475.4

 

3,299.6

 

2,481.2

 

1,208.5

Other payables (1)

 

8.5

 

134.8

 

151.7

 

187.1

 

147.2

 

150.4

Borrowings

 

3.4

 

53.7

 

48.8

 

34.0

 

40.6

 

103.1

Derivative financial instruments

 

-

 

-

 

-

 

5.9

 

-

 

-

Deferred revenue

 

0.0

 

0.8

 

0.8

 

0.8

 

-

 

-

Salaries and social security taxes payable

 

65.0

 

1,032.2

 

733.1

 

610.6

 

420.9

 

383.6

Benefit plans

 

2.1

 

33.4

 

28.3

 

10.6

 

-

 

15.0

Tax payable

 

9.8

 

155.2

 

16.3

 

-

 

-

 

-

Tax liabilities

 

78.3

 

1,244.5

 

153.4

 

160.5

 

182.5

 

253.6

Provisions

 

5.5

 

87.9

 

70.5

 

24.1

 

10.7

 

10.5

Total current liabilities

 

601.9

 

9,563.4

 

5,678.3

 

4,333.2

 

3,283.1

 

2,124.7

Liabilities of disposal group classified as held for sale

 

-

 

-

 

-

 

-

 

-

 

157.3

TOTAL LIABILITIES

 

1,168.8

 

18,571.7

 

11,455.9

 

8,245.0

 

6,081.8

 

6,382.5

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

1,191.5

 

18,933.5

 

12,980.9

 

8,630.0

 

7,258.1

 

6,871.8

 

(1)       Includes the amounts collected through the Program for the Rational Use of Electricity Power (PUREE). As of December, 31, 2014 and 2013  net of Ps. 2,235.1 million and Ps. 1,661.1 million, respectively, compensated pursuant to Resolution No. 250/2013 and Notes 6852/2013, 4012/14, 486/14 and 1136/14, which as of December 31, 2014, 2013 and 2012 amounted to Ps. 17.5 million, Ps. 108.6 million and Ps. 1,352 million, respectively, included under current and non-current liabilities. Edenor is permitted to retain funds from the PUREE that it would otherwise be required to transfer to CAMMESA according to Resolution No. 1,037/07 of the SE. Since the issuance of Resolution No. 32/15, the PUREE funds are considered part of Edenor’s income on account of the future RTI.

 

 

 

7


 
 

 

 

Statement of Cash flows

Cash flow

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

2016

 

2015

 

2014

 

2013

 

2012