UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of
August
, 2018
EMPRESA DISTRIBUIDORA Y COMERCIALIZADORA NORTE S.A. (EDENOR)
(DISTRIBUTION AND MARKETING COMPANY OF THE NORTH )
(Translation of Registrant's Name Into English)
Argentina
(Jurisdiction of incorporation or organization)
Av. del Libertador 6363,
12th Floor,
City of Buenos Aires (A1428ARG),
Tel: 54-11-4346-5000
(Address of principal executive offices)
(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 whether the registrant by furnishing the information contained in this form 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): 82-
.)
CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 AND FOR THE
SIX AND THREE-MONTH PERIOD ENDED JUNE 30, 2018
PRESENTED IN COMPARATIVE FORM
(Stated in thousands of pesos)
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
Legal Information
|
1
|
|
Condensed Interim Statement of Financial Position
|
2
|
|
Condensed Interim Statement of Comprehensive Income
|
4
|
|
Condensed Interim Statement of Changes in Equity
|
5
|
|
Condensed Interim Statement of Cash Flows
|
6
|
|
|
|
Notes to the Condensed Interim Financial Statements:
|
|
1 |
|
General information
|
8
|
|
2 |
|
Regulatory framework
|
8
|
|
3 |
|
Basis of preparation
|
9
|
|
4 |
|
Accounting policies
|
10
|
|
5 |
|
Financial risk management
|
11
|
|
6 |
|
Critical accounting estimates and judgments
|
13
|
|
7 |
|
Contingencies and lawsuits
|
14
|
|
8 |
|
Property, plant and equipment
|
15
|
|
9 |
|
Other receivables
|
17
|
|
10 |
|
Trade receivables
|
17
|
|
11 |
|
Financial assets at fair value through profit or loss
|
18
|
|
12 |
|
Financial assets at amortized cost
|
18
|
|
13 |
|
Cash and cash equivalents
|
18
|
|
14 |
|
Share capital and additional paid-in capital
|
18
|
|
15 |
|
Allocation of profits
|
19
|
|
16 |
|
The Company’s Share-based Compensation Plan
|
19
|
|
17 |
|
Trade payables
|
19
|
|
18 |
|
Other payables
|
20
|
|
19 |
|
Borrowings
|
20
|
|
20 |
|
Salaries and social security taxes payable
|
21
|
|
21 |
|
Income tax and tax on minimum presumed income / Deferred tax
|
21
|
|
22 |
|
Tax liabilities
|
22
|
|
23 |
|
Provisions
|
23
|
|
24 |
|
Revenue from sales
|
23
|
|
25 |
|
Expenses by nature
|
24
|
|
26 |
|
Other operating expense, net
|
25
|
|
27 |
|
Net financial expense
|
25
|
|
28 |
|
Basic and diluted earnings per share
|
26
|
|
29 |
|
Related-party transactions
|
26
|
|
30 |
|
Events after the reporting period
|
28
|
|
|
|
|
|
|
|
|
Report on review of Condensed Interim Financial Statements
Supervisory Committee’s Report
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
Glossary of Terms
The following definitions, which are not technical ones, will help readers understand some of the terms used in the text of the notes to the Company’s Condensed Interim Financial Statements.
Terms
|
|
Definitions
|
BNA
|
|
Bank of the Argentine Nation
|
CAMMESA
|
|
Compañía Administradora del Mercado Mayorista Eléctrico
(the company in charge of the regulation and operation of the wholesale electricity market)
|
IFRIC
|
|
International Financial Reporting Interpretations Committee
|
CNV
|
|
National Securities Commission
|
CPD
|
|
Company’s own distribution costs
|
CTLL
|
|
Central Térmica Loma de la Lata S.A.
|
EASA
|
|
Electricidad Argentina S.A.
|
Edenor S.A
|
|
Empresa Distribuidora y Comercializadora Norte S.A.
|
Edesur S.A
|
|
Empresa Distribuidora Sur S.A.
|
ENRE
|
|
National Regulatory Authority for the Distribution of Electricity
|
FOCEDE
|
|
Fund for Electric Power Distribution Expansion and Consolidation Works
|
ICBC
|
|
Industrial and Commercial Bank of China
|
IAS
|
|
International Accounting Standards
|
IASB
|
|
Accounting Standards Board
|
IEASA
|
|
IEASA S.A.
|
MINEM
|
|
Energy and Mining Ministry
|
OSV
|
|
Orígenes Seguros de Vida S.A.
|
PEN
|
|
Federal Government
|
PESA
|
|
Pampa Energía S.A.
|
PYSSA
|
|
Préstamos y Servicios S.A.
|
RTI
|
|
Tariff Structure Review
|
SACME
|
|
S.A. Centro de Movimiento de Energía
|
SEGBA
|
|
Servicios Eléctricos del Gran Buenos Aires S.A.
|
VAD
|
|
Distribution Added Value
|
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
Legal Information
Corporate name:
Empresa Distribuidora y Comercializadora Norte S.A.
Legal address:
6363 Del Libertador Ave., City of Buenos Aires
Main business:
Distribution and sale of electricity in the area and under the terms of the Concession Agreement by which this public service is regulated.
Date of registration with the Public Registry of Commerce
:
-
of the Articles of Incorporation: August 3, 1992
-
of the last amendment to the By-laws: May 28, 2007
Term of the Corporation
:
August
3, 2087
Registration number with the “Inspección General de Justicia” (the Argentine governmental regulatory agency of corporations)
:
1,559,940
Parent company:
EASA – See Note 43 to the Financial Statements as of December 31, 2017
Legal address:
1 Maipú Street, City of Buenos Aires
Main business of the parent company:
Investment in Edenor S.A.’s Class “A” shares and rendering of technical advisory, management, sales, technology transfer and other services related to the distribution of electricity.
Interest held by the parent company in capital stock and votes:
51.44%
CAPITAL STRUCTURE
AS OF JUNE 30, 2018
(amounts stated in pesos)
Class of shares
|
|
Subscribed and paid-in
(See Note 14)
|
Common, book-entry shares, face value 1 and 1 vote per share
|
|
|
Class A
|
|
462,292,111
|
Class B (1)
|
|
442,210,385
|
Class C (2)
|
|
1,952,604
|
|
|
906,455,100
|
(1)
Includes 20,439,747 and 7,794,168 treasury shares as of June 30, 2018 and December 31, 2017, respectively.
(2)
Relates to the Employee Stock Ownership Program Class C shares that have not been transferred.
1
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
Edenor S.A.
Condensed Interim Statement of Financial Position
as of June 30, 2018 presented in comparative form
(Stated in thousands of pesos)
|
Note
|
|
06.30.18
|
|
12.31.17
|
ASSETS
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
Property, plant and equipment
|
8
|
|
16,850,632
|
|
14,812,021
|
Interest in joint ventures
|
|
|
432
|
|
424
|
Deferred tax asset
|
21
|
|
1,588,231
|
|
1,187,021
|
Other receivables
|
9
|
|
38,557
|
|
42,447
|
Total non-current assets
|
|
|
18,477,852
|
|
16,041,913
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Inventories
|
|
|
614,034
|
|
391,904
|
Other receivables
|
9
|
|
163,600
|
|
200,617
|
Trade receivables
|
10
|
|
7,462,541
|
|
5,678,857
|
Financial assets at fair value through profit or loss
|
11
|
|
4,710,204
|
|
2,897,258
|
Financial assets at amortized cost
|
12
|
|
511,444
|
|
11,498
|
Cash and cash equivalents
|
13
|
|
745,395
|
|
82,860
|
Total current assets
|
|
|
14,207,218
|
|
9,262,994
|
TOTAL ASSETS
|
|
|
32,685,070
|
|
25,304,907
|
2
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
Edenor S.A.
Condensed Interim Statement of Financial Position
as of June 30, 2018 presented in comparative form
(continued)
(Stated in thousands of pesos)
|
Note
|
|
06.30.18
|
|
12.31.17
|
EQUITY
|
|
|
|
|
|
Share capital and reserve attributable to the owners of the Company
|
|
|
|
|
|
Share capital
|
14
|
|
886,015
|
|
898,661
|
Adjustment to share capital
|
14
|
|
394,145
|
|
399,495
|
Additional paid-in capital
|
14
|
|
39,294
|
|
31,565
|
Treasury stock
|
14
|
|
20,440
|
|
7,794
|
Adjustment to treasury stock
|
14
|
|
13,918
|
|
8,568
|
Cost of acquisition of own shares
|
14
|
|
(727,990)
|
|
-
|
Legal reserve
|
|
|
73,275
|
|
73,275
|
Opcional reserve
|
|
|
176,061
|
|
176,061
|
Other comprehensive loss
|
|
|
(28,097)
|
|
(28,097)
|
Accumulated profit
|
|
|
686,595
|
|
(506,458)
|
TOTAL EQUITY
|
|
|
1,533,656
|
|
1,060,864
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
Trade payables
|
17
|
|
268,639
|
|
240,900
|
Other payables
|
18
|
|
6,461,233
|
|
6,034,228
|
Borrowings
|
19
|
|
6,491,600
|
|
4,191,666
|
Deferred revenue
|
|
|
263,684
|
|
194,629
|
Salaries and social security payable
|
20
|
|
136,173
|
|
119,655
|
Benefit plans
|
|
|
354,379
|
|
323,564
|
Provisions
|
23
|
|
804,540
|
|
598,087
|
Total non-current liabilities
|
|
|
14,780,248
|
|
11,702,729
|
Current liabilities
|
|
|
|
|
|
Trade payables
|
17
|
|
12,234,589
|
|
9,195,303
|
Other payables
|
18
|
|
845,764
|
|
370,395
|
Borrowings
|
19
|
|
104,195
|
|
71,205
|
Derivative financial instruments
|
|
|
-
|
|
197
|
Deferred revenue
|
|
|
4,468
|
|
3,360
|
Salaries and social security payable
|
20
|
|
974,100
|
|
1,220,051
|
Benefit plans
|
|
|
31,407
|
|
31,407
|
Income tax payable, net
|
21
|
|
1,010,954
|
|
466,683
|
Tax liabilities
|
22
|
|
1,014,988
|
|
1,053,455
|
Provisions
|
23
|
|
150,701
|
|
129,258
|
Total current liabilities
|
|
|
16,371,166
|
|
12,541,314
|
TOTAL LIABILITIES
|
|
|
31,151,414
|
|
24,244,043
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY
|
|
|
32,685,070
|
|
25,304,907
|
The accompanying notes are an integral part of the Condensed Interim Financial Statements.
3
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
Edenor S.A.
Condensed Interim Statement of Comprehensive Income
for the six and three
-month
period ended June 30, 2018
presented in comparative form
(Stated in thousands of pesos)
|
|
|
Six months at
|
|
three months at
|
|
Note
|
|
06.30.18
|
|
06.30.17
|
|
06.30.18
|
|
06.30.17
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
24
|
|
21,265,937
|
|
11,118,263
|
|
10,254,579
|
|
5,751,628
|
Electric power purchases
|
|
|
(11,312,206)
|
|
(5,810,539)
|
|
(5,786,911)
|
|
(3,276,958)
|
Subtotal
|
|
|
9,953,731
|
|
5,307,724
|
|
4,467,668
|
|
2,474,670
|
Transmission and distribution expenses
|
25
|
|
(3,325,509)
|
|
(2,265,295)
|
|
(1,766,388)
|
|
(1,217,446)
|
Gross gain
|
|
|
6,628,222
|
|
3,042,429
|
|
2,701,280
|
|
1,257,224
|
|
|
|
|
|
|
|
|
|
|
Selling expenses
|
25
|
|
(1,465,931)
|
|
(1,018,971)
|
|
(747,784)
|
|
(520,342)
|
Administrative expenses
|
25
|
|
(888,106)
|
|
(637,003)
|
|
(476,634)
|
|
(307,622)
|
Other operating expense, net
|
26
|
|
(416,351)
|
|
(271,068)
|
|
(208,721)
|
|
(130,509)
|
Loss / Gain from interest in joint ventures
|
|
|
8
|
|
12
|
|
8
|
|
12
|
Operating profit
|
|
|
3,857,842
|
|
1,115,399
|
|
1,268,149
|
|
298,763
|
|
|
|
|
|
|
|
|
|
|
Financial income
|
27
|
|
209,105
|
|
118,426
|
|
117,270
|
|
58,982
|
Financial expenses
|
27
|
|
(1,048,159)
|
|
(718,819)
|
|
(562,275)
|
|
(370,333)
|
Other financial results
|
27
|
|
(1,202,415)
|
|
12,874
|
|
(1,066,025)
|
|
(116,024)
|
Net financial expense
|
|
|
(2,041,469)
|
|
(587,519)
|
|
(1,511,030)
|
|
(427,375)
|
Profit before taxes
|
|
|
1,816,373
|
|
527,880
|
|
(242,881)
|
|
(128,612)
|
|
|
|
|
|
|
|
|
|
|
Income tax
|
21
|
|
(563,139)
|
|
(159,106)
|
|
45,297
|
|
76,003
|
Profit for the period
|
|
|
1,253,234
|
|
368,774
|
|
(197,584)
|
|
(52,609)
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings profit per share:
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings profit per share
|
28
|
|
1.40
|
|
0.41
|
|
0.03
|
|
0.72
|
The accompanying notes are an integral part of the Condensed Interim Financial Statements.
4
CONDENSED INTERIM
FINANCIAL
STATEMENTS
|
Edenor
S.A.
Condensed Interim Statement of
Changes in Equity
for
the six-month period ended June 30, 2018
presented in comparative form
(Stated in thousands of pesos)
Adjustment to share capital
|
|
Treasury stock
|
|
Adjust- ment to
treasury stock
|
|
Additional paid-in capital
|
|
Cost of acquisition of own shares
|
|
Legal reserve
|
|
Opcional reserve
|
|
Other reserve
|
|
Other comprehesive
loss
|
|
Accumulated income (deficit)
|
|
Total
equity
|
397,716
|
|
9,412
|
|
10,347
|
|
3,452
|
|
-
|
|
73,275
|
|
176,061
|
|
20,346
|
|
(37,172)
|
|
(1,188,648)
|
|
361,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
7,767
|
|
-
|
|
-
|
|
7,767
|
1,779
|
|
(1,618)
|
|
(1,779)
|
|
28,113
|
|
-
|
|
-
|
|
-
|
|
(28,113)
|
|
-
|
|
-
|
|
-
|
-
|
|
-
|
|
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
-
|
|
368,774
|
|
368,774
|
399,495
|
|
7,794
|
|
8,568
|
|
31,565
|
|
-
|
|
73,275
|
|
176,061
|
|
-
|
|
(37,172)
|
|
(819,874)
|
|
738,373
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
313,416
|
|
313,416
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
9,075
|
|
-
|
|
9,075
|
399,495
|
|
7,794
|
|
8,568
|
|
31,565
|
|
-
|
|
73,275
|
|
176,061
|
|
-
|
|
(28,097)
|
|
(506,458)
|
|
1,060,864
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
7,729
|
|
-
|
|
-
|
|
7,729
|
299
|
|
(272)
|
|
(299)
|
|
7,729
|
|
-
|
|
-
|
|
|
|
(7,729)
|
|
-
|
|
-
|
|
-
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(60,181)
|
|
(60,181)
|
(5,649)
|
|
12,918
|
|
5,649
|
|
-
|
|
(727,990)
|
|
-
|
|
|
|
-
|
|
-
|
|
-
|
|
(727,990)
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,253,234
|
|
1,253,234
|
394,145
|
|
20,440
|
|
13,918
|
|
39,294
|
|
(727,990)
|
|
73,275
|
|
176,061
|
|
-
|
|
(28,097)
|
|
686,595
|
|
1,533,656
|
The accompanying notes are an integral part of the
Condensed Interim Financial Statements.
|
|
Vease nuestro informe de
fecha
9 de agosto de 2017
PRICE
WATERHOUSE & CO. S.R.L.
|
|
|
|
|
(Socio)
|
|
|
DANIEL
ABELOVICH
por Comisión
Fiscalizadora
|
|
C.P.C.E.C.A.B.A.
Tº 1 Fº 17
|
|
RICARDO
TORRES
Presidente
|
5
CONDENSED INTERIM
FINANCIAL
STATEMENTS
|
Edenor
S.A.
Condensed Interim Statement of
Cash Flows
for
the six-month period ended June 30, 2018
presented in comparative form
(Stated in thousands of pesos)
|
Note
|
|
06.30.18
|
|
06.30.17
|
Cash flows from operating
activities
|
|
|
|
|
|
Profit
for the period
|
|
|
1,253,234
|
|
368,774
|
|
|
|
|
|
|
Adjustments to reconcile net (loss) profit to net
cash flows from operating activities:
|
|
|
|
|
|
Depreciation of property, plants and
equipments
|
8 & 25
|
|
263,689
|
|
199,942
|
Loss on
disposals of property, plants and equipments
|
26
|
|
13,459
|
|
4,944
|
Net
accrued interest
|
27
|
|
838,556
|
|
599,545
|
Exchange difference
|
27
|
|
1,437,433
|
|
114,204
|
Income
tax
|
21
|
|
563,139
|
|
159,106
|
Allowance for the impairment of trade and other
receivables, net of recovery
|
25
|
|
334,979
|
|
124,387
|
Adjustment to present value of
receivables
|
27
|
|
115
|
|
147
|
Provision for contingencies
|
26
|
|
253,382
|
|
99,731
|
Changes
in fair value of financial assets
|
27
|
|
(256,629)
|
|
(137,434)
|
Accrual
of benefit plans
|
|
|
75,141
|
|
50,339
|
Gain
from interest in joint ventures
|
|
|
(8)
|
|
(12)
|
Net
gain from the repurchase of Corporate Bonds
|
27
|
|
511
|
|
-
|
Income
from non-reimbursable customer contributions
|
26
|
|
(2,049)
|
|
(501)
|
Other reserve constitution - Share bases
compensation plan
|
16
|
|
7,729
|
|
7,767
|
Changes
in operating assets and liabilities:
|
|
|
|
|
|
Increase in trade receivables
|
|
|
(1,930,644)
|
|
(842,361)
|
(Increase) Decrease in other receivables
|
|
|
(12,576)
|
|
5,571
|
(Increase) Decrease in inventories
|
|
|
(222,130)
|
|
4,478
|
Increase in deferred revenue
|
|
|
72,212
|
|
-
|
Increase in trade payables
|
|
|
2,437,911
|
|
617,280
|
Decrease in salaries and social security
payable
|
|
|
(229,433)
|
|
(190,808)
|
Decrease in benefit plans
|
|
|
(44,327)
|
|
(11,181)
|
Decrease in tax liabilities
|
|
|
(113,107)
|
|
(264,145)
|
Increase in other payables
|
|
|
564,739
|
|
241,751
|
Decrease in provisions
|
23
|
|
(25,486)
|
|
(21,115)
|
Payment of Tax payable
|
|
|
(338,771)
|
|
-
|
Net cash flows generated by operating
activities
|
|
|
4,941,069
|
|
1,130,409
|
6
CONDENSED INTERIM
FINANCIAL
STATEMENTS
|
Edenor
S.A.
Condensed Interim Statement of
Cash Flows
for
the six-month period ended June 30, 2018
presented in comparative form
(continued)
(Stated in thousands of pesos)
|
Note
|
|
06.30.18
|
|
06.30.17
|
Cash flows from investing
activities
|
|
|
|
|
|
Payment of property, plants and equipments
|
|
|
(2,255,256)
|
|
(1,616,321)
|
Collection of Financial assets
|
|
|
12,536,368
|
|
578,954
|
Payments of Financial assets
|
|
|
(13,742,535)
|
|
(751,615)
|
Redemtion net of money market funds
|
|
162,537
|
|
722,500
|
Mutuum granted to third parties
|
|
|
(71,964)
|
|
-
|
Collection of receivables from sale of
subsidiaries
|
|
|
6,320
|
|
32,942
|
Collection of mutuals granted to third
parties
|
|
|
3,092
|
|
-
|
Net cash flows used in investing
activities
|
|
|
(3,361,438)
|
|
(1,033,540)
|
|
|
|
|
|
|
Cash flows from financing
activities
|
|
|
|
|
|
Proceeds from borrowings
|
|
|
(196,008)
|
|
(132,940)
|
Repurchase of corporate notes
|
|
|
(12,556)
|
|
-
|
Payment of redemption on corporate
notes
|
|
|
(727,990)
|
|
-
|
Net cash flows generated by (used in) financing
activities
|
|
|
(936,554)
|
|
(132,940)
|
|
|
|
|
|
|
Increase (Decrease) in cash and cash
equivalents
|
|
|
643,077
|
|
(36,071)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the beginning of year
|
13
|
|
82,860
|
|
258,562
|
Exchange differences in cash and cash
equivalents
|
|
|
19,458
|
|
(2,072)
|
Increase (Decrease) in cash and cash
equivalents
|
|
|
643,077
|
|
(183,771)
|
Cash and cash equivalents at the end of the
period
|
13
|
|
745,395
|
|
72,719
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash flows
information
|
|
|
|
|
|
Non-cash activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial costs capitalized in property, plants and
equipments
|
8 & 25
|
|
(232,756)
|
|
(125,898)
|
|
|
|
|
|
.
|
Acquisitions of property, plant and equipment
through increased trade payables
|
|
|
(224,404)
|
|
(199,290)
|
The
accompanying notes are an integral part of the Condensed Interim Financial
Statements.
7
CONDENSED INTERIM
FINANCIAL
STATEMENTS
NOTES
|
Note 1 |
General information
History and development of the Company
Edenor S.A. was organized on July 21, 1992 by Executive
Order No. 714/92 in connection with the privatization and concession process of
the distribution and sale of electric power carried out by SEGBA.
By
means of an International Public Bidding, the PEN awarded 51% of the Company’s
capital stock, represented by the Class "A" shares, to the bid made by EASA, the
parent company of Edenor S.A. The award as well as the transfer contract were
approved on August 24, 1992 by Executive Order No. 1,507/92 of the
PEN.
On
September 1, 1992, EASA took over the operations of Edenor S.A.
The corporate purpose of Edenor S.A. is to engage in the
distribution and sale of electricity within the concession area. Furthermore,
among other activities, the Company may subscribe or acquire shares of other
electricity distribution companies, subject to the approval of the regulatory
agency, assign the use of the network to provide electricity transmission or
other voice, data and image transmission services, and render advisory,
training, maintenance, consulting, and management services and know-how related
to the distribution of electricity both in Argentina and abroad. These
activities may be conducted directly by Edenor S.A. or through subsidiaries or
related companies. In addition, the Company may act as trustee of trusts created
under Argentine laws.
Note 2 |
Regulatory framework
At
the date of issuance of these condensed interim financial statements, the
changes with respect to the situation reported by the Company as of December 31,
2017 are the following:
a)
Electricity rate situation
On
January 31, 2018, the ENRE issued Resolution No. 33/18, whereby it approves the
CPD values, the values of the monthly installment to be applied in accordance
with the provisions of ENRE Resolution No. 329/17, and the values of the
Company’s electricity rate schedule applicable to consumption recorded as from
February 1, 2018. Additionally, it is informed that the average electricity rate
value amounts to $2.4627/kwh.
At
the date of issuance of these condensed interim financial statements, the amount
accrued for the monthly installment to be applied in accordance with the
provisions of ENRE Resolution No. 33/18, amounts to $ 697.3 million, which is
included in the “Revenue from sales – Sales of electricity” line
item.
On
July 31, 2018, the ENRE published Resolution No. 208/18, whereby it approves the
new electricity rate schedule to be applied as from August 1, 2018.
In
that regard, 50% of the inflation-related adjustment of the CPD, provided for in
the Concession Agreement, relating to the February-August 2018 six-month period,
will be deferred and applied in six (6) monthly and consecutive installments as
from February 1, 2019, which will neither imply a negative economic impact for
the Company nor affect the service quality parameters resulting from the RTI of
February 1, 2017.
Furthermore, and in relation to the effects generated by
the non-compliance with the Adjustment Agreement (Note 1 to the Financial
Statements as of December 31, 2017), on July 30, 2018, the MINEM agreed to
implement the administrative actions necessary to settle the pending obligations
of the Transition Period.
8
CONDENSED INTERIM
FINANCIAL
STATEMENTS
NOTES
|
b)
Penalties
Due to the occurrence of an extraordinary situation that
affected the provision of the service, covered by item 3.3 of Sub-appendix 4 to
the Concession Agreement (more than 70,000 daily consumers affected in certain
periods), on April 23, 2018, the ENRE issued Resolution No. 118 pursuant to
which the Company is instructed to calculate and pay a compensation to
small-demand residential customers (residential Tariff 1 Consumers) for each
interruption higher than or equal to 20 hours suffered during said periods. The
impacts of these compensation amounts were quantified by the Company in $ 87
million and recognized as of June 30, 2018.
Furthermore, on May 31, 2018, by means of ENRE Resolution
No. 170/18, the penalty system for deviations from the Annual and Quinquennial
Investment Plan is approved. The amounts resulting from the application of these
penalties will be allocated to consumers.
On
July 17, 2018, the ENRE, by means of Resolution No. 198/18, provides that, as
from September 2018, the Company will be required to assess service provision
interruptions/problems suffered by consumers by District or Commune of
medium-voltage feeders in accordance with the criteria approved by this
Resolution. At the date of these condensed interim financial statements, the
Company is evaluating the potential effects of this Resolution.
Note 3 |
Basis of preparation
These condensed interim financial statements for the
six-month period
ended June 30, 2018 have been prepared in accordance with
IFRS issued by the IASB and IFRIC interpretations,
incorporated by the CNV.
This condensed interim financial information must be read
together with the Company’s Financial Statements as of December 31, 2017, which
have been prepared in accordance with
IFRS.
These
condensed interim
financial
statements are stated in thousands of Argentine pesos, unless specifically
indicated otherwise. They have been prepared under the historical cost
convention, as modified by the measurement of financial assets at fair value
through profit or loss.
The condensed interim financial statements for the
six-month period
ended June 30, 2018 have not been audited; they have been
reviewed by the Independent Accountant in accordance with ISRE 2,410, whose
scope is substantially less than that of an audit performed in accordance with
IFRS
. The Company’s Management estimates that they include all
the necessary adjustments to fairly present the results of operations for
each
period. The
result of operations for the six-month period ended
June 30, 2018
does not
necessarily reflect the Company’s results in proportion to the full fiscal
year.
These
condensed interim
financial
statements were approved for issue by the Company’s Board of Directors on August
8, 2018.
Comparative information
The balances as of December 31, 2017 and for the six-month
period ended June 30, 2017, disclosed in these condensed interim financial
statements for comparative purposes, arise from the respective financial
statements as of those dates.
Restatement of financial information
IAS 29 “Financial reporting in hyperinflationary
economies” requires the financial statements of an entity whose functional
currency is that of a hyperinflationary economy to be stated in terms of the
measuring unit current at the closing date of the reporting period.
In
order to conclude whether an economy is categorized as hyperinflationary, IAS 29
details a series of factors to be considered, among which the existence of a
cumulative inflation rate over three years that approaches or exceeds 100% is
included.
9
CONDENSED INTERIM
FINANCIAL
STATEMENTS
NOTES
|
Taking into consideration not only that the previous
year’s downward trend of the level of inflation has reversed, with inflation
increasing significantly during 2018, but also that the cumulative inflation
rate over the last three years is expected to exceed 100% during the rest of
2018, and that the other indicators do not contradict the conclusion that
Argentina should be considered a hyperinflationary economy for accounting
purposes, the Company’s Management believes that there is sufficient evidence to
conclude that Argentina is a hyperinflationary economy under the terms of IAS
29, and will begin to apply the restatement criteria in the periods ending as
from July 1, 2018.
As
of June 30, 2018, the restatement criteria of the financial information
established in IAS 29 have not been applied. Therefore, certain macroeconomic
variables that affect the Company’s business, such as salary costs and the
prices of supplies, which have suffered somewhat important variations, must be
taken into account when evaluating and interpreting the Company’s financial
position and results of operations in these financial statements. At the date of
issuance of these condensed interim
financial statements, the Company is in the process of
analyzing and calculating the requirements set forth in IAS 29.
At
the date of issuance of these condensed interim financial statements, Executive
Order No. 664/2003 of the National Executive Power, pursuant to which Argentine
control authorities were instructed not to receive inflation-adjusted financial
statements, continues to be in effect
Note 4 |
Accounting policies
The accounting policies adopted for these condensed
interim financial statements are consistent with those used in the preparation
of the financial statements for the last financial year, which ended on December
31, 2017, except for those mentioned below.
These condensed interim financial statements must be read
together with the audited Financial Statements as of December 31, 2017 prepared
under IFRS.
Note 4.1 |
New accounting standards, amendments and interpretations
issued by the IASB
IAS 19 “Employee benefits”: It introduces amendments to
post-employment defined benefit plans in the case of a plan amendment,
curtailment or settlement. The net defined benefit liability (asset) is
remeasured using the current fair value of plan assets and current actuarial
assumptions (including current market interest rates and other current market
prices), that reflect: a) the benefits offered under the plan and the plan
assets before the plan amendment, curtailment or settlement; and b) the benefits
offered under the plan and the plan assets after the plan amendment, curtailment
or settlement. The current period service cost for the period subsequent to the
plan amendment, curtailment or settlement is calculated using the actuarial
assumptions used to remeasure the defined benefit liability (asset) (rather than
the actuarial assumptions determined at the beginning). The net interest after
the plan amendment, curtailment or settlement is determined using the net
defined benefit liability (asset) and the discount rate used to remeasure the
liability (asset). The standard applies to plan amendments, curtailments or
settlements that occur as from January 1, 2019, with earlier adoption permitted.
The Company is currently analyzing the impact of the adoption of IAS 19;
nevertheless, it is estimated that the application thereof will have no
significant impact on the Company’s results of operations or its financial
position.
There are no new IFRS or IFRIC applicable as from this
period that have a material impact on the Company’s condensed interim financial
statements.
Note 4.2 |
Trade receivables
The receivables arising from services billed to customers
but not collected as well as those arising from services rendered but unbilled
at the closing date of the period/year are recognized at fair value and
subsequently measured at amortized cost using the effective interest rate
method.
The amounts thus determined are net of an allowance for
the impairment of receivables. The future expected loss impairment rate is
determined per customer category, based on the historical
comparison of collections made and delinquent balances of each customer group, and applied to the total of the Company’s receivables. This change from the criterion used in the Financial Statements as of December 31, 2017, relates to the implementation of IFRS 9 as from January 1, 2018; see impact in Note 6.
10
CONDENSED INTERIM
FINANCIAL STATEMENTS
NOTES
|
Any debt arising from the bills for electricity consumption that remain unpaid 7 working days after their first due dates for small-demand (T1), medium-demand (T2) and large-demand (T3) customers is considered a delinquent balance.
Additionally, and faced with temporary and/or exceptional situations, the Company’s Management may redefine the amount of the allowance, specifying and supporting the criteria used in all the cases.
Note 5 |
Financial risk management
3.
4.
5.
Note 5.1 |
Financial risk factors
The Company’s activities and the market in which it operates expose the Company to a series of financial risks: market risk (including currency risk, cash flows interest rate risk, fair value interest rate risk and price risk), credit risk and liquidity risk.
There have been no significant changes in risk management policies since the last fiscal year end.
a.
Market risks
i.
Currency risk
As of June 30, 2018 and December 31, 2017, the Company’s balances in foreign currency are as follow:
|
|
Currency
|
|
Amount in foreign currency
|
|
Exchange rate (1)
|
|
Total
06.30.18
|
|
Total
12.31.17
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
Other receivables
|
|
USD
|
|
1,633
|
|
28.750
|
|
46,949
|
|
-
|
Financial assets at fair value through profit or loss
|
|
USD
|
|
88,674
|
|
28.750
|
|
2,549,378
|
|
1,239,277
|
Cash and cash equivalents
|
|
USD
|
|
99
|
|
28.750
|
|
2,846
|
|
4,415
|
|
|
EUR
|
|
12
|
|
33.540
|
|
402
|
|
267
|
TOTAL CURRENT ASSETS
|
|
|
|
90,418
|
|
|
|
2,599,575
|
|
1,243,959
|
TOTAL ASSETS
|
|
|
|
90,418
|
|
|
|
2,599,575
|
|
1,243,959
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
USD
|
|
225,012
|
|
28.850
|
|
6,491,600
|
|
4,191,666
|
TOTAL NON-CURRENT LIABILITIES
|
|
|
|
225,012
|
|
|
|
6,491,600
|
|
4,191,666
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
Trade payables
|
|
USD
|
|
11,372
|
|
28.850
|
|
328,082
|
|
261,758
|
|
|
EUR
|
|
83
|
|
33.729
|
|
2,782
|
|
6,263
|
|
|
CHF
|
|
-
|
|
29.144
|
|
-
|
|
10,466
|
|
|
NOK
|
|
68
|
|
3.558
|
|
243
|
|
156
|
Borrowings
|
|
USD
|
|
3,612
|
|
28.850
|
|
104,195
|
|
71,205
|
TOTAL CURRENT LIABILITIES
|
|
|
|
15,135
|
|
|
|
435,302
|
|
349,848
|
TOTAL LIABILITIES
|
|
|
|
240,147
|
|
|
|
6,926,902
|
|
4,541,514
|
(1)
The exchange rates used are the BNA exchange rates in effect as of June 30, 2018 for US Dollars (USD), Euros (EUR), Swiss Francs (CHF) and Norwegian Krones (NOK).
As of June 30, 2018, the Company’s financial debt was long term and denominated in United States dollars. Consequently, it should be noted that in the second quarter of 2018, due to a combination of external factors and the domestic macroeconomic context, the US dollar rate of exchange increased 43%, from $ 20.15 to $ 28.85 between March and June, respectively.
Taking into account the net liability financial position in US dollars, as of June 30, 2018 the Company recorded a net loss on exchange difference of $ 1,437 million.
11
CONDENSED INTERIM
FINANCIAL
STATEMENTS
NOTES
|
ii.
Fair value estimate
The Company classifies the measurements of financial
instruments at fair value using a fair value hierarchy that reflects the
relevance of the variables used to carry out such measurements. The fair value
hierarchy has the following levels:
·
Level
1
: quoted prices (unadjusted) in active markets for
identical assets or liabilities.
·
Level
2
: inputs other than quoted prices included in level 1 that
are observable for the asset or liability, either directly (i.e. prices) or
indirectly (i.e. derived from the prices).
·
Level
3
: inputs for the asset or liability that are not based on
observable market data (i.e. unobservable inputs).
The table below shows the Company’s financial assets
measured at fair value as of June 30, 2018 and December 31, 2017:
|
|
LEVEL 1
|
|
LEVEL 2
|
|
LEVEL 3
|
|
TOTAL
|
|
|
|
|
|
|
|
|
|
At June
30, 2018
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
|
|
|
|
|
|
|
|
Money
market funds
|
|
406,492
|
|
-
|
|
-
|
|
406,492
|
Financial assets at fair value through profit or
loss:
|
|
|
|
|
|
|
|
|
Government bonds
|
|
2,962,683
|
|
-
|
|
-
|
|
2,962,683
|
Money
market funds
|
|
1,747,521
|
|
-
|
|
-
|
|
1,747,521
|
Total
assets
|
|
5,116,696
|
|
-
|
|
-
|
|
5,116,696
|
Derivative financial instruments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
At
December 31, 2017
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Government bonds
|
|
1,239,282
|
|
-
|
|
-
|
|
1,239,282
|
Money
market funds
|
|
1,657,976
|
|
-
|
|
-
|
|
1,657,976
|
Total assets
|
|
2,897,258
|
|
-
|
|
-
|
|
2,897,258
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Derivative financial instruments
|
|
-
|
|
197
|
|
-
|
|
197
|
Total liabilities
|
|
-
|
|
197
|
|
-
|
|
197
|
iii.
Interest rate risk
Interest rate risk is the risk of fluctuation in the fair
value or cash flows of an instrument due to changes in market interest rates.
The Company’s exposure to interest rate risk is related mainly to the long-term
debt obligations.
Indebtedness at floating rates exposes the Company to
interest rate risk on its cash flows. Indebtedness at fixed rates exposes the
Company to interest rate risk on the fair value of its liabilities. As of June
30, 2018 and December 31, 2017 -except for a loan applied for by the Company and
granted by ICBC Bank as from October 2017 for a three-year term at a six-month
Libor rate plus an initial 2.75% spread, which will be adjusted semi-annually by
a quarter-point-, 100% of the loans were obtained at fixed interest rates. The
Company’s policy is to keep the largest percentage of its indebtedness in
instruments that accrue interest at fixed rates.
12
CONDENSED INTERIM
FINANCIAL
STATEMENTS
NOTES
|
In
this regard, on April 12, 2018, the Company entered into a hedge transaction
with Citibank London, with the aim of fixing the financial cost subject to
floating rate of the interest amounts the Company must pay during the October
2018-October 2020 period, relating to the loan taken from ICBC (Note 22 to the
Financial Statements as of December 31, 2017).
Note 6 |
Critical accounting estimates and judgments
The preparation of the
condensed interim
financial
statements requires the Company’s Management to make estimates and assessments
concerning the future, exercise critical judgments and make assumptions that
affect the application of the accounting policies and the reported amounts of
assets and liabilities and revenues and expenses.
These estimates and judgments are evaluated and are based
upon past experience and other factors that are reasonable under the existing
circumstances. Future actual results may differ from the estimates and
assessments made at the date of preparation of these condensed interim financial
statements.
In
the preparation of these condensed interim financial statements, there were no
changes in either the critical judgments made by the Company when applying its
accounting policies or the information sources of estimation uncertainty with
respect to those applied in the Financial Statements for the year ended December
31, 2017, except for the following:
Allowances for the impairment of
receivables
:
As
from January 1, 2018, the Company has applied the amended IFRS 9 retrospectively
with the allowed practical resources, without restating the comparative
periods.
The Company has performed a review of the financial assets
it currently measures and classifies at fair value through profit or loss or at
amortized cost and has concluded that they meet the conditions to maintain their
classification; consequently, the initial adoption has not affected the
classification and measurement of the Company’s financial assets.
Furthermore, with regard to the new hedge accounting
model, the Company has not elected to designate any hedge relationship at the
date of the initial adoption of the amended IFRS 9 and, consequently, has
generated no impact on the Company’s results of operations or its financial
position.
Finally, with regard to the change in the methodology for
calculating the impairment of financial assets based on expected credit losses,
the Company has applied the simplified approach of IFRS 9 for trade receivables
and other receivables with similar risk characteristics. In order to measure the
expected credit losses, receivables are grouped by segment, and on the basis of
the shared credit risk characteristics and the number of days past the payment
due date. The expected loss as of January 1, 2018 was determined based on the
following coefficients calculated for the number of days past the payment due
date:
13
CONDENSED INTERIM
FINANCIAL
STATEMENTS
NOTES
|
For such purpose, the adjustments determined as of
December 31, 2017 are as follow:
|
|
Number of days
|
|
|
0 -30
|
|
30-60
|
|
60-90
|
|
90-120
|
|
120-150
|
Loss expected porcentage
|
|
8%
|
|
12%
|
|
19%
|
|
26%
|
|
59%
|
Amount of the provisions for impairment of the trade
receivables at 12.31.2017 by IAS 39
|
(458,853)
|
|
|
Adjustment of expected losses NIIF
9
|
(82,041)
|
Amount of the provisions for impairment of the trade
receivables at 12.31.2017 by NIIF 9
|
(540,894)
|
The adjustment determined as a result of the application
of this new standard, net of its tax effect, amounts to $ 60.2 million, which is
disclosed within the “Unappropriated Retained Earnings” line item.
Trade receivables are derecognized when there is no
reasonable expectation of their recovery. Any debt arising from the bills for
electricity consumption that remain unpaid 7 working days after their first due
dates for small-demand (T1), medium-demand (T2) and large-demand (T3) customers
is regarded by the Company as a delinquent balance.
Additionally, and faced with temporary and/or
exceptional situations, the Company’s Management may redefine the amount of the
allowance, specifying and supporting the criteria used in all the cases.
Note 7 |
Contingencies and lawsuits
At
the date of issuance of these condensed interim financial statements, there are
no significant changes with respect to the situation reported by the Company in
the Financial Statements as of December 31, 2017.
14
CONDENSED INTERIM
FINANCIAL
STATEMENTS
NOTES
|
Note 8 |
Property, plant and equipment
|
|
Lands and buildings
|
|
Substations
|
|
High, medium and low voltage lines
|
|
Meters and Transformer chambers and platforms
|
|
Tools, Furniture, vehicles, equipment,
communications and advances to suppliers
|
|
Construction in process
|
|
Supplies and spare parts
|
|
Total
|
Cost
|
|
300,914
|
|
2,512,243
|
|
7,080,373
|
|
2,866,259
|
|
1,447,112
|
|
5,008,770
|
|
55,448
|
|
19,271,119
|
Accumulated depreciation
|
|
(72,168)
|
|
(674,135)
|
|
(2,266,848)
|
|
(991,967)
|
|
(453,980)
|
|
-
|
|
-
|
|
(4,459,098)
|
Net amount 12.31.17
|
|
228,746
|
|
1,838,108
|
|
4,813,525
|
|
1,874,292
|
|
993,132
|
|
5,008,770
|
|
55,448
|
|
14,812,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions
|
|
-
|
|
-
|
|
-
|
|
-
|
|
128,370
|
|
2,162,595
|
|
24,794
|
|
2,315,759
|
Disposals
|
|
-
|
|
-
|
|
(9,796)
|
|
(3,561)
|
|
(102)
|
|
-
|
|
-
|
|
(13,459)
|
Transfers
|
|
109,414
|
|
117,747
|
|
783,863
|
|
135,815
|
|
(69,618)
|
|
(1,067,006)
|
|
(10,215)
|
|
-
|
Depreciation for the period
|
|
(13,171)
|
|
(34,348)
|
|
(91,483)
|
|
(47,096)
|
|
(77,591)
|
|
-
|
|
-
|
|
(263,689)
|
Net amount 06.30.18
|
|
324,989
|
|
1,921,507
|
|
5,496,109
|
|
1,959,450
|
|
974,191
|
|
6,104,359
|
|
70,027
|
|
16,850,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
410,329
|
|
2,629,989
|
|
7,841,697
|
|
2,997,454
|
|
1,503,933
|
|
6,104,359
|
|
70,027
|
|
21,557,788
|
Accumulated depreciation
|
|
(85,340)
|
|
(708,482)
|
|
(2,345,588)
|
|
(1,038,004)
|
|
(529,742)
|
|
-
|
|
-
|
|
(4,707,156)
|
Net amount 06.30.18
|
|
324,989
|
|
1,921,507
|
|
5,496,109
|
|
1,959,450
|
|
974,191
|
|
6,104,359
|
|
70,027
|
|
16,850,632
|
·
During the period ended June 30, 2018,
the Company capitalized as own direct costs $ 378.1
million.
·
Financial costs capitalized for the period ended June 30,
2018 amounted to $ 232.8 million.
|
|
Vease nuestro informe de
fecha
9 de agosto de 2017
PRICE
WATERHOUSE & CO. S.R.L.
|
|
|
|
|
(Socio)
|
|
|
DANIEL
ABELOVICH
por Comisión
Fiscalizadora
|
|
C.P.C.E.C.A.B.A.
Tº 1 Fº 17
|
|
|
15
CONDENSED INTERIM
FINANCIAL
STATEMENTS
NOTES
|
|
|
Lands and buildings
|
|
Substations
|
|
High, medium and low voltage lines
|
|
Meters and Transformer chambers and platforms
|
|
Tools, Furniture, vehicles, equipment,
communications and advances to suppliers
|
|
Construction in process
|
|
Supplies and spare parts
|
|
Total
|
Cost
|
|
235,709
|
|
2,048,014
|
|
6,024,954
|
|
2,523,084
|
|
1,265,502
|
|
3,040,451
|
|
162,088
|
|
15,299,802
|
Accumulated depreciation
|
|
(69,097)
|
|
(617,062)
|
|
(2,119,167)
|
|
(907,145)
|
|
(390,341)
|
|
-
|
|
-
|
|
(4,102,812)
|
Net amount 12.31.16
|
|
166,612
|
|
1,430,952
|
|
3,905,787
|
|
1,615,939
|
|
875,161
|
|
3,040,451
|
|
162,088
|
|
11,196,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions
|
|
-
|
|
-
|
|
-
|
|
-
|
|
58,153
|
|
1,677,387
|
|
213
|
|
1,735,753
|
Disposals
|
|
(145)
|
|
-
|
|
(3,566)
|
|
(897)
|
|
(336)
|
|
-
|
|
-
|
|
(4,944)
|
Transfers
|
|
33,422
|
|
136,886
|
|
607,263
|
|
174,326
|
|
(21,040)
|
|
(930,857)
|
|
-
|
|
-
|
Depreciation for the period
|
|
(8,317)
|
|
(27,358)
|
|
(77,409)
|
|
(41,201)
|
|
(45,657)
|
|
-
|
|
-
|
|
(199,942)
|
Net amount 03.31.17
|
|
191,572
|
|
1,540,480
|
|
4,432,075
|
|
1,748,167
|
|
866,281
|
|
3,786,981
|
|
162,301
|
|
12,727,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
268,850
|
|
2,184,900
|
|
6,619,123
|
|
2,696,206
|
|
1,300,591
|
|
3,786,981
|
|
162,301
|
|
17,018,952
|
Accumulated depreciation
|
|
(77,278)
|
|
(644,420)
|
|
(2,187,048)
|
|
(948,039)
|
|
(434,310)
|
|
-
|
|
-
|
|
(4,291,095)
|
Net amount 03.31.17
|
|
191,572
|
|
1,540,480
|
|
4,432,075
|
|
1,748,167
|
|
866,281
|
|
3,786,981
|
|
162,301
|
|
12,727,857
|
·
During the period ended June 30, 2017,
the Company capitalized as own direct costs
$
263.7 million.
·
Financial costs capitalized for the period ended June 30,
2017 amounted to
$ 125.9
million.
|
|
Vease nuestro
informe de fecha
9 de agosto de 2017
PRICE
WATERHOUSE & CO. S.R.L.
|
|
|
|
|
(Socio)
|
|
|
DANIEL
ABELOVICH
por Comisión
Fiscalizadora
|
|
C.P.C.E.C.A.B.A. Tº 1 Fº
17
|
|
|
16
CONDENSED INTERIM
FINANCIAL
STATEMENTS
NOTES
|
Note 9 |
Other receivables
|
Note
|
06.30.18
|
12.31.17
|
Non-current:
|
|
|
|
|
|
|
|
|
-
|
|
-
|
Financial credit (1)
|
33,512
|
|
37,019
|
Related parties
|
29.d
|
5,045
|
|
5,428
|
Total Non-current
|
|
38,557
|
|
42,447
|
|
|
|
|
|
|
Current:
|
|
|
|
|
|
Prepaid expenses
|
19,210
|
|
4,986
|
Advances to suppliers
|
10,399
|
|
6,631
|
Advances to personnel
|
1,009
|
|
2,230
|
Security deposits
|
|
13,727
|
|
10,327
|
Financial credit
|
|
82,650
|
|
11,621
|
Receivables from electric activities
|
99,873
|
|
114,561
|
Related parties
|
29.d
|
1,978
|
|
1,093
|
Guarantee deposits on derivative
financial
instruments
|
-
|
|
60,049
|
Judicial deposits
|
|
22,671
|
|
16,115
|
Other
|
|
|
41
|
|
6
|
Allowance for the impairment of other
receivables
|
(87,958)
|
|
(27,002)
|
Total Current
|
|
|
163,600
|
|
200,617
|
(1)
As of June 30, 2018, the Company has entered into loans
for consumption agreements (mutuums) with its suppliers for a total of $
69.8 million.
The carrying amount of the Company’s other financial
receivables approximates their fair value.
The other non-current receivables are measured at
amortized cost, which does not differ significantly from their fair
value.
The roll
forward of the allowance for the impairment of other receivables is as
follows:
|
|
|
06.30.18
|
|
06.30.17
|
Balance at beginning of the period
|
|
|
27,002
|
|
34,699
|
Increase
|
|
|
60,956
|
|
-
|
Recovery
|
|
|
-
|
|
(10,631)
|
Balance at end of the period
|
|
|
87,958
|
|
24,068
|
Note 10 |
Trade
receivables
|
|
|
06.30.18
|
|
12.31.17
|
Current:
|
|
|
|
|
|
Sales of electricity - Billed
|
|
|
3,946,146
|
|
2,931,339
|
Sales of electricity – Unbilled
|
|
|
3,584,526
|
|
2,982,677
|
Framework Agreement
|
|
|
524,042
|
|
156,412
|
Fee payable for the expansion of the transportation
and others
|
|
|
22,968
|
|
22,994
|
Receivables in litigation
|
|
|
52,543
|
|
44,288
|
Allowance for the impairment of trade
receivables
|
|
|
(667,684)
|
|
(458,853)
|
Total Current
|
|
|
7,462,541
|
|
5,678,857
|
The carrying amount of the Company’s trade receivables
approximates their fair value.
17
CONDENSED INTERIM
FINANCIAL
STATEMENTS
NOTES
|
The roll
forward for the impairment of financial assets is as follows:
|
|
|
06.30.18
|
|
06.30.17
|
Balance at beginning of the period
|
|
|
458,853
|
|
259,682
|
Increase (1)
|
|
|
356,065
|
|
135,018
|
Decrease
|
|
|
(147,234)
|
|
(16,678)
|
Balance at end of the period
|
|
|
667,684
|
|
378,022
|
(1)
As of June 30, 2018, includes the impairment of financial
assets for $ 82 million due to the application, of IFRS 9 as from January 1,
2018 (Note 6).
Note 11 |
Financial
assets at fair value through profit or loss
|
|
|
06.30.18
|
|
12.31.17
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
Government bonds
|
|
|
2,962,683
|
|
1,239,282
|
Money
market funds
|
|
|
1,747,521
|
|
1,657,976
|
Total current
|
|
|
4,710,204
|
|
2,897,258
|
Note 12 |
Financial
assets at amortized cost
|
|
|
06.30.18
|
|
12.31.17
|
Current
|
|
|
|
|
|
Government bonds
|
|
|
-
|
|
11,498
|
Time deposits
|
|
|
511,444
|
|
-
|
Total Current
|
|
|
511,444
|
|
11,498
|
Note 13 |
Cash and cash
equivalents
|
|
06.30.18
|
|
12.31.17
|
|
06.30.17
|
Cash and banks
|
|
338,903
|
|
82,860
|
|
56,887
|
Money
market funds
|
|
406,492
|
|
-
|
|
15,832
|
Total cash and cash equivalents
|
|
745,395
|
|
82,860
|
|
72,719
|
Note 14 |
Share capital
and additional paid-in capital
|
|
Share capital
|
|
Additional paid-in capital
|
|
Cost of acquisition of own shares
|
|
Total
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2016
|
|
1,314,518
|
|
3,452
|
|
-
|
|
1,317,970
|
Payment of Other reserve constitution - Share-bases
compensation plan
|
|
-
|
|
28,113
|
|
-
|
|
28,113
|
Balance at December 31, 2017
|
|
1,314,518
|
|
31,565
|
|
-
|
|
1,346,083
|
|
|
|
|
|
|
|
|
|
Payment of Other reserve constitution - Share-bases
compensation plan (Note 16)
|
|
|
|
7,729
|
|
-
|
|
7,729
|
Acquisition of own shares
|
|
-
|
|
-
|
|
(727,990)
|
|
(727,990)
|
Balance at June 30, 2018
|
|
1,314,518
|
|
39,294
|
|
(727,990)
|
|
625,822
|
18
CONDENSED INTERIM
FINANCIAL STATEMENTS
NOTES
|
As of June 30, 2018, the Company’s share capital amounts to 906,455,100 shares, divided into 462,292,111 common, book-entry Class A shares with a par value of one peso each and the right to one vote per share; 442,210,385 common, book-entry Class B shares with a par value of one peso each and the right to one vote per share; and 1,952,604 common, book-entry Class C shares with a par value of one peso each and the right to one vote per share.
Furthermore, the Company has acquired, in successive market transactions, in the New York Stock Exchange 12,917,820 Class B common shares, for an amount of $ 728 million, observing the terms and conditions that were set by the Board of Directors for the acquisition of the Company’s own shares, as well as the applicable regulatory framework.
Note 15 |
Allocation of profits
The restrictions on the distribution of dividends by the Company are those provided for by the Business Organizations Law and the negative covenants established by the Corporate Notes program. As of June 30, 2018, the Company complies with the indebtedness ratio established in such program.
Furthermore, according to the Company’s own shares in portfolio at June 30, 2018 and considering the provisions of the CNV Rules, the Company has a restriction on the profit distribution no assigned, or free reserves for $ 728 million.
Note 16 |
The Company’s Share-based Compensation Plan
As indicated in the Financial Statements as of December 31, 2017, the Company has decided to use the available treasury shares for the implementation of share-based compensation plans for its senior management against the achievement of the strategic objectives set annually.
At the date of issuance of these condensed interim financial statements, the Company awarded a total of 272,241 shares to executive directors and managers as additional remuneration for their performance in special processes developed during the 2018 period.
The fair value of the previously referred to shares at the award date, amounted to $ 11.1 million and has been recorded in the Salaries and social security taxes line item, with a contra account in Equity. The amount recorded in Equity is net of the tax effect.
Note 17 |
Trade payables
|
Note
|
|
06.30.18
|
|
12.31.17
|
Non-current
|
|
|
|
|
|
Customer guarantees
|
|
|
115,790
|
|
100,469
|
Customer contributions
|
|
|
92,397
|
|
79,979
|
Funding contributions - substations
|
|
|
60,452
|
|
60,452
|
Total Non-current
|
|
|
268,639
|
|
240,900
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
Payables for purchase of electricity - CAMMESA
|
|
|
4,493,374
|
|
3,047,128
|
Provision for unbilled electricity purchases - CAMMESA
|
|
|
5,909,990
|
|
4,547,990
|
Suppliers
|
|
|
1,574,371
|
|
1,351,575
|
Advance to customer
|
|
|
197,688
|
|
149,069
|
Customer contributions
|
|
|
12,779
|
|
18,764
|
Discounts to customers
|
|
|
1,755
|
|
8,384
|
Funding contributions - substations
|
|
|
37,372
|
|
37,372
|
Related parties
|
29.d
|
|
7,260
|
|
35,021
|
Total Current
|
|
|
12,234,589
|
|
9,195,303
|
The fair values of non-current customer contributions as of June 30, 2018 and December 31, 2017 amount to $ 58.9 million and $ 56.9 million, respectively. The fair values are determined
based on estimated cash flows discounted at a representative market rate for this type of transactions. The applicable fair value category is Level 3 category.
19
CONDENSED INTERIM
FINANCIAL STATEMENTS
NOTES
|
The carrying amount of the rest of the financial liabilities included in the Company’s trade payables approximates their fair value.
Note 18 |
Other payables
|
Note
|
|
06.30.18
|
|
12.31.17
|
Non-current
|
|
|
|
|
|
Loans (mutuum) with CAMMESA
|
|
|
2,026,883
|
|
1,885,093
|
ENRE penalties and discounts
|
|
|
4,181,631
|
|
3,885,767
|
Liability with FOTAE
|
|
|
198,705
|
|
190,179
|
Payment agreements with ENRE
|
|
|
54,014
|
|
73,189
|
Total Non-current
|
|
|
6,461,233
|
|
6,034,228
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
ENRE penalties and discounts
|
|
|
764,471
|
|
288,210
|
Related parties
|
29.d
|
|
2,639
|
|
5,253
|
Advances for works to be performed
|
|
|
13,576
|
|
13,576
|
Payment agreements with ENRE
|
|
|
65,078
|
|
63,356
|
Total Current
|
|
|
845,764
|
|
370,395
|
The carrying amount of the Company’s other financial payables approximates their fair value.
Note 19 |
Borrowings
|
|
06.30.18
|
|
12.31.17
|
Non-current
|
|
|
|
|
Corporate notes (1) (2)
|
|
5,048,912
|
|
3,259,216
|
Borrowing
|
|
1,442,688
|
|
932,450
|
Total non-current
|
|
6,491,600
|
|
4,191,666
|
|
|
|
|
|
Current
|
|
|
|
|
Interest from corporate notes
|
|
89,537
|
|
62,236
|
Interest from borrowing
|
|
14,658
|
|
8,969
|
Total current
|
|
104,195
|
|
71,205
|
(1)
Net of debt repurchase/redemption and issuance expenses.
(2)
As of June 30, 2018 the Company has repurchased Corporate Notes 2022 for a nominal value of USD 0.4 million.
The fair values of the Company’s non-current borrowings
as of June 30, 2018 and December 31, 2017 amount approximately to $ 5,278.6 million and $ 4,122.9 million,
respectively. Such values were calculated on the basis of the estimated market price of the Company’s Corporate Notes at the end of the each
period
. The applicable fair value category is Level 1 category.
The carrying amount of the rest of the financial liabilities included in the Company’s trade payables approximates their fair value.
20
CONDENSED INTERIM
FINANCIAL
STATEMENTS
NOTES
|
Note 20 |
Salaries and
social security taxes payable
|
|
06.30.18
|
|
12.31.17
|
Non-current
|
|
|
|
|
Early retirements payable
|
|
3,313
|
|
3,359
|
Seniority-based bonus
|
|
132,860
|
|
116,296
|
Total non-current
|
|
136,173
|
|
119,655
|
|
|
|
|
|
Current
|
|
|
|
|
Salaries payable and provisions
|
|
815,608
|
|
1,064,106
|
Social security payable
|
|
153,216
|
|
151,137
|
Early retirements payable
|
|
5,276
|
|
4,808
|
Total current
|
|
974,100
|
|
1,220,051
|
The carrying amount of the Company’s salaries and social
security taxes payable approximates their fair value.
Note 21 |
Income tax
and tax on minimum presumed income / Deferred tax
At
the date of issuance of these condensed interim financial statements, there are
no significant changes with respect to the situation reported by the Company as
of December 31, 2017, except for the following:
|
|
06.30.18
|
|
12.31.17
|
Non-Current
|
|
|
|
|
Income tax payable 2018
|
|
961,187
|
|
|
Tax payable 2017 (1)
|
|
200,121
|
|
618,293
|
Total non-current
|
|
1,161,308
|
|
618,293
|
Tax withholdings
|
|
(150,354)
|
|
(151,610)
|
Total current
|
|
1,010,954
|
|
466,683
|
(1)
As of June 30, 2018, includes $ 3.3 million related to
income tax on the transfer of shares (Note 16).
21
CONDENSED INTERIM
FINANCIAL
STATEMENTS
NOTES
|
The detail of
deferred tax assets and liabilities is as follows:
|
06.30.18
|
|
12.31.17
|
Deferred tax assets
|
|
|
|
Inventories
|
4,811
|
|
4,390
|
Trade receivables and other
receivables
|
267,435
|
|
110,041
|
Trade payables and other payables
|
1,384,209
|
|
1,182,315
|
Salaries and social security payable
|
47,445
|
|
34,615
|
Benefit plans
|
98,017
|
|
90,313
|
Tax liabilities
|
17,008
|
|
12,357
|
Provisions
|
272,786
|
|
208,804
|
Deferred tax asset
|
2,091,711
|
|
1,642,835
|
|
|
|
|
Deferred tax liabilities
|
|
|
|
Property, plants and equipments
|
(486,422)
|
|
(439,068)
|
Financial assets at fair value through profit or
loss
|
(12,101)
|
|
(11,278)
|
Borrowings
|
(4,957)
|
|
(5,468)
|
Deferred tax liability
|
(503,480)
|
|
(455,814)
|
|
|
|
|
Net deferred tax assets
|
1,588,231
|
|
1,187,021
|
The detail of
the income tax expense is as follows:
|
|
06.30.18
|
|
06.30.17
|
Deferred tax
|
|
401,210
|
|
136,706
|
Current tax
|
|
(979,735)
|
|
(292,630)
|
Difference between provision and tax
return
|
|
15,386
|
|
2
|
Income tax expense
|
|
(563,139)
|
|
(155,922)
|
|
|
|
|
|
|
|
|
|
|
|
|
06.30.18
|
|
06.30.17
|
Profit for the period before taxes
|
|
1,816,373
|
|
527,880
|
Applicable tax rate
|
|
30%
|
|
35%
|
Loss for the year at the tax rate
|
(544,912)
|
|
(184,758)
|
|
|
|
|
|
(Loss) Gain from interest in joint
ventures
|
|
3
|
|
4
|
Non-taxable income
|
|
-
|
|
25,487
|
Various
|
|
(3)
|
|
(4)
|
Difference between provision and tax
return
|
|
(6,011)
|
|
165
|
Change in the income tax rate (1)
|
|
(12,216)
|
|
-
|
Income tax expense
|
|
(563,139)
|
|
(159,106)
|
(1)
Refers to the change in the income tax rate in accordance
with Law No. 27,430 enacted on December 29, 2017.
Note 22 |
Tax
liabilities
|
|
06.30.18
|
|
12.31.17
|
Current
|
|
|
|
|
Provincial, municipal and federal contributions and
taxes
|
|
66,999
|
|
398,032
|
VAT payable
|
|
768,060
|
|
493,151
|
Tax withholdings
|
|
89,601
|
|
88,781
|
SUSS withholdings
|
3,863
|
|
3,515
|
Municipal taxes
|
|
85,515
|
|
68,457
|
Tax regularization plan
|
|
950
|
|
1,519
|
Total Current
|
|
1,014,988
|
|
1,053,455
|
22
CONDENSED INTERIM
FINANCIAL
STATEMENTS
NOTES
|
Note 23 |
Provisions
|
|
Non-current liabilities
|
|
Current liabilities
|
|
|
Contingencies
|
At 12.31.17
|
|
598,087
|
|
129,258
|
|
|
|
|
|
Increases
|
|
206,457
|
|
46,925
|
Decreases
|
|
(4)
|
|
(25,482)
|
At 06.30.18
|
|
804,540
|
|
150,701
|
|
|
|
|
|
At 12.31.16
|
|
341,357
|
|
87,912
|
Increases
|
|
61,064
|
|
38,667
|
Decreases
|
|
(4)
|
|
(21,111)
|
At 06.30.17
|
|
402,417
|
|
105,468
|
Note 24 |
Revenue from
sales
|
|
06.30.18
|
|
06.30.17
|
Sales of electricity (1)
|
|
21,165,014
|
|
11,045,313
|
Right of use on poles
|
|
72,065
|
|
57,124
|
Connection charges
|
|
19,201
|
|
13,461
|
Reconnection charges
|
|
9,657
|
|
2,365
|
Total Revenue from sales
|
|
21,265,937
|
|
11,118,263
|
(1)
As
of June 30, 2018, the amount accrued for the monthly installment to be applied
in accordance with the provisions of ENRE Resolution No. 33/18 amounts to $
697.3 million.
23
CONDENSED INTERIM
FINANCIAL
STATEMENTS
NOTES
|
Note 25 |
Expenses by
nature
The detail of expenses by nature is as follows:
Description
|
|
Transmission and distribution expenses
|
|
Selling
expenses
|
|
Administrative expenses
|
|
Total
|
Salaries and social security taxes
|
|
1,602,958
|
|
291,821
|
|
334,548
|
|
2,229,327
|
Pension plans
|
|
54,029
|
|
9,836
|
|
11,276
|
|
75,141
|
Communications expenses
|
|
24,341
|
|
100,390
|
|
6,350
|
|
131,081
|
Allowance for the impairment of trade and other
receivables
|
|
-
|
|
334,979
|
|
-
|
|
334,979
|
Supplies consumption
|
|
187,485
|
|
-
|
|
29,706
|
|
217,191
|
Leases and insurance
|
|
212
|
|
-
|
|
67,230
|
|
67,442
|
Security service
|
|
27,756
|
|
136
|
|
66,878
|
|
94,770
|
Fees and remuneration for services
|
|
507,918
|
|
382,994
|
|
315,434
|
|
1,206,346
|
Public relations and marketing
|
|
-
|
|
-
|
|
4,972
|
|
4,972
|
Advertising and sponsorship
|
|
-
|
|
-
|
|
2,561
|
|
2,561
|
Reimbursements to personnel
|
|
25
|
|
27
|
|
176
|
|
228
|
Depreciation of property, plants
and
equipments
|
210,205
|
|
29,315
|
|
24,169
|
|
263,689
|
Directors and Supervisory Committee
members’
fees
|
-
|
|
-
|
|
8,520
|
|
8,520
|
ENRE penalties
|
|
710,381
|
|
115,648
|
|
-
|
|
826,029
|
Taxes and charges
|
|
-
|
|
200,673
|
|
14,108
|
|
214,781
|
Other
|
|
199
|
|
112
|
|
2,178
|
|
2,489
|
At 06.30.18
|
|
3,325,509
|
|
1,465,931
|
|
888,106
|
|
5,679,546
|
The expenses included in the chart above are net of the
Company’s own expenses capitalized in Property, plant and equipment as of June
30, 2018 for $ 378.1 million.
Description
|
|
Transmission and distribution expenses
|
|
Selling
expenses
|
|
Administrative expenses
|
|
Total
|
Salaries and social security taxes
|
|
1,444,755
|
|
256,295
|
|
257,486
|
|
1,958,536
|
Pension plans
|
|
37,134
|
|
6,587
|
|
6,618
|
|
50,339
|
Communications expenses
|
|
17,142
|
|
86,278
|
|
6,533
|
|
109,953
|
Allowance for the impairment of trade and other
receivables
|
|
-
|
|
124,387
|
|
-
|
|
124,387
|
Supplies consumption
|
|
140,191
|
|
-
|
|
20,382
|
|
160,573
|
Leases and insurance
|
|
209
|
|
-
|
|
54,339
|
|
54,548
|
Security service
|
|
38,461
|
|
418
|
|
36,552
|
|
75,431
|
Fees and remuneration for services
|
|
308,951
|
|
236,020
|
|
214,276
|
|
759,247
|
Public relations and marketing
|
|
-
|
|
-
|
|
9,242
|
|
9,242
|
Advertising and sponsorship
|
|
-
|
|
-
|
|
4,761
|
|
4,761
|
Reimbursements to personnel
|
|
26
|
|
12
|
|
311
|
|
349
|
Depreciation of property, plants and
equipments
|
163,921
|
|
26,651
|
|
9,370
|
|
199,942
|
Directors and Supervisory Committee
members’ fees
|
-
|
|
-
|
|
6,220
|
|
6,220
|
ENRE penalties (1)
|
|
114,369
|
|
170,647
|
|
-
|
|
285,016
|
Taxes and charges
|
|
-
|
|
111,630
|
|
9,086
|
|
120,716
|
Other
|
|
136
|
|
46
|
|
1,827
|
|
2,009
|
At 06.30.17
|
|
2,265,295
|
|
1,018,971
|
|
637,003
|
|
3,921,269
|
(1)
Transmission
and distribution expenses include recovery for $ 413.7 million net of the charge
for the period for $ 528.1 million.
The expenses included in the chart above are net of the
Company’s own expenses capitalized in Property, plant and equipment as of June
30, 2017 for $ 263.7 million.
24
CONDENSED INTERIM
FINANCIAL
STATEMENTS
NOTES
|
Note 26 |
Other
operating expense, net
|
Note
|
|
06.30.18
|
|
06.30.17
|
Other operating income
|
|
|
|
|
|
Services provided to third parties
|
|
|
30,472
|
|
23,861
|
Commissions on municipal taxes
collection
|
|
|
27,645
|
|
13,484
|
Related parties
|
29.a
|
|
29,590
|
|
2,763
|
Income from non-reimbursable customer
contributions
|
|
|
2,049
|
|
501
|
Others
|
|
|
36,986
|
|
850
|
Total other operating income
|
|
|
126,742
|
|
41,459
|
|
|
|
|
|
|
Other operating expense
|
|
|
|
|
|
Gratifications for services
|
|
|
(24,433)
|
|
(26,156)
|
Cost
for services provided to third parties
|
|
|
(10,370)
|
|
(12,261)
|
Severance paid
|
|
|
(4,401)
|
|
(8,296)
|
Debit
and Credit Tax
|
|
|
(231,855)
|
|
(138,596)
|
Provision for contingencies
|
|
|
(253,382)
|
|
(99,731)
|
Disposals of property, plant and equipment
|
|
(13,459)
|
|
(4,944)
|
Other
|
|
|
(5,193)
|
|
(22,543)
|
Total other operating expense
|
|
|
(543,093)
|
|
(312,527)
|
Other operating expense, net
|
|
|
(416,351)
|
|
(271,068)
|
Note 27 |
Net financial
expense
|
|
06.30.18
|
|
06.30.17
|
Financial income
|
|
|
|
|
Commercial interest
|
|
101,537
|
|
52,881
|
Financial interest
|
|
107,568
|
|
65,545
|
Total financial income
|
|
209,105
|
|
118,426
|
|
|
|
|
|
Financial expenses
|
|
|
|
|
Interest and other (1)
|
|
(309,277)
|
|
(225,860)
|
Fiscal interest
|
|
(15,192)
|
|
(16,388)
|
Commercial interest
|
|
(723,192)
|
|
(475,723)
|
Bank fees and expenses
|
|
(498)
|
|
(848)
|
Total financial expenses
|
|
(1,048,159)
|
|
(718,819)
|
|
|
|
|
|
Other financial results
|
|
|
|
|
Exchange differences
|
|
(1,437,433)
|
|
(114,204)
|
Adjustment to present value of
receivables
|
|
(115)
|
|
(147)
|
Changes in fair value of financial assets
(2)
|
|
264,611
|
|
146,991
|
Net gain from the repurchase of
Corporate
Notes
|
|
(511)
|
|
-
|
Other financial expense
|
|
(28,967)
|
|
(19,766)
|
Total other financial expense
|
|
(1,202,415)
|
|
12,874
|
Total net financial expense
|
|
(2,041,469)
|
|
(587,519)
|
(1)
Net of
interest capitalized as of June 30, 2018 and 2017 for $ 232.8 million and $
125.9 million, respectively.
(2)
Includes
changes in the fair value of financial assets on cash equivalents as of June 30,
2018 and 2017 for $8 million and $9.6 million, respectively.
25
CONDENSED INTERIM
FINANCIAL
STATEMENTS
NOTES
|
Note 28 |
Basic and
diluted earnings per share
Basic
The basic earnings per share is calculated by dividing the
profit attributable to the holders of the Company’s equity instruments by the
weighted average number of common shares outstanding as of June 30, 2018 and
2017, excluding common shares purchased by the Company and held as treasury
shares.
The basic earnings per share coincides with the diluted
earnings per share, inasmuch as the Company has issued neither preferred shares
nor corporate notes convertible into common shares.
|
|
06.30.18
|
|
06.30.17
|
Profit
for the period attributable to the owners of the Company
|
|
1,253,234
|
|
368,774
|
Weighted average number of common shares
outstanding
|
|
898,009
|
|
897,892
|
Basic
and diluted profit earnings per share – in pesos
|
|
1.40
|
|
0.41
|
Note 29 |
Related-party
transactions
·
The following transactions were carried out with related
parties:
a.
Income
Company
|
|
Concept
|
|
06.30.18
|
|
06.30.17
|
|
|
|
|
|
|
|
Pampa
|
|
Service assemblies
|
|
27
|
|
685
|
|
|
Computer services assistance
|
|
2,275
|
|
2,078
|
|
|
Thermal power plant Pilar
|
|
8,200
|
|
-
|
SACDE
|
|
Removal of facilities
|
|
19,088
|
|
-
|
|
|
|
|
29,590
|
|
2,763
|
b.
Expense
Company
|
|
Concept
|
|
06.30.18
|
|
06.30.17
|
|
|
|
|
|
|
|
EASA D67
|
|
Technical advisory services on financial
matters
|
|
(28,967)
|
|
(19,766)
|
SACME
|
|
Operation and oversight of the electric power
transmission system
|
|
(31,289)
|
|
(23,305)
|
Salaverri, Dellatorre, Burgio y Wetzler
Malbran
|
|
Legal fees
|
|
-
|
|
(101)
|
OSV
|
|
Hiring life insurance for staff
|
|
(7,245)
|
|
(6,430)
|
Abelovich, Polano & Asoc.
|
|
Legal fees
|
|
(905)
|
|
-
|
|
|
|
|
(68,406)
|
|
(49,602)
|
26
CONDENSED INTERIM
FINANCIAL
STATEMENTS
NOTES
|
c.
Key Management personnel’s remuneration
|
|
06.30.18
|
|
06.30.17
|
Salaries
|
|
40,757
|
|
45,051
|
|
|
40,757
|
|
45,051
|
·
The balances with related parties are as
follow:
d.
Receivables and payables
|
|
06.30.18
|
|
12.31.17
|
Other receivables - Non
current
|
|
|
|
|
SACME
|
|
5,045
|
|
5,428
|
|
|
5,045
|
|
5,428
|
|
|
|
|
|
Other receivables - Current
|
|
|
|
|
SACME
|
|
766
|
|
766
|
PESA
|
|
1,212
|
|
327
|
|
|
1,978
|
|
1,093
|
|
|
|
|
|
Trade
payables
|
|
|
|
|
OSV
|
|
-
|
|
(54)
|
EASA (see note 43 to Financial Statement at December
31,2017)
|
|
(7,260)
|
|
(34,967)
|
|
|
(7,260)
|
|
(35,021)
|
|
|
|
|
|
Other
payables
|
|
|
|
|
SACME
|
|
(2,639)
|
|
(5,253)
|
|
|
(2,639)
|
|
(5,253)
|
Additionally, on April 26, 2018, the Company entered into
a works agreement with Sociedad Argentina Construcción y Desarrollo Estratégico
S.A. (“SACDE”), for the removal and/or moving of medium and low-voltage
electrical facilities, owned by the Company, located on the path of the Pte.
Perón Highway (Extension of Camino del Buen Ayre) that will be built by SACDE.
In accordance with its concession agreement, the Company is obliged to carry out
this type of removals at the expense of the party requesting them.
27
CONDENSED INTERIM
FINANCIAL
STATEMENTS
NOTES
|
Note 30 |
Ordinary and
Extraordinary Shareholders’ Meeting
The Company Ordinary and Extraordinary Shareholders’
Meeting held on April 26, 2018 resolved, among other issues, the
following:
-
To
approve Edenor S.A.’s Annual Report and Financial Statements of as of December
31, 2017;
-
To
allocate the profit for the year ended December 31, 2017 to the absorption of
accumulated losses;
-
To
approve the actions taken by the Directors and Supervisory Committee members,
together with their respective remunerations;
-
To
appoint the authorities and the external auditors for the current fiscal
year;
28
Free translation from
the original in Spanish for publication in Argentina
REPORT ON CONDENSED INTERIM FINANCIAL STATEMENTS’
REVIEW
To the
Shareholders, President and Directors
Empresa
Distribuidora y Comercializadora Norte
Sociedad Anónima
(Edenor S.A.)
Legal address:
Avenida del Libertador 6363
Autonomous City of
Buenos Aires
Tax Code No.
30-65511620-2
Introduction
We have reviewed
the
condensed interim financial statements of Empresa Distribuidora y
Comercializadora Norte Sociedad Anónima (Edenor S.A.) (hereinafter “Edenor S.A.”
or “the Company”) which includes the condensed interim statement of financial
position as of June
30, 2018, the related condensed interim statement of comprehensive income for
the three and six months periods ended June 30, 2018, the related condensed
interim statements of changes in equity and cash flows for the six months period
then ended and the complementary selected notes.
The amounts and other information related
to fiscal year 2017 and its interim periods, are part of the financial
statements mentioned above and therefore should be considered in relation to
those financial statements.
Directors’
responsibility
The Company’s Board of Directors is
responsible for the preparation and presentation of the financial statements, in
accordance with the International Financial Reporting Standards (IFRS) adopted
by the Argentine Federation of Professional Councils in Economic Sciences
(FACPCE) ,as the applicable accounting framework and incorporated by the
National Securities Commission (CNV) to its standards, as they were approved by
the International Accounting Standards Board (IASB), and, therefore, it is
responsible for the preparation and presentation of the condensed interim
financial statements mentioned in the
first
paragraph
in
accordance with IAS 34 “Interim financial information”.
Scope of our
review
Our review was limited to the application
of the procedures established in International Standard on Review Engagements
2410 “Review of interim financial information performed by the independent
auditor of the entity”, which was adopted as review standard in Argentina
through Technical Pronouncement No. 33 of the FACPCE as was approved by
International Auditing and Assurance Standards Board (IAASB). A review of
interim financial information consists in making inquiries of Company staff
responsible for the preparation of the information included in the financial
statements and the application of analytical procedures and other review
procedures. This review is substantially less in scope than an audit in
accordance of International Standards on Auditing, consequently, this review
does not allow us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Therefore, we do not
express any opinion on the financial position, comprehensive income and cash
flows of the Company.
29
Conclusion
Based on our
review, nothing has come to our attention that causes us to believe that the
condensed interim financial statements mentioned in the first paragraph of this
report are not prepared, in all material respects, in accordance with IAS
34.
Report of compliance with
current regulations
In compliance with current
regulations, we report that:
a)
the condensed interim financial
statements of the Company, are transcribed into the “Inventory and Balance
Sheet” book and, insofar as concerns our field of competence, are in compliance
with the provisions of the General Companies Law and pertinent resolutions of
the National Securities Commission;
b)
the condensed
interim financial statements of the Company arise from accounting records kept
in all formal respects in conformity with legal regulations;
c)
we have read the
summary of activity, and additional information to the notes of condensed
interim financial statements required by article 68 of the Buenos Aires Stock
Exchange Regulations and article 12 °, Chapter III, Title IV of the regulations
of the National Securities Commission on which, as regards those matters that
are within our competence, we have no observations to make;
d)
at
June 30, 2018
the liabilities
accrued in favor of the Argentine Integrated Social Security System according to
the Company’s accounting records amounted to $
125.082.574,
which were not yet due at that
date.
Autonomous City of Buenos
Aires, August 8, 2018
PRICE WATERHOUSE
& CO. S.R.L.
|
|
|
|
|
(Partner)
|
|
|
|
|
C.P.C.E.C.A.B.A. Tº 1 Fº 17
Dr.
R. Sergio Cravero
Public Accountant
(UCA)
C.P.C.E. City of Buenos Aires T° 265
F°92
|
|
|
|
|
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
|
Empresa Distribuidora y Comercializadora Norte
S.A.
|
|
|
|
|
|
|
|
By:
|
/s/
Leandro Montero
|
|
Leandro Montero
|
|
Chief
Financial Officer
|
Date:
August 13
, 2018
30
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