The accompanying notes are an integral part of the Condensed Interim
Financial Statements.
The accompanying notes are an integral part of the Condensed Interim
Financial Statements.
The accompanying notes are an integral
part of the Condensed Interim Financial Statements.
The accompanying notes are an integral part of the Condensed Interim
Financial Statements.
|
Note
|
1
|
General
information
|
Empresa Distribuidora y Comercializadora
Norte S.A. (hereinafter “edenor” or “the Company”) is a corporation (sociedad anónima) organized
under the laws of Argentina, with legal address at 6363 Av. Del Libertador Ave - City of Buenos Aires, Argentine Republic, whose shares
are traded on the Buenos Aires Stock Exchange and the New York Stock Exchange (NYSE).
The corporate purpose of edenor 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 or through subsidiaries or related companies. In addition, the Company may
act as trustee of trusts created under Argentine laws.
On December 28, 2020, Pampa Energía
S.A., which was the parent company of edenor, entered into a share purchase and sale agreement, as the seller, with Empresa de
Energía del Cono Sur S.A. The transaction was authorized by the ENRE on June 23, 2021. The transfer of all the Class A shares,
representing 51% of the Company’s share capital and votes owned by Pampa Energía S.A., in favor of Empresa de Energía
del Cono Sur S.A. was completed on June 30, 2021 (Note 33).
The Company’s economic and financial
situation
The Company continues to record negative
working capital, a situation which has been mainly exacerbated by the suspension of the electricity rate update since February 2019.
In this context, the recent issuance by the
ENRE of Resolution No. 107/2021, which approves a 9% partial adjustment of electricity rates (See Note 2), is still insufficient to cover
the Company’s economic and financial needs.
Despite the constant increase of operating
costs and the increasing mismatch between costs and revenues, the investments necessary, both for the operation of the network and to
maintain and even improve the quality of the service, have been made.
The economic activity of 2021 shows a slight
recovery after the effect of the COVID-19 pandemic. However, the measures implemented by the Argentine Government in the last few days,
due to the increase in the number of cases, will affect the recovery seen in the first quarter of the year.
This whole situation is aggravated by a complex
and vulnerable economic context. Furthermore, due to the currency restrictions imposed by the BCRA that are public knowledge, the BCRA’s
prior authorization is required for certain transactions, such as the Company’s transactions associated with the payment of imports
of goods that are necessary for the provision of the service, and the payments to service the financial debt. These currency restrictions,
or those to be implemented in the future, could affect the Company’s ability to access the MULC in order to acquire the foreign
currency necessary to face its operating and financial obligations.
With regard to the Company, significant impacts
were generated that affected the economic and financial equation caused by the freeze on electricity rates even further, such as the increase
in delinquency rates and the decrease in demand, as a consequence of which the Company was forced to partially postpone payments to CAMMESA
for energy purchased in the Wholesale Electricity Market (“MEM”) as from the maturities taking place in March 2020; payment
obligations which have been partially regularized, but as of June 30, 2021 accumulate a past due principal balance of $ 17,919, plus interest
and charges for $ 10,312.
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
Despite the previously detailed situation,
it is worth pointing out that, in general terms, the quality of the electricity distribution service has been significantly improved,
both in duration and frequency of power cuts. In view of the continuous increase of the costs associated with the provision of the service,
as well as the need for additional investments to meet the demand, the Company, as previously mentioned, is analyzing different measures
aimed at mitigating the negative effects of this situation on its financial structure, minimizing the impact on the sources of employment,
the execution of the investment plan, and the carrying out of the essential operation, maintenance and improvement-related works that
are necessary to maintain the provision of the public service, object of the concession, in a satisfactory manner in terms of quality
and safety.
Taking into consideration that the realization
of the measures necessary to reverse the manifested negative trend depends on the occurrence of certain events that are not under the
Company’s control, the Board of Directors has raised substantial doubt about edenor’s ability to continue as a going
concern, which may result in the Company’s being obliged to defer certain payment obligations or unable to meet expectations for
salary increases or the increases recorded in third-party costs.
Nevertheless, these condensed interim financial
statements have been prepared assuming that the Company will continue to operate as a going concern and do not include the adjustments
or reclassifications that might result from the outcome of these uncertainties.
|
Note
|
2 |
Regulatory framework
|
At the date of issuance of these condensed
interim financial statements, there exist the following changes with respect to the situation reported by the Company in the Financial
Statements as of December 31, 2020:
On January 19, 2021, the Federal Government,
the Province of Buenos Aires, and the City of Buenos Aires entered into the "Agreement on the joint exercise of the regulation and
control of the public service of electricity distribution”, whereby they agreed that the transfer of jurisdiction process had not
taken place and that the Federal Government retains both the ownership of the public service of electricity distribution in the concession
areas of edenor and Edesur S.A., as well as the capacity as Grantor of the Concession in connection with the respective Concession
Agreements. The aforementioned agreement was approved by Executive Order No. 292/2021 and Resolution No. 16/2021, respectively.
|
a)
|
Electricity rate situation
|
On March 5, 2021, by means of Resolution
No. 53/2021, the ENRE called a Public Hearing to make known and listen to opinions on the distribution companies’ Transitional Tariff
System mentioned in Note 2.b) to the Financial Statements as of December 31, 2020, with such Public Hearing being held in the framework
of the Tariff Structure Review (RTI) Process and prior to defining the electricity rates to be applied by the referred to concession holders.
On March 30, Mr. Ricardo Torres, executive director of edenor until June 30, 2021, made a presentation at the Public Hearing
to discuss the transitional tariff adjustment of the Distribution, including revenue requirements and a new tariff structure proposal
to cover the public service expenses and investment needs.
Furthermore, on March 31, 2021, by means
of Resolution No. 78/2021, the ENRE approved the values of the Company’s electricity rate schedule, effective from the billing relating
to the reading of meters subsequent to 12:00 AM on April 1, 2021, based on the MEM’s winter seasonal programming. It must be pointed
out that such tariff increase affected only GUDI customers and reflected the increase of the seasonal price passed through to tariffs
without affecting revenues from the Company’s Own Distribution Costs.
Moreover, on April 30, 2021, by means of
Resolution No. 107/2021, and in the framework of the transitional tariff system, the ENRE authorized the application of a new electricity
rate schedule, effective as from May 1, 2021, with a 9% increase. In view of the fact that such increase does not cover the increase requested
by edenor, on June 15, 2021, an administrative appeal (recurso de alzada) was filed against such Resolution.
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
On May 11, 2021, by means of SE Resolution
No. 408/2021, the Definitive Winter Seasonal Programming for the MEM submitted by CAMMESA, relating to the May 1-October 31, 2021 period,
was approved.
|
b)
|
COVID-19-related effects
|
1.
Suspension of issuance of Debit Notes and Supplementary Statements:
on February 18, 2021, by means of ENRE Resolution No. 37/2021, the Company was instructed both to suspend, on an immediate and temporary
basis, the issuance of Debit Notes and Supplementary Statements (bills) in the terms of section 5 sub-section d) captions I, II and III
of the Electric Power Supply Regulations (i.e. those issued when energy values have not been recorded or have been under-measured; those
issued when events suggesting metering irregularities or the appropriation of energy by the user prove to be true; or those issued when
direct connections are verified), and to refrain from suspending electricity supplies due to non-payment of the amounts arising from the
recovery sought on the basis of such regulation, regardless of whether the users have made the pertinent claim, until the ENRE issues
the regulations. Furthermore, the Company is instructed to submit a report on the number of bills for Non-recorded or under or over-recorded
consumption, issued from March 1, 2020 to date, with no subsequent communications having been issued as of to date.
2.
System for the issuance of statements: on March 9, 2021, by
means of ENRE Resolution No. 58/2021, distribution companies were instructed to issue the electric power public service statements (bills)
solely with the amounts relating to the consumption of the billing period and to inform of the debts that have originated in or increased
during the periods of the Preventive and Mandatory Social Isolation (ASPO) and the Preventive and Mandatory Social Distancing (DISPO)
health measures.
As of June 30, 2021, and by virtue of the
Agreement described in Note 2.f) to the Financial Statements as of December 31, 2020, the Company received a first disbursement for $
1,500, which, as indicated in the aforementioned agreement, will be specifically used for complying with the Preventive and Corrective
Maintenance Work Plan for the Electricity Distribution Network. The Company may use the above-mentioned funds only after the ENRE has
certified compliance with both the degree of completion of the works included in the referred to plan and the related financial milestones.
At the date of issuance of these condensed
interim financial statements, the Company has used a total of $808.9, relating to the reports on progress of the works performed.
|
Note
|
3 |
Basis of preparation
|
These condensed interim financial statements
for the six-month period ended June 30, 2021:
|
i)
|
have been prepared in accordance with the
provisions of IAS 34 “Interim Financial Reporting”, incorporated by the CNV;
|
|
ii)
|
have not been audited; they have been reviewed
by the Independent Accountant in accordance with ISRE 2410, whose scope is substantially less than that of an audit performed in accordance
with applicable auditing standards. The Company’s Management estimates that they include all the necessary adjustments to fairly
present the results of operations for each period. The results of operations for the six-month period ended June 30, 2021 and its comparative
period as of June 30, 2020 do not necessarily reflect the Company’s results in proportion to the full fiscal year. They were approved
for issue by the Company’s Board of Directors on August 9, 2021;
|
|
iii)
|
are measured in pesos (the legal currency
in Argentina) restated in accordance with that mentioned in this Note, which is also the presentation currency;
|
|
iv)
|
must be read together with the audited Financial
Statements as of December 31, 2020 prepared under IFRS.
|
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
Comparative information
The balances as of December 31 and June 30,
2020, as the case may be, disclosed in these condensed interim financial statements for comparative purposes, arise as a result of restating
the annual Financial Statements and the Condensed Interim Financial Statements as of those dates, respectively, to the purchasing power
of the currency at June 30, 2021, as a consequence of the restatement of the financial information described hereunder. Furthermore, certain
amounts of the financial statements presented in comparative form have been reclassified in order to maintain consistency of presentation
with the amounts of the current periods (Note 4).
Restatement of financial information
The condensed interim financial statements,
including the figures relating to the previous year/period, have been stated in terms of the measuring unit current at June 30, 2021,
in accordance with IAS 29 “Financial reporting in hyperinflationary economies”, using the indexes published by the FACPCE.
The inflation rate applied for the period between January 1, 2021 and June 30, 2021, was 25.2%.
|
Note
|
4 |
Accounting policies
|
The accounting policies adopted for these
condensed interim financial statements are consistent with those used in the Financial Statements for the last financial year, which ended
on December 31, 2020.
Accounting standards, amendments and interpretations
issued by the IASB in the last few years that are effective as of June 30, 2021 and have been adopted by the Company:
- Amendments to IFRS 9 “Financial instruments”,
IAS 39 “Financial instruments: Presentation”, IFRS 7 “Financial Instruments: Disclosures”, IFRS 4 “Insurance
contracts” and IFRS 16 “Leases” (amended in August 2020).
- Amendments to IFRS 16 “Leases”,
in connection with rent concessions in the framework of the COVID-19 pandemic (amended in April 2021).
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
|
5 |
Financial risk management
|
|
Note
|
5.1 |
Financial risk factors
|
The Company’s activities and the market
in which it operates expose the Company to a number 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.
Additionally, the difficulty in obtaining
financing in international or national markets could affect some of the Company’s business variables, such as interest rates, foreign
currency exchange rates and the access to sources of financing.
With regard to the Company’s risk management
policies, there have been no significant changes since the last fiscal year end.
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
As of June 30, 2021 and December
31, 2020, the Company’s balances in foreign currency are as follow:
|
|
Currency
|
|
Amount in foreign currency
|
|
Exchange rate (1)
|
|
Total
06.30.21
|
|
Total
12.31.20
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
Other receivables
|
|
USD
|
|
1
|
|
95.720
|
|
96
|
|
632
|
|
|
JPY
|
|
-
|
|
0.862
|
|
-
|
|
56
|
Cash and cash equivalents
|
|
USD
|
|
13
|
|
95.720
|
|
1,244
|
|
1,792
|
TOTAL CURRENT ASSETS
|
|
|
|
|
|
|
|
1,340
|
|
2,480
|
TOTAL ASSETS
|
|
|
|
|
|
|
|
1,340
|
|
2,480
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
USD
|
|
98
|
|
95.720
|
|
9,379
|
|
10,345
|
TOTAL NON-CURRENT LIABILITIES
|
|
|
|
|
|
|
|
9,379
|
|
10,345
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
Trade payables
|
|
USD
|
|
9
|
|
95.720
|
|
861
|
|
1,205
|
Borrowings
|
|
USD
|
|
2
|
|
95.720
|
|
163
|
|
179
|
Other payables
|
|
USD
|
|
9
|
|
95.720
|
|
861
|
|
948
|
TOTAL CURRENT LIABILITIES
|
|
|
|
|
|
|
|
1,885
|
|
2,332
|
TOTAL LIABILITIES
|
|
|
|
|
|
|
|
11,264
|
|
12,677
|
|
(1)
|
The exchange rates used are the BNA exchange
rates in effect as of June 30, 2021 for US Dollars (USD).
|
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).
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
The table below shows the Company’s
financial assets and liabilities measured at fair value as of June 30, 2021 and December 31, 2020:
|
|
LEVEL 1
|
|
LEVEL 2
|
|
|
TOTAL
|
|
|
|
|
|
|
|
|
At June 30, 2021
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss:
|
|
|
|
|
|
|
|
Government bonds
|
|
2,598
|
|
-
|
|
|
2,598
|
Money market funds
|
|
2,001
|
|
-
|
|
|
2,001
|
Cash and cash equivalents:
|
|
|
|
|
|
|
|
Money market funds
|
|
6,958
|
|
-
|
|
|
6,958
|
Total assets
|
|
11,557
|
|
-
|
|
|
11,557
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Derivative financial instruments
|
|
-
|
|
1
|
|
|
1
|
Total liabilities
|
|
-
|
|
1
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2020
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss:
|
|
|
|
|
|
|
|
Government bonds
|
|
2,782
|
|
-
|
|
|
2,782
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
Money market funds
|
|
3,412
|
|
-
|
|
|
3,412
|
Total assets
|
|
6,194
|
|
-
|
|
|
6,194
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Derivative financial instruments
|
|
-
|
|
1
|
|
|
1
|
Total liabilities
|
|
-
|
|
1
|
|
|
1
|
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 mainly related to its 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, 2021 and December 31, 2020 all 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.
|
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
judgment 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 permanently
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.
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 sources of estimation uncertainty used with respect to those applied in the Financial Statements for the year ended December 31,
2020.
|
Note
|
7 |
Contingencies and lawsuits
|
As of June 30, 2021, the provision for contingencies
has been recorded to face situations existing at the end of each period that may result in a loss for the Company if one or more future
events occurred or failed to occur.
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, 2020, except for the following.
- Federal Administration of Public Revenues
(“AFIP”) – Difference in contribution rate to the Single Social Security System (“SUSS”) (executive order
814/2001) for fiscal periods 12/2011 to 11/2019
On July 6, 2021, the Company filed an appeal
to the National Social Security Court of Appeals against AFIP Resolution No. 1740/2021 that dismissed the presentation made by edenor
in relation to the assessment of a debt in connection with contributions to Argentina’s Integrated Social Security System, relating
to the January 2017-June 2019 period, for differences detected due to the use of the rate set forth in Section 2 Sub-section B) 2001 (17%),
when the applicable rate, according to the AFIP, is that mentioned in Section 2 Sub-section a) (21%), of Executive Order No. 814.
Additionally, on April 8, 2021, the Company
was notified by the AFIP of a new resolution pursuant to which a debt had been assessed for the same concept, relating to the July 2019-November
2019 period.
This new notification, in adition to the
one received on July 12, 2018 relating to the December 2011-December 2016 period, is still at administrative stage.
The Company’s Management believes that
the application of the 17% rate is correct. In this regard, in accordance with the analysis performed, it is reasonable that “minority
government-owned corporations (sociedades anónimas con simple participación estatal) governed by Law No. 19,550”
be understood to mean all those corporations (sociedades anónimas) in which the government has a minority stake, whatever
the reason why such stake has been acquired. Therefore, included therein are the shareholdings that the National Social Security Administration
(“ANSES”) has in certain corporations, among which the Company is included.
On August 3, 2018, December 23, 2019, and
April 21, 2021, the Company filed appeals against the three resolutions.
Under such conditions and in connection with
the aforementioned AFIP’s assessment, in the Company’s opinion and that of its legal advisors, there exist sufficient and
solid arguments to make its position prevail at the judicial stage. Consequently, no liabilities whatsoever have been recorded by the
Company for this matter as of June 30, 2021.
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
- National Regulatory Authority for the
Distribution of Electricity, Proceeding for the Determination of a Claim” (case file No. 16/2020)
On May 4, 2021, the Company was served notice
of a complaint filed by the ENRE in connection with edenor‘s compliance with captions 9.2.1 and 9.2.2 of the “Agreement
on the Renegotiation of the Concession Agreement” for differences arising from the date of payment of certain penalties included
therein.
At the date of issuance of these condensed
interim financial statements, the Company has answered the complaint, with the case being currently in process.
The Company believes that it has sufficient
authority under the Agreement on the Renegotiation of the Concession Agreement to support the payment made under such conditions and considers
it to be in compliance with the law, to have an extinguishing effect and to have implied no damage to the users. In this regard, the Company
and its legal advisors believe that there exist sufficient and solid arguments to make its position prevail at the judicial stage; therefore,
no liabilities whatsoever for this concept have been recorded as of June 30, 2021.
|
Note
|
8 |
Revenue from sales and energy purchases
|
We provide below a brief description of the
main services provided by the Company:
Sales of electricity
Small demand segment: Residential use and public lighting (T1)
|
Relates to the highest demand average recorded over 15 consecutive minutes that is less than 10 kilowatts. In turn, this segment is subdivided into different residential categories based on consumption. This segment also includes a category for public lighting. Users are categorized by the Company according to their consumption.
|
Medium demand segment: Commercial and industrial customers (T2)
|
Relates to the highest demand average recorded over 15 consecutive minutes that is equal to or greater than 10 Kilowatts but less than 50 Kilowatts. The Company agrees with the user the supply capacity.
|
Large demand segment (T3)
|
Relates to the highest demand average recorded over 15 consecutive minutes that is greater than 50 Kilowatts. In turn, this segment is subdivided into categories according to the supply voltage -low, medium or high-, from voltages of up to 1 Kilovolt to voltages greater than 66 Kilovolts.
|
Other: (Shantytowns/
Wheeling system)
|
Revenue is recognized to the extent that a renewal of the Framework Agreement has been formalized for the period in which the service was accrued. In the case of the service related to the Wheeling system, revenue is recognized when the Company allows third parties (generators and large users) to access to the available transmission capacity within its distribution system upon payment of a wheeling fee.
|
Other services
Right of use of poles
|
Revenue is recognized to the extent that the rental value of the right of use of the poles used by the Company’s electricity network has been agreed upon for the benefit of third parties.
|
Connection and reconnection charges
|
Relate to revenue accrued for the carrying out of the electricity supply connection of new customers or the reconnection of already existing users.
|
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
Energy purchases
Energy purchase
|
The Company bills its users the cost of its purchases of energy, which includes charges for purchases of energy and power. The Company purchases electric power at seasonal prices approved by the ENRE. The price of the Company’s electric power reflects the costs of transmission and other regulatory charges.
|
Energy
losses
|
Energy losses are equivalent to the difference between energy purchased and energy sold. These losses can be classified into technical and non-technical losses. Technical losses represent the energy lost during transmission and distribution within the network as a consequence of the natural heating of the conductors and transformers that carry electricity from power generation plants to users. Non-technical losses represent the remainder of the Company’s energy losses and are mainly due to the illegal use of its services or the theft of energy. Energy losses require that the Company purchase additional energy in order to meet the demand and its Concession Agreement allows it to recover from its users the cost of these purchases up to a loss factor specified in its concession for each rate category. The current loss factor recognized in the tariff by virtue of its concession amounts to approximately 9.1%.
|
|
|
06.30.21
|
|
06.30.20
|
|
|
GWh
|
|
$
|
|
GWh
|
|
$
|
Sales of electricity
|
|
|
|
|
|
|
|
|
Small demand segment: Residential use and public lighting (T1)
|
|
6,085
|
|
28,393
|
|
5,746
|
|
36,955
|
Medium demand segment: Commercial and industrial (T2)
|
|
711
|
|
5,287
|
|
700
|
|
7,115
|
Large demand segment (T3)
|
|
1,714
|
|
11,150
|
|
1,614
|
|
13,394
|
Other: (Shantytowns/Wheeling system)
|
|
2,164
|
|
2,044
|
|
1,934
|
|
1,770
|
Subtotal - Sales of electricity
|
|
10,674
|
|
46,874
|
|
9,994
|
|
59,234
|
|
|
|
|
|
|
|
|
|
Other services
|
|
|
|
|
|
|
|
|
Right of use of poles
|
|
|
|
247
|
|
|
|
239
|
Connection and reconnection charges
|
|
|
27
|
|
|
|
40
|
Subtotal - Other services
|
|
|
|
274
|
|
|
|
279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total - Revenue
|
|
|
|
47,148
|
|
|
|
59,513
|
|
|
06.30.21
|
|
06.30.20
|
|
|
GWh
|
|
$
|
|
GWh
|
|
$
|
|
|
|
|
|
|
|
|
|
Energy purchases (1)
|
|
12,947
|
|
(29,557)
|
|
12,278
|
|
(38,051)
|
|
(1)
|
As of June 30, 2021 and 2020, includes technical
and non-technical energy losses for 2,273 GWh and 2,284 GWh, respectively.
|
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
|
Note
|
9 |
Expenses by nature
|
The detail of expenses by nature is as follows:
Expenses by nature at 06.30.21
|
Description
|
|
Transmission and distribution expenses
|
|
Selling expenses
|
|
Administrative expenses
|
|
Total
|
Salaries and social security taxes
|
|
4,609
|
|
740
|
|
1,073
|
|
6,422
|
Pension plans
|
|
323
|
|
52
|
|
75
|
|
450
|
Communications expenses
|
|
117
|
|
245
|
|
-
|
|
362
|
Allowance for the impairment of trade and other receivables
|
|
-
|
|
1,057
|
|
-
|
|
1,057
|
Supplies consumption
|
|
813
|
|
-
|
|
96
|
|
909
|
Leases and insurance
|
|
-
|
|
1
|
|
206
|
|
207
|
Security service
|
|
168
|
|
12
|
|
66
|
|
246
|
Fees and remuneration for services
|
|
2,188
|
|
1,247
|
|
948
|
|
4,383
|
Public relations and marketing
|
|
-
|
|
5
|
|
-
|
|
5
|
Advertising and sponsorship
|
|
-
|
|
2
|
|
-
|
|
2
|
Depreciation of property, plants and
equipments
|
2,967
|
|
442
|
|
363
|
|
3,772
|
Depreciation of right-of-use asset
|
28
|
|
55
|
|
193
|
|
276
|
Directors and Supervisory Committee
members’ fees
|
-
|
|
-
|
|
18
|
|
18
|
ENRE penalties
|
|
277
|
|
526
|
|
-
|
|
803
|
Taxes and charges
|
|
-
|
|
651
|
|
35
|
|
686
|
Other
|
|
-
|
|
-
|
|
16
|
|
16
|
At 06.30.21
|
|
11,490
|
|
5,035
|
|
3,089
|
|
19,614
|
|
(1)
|
Includes recovery of technical service quality-related
penalties for $ 286.
|
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, 2021 for $ 882.9.
Expenses by nature at 06.30.20
|
Description
|
|
Transmission and distribution expenses
|
|
Selling expenses
|
|
Administrative expenses
|
|
Total
|
Salaries and social security taxes
|
|
4,948
|
|
784
|
|
1,020
|
|
6,752
|
Pension plans
|
|
298
|
|
47
|
|
61
|
|
406
|
Communications expenses
|
|
81
|
|
283
|
|
-
|
|
364
|
Allowance for the impairment of trade and other receivables
|
|
-
|
|
2,855
|
|
-
|
|
2,855
|
Supplies consumption
|
|
1,245
|
|
-
|
|
110
|
|
1,355
|
Leases and insurance
|
|
-
|
|
-
|
|
188
|
|
188
|
Security service
|
|
170
|
|
27
|
|
18
|
|
215
|
Fees and remuneration for services
|
|
2,343
|
|
1,187
|
|
814
|
|
4,344
|
Public relations and marketing
|
|
-
|
|
-
|
|
18
|
|
18
|
Advertising and sponsorship
|
|
-
|
|
-
|
|
9
|
|
9
|
Reimbursements to personnel
|
|
-
|
|
-
|
|
1
|
|
1
|
Depreciation of property, plants and equipments
|
3,226
|
|
481
|
|
394
|
|
4,101
|
Depreciation of right-of-use asset
|
|
19
|
|
38
|
|
133
|
|
190
|
Directors and Supervisory Committee
members’ fees
|
-
|
|
-
|
|
22
|
|
22
|
ENRE penalties (2)
|
|
254
|
|
233
|
|
-
|
|
487
|
Taxes and charges
|
|
-
|
|
882
|
|
41
|
|
923
|
Other
|
|
-
|
|
-
|
|
6
|
|
6
|
At 06.30.20
|
|
12,584
|
|
6,817
|
|
2,835
|
|
22,236
|
|
(2)
|
Includes recovery of technical service quality-related
penalties for $ 549.8.
|
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, 2020 for $ 889.3.
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
|
Note
|
10 |
Other operating income (expense), net
|
|
Note
|
|
06.30.21
|
|
06.30.20
|
Other operating income
|
|
|
|
|
|
Income from customer surcharges
|
|
|
851
|
|
929
|
Commissions on municipal taxes collection
|
|
|
154
|
|
129
|
Fines to suppliers
|
|
|
28
|
|
71
|
Services provided to third parties
|
|
|
113
|
|
164
|
Related parties
|
30.a
|
|
-
|
|
63
|
Recovery of provision for contingences
|
|
|
-
|
|
281
|
Income from non-reimbursable customer
contributions
|
|
|
20
|
|
7
|
Expense recovery
|
|
|
26
|
|
-
|
Construction plan Framework agreement
|
2.c
|
|
809
|
|
-
|
Other
|
|
|
53
|
|
56
|
Total other operating income
|
|
|
2,054
|
|
1,700
|
|
|
|
|
|
|
Other operating expense
|
|
|
|
|
|
Gratifications for services
|
|
|
(86)
|
|
(38)
|
Cost for services provided to third parties
|
|
|
(32)
|
|
(59)
|
Severance paid
|
|
|
(14)
|
|
(14)
|
Debit and Credit Tax
|
|
|
(434)
|
|
(519)
|
Provision for contingencies
|
|
|
(945)
|
|
(415)
|
Disposals of property, plant and equipment
|
|
(138)
|
|
(90)
|
Other
|
|
|
(22)
|
|
(11)
|
Total other operating expense
|
|
|
(1,671)
|
|
(1,146)
|
|
Note
|
11 | Net
financial costs
|
|
|
06.30.21
|
|
06.30.20
|
Financial income
|
|
|
|
|
Financial interest
|
|
22
|
|
18
|
Total financial income
|
|
22
|
|
18
|
|
|
|
|
|
Financial costs
|
|
|
|
|
Commercial interest
|
|
(7,828)
|
|
(2,022)
|
Interest and other
|
|
(2,350)
|
|
(2,270)
|
Fiscal interest
|
|
(2)
|
|
(108)
|
Bank fees and expenses
|
|
(3)
|
|
(4)
|
Total financial costs
|
|
(10,183)
|
|
(4,404)
|
|
|
|
|
|
Other financial results
|
|
|
|
|
Changes in fair value of financial assets
|
|
1,281
|
|
94
|
Net gain from the cancelattion of
Corporate Notes
|
|
3
|
|
67
|
Exchange differences
|
|
(919)
|
|
(2,056)
|
Adjustment to present value of receivables
|
|
(62)
|
|
(112)
|
Recovery of provision for credit RDSA (Note 32)
|
|
482
|
|
-
|
Other financial costs
|
|
(127)
|
|
(116)
|
Total other financial costs
|
|
658
|
|
(2,123)
|
Total net financial costs
|
|
(9,503)
|
|
(6,509)
|
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
|
Note
|
12 |
Basic and diluted (loss) profit per share
|
Basic
The basic loss per share is calculated by
dividing the loss attributable to the holders of the Company’s equity instruments by the weighted average number of common shares
outstanding as of June 30, 2021 and 2020, excluding common shares purchased by the Company and held as treasury shares.
The basic loss per share coincides with the
diluted loss per share, inasmuch as there exist neither preferred shares nor Corporate Notes convertible into common shares.
|
|
06.30.21
|
|
06.30.20
|
Loss for the period attributable to the owners of the Company
|
|
(11,636)
|
|
(2,692)
|
Weighted average number of common shares outstanding
|
|
875
|
|
875
|
Basic and diluted loss per share – in pesos
|
|
(13.30)
|
|
(3.08)
|
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
|
Note
|
13 |
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
|
At 12.31.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
4,565
|
|
39,408
|
|
100,403
|
|
43,875
|
|
7,853
|
|
35,117
|
|
404
|
|
231,625
|
Accumulated depreciation
|
|
(896)
|
|
(13,188)
|
|
(38,818)
|
|
(17,154)
|
|
(5,141)
|
|
-
|
|
-
|
|
(75,197)
|
Net amount
|
|
3,669
|
|
26,220
|
|
61,585
|
|
26,721
|
|
2,712
|
|
35,117
|
|
404
|
|
156,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions
|
|
9
|
|
1
|
|
24
|
|
189
|
|
585
|
|
5,224
|
|
138
|
|
6,170
|
Disposals
|
|
(6)
|
|
-
|
|
(13)
|
|
(117)
|
|
(2)
|
|
-
|
|
-
|
|
(138)
|
Transfers
|
|
131
|
|
1,556
|
|
2,624
|
|
983
|
|
186
|
|
(5,513)
|
|
33
|
|
-
|
Depreciation for the period
|
(58)
|
|
(716)
|
|
(1,753)
|
|
(897)
|
|
(348)
|
|
-
|
|
-
|
|
(3,772)
|
Net amount 06.30.21
|
|
3,745
|
|
27,061
|
|
62,467
|
|
26,879
|
|
3,133
|
|
34,828
|
|
575
|
|
158,688
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 06.30.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
4,698
|
|
40,965
|
|
102,971
|
|
44,866
|
|
8,613
|
|
34,828
|
|
575
|
|
237,516
|
Accumulated depreciation
|
|
(953)
|
|
(13,904)
|
|
(40,504)
|
|
(17,987)
|
|
(5,480)
|
|
-
|
|
-
|
|
(78,828)
|
Net amount
|
|
3,745
|
|
27,061
|
|
62,467
|
|
26,879
|
|
3,133
|
|
34,828
|
|
575
|
|
158,688
|
|
·
|
During the period ended June 30, 2021, the Company capitalized as direct
own costs $ 882.9.
|
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
|
|
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
|
At 12.31.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
4,077
|
|
37,565
|
|
106,944
|
|
45,565
|
|
6,819
|
|
38,532
|
|
414
|
|
239,916
|
Accumulated depreciation
|
|
(780)
|
|
(11,698)
|
|
(35,172)
|
|
(15,268)
|
|
(4,317)
|
|
-
|
|
-
|
|
(67,235)
|
Net amount
|
|
3,297
|
|
25,867
|
|
71,772
|
|
30,297
|
|
2,502
|
|
38,532
|
|
414
|
|
172,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions
|
|
11
|
|
1,393
|
|
23
|
|
115
|
|
218
|
|
4,024
|
|
131
|
|
5,915
|
Disposals
|
|
-
|
|
(2)
|
|
(17)
|
|
(71)
|
|
-
|
|
-
|
|
-
|
|
(90)
|
Transfers
|
|
226
|
|
4,341
|
|
3,397
|
|
2,855
|
|
228
|
|
(10,907)
|
|
(140)
|
|
-
|
Depreciation for the period
|
(49)
|
|
(696)
|
|
(1,911)
|
|
(963)
|
|
(482)
|
|
-
|
|
-
|
|
(4,101)
|
Net amount 06.30.20
|
|
3,485
|
|
30,903
|
|
73,264
|
|
32,233
|
|
2,466
|
|
31,649
|
|
405
|
|
174,405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 06.30.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
4,316
|
|
43,294
|
|
110,267
|
|
48,439
|
|
7,265
|
|
31,649
|
|
405
|
|
245,635
|
Accumulated depreciation
|
|
(831)
|
|
(12,391)
|
|
(37,003)
|
|
(16,206)
|
|
(4,799)
|
|
-
|
|
-
|
|
(71,230)
|
Net amount
|
|
3,485
|
|
30,903
|
|
73,264
|
|
32,233
|
|
2,466
|
|
31,649
|
|
405
|
|
174,405
|
|
·
|
During the period ended June 30, 2020, the Company capitalized as direct
own costs $ 889.3.
|
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
|
Note
|
14 |
Right-of-use asset
|
The leases recognized as right-of-use assets in accordance with
IFRS 16 are disclosed below:
|
06.30.21
|
|
12.31.20
|
Total right-of-use asset by leases
|
384
|
|
351
|
The development of right-of-use assets is as follows:
|
06.30.21
|
|
06.30.20
|
Balance at beginning of period
|
351
|
|
445
|
Additions
|
309
|
|
132
|
Depreciation for the period
|
(276)
|
|
(190)
|
Balance at end of the period
|
384
|
|
387
|
|
|
06.30.21
|
|
12.31.20
|
|
|
|
|
|
Supplies and spare-parts
|
|
2,586
|
|
2,302
|
Advance to suppliers
|
|
1
|
|
43
|
Total inventories
|
|
2,587
|
|
2,345
|
|
Note
|
16 | Other
receivables
|
|
Note
|
|
06.30.21
|
|
12.31.20
|
Non-current:
|
|
|
|
|
|
Credit for Real estate asset
|
32
|
|
32
|
|
2,694
|
Financial credit
|
|
|
9
|
|
17
|
Related parties
|
30.d
|
|
3
|
|
4
|
Allowance for the impairment of other receivables
|
|
|
-
|
|
(2,662)
|
Total non-current
|
|
|
44
|
|
53
|
|
|
|
|
|
|
Current:
|
|
|
|
|
|
Credit for Real estate asset
|
32
|
|
22
|
|
45
|
Judicial deposits
|
|
|
72
|
|
96
|
Security deposits
|
|
|
47
|
|
48
|
Prepaid expenses
|
|
|
129
|
|
53
|
Advances to personnel
|
|
|
2
|
|
3
|
Financial credit
|
|
|
14
|
|
23
|
Advances to suppliers
|
|
|
36
|
|
91
|
Tax credits
|
|
|
23
|
|
408
|
Related parties
|
30.d
|
|
1
|
|
23
|
Other
|
2
|
|
1
|
Subtotal
|
|
|
348
|
|
791
|
|
|
|
|
|
|
Debtors for complementary activities
|
|
|
102
|
|
86
|
Allowance for the impairment of other receivables
|
|
|
(76)
|
|
(96)
|
Total current
|
|
|
374
|
|
781
|
The value of the Company’s other financial
receivables approximates their fair value.
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
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:
|
|
|
06.30.21
|
|
06.30.20
|
Balance at beginning of period
|
|
|
2,758
|
|
3,735
|
Increase
|
|
|
3
|
|
68
|
Decrease
|
|
|
(1,726)
|
|
-
|
Result from exposure to inlfation
|
|
|
(473)
|
|
(449)
|
Recovery
|
|
|
(486)
|
|
(99)
|
Balance at end of the period
|
|
|
76
|
|
3,255
|
|
Note
|
17 | Trade
receivables
|
|
|
|
06.30.21
|
|
06.30.20
|
Current:
|
|
|
|
|
|
Sales of electricity – Billed
|
|
|
13,301
|
|
15,408
|
Framework Agreement (1)
|
|
|
9
|
|
11
|
Receivables in litigation
|
|
|
295
|
|
375
|
Allowance for the impairment of trade receivables
|
|
|
(5,418)
|
|
(5,766)
|
Subtotal
|
|
|
8,187
|
|
10,028
|
|
|
|
|
|
|
Sales of electricity – Unbilled
|
|
|
8,358
|
|
7,278
|
PBA & CABA government credit
|
|
|
783
|
|
412
|
Fee payable for the expansion of the transportation and others
|
|
|
2
|
|
3
|
Total current
|
|
|
17,330
|
|
17,721
|
|
(1)
|
Additionally,
as disclosed in Note 2.f) to the Financial Statements as of December 31, 2020, the Province of Buenos Aires and the Federal Government
have a debt with the Company, for the consumption of electricity by low-income neighborhoods and shantytowns. The indicated amount does
not include interest and no revenue for this concept has been recognized by the Company.
|
The value of the Company’s trade receivables
approximates their fair value.
The roll forward of the allowance for the impairment of trade
receivables is as follows:
|
|
|
06.30.21
|
|
06.30.20
|
Balance at beginning of the period
|
|
|
5,766
|
|
2,636
|
Increase
|
|
|
1,058
|
|
2,886
|
Decrease
|
|
|
(110)
|
|
(475)
|
Result from exposure to inlfation
|
|
|
(1,296)
|
|
(342)
|
Balance at end of the period
|
|
|
5,418
|
|
4,705
|
|
Note
|
18 | Financial
assets at amortized cost
|
|
|
|
06.30.21
|
|
12.31.20
|
Non-current
|
|
|
|
|
|
Government bonds
|
|
|
80
|
|
300
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
Government bonds
|
|
|
242
|
|
97
|
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
|
Note
|
19 |
Financial assets at fair value through profit or
loss
|
|
|
|
06.30.21
|
|
12.31.20
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
Government bonds
|
|
|
2,598
|
|
2,782
|
Money market funds
|
|
|
2,001
|
|
-
|
Total current
|
|
|
4,599
|
|
2,782
|
|
Note
|
20 | Cash
and cash equivalents
|
|
|
06.30.21
|
|
12.31.20
|
|
06.30.20
|
Cash and banks
|
|
1,599
|
|
2,051
|
|
3,670
|
Money market funds
|
|
6,958
|
|
3,412
|
|
4,843
|
Total cash and cash equivalents
|
|
8,557
|
|
5,463
|
|
8,513
|
|
(1)
|
As of June 30, 2021, $691 is restricted for
its use as stipulated in the Agreement on the Development of the Preventive and Corrective Maintenance Work Plan for the Electricity Distribution
Network of the Metropolitan Area. Note 2.c).
|
|
Note
|
21 | Share
capital and additional paid-in capital
|
|
|
Share capital
|
|
Additional paid-in capital
|
|
Total
|
Balance at December 31, 2019 and 2020
|
|
47,701
|
|
631
|
|
48,332
|
|
|
|
|
|
|
|
Payment of Other reserve constitution - Share-bases compensation plan (Note 21)
|
|
-
|
|
5
|
|
5
|
Balance at June 30, 2021
|
|
47,701
|
|
636
|
|
48,337
|
As of June 30, 2021, 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.
On April 15, 2021, the Company awarded, as
part of the Share-based Compensation Plan, 246,451 treasury shares to executive directors, managers and other personnel holding key executive
positions in the Company.
|
Note
|
22 | 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.
If the Company’s Debt Ratio were higher
than 3, the negative covenants included in the Corporate Notes program, which establish, among other issues, the Company’s impossibility
to make certain payments, such as dividends, would apply.
Additionally, in accordance with Title IV,
Chapter III, section 3.11.c of the CNV, the amounts subject to distribution will be restricted to the amount equivalent to the acquisition
cost of the Company’s own shares.
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
|
|
|
06.30.21
|
|
12.31.20
|
Non-current
|
|
|
|
|
|
Customer guarantees
|
|
|
316
|
|
344
|
Customer contributions
|
|
|
285
|
|
309
|
Total non-current
|
|
|
601
|
|
653
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
Payables for purchase of electricity - CAMMESA
|
|
|
34,632
|
|
27,228
|
Provision for unbilled electricity purchases - CAMMESA
|
|
|
9,697
|
|
7,871
|
Suppliers
|
|
|
6,122
|
|
5,710
|
Advance to customer
|
|
|
475
|
|
452
|
Customer contributions
|
|
|
31
|
|
40
|
Discounts to customers
|
|
|
37
|
|
47
|
Total current
|
|
|
50,994
|
|
41,348
|
The fair values of non-current customer contributions
as of June 30, 2021 and December 31, 2020 amount to $ 51.0 and $ 53.6, respectively. The fair values are determined based on estimated
discounted cash flows in accordance with a representative market rate for this type of transactions. The applicable fair value category
is Level 3.
The value of the rest of the financial liabilities
included in the Company’s trade payables approximates their fair value.
|
Note
|
|
06.30.21
|
|
12.31.20
|
Non-current
|
|
|
|
|
|
ENRE penalties and discounts
|
|
|
7,939
|
|
7,795
|
Financial Lease Liability(1)
|
|
|
80
|
|
76
|
Total Non-current
|
|
|
8,019
|
|
7,871
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
ENRE penalties and discounts
|
|
|
3,197
|
|
3,350
|
Construction plan Framework agreement
|
2.c
|
|
691
|
|
-
|
Related parties
|
30.d
|
|
10
|
|
18
|
Advances for works to be performed
|
|
|
13
|
|
16
|
Financial Lease Liability (1)
|
|
|
335
|
|
371
|
Other
|
|
|
1
|
|
1
|
Total Current
|
|
|
4,247
|
|
3,756
|
The value of the Company’s other financial
payables approximates their fair value.
|
(1)
|
The development of the financial lease liability
is as follows:
|
|
06.30.21
|
|
06.30.20
|
Balance at beginning of period
|
447
|
|
378
|
Increase
|
309
|
|
132
|
Payments
|
(500)
|
|
(223)
|
Exchange difference and gain on net monetary position
|
159
|
|
242
|
Balance at end of the period
|
415
|
|
529
|
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
|
|
06.30.21
|
|
12.31.20
|
Non-current
|
|
|
|
|
Corporate notes (1)
|
|
9,379
|
|
10,345
|
|
|
|
|
|
Current
|
|
|
|
|
Interest from corporate notes
|
|
163
|
|
179
|
|
(1)
|
Net of debt issuance, repurchase and redemption
expenses.
|
The fair values of the Company’s non-current
borrowings as of June 30, 2021 and December 31, 2020 amount approximately to $ 8,183 and $ 8,488.8, respectively. Such values were determined
on the basis of the estimated market price of the Company’s Corporate Notes at the end of each period. The applicable fair value
category is Level 1.
On July 16, 2021, within the framework of
the change of control of the Company (Note 33), and as provided for in article 10.3 of the class 9 Corporate Notes prospectus, which provides
that each holder of these instruments will be entitled to require that the Company repurchase all or any part thereof by submitting an
Offer due to Change of Control, the Company’s Board of Directors approved and informed the markets of the launching of the consent
solicitation for consents of the holders of Corporate Notes due 2022.
In this regard, on July 30, 2021, the Company,
given the majority support of the holders, obtained approval of the consent solicitation issued on July 16. Thus, edenor maintains
the financial terms set forth in the respective Corporate Notes.
Moreover, in the month of April, 2021, the
Company paid class 9 Corporate Notes for a total of USD 110,000 nominal value, equivalent to $ 10.5, received as collection of receivables.
|
Note
|
26 | Salaries
and social security taxes payable
|
|
|
06.30.21
|
|
12.31.20
|
Non-current
|
|
|
|
|
Early retirements payable
|
|
7
|
|
30
|
Seniority-based bonus
|
|
394
|
|
351
|
Total non-current
|
|
401
|
|
381
|
|
|
|
|
|
Current
|
|
|
|
|
Salaries payable and provisions
|
|
2,891
|
|
4,300
|
Social security payable
|
|
332
|
|
344
|
Early retirements payable
|
|
28
|
|
33
|
Total current
|
|
3,251
|
|
4,677
|
The value of the Company’s salaries
and social security taxes payable approximates their fair value.
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
|
Note
|
27 |
Income tax and deferred tax
|
The detail of deferred tax assets and liabilities is as follows:
|
06.30.21
|
|
12.31.20
|
Deferred tax assets
|
|
|
|
Tax loss carry forward
|
-
|
|
310
|
Trade receivables and other receivables
|
2,011
|
|
1,692
|
Trade payables and other payables
|
1,086
|
|
849
|
Salaries and social security payable
|
470
|
|
320
|
Benefit plans
|
88
|
|
95
|
Tax liabilities
|
45
|
|
23
|
Provisions
|
1,255
|
|
1,024
|
Deferred tax asset
|
4,955
|
|
4,313
|
|
|
|
|
Deferred tax liabilities
|
|
|
|
Property, plants and equipments
|
(40,985)
|
|
(29,283)
|
Financial assets at fair value through profit or loss
|
(522)
|
|
(373)
|
Borrowings
|
(2)
|
|
(3)
|
Adjustment effect on tax inflation
|
(4,172)
|
|
(4,345)
|
Deferred tax liability
|
(45,681)
|
|
(34,004)
|
|
|
|
|
Net deferred tax liability
|
(40,726)
|
|
(29,691)
|
The detail of the income tax expense for
the period includes two effects: (i) the current tax for the year payable in accordance with the tax legislation applicable to the Company;
(ii) the effect of applying the deferred tax method on the temporary differences arising from the valuation of assets and liabilities
in accordance with tax and accounting criteria.
On June 16, 2021, by means of Law No. 27,630, a change,
among other measures, was introduced in the corporate income tax rate, applicable to fiscal years beginning from January 1, 2021. The
tax will be determined according to the following scale:
Accumulated net taxable income
|
Amount to be paid $
|
Plus
%
|
On the amount exceeding $
|
From more than $
|
To $
|
$ 0
|
$ 5
|
$ 0
|
25%
|
$ 0
|
$ 5
|
$ 50
|
$ 1,25
|
30%
|
$ 5
|
$ 50
|
onwards
|
$ 14,75
|
35%
|
$ 50
|
The amounts of the detailed scale will be adjusted annually,
beginning January 1, 2022, taking into consideration the annual variation of the Consumer Price Index (CPI) provided by the National Institute
of Statistics and Census (INDEC).
Based on the volume of its transactions and
the taxable result for the period, the Company applied the 35% rate to calculate the current Income tax expense and determine the deferred
tax assets and liabilities.
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
The detail of the income tax expense is as follows:
|
|
06.30.21
|
|
06.30.20
|
Deferred tax
|
|
(3,786)
|
|
(1,163)
|
Change in the income tax rate
|
|
(7,473)
|
|
951
|
Current tax
|
|
(928)
|
|
(551)
|
Difference between provision and tax return
|
|
224
|
|
(90)
|
Income tax expense
|
|
(11,963)
|
|
(853)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
06.30.21
|
|
06.30.20
|
Profit for the period before taxes
|
|
327
|
|
(1,839)
|
Applicable tax rate
|
|
35%
|
|
30%
|
Result for the period at the tax rate
|
|
(114)
|
|
552
|
Loss on net monetary position
|
|
(1,666)
|
|
(762)
|
Adjustment effect on tax inflation
|
|
(2,913)
|
|
(1,410)
|
Income tax expense
|
|
(21)
|
|
(94)
|
Difference between provision and tax return
|
|
224
|
|
(90)
|
Change in the income tax rate
|
|
(7,473)
|
|
951
|
Income tax expense
|
|
(11,963)
|
|
(853)
|
The detail of the income tax payable is as follows:
|
|
06.30.21
|
|
12.31.20
|
Current
|
|
|
|
|
Provision of income tax payable
|
|
928
|
|
-
|
Tax withholdings
|
|
(558)
|
|
-
|
Total current
|
|
370
|
|
-
|
|
Note
|
28 | Tax
liabilities
|
|
|
06.30.21
|
|
12.31.20
|
Non-current
|
|
|
|
|
Current
|
|
|
|
|
Provincial, municipal and federal contributions and taxes
|
|
305
|
|
574
|
VAT payable
|
|
791
|
|
1,153
|
Tax withholdings
|
|
185
|
|
214
|
SUSS withholdings
|
11
|
|
13
|
Municipal taxes
|
|
176
|
|
291
|
Total current
|
|
1,468
|
|
2,245
|
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
|
|
Non-current liabilities
|
|
Current liabilities
|
|
|
Contingencies
|
At 12.31.20
|
|
3,044
|
|
448
|
|
|
|
|
|
Increases
|
|
698
|
|
247
|
Decreases
|
|
-
|
|
(185)
|
Result from exposure to inflation for the period
|
|
(666)
|
|
(99)
|
At 06.30.21
|
|
3,076
|
|
411
|
|
|
|
|
|
At 12.31.19
|
|
3,516
|
|
365
|
Increases
|
|
279
|
|
27
|
Decreases
|
|
(75)
|
|
22
|
Recovery
|
|
(172)
|
|
-
|
Result from exposure to inflation for the period
|
|
(415)
|
|
(45)
|
At 06.30.20
|
|
3,133
|
|
369
|
|
Note
|
30 | Related-party
transactions
|
The following transactions were carried out with related parties:
Company
|
|
Concept
|
|
06.30.21
|
|
06.30.20
|
|
|
|
|
|
|
|
PESA
|
|
Impact study
|
|
-
|
|
4
|
SACDE
|
|
Reimbursement expenses
|
|
-
|
|
59
|
|
|
|
|
-
|
|
63
|
Company
|
|
Concept
|
|
06.30.21
|
|
06.30.20
|
|
|
|
|
|
|
|
PESA
|
|
Technical advisory services on financial matters
|
|
-
|
|
(127)
|
SACME
|
|
Operation and oversight of the electric power transmission system
|
|
(59)
|
|
(73)
|
OSV
|
|
Hiring life insurance for staff
|
|
-
|
|
(17)
|
SB&WM Abogados
|
|
Legal fees
|
|
(5)
|
|
-
|
FIDUS
|
|
Legal fees
|
|
-
|
|
(5)
|
ABELOVICH, POLANO& ASOC.
|
|
Legal fees
|
|
(1)
|
|
(1)
|
|
|
|
|
(65)
|
|
(223)
|
|
c.
|
Key Management personnel’s remuneration
|
|
|
06.30.21
|
|
06.30.20
|
|
|
|
|
|
Salaries
|
|
341
|
|
207
|
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
The balances with related parties are as follow:
|
d.
|
Receivables and payables
|
|
|
06.30.21
|
|
12.31.20
|
Other receivables - Non current
|
|
|
|
|
SACME
|
|
3
|
|
4
|
|
|
|
|
|
|
|
|
|
|
Other receivables - Current
|
|
|
|
|
FIDUS SGR
|
|
-
|
|
22
|
SACME
|
|
1
|
|
1
|
|
|
1
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other payables
|
|
|
|
|
SACME
|
|
(10)
|
|
(18)
|
(*) Balances held and transactions carried out as
of December 31 and June 30, 2020, respectively, with the companies that comprised the Company’s former controlling economic group
(Pampa Energía S.A.) are disclosed for comparative purposes.
|
Note
|
31 |
Ordinary and Extraordinary Shareholders’ Meeting
|
The Company Ordinary and Extraordinary Shareholders’
Meeting held on April 27, 2021 resolved, among other issues, the following:
|
-
|
To approve edenor’s Annual Report
and Financial Statements as of December 31, 2020;
|
|
-
|
To allocate the $ 17,698 loss for the year
ended December 31, 2020 (at the purchasing power of the currency at June 30, 2021 amounts to $ 22,163) to the partial absorption of the
Discretionary reserve, under the terms of section 70, 3rd paragraph, of Business Organizations Law No. 19,550.
|
|
-
|
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.
|
|
Note
|
32 |
Termination of agreement on real estate asset
|
With regard to the real estate asset to be
constructed, acquired by the Company in November 2015, the subsequent termination of the agreement due to RDSA’s default in August
2018 and the respective legal actions brought by the Company against the seller and the insurance company, and with respect to the settlement
agreement dated September 30, 2019 that the Company entered into with Aseguradora de Cauciones S.A., 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, 2020, except for the following:
In the months of April and July, 2021, the
Company received an additional payment for USD 200,000 relating to the USD 1 million receivable resulting from the agreement with Aseguradora
de Cauciones S.A., with the remaining balance thus amounting to USD 430,000, which will be collected in three quarterly installments according
to the new payment schedule agreed upon between the Company and the insurance company.
Furthermore, as of June 30, 2021, a gain
has been recognized on recovery of allowance for $ 482, which is disclosed in Other financial income (costs), resulting from edenor’s
acceptance of the “Offer for the Assignment of the Claim in litigation” made by Creaurban S.A.
CONDENSED INTERIM
FINANCIAL STATEMENTS
|
|
Note
|
33 |
Change of control
|
On December 28, 2020, Pampa Energía
S.A., the holder of 100% of edenor’s Class A shares, representing 51% of edenor‘s share capital, entered into
a share purchase and sale agreement, as the seller, with Empresa de Energía del Cono Sur S.A.
By virtue of such agreement, Pampa Energía
agreed, subject to certain conditions precedent such as the approval of both its shareholders’ meeting and the ENRE, to sell control
of edenor by transferring all the Class A Shares and votes in edenor.
In this regard, on February 17, 2021, the
Shareholders’ meeting of Pampa Energía approved the referred to transaction.
On June 23, 2021, by means of Resolution
No. 207/2021, the ENRE authorized Pampa Energía S.A. to transfer all the Class A shares, representing 51% of the Company’s
share capital and votes, to Empresa de Energía del Cono Sur S.A. in accordance with the share purchase and sale agreement entered
into on December 28, 2020.
The transfer of all the Class A shares, representing
51% of the Company’s share capital and votes owned by Pampa Energía S.A., in favor of Empresa de Energía del Cono
Sur S.A. was completed shortly afterwards on June 30, 2021,
Within this context, after the aforementioned
transfer, the Class A Directors tendered resignation; therefore, to fill the vacancies, the Company’s Supervisory Committee appointed
Messrs. Neil A. Bleasdale (Chairman), Esteban Macek (Vice-Chairman), Nicolás Mallo Huergo, Eduardo Vila, Edgardo Volosin, Federico
Zin and Mariano C. Lucero as Directors and Messrs. Hugo Quevedo, Mariano C. Libarona, Daniel O. Seppacuercia, Diego Hernán Pino,
Sebastián Álvarez and María Teresa Grieco as Alternate Directors.
Finally, as required by the regulations in
effect and within the time periods set forth therein, Empresa de Energía del Cono Sur S.A. will announce the launching of a mandatory
Public Tender Offer to all the holders of Class B and Class C common shares issued by the Company, including the holders of ADS in respect
of the underlying Class B common shares, in accordance with the provisions of General Resolution No. 779/2018 of the National Securities
Commission.
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”) including
the condensed interim statement of financial position as of June 30, 2021, the related condensed interim statement of comprehensive income
for the six and three months period ended June 30, 2021, 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 balances and other information related to fiscal year 2020 and its interim
periods, are an integral part of the financial statements mentioned above; therefore, they must be considered in connection with these
financial statements.
Board of Directors’ responsibility
The Board of Directors of the Company is responsible for the preparation and
presentation of these financial statements, under 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”.
Price Waterhouse & Co. S.R.L., Bouchard 557,
piso 8°, C1106ABG - Ciudad de Buenos Aires
T: +(54.11) 4850.6000, F: +(54.11) 4850.6100, www.pwc.com/ar
Price Waterhouse & Co. S.R.L. es una firma miembro de la red global de PricewaterhouseCoopers
International Limited (PwCIL). Cada una
de las firmas es una entidad legal separada que no actúa como mandataria de PwCIL ni de cualquier otra firma miembro de la red.
Auditors’ responsibility
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 condensed interim 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.
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.
Emphasis of matter paragraph
Without qualifying our opinion, we draw the attention to the situation explained
in Note 1 in relation to the economic and financial situation of Edenor S.A. The Company’s current economic and financial situation
raises substantial doubt about its ability to continue as a going concern.
Price Waterhouse & Co. S.R.L., Bouchard 557,
piso 8°, C1106ABG - Ciudad de Buenos Aires
T: +(54.11) 4850.6000, F: +(54.11) 4850.6100, www.pwc.com/ar
Price Waterhouse & Co. S.R.L. es una firma miembro de la red global de PricewaterhouseCoopers
International Limited (PwCIL). Cada una
de las firmas es una entidad legal separada que no actúa como mandataria de PwCIL ni de cualquier otra firma miembro de la red.
Reports on compliance with regulations in force
In accordance with current regulations, we report that, in connection with Empresa
Distribuidora y Comercializadora Norte Sociedad Anónima (Edenor S.A.):
a)
|
except for its lack of transcription to the book “Inventories and Balances”, the condensed interim financial statements of
Edenor S.A. comply, in what is within our competence, with the provisions of the General Companies Law and in the relevant resolutions
of the National Securities Commission;
|
b)
|
the condensed interim financial statements of Edenor S.A. arise from accounting records kept in their formal aspects in accordance with
legal regulations, except for their lack of transcription to the Inventory and Balance Book, and the Daily Book (transcription to the
Inventories and Balance CD ROM Book from April to June);
|
c)
|
we have read the summary of activity on which, as regards those matters that are within our competence, we have no observations to make;
|
d)
|
at June 30, 2021 the liabilities of Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (Edenor S.A.) accrued in favor
of the Argentine Integrated Social Security System, according to the Company’s accounting records, amounted to ARS$ 333,274,476.53,
none of which was claimable at that date.
|
Autonomous City of Buenos Aires, August 10th, 2021
PRICE WATERHOUSE & CO. S.R.L.
(Socio)
|
C.P.C.E.C.A.B.A T°1 – F°17
|
Dr. Raúl Leonardo Viglione
Contador Público (UCA)
C.P.C.E.C.A.B.A. T° 196 F° 169
|
Price Waterhouse & Co. S.R.L., Bouchard 557,
piso 8°, C1106ABG - Ciudad de Buenos Aires
T: +(54.11) 4850.6000, F: +(54.11) 4850.6100, www.pwc.com/ar
Price Waterhouse & Co. S.R.L. es una firma miembro de la red global de PricewaterhouseCoopers
International Limited (PwCIL). Cada una
de las firmas es una entidad legal separada que no actúa como mandataria de PwCIL ni de cualquier otra firma miembro de la red.