Business Context and Reporting Period
Company: EDENOR (Empresa Distribuidora y Comercializadora Norte S.A.)
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Nine-month interim period ended September 30, 2017.
Filing Date: November 13, 2017.
Context: This filing discloses condensed interim financial statements approved by the Board of Directors on November 8, 2017, in compliance with Argentine listing regulations. The company operates as a distribution and marketing utility in Argentina.
Key Financial Metrics
All amounts are stated in thousands of Argentine pesos (ARS).
| Metric | Value (ARS '000s) |
|---|---|
| Profit for the Period | 677,634 |
| Total Comprehensive Income | 677,634 |
| Total Equity | 1,047,233 |
| Share Capital (Nominal) | 906,455 |
| Retained Earnings | (528,698) |
Other Financial Data:
- Revenue: The filing text does not provide a clear value for revenue.
- Cash Flow: The filing text does not provide specific cash flow figures, only noting the approval of the Statement of Cash Flows.
- Debt: The filing text does not provide specific debt figures. It notes the absence of debt securities convertible into shares.
- Liquidity: Specific liquidity ratios or cash balances are not disclosed in the text.
Material Changes and Share Structure
Share Capital Composition (as of September 30, 2017):
- Class A Shares: 462,292,111 shares (51.00%), owned by Electricidad Argentina S.A. (EASA).
- Class B Shares: 442,210,385 shares (48.78%), traded on the NYSE (via ADSs) and Buenos Aires Stock Exchange.
- Class C Shares: 1,952,604 shares (0.22%), held by Banco de la Nación Argentina as trustee for the Employee Stock Ownership Program.
- Treasury Shares: 7,794,168 shares held by the company.
Ownership Chain: IEASA S.A. owns 99.99% of EASA's voting shares, which in turn owns the Class A shares of EDENOR.
Outlook, Risks, and Contingencies
Regulatory Contingency:
- Mergers & Acquisitions: The National Regulatory Entity (ENRE) denied authorization for EASA (EDENOR's parent) to merge with Central Térmica Loma de la Lata S.A. (CTLL) via Resolution No. 347 dated August 11, 2017.
- Appeal Status: The denial has been appealed to the Electric Power Secretariat. As of the filing date, no decision has been rendered on the appeal.
Other Disclosures:
- The company has no stock options outstanding.
- The company has no debt securities convertible into shares.
Investor Verification Checklist
- Revenue and Cash Flow: Verify full revenue figures and operating cash flow from the complete Condensed Interim Financial Statements, as they are not explicitly listed in this summary text.
- Debt Levels: Confirm total debt and interest coverage ratios from the full Statement of Financial Position.
- Merger Appeal Outcome: Monitor the status of the appeal regarding the EASA/CTLL merger denial with the Electric Power Secretariat.
- Currency Impact: Assess the impact of Argentine peso volatility on the reported ARS figures (677,634 thousand profit) when converting to USD for international comparison.
- Retained Earnings: Investigate the cause of the negative retained earnings balance of (528,698) thousand ARS despite current period profitability.