BUENOS AIRES, Argentina, April 22, 2025 /PRNewswire/ -- Empresa Distribuidora y Comercializadora Norte S.A. ("edenor" or the "Company"; BYMA/NYSE: EDN), the largest electricity distribution company in Argentina, announces that on April 22nd, 2025, it has filed its annual report on Form 20-F for the fiscal year ended December 31, 2024 (the '2024 Annual Report') before the U.S. Securities and Exchange Commission (the 'SEC'). The 2024 Annual Report can be accessed by visiting either the SEC's website at www.se ...

Economic Environment - In 2024, the Argentine Peso depreciated by 27.7% against the U.S. Dollar, impacting financial results [27]. - The average exchange rate for 2024 was Ps. 916.42 per U.S. Dollar, with a period-end rate of Ps. 1,032.00 [29]. - Inflation in Argentina was reported at 117.8% during 2024, which may continue at similar levels in the future [58]. - The Argentine economy remains vulnerable, characterized by high inflation, currency depreciation, and low investment as a percentage of GDP [57]. - Argentina's real GDP decreased by 1.7% for the year ended December 31, 2024, compared to 2023 [58]. - The Peso appreciated in real terms by 40% against the U.S. Dollar during the year ended December 31, 2024 [60]. - Inflation rates in Argentina were reported at 117.8%, 211.4%, and 94.8% for 2024, 2023, and 2022 respectively, indicating significant inflationary pressures [72]. - The Argentine Government has obtained a new IMF agreement amounting to SDR 15.267 billion (approximately $20 billion), allowing for immediate disbursement of about $12 billion [88]. - The average interest rate on Argentina's foreign currency external bonds was reduced to 3.07% from 7.0% following a restructuring agreement in 2020 [82]. - The Argentine Government's historical influence over the economy and the highly regulated environment may affect the operations of the energy distribution industry, including the company [67]. - Argentina ranked 99 out of 180 in the Transparency International's 2024 Corruption Perceptions Index, indicating risks related to institutional deterioration and corruption [104]. - The Argentine Government has implemented measures to strengthen institutions and reduce corruption, but the effectiveness of these measures remains uncertain [107]. - Argentina's economy remains vulnerable to external shocks, which could materially affect the company's results of operations and financial condition [98]. Regulatory and Legal Risks - The company is subject to regulatory risks, including potential changes in tariffs and government interventions in the electricity sector [33]. - The company is subject to various legal proceedings that could adversely affect its financial position and results of operations [6]. - The Argentine Government's intervention in the economy, including expropriation and price controls, could negatively impact the company's business [93]. - The company faces risks related to potential strikes, expropriation, and changes in taxation policies due to economic, social, or political crises in Argentina [70]. - The company is subject to significant regulatory fines and penalties, which could adversely affect its financial condition and results of operations [161][176]. - Legal proceedings involving the company may result in unfavorable decisions, impacting its financial position and operational results [177]. - Argentine securities laws may deter takeover attempts, potentially affecting the market value of the company's shares and ADSs [209]. Operational Challenges - Energy shortages and high temperatures have impacted the provision of energy services, affecting operational performance [33]. - The company faces significant risks related to currency fluctuations and may not effectively hedge its currency risk [6]. - The company must manage energy losses, including theft, to maintain operational efficiency and financial health [35]. - The company has experienced significant fluctuations in the value of the Peso, which could adversely affect financial results [33]. - The company faces uncertainty regarding future tariff adjustments by the Argentine Government, which may impact operating costs and demand [124]. - Energy shortages and disruptions in the transportation system could adversely affect the Company's ability to deliver electricity, leading to customer claims and penalties [129]. - The Company has experienced power shortages due to demand outpacing distribution capacity, which could result in customer complaints and fines [131]. - Compliance with environmental regulations and potential changes in laws related to greenhouse gas emissions may increase operating costs for the Company [147]. - Severe weather events have previously impacted service continuity, leading to increased operating costs and potential fines for service disruptions [151]. - The exclusivity of the Company's electricity distribution rights may be threatened by technological advancements, potentially leading to increased competition and lower revenues [135]. - The increase in illegal constructions and energy theft in the concession area poses risks to the company's ability to distribute energy and maintain public safety [162]. Financial Condition - The company faces liquidity shortfalls if it cannot recover future cost increases through tariff adjustments, potentially leading to debt restructuring [158]. - The company may experience adverse effects on its financial condition and results of operations due to fluctuations in the Peso's value against the U.S. Dollar [91]. - The company has accrued fines and penalties totaling Ps. 62,124 million, Ps. 136,933 million, and Ps. 156,194 million for the years 2024, 2023, and 2022 respectively, which represent 3.9% of net energy sales in 2024 [161][166]. - The company has outstanding financial debt including U.S.$8.2 million Senior Notes due 2025 and U.S.$95.8 million Senior Notes due 2026, among others, totaling significant liabilities [190]. - The company acknowledged owing the WEM Ps. 26,388 million for the period between September 2022 and February 2023, to be paid in 96 consecutive monthly installments [184]. - As of December 31, 2024, the company had a past due principal balance with CAMMESA of Ps. 127,667 million, compared to Ps. 142,988 million as of December 31, 2023 [187]. - The company is exposed to currency risk as revenues are collected in Pesos while a significant portion of its financial indebtedness is in U.S. Dollars [180]. - The company may face liquidity shortfalls if it cannot recover expenses related to social tariffs for certain neighborhoods [189]. - Shareholders' ability to receive cash dividends may be limited due to the depositary's ability to convert dividends paid in Pesos into U.S. Dollars [200]. - The NYSE and BYMA may suspend trading or delist the company's ADSs and Class B common shares if financial conditions deteriorate [196]. Human Resources - The company employs 4,642 employees, with 79% being union members, which could lead to organized labor actions affecting operations [172]. - The concession is set to expire on August 31, 2087, with the possibility of a 10-year extension if requested at least 18 months prior to expiration [169]. Internal Controls and Governance - Effective internal controls over financial reporting are necessary to provide reliable financial reports; failure to maintain these controls could negatively impact investor confidence and market price [208]. - If the Argentine Government expropriates 51% of the capital stock represented by Class A shares, it would adversely affect the financial condition and market value of the company's securities [207]. - ANSES owns 26.8% of the capital stock and jointly appointed five Class B and five Class C directors at the last shareholders' meeting [205].

Financial Overview - The consolidated financial statements as of December 31, 2024, are presented in millions of Argentine Pesos in constant currency[1]. - Revenue for the year ended December 31, 2024, reached ARS 2,043,127 million, a 34% increase from ARS 1,526,735 million in 2023[15]. - Gross profit improved significantly to ARS 394,596 million, compared to ARS 60,376 million in the previous year, marking a substantial increase[15]. - The operating result turned positive at ARS 42,073 million, a recovery from a loss of ARS 260,851 million in 2023[15]. - Net financial costs decreased to ARS 459,209 million from ARS 762,942 million in 2023, indicating improved financial management[15]. - Income before taxes for 2024 was ARS 193,278 million, down from ARS 396,720 million in 2023, reflecting a challenging year[15]. - The company reported a net income of ARS 272,128 million for 2024, compared to ARS 191,387 million in 2023, showing a positive trend[15]. - Total assets increased to ARS 3,979,577 million in 2024, up from ARS 3,285,627 million in 2023, indicating growth in the company's asset base[18]. - Total equity rose to ARS 1,507,065 million in 2024, compared to ARS 1,232,604 million in 2023, reflecting a stronger financial position[21]. - Current liabilities increased to ARS 1,089,782 million in 2024 from ARS 774,640 million in 2023, suggesting a rise in short-term obligations[21]. - The company’s cash and cash equivalents improved to ARS 23,918 million in 2024, up from ARS 19,877 million in 2023, indicating better liquidity[18]. - Cash flows generated by operating activities increased to ARS 245,917 million in 2024 from ARS 155,642 million in 2023, reflecting improved operational efficiency[28]. - The Company reported a net income of ARS 272,128 million for the year ended December 31, 2024, compared to ARS 191,387 million in 2023, and a loss of ARS 44,014 million in 2022, indicating a significant recovery in profitability[28]. Regulatory and Governance - The company operates under a concession agreement for the distribution and sale of electricity in the Buenos Aires area[9]. - The company is subject to regulatory oversight by the National Regulatory Authority for the Distribution of Electricity (ENRE)[6]. - The last amendment to the bylaws was made on July 24, 2024, indicating ongoing corporate governance updates[13]. - The ongoing 2025-2029 Tariff Review is expected to facilitate gradual regularization of the Company's electricity rate situation, enhancing economic self-sufficiency[38]. - The Company is optimistic about the regulatory framework resulting from the RT process, which aims to establish clear rules and reasonable electricity rates[49]. - The Bases Law introduced in July 2024 aims to deregulate the economy, privatize state-owned companies, and provide investment incentives, potentially benefiting the Company[40][43]. - The Company continues to monitor economic and regulatory developments to adapt its strategies and mitigate risks associated with market volatility[46]. Financial Adjustments and Restatements - The company identified an error in the deferred tax liability related to Property, plant and equipment, resulting in an overstatement of the liability[50]. - The deferred tax liability was adjusted from ARS 478,696 million to ARS 765,391 million as of December 31, 2023, reflecting a correction of ARS 277,032 million[53]. - Total liabilities were restated from ARS 1,069,994 million to ARS 2,053,023 million as of December 31, 2023, after the error correction[53]. - The company's income before taxes for the year ended December 31, 2023, was restated to ARS 396,720 million, with a corresponding increase in income of the year to ARS 191,387 million[54]. - Basic and diluted income per share increased from ARS 55.28 to ARS 218.73 after the restatement for the year ended December 31, 2023[54]. - The inflation rate for the fiscal year ended December 31, 2024, was 117.8%, necessitating the restatement of financial statements in accordance with IAS 29[108]. - The application of IAS 29 requires restatement of non-monetary items using coefficients reflecting price variations, impacting depreciation and amortization calculations[112]. Debt and Financial Management - Proceeds from borrowings amounted to ARS 349,312 million in 2024, a significant increase from ARS 37,943 million in 2023, highlighting the Company’s strategy to leverage debt for growth[30]. - The Company has entered into two agreements with CAMMESA for the regularization of debts related to energy purchases, totaling $229,078[71]. - The payment plan for debts incurred until February 28, 2023, consists of 96 monthly installments, with the total debt amounting to $131,490 as of December 31, 2024[73]. - Outstanding principal on debts for energy purchases from March 1, 2023, to December 31, 2024, is $127,667, with payments current as of April 1, 2024[74]. - The Company has settled penalties for failing to comply with service quality requirements, amounting to $75,400, impacting the Statement of Comprehensive Income by $23,201[83]. Accounting Policies and Practices - The consolidated financial statements include the financial information of both the Company and Edenor Tech SAU, applying full consolidation methods[115]. - Non-controlling interests represent the portion of subsidiaries' profit or loss and net assets not owned by the Company, attributed based on ownership interests[117]. - The Company has adopted new accounting standards effective January 1, 2024, including amendments to IAS 1 and IFRS 16, impacting financial statement presentation[122][123]. - The Company is assessing the impact of IFRS 18, effective January 1, 2027, which introduces new requirements for income and expense presentation in financial statements[127][128]. - Property, plant, and equipment are valued at acquisition cost restated for inflation, with depreciation calculated using the straight-line method over their useful lives[133]. - The Company recognizes its investment in joint ventures using the equity method, adjusting for its share of profits or losses[140]. - The residual value and remaining useful lives of assets are reviewed annually, ensuring they do not exceed recoverable value[136][139]. - Revenue from electricity distribution is recognized when the customer obtains control of the service, with incremental costs recognized as an asset if expected to be recovered[145]. - Revenue from operations is recognized on an accrual basis, including both billed and unbilled electricity supplied, valued based on applicable electricity rates[147]. - Interest income is recognized only when the related asset of the contract has been recognized, applying the effective interest rate method[149]. - Trade receivables are recognized at fair value and measured at amortized cost, including amounts from services billed but not collected[155]. - The Company's inventories are valued at acquisition cost, restated for inflation, and determined using the weighted average price method[159]. - Financial assets are classified into those measured at amortized cost and those measured at fair value, with specific conditions for each classification[162]. - Impairment of financial assets is assessed annually, with losses recognized if there is objective evidence of impairment affecting estimated future cash flows[171]. - Borrowings are initially recognized at fair value and subsequently measured at amortized cost, with differences recognized in profit or loss using the effective interest rate method[192]. - Customer deposits are recognized at the amount received and measured at amortized cost, with specific conditions under which they are allowed[186]. - The Company recognizes revenue from new connections and other distribution services based on the price established in each contract[148]. - The Company recognizes non-refundable customer contributions as property, plant, and equipment, with deferred revenue accrued based on identifiable services provided[193]. - The liability for employee benefit plans is calculated as the present value of the benefit obligation, adjusted for past service costs and actuarial gains or losses[195]. - The Company operates a share-based compensation plan, with the fair value of services recognized as an operating expense in "Salaries and social security taxes"[196]. - Revenue from customer connections to the grid is accrued until the connection is completed, while service costs are recorded in profit or loss immediately[197]. - Actuarial gains and losses are recognized in "Other comprehensive income" in the year they arise[198]. - The effective income tax rate applied by the Company is 35%, based on the current tax scale and estimated taxable profit[200].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Empresa Distribuidora Y Comercializadora Norte S.A. Edenor (EDN) as a strong value stock based on its financial metrics and Zacks Rank [2][3][6] Company Metrics - EDN has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating it is among the best value stocks currently available [3] - The company's price-to-book (P/B) ratio is 1.33, which is attractive compared to the industry average of 2.52 [4] - Over the past 12 months, EDN's P/B ratio has fluctuated between a high of 1.81 and a low of 0.40, with a median of 0.87 [4] - EDN's price-to-sales (P/S) ratio is 0.75, significantly lower than the industry's average P/S of 2.09, suggesting it may be undervalued [5] - These metrics contribute to EDN's strong Value grade and indicate a favorable earnings outlook, reinforcing its status as an impressive value stock [6]

EARNING RELEASE Third Quarter 2024 November, 2024 edenor EARNINGS RELEASE THIRD QUARTER 2024 Buenos Aires, Argentina, November 8, 2024 - Empresa Distribuidora y Comercializadora Norte S.A. (NYSE / BYMA: EDN) ("edenor" or "the Company") Argentina's largest electricity distributor both in terms of number of customers and energy sales, announces its results for the third quarter of 2024. All figures are stated in Argentine Pesos on a constant currency basis, and the information has been prepared in accordance ...

Financial Data and Key Metrics Changes - Revenues increased by 30% year-over-year in Q3 2024 to ARS 555.8 billion, despite a 1.6% decrease in sales volume [14] - Net income rose by 44% year-over-year, reaching ARS 144 billion [21] - EBITDA for the first nine months was ARS 134.3 billion, reflecting the impact of tariff adjustments [7] Business Line Data and Key Metrics Changes - The customer base reached 3.3 million, a 1% increase from Q3 2023, driven by growth in residential and industrial clients [15] - Energy sales volume totaled 6,005 GWh, down 1.6% compared to Q3 2023, primarily due to decreased demand in commercial and industrial segments [16] - Distribution margin for the nine months rose 53% to ARS 608.4 billion, with a 22% increase in Q1 to ARS 211.1 billion [17] Market Data and Key Metrics Changes - The company has seen a significant improvement in its debt profile, with recent ratings upgrades from Moody's and Standard & Poor's [11][28] - The regulatory framework is evolving, with a large transition tariff increase of 329.2% effective February 2024, followed by monthly adjustments [12] Company Strategy and Development Direction - The company aims to leverage opportunities in energy transition and expand into energy generation and critical minerals [30] - The completion of the five-year tariff review process is expected to enhance EBITDA and net income, while investments will continue to improve service quality [31] Management's Comments on Operating Environment and Future Outlook - Management anticipates some delays in the tariff review process due to changes in regulatory personnel but expects closure by the end of the year or early next year [34] - The company is optimistic about future cash flow generation and regulatory environment improvements post-tariff review [36] Other Important Information - Capital expenditures for the nine months ending September 30 were ARS 245.3 billion, a 30% increase year-over-year [22] - Energy losses were reduced to 15.04%, down from 15.3% in the previous year, reflecting ongoing efforts to combat inefficiencies [23] Q&A Session Summary Question: Timing of the full tariff review after the postponement of the public hearing - Management expects some delays but aims to close the process by the end of the year or early next year [34] Question: Reason for the uptick in energy losses in Q3 2024 - The increase in energy losses was attributed to higher energy prices due to reduced subsidies [35] Question: Plans for new debt issuance post five-year tariff review - The company is monitoring market conditions and may consider reopening the recent $184 million issuance if conditions allow [36] Question: Expectations for the new revision process to achieve cost of capital - The company is requesting additional considerations to reduce the gap between total and non-technical losses [37] Question: Penalties from evasion and recharges in Q3 2024 - The increase in charges is mainly due to the reduction of subsidies, and no adjustments to EBITDA calculations are planned [38]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," rather than traditional strategies of buying low and waiting for recovery [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Empresa (EDN) Stock Analysis - Empresa (EDN) has shown a significant price increase of 37% over the past four weeks, indicating growing investor interest [4] - Over the past 12 weeks, EDN's stock has gained 85.1%, with a beta of 1.36, suggesting it moves 36% more than the market [5] - EDN has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - EDN has received upward revisions in earnings estimates, earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - The stock is currently trading at a Price-to-Sales ratio of 0.70, suggesting it is undervalued at 70 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides EDN, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Zacks offers over 45 Premium Screens tailored to different investing styles, aiding in the identification of potential winning stocks [9]

Core Insights - The article emphasizes the importance of the Zacks Rank and Style Scores system in identifying strong stocks, particularly focusing on value investing strategies [1][3]. Company Overview - Empresa Distribuidora Y Comercializadora Norte S.A. Edenor (EDN) is highlighted as a stock to watch, currently holding a Zacks Rank of 2 (Buy) and a Value grade of A [3]. Valuation Metrics - EDN has a Price-to-Book (P/B) ratio of 1.48, which is attractive compared to its industry's average P/B of 2.68. Over the past 12 months, EDN's P/B has fluctuated between 0.40 and 1.48, with a median of 0.83 [4]. - The Price-to-Sales (P/S) ratio for EDN is 0.72, significantly lower than the industry's average P/S of 2.1, indicating potential undervaluation [5]. Investment Outlook - The combination of EDN's favorable valuation metrics and strong earnings outlook suggests that it is likely undervalued, making it an appealing value stock at the moment [6].

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - Identifying the right entry point for momentum stocks is challenging, leading to potential losses if the stock price does not continue to rise [1] Group 2: Empresa (EDN) Stock Analysis - EDN has shown a price increase of 3.4% over the past four weeks, indicating growing investor interest [2] - Over the past 12 weeks, EDN's stock price has surged by 45.8%, demonstrating strong momentum [3] - EDN has a beta of 1.39, suggesting it moves 39% more than the market in either direction, indicating high volatility [3] - The stock has a Momentum Score of B, suggesting it is a favorable time to invest [3] Group 3: Earnings Estimates and Valuation - EDN has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [4] - The stock is currently trading at a Price-to-Sales ratio of 0.53, indicating it is undervalued as investors pay only 53 cents for each dollar of sales [4] - This favorable valuation suggests that EDN has significant potential for price appreciation [4] Group 4: Additional Investment Opportunities - Besides EDN, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, providing additional investment options [5] - Zacks offers over 45 Premium Screens to help investors identify potential winning stocks based on various strategies [5]

Group 1: Momentum Investing Overview - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for momentum stocks is challenging, as they may lose momentum if their valuations exceed future growth potential [1] Group 2: Investment Strategy - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [2] - The 'Fast-Paced Momentum at a Bargain' screen helps in spotting fast-moving stocks that remain attractively priced [2] Group 3: Empresa (EDN) Stock Analysis - Empresa (EDN) has shown a price increase of 17.9% over the past four weeks, indicating growing investor interest [3] - Over the past 12 weeks, EDN's stock gained 38%, demonstrating its ability to deliver positive returns over a longer timeframe [4] - EDN has a beta of 1.39, suggesting it moves 39% higher than the market in either direction, indicating fast-paced momentum [4] Group 4: Performance Metrics - EDN has a Momentum Score of A, suggesting it is an opportune time to invest in the stock for maximum success probability [5] - The stock has a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investor interest [6] - EDN is trading at a Price-to-Sales ratio of 0.49, indicating it is relatively cheap, as investors pay only 49 cents for each dollar of sales [6] Group 5: Additional Opportunities - Besides EDN, there are several other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8]