Edenor(US:EDN)2025-08-11 15:53Revenue and Profitability - Revenue for the six months ended June 30, 2025, increased to ARS 1,299,917 million, up 22% from ARS 1,065,380 million in the same period of 2024[16] - Gross profit for the six months reached ARS 252,555 million, a rise of 7.8% from ARS 234,240 million year-over-year[16] - Income for the period was ARS 131,004 million, down 30.3% from ARS 188,115 million in the same period of 2024[16] - Basic and diluted earnings per share decreased to ARS 149.72 from ARS 214.99, representing a decline of 30.3%[16] - The company reported a net income of 131,004 million pesos for the six-month period ended June 30, 2025, compared to 188,115 million pesos for the same period in 2024, indicating a decrease of about 30.3%[30] - Basic and diluted income per share for the six months ended June 30, 2025, was 149.72 pesos, down 30.4% from 214.99 pesos in the prior year[110] Financial Position - Total assets as of June 30, 2025, amounted to ARS 4,664,348 million, an increase from ARS 4,580,370 million at the end of 2024[20] - Total equity increased to 1,865,591 million pesos as of June 30, 2025, up from 1,734,587 million pesos at the end of 2024, reflecting a growth of approximately 7.5%[23] - Total liabilities decreased to 2,798,757 million pesos as of June 30, 2025, down from 2,845,783 million pesos at the end of 2024, representing a reduction of approximately 1.6%[23] - The company’s borrowings increased slightly to 419,069 million pesos as of June 30, 2025, compared to 408,530 million pesos at the end of 2024, reflecting a growth of approximately 2.5%[23] - Total current trade receivables as of June 30, 2025, amounted to $467,259, an increase of 12% from $417,074 at the end of 2024[120] - Total current trade payables decreased from $873,322,000 as of December 31, 2024, to $656,023,000 as of June 30, 2025, representing a reduction of approximately 25%[129] Cash Flow and Liquidity - Cash and cash equivalents rose to ARS 59,237 million, compared to ARS 27,530 million at the end of 2024, indicating a significant liquidity improvement[20] - Cash flows generated by operating activities amounted to 107,916 million pesos for the first half of 2025, an increase from 100,773 million pesos in the prior year[30] - The cash and cash equivalents at the end of the period stood at 175 million pesos, a significant recovery from a negative balance of 34,832 million pesos in the prior year[33] Costs and Expenses - The company incurred total expenses of $489,930 for the period ending June 30, 2025, compared to $471,564 for the same period in 2024, reflecting an increase of approximately 4%[104][105] - The company reported energy purchases of 13,748 GWh at a cost of $776,650 for the period ending June 30, 2025, compared to 13,552 GWh at a cost of $571,418 in 2024, highlighting increased energy procurement costs[103] - The company recognized a monetary gain (RECPAM) of ARS 144,440 million, compared to ARS 544,015 million in the prior year, showing a decrease in inflationary adjustments[16] Financial Management - The company reported a financial cost of ARS 138,345 million for the six months, down from ARS 271,722 million in the previous year, indicating improved financial management[16] - Net financial costs for the period were $182,851, a significant decrease from $538,573 in the previous year, indicating improved financial management[107] Regulatory and Compliance - The Company recognized a debt of $129,970 owed to CAMMESA for past due periods from November 2023 until March 2024, agreeing to a payment plan of 72 monthly installments with a 12-month grace period[60] - The Company is expected to maintain a zero fiscal deficit and strengthen international reserves as part of the new financing program with the IMF[37] - The company has ongoing legal proceedings with ENRE regarding service quality penalties, with management expressing confidence in a favorable outcome[95][99] - The company has agreed to suspend certain proceedings with ENRE to negotiate a possible regularization plan, indicating a proactive approach to regulatory compliance[99] Investments and Capital Expenditures - The Company continues to invest in network efficiency and service quality despite negative working capital in recent fiscal years[42] - The Company reported total additions to property, plant, and equipment of $163,538 during the period ended June 30, 2025[112] - The Company acquired a minority interest in two mining companies for $28,999, representing 15% and 40% of their share capital[122] Economic Environment - The inflation rate for the period from January 1, 2025, to June 30, 2025, was 15.1%[72] - The average increase in the Company's electricity rate schedule was set at 3.5% effective April 1, 2025, with subsequent adjustments planned[49] - A new electricity rate schedule effective from June 1, 2025, included an additional 3.24% increase over previously set values[53] Debt and Financing - The Company plans to issue new Corporate Notes with a total nominal value of up to $120,000,000 as part of its Global Program for the Issuance of Simple Corporate Notes[139] - The Company issued Class No. 8 and Class No. 9 Corporate Notes on August 7, 2025, for a nominal value of $80,000,000 and $20,000,000, respectively[140] - The Company’s credit rating was upgraded by S&P from CCC+ to B- with a stable outlook on June 30, 2025[137]