Edenor(US:EDN)2025-11-07 20:17Financial Performance - Revenue for the nine months ended September 30, 2025, reached ARS 2,118,337 million, a 13.8% increase from ARS 1,861,603 million in the same period of 2024[16] - Distribution margin for the nine months was ARS 865,166 million, up from ARS 801,704 million, reflecting a growth of 7.9%[16] - Gross profit increased to ARS 468,199 million, compared to ARS 382,671 million, marking a 22.4% rise year-over-year[16] - Operating result improved significantly to ARS 99,092 million from ARS 35,385 million, indicating a growth of 179.5%[16] - Income for the period was ARS 179,461 million, down from ARS 351,744 million, representing a decrease of 49.1%[16] - Basic and diluted income per share for the nine months was ARS 205.10, compared to ARS 401.99 in the previous year, a decline of 48.9%[16] - Total expenses for the nine months ended September 30, 2025, were $776,211, compared to $768,060 in 2024, reflecting a modest increase of 1.1%[115] - Net finance costs for the nine months ended September 30, 2025, were $292,808, significantly reduced from $522,161 in 2024, showing a decrease of 44%[117] - Other operating income increased to $47,791 in 2025 from $31,931 in 2024, marking a growth of 49.7%[117] - Energy purchases for the nine months ended September 30, 2025, totaled $1,253,171, compared to $1,059,899 in 2024, representing an increase of 18.3%[113] Assets and Liabilities - Total assets as of September 30, 2025, amounted to ARS 5,073,131 million, an increase from ARS 4,853,738 million at the end of 2024, reflecting a growth of 4.5%[20] - Non-current assets increased to ARS 3,848,023 million from ARS 3,675,220 million, a rise of 4.7%[20] - Total liabilities rose to 3,055,561 million pesos as of September 30, 2025, compared to 3,015,629 million pesos at the end of 2024, indicating a slight increase of 1.3%[23] - The total non-current liabilities increased to 1,873,515 million pesos as of September 30, 2025, compared to 1,686,463 million pesos at the end of 2024, marking an increase of 11.1%[23] - The company experienced a significant increase in other payables, which rose to 357,541 million pesos from 228,893 million pesos, reflecting a growth of 56.2%[23] - Total current liabilities related to trade payables were $618,112,000 as of September 30, 2025, down from $925,446,000 at the end of 2024, showing a reduction of approximately 33.2%[140] Cash Flow and Investments - Cash flows generated by operating activities for the nine-month period were 136,110 million pesos, down from 174,558 million pesos in the previous year, reflecting a decline of 21.9%[30] - Net cash flows used in investing activities amounted to 253,795 million pesos, a decrease from 464,004 million pesos in the prior year, indicating a reduction of 45.2%[33] - Proceeds from borrowings in the financing activities were 295,298 million pesos, an increase from 259,433 million pesos in the previous year, showing a growth of 13.8%[33] - The company capitalized direct own costs of $27,841 during the period ended September 30, 2025[122] - The company acquired a minority interest in two mining companies for $30,730,000, representing 15% and 40% of their share capital, aimed at exploring critical minerals[133] Regulatory and Market Environment - The company’s economic performance has shown improvement, with average monthly electricity rate adjustments of 3.45% contributing to financial recovery[36] - A new financing program with the IMF was approved, providing USD 20 billion over 48 months, with USD 15 billion available for unrestricted disbursements in 2025[38] - The BCRA has lifted foreign exchange controls, allowing for a floating exchange rate system with bands between ARS/USD 1,000 and ARS/USD 1,400[38] - The ENRE approved a rate of return on assets of 6.50% in real terms, an increase of 4.5%[48] - The electricity rate schedule effective from May 1, 2025, includes a 3% increase in the CPD and a monthly increase of 0.42% in real terms[53] - The Energy Demand Management Program was created to incentivize large users to reduce peak power demand in exchange for payment[55] - The reforms approved on July 4, 2025, aim to deregulate the electricity sector and promote private investment in infrastructure[50] Tax and Provisions - The income tax expense for the period was $(36,038) million, compared to a benefit of $143,920 million in the previous year, indicating a significant change in tax position[166] - Total current tax liabilities increased from $41,816 million on December 31, 2024, to $63,758 million on September 30, 2025, an increase of about 52.5%[168] - Provisions for contingencies in non-current liabilities decreased from $26,190 million to $23,125 million, a decline of approximately 11.8%[169] - Current provisions for contingencies increased significantly from $8,949 million to $22,210 million, reflecting an increase of approximately 148.5%[170] Miscellaneous - The inflation rate for the period from January 1, 2025, to September 30, 2025, was 22%[73] - The Company’s financial statements are prepared in accordance with IAS 34 "Interim Financial Reporting" and were approved on November 6, 2025[68] - The Company’s main activity consists of electricity distribution and sale services, with all revenues, expenses, assets, and liabilities associated with a single operating segment[74] - The company reported a gain on net monetary position of $95,579 million for the period, down from $369,844 million in the previous year[166] - The company allocated a profit of $272,128 million for the year ended December 31, 2024, with $240,482 million set aside for discretionary reserves[175]