Continuation of earlier press announcement.MADRID--(BUSINESS WIRE)--May 5, 1995--ENDESA (NYSE NYSE See: New York Stock Exchange :ELE ELE equine leukoencephalomalacia. ), a major electric utility company in Spain, announced today that net income for its consolidated Group during the first quarter of 1995 amounted to Pta38.26 billion ($301.15 million), 10.8% higher than Pta34.54 billion ($271.85 million) obtained during the same period last year. Earnings per share went up to Pta147.10 ($1.16 per ADR ADR - Astra Digital Radio ), against Pta132.80 ($1.05 per ADR) for 1994. These results were achieved in a context of recovery of electricity demand (4.9 percent higher than in the same quarter last year) and tariff rate containment, the latter being increased by 1.48 percent, well below the CPI (1) (Characters Per Inch) The measurement of the density of characters per inch on tape or paper. A printer's CPI button switches character pitch. (2) (Counts Per I . The greater net income was also the result of Group company performance, new acquisitions included. Main changes that have taken place during the first quarter, 1995, when compared with the same period last year, are: - Increase of 1,418 MW in installed capacity, 11.9 percent, with more balanced fuel mix. - A 22.6 percent greater share of final consumer market, reaching 7,264 Gwh in distribution. - A 14.8 percent increase in Group production, that reached 15,806 Gwh. - 17.6 percent higher operating revenues. - And, finally, total Group asset additions of Pta343.53 billion ($2.70 billion), a growth of 19.1 percent in respect of 1994. These additions have been financed with: -Cash flow of Pta287.65 billion ($2.26 billion) generated throughout the last 12 months. - A debt increase of Pta119.12 billion ($937.69 million) during the past 12 months. - The agreed payment postponement for acquisitions from Sevillana, Pta56.06 billion ($441.30 million). A number of changes in the Group's consolidation structure (inclusion of HIDRU%A I, TERBESA, ENECO, Saltos del Nansa, Energ!as de Arag"n and other generation and market assets acquired during the second quarter, 1994, within the framework of the sector's agreements) have had a significant effect over this quarter's economic parameters as a whole. Operationally, the factors that significantly contributed to the outcome were the following: - A 4.9% increase in electricity demand, the result of greater economic activity and tourism, as well as more favorable labor and climatic conditions. - An 11% drop in hydro generation in respect of last year. - A tariff rate increase, on average, of 1.48%. - A reduction in the mean cost of debt of 0.5 points in respect to the previous year. Production, at a national level, reached 39,426 Gwh, 1.4% higher than in 1994. The cogenerators' contribution to the system grew by 13.9% in respect of the previous year. Fuel mix was also different from last year. A 9.5% increase in nuclear production made up for an 11.1% decrease in hydro generation. The ENDESA Group production was 15,806 Gwh, a 14.8% higher than in 1994, reaching a 40.1% share of the national total. Unlike the rest of the sector, the ENDESA Group had an 11.5% increase in hydro generation, while both its conventional thermal and nuclear productions grew by 20.5% and 10.7%, respectively. Operating revenues amounted to Pta225.75 billion ($1.78 billion), 17.6% more than in 1994. The consolidation of new companies referred to above introduces a distorting element, when comparing current data with that pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to 1994. Without that factor, the increase would have been 9.3%. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. of Pta150.42 billion ($1.18 billion) were 19.8% higher than in 1994. On a homogeneous basis, the increase would have been 10.7%. The following explanatory notes are apportioned ap·por·tion tr.v. ap·por·tioned, ap·por·tion·ing, ap·por·tions To divide and assign according to a plan; allot: "The tendency persists to apportion blame as suits the circumstances" to the Group's structure during the same period last year: - "Fuel and electricity purchased" went up by 17.2%, as a result of: - Greater thermal production. - Increased purchases from cogenerators. - Replacement at VIESGO of NUCLENOR's own production with energy purchases. - Personnel expenses went up by 4.7% due to salary increases. - Depreciation was Pta1.36 billion ($10.71 million) higher, or 5.4%, for the addition of new assets. - Other Group operating expenses remained leveled with those in the same period last year. Financial income increased by Pta1.77 billion ($13.92 million), primarily due to more financial products and positive foreign exchange differences. Financial expenses, net of pension funding and currency losses, increased 13.5%, despite a drop in the mean rate of interest, from 8.6%, in 1994, to 8.1%, in 1995, which was insufficient to compensate for the increase of Pta102.08 billion ($803.56 million) in mean debt. On a homogeneous basis, financial expenses decreased by 7.8%, due to the reduction of both interest rates and mean debt. Interest-bearing debt, as of March 31, 1995, amounted to Pta632.98 billion ($4.98 billion), against Pta513.85 billion ($4.04 billion) a year before. The consolidation of new companies has brought an additional Pta108.20 billion ($851.68 million). Income from affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. carried by the equity method amounted to Pta7.92 billion ($62.30 million), against Pta7.59 billion ($59.74 million) in 1994. Cash flow generated, Pta82.47 billion ($649.13 million), was 15.7% greater than for the same period the year before. Investments in capital goods Capital Goods Any goods used by an organization to produce other goods. Notes: Examples of capital goods include office buildings, equipment, and machinery. See also: Capital Expenditure, Disinvestment Capital goods reached Pta28.39 billion ($223.47 million), against the 1994 figure of Pta42.33 billion ($333.16 million) which included Pta24.16 billion ($190.19 million) for the asset swap Asset Swap Similar in structure to a plain vanilla swap, the key difference is the underlying of the swap contract. Rather than regular fixed and floating loan interest rates being swapped, fixed and floating investments are being exchanged. among the sector's companies. Financial investments amounted to Pta11.72 billion ($92.27 million), highlights of which are as follows: Pta3.1 billion ($24.43 million) for 17.8% in Energ!as de Arag"n, by ERZ ERZ Erzurum, Turkey - Erzurum (Airport Code) ERZ Explosion Risk Zone ERZ Extended Reconnaissance Zone ERZ Electrical Return-to-Zero , plus the capitalization of diversification companies, in compliance with the new Electricity Law, by GESA GESA General Equipment Support Activity GESA General Electric Supervisory Association GESA Grid Economic Services Architecture and UNELCO, for Pta1.30 billion ($10.23 million) and Pta4.00 billion ($31.49 million), respectively. Investments were financed primarily out of cash flow generated in the quarter, plus an increase of Pta39.49 billion ($310.82 million) in debt outstanding, caused by the consolidation of Energ!as de Arag"n which brought in additional debt of Pta22.86 billion ($179.90 million). On a homogeneous basis, debt would have increased by Pta16.63 billion ($130.91 million), the result of moving the payment of the interim dividend (Pta18.97 billion or $149.35 million) from December, 1994, to January, 1995. Consolidated figures are unaudited and calculated in accordance with Spanish GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . Conversion of pesetas (Pta) into dollars ($) is based on the Federal Reserve Bank noon-buying rate on March 31, 1995, of $1.00 equal EAU EAU European Association of Urology EAU Emiratos Árabes Unidos (Spanish: United Arab Emirates) EAU Estonian Agricultural University (Tartu, Estonia) EAU Estimated Annual Usage EAU Environmental Archaeology Unit =Pta127.04. CONTACT: Fernando Lario North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. Investor Relations Investor relations The process by which the corporation communicates with its investors. (212) 750-7200 |
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