ENDESA reports third quarter preliminary results; Net income up 12.8%.MADRID, Spain--(BUSINESS WIRE)--October 26, 1995--ENDESA (NYSE NYSE See: New York Stock Exchange : ELE ELE equine leukoencephalomalacia. ), a major electric utility company in Spain, reported today its preliminary, consolidated earnings for the first nine months of 1995. Net income was Pta108.11 billion ($873.89 million), 12.8 % higher than for the same period last year. Contribution by subsidiaries and associated companies to these consolidated results has been important, since the holding company's growth in earnings was 4.5 %. Earnings per share were Pta415.80 ($3.36), against Pta368.50 ($2.98) for 1994. Changes during the first nine months of 1995 in respect of the same period the year before were: A 12 % increase in installed capacity, with improved production mix. A 9.2 % greater final consumer market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" , reaching 23,451 Gwh of energy distributed. Including associated companies FECSA and SEVILLANA, sales to final consumer were 52,864 Gwh, or 44.4% of the national market. A 14.4% production increase by the ENDESA Group, to reach 46,124 Gwh. Including associated companies, it amounted to 61,741 Gwh, representing 53.7% of the national total. Greater coal plant utilization, which had their production increased by 23.9%. CONSOLIDATION STRUCTURE.- Changes in the consolidation structure (inclusion of HIDRU%A I, TERBESA, Saltos del Nansa, Energ!as de Arag"n and other generation and market assets acquired in the second quarter of 1994 as a result of sector agreements) have once again significantly affected all of this period's economic parameters. Factors affecting the Group's results were: Sustained growth in electricity demand of 3.9%, due to improved economic environment. Low rainfall, 16.7% below last year's. Tariff mean increase of 1.48%, well below estimated 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 for the year. Mean cost of debt being kept at similar levels as in the previous year. Containment of operating and maintenance costs. PRODUCTION.- Production, at a national level, reached 114,978 Gwh, 1.4% higher than in 1994. Cogenerators' contribution grew by 14% in respect of the previous year. The low rainfall has made the production structure somewhat different from that of last year, with the decrease in hydro energy being compensated by greater utilization of lignite lignite (lĭg`nīt) or brown coal, carbonaceous fuel intermediate between coal and peat, brown or yellowish in color and woody in texture. (+15.4%), imported coal (+24.8%) and oil (+111.4%) plants, while nuclear production has remained virtually stable. The System's fuel-mix for the first nine months of the year was as follows: 1995 1994 Hydro 15.8% 19.2% Coal 44.2% 41.1% Oil/gas 2.2% 1.1% Nuclear 37.8% 38.6% ENDESA Group production reached 46,124 Gwh, 14.4% greater than in 1994. Five percentage points of this growth are attributable to the addition of TERBESA, ENECO and HIDRU%A I. Its lower hydro production, 14.4%, was also offset by a 14.3% greater utilization of coal plants. ENDESA Group's fuel-mix for the first nine months of the year was as follows: 1995 1994 Hydro 10.9% 12.2% Coal 58.8% 54.3% Oil/gas 10.0% 10.8% Nuclear 20.3% 22.7% OPERATING REVENUES operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. .- Operating revenues amounted to Pta653.17 billion ($5,28 billion), 9% more than in 1994. Sales, by type of customer, were as follows (in million pesetas): 1995 1994 Variation % Wholesale 285,817 261,421 24,396 9.3 Retail 316,421 284,246 32,175 11.3 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. .- Operating expenses of Pta451.45 billion ($3.65 billion) were 9.7% higher than in 1994. Fuel and electricity purchased, personnel, depreciation and other operating expenses were the main items causing that increase. Fuel and electricity purchased went up 13.5% as a result of: Greater thermal production More purchases from cogenerators Substitution by Viesgo of energy purchases for NUCLENOR own production. Personnel expenses went up by 6.8% due to the consolidation of ENECO, NANSA, TERBESA, HIDRU%A I and ENERGIAS DE ARAGON. Not including that consolidation effect, headcount saw a reduction of 561, which compensated salary increases agreed in the various labor contracts. Depreciation increased 4.4% due the enlarged consolidation structure and acquisition of new assets. Other operating expenses increased by 5.3%, though, in homogeneous bases, remain stable as a result of cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. and reduction policies. FINANCIAL INCOME AND EXPENSES.- Financial income increased by Pta3.88 billion ($31.34 million), primarily due to more financial products and dividends received. Financial expenses, net of pension funding and currency losses, increased 5.9% as a result of an increase of Pta30.33 billion ($245.20 million) in mean debt, since the mean rate of interest, 8.3% in 1995 against 8.2% in 1994, has remained stable. In homogeneous terms, however, financial expenses went down 5.4%, due to lower mean debt. Interest-bearing debt, as of September 30, 1995, was Pta626.44 billion ($5.06 billion), 1% less than that on the same date a year before. In homogeneous terms, the reduction would be Pta44.57 billion ($360.25 million), or 7%. INCOME FROM COMPANIES CARRIED BY THE EQUITY METHOD.- 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 Pta20.64 billion ($166.86 million), against Pta13.18 billion ($106.56 million) in 1994. CHANGES IN FINANCIAL POSITION.- Cash flow generated during the first nine months of 1995 amounted to Pta225.50 billion ($1.82 billion), 9.5% more than in the same period the year before. Investment 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 Pta91.40 billion ($738.79 million), against Pta146.22 billion ($1.18 billion) in 1994, which included Pta73.10 billion ($590.88 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 Pta20.72 billion ($167.50 million), highlights of which are as follows: Pta3.10 billion ($25.09 million) for 17.8% of Energias de Aragon, by ERZ ERZ Erzurum, Turkey - Erzurum (Airport Code) ERZ Explosion Risk Zone ERZ Extended Reconnaissance Zone ERZ Electrical Return-to-Zero ; Pta4.23 billion ($34.20 million) for the acquisition of 7% of AIRTEL; Pta1.50 billion ($12.13 million) in a rights issue by MADE, and loans granted to TEJO Tejo, river: see Tagus. and ELCOGAS for Pta4.74 billion ($38.18 million) and Pta2.47 billion ($19.95 million), respectively. Investments were financed, entirely, by cash flow during the period. Consolidated figures are unaudited and calculated in accordance with Spanish GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . Conversion of pesetas (Pta) into US dollars ($) is based on the Federal Reserve Bank noon-buying rate on September 29, 1995, of $1.00 = Pta123.71. 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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