MIRA INFORM REPORT

 

 

Report Date :

28.05.2013

 

IDENTIFICATION DETAILS

 

Name :

ADMINISTRACION NACIONAL DE USINAS Y TRANSMISIONES ELECTRICAS

 

 

Registered Office :

Paraguay 2431 Montevideo Montevideo

 

 

Country :

Uruguay

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

21.10.1912

 

 

Legal Form :

State-owned company of public right

 

 

Line of Business :

Generation, Transmission, Distribution and Supply of electricity, provision of related services and consulting.

 

 

No. of Employees :

6,053

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Uruguay

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

URUGUAY - ECONOMIC OVERVIEW

 

Uruguay has a free market economy characterized by an export-oriented agricultural sector, a well-educated work force, and high levels of social spending. Following financial difficulties in the late 1990s and early 2000s, economic growth for Uruguay averaged 8% annually during the period 2004-08. The 2008-09 global financial crisis put a brake on Uruguay's vigorous growth, which decelerated to 2.6% in 2009. Nevertheless, the country managed to avoid a recession and keep positive growth rates, mainly through higher public expenditure and investment, and GDP growth reached 8.9% in 2010 but fell to about 3.5% in 2012, the result of a renewed slowdown in the global economy and in Uruguay's main trade partners and Common Market of the South (Mercosur) counterparts, Argentina and Brazil. Uruguay has sought to expand trade within Mercosur and with non-Mercosur members. Uruguay's total merchandise trade with Mercosur since 2006 has increased by nearly 70% to more than $5 billion while its total trade with the world has almost doubled to roughly $20 billion.

Source : CIA

 


IDENTIFICATION

 

CORRECT COMPANY NAME

ADMINISTRACION NACIONAL DE USINAS Y TRANSMISIONES ELECTRICAS

TRADE NAME

UTE

TAXPAYER REGISTRATION

RUT 210778720012

MAIN ADDRESS

Paraguay 2431 Montevideo

DEPT/PROV/REGION/STATE

Montevideo

COUNTRY

URUGUAY

TELEPHONE

(5982) 2097685

CORPORATE E-MAIL

comercial@ute.com.uy

WEB

www.ute.com.uy

COMMENTS

 

Other e-mail:  anovelle@ute.com.uy

 

 

EXECUTIVE SUMMARY

 

Date of foundation

1912

Capital stock

Ps$.51,335,161,674.= issued and paid up

Shareholders' equity

96,724,907,600.00 Pesos (31DEC2012)

Profits (loss)

-3,421,048,274.00 Pesos (31DEC2012)

permanent employees

6,053

Chief Executive

CASARAVILLA, GONZALO

Disposition

Declined. For security reasons and/or competition.

Payments policy

Usually to terms/good

Credit (**)

Risk is Minimal, Solvent, Satisfactory Financial Situation.

Number of times that this company was required: 11

 

 

LEGAL STRUCTURE

 

LEGAL STATUS

State-owned company of public right

 

 

DATE OF INCORPORATION

21OCT1912

 

 

PLACE OF REGISTRY

Montevideo

 

 

CURRENT PAID-IN CAPITAL

Ps$.51,335,161,674.= issued and paid up

 

 

SHAREHOLDERS EQUITY

96,724,907,600.00 Pesos ()

 

 

CURRENT EXCHANGE RATE (US$)

Ps$.19 per USD.1.00

 

 

COMMENTS

 

According to the provisions of Law 4273, enacted on 21.10.1912, UTE was created as self-governing with its own legal status to fulfill its specific task which covers the stages of generation, transmision, distribution and commercialization of electric energy.  It was granted the absolute monopoly for the supply of energy all over the national territory, with the legal and rigths privileges to enable management and support its authority.

 

Pursuant to Laws 14.694 dated 01/09/77, N° 15.031 dated 04/07/80  N° 16.211 dated l 01/10/91, the entity stopped operating its specific tasks as a monopoly.  Operations scope is expanded to provide advisory and technical assistance services in the specialization and related areas both in the territory of the Republic and abroad.

 

In accordance with Article  265 of the Law N° 16.462 dated January 11,  1994, business line was expanded, under which, it is enabled to operate abroad in the stages of generation, transformation, transmission, distribution and commercialization of electric energy, supplied directly or in association with other public or private companies, national of foreign ones.  Said participation will be subject to the prior authorization of the Executive.

 

On June 17, 1997 the Executive enacted Law N° 16.832 which superseded Article  2° of Decree Law N° 14.694, stipulating, in turn, a new Legal Regulating Frame for the the National Electric System, under which, it would be a reorganization of the electric market,  under certain conditions and creating regulating bodies.

 

 

The Uruguayan State controls the 100% of the capital.

 

 

DIRECTORS - EXECUTIVES – SHAREHOLDERS

 

FULL NAMES / COMPANY NAME

TITLE

%PART.

SINCE

CASARAVILLA, GONZALO

President

 

 

BRIOZZO, CESAR

Vice President

 

 

GARCIA, LUIS

Distribution Director

 

 

EMALDI, SILVIA

Human Resources Director

 

 

PONCE DELEON, IGNACIO

Transmission Director

 

 

GOMEZ, JORGE

Acting Director

 

 

POMBO, CARLOS

General Manager

 

 

GONZALEZ BRUNO, HECTOR

Operat. Commt. Manager

 

 

MARGENAT, LUIS

Commercial Manager

 

 

FACHOLA, JORGE

Secretary General

 

 

FERREÑO, OSCAR

Generation Area Manager

 

 

DELOITTE,TEA

External Auditor

 

 

ALEM, JOSE

Legal Advisory Assistance

 

 

 

 

 

WHO IS WHO?

 

CASARAVILLA, GONZALO

TITLE

President

NATIONALITY

Uruguayan

D.O.B.

02JUL1963

PROFESSION

Electrical Engineer

BACKGROUND INFORMATION

Born in the city of Montevideo. Received from the University of the Republic Electrical Engineering degree in 1990, Master's degree in Electrical Engineering in 2000 and his Ph.D. in Electrical Engineering in 2003.

Since 1986 he is a professor at the Institute of Electrical Engineering of the University of the Republic, Uruguay where he is currently Professor (Gr 5), and from 2005 to May 2010 he served on a full time basis.

 

From 2010 he has served as Chairman of the Board.

 

 

 

 

BRIOZZO, CESAR

TITLE

Vice President

NATIONALITY

Uruguayan

D.O.B.

12SEP1947

PROFESSION

Electrical Engineer

BACKGROUND INFORMATION

Born in Montevideo. He earned a Master of Science in Electrical Engineering from Chalmers University of Technology in Gothenburg, Sweden, in 1981, where he later worked in assessment systems in small-scale wind turbines and was responsible for experimental wind turbine project for research in wind power plants in Hönö . From 1985 until his appointment as Vice President of UTE was responsible for Power Controls Division .

 

 

 

 

GARCIA, LUIS

TITLE

Distribution Director

NATIONALITY

Uruguayan

 

 

 

 

POMBO, CARLOS

TITLE

General Manager

NATIONALITY

Uruguayan

 

 

ASSOCIATED AS PER OUR DATABASE TO

COMPANY

TITLE

TAX REG

COUNTRY

RISELCO S.A.

Shareholder

212698060012

URUGUAY

 

 

BUSINESS HISTORY

 

On 21/10/1912, the law for the creation of Administración General de las Usinas Electricas del Estado was passed , granting the monopoly for the supply of electric energy, without limit in time and covering all the national territory.

 

In 1931, a new monopoly was granted: The monopoly for wired telephone communications.  Thus, the name of the Company was Administracion General de las Usinas y Telefonos del Estado", until 1974,  when as a result of the creation of Empresa Nacional de Telecomunicaciones (Antel), the scope of the Company returned to its original business, hence, its trade intials stand for "Administracion Nacional de Usinas y Trasmisiones Electricas".

 

Towards the middle of the 80's, UTE was aimed at producing electric energy.  This approach changed substantially since the implantation of a Project for Management Improvement which also put emphasis in the commercialization of electric energy.

 

As from 1994, they developed  a plan of activities intended for the promotion and implantation of a Total Quality Process in the Company, with produced results in 1998 when the Commercial and Distribution Area and the Division of Information Systems in the Company was conferred the National Award to Quality.

 

In 1997, a Law for Regulatory Framework in the Uruguayan electric market was passed which separated the regulating activities from business activities. That same year, the UTE defined its participation in the construction of the gas pipeline which brings natural gas from the Argentinian province of Entre Rios to the Uruguayan city of Paysandú.

 

In October 2000, after a long negotiation process, UTE entered into an agreement to supply natural gas with the companies Pan American Energy and Winterhall Energia, which would make it possible to transport natural gas to the south of the country.

 

 

 

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

 

COMPANY NAME

COUNTRY

TAX REG.

RELATION %

CENTRAL PUERTO S.A.

ARGENTINA

(AC) 33650305499

Related

HIDROELECTRICA DEL SUR S.A.

ARGENTINA

(AC) 30677323996

Related

HIDRONEUQUEN S.A.

ARGENTINA

(AC) 33663188009

Related

INTERCONEXIÓN DEL SUR S.A.

URUGUAY

 

Related

ROUAR S.A.

ARGENTINA

(AC) 30615868937

Related

 

 

 

BUSINESS

 

SIC Classification
4 9 - ELECTRIC SERVICES, GAS AND WATER SERVICES. (Electric services, gas production and distribution, water supply, sanitary services.)

Main activity

National Administration of Power Plants and Transmission - UTE (Uruguay's national electricity authority and power plant), is a Uruguayan state-owned enterprise dedicated to the generation, transmission, distribution and supply of electricity, provision of related services and consulting.

 

To meet the demand of one million two hundred thousand customers in the territory of 176,215 km2, UTE has wind, thermal and hydroelectric power plants.

 

The production is supplemented by energy from the Salto Grande Hydroelectric Power Plant (binational venture between Argentina and Uruguay) and energy from power plants owned by third parties.

O P E R A T I O N S

Import

Yes

Country

USA, Brazil, Argentina, Spain, Canada, UK, China

ANNUAL Imports In US$ (CIF)

YEAR

AMOUNT

2013

36,096,900.98

2012

72,862,341.97

2011

100,837,866.36

2010

119,289,987.04

2009

109,041,129.08

2008

59,441,963.49

Export

Yes

COUNTRY

Canada, UK

Annual exports in US$ (FOB)

YEAR

AMOUNT

2012

1,941,600.00

2011

5,009,933.00

2010

1,940,600.00

2009

2,920,120.00

2008

5,077.66

% Credit SALES / Terms

100% (30 days)

EMPLOYEES

6,053

LOCATION

PREMISES

Own Settled

AREA

6,400 sq.mts.

OTHER PREMISES

Headquarters operate at the above address.

 

The subject has five production plants, consisting of two thermal power plants, one of them located at Av. William Lecoog; and 3 hydroelectric power plants located in Rio Negro.

 

Other facilities: Palacio de la Luz, Paraguay 2431, Planta Baja, Montevideo.

 

 

FINANCIAL INFORMATION

 

Disposition

Declined. For security reasons and/or competition.

Information provided

Despite the efforts made , we were unable to interview the key executives of the company.

 

We know that because it is a state institution, it is difficult to directly access their information because it is kept in strict confidence.

 

It should be mentioned that the information in this report  has been collected from different outside sources.

 

The following are the Balance Sheets for the FY ended as of  31/12/2012, 31/12/2011  (12 months) expressed in Pesos, also a Quarterly Balance Sheet as of 31/03/2013, expressed in Pesos too.

 

INTERIM BALANCE SHEET

Balance Sheet Date

31MAR2013

 

 

 

Type of balance sheet

Interim

 

 

 

Period

3 months

 

 

 

Currency

Pesos

 

 

 

Exchange Rate per US$

19

 

 

 

A S S E T S

 

 

 

 

Current Assets

14,566,691,105.00

 

 

 

Others

110,900,991,996.00

 

 

 

Total Assets

125,467,683,101.00

 

 

 

L I A B I L I T I E S

 

 

 

 

Current liabilities

12,109,724,461.00

 

 

 

Others

14,337,248,906.00

 

 

 

S H A R E H O L D E R S'  E Q U I T Y

 

 

 

 

Total shareholders equity

99,020,709,734.00

 

 

 

Total liab. / Sh. equity

125,467,683,101.00

 

 

 

Sales

8,885,407,816.00

 

 

 

Profit (Loss)

2,585,302,133.00

 

 

 

 

R A T I O

 

Liquidity ratio

1.20

(Current assets / Current liabilities)

Debt-to-equity ratio

817.70 %

(Shareholders' equity / Current liabilities %)

Profitability ratio

29.10 %

(Profits / Sales %)

Working capital

2,456,966,644.00

(Current assets - Current liabilities)

 

BALANCE SHEET - AUDITOR(S): DELOITTE S.C.

Balance sheet date

31DEC2012

31DEC2011

31DEC2010

31DEC2009

Type of balance sheet

Annual

Annual

Annual

Annual

Period

12 months

12 months

12 months

12 months

Currency

Pesos

Pesos

Pesos

Pesos

Exchange rate per US$

19

19.95

19.92

19.49

A S S E T S

 

 

 

 

Cash/bank

6,285,997,390.00

4,491,015,093.00

4,211,562,198.00

3,133,450,094.00

Receivables

4,657,195,109.00

4,793,997,717.00

4,744,962,746.00

5,433,048,520.00

Inventory

2,696,004,748.00

2,580,859,368.00

1,938,129,257.00

1,872,894,805.00

Others

1,543,616,972.00

442,909,983.00

16,222,609.00

 

Current Assetsd

15,182,814,219.00

12,308,782,161.00

10,910,876,810.00

10,439,393,419.00

Fixed

97,832,921,954.00

97,131,940,623.00

95,015,338,261.00

80,723,166,343.00

Others

13,028,330,360.00

8,478,243,206.00

8,303,088,271.00

9,499,655,868.00

Total Assets

126,044,066,533.00

117,918,965,990.00

114,229,303,342.00

100,662,215,630.00

L I A B I L I T I E S

 

 

 

 

Bank/Suppliers

12,357,433,855.00

8,260,653,628.00

7,279,579,703.00

12,224,480,596.00

Others

2,378,957,813.00

2,216,438,746.00

2,552,818,927.00

1,779,786,368.00

Current liabilities

14,736,391,668.00

10,477,092,374.00

9,832,398,630.00

14,004,266,964.00

Long term

14,582,767,265.00

10,539,662,982.00

9,150,777,578.00

8,606,761,233.00

TOTAL LIABILITIES

29,319,158,933.00

21,016,755,356.00

18,983,176,208.00

22,611,028,197.00

S H A R E H O L D E R S'  E Q U I T Y

 

 

 

 

Capital

 

3,073,899,528.00

3,056,800,622.00

3,016,527,055.00

Reserves

 

14,985,787,811.00

13,082,269,217.00

11,265,178,369.00

Profits (Loss)

 

2,834,227,963.00

9,086,890,353.00

2,164,339,316.00

Others

 

76,008,295,332.00

70,020,166,942.00

61,605,142,693.00

Total shareholders equity

96,724,907,600.00

96,902,210,634.00

95,246,127,134.00

78,051,187,433.00

Total Liab. / Sh. equity

126,044,066,533.00

117,918,965,990.00

114,229,303,342.00

100,662,215,630.00

Sales

32,611,318,231.00

30,348,483,702.00

29,128,430,618.00

24,809,771,052.00

Profit (Loss)

-3,421,048,274.00

2,833,993,392.00

9,085,728,903.00

2,164,339,316.00

FINANCIAL SITUATION

A-: SATISFACTORY

Taking into account the last Financial Statement submitted and/or other factors analyzed, we believe that financial Situation of the Company is SATISFACTORY.

Despite there is a tight relationship between the current accounts, on the other hand, shareholders' equity covers liabilities in excess. Sales allow activities are carried out regularly.

However in 2012, the company lost money

 

Business circles recently consulted, agreed to report favorably this Company payment experience.  No negative found. Credit lines granted for high amounts.

 

 

 

 

 

INSURANCE

COMPANY

AGAINST

BANCO DE SEGUROS DEL ESTADO

All risk

 

 

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

 

(Confidential Information)

TRADE REFERENCES

Supplier: URUTRANSFOR S.A.

Tel.: 598 22044525

Country: URUGUAY

Goods/Services? : High-voltage transformers

 

 

Highest credit? : Open

 

 

Client since? : 1980

Terms? : 60 days

Performance? : Prompt

Supplier: PARTILUZ SA

Tel.: 598 25113614

Country: URUGUAY

Goods/Services? : Power transformers

 

 

Highest credit? : Open

 

 

Client since? : 2000

Terms? : 30 days

Performance? : Prompt

Supplier: SACEEM S.A.

Tel.: 598 29160208

Country: URUGUAY

Goods/Services? : Construction services

 

 

Highest credit? : Open

 

 

Client since? : 1950

Terms? : 60 days

Performance? : Prompt

Supplier: TEYMA S.A.

Tel.: 598 29022120

Country: URUGUAY

Goods/Services? : Stations, cables, among other

 

 

Highest credit? : No specified

 

 

Client since? : 1982

 

 

Comments : It was not possible to reach contact with supplier.

Supplier: NUEVO MANANTIAL S.A.

Tel.: 598 29002013

Country: URUGUAY

Highest credit? : n/a

 

 

Comments : It was not possible to reach contact with supplier.

 

SUPERINTENDENCY OF BANK & INSURANCE (SBS)

 

Debt structure for bank. SBS Latest Consolidated Credit Report as of : 31/03/2013

 

Bank

Debt Rating
(*) See caption

Current Debt

DOMESTIC CURRENCY

FOREIGN CURRENCY

OCA S.A.

1C

2,206,825.53

 

COOPERATIVA DE AHORRO Y CRÉDITO

1C

806,966.36

 

BBVA URUGUAY S.A.

1C

703,482.31

7,012,014.27

REPUBLICA ORIENTAL DEL URUGUAY

1C

139,971.91

53,993,324.52

DISCOUNT BANK (LATIN AMERICA) S.

1C

 

6,265,910.09

BANCO SANTANDER S.A.

1C

 

18,110,262.59

NUEVO BANCO COMERCIAL S.A.

1C

 

8,266,496.28

BANQUE HERITAGE (URUGUAY) S.A.

1C

 

1,883,377.92

CITIBANK N.A. SUCURSAL URUGUAY

2A

 

5,879,439.70

LLOYDS TSB BANK PLC.

2B

 

3,791,020.22

ITAU URUGUAY S.A.

1C

 

19,084,221.09

HSBC BANK (URUGUAY) S.A.

1C

 

5,074,662.87

Total

3,857,246.11

129,360,729.55

Guarantees

 

4,183,658.44

 

CONSOLIDATED DEBT (ALL BANKS)                              ENTITIES NUMBER : 12                           31/03/2013

 

 

 

Domestic Currency

Foreign Currency

 

 

--------------------------------------------

--------------------------------------------

TOTAL DEBT

:

3,857,246.11

129,360,729.55

 

 

=========================

=========================

NON COMPUTABLE GUARANTEES

:

 

10,537,524.05

 

 

Comments :

Category 1C - Debtors with a strong payment capacity. A great possibility to fulfill its obligations on time. They are customers with current operations or that have less than 10 days overdue. Positive results over the past 3 years are observed. Payment capacity will continue being good, even with important changes in macroeconomic conditions. Structured credit operations can be included with very good collection prospects. Category 2A - Debtors with adequate repayment capacity. Category 2B- Debtors whose payment capacity shows potential problems. Debtors may have difficulties with delays lesser than 60 days. Losses over the past 3 years, if any, are not important. Likewise, they can have delays lesser than 90 days in the report they have to submit to the institution.

RATING DESCRIPTION ACCORDING TO THE SBS (Caption)

Normal

Good Finantial Situation, Prompt payments, Consistent information. Increasing Trend, Creditworthy.

Potential Problem

Satisfactory Finantial Situation but cash flow can be weak. Irregular payments. Irregular Trend.

Deficient

Fair Finantial Situation, cash problems, profits shortage, delayed and overdue payments.

Doubtful

Heavy Finantial Situation, liquidity shotage, notorious delayed payments, Judicial Collection, Bad Management.

Loss

Bad Finantial Situation, Insufficient funds, declared bankruptcy, debt default.

 

 

 

 

GENERAL INFORMATION

 

REPUTATION

 

NOTHING AGAINST COMPANY

 

Explanation about commercial reputation

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.61

UK Pound

1

Rs.84.18

Euro

1

Rs.71.56

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.