MIRA INFORM REPORT

 

 

Report Date :

25.02.2014

 

IDENTIFICATION DETAILS

 

Name :

EMPRESA DISTRIBUIDORA SUR S.A. EDESUR

 

 

Registered Office :

San José 140 (1076), Buenos Aires City

 

 

Country :

Argentina

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

21.07.1992

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

Engaged in production and distribution of electricity

 

 

No. of Employees

2.439

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but Correct  

 

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

Argentina

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

argentina ECONOMIC OVERVIEW

 

Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Although one of the world's wealthiest countries 100 years ago, Argentina suffered during most of the 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. A severe depression, growing public and external indebtedness, and an unprecedented bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - at the time the largest ever - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines under the poverty line. Real GDP rebounded to grow by an average 8.5% annually over the subsequent six years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation also increased, however, during the administration of President Nestor KIRCHNER, which responded with price restraints on businesses, as well as export taxes and restraints, and beginning in 2007, with understating inflation data. Cristina FERNANDEZ DE KIRCHNER succeeded her husband as President in late 2007, and the rapid economic growth of previous years began to slow sharply the following year as government policies held back exports and the world economy fell into recession. The economy in 2010 rebounded strongly from the 2009 recession, but has slowed since late 2011 even as the government continued to rely on expansionary fiscal and monetary policies, which have kept inflation in the double digits. The government expanded state intervention in the economy throughout 2012. In May the Congress approved the nationalization of the oil company YPF from Spain's Repsol. The government expanded formal and informal measures to restrict imports during the year, including a requirement for pre-registration and pre-approval of all imports. In July the government also further tightened currency controls in an effort to bolster foreign reserves and stem capital flight.

 

Source : CIA

 

 

 

 

 


Registered Name

 

EMPRESA DISTRIBUIDORA SUR S.A. "EDESUR"

 

CUIT:                30-65511651-2

 

Summary

 

INCORPORATED IN 1992. FOLLOWER OF ACTIVITIES. BALANCE SHEET AS OF 31/12/2012:

 

LARGE OWN RESOURCES WITH A NEGATIVE FINAL PROFITABILITY. FIT FOR OPERATIONS IN ACCORDANCE WITH ITS IMPORTANCE IN THE SECTOR.

 

 

Operations

 

ELECTRICITY

DISTRIBUTION

COMMERCIALIZATION

 

 

Legal Structure

 

Business type:              Public Limited Company

Incorporated:                 21/07/1992

Registered:                    03/08/1992 - Nº 7042, Book 111, Volume A

Register #:                    1.559.939

Duration: Until                02/08/2087

End of fiscal year:          December 31st

 

 

Contact

 

Legal and Operative address:

San José 140 (1076), Buenos Aires City, Argentine Republic.

 

Phone: (54-011) 4470-7000

 


Partners

 

President:                     LOPEZ RUEDA RAFAEL JOSE

 

Vice-president:              CRISTIAN FIERRO MONTES

 

DIRECTORS:                 JUAN CARLOS BLANCO

MARCO FADDA

MARCELO SILVA IRIBARNE

GONZALO VIAL VIAL

ERNESTO PABLO BADARACO

 

ALTERNATE:                JOSE MIGUEL GRANGED

FERNANDO ANTOGNAZZA

ROBERTO FAGAN

JUAN PABLO LARRAIN MEDINA

RODRIGO QUESADA

MARIANA MARINE

MARIA INES JUSTO

 

The first two mentioned ones, as Managers, are in charge of the management and administration of the company, with the use of the social signature.

 

 

Corporate Stock

 

The company's corporate stock is established in $ 898.585.028, which has been totally subscribed and paid in. It is represented by the common and registered shares, with restricted transferability, of par value $1,00 each and with one vote per share:

 

Class "A" Stock .................. $ 506.421.831

Class "B" Stock .................. $ 392.163.197

 

Fits to highlight that 56,36% of the capital belongs to:

 

> DISTRILEC INVERSORA S.A.

Legal address:   San José 140, Buenos Aires City.

Activity:             Investments.

 

 

History

 

According to our registered information, the origin of the service of public electricity in the country comes from 1887, when it was established the first generating plant and the electric network, which in 1901 were absorbed by COMPAÑIA ALEMANA TRANSATLANTICA DE ELECTRICIDAD (C.A.T.E.).

This company started operating in 1909 with a generating plant in San Fernando, Buenos Aires Province and in 1929 it already offered services in a range which included Gran Buenos Aires and La Plata, Magdalena, Pilar, Gral.

 

Rodríguez, Marcos Paz, Gral. Las Heras, Cañuelas, Esteban Echeverría, San Vicente and Brandsen.

 

During 1936 1936 C.A.D.E. acquired the shares of COMPAÑIA HISPANOI AMERICANA DE ELECTRICIDAD S.A. (CHADE), obtaining the concession from 1921.

 

In 1911 it was incorporated the company COMPAÑIA ITALO ARGENTINA DE ELECTRICIDAD S.A.(CIAE) in order to perform the production and distribution of electricity and obtained its first concession of the Town Council of Buenos Aires City in 1912. Between 1926 and 1928 it included the rendering of services to Avellaneda, Lomas de Zamora and Quilmes respectively.

 

By mid-1958 it was created the company SERVICIOS ELECTRICOS DEL GRAN BUENOS AIRES SOCIEDAD ANONIMA (SEGBA). In 1958, C.A.D.E. was integrated as part of SEGBA. In 1980 it was nationalized the CIAE. In 1990 part of the Argentine electrical industry belonged to the public sector.

 

Through the Law 25065 (well-known as "Electrical Regulatory Framework") sanctioned by the Congress of the Nation and its decrees, they established the main objectives and guidelines for the restructuring and privatization of the electric industry.

 

Therefore, the company was incorporated on 21/07/1992 in the course of the decree of the Executive Nº 714 on 28/04/1992 and legal regulations. In the call of international public tender, where many of the most important operators of the electric business in the world together with important businessmen of Argentina participated, the Executive awarded 51% of the shares to the consortium DISTRILEC INVERSORA S.A., which is integrated by the following companies:

 

> CIA.NAVIERA PEREZ COMPANC S.A.

> DISTRIBUIDORA CHILECTRA METROPOLITANA S.A.

> ENERSIS S.A.

> EMPRESA NACIONAL DE ELECTRICIDAD S.A.

> PSI ENERGY ARGENTINA INC.

 

This consortium won because it offered the best price (US$ 511.021.021), signing the contract of shares' transfer on 06/08/1992.

 

On 01/09/1992 the consortium acquired the mentioned shares and the subject started operating inside the area of concession.

 

On 12/12/1995 ENERSIS (through a subsidiary) presented the only offer for 39% of the Class B common shares of EDESUR from the National Government. The offer for 387.263.754 shares was of US$ 390 millions and was accepted.

 

Nowadays DISTRILEC, parent company of EDESUR, owns 56,36% of the capital, being its owners companies of the group ENERSIS (51,5%) and PETROBRAS ENERGIA (48,5%).


Economic-Financial Position

 

BALANCE AT 31.12.2012 - GENERAL STRUCTURE VALUES THOUSAND PESOS.

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

CURRENT ASSETS 774 917

CURRENT ASSETS 4,076,108

CURRENT LIABILITIES 3,898,946

Non-current liabilities 339 091

EQUITY 612 988

NET SALES 2,970,617

FINAL LOSS (801,597)

 

ECONOMIC COMMENTARY:

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

The above figures show marked economic-financial imbalance, having closed the period with a loss. At present no difficulties are seen in their actions, although it has begun to closely observe their development.

 

 

Balance sheet

 

Balance sheet a/s

 

31/12/2012

 

31/12/2011

 

31/12/2010

Total assets

$

4.851.025,00

$

4.564.906,00

$

4.234.156,00

Current asset

$

774.917,00

$

700.917,00

$

894.685,00

Banks

$

48.235,00

$

0,00

$

0,00

Accounts receivables

$

524.093,00

$

0,00

$

0,00

Inventory

$

3.937.487,00

$

0,00

$

0,00

Fixed Assets

 

$ 33.980,00

 

$ 0,00

 

$ 0,00

Non-Current Assets

$

4.076.108,00

$

3.863.989,00

$

3.339.471,00

Investments

 

$ 1.307,00

 

$ 0,00

 

$ 0,00

Total Liabilities

$

4.238.037,00

$

3.132.500,00

$

2 .340.727, 00

Current Liabilities

$

3.898.946,00

$

2 .572.242, 00

$

1.880.689,00

Non-Current Liabilities

 

$ 339.091,00

 

$ 560.258,00

 

$ 460.038,00

StockHolders Equity

 

$ 612.988,00

$

1.432.406,00

$

1.893.429,00

Net Sales

$

2.970.617,00

$

2.373.302,00

$

2.260.809,00

Cost of Good Sold

$

2.883.279,00

$

2.173.168,00

$

1.869.624,00

Gross Result

 

$ 87.338,00

 

$ 200.134,00

 

$ 391.185,00

Administrative Expenses

 

$ 294.935,00

 

$ 257.069,00

 

$ 207.679,00

Selling Expenses

 

$ 433.660,00

 

$ 347.268,00

 

$ 246.397,00

Financial Income

 

$ 312.997,00

 

$ 0,00

 

$ 0,00

Other Expenses

 

$ 152.657,00

 

$ -56.820,00

 

$ 10.232,00

Final Result

 

$ -801.597,00

 

$ -461.023,00

 

$ -52.659,00

 

 

 


Balance sheet analysis

 

Indexes

31/12/2012

31/12/2011

31/12/2010

Current Ratio

19,88 %

27,25 %

47,57 %

Quick Ratio

-81,11 %

27,25 %

47,57 %

Short Term Indebtedness

636,06 %

179,57 %

99,33 %

Debt to Equity Ratio

691,37 %

218,69 %

123,62 %

Long Term Assets to Total Assets

84,03 %

84,65 %

78,87 %

Fixed Assets to Equity

5,54 %

0,00 %

0,00 %

Total Assets to Total Liabilities

114,46 %

145,73 %

180,89 %

Debt Ratio

87,36 %

68,62 %

55,28 %

Equity Ratio

12,64 %

31,38 %

44,72 %

Investments to Assets Ratio

81,17 %

0,00 %

0,00 %

Current Investment

15,97 %

15,35 %

21,13 %

Stocks Aging Days

498,45 dias

0,00 dias

0,00 dias

Day Sales

64,40 dias

0,00 dias

0,00 dias

Trade Debtors To Assets

10,80 %

0,00 %

0,00 %

Total Assets Turnover

61,24 %

51,99 %

53,39 %

Net Worth Aging

484,61 %

165,69 %

119,40 %

Fixed Assets Aging

8.742,25 %

Infinito %

Infinito %

Gross Profit

97,06 %

91,57 %

82,70 %

Financial Expenses on Sales Ratio

10,54 %

0,00 %

0,00 %

Commercial Exp. on

14,60 %

14,63 %

10,90 %

Sales ratio

 

 

 

Administrative Exp. On Sales ratio

9,93%

10,83%

9,19%

 

 

Assets

 

REAL ESTATE:

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

Inside the company's fixed assets is included the large property located in San

José 140, Buenos Aires City, which has a high realization value.


Evolution and Results

 

FOREIGN TRADE:

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

In the last twelve months it has carried out imports for a total value of US$

108.063 from the following countries:

EEUU 67.429

SUECIA 36.810

SUIZA 3.824

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

The company is engaged in the rendering of services of distribution and

commercialization of electricity in the Southern area of Buenos Aires City and

in twelve areas of Buenos Aires Province:

 

Almirante Brown Florencio Varela

Avellaneda Lanús

Berazategui Lomas de Zamora

Cañuelas Presidente Perón

Esteban Echeverría Quilmes

Ezeiza San Vicente

 

It also performs the acquisition of shars of other distributing companies of

electricity, by its own account or associated with third parties.

 

Between its main works during 2006, fits tso highlight the promotion of the

Parque Centenario substation, with the objective of supplying the growth of the

demand in Western area of Buenos Aires City, which is supplied by the

substations Parque Centenario, Villa Crespo and Caballito, adapting the offer

of transformation of level 132/13,2 kV in the first mentioned sub-station.

 

At the same time it carried out the technological renewal and enlargement of

the Banfield substation, with the objective of enlarging the installed capacity

for the demand of Banfield, as well as the sectors located in Adrogué,

Temperley, Lomas de Zamora and Valentín Alsina.

 

Fits to highlight the enlargement of the substation Once, with the objective of

supplying the growth of the demand in the central area of Buenos Aires City.

 

The beneficiaries of these offerings are the customers of Almagro, Balvanera,

Boedo, San Cristobal, Recoleta and Monserrat.

 

It has an important infrastructure and organization, where its directors work

together with 2.439 employees, among administrators, technicians and

operators.

 

* 2.439 EMPLOYEES

 


Branches

 

Estados Unidos 3250, Ciudad de Buenos Aires

Senillosa 1833, Ciudad de Buenos Aires

Zañartu 509, Ciudad de Buenos Aires

Saraza 502, Ciudad de Buenos Aires

Doblas 1880, Ciudad de Buenos Aires

Figueroa Alcorta 748, Ciudad de Buenos Aires

Angel Gallardo 34, Ciudad de Buenos Aires

Ramos Mejia 1011, Ciudad de Buenos Aires

Juan B. Alberdi 4037, Ciudad de Buenos Aires

Alsina 1367, Ciudad de Buenos Aires

Almeyra s/nº, Lanus, Buenos Aires.

Avda. H. Yrigoyen 4836, Lanus, Buenos Aires

San Martin 453, Quilmes, Buenos Aires

Primera Junta 609, Quilmes, Buenos Aires

Salta 957, Bº San Jose, Alm.Brown, Buenos Aires

Avda. Rigolleau 464, Berazategui, Buenos Aires

Diagonal Toll 1596, Adrogue, Buenos Aires

Avda.Mitre 655, Avellaneda, Buenos Aires

Lamadrid 448, Dock Sud, Buenos Aires

Avda. España 2235, Ciudade de Buenos Aires

Balcarce 547, Ciudad de Buenos Aires

Carlos Pellegrini 431, Ciudad de Buenos Aires

Maipu 333, Ciudad de Buenos Aires

25 de Mayo s/nº, Cañuelas, Buenos Aires

Nicandro Rodriguez 95, San Vicente, Buenos Aires

Newbery 3082, Glew, Buenos Aires

Avellaneda 47, Ezeiza, Buenos Aires

Plaza Brown 260, Adrogue, Buenos Aires

Avda. Calchaqui 492, Berazategui, Buenos Aires

Cosquin 2878, Banfield, Buenos Aires

Donato Alvarez s/nº, Monte Chingolo, Buenos Aires

Avda. San Martin 874, Florencio Varela, Buenos Aires

Avda. 12 de Octubre 150, Quilmes, Buenos Aires

H.Yrigoyen 4636, Lanus, Buenos Aires

Las Heras 2201, Lomas de Zamora, Buenos Aires

H.Yrigoyen 9071, Lomas de Zamora, Buenos Aires

 

 

Payment Record and Credit Risk

 

BANKS:

------

BANCO DE GALICIA Y BUENOS AIRES S.A.

BANCO SANTANDER RIO

STANDARD BANK

BANCO CIUDAD DE BUENOS AIRES

BANCO PATAGONIA SUDAMERIS

BANCO CREDICOOP COOP.LTDO.

BANCO ITAU

HSBC BANK ARGENTINA

 

CREDIT RISK:

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

BANCO CIUDAD $ 71.147.000

SANTANDER RIO 52.132.200

ITAU 23.045.800

ICBC 18.750.500

MACRO 14.691.300

PCIA 10.093.400

 

 

CITIBANK 7.509.700

COMAFI 3.013.600

GALICIA 1.671.400

FRANCES 486.000

AMERICAN EXPRESS 2.000

 

 

(1) Normal Situation.

BANCO SUPERVIELLE 1.142.600

 

 

(3) More than 91 at 180 delay days.

 

 

INSURANCE:

----------

CONSOLIDAR S.A.

 

 

Concept

 

The company owner to present duly fulfills the obligations assumed general and

is referred to in good means in operational terms that are usual.

 

* COMPLIANCE NO OBJECTIONS.

 

 

Final Opinion

 

Finally believe that it is a society which may relate in credit operations within sums of moderate importance, with the application of appropriate guarantees.

 

* SUITABLE FOR CREDITS.


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.12

UK Pound

1

Rs.103.38

Euro

1

Rs.85.32

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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