Quarterly Financial Report March, 2009
EGE Haina Reports First Quarter 2009 Losses of US$3.3 million; Revenues of US$55.4 million Santo Domingo, Dominican Republic, May 7th, 2009 – EGE Haina announced today first quarter 2009 losses of US$3.3 million, compared to net income of US$15.0 million in the first quarter 2008, driven by a decrease in energy sales price and lower demand. First quarter 2009 revenues were US$55.4 million, showing a 45% decrease when compared with revenues for the same period of the previous year.
Financial and Operational Summary (US$ Thousands, except for Operational data) 1Q 2009
1Q 2008
Var %
Revenues
55,358
100,484
-45%
Operating Costs
52,382
79,377
-34%
Variable Margin
18,890
40,086
-53%
EBITDA¹
6,841
25,501
-73%
Operating Income
2,975
21,107
-86%
Net (loss) Income
(3,305)
14,989
-122%
2,602
16,733
-84%
Availability, %
95
97
-2%
Sales, GWh
457
505
-9%
Generation, GWh
346
377
-8%
Spot Purchase, GWh
110
126
-13%
Description
Operating cash, net
Quarter Highlights and Recent Developments In January, 2009, the Company performed the 48,000 hrs maintenance of Sultana del Este’s Engine #4. Such maintenance took 10 days to be completed. In February, 2009, the Company entered into a revolving credit facility with BHD Panama by US$4.5 million at 9.25%. On February 9th, 2009, the Company entered into an Agreement with CDEEE in which the latter offered to pay the outstanding accounts receivable generated during 2008 between the Company and Edenorte and Edesur in the concept of energy and capacity sales under the PPAs, for a total amount of US$77.0 million. The settlement of this debt was made in exchange for Sovereign bonds maturing in June 2010, 2011 and 2012; with interest accrual at 10.60% fixed rate and interest payable in semi-annual installments. The issuance of such bonds was approved by Law No. 490-08 of the National Congress of the Dominican Republic. On February 24th, 2009, the Board approved a dividend payment in the amount of US$40.0 million net of taxes that was paid 50% in cash and 50% with sovereign bonds under law 490-08 during March and April, 2009. In March, 2009, the Company issued short term debt with Banreservas by US$5.0 million at 11%. On March 3rd, 2009, the Company obtained the approval of the Dominican Security Exchange Superintendence for the issuance of a local bond amounting to US$30 million. This bond will be issued in five tranches of US$6 million each. The proceeds will be used to fund working capital needs. On March 16th, 2009, the Company and CDEEE agreed to offset US$17.6 million of the Company’s accounts payable to CDEEE against the same amount of accounts receivable from Edenorte and Edesur. On May 5th, 2009, the first tranche of US$6 million of local bond was placed, with a maturity of 18 months and an annual interest rate of 8% that will be paid monthly to investors. Fitch Dominicana has rated the issuance as BBB (dom) for long term instruments in foreign currency. 1
EBITDA is a non-GAAP financial measure, which is calculated by adding depreciation and amortization expenses to the Operating (loss) income.
1