Quarterly Financial Report June, 2009
EGE Haina Reports Second Quarter 2009 Net Income of US$4.8 million; Revenues of US$68.6 million Santo Domingo, Dominican Republic, July 22th, 2009 – EGE Haina announced today second quarter 2009 Net Income of US$4.8 million, compared to net income of US$6.8 million in the second quarter 2008, driven by a decrease in energy sales price and lower demand. First quarter 2009 revenues were US$68.6 million, showing a 43% decrease when compared with revenues for the same period of the previous year.
Financial and Operational Summary (US$ Thousands, except for Operational data) Description
2Q'09
2Q'08
Var %
YTD'09
YTD'08
Var %
Revenues
68,621
121,353
-43%
123,978
221,838
-44%
Operating Costs
63,298
108,460
-42%
115,680
187,837
-38%
Variable M argin
23,991
32,422
-26%
42,880
72,507
-41%
EBITDA¹
9,183
17,019
-46%
16,025
42,520
-62%
Operating Income
5,323
12,893
-59%
8,298
34,000
-76%
Net Income
4,774
6,769
-29%
1,470
21,758
-93%
(10,790)
(25,705)
-58%
(8,188)
(8,972)
-9%
Availability, %
87
97
-10%
92
89
4%
Sales, GWh
478
558
-14%
936
1,062
-12%
Generation, GWh
330
361
-9%
675
738
-8%
Spot Purchase, GWh
150
197
-24%
260
323
-20%
Operating cash, net
Quarter Highlights and Recent Developments On May 5th, 2009, the first tranche for US$6 million of the 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. On May 15th, 2009, the Company and Centros del Caribe, S.A. entered into a termination agreement to the Power Sales Contract signed in April 2002. In May, 2009, the Company and Consorcio Energético Punta Cana-Macao (“CEPM”) entered into the first amendment to the Power Purchase Agreement signed in August 2008. The amendment eliminates the Euro indexation contained in the energy price and establishes a new minimum capacity of 48.1 MW. On June 4th, 2009, the Company entered into a $10 million loan with Banreservas at an annual interest rate of 9%, payable on a monthly basis. The loan is guaranteed by $12.2 million in Sovereign Bonds. The principal matures as follows: $7.5 million on June 30, 2010 and $2.5 million on June 30, 2011. On June 4th, 2009, the line of credit with Banreservas was paid-in full in an amount of $5.0 million. On June 16th EGE Haina offset accounts receivables from EDE Norte and EDE Sur with accounts payable to CDEEE, Hidro and ETED by US$22.7 million. Agreements’ execution is still pending. On June 17th, 2009, the second tranche for US$6 million of the local bond was placed, with a maturity of 24 months and an annual interest rate of 8.5% that will be paid monthly to investors. On June 19th, 2009, the Company entered into a $5 million loan with BHD at an annual interest rate of 9%, payable on a monthly basis. The loan is guaranteed by $7.2 million in Sovereign Bonds and has a two-year term. On June 19th, 2009, the line of credit with BHD Panamá was paid-in full in an amount of $4.5 million. 1
EBITDA is a non-GAAP financial measure, which is calculated by adding depreciation and amortization expenses to the Operating income.
1