Quarterly Financial Report December, 2008
EGE Haina Reports Fourth Quarter 2008 Losses of US$2.6 million; Revenues of US$92.6 million, down 10% Santo Domingo, Dominican Republic, April 13th, 2009 – EGE Haina announced today fourth quarter 2008 losses of US$2.6 million, compared to net income of US$21.6 in the fourth quarter 2007, driven by a decrease in energy sales price and lower demand. Fourth quarter 2008 revenues were US$92.6 million, showing a 10% decrease when compared with revenues for the same period of the previous year.
Financial and Operational Summary (US$ Thousands, except for Operational data) Description
4Q'08
4Q'07
Var %
FY'08
FY'07
Var %
Revenues
92,553
103,206
-10%
460,567
344,520
34%
Operating Costs
93,508
84,239
11%
402,057
289,308
39%
Variable Margin
22,702
39,109
-42%
127,437
124,103
3%
EBITDA
2,340
22,270
-89%
73,815
70,535
5%
Operating Income
(955)
18,967
-105%
58,511
55,211
6%
Net (loss) Income
(2,633)
21,496
-112%
38,573
37,972
2%
Operating cash, net
10,561
(35,294)
-130%
6,136
1,222
402%
Availability, %
92
99
-7%
91
97
-6%
Sales, GWh
496
544
-9%
2,146
2,172
-1%
Generation, GWh
357
395
-10%
1,439
1,674
-14%
Spot Purchase, GWh
139
149
-6%
707
499
42%
Quarter Highlights and Recent Developments On October 23rd, 2008 the Company paid the third interest coupon under the US$175 million Senior Notes. On October 29th, 2008 Ede Este and EGE Haina signed a contract to suspend the PPA signed in 1999 between the parties. The suspension is effective from November 1st and will last until EDE Este pays in full its current outstanding electricity bills with EGE Haina. As per conditions of the agreement, EGE Haina will continue to receive the revenues of pledged customers and credit card receipts for approximately US$6.0 million per month. On November 17th, 2008, the Company started the 48,000 hrs programmed maintenance to Sultana del Este’s Engine #9. This task lasted 12 days and was carried out without any issues to report. On November 26th, 2008 the Company entered into a Letter of Credit (LC) with Citibak for an amount up to US$3,014,000, in favor of Carbon and Minerals, LLC (coal supplier). The LC is collateralized with a time deposit held at Citibank. On December 4th, 2008, the Board of Directors authorized a dividend payment in the amount of US$20 million net of taxes. Payment was made on December 22nd, 2008. 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. 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.
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