Buenos Aires, August 5th, 2024
Results for six-month period ended on June 30th, 2024
Compañía de Transporte de Energía Eléctrica en Alta Tensión Transener S.A. ("Transener" or the "Company") announces the results for six-month period ended on June 30th, 2024
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Ticker: TRAN
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Transener, Argentina's leading electricity transmission company, announces the results for six-month period ended on June 30th, 2024.
Main results for six-month period ended on June 30th, 2024, restated in constant currency at June, 20241
José S. Refort
Chief Financial Officer
Andrés G. Colombo
Accounting and Tax Manager
(Andres.Colombo@trasnsener.com.ar)
Marcelo A. Fell
Financial Manager
(Marcelo.Fell@transener.com.ar)
investor@transener.com.ar
Tel: | (5411) 5167-9101 |
www.transener.com.ar
www.transba.com.ar
Consolidated revenues of AR$ 135,937 million, 3.2% higher than the AR$ 131,670 million for same period last year, due to the effect of the tariff adjustment implemented in the second semester of 2023 and the first semester of 2024, net of inflation.
Consolidated EBITDA2 of AR$ 55,001 million, 9.4% lower than the AR$ 60,723 million for same period last year, mainly due to the increase in operating costs, partially offset by the increase in revenues and other operating income.
Consolidated profit attributable to the owners of the company of AR$ 24,720 million, 16.0% lower than the AR$ 29,421 million for same period last year.
Main results for the Second Quarter of 2024 3
Consolidated revenues of AR$ 73,796 million, 23.8% higher than the AR$ 59,620 million for the same period last year, due to the effect of the tariff adjustment implemented in the second semester of 2023 and the first semester of 2024, net of inflation.
Consolidated EBITDA2 of AR$ 30,846 million, 26.2% higher than the AR$ 24,433 million for the same period last year, principally due to the increase in revenues of 23.8%.
Consolidated profit attributable to the owners of the company of AR$ 12,468 million, 29.3% higher than the AR$ 9,640 million for the same period last year, mainly due to the increase in revenues of 23.8%.
1Expressed in constant currency, in accordance with IAS 29.
2Consolidated EBITDA represents consolidated operating results before depreciation.
3The financial information presented in this document for the quarters ended on June 30th, 2024 and 2023 is based on the unaudited condensed interim consolidated financial statements prepared according to the accounting framework established by the National Securities Commission (CNV), corresponding to the three-month and six-month periods ended on June 30th, 2024 and 2023.
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1. Financial Situation
As of June 30th, 2024, Transener maintains a principal balance of AR$ 28 million from a loan with Banco de la Nación Argentina.
Regarding Transener's ratings, Fix Scr S.A. Credit Rating Agency maintained the long-term issuer rating of A+ (arg) with stable outlook.
2. Tariff Situation
On December 16th, 2023, through Decree No. 55/2023, the National Executive Power declared the state of emergency in the National Energy Sector until December 31st, 2024 related to the generation, transmission and distribution of electric energy under federal jurisdiction.
Art.3 of the aforementioned decree determined the beginning of the Tariff Review according to art. 43 of Law No. 24,065 concerning the generation, transmission and distribution of electric energy under federal jurisdiction, establishing that the entry into force of the resulting tariff schedules should not exceed December 31st, 2024.
On January 2nd, 2024, through Resolution No. 3/2024, the ENRE called for a public hearing, which was held on January 29th, 2024, in order to inform and listen to opinions regarding the proposals of the concessionaires of the public electric energy transmission service for a temporary tariff adjustment, prior to defining the rates to be applied by the concessionaires.
Consequently, the ENRE, by Resolutions No. 104/2024 and 105/2024, determined the hourly values of remuneration effective as from February 19th, 2024, establishing an increase of 179.7% and 191.1% for Transener and Transba, respectively, over the tariff values of November 2023. Likewise, a tariff adjustment formula was established, based on salary variation index, wholesale prices and consumer prices, with monthly application starting in May 2024.
However, on May 9th, 2024, the ENRE informed Transener and Transba that, following instructions from the Ministry of Economy, the updating of the tariff adjustment settled in Resolutions No. 104/2024 and 105/2024 for May, 2024, would be suspended. This decision was strongly opposed by Transener and Transba due to the adverse impact on their revenues, which are essential for service operation.
On June 11th, 2024, the ENRE, following instructions from the Ministry of Economy, suspended the monthly tariff update for June 2024, and modified the tariff adjustment formula as from July 2024, based on the forecasted inflation for the semester July/December 2024. Transener and Transba reiterated their opposition to these measures due to the uncertainty in the methodology and undefined ratings calculation, requesting that the ENRE take appropriate actions to restore revenues in accordance with Resolutions No. 104/2024 and 105/2024.
On July 2nd, 2024, the ENRE, following instructions from the Ministry of Economy, suspended the monthly tariff update for July 2024. This decision was once again rejected by Transener and Transba, requesting the ENRE to promptly regularize the revenues update.
On the other hand, on April 15th, 2024, through Resolution No. 223/2024, the ENRE approved the "Program for the Tariff Review of Electricity Transmission in 2024", establishing the methodology and criteria for the Full Tariff Review to be considered by the companies of electricity transmission for their tariff proposals to be applied as from January 1st, 2025. The ENRE formally requested information in order to determine the capital base and to evaluate operating costs and the investment plan. The information of capital base, historical costs, property, plant and equipment, status of easements and existing facilities was to be submitted to the ENRE before May 17th, 2024, which was presented as requested, while the projected costs, investments and annual remuneration required must be submitted before September 14th, 2024.
In accordance with Resolution No. 34/2024, the Secretary of Energy modified the priority order of CAMMESA payments, prioritizing payments to transmission companies over generation companies. As of the date of this report, the Company has not registered delays in the collection of its remuneration.
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3. Operating Information
The Company continues to carry out the execution of the investment plan, maintaining as of June 30th, 2024 commitments for the acquisition of capital expenditures for an amount of approximately AR$ 23,500 million.
Transener, as the concessionaire of the extra high voltage electric power transmission network, is in charge of the follow-up of the expansions requested by the users of the network.
Here follows the most significant works in progress under Transener's supervision:
-
Federal Plan for Transmission Works
Chaco Substation Expansion - Second 300MVA Transformer
New transformation field for the backup transformer. The work is on hold, pending update of the contract price by the contracting authority. - Other works to be undertaken by the Wholesale Electricity Market (WEM) Agents
Río Santa Cruz Hydroelectric Exploitation
Cóndor Cliff and La Barrancosa Hydroelectric Power Plants- 500kV EHVL and New 500kV Jorge Cepernic Substation
In December 2023, progress was made in the engineering analysis and revision, with 33% of the work approved. As of June 30th, 2024, the work is on hold, foreseeing for the next months a scope revision and the contractual price by ENARSA as the contracting authority.
Resistencia Substation - Fields 01 and 02 outputs in 132kV
Adequacy of both line outputs with equipment update. The pending engineering works are in progress, foreseeing the commissioning in September 2024.
Cobos Substation - DAG Hub Node (Puna Solar-AltiplanoSolar-Cauchari Solar Generators) Installation required by DAG (Automatic Generation Disconnection) system and covered by the photovoltaic generators in NOA area.
Puerto Madryn Substation Expansion - Transformation Capacity (Goldwing Loma Blanca VI Eolic Park)
Installation of a 600 MVA transformer bank in 500/138/34.5kV (T3PY), foreseeing the commissioning in October 2024, which will allow renewable energy to be exported to the SADI (Argentine Interconnection System).
Rosario Oeste Substation Expansion (for EPESF) - Output in 132 kV DT HVL to Godoy Substation Commissioning of Field N° 4 of the 132kV Rosario Oeste Substation yard for new line output to the Provincias Unidas de la Provincia de Santa Fe Substation, via underground cable.
Gran Mendoza Substation - Outputs in 200 kV to Godoy Cruz
Work in the final stage to connect two new outputs in 200 kV for EDEMSA Distributor.
Alicurá Substation - Field 132 kV and output to the New Dina Huapi Substation
In June 2024, a new contract was signed with Transcomahue to upgrade the 132 kV Alicurá Substation. This upgrade will enable the connection to the new 132kV HVL of the ALIPIBA II project.
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Here follows the most significant works in progress under Transba's supervision:
- Other works to be undertaken by the Wholesale Electricity Market (WEM) Agents
Sur Substation
New Sur Substation in Bahía Blanca with 2 45/30/45 MVA transformers in 132/33/13.2kV and opening of Chañares - Petroquímica 132kV HVL.
Ayacucho Substation
New Ayacucho Substation with capacity of 2x30/20/30 MVA, which will be connected to the Tandil - Las Armas 132kV HVL, the construction of a 3.4 km double-circuit, and new 4x33 kV + 4x13.2kV outputs.
Numancia Substation
In June 2024, the new Numancia 33/132kV Substation was partially commisioned, to which it will be connected the 160 MW Eolic Park La Elbita (36 wind turbines of 4.2 MW), sectioning Tandil - Necochea HVL, 42 km away from Tandil.
North San Nicolás Substation
Electromechanical assembly of the new North San Nicolás 132/33/13.2kV - 2x40/40/40 MVA + 6Px33-8Px13 Substation, sectioning the San Nicolás - General Lagos 132kV HVL, and a third connection of the lines from Laminados Industriales.
La China Substation
New substation to connect Vientos Olavarria 100.8 MW Eolic Park, sectioning the Olavarría - Henderson HVL.
Gonzales Chaves Substation Expansion
In March 2024, works for the installation of 2 132/33/13 kV-15MVA transformers were commenced. One replaces the 10 MVA T1CH and the other one replaces a 5MVA transformer of 33/13 kV.
New Cangrejales Substation
Replacement of the current Profertil Substation with the New Cangrejales Substation. The new substation will feature a double set of bars in 132kV with an interior GIS coupler technology, providing 2 outputs to Profertil Plant and 3 line outputs to Petroquímica Bahía Blanca Substation.
New Guaminí Substation
In May 2024, the construction of the New Guaminí 132/33/13.2 kV - 2x30/30/20 MVA Substation was started, and also the connection of a 132kV HVL of 63km to Coronel Suárez Substation.
Alvarez Jonte Substation
New Álvarez Jonte Substation to which it will be connected to PE La Escondida (110 MW), sectioning the existing 132kV Chascomús - Verónica HVL (EDELAP).
Tornquist Substation - Transformer replacement
In the first semester of 2024, EDES completed the Stage I of the replacement of the 132/34,5/13,8kV 15/10/10 MVA T1TO transformer with a new unit of 30/30/20 MVA.
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Business Development
Given its position as a leader in electricity transmission, Transener is involved in the supply of operation and maintenance services, engineering, testing and commissioning of lines and substations for new works or for the expansion of existing works in the 500kV system. Likewise, it maintains installations of communications that are affected by dark fiber lease contracts.
Transener maintains its main contracts with the following customers:
- Minera Alumbrera Ltd.
- AES Argentina Generación S.A.
- Nucleoeléctrica Argentina S.A.
- Silica Networks Argentina S.A.
- Capex S.A.
Rate of failures
The following charts show the rate of failures of Transener and Transba as from December 2019.
Transener and Transba Concession Agreements state a maximum rate of failures of 2.5 and 7.0 outages per 100 km over a 12-month period, respectively.
Transener
3,0
2,5
2.5 FAILURE LIMIT
2,0
1,5
COMPANY FAILURES
1,0
0,5 |
0,0
DECEMBER | MARCH JUNE SEPTEMBER DECEMBER | MARCH | JUNE SEPTEMBER DECEMBER | MARCH JUNE SEPTEMBER DECEMBER | JANUARY | FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER | JANUARY FEBRUARY MARCH APRIL MAY 2024 - JUNE |
2019 - | 2020 - | 2021 - | 2022 - | 2023 - |
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Transba
8,0
7,0
6,0 | 7.0 FAILURE LIMIT |
5,0 |
4,0 COMPANY FAILURES
3,0 |
2,0 |
1,0 |
0,0
DECEMBER | MARCH | JUNE | SEPTEMBER | DECEMBER | MARCH | JUNE | SEPTEMBER | DECEMBER | MARCH | JUNE | SEPTEMBER | DECEMBER | JANUARY | FEBRUARY | MARCH | APRIL | MAY | JUNE | JULY | AUGUST | SEPTEMBER | OCTOBER | NOVEMBER | DECEMBER | JANUARY | FEBRUARY | MARCH | APRIL | MAY | 2024 - JUNE |
2019 - | 2020 - | 2021 - | 2022 - | 2023 - |
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4. Significant Financial Information
4.1 Consolidated Statements of Operations
Six-month period ended on | Three-month period ended on | |||
In AR$ MM | June 30th | June 30th | ||
2024 | 2023 | 2024 | 2023 | |
Revenues | 135,937 | 131,670 | 73,796 | 59,620 |
Operating costs | (88,734) | (76,320) | (46,606) | (39,357) |
Gross profit | 47,204 | 55,350 | 27,189 | 20,263 |
Administrative expenses | (11,650) | (9,455) | (5,878) | (4,889) |
Other operating income/(expenses), net | 3,790 | (480) | 1,424 | 1,388 |
Operating income | 39,343 | 45,415 | 22,735 | 16,761 |
Finance income | 18,048 | 22,091 | 5,306 | 12,730 |
Finance costs | (8,847) | (9,793) | (3,708) | (5,055) |
Other financial results | (6,419) | (1,123) | (822) | (761) |
Loss on net monetary position | (5,866) | (11,595) | (4,867) | (8,963) |
Profit before tax | 36,260 | 44,996 | 18,644 | 14,711 |
Income tax | (11,539) | (15,575) | (6,176) | (5,071) |
Profit for the period from continuing operations | 24,720 | 29,421 | 12,468 | 9,640 |
Profit for the period attributable to : | ||||
Owners of the company | 24,720 | 29,421 | 12,468 | 9,640 |
Total for the period | 24,720 | 29,421 | 12,468 | 9,640 |
Other comprehensive results | ||||
Profit for the period | 24,720 | 29,421 | 12,468 | 9,640 |
Other comprehensive results for the period, net of | ||||
taxes | - | - | - | - |
Comprehensive profit for the period | 24,720 | 29,421 | 12,468 | 9,640 |
Comprehensive profit for the period attributable to | ||||
: | ||||
Owners of the company | 24,720 | 29,421 | 12,468 | 9,640 |
Total for the period | 24,720 | 29,421 | 12,468 | 9,640 |
EBITDA | 55,001 | 60,723 | 30,846 | 24,433 |
Acquisition of property, plant and equipment | 14,388 | 16,587 | 8,633 | 12,501 |
Depreciation | 15,658 | 15,307 | 8,111 | 7,673 |
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4.2 | Consolidated Balance Sheets | |||
In AR$ MM | As of June 30th, | As of December 31st, | ||
2024 | 2023 | |||
ASSETS | ||||
Non-current assets | ||||
Property, plant and equipment | 499,581 | 501,405 | ||
Inventories | 26,594 | 24,303 | ||
Other receivables | 5,355 | 6,283 | ||
Total Non-current assets | 531,530 | 531,990 | ||
Current assets | ||||
Trade accounts receivable | 50,621 | 51,022 | ||
Other receivables | 13,936 | 19,106 | ||
Investments at fair value | - | 6,370 | ||
Cash and cash equivalents | 40,454 | 23,844 | ||
Total Current assets | 105,010 | 100,341 | ||
TOTAL ASSETS | 636,541 | 632,331 | ||
LIABILITIES | ||||
Non-current liabilities | ||||
Contract liabilities | 5,050 | 5,292 | ||
Deferred tax liabilities | 78,450 | 79,914 | ||
Employee benefits payable | 11,395 | 11,966 | ||
Trade accounts payable | 618 | 1,150 | ||
Total Non-current liabilities | 95,514 | 98,323 | ||
Current liabilities | ||||
Provisions | 1,385 | 1,641 | ||
Loans | 29 | 449 | ||
Income tax payable | 17,051 | 12,179 | ||
Taxes payable | 4,406 | 1,357 | ||
Payroll and social securities taxes payable | 15,540 | 20,210 | ||
Employee benefits payable | 2,849 | 2,992 | ||
Contract liabilities | 412 | 378 | ||
Trade accounts payable | 20,789 | 40,956 | ||
Total Current liabilities | 62,461 | 80,162 | ||
TOTAL LIABILITIES | 157,975 | 178,485 | ||
EQUITY | ||||
Share capital | 445 | 445 | ||
Share capital adjustment | 212,393 | 212,393 | ||
Legal reserve | 21,038 | 20,447 | ||
Optional reserve | 12,391 | 12,068 | ||
Voluntary reserve | 219,970 | 209,060 | ||
Other comprehensive results | (12,391) | (12,391) | ||
Retained earnings | 24,720 | 11,825 | ||
TOTAL EQUITY | 478,566 | 453,846 | ||
TOTAL LIABILITIES AND EQUITY | 636,541 | 632,331 | ||
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5. Analysis of results for six-month period ended on June 30th, 2024 compared to same period last year
Revenues
Consolidated revenues for six-month period ended on June 30th, 2024 amounted to AR$ 135,937 million, 3.2% higher than the AR$ 131,670 million for same period last year.
Consolidated regulated revenues for six-month period ended on June 30th, 2024 amounted to AR$ 119,126 million, 1.2% higher than the AR$ 117,660 million for same period last year, due to the effect of the tariff adjustments implemented in the second semester of 2023 and the first semester of 2024, net of inflation.
Consolidated non-regulated revenues for six-month period ended on June 30th, 2024 amounted to AR$ 16,812 million, 20.0% higher than the AR$ 14,010 million for same period last year.
Operating and administrative expenses
Consolidated operating and administrative expenses for six-month period ended on June 30th, 2024 amounted to AR$ 100,384 million, 17.0% higher than the AR$ 85,775 million for same period last year, mainly due to an increase in labor costs (mainly due to long term employee benefits payable costs), equipment maintenance and insurance.
Other operating income/(expenses), net
Consolidated other operating income/(expenses), net for six-month period ended on June 30th, 2024 resulted in a profit of AR$ 3.790 million, compared to a loss of AR$ 480 million for same period last year, mainly due to an increase in insurance claims recoveries and gains from sales of property, plant and equipment, partially offset by an increase in penalties for service quality.
Operating profit
Consolidated operating profit for six-month period ended on June 30th, 2024, amounted to AR$ 39,343 million, 13.4% lower than the AR$ 45,415 million for same period last year, as a result of aforementioned factors.
Financial results
Consolidated financial results for six-month period ended on June 30th, 2024 resulted in a loss of AR$ 3,084 million, 635.3% higher than the AR$ 419 million for same period last year, mainly due to a higher loss in exchange rate differences, net of inflation.
Income tax
Consolidated income tax for six-month period ended on June 30th, 2024 resulted in a loss of AR$ 11,539 million, 25.9% lower than the AR$ 15,575 million for same period last year, mainly due to a lower profit before tax.
You may find additional information on the Company at:
www.transener.com.ar
www.transba.com.ar
www.cnv.gob.ar
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