DRILL RESULTS AND FINALS IMMINENT.

2x75k buys were mine @20.13

RNS Number : 9497Q
Andes Energia PLC
12 August 2010

surely a buy?!

Andes Energia plc ("Andes")

(AIM:AEN)



Unaudited results for

Empresa Distribuidora de Electricidad de Mendoza Sociedad Anonima ("EDEMSA")

for the half year ended 30 June 2010


EDEMSA, the electricity distributor for the province of Mendoza in which Andes has a 51 per cent. indirect interest, has published its financial results for the half year ending 30 June 2010. This information, which has been prepared under Argentine GAAP and in Spanish, is available from the web-site of the Argentine Comision Nacional de Valores at www.cnv.gov.ar. This announcement sets out the unaudited financial information of EDEMSA for the same period prepared under IFRS in Argentine Pesos (AR$).



Financial Overview of EDEMSA


In the first half of 2010 EDEMSA reported a profit of AR$27 million, a significant improvement from the loss of AR$11 million in the first half of 2009.

Sales for the first half of 2010 increased by AR$85 million over the first half of 2009, representing an increase of 35%.



This increase resulted primarily from:

a 6.8% increase in the demand for energy;

a decrease in energy losses to a historically low 12 month rolling average of 10.8% (31 December 2009: 11.3%); and

the benefit of the increases in electricity tariffs for the third tariff review period.



Gross profit showed an increase from AR$60 million in the first half of 2009 to AR$103 million in the first half of 2010, representing 31% of sales (half year ending 30 June 2009: 25% of sales). Operating profit recovered from AR$13 million in the first half of 2009 to AR$47 million in the first half of 2010, a 270% increase. EDEMSA recorded EBITDA of AR$61 million for the first half of 2010 (half year ending 30 June 2009: AR$27 million).



As noted in our announcement of 7 July 2010, EDEMSA and the investment trust established by EDEMSA signed agreements with Magnus International S.A. ("Magnus"), through which it acquired the rights over the EDEMSA bonds held under the Total Return Swap Agreement ("TRS") and the TRS Participation Agreement referred in our announcement of 14 June 2010. As consideration, EDEMSA paid Magnus the sum of US$13,048,556 and AR$21,600,000 (to be paid in 12 monthly instalments) and the trust paid Magnus US$11,930,980.



It should be noted that the trust also holds 3.93% of the Series B bonds and 98.93% of the Series D certificates.



As a result of these transactions, on termination of the TRS, EDEMSA will own, directly or indirectly through the trust; 88.06% of the Series A bonds with a face value of US$46,593,877; 100% of the Series B bonds with a face value of US$16,071,026; 98.93% of the Series D bonds with a face value of US$14,765,463; and 98.93 % of the Series D certificates. All face values are stated as at the date of the execution of the TRS.



As EDEMSA is the trustor, beneficiary and trustee of the trust and considering that almost all the trust assets correspond to bonds issued by EDEMSA, or the right to their ownership in the future, for the purposes of these results EDEMSA is treated as the beneficial owner of all the assets held by the trust. These assets together with the assets acquired by EDEMSA above are stated net against borrowings in the balance sheet and a surplus of AR$21,006,546 resulting from the net present value impact of the reduction in the borrowings has been recognised in the income statement under finance costs.



The repurchase of the debt has significantly changed the financial profile of EDEMSA improving its solvency and decreasing its exposure to foreign exchange risk. This together with the current tariff structure should unable EDEMSA to maintain economic and financial sustainability.





(Current rate of exchange AR$3.931 to US$1.00)

Traded Volume: More... Number of trades 111 Trading Closed
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past week...

'LONDON (Dow Jones)--Andes Energia PLC (AEN.LN), a Latin American energy group, said Wednesday that it made pretax profit of $10.98 million for the half year ended June 30, compared with loss $4.02 million, adding that it will continue to work towards development of it's oil and gas exploration strategy, which will be the focus for the balance of this year and 2011. MAIN FACTS: -Operating profit $13.52 million versus $3.22 million -Revenue up 27% to $88 million from $69 million -EBITDA up 141% to $17.4 million versus S$7.2 million -Earnings per share 1.7c versus loss per share 1.24c -By Razak Musah Baba, Dow Jones Newswires; 44-20-7842-9275; razak.baba@dowjones.com'

more to come appraently?