Quarterly Financial Report September, 2008
EGE Haina Reports Third Quarter 2008 Earnings of US$19.4 million; Revenues of US$146.2 million, up 50% Santo Domingo, Dominican Republic, December 8th, 2008 – EGE Haina announced today third quarter earnings of US$19.4 million, up 61% from the third quarter 2007, driven primarily by an increase in operating income. Third quarter 2008 revenues were US$146.2 million, showing a 50% increase when compared to revenues for the same period of the previous year.
Financial and Operational Summary (US$ Thousands, except for Operational data) Description
3Q'08
3Q'07
Var %
YTD'08
YTD'07
Var %
Revenues
146,176
97,686
50%
368,014
241,314
53%
Operating Costs
121,639
80,510
51%
309,482
212,507
46%
Variable Margin
39,978
34,369
16%
104,734
84,994
23%
EBITDA
28,960
21,643
34%
71,475
48,266
48%
Operating Income
24,537
17,176
43%
58,532
28,807
103%
Net Income
19,441
12,073
61%
41,206
16,476
150%
Operational cash, net
(6,362)
2,715
-334%
(4,425)
(16,709)
74%
Availability, % Sales, GWh
94 588
97 599
-3% -2%
92 1,648
97 1,628
-5% 1%
Generation, GWh
350
480
-27%
1,088
1,278
-15%
Spot Purchase, GWh
238
119
100%
561
354
59%
Quarter Highlights and Recent Developments In August, 2008 the Company entered into a power sales agreement with Consorcio Energético Punta Cana Macao S.A. (CEPM). Through the aforementioned, the Company committed to sell 50MW and associated energy over an eighteen (18) year period. Related to the contract described above, three engines form Sultana Barge were disconnected from the national interconnected system and will be fully dedicated to sell electricity to CEPM in accordance with the terms of the agreement. In September, 2008 the Company entered into a letter of intent with Vestas Argentina, S.A. to acquire 25 wind turbine generators for the Juancho Los Cocos project for a total purchase price of €53,212,791. Related to this contract, the Company made a down-payment for an amount of €10,642,558 (20% of the total purchase price) as a retention fee. On September 17th, 2008 the Sultana and Barahona plants were declared commercially unavailable due to lack of fuel. Both units were synchronized with the national interconnected system on September 21st. On September 22nd, 2008 the Company collected the total amount lent to CEPM by US$18.3 million. 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 suspension agreement for the PPA signed in 1999 between the parties. The suspension is effective 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 pledge customers and credit card receipts for approximately US$6.0 million on a monthly basis. 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 expires on September 1st, 2009 and is collateralized with a time deposit held at the Citibank.
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