BUENOS AIRES (Dow Jones)–Argentina’s biggest power distributor, Empresa Distribuidora y Comercializadora Norte SA (EDN, EDN.BA), or Edenor (EDN), reported a net loss of 94.5 million pesos ($22.6 million) for the first half of 2011.
In a statement to the Buenos Aires Stock Exchange Monday, Edenor did not say why it lost money and provided few other details about its financial situation. The company did not provide data for the comparative year-ago period to the exchange.
However, Edenor a year ago reported a net loss of ARS1.3 million for the first half of 2010.
As with other utility companies, Edenor’s electricity rates have mostly been frozen since Argentina’s 2001-02 economic meltdown and currency devaluation.
The company has struggled to make money as its operating costs rise amid rampant inflation and annual wage increases. Its market share in Argentina is around 20%, according to data on the company’s website.
Analysts say Argentina’s government is highly unlikely to let utility companies raise rates before a presidential election in October. Government officials, including President Cristina Fernandez, have said low energy prices are an important part of macroeconomic policy because they help lower production costs for manufacturers.
-By Taos Turner, Dow Jones Newswires; 5411-4103-6728; taos.turner@dowjones.com
Source: online.wsj.com