Energias do Brasil profit triples and expected to account for 30 pct of EDP group by 2008

4 May 2006

Lisbon, Portugal, 04 May – Profit at Energias do Brasil, controlled by Portuguese electricity company EDP, tripled in the first quarter against the year on year period, and should account for around 30 percent of the EDP Group’s profits by 2008, the company said.

In the first quarter the Brazilian company posted profit of US$48 million, a 216 percent increase on the year-ago period, thanks to increased revenues.

Operating net income totaled US$543.2 million, or a 2.4 percent rise, and the amount of electricity sold increased by 3 percent.

Results were improved by debt reduction of around US$339.5 million and also by reduced interest rates.

The company is currently investing US$776 million on the Peixe Angical hydroelectric dam project, in Tocantins state, which is due to have its capacity increased by 150 megawatts this month when the first turbine goes online.

Speaking to the Portuguese press, director-general of Energias do Brasil Antonio Martins da Costa said that the company had an additional US$485 million for investments opportunities that may emerge in the meantime, particularly the new tenders for hydroelectric dams due to be launched by the Brazilian government this year.

Energias do Brasil’s contribution to overall profits at EDP currently stands at 21 percent, but should increase to around 30 percent over the next two years, Martins da Costa said. (macauhub)