Portuguese state-owned enterprises post loss of 378 million euros in first quarter

13 August 2015

Portuguese state-owned companies registered a loss of 378.1 million euros in the first quarter of 2015, after a partial sale of the TAP – Air Portugal group contributed 106.4 million euros, according to a report on the sector.

Released Tuesday by the Directorate General of the Treasury and Finance, the report on state-owned enterprises (SEE) said transport companies accounted for the largest losses with Lisbon metro company Metropolitano de Lisboa posting a loss of 27.1 million euros, the Porto metro company Metro do Porto with a loss of 74.6 million and the company in charge of the country’s railway network, REFER losing 21.3 million euros.

After transport the health sector accounted for a total loss of 95 million euros, of which the central and north Lisbon hospital centre (Centro Hospitalar Lisboa Central e Lisboa Norte) accumulated 43.8 million euros of losses in the first three months of the year.

Overall and compared to the values ​​recorded in the same period of 2014, net income of the SEE companies decreased by 5 percent and debt fell about 2 percent to 718 million euros.

The report also highlighted two companies positively, road company Estradas de Portugal, now part of infrastructure company Infra-estruturas de Portugal, and Parvalorem, which manages the toxic assets of Banco Português de Negócios, with the former increasing profits to 21 million euros.

Parvalorem “also achieved a considerable increase” in net income due to foreign exchange gains from the revaluation of lending operations in dollars but nevertheless the net result remained negative at around 27 million euros due to interest paid on liabilities in the amount of approximately 32 million euros. (macauhub/PT)