Exchange rates boost PSEG Global's 3Q03 results

Improved exchange rates in Brazil, Chile and Peru helped the PSEG Global subsidiary of US power company PSEG (NYSE: PEG) improve its third quarter net profit 40% to US$28mn compared to US$20mn in 3Q02, PSEG CFO Tom O'Flynn said in a conference call to discuss Q3 earnings. "One thing that is helping modestly is the currencies, especially Chile's, Flynn said, adding that the peso has strengthened about 15% against the dollar this year. PSEG has about US$300mn of OCI (other comprehensive income) split between Brazil and Chile, Flynn said, adding that "with the improvement in both the Brazilian and Chilean currencies, OCI is less and equity is more." In Brazil, PSEG asked power regulator Aneel earlier this year for a rates increase of over 40% "and we got something in the mid to high 30s, so we were pleased with that," Flynn said. PSEG Global has stakes in a number of distributors in the region - Brazil's Rio Grande Energia (RGE, 32%), Chile's Chilquinta Energia (50%) and Saesa (100%), and Peru's Luz del Sur (44%).