Grupo Rede posts 2004 net loss of US$74mn

Brazilian integrated power group Grupo Rede posted a net loss of 200mn reais (US$73.9mn) in 2004 compared to the 189mn-real loss it made in 2003, the group's operational holding company Caiuá said in a statement. Grupo Rede's gross operational revenue rose 21% to 3.83bn reais in 2004 from 3.17bn reais in 2003 and its operating loss was 59mn reais in 2004 compared with 150mn reais in 2003. Caiuá controls eight power distribution companies that sell electricity to 12 million people in 502 towns in five states that include state-wide distributors Cemat in the center-west state of Mato Grosso, Celpa in the northern state of Pará and Celtins in the northern state of Tocantins. Caiuá also controls 31 hydroelectric power plants with combined 672MW of installed capacity. The loss was a result of a reduction in revenue of some units because of the decision taken by large clients to opt for non-regulated bilateral contracts with other companies and a court decision that forced the Celpa to pay its workers inflation adjustments not granted by company in the 1980s, Caiuá said. Rede's net debt fell to 1.41bn reais in 2004, down 28% from 2003. OPERATIONS The distribution units' combined power sales rose 5.9% to 11,291GWh in 2004 from 10,659GWh in 2003. Residential consumption rose 4%, industrial and commercial consumption increased 6%, while consumption by rural clients was 18% higher, the company said. The group invested 327mn reais in 2004, up 11.5% from 294mn reais in 2003. The group plans to participate by making 320,000 new connections in the government's 2bn-real power supply expansion program known as Light for All, the company said in the statement. Part of the money will come from its own resources, but most will come from subsidized loans from the federal and state governments and federal power holding company Eletrobrás. MAIN COMPANIES' RESULTS Cemat posted net profits of 198mn reais in 2004, reversing a loss of 478mn reais in 2003. Gross operational revenue rose to 1.37bn reais from 1.07bn reais a year earlier and operating losses were 2.70mn reais in 2004 compared to 32.7mn reais in 2003. Celpa posted a net loss of 125mn reais in 2004 compared to net profits 58.3mn reais in 2003. The distributor's gross operational revenues rose to 1.46bn reais in 2004 from 1.23bn reais in 2003. The company posted an operating profit of 137mn reais in 2004, up from 96.1mn reais in 2003.