Casan H1 net profit drops 73%

Brazil's Santa Catarina state water utility Casan posted a 1.2mn-real (US$396,000) net profit in the first half, down 73% from 1H03, Casan said in a filing to the country's securities regulator (CVM). For the period, gross revenue grew 18.2% to 186mn reais and operating profit fell 63.9% to 2mn reais. In 2003, the utility posted an 18.9mn-real net profit, compared to a 40.1mn-real net loss the year before. Earlier this month, the city of Joinville in Santa Catarina state took over management of the city's waterworks service from Casan that had served the city since 1973. For the next 12 months, municipal water utility Agência Municipal de Água e Esgoto and Casan will continue to work together, with Casan to continue supplying drinking water. At the end of this 12-month period, the municipal water utility will assume full drinking water and sewerage service. Casan provides 93.4% drinking water and 11% sewerage collection coverage.