CGE posts Jan-Sep US$55.5mn profits

Chilean energy distributor CGE posted net profits of 34.8bn pesos (US$55.5mn) in the first nine months of 2003, 20.6% up from the same period last year, the company said in a statement to securities regulator SVS. Operating revenues increased 23.3% to 505bn pesos. Half of the increase was due to the incorporation of power distributor Rio Maipo, while increased revenues from liquefied petroleum gas (LPG) distribution subsidiary Gasco, natural gas distribution subsidiary Metrogas and power transmission subsidiary CGE Transmision accounted for the rest. Electricity operating revenues increased 28.6% to 262bn pesos, and gas operating revenues rose 18.9% to 234bn pesos to end-September 2003 compared to the same period in 2002. Operating costs increased 23.6% to 343bn pesos as a result of the acquisition of Rio Maipo and the growth at Gasco. Administration and sales costs rose 18.1% to 47.8bn pesos for the same reason. Operating profits increased 24.9% to 114bn pesos. Electricity operating costs increased 30.7% to 178bn pesos and gas operating costs rose 18.2% to 157bn pesos to end-September 2003 compared to the same period in 2002. Non-operating losses fell 9.02% to 39.6bn pesos as a result of increased returns on investments in related companies. The results "confirm that our investment decisions were right," CEO Guillermo Matta said in a statement. "This is shown in the levels of growth and positive operating efficiency at CGE and our subsidiaries," he added. CGE serves 1.39 million clients in Chile, making it the country's largest distributor.