Duke Energy 2004 earnings fall 46%

Brazilian power generation company Duke Energy Paranapanema, a unit of US power company Duke Energy (NYSE: DRK), posted net profits of 46.6mn reais (US$17.3mn) in 2004, down 46% from 85.5mn reais the previous year, the company told the São Paulo stock exchange. Revenue from power sales and services rose to 681mn reais in 2004, up 2.7% from 2003, but operating profits fell to 60.7mn reais from 118mn reais, the company said. Duke's Ebitda fell to 481mn reais last year from 486mn reais in 2003. The reduction in Ebitda was partly a result of an increased fee for the use of power lines for transmission, the company said. The company's eight hydroelectric plants produced 11,166GWh of power in 2004, down 5.8% from 11,852GWh in 2003, the company said. Duke produced less power since the national grid operator ONS asked for less power from the company since heavy rains guaranteed enough supply in the southeastern region where its plants are. ONS's policy is to solicit power production first from cheaper power plants. Duke, however, continued efforts to sell power through non-regulated contracts to replace expiring initial concession contracts. At the end of 2004, 88% of its available power was contracted. Duke bought control of Cesp Paranapanema in a 1999 privatization of part of São Paulo state power company Cesp. The company's eight plants have combined installed capacity of 2,284MW.