EDC posts US$3.53mn 2Q losses

Venezuelan power company EDC's net losses decreased 88.6% to 5.65bn bolivars (today US$3.53mn) in the second quarter 2003 compared to the same period last year, the company said in a statement. The company attributed the losses to the speed of its costs reduction program and the rationalization of inventories undertaken in 2Q03, part compensated by the positive impact of a lower inflation rate and lower debt, the statement said. The inflation rate fell to 5.4% in the second quarter compared to 15.4% in the first quarter. Operating profits increased 61.2% to 51.5bn bolivars in 2Q03 compared to 2Q02. Operating revenues fell 0.13% to 215bn bolivars due to the average increase in rates calculated by client type, offset by inflation and a fall of 5% in power consumption, according to the statement Operating costs fell 22.5% to 90.8bn bolivars over the same period, which the company attributed to the combined effect of a 35.5% fall in fuel costs and a 6.4bn bolivars reduction in management costs. EBITDA rose 26.8% to 124bn bolivars in 2Q03 compared to 2Q02. EDC is based in capital city Caracas and is a subsidiary of US power company AES.