Eletrobras profits fall 72% in Q3

Brazil's federal power sector holding Eletrobras posted a net profit of 944mn reais (US$326mn) for the third quarter, 72% lower than the 3.3bn reais registered in the same period in 2002. In the first nine months of the year, the company posted a net loss of 828mn reais, compared to 4.01bn reais profits for the same period 2002. Quarterly profits were lower this year because of the impact of foreign exchange on company earnings. Gains from foreign exchange variation, mainly from dollar-based receipts from the Itaipu hydro plant, were 361mn reais compared to 6.49bn in 3Q02. A loss of 3.63bn reais was posted in the net foreign exchange account for the January-September period versus a gain of 9.67bn reais for the same period in 2002. Eletrobras consolidated operational revenues reached 4.45bn reais in 3Q03 compared to 4.09bn reais in 3Q02. For the first nine months, operational revenues totaled 12.7bn reais compared to 11.9bn reais in 2002.