RGE posts US$7.2mn Q1 profits

Brazilian power distributor RGE posted net profits of 18.4mn reais (US$7.2mn) in the first quarter of 2005, turning around an 11.9mn-real loss in the same year-ago period, the company said in a statement to the São Paulo stock exchange (Bovespa). RGE posted gross revenues of 492mn reais, up 14% from 432mn reais in 1Q04, and operating profit of 33.6mn reais in the first quarter of 2005, which compares with a 12.3mn-real loss in the year-ago period. RGE distributes power to about 1 million people in the southern state of Rio Grande do Sul and is controlled by Brazilian power company CPFL Energia. The higher revenues were spurred by a 14% increase in power rates authorized by power regulator Aneel in April 2004 and a 7% rise in power consumption in its concession area in the quarter-to-quarter comparison. RGE's physical power sales grew to 1,704GWh in the first quarter. Rural consumption climbed 14% in the quarter-to-quarter comparison, commercial power usage increased 7%, industrial consumption and residential consumption rose 5.3% and 4% respectively, the company said in the statement. While industrial consumption was driven by the beverages and food industry, sales to rural clients increased when they were forced to buy more power due to a drought that depleted reservoirs in small scale power plants many large farmers own, the company said.