11th Apr 2006 07:00
Rurelec PLC11 April 2006 11 April 2006 Rurelec PLC ("Rurelec" or "the Company") Bolivian Subsidiary Guaracachi: Record Results for Year to 31 December 2005 Rurelec to Receive US$3.3 million in Net Dividend Rurelec today announces that its Bolivian power generation subsidiary, EmpresaGuaracachi SA ("Guaracachi"), has released record financial results to the LaPaz Stock Exchange for the year ended 31st December 2005. In its 2005 financialyear, Guaracachi reported net income before extraordinary items ofUS$8.41 million. After an extraordinary write down of deferred tax, net incomefor the period was US$7.92 million, in line with analysts' forecasts. This isGuaracachi's best financial performance since the company was privatised in1995. At the same time Guaracachi has announced that its shareholders have approved agross distribution of some US$7.53 million of dividends for the period. On 6 January 2006, Rurelec completed the purchase of a controlling stake of50.001 per cent. in Guaracachi. Therefore while Rurelec will receive a grossdividend from Guaracachi of US$3.75 million (US$3.295 million after Bolivianremittance tax), the earnings of Guaracachi will not be consolidated inRurelec's 2005 results since Rurelec did not own its controlling position inGuaracachi during 2005; nor will the earnings attributable from Guaracachicontribute to Rurelec's 2005 distributable reserves. Guaracachi has begun 2006 strongly with continued demand growth for electricityin the Bolivian national inter-connected system, where Guaracachi is the marketleader. In the second and third quarters of 2006 Guaracachi will becommissioning 79 MW of new capacity at its Sucre and Santa Cruz plants, a 22 percent. increase from its current plant capacity. Rurelec is expecting to announce its own consolidated results under IFRS for thesix month period ended 31st December 2005 in the second half of May. At the timeof the Guaracachi acquisition, which was considered a reverse takeover under theAIM Rules, Rurelec changed its accounting reference date from 30th June to 31stDecember. The first full year under the new accounting reference date will be upto 31st December 2006, in line with the reporting dates of Rurelec's twoprincipal power generation businesses, Guaracachi and Energia del Sur inPatagonia, Argentina. Peter Earl, Managing Director of Rurelec PLC, said: "These results on their ownfully vindicate our decision to invest in Bolivia. 2006 has started promisinglyboth in Bolivia and in our Argentine operations and we look forward to sharingthe successes of 2006 with our shareholders." ENDS For further information contact: Peter EarlManaging Director, Rurelec PLCTel: +44 (0)20 7793 7676 Notes to Editors Rurelec PLC is a British company established to develop rural electrificationand power generation projects in Latin America. It is managed by a team with astrong track record in developing power projects worldwide and with considerableexperience in the electricity sector in Latin America. Rurelec has two principal businesses: • Ownership of power generation facilities in the Southern Cone of Latin America • Management of rural electrification expansion projects funded by the World Bank or multi-lateral development agencies. Rurelec has existing power assets in Argentina and Bolivia. In Argentina it owns a fifty per cent. stake in Energia del Sur, a 76 MW gasfired plant which Rurelec is converting to combined cycle operation to add afurther 50 MW in 2007. In Bolivia, it owns a 50.001 per cent. stake in Guaracachi, Bolivia's largestpower generation company which has a 29 per cent. national market share. In 2006Guaracachi installed capacity will increase from 360 MW nominal capacity to 439MW nominal capacity. In 2007 Guaracachi expects to bring into production 120 MWof dedicated export capacity serving Northern Argentina and 80 MW of combinedcycle capacity serving the Bolivian domestic market. All Guaracachi's powercapacity is gas fired. Rurelec floated on the AIM market of the London Stock Exchange in August 2004.Guaracachi is independently listed on the Bolsa Boliviana de Valores. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
RUR.L