Rurelec 1H Pretax Pft GBP1.6M Vs GBP7.0M

Rurelec 1H Pretax Pft GBP1.6M Vs GBP7.0M

Rurelec plc 6 months to June 30 ()=Loss/Debit Figs in GBP'000 and pence (p), unless otherwise stated. 2007 2006 Revenue 10,521 9,361 Pretax profit 1,559 7,006 EPS 0.14p 9.05p Underlying EPS 0.14p 0.99p Interim dividend n/av n/av NAV/ share 47.5p 42.1p Edited Press Release LONDON (Dow Jones)--Jimmy West, Chairman, said, " The outlook for Rurelec is therefore bright indeed and we expect to maintain our policy of progressive dividend payments linked to the Company's continuing growth." He said, "I am pleased to report the results of Rurelec PLC for the half year to Jun.

30, 2007.

Rurelec recorded a profit after tax for the period of GBP0.94 million (2006: GBP6.9 million) on revenues of GBP10.5 million (2006: GBP9.4 million)." Operating profit for the period was GBP1.97 million compared to GBP1.5 million for the same period in 2006.

This represents an increase in operating profit over the previous period of 31%.

in Sterling and of 47%.

at constant exchange rates reflecting very strong underlying earnings growth. While Rurelec expects to report further continuing uplifts in the value of its portfolio of Latin American power assets during the course of the full year as new capacity is constructed and commissioned, the results released Thursday primarily underline the fact that to date 2007 has been a year of strong organic growth for Rurelec's power generation businesses. In Bolivia, Guaracachi has continued its programme of power plant construction, successfully commissioning 71 MW of open cycle capacity in Santa Cruz in March 2007 with the completion of GCH 11, Bolivia's newest power plant. I am delighted to report that this new General Electric 6 FA has performed faultlessly since commissioning and has provided an important reserve factor for Bolivia's power industry. Further organic growth in Guaracachi is expected in the second half of 2007 with the commissioning of two more Jenbacher 616 gas engines in Sucre, scheduled to take place in November.

The addition of nearly 100 MW of new combined cycle capacity in Santa Cruz is expected to occur at the end of 2008. In Argentina, Energia del Sur has performed in line with expectations.

While generation output has been high and revenues running at record levels, gas prices have risen to reflect the national shortage of natural gas and electricity margins have been under pressure since gas providers have been unwilling to enter into long term gas contracts at fixed prices. West, said, "However, margins are expected to improve considerably at the end of the first quarter of 2008 as a result of both increasing electricity tariffs at the generation level and the planned commissioning of 60MW of new CCGT capacity." Construction of the new CCGT capacity is nearly two thirds complete.

The largest single element of the project, the heat recovery steam generators or HRSGs, which are both the most expensive and longest lead time items, were shipped to Argentina from South Korea in August and will be assembled in the coming months. Rurelec has played an important role from its London headquarters in financing the CCGT expansions in both Argentina and Bolivia.

Rurelec is in the process of establishing Rurelec Climate Change Finance ("RCCF") to securitise the revenue from the forward sale of United Nations CERs generated by both projects. Rurelec PLC intends to lock in high prices for CERs for the life of the Kyoto Protocol and to use the proceeds of securitisation to provide the capital needed for the development of new power plant capacity.

RCCF is at the cutting edge of carbon credit finance.

I am proud of the hard work which has gone into this effort, the effects of which will be reflected in Rurelec's profitability from 2008 onward. Further expansion is expected from Rurelec companies' efforts to export power from their home countries.

Bolivia in particular has the capacity to export power to its neighbours and Guaracachi continues to finalise its 120 MW Yacuiba export project to supply power to northern Argentina.

Domestically too, Guaracachi is exploring further turbine upgrade and expansion options based on its fleet of Frame 5 gas turbines in Santa Cruz. West said, "By 2008 Rurelec will have a high market share in terms of the installed power generation capacity of Bolivia.

For this reason the Directors are now looking at ways to expand the group's portfolio of power plants into other neighbouring countries to include Chile and Peru.

Rurelec is also making advances in the area of isolated generation in Latin America, taking advantage of technology developments in the use of renewable fuels for small power plants situated off the grid which benefit from carbon credits and concessionary finance." (END) Dow Jones Newswires
From: FXPR.com