Escelsa Registers US$74.9mn Loss

razil's Espirito Santo distributor Escelsa yesterday reported 1999 R$131.1mn (US$74.9mn) losses, a fall of R$224.5mn (US$128.3mn) from 1998 profits of R$93.4mn (US$53.4mn at today's exchange). Gross operating revenues increased 11.5% to R$726.7mn (US$415.3mn), net operating revenues increased 10.1% to R$2523.2mn (US$298.9mn), operating income fell 58.8%% to R$35mn (US$20mn) and EBITDA fell 36.2% to R$82.6mn (US$47.2mn). Residential power sales fell 1.3% although overall sales increased 2.5% to 6.3 million MWh. The company expects a 4.5% demand growth for 2000, market relations coordinator Paulo Roberto Zibetti told BNamericas.com. Contributing factors to the losses included the effects of the January 1999 devaluation of the real, which increased power purchase costs from the dollar-denominated Itaipu hydroelectric plant, which in 1999 provided 25.3% of Escelsa's 7 million MWh energy requirements. A further negative effect was the difference between rates and market rates, Zinetti said, adding that Escelsa is scheduled for a rates revision in August this year.