CFE Q1 earnings slide 56.5% on higher benefits, taxes

Mexico's CFE posted a first quarter net profit of 956mn pesos (US$81.8mn) versus a net profit of 2.2bn pesos in 1Q10, according to a comparison of the state power company's financials for both periods. Increased outlays for post-retirement benefits and higher taxes impacted the bottom line. Power sales in the first three months of 2011 rose 9.12% to 63.6bn pesos compared with the year-ago period. In 1Q11, CFE saw operating losses shrink to 4.74bn pesos from 8.53bn pesos in January-March 2010. Government subsidies totaling 19.9bn pesos helped boost the bottom line in the first quarter of this year. The state giant serves some 34mn clients which represent more than 100mn residents with installed capacity of 52.9GW, of which 22.5% comes from 22 IPPs, and a T&D network that stretches over 748,000km.