UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

Form 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO
RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE
ACT OF 1934

 

For the Month of March 2004

 

EDP- Electricidadé de Portugal

 

Praça Marquês de Pombal, 12

1250-162  Lisbon, Portugal

(Address of principal executive offices)

 

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

 

Form 20-F     ý     Form 40-F     o

 

(Indicate by check mark whether the registrant by

furnishing the information contained in this form

is also thereby furnishing the information to the

Commission pursuant to Rule 12g3-2(b) under the

Securities Exchange Act of 1934.)

 

Yes    o      No     ý

 

 





 

Financial Results
2003

 

 

Investor Relations Department

 

Pedro Pires, Head of IR

Gonçalo Santos

Elisabete Ferreira

Cristina Requicha

Rui Antunes

Tel:  +351 21 001 2834

Fax:  +351 21 001 2899

Email: ir@edp.pt

Site:  www.edp.pt

 

 

Reuters:

EDPP.IN / EDP.N

Bloomberg:

EDP PL / EDP US

 

 

Lisbon, 3 March 2004

 

 

 

 

 

 

 

EDP - Electricidade de Portugal, S.A.

Headquarters: Praça Marquês de Pombal, 12

1250-162 Lisboa

Portugal

 



 

Table of Contents

 

 

 

2003 Financial Results - Summary

 

 

 

Results Overview

 

 

 

Investments and Financial Debt

 

 

 

EDP Produção

 

 

 

EDP Distribuição

 

 

 

Hidrocantábrico

 

 

 

Brazil

 

 

 

Telecoms

 

 

 

Information Technology

 

 

 

Consolidated Financial Results and Pro-forma Analysis

 

 

 

Consolidated Extrordinary Results

 

 

 

Consolidated Income Statement

 

 

 

Adjusted Cash Flow and Consolidated Balance Sheet

 

 

 

Income Statement by Business Areas

 

 

 

Balance Sheet by Business Areas

 

 

 

Appendix I - Naturcorp

 

 



 

2003 Financial Results - Summary

 

Financial Results Summary (€ m)

 

2003

 

2002

 

Δ%

 

 

 

 

 

 

 

 

 

Operating Revenues

 

6,977.6

 

6,386.6

 

9.3

%

Operating Costs

 

5,150.6

 

4,897.7

 

5.2

%

EBITDA

 

1,827.0

 

1,488.9

 

22.7

%

Operating Results

 

905.7

 

648.7

 

39.6

%

Financial Results

 

(359.0

)

(222.8

)

-61.1

%

Extraordinary Results

 

(14.4

)

(138.9

)

89.6

%

Net Profit

 

381.1

 

335.2

 

14

%

Earnings per share

 

0.127

 

0.112

 

13.7

%

 

 

 

 

 

 

 

 

Cash Flow (1)

 

1,302.4

 

1,175.4

 

10.8

%

Adjusted Cash Flow (2)

 

1,458.3

 

1,182.5

 

23.3

%

 

 

 

 

 

 

 

 

Operating Investment

 

859.1

 

1,101.8

 

-22.0

%

 

Financial Debt (€ m)

 

2003

 

2002

 

Δ%

 

 

 

 

 

 

 

 

 

Financial Debt

 

7,492.9

 

7,994.1

 

-6.3

%

Net Debt

 

7,207.3

 

7,780.1

 

-7.4

%

 

Financial Results Summary (€ m)

 

A
2002 HC
Jan-May

 

B
2002 Brazil
Jan-Sep

 

2003

 

2002 + A + B
Pro-Forma
2002

 

Δ%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

 

253.1

 

274.5

 

6,977.6

 

6,914.2

 

0.9

%

Operating Costs

 

186.3

 

209.5

 

5,150.6

 

5,293.5

 

-2.7

%

EBITDA

 

66.9

 

65.0

 

1,827.0

 

1,620.8

 

12.7

%

Operating Results

 

42.7

 

40.2

 

905.7

 

731.5

 

23.8

%

 

General Indicators

 

2003

 

2002

 

Δ%

 

Number of electricity clients

 

 

 

 

 

 

 

Portugal

 

5,767,401

 

5,665,005

 

1.8

%

Hidrocantábrico (3)

 

563,116

 

550,813

 

2.2

%

Brazil

 

2,902,203

 

2,848,230

 

1.9

%

 

 

 

 

 

 

 

 

Electricity sales (GWh)

 

 

 

 

 

 

 

Portugal

 

37,591

 

36,617

 

2.7

%

Hidrocantábrico (3)

 

12,126

 

11,308

 

7.2

%

Brazil

 

20,180

 

20,631

 

-2.2

%

 

 

 

 

 

 

 

 

No. of employees (core business)

 

 

 

 

 

 

 

Portugal

 

8,398

 

9,150

 

-8.2

%

Hidrocantábrico (3)

 

1,569

 

1,357

 

15.6

%

Brazil

 

3,733

 

3,834

 

-2.6

%

 


(1) Cash flow = Net Income + Depreciation + Provisions

(2) Adjusted Cash flow = Cash Flow + Tariff Adjustment + Hydrological Correction + Hydrological Account Interest

(3) Hidrocantábrico is proportionally consolidated in accordance with EDP’s stake in Hidrocantábrico (40%). Figures presented above correspond to Hidrocantábrico 100%.

(4) Adjusting for Oni’s direct costs which are accounted for as S&S at EDP’s consolidated accounts.

 

Note: The accounts presented in this document are non-audited.

 

 

The EDP Group reported a significant growth at the operating level in 2003. EBITDA improved by €338.1 million or 22.7%, and EBIT was up €257.0 million or 39.6%. The change in the Group’s consolidation perimeter was a major reason for this increase in EBITDA. Had Hidrocantábrico and the Brazilian subsidiaries been consolidated for the full year of 2002 at the EBITDA level, they would have contributed an extra €66.9 million and €65.0 million respectively. On a Pro-Forma basis, EDP’s EBITDA still increased by 12.7% or €206.3 million.

 

The Group’s generation and distribution businesses EDP Produção (‘EDPP’) and EDP Distribuição (‘EDPD’) contributed respectively with €32.3 million and €33.9 million to the increase in EBITDA having kept operating costs strictly under control. On a Pro-Forma basis Hidrocantábrico contributed positively to EDP’s EBITDA thanks to the consolidation of Naturcorp (+€14 million to EDP). Brazil’s €24.5 million contribution (pro-forma) was due to tariff increases and a pick-up in consumption. Oni had a positive impact of €54.1 million due to the increase in voice traffic, lower interconnection tariffs, rigorous cost cutting and the closure of its mobile venture OniWay.

 

Cost control is still a key management target. In 2003, supplies and services on a consolidated basis went down 15.6%(4) while personnel costs grew 3.5% year-on-year. However, on a pro-forma basis, both supplies and services and personnel costs went down 16.6% and 3.0%, respectively. EDP will continue to focus on cost cutting through operational savings and early retirements, particularly now that the costs of the Human Resources Restructuring Programme were accepted by the regulator (ERSE) as a pass through cost to the electricity tariffs over the next 20 years as from 2005.  In 2003, total costs accepted by ERSE with the HR Restructuring Programme amounted to €148.4 million, following a reduction of 500 employees at EDP Distribuição.

(.../...)

 

1



 

Results Overview

 

EBITDA (€ m)

 

2003

 

2002

 

Δ%

 

 

 

 

 

 

 

 

 

EDP Produção (1)

 

813.2

 

780.9

 

4.1

%

 

 

 

 

 

 

 

 

EDP Distribuição

 

523.2

 

489.2

 

6.9

%

 

 

 

 

 

 

 

 

Hidrocantábrico

 

143.4

 

67.8

 

111.5

%

 

 

 

 

 

 

 

 

Brazil

 

186.7

 

97.2

 

92.1

%

 

 

 

 

 

 

 

 

Oni

 

8.9

 

(45.1

)

 

 

 

 

 

 

 

 

 

Information Technology

 

34.1

 

55.3

 

-38.3

%

 

 

 

 

 

 

 

 

Other & Adjustments

 

117.5

 

43.7

 

169.2

%

 

 

 

 

 

 

 

 

Consolidated

 

1,827.0

 

1,488.9

 

22.7

%

 

 

 


(1) Excludes the Special Regime Producers (SRP) Enernova and EDP Bioeléctrica (Renewable Energy)

 

 

(.../...)

 

EDP’s pre-tax profit went up 85.5% to €532.3 million following a 61.1% or €136.2 million net increase in financial charges versus 2002 that was balanced by a 89.6% or €124.5 million net decrease in extraordinaries versus 2002.

 

The change in the consolidation perimeter had a significant impact on financial results with the inclusion of the financial charges of Hidrocantábrico, Escelsa and Enersul for the full year. However, on a pro-forma basis, financial results benefited from a 2.2% decreased in net interest paid.

 

Extraordinary results amounted to a €14.4 million loss. The most important item was a €120 million provision for the possible devaluation and contingencies in Brazil and Cape Verde. Extraordinaries also include a capital gain of €17.8 million resulting from the sale of EDP’s 3% stake in Iberdrola and a €19.3 million gain as the Hidrologic Correction Account exceeded its limit due to a wet year.

 

Net Profit amounted to €381.1 million, up 13.7% year-on-year. Adjusting for 2002 and 2003 one-offs Net Profit would have increased 49%, from €308 million to €459 million. The core business was the main contributor to this improvement due to increased demand, higher allowable revenues and tight cost control. The upward revision in Brazilian tariffs also boosted Net Profit in 2003.

 

 

2



 

Investments and Financial Debt

 

CAPEX (€ m)

 

2003

 

2002

 

 

 

 

 

 

 

EDP Produção (1)

 

236.1

 

239.4

 

Renewables

 

39.7

 

47.1

 

 

 

 

 

 

 

EDP Distribuição

 

343.6

 

371.2

 

(-) Subsidies in cash

 

59.7

 

56.9

 

(-) Edinfor asset transfer

 

13.3

 

80.5

 

(=) EDPD cash investments

 

270.6

 

233.8

 

 

 

 

 

 

 

Hidrocantábrico (40%)

 

71.0

 

49.0

 

 

 

 

 

 

 

Brazil

 

125.8

 

125.0

 

 

 

 

 

 

 

Telecoms

 

46.2

 

312.0

 

 

 

 

 

 

 

Information Technology

 

55.5

 

41.8

 

 

 

 

 

 

 

Other

 

14.1

 

53.9

 

 

 

 

 

 

 

Total

 

859.1

 

1,101.8

 

 

Financial Debt (€ m)

 

2003

 

2002

 

 

 

 

 

 

 

Holding (2)

 

5,356.2

 

5,879.4

 

 

 

 

 

 

 

EDP Produção (1)

 

38.8

 

54.3

 

Renewables

 

18.7

 

14.8

 

 

 

 

 

 

 

EDP Distribuição

 

 

 

 

 

 

 

 

 

Hidrocantábrico (40%)

 

786.1

 

816.6

 

 

 

 

 

 

 

Brazil (3)

 

547.3

 

550.2

 

 

 

 

 

 

 

Telecoms

 

685.5

 

622.1

 

 

 

 

 

 

 

Information Technology

 

23.8

 

25.6

 

 

 

 

 

 

 

Other

 

36.5

 

31.0

 

 

 

 

 

 

 

Total Financial Debt

 

7,492.9

 

7,994.1

 

Cash and cash equivalents

 

285.6

 

214.0

 

 

 

 

 

 

 

Net Debt

 

7,207.3

 

7,780.1

 

 


(1) Excludes the Special Regime Producers (SRP) Enernova and EDP Bioeléctrica (Renewable Energy)

(2) Net of overdrafts and deposits

(3) netted against €282 million of Escelsa’s Senior Notes in 2003

 

 

Capital expenditure totalled €859.1 million in 2003. If we exclude OniWay’s investment in 2002 (€171.2 million), operating investment would have gone down 7.7%. It is important to note that the data presented corresponds to the cash-out-flow on operating investments of the EDP Group, considering the consolidation method of each subsidiary.

 

EDPP’s investment in the new TER CCGT (Units I and II) amounted to €142.3 million in 2003. Total planned investment (at technical cost) for this first phase amounts to €478.0 million, of which 73% has already been concluded. EDP will build a third 400 MW unit on TER for an extra €197.0 million until 2006 when it should start operations. In 2003 EDPP also invested €34.4 million in an additional 188 MW at the Venda Nova hydro power plant (binding generation). The estimated investment is €139.0 million (at technical costs) of which 79% has already been done. Enernova invested €38.5 million in 25 MW of wind farm capacity and plans to invest €212.0 million in an extra 280 MW by 2006 and a further 300 MW by 2008. HC’s investment was mostly in wind farms. The P.E. Cantábrico wind farm (64 MW) became fully operational in the 2H2003 and P.E. Arlanzón wind farm (34 MW) already has 25 MW in operation.

 

The bulk of recurring investment at EDPD was in the distribution network. These investments, aimed at improving quality of service, led to a drop in the average interruption time. These investments are remunerated by the regulator at a 9% nominal rate.

 

Capex in Brazil remained flat. Note that 2002’s capex only includes 3 months of Escelsa and Enersul. Including the full year of these subsidiaries, capex would have gone down €29.4 million, on the back of lower investments in generation in Brazil. Oni invested €46.2 million in 2003, or 5% of the EDP Group’s total investment. 67% of Oni’s investments was in the Spanish fixed line operations.

 

At the end of 2003, the EDP Group’s total financial debt amounted to €7,492.9 million. Vis-à-vis the YE2002, the holding company’s debt decreased by €523.2 million, in great part thanks to the sale of EDP’s 3% stake in Iberdrola, amounting to €400.1 million.

 

Despite the acquisition of 56.8% of Naturcorp, which resulted in a €251 million cash-out-flow, Hidrocantábrico was able to reduce its financial debt following the sale of a 7% stake in REE (€102 million) and the securitisation of the Spanish electricity “tariff deficit” for 2000-2002 (€60 million).

 

In 2003, Oni and the Brazilian subsidiaries, account for 16% or €1,232.8 million of the EDP Group’s consolidated debt. In Brazil it is worth mentioning that the electricity utilities are financing regulatory receivables through special loans contracted with BNDES to compensate for the rationing losses and “Parcela A” costs. The proportional amount of Escelsa’s Senior Notes held by EDP was netted off against Escelsa’s financial debt.

 

Following the year-on-year debt decrease, total debt over total capital, decreased from 59.0% in 2002 to 57.5% in 2003 or from 58.3% to 56.6% if we consider net debt.

 

 

3



 

EDP Produção (1)

 

Energy emission (GWh)

 

2003

 

2002

 

Δ%

 

 

 

 

 

 

 

 

 

Hydroelectric

 

13,964

 

6,764

 

106.5

%

Thermoelectric

 

12,619

 

17,437

 

-27.6

%

Binding Generation

 

26,583

 

24,201

 

9.8

%

HDN

 

121

 

90

 

34.8

%

Hidrocenel

 

288

 

222

 

29.6

%

EDP Energia

 

296

 

111

 

167.0

%

TER

 

203

 

 

 

Non-Binding Generation

 

907

 

423

 

114.6

%

Biomass

 

38

 

37

 

2.2

%

Wind Farms

 

128

 

113

 

13.8

%

Cogeneration

 

679

 

595

 

14.0

%

Small Hydro (2)

 

196

 

150

 

31.0

%

Special Regime Producers

 

1,042

 

895

 

16.3

%

Total EDP emission

 

28,531

 

25,519

 

11.8

%

 

 

 

 

 

 

 

 

Pego thermal power station (PES)

 

4,168

 

4,794

 

-13.1

%

Tapada thermal power station (PES)

 

5,404

 

7,126

 

-24.2

%

Auto-producers (IES)

 

3,184

 

2,461

 

29.4

%

Import / (Export) net

 

2,793

 

1,899

 

47.1

%

Direct sales to Ind. Clients (incl. in Cogeneration)

 

(532

)

(454

)

17.1

%

Pumping

 

(485

)

(670

)

-27.6

%

Gross demand

 

43,064

 

40,675

 

5.9

%

 

 

 

 

 

 

 

 

Synchronous compensation

 

(31

)

(37

)

-13.8

%

Own consumption - generation

 

(3

)

(3

)

24.8

%

Own consumption - transmission grid

 

(10

)

(9

)

17.5

%

Losses

 

(813

)

(687

)

18.4

%

 

 

 

 

 

 

 

 

Energy delivered to distribution

 

42,206

 

39,941

 

5.7

%

 

 

Thermal emission (GWh)

 

2003

 

2002

 

Δ%

 

Tapada do Outeiro

 

(1

)

44

 

 

Carregado

 

1,091

 

2,408

 

-54.7

%

Barreiro

 

195

 

249

 

-21.7

%

Setúbal

 

1,834

 

5,191

 

-64.7

%

Sines

 

9,473

 

9,532

 

-0.6

%

Alto de Mira + Tunes

 

26

 

13

 

106.7

%

 

 

 

 

 

 

 

 

EDP thermal emiss. (PES)

 

12,619

 

17,437

 

-27.6

%

 

Installed Capacity (MW)

 

2003

 

2002

 

UMW

 

BP 2006

 

 

 

 

 

 

 

 

 

 

 

Run-of-river

 

1,860

 

1,860

 

 

1,860

 

Reservoir

 

2,043

 

2,043

 

 

2,475

 

Coal

 

1,192

 

1,192

 

 

1,192

 

Fuel

 

1,759

 

1,759

 

 

1,713

 

CCGT

 

392

 

 

392

 

1,176

 

Diesel

 

197

 

329

 

(132

)

165

 

Small hydro (HDN & HCL)

 

226

 

226

 

 

229

 

Cogeneration

 

111

 

111

 

 

111

 

Total EDPP

 

7,780

 

7,520

 

260

 

8,920

 

 

 

 

 

 

 

 

 

 

 

Small hydro (EDP Energia)

 

85

 

85

 

 

85

 

Wind (Enernova)

 

65

 

40

 

25

 

385

 

Biomass (EDP Bioeléctrica)

 

9

 

9

 

 

9

 

 

 

 

 

 

 

 

 

 

 

EDP Installed Capacity

 

7,939

 

7,654

 

285

 

9,399

 

 


(1) The Special Regime Producers (SRP) Enernova and EDP Bioeléctrica (Renewable Energy) were excluded from the EDPP consolidation perimeter from July 2003. For analysis purposes these two companies were excluded from EDPP in both periods.

(2) HDN, Hidrocenel (HCL) and EDP Energia’s power stations with installed capacity of less than 10 MW operating in the Non-Binding system are remunerated as Special Regime Producers (“SRP”). SRP generation in HDN represented 131 GWh in 2003 and 100 GWh in 2002, in HCL represented 47 GWh in 2003 and 42 GWh in 2002 and in EDP Energia represented 19 GWh in 2003 and 8 GWh in

 

 

In 2003 EDP’s total emission increased 11,8% to 28,531 GWh. EDP’s higher emission resulted from heavy rainfall during the first and fourth quarter of the year (52% hydro generation in 2003 compared to 29% in 2002) and a 5.9% increase in gross demand following a cold winter and an unusually hot summer.

 

TER CCGT had its first dry-run during the fourth quarter of the year and contributed with 203 GWh to total emissions to the network. The 1st TER unit started industrial service on the 14th February 2004 and the 2nd is expected to end test emissions in October 2004. As for the 3rd TER unit, it is scheduled to be completed in March 2006.

 

During 2003, CPPE decommissioned the 132 MW Alto Mira diesel plant as its PPA had reached maturity.

 

 

4



 

Electricity revenues (€ m)

 

2003

 

2002

 

Δ%

 

 

 

 

 

 

 

 

 

PPA Capacity Charge

 

892.7

 

866.0

 

3.1

%

PPA Energy Charge

 

283.6

 

457.9

 

-38.1

%

Total CPPE

 

1,176.3

 

1,323.9

 

-11.2

%

 

 

 

 

 

 

 

 

Small hydro (HDN & HCL)

 

87.5

 

57.6

 

51.9

%

Cogeneration (Soporgen & Energin)

 

40.1

 

32.8

 

22.2

%

 

 

 

 

 

 

 

 

Trading

 

1.8

 

 

 

 

 

 

 

 

 

 

 

Total EDP Produção

 

1,305.6

 

1,414.3

 

-7.7

%

 

Fuel costs (€ m)

 

2003

 

2002

 

Δ%

 

 

 

 

 

 

 

 

 

Coal

 

130.5

 

148.8

 

-12.3

%

Fuel-oil

 

117.7

 

259.8

 

-54.7

%

Natural Gas

 

22.9

 

24.5

 

-6.4

%

Diesel

 

2.7

 

1.5

 

79.8

%

CPPE

 

273.9

 

434.6

 

-37.0

%

Natural Gas (Soporgen & Energin)

 

36.4

 

30.9

 

17.7

%

 

 

 

 

 

 

 

 

Total EDP Produção

 

310.3

 

465.5

 

-33.3

%

 

Electricity Purchases (€ m)

 

2003

 

2002

 

Δ%

 

 

 

 

 

 

 

 

 

Small hydro, CPPE, Trading and Cogen.

 

65.3

 

37.2

 

75.4

%

 

 

 

Electricity revenues

 

 

Fuel costs

 

 

The PPA capacity charge increased 3.1%, reflecting i) the high availability factors (Km)(2) at CPPE’s power plants (total Km: 1.054 in 2003 vs. 1.046 in 2002, of which hydro: 1.051 in 2003 vs. 1.039 in 2002 and thermal: 1.058 in 2003 vs. 1.055 in 2002) and ii) the charge adjustment for inflation as foreseen in the PPA contracts.

 


(2) Km = 12 months average verified available capacity / 12 months average contracted available capacity

 

 

The PPA energy charge, the component that remunerates CPPE plants operating in the Public Electricity System for the fuel consumption they incurred, dropped 38.1% due to a lower utilisation of CPPE’s thermal plants. Fuel consumption was lower because of the wet year. CPPE continued to buy coal and fuel-oil at a lower price than what it receives through the PPA energy charge (€273.9 million vs. €283.6 million), which is based on the EU coal price index and the Platts index. The increase in diesel costs results from using up the remaining fuel stock at the Alto Mira plant site, prior to its decommissioning.

 

As a result, EDP Produção’s (‘EDPP’) electricity generation gross profit increased 2.0% in 2003 to €929.9 million (€911.5 million in 2002).

 

5



 

Personnel costs (€ m)

 

2003

 

2002

 

Δ%

 

 

 

 

 

 

 

 

 

Total Personnel Costs

 

119.3

 

118.5

 

0.7

%

Pension Premiums

 

8.9

 

9.7

 

-8.2

%

Early Retirement Correction

 

13.1

 

13.1

 

0.0

%

Social benefits with early retirees

 

1.3

 

1.3

 

0.0

%

Medical care with inactives

 

3.2

 

3.1

 

3.5

%

 

 

 

 

 

 

 

 

Adjusted Personnel Costs

 

92.7

 

91.2

 

1.7

%

 

 

 

 

 

 

 

 

Number of employees

 

1,988

 

2,099

 

-5.3

%

MW/Employee

 

3.91

 

3.58

 

9.2

%

 

S&S Non-Group (€ m)

 

2003

 

2002

 

Δ%

 

 

 

 

 

 

 

 

 

Maintenance and specialised works

 

21.1

 

21.5

 

-2.0

%

Insurance costs

 

8.8

 

9.8

 

-10.1

%

Surveillance and security

 

2.6

 

2.2

 

14.5

%

Building rentals

 

2.4

 

0.8

 

 

Other

 

14.8

 

16.7

 

-11.8

%

 

 

 

 

 

 

 

 

Total

 

49.6

 

51.1

 

-2.9

%

 

 

 

O&M / MW                                                          Total Cash Cost / MW

 

              

 

 


*     Business Plan 2006 assumes an average hydrological year

 

The implementation of the Human Resources restructuring plan at EDPP resulted in a reduction of 111 employees during 2003. Under this restructuring plan, the average reestructuring cost per early retirement and lay-off at EDPP is €374 thousand.

 

Personnel costs increased 0,7% following an 2.7% average salary increase. Since most of the headcount reduction was achieved in the last months of 2003, the impact of the personnel reduction on the Personnel costs is expected to be felt more strongly as from 2004.

 

Supplies & Services at EDPP continued to show a fall, benefiting from a reduction in insurance costs, steady maintenance charges and tighter management discipline on other S&S. Building rentals are associated with payments made to EDP’s pension fund, following the sale of EDPP’s headquarters to the latter during 1H2002.

 

 

6



 

Operating Income Statement (€ m)

 

2003

 

2002

 

Δ%

 

 

 

 

 

 

 

 

 

Electricity Sales

 

1,305.6

 

1,414.3

 

-7.7

%

Services Provided

 

16.9

 

19.1

 

-11.5

%

Other Sales

 

19.7

 

18.7

 

5.5

%

Operating Revenues

 

1,342.1

 

1,452.0

 

-7.6

%

 

 

 

 

 

 

 

 

Electricity

 

65.3

 

37.2

 

75.4

%

Fuel for electricity generation

 

310.3

 

465.5

 

-33.3

%

Direct Activity Costs

 

375.6

 

502.8

 

-25.3

%

 

 

 

 

 

 

 

 

Gross Profit

 

966.5

 

949.2

 

1.8

%

Gross Profit/Revenues

 

72.0

%

65.4

%

6.6

p.p.

 

 

 

 

 

 

 

 

Sundry materials and goods for resale

 

3.5

 

4.4

 

-21.1

%

Supplies and services - Group

 

18.3

 

21.9

 

-16.2

%

Supplies and services - Non-Group

 

49.6

 

51.1

 

-2.9

%

Personnel costs

 

119.3

 

118.5

 

0.7

%

Generation centre rentals

 

3.6

 

3.6

 

1.1

%

Other operating costs (or revenues)

 

(3.8

)

(5.0

)

24.9

%

Own work capitalised

 

(37.3

)

(26.0

)

-43.3

%

Operating Costs

 

153.2

 

168.4

 

-9.0

%

 

 

 

 

 

 

 

 

EBITDA

 

813.2

 

780.9

 

4.1

%

EBITDA / Revenues

 

60.6

%

53.8

%

6.8

p.p.

 

 

 

 

 

 

 

 

Depreciation and amortisation

 

230.5

 

225.9

 

2.1

%

Provisions

 

12.7

 

18.7

 

-32.4

%

 

 

 

 

 

 

 

 

EBIT

 

570.0

 

536.3

 

6.3

%

EBIT / Revenues

 

42.5

%

36.9

%

5.5

p.p.

 

 

Operating investment (€ m)

 

2003

 

2002

 

Δ%

 

 

 

 

 

 

 

 

 

Binding Generation

 

66.7

 

55.7

 

19.7

%

Non-Binding Generation

 

143.7

 

144.8

 

-0.7

%

Special Regime Producers

 

2.6

 

11.9

 

-77.9

%

Trading

 

0.2

 

 

 

Other investments

 

8.2

 

17.5

 

-53.2

%

Financial costs (capitalised)

 

14.6

 

9.5

 

53.7

%

 

 

 

 

 

 

 

 

Total operating investment

 

236.1

 

239.4

 

-1.4

%

 

 

 

 

 

 

 

 

Recurring investment

 

34.7

 

32.4

 

7.3

%

Non-recurring investment

 

201.4

 

207.0

 

-2.7

%

 

Main Generation Investments at technical cost:

 

 

Total Forecast

 

€139.0million

 

Total Forecast

 

€478.0million

Conclusion date

 

Sep-2004

 

Conclusion date

 

2004

Invested to Date

 

109.4 or 79%

 

Invested to Date

 

347.2 or 73%

 

The consolidation perimeter of EDPP changed in July 2003 and now excludes the special regime producers Enernova and EDP Bioeléctrica. On a stand-alone basis, these two companies amount to €7.5 million EBITDA and €3.6 million Operating Profit in 2003.

 

As a result of efficient fuel procurement and cost cutting, EDPP’s EBITDA grew 4.1% to €813.2 million.

 

7



 

EDP Distribuição

 

Energy Sales (GWh)

 

2003

 

2002

 

Δ%

 

Energy delivered to Distribution

 

42,207

 

39,941

 

5.7

%

Own consumption - distribution

 

(33

)

(20

)

-66.0

%

Distribution losses

 

(3,259

)

(2,989

)

-9.0

%

 

 

 

 

 

 

 

 

Total electricity sales (1)

 

38,915

 

36,931

 

5.4

%

 

 

 

 

 

 

 

 

Electricity sales - PES (2)

 

34,867

 

35,973

 

-3.1

%

VHV (Very high voltage)

 

1,115

 

875

 

27.4

%

HV (High voltage)

 

3,640

 

3,396

 

7.2

%

MV (Medium voltage)

 

8,600

 

11,198

 

-23.2

%

SLV (Special low voltage)

 

3,050

 

2,891

 

5.5

%

LV (Low voltage)

 

17,296

 

16,534

 

4.6

%

PL (Public lighting)

 

1,167

 

1,080

 

8.0

%

 

 

 

 

 

 

 

 

Electricity sales - NBES (3)

 

4,048

 

958

 

 

EDP

 

2,724

 

644

 

 

HV (High voltage)

 

46

 

78

 

-41.3

%

MV (Medium voltage)

 

2,679

 

566

 

 

Non-EDP

 

1,324

 

314

 

 

HV (High voltage)

 

68

 

104

 

-34.5

%

MV (Medium voltage)

 

1,256

 

210

 

 

 

Electricity consumers

 

2003

 

2002

 

Δ%

 

 

 

 

 

 

 

 

 

VHV (Very high voltage)

 

15

 

11

 

4

 

HV (High voltage)

 

110

 

98

 

12

 

MV (Medium voltage)

 

18,980

 

20,377

 

(1,397

)

SLV (Special low voltage)

 

28,111

 

27,290

 

821

 

LV (Low voltage)

 

5,676,733

 

5,575,766

 

100,967

 

PL (Public lighting)

 

42,047

 

41,113

 

934

 

Binding consumers

 

5,765,996

 

5,664,655

 

101,341

 

 

 

 

 

 

 

 

 

HV (High voltage)

 

1

 

1

 

 

MV (Medium voltage)

 

1,404

 

349

 

1,055

 

EDP

 

1,405

 

350

 

1,055

 

HV (High voltage)

 

2

 

3

 

(1

)

MV (Medium voltage)

 

513

 

140

 

373

 

Non-EDP

 

515

 

143

 

372

 

Non-binding consumers

 

1,920

 

493

 

1,427

 

 

 

 

 

 

 

 

 

Total electricity consumers

 

5,767,916

 

5,665,148

 

102,768

 

% Growth

 

 

 

 

 

1.8

%

 

 

 

 

Number of Clients

 

Consumption (GWh)

 

Liberalised Market

 

2003

 

2002

 

Δ%

 

2003

 

2002

 

Δ%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Market

 

5,767,916

 

5,665,148

 

102,768

 

38,915

 

36,931

 

5.4

%

Eligible Clients

 

21,025

 

20,979

 

46

 

17,403

 

16,426

 

5.9

%

Share of Total Market (%)

 

0.36

 

0.37

 

-0.01

pp

44.7

 

44.5

 

0.24

pp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NBES Clients

 

1,920

 

493

 

1,427

 

4,048

 

958

 

322.6

%

Share of Total Market (%)

 

0.03

 

0.01

 

0.02

pp

10.4

 

2.6

 

7.81

pp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EDP Energia

 

1,405

 

350

 

1,055

 

2,724

 

644

 

323.3

%

Share of NBES Clients (%)

 

73.2

 

71.0

 

2.18

pp

67.3

 

67.2

 

0.10

pp

 

Total electricity distributed in 2003 reached 38,915 GWh, representing a 5.4% growth in Portugal’s electricity consumption, due to a cold winter, a particularly warm summer and a slight recovery in economic growth felt mostly in the industrial segment. The binding system (PES) accounted for 89.6% of total energy distributed in Portugal.

 

Energy sales in the binding system (PES) decreased 3.1% year-on-year mostly due to the continued transfer of some MV customers from the binding to the non-binding system. EDPD won 4 new industrial clients that explain the 27.4% increase in VHV energy sales. As for SLV and LV segments, these continue to grow at healthy rates of 5.5% and 4.6%, respectively.

 

By the end of 2003, electricity customers totalled 5,767,916 up 1.8% year-on-year. The number of clients with “non-binding status” totalled 2,620, out of which, 1,920 were actually acquiring energy in the liberalised market. Between 2002 and 2003, EDP Energia, the Group’s company operating in the non-binding segment, achieved a 67.3% market share in the liberalised market with 2,724 GWh of energy sold to its 1,405 clients.

 

Until December 2003, the eligibility threshold for the non-binding system included all consumers except the low voltage ones. As from January 2004, the eligibility threshold was extended to the SLV clients. Liberalisation for all voltage levels should occur in June 2004.

 


(1) Figures presented include Sales to EDP Group.

(2) PES - Public Electricity System.

(3) NBES - Non-Binding Electricity System.

 

8



 

 

EDPD’s “Electricity Gross Profit”(Regulated Revenues) increased 8.5% year-on year, from €1,089.1 million in 2002 to €1,181.5 in 2003. This is the result of: (i) 2.2% higher allowed revenues for the Use of the Distribution Grid activity, which accounted for 76% of EDPD’s total allowed revenues; (ii) a 16.8% increase in allowed revenues for the Network Services’ activity; (iii) a 54.7% increase in allowed revenues for the Supply in the Public System activity and (iv) a €10.2 million tariff adjustment for deviations in energy acquisition costs in the LV segment.

 

Allowed revenues for the Use of the Distribution Grid activity reflect: (i) a 3.8% and 2.9% decrease, from 2002 to 2003, in unit revenues for HV/MV and LV segments respectively (in accordance with the ‘CPI – X’ formula), and (ii) a 5.4% increase in consumption. The positive effect of higher consumption, which would have meant a 5.4% increase in allowed revenues for this activity, was partly offset by the 2003 tariff cuts resulting in a 2.2% increase in the Use of Distribution Grid’s allowed revenues.

 

Regulated Revenues

 

2003

 

2002

 

 

 

 

 

 

 

Unit revenue for the UDGr: HV and MV (€ / MWh)

 

9.84

 

10.23

 

Electricity delivered to PES/NBES consumers: HV and MV (GWh)

 

39,188

 

37,292

 

Unit revenue for the UDGr: LV (€ / MWh)

 

24.55

 

25.29

 

Electricity delivered to binding/non-binding consumers: LV (GWh)

 

21,512

 

20,368

 

Incentive to losses Reduction (€m)

 

 

(2.2

)

t-2 tariff adjustment (€ m)

 

(13.9

)

(14.0

)

URD total allowed revenues (€ m)

 

900.0

 

880.4

 

 

 

 

 

 

 

Allowed revenues for the NS activity: VHV; HV and MV (€ m)

 

23.3

 

11.2

 

Allowed revenues for the NS activity: SLV (€ m)

 

9.2

 

9.4

 

Allowed revenues for the NS activity: LV (€ m)

 

126.4

 

115.5

 

t-2 tariff adjustment (€ m)

 

 

 

CRedes total allowed revenues (€ m)

 

159.0

 

136.1

 

 

 

 

 

 

 

Allowed revenues for the SPS activity: VHV; HV and MV (€ m)

 

8.4

 

3.8

 

Allowed revenues for the SPS activity: SLV (€ m)

 

2.4

 

1.8

 

Allowed revenues for the SPS activity: LV (€ m)

 

78.8

 

72.7

 

t-2 tariff adjustment (€ m)

 

22.7

 

(5.7

)

CSEP total allowed revenues (€ m)

 

112.3

 

72.6

 

 

 

 

 

 

 

t-1 tariff adjustment for Energy Acquisition activity (€ m)

 

10.2

 

 

Total allowed revenues after tariff adjustment (€ m)

 

1,181.5

 

1,089.1

 

 

Electricity Sales & Gross Profit (€ m)

 

2003

 

2002

 

Δ%

 

 

 

 

 

 

 

 

 

VHV (Very High Voltage)

 

45.3

 

37.9

 

19.4

%

HV (High Voltage)

 

166.3

 

155.5

 

6.9

%

MV (Medium Voltage)

 

618.4

 

787.8

 

-21.5

%

SLV (Special Low Voltage)

 

290.2

 

273.4

 

6.1

%

LV (Low Voltage)

 

2,215.0

 

2,061.7

 

7.4

%

Public lighting

 

95.7

 

86.6

 

10.5

%

Interruptibility discounts

 

(26.7

)

(25.5

)

-4.8

%

Tariff correction discounts

 

(1.4

)

(4.5

)

68.7

%

Invoiced Sales - PES

 

3,402.8

 

3,373.0

 

0.9

%

Invoiced Sales - NBES

 

70.5

 

12.9

 

 

Distribution 2000 Reposition

 

 

20.5

 

 

Distribution 2001 Reposition

 

(6.7

)

 

 

Distribution 2002 Reposition

 

(10.2

)

 

 

Distribution 2002

 

17.9

 

50.0

 

 

Distribution 2003

 

72.2

 

 

 

Tariff Adjustments

 

73.1

 

70.5

 

 

 

 

 

 

 

 

 

 

Electricity Revenues

 

3,546.4

 

3,456.4

 

2.6

%

Tariff adjustments’ reposition

 

0.9

 

20.5

 

 

Sales to customers before reposition

 

3,545.4

 

3,435.9

 

3.2

%

Electricity purchases

 

2,364.0

 

2,346.8

 

0.7

%

Electricity Gross Profit

 

1,181.5

 

1,089.1

 

8.5

%

 

We recall that EDPD also receives the URD and the CREDES tariffs for all the energy sold by any supplier operating in the liberalised market (4,048 GWh in 2003). This amounted to €70.5 million in 2003.

 

The €73.1 million tariff adjustment recognised in 2003 is made up as follows: (i) €6.7 million from the reposition of the positive tariff adjustment booked in 2001; (ii) €10.2 million from the reposition of a 2002 positive adjustment regarding the recovery of variations between estimated and real fuel costs (variable component of energy acquisition for the LV segments - a pass-through to the 2003 tariffs); (iii) €17.9 million from a revision made to the 2002 tariff adjustment following a correction to the amounts of electricity distributed that year (36,931 GWh instead of 36,741 GWh) and (iv) €72.2 million from the 2003 tariff adjustment as real consumption in PES for the period came below ERSE’s estimate (2.1% growth year-on-year) used in the 2003 tariffs. EDPD was therefore not able to recover the fixed component of its electricity purchases fully.

 

9



 

Materials (€ m)

 

2003

 

2002

 

Δ%

 

 

 

 

 

 

 

 

 

Own Work Capitalised

 

95.3

 

67.2

 

41.7

%

Maintenance Works

 

16.1

 

12.9

 

24.5

%

Materials

 

111.3

 

80.1

 

39.0

%

 

Supplies & Services (€ m)

 

2003

 

2002

 

Δ%

 

 

 

 

 

 

 

 

 

Supplies&Services - Group

 

90.7

 

79.9

 

13.5

%

 

 

 

 

 

 

 

 

Supplies&Services - Non-Group

 

115.6

 

123.4

 

-6.3

%

Maintenance costs

 

35.3

 

45.5

 

-22.5

%

Specialised works

 

35.6

 

33.1

 

7.5

%

Communications

 

16.3

 

15.7

 

3.8

%

Insurance costs

 

5.7

 

5.9

 

-3.0

%

Others

 

22.8

 

23.2

 

-1.9

%

Total Supplies&Services

 

206.3

 

203.3

 

1.5

%

 

Personnel costs (€ m)

 

2003

 

2002

 

Δ%

 

 

 

 

 

 

 

 

 

Total Personnel Costs

 

393.8

 

379.6

 

3.7

%

Pension premiums

 

42.7

 

31.0

 

37.7

%

Early retirement correction

 

75.5

 

77.1

 

-2.0

%

Social benefits with early retirees

 

11.1

 

11.9

 

-7.3

%

Medical care with inactives

 

13.4

 

13.1

 

2.2

%

Adjusted Personnel Costs

 

251.2

 

246.5

 

1.9

%

 

 

 

 

 

 

 

 

Number of employees

 

6,334

 

6,979

 

-9.2

%

 

The abnormal increase in sundry materials during the period (39%) is explained by the fact that last year’s costs were lower than normal due to stock write-offs. Sundry materials relate mostly to investment at EDPD which was capitalised and accounted for as “own work capitalised” (subsequently depreciated).

 

The increase in group supplies and services (up 13.5% year-on-year) is related to an €18.8 million bill regarding services supplied by EDP Valor. Note that EDP Valor started its activities as a services provider progressively and that EDPD’s costs with services related to the creation of EDP Valor were fully transferred to that company in the 2Q2003.

 

Non-group supplies and services, which fell 6.3% year-on-year, benefited from a 22.5% decrease in maintenance costs due to both the renegotiation of some maintenance contracts (payments no longer made under a retainer basis) and a higher recourse to EDPD’s internal resources.

 

Personnel costs for the period totalled €393.8 million, up 3.7% year-on-year, mostly on the back of increased “pension premiums”. When corrected for all early-retirement costs, pension premiums and other costs associated with non-active workers, personnel costs would have increased by a mere 1.9%, reflecting a 2.7% average salary increase that was slightly offset by a reduction of 645 employees, with an impact only towards the end of the year.

 

Following ERSE’s approval (August 2003) regarding the pass-through to final tariffs of up to €485.7 million of EDPD’s restructuring costs associated with the “Human Resources Rationalisation Program”, the company decided to resume its early retirements program, which had been suspended. As a consequence, EDPD was able to reduce its workforce by 645 employees, of which 500 were part of this restructuring program for which ERSE accepts the costs. The remaining reductions refer to transfers to the Holding / EDP Valor and early retirements made outside the scope of ERSE’s costs acceptance.

 

Customers/Employee & Sales / Employee

 

 

10



 

EDP Distribuição HR Restructuring Program (Year 0)

 

1                   Accounting Procedures - In year 2003, there is no impact at the level of Net Income...

 

2003 HR Restructuring Program:

 

Negociated Dismissals - 70 employees

Early Retirements - 430 employees

 

Total Costs:

 

Negociated Dismissals - €14.9 m

Early Retirements - €133.4 m

 

Negociated

 

Early Retirements

 

 

 

Extraordinary

 

 

Charge - Recognition

 

Constitution of a

of Liability:

 

Regulatory Asset:

- €14.9 m

 

€133.4 m

 

 

 

Extraordinary Gain

 

Against

Constitution of a

 

 

Regulatory Asset:

 

Recognition of a

+ €14.9 m

 

Deferred Income

 

 

€133.4 m

 

 

 

P&L Impact = 0

 

 

 

BALANCE SHEET

 

 

 

 

 

Accounts

 

 

Payable

Constitution of a

 

€12.5 m

Regulatory

 

 

Asset

 

Cash €2.4 m

 

 

 

€148.4 m

 

Deferred

 

 

Income

 

 

€133.4 m

 

REGULATORY ASSET

 

DEFERRED INCOME

 

 

 

Amortised as Costs Recovery through the Tariffs:

 

Amortised as payment to Early
Retirees:

over a 20 years period;

 

against ‘Other Income’ P&L item;

starting in 2005.

 

from 2004 onwards;

 

 

for an average period of 14 years.

 

2                   ... Impact at the P&L comes from 2004 onwards, in the form of EDPD’s savings with the Human Resources Restructuring Program.

 

INCOME STATEMENT

 

2004

 

2005 *

 

2006

 

2007

 

2004 - 2022

 

...up to 2032

 

TOTAL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electricity Revenues

 

 

22.3

 

7.4

 

7.4

 

148.4

 

 

148.4

 

Costs Recovery through tariffs

 

Operating Costs

 

 

(22.3

)

(7.4

)

(7.4

)

(148.4

)

 

(148.4

)

Amortisation of Regulatory Asset^

 

Personnel Costs

 

(11.2

)

(11.3

)

(11.3

)

(11.3

)

(133.4

)

 

(133.4

)

Payments to Early Retirees

 

Personnel Costs - Savings

 

15.1

 

15.5

 

16.1

 

16.6

 

242.3

 

4.6

 

246.9

 

EDPD Savings with Personnel Reduction

 

Other Income

 

11.2

 

11.3

 

11.3

 

11.3

 

133.4

 

 

133.4

 

Amortisation of Deferred Income

 

P&L Impact (Before Taxes)

 

15.1

 

15.5

 

16.1

 

16.6

 

242.3

 

4.6

 

246.9

 

 

 

 


^ Asset is fully amortised by 2022.

* In 2005, Costs Recovery refers to the 2003-2005 period.

 

3                  What is the value of what was achieved in 2003 with HR Restructuring?

 

NPV assumes the gain of the incentive given
by ERSE against a scenario where the
restructuring cost would not be accepted for
tariffs calculation

 

BENEFITS 2003 HR PROGRAM

 

€ 246.9 million

 

COSTS 2003 HR PROGRAM

 

Considering Costs Recovery through
Tariffs €148.4 million

 

CONSIDERING COSTS RECOVERY
THROUGH TARIFFS

 

NPV (@8,5%) of the Reduction
of 500 employees
at EDP
Distribuição:

 

€100-110 million

 

11



 

EDP Distribuição

 

Operating Income Statement (€ m)

 

2003

 

2002

 

Δ%

 

 

 

 

 

 

 

 

 

Electricity sales - Group

 

35.7

 

2.1

 

 

Electricity sales - Non-Group

 

3,510.6

 

3,454.3

 

1.6

%

Services provided

 

24.7

 

21.6

 

14.6

%

Other sales

 

1.9

 

1.7

 

12.0

%

Operating Revenues

 

3,573.1

 

3,479.7

 

2.7

%

 

 

 

 

 

 

 

 

Direct Activity Costs

 

2,364.0

 

2,346.8

 

0.7

%

 

 

 

 

 

 

 

 

Gross Profit

 

1,209.1

 

1,132.9

 

6.7

%

Gross Profit/Revenues

 

33.8

%

32.6

%

1.3

p.p.

 

 

 

 

 

 

 

 

Sundry materials and goods for resale

 

111.3

 

80.1

 

39.0

%

Supplies and services - Group

 

90.7

 

79.9

 

13.5

%

Supplies and services - Non-group

 

115.6

 

123.4

 

-6.3

%

Personnel costs

 

393.8

 

379.6

 

3.7

%

Concession fees

 

171.7

 

154.0

 

11.5

%

Other operating costs (or revenues)

 

(13.4

)

(12.6

)

-6.2

%

Own work capitalised

 

(183.8

)

(160.7

)

-14.4

%

Operating Costs

 

685.9

 

643.6

 

6.6

%

 

 

 

 

 

 

 

 

EBITDA

 

523.2

 

489.2

 

6.9

%

EBITDA / Revenues

 

14.6

%

14.1

%

0.6

p.p.

 

 

 

 

 

 

 

 

Depreciation and amortisation

 

345.5

 

330.2

 

4.6

%

Provisions

 

42.7

 

65.1

 

-34.4

%

 

 

 

 

 

 

 

 

EBIT

 

135.0

 

93.9

 

43.8

%

EBIT/ Revenues

 

3.8

%

2.7

%

1.1

p.p.

 

Investment (€ m)

 

2003

 

2002

 

Δ%

 

 

 

 

 

 

 

 

 

Distribution grid

 

266.1

 

230.9

 

15.2

%

Public lighting

 

19.6

 

11.4

 

72.7

%

Information systems

 

14.8

 

80.8

 

-81.7

%

Of which: Transfer of IT System

 

13.3

 

80.5

 

 

Other investments

 

43.2

 

48.1

 

-10.2

%

Operating investment (1)

 

343.6

 

371.2

 

-7.4

%

 

 

 

 

 

 

 

 

Investment subsidies - Cash

 

59.7

 

56.9

 

5.0

%

Investment subsidies - Kind

 

61.0

 

54.1

 

12.8

%

Total Investment Subsidies

 

120.8

 

110.9

 

8.8

%

 

 

 

 

 

 

 

 

Operating Invest. Excl. Subsidies

 

283.9

 

314.3

 

-9.7

%

 

 

Gross Profit for the period increased 6.7%, which along with the company’s efforts to improve its operating efficiency, resulted in a 6.9% increase of EBITDA.

 

The 11.5% increase in concession fees reflects a 0.25 p.p. increase in the average rate paid to municipalities (7.25% on the previous year’s LV sales). LV sales increased 6.4% between 2001 and 2002.

 

Provisions for the period totalled €42.7 million, down 34.4% year-on-year, following a change in EDP Distribuição’s accounting procedures, according to which the constitution of provisions for doubtful clients was netted off against extraordinary gains resulting from the reversal of this kind of provisions.

 

The transfer from Edinfor to EDPD of an IT system worth €93.8 million led to a 4.6% increase in amortisations. All together, EBIT increased 43.8% year-on-year to €135.0 million, while EBIT margin went up 1.1 p.p., to 3.8% in 2003.

 

Excluding the amounts of investment relative to the above-mentioned transfer of assets (which do not affect the Group cash-(outflow), EDPD’s operating investment would have increased 13.7% to €330.3 million, of which 80.5% were invested in the distribution grid. These investments, which are aimed at improving the quality of service, allowed for an improvement of the average interruption time at the MV grid (341 min in 2003, down from 420 min in 2002).

 


(1) Includes Cash Subsidies .

 

12



 

Hidrocantábrico (100%) - Generation

 

Spain Energy Balance (GWh)

 

2003

 

2002

 

Δ%

 

 

 

 

 

 

 

 

 

Generation

 

183,633

 

171,524

 

7.1

%

Special Regime

 

39,659

 

34,048

 

16.5

%

Imports

 

8,537

 

9,595

 

-11.0

%

 

 

 

 

 

 

 

 

System Demand - Coverage

 

231,830

 

215,167

 

7.7

%

 

 

 

 

 

 

 

 

Regulated Distribution

 

158,804

 

150,010

 

5.9

%

Supply

 

65,561

 

60,802

 

7.8

%

Exports

 

7,465

 

4,355

 

71.4

%

 

 

 

 

 

 

 

 

Source: OMEL

 

 

 

 

 

 

 

 

HC’s Net Electricity Generation (GWh)

 

2003

 

2002

 

Δ%

 

 

 

 

 

 

 

 

 

Hydroelectric

 

861

 

771

 

11.6

%

Nuclear

 

1,257

 

1,212