Form 6-K
Table of Contents

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 July 2005

 


 

EDP- Energias de Portugal, S.A.

 


 

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      X             Form 40-F              

 

(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                       No       X    

 



Table of Contents

LOGO

 

Financial Results

 

1H2005

 

Investor Relations Department

 

Pedro Pires, Head of IR

Gonçalo Santos

Elisabete Ferreira

Cristina Requicha

Rui Antunes

Catarina Mello

Phone: +351 21 001 2834

Fax: +351 21 001 2899

Email: ir@edp.pt

Site: www.edp.pt

 

Reuters:

   EDP.LS / EDP.N

Bloomberg:

   EDP PL / EDP US

 

Lisbon, 28 July 2005

 

EDP - Energias de Portugal, S.A.

   Headquarters: Praça Marquês de Pombal,12   1250-162 Lisboa   Portugal


Table of Contents

Table of Contents

   LOGO

1H2005 Performance

   3

Income Statement and Balance Sheet

   4

EBITDA Overview

   5

Capex

   6

Cash Flow

   7

Financial Debt and Provisions for Social Benefits

   8

Consolidated Financial Income/(Expense)

   9

Business Areas

    

EDP Produção

   12

EDP Comercial

   14

Enernova & EDP Bioeléctrica

   15

EDP Distribuição

   16

Hidrocantábrico

   21

Brazil

   23

Oni

   26

Income Statement by Business Areas

   29

Cash Flow by Business Areas

   31

Annex (1. Iberian Installed Capacity and Generation; 2. IAS/IFRS Effect on EDP 1H2004 accounts)

   33


Table of Contents
1H2005 Performance    LOGO

 

Results Summary ( €m)


   1H2005

   1H2004

   D%

 

Gross Profit

   1,909.4    1,760.6    8.5 %

Operating Costs

   899.4    834.8    7.7 %

EBITDA

   1,010.0    925.8    9.1 %

EBIT

   607.1    578.8    4.9 %

Net Profit

   318.3    288.0    10.5 %
    
  
  

Net Debt

   8,973.1    7,500.7    19.6 %
    
  
  

Operating Data


   1H2005

   1H2004

   D

 

Electricity:

                

Installed Capacity (MW)

   11,695    11,207    +489 MW  

Generation (GWh)

   22,647    21,619    4.8 %

Distribution (GWh)

   37,952    36,045    5.3 %

Retail (GWh)

   36,506    35,291    3.4 %

Clients (thousand)

   9,482    9,299    +184 th  

Gas:

                

Distribution (GWh)

   12,002    11,639    3.1 %

Retail (GWh)

   9,890    8,350    18.4 %

Clients (thousand)

   571    554    +17 th  
    
  
  

Employees (Group)

   14,790    17,390    -2,600  
    
  
  

 

The EDP Group’s higher activity and the efficiency gains in its core business reflected in a healthy EBITDA and Net Profit growth of 9.1% and 10.5% respectively in the 1H2005.

 

Present in high growth markets

 

EDP continues to benefit from its exposure to the most dynamic electricity markets in Europe. Demand in Iberia posted a strong increase in the period - 6.4% in Portugal and 7.0% in Spain - while in Brazil, demand in EDP’s concession areas went up 3.4%.

 

EDP reaffirms itself as a client focused organisation with a strong value proposition

 

After improving its image and restructuring its commercial organisation in Portugal, during 2005 EDP focused on the commercial image of its subsidiaries in Spain; Hidrocantábrico and Naturcorp launched an integrated dual-fuel offer, electricity and gas, with positive results reflected in the greater number of clients.

 

EDP is now benefiting from efficiency improvements

 

The EDP Group was able to reduce its workforce by 2,600 employees vis-à-vis the 1H2004 due to the successful implementation of the HR Restructuring Program in 2003 and 2004 and to the sale of 60% of Edinfor to LogicaCMG. Personnel costs with active workers in the domestic core business (excluding severance payments) fell 4% year-on-year.

 

Operating performance also reflects the full consolidation of Hidrocantábrico’s P&L

 

Spanish activities were the main contributor to the improvement of the operating performance. Hidrocantábrico in Spain benefited from the rise in pool prices since it is long in generation vs. supply.

 

Domestic operations affected by high purchase costs

 

EDP Produção was affected by the high pool prices as a result of its short position in the non-binding generation vs. the energy management activity provided to EDP Comercial (liberalised supply). EDP Distribuição, despite benefiting from a strong increase in demand was negatively impacted by an increase in electricity purchase costs namelly high fuel costs, which will be passed through to tariffs in subsequent years.

 

Strong operating performance in Brazil

 

Operations in Brazil continued to post strong increases following consumption growth and tariff adjustments.

 

In July 2005, EDP’s Brazilian subsidiary, Energias do Brasil, started trading in the Novo Mercado of the Bovespa following Initial Public Offering

 

This operation gave visibility to Energias do Brasil as one of the leaders in the Brazilian energy market, and allowed EDP Grupo to control a vehicle that will be able to take advantage of new opportunities in the Brazilian electricity sector and to substantially strengthen the capital structure of Energias do Brasil, following proceeds of R$434.9m and the conversion of R$670m of Escelsa Senior Notes, held by EDP, into ordinary shares of Energias do Brasil.

 

3


Table of Contents
Income Statement and Balance Sheet    LOGO

 

The financial statements presented in this document are non-audited. 2004 figures are pro-forma.

 

Consolidated Income Statement (€m)


   1H2005

    1H2004

    D%

 

Electricity Sales

   4,243.3     3,266.7     29.9 %

Other Sales

   313.7     127.2     146.7 %

Services Provided

   287.1     266.6     7.7 %

Operating Revenues

   4,844.1     3,660.4     32.3 %

Electricity & Gas

   2,405.6     1,645.0     46.2 %

Fuel

   510.6     222.8     129.2 %

Materials and goods for resale

   18.4     32.1     -42.6 %

Direct Activity Costs

   2,934.6     1,899.9     54.5 %

Gross Profit

   1,909.4     1,760.6     8.5 %

Gross Profit/Revenues

   39.4 %   48.1 %   -8.7 %

Supplies and services

   408.8     306.9     33.2 %(1)

Personnel costs

   285.9     279.3     2.4 %

Costs with social benefits

   14.2     121.6     -88.3 %(2)

Concession fees

   103.1     94.7     8.8 %

Other operating costs (or revenues)

   87.4     32.3     170.6 %(3)

Operating costs

   899.4     834.8     7.7 %

EBITDA

   1,010.0     925.8     9.1 %

EBITDA/Revenues

   20.9 %   25.3 %   -4.4 %

Depreciation and amortisation

   443.8     384.9     15.3 %

Comp.of subsidised assets’ depreciation

   (40.9 )   (38.0 )   -7.7 %

EBIT

   607.1     578.8     4.9 %

EBIT/Revenues

   12.5 %   15.8 %   -3.3 %

Financial income/(expense)

   (103.3 )   (151.9 )   32.0 %

Amortisation of concession rights

   (18.8 )   (21.4 )   12.5 %

Discontinued Activities

   —       —       —    

Pre-tax profit

   485.1     405.4     19.6 %

Income taxes and deferred taxes

   134.9     124.7     8.2 %

Minority interests

   31.8     (7.3 )   —    

Net Profit

   318.3     288.0     10.5 %

 

Assets (€ m)


   1H2005

    YE2004

 

Fixed assets

   17,342.1     17,116.7  

Intangible assets, net

   3,007.2     2,987.5  

Tangible assets, net

   13,012.9     12,628.0  

Financial Investments, net

   1,322.1     1,501.2  

Other assets

   3,525.2     2,968.4  

Inventories

   147.7     168.6  

Accounts receivable - trade, net

   1,459.1     1,184.9  

Accounts receivable - other, net

   1,562.4     1,324.6  

Cash and cash equivalents

   356.0     290.4  

Deferred Tax

   1,353.9     1,171.0  
    

 

Total assets

   22,221.2     21,256.2  
    

 

Shareholders’ equity (€ m)


   1H2005

    YE2004

 

Share capital

   3,656.5     3,656.5  

Own shares

   (47.6 )   (31.7 )

Earnings and other reserves

   493.3     428.7  
    

 

Shareholders’ equity

   4,102.3     4,053.5  
    

 

Minority interest

   811.8     743.9  

Hydrological correction account

   265.3     364.2  

Liabilities (€ m)


   1H2005

    YE2004

 

Provisions

   2,207.2     2,290.3  

Financial Debt

   9,616.1     9,161.1  

Short-term debt & current portion of long-term debt

   2,012.0     1,975.1  

Long-term debt

   7,604.0     7,186.0  

Other liabilities

   4,566.3     4,068.8  

Accounts payable - trade, net

   4,360.1     3,860.4  

Accounts payable - other, net

   206.3     208.3  

Deferred Tax

   652.2     574.3  
    

 

Total liabilities

   17,041.8     16,094.5  
    

 

Total liabilities and shareholders’ equity

   22,221.2     21,256.2  
    

 


Notes:

 

(1) The 1H2005 S&S include IT services in the amount of €49m to our IT department (“GSI”). Following the sale of Edinfor (previously owned by EDP) we started booking the services provided by that company as supplies & services rendered by an external entity. In the 1H2004, Edinfor had charged EDP €42.9m.
(2) The 1H2004 includes a €44.3m cost related to the NPV of the Human Resources Restructuring Program negotiated with ERSE and €10.9m of incentives mostly related to the anticipation to the retirement age programme. There is a €60m decrease in ‘pension premiums’ and ‘medical care provisions’ explained by the following: (i) in the 1H2004, we have increased provisions for pension liabilities by €23.1m and provisions for medical care liabilities by €5.0m following the 2004 actuarial study; (ii) in the 1H2005, we have reduced provisions for pension liabilities by €26.6m and provisions for medical care liabilities by €5.1m following the 2005 actuarial study.
(3) Other operating costs or revenues include an extraordinary provision of €83m, a capital gain from the sale of REE of €8m, a €15m capital gain on the sale of 60% of Edinfor and a €12m capital gain on the transfer to EDP’s pension fund of a 2.01% stake in BCP.

 

4


Table of Contents
EBITDA Overview    LOGO

 

EBITDA (€ m)


   1H2005

    1H2004

    D%

 

EDP Produção

   409.6     433.6     -5.5 %

EDP Comercial

   (13.6 )   (1.8 )   -657.9 %

Enernova & EDP Bioeléctrica

   12.2     8.2     49.3 %

EDP Distribuição

   264.1     312.6     -15.5 %

Hidrocantábrico (1)

   284.2     77.3     267.4 %

Brazil

   162.8     102.4     58.9 %

Oni

   11.2     6.6     70.5 %

Other & Adjustments

   (120.4 )   (13.1 )   -815.9 %
    

 

 

Consolidated

   1,010.0     925.8     9.1 %

 

LOGO

 


(1) excludes other & adjustments

 

LOGO

 

  EDP Produção’s EBITDA decreased 5.5% reflecting the negative impact of the high Spanish pool prices in the electricity purchase service provided to EDP Comercial. This impact was mitigated by the extra output provided by Ribatejo CCGT II and by a fall in personnel costs and social benefits.

 

  EPD Comercial’s EBITDA reflects the business growth in a more competitive environment.

 

  Despite the strong increase in demand, the negative change in EDP Distribuição’s EBITDA reflects a swing in fuel costs’ adjustments that affected the energy acquisition activity (note that these deviations are passed-through to tariffs in the following year). This negative impact in the gross profit was partly offset by a 20.4% decrease in operating costs.

 

  EDP fully consolidated Hidrocantábrico’s P&L for the first time in 2005. Hidrocantábrico posted a strong EBITDA increase (+47.0%) following the sharp rise in pool prices from €32/MWh to €57/MWh. The consequent system tariff deviation was not deducted (€89m for HC) from revenues, given the strong likelihood of recovery. In April 2005, HC sold its 3% stake in REE with a capital gain of €31.9m. However at the EDP consolidated level this capital gain reflects in €8.3m since REE’s stake was accounted at YE2004’s at market value.

 

  Brazil continues to provide strong growth. All activities in Brazil posted an EBITDA increase in the 1H2005 following higher volumes in the distribution and supply activities, the positive impact of the annual tariff adjustments in distribution and lower electricity purchase costs than the established by regulation (note that these deviations are passed-through to tariffs in the following year). Following the corporate restructuring in Brazil, which is expected to yield further efficiency gains when fully implemented, Energias do Brasil owns 100% of its distribution subsidiaries after the roll-up of minorities into the holding level which reduced EDP’s stake in Energias do Brasil to 69%. This stake was reduced to 66% in July 2005, following the IPO.

 

  Oni’s EBITDA increased 70.5% year-on-year, as a result of a positive evolution of the mix of services provided by Comunitel and a strict control of personnel costs and supplies & services other than those related to clients’ acquisition and retention. In July 2005, Oni reached an agreement to sell Comunitel for €215m.

 

  ‘Other’ and adjustments include -€23m related to the adjustment of the capital gain from REE, a €12m capital gain on the transfer to EDP’s pension fund of a 2.01% stake in BCP, a €15m capital gain on the sale of 60% of Edinfor, and the creation of a one-off provision of €83m.

(1) 40% in the 1H2004

 

5


Table of Contents
Capex    LOGO

 

CAPEX (€ m)


   1H2005

   1H2004

   D%

 

EDP Produção

   62.7    99.6    -37.1 %

EDP Comercial

   0.6    1.6    -61.0 %

Enernova & EDP Bioeléctrica

   10.5    31.4    -66.6 %

EDP Distribuição

   132.6    118.1    12.2 %

Hidrocantábrico (1)

   109.2    50.8    n.a.  
    
  
  

Iberian Energy

   315.6    301.6    4.6 %
    
  
  

Brazil

   180.9    114.0    58.8 %

Telecoms

   15.4    13.2    17.2 %

Other

   3.7    14.2    -74.3 %
    
  
  

Total

   515.6    442.9    16.4 %
    
  
  

 

LOGO

 

  The EDP Group’s capital expenditures totalled €515.6m in the 1H2005, up 16.4% year-on-year, on the back of the initial construction works of the third 392 MW unit at the Ribatejo CCGT, investments in the Portuguese distribution grid, the construction of the Peixe Angical power plant in Brazil, investments related to the mandatory universal connection programme of all low voltage consumers in Brazil and the full consolidation of Hidrocantábrico’s operating investment (40% in the 1H2004). Note that the figures presented correspond to the EDP Group’s cash out flow on operating investments, considering the consolidation method for each subsidiary.

 

  The bulk of EDPP’s capex in the 1H2005 was allocated to the construction works of the third 392 MW unit of the Ribatejo CCGT (€33.4m). As of June 2005, €102.0m had already been invested in this unit. Total investment is expected to reach €197m by 2006, when it should start operations. In addition, in the 2Q2005, EDPP started investing in works to reduce SO2 and NOX emissions at the Sines Power Plant (€8.2m). Total estimated environmental investments at Sines will amount to approximately €250m.

 

  In order to improve the quality of service, EDPD’s capex focused on the distribution network. Investments in the distribution grid, accounting for 93% of EDPD’s operating investment, increased 9.2% year-on-year, which along with favourable weather conditions, allowed for a 17.6% improvement of Equivalent Interruption Time (100min. in the 1H2004 vs. 82min. in the 1H2005).

 

  More than 50% of Hidrocantábrico’s capex was allocated to the construction of new wind farms. During 2005 capacity is expected to increase by 140MW, representing a total investment for the year of approximately €120m. In 2005 the following wind farms should start operations: Las Lomillas (50MW – 50% held by Genesa) (July); La Sotonera (19MW) (July); La Brújula (74 MW) (September); and El Boquerón (22 MW) (December). In addition, HC started the environmental investments ( €9m in the 1H2005) related to the reduction of SO2 and NOx at Aboño and Soto, in order to comply with EU directives until the end of 2007. Total estimated investment in the 2005-2007 period amounts to approximately €140m.

 

  Peixe Angical hydro power plant (450 MW) represented 60% of the capex in Brazil. Investments in this project amounted to R$307.8m (€108.0m) in the 1H2005 and EDP expects to invest a total of R$540m in 2005 and a further R$186m in 2006, when it should start operations. Note that this figure corresponds to 100% of the project, of which EDP owns 60%. The project is also being financed through a R$670m loan with BNDES. In addition, capex in Brazil includes a total R$66.1m (€23.2m) related to the mandatory universal connection programme – “Universalização” – to all low voltage consumers.

(1) 40% in the 1H2004

 

6


Table of Contents
Cash Flow    LOGO

 

 

Operating Cash Flow by Business Area (€ m)


   1H2005

    1H2004

    D%

 

EDP Produção

   361.4     420.0     -13.9 %

EDP Comercial

   (10.3 )   (22.7 )   54.9 %

Enernova & EDP Bioeléctrica

   17.6     9.4     88.6 %

EDP Distribuição

   228.3     257.9     -11.5 %

Hidrocantábrico

   85.3     122.6     -30.4 %

Brazil

   141.5     105.9     33.6 %

Oni

   17.5     15.4     13.5 %

Hydro Correction

   (98.9 )   (7.5 )   —    

Other

   (69.7 )   (49.0 )   -42.3 %
    

 

 

EDP Group Operating Cash Flow

   672.8     852.0     -21.0 %
    

 

 

 

LOGO

 

Consolidated Cash Flow (€ m)


   1H2005

 

Net Profit

   318.3  

Depreciation

   443.8  

Compensation of subsidised assets’ depreciation

   (40.9 )

Concession Rights’ Amortisation

   18.8  

Net Provisions

   (45.1 )

Interest Hydraulicity Account

   3.8  

Forex Differences

   (44.3 )

Income From Equity Method

   (25.0 )

Deferred Taxes

   (22.1 )

Minority Interests

   31.8  

Other Adjustments

   99.8  

Net Financial Interests and other financial costs (or revenues)

   136.2  
    

Operating Cash Flow before Working Capital

   875.3  
    

Change in Operating Working Capital

   (14.6 )

Hydro Correction

   (98.9 )

Tariff Deviation in Spain

   (88.9 )
    

Operating Cash Flow

   672.8  
    

Capex

   (515.6 )
    

Net Operating Cash Flow

   157.2  
    

Divestments of Fixed Assets

   177.8  

Net Financial Investments

   (155.1 )

Net Financial Interests and other financial costs (or revenues)

   (136.2 )

Dividends Paid

   (336.0 )

Other Changes in Non-Operating Working Capital

   (103.9 )

Cash & Equivalents

   (58.8 )
    

Decrease/(Increase) in Financial Debt

   (455.0 )
    

LOGO

 

 

7


Table of Contents
Financial Debt and Provisions for Social Benefits    LOGO

 

 

Financial Debt (€ m)


   1H2005

     2004

EDP S.A. and EDP Finance BV

   6,996.7      5,553.0

EDP Produção

   31.4      33.9

EDP Comercial

   —        —  

Enernova & EDP Bioeléctrica

   15.9      17.0

EDP Distribuição

   —        —  

Hidrocantábrico

   452.7      1,621.1

Brazil

   973.2      731.4

Oni

   580.1      622.5

Other

   19.2      42.4
    
    

Sub-Total

   9,069.2      8,621.3
    
    

OPTEP Derivative (Liability)

   315.0      315.0

Fair Value on Hedged Debt

   96.8      107.6

Accrued Interests on Debt

   135.1      117.3
    
    

Total Financial Debt

   9,616.1      9,161.1
    
    

Cash and cash equivalents

   356.0      290.4

OPTEP Derivative (Asset)

   287.0      336.0
    
    

EDP Consolidated Net Debt

   8,973.1      8,534.7
    
    

Net Debt Allocation (€ m)


   1H2005

     2004

Internal + External Debt            

EDP Produção

   1,965.1      2,168.5

EDP Comercial

   81.0      89.1

Enernova & EDP Bioeléctrica

   164.9      127.9

EDP Distribuição

   1,432.6      1,339.5

Hidrocantábrico

   1,647.8      1,711.3

Brazil

   1,141.5      912.0

Oni

   683.3      703.9

EDP SA & adjustments

   1,856.8      1,482.4
    
    

EDP Consolidated Net Debt

   8,973.1      8,534.7
    
    

Provisions for Social Benefits (€ m)


   1H2005

     2004

Pensions

   1,156.3      1,267.1

Medical Care

   734.4      728.4
    
    

Total

   1,890.6      1,995.4

(1) Nominal Value
Debt Ratings
   

S&P


  

Moody’s


  

Fitch


SA & BV

 

A/Neg/A1

   A2/St/P1     

HC

       A3/St/P2    BBB/P/F2

Bandeirante

       Ba3/St     

Escelsa

 

B+/Neg

   B2/Neg     

Investco

       Ba1/St     

 

LOGO

 

LOGO

 

  The EDP Group’s total net debt increased by €438.3m, vis-à-vis YE2004, to €8,973.1m. Despite operating cash flow in the 1H2005 amounting to €672.8m, financial debt increased following capital expenditures of €515.6m, the annual dividend payment of €336.0m, financial investments of €155.1m and a hydro correction payment to REN of €98.9m due to a very dry period which had an impact on the operating cash flow. In this period EDP divested from REE (€76m), concluded the sale of 60% of Edinfor to LogicaCMG (€81m) and sold an office building to REN (€21m).

 

  Financial investments in the period consisted of: i) the purchase of a 46.625% stake in Portgás (€85.0m), the second gas distribution company in Portugal with 126 thousand clients (by the end of 2004 EDP already had acquired a 12.9% indirect stake in this company for €66.9m); ii) the acquisition of an additional 20% stake in Turbogás (€52.0m), which owns a 990 MW CCGT power plant, increasing EDP’s stake in that company to 40%; and iii) the purchase of 2 wind farms, for €18.1M, with 53 MW in the pipeline, of which 12 MW should come into service in September 2005 and 42 MW in June 2006.

 

  The replacement of Hidrocantábrico’s long term financial debt with inter-company loans explains the swing in the external financial debt at the Holding level and at Hidrocantábrico. This debt restructuring process, which was concluded at the beginning of 2005 with the replacement of €1,375m, will result in consolidated financial cost savings (estimated at €6m per year).

 

  Net debt allocated to the Iberian core business fell from €5,436 in the 1H2004 to €5,291 in the 1H2005 due to the strong cash flow generation of these businesses. The net debt increase in Brazil is explained by the Real appreciation against the Euro (27% since YE2004) and by the funding obtained from BNDES (R$603.3m or €211.7m as of June 2005), related to the construction of Peixe Angical 450 MW hydro power plant that should be concluded during 2006.

 

8


Table of Contents
Consolidated Financial Income/(Expense)    LOGO

 

 

Financial Results (€ m)


   1H2005

    1H2004

    D%

 

Income from group&associated cos.

   25.0     5.7     337.3 %

Investment income

   29.1     9.0     —    

Financial Investments Gains/(Losses)

   54.1     14.7     268.3 %

Net financial interest paid

   (159.9 )   (143.9 )   -11.1 %

Net foreign exchange differences

   44.3     (18.0 )   —    

Other

   (41.8 )   (4.7 )   —    

Financing Gains/(Losses)

   (157.4 )   (166.6 )   5.5 %
    

 

 

Financial results

   (103.3 )   (151.9 )   32.0 %
    

 

 

Income from Equity Method (€ m)


   1H2005

    1H2004

    D%

 

REN (30%)

   7.8     (5.4 )   —    

Edinfor (40%)

   (5.8 )   —       —    

Portgás (60%)

   5.0     —       —    

CEM (22%)

   4.3     3.8     15.8 %

Turbogás (40% in 2005/20% in 2004)

   6.2     3.5     77.7 %

DECA II (EEGSA (21%))

   3.1     1.2     146.8 %

HCs subsidiaries

   1.4     1.2     10.6 %

Other

   2.9     1.4     —    
    

 

 

Total

   25.0     5.7     337.1 %
    

 

 

 

Note 1: The 1H2004 equity contribution from REN, now presented, changed from last year’s reported figure, as the consequence of the application of the IFRS to REN’s accounts. In accordance with the IFRS conceptual framework, regulatory assets or liabilities, among other, are not recognised, resulting in an adjustment of -€14.4m to the equity contribution of REN.

 

Amort. of rights and concession (€ m)


   1H2005

   1H2004

   D%

 

EBE

   4.3    4.4    -3.3 %

IVEN (Escelsa/Enersul)

   10.7    10.8    -1.2 %

Comunitel

   2.2    2.0    10.1 %

Oni

   1.6    1.7    -2.9 %

Edinfor (goodwill impairment)

   —      2.5    —    
    
  
  

Total

   18.8    21.4    -12.3 %
    
  
  

 

Note 2: Under IAS, goodwill ceases to be amortised in the P&L, and the underlying assets become subject to an impairment test.

 

LOGO

 

Financial results were influenced by:

 

A €13.9m increase in “Income from group and associated cos.” that includes the following main positive impacts: i) a €7.8m equity contribution from REN, as a consequence of the dividends received from GalpEnergia (18.3% owned by REN); ii) the initial consolidation of Portgás (+€5.0m), a gas distribution company, following the exercise in December 2004 of the call option on 60% of its share capital; and iii) the increase in EDP’s stake in Turbogás (from 20% to 40%) which balanced the impact from the company’s lower net profit (+€2.7m). These were mitigated by the negative contribution from Edinfor (-€5.8m) that started to be equity consolidated as from January 2005 (previously fully consolidated in EDP’s accounts) after the sale of 60% of the company to LogicaCMG.

 

The €20.1m increase in “Investment Income”, is due to i) the distribution of dividends from GalpEnergia (14.27% owned by EDP), which amounted to €23.7m in the 1H2005, whereas in 2004 the company only distributed dividends in the 4Q; ii) lower dividends received from MillenniumBCP (€5.0m), following the early distribution of part of the 2005 dividend in the 4Q2004.

 

Net financial interest paid” increased 11.1% reflecting i) the increase in debt from the full consolidation of Hidrocantábrico (previously 40% consolidated) in the 1H2005 (+€26.0m), ii) mitigated by the fall in the average cost of debt from 3.99% to 3.75% (-€10.1m).

 

Net foreign exchange differences” in the 1H2005 mainly reflect the effect of the 13% appreciation of the Brazilian Real against the US Dollar on the dollar denominated debt in Brazil (7% depreciation in the 1H2004).

 

The drop in “Other” financial gains and losses include i) the hedge of Bandeirante’s US Dollar denominated debt (-€21.4m), which compensated the gain in “Net Forex differences”; ii) and the negative result from the implementation of IAS39, regarding the fair value of the derivatives (-€8.3m).


(1) Net Forex Differences in chart were adjusted for hedge instruments accounted in “Other”

 

9


Table of Contents

Business Areas


Table of Contents
Electricity Generation in Portugal    LOGO

 

 

Electricity Generation (GWh)


   1H2005

    1H2004

    D%

 

Hydroelectric (PES) (1)

   2,328     5,335     -56.4 %

Thermoelectric (PES) (1)

   7,478     5,439     37.5 %
    

 

 

Binding Generation

   9,806     10,774     -9.0 %
    

 

 

Hydroelectric (NBES) (2)

   61     230     -73.4 %

TER CCGT (NBES) (2)

   2,624     1,155     127.2 %
    

 

 

Non-Binding Generation

   2,685     1,385     93.9 %
    

 

 

Small hydro

   48     83     -42.4 %

Cogeneration

   339     358     -5.2 %

Wind farms

   161     96     67.3 %

Biomass

   23     24     -2.7 %
    

 

 

Special Regime Producers

   571     561     1.9 %
    

 

 

Total EDP generation

   13,063     12,719     2.7 %
    

 

 

Pego thermal power station (PES) (1)

   2,465     1,974     24.9 %

Tapada thermal power station (PES) (1)

   3,297     3,049     8.1 %

Alqueva hydroelectric power station

   45     34     32.4 %

Auto-producers (IES) (3)

   2,592     1,882     37.7 %

Import / (Export) net

   2,929     3,351     -12.6 %

Direct sales to ind. clients (incl. in Cogen.)

   (119 )   (268 )   55.5 %

Pumping

   (270 )   (176 )   -53.4 %

Gross demand

   24,001     22,565     6.4 %

Synchronous compensation

   (15 )   (22 )   33.2 %

Own consumption - generation

   (2 )   (5 )   65.1 %

Own consumption - transmission grid

   (5 )   (5 )   3.5 %

Transmission losses

   (345 )   (405 )   14.7 %
    

 

 

Energy delivered to distribution

   23,634     22,129     6.8 %
    

 

 

Hydro Coeficient

   0.33     0.81     -59.3 %
    

 

 

 

LOGO

 

Thermal generation (GWh)


   1H2005

   1H2004

   D%

    Fuel

   MW

Sines

   4,813    4,887    -1.5 %   Coal    1,192.0

Setúbal

   1,853    311    —       Fuel oil    946.4

Carregado

   680    165    —       Fuel oil/Nat. Gas    710.2

Barreiro

   116    71    63.5 %   Fuel oil    56.0

Tunes (4)

   17    5    —       Gas Oil    165.0
    
  
  

        

Thermal emission (PES)

   7,478    5,439    37.5 %         

 

LOGO

 

  Portugal’s electricity demand continued to show a healthy growth rate of 6.8% from the 1H2004 to 23.6 TWh. The EDP Group accounted for 54% of the total energy delivered to the system (stable from 55% in the 1H2004).

 

  EDP’s electricity generation output went up 2.7% year-on-year, due to i) a five fold increase in output from fuel-oil power plants and ii) the contribution of the second 392 MW unit of the Ribatejo CCGT that started operating in the 4Q2004. These effects offset the impact of the lower utilisation of EDP’s hydroelectric power stations - 50% of EDP’s installed capacity in Portugal – in one of the driest periods of the last years (hydro coefficient of 0.33 vs. 0.81 in the 1H2004).

 

  As a result the contribution of EDP’s Hydro plants to total Group domestic generation fell from 44% in the 1H2004 to 19% in the 1H2005. However, EDP’s gross profit is only marginally affected by swings in generation output or fuel costs hikes (see in next page) since 86% of its installed capacity in Portugal is bound to long-term Power Purchase Agreements (PPAs) in the Public Electricity System (PES).

(1) PES - Public Electricity System
(2) NBES - Non-binding Electricity System
(3) IES - Independent Electricity System
(4) In April 2004, Units 1 and 2 (32MW) at Tunes were decomissioned from service in the PES
(5) Load Factor: number of equivalent hours to the output of a power plant relative to the total number of hours in the period

 

11


Table of Contents
EDP Produção    LOGO

 

PES (€ m)


   1H2005

   1H2004

   D%

 

PPA Capacity Charge

   452.0    443.1    2.0 %

PPA Energy Charge

   229.7    123.1    86.7 %

Steam (Barreiro) & Ashes

   3.0    3.1    -2.0 %

(-) Coal

   105.3    83.5    26.1 %

(-) Fuel oil

   112.0    21.4    422.9 %

(-) Natural Gas

   1.5    7.4    -80.3 %

(-) Gas Oil

   2.0    0.6    259.6 %

(-) Electricity Autoconsumption & Materials

   3.7    2.8    33.7 %
    
  
  

PPA Gross Profit

   460.3    453.7    1.5 %

NBES (€ m)


   1H2005

   1H2004

   D%

 

Electricity Sales

   241.4    75.2    —    

(-) Direct costs (fuel + purchases + trading)

   227.2    22.9    —    
    
  
  

NBES Gross Profit

   14.2    52.3    -72.9 %

SRP (€ m)


   1H2005

   1H2004

   D%

 

Cogeneration

   32.0    27.6    16.2 %

Small hydro (<10 MW)

   4.0    6.3    -37.7 %

(-) Natural Gas (Cogeneration)

   21.0    18.4    14.2 %

(-) Electricity Purchases

   0.2    0.5    -66.7 %
    
  
  

SRP Gross Profit

   14.8    15.0    -1.0 %

 

LOGO

 

  Gross Profit in the Public Electricity System (PES) went up 1.5% reflecting the stable return profile of the PPA Capacity Charge and the pass-through of fuel costs by means of the PPA Energy Charge. The slight increase in the PPA Capacity Charge in the period reflects inflation, mitigated by both i) the lower availability factors (km) at the hydro power stations (hydro km: 1.040 in 1H2005 vs. 1.048 in 1H2004) and ii) the decommissioning in December 2004 of the 47MW Tapada do Outeiro plant (€3.0m contribution in the 1H2004). The fuel procurement margin (Energy Charge minus Fuel Costs) decreased from €10.3m in 1H2004 vs. €9.0m in 1H2005 as a result of i) the lower spreads between EDPP’s acquisition costs and the international fuel prices’ indices (used as benchmark to calculate the PPA Energy Charge) experienced in the 1H2005 and ii) the negative impact in the 1H2004’s fuel procurement margin from the revaluation of EDPP’s coal stocks (€2.8m).

 

  Gross Profit in the Non-Binding Electricity System (NBES) decreased to €14.2m following i) an approximately 60% reduction in the energy delivered to EDPD (“parcela livre”) and ii) the negative impact of high pool prices in the 1H2005 on the electricity purchase service provided by EDPP to EDP Comercial (EDPC): EDPP guarantees EDPC’s electricity purchase price, shielding EDPC’s commercial activity from the short-term pool price volatility. The non-binding generation did benefit from the extra output provided by the second unit of the Ribatejo CCGT, which more than compensated for the lower volumes generated by the hydro plants operating in the NBES.

 

  Gross Profit from Special Regime Producers (SRP) decreased because of the 42% fall in output from the small hydro power stations (with installed capacities lower than 10 MW) as a result of the dry period. The 25.9% increase in gross profit from EDP’s cogenerators was driven by the rise in output to the system (more than doubled in the 1H2005) and the increase in the selling price to industrial clients (which is indexed to the average cost of natural gas), mitigated by the increase in fuel costs.

 

LOGO

 

 

12


Table of Contents
EDP Produção    LOGO

 

Operating Income Statement (€ m)


   1H2005

    1H2004

    D%

 

Energy sales

   951.1     668.0     42.4 %

Services provided

   (39.6 )   35.6     —    

Other sales

   11.0     10.4     6.0 %

Operating Revenues

   922.6     714.0     29.2 %

Electricity

   91.2     18.0     407.2 %

Fuel for electricity generation

   333.3     164.8     102.2 %

Materials and goods for resale

   2.1     1.3     64.7 %

Direct Activity Costs

   426.6     184.1     131.7 %

Gross Profit

   496.0     529.9     -6.4 %

Gross Profit/Revenues

   53.8 %   74.2 %   -20.5 p.p.  

Supplies and services - Group

   14.3     9.6     49.2 %

Supplies and services - Non-Group

   25.2     23.0     9.6 %

Personnel costs

   42.5     48.7     -12.8 %

Costs with social benefits

   5.4     17.5     -69.4 %

Generation centre rentals

   1.9     1.8     4.0 %

Other operating costs (or revenues)

   (2.8 )   (4.2 )   34.8 %

Operating Costs

   86.4     96.4     -10.3 %

EBITDA

   409.6     433.6     -5.5 %

EBITDA / Revenues

   44.4 %   60.7 %   -16.3 p.p.  

Depreciation and amortisation

   99.0     103.7     -4.6 %

Compensation of subsidised assets’ depr.

   (0.3 )   (0.0 )   -938.1 %

EBIT

   310.9     329.9     -5.8 %

EBIT / Revenues

   33.7 %   46.2 %   -12.5 p.p.  

Number of employees


   1H2005

    1H2004

    D%

 

Number of employees

   1,726     1,944     -11.2 %

Generation activity

   1,058     1,164     -9.1 %

Maintenance and engineering activity

   474     498     -4.8 %

Energy management activity

   29     29     —    

Sub-Holding

   165     253     -34.8 %

MW/Employee

   4.69     4.00     17.1 %

Operating investment (€ m)


   1H2005

    1H2004

    D%

 

Binding generation

   18.1     10.7     69.4 %

Non-Binding generation

   33.8     80.7     -58.1 %

Other investments

   1.4     1.7     -12.5 %

Financial costs (capitalised) and invest.

   9.3     6.6     42.1 %
    

 

 

Total operating investment

   62.7     99.6     -37.1 %
    

 

 

Recurring investment

   5.4     5.2     4.0 %

Non-recurring investment

   57.3     94.4     -39.3 %

 

LOGO

 

  EDPP’s EBITDA dropped 5.5% following the negative impacts of lower sales to EDPD and of the high pool prices on the gross profit of the non-binding activity of EDPP, despite a 10.3% decrease in operating costs as explained below.

 

  Supplies and Services increased €7.0m as a result of i) higher maintenance costs (+€4.3m) due to the late implementation of CPPE’s annual maintenance program in 2004 (+€2.6m), higher maintenance in the fuel-oil power stations as a result of the higher utilisation, the start of operations of Ribatejo’s second 400MW unit and repair works in Soporgen (+€0.9m); ii) an exceptional charge (+€1.9m) related to advisory fees on the CMECs; and iii) higher charges from EDP S.A. (+€2.5m) - following the new group policy of allocating to the business units the costs of services rendered by the holding company - and EDP Valor (+€0.2m).

 

  Personnel costs decreased 12.8% reflecting i) the 11.2% reduction in the number of employees which resulted in a 4.4% fall in salaries paid (despite a 2.9% avg. salary increase in 2005); and ii) fewer negotiated dismissals in the period which reduced severance payments by €1.2m (€1.6m in the 1H2004). The reduction in the number of employees in the 2Q2005 includes the transfer of 62 employees from EDPP to EDP Valor.

 

  Costs with social benefits fell €12.1m (-69.4%) from the 1H2004 due to: i) an €4.4m increase in pension premiums in the 1H2004 to account for the insufficiency identified in the 2004 actuarial study; ii) €2.6m premiums paid under the flexible retirement program in 1H2004; iii) a €3.4m decrease in pension premiums to account for the excess identified by the 2005 actuarial study in 1H2005 and iv) the fact that the 1H2005 is benefiting from reduction in other costs with inactive personnel that, following the flexible retirement program accepted partial payment from the Portuguese Social Security System.

 

  Operating investment decreased 37.1%, following the end of the construction of the second unit of the Ribatejo CCGT. The third unit of this power station represented approximately 50% of the total capex in the period. The increase in operating investments in binding generation is related to the beginning, in the 2Q2005, of both i) the works to reduce SO2 and NOx emissions at the Sines power station (€8.2m) and ii) the start of the project for Baixo Sabor hydro power station (€1.5m).

 

13


Table of Contents
EDP Comercial    LOGO

 

Operating Income Statement (€ m)


   1H2005

    1H2004

    D%

 

Operating Revenues

   244.4     153.8     58.9 %

Direct Activity Costs

   252.0     150.7     67.2 %

Gross Profit

   (7.6 )   3.1     —    

Gross Profit/Revenues

   -3.1 %   2.0 %   -5.1 p.p.  

Supplies and services

   4.7     2.9     62.7 %

Personnel costs

   1.2     1.6     -24.9 %

Costs with social benefits

   0.2     0.2     -2.9 %

Other operating costs (or revenues)

   0.0     0.3     -99.9 %

Operating Costs

   6.0     4.9     23.0 %

EBITDA

   (13.6 )   (1.8 )   -657.9 %

EBITDA / Revenues

   -5.6 %   -1.2 %   -4.4 p.p.  

Depreciation and amortisation

   2.2     1.7     23.9 %

Compensation subsidised assets’ deprec.

   —       —       —    

EBIT

   (15.7 )   (3.5 )   -345.7 %

EBIT / Revenues

   -6.4 %   -2.3 %   -4.1 p.p.  

EDPC Operating data


   1H2005

    1H2004

    D%

 

EDPC Electricity sales (GWh)

   2,890     2,177     32.7 %

Market Share (GWh)

   65 %   69 %   -3.8 %

Number of Clients

   7,773     1,906     x 4.1  

Market Share (# of Clients)

   72 %   73 %   -1.5 %

Number of Employees

   78     67     16.4 %

Operating Investment (€ m)

   0.6     1.6     -61.0 %

 

LOGO

 

LOGO

 

  Total energy supplied in the NBES grew 40% YoY to 4,422 GWh in the 1H2005, now representing 20% of the total consumption in Portugal (15% in the 1H2004).

 

  The Portuguese liberalised market is at an early stage of development and thus the net selling price reflects the cost of capturing new clients. Consequently the more than four fold increase in the number of EDPC’s clients had a negative price effect of €9.3m in the gross profit of the company.

 

  EDPC has a fixed price contract (reviewed periodically) with EDPP’s energy management department which procures electricity (namely in the Spanish pool) on behalf of EDPC. This shielded EDPC’s gross profit from the hike in electricity prices and high fuel costs.

 

EBITDA - EDPP & EDPC (€ m)


   1H2005

    1H2004

    D%

 

Operating Revenues

   1,005.4     817.3     23.0 %

Electricity

   182.7     118.5     54.2 %

Fuel for electricity generation

   333.3     164.8     102.2 %

Materials and goods for resale

   2.1     1.3     64.7 %

Direct Activity Costs

   516.0     283.3     82.1 %

Gross Profit

   489.4     534.0     -8.3 %

Supplies and services

   43.1     34.3     25.4 %

Personnel costs

   43.7     50.3     -13.2 %

Costs with social benefits

   5.5     24.3     -77.3 %

Other operating costs (or revenues)

   (0.9 )   (2.2 )   57.9 %

EBITDA

   398.1     427.1     -6.8 %

EBITDA / Revenues

   39.6 %   52.3 %   -12.7 p.p.  

 

Note: In order to illustrate the effect of the elimination of the intra-group transactions between EDPC and EDPP, we present above the consolidated EBITDA of the two companies.

 

14


Table of Contents
Enernova & EDP Bioeléctrica    LOGO

 

Installed Capacity - MW


   1H2005

    1H2004

    D MW

 

Wind

   142     96     +46  

Biomass

   9     9     —    
    

 

 

Total

   151     105     +46  

Generation - GWh


   1H2005

    1H2004

    D%

 

Wind

   161     97     66.2 %

Biomass

   23     24     -2.7 %
    

 

 

Total

   184     121     52.6 %

Operating Income Statement (€ m)


   1H2005

    1H2004

    D%

 

Wind

   14.7     8.5     72.0 %

Biomass

   1.7     1.7     -1.4 %

Electricity Sales

   16.3     10.2     59.7 %

Direct Activity Costs

   1.4     1.1     27.4 %

Gross Profit

   15.0     9.2     63.5 %

Gross Profit/Revenues

   91.6 %   89.5 %   2.1 p.p.  

Supplies and services

   1.5     0.8     100.6 %

Personnel costs & costs with social benefits

   0.4     0.6     -20.7 %

Generation centre rentals

   0.4     0.2     84.7 %

Other operating costs (or revenues)

   0.4     (0.5 )   —    

Operating Costs

   2.8     1.0     181.3 %

EBITDA

   12.2     8.2     49.3 %

EBITDA / Revenues

   74.6 %   79.9 %   -5.2 p.p.  

Depreciation

   4.2     2.3     83.4 %

Compensation subsidised assets’ deprec.

   (0.1 )   (0.1 )   -8.7 %

EBIT

   8.1     6.0     35.6 %

EBIT / Revenues

   49.5 %   58.3 %   -8.8 p.p.  

Number of Employees


   1H2005

    1H2004

    D%

 

Number of Employees

   18     15     20.0 %

Investments (€ m)


   1H2005

    1H2004

    D%

 

Operating Investment

   10.5     31.4     -66.6 %

Financial Investments

   18.1     —       —    
    

 

 

Total Investments

   28.6     31.4     -8.9 %

 

LOGO

 

  Installed capacity increased 46MW, relatively to 1H2004, following the entry into service of two wind farms in 2004 – Vila Nova I (20 MW) in July 2004 and Serra do Açor (20 MW) in September 2004 – and the re-powering of Vila Nova I (6 MW), in April 2005.

 

  Following this increase in capacity, wind electricity generation increased 66%, attaining a total output of 161 GWh in the first 6M2005. Wind generation was also influenced by a higher number of wind hours in the 1H2005 versus 1H2004, resulting in an increase of the wind power load factor to 26.0% versus 24.6% in the same period last year.

 

  Gross Profit went up by 63.5%, following the increasing renewable generation while EBITDA increased by 49.3% to €12.2m despite the rise in operating costs (mainly Supplies and Services and Generation Centre Rentals) due to new capacity becoming operational.

 

  S&S increased essentially due to the maintenance costs generated by wind farms exiting the two years’ warranty period. In 1H2005, Enernova had 65 MW with more than two years, compared to 41 MW in 1H2004. Generation Centre Rentals is a variable charge, as a percentage of the energy sold, that each wind farm has to pay both to municipalities and to landowners, thus more capacity in operation and output implies an increase in this line item cost.

 

  Investments in the 1H2005 totalled €28.6m, the bulk of which was dedicated to new wind capacity. Out of the total amount, €18.1m relates to the financial investment made in EASA in the 1Q2005. Through this transaction Enernova acquired 2 wind farms with 53 MW in the pipeline, out of which 12 MW should start operating in September 2005 and a further 42 MW in June 2006. The completion of this transaction is conditional on a non-opposition decision by the Portuguese Competition Authority. Capital expenditure in the period amounted to €10.5m and relates mainly to the investments made in Vila Nova I and Serra do Açor wind farms and in the repowering of Vila Nova I. Additionally, Enernova is working on the repowering of Pena Suar (+6 MW - 4Q2005) and Fonte da Quelha / Alto do Talefe (+3 MW - 4Q2005) wind farms.

 

Load Factor: number of equivalent hours to the output of a wind farm relative to the total number of hours in the period, considering the date of entry into industrial service of each wind farm.

 

15


Table of Contents
EDP Distribuição    LOGO

 

Electricity Distributed (GWh)


   1H2005

    1H2004 (1)

    D%

 

Energy Delivered to Distribution

   23,634     22,128     6.8 %

Sales to EDP power plants

   (6 )   (7 )   16.2 %

Own consumption - distribution

   (16 )   (16 )   -1.1 %

Distribution losses

   (1,819 )   (1,704 )   -6.8 %
    

 

 

Total Electricity Sales(2)

   21,792     20,400     6.8 %
    

 

 

Electricity Sales - BES(3)

   17,370     17,251     0.7 %

VHV (Very high voltage)

   657     606     8.5 %

HV (High voltage)

   2,527     2,053     23.1 %

MV (Medium voltage)

   2,653     3,378     -21.5 %

SLV (Special low voltage)

   1,285     1,555     -17.4 %

LV (Low voltage)

   9,528     8,995     5.9 %

PL (Public lighting)

   720     664     8.5 %

Electricity Sales - NBES(4)

   4,422     3,149     40.4 %

EDP

   2,890     2,177     32.7 %

VHV (Very high voltage)

   24     —       —    

HV (High voltage)

   24     17     43.8 %

MV (Medium voltage)

   2,607     2,161     20.7 %

SLV (Special low voltage)

   235     —       —    

Non-EDP

   1,532     972     57.6 %

HV (High voltage)

   23     10     125.2 %

MV (Medium voltage)

   1,429     962     48.6 %

SLV (Special low voltage)

   80     —       —    

Electricity Consumers (5)


   1H2005

    1H2004

    D

 

Electricity Sales - BES(3)

   5,850,178     5,773,909     76,269  

VHV (Very high voltage)

   19     18     1  

HV (High voltage)

   155     142     13  

MV (Medium voltage)

   16,978     18,516     (1,538 )

SLV (Special low voltage)

   23,139     28,691     (5,552 )

LV (Low voltage)

   5,765,013     5,683,413     81,600  

PL (Public lighting)

   44,874     43,129     1,745  

Electricity Sales - NBES(4)

   10,840     2,602     8,238  

EDP

   7,773     1,906     5,867  

VHV (Very high voltage)

   1     —       1  

HV (High voltage)

   5     1     4  

MV (Medium voltage)

   2,919     1,905     1,014  

SLV (Special low voltage)

   4,848     —       4,848  

Non-EDP

   3,067     696     2,371  

HV (High voltage)

   3     1     2  

MV (Medium voltage)

   1,456     695     761  

SLV (Special low voltage)

   1,608     —       1,608  
    

 

 

Total Electricity Consumers(2)

   5,861,018     5,776,511     84,507  
    

 

 

% Change YoY

               1.5 %
                

 

LOGO

 

  In the 1H2005, electricity demand went up 6.8% year-on-year, to 21.8 TWh. Consumption was driven by a cold winter (1.4p.p.) and by the fact that co-generators opted to sell to the system all the energy they produced at special regime’s prices, then buying back the necessary energy from the system at lower tariffs. In addition, Portuguese electricity consumption growth reflects the 34% lower electricity consumption per capita vis-à-vis the European average.

 

  Full liberalisation of the electricity market occurred in August 2004 with the extension of the eligibility threshold to all LV customers. The applicable regulations were issued in January and July 2005, nevertheless, the ability of LV clients to choose their supplier still depends on the development of IT solutions.

 

  Electricity sales in the binding system increased by a mere 0.7% year-on-year, reflecting the transfer of some MV and SLV clients to the liberalised market. The increase in electricity sales from HV and VHV segments reflects an increase in the number of EDPD clients and the fact that in June 2004 one important industrial client (VHV) interrupted its activity.

(1) 1H2004 Energy Balance was adjusted in 15.5 Gwh to include sales from Energin and Soporgen under “sales to EDP Group for final consumption”
(2) Figures presented include sales to EDP Group for final consumption
(3) BES - Binding Electricity System
(4) NBES - Non-Binding Electricity System
(5) Figures presented include EDP Group companies

 

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Table of Contents
EDP Distribuição    LOGO

 

  EDPD’s allowed revenues decreased 2.7% year-on-year:

 

(a) The Use of the Distribution Grid (UDGr) revenues were up 1.8% as the higher electricity-flow at EDPD’s network more than offset the 4% average unit’s revenue reduction for this activity;

 

(b) Allowed revenues for the Network Supply (NS) and the Supply in the Public system (SPS) activities fell 20.0% following: (i) a reduction in their regulated rate of return from 9.0% to 8.5%; (ii) a 13.8% decrease of structural commercial costs; and (iii) a lower regulated asset base allocated to the NS activity, due to a re-allocation of investment subsidies from the UDGr activity to the NS activity in the last regulatory review (therefore with no impact on the total asset value of the 3 regulated activities);

 

(c) Allowed revenues for the 1H2005 also include an €18.9m recovery (through tariffs) of costs incurred within the scope of EDPD’s Human Resources Restructuring Program.

 

  Costs with electricity purchases rose 12.8% year-on-year mostly due to: (i) an increase in electricity distributed; (ii) a 44% average increase in the Global Use of the System tariff (GUS), following the 2005 tariff review mostly related to an

 

Electricity Sales & Gross Profit (€ m)


   1H2005

    1H2004

    D%

 

VHV (Very high voltage)

   29.4     25.0     17.3 %

HV (High voltage)

   128.4     96.4     33.2 %

MV (Medium voltage)

   218.8     251.6     -13.0 %

SLV (Special low voltage)

   126.9     152.1     -16.6 %

LV (Low voltage)

   1,219.6     1,221.0     -0.1 %

PL (Public lighting)

   50.4     55.2     -8.8 %

Interruptibility Discounts

   (17.1 )   (14.3 )   -19.5 %

Tariff correction Discounts

   0.0     (0.2 )   —    

Invoiced Sales - BES

   1,756.4     1,786.9     -1.7 %

Invoiced Sales - NBES

   99.6     58.3     71.0 %
    

 

 

Electricity Revenues

   1,856.0     1,845.1     0.6 %

Electricity Purchases

   1,278.8     1,133.4     12.8 %
    

 

 

Electricity Gross Profit

   577.1     711.8     -18.9 %
    

 

 

Tariff Difference to Recover/(Return) (€ m)


   1H2005

    1H2004

    D%

 

Total Allowed Revenues

   615.6     632.9     -2.7 %

Electricity Gross Profit

   577.1     711.8     -18.9 %
    

 

 

Tariff Difference to Recover/(Return)

   38.5     (78.8 )   —    
    

 

 

Regulated Revenues (€ m)


   1H2005

    1H2004

    D%

 

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

   8.3     9.5     -12.8 %

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

   21,871     20,547     6.4 %

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

   24.5     23.9     2.6 %

Electricity delivered to BES/NBES: LV (GWh)

   11,848     11,215     5.6 %
    

 

 

UDGr allowed revenues

   470.8     462.4     1.8 %

Average assets of the NS activity (net of amortisations)

   138.8     168.0     -17.4 %

Return on average assets of NS activity (%)

   8.5     9.0     -5.6 %

Assets’ amortisation of NS activity

   23.8     35.2     -32.3 %

Annual structural commercial costs of NS activity

   29.3     30.3     -3.4 %
    

 

 

Network Supply allowed revenues

   64.9     80.6     -19.5 %

Average assets of SPS activity (net of amortisations)

   24.5     23.6     3.9 %

Return on average assets of SPS activity (%)

   8.5     9.0     -5.6 %

Assets’ amortisation of SPS activity

   3.3     4.4     -25.8 %

Annual structural commercial costs of SPS activity

   33.8     42.8     -21.1 %
    

 

 

Supply in Public System allowed revenues

   39.1     49.3     -20.7 %

t-2 tariff adjustment for UDGr activity

   6.8     (3.6 )   —    

t-2 tariff adjustment for NS activity

   0.7     0.3     95.8 %

t-2 tariff adjustment for SPS activity

   0.7     0.2     —    
    

 

 

t-2 tariff adjust. for UDGr, SPS and NS

   8.1     (3.1 )   —    

t-2 tariff adjustment for Energy Acquisition Activity

   17.3     33.0     -47.7 %

t-1 tariff adjustment for Energy Acquisition Activity

   (3.5 )   10.6     —    
    

 

 

t-1 & t-2 tariff adjust. for Energy Aquisition activity

   13.8     43.7     -68.4 %

HR Restructuring Costs Recovery

   18.9     —       —    
    

 

 

Total Allowed Revenues

   615.6     632.9     -2.7 %
    

 

 

 

increase of Special Regime Generation, which was reflected in an additional €64.4m in costs (a pass-through to the tariff); and (iii) an €81.7m increase in fuel costs related to a swing from last year in quarterly adjustments - 1H2005 fuel costs’ adjustments totalled €73.5m of which €21.2m, related to HV/MV, were recovered through the tariffs in the 1H2005 and €52.3m, related to LV, will be passed through to tariffs in 2006.

 

  Electricity gross profit fell 18.9% year-on-year:

 

(a) Real consumption for the 1H2004 came above ERSE’s forecast for the period, reflected into a €78.8m negative tariff difference between allowed revenues and electricity gross profit;

 

(b) Electricity gross profit for the 1H2005 was €38.5m below allowed revenues for the period due to: (i) the above-mentioned €52.3m fuel costs adjustment (related to the LV segment), to be recovered next year; which was partly offset by (ii) the fact that real consumption for the binding system came 6.4% above ERSE’s forecast for the period, implying that EDPD has to return to the tariffs in two years time the fixed component of electricity purchases that the company received in excess through the tariffs.

 

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EDP Distribuição    LOGO

 

 

Operating Income Statement (€ m)


   1H2005

    1H2004

    D%

 

Electricity sales

   1,856.0     1,845.1     0.6 %

Services provided

   14.2     10.7     33.0 %

Other sales

   1.5     1.3     17.0 %

Operating Revenues

   1,871.8     1,857.1     0.8 %

Electricity Purchases

   1,278.8     1,133.4     12.8 %

Materials and goods for resale

   7.4     7.6     -2.3 %

Direct Activity Costs

   1,286.3     1,141.0     12.7 %

Gross Profit

   585.5     716.2     -18.2 %

Gross Profit/Revenues

   31.3 %   38.6 %   -7.3p.p.  

Supplies and services - Group

   52.8     48.9     8.0 %

Supplies and services - Non-group

   66.2     56.9     16.3 %

Personnel costs

   95.9     100.7     -4.8 %

Costs with social benefits

   9.7     108.8     -91.1 %

Concession fees

   100.9     92.7     8.8 %

Other operating costs (or revenues)

   (4.0 )   (4.5 )   9.8 %

Operating Costs

   321.4     403.5     -20.4 %

EBITDA

   264.1     312.6     -15.5 %

EBITDA / Revenues

   14.1 %   16.8 %   -2.7p.p.  

Depreciation and amortisation

   164.9     161.4     2.2 %

Comp. of subsidised assets’ amortis.

   (38.5 )   (36.9 )   -4.4 %

EBIT

   137.7     188.1     -26.8 %

EBIT / Revenues

   7.4 %   10.1 %   -2.8p.p.  

Number of Employees


   1H2005

    1H2004

    D

 

Number of Employees

   5,438     6,176     (738 )
    

 

 

GWh Distributed / Employee

   4.0     3.3     21.3 %
    

 

 

Equivalent Interruption Time (min.)


   1H2005

    1H2004

    D%

 

Equivalent Interruption Time (EIT)

   82     100     -17.6 %
    

 

 

Operating Investment


   1H2005

    1H2004

    D%

 

Distribution grid

   186.9     171.2     9.2 %

Other investments

   8.2     12.2     -33.3 %

Financial charges capitalised

   5.8     4.9     19.0 %
    

 

 

Operating Investment

   200.8     188.3     6.7 %

Investment subsidies - Cash

   41.1     39.1     5.1 %

Investment subsidies - Kinds

   27.2     31.1     -12.4 %
    

 

 

(-) Total Investment Subsidies

   68.3     70.1     -2.7 %
    

 

 

Operating Invest. Excl. Subsidies

   132.6     118.1     12.2 %
    

 

 

 

LOGO

 

  Group supplies & services went up 8.0% year-on-year due to: (i) a €5.2m increase in IT costs (due to improvement on timely invoicing in 1H2005); and (ii) higher management fees invoiced by EDP Valor (+€2.0m), which were partly offset by the 1H2005 accounting of commercial support services provided by Edinfor as “non-group” (-€4.2m from the 1H2004), following the sale of 60% of this company to LogicaCMG.

 

  Non-group supplies & services rose 16.3% reflecting: (i) a €3.2m increase in setup costs in the re-branding of EDPD’s commercial network; (ii) the 1H2005 accounting of supplies & services provided by Edinfor as “non-group” (€3.8m) and (iii) a €1.3m increase in maintenance costs due to the higher recourse to external services that followed the reduction of the number of employees.

 

  Personnel costs decreased 4.8% year-on-year explained by: (i) a 12% decrease in the number of employees, which reflected in a 4.2% decrease in salaries with active workers (following a 2.9% avg. salary increase in 2005); and (ii) lower costs with severance payments (-€4.9m from €6.6m in the 1H2004).

 

  Costs with social benefits fell 91.1% year-on-year due to: (i) a €44.3m cost (NPV) related to the Human Resources Restructuring Program accounted in the 1H2004; (ii) €8.2m of incentives mostly related to the anticipated retirement programmes booked in the 1H2004; (iii) a €17.9m increase in pension premiums in the 1H2004 to account for the insufficiency identified by the 2004 actuarial study; and (iv) a €22.3m decrease in pension premiums in the 1H2005 to account for the surplus identified by the 2005 actuarial study. In both 1H2005 and 1H2004, costs with salaries paid to early retirees were offset through the use of a provision created for this purpose at EDPD’s accounts.

 

  Operating Investment in the distribution grid increased 9.2% year-on-year, which along with favourable weather conditions allowed for a 17.6% improvement of Equivalent Interruption Time.

 

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Table of Contents
Hidrocantábrico - Generation & Supply    LOGO

 

 

Spain Energy Balance (GWh)


   1H2005

    1H2004

    D%

 

Hydro

   11,270     18,218     -38.1 %

Nuclear

   27,185     31,933     -14.9 %

Thermal (classic)

   43,879     39,115     12.2 %

CCGT

   22,102     12,185     81.4 %

(-) Consumptions in generation and pumping

   (7,681 )   (6,273 )   -22.4 %
    

 

 

Conventionl Generation

   96,754     95,178     1.7 %
    

 

 

Special Regime Generation

   26,851     23,417     14.7 %

Imports / (Exports)

   1,007     (2,098 )   —    
    

 

 

Gross Demand

   124,612     116,497     7.0 %
    

 

 

Source: REE

 

LOGO

 

HC’s Net Electricity Generation(GWh)


   1H2005

    1H2004

    D%

 

Hydroelectric

   557     544     2.4 %

Nuclear

   575     568     1.3 %
    

 

 

Aboño

   3,223     3,432     -6.1 %

Soto de Ribera

   2,120     1,620     30.9 %

Coal

   5,343     5,052     5.8 %
    

 

 

Castejón CCGT

   1,093     905     20.8 %
    

 

 

Total Generation

   7,568     7,068     7.1 %

Pumping

   (82 )   (32 )   —    

Energy delivered to the Pool

   7,486     7,036     6.4 %
    

 

 

HC’s market share in wholesale market

   7.4 %   7.4 %   —    
    

 

 

HC Generation - Selling Price & Fuel Costs


   1H2005

    1H2004

    D%

 

Avg. HC Selling Price to the Pool (€/MWh) (1)

   55.4     30.5     81.5 %

Avg. HC Fuel Cost (€/MWh) (2)

   22.3     19.7     13.1 %

HC Supply - Electricity Sales to Clients


   1H2005

    1H2004

    D%

 

Electricity Supplied (GWh)

   2,420     2,157     12.2 %

Sales of Electricity Supplied (€ m)

   130.8     122.5     6.7 %

Number of Clients

   7,078     5,628     25.8 %

HC Gross Profit (Generation + Supply)


   1H2005

    1H2004

    D%

 

Revenues

   569.8     365.9     55.7 %

Direct Activity Costs

   360.8     232.8     55.0 %
    

 

 

Gross Profit

   209.0     133.1     57.0 %
    

 

 

 

  Demand in the Spanish electricity market continued to show strong growth in the period, increasing 7.0% versus the 1H2004, or 4.1% when corrected for temperature effects and working days. HC’s generation was up 7.1% following: i) an overall increase in thermal output in a very dry period (hydro coefficient of 0.45 vs. 0.82 in the 1H2004); ii) a lower utilisation of Aboño II (536 MW) due to repair works; and iii) a programmed stoppage in Soto II (236 MW) due to triennial maintenance works.

 

  Gross profit of the Generation and Supply activities increased 57.0% vis-à-vis 1H2004 as a result of i) the strong increase in electricity wholesale prices with a €188m positive impact on gross profit; ii) a marginal increase in average fuel cost per MWh (negative impact of €19m); iii) a €8.5m provision related to the consumption in excess of CO2 emission allowances following the very dry period; iv) the increase in the supply purchase price as a result of the hike in pool prices (-€69m in gross profit); and v) the fact that in the 1H2004 HC was able to recover €14.6m worth of CTCs.

 

  The Spanish pool price is still at high levels, €57.2/MWh in the 1H2005 vs. €31.6/MWh in the 1H2004, following a very dry period, higher fuel costs and a strong increase in peak demand. However, the revenues from the regulated electricity tariff were not enough to cover the strong increase in the system’s generation costs, therefore causing a tariff deficit for the system. According to Spanish law HC has to finance 6.08% of the tariff deviation (€88.9m estimated for the 1H2005). Following the same accounting procedure applied in the 1Q2005, this was not deducted from revenues and was accounted as an asset due to the high likelihood of its recovery.

 

  Average fuel costs increased 13.1% versus the 1H2004 mainly due to higher natural gas costs since the 2H2004, on the back of higher oil prices. Notwithstanding, HC continues to be able to reduce the average variable costs of its coal power plants by 2.5% and 6.2% vis-à-vis 1Q2005 and 4Q2004, respectively.

 

  CO2 emissions at HC’s thermal power plants reached 6m tons in the 1H2005. Due to the very dry period, which resulted in higher utilisation of thermal power plants, CO2 emissions were 0.3m tons above the estimated emission allowances to be consumed in the period. For this purpose HC booked a €8.5m provision as a direct activity cost. For the period 2005-2007 HC has 34.7m tones of CO2 allowances.

(1) Includes wholesale market, ancillary services and capacity payment.
(2) Excluding hydroelectric emission to calculate the average.
(3) Load Factor: number of equivalent hours to the output of a power plant relative to the total number of hours in the period.

 

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Table of Contents
Hidrocantábrico - Electricity Distribution & Gas Activity    LOGO

 

Elect. Distribution (GWh)


   1H2005

     1H2004

     D%

 

Low Voltage

   1,224      1,154      6.1 %

Medium Voltage

   546      515      6.0 %

High Voltage

   2,902      2,863      1.4 %
    
    
    

Electricity Distributed

   4,672      4,532      3.1 %

of which: access clients

   760      693      9.7 %

Elect. Distribution (€ m)


   1H2005

     1H2004

     D%

 

Transmission

   3.8      3.8      -0.0 %

Distribution

   48.0      46.9      2.4 %

Commercialisation

   3.7      3.6      3.1 %
    
    
    

Elect. Regulated Revenues

   55.6      54.3      2.3 %
    
    
    

 

LOGO

 

Regulated revenues from Electricity Distribution rose 2.3% following the increase in the remuneration for the regulated activities recognised in the 2005 tariff. According to the Decree Law that sets the revenues for the Spanish regulated electricity activities for 2005, of the €2,942.7m attributed to the electricity distribution activity, €93.7m or 3.2% were allocated to Hidrocantábrico.

 

Gas Distribution (GWh) (1)


   1H2005

     1H2004

     D%

 

Gas Distributed to direct clients

   4,463      4,095      9.0 %

Gas Distributed to access clients

   7,538      7,544      -0.1 %
    
    
    

Total Gas Distributed

   12,002      11,639      3.1 %
    
    
    

Gas Supply (GWh)


   1H2005

     1H2004

     D%

 

Gas Supplied

   5,427      4,255      27.5 %
    
    
    

Gas Distribution (€ m) (1)


   1H2005

     1H2004

     D%

 

Transmission

   5.9      5.4      8.7 %

Distribution

   54.5      48.1      13.3 %

Commercialisation

   7.1      7.1      -0.2 %
    
    
    

Gas Regulated Revenues

   67.5      60.6      11.3 %
    
    
    

Gas Supply (€ m)


   1H2005

     1H2004

     D%

 

Gas Sales

   77.1      54.2      42.2 %
    
    
    

 

LOGO

 

Gas Consumption in the Spanish system was up 20% in the 1H2005 mainly due to higher demand of the electricity sector, which accounted for 75% of this increase, following the higher electricity generation based on CCGT technology during this dry period. Excluding the electricity sector, the conventional demand for gas increased 6% in the period following the cold winter and the increase in the number of clients, particularly in the liberalised segment.

 

Gas Distributed by Hidrocantábrico went up 3.1% and the number of consumers increased 7.4% (+41,292 consumers versus the 1H2004). The slowdown in growth rates in the 2Q2005 is related to seasonality of demand. According to the “Ministerial Order” that sets the revenues for the Spanish regulated gas activities for 2005, of the €1,179.7m attributed to the gas distribution activity, €120.8m or 10% were allocated to Naturcorp and its subsidiaries (€108.9m considering the consolidation method of its subsidiaries). This represents a 12% increase versus 2004’s regulated revenues for the gas distribution activity reflecting the estimated demand and the increase in number of consumers for 2005.

 

Gas Supplied to liberalised clients rose 27.5% driven by the strong increase (more than 3 fold vs. 1H2004) in the number of clients, which is the result of an efficient promotion of a dual-fuel offer (power+gas) launched in the 2Q2005. This strategy is allowing HC to secure clients that are switching from its regulated market to the non-regulated market. Hidrocantábrico increased its market share in the liberalised market (excluding supply to the electricity sector) from 4% in the 1H2004 to 5% in the 1H2005.

 

Hidrocantábrico’s sales in both the regulated and liberalised gas market to final consumers amounted to 9,890 GWh, up 18% in volume versus 1H2004. Consequently, Hidrocantábrico’s retail market share increased to 7% in the 1H2005 from 6% in the 1H2004 (excluding the electricity sector).


(1) Operating data considers 100% of Naturcorp’s gas distribution subsidiaries’ figures, while all financial data considers the consolidation method.

 

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Table of Contents
Hidrocantábrico    LOGO

 

Business Areas

Breakdown


  Generation & Supply

    Electricity Distribution

    Gas

    Special Regime

 
  1H2005

    1H2004

    D%

    1H2005

    1H2004

    D%

    1H2005

    1H2004

    D%

    1H2005

    1H2004

    D%

 

Revenues

  569.8     365.9     55.7 %   313.3     205.9     52.2 %   372.4     339.0     9.8 %   56.7     26.0     118.1 %

Direct Costs

  360.8     232.8     55.0 %   254.2     147.8     72.0 %   289.7     260.9     11.1 %   26.6     6.3     320.0 %

Gross Profit

  209.0     133.1     57.0 %   59.1     58.1     1.8 %   82.7     78.2     5.8 %   30.1     19.6     53.0 %

Gross Profit/Revenues

  36.7 %   36.4 %   0.3 p.p.     18.9 %   28.2 %   -9.4 p.p.     22.2 %   23.1 %   -0.8 p.p.     53.0 %   75.6 %   -23 p.p.  

Personnel Costs

  19.4     19.9     -2.1 %   11.5     10.3     11.5 %   9.4     7.9     19.7 %   4.1     3.3     22.5 %

Other (net)

  37.1     16.2     129.5 %   21.2     9.2     129.3 %   17.4     11.6     49.6 %   4.7     5.2     -10.1 %

Operating Costs

  56.6     36.0     57.0 %   32.6     19.5     67.2 %   26.8     19.5     37.5 %   8.8     8.5     2.6 %

EBITDA

  152.4     97.1     57.0 %   26.5     38.6     -31.3 %   55.9     58.7     -4.7 %   21.3     11.1     91.7 %

EBITDA/Revenues

  26.8 %   26.5 %   0.2 p.p.     8.5 %   18.8 %   -10.3 p.p.     15.0 %   17.3 %   -2.3 p.p.     37.6 %   42.8 %   -5.2 p.p.  

Depreciation

  47.8     47.2     1.2 %   15.7     15.0     4.3 %   16.0     15.1     6.3 %   12.3     5.1     143.5 %

Comp. of subsidised assets’ dep.

  (0.1 )   (0.1 )   0.0 %   (0.9 )   (0.8 )   -17.4 %   (0.8 )   (0.6 )   -33.0 %   (0.1 )   (0.1 )   -10.9 %

EBIT

  104.7     50.0     109.6 %   11.8     24.4     -51.6 %   40.7     44.2     -8.0 %   9.1     6.2     48.0 %

EBIT/Revenues

  18.4 %   13.7 %   4.7 p.p.     3.8 %   11.8 %   -8.1 p.p.     10.9 %   13.0 %   -2.1 p.p.     16.1 %   23.7 %   -7.6 p.p.  
   

 

 

 

 

 

 

 

 

 

 

 

Capex

  12.9     10.7     21.0 %   19.0     15.8     20.3 %   14.9     24.1     -38.3 %   70.5     81.4     -13.3 %

# of employees

  579     619     -6.5 %   366     351     4.3 %   302     280     7.9 %   135     96     40.6 %

 

LOGO

 

Generation & Supply: The EBITDA of the electricity generation and supply activities increased 57.0% following the strong increase in gross margin. Operating costs were influenced by i) costs previously booked at the holding level that now are allocated to each of the activities (€8.5m in Generation and Supply); and ii) a €11.6 provision to cover potential margin losses in the supply activity, given the current high wholesale prices versus HC’s contracts at fixed prices with liberalised clients, which will only be renewed during 2006.

 

Electricity Distribution: The increase in regulated revenues, recognised in the 2005 tariff, attributable to Hidrocantábrico, contributed to the 1.8% growth of this activity’s gross margin. Operating costs were influenced by i) costs at the holding level that were allocated to this activity (€6.9m in the 1H2005); and ii) higher intra-group costs associated with commercial services rendered by the Supply to the Distribution activity, which started to be provided during 2004 (this impact is eliminated in consolidation).

 

Gas: This activity’s P&L reflects mainly the performance of the Naturcorp Group (56.2% held by Hidrocantábrico). Naturcorp’s activities comprise: i) the distribution of gas in the regulated market; ii) the supply of gas to regulated and non-regulated consumers; iii) the management of its 1.1bcm sourcing contract with Trinidad & Tobago; and iv) the commercialisation of electricity to liberalised clients in the Basque Country in order to leverage on its strong presence in that region to promote a dual-fuel offer. In the 1H2005, gross profit increased 5.8% following an 11% increase in regulated revenues and a drop in the margin of the supply activity as a result of the increase in the cost of gas given the high oil prices. It is important to note that the bulk of Naturcorp’s EBITDA (90%) comes from the regulated distribution activity, thus providing stable operating cash-flows. During the 1H2005, Naturcorp changed its commercial image and launched a marketing campaign to promote its dual-fuel offer to liberalised clients, which had an impact on operating costs and EBITDA.

 

Special Regime: Net output went up 138% to 537 GWh following the capacity increase from 161 MW in the 1H2004 to 346 MW in the 1H2005 (+124 MW in wind, +39 MW in waste and +18 MW in cogeneration). Wind farms reached 223 MW of installed capacity and their output increased from 107 GWh in the 1H2004 to 240 GWh in the 1H2005. Gross profit increased from €11.3m in the 1H2004 to €30.8m in the 1H2005 (the difference with the reported figures presented in the table above comes from the exclusion of construction and engineering activities). During 2005 the following wind farms should start operations: Las Lomillas (50MW – 50% held by Genesa) (July); La Sotonera (19MW) (July); La Brújula (74 MW) (September); and El Boquerón (22 MW) (December).


* Includes €32m capital gain on the sale of the 3% stake in REE.

 

21


Table of Contents
Hidrocantábrico    LOGO

 

Income Statement (€ m)


   1H2005

    1H2004

    D%

 

Revenues

   1,224.5     879.5     39.2 %

Direct Costs

   838.1     582.8     43.8 %

Gross Profit

   386.4     296.7     30.2 %

Gross Profit/Revenues

   31.6 %   33.7 %   -2.2 p.p.  

Supplies and services

   52.6     43.1     22.0 %

Personnel costs & Social benefits

   58.8     49.0     20.0 %

Other operating costs (or revenues)

   (9.2 )   11.2     —    

Operating Costs

   102.2     103.3     -1.1 %

EBITDA

   284.2     193.4     47.0 %

EBITDA/Revenues

   23.2 %   22.0 %   1.2 p.p.  

Depreciation

   92.8     84.3     10.2 %

Compensation of subsidised assets’ depr.

   (2.0 )   (1.6 )   -22.2 %

EBIT

   193.3     110.7     74.6 %

EBIT/Revenues

   15.8 %   12.6 %   3.2 p.p.  

Financial income/(expense)

   (32.0 )   (38.5 )   16.8 %

Income Before Taxes

   161.3     72.2     123.3 %

Income Taxes

   51.3     26.9     90.7 %

Minorities interests

   8.7     8.8     -1.4 %
    

 

 

Net Profit

   101.3     36.5     177.6 %
    

 

 

Capex (€ m)


   1H2005

    1H2004

    D%

 

Recurring investment

   51.1     59.0     -13.4 %

Non-recurring investment

   68.8     74.7     -7.8 %
    

 

 

(-) Subsidies

   (10.7 )   (7.5 )   -42.5 %
    

 

 

Capex

   109.2     126.1     -13.4 %
    

 

 

Number of employees


   1H2005

    1H2004

    D

 

Number of employees

   1,621     1,569     +52  

 

LOGO

 

Consolidated EBITDA in the 1H2005 increased 47% following:

 

i) the strong increase in gross margin with an 85% contribution from the generation and supply activities while the special regime activity contributed 12%, the gas activity 5% and the distribution activity 1%;

 

ii) the increase in supplies and services due to the marketing campaign at Naturcorp to promote a dual-fuel offer and a new commercial image (€2m), and also due to the increase in installed capacity in the special regime activity (€6.3m);

 

iii) the increase in personnel costs due to the creation of a provision for personnel restructuring costs (€4.2m), salary increases for 2005 and a higher number of employees (€3.3m);

 

iv) a €11.6 provision to cover potential margin losses in the supply activity, given the current high wholesale prices versus HC’s contracts at fixed prices with liberalised clients, which will only be renewed during 2006 (included in other operating costs or revenues);

 

v) a €31.9m capital gain from the sale of HC’s 3% stake in REE for €76m (included in other operating costs or revenues).

 

  Financial results improved 16.8% mainly due to the 19% reduction in net interest payable to €32.2m, following the replacement of HC’s external debt with cheaper inter-company loans from EDP (€1,300m as of June 2005).

 

  Net Profit increased almost three fold vis-à-vis 1H2004, reaching €101.3m, following the strong operating performance and the capital gain on the sale of REE.

 

22


Table of Contents
Brazil    LOGO

 

Energy Sales & Gross Profit


   Bandeirante

    Escelsa

    Enersul

 
   1H2005

    1H2004

    D%

    1H2005

    1H2004

    D%

    1H2005

    1H2004

    D%

 

Distribution (GWh)

                                                      

Electricity delivered to distribution

   6,810     6,623     2.8 %   4,375     4,049     8.0 %   2,026     1,795     12.9 %

Distribution losses

   (696 )   (584 )   19.1 %   (600 )   (494 )   21.4 %   (427 )   (277 )   54.0 %

Residential customers

   1,141     1,211     -5.8 %   662     619     7.0 %   483     461     4.7 %

Industrial customers

   1,847     2,228     -17.1 %   1,114     1,222     -8.8 %   241     290     -17.1 %

Commercial customers

   663     633     4.8 %   428     397     7.7 %   313     291     7.5 %

Other customers

   418     499     -16.2 %   434     414     4.8 %   380     385     -1.2 %

Distribution companies

   —       —       —       145     148     -2.0 %   2     9     -81.0 %

Electricity sales

   4,069     4,570     -11.0 %   2,782     2,800     -0.6 %   1,419     1,437     -1.2 %

Third-party access

   2,045     1,469     39.2 %   993     755     31.4 %   180     81     121.6 %
    

 

 

 

 

 

 

 

 

Total Electricity Distributed

   6,114     6,039     1.2 %   3,775     3,555     6.2 %   1,599     1,518     5.3 %
    

 

 

 

 

 

 

 

 

Gross Profit (R$ m)

                                                      

Residential customers

   376.4     357.9     5.2 %   184.1     171.5     7.3 %   161.8     132.6     22.1 %

Industrial customers

   354.7     357.2     -0.7 %   160.9     158.8     1.3 %   52.5     53.4     -1.5 %

Commercial customers

   186.0     164.9     12.8 %   111.2     98.4     13.0 %   102.2     81.5     25.3 %

Other customers

   89.3     91.1     -1.9 %   77.4     72.1     7.3 %   85.1     69.6     22.4 %

Distribution companies

   —       —       —       14.8     13.8     7.2 %   0.2     1.6     -90.5 %

Electricity sales (1)

   1,006.5     971.0     3.7 %   548.4     514.5     6.6 %   401.8     338.7     18.6 %

Third-party access revenues

   105.0     50.5     108.0 %   58.7     33.2     76.7 %   14.9     3.4     336.2 %

Electricity revenues

   1,111.4     1,021.5     8.8 %   607.0     547.7     10.8 %   416.8     342.1     21.8 %

Other Revenues

   (60.4 )   (68.7 )   12.1 %   15.8     (13.7 )   —       (19.3 )   (19.6 )   1.6 %
    

 

 

 

 

 

 

 

 

Total Revenues

   1,051.0     952.7     10.3 %   622.9     534.1     16.6 %   397.5     322.6     23.2 %

(-) Direct activity costs

   669.6     667.8     0.3 %   397.0     346.1     14.7 %   203.9     184.3     10.6 %
    

 

 

 

 

 

 

 

 

Gross Profit

   381.4     285.0     33.9 %   225.9     188.0     20.2 %   193.6     138.2     40.1 %
    

 

 

 

 

 

 

 

 

Average Tariff to customers (R$/MWh)

   247.3     212.5     16.4 %   197.1     183.8     7.2 %   283.2     235.8     20.1 %

 

LOGO

 

  Total electricity distributed by Energias do Brasil increased 3.4%. Consumption in Escelsa and Enersul’s concession areas increased 6.2% and 5.3%, respectively, following stronger economic growth in those regions, high temperatures in the summer and an increase in the number of clients. At Bandeirante, the consumption increased 1.2% following a reduction in the residencial segment, which was offset by the increase in the industrial (captive + free clients) and commercial segments as a result of the stronger economic growth in the São Paulo region.

 

  Bandeirante’s gross profit increased 33.9% following the average 15.95% tariff increase granted in the October 2004 tariff adjustment and electricity purchase costs below the amount recognised in the October tariff adjustment (R$31m difference). This is mainly explained by i) the purchase of the energy in the electricity auctions at lower prices; and ii) the positive effect of the appreciation of the real against the dollar (22% since October 2004) in the electricity purchases to Itaipú power plant. Non-controllable costs are a pass-through computed in the annual tariff adjustments, and differences in costs between those agreed in the tariff adjustments and the real figures are recovered or given back in the following tariff adjustment.

 

  Escelsa’s gross profit increased 20.2% following the 6.2% consumption growth and the 4.96% tariff increase granted in the August 2004 revision. In addition, Escelsa also benefited from lower electricity purchase costs than those recognised in the August 2004 tariff revision (R$19m difference), mainly explained by lower prices at electricity auctions and the effect of the appreciation of the Real (25% since August 2004) in the electricity purchases to Itaipú power plant.

 

  Enersul’s gross profit increased 40.1% benefiting from a 5.3% consumption growth and the 20.69% average tariff increase granted in April 2005 tariff adjustment. This adjustment includes a 2.46% item related to the positive correction on the tariff increase granted in the April 2003 revision, from 42.26% to 50.81%, to take into account the final Regulatory Asset Base, depreciation rate and accepted costs, for the period from April 2003 to April 2008. The retroactive effects of this adjustment, from April 2003 to April 2005, amounts to R$75m and will be gradually recovered until April 2008.

 


(1) Includes invoices from the extraordinary tariff granted by ANNEL to recover the 2001/2002 rationing losses and recovery of non-controlable costs (“Parcela A”) prior to Oct. 2001; Values deducted of VAT.

 

23


Table of Contents
Brazil    LOGO

 

P&L

R$ million


   Bandeirante

    Escelsa

    Enersul

    Generation & Trading

 
   1H2005

    1H2004

    D%

    1H2005

    1H2004

    D%

    1H2005

    1H2004

    D%

    1H2005

    1H2004

    D%

 

Revenues

   1,051.0     952.7     10.3 %   622.9     534.1     16.6 %   397.5     322.6     23.2 %   234.4     182.9     28.2 %

Direct Activity Costs

   669.6     667.8     0.3 %   397.0     346.1     14.7 %   203.9     184.3     10.6 %   135.1     113.3     19.2 %

Gross Profit

   381.4     285.0     33.9 %   225.9     188.0     20.2 %   193.6     138.2     40.1 %   99.3     69.6     42.8 %

Gross Profit/Revenues

   36.3 %   29.9 %   6.4 p.p.     36.3 %   35.2 %   1.1 p.p.     48.7 %   42.8 %   5.8 p.p.     42.4 %   38.0 %   4 p.p.  

Supplies and services

   57.9     49.0     18.1 %   34.8     26.1     33.1 %   27.1     18.9     43.5 %   21.0     24.2     -13.1 %

Personnel costs & Social benefits

   49.8     48.4     3.0 %   38.4     37.1     3.6 %   30.9     29.7     3.9 %   1.9     2.8     -31.7 %

Other operating costs (revenues)

   33.3     23.7     40.2 %   20.9     16.9     23.6 %   14.2     15.0     -5.5 %   2.8     0.6     391.7 %

Operating Costs

   141.0     121.1     16.4 %   94.1     80.1     17.4 %   72.2     63.6     13.5 %   25.7     27.5     -6.6 %

EBITDA

   240.4     163.9     46.7 %   131.8     107.9     22.2 %   121.4     74.6     62.7 %   73.6     42.0     75.2 %

EBITDA/Revenues

   22.9 %   17.2 %   5.7 p.p.     21.2 %   20.2 %   1.0 p.p.     30.5 %   23.1 %   7.4 p.p.     31.4 %   23.0 %   8.4 p.p.  

Depreciation

   39.9     36.3     9.9 %   31.2     27.5     13.7 %   26.7     24.4     9.6 %   4.2     8.3     -49.3 %

EBIT

   200.6     127.6     57.2 %   100.6     80.4     25.1 %   94.7     50.3     88.4 %   69.4     33.7     105.7 %

Other Indicatores:

                                                                        

Capex

   46.6     47.2     -1.2 %   75.8     27.6     174.0 %   77.4     29.7     160.2 %   311.7     325.2     -4.2 %

Financial Debt (Non-Group + Group)

   719.1     833.7     -13.7 %   1,393.0     1,802.0     -22.7 %   557.4     586.8     -5.0 %   813.5     546.8     48.8 %

# employees

   1,219     1,211     0.7 %   1,219     1,294     -5.8 %   902     925     -2.5 %   238     218     9.2 %

 

LOGO

 

  Bandeirante’s EBITDA increased 46.7% in the 1H2005 thanks to the performance at the gross profit level and despite the R$19.9m increase in operating costs related to improvements in the service provided to clients. During 2004 Bandeirante implemented an integrated modernisation program which impacted software fees and supplies and services after the 1Q2004. This includes the “Customer Care & Service” system to improve client management and the implementation of a technical information system (beginning of 2005). Nevertheless, operating costs as a percentage of the gross profit decreased from 42.5% in the 1H2004 to 37.0% in the 1H2005.

 

  Escelsa’s EBITDA increased 22.2% in the 1H2005, following the gross profit’s strong growth. At the operating costs level, the 17.4% increase is mainly related to higher services costs due to the outsourcing of network maintenance teams and increased costs related to meter readings, electricity re-connections and billing, as a result of the growing activity. Operating costs as a percentage of the gross profit decreased from 42.6% in the 1H2004 to 41.7% in the 1H2005. The increase in capex is mainly related to the mandatory universal connection programme – “Universalização” – to all low voltage consumers (R$27.6m in the 1H2005).

 

  At Enersul, the 40.1% increase of the gross profit was the main contributor to the 62.7% rise in EBITDA. The company incurred in higher costs with the mailing of invoices following: i) a court decision in the 2Q2004 that all invoices have to be sent by post; and ii) a 4% increase in the number of clients. Additionally, Enersul incurred in higher costs with maintenance services, IT services and commercial services associated with the network enlargement. Operating costs as a percentage of the gross margin decreased from 46.0% in the 1H2004 to 37.3% in the 1H2005. The increase in capex is mainly related to the mandatory universal connection programme – “Universalização” – to all low voltage consumers (R$36.2m in the 1H2005).

 

  Generation & Trading activities’ EBITDA increased 75.2% as a result of the strong top-line performance. EDP’s right on the Lajeado hydro power plant’s output amounted to 759 GWh and electricity sales increased 14.7% from R$41.2m to R$47.2m following the tariff increase, which is linked to inflation (IGMP). Regarding the trading and supply activity, Enertrade increased its electricity supply by 36% from 2,336 GWh in the 1H2004 to 3,179 GWh in the 1H2005. Following the increase in volumes sold and a decrease in the unit cost of electricity purchases, the electricity gross profit of this activity increased from R$21.5m in the 1H2004 to $R44.1m in the 1H2005. Capex in the construction of the Peixe Angical hydro power plant amounted to R$307.8m in the period. In 2005, R$540m should be invested in the project plus a further R$186m in 2006, when it should start operating.

 

24


Table of Contents
Brazil    LOGO

 

Income Statement


   R$ million

    € million

 
   1H2005

    1H2004

    D%

    1H2005

    1H2004

    D%

 

Revenues

   2,185.6     1,906.1     14.7 %   665.7     524.1     27.0 %

Direct Activity Costs

   1,284.9     1,225.3     4.9 %   391.4     336.9     16.2 %

Gross Profit

   900.7     680.8     32.3 %   274.4     187.2     46.6 %

Gross Profit/Revenues

   41.2 %   35.7 %   5.5p.p.     41.2 %   35.7 %   5.5p.p.  

Supplies and services

   160.5     125.2     28.2 %   48.9     34.4     42.0 %

Personnel costs & Social benefits

   132.8     126.5     5.0 %   40.5     34.8     16.3 %

Other operating costs (or revenues)

   72.8     56.5     28.8 %   22.2     15.5     42.7 %

Operating Costs

   366.1     308.2     18.8 %   111.5     84.8     31.6 %

EBITDA

   534.6     372.6     43.5 %   162.8     102.4     58.9 %

EBITDA/Revenues

   24.5 %   19.5 %   4.9p.p.     24.5 %   19.5 %   4.9p.p.  

Depreciation

   102.1     96.7     5.5 %   31.1     26.6     16.9 %

EBIT

   432.5     275.8     56.8 %   131.7     75.8     73.7 %

EBIT/Revenues

   19.8 %   14.5 %   5.3p.p.     19.8 %   14.5 %   5.3p.p.  

Financial Results

   (60.0 )   (272.5 )   78.0 %   (18.3 )   (74.9 )   75.6 %

Income Before Taxes

   372.4     3.3     —       113.4     0.9     —    

Income taxes

   162.7     24.1     —       49.6     6.6     —    

Minority Interests

   0.2     (30.2 )   —       0.1     (8.3 )   —    
    

 

 

 

 

 

Net Profit

   209.5     9.4     —       63.8     2.6     —    
    

 

 

 

 

 

 

LOGO

 

  EBITDA of EDP’s activities in Brazil increased 43.5% following higher electricity sales and higher tariffs. The distribution activity contributed with 86% to the gross profit increase, while the generation and trading represented 14%.

 

  The 18.8% increase in operating costs in the period is mainly explained by higher costs associated with: i) improvements in the service provided to distribution clients; ii) maintenance services and more electricity cuts in the case of unpaid bills and the subsequent re-connections; and iii) higher costs related to the increased activity. The increase in personnel costs was lower than inflation, benefiting from a reduction in the number of employees (-73 vis-à-vis 1H2004), mainly in the distribution activity

 

  Financial results improved R$212.5m in the 1H2005, mainly due to the positive effect of the appreciation of the Real against the US Dollar (+13% in 2005) on the dollar denominated debt. Net foreign exchange differences improved from -R$115.2m in the 1H2004 to +R$183.4m in the 1H2005. Dollar denominated debt mainly comprises the US$431m of Escelsa Senior Notes and Bandeirante’s US$100m funding obtained from the Interamerican Development Bank (IDB). The hedge of Bandeirante’s debt with the IDB partly offset the strong forex gains in the period with a loss of R$52.6m. Regarding Escelsa, it is important to note that at June 2005 EDP held 83% of the Senior Notes.

 

  Following the corporate reorganisation implemented in April 2005, with the roll-up of the minority shareholders of the distribution subsidiaries, EDP reduced its stake in Energias do Brasil to 69%. In July 2005, shares of Energias do Brasil were admitted to the Novo Mercado of the Bovespa following an Initial Public Offering, which along with the convertion of R$670m of Escelsa Senior Notes held by EDP into Energias do Brasil sharecapital, resulted in a further decrease of EDP’s stake to 66%.

 

  Net Profit in local currency amounted to R$209.5m. The 1H2005 figure is not directly comparable, since most of the minority interests are now reflected at the EDP level, following the roll-up of the minorities of the distribution subsidiaries. 2004’s comparable Net Profit amounts to -R$20.8m. In Euro terms, EDP benefited from the appreciation of the Real, which in the 1H2005 the average BRL/Euro rate was 3.23 versus 3.65 in the 1H2004.

 

25


Table of Contents
Telecoms    LOGO

 

Operating Income Statement (€ m)


   1H2005

 
   ONI
Telecom


    Comunitel

    ONI
Group


 

Voice

   33.4     70.4     101.8  

Voice Value Added Services

   —       0.7     0.7  

Data & Internet

   31.8     13.0     41.8  

Other

   10.9     1.7     14.3  

Telecommunication services

   76.1     85.8     158.6  

Equipment sales

   1.1     0.5     3.8  

Operating Revenues

   77.2     86.3     162.5  

Telecommunication services

   35.9     44.7     78.2  

Equipment sales

   0.9     0.4     3.4  

Direct Activity Costs

   36.8     45.0     81.5  

Gross Profit

   40.4     41.2     80.9  

Gross Profit/Revenues

   52.3 %   47.8 %   49.8 %

Supplies and services

   25.5     23.1     46.2  

Personnel costs & costs with social benefits

   13.3     10.7     26.4  

Other operating costs/(revenues)

   0.6     1.8     (2.8 )

Operating Costs

   39.3     35.7     69.7  

EBITDA

   1.1     5.5     11.2  

EBITDA/Revenues

   1.4 %   6.4 %   6.9 %

Depreciation and amortisation

   19.7     8.3     27.1  

EBIT

   (18.7 )   (2.8 )   (15.9 )

EBIT/Revenues

   -24.2 %   -3.2 %   -9.8 %

Number of Employees


   1H2005

    1H2004

    D

 

ONI Telecom

   504     546     -42  

Comunitel

   423     526     -103  

Other

   74     102     -28  
    

 

 

ONI Group

   1,001     1,174     -173  
    

 

 

Operating Investment (€ m)


   1H2005

    1H2004

    D%

 

ONI Telecom

   6.0     5.1     17.1 %

Comunitel

   9.5     8.1     17.3 %
    

 

 

ONI Group

   15.4     13.2     17.2 %
    

 

 

 

LOGO

 

 

  Gross adds increased 51.7% year-on-year, on the back of a strategic focus on direct access clients and the launch of Oni Duo (bundle of voice & broad band Internet).

 

  Voice traffic increased 10.8% year-on-year, as a result of a 37% growth in the carriers’ segment. The residential segment’s voice traffic decreased due to the erosion of indirect access clients, which was not yet compensated by the growth in voice traffic from direct access clients (which more than doubled versus the 1H2004).

 

  Operating revenues increased 4.9% year-on-year – excluding the proceeds from Voice Value Added Services, a business that was terminated due to regulatory changes in Spain - on the back of increasing in revenues from both data & Internet and other telecommunication services (e-services and infra-structure services provided to corporate clients).

 

  Operating Investment totaled € 15.4m in the 1H2005, up 17.2% year-on-year, due to the investments made at the ADSL network (namely broadband central offices) and the acquisition of equipments for corporate clients’ solutions and on. These items are related to an increased focus on broadband Internet services and to the increase in the number of clients.

 

26


Table of Contents
Telecoms    LOGO

 

Operating Income Statement (€ m)


   ONI Group

 
   1H2005

    1H2004

    D%

 

Voice

   101.8     97.8     4.1 %

Voice Value Added Services

   0.7     11.4     -93.7 %

Data & Internet

   41.8     37.9     10.2 %

Other

   14.3     13.1     9.1 %

Telecommunication services

   158.6     160.3     -1.1 %

Equipment sales

   3.8     5.2     -27.0 %

Operating Revenues

   162.5     165.6     -1.9 %

Telecommunication services

   78.2     84.3     -7.2 %

Equipment sales

   3.4     4.5     -25.7 %

Direct Activity Costs

   81.5     88.8     -8.2 %

Telecommunication services

   80.5     76.1     5.8 %

Equipment sales

   0.5     0.7     -35.3 %

Gross Profit

   80.9     76.8     5.4 %

Gross Profit/Revenues

   49.8 %   46.4 %   3.4p.p.  

Supplies and services

   46.2     42.4     8.9 %

Personnel costs & costs with social benefits

   26.4     28.0     -5.8 %

Other operating costs (or revenues)

   (2.8 )   (0.2 )   —    

Operating Costs

   69.7     70.2     -0.7 %

EBITDA

   11.2     6.6     70.5 %

EBITDA/Revenues

   6.9 %   4.0 %   2.9p.p.  

Depreciation and amort. (net of subsidies)

   27.1     21.8     24.6 %

EBIT

   (15.9 )   (15.2 )   -4.7 %

EBIT/Revenues

   -9.8 %   -9.2 %   -0.6p.p.  

 

  Proceeds from voice telecommunication services, excluding Voice Value Added Services in Spain, were up 4.1% year-on-year, affected by: (i) a decrease in residential voice services from indirect access clients at Oni Telecom, following Oni’s strategic decision to focus on direct access clients; and (ii) an increase in Corporate and Carrier Voice traffic.

 

  Revenues from Data & Internet services were up 10.2% year-on-year, on the back of: (i) an improved offer of direct access through ULL (Unbundling of the Local Loop); and (ii) an increase in revenues from broadband Internet (+€6.5m).

 

  Gross profit at the Oni Group increased 5.4% year-on-year (or +3.4 p.p.), mostly due to a positive evolution of the services mix provided by Comunitel, which compensated the high interconnection costs and a late revision of local loop rental prices in Portugal, only effective in May 2005.

 

LOGO

 

  Operating costs decreased 0.7% year-on-year. 1H2005 includes a 41% increase in Client acquisition and retention costs (+€5.3m), €1.9m of severance payments and a €5.3m non-recurring income related to the sale of Oni Way. Excluding these impacts, operating costs would have decreased 3.3% year-on-year, mostly due to: (i) a 10.9% decrease in personnel costs, excluding severance payments; and (ii) a €3.5m increase in provisions for doubtful clients.

 

  The Oni Group’s gross profit improvement together with tight control of personnel costs and supplies & services, other than those related to client’s acquisition and retention, enabled the company to achieve an €11.2m EBITDA in the 1H2005, which represents an EBITDA margin of 6.9%.

 

  In March 2005, the Oni Group’s shareholders completed the second and last part of a €100m financing plan, through a €35m loan.

 

  We recall that in July 2005, the Oni Group signed a Sale and Purchase Agreement for the sale of its 99.93% stake in the share capital of Comunitel. The consideration to be received in cash on completion amounts to €215m and Oni expects to book an accounting gain of €51m.

 

27


Table of Contents

Financial Statements


Table of Contents
Income Statement by Business Areas    LOGO

 

1H2005(€ m)


   EDP
Produção


    EDP
Comercial


    Enernova
& EDP
Bioeléctrica


    EDP
Distribuição


    HC

    Brazil

    ONI

    EDP
Consolidated


 

Electricity Sales

   951.1     245.0     16.3     1,856.0     890.2     598.1     —       4,243.3  

Other Sales

   11.0     —       —