Latin American utility Eletropaulo Metropolitana Eletricidade de Sao Paulo has reported net income of R$197.6 million in the third quarter of 2007, R$150.3 million higher than in the third quarter of 2006.
The increased income came despite the negative impact on revenues of Eletropaulo’s adoption of a new tariff authorized by Aneel on July 4, 2007, with an average reduction of 8.43%. The firm said that the results were boosted by a growth in electricity consumption in its concession area.
Third quarter 2007 earnings also reflect the strategy that Eletropaulo has adopted with regard to a tighter control of costs and expenses, gains in operational efficiency and reduction of losses, coupled with a decline in both indebtedness and in the average cost of the debt.
In September, the company paid out dividends corresponding to the first half of the year in the amount of R$487.8 million. Even after this disbursement, the company’s net debt fell by 18.7% when compared with the position at the end of third quarter of 2006.