AES: Brazil Unit Could Reduce 2009 Investments
March 30 2009 - 4:01PM
Dow Jones News
Electric power distributor, AES Eletropaulo (ELPL5.BR), could
reduce its investments in 2009 if industrial demand for electricity
continues to decline, company executives said in a conference call
Monday.
AES Eletropaulo is Latin America's largest energy distribution
company and has earmarked 562 million Brazilian reals ($241.2
million) in investments for 2009. Of the total, some 50% is geared
for consumer services and network expansion.
Until now, AES said that none of its big industrial clients have
asked to reduce their contracted demand.
The global economic slowdown has Brazil's biggest energy
consumers, from steelmakers to auto makers, reducing power
consumption by as much as 14% month over month.
Eletropaulo is a subsidiary of U.S. multinational energy company
AES Corp. (AES).
Last week, Eletropaulo posted a fourth-quarter net profit of
BRL529.4 million, up from BRL9.5 million a year earlier.
The company attributed the rise in fourth-quarter net profit to
a non-recurring gain of BRL210 million from tax credits.
Company officials also said AES energy generation company Tiete
(GETI4.BR) was rethinking its planned investments in three small
hydroelectric plants in Rio de Janeiro.
-By Kenneth Rapoza, Dow Jones Newswires, 5511-2847-4541,
kenneth.rapoza@dowjones.com