Press Releases 2011

Final Results

Details

Published: Wednesday, 08 June 2011 10:33

Rurelec PLC ("Rurelec" or "the Company"), the electric utility company focused on the development of power generation and rural electrification projects in Latin America, announces its final results for the year ended 31 December 2010.

Financial Highlights: 

• Post tax profit £16.4m (2009 - loss of £2.9m)
• Loss from continuing operations £0.1m (2009 - loss of £2.9m)
• Notional compensation for nationalisation* £47m
• Earnings per Share continuing operations loss 0.06p (2009 - loss of 1.89p)
• Net asset value per share** 20.2p

* This notional compensation level has been calculated for accounting purposes only and does not reflect the full fair market value of the nationalised assets that Rurelec and its subsidiary Guaracachi America Inc are entitled to and will claim under the applicable bilateral investment treaties and international law in the pending international arbitration proceedings against Bolivia.

** Pro-forma - based on net asset value at 31.12.10 adjusted for shares issued in March 2011.

Operational Highlights: 

• Progress being made towards arbitration process for compensation on nationalisation of assets in Bolivia
• Assets in Argentina performing well and trading profitably

Commenting on these results, Peter Earl, Rurelec's Chief Executive, said:

"Looking to the future, we have seen a return to profit of £0.6m, at Energia del Sur (EdS) our business in Argentina. With the Resolution 220 contract now in force and with the enhanced cashflow from the power purchase contract finally resulting in strong cash flow at EdS. Rurelec is now virtually debt free and releasing back to London some of the cash tied up in Argentina.

"In Bolivia the administration of Evo Morales has acknowledged its obligation to pay compensation in respect of the nationalisation of Rurelec's investments in Guaracachi yet no payment or offer of payment has been put forward to date. Accordingly, Rurelec and its subsidiary Guaracachi America Inc have initiated arbitration proceedings against Bolivia to seek full and fair compensation for their expropriated assets. Rurelec's board is determined to obtain the maximum compensation for shareholders and will work tirelessly until that occurs.

In accordance with the AIM Rules, copies of the results are also available on the Company's website, www.rurelec.com

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