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Rurelec PLC announces that its Bolivian power generation subsidiary, Empresa Guaracachi SA ("Guaracachi") has today announced its preliminary results for the year ended 31st December 2006. Rurelec PLC owns 50.001 per cent. of Guaracachi. The shares of Guaracachi are listed on the Bolsa Boliviana de Valores.
In the twelve months ended 31st December 2006, Guaracachi recorded audited profits after tax of US $7.2 million on revenues of US $31.3 million. Based on these results, the Board of Guaracachi is recommending to its shareholders a dividend of US $6.87 million. The dividend attributable to Rurelec PLC will be US $3 million after deduction of Bolivian witholding taxes at the rate of 12.5 per cent. The figure of US $7.2 million was after deductions of some US $913,000 of one time foreign exchange adjustments and a contribution of just over US $258,000 to the new Dignity Tariff. The Dignity Tariff is a system of subsidies for Bolivia's poorest users of electricity which was pioneered by Guaracachi early in 2006, working in partnership with the Government of Bolivia and all other participants in Bolivia's electricity sector.
This is the last year in which Guaracachi's Bolivian accounts will be reported under Bolivian GAP. In future, Bolivia is expected to move progressively to implement IFRS. Rurelec PLC already reports its consolidated results under IFRS. The Board of Rurelec expects to announce its own preliminary consolidated results for the twelve months ended 31st December 2006 by the end of April 2007. These results will include consolidated audited accounts for both Guaracachi and Energia del Sur SA in Argentina. In view of the fact that Guaracachi constitutes a significant part of the balance sheet of Rurelec PLC, and given that these results are due to be released today in La Paz and Santa Cruz de la Sierra to Guaracachi's minority shareholders, Rurelec PLC and its financial advisers Daniel Stewart have decided to release the results on a simultaneous basis in London on the grounds that they constitute price sensitive information.
At the same time, the Board of Rurelec PLC is pleased to announce that Guaracachi's newest turbine in Bolivia of 71 MW has successfully completed synchronisation tests under full load. This General Electric 6FA gas turbine is expected to enter full commercial service later this week. It was successful inaugurated in Bolivia at a formal ceremony held on 13th March 2007. Speaking at the inauguration, Bolivia's Minister of Public Works was quoted as follows: "Many people think that we want to destroy the private sector. [But] the Government actually needs to work hand in hand with this country's private companies."
For further information, please contact:
Peter Earl
Managing Director Tel. 020 7793 5610
Paul Shackleton
Daniel Stewart & Company Tel. 020 7776 6550