Press Releases 2008

Interim results for the 6 months ended 30th June 2008

Details

Published: Tuesday, 30 September 2008 01:00

30th September 2008

Rurelec PLC ("Rurelec" or "the Company"; AIM: RUR), the electric utility focused on the development of power generation capacity and rural electrification projects in Latin America, announces its unaudited interim results for the six months ended 30 June 2008.

Financial Highlights

Revenues increased by 14% to £11.95m (2007: £10.52m)

• Earnings per share increased by 7% to 0.15p (2007: 0.14p)
• Net Asset value per share increased by 10.5% to 52.5p (2007: 47.5p)
• Profit seasonally weighted  to second half of the year when Rurelec's thermal power plants operate at higher utilisation rates
• Placing in June of 12.5m new ordinary shares at 65p raising £7.88m net of expenses

Operational Highlights:

• Continued construction of new generation capacity in both Argentina and Bolivia
• Purchase in June 2008 of remaining 50% of Energia del Sur ("EdS") has significantly enhanced earnings potential since initial acquisition of 50% stake in 2005
• Its Guaracachi subsidiary, Bolivia's largest power company, closed a series of important financings in relation to its 96 MW combined cycle conversion project
• Considerable progress made in Argentina, where EdS, Rurelec's now wholly-owned subsidiary, will bring a new 60 MW steam turbine on stream by October 2008
• Future income from carbon credits in Argentina expected to be an important source of future cash flow and profits

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

"Near term, we will be focusing our regional expansion in Bolivia, whose fledgling markets remain buoyant. Although we are not immune to the impact of the global credit crunch in terms of access to debt financing, Rurelec's management is resolved to continue to create for shareholders a valuable long term portfolio of infrastructure assets in Latin America."

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