Israel Electric Corporation (IEC) (TASE: ELEC.B22) posted a net loss of NIS 653 million for the first quarter of 2010, NIS 523 million more than its net loss of NIS 130 million for the corresponding quarter of 2009. In February, the Public Utilities Authority (Electricity) cut electricity rates by 10-16%.
Revenue from electricity sales fell 30% to NIS 3.61 billion for the first quarter from NIS 5.17 billion for the corresponding quarter. Average revenue per kilowatt/hour fell 13.9% to NIS 0.3831 in the first quarter, and the amount of electricity used by consumers fell 1.21% to 11.31 megawatts in the first quarter from 11.45 megawatts in the corresponding quarter.
IEC saved NIS 1.08 billion on fuel purchases (excluding salaries), which fell 42.5% to NIS 1.47 billion for the first quarter from NIS 2.55 billion for the corresponding quarter. The drop was due to the ongoing switch to natural gas, which is 70-90% cheaper than coal, crude oil and diesel.
IEC's return on equity was minus 3.91% for the first quarter.
Published by Globes [online], Israel business news - www.globes-online.com - on June 1, 2010
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