Israel Electric Corporation (IEC) (TASE: ELEC.B22) posted a net profit of NIS 100 million in January-September 2010, compared to a net profit of NIS 1.5 billion for the corresponding period of 2009. Net profit was NIS 1.19 billion for the third quarter, 24% less than for the corresponding quarter.
At NIS 6.28 billion, third quarter revenue was 17% higher than in the corresponding quarter of last year. The company attributed the increase to higher average price per kilowatt/hour and greater electricity consumption.
IEC said that the cost of fuel in January-September was 4% less than in the corresponding period, after adjusting for changes in prices. Profit from regular operations fell to NIS 1.3 billion in January-September from NIS 2.36 billion in the corresponding period, due to a NIS 600 million write off on fixed assets, after the Public Utilities Authority (Electricity) refused to recognize set-up costs of fixed assets. Other factors for the lower profit were the fuel mix, and the Public Utilities Authority refusal to allow rate hikes, especially for electricity transport and distribution.
IEC chairman Yiftach Ron Tal said, "The problem of electricity rates is still present and is a millstone around the company's neck. I call on the government to what it can to help the company maintain its financial soundness."
Published by Globes [online], Israel business news - www.globes-online.com - on November 25, 2010
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