Israel Electric Corporation (IEC) (TASE: ELEC.B22) posted a net profit of NIS 1.09 billion in January-September 2011, 603% times its profit of NIS 155 million in the corresponding period of 2010. Revenue rose 24% to NIS 18.37 billion from NIS 14.83 billion.
Despite a 19% increase in administrative and general expenses to NIS 550 million in January-September, IEC's operation doubled to NIS 2.88 billion.
IEC's fuel costs rose to NIS 8.8 billion in January-September from NIS 6.8 billion for the corresponding months. Its salary costs boosted the cost to NIS 8.92 billion from NIS 6.9 billion.
Third quarter revenue rose 24% to NIS 8.08 billion for the third quarter from NIS 6.51 billion for the corresponding quarter. Electricity sales totaled 15.42 billion kilowatt hours. Net profit was halved to NIS 584 million for the third quarter from NIS 1.2 billion for the corresponding quarter.
IEC's cash reserves fell to NIS 741 million at the end of September from NIS 4 billion at the end of 2010, mainly due to higher fuel costs, caused in part by the need to buy more expensive diesel to replace Egyptian natural gas, whose deliveries have been disrupted due to attacks on pipelines in Sinai.
Published by Globes [online], Israel business news - www.globes-online.com - on November 27, 2011
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