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Elmű net income rises 22% in first nine months

Elmű, electricity distributor for Budapest and majority-owned by Germany's RWE-EnBW, posted consolidated net income of HUF 21.8 billion in the first three quarters of 2010, up 23.6% from a year earlier, the company revealed in its unaudited consolidated IFRS report for the period on Friday evening.

A large part of the rise reflected one-off effects and less financial loss. Elmű attributed a large part of the rise to higher profit from the company's 50%-owned power company Magyar Áramszolgáltató, reflecting the IFRS evaluation of exchange rate hedging transactions. A drop in the interest rates on bank loans helped financial results. Elmű noted that the government's extraordinary energy-sector tax is expected to reduce after-tax profits.

Nine-month consolidated sales revenue, at HUF 187.6 billion, was down 7.4% yr/yr. Material costs fell 9.8% to HUF 148.2 billion and personal costs fell 5.8% to HUF 3.5 billion in the first nine months.

Operating profit fell 2.6% to HUF 21.6 billion but profit from units almost doubled to HUF 5.8 billion. Financial losses halved to HUF 761 million.

EPS, both diluted and undiluted, rose to HUF 3,593 in the first nine months of this year from HUF 2,906 one year earlier.

Elmű had consolidated total assets of HUF 195.7 billion on September 30, 2010, down 1.7% from December 31, 2009. Net assets rose, however, 7.9% to HUF 123.6 billion in the period.

Elmű shares trade in the B-category at the Budapest Stock Exchange. (MTI-Econews)