Portugal Firm EDP to Invest US$ 344 Million in Brazilian Energy

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EDP Brazil Company Energias de Portugal (EDP) wants to invest 270 million euros (US$ 344 million) a year in Brazil between 2009 and 2012, the equivalent to 9% of 3 billion euros (US$ 3.8 billion) a year, which is the total value of a strategic plan disclosed last Thursday by António Mexia, the president at the company.

In addition to investment in Brazil, 62% of the annual total will be destined to EDP's projects turned to wind energy, 12% to regulated networks, 10% to water energy, 3% in combined cycle plants and 4% to other unspecified investment.

The company explained that, out of the total funds, 2.4 billion euros (US$ 3.1 billion) will be forwarded to expansion of production capacity and 600 million euros (US$ 764 million) in maintenance of production.

EDP also disclosed that its annual profit should rise by 10% a year between 2007 and 2012, and dividends by 1,5% a year, said Mexia.

For the 2007-2012 cycle, the Portuguese company forecasts growth of earnings before interest, taxes, depreciation and amortization (EBITDA) of 12%, sustained by organic growth and existing assets.

Within the expansion, wind energy will contribute more, in terms of EBITDA, in comparison with the previous strategic plan, rising from 26% to 32%.

EDP also promises a new cost reduction program, setting the goal of saving 160 million euros (US$ 204 million) between 2008 and 2012, including personnel reduction, based on reform agreements and reduced spending on supply and foreign services.

Lusa

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