Energin

Our Energin cogeneration plant began commercial operations in March 2002.  The plant is located at Solvay’s plant in Póvoa de Santa Iria and has a single gas turbine with a power output of 42 MW and a heat recovery steam generator with a maximum capacity of 120 tonne/h of steam production.  In 2005 it produced 262 GWh of electricity, which was entirely sold to the SEP.  The steam produced was consumed by Solvay in its production process.  The plant’s natural gas consumption was approximately 89 million m³.  We hold a 35% interest in the Energin power plant, which we consolidate by the equity method, and EDP holds the remaining 65%.

    Carriço

Our Carriço cogeneration plant began commercial operations in March 2004.  The plant is located close to Transgás’ natural gas underground storage facilities near Pombal.  Its major customer is Renoeste, a salt processing plant.  Our Carriço plant has a single gas turbine with a power output of 30 MW and a heat recovery steam generator with a maximum capacity of 42 MW of hot water production.  In 2005, it produced 198 GWh of electricity, which was mainly sold to the SEP.  The hot water produced was consumed by Renoeste in its production process.  The plant’s natural gas consumption was approximately 52 million m³.  We hold a 65% interest in the Carriço power plant and EDP holds the remaining 35%.

Powercer

Our Powercer cogeneration plant began commercial operations in September 2004.  The plant is located at Sociedade Central de Cervejas’ plant in Vialonga.  The plant has a single gas turbine with a power output of 7.2 MW and a heat recovery steam generator with a maximum capacity of 30 tonne/h of steam production.  In 2005 it produced 40 GWh of electricity, which was entirely sold to the SEP.  The steam produced was consumed by Sociedade Central de Cervejas in its production process.  The plant’s natural gas consumption was approximately 18 million m³.  We hold a 70% interest in the Powercer plant and Finerge holds the remaining 30%.

New Power Projects

We plan to become a key player in the Portuguese electricity market.  We plan to leverage our know-how in the gas business building two CCGT plants with 400 MW each, to develop a competitive Power business.  We intend to vertically integrate this business by developing an electricity supply business, further develop our cogeneration business and enter into the renewable energy business. 

Selected Financial and Operating Data

The following table sets out selected financial and operating data relating to our Power business segment:



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(1) This amount differs from the financial information approved as of and for the years 31 December 2003 and 2004 as it includes the services rendered.
(2) We define EBITDA as operating result plus depreciation and amortisation plus provisions.  EBITDA is not a standardised measure and it therefore should not be used to compare one company against another.  EBITDA is not a direct measure of our liquidity and needs to be considered in connection with our actual cash flows provided by operating activities and in the context of our current financial commitments.  EBITDA may not be indicative of our historical operating results nor is it meant to be predictive of our potential future results.
(3) Net fixed assets include tangible and intangible net assets.
(4) EBIT after taxes divided by total consolidated assets excluding financial investments.
(5) Includes the total production of Energin, which we consolidate by the equity method.