The EDP Group ended its first semester activity with a Net Consolidated Income of PTE 54.8 billion, which represents a gross profit per share of PTE 18.28. These figures represent an increase of 9.7% over those of the first half 1999.
EDP's Group activities in Brazil had a positive contribute of PTE 1.54 billion, and on 1999 they had a negative impact of PTE 5.75 billion.
The cash flow generated rose 4.9%, amounting to PTE 117 billion. The operational income of the Group was PTE 95.9 billion (less 2.8%), but the core business operational income was PTE 98 billion (more 3%).
Net financial expenses improved significantly from PTE 19.1 billion to PTE 16.0 billion mainly by the positive influence of the results from the associated companies that were PTE 2.8 billion compared to PTE -6.7 billion in June 1999.
Extraordinary Results decreased by 35.1% to PTE 6.1 billion. It is important to stress that compensation for the depreciation of subsidised assets, which this half have amounted to PTE 5.9 billion, are recurrent extraordinary gains.
Electricity Sales revenues attained PTE 320.9 billion, corresponding to an increase of 7.4%, this figure includes PTE 9.4 billion related to the correction of the tariff deviation from REN's accounts. This correction arises from the difference between the effective production costs and the cost assumptions estimated by ERSE at the end of 1999 and considered for the new tariff's calculation.
Electricity Sales, in GWh, increased 7.1% from 16,165 to 17,306 GWh, and the number of clients rose by 1.2% to 5.35 million. Services provided amounted to PTE 7.95 billion, a 57.7% increase relative to 1999. This is a result of the activities of EDP service companies' activities, mainly telecommunications, both in the Portuguese and international markets.
The cost of electricity sales (electricity purchases + fuel costs), adjusted by the hydro correction mechanism, amounted to PTE 87.3 bn, 31% more than the first half 1999. This increase is mainly explained by the rise in the fuel prices.
Despite the 0.6% nominal decrease in the average tariff for 2000 and the significant increase in the production costs, the Core Business Operating Profit rose by 3%. This improvement is due to the 6.4% increase in the electricity consumption and to the tight control of the operational costs.
Personnel costs corrected by the PTE 6.1 billion from the early retirement charges have decreased 2.3% to PTE 44.3 billion. In June 30th, EDP had 13,934 employees a reduction of 122 employees when compared to the first half of 1999, regardless of the new hiring in the telecommunications business.
For the Core Business the number of employees decreased from 12,142 to 11,376 and the personnel costs were PTE 39.8 billion already corrected by the early retirement charges of PTE 4.1 billion.
Total capital expenditure increased by 10.8%, from PTE 35.1 billion to 38.9 billion. The capital expenditure in the Core Business remained almost constant, PTE 27.3 billion in comparison with PTE 26.9 billion for 1999.
 

ONI started its activity on the 1st of January 2000 as a data and fixed voice service provider, supported by 35,000 Km of optical fibre. The commercial strategy of the company has been focused on the business segment and on the high-value residential clients.
On the 30th of June ONI had 187,000 active telephone lines that had generated an accumulated traffic of 38.5 million minutes (40% of the new operators market). The new fixed line operators have already captured 10.4% of the long distance traffic originated in Portugal, which represents a total volume of 96.9 millions of minutes.
In relation to its ISP activity, ONI already has 165,000 registered internet accounts that generate a daily traffic of 740,00 minutes and an accumulated traffic of 54.2 millions of minutes.
During the first semester, the new organisational structure for ONI.SGPS was presented, which was created to concentrate all EDP's activities in the telecommunications, media and technology sectors, and is organized along several business areas to better serve all the market segments.
EDP and BCP entered into a strategic alliance in the areas of e-finance, non-financial Internet-based services, and third generation wireless telephony.
 

EDP's activities in Brazil have contributed with a positive result of PTE 1.5 billion, compared with 1999, when they had a negative result of PTE 5.8 billion.
EDP's Enerpaulo and CPFL's Draft I are launching a Public Offering to buy all common and preferred shares in Bandeirante de Energia S.A in the proportion of each one's participation in the controlling group.
EDP and CPFL are studying the possibility of spinning-off Bandeirante's assets. This operation aims to achieve a greater efficiency in the management of its business.
 

EDP-Distribuição was created from the merger of the four distribution companies.
EDP agreed with PETROCONTROL to buy a further 11% stake in GALP (Portuguese Holding of Gas and Oil, for EUR 317.966.000 (Pte 63,7 bn)). As a result EDP currently owns 14,27% of GALP's share capital. This acquisition fits with EDP's strategy to reinforce its share in the natural gas business, with the objective of developing electricity generation projects in the Iberian Peninsula, namely within the strategic partnership with Iberdrola.
EDA - Electricidade dos Açores: EDP acquired 10% of EDA's share capital, for PTE 1.2 billion, with which has established a strategic partnership.
The Portuguese Government announced its intention to acquire a 70% direct stake in REN, in view of the next phase of privatisation of EDP, which would result in the State transferring control over a sector of strategic national importance.
Hydroelectric Project of Foz-Côa: EDP has received from the Portuguese Government PTE 26 billion as a compensation for the amounts invested and the interests owed.
The second semester will be influenced by EDP's 4th privatisation phase, that will reduce the state's share to around 30%.