Companies: RUR   

South American electrification specialist Rurelec has increased interim pre-tax profits from £190,000 to £7 million and plans more expansion.

Steered by chief executive Peter Earl, AIM-quoted Rurelec, which controls four power plants in Argentina and Bolivia, lifted revenues ninefold to £9.4 million as some of its projects got under way. The company has begun construction of a 60 megawatt combined cycle expansion at its Energia del Sur power plant in Patagonia, southern Argentina.

Expansion continues in Bolivia, where the Guaracachi company is close to completing a 71 megawatt expansion in Santa Cruz and two new projects are afoot, including a 120 megawatt plant in Yacuiba, near the Argentinian border. Rurelec, which had £5.4 million in the bank at the end of June, says it is accelerating its programmes in the region and considering further expansion to achieve its goal of becoming 'the leading rural power company in the southern cone of Latin America'.

Rurelec shares declined from 50.5p in mid-2005 to 35p last month, on fears about political trends in South America, especially Bolivia, though Earl has always insisted the company is on good terms with the Left wing regime there. They have rallied to 42.5p, up 5p today, and should go further.

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Rurelec	AIM	£22.73m	26.50p	-1.50p
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