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Palestine Electric earns a pretax income of $6.74 million in the first half of 2011

2011-08-14

The Palestine Exchange (PEX) received reviewed interim consolidated condensed financial statements from Palestine Electric (PEC). The PEX disclosure rules in place give all of the PEX listed companies a period of 45 days to report their first half interim financial statements as reviewed by their independent external auditor. Their disclosure has been published on the PEX website (www.pex.ps) and emailed to PEX member securities firms in conjunction with this press release.

The disclosed information includes: Independent Accountants" Review Report, the Statement of Financial Position, the Income Statement, the Statement of Comprehensive Income, Changes in Equity Ownership, the Statement of Cash Flows and Notes to the interim financial statements (14 notes). The company also provided its interim financial statements via the approved electronic form of disclosure applicable to the Service Sector. The interim report also includes the additional information required by Article (38/2) of the PEX disclosure rules in place concerning management, issued shares, material changes and significant events that may have affected financial performance during the first half of the year.

According to company data for the first half of this year, net profit before taxes reached 6,741,648 USD, compared with a net profit before taxes of 5,422,733 USD from the first half of 2010, a net increase of 24.3%. Total assets of the company have reached 103,290,380 USD as of June 30th, 2011, compared to total assets of 124,550,594 USD as of December 31st, 2010, a net decrease of 17.1%. Total liabilities of the company have reached 26,779,955 USD as of June 30, 2011, compared to total liabilities of 48,781,817 USD as of December 31st, 2010, a net decrease of 45.1%. Net ownership equity of the company has reached 76,510,425 USD as of June 30th, 2011, compared with a net ownership equity of 75,768,777 USD as of December 31st, 2010, a net increase of 1.0% in the last six months.

Within the conclusion in the Independent Auditors’ Review Report (Ernst & Young), the following was conveyed: Based on our limited review, nothing has come to our attention that causes us to believe that the accompanying interim consolidated condensed financial statements are not, in all material respects, presented in accordance with International Accounting Standard No. (34) . An additional paragraph “Emphasis of Matters” without any qualifications was included at the end, which highlighted issues with the Palestine Energy & Natural Resources Authority (PENRA) as outlined in notes 4 and 13, and the potential recovery of asset values given the political and economic stability in Gaza, as outlined in note 14.