Ascendant Group’s profit rose 55 percent to $4.8 million for the first half of the year, compared to $3.1 million for the same period in 2011, but the company said electricity sales continued to fall.The Belco and Bermuda Gas owner said the Group benefited from its diversification strategy in the six months to June 30, as nearly $1 million in new revenue was from investments in Air Care and facilities management firm iFM.Commenting on its first-half increase in net earnings, Ascendant said: “Nearly all of the difference can be attributed to results for the 2011 period including a one-time expense of approximately $1.5 million for the costs associated with the voluntary early retirement of 26 employees. Excluding this one-time charge, consolidated net earnings for the first six months of 2012 would have increased by $193,881 over the same period in 2011.”Ascendant said that excluding the cost of fuel (fuel adjustment sales), Belco’s basic electricity sales fell $2.6 million or 3.8 percent when compared to the same period last year.“This continues the trend of declining electricity sales to both residential and commercial customers that the company has experienced over the last several years,” the company said in its six-month report to shareholders.“It is caused by the persistent contraction of the Island’s economy, as well as the response of our customers to higher total costs of electricity caused by higher fuel costs. Many customers are now conserving and reducing their electric energy consumption, adding to the downward pressure on sales.”However, Ascendant’s “gross electric energy revenue” in the period increased by $8.4 million, or 8.1 percent, which the company said was “entirely due to fuel adjustment sales, which rose 31.5 percent, or $11.1 million, as compared to 2011”.Ascendant continued: “The increase in fuel adjustment sales was due to the higher average cost per barrel of fuel of $132.25 (includes taxes, duty, shipping, storage and local pipeline transportation and working capital costs for on-Island fuel reserves) for the period, versus $106.40 for the first half of 2011.“The company does not incur any profit or loss on the fuel adjustment, hence this revenue is offset by identical fuel costs reflected in Energy Supply expenses.”Ascendant added that the decline in basic electricity revenues was in spite of a modest increase (1.25 percent) in energy rates approved by the Energy Commission, which came into effect on March 1.Earnings per share for the period were 46 cents compared to 30 cents per share in the first half of 2011.The company said revenue from propane gas sales rose approximately two percent, largely due to passing through increases in wholesale propane prices. But this was offset by a 10.6 percent decrease in appliance sales revenue.“This decline in appliance sales is attributable to continued weakness in the local economy and customers choosing to repair, rather than to replace, appliances,” Ascendant said.On bank borrowing for the period, Ascendant reported Belco had a $40 million overdraft facility with Butterfield Bank, and as of June 30 a total of $33,632,458 had been drawn down against the facility — used to finance oil shipments and working capital requirements.In addition, Bermuda Gas has a $1.5 million overdraft facility with the Bank, used to finance renovation work at its new facility on Serpentine Road.As of June 30, a total of $215,399 had been drawn down against the loan, Ascendant said. Both overdraft facilities bear variable interest rates based on the Bermuda dollar base rate on borrowings that extend to February 28, 2013.Non-current liabilities include a Butterfield revolving loan of $10.8 million.In May Ascendant said it obtained, through one of its affiliated companies, a $15.5 million revolving loan from the bank to finance the acquisition of Air Care Ltd. The loan is payable by Air Care following its merger with the Ascendant affiliate. The loan is for a term of eight years and interest is payable at 1.5 percent per annum above the Bermuda Dollar base rate. As of June 30, a total of $10.8 million had been drawn down against the loan.Company president and CEO Walter Higgins noted in his report to shareholders the passage of the Companies Amendment Act 2012.“This Act effectively waives the requirement that certain local companies (including Ascendant Group) be at least 60 percent Bermudian owned,” he said.“This will allow the company to make application to pursue various options to seek additional capital and investors.”