increased electricity sales drove up the utility group's income.

The company, parent to Belco, Besco and Bermuda Gas, yesterday announced net earnings of $8,355,811 for the first six months of the year. The figure represents a 35 percent increase over 1999 when profits were $6,184,199.

A release from the company attributed the rise to an increase in electricity sales and a reduction in the number of "major engine maintenance overhauls''.

"These results are in large part due to a successful and still growing international insurance base that has fuelled a very healthy construction industry, which in addition to international business, has contributed greatly to growth in our economy,'' said company president and CEO Garry Madeiros.

Revenue from electric energy sales was up 12.52 percent over 1999 as a result of higher fuel adjustment revenue and increased sales.

Kilowatt hours sales were up 4.25 percent for the period when compared with the same period last year. The increase was due to a 3.52 percent increase in commercial sales as new commercial buildings became operational. It was also influenced by increased usage by existing demand customers and a rise in residential kilowatt sales of 5.05 percent.

Electricity operating expenses fell as fewer major engine overhauls took place and due to fuel adjustment costs and revenue.

Belco Holdings reported that fuel efficiency rose 15 kilowatts per barrel.

Prices per barrel rose 31.17 percent from $35.19 in the first six months of 1999, to $46.16 in the first six months of 2000.

The peak load reached a new high of 97,0000 kilowatts, an increase of 4.98 percent.

"This increasing load on our system was the driving force behind our recent plant expansion,'' the company said.

Total income of Bermuda Gas rose three percent. Overall sales of the division were up seven percent while gas sales rose 12.3 percent.

"Sales from Besco declined in the first six months of 2000 as a number of major projects were completed,'' the company said. "New projects are expected to start in the second half of the year.'' High demand: Gary Madeiros