SOURCE: MPX Energia S.A.

March 25, 2008 20:12 ET

MPX Announces Its Business Plan Update

RIO DE JANEIRO, BRAZIL--(Marketwire - March 25, 2008) - MPX Energia S.A. ("MPX" or the "Company") announces that at the Board of Directors meeting held today it was presented the business plan update, including the following changes in comparison with the Feasibility Study presented in the offering memorandum of the December 2007 MPX's common shares offering:

(1) Shareholder interest transference from Centennial to MPX

According to the Material Fact released on February 19, 2008, Eike Batista, Chairman and controlling shareholder of MPX, transferred to MPX at no cost, his ownership interest held by Centennial Asset in MPX's subsidiaries MPX UTE Porto do Açu S.A and MPX Energía de Chile Ltda., special purpose companies that own and develop the UTE Porto do Açu and UTE Castilla projects, respectively. As a result, MPX increased its shareholding position in each of the UTE Porto do Açu and UTE Castilla projects from 70% to 100%, but keeping the same Centennial strategy of attracting partners to join these projects. Thus, the sale of these stakes will represent cash inflow into the Company.

(2) UTE Porto do Açu (Rio de Janeiro)

The Feasibility Study formerly foresaw the installation of 1,400 MW in UTE Porto do Açu's first phase, divided in 700 MW in 2012 and 700 MW in 2013. However, as announced to the market in February 19, 2008, the Company has filed at Rio de Janeiro's Environmental Protection Agency (FEEMA) the Environmental Impact Study (EIA RIMA) of UTE Porto do Açu considering an initial generation capacity of 2,100 MW instead of 1,400 MW. This increase of 700 MW represents a partial anticipation of the second phase, which has been adjusted from 4,000 MW to 3,300 MW.

(3) UTE Porto de Itaqui (Maranhão)

Aiming at optimizing the start-up schedule of the projects, especially considering the 700 MW anticipation at UTE Porto do Açu, the start-up of the second phase of UTE Porto de Itaqui has been adjusted to 2014 instead of 2013, the former forecast at the Feasibility Study.

(4) UTE Castilla (Chile)

After a more detailed assessment of UTE Castilla project, the start-up schedule of the Chilean units has been adjusted according to Table 2.

Table 2 - Start-up forecast of phases 1 e 2 of UTE Castilla

                                    2012         2013         2014
                                ------------ ------------ ------------
Feasibility Study
  Capacity                               700          700            -
  Start-up                               jul          jul            -
  Capacity                               350      350/350          350
  Start-up                               jul      jan/jul          jan

(5) Revision of the capex disbursement curve

In order to reflect the adjustments in the start-up schedule above mentioned, the forecast of the capex disbursement curve has been updated as shown in Table 3. The total capex requirement has not changed from the Feasibility Study, although the cash required from MPX should be lower taking in consideration the cash in that will come from the strategic partner at UTE Porto do Açu and UTE Castilla.

Table 3 – Capex disbursement curve forecast

                  2008 2009  2010  2011  2012  2013  2014  2015 2016  2017
                  ---- ----  ----  ----  ----  ----  ----  ---- ----  ----
Feasibility study  2%   15%   25%   15%   12%   10%   10%    8%   2%    1%
Revision           4%   13%   15%   19%   17%   13%   10%    6%   2%    0%

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Contact Information

  • For additional information, please contact
    Andrea Pereira
    Investor Relations Manager
    Phone + 55 21 2555-5279