electric company 88.
(photo credit: )
Israel Electric Corp. said first-quarter profit rose 42 percent from a year earlier after the government allowed it to continue adjusting its results to inflation for another two years.
Net income climbed to NIS 93.8 million from NIS 66.2 million shekels a year earlier. Revenue climbed 7% to NIS 4.1 billion.
Chairman Shlomo Rothman said Finance Minister Avraham Hirchson let the company continue indexing its income and balance sheet to the consumer price until the end of 2007. Inflation indexing helps the company boost profit because the company's debt is mainly in dollars while its revenue is in shekels.
Under Israeli accounting rules, companies were barred from inflation-adjusting their financial reports from the start of 2004.