Eletrobras: balance sheet shows profit of R$893 million – 03/14/2024 – Market

Eletrobras had a net profit of 893 million reais in the fourth quarter of 2023, reversing a loss of 479 million suffered in the same period of the previous year, according to results released this Thursday.

Earnings before interest, taxes, depreciation and amortization (Ebitda) totaled 1.05 billion reais in the period, down 26% year on year. Calculated under regulatory metrics, the recurring company’s EBITDA reached 5.6 billion reais in the quarter, an increase of 5%, due to higher transmission revenues and reduced operating expenses.

Higher revenues in the quarter and an effect from income tax and social contribution offset the impacts of an increase in net financial expenses and provisions on net profit for the quarter, according to Eletrobras’ balance sheet.

Year-to-date, the electricity company reported a profit of 4.395 billion reais, 21% above that of 2022, while its EBITDA grew 49%, to 17 billion reais.

In a report accompanying the balance sheet, Eletrobras stated that its 2023 operational and financial results reflected “the search for greater cost efficiency and process rationalization”, which enabled the resumption of its investment capacity.

In the last quarter of 2023, Eletrobras’ investments totaled 4.63 billion reais, 190% above that recorded a year before, in works such as the Manaus-Boa Vista transmission line and the Coxilha Negra wind farm.

“Our financial and capital allocation discipline made it possible to propose the distribution of dividends in the amount of 1.297 billion reais relating to the results of 2023”, added Eletrobras.

Among its business areas, Eletrobras highlighted advances in energy commercialization, a division that gained importance after the privatization process.

The electric company ended 2023 with a base of 469 customers, 393 of which in the free energy market, a significant growth compared to the 249 customers in the previous year. In terms of end consumers, Eletrobras went from 46 at the end of 2022 to 269 in the last quarter of 2023.

“In a scenario of improving energy prices, such as the one currently emerging, the impact of these initiatives (in commercialization) should be even more visible in the results,” said Eletrobras.

The company also said it saw an improvement in its costs in “personnel, material, services and others” (PMSO), with the initial effects of the two voluntary dismissal programs (PDVs) launched.

In contingencies, Eletrobras pointed to a 41% reduction in the compulsory loan stock, the main liability on its balance sheet, to 17.2 billion reais, when compared to 24.3 billion reais in the last quarter of 2022.

Throughout 2023, Eletrobras’ operational provisions improved by 68%, going from 6.928 billion reais in 2022 to 2.196 billion.

Year to date, the electricity company reported a profit of 4.395 billion reais, 21% above that of 2022, while its EBITDA grew 49%, to 17 billion reais.

In a report accompanying the balance sheet, Eletrobras stated that its 2023 operational and financial results reflected “the search for greater cost efficiency and process rationalization”, which enabled the resumption of its investment capacity.

In the last quarter of 2023, Eletrobras’ investments totaled 4.63 billion reais, 190% above what was recorded a year earlier.

“Our financial and capital allocation discipline made it possible to propose the distribution of dividends in the amount of 1.297 billion reais relating to the results of 2023”, added Eletrobras.

The company also said it saw an improvement in its costs in “personnel, material, services and others” (PMSO), with the initial effects of the two voluntary dismissal programs (PDVs) launched.

In contingencies, Eletrobras pointed to a 41% reduction in the compulsory loan stock, the main liability on its balance sheet, to 17.2 billion reais, when compared to 24.3 billion reais in the last quarter of 2022.