Eletrobras has profit of BRL 406 million in the first quarter of 2023 – 05/05/2023 – Market

Eletrobras recorded a net profit of BRL 406 million in the first quarter of 2023, according to the result released on Thursday night (4).

Net revenue reached R$ 9.2 billion and Ebitda (Earnings before interest, taxes, depreciation and amortization) reached R$ 4.9 billion, increases of 13% and 44%, respectively, in relation to the first quarter of 2022.

According to the company, the result was impacted by events arising from the capitalization. The main ones were charges and monetary restatement of contributions to the CDE (Energy Development Account) and funds provided for in the new 30-year concession contracts.

Still according to the balance sheet, the highlights of the period were the advances in the company’s restructuring.

Due to a voluntary layoff plan, Eletrobras recorded savings of R$121.5 million in the quarter. 435 people were laid off between January and March, out of a total of 2,494 registered professionals.

The balance also informs that market executives were appointed for 11 vice-presidencies, who must work on issues such as commercialization, innovation, management and culture.

Investments made grew 191% compared to the first quarter of 2022, reaching BRL 1 billion. The energy transmission area had an investment increase of 97% compared to the first quarter of last year, totaling R$ 472 million. Energy generation received R$ 460 million in investments in the period.

“Eletrobras is undergoing a major restructuring after its capitalization, and the expansion of investments reinforces the value creation capacity of this more modern and competitive company, maintaining its financial discipline and focus on results for our stakeholders”, said the company president, Wilson Ferreira Junior.

The company reduced operating provisions from BRL 1.9 billion to less than BRL 600 million, a variation of around 70%. With regard to compulsory loans, the decrease, resulting from legal agreements, was R$ 120 million from the reserve stock.

The acquisition of a 22.9% equity interest in Santo Antônio Energia (Saesa) was carried out, totaling 95.2%. The consolidation of Saesa’s generation revenue represented an increase in revenue of R$ 1,149 million. The shareholding with Cemig was also unbundled to hold 98% of UHE Retiro Baixo and 100% of UHE Baguari Energia SA

PRIVATIZATION

The AGU (Attorney General of the Union) is preparing a Direct Action of Unconstitutionality with the Federal Supreme Court in the coming days, questioning the privatization of Eletrobras. It is expected to be filed in the coming days.

The measure is the result of a mission given by President Luiz Inácio Lula da Silva (PT) to Minister Jorge Messias right at the beginning of the government to try to increase the decision-making power of the Union in the company privatized in June last year.