Eletrobras Profit Grows by 305% and Adds R6 $ 5.6 Billion in Q2 with Reuters Distributor Sales

SAO PAULO (Reuters) – State-owned Eletrobras (SA 🙂 reported net income for the second quarter, a 305% jump over the year, driven by the negative equity gains of its Amazonas Energia distributor, privatized at the end of the year. last year.

Latin America's largest power plant, which accounts for half of the transmission and one-third of Brazil's production capacity, added a profit before interest, tax, depreciation and amortization (Ebitda) of 1.35 billion, up 62% from the previous year. Recurring EBITDA was 3.1 billion, up 7.8% from the same period in 2018.

The company's net operating income grew 12.4% to 6.6 billion in revenue.

Eletrobras said the privatization of Amazonas Energia, sold in December to a consortium formed by Oliveira Energia and Atem, resulted in a profit of 5.26 billion reais from the negative equity repayment.

The sale sealed the exit of the state-owned distribution company, in which Eletrobras controls six distributors in the North and Northeast, which were agreed last year. The Amazon affiliate was the most scarce of them.

Eletrobras also added a profit of $ 1.69 billion to record the fair value of old renewal benefits (RBSE) because of a change in NTN-B discount rates.

On the other hand, the company made a provision of $ 921 million for CCC credits provided by Amazonas Energia to Eletrobras prior to privatization, in addition to contingency reserves of $ 329 million.

Eletrobras's investment has fallen 41% year-on-year to 578 million realists, amid restructuring of the company in recent years, which has delayed contributions. In the year to the end of the first half of the year, investments amounted to 1.09 billion, which is 41% less than 1.85 billion a year earlier.

(By Luciano Costa)