Eletrobras(EBR)
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Eletrobras(EBR) - 2023 Q3 - Quarterly Report
2023-11-23 16:00
Acquisition and Investment - Eletrobras completed the acquisition of 100% of the Retiro Baixo HPP, paying R$222.3 million for a 51% stake, with gross debt of R$31 million and a cash balance of R$59 million as of September[4] - The Retiro Baixo HPP has a capacity of 82 MW and a physical guarantee of 34.8 MWm, contracted at an average price of R$299/MWh until December 2038[5] - The consolidated EBITDA for the Retiro Baixo HPP is approximately R$80 million as of December 2022[6] - The asset has been operational since 2010 and has a concession term until March 2047[5] Strategic Alignment - The transaction aligns with Eletrobras' Strategic Plan to optimize minority stakes and simplify its corporate structure[7] - The acquisition reinforces Eletrobras' commitment to strategic growth and market expansion[7] Financial Stability and Risk Management - Eletrobras aims to enhance cash flow stability through GSF SP 97 insurance associated with the plant[5] - The company is focused on future economic conditions and industry performance as part of its forward-looking statements[15] - Eletrobras emphasizes the importance of monitoring risks such as regulatory changes and market conditions that may impact financial results[10] - The company has no obligation to update forward-looking statements based on new information or events[10]
Eletrobras(EBR) - 2023 Q3 - Earnings Call Transcript
2023-11-09 00:42
Financial Data and Key Metrics Changes - The recurring regulatory EBITDA was BRL 6.2 billion, while the IFRS EBITDA was BRL 4.6 billion. The regulatory net income stood at BRL 2.7 billion, and the adjusted net income per IFRS was BRL 1.1 billion [13] - The company achieved a net debt-over-EBITDA ratio of 2x, with a net debt of BRL 39 billion, incorporating Teles Pires' net debt [23] - The PMSO (Personnel, Material, and Services Operating) decreased from BRL 1.951 billion to BRL 1.680 billion, reflecting a 14% reduction [21] Business Line Data and Key Metrics Changes - Transmission revenue increased, while generation revenue slightly decreased due to the ending of the quota regime [17] - The company has incorporated almost 2 gigawatts into its portfolio, resulting in an increase of BRL 141 million in EBITDA [16] Market Data and Key Metrics Changes - The company has expanded its client base from 30 to 150 clients, with plans to continue increasing this number [11] - The average price for energy contracts is expected to rise, with projections indicating a price increase from BRL 65 to nearly BRL 80 by 2024 [42] Company Strategy and Development Direction - The company is focusing on operational efficiency and reducing costs through voluntary resignation programs, aiming for a BRL 1.2 billion saving from the first program and BRL 670 million from the second [38] - Eletrobras aims to become net zero by 2030, aligning with the UN's science-based targets initiative [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, emphasizing the importance of optimizing capital structure and improving cash flow [3][9] - The company is not concerned about power prices and is restructuring its commercialization department to enhance client acquisition [11] Other Important Information - The company has reduced its compulsory loan from BRL 26 billion to BRL 19 billion, indicating progress in liability management [15][46] - Eletrobras is prioritizing high-quality existing assets and is not looking for major acquisitions outside Brazil at this time [10] Q&A Session Summary Question: Can you provide more details on the power balance agreements and future cost expectations? - Management explained that the agreements are being negotiated at market prices, and they expect continued improvements in efficiency [28][29] Question: What is the expectation for the compulsory loan reduction in the fourth quarter? - Management indicated that they anticipate further reductions in the compulsory loan, with a focus on managing liabilities effectively [57] Question: How is the integration of Furnas progressing? - The integration of Furnas is a priority, but management could not confirm if it would be completed within the year [65] Question: What is the status of the payment of interest on shareholders' equity? - Management clarified that they are now focusing on careful financial management and will ensure transparency in future financial decisions [66][87]
Eletrobras(EBR) - 2023 Q2 - Earnings Call Transcript
2023-08-10 01:11
Centrais Elétricas Brasileiras S.A. - Eletrobrás (NYSE:EBR) Q2 2023 Earnings Conference Call August 9, 2023 1:30 PM ET Company Participants Wilson Ferreira Junior - CEO Elvira Presta - CFO, Chief IR Officer, EVP, Finance & IR Rodrigo Limp - EVP, Regulation & Institutional Relations Elio Wolff - EVP, Strategy & Business Development Conference Call Participants Andre Sampaio - Santander Antonio Junqueira - Citigroup Marcelo Sa - Itaú BBA Daniel Travitzky - Safra Operator Ladies and gentlemen, thank you for wa ...
Eletrobras(EBR) - 2023 Q2 - Quarterly Report
2023-06-30 19:03
[Filing Information](index=1&type=section&id=Filing%20Information) Provides administrative details for Centrais Elétricas Brasileiras S.A. - ELETROBRÁS's Form 6-K filing as a foreign private issuer [SEC Filing Details](index=1&type=section&id=SEC%20Filing%20Details) This section outlines the administrative information for the Form 6-K filing by Centrais Elétricas Brasileiras S.A. - ELETROBRÁS, a foreign private issuer, for June 2023 - Registrant: **Centrais Elétricas Brasileiras S.A. - ELETROBRÁS** (Brazilian Electric Power Company)[1](index=1&type=chunk) - Filing Type: **Form 6-K**, Report of Foreign Private Issuer, for the month of **June 2023**[1](index=1&type=chunk) - Annual reports are filed under **Form 20-F**[2](index=2&type=chunk) [Market Announcement: Transmission Auction Win](index=2&type=section&id=Market%20Announcement) Details Eletrobras's subsidiary Furnas winning Lot 4 in a transmission auction, securing a 30-year concession for a significant project [Auction Results and Project Details](index=2&type=section&id=Auction%20Results%20and%20Project%20Details) Eletrobras, through its subsidiary Furnas, successfully won Lot 4 in Transmission Auction No. 01/2023, securing a 30-year concession for a significant transmission line project in Minas Gerais - Eletrobras subsidiary Furnas won **Lot 4** in Transmission Auction **No. 01/2023**, promoted by the National Electric Energy Agency (ANEEL)[4](index=4&type=chunk) Lot 4 Transmission Auction Details | Characteristic | Location | RAP Maximum (R$ million) | RAP Purchased (R$ million) | Discount (%) | Capex ANEEL (R$ million) | Deadline (months) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | LT 500 kV Janaúba 6 - Presidente Juscelino – 300 km | MG | 126.65 | 68.70 | 45.75 | 786.62 | 60 | - The concession period for Lot 4 is **30 years**, covering licensing, construction, and operation[4](index=4&type=chunk) [Strategic Implications and Company Outlook](index=2&type=section&id=Strategic%20Implications%20and%20Company%20Outlook) The acquisition of Lot 4 is fundamental for renewable energy distribution, enhances asset management, and generates operational synergies, aligning with Eletrobras's diversification and revenue growth strategy - The new lot is **fundamental for distributing renewable energy** in the Northeast region and improving national portfolio asset management[4](index=4&type=chunk) - Eletrobras anticipates operational and technical synergies with its current transmission assets, which include **73,946 km of line** and **R$ 13.8 billion in annual revenue** (LTM)[4](index=4&type=chunk) - The Company continues its **portfolio diversification plan**, recomposition, and extension of transmission revenues, reinforcing investment capacity and aiming to **maximize shareholder returns**[5](index=5&type=chunk) - A videoconference was scheduled for **June 30, 2023, at 4 pm (Brasilia time)** to discuss the operation[5](index=5&type=chunk) [Disclaimers and Signatures](index=2&type=section&id=Disclaimers%20and%20Signatures) Presents standard disclaimers regarding forward-looking statements and confirms the official signing of the report [Forward-Looking Statements and Estimates Disclaimer](index=2&type=section&id=Forward-Looking%20Statements%20and%20Estimates%20Disclaimer) This section provides standard disclaimers regarding forward-looking statements and estimates, highlighting that they reflect management's current beliefs and expectations, involve inherent risks, and are not guarantees of future results - The document contains **estimates and projections** that are not statements of past events but reflect management's beliefs and expectations of future events[7](index=7&type=chunk) - Forward-looking statements involve **known and unknown risks and uncertainties**, including general economic, regulatory, political, and commercial conditions, interest rates, inflation, and changes in electricity use[7](index=7&type=chunk)[10](index=10&type=chunk) - The company assumes **no obligation to update** any estimates or projections due to new information or future events, and **actual results may differ materially** from current expectations[7](index=7&type=chunk)[10](index=10&type=chunk) [Signature](index=3&type=section&id=Signature) This section confirms the official signing of the report on behalf of Centrais Elétricas Brasileiras S.A. - ELETROBRÁS by its Vice President of Finance and Investor Relations - The report was signed on **June 30, 2023**, by **Elvira Baracuhy Cavalcanti Presta**, Vice President of Finance and Investor Relations[9](index=9&type=chunk)
Eletrobras(EBR) - 2023 Q1 - Earnings Call Transcript
2023-05-09 14:43
Centrais Elétricas Brasileiras S.A. - Eletrobrás (NYSE:EBR) Q1 2023 Earnings Conference Call May 5, 2023 1:30 PM ET Company Participants Wilson Ferreira – President and Chief Executive Officer João Carlos Guimarães – Head-Commercialization Elvira Presta – Chief Financial Officer and Investor Relations Officer Rodrigo Limp – Director of Regulation and Institutional Relations Conference Call Participants Andre Sampaio – Santander Bank Marcelo Sa – Itau Rafael Nagano – Credit Suisse Antonio Junqueira – Citi He ...
Eletrobras(EBR) - 2022 Q4 - Annual Report
2023-04-19 16:00
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of April, 2023 Commission File Number 1-34129 CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS (Exact name of registrant as specified in its charter) BRAZILIAN ELECTRIC POWER COMPANY (Translation of Registrant's name into English) Indicate by check mark whether the registrant by furnishing the information contained in this ...
Eletrobras(EBR) - 2022 Q4 - Annual Report
2023-04-19 16:00
Financial Liabilities and Obligations - The company has a total exposure of approximately R$4.3 billion related to debts owed by Amazonas Energia, with R$2.7 billion owed to Eletronorte and R$4.9 billion owed to the company as of December 31, 2022[70]. - The company must contribute R$6.9 billion over ten years for projects aimed at revitalizing hydrographic basins and reducing generation costs in the Legal Amazon region[67]. - The company is required to pay R$29.8 billion over 25 years to the CDE Account, with an advance of R$5.3 billion already paid[59]. - The company faces significant financial liabilities and potential liquidity constraints in the near and medium term, impacting its ability to finance planned investments[52]. - The company is required to maintain existing guarantees for Eletronuclear's financings and raise funds for the completion of the Angra 3 nuclear power plant[60]. - Amazonas Energia's total debt to Eletronorte and the company amounts to R$7.6 billion, with provisions made for R$7.3 billion as of December 2022[73]. - The company has fully provisioned R$2.0 billion due under four renegotiated agreements with Amazonas Energia as of December 31, 2022[72]. - The current exposure to Amazonas Energia is R$300 million, which may increase due to future energy purchases[74]. - The company recorded R$61.1 billion in financial statements to be received as RBSE and RBNI assets, but cannot guarantee full or timely payments[139]. - As of December 31, 2022, the company provisioned R$33.3 billion for probable legal proceedings, with R$29.6 billion related to civil claims[154]. - The company reported a deficit of R$5.2 billion in its pension plans as of December 31, 2022, with contributions of R$295 million made during the same period[146]. - The company has a provision of R$24.4 billion concerning ongoing judicial decisions related to book-entry credits[169]. - The company estimates a potential increase in provisions by approximately R$4.4 billion if claims from branches of companies are deemed enforceable[174]. - The company considers the probability of loss in certain legal proceedings as remote, estimating an amount of R$16.3 billion, with Case ROMA representing the largest portion[171]. - The company is subject to financial covenants requiring a net debt over EBITDA ratio generally fewer than four and debt service coverage ratios higher than 1.2[130]. - Financial liabilities of SAESA were consolidated into Furnas' financial statements, incorporating R$20.1 billion of gross debt[131]. Regulatory and Compliance Risks - The company is subject to ongoing risks following its Privatization, including legal challenges and potential reversal proposals from political figures[64]. - The company is subject to risks associated with compliance with data protection laws, which could result in fines and sanctions[56]. - The company is exposed to regulatory risks due to new operational technology regulations that require compliance[93]. - The company may face financial penalties and liabilities if mismanagement of government program funds is determined[77]. - The company is subject to regulatory changes by ANEEL, which could adversely impact its financial condition and results of operations[191]. - The company may face penalties or administrative intervention from ANEEL if it fails to comply with concession agreements[195]. - The company is cooperating with an SEC investigation related to the compulsory loan program and its disclosures[180]. - The company may incur significant fines if it fails to comply with data protection laws, including the LGPD[188]. - The company’s generation and transmission activities are regulated by ANEEL, which has the authority to set tariffs and review operational costs[182]. - The company has ongoing litigation related to compulsory loans and bearer bonds, which may have a material adverse effect on its financial condition[178]. Environmental and Operational Risks - The company faces significant risks in the construction and operation of electricity generation and transmission facilities, including potential delays and increased costs due to regulatory changes and environmental issues[230][232]. - Environmental licensing is mandatory, with fines ranging from R$500 to R$10 million for non-compliance, which could materially affect the company's financial condition[236]. - Recent incidents at the Pedra and Capitólio plants resulted in fines of R$100 million and R$289 million respectively, highlighting the financial impact of environmental management failures[238]. - The company is exposed to substantial environmental risks during the construction of generation plants and transmission lines, necessitating precise data collection for project development[234]. - Inadequate management of socioenvironmental aspects could lead to significant penalties, including plant shutdowns and reputational damage[240]. - The company must ensure compliance with environmental requirements to avoid additional costs and potential legal actions[235]. - Heavy rains at the Pedra plant led to flooding and a public civil claim, emphasizing the need for effective contingency plans[238]. - The company may incur costs from implementing corrective measures due to environmental management failures, impacting operational efficiency[237]. - Regulatory changes and difficulties in obtaining necessary permits could hinder project timelines and revenue generation[230]. - The company is currently contesting fines imposed due to environmental incidents and awaits further legal decisions[238]. Financial Performance and Market Conditions - The company is transitioning 17 hydroelectric plants to the Free Market, phasing out commercialization on the Regulated Market at a rate of 20% per annum starting January 1, 2023[80]. - The company has identified material weaknesses in internal controls over financial reporting, which could lead to misstatements in financial statements[85]. - The company has an equity interest in 21 affiliates and 74 Special Purpose Entities (SPEs) that are crucial for its revenue generation[87]. - The company’s revenues from power transmission are based on fixed tariffs established by ANEEL, which are subject to periodic reviews[101]. - The company is at risk of operational delays in construction and maintenance due to potential epidemics or natural disasters[101]. - The Brazilian Government's interventions in the economy could adversely impact the company's business and financial condition[210]. - Political instability following the October 2022 presidential elections may contribute to increased macroeconomic and political instability in Brazil[215]. - Brazil's annual inflation rates were 5.79% in 2022, 10.06% in 2021, and 4.52% in 2020, indicating a significant increase in inflationary pressures[223]. - The Brazilian real depreciated at a rate of 6.5% in 2021 but appreciated by 6.5% in 2022, ending the year at an exchange rate of R$5.2177 per U.S.$1.00[219]. - As of December 31, 2022, 12.8% of the total consolidated financing, loans, and debentures of R$59.1 billion was denominated in foreign currencies, compared to 18.9% of R$44.0 billion as of December 31, 2021[222]. - The company relies on a combination of trademark, patent, copyright, software, and trade secret laws to protect its intellectual property assets[201]. - As of the date of the annual report, Brazil's sovereign rating was BB-/B, Ba2, and BB- by major rating agencies, indicating a stable outlook but potential risks[228]. Corporate Governance and Stakeholder Relations - Furnas increased its stake in MESA from 43.05% to 72.36% in July 2022, and further acquired 22.9% in March 2023, bringing its total stake to 95.2%[110]. - SAESA's total debt amounted to R$20.1 billion, leading to a 57% increase in consolidated debt[110]. - The revised budget for the Angra 3 nuclear power plant totals R$29.3 billion, with an estimated operational start date pushed to July 2028[122].
Eletrobras(EBR) - 2023 Q1 - Quarterly Report
2023-03-30 21:45
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of March, 2023 Commission File Number 1-34129 CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS (Exact name of registrant as specified in its charter) BRAZILIAN ELECTRIC POWER COMPANY (Translation of Registrant's name into English) Rua da Quitanda, 196 – 24th floor, Centro, CEP 20091-005, Rio de Janeiro, RJ, Brazil (Address ...
Eletrobras(EBR) - 2022 Q4 - Earnings Call Presentation
2023-03-15 19:32
Classificação: Confidencial 1,247 1,291 95 84 499 717 437 - 539 18 2,278 4T21 4T22 Recurring +4% -12% +44% +26% +17% R$ 383 +100% 4Q21 4Q22 Staff + 1,233 million* Services: Eletronorte +R$108 million, reclassification of PIS/PASEP and COFINS credit for System Service Charges Holding: + R$43 million in consultancies, of which +R$28 million is for the Transformation Office PMSO SAESA + R$18 million This presentation may contain estimates and projections. See disclaimer Eletronorte: civil lawsuits (-R$70) -94 ...
Eletrobras(EBR) - 2022 Q4 - Earnings Call Transcript
2023-03-15 19:28
Centrais Elétricas Brasileiras S.A. - Eletrobrás (NYSE:EBR) Q4 2022 Earnings Conference Call March 14, 2023 1:30 PM ET Company Participants Wilson Ferreira Junior - President and CEO Rodrigo Limp Nascimento - Director of Regulation and Institutional Relations Elvira Baracuhy Presta - CFO and IRO Pedro de Oliveira Jatobá - Director of Generation Paula Prado - IRO Conference Call Participants Marcelo Sá - Itau Corretora Giuliano Ajeje - UBS Operator Presenting the team from Eletrobrás here, Wilson Ferreira, t ...