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Eletrobras(EBR) - 2023 Q4 - Annual Report
EBREletrobras(EBR)2024-04-25 21:30
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Power Consumption - The total power consumption in Brazil for the year ended December 31, 2023, was 531,013 GWh, reflecting a 4.2% increase from 509,441 GWh in 2022[687]. - The residential sector's electricity consumption grew by 7.6%, reaching 164,323 GWh in 2023 compared to 152,771 GWh in 2022[689]. Financial Liabilities and Obligations - The company's liabilities related to compulsory loans decreased by R7.2billiontoR7.2 billion to R17.3 billion in 2023, down from R24.4billionin2022[693].−AsofDecember31,2023,thecompany′sobligationsundercompulsoryloanagreementstotaledR24.4 billion in 2022[693]. - As of December 31, 2023, the company's obligations under compulsory loan agreements totaled R896.7 million[693]. - The company reduced its provisions in respect of 3,409 lawsuits related to compulsory loans by R7.2billionin2023[693].RevenueandFinancialPerformance−ThetotalvalueofRAP(AnnualRevenueRequirement)forthe2022−2023cyclewasR7.2 billion in 2023[693]. Revenue and Financial Performance - The total value of RAP (Annual Revenue Requirement) for the 2022-2023 cycle was R18.3 billion, representing an increase of approximately 25% compared to the previous cycle[703]. - The approved RAPs for the 2023/2024 cycle amounted to R17.57billionacrossvarioussubsidiaries[712].−ThecompanyrecordedimpairmentstotalingR17.57 billion across various subsidiaries[712]. - The company recorded impairments totaling R1.847 billion for the year ended December 31, 2023, compared to R2.690billionin2022,indicatingadecreaseinimpairments[724].−TheimpairmentprovisionfortheCoxilhaNegrawindfarmwasR2.690 billion in 2022, indicating a decrease in impairments[724]. - The impairment provision for the Coxilha Negra wind farm was R591.9 million, while the Samuel Hydroelectric Plant recorded an impairment of R261.9millionin2023[726][727].DebtandFinancingActivities−ThereprofilingofdebenturesinJune2023extendedthematurityofEletronorte′sissuanceby5years,withinterestratesreducedtoCDI+2.17261.9 million in 2023[726][727]. Debt and Financing Activities - The reprofiling of debentures in June 2023 extended the maturity of Eletronorte's issuance by 5 years, with interest rates reduced to CDI + 2.17% per annum[715]. - In September 2023, the company completed its fourth debenture issuance totaling R7.0 billion, with R4.0billioninthefirstseriesandR4.0 billion in the first series and R3.0 billion in the second series[717]. - The subsidiary Furnas issued commercial notes in five series totaling R3.5billion,withamountsrangingfromR3.5 billion, with amounts ranging from R0.5 billion to R1.0billionacrosstheseries[718].−InNovember2023,thesubsidiarySAESAunderwentadebtrestructuring,withacapitalincreaseofR1.0 billion across the series[718]. - In November 2023, the subsidiary SAESA underwent a debt restructuring, with a capital increase of R2.04 billion used to prepay part of SAESA's debt, and the company assumed an outstanding debt balance of R11.5billion[719].MarketOperations−Thecompanyhasbeentrading2011.5 billion[719]. Market Operations - The company has been trading 20% of its energy on the Free Market since 2023, with plans for all trading to be conducted on the Free Market from 2024 onwards[690]. Financial Risks and Expenses - The company’s financial expenses primarily reflect debt and leasing expenses, which are significant components of its overall financial performance[745]. - The company’s operational provisions include charges for legal proceedings, bad debt expenses, and impairments, reflecting a comprehensive approach to managing financial risks[738]. - The company has entered into derivative contracts to hedge against foreign exchange fluctuations related to U.S. dollar-denominated debts totaling U.S.1.25 billion[748]. Tax Implications - Operating revenues from electricity generation and transmission are subject to various taxes, including VAT, which has been impacted by a recent Supreme Court ruling on unconstitutional high rates[730].