Eletrobras(US:EBR)2021-08-12 23:45Financial Data and Key Metrics Changes - In Q2 2021, the company reported a 49% increase in ROL IFRS from BRL 5.3 billion to BRL 7.9 billion compared to Q2 2020 [6] - EBITDA increased by 64%, while net profit surged from BRL 469 million in Q2 2020 to over BRL 2.5 billion in Q2 2021, marking a 439% increase [7] - Recurrent net profit reached BRL 4.5 billion, up from BRL 643 million in the same quarter last year, reflecting an increase of over 600% [7][46] - The net debt to EBITDA ratio improved from 1.4x to 1.0x, the lowest in the company's records [8][48] Business Line Data and Key Metrics Changes - Generation revenue increased by BRL 863 million, primarily due to higher PLD and short-term operations [23] - Transmission revenue rose by 52% to BRL 1.9 billion, driven by tariff reviews implemented in July of the previous year [24] - The company experienced a 30% increase in operational costs, attributed to personnel expenses and maintenance activities at Angra I and II [39] Market Data and Key Metrics Changes - The daily energy charge in Brazil increased by 17% in Q2 2021 compared to the previous year, reflecting a recovery in economic activities [9] - The GSF dropped to 70% in June 2021, indicating potential challenges in the upcoming months due to water crisis impacts [10][36] Company Strategy and Development Direction - The company is focusing on the acceleration of critical projects like Angra 3 and corporate rationalization through the incorporation of Amazonas GT by Eletronorte [11][13] - The management is optimistic about achieving capitalization goals and is preparing for a follow-on offering in early 2022 [20][50] Management's Comments on Operating Environment and Future Outlook - Management highlighted the robust recovery of economic activities in Brazil and the expected continuation of high PLD levels in the near future [10] - The company is closely monitoring regulatory changes and their potential impacts on operations and financial performance [62] Other Important Information - The company announced a dividend payment of BRL 1.5 billion scheduled for the end of August [8] - The company received several awards for corporate governance and financial management, reflecting its commitment to ESG principles [17] Q&A Session Summary Question: Update on the percentage of actions available - Management indicated that the percentage of actions is above 70%, nearing 80%, but the process is slower due to the pandemic [57] Question: Clarification on dividends and leverage - Management stated there are no current predictions to change the dividend payout, emphasizing the need to evaluate the capitalization process [57] Question: Governance concerns regarding Eletronuclear - Management reassured that governance rules are in place to ensure effective management and decision-making regarding new investments [61] Question: Tax reform considerations - Management acknowledged ongoing discussions with the government regarding tax reform but did not provide specific timelines [68]