Eletrobras(EBR)2023-11-09 00:42Financial 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]