6-K 1 ebrmarketletter1q19_6k.htm MARKETLETTER 1Q19 ebrmarketletter1q19_6k.htm - Generated by SEC Publisher for SEC Filing

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 May, 2019

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 of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ___X___ Form 40-F _______

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes _______ No___X____


 

 


 


 

 


Summary

 

 

Page

Conference Call in Portuguese

May  14, 2019

  14:30 PM (GMT)

13:30 PM (New York time)

18:30 PM (London time)

Phone: (11) 3137-8037  

 

Conference Call in English

May 14, 2019

2:30 PM (GMT)

1:30 PM (New York time)

6:30 PM (London time)

Phones: (11) 3137-8037

              (+1) 786 837 9597 (USA)

              (+44) 20 3318 3776 (London)

 

Contact RI:

Ombudsman-ri@eletrobras.com

www.eletrobras.com.br/ri

Tel: (55) (21) 2514-6333

 

Preparation of the Report to Investors:

 

Superintendent of Investor Relations

Paula Prado Rodrigues Couto

 

Capital Market Department

Bruna Reis Arantes

Fernando D'Angelo Machado

Luiz Gustavo Braga Parente

Maria Isabel Brum de A. Souza

Mariana Lera de Almeida Cardoso

 

Interns

Flávia Alessandra Barbosa Bezerra

Juliana C. M. Cardelli de Oliveira

Introduction

03

I. Analysis of the Consolidated Result

04

II. Analysis of the Parent Company's Result

12

III. General information

14

IV. Anexos: 1.  Controlled Financial Information

                  2.  Controlled Financial Analysis

                  3.  Controlled Operational Information and SPEs

 

 

 

 

 

The Investors Report - Appendices I, II and III can be found at excel on our website: www.eletrobras.com.br/ri

 

 

 

Get to know the Eletrobras IR Ombudsman, an exclusive platform for receiving and forwarding suggestions, complaints, compliments and requests from protesters regarding the securities market on our Investor Relations website

 

 

 


1


 

 

Rio de Janeiro, May 13,2019 - A Eletrobras (Centrais Elétricas Brasileiras S.A.) [B3: ELET3 e ELET6 – NYSE: EBR e EBR-B – LATIBEX: XELTO e XELTB], the largest company in the Latin American electricity sector, operating in the generation, transmission and commercialization segment, controlling company of 9 subsidiaries, a holding company - Eletropar -, a research center - Cepel and holding 50% of Itaipu Binacional and the direct control of 6 Special Purpose Companies, announces its results for the period.

In the first quarter of 2019 (1Q19), Eletrobras posted a net income of R$ 1,347 million, 178% higher than the net income of R$ 484 million obtained in the first quarter of 2018 (1Q18). Profit for 1Q19 is comprised of Net Income from continuing operations of R$ 1,570 million and Net Loss of R$ 223 million related to discontinued operations (distribution).

 

Net Operating Revenue grew by 6%, from R$ 6,084 million in 1Q18 to R$ 6.452 million in 1Q19. EBITDA increased by 15%, from R$ 2,544 million in 1Q18 to R$ 2,937 million in 1Q19.

 

Managerial Net Operating Revenue increased 5%, from R$ 6,080 million in 1Q18 to R$ 6,356 million in 1Q19. Ebtida proforma decreased 6%, from R$ 3,252 million in 1Q18 to R$ 3,073 million in 1Q19, influenced by the lower result of equity investments.

 

The highlights of 1Q19 are presented below:

1Q19 HIGHLIGHTS

»Net Operating Revenue of R$ 6,452 million, influenced by RBSE of R$ 1.1 billion; GAG improvement of R$ 250 million and early supply of CCEAR of Amazonas GT;

»EBITDA in the amount of R$ 2,937 million and Managerial EBITDA in the amount of R$ 3,073 million in 1Q19;

»Net Debt / Management EBITDA at 03/31/2019 = 2.2

»Gains from the sale by Chesf of the SPEs of the Senta Sé I, II and III Wind Complexes in the amount of R$ 183 million;

»Impact on the result of R$ 170 million related to the provision for the Consensus Dismissal Plan (PDC) in 2019;

»Provisions for Contingencies in the amount of R$ 293 million, with emphasis on the provision related to the compulsory loan of R$ 220 million;

»Reversal of Onerous Contract of R$ 95 million;

»Provision Aneel CCC in the amount of R$ 65 million;

»Adjustment to fair value of RBSE lower by R$ 150 million due to NTN-B variation, with impact on the financial result;

»Net income from discontinued operations (distributors) of R$ 223 million, of which R$ 1,176 million was the loss of Amazonas D, partially offset by the R$ 94 million profit from Ceal and the result of the sale of Ceal from R$ 859 million.

R$ Million

 

 

 

 

1Q19

1Q18

%

Energy Sold - Generation GWh (1)

17.2

17,0

1.2%

Gross Revenue

7,917

7,240

9%

Managerial Gross Revenue (2)

7,821

7,235

8%

Net operating revenue

6,452

6,084

6%

Managerial Net Operating Revenue (2)

6,356

6,080

5%

EBITDA

2,937

2,544

15%

EBITDA Managerial (3)

3,073

3,252

-6%

Net Income from Continuing Operations

1,570

2,394

-34%

Net Profit

1,347

484

178%

Investiments

501

876

-43%

 

(1) Does not consider the energy allocated for quotas, from the plants renewed by Law 12.783 / 2013; (2) Adjustments referring to change of methodology by IFRS 15 in the accounting of Proinfa; (3) Excludes item (2) and Extraordinary Retirement Plan (SAP), Consensual Dismissal Plan (PDC), expenses with independent research, research findings, reimbursement to Enel by TUSD Eletronuclear, provisions for contingency, onerous contracts, Impairment , Provision for losses on investments, Provision for Losses on Investments classified as held for sale, Provisions for adjustment to market value, Provision relative to the rate of inspection of water resources (TFRH), Provision ANEEL CCC; (4) Excludes item (3) and monetary restatement for compulsory and IRPF provision for RBSE.

 

2


 

 

 

ANALYSIS OF CONSOLIDATED RESULTS (R$ million)

DRE

1Q19

1Q18

Generation Revenue

5,622

4,524

Transmission Revenue

2,061

2,564

Other Recipes

234

152

Gross Revenue

7,917

7,240

Deductions from Revenue

-1,465

-1,155

Net Operating Revenue

6,452

6,084

Operational costs

-1,289

-1,101

Personal, Material, Services and Others

-2,046

-2,259

Depreciation and amortization

-428

-417

Operational Provisions

-523

-586

 

2,166

1,721

Shareholdings

343

405

 

2,509

2,126

Financial Result

-322

1,023

Income Before Tax

2,187

3,150

Income tax and social contribution

-617

-756

Net Income From Continuing Operations

1,570

2,394

Net Loss on Taxes of Discontinued Operations

-223

-1,910

Net Income

1,347

484

 

 

DRE Managerial*

1Q19

1Q18

Generation Revenue Managerial

5,618

4,519

Transmission Revenue Managerial

2,061

2,564

Other Recipes Managerial

142

152

Gross Revenue Managerial

7,821

7,235

Deductions from Revenue

-1,465

-1,155

Net Operating Revenue Managerial

6,356

6,080

Operational costs Managerial

-1,286

-1,096

Personal, Material, Services and Others Managerial

-1,864

-1,971

Depreciation and amortization

-428

-417

Operational Provisions Managerial

-294

-165

 

2,485

2,430

Shareholdings Managerial

160

405

 

2,645

2,835

Financial Result Managerial

-194

84

Managerial income before tax

2,451

2,919

Income tax and social contribution

-617

-756

Managerial net income

1,834

2,163

* Adjustments referring to change of methodology by IFRS 15 in accounting for Proinfa; expenses with independent research, Impairment, onerous contracts, reimbursement to Enel for TUSD Eletronuclear, provisions for contingencies, provision for losses on investments, Provision for losses on investments classified as held for sale, provisions for adjustment to market value, (TFRH), ANEEL CCC Provision, Disposal of CELG D, impact of agreement with Eletropaulo, monetary restatement of compulsory loans, Extraordinary Retirement Plan (SAP), Consensus Dismissal Plan (PDC), Reversal of Provision GSF, Provision of Pará Rate relative to Eletronorte and provision for IRPJ / CSLL related to RBSE.

 

3


 

 

 

I.1 Main variations of DRE

Variations of the DRE (2018 x 2017)

1Q19 recorded a variation of 178% in relation to 1Q18, with a net income of R$ 1,347 Million in 1Q19, compared to a net profit of R$ 1,484 Million in 1HQ18, especially due to the following factors .

Receitas Operacionais

 

Generation Revenue

1Q19

 1Q18

%

Variation

Supply of energy for distribution companies

3,798

2,930

29.6

The variation was mainly due to: (i) revenues from the independent producers PIES and four gas plants that were received from Amazonas Distribuidora after the unbundling took place in December 2018 and the supply of CCEAR by Amazonas GT began.

Supply of energy for final consumers

561

520

7.8

This variation was mainly due to the following reasons: (i) in the subsidiary Furnas, resulting from the readjustment of 3.73% of existing contracts as provided for in Law 13182/15 and an increase of R $ 24 million in new contracts in effect due to auctions held in compliance with said law; in the subsidiary Chesf, readjustment of the contracts with industrial consumers served by Sobradinho UHE.

CCEE (short term)

365

449

-18.8

The variation is mainly due to the following reason: (i) In the subsidiary Eletronorte, despite a positive change of 4% in the amount of energy settled, there was a reduction in revenue due to the decrease in the price of energy settled at CCEE (1Q19 R $ 89, 96 / MWh and 1Q18 R $ 179.65 / MWh);

Operating and Maintenance Revenue - Renewable Power Plants by Law 12,783

841

533

57.7

The variation is mainly due to the following reasons: (i) Annual update published through ANEEL Resolution 2421; (ii) Review of the GAG calculation methodology for the 2018-2019 cycle, with an increase in the value of total GAG with recognition of GAG improvement of R$ 250 million;

Construction Revenue

4

4

-14.4

The reduction reflects the lower level of investment made in 2019. It has an equivalent amount in construction expenses and, therefore, no effect on results.

Transfer Itaipu (see II.3.a)

54

87

-38.0

The variation was mainly due to the variation of the tariff on which the monetary adjustment calculated on the basis of the US Commercial Price and Industrial goods price indices is affected, as well as the recognition of the interministerial ordinance that determines the revenues of Itaipu.

TOTAL GENERATION REVENUES

5,622

4,524

24.3

The variation was mainly due to the factors explained above.

(-) Construction/Proinfa

-4

-4

-14.4

 

GENERATION REVENUES MANAGERIAL

5,618

4,519

24.3

 The variation was mainly due to the factors explained above.

 

Transmission Revenues

1Q19

1Q18

%

Variation

Revenue from Operation and Maintenance

(LT Renovated Law 12.783 / 2013)

643

842

-23.6

The variation is mainly due to the following reason: (i) In the subsidiary Eletronorte, revenues in the revolving revenue decreased by R $ 27 million, mainly due to the reduction in the homologated revenue of the 2018/2019 cycle in relation to the cycle 2017/2018, in view of the application of Ordinance MME 120/2016; (ii) in the subsidiary Eletrosul, the calculation adjustment portion for the 2017/2018 cycle was calculated with the total annual discount of R $ 26.2 million, while for the 2018/2019 cycle the annual discount of R $ 60 , 6 million and the prepayment rate, which measures the deficit and the surplus of the system, recorded a negative result in 1Q19 (-R $ 1.5 million), in contrast to the 1Q18 surplus (R $ 16.7 million ); (iii) the effect of eliminating, in the consolidated, transactions between companies of the group of approximately R $ 131 million in 1Q19.

O & M Revenue

197

133

48.2

The variation is mainly due to the following reasons: (i) Increase in revenue due to the start-up of reinforcements and improvements; (ii) increase in the installments of RAP due to the IPCA readjustment; and (iii) in the subsidiary Eletrosul, consolidation, as of September 2018, of SPE TSBE, implying an increase in revenue of R $ 16.8 million.

 

4


 

 

Construction Revenue

112

150

-25.1

The variation is mainly due to the following reasons: (i) in 2019 there is a smaller volume of investments compared to the previous year;

Finance - Return on Investment - RBSE

913

1,194

-23.6

Remuneration of the financial assets of the Basic Network of the Existing System (RBSE) for the transmission lines renewed in accordance with Law 12,783 / 2013, and the decrease in remuneration between the periods is due to the beginning of the monthly amortization of assets, which began in August 1H17.

 

Return Rate Updates

196

244

-19.7

The variation is mainly due to the following reasons: (i) amortization of the balance considering that the current calculation methodology considers a fixed rate of remuneration for each concession agreement. As the level of new investment inflows has been low, a reduction in the compensation base is expected.

TOTAL TRANSMISSION REVENUE

2,061

2,564

-19.6

The variation was mainly due to the factors explained above.

 

 

 

 

 

 TRANSMISSION MANAGERIAL REVENUE

2,061

2,564

-19.6

The variation was mainly due to the factors explained above.

 

TRNSMISSION REVENUE MANAGERIAL

2,061

2,564

-19,6

Changes in the  Managerial adjustments are almost: (i) Excluding construction revenue, as in previous years, due to the application of IFRS 15, the accounting method was no longer the same transmission construction expenses, as occurs in generation; (ii) inclusion in the  Managerial revenue of RBSE values in order to maintain a protocol similar to that considered in the covenants of the debentures that will be issued by the Company, as disclosed to the market.

 

 

Other Recipes

1Q19

1Q18

%

Variation

Other Recipes

234

152

53.3

Recognition of R $ 92 million of the resources destined to the financing of the Plan for the Application of Proceedings of Procel PAR / 2018, which refer to the period from May 2017 to April 2018, according to the authorization contained in ANEEL Order 3183/19, of 12/27/2018.

(-) Procel  Retroactive

-92

0

-

 

OTHER REVENUE PRÓ FORM

142

152

-7.1

 

Operating Costs and Expenses

 

OPERATIONAL COSTS

1Q19

1Q18

%

Variation

Energy purchased for resale

-435

-395

10.0

The variation was mainly due to: (i) In the subsidiary Amazonas GT, the purchase of energy from the independent producers PIES in the 1st Quarter of 2019 and treated, for the purposes of IFRS, as Leasing Commercial Leasing (PIES); (ii) In the subsidiary Furnas, variation in the negative result in the CCEE increased R $ 39 million, due to factors such as GSF, seasonality, price difference between submarkets and variation in the portfolio of purchase contracts.

Charges on the use of electricity

-210

-335

-37.4

The variation is mainly due to the effect of the consolidation of operations between companies in the group of approximately R$ 328 million.

Fuel for cars of electricity

-530

-172

207.8

The variation is mainly due to the higher consumption of gas by Amazonas GT, related to Mauá 3 and other 4 gas plants and by PIES independent producers.

Construction

-115

-198

-42.0

The variation is mainly due to: reduction of the investment value for Contract 062/2001 of the subsidiary Furnas, in the order of R$ 30 million.

OPERATING COSTS

-1,289

-1,101

17.1

Variation was mainly due to the factors explained above.

(-)Construction of Generation Projects

4

4

-14.4

Transmission construction expenses, considering the impact of IFRS 15 on transmission construction revenue, began to be considered in the pro forma cost, due to the new accounting showing the net margin. The same rule does not apply to generation revenue that remains equal to expense and, therefore, no effect for result

OPERATING COSTS MANAGEMENT

-1,286

-1,096

17.3

Variation was mainly due to the factors explained above.

5


 

 

 

OPERATING EXPENSES

1Q19

    1Q18

    %

Variation

Personel

-1,314

-1,485

-11.5

The variation was mainly due to the cost reduction policy established by the Company, with PAE, PDC, hazardous and overtime, which offset the 1.69% adjustment of ACT 2019/2019.

Material

-30

-62

-51.1

The variation was mainly due to the Angra 2 stop at IT18, and in 2019 occurred on 04/22/2019; and (ii) In the subsidiary CGTEE, reduction in material due to the non-consumption of lime due to the overhaul stoppage.

Services

-477

-425

12.3

The variation was mainly due to: (i) the increase of services by the subsidiary Chesf of approximately R $ 34 million; (ii) Increased maintenance costs of Power Plants, especially UTE Mauá 3, by the subsidiary Amazonas GT (R $ 6 million); (iii) in CGTEE, due to the increase in consulting and services to perform overhaul.

Others

-225

-288

-21.7

The variation was mainly due to (i) the reversal of the Amazonas GT, in particular increase in the item of Recovery of Expenses with the CCC with the Gas Contract with Petrobras; (ii) at Eletronorte, a reduction of R $ 26 million in rent from UTE Araguaia resulting from the decision of the National Energy Policy Council and Aneel's decision authorizing Eletronorte to demobilize the UTE, which caused the thermoelectric plant to be unleashed.

Depreciation and amortization

-428

-417

2.6

There is no relevant variation.

Operating Provisions / Reversals

-523

-586

-10.8

The variation is mainly explained by: (i) Provision for Contingencies in the amount of R $ 299 million, influenced by provisions related to the compulsory loan (R $ 220 million); and (ii) Provision in Holding PCLD Ceal and Ceron R $ 178 million. The main operating provisions are detailed below (see Note 37)

OPERATING EXPENSES TOTAL

-2,997

-3,262

-8.1

The variation was mainly due to the factors explained above.

Consensual Dismissal Plan (PAE/PDC)

170

272

-37.7

 

Independent Investigation Expenses

13

16

-18.0

 

Contingencies

293

299

-1.9

 

Onerous Contracts

-94

-239

-60.6

 

Provision / (Reversal) for Losses on Investments

-85

7

-1.268.6

 

Provision for losses on investments classified as held for sale

50

0

-

 

Long-Term Asset Impairment

0

204

-100.0

 

ANEEL Provision - CCC

65

0

-

 

Adjustment to Market Value

0,0

0,1

-100.0

 

Water Resources Inspection Fee (TFRH) - Para Fee

0

150

-100.0

 

Operating Expenses Managerial

-2,585

-2,554

1.2

The variation was mainly due to the factors explained above.

         

 

Shareholdings

 

Shareholdings

1Q19

1Q18

%

Variation

Shareholdings

343

405

-15.3

The variation was mainly due to the worse results of the SPEs: Norte Energia; MESA, BMTE, Energia Sustentável do Brasil and holding companies.

(-) Gain Dist / Disposal SPEs

-183

0

-

 

Shareholdings Management

160

405

-60.5

 

 

 

 

6


 

 

Financial Result

 

RESULTADO FINANCEIRO

1Q19

1Q18

%

Variation

Interest Income and Financial Income

371

1,629

-77.2

The variation was mainly due to the agreement in 1Q18 with Eletropaulo in the amount of 1,064 million.

Net Monetary Update

95

-100

195

The variation was mainly due to: (i) Monetary restatement of CCC credits in the amount of R$ 87 million; (ii) In the subsidiary Chesf, movement of judicial deposits, with consequent registration of monetary restatement; (iii) Monetary adjustment of INSS and ISS tax losses in R$ 12 million.

Net Foreign Exchange Variation

63

-41

253

The variation is mainly due to (i) the subsidiary Eletronuclear, with gains obtained from the exchange variation resulting from the downgrading of payments to Angra 3 suppliers made in 2014, recorded due to the delivery of equipment; (ii) in the subsidiary Eletronorte arising from the exchange variation resulting from the agreement with Corpoelec; (iii) in the subsidiary Eletrosul, gained from the exchange variation of the financing contract in Euro.

Debt Charges

-694

-629

-10.3

The variation was mainly due to the consent fee paid to the bondholders by the holding company and the increase in the debt balance of Amazonas GT.

Interest Income and Financial Income

-64

-61

-6

There is no relevant variation.

Other financial results

-93

225

-141

The variation is fragmented in several small accounts, mainly due to the lower variation resulting from the fair value adjustment of the RBSE, in accordance with IFRS 9, having been R $ 338 million in 1Q19 and R $ 188.4 million in 1Q19, due to the variation of the NTN-B rate used to calculate the fair value.

TOTAL FINANCIAL INCOME

-322

1,023

-131.5

The variation was mainly due to the factors explained above.

(-) Agreement Eletropaulo

0

-1,064

-100.0

 

(-)Monetary adjustment of compulsory loans

128

125

2.4

 

MANAGEMENT FINANCIAL RESULT

-194

84

-332.0

The variation was mainly due to the factors explained above.

 

 

Income Tax and Social Contribution (CSLL)

 

IMPOSTO DE RENDA E CSLL

 1Q19

  Q18

   %

Variation

Income Tax and social contribution

-617

-756

-18

The variation is mainly due to the collection of IRRF on the amounts of the agreement with Eletropaulo in 1Q18.

(-) IRRF RBSE

0

0

-100.0

 

Income Tax and Managerial Social Contribution Managerial

-617

-756

-18

 

 

Discontinued Operations

 

DISCONTINUED OPERATIONS

1Q19

1Q18

%

Variation

Net operating revenue

1,649

2,054

-20%

 

Operational costs

(1,541)

(2,039)

-24%

 

Operational expenses

(709)

(1,166)

-39%

 

Financial Result

(337)

(728)

-54%

 

Disposal of Investments (discontinued operation)

(859)

-

-

 

Income tax and social contribution expense

(143)

(32)

347%

 

Profit (loss) on discontinued operations

(223)

(1,910)

-88%

 

7


 

 

I.2 Sale of Energy 

  

I.2.1  Energy Sold in 9M18  - Generators – TWh

 

In terms of the evolution of the energy market, Eletrobras Companies sold 17.2 TWh of energy in 1Q19 against 17.0 TWh in the same period of the previous year, representing a growth of 1.6%.

 

 

 

(1) Power plants renewed by Law 12,783 / 13 - quotas

(2) Operating plants: ACR and ACL sales

(3) The Company acts as an agent for the sale of electricity from Itaipu. The sold energy revenues presented above are not part of Eletrobras' sales revenues mentioned in the Financial Statements

 

I.3 Impairments and Onerous Contracts

 

 

Acumulated

Moviment

Impairment

03/31/2018

03/31/2019

1Q19

Generation

7,155

7,155

0

UTN Angra 3

4,047

4,047

0

UTE Santa Cruz

732

732

0

UHE Batalha

377

377

0

Candiota Fase C

69

69

0

Others

2,308

2,308

0

Administration

264

264

0

 

 

 

Total

7,155

7,155

0

       

 

Onerous Contracts

BALANCE ON 03/31/2018

BALANCE ON  03/31/2019

Movimentação

1Q19

Geração

 

 

 

Santa cruz

160

66

93

Funil

249

248

1

Coaracy Nunes

102

102

0

Angra 3

0

0

0

Others

31

31

0

TOTAL

541

447

94

 

Negative signs mean provisions and positive reversals.

 

8


 

 

 

 

 

I.4 Consolidated EBITDA

 

EBITDA

1Q19

1Q18

(%)

Net Income (Loss) for the Year

1,347

484

178%

Net Loss from Taxes on Discontinued Operations

-223

-1,910

-88%

Result for the Year

1,570

2,394

-34%

 + Provision for Income Tax and Social Contribution

617

756

-18%

 + Financial Result

322

-1,023

-131%

 + Amortization and Depreciation

428

417

3%

 = EBITDA

2,937

2,544

15%

Adjustment

 

 

 

(-) Procel Retroactive

-92

0

-

(-) Retirement Plan. Extraordinary (PAE) / Consentual Dismissal Plan (PDC)

170

272

-38%

(-) Expenditure Independent research

13

16

-18%

(-) Earnings from Selling SPEs

-183

0

-

(-) Contingencies

293

299

-2%

(-) Onerous contracts

-94

-239

-61%

(-) Provision / (Reversal) for Losses on Investments

-85

7

-1269%

(-) Provision / (Reversal) for Losses on Investments classified as held for sale

50

0

-

(-) Impairment

0

204

-100%

(-)Provision ANEEL CCC

65

0,0

-

(-) Adjustment to market value

0,0

0,1

-100%

(-) Water resources inspection fee (Para Rate)

0

150

-100%

=  EBITDA MANAGERIAL 1

3,073

3,252

-6%

 

In 1Q19, the Company started to consider, in its pro forma EBITDA, the revenue from RBSE in order to maintain a protocol similar to the debenture covenants to be issued.

 

Consolidated Result by Segment of Continuing Operations

 

 

 

 

03/31/19

 

 

 

DRE by Segment

Administration

Generation

Transmission

Elimination

Total

Operating System

O & M Regime

Operating System

Regime de O&M

 Net operating revenue

47

4,101

704

981

1,027

(408)

6,452

 Operating Costs and Expenses

(793)

(2,343)

(553)

89

(1,094)

408

(4,286)

 Operating Income Before Financial Result

(746)

1,758

151

1,069

(67)

-

2,166

 Financial Result

236

(382)

(30)

(51)

(95)

-

(322)

 Results of equity investments

343

-

-

-

-

-

343

Income tax and social contribution

(159)

(371)

(63)

(260)

235

-

(617)

 Net Income (loss) for the period

(326)

1,005

59

758

73

-

1,570

               

 

 

 

03/31/18

 

 

 

DRE by Segment

Administratio

Geração

Transmissão

Elimination

Total

O & M Regime

Regime de O&M

O & M Regime

Regime de O&M

 Net operating revenue

46

3,422

437

298

2,070

(200)

6,072

 Operating Costs and Expenses

(667)

(2,084)

(480)

(242)

(1,090)

200

(4,363)

 Operating Income Before Financial Result

(621)

1,338

(44)

56

979

-

1,709

 Financial Result

1,393

(404)

(26)

(94)

(184)

-

685

 Results of equity investments

354

-

-

-

-

-

354

Income tax and social contribution

(493)

(218)

(35)

10

53

-

(683)

 Net Income (loss) for the period

633

716

(104)

(28)

848

-

2,065

               

 

The adjustments made to Managerial EBITDA refer to non-recurring events or events that are expected to be treated under PDNG 2019-2022 and therefore are expected not to affect the Company's future cash flow. However, there are risks and uncertainties related to the Company's business, such as, but not limited to, general economic, regulatory, political and commercial conditions in Brazil and abroad, variations in interest rates, inflation and value of the Real, changes in volumes and standards of consumer energy use, competitive conditions, payments related to our receivables, changes in rainfall and water levels in the reservoirs used to operate our hydroelectric power plants, our financing and capital investment plans, existing and future government regulations , and other risks described in our annual report and other documents filed with the Securities and Exchange Commission and the Securities and Exchange Commission of the United States of America that may change those estimates and expectations of the Administration. Thus, future results of the Company's operations and initiatives may differ from current expectations and the investor should not rely solely on the information contained herein.

9


 

 

 

I.5 Net debt

 

Net Debt

03/31/2019

12/31/2018

GROSS DEBT (1) – R$ million

     54,204

54,841

(-) RGR of Other companies (2)

        2,163

1,950

(-) RGR of Amazonas Managerial (3)

       1,073

1,370

(-) Purchase of Shares with RGR resources (4)

    539

535

Managerial gross debt

       50,430

50,986

(-) (Cash and Cash Equivalents + Securities)

        8,458

7,285

(-) Financing Receivable (discounted RGR from Others) (2)

     12,139

11,925

(+) Receivables from RGR Amazonas Managerial (3)

1,073

1,370

(-) Financing Receivable RGR Amazonas Managerial (3)

1,073

1,370

(-) Financ. Remaining RO (AmD)  Managerial (5)

2,010

3,521

(-) Net balance of Itaipu Financial Asset

2,101

2,157

Managerial  Net Debt

         25,722

26,098

1. Due to the reclassification of Amazonas D to "Assets available for sale", the debt corresponding to the repurchased suppliers, which will be assumed by Eletrobras, was reclassified to consolidated loans and financing, impacting the Company's gross debt. According to the decision of the 170th Extraordinary Shareholders' Meeting, Eletrobras will only begin to assume these debts, with the effective transfer of control of Amazonas D;

2. Pro forma debt and receivables related to financing granted by RGR, owed by companies outside the Eletrobras group, including Ceron, Eletroacre, Boa Vista, Cepisa and Ceal, were transferred, since Eletrobras , is only debt manager.

3. The proceeds of financing from RGR, owed by Amazonas, were excluded pro forma, since Eletrobras, after the transfer of this company, will not be responsible for this debt, under the terms of item 2. RGR receivables due to Amazonas are not consolidated in the credits receivable and, therefore, the entry and exclusion of said credits are being excluded.

4. RGR liabilities related to the federalization of the CEAM Distributor, incorporated by Amazonas D, and to the purchase of Celpa's shares, to be paid pursuant to Articles 21-A and 21-B of Law 12,783 / 2013;

5. Financing Agreements signed, to be paid by Amazonas (R $ 2,010 million) to Eletrobras when they are transferred, including Pro Forma. Disregard other rights.

 

10


 

 

Analysis of the Results of the Parent Company

In 1Q19, Eletrobras Holding reported a net income of R$ 1,398 Million, an increase of 205% compared to the net income of R$ 458 Million recorded in 1Q18.

This 1Q19 result was decisively influenced by: (i) Results of Corporate Equity, of R$ 1,987 Million, mainly influenced by the results of the subsidiaries and by the effect on the disposal of equity interests; (ii) Overdraft liabilities in subsidiaries in the amount of R$ 16 Million, mainly by CGTEE (R$ 148 Million) partially offset by Amazonas GT (R$ 132 Million); and (iii) Provisions for legal contingencies, in the amount of R$ 104 Million, mainly due to provisions related to compulsory loan lawsuits in the amount of R$ 220 Million (See Note 23 to the Financial Statements of 2019).The following chart presents a comparison of Eletrobras holding results between 1Q18 and 1Q19.

 

Evolution of Results - R$ million

 


Nota: A análise dos resultados de cada subsidiária encontra-se no anexo.

 

11


 

 

II.1 Shareholdings of the Parent Company

In 1Q19, the result of Corporate Interest positively impacted the Company's results by R$ 1,989 Million, mainly as a result of Equity in results of investments in subsidiaries, as shown below:

 

 

R$ million

 

Parent Company

 

 1Q19

 1Q18

 Investments in subsidiaries

 

 

 Equity

1,893

1,246

 

 

 

Investments in associates

 

 

Equity

96

229

 

 

 

 Total

1,989

1,475

 

II.2  Commercialization of Electric Power of the Parent Company

a.Itaipu Binacional

 

FINANCIAL RESULT OF ITAIPU   

 

 

 

 

 

 

 

 

 

 

1Q19

Sale of Energy Contract Itaipu + CCEE

 

 

 

 

2,955

Revenue originating from the Right of Reimbursement (1)

 

 

 

 

195

Others

 

 

 

 

37

Total Revenue

 

 

 

 

3,187

 

 

 

 

 

 

Purchase of Energy Contract Itaipu + CCEE

 

 

 

 

-2,763

Expenses Originating from the Compensation Obligation (2)

 

 

 

 

-136

Itaipu repayment

 

 

 

 

-46

Others

 

 

 

 

-189

Total Expenses

 

 

 

 

-3,134

 

 

 

 

 

 

Net operating revenue  - Transfer of Itaipu

 

 

 

 

54

 

         

ITAIPU RESULTS (Price indexes)

 

 

 

 

 

 

 

 

 

 

1Q19

Revenue originating from the Right of Reimbursement (1)

 

 

 

 

195

+ Foreign Exchange Result

 

 

 

 

26

Result from the Right of Reimbursement (RD)

 

 

 

 

221

Expenses Originating from the Compensation Obligation (2)

 

 

 

 

136

+ Foreign exchange result

 

 

 

 

18

Resultado originário das Obrigações de ressarcimento (RO)

 

 

 

 

154

Balance: RD – RO

 

 

 

 

67

 

a.1        

(see explanatory note 17.1.1 of the Financial Statements of 1Q19)

 

 

Pursuant to Law 11,480 / 2007, the adjustment factor for the financing agreements entered into with Itaipu Binacional and the loan assignment contracts entered into with the National Treasury, as from 2007, was withdrawn. flow of revenues.

As a result, Decree 6,265, dated November 22, 2007, regulating the commercialization of Itaipu Binacional's electricity, was defined, defining the differential to be applied in the transfer rate, creating an asset related to the portion of the annual differential calculated, equivalent to an annual adjustment factor withdrawn from financing, to be included annually in the transfer rate, as of 2008, practiced by the Company, preserving the flow of resources, originally established.

12


 

 

Thus, as of 2008, the differential resulting from the withdrawal of the annual adjustment factor, whose values ​​are defined annually through an interministerial ordinance of the Ministries of Finance and Mining, was included in the rate of transfer of power from Itaipu Binacional, and Energy. The balance resulting from the adjustment factor of Itaipu Binacional, included in the Financial Assets caption, presented in Non-current Assets, amounted to R$ 4,774,301 on March 31, 2019, equivalent to US$ 1,225.217 (R$ 4,553,380 on December 31, 2018, equivalent to US$ 1,175,126). The amount of R$ 4,327,495, equivalent to US$ 1,040,100 will be transferred to the National Treasury until 2023, as a result of the credit assignment operation carried out between the Company and the National Treasury in 1999. These amounts will be realized through its inclusion in the transfer fee to be practiced until 2023.

Therefore, considering that the Itaipu Financial Asset is a remuneration derived from the financing agreement granted by Eletrobras to Itaipu, the amount of the Financial Asset to be received by Eletrobras is being considered, as a discount, in the calculation of the Net Debt.

 

II.3  Operational Provisions of Parent Company

 

In 1Q19, Operating Provisions had a negative impact on the Parent Company's result of R$ 351 million, compared to a provision of R$ 324 million in 1Q18. This variation is mainly explained by the increase in PCLD in the amount of R$ 178 million in 1Q19, compared the reversion of R$ 5 million in the same period of 1Q18. The table below shows the changes in Operating Provisions:

 

R$ Million

Operational Provisions

Parent company

 

 

1Q19

1Q18

Garanties

-12

-14

Contingencies

104

204

PCLD - Consumers and Resellers

0

0

PCLD - Financing and Loans

178

5

Short-term liabilities in subsidiaries

16

-39

Onerous Contracts

0

0

Provision / (Reversal) for Losses on Investments

0

0

Provision for losses on classified investments

0

0

Impairment

0

0

ANEEL Provision - CCC

65

0

Adjustment to Market Value

0

0

Pará Fee

0

0

Others

0

166

 

351

324

     

 

MUTATION PROVISION FOR DISCOVERED LIABILITIES - PARENT COMPANY

Balance on 12/31/2018

Equity

Balance o 03/31/2019

CGTEE

3,546

148

3,693

Amazonas GT

338

-132

206

TOTAL PROVISION FOR PASSIVE DISCOVERED

3,884

16

3,899

 

 

 

 

13


 

 

 

II.4   Financial Results of Parent Company

                                                                  

In 1Q19, Financial Result had a negative impact on the Parent Company's result of R$ 234 million compared to R$ 1,391 million in 1Q18. This variation is mainly explained by the reduction in the amount recorded in interest, commissions and fees, as well as increase in expenses on debt charges for the sale of the Distributors, as shown below:

FINANCIAL RESULT                                                                                                                                                                                                                 

 

R$ Million

 

1Q19

1Q18

Financial income

 

 

Interest income, commissions and fees

589

1,768

Revenue from short-term investments

58

104

Moratorium surcharge on electricity

0

2

Net Monetary updates

173

28

Net Exchange rate variations

28

-16

Other financial income

48

50

 

 

 

Financial Expenses

 

 

     Debt charges

-489

-358

     Lease charges

-2

0

     Charges on shareholders' funds

-59

-58

     Other financial expenses

-111

-129

 

234

1,391

 

Evolution of the IGP-M and Dollar (%)

 

The main indexes of financing and onlendings contracts had the following variations in the periods:

 

1Q18

1Q19

Dólar

0.48%

0.57%

IGPM

1.48%

2.16%

 

 

III. General information

 

Portfolio of Receivables and Payables

a.    Financing and Borrowing Granted 

The financing and loans granted are made with the Company's own resources, as well as sector resources and external resources raised through international development agencies, financial institutions and arising from the launch of securities in the international financial market.

Loans and loans granted to the parent company, with a currency adjustment clause, represent approximately 29% of the total portfolio (30% at December 31, 2018). Those that foresee an update based on indices that represent the domestic price level in Brazil amount to 71% of the portfolio balance (70% on December 31, 2018).

The market values ​​of these assets are close to their book values, since they are specific operations of the sector and are formed, in part, by resources of Sectoral Funds and that do not find similar conditions as a parameter of valuation to market value.

The long-term portions of the loans and financing granted, based on the contractual cash flows, mature in variable installments, as shown below:

 

 

14


 

 
             

R$ Million

 

2019

2020

2021

2022

2023

After 2023

Total

Parent Company

                             1,851

                            4,446

                                    4,495

                                    2,950

                                     1,764

                                    2,880

                                18,387

Consolidadated

                            3,092

                             2,651

                                    2,829

                                       585

                                       538

                                        169

                                 9,863

 

Payable Financing and Loans 

 

Debts are guaranteed by the Federal Government and / or Eletrobras, are subject to charges, whose average rate in March 2019 is 6.38% pa. (6.4% pa in 2018), and have the following profile:

 

Parent Company

 

 

Consolidadated   

 

03.31.2019

 

12.31.2018

 

03.31.2019

 

12.31.2018

Balance in

R$ Million

%

 

Balance in R$ Million

%

 

Balance in R$ Million

%

 

Balance in R$ Million

%

Foreign currency

 

 

 

 

 

 

 

 

 

 

 

USD

11,378

42%

 

11,285

41%

 

11,378

21%

 

11,285

21%

USD with Libor

671

2%

 

698

3%

 

1,058

2%

 

1,079

2%

EURO

243

1%

 

245

1%

 

243

1%

 

245

0%

IENE

-  

0%

 

-  

0%

 

-  

0%

 

-  

0%

Others

-  

0%

 

-  

0%

 

-  

0%

 

-  

0%

Subtotal

12,292

45%

 

12,227

44%

 

12,678

24%

 

12,608

23%

 

 

 

       

 

 

 

 

 

Local currency

  

 

       

 

 

 

 

 

CDI

4,720

17%

 

5,092

18%

 

10,382

19%

 

10,649

20%

IPCA

-  

0%

 

-  

0%

 

142

0%

 

190

0%

TJLP

-  

0%

 

-  

0%

 

6,408

12%

 

6,515

12%

SELIC

4,516

17%

 

4,513

0%

 

13,235

25%

 

13,279

24%

Others

-  

0%

 

-  

0%

 

4,439

8%

 

3,621

7%

Subtotal

9,236

34%

 

9,605

35%

 

                  34,606

64%

 

34,254

63%

 

 

 

       

 

 

 

 

 

Not indexed

5,731

21%

 

5,803

21%

 

6,445

12%

 

7,511

14%

 

 

 

       

 

 

 

 

 

TOTAL

27,259

100%

 

27,635

100%

 

53,729

100%

 

54,373

100%

                       

* This amount includes the debt of other companies outside the Eletrobras System with RGR in the amount of R $ 1,950 Million, as well as in Amazonas and Ceal with RGR, in the amount of R $ 1,370 Million, since Eletrobras acts as manager of RGR and has a counterpart in assets.

 

The long-term portion of loans and financing matures as scheduled:

 

 

 

2020

2021

2022

2023

2024

After 2024

Total

Controladora

             3,073

                  9,462

                    2,171

                     950

                  866

                  4,055

              20,576

Consolidado

                  6,823

                12,337

                    4,929

                  3,971

               2,646

                11,748

              42,454

 

 

 

15


 

 

Ratings

 

Agency

National

Classification/ Perspective

Latest Report

Moody’s BCA

“B1”: / Stable

10/03/2019

Moody’s Senior Unsecured Debt

“Ba3”: / Stable

10/03/2019

Fitch - Issuer Default Ratings (Foreign Currency)

“BB-”: / Stable

06/14/2019

Fitch - Issuer Default Ratings (Local Currency)

“BB-”: / Stable

06/14/2019

Fitch - Senior Unsecured Debt Rating

“BB-”

06/14/2019

S&P LT Local Currency

“brAAA”

04/25/2019

S&P - Senior Unsecured

"BB-"

04/25/2019

S&P LT Foreign Currency

“BB“ / Stable

04/25/2019

*CreditWatch

 

Eletrobras Organization Chart

 

 

 

 

1.

1. The number of SPEs is taking into account the direct and indirect interests in SPE, and disregarding the SPEs that participate in more than one Eletrobras Company, differently from the quantitative considered in the charts of each company. In this total, 02 SPEs abroad are included. INTESA was not considered, which had the sale process concluded on 12/28/2019, from Auction nº 01/2019, and West Coast and Marumbi, which were transferred from Eletrosul to Copel, through an exchange. Of the 172 national SPEs, 70 are in the process of divesting; 25 SPEs in process of sale from Auction nº 01/2019; 45 SPEs in the process of being sold during the year 2019 (44 in Holding and 01 in Chesf, by proxy).

2.

2. Ceal and Amazonas were sold at auctions held in December 2019, but Amazonas has not yet transferred its control, and Ceal was transferred on March 18.

 

 

 

16


 

 

 


Investiments

 

NATURE OF INVESTMENTS

 

 

Budgeted
2019

   Realized
1Q19

            (%) 1Q19

 Generation

1,248,6

37.4

3%

 Transmission

1,411,3

95.6

7%

 Distribution

 

 

 

 Maintenance – Generation

836,6

155.7

19%

 Maintenance - Transmission

735,2

22.3

3%

 Maintenance - Distribution

 

 

 

Other (Research, Infrastructure and environment)

450,1

30.6

7%

 Total Corporate

4,681,8

341.7

7%

Financial Investments in SPEs

0,0

0.0

0%

 Generation

653,9

119.5

18%

 Transmission

369,4

40.1

11%

Total SPEs

1,023,3

159.7

14%

Total

5,705,0

501.3

8%

       

 

For further details of the investments, per subsidiary or by project, see appendix 3 to this Investor Report.

 

Share Capital

 

Structural of Social Capital

 

In 1Q19, the capital of Eletrobras was composed as follows:

Shareholders

Common

Pref. Classe “A

Pref. Class “B”

Total

Quantity

%

Quantity

%

Quantity

%

Quantity

%

União Federal

554,395,652

51%

0

0%

1,544

0%

554,397,196

41%

BNDESpar

141,757,951

13%

0

0%

18,691,102

7%

160,449,053

12%

BNDES

74,545,264

7%

0

0%

18,262,671

7%

92,807,935

7%

FND

45,621,589

4%

0

0%

0

0%

45,621,589

3%

FGHAB

1,000,000

0%

0

0%

0

0%

1,000,000

0%

OUTROS

269,729,841

25%

146,920

100%

228,481,566

86%

498,358,327

37%

Total

1,087,050,297

100%

146,920

100%

265,436,883

100%

1,352,634,100

100%

 

 

 

17


 

 

 


Stock Analysis

 

Actions

 

 

(R$)

(R$)

(pts.)

(pts.)

 

ELET3 B3

ELET6 B3

IBOV B3

IEE B3

Price and Volume

(Shares ON)

(Shares PN)

(Index)

(Índex)

Closing Price on 03/31/2018

36.69

   37.86

95415

57449

Maximum in the quarter

38.98

   40.96

99994

57850

Average in the quarter

34.61

   37.18

95810

54847

Minimum in the quarter

29.00

   32.26

91012

50699

 

 

 

 

 

Change in 1Q19

51.4%

34.4%

8.6%

16.6%

Change over the last 12 months

74.7%

57.1%

11.8%

38.6%

Average Daily Trading Volume 1Q19 (millions of shares)

4.9

3.0

   -  

   -  

Average Daily Trading Volume 1Q19 (R $ million)

167.1

   112.0

   -  

   -  

 

 

 

 

 

Net Income per Share in the Quarter (R $)

  1,00

  1,00

   -  

   -  

Net Asset Value per Share (R $)

42,46

   42,46

   -  

   -  

Price / Profit (P / E) (1)

   36,83

38,01

   -  

   -  

Price / Stockholders' Equity (B / W) (2)

  0,86

0,89

   -  

   -  

         

(1) Closing price of the preferred and common shares at the end of the period / Net Income per share. For the calculation, the accumulated net income of the last 12 months was considered;

(2) Closing price of the preferred and common shares at the end of the period / Asset Value per share at the end of the period.

 
         

 

 

Evolution of Traded Shares in B3

 

 

 

 

 

18


 

 

ADR Programs

 

 

 

(US$)

(US$)

 

NYSE

NYSE

Preço e Volume

EBRN

EBRB

Closing Price on 03/31/2018

  9.36

  9.66

Maximum in the quarter

10.51

   11.33

Average in the quarter

  9.20

  9.80

Minimum in the quarter

  7.55

  8.45

 

 

 

Change in 1Q19

47.4%

34.5%

Change over the last 12 months

47.4%

35.3%

Average Daily Trading Volume 1Q19 (millions of shares)

679.0

  39.8

Average Daily Trading Volume 1Q19 (US$ million)

6.2

0.2

 

 

Evolution of Traded Shares in ADR

 

 

 

19


 

 

 


Latibex - Madrid Stock Exchange

 

 

(€)

(€)

 

LATIBEX

LATIBEX

Price and Volume

XELTO

XELTB

Closing Price on 03/31/2019

8.40

8.25

Maximum in the quarter

9.15

9.60

Average in the quarter

8.11

8.42

Minimum in the quarter

5.70

6.85

 

 

 

Change in 1Q19

47.4%

38.7%

Change over the last 12 months

64.7%

25.0%

Average Daily Trading Volume 1Q19 (millions of shares)

  2.1

  1.9

Average Daily Trading Volume 1Q19 (Euro million)

   16.2

   11.0

 

 

Evolution of Foreign Currencies

 

 

 

 

20


 

 

 


Nº of employees

 

Parent Company

 

By time

 

By region

 

 

Working time at company (years)

 

 

 

 

 

 

             1Q19

Up to 5

 

 

 

 

 

 

21

6 to 10

 

 

 

 

 

 

356

11 to 15

 

 

 

 

 

 

211

16 to 20

 

 

 

 

 

 

58

21 to 25

 

 

 

 

 

 

14

more than 25

 

 

 

 

 

 

114

Total

 

 

 

 

 

 

774

 

 

State of the Federation

 

 

 

 

 

 

 

1Q19

Rio de Janeiro

 

 

 

 

 

752

São Paulo

 

 

 

 

 

1

Brasília

 

 

 

 

 

21

Total

 

 

 

 

 

774

 

 

Hired / Outsourced Labor

 

1Q19

0

 

 

Turnover (Holding)

 

1Q19

0.2%

 

 

21


 

 

 

Direct Partnerships in SPEs - Parent Company

 

 

Eletrobras closed the first quarter of 2019 with a total of 60 equity investments in Specific Purpose Companies (SPEs). Of this total, Eletrobras already had a corporate interest in 4 projects (Norte Energia SA, Mangue Seco 2, IGESA and ROUAR) and still has the participation in another 56 SPEs from the payment process between the subsidiaries and the holding company, all these were object of divestment through the Eletrobras Auction # 01/2019.

Of the 71 SPEs participating in the Eletrobras Auction no. 01/2019, held on September 27, 2018, 26 companies were sold, of which 5 (five) were by means of a power of attorney from Chesf to Eletrobras. Among the 26 companies sold, SPES INTESA, Pedra Branca SA, São Pedro do Lago SA, Sete Gameleiras SA, Baraúnas I Energética SA, Mussambê Energética SA, Morro Branco I Energética SA, Baraúnas II Energética SA and Banda de Couro Energética SA were transferred to the new controller until March 31, 2019 and are no longer included in the list of SPEs of the holding company and its subsidiaries.

The aforementioned transaction represents one of the stages set forth in the PNDG 2019-2023 and had the purpose of reducing indebtedness through the settlement of debts of its subsidiaries with the Holding Company.

Generation

 

SPE

Power plant

Total lInvestiments

Capacity Installed   

Physical Warranty

                  Generated Energy Average MW          

R$ Million

MW

MW Average

 

1Q19    

Norte Energia SA*

UHE

42.254

11,233.10

4.571

 

12,232,360.76

 

 

Eólica Mangue Seco 2

UEE

In operation

26

9.6

 

10,716.92

 

 

Santa Vitória do Palmar Holding S.A. (2)

EOL

In operation

258.00

110

 

148,448,28

 

 

Chuí Holding S.A. (1)

EOL

In operation

144

59.6

 

77,749.68

 

 

Chuí IX

EOL

In operation

17.90

7.4

 

11,023,82

 

 

Hermenegildo I

EOL

In operation

57.28

24.9

 

38,253.29

 

 

Hermenegildo II

EOL

In operation

57.28

25

 

33,846,69

 

 

Hermenegildo III

EOL

In operation

48.33

21

 

28,507.34

 

 

Rouar S.A.

EOL

In operation

65.10

N/A

 

33,615.00

 

 

Brasventos Eolo

EOL

In operation

58.45

21.86

 

21,399.50

 

 

Rei dos Ventos 3

EOL

In operation

60.12

21

 

20,449.10

 

 

Miassaba 3

EOL

In operation

68.47

22.84

 

24,717.80

 

 

Serra das Vacas Holding (3)

EOL

In operation

90.76

45.60

 

87,684.30

 

 

Chapada do Piauí I Holding (4)

EOL

In operation

205.1

114.3

 

105,277.72

 

 

Chapada do Piauí II Holding (5)

EOL

In operation

172.40

88.7

 

85,976.83

 

 

* 18 generating units in commercial operation totaling 7566.30 MW in commercial operation.

  (1) Chuí Holding S.A is the controlling shareholder of Chuí S.A. I, II, IV, V, VI, VII wind farms.

(2) Santa Vitória do Palmar Holding (SVP), which is the parent company of Geribatu SA spol. I to X, incorporated Chuí Holding SA, in this way, SVP controlled the Chuí SA I, II, IV, V, VI, VII.

(3) Serra das Vacas Holding S.A incorporated the interests of wind power companies Serra das Vacas S.A. I through IV.

22


 

 

(4) The Chapada do Piauí I Holding SA incorporated the wind power SPEs Ventos de Santa Joana IX, X, XI, XII, XIII, XV and XIV Energia Renováveis SA

(5) The Chapada do Piauí II Holding S.A incorporated the interests of wind farms Ventos de Santa Joana I, III, IV, V, VII and Ventos de Santo Augusto IV S.A.

 

 

U Power plant

Participation (%)

Location

(State))

Start of

Operation

End of

Operation

Alienated

Auction of 09/27/18

Norte Energia S.A

15

PA

abr/16

ago/45

No

Santa Vitória do Palmar Holding S.A. (2)

78

RS

fev/15

abr/47

Non - Lot A

Chuí Holding S.A. (1)

78

RS

mai/15

abr/47

Non - Lot A

Chuí IX

99.99

RS

out/15

mai/49

Non - Lot B

Hermenegildo I

99.99

RS

nov/15

jun/49

Non - Lot B

Hermenegildo II

99.99

RS

dez/15

jun/49

Non - Lot B

Hermenegildo III

99.99

RS

dez/15

jun/49

Non - Lot B

Brasventos Eolo

49

RN

jul/14 (')

dez/45

Yes - Lot F

Rei dos Ventos 3

49

RN

jul/14 (')

dez/45

Yes - Lot F

Miassaba 3

49

RN

jul/14 (')

ago/45

Yes - Lot F

Rouar S.A

50

Uruguai -Departamento de Colônia

Abri/15

Out/33

No

Serra das Vacas Holding (3)

49

PE

dez/15

jun/49

Non - Lot C

Chapada do Piauí I Holding (4)

49

PI

jul/15

mai/49

Non - Lot D

Chapada do Piauí II Holding (5)

49

PI

(6)

mai/49

Non - Lot D

Mangue Seco 2

49

RN

set/11

jun/32

Non - Lot G

 

(1) Chuí Holding S.A is the controlling shareholder of Chuí S.A. I, II, IV, V, VI, VII wind farms.

(2) Santa Vitória do Palmar Holding (SVP), which is the parent company of Geribatu SA spol. I to X, incorporated Chuí Holding SA, in this way, SVP controlled the Chuí SA I, II, IV, V, VI, VII.

(3) Serra das Vacas Holding S.A incorporated the interests of wind power companies Serra das Vacas S.A. I through IV.

(4) The Chapada do Piauí I Holding SA incorporated the wind power SPEs Ventos de Santa Joana IX, X, XI, XII, XIII, XV and XIV Energia Renováveis SA

(5) The Chapada do Piauí II Holding S.A incorporated the interests of wind farms Ventos de Santa Joana I, III, IV, V, VII and Ventos de Santo Augusto IV S.A.

(6) The Santa Joana I, IV, V and VII plants started in Jan / 16, Santo Augusto IV in Feb / 16 and Santa Joana III in March / 16.

 

 

Transmission

Development

Object

Participation (%)

Investiments

Extension of lines (km)

Voltage

Start of

End of

(From to)

(R$ Million)

(kV)

Concession

Concession

Uirapuru

Ivaiporã (PR) – Londrina (PR)

75

In operation

120

525

jul/06

mar/35

TME

LT Jauru / Cuiabá, em 230 kV, (MT)

49

In operation

348

500

nov/11

nov/39

Brasnorte

Jauru - Juba – C2 (MT) e  Maggi - Nova Mutum (MT), SE Juba e SE Maggi - 230/138 kV

49.71

In operation

402

230

set/09

mar/38

Transirapé

Irapé – Araçuaí

24.5

In operation

61

230

mai/07

mai/37

Transleste

Montes Claros – Irapé

24

In operation

138

345

dez/05

dez/35

Transudeste

Itutinga – Juiz de Fora

25

In operation

140

345

fev/07

fev/37

ETAU

Campos Novos (SC) – Barra Grande (SC) – Lagoa Vermelha (RS) – Santa Marta (RS)

27.42

In operation

188

230

jul/05

dez/32

AETE

Coxipó-Cuiabá-Rondonópolis (MT), SE Seccionadora Cuiabá

49

In operation

193

230

ago/05

fev/34

Centroeste de Minas

Furnas – Pimenta II

49

In operation

62.7

345

mar/10

mar/35

Luziânia-Niquelândia

SE Luziânia

SE Niquelândia

49

In operation

-

-

jun/14

ago/15

mai/42

mai/42

MTE

Oriximiná - Silves - Lechuga (AM), SE Silves (ex-Itacoatiara) e SE Lechuga (ex-Cariri)

49.5

In operation

559

500

mar/13

out/38

23


 

 

 

 

Development

Object

Total of
Investiments
(R$ Million)

Capacity Installed   (MVA)

Location


Start of Operation

End of Concession

Alienated

In Auction

09/27/18

AETE

SE Seccionadora Cuiabá

Em operação

-

MT

ago/05

fev/34

Sim – Lote O

Uirapuru

 

Em operação

   

jul/06

mar/35

Sim – Lote J

Brasnorte

SE Juba

SE Maggi - 230/138 kV

Em operação

300

100

MT

set/09

mar/38

Sim – Lote  L

 

ETAU

Lagoa Vermelha 2 230/138kV;

Barra Grande 230/138 kV;

Santa Marta 230 kV  - Entrada de Linha;

Ampliação Lagoa Vermelha 2 230/138kV

Em operação

150

SC

abr/05

dez/32

Sim – Lote N

-

jul/05

-

jul/05

150

out/16

TME

SE Jauru 500/230 kV

Em operação

750

MT

nov/11

nov/39

Sim – Lote K

Transirapé

SE Aracuaí 2

SE Irapé

SE Irapé

Em operação

2x225

2x225

MG

mai/07

mai/37

Sim – Lote M

Transleste

-

Em operação

-

MG

dez/05

dez/35

Sim – Lote M

Transudeste

-

Em operação

-

MG

fev/07

fev/37

Sim – Lote M

Centroeste de Minas

-

Em operação

-

MG

mar/10

mar/35

Sim – Lote P

Luziânia-Niquelândia

SE Luziânia

SE Niquelândia

Em operação

450

30

GO

jun/14

ago/15

mai/42

mai/42

Não – Lote Q

MTE

SE Silves (ex-Itacoatiara) e SE Lechuga (ex-Cariri)

Em operação

150

1800

AM/PA

mar/13

out/38

Não – Lote R

 

 

24


 

 

 

Balance Sheet

R$ mil

Asset

Parent Company

Consolidated

03.31.2019

12.31.18

03.31.2019

12.31.18

Current

 

 

 

 

   Cash and cash equivalents

84,942

47,400

931,430

583,352

   Restricted cash

2,290,727

1,560,088

2,290,727

1,560,088

   Marketable securities

4,090,018

4,034,242

7,228,230

6,408,104

   Customers

365,627

379,649

3,967,964

4,079,221

   Financial assets - Concessions and Itaipu

0

0

5,406,225

6,013,891

   Loans and financing

8,674,673

8,257,761

4,439,203

3,903,084

   Asset contractual transmission

0

0

1,374,093

1,302,959

   Equity Pay

2,507,933

2,474,558

196,352

219,895

   Taxes to recover

184,928

488,591

944,303

1,216,261

   Income tax and social contribution

416,425

817,417

1,458,074

2,420,165

   Reimbursement rights

0

0

341,394

454,139

   Warehouse

297

274

397,788

380,292

   Nuclear fuel stock

0

0

510,638

510,638

   Derivative financial instruments

1,986

2,195

176,245

182,760

  Hydrological risk

0

0

21,945

81,301

  Assets held for sale

5,310,029

5,282,624

12,332,698

15,424,359

  Credits with subsidiaries - CCD

2,406,622

2,406,622

0

0

   Other

1,847,789

1,296,560

2,620,497

2,104,904

TOTAL CURRENT ASSETS

28,181,996

27,047,981

44,637,806

46,845,413

 

 

 

 

 

NON CURRENT

 

 

 

 

LONG-TERM

 

 

 

 

   Reimbursement rights

3,256,066

3,234,542

5,431,796

5,802,172

   Loans and financing

18,386,894

20,518,018

9,862,645

9,971,857

   Customers

0

0

8,236

8,413

   Marketable securities

297,963

293,509

298,291

293,833

   Nuclear fuel stock

0

0

819,000

828,410

   Taxes to recover

0

0

258,649

265,805

   Current Income Tax and Social Contribution

0

0

0

0

   Deferred income and social contribution     taxes

0

0

602,646

553,409

   Escrow deposits

3,360,669

3,307,301

5,839,839

5,788,905

   Fuel Consumption Account - CCC

0

0

13,280,033

13,268,837

   Financial assets - Concessions and Itaipu

2,582,961

2,603,118

34,305,907

34,100,453

   Derivative financial instruments

0

0

182,614

188,262

   Advances for future capital increase

1,262,219

1,140,732

480,776

459,563

  Hydrological risk

0

0

178,785

227,083

   Other

2,439,906

2,368,142

1,749,615

1,604,403

 

31,586,678

33,465,362

73,298,832

73,361,405

INVESTMENTS

73,809,070

71,871,802

28,280,374

27,983,348

Fixed assets net

265,839

198,711

32,661,511

32,370,392

INTANGIBLE

13,439

13,386

791,049

649,650

TOTAL NON-CURRENT ASSETS

105,675,026

105,549,261

135,031,766

134,364,795

TOTAL ASSETS

133,857,022

132,597,242

179,669,572

181,210,208

 

 

25


 

 

 

 R$ mil

Liabilities and Equity

Parent Company

Consolidated

03.31.2019

12.31.18

03.31.2019

12.31.18

CURRENT

       

    Loans and financing

6,683,497

7,031,515

11,274,808

12,066,912

    Debentures

0

0

40,546

36,073

    Compulsory loan

15,758

15,659

15,758

15,659

    Suppliers

524,887

569,218

2,835,319

3,360,550

    Advances from customers

681,932

357,275

746,609

421,002

    Taxes payable

407,432

166,523

1,496,139

1,277,051

    Income tax and social contribution

264,447

917,734

1,841,005

2,953,072

    Onerous contracts

0

0

9,436

9,436

    Remuneration to shareholders

1,274,394

1,257,502

1,282,341

1,305,633

    Financial liabilities - Concessions and Itaipu

696,476

799,401

0

0

    Estimated liabilities

108,489

134,474

1,251,308

1,366,376

    Reimbursement Obligations

1,397,108

1,250,619