Pursuant to Rule 13a-16 or 15d-16 of the
Centro, CEP 20091-005,
Rio de Janeiro, RJ, Brazil
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
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Conference Call in Portuguese November 12, 2019 Conference Call in English November 12, 2019 Contact RI: Preparation of the Report to Investors: Superintendent of Investor Relations Capital Market Department |
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Introduction |
03 |
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I. Analysis of the Consolidated Result |
07 |
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II. Analysis of the Parent Company's Result |
22 |
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III. General information |
25 |
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IV. Annex: 1. Controlled Financial Information 2. Controlled Financial Analysis
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30 |
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The Investors Report - Appendices I, II and III can be found at excel on our website: www.eletrobras.com.br/ri |
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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 |
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Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
1
Rio de Janeiro, November 11, 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 8 subsidiaries, a holding company - Eletropar - a research center - Cepel and holding 50% of Itaipu Binacional and Direct and indirect interest in 137 Special Purpose Entities, as of this date, announces its results for the period.
Eletrobras holds about 30.2% percent of Brazil's total installed capacity, totaling 50,429 MW, and 45.2% of Transmission Lines over 230Kv, with 64,664 Km, on September 30, 2019.
In the first nine months of 2019 (9M19), Eletrobras posted net income of R$ 7,624 million, 1985% higher than the net loss of R$ 404 million in the nine months of 2018 (9M18). The 9M19 profit is composed of Net Income from continuing operations of R$ 2,587 million and Net Income of R$ 5,037 million from discontinued operations (distribution), highlighting the privatization of the distribution company Amazonas Energia, which is no longer consolidated by Eletrobras.
Net Operating Revenue increased by 9.4%, from R$ 18,638 million in 9M18 to R$ 20,386 million in 9M19, highlighting the entry into operation of Amazonas GT TPP Mauá 3 and revenue of GAG Improvement relative to concessions renewed by Law 12,783/2013. Ebtida IFRS increased from R$ 6,764 million in 9M18 to R$ 7,053 in 9M19. Net Operating Revenue grew by 8.9%, from R$ 18,608 million in 9M18 to R$ 20,269 million in 9M19. Recurring Ebtida went from R$ 9,346 million in 9M18 to R$ 9,968 million in 9M19.
In the third quarter of 2019 (3Q19), Eletrobras posted a net income of R$ 716 million, higher than the net loss of R$ 2,260 million in third quarter of 2018 (3Q18). Net Operating Revenue increased by 9.8%, from R$ 6,642 million in 3Q18 to R$ 7,291 million in 3Q19. Ebtida IFRS increased from R$ 686 million in 3Q18 to R$ 2,766 million in 3Q19. Recurring Net Operating Revenue increased by 11%, from R$ 6,628 million in 3Q18 to R$ 7,354 million in 3Q19. Recurring Ebtida went from R$ 3,205 million in 3Q18 to R$ 3,962 million in 3Q19, an increase of 23.6%. 3Q19 highlights are presented below:
3Q19 HIGHLIGHTS
» Bill 5877/2019, which addresses the privatization of Eletrobras was sent to the National Congress on 11/05/2019;
» Offer for private subscription capital increase of up to R$ 9,987 million: 175th General Meeting to be held on November 14, 2019;
» Net Income of R$ 716 million and Recurring Net Income of R$ 2,097 million;
»Net Operating Revenue of R$ 7,291 million, influenced by the increase in revenue of Amazonas GT by R$ 469 million with the start of supply of CCEAR of TPP Mauá 3, RBSE of R$ 1,062 million; GAG improvement of R$ 250 million;
»CVM EBITDA of R$ 2,766 million and Recurring EBITDA of R$ 3,962 million
»Net Debt / Recurring EBITDA (LTM) at 09/30/2019 = 1.8;
»Provision related to Furnas Outsourced Indemnity in the amount of R$ 354 million.
»Gain obtained from the reversal of Amazonas Energia's negative equity, resulting from the privatization process, in the amount of R$ 690 million;
»Provisions for contingencies in the amount of R$ 417 million, referring R$ 269 million to the compulsory loan processes;
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Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
2
Table 01: Key Indicators
R$ Million
|
9M19 |
9M18 |
% |
|
3Q19 |
3Q18 |
% |
|
103,9 |
100,4 |
3.5% |
Energy Sold - Generation GWh (1) |
37,4 |
38,3 |
-2.3% |
|
24,765 |
22,337 |
10.9% |
Gross Revenue |
8,790 |
8,009 |
9.7% |
|
24,648 |
22,307 |
10.5% |
Recurring Gross Revenue (2) |
8,853 |
7,995 |
10.7% |
|
20,386 |
18,638 |
9.4% |
Net operating revenue |
7,291 |
6,642 |
9.8% |
|
20,269 |
18,608 |
8.9% |
Recurring Net Operating Revenue (2) |
7,354 |
6,628 |
11.0% |
|
7,053 |
6,764 |
4.3% |
EBITDA |
2,766 |
686 |
303% |
|
9,968 |
9,346 |
6.7% |
Recurring EBITDA (3) |
3,962 |
3,205 |
23.6% |
|
35% |
36% |
-1 p.p |
Ebitda Margin |
38% |
10% |
28 p.p |
|
49% |
50% |
-1 p.p |
Recurring Ebitda Margin |
54% |
48% |
6 p.p |
|
48,035 |
42,281 |
13.6% |
Gross debt without third party RGR |
48,035 |
42,281 |
13.6% |
|
22,112 |
19,975 |
10.7% |
Pro Forma Net Debt |
22,112 |
19,975 |
10.7% |
|
1,8 |
1,9 |
-5.5% |
Pro Forma Net Debt / Recurring LTM EBITDA |
1,8 |
1,9 |
-5.5% |
|
2,587 |
1,598 |
61.9% |
Net Income from Continuing Operations |
716 |
-1,248 |
-157% |
|
7,624 |
-404 |
-1985% |
Net Profit |
716 |
-2,260 |
-132% |
|
1,754 |
2,830 |
-38% |
Investiments |
574 |
976 |
-41.2% |
(1) Does not consider the energy allocated to quotas of plants renewed by Law 12,783 / 2013 and exceptionally Itaipu; (2) Procel Retroactive Revenue; (3) Excludes item (2), costs of Extraordinary Retirement Plan (PAE) and Consensus Resignation Plan (PDC), expenses with independent investigation, Extraordinary Holding Consulting, expenses related to Inepar / Furnas agreement, retroactive payment to Enel by TUSD Eletronuclear, elimination adjustments, restrictive adjustments in Chesf and the Holding, contingency provisions, onerous contracts, Impairment, provision for investment losses, provision for investment losses classified as held for sale, market value adjustment provisions, Provision relating to Water Refusal Inspection Fee (TFRH), Provision ANEEL CCC; Third Party Debt PCLD with RGR (CCEE onlending); (4) Excludes item (3) and monetary restatement for compulsory.
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Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
3
ANALYSIS OF CONSOLIDATED RESULTS (R$ million)
Table 02: Consolidated Result
|
2019 |
2018 |
Statement of Income |
3Q19 |
3Q18 |
|
11,662 |
9,323 |
Generation - Energy supply to distribution companies |
4,297 |
3,562 |
|
1,712 |
1,736 |
Generation – Supply |
580 |
644 |
|
986 |
1,134 |
Generation – CCEE |
341 |
485 |
|
2,609 |
1,626 |
Generation - O&M Revenue Renewed Plants - Law 12.783/13 |
925 |
551 |
|
25 |
30 |
Generation - Plant Construction Revenue |
12 |
14 |
|
82 |
326 |
Generation - Itaipu Transfer |
-21 |
142 |
|
2,623 |
2,504 |
Transmission - O&M Revenue - Renewed Lines - Law 12.783/13 |
942 |
806 |
|
589 |
513 |
Transmission - O&M Revenue |
216 |
168 |
|
408 |
583 |
Transmission - Construction Revenue |
172 |
130 |
|
582 |
621 |
Transmission - Contract Revenue |
177 |
248 |
|
2,959 |
3,496 |
Transmission - RBSE Renewed Lines Law 12,783 |
1,062 |
1,037 |
|
528 |
446 |
Other Recipes |
86 |
222 |
|
-4,379 |
-3,699 |
Revenue Deductions |
-1,499 |
-1,368 |
|
20,386 |
18,638 |
Net operating revenue |
7,291 |
6,642 |
|
-1,493 |
-1,349 |
Energy purchased for resale |
-592 |
-647 |
|
-1,233 |
-1,211 |
Charges for the Use of the Electricity Grid |
-447 |
-345 |
|
-1,467 |
-800 |
Fuel for electricity production |
-556 |
-393 |
|
-540 |
-833 |
Construction |
-273 |
-349 |
|
15,655 |
14,446 |
Gross Result |
5,424 |
4,908 |
|
-5,418 |
-5,612 |
Personnel, Material and Services |
-1,735 |
-1,782 |
|
-1,233 |
-1,202 |
Depreciation |
-412 |
-411 |
|
-79 |
-67 |
Amortization |
-27 |
-23 |
|
-152 |
-126 |
Donations and Contributions |
-49 |
-40 |
|
-3,121 |
-2,380 |
Provisions / Operational Reversals |
-1,092 |
-2,578 |
|
-827 |
-789 |
Others |
-253 |
-411 |
|
4,825 |
4,271 |
Operating Result before Financial Result |
1,856 |
-337 |
|
802 |
2,123 |
Interest, commission and fee income |
261 |
409 |
|
619 |
566 |
Revenue from financial investments |
310 |
209 |
|
194 |
186 |
Moratorium on electricity |
32 |
71 |
|
552 |
561 |
Active currency updates |
0 |
179 |
|
2,244 |
3,908 |
Active exchange rate variations |
1,157 |
1,145 |
|
1,626 |
0 |
Fair value adjustment (RBSE) |
0 |
0 |
|
0 |
62 |
Derivative gains |
0 |
-101 |
|
837 |
478 |
Other financial income |
225 |
228 |
|
-2,655 |
-1,855 |
Debt charges |
-853 |
-655 |
|
-256 |
0 |
Leasing charges |
-84 |
0 |
|
-211 |
-205 |
Shareholder appeal charges |
-64 |
-64 |
|
-557 |
-652 |
Passive monetary updates |
-99 |
-289 |
|
-2,180 |
-4,122 |
Passive exchange rate variations |
-1,153 |
-1,244 |
|
0 |
-2,065 |
Fair value adjustment |
-155 |
-698 |
|
-67 |
-6 |
Derivative losses |
-42 |
-6 |
|
-1,719 |
-1,084 |
Other financial expenses |
-396 |
-429 |
|
4,053 |
2,165 |
Earnings before equity interest |
995 |
-1,583 |
|
679 |
1,224 |
Result of Equity Holdings |
417 |
589 |
|
237 |
0 |
Effect on Disposal of Equity Holdings |
54 |
0 |
|
4,970 |
3,389 |
Operating Result Before Taxes |
1,466 |
-994 |
|
-2,575 |
-2,161 |
Current income tax and social contribution |
-901 |
-572 |
|
192 |
370 |
Deferred income tax and social contribution |
151 |
317 |
|
2,587 |
1,598 |
Net Income from Continuing Operations |
716 |
-1,248 |
|
5,037 |
-2,002 |
Net Income (Loss) from Discontinued Operation Taxes |
0 |
-1,012 |
|
7,624 |
-404 |
Net Income for the Period |
716 |
-2,260 |
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Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
4
Table 03: Recurring Consolidated Result
|
3Q19 |
3Q19 |
Recurring Statement of income* |
3Q19 |
3Q18 |
|
17,052 |
14,144 |
Generation Revenue Managerial |
6,122 |
5,385 |
|
7,160 |
7,717 |
Transmission Revenue Managerial |
2,570 |
2,388 |
|
436 |
446 |
Other Recipes Recurring |
161 |
222 |
|
24,648 |
22,307 |
Gross Revenue Managerial |
8,853 |
7,995 |
|
-4,379 |
-3,699 |
Deductions from Revenue Recurring |
-1,499 |
-1,368 |
|
20,269 |
18,608 |
Net Operating Revenue Managerial |
7,354 |
6,628 |
|
-4,689 |
-4,063 |
Operational costs Managerial Recurring |
-1,850 |
-1,720 |
|
-5,940 |
-6,148 |
Personal, Material, Services and Others Recurring |
-1,810 |
-2,181 |
|
-1,312 |
-1,269 |
Depreciation and amortization |
-439 |
-434 |
|
-351 |
-275 |
Operational Provisions Recurring |
-75 |
-111 |
|
7,977 |
6,853 |
|
3,180 |
2,182 |
|
679 |
1,224 |
Shareholdings Managerial Recurring |
342 |
589 |
|
8,656 |
8,077 |
|
3,522 |
2,771 |
|
-334 |
-2,713 |
Financial Result Managerial |
-675 |
-1,048 |
|
8,322 |
5,365 |
Managerial income before tax Recurring |
2,848 |
1,724 |
|
-2,383 |
-1,791 |
Income tax and social contribution Recurring |
-750 |
-255 |
|
5,939 |
3,574 |
Managerial net income Recurring |
2,097 |
1,469 |
* Non recurring adjustments mentionend in the highlights.
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Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
5
Income Statement Variations (3Q19 x 3Q18)
The 3Q19 Results recorded a 132% variation over 3Q18, with a Net Income of R$ 716 million in 3Q19, against a net loss of R$ 2,260 million in 3Q18.
The 9M19 accumulated result registered a variation of 1985%, compared to 9M18, with a Net Income of R$ 7,624 million in 9M18, against a net loss of R$ 404 million in 9M18.
Operating income
Table 04: Net Revenue
|
Operating income |
3Q19 |
3Q18 |
% |
3Q18 X 3Q19 Variation Analysis |
|
Generation Revenue |
6,134 |
5,399 |
13.6 |
|
|
Energy supply to distribution companies |
4,297 |
3,562 |
20.6 |
(i) increase in revenues from amazonas GT (+ R$ 721 million) related to the revenues of independent producers PIES and four gas plants that were received from Amazonas Distribuidora following the decertification in December 2018 and the start of supply of CCEAR by Amazonas GT (Mauá 3); (ii) + R$ 77 million in Furnas, due to the increase in ACL(free market) sales (expanded by the reduction in MCSD - ACR). |
|
Supply |
580 |
644 |
-10.0 |
(i) In subsidiary Chesf (-R$ 48 million) due to the reduction of around 140 average MW in the consumption of industrial customers achieved by Law 13,182 / 2015 (related in particular to Sobradinho HPP), due to a problem in a consumer's plant industrial in the state of Alagoas and shutdown for maintenance of an industrial consumer in Bahia in September / 2019; (ii) In subsidiary Eletronorte (-R$ 26 million) due to the reduction in billing from the contract with Albras due to the lower price of aluminum, which represented a reduction in revenues of R$ 34.6 million, partially offset by higher revenues against a free consumer of R$ 4.5 million due to the readjustment of contracts; declines partially offset by (iii) subsidiary Furnas (+14 million), due to the price adjustment of Usumbiara Plant contracts of 3.8%, resulting in a revenue increase of R$ 7 million; and new contracts, in the amount of R$ 7 million. |
|
CCEE |
341 |
485 |
-29.7 |
(i) In the subsidiary Amazonas GT (-R $ 252 million), due to the fact that the company earned revenue from the sale of energy in the Aparecida e Mauá 3 MCP(short term market) in 3Q18, which did not occur in the same period of 2019, due to the beginning of and early supply of CCEAR; (ii) In subsidiary Furnas, a reduction of R $ 126 million due to the variation of the contract portfolio, its seasonalization and mainly due to variations in PLD and GSF; (iii) short-term revenue growth in subsidiary Chesf (+ R$ 275 million), due to the termination of supply contracts (around 80 average MW) and a reduction of 140 average MW in the consumption of Sobradinho. |
|
Operation and Maintenance Revenue - Plants Renewed by Law 12,783/2013 |
925 |
551 |
67.8 |
(i) Annual readjustment of RAG according to Aneel Homologation Resolution No. 2,587/2019; (ii) Revision of the GAGs calculation methodology for the 2018-2019 cycle, with an increase in the total GAG value especially due to the GAG recognition improvement of around R$ 250 million. |
|
Net Operational Revenue |
7,354 |
6,628 |
11.0 |
|
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Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
6
|
Construction Revenue |
12 |
14 |
-14.3 |
(i) lower level of investment made in 2019, but with no effect on income as it has an equivalent amount in construction expenses. |
|
Itaipu Transfer |
-21 |
142 |
-114.9 |
(i) Variation of the rate on which monetary restatement is calculated based on the US Commercial Price and Industrial goods price indices, and also due to the recognition of inter-ministerial decree 04/2018 from MME and Ministry of Finance that determines Itaipu's revenue. |
|
Transmission Revenue |
2,570 |
2,388 |
7.6 |
|
|
O&M Revenue - Renewed Lines |
942 |
806 |
16.9 |
Readjustment of the RAP approved for the 2019/2020 cycle (Homologation Resolution 2565/19) for the 2019-2020 tariff cycle. |
|
O&M Revenue - Regime Exploration |
216 |
168 |
28.7 |
(i) In subsidiary Chesf (+19 million), RAP adjustment approved for the 2019/2020 cycle (Homologation Resolution 2565/19) referring to the 2019-2020 tariff cycle; (ii) In subsidiary Eletrosul (+22 million) due to the consolidation, as of Sep / 2018, of SPE TSBE, equivalent to R $ 10.3 million and increase in RAP installments due to the IPCA adjustment of 4.66 %, plus the variations inherent to the anticipation, adjustment and variable installments. |
|
Construction Revenue |
172 |
130 |
32.6 |
The variation is mainly due to the higher volume of investments compared to the previous year, especially Chesf (+61 million). |
|
Finance - Return on Investment - RBSE |
1,062 |
1,037 |
2.5 |
(i) readjustment of Homologation Resolution no. 2,565 / 2019, increasing the IRR of receivables flow, highlighting the controlled furnas (+64 million) |
|
Contractual Revenue - Transmission |
177 |
248 |
-28.4 |
The variation is mainly due to (i) the subsidiary Chesf (-R$51 million) due to the reduction in the contract asset's financial income due to the amortization occurred between the periods; measurement of concession assets by IFRS 15; and exclusion of contracts that had their expiration declared by the Granting Authority, which represented R$ 19 million in 3Q18, without any compromise in 3Q19; (ii) Amazonas GT (-R$13 million) |
|
Other Revenues |
86 |
222 |
-61.5 |
Reclassification of R$ 75 million from revenue from disposal of SPEs to “other income and expenses” account; (ii) In subsidiary Eletronorte (-R$ 15 million), due to R$ 7.5 million decrease in Multimedia Communication Services revenue, decrease in Belo Monte O&M Services Provision revenues: R$ 5.2 million; reduction of lease and rental revenue by R$ 4.1 million and reduction of Proinfa revenue by R$ 3.3 million. |
|
Gross Revenue |
8,790 |
8,009 |
9.7 |
|
|
Nonrecurring Events |
|
|
|
|
|
(-) Construction Generation |
-12 |
-14 |
-14,3 |
|
|
(-) Reclassification Disposal SPEs |
75 |
0 |
13.7 |
|
|
Recurring Gross Revenue |
8,853 |
7,995 |
10.7 |
|
|
Deductions |
-1,499 |
-1,368 |
9.6 |
|
|
Net Operational Revenue |
7,354 |
6,628 |
11.0 |
|
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
7
Table 05: Operating Costs
|
Operating Costs |
3Q19 |
3Q18 |
% |
3Q18 X 3Q19 Variation Analysis |
|
Energy purchased for resale |
-592 |
-647 |
-8.5 |
(i) In subsidiary Eletronorte (-R$ 100 million), lower accounting for purchases from CCEE in 3Q19 (R $ 219 million in 3Q18 and R$ 157 million in 3Q19) and reduction of energy billed by CORPOELEC (R$ 40 million in 3Q18 and R$ 1.2 million in 3Q19); Reduction partially offset by: (ii) Subsidiary Furnas (+ R$ 24 million), contract price adjustment, representing an increase of approximately R$ 16 million and increase of the contracted amount by R$ 9 million; (iii) In subsidiary Amazonas GT (+R$34 million), an increase in expenses due to Independent Producers' Purchased Energy (PIE's) in the amount of R$ 151 million, mainly offset by the R$ 9.5 million reduction in MCP - Short Term Market. |
|
Charges on use of the electricity grid |
-447 |
-345 |
29.8 |
(i) at Chesf (+R$ 56 million), with the implementation of the ERP-SAP System, a new configuration was recorded for the CHESF generation TUST charge for CHESF transmission and is now recorded as operating expenses and no longer a reduction in Gross Revenue ( + R$ 34 million), in addition to the 10% readjustment of Tust; (ii) In subsidiary Amazonas GT (+ R$ 23 million), a R$ 23 million increase in expenses with charges due to the increase in power generation. |
|
Fuel for products of electricity |
-556 |
-393 |
41.3 |
(i) as a result of the gas contract signed with Petrobras by Amazonas GT (+ R$ 141 million), due to the unbundling and privatization of Amazonas Distribuidora. |
|
Construction |
-273 |
-349 |
-21.8 |
(i) Chesf (-R$ 45 million), due to lower investments compared to the previous year; (ii) Furnas (-R$ 36 million), especially due to the effect of write-offs of property, plant and equipment contract 061. |
|
Total Operating Costs |
-1,868 |
-1,734 |
7.7 |
|
|
(-) Generation Building |
18 |
14 |
28.8 |
|
|
Total Recurring Operating Costs |
-1,850 |
-1,720 |
7.6 |
|
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
8
Table 06: Operating Expenses
|
Operational Expenses |
3Q19 |
3Q18 |
% |
3Q18 X 3Q19 Variation Analysis |
|
Personnel |
-1,174 |
-1,200 |
-2.1 |
(i) Reduction due to the cost containment policy established by the Company, with PDC, hazardous work and overtime, highlighting that it reflects partial effects due to termination dates and temporary obligations with health plan. 820 employees were dismissed in 2018 and 486 in 2019. The reduction would be 9% (about R$ 103 million) if non-recurring events at Chesf were excluded from R$ 70 million related to the retroactive launch of food and health benefits, from January to June 2019, posted in previous quarters in the services account and adjusted in the personnel account in 3Q19; and R$ 20 million in the holding for the retroactive launch of vacations. |
|
Material |
-88 |
-57 |
53.4 |
(i) In subsidiary CGTEE (+R$20 million), due to the accounting entry in August 2019 of Cal consumption from April to August 2019 in the amount of R$ 39 million, of which only recurring R$ 19 million in 3Q19; (ii) maintenance at Chesf (+ R$ 7 million) |
|
Services |
-473 |
-525 |
-10.0 |
(i) Chesf, reclassification of expenses with food and health benefits, which were as Services with third parties until June / 2019 (R$ 70 million); partially offset by (ii) In subsidiary Eletronuclear, expenses with the maintenance stoppage of Angra 2 (2P15) occurred in different periods (+ R$ 37 million); (iii) In subsidiary Amazonas GT, increase of R$ 16 million due to UTE Mauá's Maintenance (O&M) contract 3. |
|
Others |
-302 |
-451 |
-33.0 |
i) In subsidiary Eletronorte (-R$ 34 million), mainly due to the reversal of lease of R $ 10.6 million due to the adoption of IFRS 16; (ii) R$ 2.5 million reduction in rent expenses at UTE Araguaia |
|
PMSO total |
-2,037 |
-2,233 |
-8.8 |
|
|
(-) PDC |
-10 |
-3 |
231.3 |
|
|
(-) CAL CGTEE / Tractebel Indemnity / EUST Release. Retroactive release on staff chart at Chesf and Holding |
237 |
55 |
328.8 |
|
|
Recurring PMSO |
-3,568 |
-5,245 |
-32.0 |
|
|
Depreciation and amortization |
-439 |
-434 |
1.2 |
Does not present relevant variation. |
|
Operational Provisions1 |
-1,092 |
-2,578 |
-57.6 |
The variation is mainly due to: (i) Provision for contingencies in the amount of R$ 417 million, of which R$ 269 million refer to Compulsory Loan proceedings; (ii) Aneel CCC provision in the amount of R$ 690 million, related to CCC credits assigned by Amazonas Energia to Eletrobras, in the privatization process, but not yet recognized by Aneel so far and which were contained in MP 879 not converted into law; (ii) Provision related to the termination of Furnas Outsourced Companies in the amount of R$ 354 million, offset by (iii) the reversal of RGR PCLD due from third parties of R$ 433 million. The main operating provisions are detailed in table 07 below (see Note 37). |
|
Total Operating Expenses |
-1,531 |
-3,012 |
-49.2 |
|
|
(-) Contingencies |
417 |
2,178 |
-80.8 |
|
|
(-) PCLD RGR of 3º |
-433 |
3 |
-15.433 |
|
|
(-) Onerous Contracts |
-1 |
-147 |
-99.5 |
|
|
(-) Provision / Reversal for Investment Losses |
15 |
412 |
-96.5 |
|
|
(-) Impairment of Long Term Assets |
0 |
21 |
-100.0 |
|
|
(-) Expiry of Concession |
-25 |
0 |
- |
|
|
(-) Provision Indemnification Outsourced Furnas (d) |
354 |
0 |
- |
|
|
(-) Provision ANEEL - CCC |
690 |
0 |
- |
|
|
Recurring Total Operating Expenses |
-2,324 |
-2,726 |
-14.7 |
|
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
9
Table 07: Consolidated Operating Provisions
|
|
|
|
R$ milion | |
|
Operational Provisions |
Consolidated | |||
|
|
9M19 |
9M18 (Reclassified) |
3Q19 |
3Q18 (Reclassified)) |
|
Guarantees |
-90 |
57 |
-19 |
-10 |
|
Contingencies |
1,039 |
3,021 |
417 |
2,178 |
|
PCLD - Consumers and Resellers |
182 |
109 |
82 |
-34 |
|
PCLD - Financing and Loans |
-195 |
17 |
-426 |
5 |
|
PCLD - Other Clients |
0 |
0 |
0 |
0 |
|
Subsidiary overdraft liabilities |
-343 |
-602 |
-1 |
-147 |
|
Onerous Contracts |
-48 |
428 |
15 |
412 |
|
Investment Losses |
0 |
435 |
0 |
21 |
|
Impairment |
362 |
0 |
-25 |
0 |
|
Concession Expiry |
354 |
0 |
354 |
0 |
|
Provision ANEEL – CCC |
1,676 |
0 |
690 |
0 |
|
TFRH |
0 |
-1,184 |
0 |
0 |
|
Others |
183 |
99 |
6 |
153 |
|
|
3,121 |
2,380 |
1,092 |
2,578 |
1 - Values with positive signs under the heading “operating provisions” represent reversals of provision.
Table 08: Onerous contracts
|
Onerous Contracts |
3Q18 |
3Q19 |
|
|
| |||
|
Generation |
|
|
|
|
Santa cruz |
0 |
-289 |
|
|
Funil |
0 |
236 |
|
|
Coaracy Nunes |
-6 |
-130 |
|
|
Others |
5 |
36 |
|
|
TOTAL |
-1 |
-147 |
|
1 - Values with positive signs represent provision reversals.
No impairment was recorded in 2019. Impairment tests will be performed in 4Q19.
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
10
Table 09: Unconsolidated Shareholdings
|
Shareholdings |
3Q19 |
3Q18 |
% |
Variation |
|
Equity Holdings / Effect of disposal of Shareholdings |
471 |
589 |
-20.0 |
(i) R$ 114 million reduction; (ii) Belo Monte Transmissora's equity income increased from R$ 140 million in 3Q18 to R$ 25 million in 3Q19; and (iii) Sinop's equity income increased from positive R$ 3 million in 3Q18 to negative R$ 29 million in 3Q19. The main results are reported in the table below. |
|
(-)Other Income and Expenses and Disposal Non-recurring Shareholding |
-129 |
0 |
- |
|
|
Pro forma equity Managerial |
342 |
589 |
-41.9 |
|
Financial Result
Table 10: Financial Income and Expenses
|
Financial Result |
3Q19 |
3Q18 |
% |
|
Financial Income |
1,985 |
2,139 |
-7 |
|
Interest, commission and fee income |
261 |
409 |
-36.1 |
|
Revenue from financial investments |
310 |
209 |
48.3 |
|
Moratorium on electricity |
32 |
71 |
-54.6 |
|
Active currency updates |
0 |
179 |
-100.0 |
|
Active exchange rate variations |
1,157 |
1,145 |
1.1 |
|
Fair value adjustment |
0 |
0 |
- |
|
Regulatory Asset Update |
0 |
0 |
- |
|
Derivative gains |
0 |
-101 |
-100.0 |
|
Other financial income |
225 |
228 |
-1.6 |
|
Financial expenses |
-2,846 |
-3,385 |
-16 |
|
Debt charges |
-853 |
-655 |
30.1 |
|
Leasing charges |
-84 |
0 |
- |
|
Shareholder appeal charges |
-64 |
-64 |
-0.2 |
|
Passive monetary updates |
-99 |
-289 |
-65.8 |
|
Passive exchange rate variations |
-1,153 |
-1,244 |
-7.3 |
|
Fair value adjustment |
-155 |
-698 |
-77.8 |
|
Derivative losses |
-42 |
-6 |
651.5 |
|
Other financial expenses |
-396 |
-429 |
-7.9 |
|
Financial Result |
-861 |
-1,246 |
31 |
|
Nonrecurring Adjustments |
|
|
|
|
(-) Monetary update emp. compulsory |
186 |
198 |
-8.9 |
|
Recurring Financial Result |
-675 |
-1,048 |
36 |
Revenue:
In 3Q19, financial revenues decreased by 7%, from R$ 2,139 million in 3Q18 to R$ 1,985 million in 3Q19. The main variations were in the accounts of: (i) active monetary updates, with a record of R$ 179 million in 3Q18 without counterpart in 3Q19; (ii) a 36% decrease in interest income, mainly due to the Itaipu exchange rate effect.
Expenses:
In 3Q19, financial expenses decreased by 31%, from R$ 3,385 million in 3Q18 to R$ 2,846 million in 3Q19. The main variations occurred in the accounts of (i) Adjustment to fair value, with negative record
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
11
The reduction in financial expenses offset the decrease in financial income, representing an improvement in net financial result.
I.2 EBITDA Consolidated
Table 11: Ebitda Breakdown
|
EBITDA |
9M18 |
9M19 |
% |
3Q18 |
3Q19 |
(%) |
|
Net Income (Loss) |
7,624 |
-404 |
-1985% |
716 |
-2,260 |
-132% |
|
Discontinued Operation Net Loss |
5,037 |
-2,002 |
-352% |
0 |
-1,012 |
-100% |
|
Fiscal Year Result |
2,587 |
1,598 |
62% |
716 |
-1,248 |
-157% |
|
+ Provision Income Tax and Social Contribution |
2,383 |
1,791 |
33% |
750 |
255 |
195% |
|
+ Financial Result |
771 |
2,106 |
-63% |
861 |
1,246 |
-31% |
|
+ Amortization and Depreciation |
1,312 |
1,269 |
3% |
439 |
434 |
1% |
|
= EBITDA |
7,053 |
6,764 |
4% |
2,766 |
686 |
303% |
|
ADJUSTABLE EVENTS |
|
|
|
|
|
|
|
Other Income and Expenses |
-237 |
0 |
- |
-54 |
0 |
- |
|
Procel Retroactive / Nuclear Retroactive Cusd |
-74 |
99 |
-175% |
6 |
0 |
- |
|
Retirement plan. Extraordinary (PAE) / Consensus Termination Plan (PDC) |
157 |
293 |
-46% |
-10 |
-3 |
231% |
|
Investigation / Consulting / Inepar / CAL Cgtee / Tractebel Indemnity / EUST Release / Retroactive Chesf and Holding in Personnel Account (quarter) |
300 |
86 |
250% |
237 |
55 |
329% |
|
Contingencies |
1,039 |
3,021 |
-66% |
417 |
2,178 |
-81% |
|
PCLD RGR - owed by third parties |
-272 |
7 |
68% |
-433 |
3 |
-15433% |
|
Onerous contracts |
-343 |
-602 |
-111% |
-1 |
-147 |
-99% |
|
Provision / (Reversal) for Investment Losses |
-48 |
428 |
-100% |
15 |
412 |
-96% |
|
Impairment of Long Term Assets |
0 |
435 |
- |
0 |
21 |
-100% |
|
Concession Expiry |
362 |
0 |
- |
-25 |
0 |
- |
|
Provision Incentive Indemnity Outsourced (d) |
354 |
0 |
- |
354 |
0 |
- |
|
ANEEL CCC Provision |
1,676 |
0 |
- |
690 |
0 |
- |
|
TFRH (c) |
0 |
-1,184 |
-100% |
0 |
0 |
- |
|
= RECURRING EBITDA |
9,968 |
9,346 |
7% |
3,962 |
3,205 |
23.6% |
In 2Q19, the Company began to consider, in its recurring EBITDA, revenue from RBSE in order to maintain a protocol similar to the debenture covenants to be issued.
Adjustments made to recurring EBITDA refer to non-recurring events or events that are expected to be dealt with under the PDNG 2019-2023, therefore, they 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, changes in interest rates, inflation and Real value, changes in volumes and patterns of consumer electricity use, competitive conditions, payments related to our receivables, changes in rainfall and water levels in the reservoirs used to operate our hydroelectric 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 United States Securities and Exchange Commission, which may change these estimates and expectations of management. Accordingly, future results of operations and initiatives of the Companies may differ from current expectations and the investor should not rely solely on the information contained herein.
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
12
Table 12: Income Statement by Segment
|
|
|
09/30/19 |
|
|
| ||
|
DRE by Segment |
Administration |
Generation |
Transmission |
Elimination |
Total | ||
|
Operating System |
O & M Regime |
Operating System |
Regime de O&M | ||||
|
Net operating revenue |
45 |
4.434 |
787 |
219 |
2.082 |
(276) |
7.291 |
|
Operating Costs and Expenses |
(788) |
(3.062) |
(526) |
(61) |
(1.274) |
276 |
(5.436) |
|
Operating Income Before Financial Result |
(743) |
1.372 |
261 |
158 |
808 |
- |
1.856 |
|
Financial Result |
418 |
(887) |
(29) |
9 |
(371) |
- |
(861) |
|
Results of equity investments |
417 |
- |
- |
- |
- |
- |
417 |
|
Effect on Disposal of Equity Holdings |
54 |
- |
- |
- |
- |
- |
54 |
|
Income tax and social contribution |
(121) |
(255) |
(51) |
(73) |
(249) |
- |
(750) |
|
Net Income (loss) for the period |
25 |
230 |
181 |
93 |
187 |
- |
716 |
|
|
|
09/30/18 |
|
|
| ||
|
DRE by Segment |
Administration |
Generation |
Transmission |
Elimination |
Total | ||
|
Operating System |
O & M Regime |
Operating System |
Regime de O&M | ||||
|
Net operating revenue |
152 |
10,866 |
1,321 |
1,196 |
5,921 |
(819) |
18,638 |
|
Operating Costs and Expenses |
(3,356) |
(6,226) |
(1,380) |
(828) |
(3,396) |
819 |
(14,368) |
|
Operating Income Before Financial Result |
(3,204) |
4,640 |
(59) |
369 |
2,525 |
- |
4,271 |
|
Financial Result |
1,944 |
(1,070) |
(98) |
(1,691) |
(1,191) |
- |
(2,106) |
|
Effect on Disposal of Equity Holdings |
1,224 |
- |
- |
- |
- |
- |
1,224 |
|
Income tax and social contribution |
(586) |
(772) |
(134) |
(8) |
(291) |
- |
(1,791) |
|
Net Income (loss) for the period |
(622) |
2,798 |
(291) |
(1,331) |
1,043 |
- |
1,598 |
I.3.1. Debt and Receivables
Table 13: Gross Debt and Net Debt
|
|
|
|
|
09/30/2019 |
|
GROSS DEBT – R$ million |
49,287 |
|
(-) Trandfer RGR to CCEE (1) |
1,252 |
|
Managerial gross debt |
48,035 |
|
(-) (Cash and Cash Equivalents + Securities) |
9,577 |
|
(-) Financing Receivable |
15,736 |
|
(+) RGR receivable Transfer RGR to CCEE |
1,252 |
|
(-) Net balance of Itaipu Financial Asset |
1,862 |
|
Net Debt |
22,112 |
1 See Explanatory notes 9.1 and 19. (debt of third parties, being Eletrobras the manager).
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
13
|
|
Parent Company |
|
|
Consolidadated |
| ||||||
|
09.30.2019 |
|
12.31.2018 |
|
09.30.2019 |
|
12.31.2018 | |||||
|
Balance in R$ Million |
% |
|
Balance in R$ Million |
% |
|
Balance in R$ Million |
% |
|
Balance in R$ Million |
% | |
|
Foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
USD |
7,942 |
27% |
|
11,285 |
41% |
|
8,247 |
19% |
|
11,285 |
21% |
|
USD with Libor |
565 |
2% |
|
698 |
3% |
|
962 |
2% |
|
1,079 |
2% |
|
EURO |
245 |
1% |
|
245 |
1% |
|
245 |
1% |
|
245 |
0% |
|
IENE |
0 |
0% |
|
0 |
0% |
|
0 |
0% |
|
0 |
0% |
|
Others |
0 |
0% |
|
0 |
0% |
|
0 |
0% |
|
0 |
0% |
|
Subtotal |
8,752 |
29% |
|
12,227 |
44% |
|
9,454 |
22% |
|
12,608 |
23% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local currency |
|
|
|
|
|
|
|
|
|
|
|
|
CDI |
4,488 |
15% |
|
5,092 |
18% |
|
9,070 |
21% |
|
10,649 |
20% |
|
IPCA |
0 |
0% |
|
0 |
0% |
|
50 |
0% |
|
190 |
0% |
|
TJLP |
0 |
0% |
|
0 |
0% |
|
6,173 |
14% |
|
6,515 |
12% |
|
SELIC |
11,959 |
0% |
|
4,513 |
0% |
|
8,908 |
20% |
|
13,279 |
24% |
|
Others |
725 |
0% |
|
0 |
0% |
|
5,730 |
13% |
|
3,621 |
7% |
|
Subtotal |
17,172 |
58% |
|
9,605 |
35% |
|
29,931 |
69% |
|
34,254 |
63% |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Not indexed |
3,843 |
13% |
|
5,803 |
21% |
|
4,301 |
10% |
|
7,511 |
14% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
29,768 |
100% |
|
27,635 |
100% |
|
43,687 |
100% |
|
54,373 |
100% |
The nominal weighted average cost of debt at the end of the third quarter of 2019 was 5.57% (6.59% in 3Q18).
Table 15: Debt Maturity Schedule, excluding RGRs owed by third parties (for which Eletrobras is merely a manager) and including the holding and Subsidiary debentures:
|
R$ million | |||||||
|
|
2020 |
2021 |
2022 |
2023 |
2024 |
After 2024 |
Total |
|
Parent Company |
1,273 |
11,554 |
4,574 |
2,473 |
4,536 |
4,992 |
29,402 |
|
(-) RGR CCEE |
107 |
84 |
31 |
16 |
6 |
977 |
1,222 |
|
Total |
1,166 |
11,470 |
4,543 |
2,457 |
4,530 |
4,015 |
28,180 |
|
Consolidated |
2,111 |
12,237 |
6,144 |
4,662 |
5,646 |
11,044 |
41,844 |
|
(-) RGR CCEE |
107 |
84 |
31 |
16 |
6 |
977 |
1,222 |
|
Total |
2,004 |
12,152 |
6,113 |
4,646 |
5,640 |
10,067 |
40,622 |
Evolution of the IGP-M and Dollar (%)
The main indexes of financing and onlendings contracts had the following variations in the periods:
Table 16: IGP-M and Dollar
|
|
3Q18 |
3Q19 |
9M19 |
|
Dólar |
3.84% |
8.67% |
7.60% |
|
IGPM |
2.75% |
-0.28% |
4.10% |
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
14
Ratings
Table 17: IGP-M and Dollar
|
Agency |
National classification/Perspective |
Last Report |
|
Moody’s BCA |
“B1”: / Estável |
10/03/2018 |
|
Moody’s Senior Unsecured Debt |
“Ba3”: / Estável |
10/03/2018 |
|
Fitch - Issuer Default Ratings (Foreign Currency) |
“BB-”: / Estável |
06/12/2019 |
|
Fitch - Issuer Default Ratings (Local Currency) |
“BB-”: / Estável |
06/12/2019 |
|
Fitch - Senior Unsecured Debt Rating |
“BB-” |
06/12/2019 |
|
S&P LT Local Currency |
“brAAA” |
04/25/2019 |
|
S&P - Senior Unsecured |
"BB-" |
04/25/2019 |
|
S&P LT Foreign Currency |
“BB“ / Estável |
04/25/2019 |
*CreditWatch
Financing and Loans Granted (Receivables)
Financing and loans are made with the Company's own resources and external funds raised through international development agencies, financial institutions and the issuance of securities in the domestic and international financial markets.
All financing and loans granted are supported by formal contracts signed with the borrowers. Most of these amounts are expected to be paid in monthly installments, amortized over an average term of 6.2 years, and the average interest rate, weighted by the portfolio balance, is 7.19% per year.
The parent company has a loan with Itaipu with exchange rate update clause that represents 42% of the total consolidated portfolio (57% on December 31, 2018). Other financing and loans are updated based on indices that represent the domestic price level in Brazil and reach 58% of the consolidated portfolio balance (43% on December 31, 2018).
The parent company has a loan with Amazonas Distribuidora de Energia in the amount of R$ 3.85 billion and substantially represents receivables not capitalized in the process of disposal of corporate control. These contracts were renegotiated with a grace period of up to 3 years to amortize the principal, during this grace period only interest is received. In addition, the renegotiation considered the period of 18 months for presentation of real guarantees that must be previously assessed and approved by Eletrobras Management.
In addition to the financing mentioned above, until April 30, 2017, Eletrobras was responsible for managing the Global Reversal Reserve (RGR), a sector fund, and was responsible for granting financing through the use of these resources to implement various sector programs. As of May 2017, with the issuance of Law 13,360/2016, CCEE assumed this activity. However, there are still financing made before this date, due by third parties, managed by Eletrobras.
Pursuant to Decree 9,022/2017, which regulates the aforementioned law, Eletrobras is not the guarantor of these operations taken by third parties, but is responsible for the contractual management of RGR funding agreements entered into until November 17, 2016, which must be passed on to RGR within five days from the actual payment by the debtor agent.
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
15
With the process of sale of the distributors completed, the transfer of the management of RGR resources to CCEE pursuant to Law 13.360/2016 and in line with Decree No. 9,022/2017, as of June 2019, the Company revised the form to present the amounts raised and passed on to third parties, with funds from RGR, in order to better present the Eletrobras responsibility resources of those loans and financing that do not constitute Eletrobras debt and should be settled by third parties with RGR, being Eletrobras responsible for the contractual management of these loans only. Accordingly, the amounts as of September 30, 2019 referring to receivables from loans and financing granted by RGR to third parties were segregated from other Eletrobras receivables and have equivalent liabilities (see Note 19).
Table 18: Receivables
|
|
CONSOLIDATED | |||||
|
|
09/30/2019 | |||||
|
|
CHARGES |
|
PRINCIPAL | |||
|
|
CIRCULANTE |
|
Current |
Non | ||
|
|
Avergae rate |
|
Value |
|
Current | |
|
ITAIPU |
7.05 |
|
- |
|
2,628,393 |
4,052,064 |
|
ELETROPAULO |
6.01 |
|
- |
|
- |
1,294,693 |
|
CEAL |
7.66 |
|
- |
|
121,167 |
1,459,532 |
|
AMAZONAS D |
7.74 |
|
35,133 |
|
- |
3,815,230 |
|
CEPISA |
5.91 |
|
- |
|
314,127 |
485,593 |
|
CERON |
- |
|
- |
|
- |
- |
|
ELETROACRE |
- |
|
- |
|
- |
- |
|
BOA VISTA |
5.94 |
|
3,904 |
|
23,357 |
139,076 |
|
CELPA |
5.96 |
|
208 |
|
1,931 |
5,277 |
|
EQUATORIAL MARANHÃ D |
0.27 |
|
314 |
|
25,995 |
69,481 |
|
ENERGISA - TO |
5.07 |
|
12 |
|
2,570 |
- |
|
CEMIG |
5.17 |
|
32 |
|
1,559 |
765 |
|
COPEL |
5.01 |
|
13 |
|
929 |
15 |
|
COELCE |
5.00 |
|
- |
|
- |
- |
|
CELESC DISTRIB. |
5.00 |
|
- |
|
- |
- |
|
CEEE |
5.00 |
|
- |
|
- |
- |
|
ESCELSA |
5.00 |
|
- |
|
- |
- |
|
CESP |
5.19 |
|
2 |
|
472 |
- |
|
REPASSE RGR |
5.00 |
|
184,223 |
280,222 |
787,641 | |
|
OUTRAS |
- |
|
91,942 |
|
22,086 |
122 |
|
(-) PCLD |
- |
|
(91,894) |
|
(20,268) |
- |
|
|
|
|
|
|
| |
|
Total |
|
|
223,889 |
|
3,402,540 |
12,109,489 |
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
16
During the privatization process of the distribution companies, CCC credits were granted, which are still being analyzed and supervised by Aneel. See Notes 9 and 12 of 3Q19.
Accounting Location 3Q19
Note 12 - Compensation Law
Registered Net Assets
|
R$ thousand | |||||
|
|
Amazonas |
Ceron |
Eletroacre |
Boa Vista |
Total |
|
NT Aneel + Claims under review Aneel + "inefficiency" |
1,921,312 |
2,667,535 |
249,142 |
166,119 |
5,004,108 |
|
Current Rights |
0 |
216,748 |
56,909 |
25,554 |
299,211 |
|
Total (a) |
1,921,312 |
2,884,283 |
306,051 |
191,673 |
5,303,319 |
Note 9- Loan and Financing: related to a loan due by Amazonas Energia as it received current credit granted to Eletrobras
|
R$ thousand | |||||
|
|
Amazonas |
Ceron |
Eletroacre |
Boa Vista |
Total |
|
Loan Conversion (b) |
442,366 |
0 |
0 |
0 |
442,366 |
Total Credits Granted
|
|
Amazonas |
Ceron |
Eletroacre |
Boa Vista |
Total |
|
Credits updated until 09/30/2019 (1) |
4,595,477 |
4,141,928 |
317,715 |
295,494 |
9,350,614 |
|
(-) total provision until to Sep/19 |
-2231798 |
-1,257,645 |
-11,664 |
-103,822 |
-3,604,929 |
|
Net credits (a + b) (2) |
2,363,678 |
2,884,283 |
306,051 |
191,673 |
5,745,685 |
(1) Credits restated up to September 30, 1919, by IPCA, after the transfer of control.
(2) Credits updated until September 30, 1919, by IPCA, based on the credit-generating fact, except for the portion of the economic-energy inefficiency (R$ 2.4 billion) provided by Amazonas Energia and Boa Vista Energia, which are updated
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
17
Table 20: Investments by Segment
|
Investiments (Corporate + Partnerships) |
Realizaded 3Q19 |
Invested 9M |
Budgeted PDNG 2019 |
|
Generation |
338 |
1,068 |
2,827 |
|
Corporate Deployment |
87 |
219 |
977 |
|
Corporate Expansion |
35 |
70 |
272 |
|
Maintenance |
75 |
368 |
925 |
|
SPEs Expansion |
142 |
412 |
654 |
|
Transmission |
196 |
584 |
2,516 |
|
Corporate Deployment |
2 |
3 |
12 |
|
Enlargement and Reinforcements and Improvements |
123 |
386 |
1,399 |
|
Maintenance |
46 |
130 |
735 |
|
SPEs Expansion |
25 |
65 |
369 |
|
Others* |
40 |
103 |
362 |
|
Total |
574 |
1,754 |
5,705 |
For further details of investments by subsidiary or project, see Annex 3 to this Investor Report.
Investment Highlights
GENERATION
· Angra 3: R$ 200 million
· UTE Santa Cruz: R$ 68.8 million
· Sistema NE e Itaparica: R$ 29.3 million (Resettlement Lawsuits)
· Angra 1 and 2: R$ 97.6 million
· Candiota 3: R$ 199.8 million
· Sinop: R$ 230 million
TRANSMISSION
· Eletronorte: R$ 70 million
· Chesf: R$ 246.2 million
· Eletrosul: R$ 27.2 million
· Furnas: 163 million
· Mata de Santa Genebra: R$ 65 million
NON-INVESTMENT
Avoided: - R$ 170.3 million
• Norte Energia (Belo Monte): R$ 101.3 million (release of reserve account, debentures issued by SPE, anticipated energy).
• ESBR: R$ 69 million (lower GSF and PLD)
Antecipated: - R$ 77 million in CGTEE: Candiota 3 overhaul cost forecasted for 2019 was realized in 2018 given the anticipation of the work.
Postponed: - R$ 1,415 million
• Angra 3: R$ 236 million (depends on resuming work);
• Angra 1 and 2: R$ 119 million;
• Santa Cruz TPP: R$ 116 million (replanning of equipment supply with forecast until Dec / 19);
• Reinforcements and Improvements - Chesf Transmission System: R$ 132 million;
• Reinforcements and Improvements - Furnas Transmission System: R$ 80 million;
• Maintenance - Furnas Transmission System: R$ 22 million;
• Maintenance - Chesf Transmission System: R$ 143 million;
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
18
• Expansion - Transmission System: R$ 125 million;
• Pindaí: R$ 37 million (contributions until the end of the year);
• TNE: R$ 139 million (regulatory issues and Ibama license delay);
• Itaparica: R$ 61 million;
• Casa Nova (BA): R$ 68 million (supplier contract termination)
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
19
I.5.2 Energy Sold in 3Q19 - Generators – TWh
In terms of energy market developments, Eletrobras Companies sold 37.4 TWh of energy in 3Q19, compared to 38.3 TWh traded in the same period of the previous year, which represents a reduction of 2.4%. These volumes include the energy sold from the plants under the quota system, renewed by Law 12,783/2013, as well as the plants under exploration (ACL- free market and ACR- regulated market).
I.5.2 Energy Sold in 9M19 - Generators * - TWh
In terms of the evolution of the energy market, Eletrobras Companies sold 103.9 TWh of energy in 9M19, against 110.4 TWh traded in the same period of the previous year, which represents a increase of 3.5%. These volumes include the energy sold from the plants under the quota system, renewed by Law 12,783 / 2013, as well as the plants under exploration (ACL and ACR). Does not include the energy sold by Eletrobras de Itaipu Binacional in 9M19.
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
20
In 3Q19, Eletrobras Holding posted net income of R$ 651 million, an increase of 129% compared to the net loss of R$ 2,265 million in 3Q18.
In 9M19, Eletrobras Holding posted net income of R$ 7,613 million, an increase of 1827% compared to the net loss of R$ 441 million recorded in 9M18.
This 9M19 result was decisively influenced by: (i) Discontinued operations reversal of R$ 5,037 million, due to the privatization of the distribution companies that began in 2018 and completed in 2Q19, highlighting Amazonas Energia Distribuidora; (ii) Equity Income, of R$ 5,192 million, mainly influenced by the results of the subsidiaries; partially offset by (iii) Provision ANEEL - CCC, in the amount of (R$ 1,676 million), related to credits assigned by Amazonas Energia Distribuidora to Eletrobras, but not recognized by Aneel (iv) worsening in the financial result influenced by the assumption of the Company's debt. BR Distribuidora in the privatization process of Amazonas Energia Distribuidora, impacting the debt charges item, which increased by R$ 402 million. The chart below shows a comparison of Eletrobras holding's results for the 9M18 to 9M19.
Note: The analysis of the results of each subsidiary is attached.
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
21
In 3Q19, the result of equity investments positively impacted the Company's result by R$ 1,444 million, mainly due to the equity income of investments in subsidiaries, as shown below:
Table 21: Shareholdings
|
|
|
R$ million |
|
|
|
|
Parent Company |
|
| |
|
|
9M19 |
9M18 |
3Q19 |
3Q18 |
|
Investments in subsidiaries |
|
|
|
|
|
Equity |
4,569 |
3,660 |
1,138 |
672 |
|
|
|
|
|
|
|
Investments in associates |
|
|
|
|
|
Equity |
630 |
857 |
306 |
418 |
|
|
|
|
|
|
|
Total |
5,200 |
4,517 |
1,444 |
1,090 |
II.2 Operational Provisions of Parent Company
In 3Q19, Operating Provisions impacted the Parent Company's results by R$ 546 million, compared to the R$ 1,737 million provision in 3Q18. The constitution of 3Q19 is mainly explained by (i) the provision recorded for CCC credits assigned by Amazonas Energia Distribuidora in the privatization process in the amount of R$ 690 million in 3Q19, without correspondent (ii) the constitution of compulsory loan in the amount of R$ 269 million in 3Q19 and R$ 1,518 million in 3Q18.
In 9M19, Operating Provisions impacted the Parent Company's results by R$ 1,858 million, compared to R$ 2,252 million in 9M18. This constitution is mainly explained by the provision recorded for CCC credits assigned by Amazonas Energia in the privatization process in the amount of R$ 1,676 million in 9M19, without corresponding in 3Q18; (ii) the constitution of a compulsory loan in the amount of R $ 449 million in 9M19 and R$ 1,883 million in 9M18.
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
22
|
R$ million |
|
| ||
|
Operational Provisions |
Parent company |
|
| |
|
|
9M19 |
9M18 (Reclassified) |
3Q19 |
3Q18 (Reclassified) |
|
Garanties |
-90 |
57 |
-19 |
-10 |
|
Contingencies |
282 |
1,883 |
207 |
1,507 |
|
PCLD - Consumers and Resellers |
0 |
0 |
0 |
0 |
|
PCLD - Financing and Loans |
-195 |
17 |
-426 |
5 |
|
Short-term liabilities in subsidiaries |
189 |
100 |
78 |
-53 |
|
Onerous Contracts |
0 |
0 |
0 |
0 |
|
Losses on Investments |
-13 |
316 |
15 |
282 |
|
Impairment |
0 |
0 |
0 |
0 |
|
ANEEL Provision - CCC |
1,676 |
0 |
690 |
0 |
|
Pará Fee |
0 |
0 |
0 |
0 |
|
Others |
8 |
-122 |
2 |
5 |
|
|
1,858 |
2,252 |
546 |
1,737 |
Table 23: Mutation Provision for Controlling Discovered Liabilities
|
MUTATION PROVISION FOR DISCOVERED LIABILITIES - PARENT COMPANY |
Balance on 12/31/2018 |
Equity |
Balance o 09/30/2019 |
|
CGTEE |
3,546 |
477 |
4,022 |
|
Amazonas GT |
338 |
-288 |
50 |
|
TOTAL PROVISION FOR UNCOVERED LIABILITIES |
3,884 |
189 |
4,073 |
II.3 Financial Results of Parent Company
In 3Q19, the Financial Result negatively impacted the Parent Company's results by R$ 62 million compared to the R$ 140 million in 3Q18, influenced by the SELIC update on compulsory loan lawsuits in the amount of R$ 186 million.
In 9M19, the Financial Result negatively impacted the Parent Company's result by R$ 102 million, a reduction of R$ 1,940 million compared to the 9M18 positive financial result, as shown below:
Table 24: Financial Result
|
FINANCIAL RESULT R$ milhões |
R$ million |
| ||
|
|
9M19 |
9M18 |
3Q19 |
3Q18 |
|
Financial income |
|
|
|
|
|
Interest income, commissions and fees |
1,633 |
3,079 |
563 |
670 |
|
Revenue from short-term investments |
368 |
408 |
222 |
140 |
|
Moratorium surcharge on electricity |
2 |
7 |
2 |
2 |
|
Net Monetary updates |
245 |
191 |
-51 |
-13 |
|
Net Exchange rate variations |
161 |
41 |
149 |
-41 |
|
Other financial income |
487 |
150 |
8 |
77 |
|
|
|
|
|
|
|
Financial Expenses |
|
|
|
|
|
Debt charges |
-1,590 |
-1,189 |
-562 |
-458 |
|
Lease charges |
-5 |
0 |
-2 |
0 |
|
Charges on shareholders' funds |
-181 |
-175 |
-62 |
-60 |
|
Other financial expenses |
-1,223 |
-571 |
-207 |
-179 |
|
|
-102 |
1,940 |
62 |
140 |
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
23
Current Eletrobras Organization Chart
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
24
Structural of Social Capital
In 3Q19, the capital of Eletrobras was composed as follows:
Table 25: Capital Structure
|
Shareholders |
Common |
Pref. Classe “A |
Pref. Class “B” |
Total | ||||
|
Quantity |
% |
Quantity |
% |
Quantity |
% |
Quantity |
% | |
|
União Federal |
554,395,652 |
51% |
0 |
0% |
892 |
0% |
554,396,544 |
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% |
226,021,418 |
85% |
495,898,179 |
37% |
|
Total |
1,087,050,297 |
100% |
146,920 |
100% |
265,436,883 |
100% |
1,352,634,100 |
100% |
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
25
Actions
Table 26: B3, ELET3, and ELET6
|
|
(R$) |
(R$) |
(pts.) |
(pts.) |
|
|
ELET3 B3 |
ELET6 B3 |
IBOV B3 |
IEE B3 |
|
Price and Volume |
(Shares ON) |
(Shares PN) |
(Index) |
(Índex) |
|
Closing Price on 09/30/2019 |
40.15 |
42.02 |
104745 |
68122 |
|
Maximum in the quarter |
46.83 |
47.27 |
105817 |
68992 |
|
Average in the quarter |
41.35 |
42.04 |
102522 |
66859 |
|
Minimum in the quarter |
34.57 |
35.45 |
96430 |
63503 |
|
|
|
|
| |
|
Change in 3Q19 |
13.9% |
16.7% |
3.7% |
6.7% |
|
Change over the last 12 months |
158.9% |
125.7% |
32.0% |
73.1% |
|
Average Daily Trading Volume 3Q19 (millions of shares) |
3.7 |
2.4 |
- |
- |
|
Average Daily Trading Volume 3Q19 (R$ million) |
152.5 |
100.5 |
- |
- |
|
|
|
|
|
|
|
Net Income per Share in the Quarter (R$) |
4.11 |
4.11 |
- |
- |
|
Net Asset Value per Share (R$) |
46.42 |
46.42 |
- |
- |
|
Price / Profit (P / E) (1) |
9.77 |
10.22 |
- |
- |
|
Price / Stockholders' Equity (B / W) (2) |
0.86 |
0.91 |
- |
- |
|
|
|
|
| |
|
(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. | ||||
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
26
Table 27: NYSE, EBRN, and EBRB
|
|
(US$) |
(US$) |
|
|
NYSE |
NYSE |
|
Preço e Volume |
EBRN |
EBRB |
|
Closing Price on 09/30/2019 |
9.58 |
10.05 |
|
Maximum in the quarter |
11.47 |
11.46 |
|
Average in the quarter |
10.32 |
10.46 |
|
Minimum in the quarter |
8.96 |
9.23 |
|
|
|
|
|
Change in 3Q19 |
5.0% |
8.9% |
|
Change over the last 12 months |
146.3% |
123.3% |
|
Average Daily Trading Volume 3Q19 (millions of shares) |
365.1 |
14.4 |
|
Average Daily Trading Volume 3Q19 (US$ million) |
3.8 |
0.2 |
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
27
Table 28: LATIBEX, XELTO, and XELTB
|
|
(€) |
(€) |
|
|
LATIBEX |
LATIBEX |
|
Price and Volume |
XELTO |
XELTB |
|
Closing Price on 09/30/2019 |
9.25 |
10.40 |
|
Maximum in the quarter |
10.00 |
10.40 |
|
Average in the quarter |
9.30 |
10.23 |
|
Minimum in the quarter |
8.25 |
10.10 |
|
|
|
|
|
Change in 3Q19 |
21.7% |
23.8% |
|
Change over the last 12 months |
187.3% |
176.6% |
|
Average Daily Trading Volume 3Q19 (millions of shares) |
1.3 |
0.8 |
|
Average Daily Trading Volume 3Q19 (Euro million) |
12.2 |
7.7 |
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
28
Nº of employees
Parent Company
Table 29: EMPLOYEES BY WORKING TIME
|
Working time at company (years) |
1Q19 |
2Q19 |
3Q19 |
|
Up to 5 |
21 |
20 |
21 |
|
6 to 10 |
356 |
330 |
304 |
|
11 to 15 |
211 |
183 |
191 |
|
16 to 20 |
58 |
106 |
121 |
|
21 to 25 |
14 |
12 |
12 |
|
more than 25 |
114 |
96 |
95 |
|
Total |
774 |
747 |
744 |
Table 30: EMPLOYEES BY STATE OF THE FEDERATION
|
State of the Federation |
| ||
|
1Q19 |
2Q19 |
3Q19 | |
|
Rio de Janeiro |
752 |
726 |
723 |
|
São Paulo |
1 |
1 |
1 |
|
Brasília |
21 |
20 |
20 |
|
Total |
774 |
747 |
744 |
Hired / Outsourced Labor
Table 31: CONTRACTED / THIRD-LABOR LABOR
|
1Q19 |
2Q19 |
3Q19 |
|
0 |
0 |
0 |
Turnover (Holding)
Table 32: HOLDING TURNOVER
|
1Q19 |
2Q19 |
3Q19 |
|
2.0% |
2.0% |
2.6% |
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
29
Balance Sheet
R$ thousand
|
Asset |
Parent Company |
Consolidated | ||
|
09.30.2019 |
12.31.18 |
09.30.2019 |
12.31.18 | |
|
Current |
|
|
| |
|
Cash and cash equivalents |
11,027 |
47,400 |
447,738 |
583,352 |
|
Restricted cash |
3,075,890 |
1,560,088 |
3,075,890 |
1,560,088 |
|
Marketable securities |
4,687,462 |
4,034,242 |
9,128,767 |
6,408,104 |
|
Customers |
340,068 |
379,649 |
5,489,493 |
4,079,221 |
|
Financial assets - Concessions and Itaipu |
0 |
0 |
4,977,319 |
6,013,891 |
|
Loans and financing |
7,166,587 |
8,257,761 |
3,626,429 |
3,903,084 |
|
Asset contractual transmission |
0 |
0 |
1,096,067 |
1,302,959 |
|
Equity Pay |
1,543,940 |
2,474,558 |
166,053 |
219,895 |
|
Taxes to recover |
511,344 |
488,591 |
980,780 |
1,216,261 |
|
Income tax and social contribution |
309,605 |
817,417 |
2,635,334 |
2,420,165 |
|
Reimbursement rights |
0 |
0 |
37,938 |
454,139 |
|
Warehouse |
332 |
274 |
400,184 |
380,292 |
|
Nuclear fuel stock |
0 |
0 |
538,827 |
510,638 |
|
Derivative financial instruments |
716 |
2,195 |
136,432 |
182,760 |
|
Hydrological risk |
0 |
0 |
33,133 |
81,301 |
|
Assets held for sale |
1,627,008 |
5,282,624 |
3,637,447 |
15,424,359 |
|
Credits with subsidiaries - CCD |
0 |
2,406,622 |
0 |
0 |
|
Other |
1,792,076 |
1,296,560 |
2,411,459 |
2,104,904 |
|
TOTAL CURRENT ASSETS |
21,066,055 |
27,047,981 |
38,819,290 |
46,845,413 |
|
|
|
|
|
|
|
NON CURRENT |
|
|
|
|
|
LONG-TERM |
|
|
|
|
|
Reimbursement rights |
5,303,319 |
3,234,542 |
5,336,032 |
5,802,172 |
|
Loans and financing |
21,218,463 |
20,518,018 |
12,109,489 |
9,971,857 |
|
Customers |
0 |
0 |
25,391 |
8,413 |
|
Marketable securities |
306,134 |
293,509 |
338,221 |
293,833 |
|
Nuclear fuel stock |
0 |
0 |
681,142 |
828,410 |
|
Taxes to recover |
0 |
0 |
451,084 |
265,805 |
|
Current Income Tax and Social Contribution |
0 |
0 |
0 |
0 |
|
Deferred income and social contribution taxes |
0 |
0 |
506,781 |
553,409 |
|
Escrow deposits |
3,632,016 |
3,307,301 |
6,278,498 |
5,788,905 |
|
Fuel Consumption Account - CCC |
0 |
0 |
13,332,401 |
13,268,837 |
|
Financial assets - Concessions and Itaipu |
2,560,415 |
2,603,118 |
34,596,244 |
34,100,453 |
|
Derivative financial instruments |
0 |
0 |
147,752 |
188,262 |
|
Advances for future capital increase |
1,691,379 |
1,140,732 |
208,607 |
459,563 |
|
Hydrological risk |
0 |
0 |
189,066 |
227,083 |
|
Other |
2,601,549 |
2,368,142 |
2,441,972 |
1,604,403 |
|
37,313,275 |
33,465,362 |
76,642,680 |
73,361,405 | |
|
INVESTMENTS |
75,901,276 |
71,871,802 |
28,793,636 |
27,983,348 |
|
Fixed assets net |
259,250 |
198,711 |
32,318,262 |
32,370,392 |
|
INTANGIBLE |
13,433 |
13,386 |
633,198 |
649,650 |
|
TOTAL NON-CURRENT ASSETS |
113,487,234 |
105,549,261 |
138,387,776 |
134,364,795 |
|
TOTAL ASSETS |
134,553,289 |
132,597,242 |
177,207,066 |
181,210,208 |
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
30
R$ thousand
|
Liabilities and Equity |
Parent Company |
Consolidated | ||
|
09.30.2019 |
12.31.18 |
09.30.2019 |
12.31.18 | |
|
CURRENT |
||||
|
Loans and financing |
5,365,476 |
7,031,515 |
7,258,051 |
12,066,912 |
|
Debentures |
126,450 |
0 |
184,980 |
36,073 |
|
Compulsory loan |
14,171 |
15,659 |
14,171 |
15,659 |
|
Suppliers |
407,535 |
569,218 |
2,492,690 |
3,360,550 |
|
Advances from customers |
675,380 |
357,275 |
744,621 |
421,002 |
|
Taxes payable |
72,641 |
166,523 |
1,399,481 |
1,277,051 |
|
Income tax and social contribution |
137,149 |
917,734 |
3,207,698 |
2,953,072 |
|
Onerous contracts |
0 |
0 |
3,913 |
9,436 |
|
Remuneration to shareholders |
1,312,390 |
1,257,502 |
1,318,023 |
1,305,633 |
|
Financial liabilities - Concessions and Itaipu |
1,196,901 |
799,401 |
0 |
0 |
|
Estimated liabilities |
128,480 |
134,474 |
1,463,953 |
1,366,376 |
|
Reimbursement Obligations |
2,083,104 |
1,250,619 |
2,083,104 |
1,250,619 |
|
Post-employment benefits |
4,609 |
29,336 |
149,542 |
164,160 |
|
Provisions for contingencies |
855,114 |
850,828 |
938,740 |
931,364 |
|
Regulatory charges |
0 |
0 |
676,637 |
653,017 |
|
Lease |
7,644 |
0 |
223,013 |
152,122 |
|
Accounts payable with subsidiaries |
0 |
2,866,810 |
0 |
0 |
|
Derivative financial instruments |
715 |
928 |
715 |
962 |
|
Liabilities associated with assets held for sale |
0 |
11,127,717 |
1,700,740 |
10,294,967 |
|
Others |
59,986 |
96,496 |
949,054 |
264,996 |
|
TOTAL CURRENT LIABILITIES |
12,447,745 |
27,472,035 |
24,809,126 |
36,523,971 |
|
|
|
|
| |
|
NON-CURRENT |
|
|
|
|
|
Loans and financing |
24,402,133 |
20,603,333 |
36,428,733 |
42,305,886 |
|
Suppliers |
0 |
0 |
18,142 |
16,555 |
|
Debentures |
5,002,303 |
0 |
5,414,834 |
432,155 |
|
Advances from customers |
0 |
0 |
388,517 |
448,881 |
|
Compulsory loan |
469,617 |
477,459 |
469,617 |
477,459 |
|
Obligation for asset retirement |
0 |
0 |
2,734,459 |
2,620,128 |
|
Fuel Consumption Account - CCC |
0 |
0 |
0 |
0 |
|
Provisions for contingencies |
17,524,770 |
17,604,730 |
24,372,778 |
23,196,295 |
|
Post-employment benefits |
1,196,286 |
1,196,286 |
3,097,392 |
2,894,949 |
|
Provision for unsecured liabilities |
4,072,626 |
3,883,600 |
0 |
0 |
|
Onerous contracts |
0 |
0 |
378,795 |
715,942 |
|
indemnification obligations |
0 |
0 |
0 |
0 |
|
Lease |
57,840 |
0 |
888,616 |
823,993 |
|
Grants payable - Use of public goods |
0 |
0 |
68,579 |
64,144 |
|
Advances for future capital increase |
4,054,016 |
3,873,412 |
4,061,821 |
3,873,412 |
|
Derivative financial instruments |
0 |
0 |
7,211 |
25,459 |
|
Regulatory charges |
0 |
0 |
751,285 |
721,536 |
|
Taxes payable |
0 |
0 |
225,208 |
248,582 |
|
Income tax and social contribution |
535,653 |
432,582 |
8,318,763 |
8,315,386 |
|
Others |
1,740,524 |
1,510,899 |
1,235,014 |
1,496,527 |
|
TOTAL NON-CURRENT LIABILITIES |
59,055,768 |
49,582,301 |
88,859,764 |
88,677,289 |
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
Share capital |
31,305,331 |
31,305,331 |
31,305,331 |
31,305,331 |
|
Capital reserves |
13,867,170 |
13,867,170 |
13,867,170 |
13,867,170 |
|
Revenue reserves |
15,887,829 |
15,887,829 |
15,887,829 |
15,887,829 |
|
Equity valuation adjustments |
0 |
0 |
0 |
0 |
|
Profits (losses) |
7,384,005 |
0 |
7,384,005 |
0 |
|
Accumulated other comprehensive income |
-5,394,559 |
-5,517,424 |
-5,394,559 |
-5,517,424 |
|
Non-controlling shareholders |
0 |
0 |
488,400 |
466,042 |
|
TOTAL SHAREHOLDERS' EQUITY |
63,049,776 |
55,542,906 |
63,538,176 |
56,008,948 |
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
134,553,289 |
132,597,242 |
177,207,066 |
181,210,208 |
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
31
Income Statement
R$ thousand
|
Parent Company |
Consolidated | |||
|
09.30.2019 |
09.30.18 |
09.30.2019 |
09.30.18 | |
|
NET OPERATING REVENUE |
241,544 |
339,247 |
20,386,498 |
18,638,297 |
|
Operating costs |
|
|
|
|
|
Energy purchased for resale |
-54,405 |
-27,008 |
-1,492,958 |
-1,348,592 |
|
Charges upon use of electric network |
0 |
0 |
-1,232,548 |
-1,211,037 |
|
Construction |
0 |
0 |
-539,670 |
-833,281 |
|
Fuel for electricity production |
0 |
0 |
-1,466,758 |
-799,611 |
|
NET OPERATING REVENUE |
187,139 |
312,239 |
15,654,564 |
14,445,776 |
|
Operating expenses |
|
|
|
|
|
Personnel, Supllies and Services |
-531,113 |
-490,748 |
-5,418,314 |
-5,611,955 |
|
Depreciation |
-10,081 |
-3,380 |
-1,233,278 |
-1,202,427 |
|
Amortization |
0 |
0 |
-78,648 |
-66,578 |
|
Donations and contributions |
-85,867 |
-87,864 |
-151,658 |
-125,573 |
|
Operating Provisions /Reversals net |
-1,857,769 |
-2,251,820 |
-3,121,076 |
-2,379,922 |
|
Investigation Findings |
0 |
0 |
0 |
0 |
|
Others |
-86,121 |
-114,940 |
-826,921 |
-788,650 |
|
-2,570,951 |
-2,948,752 |
-10,829,895 |
-10,175,105 | |
|
OPERATING INCOME BEFORE FINANCIAL RESULT |
-2,383,812 |
-2,636,513 |
4,824,669 |
4,270,671 |
|
Financial result |
|
|
|
|
|
Financial income |
|
|
|
|
|
Income from interest, commissions and fees |
1,633,008 |
3,078,888 |
802,014 |
2,122,927 |
|
Income from financial investments |
367,576 |
408,405 |
619,277 |
566,450 |
|
Moratorium on electricity |
2,306 |
6,728 |
193,969 |
186,069 |
|
Restatement Assets |
723,428 |
740,825 |
552,054 |
560,528 |
|
Current foreign currency exchange rate variations |
2,233,891 |
4,033,281 |
2,244,126 |
3,907,523 |
|
Payment of indemnities - Law 12,783 / 13 |
0 |
0 |
1,626,166 |
0 |
|
Regulatory asset update |
0 |
0 |
0 |
0 |
|
Gains on derivatives |
0 |
0 |
0 |
61,637 |
|
Other financial income |
486,983 |
149,748 |
836,588 |
478,266 |
|
Financial expenses |
|
|
|
|
|
Debt charges |
-1,590,490 |
-1,188,879 |
-2,655,232 |
-1,854,685 |
|
Lease charges |
-4,733 |
0 |
-256,353 |
0 |
|
Charges on shareholders' funds |
-180,604 |
-175,302 |
-210,864 |
-205,391 |
|
Noncurrent Restatement |
-478,019 |
-549,863 |
-557,419 |
-652,439 |
|
Noncurrent foreign currency exchange rate variations |
-2,072,605 |
-3,992,565 |
-2,180,067 |
-4,122,023 |
|
Regulatory liability update |
0 |
0 |
0 |
-2,064,571 |
|
Losses on derivatives |
0 |
0 |
-67,076 |
-5,974 |
|
Other financial expenses |
-1,223,145 |
-570,857 |
-1,718,677 |
-1,084,379 |
|
-102,404 |
1,940,409 |
-771,494 |
-2,106,062 | |
|
INCOME BEFORE EQUITY |
-2,486,216 |
-696,104 |
4,053,175 |
2,164,609 |
|
RESULTS OF EQUITY |
5,199,648 |
2,846,019 |
679,292 |
1,224,320 |
|
OTHER REVENUE AND EXPENDITURE |
0 |
0 |
237,404 |
0 |
|
OPERATING INCOME BEFORE TAXES |
2,713,432 |
2,149,915 |
4,969,871 |
3,388,929 |
|
Current Income tax and social contribution |
-137,149 |
-586,656 |
-2,575,092 |
-2,160,664 |
|
Deferred Income Tax and Social Contribution |
0 |
0 |
192,241 |
369,687 |
|
NET INCOME/LOSS FOR THE PERIOD |
2,576,283 |
1,563,259 |
2,587,020 |
1,597,952 |
|
SHARE ATTRIBUTED TO CONTROLLING |
2,576,283 |
1,563,259 |
2,576,283 |
1,563,259 |
|
SHARE ATTRIBUTED TO NON-CONTROLLING |
0 |
0 |
10,737 |
34,693 |
|
DISCONTINUED OPERATION |
|
|
|
|
|
NET LOSS OF OPERATING TAXES DISCONTINUED |
5,037,140 |
-2,004,004 |
5,037,140 |
-2,002,413 |
|
NET INCOME (LOSS) OF THE FINANCIAL YEAR |
7,613,423 |
-440,745 |
7,624,160 |
-404,461 |
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
32
Cash Flow Statement
R$ thousand
|
|
Parent Company |
Consolidated | ||
|
09.30.2019 |
09.30.18 |
09.30.2019 |
09.30.18 | |
|
Operating Activities |
|
|
|
|
|
Income before income tax and social contribution |
2,713,432 |
2,149,915 |
4,969,870 |
3,388,928 |
|
Adjustments to reconcile income to cash provided by operations: |
|
|
|
|
|
Depreciation and amortization |
10,081 |
3,380 |
1,311,926 |
1,269,005 |
|
Net monetary variations |
-245,409 |
-190,962 |
5,365 |
91,911 |
|
Net foreign exchange rate variations |
-161,286 |
-40,716 |
-64,059 |
214,500 |
|
Financial charges |
-862,559 |
-2,148,292 |
1,284,797 |
-526,525 |
|
Financial asset revenue |
0 |
0 |
-581,937 |
-620,719 |
|
Construction Revenue |
0 |
0 |
-433,189 |
-610,478 |
|
Equivalence equity results |
-5,199,648 |
-2,846,019 |
-679,292 |
-1,224,320 |
|
Result on disposal of equity interests |
0 |
0 |
-237,404 |
0 |
|
RBSE Revenue |
0 |
0 |
-2,959,000 |
-3,495,992 |
|
Provision (reversal) for short-term liabilities |
189,026 |
99,662 |
0 |
0 |
|
Provision (reversal) for doubtful accounts |
-195,493 |
16,556 |
-13,093 |
125,249 |
|
Provision (reversal) for contingencies |
282,281 |
1,883,406 |
1,039,086 |
3,020,990 |
|
Provision (reversal) for impairment of assets |
0 |
0 |
0 |
434,586 |
|
Provision (reversal) for onerous contract |
0 |
0 |
-342,671 |
-602,481 |
|
Provision (reversal) for losses on investments |
-12,712 |
316,334 |
-47,749 |
428,475 |
|
TRFH – (Pará rate) |
0 |
0 |
0 |
0 |
|
Provision (reversal) Aneel - CCC |
1,676,028 |
0 |
1,676,028 |
0 |
|
RGR Charges |
824,774 |
258,283 |
824,774 |
258,283 |
|
Non-controlling interest |
0 |
0 |
-16,243 |
-73,000 |
|
Charges on shareholders' funds |
180,604 |
175,302 |
210,864 |
205,390 |
|
Financial instruments - derivatives |
0 |
0 |
67,076 |
-55,663 |
|
Others |
143,941 |
-156,528 |
-278,493 |
-596,679 |
|
|
-3,370,372 |
-2,629,595 |
766,786 |
-1,757,469 |
|
(Increases) / decreases in operating assets |
|
|
|
|
|
Customers |
20,441 |
-74 |
-1,446,390 |
252,813 |
|
Marketable securities |
-653,220 |
1,917,319 |
-2,752,426 |
900,386 |
|
Reimbursement rights |
442,367 |
0 |
882,341 |
1,040,368 |
|
Warehouse |
-58 |
-23 |
-19,892 |
-65,907 |
|
Nuclear fuel stock |
0 |
0 |
119,079 |
9,044 |
|
Financial assets - Itaipu and public service concessions |
440,203 |
-458,425 |
440,203 |
-458,425 |
|
Assets held for sale |
3,655,616 |
0 |
11,786,912 |
-9,628,815 |
|
Hydrological risk |
0 |
0 |
86,185 |
92,551 |
|
Credits with subsidiaries - CCD |
2,406,622 |
-1,485,926 |
0 |
0 |
|
Others |
-1,494,911 |
367,428 |
-3,442,621 |
4,759,984 |
|
4,817,059 |
340,299 |
5,653,391 |
-3,098,001 | |
|
Increase / (decrease) in operating liabilities |
|
|
|
|
|
Suppliers |
-33,889 |
-26,994 |
-738,479 |
1,893,066 |
|
Advances from customers |
0 |
0 |
-54,850 |
200,290 |
|
Lease |
65,484 |
0 |
547,282 |
232,575 |
|
Estimated liabilities |
-5,994 |
32,212 |
-138,150 |
95,524 |
|
indemnification obligations |
0 |
0 |
0 |
-413,785 |
|
Sectorial charges |
0 |
0 |
53,369 |
36,666 |
|
Liabilities associated with assets held for sale |
-2,497,757 |
0 |
-8,594,227 |
5,435,797 |
|
Accounts payable with subsidiaries |
-2,866,810 |
0 |
0 |
0 |
|
Other |
326,194 |
126,160 |
-790,033 |
-4,409,641 |
|
-5,012,772 |
131,378 |
-9,715,088 |
3,070,492 | |
|
|
|
|
| |
|
Payment of financial charges |
-880,077 |
-792,344 |
-2,393,601 |
-2,074,482 |
|
Financial asset revenue |
-150,531 |
-145,028 |
-150,531 |
-145,028 |
|
Finance charges revenue |
0 |
0 |
772,340 |
722,036 |
|
income tax payment and social contribution |
0 |
0 |
4,739,395 |
5,171,030 |
|
Payment of refinancing of taxes and contributions - principal |
1,373,956 |
1,051,406 |
915,023 |
527,380 |
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
33
|
Payment of income tax and social contribution |
-224,783 |
-141,810 |
-2,000,114 |
-1,432,822 |
|
Refinancing payment of taxes and contributions - principal |
0 |
0 |
-22,092 |
-44,887 |
|
Interest on equity investments revenue |
1,956,884 |
943,886 |
563,787 |
608,213 |
|
Supplementary pension payment |
-24,727 |
-21,439 |
-205,191 |
-217,198 |
|
Payment of court contingencies |
-819,500 |
-804,407 |
-902,011 |
-902,949 |
|
Bail Bonds and Deposits |
-347,894 |
-150,455 |
-235,819 |
-218,045 |
|
Net cash provided by (used in) operating activities of continuing operations |
30,675 |
-68,195 |
2,756,144 |
3,597,197 |
|
Net cash provided by (used in) operating activities of discontinued operations |
0 |
0 |
-379,997 |
-933,170 |
|
Net cash provided by (used in) operating activities |
30,675 |
-68,195 |
2,376,147 |
2,664,027 |
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
Loans and financing |
5,000,000 |
0 |
5,690,208 |
732,378 |
|
Payment of loans and financing - Main |
-8,671,179 |
-2,275,838 |
-10,806,147 |
-5,042,995 |
|
Payment of shareholders remuneration |
-476 |
-729 |
-11,569 |
-10,674 |
|
Advanced receivalbe for future capital increase |
0 |
0 |
0 |
0 |
|
RGR resource for transfer |
-37,519 |
0 |
-411,768 |
0 |
|
Other |
0 |
0 |
-19,254 |
11,592 |
|
Net cash provided by (used in) financing activities from continuing operations |
-3,709,174 |
-2,276,567 |
-5,558,530 |
-4,309,699 |
|
Net cash provided by (used in) financing activities of discontinued operations |
0 |
0 |
414,724 |
971,313 |
|
Net cash provided by (used in) financing activities |
-3,709,174 |
-2,276,567 |
-5,143,806 |
-3,338,387 |
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
Lending and financing |
-612,758 |
-239,002 |
-24,907 |
0 |
|
loans and financing receivables |
4,299,065 |
2,270,594 |
3,661,485 |
1,714,585 |
|
Acquisition of fixed assets |
-166 |
-3,732 |
-1,002,419 |
-649,116 |
|
Acquisition of intangible assets |
-53 |
0 |
-24,736 |
-20,826 |
|
Acquisition of concession assets |
|
|
|
|
|
Acquisition / capital investment in equity |
-11,460 |
-140,700 |
-247,973 |
-613,727 |
|
Advance concession for future capital increase |
-447,761 |
0 |
-99,283 |
-88,524 |
|
Investment sale in shareholdings |
415,259 |
363,813 |
431,259 |
443,140 |
|
Net cash flow in the acquisition of investees |
0 |
0 |
0 |
0 |
|
Other |
0 |
0 |
-26,654 |
13,272 |
|
Net cash provided by (used in) investing activities from continuing operations |
3,642,126 |
2,250,973 |
2,666,772 |
798,805 |
|
Net cash provided by (used in) investment activities of discontinued operations |
0 |
0 |
6,337 |
-25,016 |
|
Net cash provided by (used in) investing activities |
3,642,126 |
2,250,973 |
2,673,109 |
773,789 |
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents |
-36,373 |
-93,789 |
-94,550 |
99,429 |
|
|
|
|
|
|
|
Cash and cash equivalents at the beginning of the financial year |
47,400 |
161,326 |
583,352 |
792,252 |
|
Cash and cash equivalents at the end of the financial year |
11,027 |
67,537 |
447,738 |
878,555 |
|
Increase (decrease) in cash and cash equivalents |
0 |
0 |
41,064 |
13,126 |
|
-36,373 |
-93,789 |
-94,550 |
99,429 |
|
Disclaimer: This TThis material contains calculations that may not produce an accurate sum or result due to rounding. |
34
|
CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS | ||
|
By: |
/S/ Elvira Baracuhy Cavalcanti Presta
|
|
|
Elvira Baracuhy Cavalcanti Presta
CFO and Investor Relations Officer |
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This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.