By Vladimir Platonow
Eletrobras, Latin America’s biggest electricity company, registered a net profit of BRL 2.7 billion in the first quarter of 2022. The figure was released on Monday (Apr. 16). It is 69 percent higher than the result in the same period in 2021, and it was positively impacted by the 12 percent increase of gross revenue, and also by the company’s financial performance, with emphasis on the positive effect of the exchange rate variation.
The 3.4 percent reduction in PMSO expenses – which accounts for personnel (P), material (M), outsourced services (S), and other expenses (O) items, has also contributed to the positive result. On the other hand, there was a record of BRL 1.2 billion in provisions for doubtful accounts, arising from defaults of the distributor Amazonas Energia.
Net operating revenue grew by 12 percent, influenced by the readjustment of bilateral contracts and transmission revenues, increase in fixed rates at Angra I and II nuclear plants, and better performance at UTE Candiota III thermal power plant. The reduction in the company’s net debt by 4.6 percent is another positive point in the quarter, maintaining the net debt/recurring EBITDA ratio at 1, reinforcing the company’s focus on financial discipline and liquidity, and ending the quarter with a consolidated cash position of BRL 15 billion.
Provisions for contingencies in the period totaled BRL 671 million. BRL 300 million out of this amount are related to the compulsory loan. Eletrobras ended the quarter with an installed capacity of 50,491 megawatts (MW), equivalent to 28 percent of the country’s electricity generation, while in the transmission segment the company owns around 40 percent of Brazil’s lines.