DFR -
Investor Relations Superintendence
Marketletter - Annex I - 1Q20
Financial Information of the
Subsidiaries
|
STATEMENT OF INCOME 03/31/2019
|
Furnas
|
Chesf
|
Eletrosul
|
Eletronorte
|
Eletropar
|
Eletronuclear
|
CGTEE
|
Amazonas GT
|
|
Operating Revenues
|
2,169,285
|
1,174,661
|
552,654
|
1,130,913
|
8
|
757,417
|
95,540
|
734,537
|
|
|
|
|
|
|
|
|
|
|
|
Electric Energy Supply (sell) -
Generation
|
1,041,344
|
8,458
|
226,791
|
468,150
|
0
|
865,754
|
105,860
|
1,026,877
|
|
Electric Energy Supply - Generation
|
183,705
|
159,614
|
0
|
217,605
|
0
|
0
|
0
|
0
|
|
Short Term Electric Energy -
Generation
|
43,317
|
105,401
|
38,059
|
172,043
|
0
|
0
|
0
|
508
|
|
Revenue from Operation and Maintenance - Renewed
Lines - Generation
|
298,316
|
530,531
|
0
|
7,489
|
0
|
0
|
0
|
0
|
|
Revenue from Construction of Plants -
Generation
|
3,617
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Financial – Return on Investment -
Generation
|
0
|
4,293
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Revenue from Operation and Maintenance - Renewed
Lines - Transmission
|
356,423
|
348,796
|
163,329
|
102,631
|
0
|
0
|
0
|
0
|
|
Revenue from Operation and Maintenance -
Transmission
|
40,763
|
22,495
|
69,713
|
60,623
|
0
|
0
|
0
|
3,662
|
|
RBSE Income
|
513,570
|
166,617
|
51,694
|
194,784
|
0
|
0
|
0
|
0
|
|
Revenue from Construction of Plants - Transmission
|
84,715
|
9,475
|
7,526
|
6,024
|
0
|
0
|
0
|
4,252
|
|
Financial – Return on Investment -
Transmission
|
24,749
|
54,550
|
52,124
|
62,384
|
0
|
0
|
0
|
2,762
|
|
Other Revenues
|
4,055
|
5,416
|
15,970
|
100,531
|
8
|
0
|
67
|
0
|
|
|
|
|
|
|
|
|
|
|
|
Deductions to Operating Revenues
|
(425,289)
|
(240,985)
|
(72,552)
|
(261,351)
|
0
|
(108,337)
|
(10,387)
|
(303,524)
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
(1,071,486)
|
(735,975)
|
(289,407)
|
(781,134)
|
(3,840)
|
(581,472)
|
(143,423)
|
(434,204)
|
|
|
|
|
|
|
|
|
|
|
|
Personnel, Supplies and Services
|
(412,877)
|
(311,405)
|
(113,587)
|
(349,276)
|
(1,146)
|
(199,128)
|
(49,679)
|
(60,566)
|
|
Extraordinary Retirement Plan (PAE)
|
(19,560)
|
(32,909)
|
(13,355)
|
(90,852)
|
0
|
(3,379)
|
0
|
(463)
|
|
Energy Purchased for Resale
|
(206,401)
|
(62,080)
|
(87,263)
|
(50,561)
|
0
|
0
|
(54,911)
|
(42,979)
|
|
Charges upon use of eletricity
network
|
(149,474)
|
(182,999)
|
(5,611)
|
(145,360)
|
0
|
(34,120)
|
(4,582)
|
(10,016)
|
|
Construction
|
(57,044)
|
(39,409)
|
(7,305)
|
(6,885)
|
0
|
0
|
0
|
(3,236)
|
|
Electric Energy production cost
|
(43,955)
|
0
|
0
|
0
|
0
|
(105,822)
|
0
|
(281,622)
|
|
Donations and Contributions
|
(10,256)
|
(8,557)
|
0
|
(731)
|
0
|
0
|
0
|
(166)
|
|
Depreciation and Amortization
|
(66,010)
|
(31,411)
|
(43,173)
|
(109,581)
|
(6)
|
(129,744)
|
(17,937)
|
(26,090)
|
|
Operating Provisions
|
(50,705)
|
(65,469)
|
(9,755)
|
9,870
|
(2,509)
|
(72,891)
|
7,858
|
(3,965)
|
|
Others
|
(55,204)
|
(1,736)
|
(9,358)
|
(37,758)
|
(179)
|
(36,388)
|
(24,172)
|
(5,101)
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING RESULT BEFORE FINANCIAL RESULT
|
1,097,799
|
438,686
|
263,247
|
349,779
|
(3,832)
|
175,945
|
(47,883)
|
300,333
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL REVENUES (EXPENSES)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from financial investments
|
8,899
|
10,639
|
13,951
|
23,750
|
1,596
|
1,013
|
986
|
(16)
|
|
Income from Interest, Commission and Fees
|
(65)
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Additional Interest on Energy
|
2,258
|
27,185
|
0
|
31,539
|
0
|
0
|
0
|
0
|
|
Monetary Adjustment Gain
|
10,558
|
9,830
|
305
|
59,799
|
0
|
3,317
|
3
|
775
|
|
Exchange Variation Gain
|
559
|
0
|
29,977
|
29,509
|
0
|
59,456
|
0
|
0
|
|
Fair value adjustment - RBSE gain
|
198,736
|
14,775
|
0
|
25,754
|
0
|
0
|
0
|
0
|
|
Derivatives financial instruments
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Other Financial Income
|
9,228
|
717
|
38,603
|
778
|
3
|
26,726
|
0
|
31,466
|
|
Debt Charges - financing and loans
|
(180,900)
|
(41,026)
|
(56,277)
|
(61,502)
|
0
|
(15,680)
|
(98,288)
|
(59,816)
|
|
Debt Charges - suppliers
|
0
|
0
|
(150)
|
0
|
0
|
0
|
0
|
0
|
|
Debt Charges - leasing
|
(85)
|
0
|
(885)
|
(1,361)
|
0
|
0
|
0
|
(80,847)
|
|
Charges on shareholders's funds
|
(3,756)
|
0
|
(446)
|
(28,484)
|
0
|
0
|
(1,582)
|
0
|
|
Monetary Adjustment Loss
|
(25,233)
|
(60)
|
(10,022)
|
(73,086)
|
0
|
(14,696)
|
0
|
(14,653)
|
|
Exchange Variation Loss
|
(2,664)
|
0
|
(28,049)
|
(31,864)
|
0
|
(22,030)
|
0
|
(224)
|
|
Fair value adjustment - RBSE loss
|
(165,817)
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Losses on derivatives
|
0
|
0
|
0
|
(18,230)
|
0
|
0
|
0
|
0
|
|
Other Financial Expenses
|
(75,602)
|
(13,163)
|
(2,375)
|
(13,115)
|
(174)
|
(42,421)
|
(836)
|
(12,147)
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT/LOSS BEFORE RESULTS OF EQUITY INVESTMENTS,
TAXES AND SOCIAL CONTRIBUTIONS
|
(223,884)
|
8,897
|
(15,368)
|
(56,513)
|
1,425
|
(4,315)
|
(99,717)
|
(135,462)
|
|
|
|
|
|
|
|
|
|
|
|
RESULTS OF EQUITY METHOD INVESTMENTS
|
40,610
|
32,909
|
(47,508)
|
38,630
|
(521)
|
0
|
0
|
0
|
|
|
|
|
|
|
|
|
|
|
|
OTHER OPERATING INCOME/EXPENSES
|
0
|
137,355
|
0
|
0
|
0
|
0
|
0
|
0
|
|
|
|
|
|
|
|
|
|
|
|
RESULT BEFORE SOCIAL CONTRIBUTION, INCOME TAX,
EMPLOYEES AND MANAGEMENT PARTICIPATION AND MINORITY PARTICIPATION
|
914,525
|
617,847
|
200,371
|
331,896
|
(2,928)
|
171,630
|
(147,600)
|
164,871
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax and Social Contribution and Fiscal
Incentives Revenue
|
(11,919)
|
(273,163)
|
(84,704)
|
18,382
|
(29)
|
(51,967)
|
0
|
(42,706)
|
|
|
|
|
|
|
|
|
|
|
|
RESULT BEFORE EQUITY PARTICIPATIONS
|
902,606
|
344,684
|
115,667
|
350,278
|
(2,957)
|
119,663
|
(147,600)
|
122,165
|
|
|
|
|
|
|
|
|
|
|
|
Minority Participation
|
2
|
0
|
115
|
0
|
0
|
0
|
0
|
0
|
|
NET INCOME FOR THE PERIOD
|
902,604
|
344,684
|
115,782
|
350,278
|
(2,957)
|
119,663
|
(147,600)
|
122,165
|
DFR -
Investor Relations Superintendence
Marketletter - Annex I - 1Q20
Financial Information of the
Subsidiaries
|
CASH FLOWS 03/31/2020
|
Furnas
|
Chesf
|
CGT Eletrosul
|
Eletronorte
|
Eletronuclear
|
Eletropar
|
Amazonas GT
|
|
Operating Activities
|
|
|
|
|
|
|
|
|
Profit (loss) before income tax and social
contribution
|
114,827
|
477,928
|
7,366
|
289,476
|
334,306
|
25,937
|
191,705
|
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization
|
71,838
|
36,381
|
58,897
|
109,140
|
149,479
|
1
|
40,256
|
|
Net monetary variations
|
(10,663)
|
(10,091)
|
8,350
|
2,027
|
3,974
|
0
|
2,939
|
|
Net exchange variations
|
96,717
|
0
|
147,417
|
117,627
|
75,253
|
0
|
25
|
|
Financial Charges
|
161,848
|
23,139
|
52,926
|
73,657
|
148,688
|
0
|
124,780
|
|
Financial Income - Concession Assets
|
(39,588)
|
(65,164)
|
(30,061)
|
(62,376)
|
0
|
0
|
(2,593)
|
|
Construction Income
|
(45,736)
|
(54,026)
|
(52,951)
|
0
|
0
|
0
|
0
|
|
RBSE Income
|
(547,807)
|
(213,905)
|
(55,426)
|
(199,061)
|
0
|
0
|
0
|
|
Result of equity method investees
|
103,149
|
(59,636)
|
14,629
|
(22,503)
|
0
|
(2,825)
|
0
|
|
Provision (reversal) for uncovered
liabilities
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Bad Debt Expense (reversals)
|
23,737
|
35,102
|
2,150
|
(25,856)
|
0
|
0
|
48,138
|
|
Provisions for litigation
|
(433)
|
64,957
|
(16,344)
|
105,022
|
(16,708)
|
0
|
107
|
|
Provision (reversal) for impairment of
assets
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Provisions (reversals) for onerous
contracts
|
0
|
0
|
21,283
|
0
|
0
|
0
|
0
|
|
Impairment (reversal) of investment
losses
|
0
|
0
|
0
|
0
|
15
|
0
|
0
|
|
Minor shareholders' share
|
(16)
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Charges on resources from shareholders'
compensation
|
7,725
|
0
|
1,538
|
14,333
|
0
|
0
|
0
|
|
Financial Instruments - Derivatives Net
Income
|
0
|
0
|
0
|
118,528
|
0
|
0
|
0
|
|
Other adjustments before IR / CS
(LAIR)
|
192,892
|
140,101
|
(199,629)
|
90,989
|
(241,315)
|
375
|
6,471
|
|
(Increase) decrease on operating
assets/liabilities
|
28,935
|
(352,793)
|
(244,672)
|
362,661
|
(160,015)
|
(23,463)
|
(244,549)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from Operating
Activities
|
157,425
|
21,993
|
(284,527)
|
973,664
|
293,677
|
25
|
167,279
|
|
|
|
|
|
|
|
|
|
|
Payment of interest
|
(236,383)
|
(15,352)
|
(36,047)
|
(41,372)
|
(148,359)
|
0
|
(44,470)
|
|
Amounts received from allowed annual
revenue
|
63,035
|
16,006
|
292,846
|
85,225
|
0
|
0
|
0
|
|
Receipt of Financial Asset Indemnities
(RBSE/Ke)
|
840,134
|
503,123
|
90,619
|
260,440
|
0
|
0
|
0
|
|
Receipt of interest
|
7,245
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Payment of income tax and social
contributions
|
(432,596)
|
(1,031)
|
(83,025)
|
(243,990)
|
(105,836)
|
0
|
0
|
|
Payment of refinancing of taxes and contributions
- principal
|
(7,191)
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Receipt of financial asset
compensation
|
0
|
0
|
1,314
|
0
|
0
|
209
|
0
|
|
Pension Plan Payments
|
(11,531)
|
(40,145)
|
(1,013)
|
0
|
(1,129)
|
0
|
0
|
|
Payment of legal provisions
|
0
|
(7,052)
|
0
|
(221)
|
0
|
0
|
0
|
|
Judicial Deposits
|
(5,008)
|
26,012
|
(20,273)
|
0
|
(23)
|
0
|
(7,360)
|
|
|
|
|
|
|
|
|
|
|
Net Cash from (used in) Operating
Activities
|
375,130
|
503,554
|
(40,106)
|
1,033,746
|
38,330
|
234
|
115,449
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Financing
Activities
|
|
|
|
|
|
|
|
|
Loans and financing
|
924,335
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Payment of Loans and financing -
principal
|
(1,018,341)
|
(57,589)
|
(88,616)
|
(107,778)
|
(69,987)
|
0
|
(59,191)
|
|
Payment of Shareholders Remuneration
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Advances for Future Capital Increase
(AFAC)
|
0
|
0
|
131,339
|
0
|
98,716
|
0
|
0
|
|
Payment of refinancing of taxes and contributions
- principal
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Others
|
(5,496)
|
0
|
31,964
|
0
|
0
|
0
|
0
|
|
Net Cash from (used in) Financing
Activities
|
(99,502)
|
(57,589)
|
74,687
|
(107,778)
|
28,729
|
0
|
(59,191)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investment
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and Financing - Payment
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Loans and Financing - Receipt
|
84
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Acquisition of fixed assets
|
(63,074)
|
(58,589)
|
(5,567)
|
(4,718)
|
(45,919)
|
0
|
(138)
|
|
Acquisition of intangible assets
|
(2,973)
|
(11,085)
|
(345)
|
(401)
|
(807)
|
0
|
0
|
|
Capital investment in equity
investments
|
(25,250)
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Investment for future capital
increases
|
0
|
(6,000)
|
0
|
0
|
0
|
0
|
0
|
|
Sale of investments in equity
interests
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Others
|
(93,978)
|
(315,443)
|
(20,114)
|
(904,870)
|
(20,676)
|
0
|
(32)
|
|
Net Cash from (used in) investments
activities
|
(185,191)
|
(391,117)
|
(26,026)
|
(909,989)
|
(67,402)
|
0
|
(170)
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash
equivalents
|
90,437
|
54,848
|
8,555
|
15,979
|
(343)
|
234
|
56,088
|
|
Cash and cash equivalents – beginning of
period
|
72,607
|
118,001
|
13,981
|
4,098
|
8,706
|
23
|
66,252
|
|
Cash and cash equivalents – end of
period
|
163,044
|
172,849
|
22,536
|
20,077
|
8,363
|
257
|
122,340
|
|
|
90,437
|
54,848
|
8,555
|
15,979
|
(343)
|
234
|
56,088
|
DFR -
Investor Relations Superintendence
Marketletter - Annex I - 1Q20
Financial Information of the
Subsidiaries
|
CASH FLOWS 03/31/2019
|
Furnas
|
Chesf
|
Eletrosul
|
Eletronorte
|
Eletronuclear
|
CGTEE
|
Eletropar
|
Amazonas GT
|
|
Operating Activities
|
|
|
|
|
|
|
|
|
|
Profit (loss) before income tax and social
contribution
|
914,525
|
617,847
|
200,371
|
331,896
|
171,630
|
(147,600)
|
(2,928)
|
164,871
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization
|
66,010
|
31,411
|
43,173
|
109,581
|
129,744
|
17,007
|
6
|
26,090
|
|
Net monetary variations
|
14,675
|
(9,770)
|
9,717
|
31,310
|
11,379
|
0
|
0
|
13,878
|
|
Net exchange variations
|
2,105
|
0
|
(1,928)
|
2,355
|
(37,426)
|
0
|
0
|
224
|
|
Financial Charges
|
200,545
|
41,026
|
57,312
|
61,502
|
15,680
|
86,587
|
0
|
140,663
|
|
Financial Income - Concession Assets
|
(24,749)
|
(58,843)
|
(52,124)
|
(62,384)
|
0
|
0
|
0
|
(2,762)
|
|
Construction Income
|
(88,332)
|
(9,475)
|
(7,526)
|
(6,024)
|
0
|
0
|
0
|
(4,252)
|
|
RBSE Income
|
(513,570)
|
(166,617)
|
(51,694)
|
(194,784)
|
0
|
0
|
0
|
0
|
|
Result of equity method investees
|
(40,610)
|
(32,909)
|
47,508
|
(38,630)
|
0
|
0
|
521
|
0
|
|
Provision (reversal) for uncovered
liabilities
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Bad Debt Expense (reversals)
|
4,779
|
17,557
|
206
|
(4,463)
|
0
|
0
|
0
|
0
|
|
Provisions for litigation
|
115,720
|
36,137
|
8,300
|
2,829
|
34,181
|
(7,858)
|
0
|
3,965
|
|
Provision (reversal) for impairment of
assets
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Provisions (reversals) for onerous
contracts
|
(94,188)
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Impairment (reversal) of investment
losses
|
0
|
(35,037)
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Minor shareholders' share
|
(2)
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Charges on resources from shareholders
|
3,756
|
0
|
446
|
10,461
|
0
|
1,582
|
0
|
0
|
|
Financial Instruments - Derivatives Net
Income
|
0
|
0
|
0
|
18,230
|
0
|
0
|
0
|
0
|
|
Other adjustments before IR / CS
(LAIR)
|
40,988
|
71,618
|
(253,017)
|
4,501
|
163,398
|
0
|
2,509
|
2,148
|
|
(Increase) decrease on operating
assets/liabilities
|
(175,701)
|
(343,648)
|
(258,057)
|
(17,767)
|
(183,092)
|
37,021
|
(340)
|
(355,703)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from Operating
Activities
|
425,951
|
159,297
|
(257,313)
|
248,613
|
305,494
|
(13,261)
|
(232)
|
(10,878)
|
|
|
|
|
|
|
|
|
|
|
|
Payment of interest
|
(301,238)
|
(22,792)
|
(27,447)
|
(35,719)
|
(152,370)
|
0
|
0
|
(36,277)
|
|
Amounts received from allowed annual
revenue
|
46,506
|
0
|
274,016
|
332,117
|
0
|
0
|
0
|
0
|
|
Receipt of Financial Asset Indemnities
(RBSE/Ke)
|
767,409
|
0
|
87,146
|
0
|
0
|
0
|
0
|
0
|
|
Receipt of interest
|
8
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Payment of income tax and social
contribution
|
(433,044)
|
(407)
|
(13,963)
|
(127,143)
|
(23,009)
|
0
|
(29)
|
0
|
|
Payment of refinancing of taxes and contributions
- principal
|
(7,828)
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Receipt of financial asset
compensation
|
13,071
|
0
|
0
|
0
|
0
|
0
|
256
|
0
|
|
Pension Plan Payments
|
(10,070)
|
(25,187)
|
(702)
|
0
|
(1,082)
|
0
|
0
|
0
|
|
Payment of legal provisions
|
0
|
(2,572)
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Judicial Deposits
|
10,105
|
(8,601)
|
(14,968)
|
0
|
11,076
|
(2,803)
|
0
|
203,825
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash provided by Operating
Activities
|
510,870
|
99,738
|
46,769
|
417,868
|
140,109
|
(16,064)
|
(5)
|
156,670
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
|
|
|
Loans and financing
|
629,332
|
0
|
0
|
0
|
0
|
0
|
0
|
231,741
|
|
Payment of Loans and financing -
principal
|
(705,986)
|
(175,701)
|
(47,814)
|
(61,905)
|
(64,191)
|
0
|
0
|
(29,985)
|
|
Payment of Shareholders Remuneration
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Advances for Future Capital Increase
(AFAC)
|
0
|
0
|
0
|
0
|
0
|
97,310
|
0
|
0
|
|
Payment of refinancing of taxes and contributions
- principal
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Others
|
890
|
0
|
(510)
|
0
|
0
|
0
|
0
|
0
|
|
Net Cash provided by Financing
Activities
|
(75,764)
|
(175,701)
|
(48,324)
|
(61,905)
|
(64,191)
|
97,310
|
0
|
201,756
|
|
|
|
|
|
|
|
|
|
|
|
Investment Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and Financing - Payment
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Loans and Financing - Receipt
|
84
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Acquisition of fixed assets
|
(30,105)
|
(26,956)
|
0
|
(10,618)
|
(16,198)
|
(119,109)
|
0
|
(529)
|
|
Acquisition of intangible assets
|
(630)
|
(2,765)
|
(1,544)
|
0
|
(1,409)
|
0
|
0
|
0
|
|
Capital investment in equity
investments
|
(58,921)
|
(35,180)
|
(14,990)
|
(49,783)
|
0
|
0
|
0
|
0
|
|
Investment for future capital
increases
|
0
|
(5,373)
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Sale of investments in equity
interests
|
32,000
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Others
|
(377,938)
|
489,188
|
(2,917)
|
(291,101)
|
(53,442)
|
0
|
0
|
41,332
|
|
Net Cash from investments
activities
|
(435,510)
|
418,914
|
(19,451)
|
(351,502)
|
(71,049)
|
(119,109)
|
0
|
40,803
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash
equivalents
|
(404)
|
342,951
|
(21,006)
|
4,461
|
4,869
|
(37,863)
|
(5)
|
399,229
|
|
Cash and cash equivalents – beginning of
period
|
73,161
|
276,986
|
44,333
|
5,156
|
3,805
|
77,851
|
37
|
41,729
|
|
Cash and cash equivalents – end of
period
|
72,757
|
619,937
|
23,327
|
9,617
|
8,674
|
39,988
|
23
|
440,958
|
|
|
(404)
|
342,951
|
(21,006)
|
4,461
|
4,869
|
(37,863)
|
(14)
|
399,229
|
DFR -
Investor Relations Superintendence
Marketletter - Annex II -
1Q20
Financial Information of the
Subsidiaries
|
CHESF
|
|
|
|
Result Analysis
|
|
|
|
|
|
|
|
|
|
The Company had, in 1Q20, a result 33.8% lower
than that ascertained in 1Q19, going from a profit of R$ 344 million in
1Q19 to a profit of R$ 228 million in 1Q20 mainly due to the reasons
described below.
|
|
|
|
Operating Revenue
|
|
|
|
|
|
|
|
The Net Operating Revenue, in 1Q20, increased by
14.6% compared to 1Q19, going from R$ 1,174 million in 1Q19 to R$ 1,346
million in 1Q20. The variations of each income account are detailed
below:
|
|
|
|
|
|
|
|
Gross Revenue - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Generation
|
942,190
|
808,297
|
16.6
|
|
|
Energy supply to distribution
companies
|
46,932
|
8,458
|
454.9
|
The variation is mainly due to as follows: (i)
increase due to the execution of sales contracts for the year 2020 (about
80 average MW), with an average sale price of R$ 206/MWh in 1Q20, against
the average price of about R$ 193/MWh in the same period of
2019.
|
|
Supply
|
155,934
|
159,614
|
-2.3
|
The variation is mainly due to the following
reason: (i) reduction of about 80 MW average in the consumption of
industrial customers reached by Law 13,182/2015 in the accumulated until
March/2020, in comparison with the same period of the previous year, due
to a problem at the plant of an industrial consumer in the state of
Alagoas, from May/2019 to March/2020, which energy was settled at
CCEE.
|
|
Short Term Market (CCEE)
|
150,529
|
105,401
|
42.8
|
The variation is mainly due to the following
reason: (i) Chesf had in the accumulated until March/2020 an increase in
revenues at CCEE due to a problem occurred in the plant of an industrial
consumer in the state of Alagoas, from May/2019 to March/2020, and an
increase in energy purchased by about 130 average MW (ex-post purchase
contracts accumulated from January to March/2020), which energy was
settled at CCEE, at an average price of around R$
159/MWh.
|
|
O&M Income - Renewed Power Plants pursuant Law
12,783/2013
|
588,795
|
530,531
|
11.0
|
The variation is mainly due to the following
reason: (i) RAG's annual readjustment of about 9%, according to Aneel
Resolution No. 2,587/2019 (cycle 2019-2020); (ii) in addition, there was
also an increase in the generation of renewed plants (quota regime) in
this period (2,558 average MW against 2,025 average MW in 2019), impacting
the revenue reserved to the reimbursement of CFURH.
|
|
Income from Return of Investment
|
0
|
4,293
|
-100.0
|
The variation is mainly due to: (i) updating of
the financial assets of residual Generation in 2019.
|
|
Transmission
|
667,503
|
601,933
|
10.9
|
|
|
O&M Transmission Lines renewed pursuant to Law
12,783/2013
|
300,018
|
348,796
|
-14.0
|
The variation is mainly due to: (i) decrease in
items related to the receipt of MP 579 resulting from the tariff revisions
between the resolution of the 2018/2019 cycle and the resolution of the
current cycle 2,565/19 (4.66%), such as: apportionment of
revenue, variable installment (R$ 4 million) and adjustment
installment. The other effects can be attributed to the determination by
IFRS15 of enterprises associated with resolutions of CC 061/2001 and the
projection of the new receipt flow in accordance with the approval
resolution published in July/2019. Despite the drop in the corporate
balance sheet, the regulatory RAP grew 4.72% between the periods
mentioned, generating an increase of approximately R$ 37
million.
|
|
O&M Transmission lines not renewed pursuant to
Law 12,783/2013
|
34,390
|
22,495
|
52.9
|
The variation is mainly due to: (i) annual
readjustment of RAP - Annual Allowed Revenue (7.64%), according to Aneel
Resolution No. 2,565/19 with emphasis on the growth related to the go-live
of new projects transmission during 2019 and the effects of the
application of IFRS 15 on non-renewed contracts. Beginning of commercial
operation of new works with R$ 70 million from the incorporation of RAP
energizing of new enterprises without a counterpart in 2019. The
regulatory RAP grew 51% between the periods mentioned, generating an
increase of approximately R$ 32 million.
|
|
RBSE Income
|
213,905
|
166,617
|
28.4
|
The variation is mainly due to: (i) variation in
the discount rate applied between the compared period (in 2019 NTN-B 4.10%
and in 2020 WACC 6.64%); offset by (ii) update of the RBSE (average rate
of 2.68%) receivable portion resulting from the amortization of R$ 503
million.
|
|
Transmission Construction Income
|
54,026
|
9,475
|
470.2
|
The variation is mainly due to: (i) construction
margin calculated by measuring IFRS 15 on construction costs between the
compared dates.
|
|
Income from Return of Investment in Transmission
|
65,164
|
54,550
|
19.5
|
The variation is mainly due to the following
factor: (i) higher accounting of the remuneration on the financial asset
due to the go-live of new enterprises during 2019, with emphasis on
contract 61 authorizations.
|
|
Other Incomes
|
4,623
|
5,416
|
-14.6
|
The variation is mainly due to the following
factor: (i) decrease in revenue from operation and maintenance services,
R$ 0.8 million.
|
|
Deductions to the Operating
Revenue
|
-267,614
|
-240,985
|
11.1
|
The variation is mainly due to the following
factors: (i) registration of CFHUR between the compared dates [+ R$ 8
million]; (ii) increase in PIS/CONFINS between the compared dates, [+ R$
15 million].
|
|
ROL
|
1,346,702
|
1,174,661
|
14.6
|
|
|
Operating Costs and Expenses
|
|
Expenses and operating costs, in 1Q20, increased
by 21.2% compared to 1Q19, from R$ 735.9 million in 1Q19 to R$ 892 million
in 1Q20, with the variations listed below:
|
|
|
|
|
|
|
|
PMSO - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Personnel
|
-256,579
|
-263,149
|
-2.5
|
The variation is mainly due to: (i) decrease in
work overtime expenses [-R$ 2 million]; (ii) decrease in Vacations [-R$ 13
million]; on the other hand, we had an increase in post-employment
benefits, [+ R$ 7 million].
|
|
Supplies
|
-7,043
|
-4,265
|
65.1
|
The variation is mainly due to: (i) increase in
expenses with materials, [R$ 1.6 million], such as polymeric insulators,
suspension insulators; (ii) increase in expenses with fuels and lubricants
[+ R$ 0.8 million], such as automotive fuels, acquisition of diesel oil
for rafts, lubricating oil for lathe.
|
|
Services
|
-53,784
|
-43,991
|
22.3
|
The variation is mainly due to: (i) increase in
expenses with contracted labor, [+ R$ 3.9 million], such as medical and
nurse services from HNAS - Nair Alves de Souza Hospital; ii) increase in
expenses with building maintenance services, [+ R$ 2.5 million]; (iii)
increase in expenses with electrical maintenance services, [+ R$ 2.0
million]; iv) increase in consulting expenses, [+ R$ 2.9 million], such as
legal advice.
|
|
Consensual Dismissal Plan/PAE
(Provision)
|
0
|
-32,909
|
-100.0
|
The variation is mainly due to: (i) amounts
provisioned in 1Q19. There is no PDC for 2020.
|
|
Other
|
-11,923
|
-10,293
|
15.8
|
|
|
Donations and Contributions
|
-9,369.0
|
-8,557.0
|
9.5
|
The variation is mainly due to the following
reasons: (i) increase in expenses with annuities and contributions to
companies R$ 0.3 million.
|
|
Other Operating Expenses
|
-2,554
|
-1,736
|
47.1
|
The variation is mainly due to the following
reasons: (i) increase in leasing and rentals in the amount of R$ 1.2
million, such as vehicle rental.
|
|
TOTAL PMSO
|
-329,329
|
-354,607
|
-7.1
|
|
|
|
|
|
|
|
|
Operating Costs - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
|
|
Energy Purchased for Resale
|
-104,667
|
-62,080
|
68.6
|
The variation is mainly due to the following
reasons: (i) the increase in energy purchased by around 130 average MW
(accumulated in March/2020) settled at CCEE and an increase of 13 average
MW due to the seasonalization of purchase contracts. The combination of
these factors resulted in a total increase of the energy purchased in the
accumulated until March/2020 in about 143 MW average, with a reduction in
the average purchase price from R$ 195/MWh (until Mar/2019) to R$ 177/MWh
(until Mar/2020) with an average selling price of R$ 206/MWh in the same
period; and (ii) readjustment of purchase contracts (IPCA) by about
4.3%.
|
|
Charges for the Use of the Electricity
Grid
|
-189,170
|
-182,999
|
3.4
|
The variation is mainly due to the following
reason: (i) readjustment of approximately 9% of TUST, determined by ANEEL
Resolution No. 2,586/2019 (cycle 2019-2020).
|
|
Construction Expense
|
-79,121
|
-39,409
|
100.8
|
The variation is mainly due to the following
reasons: (i) investment in the transmission system between the compared
dates.
|
|
Depreciation and Amortization
|
-36,381
|
-31,411
|
15.8
|
The variation is mainly due to the following
reasons: (i) increase in the depreciation accounting in 2020, due to the
beginning of operations of Pindaí wind farm in 4Q19, impacting the
consolidated.
|
|
TOTAL OPERATING COSTS
|
-409,339
|
-315,899
|
29.6
|
|
|
|
|
|
|
|
|
Operating Provisions
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Operating Provisions
|
-153,347
|
-65,469
|
134.2
|
The variation is mainly due to the following
reasons: (i) increase in the provision for contingency, [+ R$ 28 million],
with emphasis on the GSF provision, [+ R$ 52 million], due to the
hydrology variation between the compared periods, offset by the drop in
the process that deals with updating the k factor [-R$ 21 million]; (ii)
drop in the GAG improvement provision [-R$ 7 million], due to the
expectation of investments in renewed plants; (iii) reversal of losses on
investments in SPEs, in 1Q19, [+ R$ 35 million], without comparison in
1Q20.
|
DFR -
Investor Relations Superintendence
Marketletter - Annex II -
1Q20
Financial Information of the
Subsidiaries
|
Financial Result - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Financial Income
|
76,874
|
63,146
|
21.7
|
|
|
Income from financial
investments
|
19,890
|
10,639
|
87.0
|
The variation is mainly due to: (i) increase in
the amount of financial investments of the Company, due to the
availability of cash between the compared dates.
|
|
Additional interest on energy
|
43,693
|
27,185
|
60.7
|
The variation is mainly due to: (i) interest on
the debt of Rio Doce Manganês (RDM protocol) in the amount of R$ 3 million
in 1Q20; (ii) interest on the debt with Ligas do Brasil in the amount of
R$ 9 million.
|
|
Monetary adjustment gain
|
12,422
|
9,830
|
26.4
|
The variation is mainly due to the following
factors: (i) registration of monetary adjustment of Ligas do Brasil's debt
in the amount of R$ 1.6 million.
|
|
Fair value adjustment - RBSE
gain
|
0
|
14,775
|
-100.0
|
The variation is mainly due to the following
factors: (i) Due to the adjustment in the measurement of RBSE gains
between the periods in comparison, due to the remuneration rates used in
the periods: 2019 NTNB (4.10%) and 2020 WACC (6.64 %), impacting mainly
the fair value of the undisputed part.
|
|
Other Financial Income
|
869
|
717
|
21.2
|
No significant variation in the financial
result.
|
|
Financial Expenses
|
-113,269
|
-54,249
|
108.8
|
|
|
Debt Charges - Financing and
Loans
|
-23,139
|
-41,026
|
-43.6
|
The variation is mainly due to: (i) total
settlement of the debt with Eletrobras through Lieu of Payment for
SPEs transfers in 1Q19, significant reduction in the CDI and TJLP,
which are indices linked to some of our loans and financing
contracts.
|
|
Monetary adjustment loss
|
-2,331
|
-60
|
3,785.0
|
The variation is mainly due to the following
factors: (i) monetary restatement of the debentures in 1Q20 without
comparison in 1Q19.
|
|
Fair value adjustment - RBSE
loss
|
-16,374
|
0
|
-
|
The variation is mainly due to the following
reasons: (i) remeasurement of RBSE assets between the periods in
comparison, due to the change in the remuneration rate used in the
periods: 2019 NTNB (4.10%) and 2020 WACC (6.64%).
|
|
Other Financial Expenses
|
-71,425
|
-13,163
|
442.6
|
The variation is mainly due to the following
reasons: (i) registration of interest on shareholders' remuneration
(dividends payable), in the amount of R$ 55 million, resulting from the
SELIC variation.
|
|
Financial Result
|
-36,395
|
8,897
|
-509.1
|
|
|
|
|
|
|
|
|
Equity Interests (Equity) - R$
Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Equity Interests (Equity)
|
59,636
|
32,909
|
81.2
|
The variation is mainly due to the following
reasons: (i) improvement in the negative result disclosed in SPE ESBR (R$
21 million), due to the improvement in the result with CCEE; (ii)
improvement in the profit of SPE IE Madeira (R$ 22 million), due to the
improvement in the remuneration of the concession assets; (iii)
improvement in SPE SINOP's positive result (R$ 24 million), due to the
improvement in net energy sales revenue, which were partially offset by;
(iv) negative variation in the result of SPE Norte Energia (R$ 37
million), due to the increase in the depreciation record after the
beginning of operations of GUs (generating units) in the 2nd semester
2019.
|
|
Other Operating Income/expenses- R$
Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Other Operating Income/Expenses
|
0
|
137,355
|
-100.0
|
The variation is mainly due to the following
reasons: (i) revenue from lieu of payment to Eletrobras of SPEs (Sento Se
II and III) for settling debts in 1Q19 without occurring in
1Q20.
|
|
|
|
|
|
|
|
Income Tax (IR) and Social Contribution on Net
Income (CSLL) - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Current IR and CSLL
|
-279,503
|
-272,757
|
2.5
|
The variation is mainly due to the following
factor: (i) although the accounting profit of 2020 decreased 22.75% in
relation to the same period of 2019, the variation of additions and
temporary exclusions had an increase of 89.65% , causing the taxable
profit to increase by 3.4%. The lines that most contributed so that
taxation did not suffer as much impact were contingency provisions with a
16% growth, allowance for doutful account, with a growth of 18.7% and RBSE
Receipt with 19%, compared to 2019.
|
|
Deferred IR and CSLL
|
-31,569
|
-667
|
4,633.0
|
The variation is mainly due to the following
factors: (i) Due to the calculation of deferred income tax
(assets/liabilities) on temporary differences, such as operational
provisions, MME Ordinance 120 (receipt of RBSE), in 1Q20. In 2019, we
started to calculate Deferred Income Tax as of 4Q19.
|
|
Tax Incentives
|
61,452
|
261
|
23,445
|
The variation is mainly due to the following
factors: (i) In 2020, the timing of the SUDENE tax incentive was
recognized as the Company already had the constitutive reports, while in
2019, the constitutive reports that grant the right to fruition were
published in the second semester of 2019. The tax incentive is calculated
based on Operating Profit, which indicates the percentage of incentive
income over non-incentive income, obtaining the benefit of the tax
reduction. The projects that had the greatest impact of incentives were
CTT 61 and Sobradinho and Curemas plants. The SUDENE tax incentive applied
to Chesf contracts generated an effective rate of IRPJ in the order of
17.02%.
|
DFR -
Investor Relations Superintendence
Marketletter - Annex II -
1Q20
Financial Information of the
Subsidiaries
|
ELETRONORTE
|
|
|
|
|
|
|
|
Result Analysis
|
|
|
|
|
|
|
|
The Company had, in 1Q20, a result 24.3%
lower that ascertained in 1Q19, going from a profit of R$ 350 million in
1Q19 to a profit of R$ 265 million in 1Q20, mainly due to the reasons
described below.
|
|
|
|
|
|
|
|
Operating Revenue
|
|
|
|
|
|
|
|
The Net Operating Revenue, in 1Q20, increased of
23.7% compared to 1Q19, going from R$ 1,130.9 million in 1Q19 to R$
1,398.9 million in 1Q20. The variations of each income account are
detailed below:
|
|
|
|
|
|
|
|
Gross Revenue - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Generation
|
1,167,296
|
865,287
|
34.9
|
|
|
Energy supply to distribution
companies
|
779,549
|
468,150
|
66.5
|
The variation is mainly due to the following
reason: (i) 398% increase in sales to traders (1Q19: 329 MWmed x 1Q20:
1,639 MWmed); (ii) 9% increase in the prices of contracts signed with
suppliers (1Q19: R$ 176.20/MWh x 1Q20: R$ 191.19/MWh); on the other hand,
(iii) there was a 79.59% decrease in ACR (Regulated Contracting
Environment) revenue due to the termination of two products, 13th Auction
- 2014/2019 and 17th Auction - 2018/2019, reducing 72.35% the amount of
energy sold (1Q19: 485 MWmed x 1Q20: 134 MWmed) in addition to; (iv) a
26.18% reduction in the average price in the ACR (Regulated Contracting
Environment) (1Q19: R$ 237.08/MWh x 1Q20: R$ 175/MWh).
|
|
Supply
|
223,428
|
217,605
|
2.7
|
The variation is mainly due to the following
reason: (i) increase in the contracted volume by 2.56% (1Q19: 871 MWm x
1Q20: 894 MWm); and (ii) increase in the average price by 0.11% (1Q19: R$
115.57/MWh x 1Q20: R$ 115.69/MWh). The negative variation results from the
lack of accounting in 1Q20 of contracts in the amount of R$ 29 million
that were accounted as Supply. Despite the null effect on the generation
revenue, this record will be corrected in the accounting for
April/20.
|
|
Short Term Market (CCEE)
|
155,867
|
172,043
|
-9.4
|
The variation is mainly due to the following
reason: (i) increase in average PLD from R$ 53/MWh in 1Q19 to R$ 165/MWh
in 1Q20; (ii) On the other hand, there was a 70% drop in the volume
settled (1Q19: 1932 MWm x 1Q20: 574 MWm), due to the increase in bilateral
sales. The average GSF was 49.17% positive in 1Q19 against 4.23% in 1Q20.
Seasonalized Physical Guarantee was 1900 MWmed in 1Q19 and 3201 MWmed in
1Q20.
|
|
O&M Income - Renewed Power Plants pursuant Law
12,783/2013
|
8,452
|
7,489
|
12.9
|
The variation is mainly due to the following
reason: (i) RAG's annual readjustment (approximately 0.34%), according to
Aneel Resolution No. 2,587/2019 (ii) R$ 775 thousand reversal occurred in
1Q19 to adjust the methodology of GAG Improvement's
accounting
|
|
Transmission
|
448,069
|
426,446
|
5.1
|
|
|
O&M Transmission Lines renewed pursuant to Law
12,783/2013
|
124,586
|
102,631
|
21.4
|
The variation is mainly due to: (i) increase in
the RAP (Annual Allowed Revenue) ratified for the 2019/2020 cycle
(Resolution 2,565/19), which contributed to the 7.08% increase in revenue
billed in 1Q20 (or R$ 20 million); (ii) reduction of R$ 2.6 million in the
PV (variable installment) discount (1Q19: R$ 9.5 million x 1Q20: R$ 6.9
million); (iii) recognition, as of the second half of 2019, of revenue
related to small businesses, with an impact in 1Q20 in the amount of R$
1.15 million (Technical Note No. 0374/2019-SCT / ANEEL).
|
|
O&M Transmission lines not renewed pursuant to
Law 12,783/2013
|
62,046
|
60,623
|
2.3
|
The variation is mainly due to: (i) an increase of
R$ 0.8 million in the RAP (Annual Allowed Revenue) value; and (ii) a R$
0.2 million reduction in the PV (variable installment) discount (1Q19: R$
1.4 million x 1Q20: R$ 1.1 million).
|
|
RBSE Income
|
199,061
|
194,784
|
2.2
|
The variation is mainly due to: (i) the 4.3%
increase in RBSE revenue approved by ANEEL Resolution No. 2,565/2019 of
06.25.2019. Approved revenue increased from R$ 1.25 billion/year in
2018/2019 cycle to R$ 1.3 billion in 2019/2020 cycle. When comparing the
quarters, RBSE revenue increased R$ 21.57 million (1Q19: R$ 150.17 million
x 1Q20: R$ 171.75 million). It should be noted that RBSE revenue is
calculated based on CPC48/IFRS09. In this sense, the 4.3% readjustment in
RAP (Annual Allowed Revenue) ends up increasing the IRR of the receivables
flow, which, applied to the debit balance, implies a more than
proportional increase in the recorded revenue.
On the other hand,
revenue from updating the controversial part (Ke) decreased by R$ 17.3
million (1Q19: R$ 44.61 million x 1Q20: R$ 27.31 million). At the end of
2019, Eletrobras Companies defined the entire measurement related to this
portion of RBSE. This realignment changed the correction of this portion
from [Ke (10.44%) + IPCA] to [WACC (6.64%) + IPCA].
|
|
Transmission Construction Income
|
0
|
6,024
|
-100.0
|
The variation is mainly due to: (i) the fact that
all investments made in 1Q20 are already reflected in the balance of
contractual assets or do not yet have a RAP (Annua Allowed Revenue)
approved by Aneel and, therefore, cannot be recognized in Assets
.
|
|
Income from Return of Investment in Transmission
|
62,376
|
62,384
|
0.0
|
No apparent variation, mainly due to: (i) behavior
of the Contractual Asset Revenue, as expected.
|
|
Other Income
|
100,316
|
100,531
|
-0.2
|
The variation is mainly due to the following
factors: (i) reduction in revenue from Proinfa: R$ 6.5 million; (ii)
reduction in the provision of infrastructure sharing services: R$ 4.9
million; (iii) reduction in revenue from communication services: R$ 3.1
million; (iv) reduction in revenue from other operating revenues: R$ 0.7
million; on the other hand, there was an increase in revenue in the
following accounts: (v) CDE: R$ 13.4 million; (vi) O&M service: R$ 1.4
million (O&M Belo Monte R$ R $ 0.7 million); (vii) engineering
service: R$ 0.4 million.
|
|
Deductions to the Operating
Revenue
|
-316,701
|
-261,351
|
21.2
|
The variation is mainly due to the following
factors: (i) a 30.6% increase in Pis/Cofins expenses (R$ 35.5 million);
(ii) increase in CDE expenses 57.6% (R$ 13.4 million); (iii) increase in
expenses of RGR 34.8% (R$ 9.3 million); (iv) increase in expenses with
R&D 29.5% (R$ 3.3 million); on the other hand, there was (v) a
reduction in the Proinfa account of 30.3% (R$ 6.5
million).
|
|
ROL
|
1,398,980
|
1,130,913
|
23.7
|
|
|
|
|
|
|
|
|
Operating Costs and Expenses
|
|
|
|
The Operating Expenses and Costs, in 1Q20,
decreased by 7.1% compared to 1Q19, going from R$ 781 million in
1Q19 to R$ 725 million in 1Q20. The variations of each income
account are detailed below:
|
|
|
|
|
|
|
|
PMSO - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Personnel
|
-271,883
|
-292,654
|
-7.1
|
The variation is mainly due to: (i) 474 employees
joining the PDC (Consensual Dismissal Plan) throughout 2019 and,
therefore, reducing expenses such as: (1) salaries: R$ 14.3 million; (2)
Miscellaneous social contributions: R$ 9.4 million; (3) Meal ticket: R $
9.4 million; (4) expenses with BD plan: R$ 7.3 million; (5) Vacations: R$
6.5 million; (6) Additional for length of service: R$ 4.3 million; (7)
health plan participation: R$ 3.8 million; (8) Dangerousness: R$ 2.3
million; and (9) Illness aid: R$ 1.7 million. (ii) On the other hand: (1)
there was an increase in expenses with FGTS by R$ 18.4 million; (2) an
increase of R$ 19.8 million with INSS (Social Security) and (3) salary
increase of 3.77%.
|
|
Supplies
|
-4,005
|
-6,164
|
-35.0
|
The variation is mainly due to: (i) reduction in
expenses with material to support the HVDC (Porto Velho-Araraquara direct
current project): R$ 1 million; (ii) reduction in fuel expenses: R$ 0.7
million.
|
|
Services
|
-62,142
|
-50,458
|
23.2
|
The variation is mainly due to: (i) accounting for
expenses in Services that, in 1Q19, were in Personnel (due to the change
in the chart of accounts): (a) Ticket Meal contract, R $ 8,8 million; and
(b) Health Plan Administration Fee, R$ 3.8 million; (ii) increase in costs
by: (a) Consulting by R$ 2.3 million (of which R$ 1.6 million related to
the construction of the Rio Jamari bridge - RO) and (b) Surveillance
Services: R$ 1 , 3 million; offset by (iii) cost reduction in (a) clearing
(postponed): R$ 1.4 million; and (b) Official/Institutional Publications:
R$ 1.3 million.
|
|
Consensual Dismissal Plan/PAE
(Provision)
|
0
|
-90,852
|
-100.0
|
The variation is mainly due to: (i) in 1Q20 there
were no expenses associated with the performance of PDCs (Consensual
Dismissal Plan); (ii) on the other hand, in 1Q19, expenses related to the
1st PDC 2019 (147 employees left in June/19) were recorded. During 2019,
R$ 239.4 million were recorded for PDC, with a total of 474 employees
leaving. There is no forecast of expenses with the Dismissal Plan in
2020.
|
|
Other
|
-52,173
|
-38,489
|
35.6
|
|
|
Donations and Contributions
|
-1,369
|
-731
|
87.3
|
The variation is mainly due to the following
reasons: (i) an increase of R$ 88 thousand in Contributions to ONS; and
(ii) an increase in Other Contributions of R$ 550
thousand.
|
|
Other Operating Expenses
|
-50,804
|
-37,758
|
34.6
|
The variation is mainly due to the following
reasons: (i) increase in the insurance account in the amount of R$ 9.9
million (increase of R$ 7.5 million in insurance for facilities, equipment
and inventories; increase of R$ 5,6 million with insurance, others
referring to judicial guarantee insurance; and a reduction of R$ 3.2
million with hydrological risk ended in 2019); (ii) an increase of R$ 4.7
million related to the recovery of expenses; (iii) increase in the tax
account in the amount of R$ 2.1 million (increase of R$ 2.3 million taxes
and compulsory fees; increase of R$ 0.1 million in IPVA; reduction of R$
0.4 million in IPTU (Property Tax); (iv) increase in the leasing and rent
account in the amount of R$ 0.4 million (increase of R$ 4.4 million in
vehicle rental; increase of R$ 4.0 million in IFRS16; reduction of R$ 5, 8
million at TPP Araguaia, reduction of R$ 1.6 million in rental of
properties, and reduction of R$ 0.7 million in rental of equipment); (v)
reduction in the account of other operating expenses in the amount of R$
2.6 million (reduction of R$ 11.7 million with losses on the sale carried
out only in 2019; reduction of R$ 6.8 million with employees assigned to
other companies, released and amnestied; reduction of R$ 5.5 million with
indigenous communities; reduction of R$ 2.8 million with Aneel infraction
notices carried out in 2019; reduction of R$ 2.2 million with daily travel
commute, due to entry in the UI, expenses were reclassified as Personnel
in 2020, and an increase of R$ 26.0 with court costs).
|
|
TOTAL PMSO
|
-390,203
|
-478,617
|
-18.5
|
|
DFR -
Investor Relations Superintendence
Marketletter - Annex II -
1Q20
Financial Information of the
Subsidiaries
|
Operating Costs - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Energy Purchased for Resale
|
-2,816
|
-50,561
|
-94.4
|
The variation is mainly due to the following
reasons: (i) purchase of energy from Corpoelec, in 1Q19, in the amount of
R$ 38 million, with no counterpart in 1Q20; (ii) accounting for Energy
Purchase for Resale, in 1Q19, in the amount of R$ 11.9 million (referring
to Dec/18, which was later reclassified); (iii) purchase of energy from
Sinop in 1Q20 in the amount of R$ 2.1 million.
|
|
Charges upon use of electricity
network
|
-160,041
|
-145,360
|
10.1
|
The variation is mainly due to the following
reasons: (i) 5.2% readjustment in the tariff defined for the Tucuruí HPP
in the 2019/2020 cycle (Resolution 2,562/2019), which went from R$
6,009/KWh to R$ 6.323/KWh; and (ii) the 5.3% readjustment in the tariff
defined for HPP Samuel in the cycle R$ 10.64/KWh to R$ 11.202/KWh. The
impact on quarterly expenses was R$ 14.7 million.
|
|
Construction Expense
|
-1,653
|
-6,885
|
-76.0
|
The variation is mainly due to the following
reasons: (i) low investment in 1Q20; and (ii) the investments made in 1Q20
are already reflected in the balance of contractual assets or do not yet
have a RAP (Annual Allowed Revenue) approved by Aneel and, therefore,
cannot be recognized in Assets.
|
|
Depreciation and Amortization
|
-109,140
|
-109,581
|
-0.4
|
No relevant variation.
|
|
TOTAL OPERATING COSTS
|
-273,650
|
-312,387
|
-12.4
|
|
|
|
|
|
|
|
|
Operating Provisions - R$
Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
|
-61,754
|
9,870
|
725.7
|
The variation is mainly due to the following
reasons: (i) Litigation: civil provisions in the amount of R$ 34.9
million, with emphasis on lawsuit of Centenco Engenharia regarding the
collection of interest and fines for late payments, proposed in 1994,
totalling R$ 12 million; tax provisions of R$ 27.4 million; labor
provisions of R$ 21.7 million, land provisionsof R$ 13.2 million; and
regulatory provisions of R$ 5.0 million; partially offset by (ii) a R$
25.9 million reversal related to Cemig; and (iii) reversal of R$ 13.4
million Services provided.
|
|
|
|
|
|
|
|
Financial Income - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Financial Income
|
82,705
|
171,129
|
-51.7
|
|
|
Income from financial
investments
|
20,369
|
23,750
|
-14.2
|
The variation is mainly due to: (i) reduction in
the profitability of investments, from 1.64% in 1Q19 against 1.47% in
1Q20; and (ii) there was an increase in the average balance applied (1Q19:
R$ 1 billion x 1Q20: R$ 1.2 billion).
|
|
Additional interest on energy
|
7,860
|
31,539
|
-75.1
|
The variation is mainly due to: (i) a reduction of
R$ 21.8 million in interest on late payments, mainly due to the debt of
Boa Vista Energia, which was renegotiated on July, 2019; and (ii) a
reduction of R$ 1.8 million in fines also due to the renegotiation of the
Boa Vista Energia contract.
|
|
Monetary adjustment gain
|
44,018
|
59,799
|
-26.4
|
The variation is mainly due to the following
factors: (i) the renegotiation of the CERON / Albras / Eletrobras
contracts decreased by R$ 47 million in the updating of credits; (ii)
reduction of R$ 3.5 million in accounting for delays in receiving energy
bills. On the other hand, there was (iii) an increase of R$ 33.9 million
in the variation of other monetary credits in 1Q20 in relation to 1Q19,
with emphasis on Eletrobras (R$ 23.3 million), CEA (R$ 5.1 million) and
CCEE (R$ 4.1 million).
|
|
Exchange variation gain
|
0
|
29,509
|
-100.0
|
The variation is mainly due to the following
factors: (i) accounting in 1Q19 of revenue from foreign exchange variation
on loans in foreign currency in the amount of R$ 24.7 million and; (ii)
accounting in 1Q19 of foreign exchange revenue linked to the supply
contract with Corpoelec, in the amount of R$ 4.7 million, both, with no
counterpart in 2020. In the case of Corpoelec, supply was suspended (since
April/2019) ; and (iii) In 1Q20, there was no accounting for exchange
variation gain.
|
|
Fair value adjustment - RBSE
gain
|
0
|
25,754
|
-100.0
|
The variation is mainly due to the following
factors: (i) a reduction of R$ 81.4 million in the balance of the
Adjustment to Fair Value of RBSE (1Q19: R$ 176.5 million x 1Q20: R$ 95.1
million) . This reduction is expected and occurs from the amortization of
the asset. That means, with the receipt of RBSE resources, the recorded
value of the asset approaches the present value of the future flow,
reducing the amount of the Adjustment to Fair Value.
In addition, there
was (ii) a reduction of R$ 3.3 million in the Ke balance (1Q19: R$ 130.0
million x 1Q20: R$ 133.3 million), as expected, from the amortization of
the asset . In this case, amortization from the 2021/2022 tariff cycle was
considered, with receipt of funds between June 2021 and June 2025 (term
according to Ordinance 120).
|
|
Gains on derivatives
|
10,203
|
0
|
100.0
|
The variation is mainly due to the following
reasons: (i) an increase of R$ 5.9 million in the amount determined for
the debentures issued by ETE. One of the main factors that contributed to
this result was the change in the discount rate that increased ETE's
valuation.
|
|
Other Financial Income
|
255
|
778
|
-67.2
|
The variation is mainly due to the following
reason: (i) reduction in revenue from
fines/reimbursements.
|
|
Financial Expenses
|
-489,105
|
-227,642
|
114.9
|
|
|
Debt Charges - Financing and
Loans
|
-73,178
|
-61,502
|
19.0
|
The variation is mainly due to: (i) the effect of
the exchange devaluation on the recording of interest and management fees
on foreign currency financing. It should be noted that, during the period,
there was an exchange devaluation of approximately 25% of the Real against
the currencies used as a financing index (Dollar and Yen). During this
period, no new financing contracts were signed, nor was there any
renegotiation of debts.
|
|
Leasing charges
|
-479
|
-1,361
|
-64.8
|
The variation is mainly due to: (i) Leasing
accounting (IFRS 16).
|
|
Charges on shareholders'
compensation
|
-14,333
|
-28,484
|
-49.7
|
The variation is mainly due to the following
factors: (i) reduction in the dividend base in current assets. (2020: R$
350 million X 2019: R$ 1.9 billion). In 1Q19, in addition to the mandatory
dividend of 25%, R$ 1.2 million was considered for the 2017 fiscal
year.
|
|
Monetary adjustment loss
|
-46,045
|
-73,086
|
-37.0
|
The variation is mainly due to the following
factors: (i) a reduction of R$ 21.4 million in dividend updates linked to
Shareholders' Equity (1Q20: R$ 20.4 million x 1Q19: R$ 41.8 million)
resulting the reduction in the balance of dividends payable, distributed
throughout 2019; (ii) a reduction of R$ 5.6 million in the update of
obligations with the Parent Company.
|
|
Exchange variation loss
|
-117,627
|
-31,864
|
269.2
|
The variation is mainly due to the following
factors: (i) exchange rate effect on the balance of loans in foreign
currency (dollar), which increased R$ 91.5 million compared to the same
period in 2018 (1Q19: R$ 26 million x 1Q20: R$ 117 million). On the other
hand; (ii) there was no exchange rate adjustment on the contract with
Corpoelec in 1Q20, while in 1Q19, the variation was positive by R$ 3.4
million; and (iii) fees on foreign currency loans were not recorded in
1Q20, while in 1Q19, R$ 2.3 million were recorded.
|
|
Fair value adjustment - RBSE
loss
|
-84,219
|
0
|
-
|
The variation is mainly due to the following
reasons: (i) a reduction of R$ 81.4 million in the balance of the
Adjustment to Fair Value of RBSE (1Q19: R$ 176.5 million x 1Q20: R$ 95.1
million) . This reduction is expected and occurs from the amortization of
the asset. That means, with the receipt of RBSE resources, the recorded
value of the asset approaches the present value of the future flow,
reducing the amount of the Adjustment to Fair Value. In addition, there
was (ii) a reduction of R$ 3.3 million in the Ke balance (1Q19: R$ 130.0
million x 1Q20: R$ 133.3 million), as expected, from the amortization of
the asset . In this case, amortization from the 2021/2022 tariff cycle was
considered, with receipt of funds between June 2021 and June 2025 (term
according to Ordinance 120).
|
|
Losses on derivatives
|
-128,731
|
-18,230
|
606.1
|
The variation is mainly due to the following
reasons: (i) a reduction in the fair value of the Albras premium by
approximately R$ 116.4 million when compared to the amount calculated for
1Q19. This reduction is mainly explained by the depreciation of the price
of primary aluminum in the period of approximately 13.77% (US $ 1,894.88
in 1Q19 and US $ 1,663.97 in 1Q20). The cooling in the free market price
is due to the increased risks and uncertainties caused by the Covid-19
pandemic. Eletronorte assesses monthly the fair value of the asset
associated with this premium/Albras by marking to market. In the case of
debentures issued by ETE, the derivative accounting results from a
contractual clause that allows the conversion of the debentures into
shares.
|
|
Other Financial Expenses
|
-24,493
|
-13,115
|
86.8
|
The variation is mainly due to the following
reasons: (i) increase in relation to the Interest and Fines account,
highlighting a late payment penalty with Eletrobras registered in March,
in the amount of R$ 6.4 million; (ii) Increase of R$ 4 million with
miscellaneous expenses, highlighting the expense with BR Distribuidora in
the amount of R$ 3.7 million.
|
|
Financial Result
|
-406,400
|
-56,513
|
-619.1
|
|
|
|
|
|
|
|
|
Equity Interests - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Equity Interests
|
22,503
|
38,630
|
-41.7
|
The variation is mainly due to the following
reasons:
(i) EAPSA: reduction of R$ 4.6 million. Highlights: (a)
Increase of R$ 3.5 million in revenue due to the adjustment of prices in
regulated contracts (ACR/2019 - R$ 56.6 million/2020 - R$ 59 million); (b) Improvement of the Financial
Result by R$ 1.9 million due to the reduction in charges on the long-term
loan, in addition to (c) dividends in the amount of R$ 5.7 million
recognized in the 1Q19 result.
(ii) NESA: reduction of R$ 21.7 million.
Highlights: (a) R$ 210.4 million increase in revenue due to the price
adjustment in regulated contracts (R$ 54 million) and an improvement in
short-term energy sales results (R$ 163.7 million); (b) R$ 294.7 million
increase in expenses due to the R$ 114.7 million increase in energy sales
costs; an increase of R$ 181.6 million in operating costs, with emphasis
on (Amortization/2019 - 347.4 million/2020 - 529.1 million); (c) worsening
of the Financial Result by R$ 1.7 million due to the recognition of R$
73.4 million related to interest and monetary restatements (payment of
capital in arrears) and reversal of R$ 41.8 million related to adjustments
to present value of UBP contracts that positively impacted this
account.
(iii) BMTE: Increase of R$ 8.2 million.
Highlights: (a) revenue increase of R$ 48.6 million (tariff readjustment
of 4.485%; (b) increase of expenses by R$ 19.2 million. In 2019, BMTE had
recorded a reversion of R$ 16.9 million , thus, isolating this accounting,
it would have an expense of R$ 13.3 million and, therefore, an increase of
R$ 2.2 million; (c) improvement of the Financial Result by R$ 13.8 million
due mainly to the reduction debt charges (R$ 14.5 million).
(iv) SINOP: Increase of R$ 5.6 million. Main
highlights were: (a) an increase of Revenue of R$ 6.9 million, mainly due
to the readjustment in the price of ACR (Regulated Contract Environment)
contracts (b) a reduction of expenses of R$ 56.3 million due mainly to a
reduction in the cost of electricity purchased for resale (R$ 72.5
million); (c) worsening of the Financial Result by R$ 28.1 million due to
the start of charging for long-term loan charges.
(v) NBTE: Reduction of R$ 2.9 million. Highlights
(a) reduction of revenue of R$ 3.3 million (tariff adjustment of -3.672%);
(b) increase of expenses by R$ 14.3 million. In 2019, NBTE recorded a
decrease of R$ 14.2 million related to an agreement with the Tabocas
Supplier. When this record was isolated, the expense recorded was R$ 7.8
million aligned with the R$ 7.2 million recorded in 2020; (3) an
improvement in the Financial Result of R$ 2.1 million, mainly due to the
reduction in long-term debt charges. It is worth mentioning that the 1Q19
result was calculated based on the Balance Sheet presented by the SPE to
Eletronorte. Subsequently, the audited result showed a positive adjustment
in the result of R$ 4.4 million.
|
DFR -
Investor Relations Superintendence
Marketletter - Annex II -
1Q20
Financial Information of the
Subsidiaries
|
Income Tax and CSLL - R$
Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Current IR and CSLL
|
-136,211
|
-72,378
|
88.2
|
The variation is mainly due to the following
factors: (i) a reduction of earnings before taxes of approximately R$ 43
million (1Q19: R$ 332 million x 1Q20: R$ 289 million); (ii) growth in
Total Additions driven by (+) Indirect remuneration to managers and third
parties, (+) Investment valued at equity value (Equity Income - Loss) and
(+) Valuation at fair value - AVJ where are recorded financial expenses of
Derivatives and controversial and/or uncontroversial amounts arising from
AVP (Adjustment to Fair Value) / RBSE; (iii) drop in the calculation of
the Exclusions evident in items (-) Reversal or Use of Provisions or
Estimated Losses not deductible and (-) Adjustments to Other Revenue /
Other Results (CPC 47, Contractual Assets). All these factors combined
corroborated for the taxable bases called “Actual Profit After Offsetting
Tax Losses” and “Calculation Base of CSLL After Offsetting” to increase
the base in the quarterly comparison.
|
|
Deferred IR and CSLL
|
38,876
|
36,985
|
5.1
|
The variation is mainly due to the following
factors: (i) increase in Real Profit before Compensation for Losses for
the period of calculation from R$ 388 million to R$ 579 million using
practically the legal limit of 30% of the compensation for Losses Taxes of
Previous Periods in the two quarters ended March 31, 2019 and 2020; (ii)
increase in the CSLL Calculation Base before offsetting the Negative
Calculation Base from R$ 388 million to R$ 579 million even using less
offsetting of the Negative Calculation Base from Previous Periods on
03/31/2020 (22.5 %) in relation to the previous period which percentage
was 28.25%.
|
|
Revenue from Tax Incentives
|
72,982
|
53,775
|
35.7
|
The variation is mainly due to the following
factors: (i) the accumulation of Negative Results (Losses) in Equity
Holdings recorded only at the end of the first quarter of 2020 instead of
having such accounting diluted over the January/2020 and February/2020 as
it was usual in the same period of 2019 and also in previous years; (ii)
due to the increase in item (+) Losses arising from the Valuation of
Assets or Liabilities based on Fair Value (Decree No. 1,598 / 77, art. 19
VI), which comprises the methodology for calculating the Tax Incentive
Income Exploration, from R$ 18 million to R$ 267 million with an emphasis
on Financial Expenses with
Derivatives.
|
DFR -
Investor Relations Superintendence
Marketletter - Annex II -
1Q20
Financial Information of the
Subsidiaries
|
ELETRONUCLEAR
|
|
|
|
|
|
|
|
Result Analysis
|
|
|
|
|
|
|
|
The Company had, in 1Q20, a result 90.9 % higher
than that ascertained in 1Q19, going from a profit of R$ 119 thousand in
1Q19 to a profit of R$ 228 million in 1Q20, mainly due to the reasons
described below.
|
|
|
|
|
|
|
|
Operating Revenue
|
|
|
|
|
|
|
|
The Net Operating Revenue, in 1Q20, increased by
7.9% compared to 1Q19, going from R$ 757 million in 1Q19 to R$ 817 million
in 1Q20. The variations of each income account are detailed
below:
|
|
|
|
|
|
|
|
Gross Revenue
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Generation
|
931,611
|
865,754
|
7.6
|
|
|
Energy supply to distribution
companies
|
931,611
|
865,754
|
7.6
|
The variation is mainly due to the following
reason: (i) increase of the Fixed Revenue of the Angra 1 and 2 Plants by
9.30% according to ANEEL Resolution No. 2,661/2019, which represents a R$
79.2 million positive effect in the quarter; ii) offset by an estimated R$
13.4 million excess energy portion recognized in 1Q19 without a
counterpart in 1Q20.
The net energy supply of the Angra 1 and 2 nuclear
plants was 18.7% lower, being 3,806,848 MWh in 1Q19, compared to the net
supply of 3,094,959 MWh in 1Q20. The reduction in the net energy supply in
the compared periods is justified by: (i) between the dates from
01/11/2020 to 02/14/2020 (35 days) there was a scheduled shutdown for
maintenance and exchange of nuclear fuel from the Angra 1; (ii) On
02/15/2020, during the power increase at the Angra 1 plant, after its
scheduled shutdown period, there was a failure in the connection between
the exciter rotor and the main generator rotor, which caused a short
circuit between the phases and that took the plant out of operation for
another 26 days, returning the plant to 100% power on
03/12/2020.
|
|
Other Income
|
14
|
0
|
-
|
The variation is mainly due to the following
factors: (i) non-recurring gain in adding to the warehouse through
inventory.
|
|
Deductions to the Operating
Revenue
|
-114,122
|
-108,337
|
5.3
|
The variation is mainly due to the following
factors: (i) proportional increase in the variation in Gross Operating
Revenue; offset by: (ii) non-recurring reclassifications of contributions
to ONS / CCEE (R$ 0.4 million)
|
|
ROL
|
817,503
|
757,417
|
7.9
|
|
|
|
|
|
|
|
|
Operating Costs and Expenses
|
|
|
|
The Operating Expenses and Costs, in 1Q20,
increased by 1.9% compared to 1Q19, going from positive R$ 581 million in
1Q19 to negative R$ 592 million in 1Q20. The variations of each
income account are detailed below:
|
|
|
|
|
|
|
|
PMSO - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Personnel
|
-150,224
|
-143,463
|
4.7
|
The variation is mainly due to: (i) effects, which
occurred after 1Q19 and are already considered in 1Q20: (a) increase of
3.55% )4.8 million) granted to employees through ACT from 10/2019, with
retroactive effect to 05/2019; (b) an average increase of 1.5% (1 million)
due to the application of a promotion by level advancement system (SAN) as
of 10/2019, with retroactive effect to 05/2019; (c) an increase in
expenses with overtime work in the amount of R$ 6.9 million, plus R $ 4.8
million in charges, resulting from the maintenance activities of the Angra
1 plant during its scheduled shutdown in 1Q20; offset by: (d) reduction of
R$ 5 million resulting from the dismissal of 34 employees in December/2019
and the addition of 11 dismissals in February/2020 through the
PDC.
|
|
Supplies
|
-28,933
|
-6,418
|
350.8
|
The variation is mainly due to: (i) In 1Q19, there
were no scheduled plant shutdowns; (ii) In 1Q20, there was 1P25, Angra 1
shutdown, which generated, in addition to the increase in the usual costs
of stoppage for maintenance and exchange of nuclear fuel, an additional
cost due to a short circuit in the connection between the exciter and the
electric generator. The plant was stopped in the scheduled period from
01/11/2020 until 02/14/2020, and beyond the scheduled time, for more 26
days (from 02/15/2020 to 03/12/2020). Altogether, Angra 1 was out of
operation for 61 days during 1Q20. The cost of repairing the exciter was
paid by the manufacturer.
|
|
Services
|
-90,580
|
-49,247
|
83.9
|
The variation is mainly due to: (i) an increase of
R$ 38.8 million related to the stop 1P25 - Angra 1; (ii) increase in the
effect of IFRS16 in the comparison 1Q19 x 1Q20 by R$ 1.2 million. With the
adoption of IFRS 16, the Company no more recognizes operating costs and
expenses arising from operating leasing contracts and starts to recognize
in its income statement the effects of the depreciation of the rights to
use the leased assets, and the financial expense and the foreign exchange
variation calculated based on the financial liabilities of the leasing
contracts; offset by (iii) non-recurring costs incurred in 1Q19 in 1Q20
related to the update of SAP Single Instance in the amount of R$ 3.0
million.
|
|
Consensual Dismissal Plan/PAE
(Provision)
|
4,807
|
-3,379
|
-242.3
|
The variation is mainly due to: (i) in 1Q19, the
new Dismissal Plan + Health Plan was accounted, with the contract
termination of 26 employees in the amount of R$ 10 million, offset by
losses in health plans of previous years in the amount of R$ 6.7 million;
(ii) in 1Q20, the new Dismissal Plan + Health Plan with the adhesion of 56
employees registered in December 2019 in the amount of R$ 18.2 million, a
large part already absorbed in December 2019 with the contract termination
of 34 employees, plus staggered dismissals of 11 employees in February
2020. Accounting records offset by: (iii) write-offs from previous plans,
in the amount of R$ 4.8 million.
|
|
Other
|
-45,844
|
-36,388
|
26.0
|
|
|
Donations and Contributions
|
-106
|
0
|
-
|
The variation is mainly due to the following
reason: (i) ONS contribution reclassified from the group of Deductions
from Operating Revenue.
|
|
Other Operating Expenses
|
-45,738
|
-36,388
|
25.7
|
The variation is mainly due to the following
reason: (i) the variation is mostly composed of R$ 10.0 million related to
taxes and contributions on financial revenues linked to the income of the
Decommissioning Fund.
|
|
TOTAL PMSO
|
-310,774
|
-238,895
|
30.1
|
|
|
|
|
|
|
|
|
Operating Costs
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Charges upon use of electricity
network
|
-44,860
|
-34,120
|
31.5
|
The variation is mainly due to the following
reasons: (i) in January 2019, there was a write-off of the provision in
the amount of R$ 5 million related to the non-recurring CUSD recorded in
2018; (ii) tax credits recorded in 1Q19 in the amount of R$ 3.3 million;
and (iii) less provisions for the monthly installment paid to ENEL
Distribuição in the amount of R$ 2.7 million in 1Q19.
|
|
Fuel
|
-101,699
|
-105,822
|
-3.9
|
The variation is mainly due to: (i) consumption of
uranium equivalent (Kg Ueqv) was 23% lower, being 321.359 Kg Ueqv in 1Q19
and 247.646 Kg Ueqv in 1Q20. Variation influenced by the maintenance stop
and nuclear fuel exchange at the Angra 1 plant (1P25), as well as by the
unscheduled interruption caused by the failure in the connection between
the exciter rotor and the main generator rotor, both occurred in 1Q20;
(ii) non-recurring effect in the amount of R$ 9.0 million due to
retroactive tax credits (PASEP / COFINS), related to the acquisition of
nuclear fuel; offset by: (iii) increase in the average cost of nuclear
fuel refills that were consumed in the compared periods, of which R$ 523.0
million in 1Q19 and R$ 552.3 million in 1Q20, representing an approximate
increase of 5.6 % in their equivalent average unit
prices.
|
|
Depreciation and Amortization
|
-149,479
|
-129,744
|
15.2
|
The variation is mainly due to the following
reasons: (i) a significant increase in the base of regulatory assets in
service in the amount of R$ 453.6 million occurred at the end of 1Q19
(unitizations), due to unitizations after SAP go-live comprising various
fixed installations and plant systems.
|
|
TOTAL OPERATING COSTS
|
-296,038
|
-269,686
|
9.8
|
|
|
|
|
|
|
|
|
Operating Provisions
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
|
13,928
|
-72,891
|
-119.1
|
The variation is mainly due to the following
reasons: (i) accounting record in 1Q19: (a) actuarial provision in 1Q19
(FRGNucleos) in the amount of R$ 35 million; (b) increases in civil
provisions of R$ 21.8 million and labor provisions of R$ 8.4 million; (c)
updating of provisions for legal contingencies of R$ 8 million
(labor, civil, tax and environmental); (ii) accounting record in 1Q20: (a)
reversal of provision for contingencies, with emphasis on the annulment of
the environmental administrative process in the amount of R$ 20.8 million;
offset by: (b) updating of provisions for legal contingencies in the
amount of R$ 7.7 million (labor, civil, tax and
environmental).
|
DFR -
Investor Relations Superintendence
Marketletter - Annex II -
1Q20
Financial Information of the
Subsidiaries
|
Financial Income
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Financial Income
|
370,577
|
90,512
|
309.4
|
|
|
Income from financial
investments
|
926
|
1,013
|
-8.6
|
The variation is mainly due to: (i) lower daily
average values in financial investments of the company's cash
were kept when comparing the periods, combined with lower
profitability.
|
|
Monetary adjustment gain
|
850
|
3,317
|
-74.4
|
The variation is mainly due to the following
factor: (i) lower variations in judicial deposit updates.
|
|
Exchange variation gain
|
-2,052
|
59,456
|
-103.5
|
The variation is mainly due to the following
factors: (i) observing the net exchange rate analysis (assets and
liabilities together), we have: (a) in 1Q19, there was a non-recurring
exchange rate variation on write-offs of advances to suppliers in Angra 3,
in the amount of R$ 40.7 million ; (a) in 1Q20, liabilities of R$ 69
million were updated with suppliers maintained in foreign currency (Euro),
especially related to Angra 3, in the amount of EUR 57 million, due to the
strong devaluation of the Real (R$) in the period (over
26.8%)
|
|
Other Financial Income
|
370,853
|
26,726
|
1287.6
|
The variation is mainly due to the following
reason: (i) profitability of R$ 370 million in the Decommissioning Fund in
1Q20 vs. R$ 24.5 million in 1Q19. The Decommissioning Fund has positions
in future dollar repurchase operations and the variation in its
profitability is extremely subject to these exchange rate
fluctuations.
|
|
Financial Expenses
|
-260,890
|
-94,827
|
175.1
|
|
|
Debt Charges - Financing and
Loans
|
-147,535
|
-15,680
|
840.9
|
The variation is mainly due to: (i) in 1Q19, the
Company still capitalized/transferred the interest of the Angra 3 project
to the work cost, thus reducing the Debt Charges item. In this period, the
amount of R$ 136.5 million was transferred; (ii) In 1Q20, Debt Charges for
Angra 3 are fully computed in the result, since the maintenance of the
Angra 3 Project as a qualifying asset for capitalization of costs with
loans and financing has been revisited since 2Q19 . The Company expects to
recover this procedure as soon as the Project returns to favorable
conditions for its qualifying asset condition in accordance with the
requirements required in Pronouncement CPC 20 (R1) - Borrowing
Costs.
|
|
Leasing charges
|
-1,153
|
0
|
-
|
The variation is mainly due to: (i) the effect of
IFRS16 in 1Q20 that did not occur in 1Q19. With the adoption of IFRS 16,
the Company no more recognizes operating costs and expenses arising from
operating leasing contracts and starts to recognize in its income
statement the effects of the depreciation of the rights to use the leased
assets, and the financial expense and the exchange variation determined
based on the financial liabilities of the leasing contracts.
|
|
Monetary adjustment loss
|
-4,824
|
-14,696
|
-67.2
|
The variation is mainly due to the following
factor: (i) write-offs of revaluated judicial deposits.
|
|
Exchange variation loss
|
-73,201
|
-22,030
|
232.3
|
The variation is mainly due to the following
factors: (i) observing the net exchange rate analysis (assets and
liabilities together), we have: (a) in 1Q19, there was a non-recurring
exchange rate variation on write-offs of advances to suppliers in Angra 3,
in the amount of R$ 40.7 million ; (a) in 1Q20, liabilities of R$ 69
million were updated with suppliers maintained in foreign currency (Euro),
especially related to Angra 3, in the amount of EUR 57 million, due to the
strong devaluation of the Real (R$) in the period (over
26.8%).
|
|
Other Financial Expenses
|
-34,177
|
-42,421
|
-19.4
|
The variation is mainly due to the following
reasons: (i) lower adjustment to the present value of the Decommissioning
Fund in 1Q20 in relation to 1Q19 (R$ 4 million); as well as (ii) a
reduction of R$ 4 million in other financial expenses in 1Q20, when
compared to 1Q19.
|
|
Financial Result
|
109,687
|
-4,315
|
2,642.0
|
|
|
|
|
|
|
|
|
Income Tax and CSLL
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Current IR and CSLL
|
-105,836
|
-51,967
|
103.7
|
The variation is mainly due to the following
factor: (i) result applied to the taxable profit calculated in the period,
affected especially, by the profitability of the decommissioning fund,
which is the taxable base for these taxes and with a great impact on the
value of the item.
|
DFR -
Investor Relations Superintendence
Marketletter - Annex II -
1Q20
Financial Information of the
Subsidiaries
|
FURNAS
|
|
|
|
|
|
|
|
Result Analysis
|
|
|
|
|
|
|
|
The Company had, in 1Q20, a result 99.7%
lower that ascertained in 1Q19, going from a profit of R$ 902 million in
1Q19 to a profit of R$ 2,8 million in 1Q20, mainly due to the reasons
described below.
|
|
|
|
|
|
|
|
Operating Revenue - Generation and Transmission
Companies
|
|
|
|
|
|
|
|
The Net Operating Revenue, in 1Q20, decreased of
1.5% compared to 1Q19, going from R$ 2,169 million in 1Q19 to R$ 2,135
million in 1Q20. The variations of each income account are detailed
below:
|
|
|
|
|
|
|
|
Gross Revenue - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Generation
|
1,516,837
|
1,570,299
|
-3.4
|
|
|
Energy supply to distribution
companies
|
875,186
|
1,041,344
|
-16.0
|
The variation is mainly due to the following
reasons: (i) Negatively: (a) In the ACR (Regulated Conracting
Environment), the termination of the Existing Energy Product 2014-2019
resulted in a net drop in revenue of approximately R$ 192 million,
considering an amount average contracted in 1Q19 of 334MW avg; and (b)
Lower sales of energy in the ACL (Free Conracting Environment),
representing a decrease of R$ 33 million; and (ii) Positively: (a)
Seasonalization and price readjustment (on average 4%) of quantity
contracts, representing an increase in revenue of approximately R$ 10
million; and (b) Higher operation of Santa Cruz plant in 2020, increasing
revenue by R$ 31 million. It is worth mentioning that the increase in
sales in the "Supply" category leads to a drop in revenue in the "Supply"
item, given the lower availability of energy to be traded in the
ACL-Supply.
|
|
Supply
|
293,956
|
183,705
|
60.0
|
The variation is mainly due to the following
reasons: (i) price adjustment of the current contracts of the Itumbiara
Plant's auctions, governed by Law 13,182/2015, specific to final
consumers, resulting in an increase in revenue of approximately R$ 7
million; and (ii) New contracts at the ACL (Free Conracting Environment)
that started supplying in 2020, positively impacted revenue by R$ 103
million.
|
|
Short Term Market (CCEE)
|
6,935
|
43,317
|
-84.0
|
The variation is mainly due to the following
reason: (i) variation of the GSF in the period, which decreased by
approximately 30% (average of 149% in 2019 and 106% in 2020) - providing
greater energy allocated to Furnas in 2019 (and consequent higher
settlement in the short-term market) and less energy allocated in 2020
(and consequent lower settlement in the short-term market). In addition,
the average PLD dropped 34% (1Q19 was R$ 285.04 while in 1Q20 it was R$
188.63).
|
|
O&M Income - Renewed Power Plants pursuant Law
12,783/2013
|
332,366
|
298,316
|
11.4
|
The variation is mainly due to the following
reasons: (i) RAG's annual readjustment of approximately 11%, according to
Aneel Homologatory Resolution No. 2,587/2019, representing an increase of
revenue of R$ 28 million in 1Q20 and (ii) the variation CFURH and,
consequently, PIS/COFINS, which represented an increase of R$ 6 million in
revenue.
|
|
Generation Construction Income
|
8,394
|
3,617
|
132.1
|
The variation is mainly due to: (i) the amount is
based on the level of investment made in the period, in particular, the
investment made in Porto Colombia in the amount of R$ 2.4
million.
|
|
Transmission
|
1,050,141
|
1,020,220
|
2.9
|
|
|
O&M Transmission Lines renewed pursuant to Law
12,783/2013
|
381,900
|
356,423
|
7.1
|
The variation is mainly due to: (i) increase in
RBNI's invoiced RAP (R$ 22.5 million) caused by the annual tariff
adjustment and the increase in revenue due to the go-live of new
equipment. It is worth mentioning the replacement of 2 Series
Capacitor-Banks in SS Samambaia (in the amount of R$ 3 million/month), and
all the necessary physical adaptation for the beggining of operation of
both.
|
|
O&M Transmission lines not renewed pursuant to
Law 12,783/2013
|
43,504
|
40,763
|
6.7
|
The variation is mainly due to: (i) increase in
billed RAP (R$ 4.4 million), caused by the annual tariff adjustment
(updated by the inflation variation index included in each concession
contract, IGP-M or IPCA, which variation in the last twelve months was
7.64% and 4.66%, respectively) and by January 2019, it did not include the
CDE portion, which total value is R$ 601,585.18.
|
|
RBSE income
|
547,807
|
513,570
|
6.7
|
The variation is mainly due to: (i) differences in
rates used between the quarters of 2019 and 2020. In January and February
2019, the discount rate was the NTN-B of 4.6% (rate of December 2018), but
in March 2019, the NTN-B of 4.10% was used, corresponding to the rate of
the closing month itself. In 1Q20, we used the WACC of 6.64%, so there was
an increase in Revenue. (ii) In addition to the rate differences, there
was an increase in the RAP billed in the RBSE Approved, caused by factors
such as the annual tariff readjustment and an increase in the Variable
Portion discount in 2019, in relation to the same period in 2020, in the
amount of R$ 20 millions.
|
|
Transmission Construction Income
|
37,342
|
84,715
|
-55.9
|
The variation is mainly due to: (i) the amount is
based on the investment made, being mainly linked to a construction margin
of 25.96%, based on the financial calculation of the CT 062, RBNI,
according to IFRS 15.
|
|
Income from Return of Investment in Transmission
|
39,588
|
24,749
|
60.0
|
The variation is mainly due to the following
factor: (i) realization of the contract entries CT 062.2001, RBNI, in
accordance with IFRS 15. (the asset base was expanded by R$ 326 million
from one quarter to another).
|
|
Other Income
|
7,777
|
4,055
|
91.8
|
The variation is mainly due to the following
factor: (i) payment (R$ 3.4 million) for the provision of operation and
tele-assistance services provided by FURNAS (for SPEs and the market in
general).
|
|
Deductions to the Operating
Revenue
|
-438,918
|
-425,289
|
3.2
|
The variation is mainly due to the following
factors: (i) increase in CDE expenses R$ 5,983 thousand; (ii) PIC/COFINS
in the amount of R$ 5,227 thousand; and (iii) ICMS of R$ 4,038
thousand.
|
|
ROL
|
2,135,837
|
2,169,285
|
-1.5
|
|
|
|
|
|
|
|
|
Operating Costs and Expenses
|
|
|
|
Operating Costs and Expenses increased 38.6% in
1Q20 compared to 1Q19, going from R$ 1,071 million to R$ 1,485 million,
accordinng to the reasons listed below:
|
|
|
|
|
|
|
|
PMSO - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Personnel
|
-231,510
|
-254,180
|
-8.9
|
The variation is mainly due to: (i) reduction in
the item Payment of Labor Claims (R$ 14.6 million); (ii) reduction in
Salary, Christmas bonus salary and transportation voucher (totaling R$
11.5 million, as a consequence of the Consensual Dismissal Plan - PDC),
following the reduction in the workforce, where the average in 1Q19 was
3,054, moving to an average of 2,863 in 1Q20; and (iii) the readmission as
effective employees, by the courts, of 101 dismissed outsourced employees,
with an average monthly cost of R$ 781 thousand/month (April base) and
(iv) salary increase of 3.77%.
|
|
Supplies
|
-3,240
|
-8,165
|
-60.3
|
The variation is mainly due to: (i) reduction in
Materials items (R$ 3,110 thousand, mainly due to the acquisition, in
1Q19, of materials such as Crosby Clamps R$ 362 thousand, parts for
thermochemical reactors R$ 1.3 million and Heat Exchanger pieces R$ 127
thousand, which did not occur in 1Q20, and (ii) reduction of ICMS - rate
difference (R$ 1,405 thousand).
|
|
Services
|
-125,588
|
-150,532
|
-16.6
|
The variation is mainly due to: (i) reduction in
the following items: (a) Hired workforce (R$ 13 million); (b) Fundação
Real Grandeza Assistance (reduction of R$ 4 million, due to
the renegotiation of the management fee with the foundation by R$ 16
million per year; and (c) Accommodation (R$ 1.5 million), due to the
termination of outsourced workforce in 2019 (1 in Oct/19, 49 in Nov/19 and
994 in Dec/19).
|
|
Consensual Dismissal Plan/PAE
(Provision)
|
-535
|
-19,560
|
-97.3
|
The variation is mainly due to: (i) in 1Q19, 58
people were included in the PDC (Consensual Dismissal Plan). For 2020,
there is no PDC forecast. However, in 1Q20, there were 3 contract
terminations by the PDC of employees affected by the end of operations at
the Belo Horizonte office. In addition, there were payments for
complementary terminations for employees that left the company in December
2019.
|
|
Other
|
-192,622
|
-65,460
|
194.3
|
|
|
Donations and Contributions
|
-14,820
|
-10,256
|
44.5
|
The variation is mainly due to the following
reasons: (i) anticipation of the 4th installment of the statutory
contribution to CEPEL, totaling 4 accountings and not 3 (R$ 2.73
million/month Cepel); In addition, (ii) accounting of R$ 1 million related
to the payment to Çarakura Institute. Furnas has been supporting the
Çarakura Institute with resources for the implementation of community and
pan-villager socialization spaces as a contribution to strengthening the
ethnic identity of the Kaingang of the Queimadas Indigenous Land
(Ortigueira-PR), as well as supporting their physical and socio-cultural
reproduction .
|
|
Other Operating Expenses
|
-177,802
|
-55,204
|
222.1
|
The variation is mainly due to the following
reasons: (i) increase in the indemnities, losses and damages account in
the amount of R$ 111 million. Out of this total, R$ 98 million refers to
the settlement of Camargo Correa's lawsuit in Mar/20, the rest refers to
the accounting of 3 installments of the agreement between Furnas and
Inepar, totaling approximately R$ 14 million. In addition, (ii) there was
an increase of R$ 21 million in court costs, notably the fees paid in the
Civil Procedure (Contractual Collection) 0150142-62.2010.8.19.0001 - CIEN
COMPANHIA DE INTERCONEXAO ENERGETICA. On the other hand, (iii) other items
were positively impacted: (a) Rents, with a reduction of R$ 5.17 million,
mainly due to the return of Block C and the consequent payment only for
blocks A and B; (b) Insurance, with a reduction of R$ 5.96 million in the
Hydrological Risk Insurance - GSF account due to the end of the
amortization of the GSF insurance of Serra da Mesa and Mascarenhas; and
(c) Taxes and Fees with a reduction of R$ 2.22 million, mainly due to the
lower amount of IPTU paid in 2020, referring only to blocks A and B, due
to the return of block C.
|
|
TOTAL PMSO
|
-553,495
|
-497,897
|
11.2
|
|
|
|
|
|
|
|
|
Operating Costs
R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Energy Purchased for Resale
|
-425,649
|
-206,401
|
106.2
|
The variation is mainly due to the following
reasons: (i) price adjustment of the current purchase contracts,
representing an increase of approximately R$ 9 million; (ii) increase in
the amount of current products, already established in the contract,
increasing in 2020 the amount of R$ 18 million; (iii) new short-term
contracts signed in the amount of R$ 102 million in order to reduce the
negative exposure in the short-term market, since there is a possibility
to take advantage of the negative goodwill existing in the short-term
bilateral operations, as well as the tax benefit in view of the settlement
at the CCEE. (iv) increase in the amounts settled as a debt in the
short-term market in 2020, which resulted in approximately R$ 81 million
of variation in this item, mainly because GSF variation (149% 1Q19 x 106%
1Q20).
|
|
Charges upon use of electricity
network
|
-165,931
|
-149,474
|
11
|
The variation is mainly due to the following
reason: (i) readjustment between the Tariffs for the Use of the
Transmission System (TUST) in force in 1Q19 (referring to ANEEL Approval
Resolution No. 2,409 of 6/26/2018) and the rates in force in 1Q20
(referrring to ANEEL Approval Resolution No. 2,562 of 6/25/2019). Between
these two resolutions, some tariffs underwent significant readjustments,
such as: HPP Furnas with 16.26% increase, HPP Estreito with 15.93%
increase, HPP Marimbondo with 16.02% and HPP Corumbá with 13.37% increase.
These increases were reflected in charges in 1Q20, causing the average
increase seen between them.
|
|
Construction Expense
|
-87,108
|
-57,044
|
53
|
The variation is mainly due to the following
reasons: (i) an increase of R$ 50 million in investments for improvements
in contract 062; offset by (ii) write-off of R$ 26 million, in contract
006/2010 - Mascarenhas-Linhares (due to accounting reclassifications); and
(iii) other investments for improvements in several
contracts.
|
|
Fuel
|
-140,380
|
-43,955
|
219
|
The variation is mainly due to: (i) variation in
operation of Santa Cruz plant, which presented in 1Q19 a generation of
259,032 MWh and in the same period of 2020, generated 624,703MWh,
representing an increase of approximately 366,000 MWh.
|
|
Depreciation and Amortization
|
-71,838
|
-66,010
|
9
|
The variation is mainly due to the following
reason: (i) the volume of investments made in the last 12 months increased
the asset base.
|
|
TOTAL OPERATING COSTS
|
-890,906
|
-522,884
|
70.4
|
|
DFR -
Investor Relations Superintendence
Marketletter - Annex II -
1Q20
Financial Information of the
Subsidiaries
|
Operating Provisions R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
|
-41,097
|
-50,705
|
-18.95
|
The variation is mainly due to the following
reasons: (i) in 1Q20, there was a reversal of civil contingency (R$ 98
million), related to the process that deals with the economic and
financial rebalancing of the construction contract for the Serra da Mesa
Plant; offset by (ii) constitution of regulatory contingencies (R$ 41
million), with emphasis on the Aneel Tax Notices 013, 014 and 015 of 2020
(totaling R$ 31.7 million); (iii) labor contingencies (R$ 30 million); and
(iv) environmental contingencies (R$ 24 million). And (v) between 1Q19 and
1Q20, there was a reversal of GAG improvement of R$ 6.6
million.
|
|
|
|
|
|
|
|
Financial Income
R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Financial Income
|
54,386
|
230,173
|
-76.4
|
|
|
Income from financial
investments
|
12,673
|
8,899
|
42.4
|
The variation is mainly due to: (i) increased
earnings at Banco do Brasil (R$ 1,539 thousand) and Caixa Econômica
Federal (R$ 2,096 thousand).
|
|
Income - financing and loans
|
6,418
|
-65
|
9973.8
|
The variation is mainly due to: (i) transfer, in
1Q20, of the amount receivable from Eletronuclear to loans and financing
account, which did not occur in 1Q19. This amount refers mainly to
interest and fees specified in the contract with Eletronuclear. In March
2020, the total balance receivable is R$ 271,163,656.60
|
|
Additional interest on energy
|
2,801
|
2,258
|
24.0
|
The variation is mainly due to: (i) increase in
revenue from Charges upon Electricity Trading Chamber (CCEE), settlement
of the Short-Term Market.
|
|
Monetary adjustment gain
|
21,408
|
10,558
|
102.8
|
The variation is mainly due to the following
factors: (i) amount receivable from Eletronuclear, which did not exist in
1Q19; and (ii) an increase of approximately 2.5% in the IGP-M1, when in
1Q19 it decreased. This amount mainly refers to the monetary variations
that occurred in contract with Eletronuclear.
|
|
Exchange variation gain
|
12,446
|
559
|
2126.5
|
The variation is mainly due to the following
factors: (i) increase in the exchange rate of foreign currency in 1Q20
(from R$ 4.06 to R$ 5.196) in relation to the same period in 2019 (from R$
3.875 to R$ 3.915 ), mainly impacting the energy bill in
dollars.
|
|
Fair value adjustment - RBSE
gain
|
0
|
198,736
|
-100.0
|
The variation is mainly due to the following
factor: (i) remeasurement of RBSE's assets, with emphasis on the change,
in December 2019, of the discount rate of the portion of RBSE's
remuneration from NTNB to regulatory WACC of 6.64% and in the amortization
period. The rate used in January and February 2019 was the NTN-B of 4.6%
and in March 2019 it was the NTN-B of 4.10%.
|
|
Other Financial Income
|
-1,360
|
9,228
|
-114.7
|
The variation is mainly due to the following
reason: (i) transfer of the balance receivable from Eletronuclear to loans
and financing account.
|
|
Financial Expenses
|
-511,791
|
-454,057
|
12.7
|
|
|
Debt Charges - Financing and
Loans
|
-136,918
|
-180,900
|
-24.3
|
The variation is mainly due to: (i) decrease in
loan charges and expenses with FIDC, in 1Q20 compared to the same period
in 2019. (rollover of IPCA debt from + 7% to IPCA + 4.08%)
.
|
|
Leasing charges
|
-2,846
|
-85
|
3248.2
|
The variation is mainly due to: (i) the increase
refers to a greater adjustment in leasing operations, based on IFRS 16, in
1Q20 compared to the same period in 2019.
|
|
Charges on shareholders'
compensation
|
-7,725
|
-3,756
|
105.7
|
The variation is mainly due to the following
factor: (i) update of the dividend base, which was approximately R$ 400
million in 2019 while in 2020 is approximately R$ 800 million. The base is
updated according to SELIC (0.47% in 1Q19 and 0.34% in
1Q20).
|
|
Monetary adjustment loss
|
-10,745
|
-25,233
|
-57.4
|
The variation is mainly due to the following
factor: (i) decrease refers, mainly, to a smaller variation of the indexes
of loans payable in 1Q20 compared to the same period of
2019.
|
|
Exchange variation loss
|
-109,163
|
-2,664
|
3997.7
|
The variation is mainly due to the following
factors: (i) increase in the exchange rate of foreign currency in 1Q20
(from R$ 4.06 to R$ 5.196) in relation to the same period in 2019 (from R$
3.875 to R$ 3.915 ), mainly impacting the dollar loans payable account,
contracted at USD 2.0626 for the ECR 258/97 contract - BID 1051. In 1Q20,
the loan amount is around R$ 474.7 million, while in 1Q19 was R$ 386.2
million.
|
|
Fair value adjustment - RBSE
loss
|
-223,670
|
-165,817
|
34.9
|
The variation is mainly due to the following
reason: (i) in December 2019, change of the RBSE's remuneration portion by
the regulatory WACC of 6.64% within the amortization period. The rate used
in January and February 2019 was the NTN-B of 4.6% and in March 2019 it
was the NTN-B of 4.10%.
|
|
Other Financial Expenses
|
-20,724
|
-75,602
|
-72.6
|
The variation is mainly due to the following
reasons: (i) reduction in the following items: (a) Fine on Tax Notices (R$
17,519 thousand); (b) Interest on arrears without COFINS (R$ 3,796
thousand); (c) Fine on Income Tax Collection (R$ 11,675 thousand); and (d)
Fine on CSLL Payment (R$ 4,139 thousand).
|
|
Financial Result
|
-457,405
|
-223,884
|
-104.3
|
|
|
|
|
|
|
|
|
Equity Interest
R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Equity Interests
|
-103,149
|
40,610
|
-354.0
|
The variation is mainly due to the following
reason: (i) in 1Q20, Santo Antônio presented a negative result of R$ 427
million against a negative forecast of R$ 249 million, mainly due to: (a)
the GSF was lower than projected, being negative in Jan/20, which led the
purchase of energy at a high PLD of R$ 327, causing a loss of R$ 92
million; (b) another impacting factor was the IPCA of Dec/19 of 1.07%
against a forecast of 0.30%, directly affecting financial expenses by R$
102 million. This resulted in a negative equity result for Santo Antônio
of R$ 180 million in 1Q20.
|
|
Other Operating Income/expenses- R$
Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Other Operating Income/Expenses
|
25,042
|
0
|
-
|
The variation is mainly due to the following
reason: (i) referring to the gain on the sale of SPE Centroeste de Minas,
in the context of Lieu of Payment to the Holding company.
|
|
|
|
|
|
|
|
Income Tax and CSLL
R$
Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Current IR and CSLL
|
-309,430
|
-424,018
|
-27.0
|
The variation is mainly due to the following
factor: (i) this value for 2020 was impacted by the additions and
exclusions of the tax calculation base (in 2020 it is lower than in
2019).
|
|
Deferred IR and CSLL
|
197,421
|
412,099
|
-52.1
|
The variation is mainly due to the following
factor: (i) a reflection of the decrease in deferred
liabilities.
|
|
Non-controlling Shareholders
|
16
|
2
|
700.0
|
The variation is mainly due to the following
factor: (i) referring to SPEs Brasil Ventos and
TGO.
|
DFR -
Investor Relations Superintendence
Marketletter - Annex II -
1Q20
Financial Information of the
Subsidiaries
|
CGT ELETROSUL
|
|
|
|
|
|
|
|
|
|
Result Analysis
|
|
|
|
|
|
|
|
|
|
The Company had, considering its consolidated
financial statements, in 1Q20, a result 134% higher that
ascertained in 1Q19, going from a loss of R$ 31.8 million in 1Q19 to a
profit of R$ 10.8 million in 1Q20, mainly due to the reasons described
below.
|
|
|
|
|
|
|
|
|
|
Operating Revenue
|
|
|
|
|
|
|
|
|
|
The Net Operating Revenue, in 1Q20, increased 5.9%
compared to 1Q19, going from R$ 648 million in 1Q19 to R$ 686 million in
1Q20. The variations of each income account are detailed
below:
|
|
|
|
|
|
|
|
|
|
Gross Revenue - R$ Thousand
|
1Q20
[a]
|
1Q19
[b]
|
1Q19
Eletrosul
|
1Q19
CGTEE
|
Variation (%)
[a/b-1]
|
Analysis
|
|
Generation
|
390,588
|
370,710
|
264,850
|
105,860
|
5.4
|
|
|
Energy supply to distribution
companies
|
386,087
|
332,651
|
226,791
|
105,860
|
16.1
|
The variation is mainly due to the following
reasons: (i) price variation in the regulated market due to the
contractual adjustment and the IPCA of 6.25% and, (ii) reimbursement for
generation insufficiency in 1Q19 of R$ 81 million, given the overhaul at
TPPCandiota, while in 2020, the reimbursement was around R$ 7 million.
These events were partially offset by the change in PLD, which in 2019 was
R$ 290.09/MWh and in 2020 was R$ 217.57/MWh. In 1Q19, revenue could have
been higher, since the purchase of PPAs signed with Eletronorte was 135
MWm, while in 1Q20 the purchase is 109 MWm, and the average PLD related to
such operation in 1Q19 was R$ 191 .00 / MWh, in 1Q20 it was R$ 177.54 /
MWh, that means, a 7% lower variation.
|
|
Short Term Market (CCEE)
|
4,501
|
38,059
|
38,059
|
0
|
-88.2
|
The variation is mainly due to the following
reasons: (i) the PLD South submarket in 1Q20 was 25% lower than in 1Q19;
(ii) in 2019, there was greater receipt of secondary energy by the
hydroelectric plants participating in the Energy Reallocation Mechanism
(MRE) as a result of the seasonalization strategy adopted. Also, in 1Q19
the GSF was positive, with an average of 149%, while in 2020 the average
was 105%.
|
|
Transmission
|
374,718
|
344,386
|
344,386
|
0
|
8.8
|
|
|
O&M Transmission Lines renewed pursuant to Law
12,783/2013
|
175,557
|
163,329
|
163,329
|
0
|
7.5
|
The variation is mainly due to: (i) increase due
to the readjustment by the IPCA (4.65% - ANEEL Resolution 2,565/2019) and
new works in the period (R$ 7.6 million); (ii) positive increase in the
RAP (Annual Allowed Revenue) adjustment portion in relation to the same
period (R$ 5.1 million - ANEEL Resolution 2,565 2019). Among the reducing
effects, the Prepayment Apportionment (R$ -1 million - ONS Credit Notices)
stands out.
|
|
O&M Transmission lines not renewed pursuant to
Law 12,783/2013
|
60,723
|
69,713
|
69,713
|
0
|
-12.9
|
The variation is mainly due to: (i) positive
adjustment of R $ 16.8 million, in 1Q19, reflecting remeasurement
(according to CPC 47 - IFRS 15) of the contractual asset balance of the
subsidiary TSBE, that should have been registered in 2018, which did not
happen and ended up being registered in 2019 due to normative permission
for the consolidation of subsidiaries with a 2-month lag; (ii) Excluding
the adjustment amount, the variation would be positive by R$ 7.8 million,
mainly reflecting the increase in the IPCA adjustment (4.65% - ANEEL
Resolution 2,565/2019) for the period and the changes in the installment
R$ 1.6 million and an adjustment of R$ 5.1 million (ANEEL Resolution
2,565/2019).
|
|
RBSE income
|
55,426
|
51,694
|
51,694
|
0
|
7.2
|
The variation is mainly due to: (i) an increase
due to the monetary update of the future RAPs flow of 4.66% related to
RBSE, which occurred in June/2019 (cycle 2019/2020), an this increase was
partially offset by the amortization of the asset that occurred in the
period. These changes increased RBSE's revenue by approximately R$ 0.2
million in the current quarter; and (ii) as of December 2019, the expected
flow for the controversial part of RBSE was remeasured, as defined with
Eletrobras accounting, starting to be fully corrected by regulatory WACC
(from 6.44% to%) plus IPCA, a fact that generated an increase, in this
item, of approximately R$ 3.5 million, in the current
quarter.
|
|
Transmission Construction Income
|
52,951
|
7,526
|
7,526
|
0
|
603.6
|
The variation is mainly due to: (i) the
improvements made in 2018 and 1Q19, but due to the absence of Aneel
criteria, their revenue have not been recognized. For the 2019/2020 cycle,
Aneel, through Technical Note 115/2019-SGT, estimated approximately R$
49.5 million in investments for 5 years starting in 2018, with annual
revenue of R$ 3.9 million , also retroactive. The criteria, as well as
future revenue may be reevaluated, and the receipt will initially be
considered within the calculation portion; and (ii) increase in the
implementation of reinforcements in an electricity transmission
installation authorized by ANEEL.
|
|
Income from Return of Investment in Transmission
|
30,061
|
52,124
|
52,124
|
0
|
-42.3
|
The variation is mainly due to the following
factor: (i) positive adjustment of R$ 19.3 million, in 1Q19, reflecting
the remeasurement of the contractual asset balance of the subsidiary TSBE
(according to CPC 47 - IFRS 15); (ii) Excluding the adjustment amount, the
variation would be negative by R$ 2.7 million, mainly reflecting the
amortization of contractual assets over the period.
|
|
Other Income
|
10,979
|
16,037
|
15,970
|
67
|
-31.5
|
The variation is mainly due to the following
factor: (i) blockage of the billing of Service Provision and
Telecommunications (SCM) contracts in 1Q20, due to the incorporation of
Eletrosul by CGTEE, which resulted in the CGT Eletrosul Company.
Considering this fact, there was a delay (not attributable to the
Company's management) in the registration of the new company before the
competent bodies, which prevented the normal billing course. The amount
not billed for recurring contracts is R$ 4.8 million. The remaining the
difference is explained by amounts arising from the provision of
non-recurring services, that means, sporadic.
|
|
Deductions to the Operating
Revenue
|
-89,851
|
-82,939
|
-72,552
|
-10,387
|
8.3
|
The variation is mainly due to the following
factor: (i) resulting from the increase in revenue.
|
|
ROL
|
686,434
|
648,194
|
552,654
|
95,540
|
5.9
|
|
|
|
|
|
|
|
|
|
|
Operating Costs and Expenses
|
|
|
|
|
|
|
|
|
|
Operating Costs and Expenses increased 5.6% in
1Q20 compared to 1Q19, going from R$ 432 million to R$ 457 million,
accordinng to the reasons listed below:
|
|
|
-457,151
|
-432,830
|
-289,407
|
-143,423
|
5.62
|
|
|
PMSO - R$ Thousand
|
1Q20
[a]
|
1Q19
[b]
|
1Q19
Eletrosul
|
1Q19
CGTEE
|
Variation (%)
[a/b-1]
|
Analysis
|
|
Personnel
|
-115,521
|
-119,736
|
-86,537
|
-33,199
|
-3.5
|
The variation is mainly due to: (i) recognition of
R$ 13 million in labor claims in 1Q19, which did not occur in 2020; (ii)
Correction of wages by the ACT (Collective Labor Agreement) of 3.55%.
(iii) adjustment of the salary table of CGTEE employees with the
incorporation process with an impact of R$ 0.64 million; (iv) R $ 2
million of food vouchers from CGTEE, which in 2019 were considered Third
Party Services and in 2020 is accounted as Personnel item; (v) greater
allocation of employees in investments in 2019, R$ 7.7 million higher than
2020 due mainly to Overhaul at CGTEE; (vi) the termination of 124
employees' contracts at the PDCs in 2019, of which 88 were permanent
employees who bring direct savings when dismissed, with the remaining
employees being amnestied.
|
|
Supplies
|
-33,297
|
-3,987
|
-1,511
|
-2,476
|
735.1
|
The variation is mainly due to: (i) In 2019,
material expenses were considerably lower due to the lack of lime
consumption due to the overhaul stop at Candiota's Phase C plant. The
accumulated value attributed to lime in 1Q20 was R$ 29.3
million.
|
|
Services
|
-38,626
|
-39,543
|
-25,539
|
-14,004
|
-2.3
|
The variation is mainly due to: (i) decrease in
face-to-face activities, especially Travel and commuting, which decreased
by R$ 1.6 million compared to 1Q19 and also due to the fact that in 1Q19
there were extraordinary expenses travel due to the SAP implementation;
(ii) with the natural rupture of the Company's previous ERP system, there
was an effort by the accounting department to provision service expenses,
considering that during the implementation process there was a damming of
accountings in late 2018 and in early 2019, the provisioned amount was the
order of R$ 1.1 million; (iii) contracting of supplementary services, such
as consultancies, which were R$ 310 thousand higher than the amount
realized in 1Q20 for CGTEE overhaul.
|
|
Consensual Dismissal Plan/PAE
(Provision)
|
-113
|
-13,355
|
-13,355
|
0
|
-99.2
|
The variation is mainly due to: (i) In 2019, there
was a Consensual Dismissal Plan, where 43 employees joined, being 4 of
them amnestied, and also a provision of R$ 13.4 million. In 2020, 1
employee left the company by PDC (Consensual Dismissal Plan) and 1
employee by PAE (Extraordinary Retirement Plan).
|
|
Other
|
-17,039
|
-33,530
|
-9,358
|
-24,172
|
-49.2
|
|
|
Other Operating Expenses
|
-17,039
|
-33,530
|
-9,358
|
-24,172
|
-49.2
|
The variation is mainly due to the following
reasons: (i) In 1Q19, the former CGTEE recorded a non-recurring expense in
this item of R$ 21 million for the acquisition of coal. The
reclassification of this expense occurred in April/2019, impacting
negatively 1Q19 (ii) In 1Q19, there was R$ 4.1 million as an expense
recovery, in the same period of 2020 no recoveries were
accounted.
|
|
TOTAL PMSO
|
-204,596
|
-210,151
|
-136,300
|
-73,851
|
-2.6
|
|
|
|
|
|
|
|
|
|
|
Operating Costs
R$ Thousand
|
1Q20
[a]
|
1Q19
[b]
|
1Q19
Eletrosul
|
1Q19
CGTEE
|
Variation (%)
[a/b-1]
|
Analysis
|
|
Energy Purchased for Resale
|
-144,054
|
-142,174
|
-87,263
|
-54,911
|
1.3
|
The variation is mainly due to the following
reason: (i) PPAs already signed with the hydro generation SPEs ESBR and
Teles Pires, and wind SPEs Hermenegildo I, II, III and Chuí IX, which were
adjusted by the IPCA by 4.7% for the South submarket and 3.4% for the
North submarket, partially offset (ii) by the lower volume of energy
purchased for resale in 1Q20, derived from PPAs signed with Eletronorte,
from 135 MWm to 109 MWm, which was partially compensated.
|
|
Charges upon use of electricity
network
|
-12,303
|
-10,193
|
-5,611
|
-4,582
|
20.7
|
The variation is mainly due to the following
reasons: (i) the regulatory body allowed CGTEE to end the payments related
to the Phase A and B plants that were out of operation, and the measure
was retroactive to the year 2015. Thus, the Company received a credit that
allowed it not to carry out withholdings between the first and third
quarters of 2019, which led to the lowest realization that
year.
|
|
Construction Expense
|
-22,414
|
-7,305
|
-7,305
|
0
|
206.8
|
The variation is mainly due to the following
reasons: (i) increase in the volume of transmission projects being built
by the company in 1Q20. The constructions are linked to Aneel's
authoritative resolutions and the improvements made to the existing
system, so, at the moment the Company is not increasing its market share
through new auctions.
|
|
Fuel
|
-42,084
|
0
|
0
|
0
|
-
|
The variation is mainly due to: (i) in the same
period in 2019, there was no fuel consumption or reimbursement due to
Overhaul.
|
|
(-) Expenses recovery - Grant
received
|
34,286
|
0
|
0
|
0
|
-
|
The variation is mainly due to: (i) in the same
period in 2019, there was no fuel consumption or reimbursement due to
Overhaul.
|
|
Depreciation and Amortization
|
-58,897
|
-61,110
|
-43,173
|
-17,937
|
-3.6
|
The variation is mainly due to the following
reason: (i) SAP go-live in 2019: adjustments were made throughout the year
in relation to the calculation of Depreciation.
|
|
TOTAL Custos Operacionais
|
-245,466
|
-220,782
|
-143,352
|
-77,430
|
11.2
|
|
DFR -
Investor Relations Superintendence
Marketletter - Annex II -
1Q20
Financial Information of the
Subsidiaries
|
Operating Provisions R$ Thousand
|
1Q20 [a]
|
1Q19 [b]
|
1Q19 Eletrosul
|
1Q19 CGTEE
|
Variation (%) [a/b-1]
|
Analysis
|
|
Provisões Operacionais
|
-7,089
|
-1,897
|
-9,755
|
7,858
|
273.7
|
The variation is mainly due to the following
reasons: (i) in 2020, after a quarterly economic-financial analysis of the
onerosity of energy purchase contracts, the onerosity of the contracts
with Eletronorte was concluded, which the calculated value results in R$
21.28 million of onerosity, considering the period of validity of 2020 to
2023 contracts. It should be noted that in the subsequent months there may
be a reversal of this provision, due to the market situation and PLD
prices. In the same period of 2019, there was no recognition of onerosity
in energy purchase contracts; (ii) constitution of a new labor provision
of R$ 9 million for several minor lawsuits, and values updating
of the Provision for Regulatory Contingency in the
amount of R$ 4.4 million referring to Lot A - concession 001/2015 and R$
3.5 million related to civil proceedings with AES Sul; and (iii) change in
the loss probability of part of the civil lawsuit, with a reversal of R$
32.9 million in 2020 in a process involving Banco KfW, and smoothing the
impact of the growth in operating provisions between the
periods.
|
|
|
|
|
|
|
|
|
|
Financial Income
R$ Thousand
|
1Q20
[a]
|
1Q19
[b]
|
1Q19
Eletrosul
|
1Q19
CGTEE
|
Variation (%)
[a/b-1]
|
Analysis
|
|
Financial Income
|
20,674
|
83,825
|
82,836
|
989
|
-75.3
|
|
|
Income from financial
investments
|
15,913
|
14,937
|
13,951
|
986
|
6.5
|
The variation is mainly due to: (i) an increase of
11% in the average balance of available funds and securities, although the
average return on investments in 2020 was slightly lower than in 2019,
smoothing the increase of financial investments.
|
|
Monetary adjustment gain
|
0
|
308
|
305
|
3
|
-100.0
|
The variation is mainly due to the following
factor: (i) reclassification of these expenses to Other Financial
Income.
|
|
Exchange variation gain
|
0
|
29,977
|
29,977
|
0
|
-100.0
|
The variation is mainly due to the following
factors: (i) in 2019, differently from what happened in 1Q20, there was a
reduction in the exchange rate in January/2019, impacting the debt balance
and creating a positive exchange variation. In January/19, dollar
variation went from R$ 3.87 to R$ 3.65, while the euro fluctuated from R$
4.45 to R$ 4.17. In the rest of the period, the exchange rate continued to
grow. It should be noted that out of the total amount of debt that the
company has, 25% corresponds to foreign currency (dollar and euro) in the
amount of R$ 686 million in March 2020.
|
|
Fair value adjustment - RBSE
gain
|
33
|
0
|
0
|
0
|
-
|
The variation is mainly due to the following
reasons: (i) decrease in the future flow of receipts from RBSE due to the
amortizations that already occurred; and (ii) as of December 2019, the
company reevaluated the criterion and started to adopt the regulatory WACC
of 6.64% as a rate for calculating the fair value of RBSE; before NTN-B
was used as a discount rate.
|
|
Other Financial Income
|
4,728
|
38,603
|
38,603
|
0
|
-87.8
|
The variation is mainly due to the following
reasons: (i) due to changes in the accounting recognition of RBSE's Fair
Value Revenue, which is now recognized in its own account, differently
from what used to be practiced in 1Q19. Considering the balance of Other
Financial Income in 1Q19, R$ 36.3 million corresponds to RBSE's Fair
Value. Excluding its effect, there would be an increase of 104% in this
item between the quarters, mainly due to the recognition of revenue from
Interest and Fines in the amount of R$ 2.4 million in 2020, with R$ 2
million from CGT Eletrosul and the remaining from Subsidiary TSBE .
Regarding the CGT Eletrosul's result, R$ 1.9 million corresponds to
monetary restatement of judicial deposits and late payment charges from
customer bills - basic network, energy and other revenues. The rest is
explained by the financial update of dividends and UBP of the Jaime Canet
and São Domingos plants.
|
|
Financial Expenses
|
-227,962
|
-198,910
|
-98,204
|
-100,706
|
14.6
|
|
|
Debt Charges - Financing and
Loans
|
-47,051
|
-154,565
|
-56,277
|
-98,288
|
-69.6
|
The variation is mainly due to: (i) capitalization
by Holding and early settlement of CGTEE contracts at the time of
incorporation of Eletrosul. Currently, there are only two contracts signed
with intra-group companies of the Eletrobras System, one of them with
Eletrobras Holding, with financial charges of approximately R$ 7.6 million
per quarter.
|
|
Leasing charges - suppliers
|
0
|
-150
|
-150
|
0
|
-100.0
|
The variation is mainly due to: (i) No charges on
suppliers were calculated in 2020.
|
|
Leasing charges
|
-1,165
|
-885
|
-885
|
0
|
31.6
|
The variation is mainly due to: (i) the impact of
CPC 06 from the second quarter of 2019 onwards. The contract base remained
the same.
|
|
Charges on shareholders'
compensation
|
-1,538
|
-2,028
|
-446
|
-1,582
|
-24.2
|
The variation is mainly due to the following
factor: (i) Despite the increase in dividends to be distributed by 12.8%,
the significant variation in the SELIC rate (from 6.50% per year in 1Q19
to 4.25% per year in 2020) resulted in the reduction of charges on
shareholders' remuneration.
|
|
Monetary adjustment loss
|
-8,350
|
-10,022
|
-10,022
|
0
|
-16.7
|
The variation is mainly due to the following
factor: (i) reduction in the IPCA between the periods, since in 1Q19, the
IPCA corresponded to 1.51% (accumulated in the quarter) while in 2020, the
IPCA decreased to 0.53% (accumulated in the quarter), impacting the
monetary variation of existing debts.
|
|
Exchange variation loss
|
-147,417
|
-28,049
|
-28,049
|
0
|
425.6
|
The variation is mainly due to the following
factor: (i) strong fluctuation of dollar and euro in 2020, since in the
mentioned quarter the dollar price changed from R$ 4.03 to R$ 5.20, and
the euro fluctuated from R$ 4.51 to R$ 5.74. In the same period of 2019,
the variation of dollar and euro was much lower compared to 2020. It
should be noted that out of the total debt amount that the company has,
25% corresponds to foreign currency (dollar and euro) in the amount of R$
686 million in Mar/2019.
|
|
Fair value adjustment - RBSE
loss
|
-13,003
|
0
|
0
|
0
|
-
|
The variation is mainly due to the following
reasons: (i) decrease in the future flow of receipts from RBSE due to the
amortizations that already occurred; and (ii) as of December 2019, the
company reevaluated the criterion and started to adopt the regulatory WACC
of 6.64% as a rate for calculating the fair value of RBSE; before NTN-B
was used as a discount rate.
|
|
Other Financial Expenses
|
-9,438
|
-3,211
|
-2,375
|
-836
|
193.9
|
The variation is mainly due to the following
reasons: (i) non-recurring accounting occurred in 1Q20 related to (a) debt
charges and monetary variations arising from the consolidation of TSBE in
the amount of R$ 8.5 million; (b) and R$ 2.0 million FIDC-related fees,
fines and commissions.
|
|
Financial Result
|
-207,288
|
-115,085
|
-15,368
|
-99,717
|
-80.1
|
|
|
|
|
|
|
|
|
|
|
Equity Interest
R$ Thousand
|
1Q20
[a]
|
1Q19
[b]
|
1Q19
Eletrosul
|
1Q19
CGTEE
|
Variation (%)
[a/b-1]
|
Analysis
|
|
Equity Interests
|
-14,629
|
-47,508
|
-47,508
|
0
|
69.2
|
The variation is mainly due to the following
reasons: (i) variation in equity income of SPE ESBR, which among the
periods, obtained a positive variation of R$ 21.0 million in its
equivalence; and (ii) variation in SPE TSLE, which presented a equity
balance in 2020 of R$ 13.6 million higher than 1Q19, reversing its
negative participation and obtaining a equity balance of R$ 414 thousand
in 1Q20.
|
|
|
|
|
|
|
|
|
|
Income Tax and CSLL
R$
Thousand
|
1Q20
[a]
|
1Q19
[b]
|
1Q19
Eletrosul
|
1Q19
CGTEE
|
Variation (%)
[a/b-1]
|
Analysis
|
|
Current IR and CSLL
|
-3,681
|
-75,096
|
-75,096
|
0
|
-95.1
|
The variation is mainly due to the following
factors: (i) reduction in 2020 of the current base of income tax and
social contribution mainly due to the impact of the exchange rate
variation, which added to the company a financial expense of R$ 147
million in the first quarter.
|
|
Deferred IR and CSLL
|
6,586
|
-9,608
|
-9,608
|
0
|
168.5
|
The variation is mainly due to the following
factors: (i) the impact of construction revenue, which was higher than the
construction expense; (Ii) reversal of loss probability of the civil
process; and (iii) provisioning for onerous contracts reversing the
probability of losing part of the civil proceeding; and (iii) provisioning
for onerous contracts.
|
|
Non-controlling Shareholders
|
549
|
115
|
115
|
0
|
377.4
|
The variation is mainly due to the following
factors: (i) consolidation of the investee SPE
Livramento.
|
DFR -
Investor Relations Superintendence
Marketletter - Annex II -
1Q20
Financial Information of the
Subsidiaries
|
AMAZONAS GT
|
|
|
|
|
|
|
|
Result Analysis
|
|
|
|
|
|
|
|
The Company had, in 1Q20, an income 19% higher
than the recorded in 1Q19, changing from a profit of R$ 133 million in
1Q19 to a profit of R$ 158 million in 1Q20, mainly due to the reasons
described below.
|
|
|
|
|
|
|
|
Operating Revenue - Generation and Transmission
Companies
|
|
|
|
|
|
|
|
The Net Operating Revenue decreased, in 1Q20, by
3.7% comparing to 1Q19, from R$ 758 million in 1Q19 to R$ 730 million
in 1Q20. The variations of each income account are detailed
below:
|
|
|
|
|
|
|
|
Gross Revenue - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Generation
|
1,009,473
|
1,058,872
|
-4.7
|
|
|
Energy supply to distribution
companies
|
985,967
|
1,058,872
|
-6.9
|
The variation is mainly due to the following
reason: (i) generation of TPP Aparecida, which decreased by 64% due to the
migration of the CCVEE contract (exclusive with Amazonas Distribuição de
Energia), with an average price of R$ 591, 00/MWh, for CCEAR (regulated
environment) with a lower average price of R$ 248.5/MWh, with a consequent
reduction in revenue of R$ 106 million. The change in the contractual
modality was due to compliance with the provisions of MME Ordinance No.
855, of November 13, 2018, aiming to the optimal use of natural gas
thermoelectric plants connected to the Coari - Manaus gas pipeline, which
fuel contract establishes the end of supply in Nov/2030, and the
Government through Provisional Measure 855/18 granted Amazonas GT the
alternative to change the contractual profile, leaving CCVEE, which would
ended in Jul/2020, to CCEAR which deadline is concatenated with the
contract of natural gas (nov/2030). This change was made during the
Provisional Measure and is therefore valid despite its non-conversion into
law. In addition to extending the supply term in the new contract, the
plant has the 'ship or pay' portion covered by the CCC fund, similarly to
the conditions of TPP Mauá 3 under LEN A-5/2014; (ii) the HPP Balbina
contract, which showed a 40.9% reduction, due to the seasonality curve of
the contracted energy registered at CCEE in response to the buyer's load,
with a significant drop in 1Q20, showing a negative impact of R$ 45
million; which was partially offset by (iii) generation from TPP Mauá 3,
which showed a 7.3% gain, equivalent to R$ 18 million plus the performance
of plants in the countryside, which represent R$ 5.4 million and PIE's
(Independent Producers) that totaled R$ 61 million more, as Jariqui plant
had not reached the total generation in 1Q19 and in 1Q20 it reached due to
the favorable climate since the thermal plants are directly affected by
the climate factor.
|
|
Short Term Market (CCEE)
|
23,506
|
0
|
-
|
The variation is mainly due to the following
reason: (i) increase in the performance of HPP Balbina, which ended the
CCEE contract below normal and, therefore, the surplus in production had a
positive result of R$ 24 million in revenue, compared to its seasonality
curve, while TPP Mauá 3 had a positive variation of R$ 0.5 million and
PIE's (Independent Producers) RS 0.6 million; on the other hand (ii) TPP
Aparecida had a negative result of R$ 2 million. There was no forecast for
short-term billing in 1Q19, so there is no record in
2019.
|
|
Transmission
|
9,062
|
10,676
|
-15.1
|
|
|
O&M Transmission lines not renewed pursuant to
Law 12,783/2013
|
6,469
|
3,662
|
76.7
|
The variation is mainly due to: (i) in 1Q19, there
was a disallowance of R$ 2.5 million referring to overpayments in cycle
17/18.
|
|
Transmission Construction Income
|
0
|
4,252
|
-100.0
|
The variation is mainly due to: (i) The reduction
was due to the end of the cycles of REA 6,188/2017 (3rd and 4th
transformer for Jorge Teixeira) and REA 6,232/2017 (SS Manaus
transformer). There were no investments in transmission in
2020.
|
|
Income from Return of Investment in Transmission
|
2,593
|
2,762
|
-6.1
|
The variation is mainly due to the following
factor: (i) adjustment in the asset base
|
|
Deductions to the Operating
Revenue
|
-288,153
|
-310,921
|
-7.3
|
The variation is mainly due to the following
factor: (i) there was a reduction in taxes since the calculation is made
on revenue.
|
|
ROL
|
730,382
|
758,627
|
-3.7
|
|
|
|
|
|
|
|
|
Operating Costs and Expenses
|
|
|
|
The Operating Expenses and Costs, in 1Q20,
increased by 2% compared to 1Q19, from positive R$ 426 million to negative
R$ 435 million, presenting the variations listed below:
|
|
|
|
|
|
|
|
PMSO - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Personnel
|
-23,637
|
-31,396
|
-24.7
|
The variation is mainly due to: (i) reduction in
personnel costs, due to the effect of the PDC (Consensual Dismissal Plan),
of R$ 3.5 million, having dismissed 51 employees
until 4Q19; (ii) reduction of approved vacations by R$ 4.2 million in 1Q20
when compared to the same period in 2019; partially offset by (iii) salary
increase of 3.77%.
|
|
Supplies
|
-24,924
|
-802
|
3,007.7
|
The variation is mainly due to: (i) need to
purchase materials of direct application for large maintenance of TPP Mauá
3 of R$ 20 million, for the maintenance of the turbines of the generating
units 10 and 11 of Mauá 03 ; and (ii) the postponement of large-scale
maintenance of the plants had a reflection of much lower realization than
planned in 1Q19, at approximately R$ 16 million; (iii) expenses with
purchases in 1Q20 of R$ 1.7 million related to chemical products
(Hypochlorite, aluminum sulphate, among others), for the water treatment
system of TPP Mauá 03.
|
|
Services
|
-20,162
|
-16,899
|
19.3
|
The variation is mainly due to: (i) greater
maintenance services at the plants with the following distribution: (a) R$
1.5 million refers to the maintenance of plants in the countryside; (b) an
increase of R$ 1 million in transmission services, services that were
initially scheduled for June 2019 and which were being postponed, were
rescheduled to 1Q20, with the acquisition of the material by purchasing
direct application (net for costs at the time of payment). However, due to
COVID-19, the dates were again changed to 2Q20; (c) R$ 0.5 million
industrial waste collection service from the plants; and (d) the remaining
is spread out in plant maintenance contracts, equipment maintenance and
contractual adjustments.
|
|
Other
|
-7,815
|
72,420
|
110.8
|
|
|
Donations and Contributions
|
-288
|
0
|
-
|
The variation is mainly due to the following
reasons: (i) amount of payment to CCEE (associative contribution,
referring to 03 installments of R$ 72 thousand) of R$ 216 thousand; (ii)
amount referring to (March installment) which was accounted in duplicate
for CCEE not yet refunded (R$ 72 thousand); and (iii) in 1Q19, accounting
records were made after the end of the quarter.
|
|
Other Operating Expenses
|
-7,527
|
72,420
|
110.4
|
The variation is mainly due to the following
reason: (i) in 1Q19, the amount of R$ 64.9 million, regarding the recovery
of gas expenses by CCC, was accounted under the item Other. In 1Q20, this
difference is accounted under the item Recovery of Expenses-CCC
Gas.
|
|
TOTAL PMSO
|
-76,538
|
23,323
|
428.2
|
|
|
|
|
|
|
|
|
Operating Costs - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Energy Purchased for Resale
|
-29,105
|
-25,467
|
14.3
|
The variation is mainly due to the following
reasons: (i) annual adjustment of Contract Prices (IGMP + 4%) of
approximately R$ 8 million; partially offset by (ii) a reduction of R$ 5
million, of which R$ 2.8 million referring to PIES (Independent Producers)
and R$ 1.7 million from own plants, motivated by the reduction of the
inflexibility of TPP Aparecida from 150 MWh to 75 MWh, facilitating the
achievement of the expected result and reducing exposure to the short-term
marke; (iii) in 1Q20, TPP Jaraqui showed better efficiency compared to
1Q19 which, due to mechanical failures, increased the need to purchase in
the short-term market.
|
|
Charges upon use of electricity
network
|
-23,188
|
-10,016
|
131.5
|
The variation is mainly due to the following
reasons: (i) late accounting record in 1Q19 and, for this reason, there
was a low realization of EUST of R$ 3.2 million and EUSD of R$ 5.1
million; (ii) an increase of R$ 2.2 million due to the beginning of the
TPP Mauá 3 rate; and (iii) payment related to the rental companies Flores,
São José and Iranduba in the amount of R$ 2.4 million.
|
|
Construction Expense
|
-22
|
-3,236
|
-99.3
|
The variation is mainly due to the following
reasons: (i) reduction of investments in transmission, as in 1Q19 works
were carried out in two transformers in Jorge Teixeira and one in the
Manaus substation, in the total amount of R$ 4.3 million . While, in 1Q20,
there was the acquisition of press-type filters to replace transformers,
in the amount of R$ 22 thousand.
|
|
Fuel
|
-560,220
|
-696,975
|
-19.6
|
The variation is mainly due to: (i) the price of
natural gas practiced in the first two months of 2019 was above ANEEL's
regulation, which only started to be corrected in March/2019 when the
contract was definitively transferred to Amazonas GT, resulting in savings
of R$ 74 million in 1Q20; (ii) rental outlets that occurred in Jun/19,
which represented a reducing impact of R$ 62 million in the fuel portion
for 1Q20; and (iii) reduction in the consumption of natural gas by TPP
Aparecida, since the plant had its contract migrated to CCEAR and started
to have inflexibility of 50%, reducing from 150 MW/h to 75 MW/h,
considering that, the system's PLD at the beginning of the year was below
the plant's CVU, it operated only in response to
inflexibility.
|
|
(-) Expenses recovery - Grant
received
|
342,099
|
316,749
|
8.0
|
The variation is mainly due to: (i) the accounting
in 1Q19 of approximately R$ 64 million in the Other Operating Expenses
item and which has been reclassified to the CCC Expenses-Gas Recovery item
in 1Q20. If this amount were included in the CCC Expenses-Gas Recovery
account after the accounting closing of 1Q19, there would be a reduction
of R$ 38 million in this item between the quarters, justified by the
non-receipt of the expense recovery via system charges that could not be
received after the rental companies (Usina de Flores, São José, Iranduba)
left, which occurred in Jun / 19.
|
|
Depreciation and Amortization
|
-40,256
|
-26,701
|
50.8
|
The variation is mainly due to the following
reasons: (i) unitization occurred in 4Q19, especially at TPP Mauá 3,
representing an increase of R$ 13.4 million.
|
|
TOTAL OPERATING COSTS
|
-310,692
|
-445,646
|
-30.3
|
|
|
|
|
|
|
|
|
Operating Provisions - R$
Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
|
-48,245
|
-4,355
|
1,007.8
|
The variation is mainly due to the following
reasons: (i) provision for Allowance for Doubtful Account for expired
credits of Amazonas Distribuidora in the amount of R$ 48.1
million.
|
DFR -
Investor Relations Superintendence
Marketletter - Annex II -
1Q20
Financial Information of the
Subsidiaries
|
Financial Income - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Financial Income
|
26,160
|
3,626
|
621.5
|
|
|
Income from financial
investments
|
5,174
|
2,388
|
116.7
|
The variation is mainly due to: (i) income from
the investment account at Banco do Brasil referring to the natural gas
guarantee that was created in February 2019.
|
|
Monetary adjustment gain
|
0
|
1,238
|
-100.0
|
The variation is mainly due to the following
factors: (i)) Joining SAP Single Instance impacted the compiling and
accounting, in time, of the monetary update of some civil proceedings.
These updates will be released in the next quarter.
|
|
Other Financial Income
|
20,986
|
0
|
-
|
The variation is mainly due to the following
reasons: (i) refers to charges for late payment of CCVE contracts with
Amazonas Energia R$ 20 million.
|
|
Financial Expenses
|
-129,362
|
-146,620
|
-11.8
|
|
|
Debt Charges - Financing and
Loans
|
-38,497
|
-53,984
|
-28.7
|
The variation is mainly due to: (i) In 1Q20, no
new loans were contracted. 28% reduction due to debt renegotiations
(Interest and Fines) with Eletrobras carried out in 2Q19, which resulted
in charges reduction based on the CDI.
|
|
Leasing charges
|
-86,283
|
-80,847
|
6.7
|
The variation is mainly due to: (i) updating of
the leasing correction indices of contracts with PIES (Independent
Producers) (IGPM + 4%)
|
|
Monetary adjustment loss
|
-2,939
|
-11,789
|
-75.1
|
The variation is mainly due to the following
factors: (i)) Joining SAP Single Instance impacted the compiling and
accounting, in time, of the monetary update of some civil proceedings.
These updates will be released in the next quarter.
|
|
Exchange variation loss
|
-25
|
0
|
-
|
The variation is mainly due to the following
factors: (i) Exchange contracts to pay Siemens company (aiming to start
the maintenance cycle of TPP Mauá 03, scheduled for 1Q20); and (ii)
extension of the MTU contract for the maintenance of the LM6000 turbine at
TPP Aparecida.
|
|
Other Financial Expenses
|
-1,618
|
0
|
-
|
The variation is mainly due to the following
reasons: (i) payment of a fine for late submission of information from EFD
- Digital Tax Bookkeeping R$ 0.8 million; (ii) fine for late payment of
the hydrological risk R$ 100 thousand; (iii) DCTF R$ 76 thousand and (iii)
late payment of suppliers R$ 35 thousand.
|
|
Financial Result
|
-103,202
|
-142,994
|
27.8
|
|
|
|
|
|
|
|
|
Income Tax and CSLL - R$
Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Current IR and CSLL
|
-32,966
|
-55,603
|
-40.7
|
The variation is mainly due to the following
factor: (i) for 1Q19, the calculation of IFRS16 (Leasing PIE - Independent
Producers) was not considered.
|
DFR - Investor Relations Superintendence
Marketletter - Annex II - 1Q20
Financial Information of the Subsidiaries
|
ELETROPAR
|
|
|
|
Result Analysis
|
|
|
|
|
|
|
|
The Company had, in 1Q20, an income 977% higher than that ascertained in 1Q19, changing from a loss of R$ 2,957 thousand in 1Q19 to a profit of RS 25,937 thousand in 1Q20, mainly due to the reasons described below.
|
|
|
|
Operating Costs and Expenses
|
|
|
|
Operating Expenses and Costs had, in 1Q20, a decrease by 675.9% compared to 1Q19, changing from negative R$ 3,840 thousand to positive R$ 22,115 thousand of expenses, with the variations listed below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Revenue - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Other Incomes
|
5
|
8
|
-37.5
|
The variation is mainly due to the following factors: (i) recovery of expenses related to labor resources occurred in 1Q19, which did not occur in 1Q20; (ii) in 1Q20, the amount corresponds to Eletropar's remuneration on the Eletronet business.
|
|
ROL
|
5
|
8
|
-37.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PMSO - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Personnel
|
-784
|
-806
|
-2.7
|
The variation is mainly due to: (i) a 3.55% increase via collective labor agreement which were partially offset by (ii) a reduction in personnel expenses of R$ 100 thousand, due to the return of an employee, that used to work at Eletrobras, to his company.
|
|
Supplies
|
-2
|
-2
|
0.0
|
Without variation between periods compared.
|
|
Services
|
-236
|
-338
|
-30.2
|
The variation is mainly due to: (i) hiring of consulting companies in the amount of R$ 50 thousand in 1Q19, which did not occur in 1Q20; (ii) payment to Bovespa related to the AGE remote voting ballot service (R$ 15 thousand) in 1Q19; (iii) expenses with the conferencecall for shareholders' meeting (R$ 8 thousand) in 1Q19; and (iv) higher expenses in 1Q19 with contracts for outsourced services, since there were 6 outsourced services and as of April/19 it decreased to 5.
|
|
Other
|
-189
|
-179
|
5.6
|
|
|
Other Operating Expenses
|
-189
|
-179
|
5.6
|
The variation is mainly due to the following reason: (i) increase in rent expenses, due to the transfer of Eletropar's headquarters, increasing from R$ 14 thousand to R$ 20 thousand.
|
|
TOTAL PMSO
|
-1,211
|
-1,325
|
-8.6
|
|
|
|
|
|
|
|
|
Operating Costs - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Depreciation and Amortization
|
-1
|
-6
|
-83.3
|
The variation is mainly due to the following reason: (i) total depreciation of some assets.
|
|
TOTAL OPERATING COSTS
|
-1
|
-6
|
-83.3
|
|
|
|
|
|
|
|
|
Operating Provisions - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
|
23,327
|
-2,509
|
-1029.7
|
The variation is mainly due to the following reasons: (i) provision for doubtful accounts receivable from Eletronet, referring to March/2020 in the amount of R$ 1.4 million, while in 1Q19, the provision related to the first 3 months of 2019 (not only March); (ii) reversal of ADA of the Revenue on the assignment of the right to use the infrastructure for the electricity and optical fiber transmission system - RoW of Dec/19 (R$ 800 thousand) paid in January/2020; (iii) reversal of losses with Eletronet incurred between 2017 and 2019 (R$ 24 million), due to the renewal of contracts (ECE 1165 and 1166/99). In the renewal of the contracts, Eletropar's solidarity over Eletronet's debt was excluded. Thus, the amount of accounts payable to assignors, and not yet received by Eletronet, was fully reversed, which generated a gain, with expense recovery.
|
|
|
|
|
|
|
|
Financial Result - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Financial Income
|
1,307
|
1,599
|
-18.3
|
|
|
Income from financial investments
|
1,306
|
1,596
|
-18.2
|
The variation is mainly due to: (i) reduction in the amount invested in Investment Funds to pay dividends (R$ 24 million). The amount invested in 2019 was R$ 104 million, while in 2020 it is R$ 87 million.
|
|
Other Financial Income
|
1
|
3
|
-66.7
|
The variation is mainly due to: (i) revenue in 1Q19 was related to the monetary correction on the return of R$ 8 thousand from the labor lawsuit (R$ 1 thousand), in addition to the financial discount obtained on the payment to Bovespa (R$ 1,000); (ii) In 1Q20, the amounts refer to the Selic adjustment of tax credits (R$ 0.6 thousand) and discount on the payment to Bovespa (R$ 0.4 thousand).
|
|
Financial Expenses
|
-315
|
-174
|
81.0
|
|
|
Other Financial Expenses
|
-315
|
-174
|
81.0
|
The variation is mainly due to the following reasons: (i) the amounts received from Eletronet and not transferred to the assignors, are invested in investment funds. The gains calculated on these amounts are recognized as financial income, but are also recorded in financial expenses. The transfer to the assignors must contemplate the gains. In 1Q19, the amount invested was R$ 9 million, in 1Q20 the amount was R$ 18 million. The financial expense in 1Q19 was R$ 143 thousand, related to the Eletronet business, in 1Q20, it was R$ 270 thousand; (ii) in addition to these financial expenses, in 1Q20 interest and fines were paid on the payment of taxes in the amount of R$ 44 thousand, against R$ 30 thousand in 1Q19.
|
|
Financial Result
|
992
|
1,425
|
-30.4
|
|
|
|
|
|
|
|
|
Equity Interests (Equity) - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Equity Interests
|
2,825
|
-521
|
642.2
|
The variation is mainly due to the following reasons: (i) in 1Q19, a loss was recognized with the equivalence of CTEEP of R$ 688 thousand while gains with the equivalence of EMAE, of R$ 177 thousand. In the 1st quarter/20, there were gains with CTEEP (R$ 2.3 million) and R$ 105 thousand with EMAE.
|
|
|
|
|
|
|
|
Income Tax (IR) and Social Contribution on Net Income (CCSL) - R$ Thousand
|
1Q20
|
1Q19
|
Variation (%)
|
Analysis
|
|
Current IR and CSLL
|
0
|
-29
|
-100.0
|
The variation is mainly due to the following factor: (i) there was no calculation of tax profit in 1Q20.
|
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS
|
|
|
|
|
|
By:
|
/S/ Elvira Baracuhy Cavalcanti Presta
|
|
|
|
Elvira Baracuhy Cavalcanti Presta
CFO and Investor Relations Officer
|
|
FORWARD-LOOKING STATEMENTS
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.
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