I.1 MAIN VARIATIONS OF FINANCIAL STATEMENTS
HIGHLIGHTS IN ANALYSIS OF VARIATION 1Q19X1Q20
OPERATING INCOME
TABLE 04: GENERATION REVENUE
Operating Revenue - Generation
|
1Q20
|
1Q19
|
%
|
|
|
|
|
Energy supply to distribution companies
|
4,005
|
3,798
|
5%
|
Supply
|
673
|
561
|
20%
|
CCEE
|
350
|
365
|
-4%
|
Operation and Maintenance Revenue
|
930
|
841
|
11%
|
Construction Revenue
|
8
|
4
|
132%
|
Itaipu Transfer
|
-17
|
54
|
-132%
|
Generation Revenue
|
5,949
|
5,622
|
6%
|
Non-recurring events
|
|
|
|
(-)Construction Generation / GAG Retroactive 1Q19
|
-8
|
-4
|
132%
|
Recurring Generation Revenue
|
|
|
|
1Q19X1Q20 Variation Analysis
Energy supply to distribution companies
· At the subsidiary Eletronorte (+ R$ 311 million) (i) a 398% increase in sales to traders (1Q19: 329 MWmed x 1Q20: 1,639 MWmed); (ii) 9% increase in the prices of contracts entered into 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 revenue due to the termination of two products, 13th Auction - 2014/2019 and 17th Auction - 2018/2019, reducing 72.35% in the amount of energy sold ( 1Q19: 485 MWmed x 1Q20: 134 MWmed); and (iv) a 26.18% reduction in the average price in the ACR (1Q19: R$ 237.08 / MWh x 1Q20: R$ 175 / MWh);
· At the subsidiary Eletronuclear (+ R$ 66 million), mainly due to (i) the 9.30% increase in the Fixed Revenue of the Angra 1 and 2 Mills according to ANEEL Homologatory Resolution 2,661 / 2019, which represents R$ 79, 2 million positive effect in the quarter offset by (ii) the R$ 13.4 million estimated excess energy portion recognized in 1Q19 without a counterpart in 1Q20;
· At subsidiary CGT Eletrosul (+ R$ 53 million): (i) variation in prices in the regulated market was due to a contractual readjustment by the IPCA and, mainly, due to the reimbursement for generation failure in 1Q19 in the amount of R$ 81 million , given the overhaul at UTE Candiota, which in 2020, the reimbursement is approximately R$ 7 million
· Partially compensated by the reduction in subsidiary Furnas (-R$ 166 million), mainly due to: (i) In the ACR, the termination of the 2014-2019 Existing Energy Product resulted in a net drop in revenue of approximately R$ 192 million, seen an average contracted quantity in 1Q19 of 334MWméd; and (ii) Lower sales of energy in the ACL, representing a decrease of R$ 33 million, partially offset by (iii) Seasonalization and price readjustment (on average of 4%) of quantity contracts, representing an increase in revenue in the order of R$ 10 million; and (iv) Higher dispatch from the Santa Cruz plant in 2020, increasing revenue by R$ 31 million. It is worth mentioning that the increase in sales in the "Supply" category explained below leads to a drop in revenue in the "Supply" item, given the lower availability of energy to be traded in the ACL-Supply.
MARKETLETTER 1Q2020
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7
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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
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|
· At the subsidiary Amazonas GT (-R$ 66 million), mainly due to: (i) generation of UTE Aparecida, which decreased by 64% due to the migration of the CCVEE contract (exclusive with Amazonas Distribuição de Energia), with average price of R$ 591.00 / MWh, for CCEAR (regulated environment) presenting a lower average price, in the amount of R$ 248.5 / MWh, with a consequent reduction in revenue by 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, with a view to the optimal use of natural gas thermoelectric plants connected to the Coari - Manaus gas pipeline, whose fuel contract establishes the end of supply in Nov / 2030, and Provisional Measure 855/18 granted Amazonas GT the alternative to change the contractual profile, leaving CCVEE, which ended in Jul/2020, to CCEAR whose deadline is concatenated to that of the natural gas contract (Nov/2030). This amendment was made during the term of the aforementioned MP, 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 UTE Mauá 3 under LEN A-5/2014; (ii) UHE Balbina contract, which decreased by 40.9%, 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. .
Supply
· At the subsidiary Furnas (+ R$ 110 million), mainly due to the following reasons: (i) New contracts at the ACL that started in 2020, positively impacted revenue by R$ 103 million; and (ii) price adjustment of the contracts in force at the Itumbiara Plant auctions, governed by Law 13,182 / 2015, specific to final consumers, resulting in an increase in revenue of approximately R$ 7 million.
CCEE
· At subsidiary Furnas (-R$ 36 million), mainly due to (i) variation in 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 MCP) and less energy allocated in 2020 (and consequent lower settlement in MCP). In addition, the average PLD dropped 34% (1Q19 was R$ 285.04 while in 1Q20 it was R$ 188.63).
· At subsidiary CGT Eletrosul (-R$ 33 million), mainly due to (i) the PLD submarket in the 1Q20 was 25% lower than in the 1Q19; (ii) in 2019, there was greater revenue of secondary energy by the hydroelectric plants participating in the Energy Reallocation Mechanism (MRE) as a result of the seasonalization strategy adopted; and (iii) in 1Q19 the GSF was positive, with an average of 149%, while in 2020 the average was 105%.
· Partially offset by subsidiary Chesf (+ R$ 45 million, mainly due to the following reason: (i) problem occurred at an industrial consumer's plant in the state of Alagoas, from May/2019 to March / 2020, and increased energy purchased at around 130 average MW (ex-post purchase contracts accumulated from January to March/2020), whose energy was settled at CCEE, at an average price of around R$ 159 / MWh.
Operation and Maintenance Revenue - Plants Renovated by Law 12.783/2013
· At subsidiary Chesf (+ R$ 58 million), mainly due to (i) RAG's annual readjustment of around 9%, according to Aneel Homologatory Resolution No. 2587/2019 (2019-2020 cycle); (ii) increase in the generation of quota plants in this period (2,558 average MW against 2,025 average MW in 2019), impacting the revenue destined to the reimbursement of CFURH.
· At subsidiary Furnas (+ R$ 34 million), mainly due to (i) RAG's annual readjustment of approximately 11%, according to Aneel Homologatory Resolution No. 2587/2019, representing an increase of revenue of R$ 28 million in 1Q20 and ( ii) the variation of CFURH and, consequently, of PIS / COFINS, which represented an increase of R$ 6 million in revenue.
Construction Revenue
· Higher level of investment made in 1Q20, but with no effect on results as it has an equivalent value in construction expenses.
Transfer Itaipu
· Variation of the tariff on which the monetary restatement calculated based on the American price indices Commercial Price and Industrial goods, which had a negative variation and offset the exchange variation gains on the financial asset of Itaipu recognized by the interministerial decree 04/2018 MME and Ministry of Finance that determines Itaipu's revenue.
MARKETLETTER 1Q2020
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8
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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
TABLE 05: TRANSMISSION REVENUE
Operating Transmission Revenue
|
1Q20
|
1Q19
|
%
|
|
|
|
|
O&M Revenue - Renewed Lines
|
827
|
643
|
29%
|
O&M Revenue - Regime Exploration
|
207
|
197
|
5%
|
Construction Revenue
|
144
|
112
|
29%
|
Finance - Return on Investment - RBSE
|
1,016
|
927
|
10%
|
Contractual Revenue - Transmission
|
200
|
196
|
2%
|
Recurring Transmission Operating Revenue
|
|
|
|
O&M Revenue - Renewed Lines Law 12.783/13
· RAP ratified for the 2019/2020 cycle (Homologatory Resolution 2565/19) referring to the 2019-2020 tariff cycle, with an impact of R$ 22 million in Furnas, R $ 20 million in Eletronorte and R$ 5 million in CGT Eletrosul;
· At CGT Eletrosul (+ R$ 7.6 million) of new works for the period and at Subsidiary Furnas (+ R$ 9 million) for the replacement of 2 Series Capacitor Banks at SE Samambaia (in the amount of R$ 3 million/month) and all the physical fitness necessary for the start-up of both.
· Partially offset by Chesf (-R$ 49 million), mainly due to: (i) falls in items related to the revenue of Provisional Measure nº 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: prepayment of revenue, PV (R$ 4 million) and adjustment installment. The other effects can be attributed to the determination by IFRS15 of the undertakings associated with authoritative resolutions of CC 061/2001 and the projection of the new revenue flow in accordance with the approval resolution published in July / 2019. Despite the fall in the corporate balance sheet, the regulatory RAP grew 4.72% between the periods mentioned, generating an increase of approximately R$ 37 million.
· Variation of the elimination effect between quarters, in the consolidated, of operations between group companies of approximately R$ 162 million.
O&M Revenue - Exploration Regime
· In the subsidiary Chesf (+ R$ 12 million), mainly due to: (i) annual adjustment of RAP - Annual Permitted Revenue (7.64%), according to Aneel Resolution No. 2,565 / 19 with emphasis on the growth related to the entry in operation of new transmission undertakings during 2019 and the effects of the application of IFRS 15 on non-renewed contracts; (ii) entry into the commercial operation of new works; (iii) R $ 70 million from the incorporation of RAP energizing new ventures without a counterpart in 2019. The regulatory RAP grew 51% between the periods mentioned, generating an increase of approximately R$ 32 million.
Construction Revenue
· The variation is mainly due to the higher volume of investments compared to the previous year, especially Chesf (+ R$ 45 million) and CGT Eletrosul (+ R$ 45 million), partially offset by the reduction in Furnas (-R$ 47 million);
RBSE - Lines renewed by Law 12.783/13
· variation of the rate applied between the compared period (in 2019 NTN-B 4.10% and in 2020 WACC 6.64%) for measuring RBSE's financial assets;
· Increase in the RBSE rap billed due to 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, with the increase in Furnas in the order of R$ 20 million.
· Given the accounting effects on the treatment of RBSE, to verify the amount actually received by the Company, see Table 21 of this Report.
MARKETLETTER 1Q2020
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9
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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
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Contractual Revenue – Transmission
· At the subsidiary Furnas (+ R$ 14 million) due to the CT 062.2001 contract, RBNI, according to IFRS 15. There was an expansion of R$ 326 million in the asset base between quarters.
· In the subsidiary Chesf (+ R$ 10 million) mainly due to the: (i) higher registration of the remuneration on the financial asset due to the entry of new projects during the year of 2019, with emphasis on authorizations from the contract 61. There are authoritative resolutions linked to this contract although it is O&M.
· Partially offset by the result of subsidiary CGT Eletrosul (-R$ 22 million), mainly due to the positive adjustment of R$ 19.3 million in 1Q19, reflecting the remeasurement of the balance of contractual assets of the subsidiary TSBE (due to the CPC 47 - IFRS 15). Excluding the adjustment amount occurred only in 1Q19, the variation would be negative by R$ 2.7 million, mainly reflecting the amortization of contractual assets over the period.
TABLE 06: OTHER OPERATING REVENUE
Operating Income
|
1Q20
|
1Q19
|
%
|
|
|
|
|
Non-recurring events
|
|
|
|
Procel retroactive chargeback
|
0
|
-92
|
100%
|
|
|
|
|
Others Revenues
· Holding (-R$ 102 million), mainly due to the recognition of the retroactive amount of R$ 92 million in 1Q19, considered as non-recurring;
· At subsidiary CGT Eletrosul (-R$ 5 million) due to the impoundment of billing for Service Provision and Telecommunications (SCM) contracts in 1Q20, as a result of the incorporation of Eletrosul by CGTEE, which resulted in the CGT Eletrosul Company, being needed the registration of the new company before the competent bodies, which prevented the normal billing course. The amount not billed in 1Q20 for contracts is R$ 4.8 million.
OPERATIONAL COSTS
TABLE 07: OPERATIONAL COSTS
Operational costs
|
1Q20
|
1Q19
|
%
|
Energy purchased for resale
|
-646
|
-435
|
49%
|
Charges on use of the electricity grid
|
-446
|
-210
|
113%
|
Fuel for production electric power
|
-468
|
-530
|
-12%
|
Construction
|
-190
|
-115
|
65%
|
|
|
|
|
|
|
|
|
(-) Generation Construction
|
8
|
4
|
132%
|
Total Recurring Operating Costs
|
|
|
|
1Q19X1Q20 Variation Analysis
Energy purchased for resale
· In the subsidiary Furnas (+ R$ 219 million), mainly due to: (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 provided for 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, to reduce the negative exposure in the MCP, since there is a possibility to take
advantage of the negative goodwill of the existing market in bilateral short-term operations, as well as the tax benefit in view of the settlement at CCEE; (iv) increase in the amounts settled as a debt in the MCP in 2020, which resulted in approximately R$ 81 million of variation in this item, mainly due to the GSF (149% 1Q19 x 106% 1Q20).
MARKETLETTER 1Q2020
|
10
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
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|
· At subsidiary Chesf (+ R$ 43 million), mainly due to: (i) increase in energy purchased by around 130 average MW (accumulated in March/2020), whose energy was settled at CCEE); and (ii) 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 average MW, 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 sale price of R$ 206/MWh in the same period; and (iii) 4.3% readjustment in purchase contracts (IPCA).
· Partially offset by subsidiary Eletronorte (-R$ 47 million), mainly due to: (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), which did not happen in 1Q20; offset by (iii) the purchase of energy from Sinop in 1Q20 in the amount of R$ 2.1 million.
Charges on use of the electricity grid
· Variation in the elimination effect between quarters, in the consolidated, of operations between group companies of approximately R $ 162 million;
· Readjustment of about 9% of TUST, determined by ANEEL Homologatory Resolution No. 2586/2019 (cycle 2019-2020).
Fuel for electricity production
· At the subsidiary Amazonas GT (-R$ 162 million), mainly due to: (i) the price of natural gas practiced in the first two months of 2019 was above ANEEL's regulation, which was corrected in March / 2019, when the contract was definitively transferred to Amazonas GT (R$ 1.7/m³ to R$ 1.2/m3) resulting in savings of R$ 74 million in 1Q20; (ii) rental outlets that occurred in Jun/19, which represent a reducing impact of R$ 62 million in the fuel portion for 1Q20; (iii) reduction of natural gas consumption by UTE 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, and, as the PLD of system in 1Q20 was below the plant's CVU, it operated in view of inflexibility only; and (iv) the launch in 1Q19 of approximately R$ 64 million in the “Other Operating Expenses” account, as a recovery of gas expenses via CCC credits, and in 1Q20 these subsidies started to be accounted as reducers of the fuel account . If this value of CCC were also a fuel reducer in 1Q19, there would be a reduction in the reimbursement of CCC, in the order of R$ 38 million, between the quarters, justified by the non-revenue of expense recovery via system charges that stopped being received with the departure of the rental companies (Usina de Flores, São José, Iranduba) occurred in Jun/19.
· Compensated by subsidiary Furnas (+ R$ 96 million), mainly due to: (i) variation in the dispatch of the Santa Cruz plant, which in 1Q19 generated a generation of 259,032MWh and in the same period of 2020 a generation of 624,703 MWh, representing an increase of approximately 366,000 MWh.
Construction
· Chesf (+ R$ 40 million), due to higher investments in the transmission system between the compared dates;
· In Furnas (+ R$ 30 million), mainly due to (i) an increase of R$ 50 million in investments in improvements to contract 062; offset by (ii) write-off, in the amount of R$ 26 million, in contract 006/2010 - Mascarenhas-Linhares (due to accounting reclassifications); and (iii) other investments in improvements in several contracts.
MARKETLETTER 1Q2020
|
11
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
OPERATIONAL EXPENSES
TABLE 08: PERSONNEL, MATERIAL, SERVICES AND OTHER
Personnel, Material, Services and Others
|
1Q20
|
1Q19
|
%
|
Personnel
|
-1,127
|
-1,356
|
-17%
|
Material
|
-102
|
-30
|
235%
|
Services
|
-467
|
-437
|
7%
|
Others
|
-449
|
-223
|
101%
|
|
|
|
|
|
|
|
|
(-) PDC
|
-4
|
170
|
-102%
|
(-) Outsourced Furnas
|
25
|
0
|
-
|
(-) Inepar / Camargo Correa Case / CIEN
|
133
|
0
|
-
|
(-) FGTS and INSS at Eletronorte - April launch
|
22,6
|
0
|
-
|
(-) Independent Research
|
0
|
13
|
-100%
|
|
|
|
|
1Q19X1Q20 Variation Analysis
Personnel
· Reduction in personnel costs due to the cost containment policy established by the Company, with PDC, dangerousness and overtime;
· Non-recurring expenses with PDC of R$ 170 million in 1Q19 against R$ 4 million in 1Q20, as there is no plan planned for 2020.
· In contrast to the cost reductions, there was: (a) increase of 3.55% granted to employees through ACT as of 10/2019, with retroactive effects to 05/2019, and an additional of about 1% per time service, with an impact of R$ 54 million; (ii) Stoppage for maintenance of Angra 1 in 1Q20, causing an increase in overtime, and in 1Q19 there was no stoppage for maintenance (+ R$ 6.9 million, plus R$ 4.8 million in charges); (iii) non-appropriation of investment expenses in the amount of R$ 31 million, with emphasis on Angra 3 (due to the stoppage of the Angra 3 project), Chesf and CGTEletrosul; (iv) provision of R$ 34 million related to vacations recorded in different quarters;
· In subsidiary Furnas, readmission, by justice, as employees, of 101 outsourced employees terminated, with an average monthly cost of R$ 0.8 million/month (April basis).
· Accounting for R$ 22 million in FGTS and INSS at Eletronorte not referring to 1Q20 (to be adjusted in the subsequent quarter).
Material
· At CGT Eletrosul (+ R$ 29 million), due to: (i) there was no lime consumption in 2019 due to the overhaul stop at the Candiota Phase C plant, while in 1Q20, the plant was in operation. The accumulated value attributed to Cal Viva in 1Q20 was R$ 29.3 million;
· At the subsidiary Amazonas GT (+ R$ 24 million), mainly due to: (i) large maintenance of UTE Mauá 3 of R$ 20 million, for maintenance of the turbines of the generating units 10 and 11 of Mauá 03;
· At the subsidiary Eletronuclear (+ R$ 22 million), mainly due to: (i) the 1P25 maintenance stop at Angra 1, which did not occur in 1Q20, generating, in addition to the increase in the usual maintenance stop costs and exchange of nuclear fuel, an additional cost due to a short circuit in the connection of the excitratriz with the electric generator. The plant was stopped in the programmed period from 11/01/2020 until 02/14/2020, and beyond the programmed time, for another 26 days (from 02/15/2020 to 03/12/2020). Altogether, Angra 1 was stopped for 61 days during 1Q20. The cost of repairing the exciter was borne by the manufacturer.
MARKETLETTER 1Q2020
|
12
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
Services
· At subsidiary Eletronuclear (+ R$ 41 million), mainly due to: (i) an increase of R$ 38.8 million related to stop 1P25 - Angra 1;
· At subsidiary Eletronorte (+ R$ 12.6 million) due to expenses with meal ticket and health plan administration fee having been recorded in 1Q19 in Personnel, which did not occur in 1Q20 due to standardization by SAP;
· Compensated by subsidiary Furnas (-R$ 24 million), mainly due to: (i) reduction in contracted labor (R$ 13 million); (b) Assistance Fundação Real Grandeza (reduction of R$ 4 million), by renegotiating the management fee with the foundation at R$ 16 million per year; and (c) Accommodation (R$ 1.5 million).
Others
· At subsidiary Furnas (+ R$ 127 million), mainly due to: (i) an increase in the indemnities, losses and damages account in the amount of R$ 111 million, of which R$ 98 million refers to the settlement of the lawsuit Camargo Correa in March 20 and the remainder refers to the launch of 3 installments of the agreement between Furnas and Inepar, totaling approximately R$ 14 million; (ii) there was an increase of R$ 21 million in court costs, highlighting the attorney fees paid, partially offset by (iii) a R$ 5.17 million reduction in rentals due mainly to the return of Block C and consequent payment only for blocks A and B in Brasília; and (iv) Reduction of R$ 5.96 million in the Hydrological Risk Insurance - GSF account due to the end of the amortization of the GSF insurance in Serra da Mesa and Mascarenhas; and (iv) a reduction of R$ 2.22 million in Taxes and Fees, 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.
· At the Holding (+ R$ 39 million) mainly due to an increase in legal expenses (+ R$ 29 million) and Fines (+ R$ 11 million);
· At subsidiary Amazonas GT (+ R$ 72 million), due to (i) reclassification of CCC recovery credits to be classified in 1Q20 as a reduction in the fuel account, while in 1Q19 they are classified as a reduction in other accounts; and
· At the subsidiary Eletronorte (+ R $ 13 million) with emphasis on (i) an increase in the insurance account, in the amount of R$ 9.9 million (an increase of R$ 7.5 million in insurance for facilities, equipment and inventories); (ii) increase of R$ 5.6 million with judicial guarantee insurance; and (iii) a reduction of R$ 3.2 million with hydrological risk ended in 2019 offset by (iv) an increase of R$ 4.7 million related to the recovery of expenses.
Depreciation and Amortization
Depreciation and Amortization
|
1Q20
|
1Q19
|
%
|
Depreciation and Amortization
|
-469
|
-428
|
10%
|
MARKETLETTER 1Q2020
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13
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
TablE 09: OPERATING PROVISIONS
Operating Provisions
|
1Q20
|
1Q19
|
%
|
Operational provisions / reversals
|
-447
|
-523
|
-15%
|
|
|
|
|
Non-recurring provisions / reversals
|
|
|
|
(-) Contingencies
|
18
|
-293
|
-106%
|
(-) PCLD/ Estimated loss of credit prospective privatized distributors (CPC 48)
|
-146
|
0
|
-
|
(-) Onerous Contracts
|
0
|
94
|
-100%
|
(-) Provision/reversal for investment losses
|
-116
|
35
|
-433%
|
(-) ANEEL provision - CCC
|
-7
|
-65
|
-89%
|
Non-recurring provisions / reversals
|
|
|
|
|
|
|
|
Recurring provisions / reversals
|
|
|
|
Garanties
|
-7
|
12
|
-161%
|
PCLD (excluding PCLD prospective credit loss estimate CPC 48)
|
-116
|
-190
|
-39%
|
Others
|
-73
|
-115
|
-36%
|
Recurring provisions / reversals
|
|
|
|
Note: Numbers with positive signs mean reversals of provision.
The variation is mainly explained by:
· Reduction in provisions for contingencies, mainly due to the reversal of the provision related to the Compulsory Loan processes in the amount of R$ 144 million;
· Allowance for loan losses of R$ 261 million in 1Q20, of which R$ 146 million related to the assessment of prospective risk expectations according of CPC 48 applied to loans from privatized distributors and considered non-recurring.
SHAREHOLDINGS
TABLE 10: SHAREHOLDINGS
Shareholdings
|
1Q20
|
1Q19
|
%
|
|
|
|
|
Variation
Shareholdings
· The main highlights were: (i) improvement in the SPE IE Madeira equivalence result, due to a positive variation of 41% in the contractual assets, due to the increase in revenue due to the parallelism solution between the Maideira bipoles and an increase in the reversal of provision and reduction of interest on financing with BNDES due to the reduction in TJLP (+ R$ 51 million); (iii) improvement in the positive result of SPE SINOP (+ R$ 30 million), due to the improvement in the results of energy sales, which were partially offset by (iv) negative variation in the result of SPE NESA, mainly caused by the increase expenses due to the increase in energy sales costs and the increase in operating costs (-R$ 49 million);
MARKETLETTER 1Q2020
|
14
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
FINANCIAL RESULT
TABLE 11: FINANCIAL INCOME AND EXPENSES
Financial Result
|
1Q20
|
1Q19
|
%
|
|
|
|
|
Interest, commission and fee income
|
227
|
246
|
-8%
|
Income from financial investments
|
558
|
125
|
345%
|
Additional moratorium on electricity
|
55
|
61
|
-10%
|
Active monetary updates
|
178
|
261
|
-32%
|
Exchange rate variations
|
3,303
|
886
|
273%
|
Fair value adjustment
|
0
|
239
|
-100%
|
Derivative gains
|
0
|
0
|
-
|
Other Financial Income
|
119
|
124
|
-4%
|
|
|
|
|
Debt charges
|
-1,039
|
-694
|
50%
|
Leasing charges
|
-93
|
-85
|
10%
|
Charges on shareholder resources
|
-46
|
-93
|
-50%
|
Passive monetary updates
|
-128
|
-137
|
-7%
|
Passive exchange variations
|
-3,905
|
-824
|
374%
|
Fair value adjustment
|
-337
|
-166
|
103%
|
Derivative losses
|
-119
|
-18
|
550%
|
Other financial expenses
|
-280
|
-262
|
7%
|
|
|
|
|
Non-recurring adjustments
|
|
|
|
(-) Revenue from loans owed by privatized distributors
|
-113
|
-195
|
-42%
|
(-)2021 Title Rollover Award + FIDC Commission 2021
|
298
|
0
|
-
|
(-) Monetary adjustment (Selic) of the provision for compulsory loans
|
87
|
128
|
-32%
|
Recurring Financial Result
|
|
|
|
FINANCIAL RESULT
In 1Q20, the financial result decreased, from a negative result of R$ 336 million in 1Q19 to a negative result of R$ 1,509 million in 1Q20. The main variations were in the accounts of:
· Exchange variation: the net result of the active and passive exchange variation accounts went from a positive result of R$ 62 million in 1Q19 to a negative result of R$ 602 million in 1Q20, due to exchange rate fluctuation in the period, influenced by the effects of the Covid 19 pandemic;
· Adjustment to fair value of RBSE revenue in the positive net amount of R$ 73 million in 1Q19, having presented a financial expense of R$ 337 million in 1Q20. The variation of R$ 411 million results from the remeasurement, in December 2019, of the RBSE asset and the change in the discount rate of the portion of RBSE's remuneration from NTNB to the regulatory WACC of 6.64%. The rate used in the months of January and February 2019 was similar to the NTN-B of 4.6% and in March 2019 it was the NTN-B of 4.10%.
· Revenue from financial investments: the increase in revenue results mainly from the increase in the balance of financial investments in non-market investment funds. The increase is due, in particular, to the capital increase that occurred in Dec/19, in the amount of R$ 3.6 billion and to the funding that occurred in Feb/20.
MARKETLETTER 1Q2020
|
15
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
· Debt charges: the increase refers to the payment of the premium / goodwill on the face value of the 2021 bonus in the percentage of 6% of the total securities repurchased in the tender offer operation of the bonus, in the amount of US$ 57 million. Additionally, we highlight that in the 1Q19, we had not yet contracted the debentures, which were raised in May 19, and the debts with Petrobras and BR Distribuidora subrogated by Amazonas Energia at the time of the transfer of control of the distributor.
· Fall in interest income of R$ 19 million (8%), influenced by the reduction in the rate of the indexers (Selic, CDI).
1 Considering that the privatization of the distributors was completed in April 2019, and these operations are no longer part of its core business, the company treated the relevant effects of financial income, expenses, PL reversals and prospective loan loss provisions as non-recurring. contracted with them before or as a result of the privatization process, although revenues and eventual provisions arising from contracted loans may continue to affect the company's accounting result until its complete exhaustion. However, they were treated as recurring outstanding allowance for loan losses of distributors.
MARKETLETTER 1Q2020
|
16
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
I.2 E EBITDA CONSOLIDATED
TABLE 12: EBITDA DETAIL
EBITDA
|
1Q20
|
1Q19
|
(%)
|
Net Profit (Loss) for the Year
|
307
|
1,347
|
-77%
|
Net Tax Losses from Discontinued Operation
|
0
|
-223
|
-100%
|
Result of the Exercise
|
307
|
1,570
|
-80%
|
+ Provision for Income Tax and Social Contribution
|
517
|
617
|
-16%
|
+ Financial Result
|
1,509
|
336
|
349%
|
+ Amortization and Depreciation
|
469
|
428
|
10%
|
|
|
|
|
ADJUSTMENTS NON-RECURRING EVENTS
|
|
|
|
Other Income and Expenses
|
-25
|
-183
|
-86%
|
Retroactive: Procel
|
0
|
-92
|
-100%
|
PDC
|
-4
|
170
|
-102%
|
Termination Agreement Furnas Outsourced
|
25
|
0
|
-
|
Judicial agreements Inepar + Camargo Correa + CIEN
|
133
|
0
|
-
|
FGTS and INSS at Eletronorte - April launch
|
23
|
0
|
-
|
Investigation/SAP/ERP implementation consultancies
|
0
|
13
|
-100%
|
Contingencies
|
-18
|
293
|
-106%
|
PCLD prospective credit loss estimate (CPC 48)
|
146
|
0
|
-
|
Onerous Contracts
|
0
|
-94
|
-100%
|
Provision / (reversal) for investment losses
|
116
|
-35
|
-433%
|
ANEEL provision - CCC
|
7
|
65
|
-89%
|
|
|
|
|
Note: Since 2019, the Company started to consider, in its recurring EBITDA, the RBSE revenue from concessions extended under Law 12,783 / 2013, in order to maintain a protocol similar to the debenture covenants issued in 2019. The adjusted 1Q19 Ebitda considers this adjustment of RBSE revenue to compare recurring 1Q20 EBITDA, for comparative purposes, and also the mandatory effects of IFRS 9 and 15, as explained in 4 of our financial statements. In addition, considering the privatization of the distributors was completed in April 2019, and these operations are no longer part of its core business, the company treated the relevant effects of financial income, expenses, PL reversals and allowances for loan losses as non-recurring. prospective (CPC 48) of loans contracted with them before or as a result of the privatization process, although revenues and eventual provisions arising from contracted loans may continue to affect the company's accounting result until its complete exhaustion. However, they were treated as recurring outstanding allowance for loan losses of distributors. These recurring adjustments related to the distributors, adjusted the recurring EBITDA in 1Q20 by R $ 146 million.
1 The adjustments made to the recurring Ebitda refer to non-recurring events or events that are expected to be dealt with under the PDNG 2019-2023. However, there are risks and uncertainties related to the Company's business, such as, but not limited to, general economic, regulatory, political and commercial conditions in Brazil and abroad, changes in interest rates, inflation and the value of the Real, changes in volumes and pattern of use of electricity by the consumer, competitive conditions, payments related to our receivables, changes in the levels of rain and water in the reservoirs used to operate our hydroelectric dams, our financing and capital investment plans, existing and future government regulations , and other risks described in our annual report and other documents filed with the Securities and Exchange Commission and the Securities and Exchange Commission of the United States of America, which may change these estimates and expectations of Management. Thus, the future results of the Companies' operations and initiatives may differ from current expectations and the investor should not rely exclusively on the information contained herein.
MARKETLETTER 1Q2020
|
17
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
TABLE 13: 1Q19 EBITDA CONCILIATION:
EBITDA
|
1Q19
Resubmitted
|
1Q19
Reported
|
Net Profit (Loss) for the Year
|
1,347
|
1,347
|
Net Loss of Taxes from Discontinued Operation
|
-223
|
-223
|
Result of the Exercise
|
1,570
|
1,570
|
+ Provision for Income Tax and Social Contribution
|
617
|
617
|
+ Financial Result
|
336
|
322
|
+ Amortization and Depreciation
|
428
|
428
|
|
|
|
ADJUSTMENTS NON-RECURRING EVENTS
|
|
|
|
|
|
Other Income and Expenses
|
-183
|
-183
|
Retroactive: Procel
|
-92
|
-92
|
PDC
|
170
|
170
|
Furnas Termination Agreement
|
0
|
0
|
Legal agreements Inepar + Camargo Correa + CIEN
|
0
|
0
|
FGTS and INSS at Eletronorte - April launch
|
0
|
0
|
Research / SAP / ERP implementation consultancies
|
13
|
13
|
Contingencie
|
293
|
293
|
PCLD Prospective estimate of credit loss (CPC 48)
|
0
|
0
|
Onerous Contracts
|
-94
|
-94
|
Provision / (reversal) for investment losses
|
-35
|
-85
|
Provision for Losses on Investments classified as held for sale
|
0
|
50
|
ANEEL provision - CCC
|
65
|
65
|
|
|
|
MARKETLETTER 1Q2020
|
18
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
I.3 CONSOLIDATED RESULT BY SEGMENT OF CONTINUED OPERATIONS:
TablE 14: FINANCIAL STATEMENT BY SEGMENT (EXPLANATORY NOTE 44 FROM THE DF) – R$ THOUSAND
03/31/2020
|
FinacialStatement
by Segment
|
Administration
|
Generation
|
Transmission
|
Eliminations
|
Total
|
Net Operating Revenue
|
41
|
5,010
|
2,158
|
-253
|
6,956
|
Operating Costs and Expenses
|
-573
|
-3,419
|
-1,072
|
253
|
-4,811
|
Operating Income Before Financial Result
|
-533
|
1,591
|
1,086
|
0
|
2,144
|
Financial Result
|
-266
|
-673
|
-570
|
0
|
-1,509
|
Result of Equity Interests
|
164
|
0
|
0
|
0
|
164
|
Other income and expenses
|
25
|
0
|
0
|
0
|
25
|
Income tax and social contribution
|
0
|
-557
|
39
|
0
|
-517
|
Net income (loss) for the period
|
|
|
|
|
|
03/31/2019
|
FinacialStatement
by Segment
|
Administration
|
Generation
|
Transmission
|
Eliminations
|
Total
|
Net Operating Revenue
|
47
|
4,805
|
2,008
|
-408
|
6,452
|
Operating Costs and Expenses
|
-793
|
-2,896
|
-1,005
|
408
|
-4,286
|
Operating Income Before Financial Result
|
-746
|
1,909
|
1,002
|
-
|
2,166
|
Financial Result
|
236
|
-412
|
-146
|
-
|
-322
|
Result of Equity Interests
|
343
|
0
|
0
|
-
|
343
|
Income tax and social contribution
|
-159
|
-434
|
-25
|
-
|
-617
|
Net income (loss) for the period
|
|
|
|
|
|
MARKETLETTER 1Q2020
|
19
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
I.3.1. INDEBTEDNESS AND RECEIVABLES
TABLE 15: GROSS DEBT AND NET DEBT
|
03/31/2020
|
|
|
(-) Transfer RGR to CCEE1
|
1,084
|
|
|
(-) (Cash and cash equivalents + marketable securities)
|
12,254
|
(-) Financing Receivable
|
14,893
|
(+) RGR to receive RGR transfer to CCEE
|
1,084
|
(-) Net balance of Itaipu Financial Assets
|
2,370
|
|
|
1 See Notes 9.1 and 19 (third party debts, Eletrobras being a mere manager).
TABLE 16: FINANCING PORTFOLIO PAYABLE
|
Parent Company
|
|
Consolidated
|
03.31.2020
|
|
03.31.2019
|
|
03.31.2020
|
|
03.31.2019
|
Balance in R$ million
|
%
|
|
Balance in R$ million
|
%
|
|
Balance in R$ million
|
%
|
|
Balance in R$ million
|
%
|
Foreign currency
|
|
|
|
|
|
|
|
|
|
|
|
USD
|
10,216
|
38%
|
|
7,572
|
27%
|
|
10,599
|
24%
|
|
7,572
|
18%
|
USD with Libor
|
516
|
2%
|
|
434
|
2%
|
|
990
|
2%
|
|
799
|
2%
|
EURO
|
299
|
1%
|
|
235
|
1%
|
|
299
|
1%
|
|
235
|
1%
|
IENE
|
0
|
0%
|
|
0
|
0%
|
|
0
|
0%
|
|
0
|
0%
|
Others
|
0
|
0%
|
|
0
|
0%
|
|
0
|
0%
|
|
0
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic currency
|
|
|
|
|
|
|
|
|
|
|
|
CDI
|
3,578
|
13%
|
|
4,033
|
14%
|
|
8,040
|
18%
|
|
8,698
|
21%
|
IPCA
|
0
|
0%
|
|
0
|
0%
|
|
73
|
0%
|
|
73
|
0%
|
TJLP
|
0
|
0%
|
|
0
|
0%
|
|
6,135
|
14%
|
|
6,233
|
15%
|
SELIC
|
8,237
|
0%
|
|
11,687
|
0%
|
|
8,254
|
19%
|
|
8,595
|
20%
|
Others
|
690
|
0%
|
|
714
|
0%
|
|
1,888
|
4%
|
|
2,465
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Not indexed
|
3,543
|
13%
|
|
3,599
|
13%
|
|
7,467
|
17%
|
|
7,269
|
17%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARKETLETTER 1Q2020
|
20
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
TABLE 17: DEBT MATURITY SCHEDULE, EXCLUDING RGR DUE TO THIRD PARTIES (FOR WHICH ELETROBRAS IS A MERGE MANAGER) AND INCLUDING HOLDING AND SUBSIDIARIES 'DEBENTURES:
|
2020
|
2021
|
2022
|
2023
|
2024
|
2025
|
After 2025
|
Total (R$ million)
|
Amortization with Debentures and RGR
|
6,424
|
9,451
|
6,447
|
4,237
|
5,737
|
3,964
|
14,305
|
50,564
|
|
|
|
|
|
|
|
|
|
Consolidated Annual Amortization (With debentures)
|
6,164
|
9,331
|
6,414
|
4,218
|
5,730
|
3,961
|
13,663
|
49,480
|
Ratings
TabLE 18: Ratings
Agency
|
National Classification / Perspective
|
Last Report
|
Moody’s BCA
|
“B1”: / Positive
|
09/18/2019
|
Moody’s Senior Unsecured Debt
|
“Ba3”: / Positive
|
09/18/2019
|
Fitch - Issuer Default Ratings (Foreign Currency)
|
“BB-”: / Negative
|
05/07/2020
|
Fitch - Issuer Default Ratings (Local Currency)
|
“BB-”: / Negative
|
05/07/2020
|
S&P LT Local Currency
|
“brAAA”
|
07/04/2020
|
S&P Issuer Credit Rating
|
“BB-"/ Estable
|
07/04/2020
|
*CreditWatch
MARKETLETTER 1Q2020
|
21
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
FINANCING AND LOANS GRANTED (RECEIVABLE)
Financing and loans granted are made with the Company's own resources and external resources raised through international development agencies, financial institutions and resulting from the launch of securities in the national and international financial market.
All financing and loans granted are supported by formal contracts signed with the borrowers. Most of these amounts are received in monthly installments, amortized over an average term of 10 years, with the average interest rate, weighted by the portfolio balance, of 6.40% per year.
The parent company has a loan with Itaipu with an exchange adjustment clause that represents 45% of the total consolidated portfolio (41% on December 31, 2019). The other financings and loans provide for updating based on indexes that represent the level of domestic prices in Brazil and reach 55% of the balance of the consolidated portfolio (59% on December 31, 2019).
The parent company has a loan with Amazonas Distribuidora de Energia in the amount of R$ 3.9 billion, which substantially represents non-capitalized receivables in the process of disposal of corporate control. These contracts were renegotiated with a grace period of up to 3 years for amortization of the principal, during this grace period only interest is received. Additionally, the renegotiation considered the term that ends in January 2021, for the presentation of real guarantees that must be previously assessed and approved by Eletrobras' Management.
In addition to the aforementioned financing, Eletrobras, until April 30, 2017, was responsible for the management of the Global Reversion Reserve (RGR), a sectorial fund, having been responsible for the granting of financing, with the use of these resources, for the implementation of several sectoral programs. As of May 2017, with the enactment of Law 13,360 / 2016, CCEE took over this activity. However, there are still financing carried out before this date, due by third parties, managed by Eletrobras.
According to Decree 9.022/2017, which regulates the aforementioned law, Eletrobras is not the guarantor of these operations taken by third parties, however, it is responsible for the contractual management of financing contracts with RGR resources signed until November 17, 2016, which must be transferred to the RGR, within a period of up to five days, counted from the date of the effective payment by the debtor agent.
RGR REPASS
With the process of divesting the distributors completed, the transfer of the management of RGR resources to CCEE in accordance with Law 13.360 / 2016 and in line with Decree No. 9.022/2017, as of June 2019, the Company revised the form to present the amounts raised and transferred to third parties, with funds from RGR, in order to more adequately present the resources under Eletrobras's responsibility for those loans and financing that do not constitute Eletrobras debt and should be paid off by third parties with RGR, being Eletrobras responsible only for the contractual management of these loans. Accordingly, the amounts as of March 31, 2020 referring to receivables from loans and financing granted with funds from RGR to third parties were segregated from other receivables from Eletrobras and have equivalent liabilities (see note 18).
MARKETLETTER 1Q2020
|
22
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
TABLE 19: RECEIVABLE
R$ Thousand
|
CONSOLIDATED
|
|
03/31/2020
|
|
CURRENT
|
|
PRINCIPAL
|
|
Tx. Average
|
Valor
|
|
CURRENT
|
NON
|
CURRENT
|
ITAIPU
|
7.02
|
-
|
|
3,389,782
|
3,333,902
|
ELETROPAULO
|
6.96
|
-
|
|
-
|
1,330,665
|
CEAL
|
6.88
|
-
|
|
144,274
|
1,378,002
|
AMAZONAS D
|
6.76
|
123,296
|
|
156,086
|
3,695,144
|
CEPISA
|
4.78
|
-
|
|
293,154
|
390,427
|
BOA VISTA
|
4.98
|
13
|
|
18,975
|
136,964
|
CELPA
|
5.96
|
161
|
|
-
|
5,245
|
EQUATORIAL MARANHÃ D
|
0.23
|
-
|
|
25,245
|
61,262
|
REPASSE RGR
|
5
|
186,967
|
|
162,689
|
734,226
|
OUTRAS
|
-
|
105,269
|
|
20,811
|
600
|
(-) PCLD
|
-
|
- 243,676
|
|
- 27,948
|
- 528,653
|
Total
|
|
172,030
|
|
4,183,068
|
10,537,784
|
TABLE 20: CCC CREDITS ASSIGNED BY PRIVATIZED DISTRIBUTORS
In the privatization process of the distributors, CCC credits were assigned, which are still being analyzed and inspected by Aneel. These credits are activated in the Company's Financial Statements, of 03/31/2020, in two accounts, namely Right of Reimbursement and Financing receivable, according to Notes 8 and 11 of 1Q20, and detailed below:
Note Explanatory 11 - Right to Reimbursement
Registered Net Assets
R$ thousand
|
Amazonas
|
Ceron
|
Eletroacre
|
Boa Vista
|
Total
|
NT Aneel + Claims under analysis Aneel + "inefficiency
|
1,964,544
|
2,727,341
|
254,951
|
170,204
|
5,117,040
|
Current Rights
|
-
|
221,750
|
58,222
|
26,144
|
306,116
|
|
|
|
|
|
|
* The balance of R $ 2.0 billion from Amazonas consists of a return obligation to CCC in the order of R $ 450 million related to the final result of the inspection of the first and second period carried out by Aneel, and a credit receivable from the Treasury National economic and energy inefficiency of R $ 2.4 billion. The credit for economic and energy inefficiency is updated by Selic.
MARKETLETTER 1Q2020
|
23
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
Explanatory Note 8 - Loan and Financing
R$ thousand
R$ thousand
|
Amazonas
|
Ceron
|
Eletroacre
|
Boa Vista
|
Total
|
Conversion into Loans (b)
|
442,366
|
-
|
-
|
-
|
442,366
|
Note: The R$ 442 million credit in the table above was also a CCC credit, however current, and as it was paid by CCC to Amazonas Distribuidora, it was converted into debt of the distributor with Eletrobras.
Total Credits Granted (Note 8 + Note 11)
R$ thousand
R$ thousand
|
Amazonas
|
Ceron
|
Eletroacre
|
Boa Vista
|
Total
|
|
|
|
|
|
|
(1) Credits restated up to 03/31/20, by IPCA, based on the credit generating event, with the exception of the portion of economic-energy inefficiency (R$ 2.46 billion) assigned by Amazonas Energia and Boa Vista Energia, which are updated by SELIC.
The National Electric Energy Agency - Aneel recognized, by decision of its collegiate board, on March 10, 2020, (i) the right to receive credits from the Ceron Fuel Consumption Account, in the amount of R $ 1,904,055,165, 07 (at July 2019 prices), referring to the inspection of the benefits due in the period from July 30, 2009 to June 30, 2016, considered as the first period of the inspection process (“First Inspection Period”), credits assigned to Eletrobras on the occasion of the privatization of said distributor; and (ii) the right to receive credits from the Fuel Consumption Account - CCC to Companhia de Eletricidade do Acre (“Eletroacre”), in the amount of R $ 191,610,318.04 (at July 2019 prices), referring to the inspection of the benefits due in the period from July 30, 2009 to June 30, 2016, credits also assigned to Eletrobras on the occasion of the privatization of said distributor.
These amounts recognized by Aneel are in accordance with the amounts recorded in the Quarterly Information of March 31, 2020, for the First Inspection Period, with the existing difference attributed to the inflation adjustment by the IPCA, due to the difference in the base date considered. The other amounts assigned by Ceron and Eletroacre to Eletrobras and recorded in its Balance Sheet refer to claims that will still be submitted to Aneel's Board of Directors in the second inspection period that covers the period from July 1, 2016 to April 30, 2017 (“ Second Inspection Period ”). After the end of the second inspection period, the values of Ceron and Electroacre, when approved, should be included in the budget of the sectorial fund CDE for payment.
Aneel's Board of Directors also approved, on March 10, 2020, the obligation to return R $ 2,061,360,021.40 (at March 2019 prices), referring to the CCC's monthly inspection and reprocessing process paid to Amazonas Distribuidora de Energia SA (“Amazonas Energia”), from July 2016 to April 2017, referring to the Second Inspection Period. With this decision, Amazonas Energia had completed its entire inspection process, since Aneel's Board of Directors had already decided, on March 19, 2019, the result of the First Inspection Period for CCC reimbursements to Amazonas Energia, with the company having the right to receive a credit of approximately R $ 1,591,670,950.13 (at September 2018 prices), to be offset against credits to be returned. The net balance of Law credits assigned by Amazonas Energia Distribuidora, of R $ 1.9 billion, is equivalent to the disallowances of CCC arising from the criteria of economic and energy efficiency, a right recognized by Law 13,299 / 2016, in the historical amount of R $ 1,357,794,977.30 to be paid by the National Treasury. Eletrobras updated these values by the Selic until 03/31/2020.
Aneel has not yet completed the inspection processes for CCC's refunds for the First and Second Period of Boa Vista Energia, also assigned to Eletrobras and recorded in the Financial Statements.
Considering the manifestations of Aneel mentioned above, in 1Q20, the provisions made up to March 31, 2020 were written off definitively by the company in its Balance Sheet.
MARKETLETTER 1Q2020
|
24
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
TABLE 21: RECEIVABLE RBSE TRANSMISSION
The item of indemnifiable concessions and RBSE, in the amount of R$ 35,349,028 on March 31, 2020 refers to the assets of the facilities of the Basic Network existing on December 31, 2020 May 2000, not depreciated and that, therefore, are due to the concessionaires that renewed their concessions in the light of Law nº 12.783/2013.
The movement of assets referring to RBSE is shown below:
R$ million
|
Furnas
|
Chesf
|
Eletronorte
|
Eletrosul
|
Total
|
Balance on December 31, 2018
|
18,325
|
10,289
|
5,650
|
2,014
|
36,278
|
Updates - Financial Income
|
514
|
167
|
195
|
52
|
927
|
Measurement adjustment
|
33
|
-
|
26
|
36
|
95
|
(Receivement)
|
-767
|
-408
|
-245
|
-87
|
-1,507
|
Balance on March 31, 2019
|
18,104
|
10,048
|
5,626
|
2,014
|
35,792
|
|
Furnas
|
Chesf
|
Eletronorte
|
Eletrosul *
|
CGT Eletrosul*
|
Total
|
Balance on December 31, 2019
|
17,509
|
9,736
|
5,163
|
1,880
|
-
|
34,288
|
Incorporation
|
-
|
-
|
-
|
-1,880
|
1,880
|
-
|
Updates - Financial Income
|
548
|
214
|
199
|
-
|
55
|
1,016
|
Measurement adjustment
|
-224
|
-16
|
-84
|
-
|
-13
|
-337
|
(Receivement)
|
-840
|
-503
|
-260
|
-
|
-91
|
-1,694
|
Balance on March 31, 2020
|
16,993
|
9,430
|
5,017
|
-
|
1,832
|
33,273
|
|
|
|
|
|
|
|
Current assets
|
3,642
|
1,839
|
1,052
|
-
|
208
|
6,741
|
Non-current assets
|
13,351
|
7,591
|
3,965
|
-
|
1,624
|
26,532
|
* On January 2, 2020, the subsidiaries Eletrosul and CGTEE became part of CGT Eletrosul, according to the merger process of Eletrosul into CGTEE.
In addition to the disclosure about the amounts to be paid under the RBSE, present in the Financial Statements for the year ended December 31, 2019, the Company continues to monitor the progress of the processes and, for the purposes of this quarterly information, remains with the understanding of that as of the expiry of these injunctions, initiated in November 2019, these amounts should be recalculated in order to include the portion provided for in article 1, third paragraph, of MME Ordinance 120/2016. Considering this scenario, the Company remains with the estimate that the portion referring to Ke will be included in the next tariff cycle with revenue for the remaining period of 05 years.
The estimated cash flow considering the Company's assumptions, specified below, is shown below:
R$ million
|
2020
|
2021
|
2022
|
2023
|
2024
|
2025
|
TOTAL
|
Financial portion
|
8.0
|
3,372.6
|
3,372.6
|
3,372.6
|
3,372.6
|
1,686.3
|
17,742.8
|
“Ke” portion
|
-
|
1,259.7
|
2,519.5
|
2,519.5
|
2,519.5
|
1,259.7
|
10,077.9
|
Total Financial Portion
|
2,565.9
|
4,632.4
|
5,892.1
|
5,892.1
|
5,892.1
|
2,946.1
|
27,820.6
|
|
|
|
|
|
|
|
|
Economic Portion
|
2,272.9
|
2,981.8
|
2,981.8
|
1,907.4
|
833.1
|
416.5
|
11,393.5
|
|
|
|
|
|
|
|
|
Total
|
4,838.8
|
7,614.2
|
8,873.9
|
7,799.5
|
6,725.2
|
3,362.6
|
39,214.2
|
MARKETLETTER 1Q2020
|
25
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
Financial portion refers to the portion of remuneration (Ke) and unpaid depreciation since the extension of the concessions, on January 1, 2013 until June 30, 2017. Economic portion refers to the amounts of assets with residual values in the extension of these concessions.
Assumptions:
1) Update of the “Ke” remuneration installment as of July 2017 by the WACC regulatory of the transmission and IPCA until the measurement date;
2) Discount rate compatible with regulatory remuneration; and
3) "Ke" term considering the start of revenue / amortization from the 21/22 tariff cycle - start of revenue in June 2021 for the term of Ordinance 120, until June 2025.The table above is net of PIS / Cofins, but is not net of income tax.
Note: Net flow of PIS/Cofins.
MARKETLETTER 1Q2020
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26
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
I.4. Investiment
TABLE 22: INVESTMENTS BY SEGMENT
(R$ million)
Investiment (Corporate + Partnerships)
|
Budged
2019
|
% 2019
|
Realized
2019
|
|
|
|
|
Corporate Deployment
|
281
|
13%
|
36
|
Corporate Expansion
|
59
|
16%
|
9
|
Maintenance
|
161
|
28%
|
45
|
Expansion SPEs
|
153
|
18%
|
28
|
|
|
|
|
Corporate Deployment
|
-
|
-
|
0,03
|
Expansion and Reinforcements and Improvements
|
284
|
31%
|
89
|
Maintenance
|
69
|
86%
|
60
|
Expansion SPEs
|
55
|
46%
|
25
|
|
|
|
|
|
|
|
|
(1) Others: Research, Infrastructure, Environmental Quality
(2) For more details on investments, by subsidiary or project, see annex 3 to this Investor Information.
Generation - UTN Angra 3 corporate investment worth R$ 31.5 million and UTN Angra 1 and 2 worth R$ 20.3 million. There were also investments of R$ 9.4 million in UTE Santa Cruz. A further R$ 22 million was invested in SPE Brasil Ventos. Partnership projects represented 24% of investments made through Generation SPEs in 1Q20.
Transmission - Investments in Expansion and Reinforcements and Improvements corresponded to 51% of Corporate Investment. Highlight in corporate investments for Chesf, R $ 79.7 million; Furnas, R $ 41.7 million; CGT Eletrosul, R $ 23.3 million and Eletronorte, R $ 3.7 million. Partnership projects accounted for 14% of investments made through Transmission SPEs with emphasis on SPE Mata Sta. Geneva, R $ 25.2 million.
Non-realization of R$ 826 million in investments, R$ 227 million of which for reasons unrelated to Eletrobras, mainly due to the impact of the delay in supplying material and execution of works due to Covid 19 isolation measures. R $ 89 million Mata Highlight Sta Genebra, ESBR Jirau and SINOP and R $ 138 million with emphasis on UTN Angra I and II, Maintenance - Generation Chesf, Maintenance - Eletronorte Transmission, Eletronorte Reinforcements and Improvements and Vale São Bartolomeu.
MARKETLETTER 1Q2020
|
27
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
I.5. COMMERCIALIZATION
I.5.1. ENERGY SOLD IN 1Q20 – GENERATORS - TWH
In terms of the evolution of the energy market, Eletrobras Companies, in 1Q20, sold 37 TWh of energy, against 35 TWh traded in the same period of the previous year, which represents an increase of 6%. These volumes include the energy sold from the plants under the quota regime, renewed by Law 12,783/2013, as well as by the plants under the exploration regime (ACL and ACR).
MARKETLETTER 1Q2020
|
28
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
I.5.2. ENERGETIC BALANCE
Table 23: Energetic Balance
Energetic Balance (MWmed)
|
2020
|
2021
|
2022
|
2023
|
2024
|
Ballast
|
9,477
|
9,293
|
9,293
|
9,205
|
7,428
|
|
Own resources
|
8,314
|
8,314
|
8,314
|
8,314
|
6.647
|
|
Energy Purchase
|
1,162
|
979
|
979
|
891
|
782
|
Sales
|
6,731
|
5,455
|
4,984
|
4,851
|
4,437
|
|
ACL - Bilateral Contracts + MCP realized
|
4,490
|
3,349
|
2,878
|
2,751
|
2.337
|
ACR - Except quotas
|
2,241
|
2,107
|
2,107
|
2,101
|
2.101
|
Average Selling Price R$/MWh
|
216,52
|
217,69
|
219,87
|
220,77
|
225,51
|
Average Purchase Price R$/MWh
|
216,42
|
224,30
|
224,30
|
229,34
|
230,44
|
Balance (Ballast - Sales)
|
2,746
|
3,838
|
4,309
|
4,354
|
2,991
|
Uncontracted Energy *
|
29%
|
41%
|
46%
|
47%
|
40%
|
* The uncontracted portion includes energy reserved for the company's hedge, strategically defined according to the GSF estimate for the period.
|
Not included in installments of Physical Guarantee Quotas and Nuclear Energy Quotas.
|
Physical Guarantee Quotas for Hydroelectric Plants
|
7,451
|
7,451
|
7,451
|
7,451
|
9,118
|
Nuclear Energy Quotas
|
1,573
|
1,573
|
1,573
|
1,573
|
1,573
|
Contracts concluded until 03/31/2020. It considers the end of the contracts of UHEs Mascarenhas de Moraes, in Jan/2024, and UHE Tucuruí, in Aug/2024, and from the respective dates, both started to be considered in the Quota regime.
MARKETLETTER 1Q2020
|
29
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
II | Parent Company Result Analysis
In 1Q20, Eletrobras Holding posted a net income of R$ 300 million, a reduction of 79% compared to net income of R$ 1,398 million in 1Q19.
This 1Q20 result was decisively influenced by: (i) Income from Equity Holdings, of R$ 1,002 million, mainly influenced by the result of subsidiaries, (iii) positive effect on Provisions for legal contingencies, in the amount of R$ 155 million, mainly due to the reversals related to the lawsuits of compulsory loan in the amount of R $ 144 million; partially offset by (iii) negative financial result in the amount of (R$ 377 million), mainly influenced by the exchange rate fluctuation in the period, by (iv) Provision for Settlement of Doubtful Loans (PCLD) in the amount of (R$ 195 million) by and (iv) Provision for investment losses (R$ 116 million). The graph below shows a comparison of Eletrobras holding's results between 1Q19 and 1Q20.
EVOLUTION OF RESULT - R$ MILLION
Note: The analysis of the results of each subsidiary can be found in the attachment.
MARKETLETTER 1Q2020
|
30
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
II.1 SHAREHOLDERS 'EQUITY
In 1Q20, the result from Equity Holdings positively impacted the Company's result by R$ 1,002 million, mainly due to the equity in results of investments in subsidiaries, in 1Q19 the result was R$ 1,989 million.
II.2 PARENT COMPANY OPERATING PROVISIONS
In 1Q20, Operating Provisions had a negative impact on the Parent Company's result by R$ 76 million, compared to the provision of (R$ 351 million) in 1Q19. This variation is mainly explained by the positive effect on Provisions for legal contingencies, in the amount of R$ 155 million, due to the reversals related to the compulsory loan lawsuits in the amount of R$ 144 million.
TABLE 24: OPERATING PROVISIONS (R$ MILLION)
Operating Provisions
|
Parent Company
|
|
|
1Q20
|
1Q19 ((Reclassified))
|
Guarantees
|
|
|
-7
|
12
|
Contingencies
|
|
|
155
|
-104
|
PCLD - Consumers and Resellers
|
|
|
0
|
0
|
PCLD - Financing and Loans
|
|
|
-195
|
-178
|
Overdraft liabilities in subsidiaries
|
|
|
119
|
-16
|
Onerous Contracts
|
|
|
0
|
0
|
Investment Losses
|
|
|
-116
|
-0
|
Provision for losses on investments classified as held for sale
|
|
|
0
|
0
|
Impairment
|
|
|
0
|
0
|
ANEEL Provision - CCC
|
|
|
-7
|
-65
|
TFRH
|
|
|
0
|
0
|
Others
|
|
|
-25
|
0
|
|
|
|
|
|
Table 25: CHANGE PROVISION FOR LIABILITIES UNDERCOVERED
MUTATION PROVISION FOR DISCOVERED LIABILITIES - PARENT COMPANY
|
Balance on 12/31/2019
|
Other Comprehensive Results
|
Equity
|
Balance on 03/31/2020
|
Amazonas GT
|
119
|
-6
|
-113
|
-
|
TOTAL PROVISION FOR DISCOVERED LIABILITIES
|
|
|
|
|
* The shares of subsidiary Amazonas GT were 100% transferred to subsidiary Eletronorte.
MARKETLETTER 1Q2020
|
31
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
II.3 FINANCIAL RESULT OF PARENT COMPANY
In 1Q20, the Financial Result had a negative impact on the Parent Company's result by R$ 377 million in relation to the R$ 234 million in 1Q19, mainly influenced by the recording of R$ 2,771 million in financial expenses related to the write-off related to ANEEL - CCC process, due to the exchange rate fluctuation in the period. The Debt Charges showed a negative variation of R$ 240 million from 1Q19 to 1Q20, Net exchange variations changed from a positive result of R$ 28 million in 1Q19 to a negative result of R$ 165 million in 1Q20, offset by Revenue from financial investments in the amount of R$ 58 million in 1Q19 to R$ 478 million in 1Q20.
TABLE 26: FINANCIAL RESULT (R$ MILLION)
FINANCIAL RESULT
|
|
|
1Q20
|
1Q19
|
Financial income
|
|
|
|
|
Interest, commission and fee income
|
|
|
411
|
589
|
Income from financial investments
|
|
|
478
|
58
|
Additional moratorium on electricity
|
|
|
1
|
0
|
Monetary updates
|
|
|
46
|
173
|
Exchange variations
|
|
|
-165
|
28
|
Other financial income
|
|
|
95
|
48
|
|
|
|
|
|
Financial expenses
|
|
|
|
|
Debt charges
|
|
|
-729
|
-489
|
Leasing charges
|
|
|
-1
|
-2
|
Charges on shareholder resources
|
|
|
-23
|
-59
|
Other financial expenses
|
|
|
-489
|
-111
|
|
|
|
|
|
MARKETLETTER 1Q2020
|
32
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
III. General Information
Position on 03/31/2020. Currently, our staff has 133 SPEs, as TDG was incorporated on 12/05/2020.The number of SPEs is taking into account the direct and indirect participation in SPE, and disregarding the SPEs that participate in more than one Eletrobras Company, differently from the quantities considered in the tables of each company. In this total, 02 SPEs abroad are included. Of the 134 national and international SPEs, 39 are in the process of divestment by the competitive procedure of sale 01/2019.
MARKETLETTER 1Q2020
|
33
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
SHARE CAPITAL
STRUCTURAL OF CAPITAL STOCK
Eletrobras' capital stock, on March 31, 2020, totaled R $ 39,057 billion, represented by 1,568,930,910 shares, being 1,288,842,596 common shares and 280,088,314 preferred shares.
TABLE 27: CAPITAL STRUCTURE
Shareholders
|
Common
|
Pref. Classe “A”
|
Pref. Classe “B”
|
Total
|
Quantity
|
%
|
Quantity
|
%
|
Quantity
|
%
|
Quantity
|
%
|
Government
|
667,888,884
|
52%
|
0
|
0%
|
494
|
0%
|
667,889,378
|
43%
|
BNDESpar
|
141,757,951
|
11%
|
0
|
0%
|
18,691,102
|
7%
|
160,449,053
|
10%
|
BNDES
|
74,545,264
|
6%
|
0
|
0%
|
18,262,671
|
7%
|
92,807,935
|
6%
|
FND
|
45,621,589
|
4%
|
0
|
0%
|
0
|
0%
|
45,621,589
|
3%
|
FGHAB
|
1,000,000
|
0%
|
0
|
0%
|
0
|
0%
|
1,000,000
|
0%
|
Free Float
|
358,028,908
|
28%
|
146,920
|
100%
|
242,987,127
|
87%
|
601,162,955
|
38%
|
Total
|
|
|
|
|
|
|
|
|
MARKETLETTER 1Q2020
|
34
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
ASSET BEHAVIOR ANALYSIS
SHARES
TABLE 28: B3, ELET3 e ELET6
Price and Volume
|
(R$)
ELET3 (ON Shares)
|
(R$)
ELET6 (PN Shares)
|
(pts.)
IBOV (Índex)
|
(pts.)
IEE ((Índex)
|
Closing Price on 03/31/2019
|
23.86
|
26.03
|
73020
|
57651
|
Maximum in the quarter
|
41.78
|
42.66
|
119528
|
81871
|
Average in the quarter
|
33.63
|
35.28
|
103770
|
73909
|
Minimum in the quarter
|
15.24
|
18.48
|
63570
|
51682
|
|
|
|
|
|
Variation in 1Q20
|
-36.9%
|
-31.9%
|
-36.9%
|
-24.8%
|
Change in the last 12 months
|
-33.3%
|
-28.4%
|
-23.5%
|
0.4%
|
Average Daily Traded Volume 1Q20 (R$ million)
|
6.0
|
3.6
|
-
|
-
|
|
|
|
|
|
Net Income per Share in the Quarter (R$)
|
0.09
|
0.09
|
-
|
-
|
Book Value per Share (R$)
|
45.29
|
45.29
|
-
|
-
|
Price / Profit (P/E) (1)
|
267.34
|
291.65
|
-
|
-
|
Price / Shareholders' Equity(2)
|
0.53
|
0.57
|
-
|
-
|
1) Closing price of preferred and common shares at the end of the period / Net income per share. For the calculation, the accumulated net profit of the last 12 months was considered;
(2) Closing price of preferred and common shares at the end of the period / Book Value per share at the end of the period.
EVOLUTION OF SHARES TRADED AT B3
MARKETLETTER 1Q2020
|
35
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
ADR PROGRAMS
TABLE 29: NYSE, EBRN AND EBRB
Price and Volume
|
(US$) NYSE
EBRN
|
(US$) NYSE EBRB
|
Closing Price on 03/31/2019
|
4.62
|
5.10
|
Maximum in the quarter
|
9.91
|
11.56
|
Average in the quarter
|
7.63
|
9.09
|
Minimum in the quarter
|
3.12
|
3.47
|
|
|
|
Variation in 1Q20
|
-50.5%
|
-46.3%
|
Change in the last 12 months
|
-50.4%
|
-47.0%
|
Average Daily Trading Volume 1Q20 (US$ million)
|
723.8
|
42.0
|
EVOLUTION OF SHARES TRADED IN ADR
MARKETLETTER 1Q2020
|
36
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
Latibex – MADRID MARKET
TABLE 30: LATIBEX, XELTO E XELTB
Price and Volume
|
(€) LATIBEX
XELTO
|
(€) LATIBEX XELTB
|
Closing Price on 12/31/2019
|
4.36
|
4.74
|
Maximum in the quarter
|
8.90
|
9.10
|
Average in the quarter
|
7.06
|
7.44
|
Minimum in the quarter
|
2.84
|
3.10
|
|
|
|
Variation in 2019
|
-47.2%
|
-43.6%
|
Change in the last 12 months
|
-48.1%
|
-45.8%
|
Average Daily Traded Volume 1Q20 (thousands of Euros)
|
0.4
|
0.1
|
EVOLUTION OF FOREIGN CURRENCIES
MARKETLETTER 1Q2020
|
37
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
Nº OF EMPLOYEES
parent company
TABLE 31: EMPLOYEES FOR WORKING TIME
Working time in the company (years)
|
|
|
4Q19
|
1Q20
|
Up until 5
|
|
|
25
|
29
|
6 to 10
|
|
|
291
|
238
|
11 to15
|
|
|
191
|
210
|
16 to 20
|
|
|
128
|
138
|
21 to 25
|
|
|
13
|
13
|
more than 25
|
|
|
91
|
62
|
|
|
|
|
|
TABLE 32: EMPLOYEES BY FEDERATION STATE
Federation State
|
|
|
4Q19
|
1Q20
|
Rio de Janeiro
|
|
|
719
|
674
|
São Paulo
|
|
|
1
|
1
|
Brasília
|
|
|
19
|
15
|
|
|
|
|
|
CONTRACTED / OUTSOURCED LABOR
TABLE 33: CONTRACTED / OUTSOURCED LABOR
ROTATION INDEX (Holding)
TABLE 34: ROTATING INDEX HOLDING WITH PDC
MARKETLETTER 1Q2020
|
38
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
BALANCE SHEET (r$ thousand)
Asset
|
Parent Company
|
Consolidated
|
03.31.20
|
12.31.19
|
03.31.20
|
12.31.19
|
CURRENT
|
|
|
|
|
Cash and cash equivalents
|
2,057
|
18,202
|
511,523
|
335,307
|
Restricted cash
|
3,319,932
|
3,227,536
|
3,319,932
|
3,227,536
|
Marketable securities
|
7,125,676
|
6,787,137
|
11,742,493
|
10,426,370
|
Customers
|
279,403
|
468,429
|
5,137,776
|
5,281,333
|
Financial assets - Concessions and Itaipu
|
0
|
0
|
6,281,844
|
5,927,964
|
Loans and financing
|
5,817,384
|
5,120,734
|
4,355,098
|
3,473,393
|
Asset contractual transmission
|
0
|
0
|
1,113,171
|
1,116,009
|
Equity Pay
|
3,575,812
|
3,592,503
|
246,926
|
299,899
|
Taxes to recover
|
157,120
|
807,150
|
1,004,815
|
1,474,662
|
Income tax and social contribution
|
1,057,173
|
309,033
|
2,298,965
|
2,382,899
|
Reimbursement rights
|
0
|
0
|
60,925
|
48,458
|
Warehouse
|
329
|
272
|
440,440
|
471,824
|
Nuclear fuel stock
|
0
|
0
|
553,097
|
538,827
|
Derivative financial instruments
|
0
|
138
|
83,675
|
140,543
|
Hydrological risk
|
0
|
0
|
8,361
|
13,590
|
Other
|
1,737,150
|
1,444,837
|
2,176,930
|
2,016,330
|
|
23,072,036
|
21,775,971
|
39,335,971
|
37,174,944
|
|
|
|
|
|
Asset held for sale
|
1,434,279
|
1,546,250
|
3,397,757
|
3,543,519
|
|
|
|
|
|
|
|
|
|
|
NON CURRENT
|
|
|
|
|
LONG-TERM
|
|
|
|
|
Reimbursement rights
|
5,423,156
|
5,382,834
|
5,455,869
|
5,415,547
|
Loans and financing
|
17,362,789
|
18,282,460
|
10,537,784
|
10,803,423
|
Customers
|
0
|
0
|
250,623
|
285,351
|
Marketable securities
|
378,428
|
374,601
|
378,770
|
407,071
|
Nuclear fuel stock
|
0
|
0
|
994,547
|
840,550
|
Taxes to recover
|
0
|
0
|
417,538
|
420,370
|
Current Income Tax and Social Contribution
|
0
|
0
|
542,466
|
463,451
|
Deferred income and social contribution taxes
|
4,222,098
|
4,168,575
|
6,921,400
|
6,891,416
|
Escrow deposits
|
0
|
0
|
13,793,619
|
13,744,276
|
Fuel Consumption Account - CCC
|
2,106,819
|
1,905,607
|
30,702,822
|
31,633,512
|
Financial assets - Concessions and Itaipu
|
0
|
0
|
87,941
|
151,315
|
Derivative financial instruments
|
1,005,148
|
774,468
|
187,256
|
181,257
|
Advances for future capital increase
|
0
|
0
|
171,885
|
179,879
|
Hydrological risk
|
1,638,760
|
1,222,393
|
1,638,760
|
1,222,393
|
Other
|
1,292,923
|
1,350,913
|
1,394,629
|
1,024,607
|
NON CURRENT
|
|
|
|
|
INVESTMENTS
|
73,102,763
|
75,637,776
|
28,929,664
|
29,112,919
|
Fixed assets net
|
252,675
|
255,947
|
32,912,292
|
33,315,874
|
INTANGIBLE
|
19,516
|
19,518
|
635,907
|
655,041
|
|
|
|
|
|
|
|
|
|
|
MARKETLETTER 1Q2020
|
39
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
(r$ thousand)
Liabilities and Equity
|
Parent Company
|
Consolidated
|
03.31.20
|
12.31.19
|
03.31.20
|
12.31.19
|
CURRENT
|
|
|
|
|
Loans and financing
|
5,521,577
|
5,759,164
|
7,866,151
|
7,636,633
|
Debentures
|
98,762
|
33,159
|
154,603
|
78,527
|
Compulsory loan
|
14,778
|
15,156
|
14,778
|
15,156
|
Suppliers
|
731,375
|
494,133
|
3,014,621
|
3,095,469
|
Advances from customers
|
622,342
|
614,171
|
685,892
|
683,602
|
Taxes payable
|
99,353
|
201,516
|
1,466,441
|
1,575,658
|
Income tax and social contribution
|
0
|
0
|
1,584,082
|
2,532,732
|
Onerous contracts
|
0
|
0
|
3,913
|
3,913
|
Remuneration to shareholders
|
2,580,378
|
2,559,429
|
2,592,855
|
2,575,216
|
Financial liabilities - Concessions and Itaipu
|
471,181
|
703,114
|
0
|
0
|
Estimated liabilities
|
156,152
|
147,106
|
1,403,844
|
1,331,257
|
Reimbursement Obligations
|
1,827,911
|
1,796,753
|
1,827,911
|
1,796,753
|
Post-employment benefits
|
12,005
|
14,875
|
175,943
|
161,773
|
Provisions for contingencies
|
833,795
|
1,014,585
|
847,043
|
1,031,488
|
Regulatory charges
|
0
|
0
|
697,648
|
627,611
|
Lease
|
7,655
|
7,574
|
224,774
|
219,484
|
Derivative financial instruments
|
423
|
683
|
423
|
683
|
Liabilities associated with assets held for sale
|
31,429
|
89,553
|
394,269
|
579,394
|
|
13,009,116
|
13,450,971
|
22,955,191
|
23,945,349
|
|
|
|
|
|
Liabilities associated with assets held for sale
|
0
|
0
|
1,666,172
|
1,692,708
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT
|
|
|
|
|
Loans and financing
|
21,558,336
|
22,515,109
|
35,880,342
|
34,303,730
|
Suppliers
|
0
|
0
|
18,143
|
18,143
|
Debentures
|
5,019,280
|
5,011,069
|
6,663,312
|
5,880,751
|
Advances from customers
|
0
|
0
|
345,009
|
369,262
|
Compulsory loan
|
472,511
|
470,600
|
472,511
|
470,600
|
Obligation for asset retirement
|
0
|
0
|
3,162,945
|
3,129,379
|
Provisions for contingencies
|
16,579,316
|
16,924,171
|
24,002,644
|
24,214,938
|
Post-employment benefits
|
822,512
|
822,512
|
4,376,687
|
4,353,406
|
Provision for unsecured liabilities
|
0
|
119,223
|
2,731
|
0
|
Onerous contracts
|
0
|
0
|
361,934
|
361,934
|
Lease
|
54,002
|
55,928
|
936,765
|
987,705
|
Grants payable - Use of public goods
|
0
|
0
|
68,786
|
68,555
|
Advances for future capital increase
|
72,802
|
50,246
|
72,802
|
50,246
|
Derivative financial instruments
|
0
|
0
|
5,292
|
5,000
|
Regulatory charges
|
0
|
0
|
739,566
|
730,303
|
Taxes payable
|
0
|
0
|
234,784
|
239,959
|
Income tax and social contribution
|
509,193
|
628,904
|
3,671,571
|
3,978,754
|
Others
|
2,164,640
|
1,741,779
|
1,525,679
|
1,271,847
|
TOTAL NON-CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Share capital
|
39,057,271
|
31,305,331
|
39,057,271
|
31,305,331
|
Capital reserves
|
13,867,170
|
13,867,170
|
13,867,170
|
13,867,170
|
Profit reserves
|
23,887,181
|
23,887,181
|
23,887,181
|
23,887,181
|
Advances for future capital increase
|
0
|
7,751,940
|
0
|
7,751,940
|
Other comprehensive income accumulated
|
-6,076,317
|
-5,904,821
|
-6,076,317
|
-5,904,821
|
Non controlling shareholdins
|
0
|
0
|
474,952
|
487,345
|
|
314,377
|
0
|
314,377
|
0
|
TOTAL SHAREHOLDERS' EQUITY
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
MARKETLETTER 1Q2020
|
40
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
INCOME STATEMENT (r$ thousand)
|
Parent Company
|
Consolidated
|
|
03.31.20
|
12.31.19
|
03.31.20
|
12.31.19
|
|
|
|
|
|
Operating costs
|
|
|
|
|
Energy purchased for resale
|
-3,659
|
-2,883
|
-646,220
|
-434,532
|
Charges upon use of electric network
|
0
|
0
|
-446,459
|
-209,673
|
Construction
|
0
|
0
|
-190,318
|
-115,044
|
Fuel for electricity production
|
0
|
0
|
-467,998
|
-530,003
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
Personnel, Supllies and Services
|
-142,142
|
-165,792
|
-1,695,481
|
-1,823,196
|
Depreciation
|
-3,273
|
-3,394
|
-447,008
|
-407,265
|
Amortization
|
0
|
0
|
-22,257
|
-20,692
|
Donations and contributions
|
-24,337
|
-32,748
|
-50,289
|
-52,292
|
Operating Provisions /Reversals net
|
-75,841
|
-350,726
|
-446,852
|
-522,951
|
Investigation Findings
|
0
|
0
|
0
|
0
|
Others
|
-72,666
|
-30,265
|
-398,600
|
-170,583
|
|
|
|
|
|
OPERATING INCOME BEFORE FINANCIAL RESULT
|
|
|
|
|
Financial result
|
|
|
|
|
Financial income
|
|
|
|
|
Income from interest, commissions and fees
|
410,723
|
588,637
|
226,554
|
245,863
|
Income from financial investments
|
478,215
|
57,783
|
557,821
|
125,312
|
Moratorium on electricity
|
617
|
126
|
54,971
|
61,108
|
Restatement Assets
|
150,028
|
314,651
|
177,909
|
260,825
|
Current foreign currency exchange rate variations
|
3,472,139
|
757,492
|
3,302,788
|
886,205
|
Payment of indemnities - Law 12,783 / 13
|
0
|
0
|
33
|
239,265
|
Regulatory asset update
|
0
|
0
|
0
|
0
|
Gains on derivatives
|
0
|
0
|
0
|
0
|
Other financial income
|
95,043
|
47,516
|
118,603
|
123,634
|
Financial expenses
|
|
|
|
|
Debt charges
|
-729,417
|
-489,346
|
-1,039,250
|
-693,710
|
Lease charges
|
-1,456
|
-1,617
|
-93,382
|
-84,710
|
Charges on shareholders' funds
|
-22,556
|
-58,603
|
-46,152
|
-92,871
|
Noncurrent Restatement
|
-103,737
|
-141,415
|
-128,154
|
-137,425
|
Noncurrent foreign currency exchange rate variations
|
-3,637,147
|
-729,705
|
-3,904,835
|
-823,524
|
Regulatory liability update
|
0
|
0
|
-337,266
|
-165,817
|
Losses on derivatives
|
0
|
0
|
-118,528
|
-18,230
|
Other financial expenses
|
-489,246
|
-111,399
|
-280,423
|
-262,049
|
|
|
|
|
|
|
|
|
|
|
RESULTS OF EQUITY
|
1,002,437
|
1,989,002
|
164,223
|
160,094
|
OTHER REVENUE AND EXPENDITURE
|
0
|
0
|
25,042
|
183,222
|
OPERATING INCOME BEFORE TAXES
|
|
|
|
|
Current Income tax and social contribution
|
0
|
-158,558
|
-735,783
|
-1,059,368
|
Deferred Income Tax and Social Contribution
|
0
|
0
|
218,511
|
442,720
|
NET INCOME FROM CONTINUING OPERATIONS
|
|
|
|
|
SHARE ATTRIBUTED TO CONTROLLING
|
300,157
|
1,620,328
|
300,157
|
1,620,328
|
SHARE ATTRIBUTED TO NON-CONTROLLING
|
0
|
0
|
6,679
|
-50,358
|
DISCONTINUED OPERATION
|
|
|
|
|
NET LOSS OF OPERATING TAXES DISCONTINUED
|
0
|
-222,616
|
0
|
-222,616
|
NET INCOME OF THE FINANCIAL YEAR
|
|
|
|
|
MARKETLETTER 1Q2020
|
41
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
cash flow statement (r$ thousand)
|
Parent
|
Consolidated
|
|
03.31.20
|
12.31.19
|
03.31.20
|
12.31.19
|
Operating Activities
|
|
|
|
|
Income before income tax and social contribution
|
|
|
|
|
Adjustments to reconcile income to cash provided by operations:
|
0
|
0
|
0
|
0
|
Depreciation and amortization
|
3,273
|
3,394
|
469,265
|
427,957
|
Net foreign exchange rate variations
|
118,717
|
-201,023
|
552,292
|
-186,078
|
Financial charges
|
342,706
|
-39,071
|
952,230
|
625,428
|
Financial asset revenue
|
0
|
0
|
-199,782
|
-196,017
|
Construction Revenue
|
0
|
0
|
-152,713
|
-115,758
|
Equivalence equity results
|
-1,002,437
|
-1,989,002
|
-164,223
|
-160,094
|
Result on disposal of equity interests
|
0
|
0
|
-25,042
|
-183,222
|
RBSE Revenue
|
0
|
0
|
-1,016,199
|
-926,665
|
Provision (reversal) for short-term liabilities
|
0
|
0
|
0
|
0
|
Provision (reversal) for doubtful accounts
|
0
|
0
|
0
|
0
|
Provision (reversal) for contingencies
|
0
|
0
|
0
|
0
|
Provision (reversal) for impairment of assets
|
0
|
0
|
0
|
0
|
Provision (reversal) for onerous contract
|
0
|
0
|
0
|
0
|
Provision (reversal) for losses on investments
|
0
|
0
|
0
|
0
|
TRFH – (Pará rate)
|
0
|
0
|
0
|
0
|
Provision (reversa operationsl)
|
75,841
|
350,726
|
446,852
|
522,951
|
Non-controlling interest
|
0
|
0
|
-10,136
|
76,298
|
Financial instruments - derivatives
|
0
|
0
|
118,528
|
18,230
|
Others
|
-89,445
|
-73,022
|
11,899
|
-83,095
|
|
|
|
|
|
(Increases) / decreases in operating assets
|
|
|
|
|
Customers
|
0
|
20,441
|
-10,741
|
82,362
|
Marketable securities
|
-338,539
|
-55,777
|
-1,283,995
|
-820,131
|
Reimbursement rights
|
-40,322
|
-21,524
|
-52,789
|
-799,309
|
Warehouse
|
-57
|
-23
|
31,384
|
-17,496
|
Nuclear fuel stock
|
0
|
0
|
-168,267
|
9,410
|
Financial assets - Itaipu and public service concessions
|
-433,145
|
-82,768
|
-433,145
|
-82,768
|
Assets held for sale
|
94,459
|
-27,405
|
128,250
|
24,181
|
Hydrological risk
|
0
|
0
|
13,223
|
107,654
|
Credits with subsidiaries - CCD
|
0
|
0
|
0
|
0
|
Others
|
-284,977
|
-397,674
|
827,360
|
-380,760
|
|
|
|
|
|
Increase / (decrease) in operating liabilities
|
|
|
|
|
Suppliers
|
188,143
|
-23,847
|
-129,947
|
-500,795
|
Advances from customers
|
0
|
0
|
-30,134
|
-16,828
|
Lease
|
1,456
|
68,969
|
93,801
|
300,947
|
Estimated liabilities
|
9,046
|
-25,985
|
57,252
|
-319,943
|
indemnification obligations
|
0
|
0
|
0
|
0
|
Sectorial charges
|
0
|
0
|
79,300
|
-11,619
|
Liabilities associated with assets held for sale
|
0
|
186,722
|
-26,536
|
186,722
|
Accounts payable with subsidiaries
|
0
|
0
|
0
|
0
|
Other
|
316,776
|
25,298
|
-1,112,335
|
268,595
|
|
|
|
|
|
|
|
|
|
|
Payment of financial charges
|
-187,983
|
-237,669
|
-566,344
|
-740,160
|
Revenue of RAP and indemnities
|
0
|
0
|
1,991,912
|
1,505,901
|
Financial asset revenues
|
0
|
0
|
0
|
0
|
Revenue of financial charges
|
412,218
|
420,801
|
240,004
|
353,541
|
MARKETLETTER 1Q2020
|
42
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|
Payment of income tax and social contribution
|
-71,152
|
-55,514
|
-1,150,712
|
-666,400
|
Refinancing payment of taxes and contributions - principal
|
0
|
0
|
0
|
0
|
Revenue of remuneration for investments in equity interests
|
156,847
|
7,044
|
158,371
|
20,371
|
Supplementary pension payment
|
-2,870
|
-7,359
|
-56,688
|
-44,400
|
Payment of legal contingencies
|
-463,992
|
-390,374
|
-471,265
|
-392,946
|
Bonds and related deposits
|
-54,066
|
-49,473
|
-52,570
|
-54,664
|
Net cash provided by (used in) operating activities of continuing operations
|
|
|
|
|
Net cash provided by (used in) operating activities of discontinued operations
|
|
|
|
|
Net cash provided by (used in) operating activities
|
|
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
Loans and financing
|
5,193,319
|
0
|
6,119,567
|
630,181
|
Payment of loans and financing - Main
|
-5,863,325
|
-568,789
|
-6,321,568
|
-1,400,747
|
Payment of shareholders remuneration
|
0
|
-132
|
0
|
-132
|
Advanced receivalbe for future capital increase
|
0
|
0
|
0
|
0
|
Payment of finance leases
|
-3,301
|
0
|
-139,451
|
0
|
Others
|
0
|
0
|
5,393
|
-10,103
|
Net cash provided by (used in) financing activities from continuing operations
|
|
|
|
|
Net cash provided by (used in) financing activities of discontinued operations
|
|
|
|
|
Net cash provided by (used in) financing activities
|
|
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
Lending and financing
|
0
|
0
|
0
|
0
|
loans and financing receivables
|
0
|
-230,807
|
0
|
0
|
Acquisition of fixed assets
|
1,819,051
|
1,766,714
|
855,972
|
1,524,906
|
Acquisition of intangible assets
|
0
|
-69
|
-178,009
|
-203,142
|
Acquisition / capital investment in equity
|
0
|
-53
|
-15,611
|
-6,401
|
Advance concession for future capital increase
|
0
|
-6,860
|
-25,250
|
-133,734
|
Investment sale in shareholdings
|
-230,055
|
-107,230
|
-6,000
|
-5,373
|
Net cash flow in the acquisition of investees
|
17,512
|
0
|
17,512
|
0
|
Other
|
0
|
0
|
0
|
0
|
Net cash provided by (used in) investing activities from continuing operations
|
|
|
|
|
Net cash provided by (used in) investment activities of discontinued operations
|
|
|
|
|
Net cash provided by (used in) investing activities
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the beginning of the financial year
|
18,202
|
47,400
|
335,307
|
583,352
|
Cash and cash equivalents at the end of the financial year
|
2,057
|
84,942
|
511,523
|
931,430
|
Increase (decrease) in cash and cash equivalents
|
0
|
0
|
0
|
41,064
|
|
|
|
|
|
|
|
|
|
|
MARKETLETTER 1Q2020
|
43
|
Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.
|
|