SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of November, 2023
Commission File Number 1-34129
CENTRAIS ELÉTRICAS BRASILEIRAS S.A.
- ELETROBRÁS
(Exact name of registrant as specified in its
charter)
BRAZILIAN ELECTRIC POWER COMPANY
(Translation of Registrant's name into English)
Rua da Quitanda, 196 – 24th floor,
Centro, CEP 20091-005,
Rio de Janeiro, RJ, Brazil
(Address of principal executive office)
Indicate by check mark whether the registrant
files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ___X___ Form 40-F _______
Indicate by check mark whether the registrant
by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule
12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No___X____
SUMMARY
| Key Indicators |
6 |
| 1. Operating Result |
7 |
| 1.1. Generation Segment |
7 |
| 1.2. Commercialization Segment |
9 |
| 1.3. Transmission Segment |
11 |
| 2. Consolidated result | IFRS |
12 |
| 2.1. Operating Revenues |
13 |
| 2.2. Other income |
19 |
| 2.3. Operating Costs and Expenses |
19 |
| 2.4. Equity Interests |
25 |
| 2.5. Financial Results |
26 |
| 2.6. Income Tax |
27 |
| 2.7. EBITDA |
28 |
| 3. Debt and receivables |
29 |
| 3.1. Holding / Parent Company and Consolidated |
29 |
| 4. Loans and Financing (Receivables) |
31 |
| 4.1. Holding / Parent Company and Consolidated |
31 |
| 4.2. RBSE |
31 |
| 5. Investments |
33 |
| 6. ESG 3Q23 |
34 |
| 7. Annexes |
36 |
| 7.1. Annex 1 - Financial Statements |
36 |
| 7.2. Annex 2 - Results by Segment |
41 |
| 7.3. Annex 3 - Compulsory Loan |
42 |
| 7.4. Annex 4 - IFRS x Regulatory reconciliation |
43 |
Eletrobras
releases results for the 3rd quarter of 2023
Eletrobras posted a solid operational and financial
performance in 3Q23, marked by the acceleration of its strategic agenda aimed at creating value.
Operational
| · | In the generation segment, we had an increase
of 928 MW in our installed capacity, mainly reflecting the incorporation of the Teles Pires hydroelectric plant. |
| · | In the transmission segment, we are implementing
194 large-scale projects, with associated annual permitted revenue (RAP) of R$ 958 million per year. |
Structuring of the commercialization area
| · | In July, Eletrobras received authorization to
act as an electricity trading agent within the scope of the Electricity Trading Chamber - CCEE. |
| · | In September, Mr. Ítalo Tadeu de Carvalho
Freitas Filho was elected as the Company's Vice President of Commercialization. |
| · | The process of centralizing the area made strides
in 3Q23, reaching a base of 429 clients, 353 of them on the ACL, a significant increase from the 232 clients in 3Q22. As for end consumers,
we grew from 34 in 3Q22 to 228 in 3Q23. |
Adjustment of PMSO costs and expenses
| · | Recurring PMSO (Personnel, Material, Services
and Others) costs of R$1,680 million in 3Q23, down 14% compared to 3Q22. |
| · | We will reopen the 2nd Voluntary
Dismissal Plan (PDV) with 101 additional vacancies, reaching 1,574 employees. In 4Q23, we expect additional cost savings of R$61 million,
with the departure of 614 employees. |
| · | In October, we received ANEEL's approval to
share our human resources structure, allowing for further integration and cost optimization. |
Simplifying the corporate structure and
optimizing capital
| · | In 3Q23, we reduced the number of minority shareholdings
in SPEs to 68. |
| · | In September, we completed the necessary steps
to consolidate 100% of the Teles Pires Hydroelectric Power Plant, with a total installed capacity of 1,820 MW. |
| · | We signed a contract for the sale of Candiota,
in line with our goal of net zero by 2030. |
| · | We completed the sale of COPEL for R$125 million,
reducing our minority and non-strategic stakes. |
| · | In October, we completed the consolidation of
100% of the Baguari HPP, another important step in Eletrobras' simplification process. |
| · | We approved the delisting of Chesf. |
| · | We began studies to incorporate Furnas and Eletropar.
|
Liability and contingency management
| · | In September, we raised around R$11 billion.
|
| · | In October, we anticipated the redemption of
R$6.3 billion in commercial notes due in 2024. |
| · | The average term was 59.6 months, and the average
cost was CDI + 1.0845% p.a. on 09/30/23. |
| · | The net debt/adjusted EBITDA ratio was 2.0x
in 3Q23. |
| · | Solid cash position of R$31.2 billion as of
09/30/23. |
| · | We began the process of restructuring Santo
Antônio Energia S/A (SAESA)’s debts. |
Contingency management
| · | In 3Q23, we progressed on a number of fronts,
including the settlement of the global reversion reserve fund (RGR), Aneel's forfeiture proceedings, and the conciliation of bonds related
to litigation. |
| · | We reduced the balance of compulsory loans to
R$19,056 million, a 26.1% reduction from 3Q22. |
ESG
| · | In August, we were included in the first portfolio
of the B3 Diversity Index (IDIVERSA B3), an important recognition of our diversity and inclusion practices. |
| · | Our green hydrogen plant in Itumbiara has received
the CCEE certification for renewable hydrogen. The plant has already produced three tons of green hydrogen. |
Financial highlights:
| · | Net operating revenue of R$8,781 million, up
9%, mainly reflecting the increase in transmission revenues. |
| · | Recurring regulatory EBITDA was R$6,249 million,
up 51%, due to higher transmission revenues and lower operating expenses, particularly operating provisions. |
| · | Net profit of R$1,477 million, a significant
improvement on the net loss of R$0.1 million in 3Q22. |
| · | Financial income showed a net expense of R$3,119
million, mainly due to higher debt charges, charges and monetary restatement of obligations with the CDE and the revitalization of river
basins. |
Key
Indicators
| Highlights |
3Q23 |
3Q22 |
% |
| Generation |
|
|
|
| Installed Generation Capacity (MW) |
43,816 |
42,559 |
3% |
| Physical Guarantee (MWm) (1) |
17,506 |
16,119 |
8,6% |
| Net Generation (GWh) |
112,938 |
137,.482 |
-18% |
| Energy Sold ACR (GWh) (2) |
8.5 |
8.5 |
0% |
| Energy Sold ACL (GWh) (3) |
12.7 |
14.2 |
-10% |
| Energy Sold Quotas (GWh) (4) |
11.6 |
16.5 |
-29% |
| Average ACR Price (R$/MWh) |
227.25 |
295.51 |
-23% |
| Average ACL Price (R$/MWh) |
200.18 |
189.60 |
6% |
| Transmission |
|
|
|
| Transmission lines (km) |
73,437.1 |
74,022.3 |
- 0.8 |
| RAP (R$mm) |
17,611.7 |
13,713.3 |
28.4 |
(1) Includes quotas and considers 100%
of Corporate enterprises and SAESA developments. (2) Does not include quotas. (3) Includes contracts under Federal Law 13182/2015. (4)
Amounts presented constitute a Physical Guarantee for quotas in GWh.
| |
3Q23 |
3Q22 |
% |
9M23 |
9M22 |
% |
| Financial Indicators (R$mm) |
|
|
|
|
|
|
| Gross Revenue |
10,599 |
9,901 |
7% |
32,617 |
30,234 |
8% |
| Adjusted Gross Revenue |
10,599 |
9,901 |
7% |
32,686 |
30,162 |
8% |
| Net Operating Revenue |
8,781 |
8,033 |
9% |
27,237 |
25,065 |
9% |
| Recurring Net Operating Revenue |
8,749 |
8,033 |
9% |
27,274 |
25,000 |
9% |
| EBITDA |
4,815 |
2,419 |
99% |
15,965 |
9,978 |
60% |
| Recurrent EBITDA |
4,560 |
3,201 |
42% |
15,612 |
13,817 |
13% |
| Regulatory EBITDA |
6,516 |
2,987 |
118% |
17,269 |
9,123 |
89% |
| Regulatory recurring EBITDA |
6,249 |
4,132 |
51% |
16,904 |
13,324 |
27% |
| EBITDA Margin |
55% |
30% |
24.7 |
59% |
40% |
18.8 |
| Recurrent EBITDA Margin |
52% |
40% |
12.3 |
57% |
55% |
2.0 |
| Return on Equity (ROE) LTM |
2.7% |
5.3% |
-2.6 |
2.7% |
5.3% |
-2.6 |
| Adjusted Gross Debt (1) |
70,511 |
54,501 |
29% |
70,511 |
54,501 |
5% |
| Adjusted Net Debt |
39,107 |
33,522 |
17% |
39,107 |
33,522 |
17% |
| Adjusted Net Debt/Adjusted LTM EBITDA |
2.0 |
1.8 |
15% |
2.0 |
1.8 |
9% |
| Net Income |
1,477 |
-0.1 |
-1678040% |
3,501 |
4,117 |
-15% |
| Investments |
1,864 |
991 |
88% |
4,371 |
4,040 |
8% |
In 3Q23, we had 100 power plants, of which 47 were
hydroelectric, 43 wind, 9 thermal and 1 solar, including Corporate enterprises, companies subject to Shared Ownership and ownership interests
via SPEs (Special Purpose Companies).
Our installed capacity reached 43,816 MW in the quarter,
considering Corporate enterprises, Shared Ownership and ownership via SPEs, which represents 22% of the total installed capacity in Brazil.
Our installed capacity increased by around 928 MW in the period due to the incorporation of Teles Pires, partially offset by the reduction
of 127 MW from the swap of HPP Dardanelos with Neoenergia. Of our total installed capacity, around 96% comes from clean sources, with
low greenhouse gas emissions.
| Source |
Installed Capacity (MW) |
Physical Guarantee
(MWavg) |
Acc. Energy
Generated (GWh) |
|
|
| |
|
| Hydro (47 plants) |
41,455.08 |
20,103.69 |
107,591.05 |
|
|
| Thermal (9 plants) |
1,645.22 |
1,341.90 |
3,725.25 |
|
|
| Wind (43 plants) |
714.85 |
322.61 |
1,621.28 |
|
|
| Solar (1 plant) |
0.93 |
- |
0.83 |
|
|
| Total (100 plants) |
43,816.07 |
21,768.20 |
112,938.40 |
|
|
In 3Q23, Brazil's installed capacity was 195,767.64
MW, 56% of which came from hydroelectric sources, 24% from thermal sources, 14% from wind power, 5% from solar power and 1% from nuclear
power. Eletrobras is responsible for 22.2% of Brazil's total installed capacity.
Net generation in 9M23 was 22% lower than in 9M22,
mainly reflecting the privatization effects with the deconsolidation of Eletronuclear and the sale of Itaipu, unscheduled maintenance
to improve performance at the Aparecida and Mauá 3 TPPs, an increase in scheduled annual overhauls over the years at the Santa
Cruz TPP and unscheduled unavailability at the Tucuruí HPP in 3Q23.
PLD
| |
|
3Q22 |
3Q23 |
| Market |
GSF (%) |
74.95 |
80.37 |
| PLD SE (R$/MWh) |
66.55 |
69.00 |
| PLD S (R$/MWh) |
66.55 |
69.00 |
| NE PLD (R$/MWh) |
66.54 |
69.00 |
| PLD N (R$/MWh) |
66.55 |
69.00 |
GSF (%)
Three projects that will add almost 330.45 MW to
Eletrobras' installed capacity between 2023 and 2024 are still under construction. These include the 302.4 MW Coxilha Negra wind farm
in Rio Grande do Sul and the 27 MW Casa Nova B wind farm in Bahia.
Regarding the Coxilha Negra Wind Farm, we can highlight
the progress made on the Transmission Lines, which are in the commissioning and demobilization phase.
With regard to the Casa Nova B wind farm, it is estimated
that work on the 34.5kV medium-voltage network, which will connect the wind turbines to the Casa Nova II substation, will begin in November
2023.
| 1.2. | Commercialization Segment |
| 1.2.1. | Energy sold in 3Q23 |
In terms of the evolution of the energy market, Eletrobras
Companies sold 32.8 TWh of energy in 3Q23, down 16.1% compared to 39.1 TWh traded in 3Q22, especially in the O&M regime, due to the
quota decoupling process that is taking place gradually over a 5-year period starting in 2023, as well as the decontracting.
These volumes include the energy sold by power plants
operating under a quota regime, renewed by Law 12783/2013, as well as by power plants operating under the operational regime (ACL and
ACR).
| Energy Balance (MWavg) |
2023 |
2024 |
2025 |
2026 |
2027 |
| Resources with no impact on the balance sheet (1) |
1,419 |
1,419 |
1,192 |
1,192 |
946 |
| |
|
|
|
|
|
| Resources (A) |
11,768 |
13,047 |
14,321 |
15,480 |
16,644 |
| Company Resources (2) (3) (4) (5) |
10,482 |
11,811 |
13,122 |
14,370 |
15,615 |
| Energy Purchase |
1,286 |
1,236 |
1,199 |
1,110 |
1,029 |
| Sales (B) |
10,081 |
8,348 |
6,711 |
5,077 |
4,377 |
| ACL - Bilateral Contracts + implemented MCP (6) |
7,571 |
5,313 |
4,286 |
2,652 |
2,048 |
| ACR - Except quotas |
2,510 |
3,035 |
2,424 |
2,424 |
2,329 |
| |
|
|
|
|
|
| Average Prices Contracts Signed |
|
|
|
|
|
| Average Price of Sales Contracts signed up to 09/30/2023 (ACR and ACL - R$/MWh) |
208.21 |
194.72 |
177.59 |
193.41 |
202.56 |
| Balance (A - B) |
1,688 |
4,699 |
7,610 |
10,404 |
12,267 |
| Balance considering estimated hedge (7) |
247 |
2,385 |
5,047 |
7,592 |
9,208 |
| Decontracted energy considering hedge estimate (7) |
2% |
16% |
33% |
46% |
52% |
Contracts signed until September 30, 2023. It
should be noted that the balance sheet takes into account the Santo Antônio Energia SPE, consolidated by Furnas as of 3Q22, whether
in terms of resources, sales or average prices.
| | Earnings Release | 3Q23 | 10 |
1. Not included
in the balance sheet, whether in resources, requirements (sales) or average prices, are the PIE contracts (gas-fired thermal plants) resulting
from the Amazonas Distribuidora de-verticalization process, the thermal availability contracts and
the Physical Guarantee Quotas. These resources are presented in order to make up the total resources considered.
2. Company Resources include plants involved
in the decoupling of quotas (in the percentage that corresponds to the annual decoupling of quotas) and the total Additional Grants (Sobradinho,
Itumbiara, Tucuruí, Curuá-Una and Mascarenhas de Moraes). For the hydroelectric projects, an estimate of GFIS2 was considered,
i.e. the Physical Guarantee taking into account the Adjustment Factors due to Internal Losses, Losses in the Basic Grid and Availability
and adjustments due to the particularities of the portfolio.
3. The revised Physical Guarantee amounts, as
defined in Ordinance No. 709/GM/MME, of November 30, 2022, are taken into account.
4. With the Quota Decoupling process, the plants
currently under the quota regime will be granted a new concession under the Independent Energy Producer (PIE) regime, which is being implemented
gradually over a 5-year period starting in 2023. The Physical Guarantee amounts were defined in Ordinance GM/MME No. 544/21.
5. This takes into account the new concession
grants from 2023 onwards for the Sobradinho, Itumbiara, Tucuruí, Curuá-Una and Mascarenhas de Moraes plants, whose Physical
Guarantee amounts were defined in Ordinance GM/MME No. 544/21.
6. It should be noted that, for the contracts
in the ACL, there have been reductions in the contracted amounts agreed under the aegis of Law 13182/2015 (HPP Itumbiara), under the terms
of §§ 12, 12-A and 12-B of art. 10 of the aforementioned ordinance, transcribed in Clause 6 of the contracts, which take effect
from the years 2023 and 2024. The amounts presented take these reductions into account, but also include the volumes of the new contracts
already signed.
7. The figures show an estimate of decontracted energy. For the year
2023, CCEE's GSF estimate, from the CCEE Informa of April 25, 2023, of 86.1%, was considered. For the other years, a historical average
GSF value from 2017 to 2022 of 80.1% was considered. Source: CCEE, obtained from the CCEE website, at the following link: https://www.ccee.org.br/dados-e-analises/dados-geracao,
under the MRE option in the panel. It should be noted that this is only an estimate, based on facts that occurred in the past.
| Hydroelectric Power Plant Physical Guarantee Quotas (MWavg) |
2023 |
2024 |
2025 |
2026 |
2027 |
| Physical Guarantee Quotas (8) (9) |
5,252 |
3,939 |
2,626 |
1,313 |
0 |
8. This does not include the Physical Guarantee of the Jaguari HPP,
of 12.7 MWavg, whose concession is under provisional administration by Furnas.
9. The Quota Decoupling process will take place gradually over a
5-year period starting in 2023. The Physical Guarantee amounts considered from 2023 onwards were those defined in Ordinance GM/MME No.
544/21.
| 1.3.1. | Transmission lines - Km |
We currently have 73,400 km of lines and 296 substations.
| Company |
Company-owned |
In Partnership (1) |
Total |
| Chesf |
22,036.6 |
1,810.8 |
23,847.4 |
| Eletronorte |
10,921.2 |
1,054.3 |
11,975.5 |
| CGT Eletrosul |
11,963.1 |
4.6 |
11,967.7 |
| Furnas |
21,543.7 |
4,102.8 |
25,646.5 |
| Total |
66,464.6 |
6,972.5 |
73,437.1 |
(1) Partnerships consider extensions proportional
to the capital invested by Eletrobras Companies in the project.
There are 194 large-scale transmission projects under
implementation (Reinforcements, Improvements and auction projects) with an associated RAP of R$958 million, which will add around 89 km
of transmission lines and 4,166 MVA in substations. In September 2023, according to the ONS SGPMR system database, the Eletrobras Companies
had a total of 11,807 small-scale events under implementation, of which 11,134 were small-scale improvements and 673 were small-scale
reinforcements.
| | Earnings Release | 3Q23 | 11 |
Tariff Review
RAP approved for the new 2023/2024 cycle totaling
R$17.6 billion for Eletrobras Companies, which represents an increase of 28.3% compared to the previous cycle.
| 2. | Consolidated result | IFRS |
The results by Company are available for download in Excel on the Eletrobras
IR website.
| DRE (R$ million) |
3Q23 |
3Q22 |
% |
9M23 |
9M22 |
% |
| Generation Revenue |
6,417 |
6,754 |
-5% |
19,395 |
17,355 |
12% |
| Transmission Revenue |
4,067 |
2,924 |
39% |
12,873 |
12,143 |
6% |
| Other Income |
114 |
224 |
-49% |
348 |
736 |
-53% |
| Gross Revenue |
10,599 |
9,901 |
7% |
32,616 |
30,234 |
8% |
| Deductions from Revenue |
-1,818 |
-1,868 |
-3% |
-5,380 |
-5,169 |
4% |
| Net Operating Revenue |
8,781 |
8,033 |
9% |
27,236 |
25,065 |
9% |
| Energy resale, grid, fuel and construction |
-3,060 |
-2,801 |
9% |
-7,945 |
-6,601 |
20% |
| Personnel, Material, Services and Others (1) |
-2,377 |
-2,235 |
6% |
-6,804 |
-5,984 |
14% |
| Depreciation and Amortization |
-925 |
-812 |
14% |
-2,722 |
-1,811 |
50% |
| Operating Provisions |
25 |
-1,529 |
-102% |
1,163 |
-5,794 |
-120% |
| |
2,445 |
656 |
273% |
10,529 |
4,876 |
124% |
| Equity Interests |
659 |
555 |
19% |
1,798 |
1,668 |
8% |
| Regulatory remeasurements - Transmission contracts |
-12 |
362 |
-103% |
-12 |
362 |
-103% |
| Other Income and Expenses |
798 |
32 |
2,372% |
860 |
274 |
213% |
| |
3,890 |
1,606 |
142% |
13,575 |
7,181 |
89% |
| Financial Income |
-3,119 |
-1,819 |
71% |
-9,475 |
-2,696 |
252% |
| Income/Loss Before Tax |
771 |
-213 |
-463% |
4,100 |
4,485 |
-9% |
| Income Tax and Social Contribution |
705 |
213 |
223% |
-266 |
-1,355 |
-80% |
| Net Income from Continuing Operations |
1,477 |
0 |
100% |
3,833 |
3,130 |
22% |
| Net Income from Discontinued Operations |
0 |
0 |
- |
-332 |
987 |
-134% |
| Consolidated Net Income |
1,477 |
-0,1 |
100% |
3,501 |
4,117 |
-15% |
Includes donations and contributions
| | Earnings Release | 3Q23 | 12 |
| Adjusted Income Statement (R$ million) |
3Q23 |
3Q22 |
% |
9M23 |
9M22 |
% |
| Generation Revenue |
6,417 |
6,754 |
-5% |
19,464 |
17,283 |
13% |
| Transmission Revenue |
4,067 |
2,924 |
39% |
12,874 |
12,143 |
6% |
| Other Income |
114 |
224 |
-49% |
348 |
736 |
-53% |
| Gross Revenue |
10,599 |
9,901 |
7% |
32,686 |
30,162 |
8% |
| Deductions from Revenue |
-1,850 |
-1,868 |
-1% |
-5,412 |
-5,162 |
5% |
| Net Operating Revenue |
8,749 |
8,033 |
9% |
27,274 |
25,000 |
9% |
| Energy resale, grid, fuel and construction |
-3,020 |
-2,801 |
8% |
-7,911 |
-6,593 |
20% |
| Personnel, Material, Services and Others (1) |
-1,681 |
-1,951 |
-14% |
-5,342 |
-5,639 |
-5% |
| Depreciation and Amortization |
-925 |
-812 |
14% |
-2,722 |
-1,811 |
50% |
| |
3,124 |
2,469 |
27% |
11,299 |
10,957 |
3% |
| Operating Provisions |
-148 |
-635 |
-77% |
-207 |
-619 |
-66% |
| Equity Interests |
659 |
555 |
19% |
1,798 |
1,668 |
8% |
| |
3,635 |
2,389 |
52% |
12,890 |
12,006 |
7% |
| Financial Income |
-2,366 |
-1,458 |
84% |
-8,049 |
-2,097 |
284% |
| Income Before Tax |
1,270 |
931 |
2% |
4,841 |
9,910 |
-51% |
| Income Tax and Social Contribution |
-161 |
213 |
-176% |
-1,132 |
-1,653 |
-32% |
| Consolidated Net Income |
1,109 |
1,143 |
-31% |
3,709 |
8,257 |
-55% |
| (1) | Includes donations and contributions |
In 3Q23, generation revenue was R$6,417 million,
down R$337 million compared to 3Q22, mainly reflecting lower revenues from: (a) operation and maintenance of R$293 million, (b) supply
of R$141 million, and (c) procurement of R$38 million, partially offset by higher revenues from CCEE of R$140 million.
Revenue from Procurement
Revenue from procurement is obtained from customers
who are not end consumers, such as distributors, traders and generators. In 3Q23, revenue from procurement amounted to R$4,214 million,
a reduction of R$38 million compared to 3Q22.
In the Regulated contracting environment (ACR),
Eletronorte stood out with (i) an increase of R$53 million in ACR sales revenue, due to higher contract prices (3Q22 R$695.65/MWh X 3Q23
R$710.64/MWh) related to the 19.14% readjustments in the fixed revenue of the inflexible portion (90% - IPCA and 10% sale price of natural
gas on the futures market (NYMEX- NG1); (ii) an increase of R$9 million due to the increase in the average MW sold in 3Q23 (19% higher
than 3Q22).
| | Earnings Release | 3Q23 | 13 |
In the Free Contracting Environment (ACL), CGT Eletrosul
had the biggest impact, with a reduction in revenue of R$117.0 million due to the seasonal changes of purchase contracts and physical
guarantees, from 398 MWavg to 340 MWavg. Eletronorte also saw a reduction in revenues of R$138.4 million, mainly due to a 39% reduction
in the MWavg sold (3Q22 1,920.7 MWavg vs. 3Q23 1,172.64 MWavg), caused by decontracting due to breach of contract.
These results were offset, in part, by the increase
of 360 MWavg sold by Chesf in the ACL in 3Q22, for a total amount of R$127 million. This was influenced by the increase in energy available
for sale on the ACL, due to the gradual quota decoupling process of the Quota Plants (20% per year). In addition, Furnas increased its
revenues in the ACL by R$25 million due to the greater amount of energy contracted in the ACL (from 1,835 GWh in 3Q22 to 2,104 GWh in
3Q23).
Revenue from supply
Unlike procurement, revenue from supply is obtained
directly from the end consumer, which can be distributors, traders and generators, as well as various industrial and commercial parks.
In 3Q23, revenue from supply was around R$900 million, down R$141 million compared to 3Q22.
The reduction in supply is mainly explained by the
lower volume of energy sold from the Itumbiara and Sobradinho HPPs to industrial consumers covered by Law 13182 at Furnas and Chesf, respectively.
This reduction was caused by unilateral cancellations by customers of part of the contracted supply volumes. The impact of the reduction
on Chesf and Furnas was R$27 million and R$79 million, respectively, partially offset by the entry of new supply contracts in the ACL,
representing an increase of R$17 million.
In turn, Eletronorte also showed a reduction of R$55
million in supply revenues in 3Q23, of which R$50.8 million was related to the decrease in Albrás' revenues (3Q22 R$379.3 million
X 3Q23 R$328.5 million), due to variations in the parameters defined in the contract and used to calculate the final sale price, which
are: (a) the U.S. dollar; (b) sector charges; (c) an 11% drop in average aluminum prices (US$2.471.84 3Q22 X US$2.199.65 3Q23); and (d)
a 2% drop in the contract price (3Q22 R$204.00/MWh x 3Q23 R$199.58/MWh) due to the negative 2.165% oscillation in the accumulated IGP-M
over the last 12 months, influencing the readjustment of the contract price in 2023. Taken together, these effects led to a reduction
of 13% in the average price (3Q22 R$214.73/MWh X 3Q23 R$186/MWh).
CCEE Revenue
CCEE revenue was R$343 million, up by R$140 million
compared to 3Q22, reflecting in particular the higher CCEE revenue from Eletronorte of R$127 million and R$34 million from Chesf, partially
offset by the reduction of R$25 million from Furnas due to the receipt of various reaccountings that occurred in 3Q22, which led to a
difference in the receipt of charges, leading to a higher result from the Short-Term Market for the period in 2022.
| | Earnings Release | 3Q23 | 14 |
Operation and Maintenance Revenue - Plants Renewed
by Law 12,783/2013
Revenues from operation and maintenance were R$961
million, a drop of R$293 million compared to 3Q22. The negative variation was mainly due to the start of the gradual quota decoupling
process of the Quota Power Plants (20% each year), mitigated by the effects of the RAG annual adjustment of around 16%, according to ANEEL
Resolution No. 3068/2022 (2022-2023 cycle) and ANEEL Resolution No. 3225/2023 (2023-2024 cycle), impacting Eletronorte, Chesf and Furnas.
| Gross Revenue |
3Q23 |
|
|
| Furnas |
Chesf |
CGT Eletrosul |
Eletronorte |
Total |
Disposal |
Consolidated IFRS |
|
|
| |
|
| Procurement |
1,920 |
154 |
391 |
1,816 |
4,281 |
67 |
4,214 |
|
|
| Supply |
313 |
222 |
- |
365 |
900 |
0 |
900 |
|
|
| CCEE |
100 |
56 |
6 |
181 |
343 |
0 |
343 |
|
|
Revenue from Operation
and Maintenance |
324 |
670 |
- |
9 |
1,003 |
42 |
961 |
|
|
Revenue from Construction
of Power Plants |
- |
- |
- |
- |
0 |
0 |
0 |
|
|
| Itaipu Transfer |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
| Generation Revenues |
2,657 |
1,102 |
397 |
2,371 |
6,527 |
110 |
6,417 |
|
|
| Non-recurring items - Adjustments |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
| Adjusted Generation Revenue |
2,657 |
1,102 |
397 |
2,370 |
6,322 |
110 |
6,417 |
|
|
| Gross Revenue |
3Q22 |
|
|
| Furnas |
Chesf |
CGT Eletrosul |
Eletronorte |
Total |
Disposal |
Consolidated IFRS |
|
|
| |
|
| Procurement |
1,859 |
27 |
594 |
1,837 |
4,317 |
65 |
4,252 |
|
|
| Supply |
371 |
249 |
0 |
420 |
1,040 |
-1 |
1,041 |
|
|
| CCEE |
126 |
22 |
1 |
54 |
203 |
1 |
202 |
|
|
Revenue from Operation
and Maintenance |
436 |
808 |
0 |
11 |
1,255 |
0 |
1,255 |
|
|
Revenue from Construction
of Power Plants |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
| Itaipu Transfer |
0 |
0 |
0 |
0 |
0 |
-5 |
5 |
|
|
| Generation Revenues |
2,792 |
1,106 |
595 |
2,322 |
6,815 |
61 |
6,754 |
|
|
| Non-recurring items - Adjustments |
|
|
|
|
0 |
0 |
0 |
|
|
| (-) Reversal of penalties for unavailability - CCEAR |
|
|
-65 |
|
-65 |
-65 |
0 |
|
|
| Adjusted Generation Revenue |
2,792 |
1,106 |
530 |
2,322 |
6,750 |
-4 |
6,754 |
|
|
| | Earnings Release | 3Q23 | 15 |
Generation Revenue by Contracting Environment
Below, we present Eletrobras' commercialization results by contracting
environment.
| Volume (MWavg) |
3Q23 |
3Q22 |
Diff |
% |
| Regulated contract |
3,860 |
3,844 |
16 |
0.4% |
| Hydroelectric quotas |
5,264 |
7,464 |
-2,200 |
-29% |
| Bilateral contract |
5,769 |
6,436 |
-668 |
-10% |
| MCP (Short-Term Trading Market) Settlement |
2,181 |
416 |
1,496 |
227% |
| Revenue (R$ million) |
3Q23 |
3Q22 |
Diff |
% |
| Regulated contract |
2,605 |
2,425 |
180 |
7% |
| Hydroelectric quotas |
961 |
1,255 |
-293 |
-23% |
| Bilateral contract |
2,575 |
2,932 |
-357 |
-12% |
| CCEE |
342 |
202 |
140 |
69% |
| Other * |
-67 |
-60 |
-7 |
12% |
| Average Price (R$/MWh) |
3Q23 |
3Q22 |
Diff |
% |
| Regulated contract |
227.25 |
295.51 |
-68.27 |
-23% |
| Hydroelectric quotas |
82.72 |
76.15 |
6.57 |
9% |
| Bilateral contract |
200.18 |
189.60 |
10.58 |
6% |
| MCP (Short-Term Trading Market) Settlement (PLD) |
69.00 |
66.55 |
2.45 |
4% |
* construction revenue, financial effect of Itaipu and eliminations (accounting
adjustments)
Highlights by Contracting Environment
| ACR (regulated) + R$ 180 million |
Bilateral ACL (free mkt)- R$ 357 million |
CCEE + R$ 140 million |
| + R$ 148 million |
- R$ 359 million |
+ R$ 166 million |
| Contractual readjustments |
Sales reductions/
Contractual terminations |
Increase in volume settled
at higher PLD |
| + R$ 32 million |
- R$ 96 million |
- R$25.5 million |
| SAESA Procurement |
Exports in 3Q22 without
occurrence in 3Q23 |
Furnas: amounts received from
reaccountings, with no counterpart
in 3Q23 |
| |
- R$ 51 million |
|
| |
Variations in contractual industrial parameters (dollar, aluminum price) |
|
| |
+ R$ 169 million |
|
| |
New contracts |
|
| | Earnings Release | 3Q23 | 16 |
Transmission revenue was R$4,067 million in 3Q23,
an increase of 39% from 3Q22, with an increase of R$637 million in contractual transmission revenue, of R$328 million in O&M and R$179
million in construction revenue.
O&M Revenue
O&M revenue increased by R$328 million, mainly
due to the publication of ANEEL Resolution 3216/2023, effective as of July/2023, which mainly includes the tariff readjustment for the
23/24 cycle, as well as the partial recognition of the Periodic Tariff Review (RTP) of some tendered contracts.
The highlights of O&M revenue were the increase
in revenue from: (a) Furnas of R$135 million, especially the increase of R$107 million in O&M revenue from a renewed contract (062/2001),
(b) Chesf of R$48 million, (c) CGT Eletrosul of R$35 million. At Eletronorte, there was a net increase of R$82 million as a result of
an increase of R$62.6 million in revenue from the renewed 058/2001 contract, an increase of R$18.4 million from tendered contracts, an
increase of R$118.6 million relating to CDE and PROINFA, which made up the Other Revenues account in 2022 and were now allocated to O&M
Revenues in 2023, and a negative effect of R$80.2 million relating to Variable Portion and Adjustment Portion.
Construction Revenue
The construction revenue for the periods
is directly related to the investments made (appropriated and allocated) in the transmission projects in progress. Construction revenue
totaled R$805 million, an increase of R$179 million, due to the following increases: (a) Eletronorte of R$159 million, of which R$155
million was investment in works under the renewed contract 058/2001, (b) Furnas of R$145 million: CT 062-2001, in the amount of R$123
million (reflecting investments in fixed assets) and (c) CGT Eletrosul with R$102 million. The volume of construction revenue at Chesf,
in turn, was R$134 million lower than in 3Q22.
It should be noted that there is an annual
adjustment to the balance of the contractual asset arising from the tariff readjustment for the cycle that has just started, i.e. the
2023/2024 cycle, which impacts on 'Transmission Construction Revenues' in the third quarter of each year; the readjustment in 3Q23 was
lower than in 3Q22. As such, although Eletronorte recorded the revenue reported above, there was also a reduction in revenue of R$89.6
million due to the difference in accounting for the quarters compared (-R$22.4 million in 3Q23 x +R$67.2 million in 3Q22).
Contractual Revenue
Contractual (financial) revenue is associated
with the application of inflationary indices to the balances of the contract assets of each concession. The accumulated IPCA from July-September/2022
was -0.37%, and July-September/2023 was 0.27% (an increase of 0.64 p.p.). As for the IGP-M, the percentage varied from 0.10% to -2.77%
(a reduction of 2.87 p.p.).
| | Earnings Release | 3Q23 | 17 |
The impact on Eletrobras companies was:
(a) Furnas: +R$278 million, especially contract 062 (RBNI R$44.43 million and RBSE R$247.41 million); (b) Chesf: +R$200 million; (c) Eletronorte:
+R$108 million (RBNI R$42 million and RBSE R$66 million) and (d) CGT Eletrosul: +R$ 51 million.
This effect results from the application
of IFRS rules and differs from the regulatory revenue, which was adjusted in July 2023, according to ANNEL Resolution no. 3216/23.
Transmission Operating Revenue
(R$ million) |
3Q23 |
3Q22 |
% |
9M23 |
9M22 |
% |
| Transmission Revenues |
4.067 |
2.924 |
39% |
12.873 |
12.143 |
6% |
| Operation and Maintenance Revenue |
1.982 |
1.654 |
20% |
5.612 |
4.765 |
18% |
| Construction Revenue |
805 |
626 |
29% |
1.688 |
1.035 |
63% |
| Contractual Revenue - Transmission |
1.280 |
643 |
99% |
5.573 |
6.343 |
-12% |
| Non-recurring items - Adjustments |
|
|
|
|
|
|
| Adjusted Transmission Operating Revenue |
4.067 |
2.924 |
39% |
12.873 |
12.143 |
6% |
To view revenue by company, please access the financial statements on
the IR website.
Regulatory Revenue
Regulatory transmission revenue between quarters
varied due to: (i) re-profiling of the RBSE of around R$913 million, (ii) monetary restatement by the IPCA (most contracts) or IGP-M,
of around R$147 million; and (ii) new investments, tariff revisions and adjustment installments of around R$52 million. It should be noted
that ANEEL has extended the approval of the full RAP, resulting from the RTP, for concession contracts 057/2001, 058/2001, 061/2001 and
062/2001 to 2024. For more details, see Note 15 to the September 2023 financial statements.
It should be noted that the main difference between
regulatory and IFRS revenue in 3Q23 is related to the increase in RBSE's RAP as a result of the re-profiling reported above. Under IFRS,
the increase in RAP due to the re-profiling does not result in revenue recognition, since the balance of the contractual asset already
provides for the increases in RAP, while under the regulatory method, revenue is only recognized when the RAP is invoiced.
| | Earnings Release | 3Q23 | 18 |
|
IFRS x Regulatory
(R$ million) |
3Q23 |
3Q22 |
Regulatory Variation |
| IFRS |
Adjustments |
Regulatory |
IFRS |
Adjustments |
Regulatory |
| Furnas |
1,601 |
556 |
2,157 |
1,043 |
515 |
1,557 |
38.54% |
| Chesf |
1,198 |
388 |
1,587 |
1,085 |
198 |
1,283 |
23.69% |
| CGT Eletrosul |
502 |
28 |
530 |
314 |
122 |
435 |
21.84% |
| Eletronorte |
813 |
124 |
937 |
556 |
-24 |
532 |
76.13% |
| Eliminations |
-48 |
|
-48 |
0 |
|
0 |
|
| TOTAL |
4,066 |
1,096 |
5,163 |
2,998 |
811 |
3,807 |
35.62% |
|
Other Operating Income
(R$ million) |
3Q23 |
3Q22 |
% |
9M23 |
9M22 |
% |
| Other income |
114 |
224 |
-49% |
348 |
736 |
-53% |
Other revenues were R$114 million in 3Q23, a reduction
of R$109 million compared to 3Q22. The main reasons were: (a) Eletronorte's reduction of R$127 million, reflecting R$120 million from
CDE + PROINFA which made up the Other Revenues account in 3Q22 and were allocated to O&M Revenues in 3Q23, and (b) Holding with
a reduction of R$25 million, R$13.8 million of which being Procel revenues.
| 2.3. | Operating Costs and Expenses |
Operating Costs and Expenses
(R$ million) |
3Q23 |
3Q22 |
% |
9M23 |
9M22 |
% |
| Energy purchased for resale |
-807 |
-1,102 |
-27% |
-2,087 |
-2,142 |
-3% |
| Grid Access Charges |
-876 |
-833 |
5% |
-2,498 |
-1,982 |
26% |
| Fuel for Electricity Production |
-510 |
-444 |
15% |
-1,441 |
-1,542 |
-7% |
| Construction |
-866 |
-422 |
105% |
-1,920 |
-935 |
105% |
| Personnel, Material, Services and Others |
-2,377 |
-2,235 |
6% |
-6,804 |
-5,984 |
14% |
| Depreciation and Amortization |
-925 |
-812 |
14% |
-2,722 |
-1,811 |
50% |
| Regulatory remeasurements - Transmission contracts |
-12 |
362 |
-103% |
-12 |
362 |
-103% |
| Operating provisions |
25 |
-1,529 |
-102% |
1,163 |
-5,794 |
-120% |
| Costs and expenses |
-6,348 |
-7,014 |
-9% |
-16,320 |
-19,827 |
-18% |
| Non-recurring events |
|
|
|
|
|
|
| (-) Non-recurring PMSO events |
696 |
284 |
145% |
1,462 |
345 |
323% |
| (-) Non-recurring provisions |
-173 |
893 |
-119% |
-1,370 |
5,175 |
-126% |
| (-) Construction Generation |
0 |
0 |
- |
0 |
7 |
-100% |
| (-) Regulatory remeasurements - Transmission Contracts |
12 |
-362 |
-103% |
12 |
-362 |
-103% |
| (-) Retroactive ICMS Cal increase |
40 |
0 |
- |
34 |
0 |
- |
| Recurring Costs and Expenses |
-5,773 |
-6,200 |
-7% |
-16,183 |
-14,662 |
10% |
| | Earnings Release | 3Q23 | 19 |
| 2.3.1. | Energy Purchased for Resale |
In 3Q23, energy purchased for resale amounted to
R$807 million, representing a reduction of R$295 million when compared to 3Q22, with the highlights being: (a) Furnas' reduction of R$250
million, due to a drop in the average contracted price (from R$298.00 to R$258.82) and a reduction in volume from 2,263 GWh in 3Q22 to
1,556 GWh in 3Q23; (b) Eletronorte recorded a decrease of R$24 million, mainly attributable to the R$25.9 million reduction in energy
purchase expenses in the short-term market, caused by the increase in surplus energy compared to the same period in 2022.
| 2.3.2. | Grid Access Charges |
In 3Q23, the grid access charge was R$876 million,
an increase of R$44 million compared to 3Q22, mainly due to the publication of ANEEL Resolutions No. 3066/2022 (2022-2023 cycle) and ANEEL
Resolution No. 3217/2023 (2023-2024 cycle). These resolutions had an impact on the operations of Chesf, Eletronorte and Furnas which,
respectively, recorded increases of R$31 million, R$26 million and R$25 million.
| 2.3.3. | Fuel for Electricity Production |
In 3Q23, the costs associated with the use of fuels
to produce electricity totaled R$510 million, up R$66 million compared to 3Q22, driven particularly by Eletronorte's increase of R$74
million, due to the annual readjustment in the price of natural gas of around 6.5%, a 2% increase in the ICMS tax rate and in the natural
gas consumption of 15.08% at the Mauá 3 TPP, because it operates in an open cycle due to the maintenance stoppage. This increase
was partially offset by Furnas' reduction of R$23 million, reflecting the differences in the monthly parameters that make up the price
of gas and readjustments.
In 3Q23, costs related to construction totaled R$866
million, an increase of R$444 million compared to 3Q22, with emphasis on: (a) Furnas with an increase of R$282 million, reflecting investments
linked to CT062; (b) Eletronorte with a positive impact of R$155 million, mainly due to the increase of R$154.4 million in the renewed
contract 058/2001; (c) CGT Eletrosul, a positive R$40 million due to investments in transmission totaling R$122 million; and (d) Chesf,
a reduction of R$34 million mainly reflecting investments made in the transmission projects in progress.
| | Earnings Release | 3Q23 | 20 |
| 2.3.5. | PMSO - Personnel, Material, Services and Other |
Staff
Personnel costs totaled R$972 million in 3Q23, a
reduction of R$168 million compared to R$1,139 million in 3Q22, mainly reflecting savings of R$253 million related to the dismissal of
2,348 employees from the two Voluntary Dismissal Plans (PDV) implemented and an increase of R$47 million related to the 4.18% salary readjustment
under the current Collective Bargaining Agreement. The number of employees fell from 10,476 in 3Q22 to 8,209 in 3Q23, not including SAESA
employees.
Non-recurring: Additional costs of R$22 million related
to PDV in Chesf.
Material
Material costs totaled R$51 million, representing
a reduction of R$22 million compared to 3Q22, due to reductions for operational maintenance at Eletronorte and Chesf.
Services
Costs of services totaled R$601 million, an increase
of R$107 million compared to 3Q22, mainly reflecting costs across: (a) Holding, an increase of R$97 million, mainly due to advisory
and auditing service costs of R$44 million, R$34 million in IT services - Software and R$20 million in institutional advertising; and
(b) Eletronorte with an increase of R$8 million, of which R$5.6 million and R$4.9 million refer, respectively, to advisory and the maintenance
of operational assets.
Non-recurring: R$ 27 million related to consulting
from Transformation Office.
Others
Other costs and expenses totaled R$754 million in
3Q23, up by R$225 million compared to 3Q22, reflecting: (a) higher costs at the Holding, of R$660 million, resulting from non-recurring
adjustments to litigation relates deposits in the amount of R$846 million; (b) lower costs at Furnas, a reduction of R$220 million, largely
due to the transfer of the balance of contributions to CEPEL for P&D non-recurring effect of R$42 million and the reclassification
of judicial indemnities, which are now allocated to Operating provisions; and (c) Eletronorte, with a reduction of R$68 million, mainly
due to the decrease of R$19 million in CEPEL contributions.
PMSO: On a recurring basis, PMSO went down by R$271
million.
| | Earnings Release | 3Q23 | 21 |
|
PMSO
(R$ million) |
3Q23 |
|
|
| Eletrobras |
Furnas |
Chesf |
CGT Eletrosul |
Eletronorte |
Eletropar |
Total |
Disposal |
Consolidated IFRS |
|
|
| |
|
| Staff |
-116 |
-244 |
-233 |
-123 |
-233 |
-1 |
-950 |
0 |
-950 |
|
|
| Voluntary Dismissal Plan (PDV) - Provision |
0 |
0 |
-22 |
0 |
0 |
0 |
-22 |
0 |
-22 |
|
|
| Material |
-1 |
-19 |
-10 |
-4 |
-17 |
0 |
-51 |
0 |
-51 |
|
|
| Services |
-128 |
-197 |
-86 |
-55 |
-133 |
-1 |
-601 |
0 |
-601 |
|
|
| Others |
-821 |
50 |
-188 |
7 |
-25 |
-7 |
-983 |
229 |
-754 |
|
|
| PMSO |
-1,066 |
-411 |
-293 |
-176 |
-407 |
-8 |
-2,360 |
-16 |
-2,377 |
|
|
| Non-recurring events |
|
|
|
|
|
|
|
|
|
|
|
| Personnel: Incentive Plans (PAE, PDV) |
0 |
0 |
22 |
0 |
0 |
0 |
22 |
0 |
22 |
|
|
| Services: Advisory costs associated with the Transformation Plan ("TMO") |
27 |
0 |
0 |
0 |
0 |
0 |
27 |
0 |
27 |
|
|
| Other: Adjustments to judicial deposits (Holding) and transfer of CEPEL balance (Furnas) |
846 |
-42 |
-170 |
14 |
0 |
0 |
648 |
0 |
648 |
|
|
| Recurring PMSO |
-193 |
-453 |
-442 |
-162 |
-407 |
-8 |
-1,664 |
-16 |
-1,680 |
|
|
|
PMSO
(R$ million) |
3Q22 |
|
|
| Eletrobras |
Furnas |
Chesf |
CGT Eletrosul |
Eletronorte |
Eletropar |
Total |
Disposal |
Consolidated IFRS |
|
|
| |
|
| Staff |
-99 |
-315 |
-253 |
-139 |
-332 |
0 |
-1,139 |
0 |
-1,139 |
|
|
| Voluntary Dismissal Plan (PDV) - Provision |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
| Material |
0 |
-15 |
-12 |
-23 |
-23 |
0 |
-73 |
0 |
-73 |
|
|
| Services |
-31 |
-226 |
-82 |
-52 |
-104 |
1 |
-494 |
0 |
-494 |
|
|
| Others |
-161 |
-170 |
-118 |
12 |
-93 |
0 |
-529 |
-1 |
-529 |
|
|
| PMSO |
-291 |
-725 |
-465 |
-202 |
-551 |
0 |
-2,234 |
-1 |
-2,235 |
|
|
| Non-recurring events |
|
|
|
|
|
|
|
|
|
|
|
| Personnel: no non-recurring events |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
| | Earnings Release | 3Q23 | 22 |
| Personnel: no non-recurring events |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
| Services: no non-recurring events |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
| Other: Indemnities, losses and damages: CAEFE (2022)/ Losses Non-reversible assets Furnas |
137 |
92 |
75 |
-20 |
0 |
0 |
284 |
0 |
284 |
|
| Recurring PMSO |
-154 |
-632 |
-390 |
-223 |
-551 |
0 |
-1,950 |
-1 |
-1,951 |
|
For comparative purposes, the PMSO value for 3Q22 has been adjusted at
"other", reflecting the actuarial benefit that is now impacted by the provisions.
| Other Costs and Expenses (R$ million) |
3Q23 |
3Q22 |
| Rent |
26 |
30 |
| Insurance |
49 |
46 |
| Donations and contributions |
55 |
-17 |
| Taxes |
42 |
34 |
| Actuarial |
75 |
-170 |
| Compensation, losses and fines |
281 |
881 |
| Recovery of expenses |
-49 |
-76 |
| Others |
50 |
26 |
| Total |
529 |
754 |
| | Earnings Release | 3Q23 | 23 |
Operating provisions
| Operating Provisions (R$ million) |
3Q23 |
3Q22 |
% |
9M23 |
9M22 |
% |
|
|
| |
|
| Operating Provisions / Reversals |
25 |
-1.529 |
-102% |
1.163 |
-5.794 |
-120% |
|
|
| Non-recurring items / Adjustments |
|
|
|
|
|
|
|
|
| Provision/Reversal for Litigation |
515 |
-874 |
-159% |
1.626 |
-2.237 |
-173% |
|
|
| Estimated losses on investments |
167 |
80 |
109% |
138 |
-826 |
-117% |
|
|
| Provision for Implementation of Actions - Compulsory Loan |
57 |
-30 |
-288% |
17 |
-71 |
-123% |
|
|
| PECLD - Loans and financing |
0 |
-4 |
-100% |
-13 |
-820 |
-98% |
|
|
| PECLD - Consumers and resellers |
0 |
0 |
- |
0 |
-1.307 |
-100% |
|
|
| RGR refund |
-489 |
0 |
- |
-489 |
0 |
- |
|
|
| Onerous contracts |
0 |
-47 |
-100% |
0 |
244 |
-100% |
|
|
Measurement at fair value of assets held
for sale |
92 |
0 |
- |
92 |
0 |
- |
|
|
| Provision for demobilization |
0 |
0 |
- |
0 |
0 |
- |
|
|
| Provision for reduction of Fuel inventories |
0 |
0 |
- |
0 |
0 |
- |
|
|
| Actuarial Reconciliation |
-170 |
75 |
-327% |
0 |
0 |
- |
|
|
| Impairment¹ |
0 |
-92 |
-100% |
0 |
-158 |
-100% |
|
|
| Unadjusted provisions/reversals |
|
|
|
|
|
|
|
|
| PECLD (excluding prospective credit loss estimate (CPC 48) ELN |
-94 |
-529 |
-82% |
-83 |
-361 |
-77% |
|
|
| Other |
-54 |
-106 |
-49% |
-124 |
-258 |
-52% |
|
|
| Adjusted provisions/reversals |
-148 |
-635 |
-77% |
-207 |
-619 |
-66% |
|
|
Positive values in the table above mean a reversal of provision.
| § | Provision for Litigation
went from a provision of R$874 million in 3Q22 to a reversal of provision of R$515 million in 3Q23, mainly due to the conclusion of
legal settlements relating to compulsory loan lawsuits, which went from a provision of R$109 million in 3Q22 to a reversal of R$418 million
in 3Q23 relating to lawsuits regarding monetary restatement of book-entry credits (2nd phase), especially due to the discounts
obtained from the negotiations. |
| § | Losses on investments totaled
R$167 million in 3Q23, with Furnas increasing by R$80 million, mainly due to the recovery of the value of the investment in SPE MESA,
as a result of the recording of the fair values of the investee's assets and liabilities. |
| § | Estimated losses on doubtful
accounts (PECLD) in the amount of R$94 million in 3Q23, with emphasis on (a) Eletronorte, with a provision of R$18 million referring
to the energy supply to clients due to an increase in invoices overdue by more than 180 days and a provision of R$9.6 million for the
supply to Roraima Energia and; (b) Furnas, with the addition of PECLD in the amount of R$ 16 million relating to Geradora de Energia Quinturare
SPE and the constitution of R$ 12 million, referring to the provision for contractual fines; |
| | Earnings Release | 3Q23 | 24 |
| § | Restitution of the global
reversion reserve (RGR): the amount expected to be refunded to the Global Reversion Reserve (RGR) fund as a result of ANEEL's inspection
related to the RGR contracts management from January 2012 to December 2022, under Eletrobras' obligations. This amount takes into account
the preliminary net result of the inspection minus the payment of PIS/COFINS on the financial income that was carried forward in the financial
result. There is no estimated date set for ANEEL's final decision. |
|
Equity Interests
(R$ million) |
3Q23 |
3Q22 |
% |
9M23 |
9M22 |
% |
| Highlights Affiliates |
|
|
|
|
|
|
| Eletronuclear (1) |
212 |
70 |
202% |
413 |
63 |
559% |
| CEB Lajeado |
12 |
0 |
- |
35 |
33 |
5% |
| Cemar |
67 |
29 |
135% |
178 |
82 |
117% |
| CTEEP |
165 |
166 |
-1% |
674 |
602 |
12% |
| Itaipu |
0 |
0 |
- |
0 |
120 |
-100% |
| Lajeado |
46 |
30 |
53% |
104 |
79 |
31% |
| Highlights SPEs |
|
|
|
|
|
|
| BMTE |
57 |
54 |
6% |
158 |
131 |
20% |
| Serra do Facão |
0 |
6 |
-100% |
64 |
-2 |
-2810% |
| Norte Energia |
-143 |
-91 |
56% |
-294 |
-264 |
12% |
| ESBR Jirau |
-9 |
-5 |
59% |
5 |
-39 |
-112% |
| IE Madeira |
37 |
26 |
39% |
160 |
187 |
-14% |
| Chapecoense |
52 |
48 |
9% |
144 |
116 |
24% |
| Other Equity Interests |
162 |
222 |
-27% |
158 |
559 |
-72% |
| Total Equity Interests |
659 |
555 |
19% |
1,798 |
1,668 |
8% |
(1) In 4Q23,
a scheduled shutdown of NPPs Angra 1 and 2 is expected.
| | Earnings Release | 3Q23 | 25 |
|
Financial Results
(R$ million) |
3Q23 |
3Q22 |
% |
9M23 |
9M22 |
% |
|
| |
| Financial Income |
|
|
|
|
|
|
|
| Income from interest, fines, commissions and fees |
16 |
178 |
-91% |
169 |
710 |
-76% |
|
| Income from financial investments |
800 |
688 |
16% |
2,108 |
1,574 |
34% |
|
| Late payment surcharge on electricity |
27 |
161 |
-83% |
115 |
397 |
-71% |
|
| Interest income on dividends |
0 |
68 |
-100% |
0 |
68 |
-100% |
|
| Other financial income |
111 |
203 |
-46% |
368 |
323 |
14% |
|
| (-) Taxes on financial income |
-396 |
-59 |
567% |
-520 |
-271 |
92% |
|
| Financial Expenses |
|
|
|
|
|
|
|
| Debt charges |
-1,653 |
-1,362 |
21% |
-5,195 |
-3,163 |
64% |
|
| CDE obligation charges |
-579 |
-561 |
3% |
-1,699 |
-561 |
203% |
|
| Hydrographic basin revitalization charges |
-89 |
-93 |
-4% |
-265 |
-93 |
184% |
|
| Monetary updates - CDE |
-86 |
119 |
-173% |
-1,167 |
12 |
-9798% |
|
| Monetary updates - hydrographic basins |
-18 |
45 |
-139% |
-243 |
26 |
-1048% |
|
| Other financial expenses |
-195 |
-295 |
-34% |
-614 |
-749 |
-18% |
|
| Net Financial Items |
|
|
|
|
|
|
|
| Monetary changes |
-718 |
-431 |
67% |
-1,483 |
-622 |
138% |
|
| Exchange rate variations |
4 |
-192 |
-102% |
195 |
232 |
-16% |
|
| Change in fair value of hedged debt net of derivative |
-260 |
-287 |
-9% |
-727 |
0 |
- |
|
| Change in derivative financial instrument not linked to debt protection |
-82 |
0 |
- |
-516 |
-576 |
-11% |
|
| Financial Results |
-3,119 |
-1,819 |
71% |
-9,475 |
-2,696 |
252% |
|
| Adjustments |
|
|
|
|
|
|
|
| (-) Income from Distributors + AIC |
-20 |
-235 |
-91% |
-60 |
-594 |
-90% |
|
| (-) Monetary restatement of compulsory loans |
323 |
495 |
-35% |
1,039 |
1,334 |
-22% |
|
| (-) Interest and exchange variation on ITAIPU sale to ENBPar |
0 |
0 |
- |
0 |
-242 |
-100% |
|
| (-) Write-off of unreconciled judicial deposits |
451 |
0 |
- |
451 |
0 |
- |
|
| (-) Tax installment indemnification of reversible assets Tucuruí HPP and Curua-Uma HPP |
0 |
101 |
-100% |
0 |
101 |
-100% |
|
| Adjusted Financial Result |
-2,366 |
-1,458 |
62% |
-8,045 |
-2,097 |
284% |
|
In 3Q23, the financial result was negative
by R$3,119 million, compared to a negative result of R$1,819 million in 3Q22. The main variations in 3Q23 were:
| § | Higher debt charges, which
went from R$1,362 million in 3Q22 to R$1,653 million in 3Q23. This variation was mainly due to the increase in the amount of gross debt,
which rose from R$54.5 billion in 3Q22 to R$70.5 billion in 3Q23 (detailed in item 4), in line with the Company’s liability management
strategy which sought to lengthen maturities and reduce costs. |
| § | In contrast to the increase
in gross debt, there was also an increase in the company's cash balance (Cash and Cash Equivalents + Bonds and Securities) from R$16.7
billion in 3Q22 to R$31.3 billion in 3Q23, with emphasis on funding: at the Holding with a debenture issue of R$ 7 billion, at
Furnas with commercial notes of R$ 3.5 billion and at CGT with a debenture issue of R$ 250 million, impacting the variation in the Income
from Financial Applications account, which went from R$688 million in 3Q22 to R$800 million in 3Q23. |
| | Earnings Release | 3Q23 | 26 |
| § | Monetary restatement (Selic)
on the contingency provision for compulsory loans fell from R$495 million in 3Q22 to R$323 million in 3Q23, due to the reduction in
the provision inventory and the variation in the Selic rate. |
| § | CDE obligation charges and
CDE monetary updates (IPCA financial expenses + charges on the outstanding balance of CDE obligations, the charge being 7.6% per year)
amounted to R$665 million in 3Q23. These obligations were established by Law 14182/21 (Privatization of Eletrobras), as one of the conditions
for obtaining the new concession grants for electricity generation for another 30 years. The charges were calculated from data published
in CNPE Resolution 015/2021: (i) the present value of the obligation; (ii) the future flow of payments; and (iii) the payment term. |
| § | Hydrographic basin revitalization
charges (5.67% charge), of R$89 million in 3Q23, and Monetary updates - hydrographic basins of R$18 million, with no counterpart
in 2Q22. These obligations were established by Law 14182/21 (Privatization of Eletrobras), as one of the conditions for obtaining the
new concession grants for electricity generation for another 30 years. The charges were calculated from data published in CNPE Resolution
015/2021: (i) the present value of the obligation; (ii) the future flow of payments; and (iii) the payment term. |
| § | Monetary variations:
negative monetary restatement of R$451 million referring to the balance of litigation related deposits that recorded under "Other"
account. |
| § | Taxes on financial income:
PIS/Cofins on the Interest on Equity issued by Furnas in the amount of R$323 million. |
CDE Charges and Projects -
Law 14182/2021 |
3Q23 - In R$ million |
| Furnas |
Chesf |
Eletronorte |
Total |
| Debt charges - CDE obligations |
-167 |
-242 |
-170 |
-579 |
| Debt charges - Revitalization of river basins |
-23 |
-36 |
-30 |
-89 |
| Passive monetary restatement - CDE obligations |
-25 |
-36 |
-25 |
-86 |
| Passive monetary updating - Revitalization of river basins |
-5 |
-7 |
-6 |
-18 |
| Total CDE charges and Projects - Law 14.182/2021 |
-219 |
-321 |
-232 |
-772 |
| Income Tax |
3Q23 |
3Q22 |
% |
9M23 |
9M22 |
% |
| Income tax and social contribution - current |
332 |
-383 |
-187% |
-468 |
-1.729 |
-73% |
| Income tax and social contribution - deferred |
373 |
595 |
-37% |
201 |
375 |
-46% |
| Income tax and social contribution - Total |
705 |
213 |
232% |
-266 |
-1.355 |
-80% |
| Adjustments |
|
|
|
|
|
|
| Tax credit Furnas |
-866 |
0 |
- |
-866 |
-298 |
190% |
| Adjusted income tax and social contribution |
-161 |
213 |
-176% |
-1,132 |
-1.653 |
-32% |
| | Earnings Release | 3Q23 | 27 |
In 3Q23, income tax and social contribution
registered a credit balance of R$161 million due to the Furnas Interest on Equity (IOE) operation, which had a positive impact of R$1,190
million in the income tax and social contribution item and R$ 866 million net of PIS/Cofins.
| 2.7.1. | Consolidated EBITDA |
| Consolidated EBITDA (R$ million) |
3Q23 |
3Q22 |
% |
9M23 |
9M22 |
% |
|
|
| |
|
| Results for the year |
1,477 |
0 |
- |
3,501 |
4,117 |
-15% |
|
|
| + Provision for Income Tax and Social Contribution |
-705 |
-213 |
232% |
266 |
1,355 |
-80% |
|
|
| + Financial Result |
3,119 |
1,819 |
71% |
9,475 |
2,696 |
252% |
|
|
| + Amortization and Depreciation |
925 |
812 |
14% |
2,722 |
1,811 |
50% |
|
|
| EBITDA |
4,815 |
2,419 |
99% |
15,965 |
9,978 |
60% |
|
|
| Revenue Adjustments (pages 7, 11 and 13) |
-32 |
0 |
- |
37 |
-57 |
-165% |
|
|
| Cost and Expense Adjustments (pages 19, 22 and 24) |
708 |
-78 |
-1003% |
1,474 |
-17 |
-8624% |
|
|
| Adjustments Provisions (page 24) |
-173 |
893 |
-119% |
-1,370 |
5,175 |
-126% |
|
|
| Adjustments Equity interest |
0 |
0 |
- |
0 |
0 |
- |
|
|
| Adjustments Other Income and Expenses |
-798 |
-32 |
2372% |
-860 |
-274 |
213% |
|
|
| Adjustments Discontinued Operations |
0 |
0 |
- |
332 |
-987 |
-134% |
|
|
| Adjusted EBITDA |
4,560 |
3,201 |
42% |
15,612 |
13,817 |
13% |
|
|
| | Earnings Release | 3Q23 | 28 |
Gross debt reached R$70.5 billion, an increase
of R$13.8 billion compared to 2Q23, mainly impacted by the fundraising operations carried out in 3Q23 by Eletrobras, Furnas and CGT Eletrosul,
as well as the consolidation of SPE Teles Pires' indebtedness, effects which compounded an increase in the debt balance of approximately
R$13.7 billion compared to the previous quarter. It should be noted that this position at the end of 3Q23 does not take into account the
repayment made in the first half of October of Eletrobras' Commercial Note, amounting to approximately R$6.2 billion, which led to a subsequent
reduction in Eletrobras' consolidated indebtedness.
Considering the repayment, the average term
of the debt was lengthened by around six months and its cost was reduced by 21 bps, resulting in an average cost of CDI + 1.0845% p.a.
at the end of the period. The net debt/adjusted EBITDA ratio reached 2.0x in 3Q23.
| 3.1. | Holding / Parent Company and Consolidated |
| 3.1.1. | Loans and financing payable - R$ billion |
| Net Debt (R$ million) |
09/30/23 |
06/30/23 |
| (+) Gross Debt |
70,511 |
56,717 |
| (+) Derivatives (currency hedge) Net |
479 |
681 |
| (-) (Cash and Cash Equivalents + Current Securities) |
31,276 |
18,626 |
| (-) Financing receivable |
422 |
428 |
| (-) Net balance of Itaipu Financial Assets (1) |
184 |
260 |
| Net Debt |
39,107 |
38,085 |
1 See Note 18b to the Financial Statements.
Highlight: Since 3Q22, Eletrobras' debt has been substantially affected
by the consolidation of SAESA's gross debt.
| | Earnings Release | 3Q23 | 29 |
| Creditor |
Index |
Average cost (per year) |
Total Balance
(R$000) |
Share of Total (%) |
| Debentures, FIDC and other securities |
CDI |
CDI + 1.00% to 1.80%,
108% to 117.6% CDI |
19,250,999 |
27.30% |
| Debentures and other securities |
IPCA |
IPCA + 3.75% to 7.494% |
14,558,641 |
20.65% |
| BNDES |
TJLP, TLP (IPCA),
Pre-fixed rate |
TJLP to TJLP + 3.28%,
TLP + 3.90%, 3.50% |
8,859,970 |
12.57% |
| Banco do Brasil |
TJLP, TLP (IPCA), CDI |
TJLP 1.89% to 2.13%, CDI + 1.65%
to 2.25%, 107.5% to 115% CDI,
TLP + 4.7% |
5,941,146 |
8.43% |
Petrobras /
Vibra Energia |
Selic |
Selic |
3,169,448 |
4.49% |
| Caixa Econômica Federal |
TLP (IPCA) |
TLP + 4.7% |
2,414,691 |
3.42% |
| Banco do Nordeste do Brasil |
IPCA, TLP (IPCA),
TFC (IPCA), Pre-fixed rate |
IPCA + 2.74%, TLP + 4.70%, 2.94%
to 8.62%, TFC + 1.53% to 3.3467% |
1,657,635 |
2.35% |
| Other creditors |
CDI, TLP (IPCA), TJLP + 5.00% p.a., Pre-fixed rate |
TLP + 4.70%, CDI + 1.60% to 2.49%, 122.84% CDI, 2.94% to 8.5% |
7,624,768 |
10.81% |
| Foreign Currency - Bonds and other debt* |
USD |
2.41% to 4.63%, SOFR |
6,819,762 |
9.67% |
| Foreign currency - other debts |
EUR |
2,00% a 4,50% |
214,208 |
0.30% |
| TOTAL |
70,511,268 |
100% |
* For accounting purposes, debt is recorded in the original currency of
the loan agreement.
However, it should be noted that the company has carried out currency hedge
operations for some of its foreign currency debts, which with their respective equivalent rates (post hedge) linked to the CDI are as
follows: 2025 Bond - 97.41% of CDI; 2030 Bond - CDI+1.70% p.a. and; Citibank - CDI + 1.70% p.a.
|
Currency Exposure
(US$ million) |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
After 2028 |
Total |
| Asset |
14.81 |
9.87 |
- |
- |
- |
- |
- |
24.68 |
| Liability |
2.33 |
4.08 |
4.08 |
4.08 |
4.08 |
2.57 |
21.56 |
42.78 |
| Currency exposure |
12.48 |
5.79 |
-4.08 |
-4.08 |
-4.08 |
-2.57 |
-21.56 |
-18.09 |
| | Earnings Release | 3Q23 | 30 |
| 4. | Loans and Financing (Receivables) |
| 4.1. | Holding / Parent Company and Consolidated |
In billions of reais
This does not include receivables from Itaipu's financial assets in the
amount of R$ 184.1 million, PCLD in the amount of R$3,989 million and current charges.
In April 2023, ANEEL issued Technical Note 085/2023,
which deals with the comments on the calculations presented as part of the payment of the RBSE financial component in Technical Note 085/2022-SGT/ANEEL
of June 2022, which revisited the requests for reconsideration filed as part of the payment of the financial component and re-profiling
of the RBSE. The above-mentioned document does not constitute a decision by ANEEL and therefore has no practical effect up to the date
of publication of this document, since it depends on a decision by ANEEL's collegiate body. Therefore, it had no impact on ANEEL Resolution
3216, which established the RAPs for the 2023-2024 cycle.
| | Earnings Release | 3Q23 | 31 |
|
Expected flow RBSE
R$ million |
23-24 |
24-25 |
25-26 |
26-27 |
27-28 |
| Financial Component Re-profiled with Social Charges |
|
|
|
|
|
| Chesf |
1,913 |
1,913 |
1,913 |
1,913 |
1,913 |
| Eletronorte |
893 |
893 |
893 |
893 |
893 |
| CGT Eletrosul |
418 |
418 |
418 |
418 |
418 |
| Furnas |
3,060 |
3,060 |
3,060 |
3,060 |
3,060 |
| Total |
6,284 |
6,284 |
6,284 |
6,284 |
6,284 |
| Economic Component with Social Charges |
|
|
|
|
|
| Chesf |
1,262 |
258 |
760 |
760 |
760 |
| Eletronorte |
649 |
- 87 |
281 |
281 |
281 |
| CGT Eletrosul |
213 |
- 52 |
81 |
81 |
81 |
| Furnas |
2,051 |
587 |
1,319 |
1,319 |
1,319 |
| Total |
4,175 |
706 |
2,441 |
2,441 |
2,441 |
| Total RBSE |
|
|
|
|
|
| Chesf |
3,175 |
2,171 |
2,673 |
2,673 |
2,673 |
| Eletronorte |
1,542 |
806 |
1,174 |
1,174 |
1,174 |
| CGT Eletrosul |
631 |
366 |
499 |
499 |
499 |
| Furnas |
5,111 |
3,647 |
4,379 |
4,379 |
4,379 |
| Total |
10,459 |
6,990 |
8,725 |
8,725 |
8,725 |
The figures above include TFSEE (Electricity
Services Inspection Fee) charges and funds for R&D and Energy Efficiency, and do not include PIS and COFINS. In addition, the data
refers to the tariff cycle (July to July of each year) and not the calendar year (January to December). The amounts approved in the re-profiling
have been updated by the IPCA.
| 4.2.1. | RBSE Amortization - Accumulated (R$ million) |
| Chesf |
CGT Eletrosul |
Eletronorte |
Furnas |
Total |
| 1,896 |
380 |
919 |
2.935 |
6,130 |
| | Earnings Release | 3Q23 | 32 |
In 3Q23, investments totaled R$1,864 million, 34%
more than in 2Q23. In 9M23, investments totaled R$4,371 million, up 22% compared to 9M22, with emphasis on:
Generation
Investments in generation totaled R$1,488 million
in 9M23, with the following highlights:
| § | Implementation and Expansion: CGT Eletrosul's
investments of R$465 million in the implementation of materials for the Coxilha Negra Wind Farm; Furnas' investments of R$183 million
in the Santa Cruz TPP commissioning of Combined Cycle, and Chesf's investments of R$31 million in the Casa Nova A and B wind farms. |
| § | Maintenance: Chesf with R$458 million
to replace equipment at Paulo Afonso IV and Sobradinho; Eletronorte with R$179 million, especially at Tucuruí and Mauá 3
TPP; and Furnas with R$95 million, mainly at Serra da Mesa HPP, Santa Cruz TPP and Furnas HPP. |
Transmission
Investments in transmission totaled R$2,143 million
in 9M23, with the following standing out:
| § | Chesf - R$805 million in reinforcements, improvements,
and maintenance due to the modernization of substations (R$260 million) and improvements to transmission lines (R$64 million), which total
247 projects. |
| § | Furnas - R$672 million, with emphasis on the
Itumbiara substation and the replacement of the synchronization system in 46 locations. |
| § | Eletronorte - R$382 million in reinforcements
and maintenance, of which R$240 million in 49 large-scale projects. |
| § | CGT Eletrosul - R$152 million in various reinforcement,
improvement, and maintenance projects, of which large-scale reinforcements and improvements amounted to around R$115 million in 38 projects. |
|
Investments made
(R$ million) |
3Q23 |
2T23 |
9M23 |
9M22 |
3Q23 X
2T23 |
3Q23 X
3Q22 |
9M23 X
9M22 |
| Generation Corporate |
484 |
528 |
1,488 |
540 |
-8% |
56% |
176% |
| Implementation / Expansion |
193 |
223 |
691 |
157 |
-13% |
157% |
341% |
| Maintenance |
291 |
305 |
797 |
383 |
-5% |
23% |
108% |
| Transmission Corporate |
953 |
718 |
2,143 |
1,152 |
33% |
79% |
86% |
| Expansion |
56 |
46 |
131 |
158 |
22% |
-29% |
-17% |
| Reinforcements and improvements |
736 |
481 |
1,398 |
418 |
53% |
235% |
235% |
| | Earnings Release | 3Q23 | 33 |
| Maintenance |
161 |
191 |
613 |
576 |
-16% |
-31% |
6% |
| Infrastructure and Others |
93 |
97 |
257 |
223 |
-4% |
-9% |
15% |
| SPEs |
334 |
48 |
483 |
1,661 |
596% |
657% |
-71% |
| Generation - Contributions |
- |
27 |
56 |
1,648 |
- |
- |
-97% |
| Generation - Acquisition |
334 |
0.3 |
398 |
- |
- |
- |
- |
| Transmission - Contributions |
- |
21 |
29 |
13 |
- |
- |
128% |
| Transfer - Acquisition |
- |
- |
- |
- |
- |
- |
- |
| Total |
1,864 |
1,391 |
4,371 |
3,575 |
34% |
88% |
22% |
| PILLAR |
INDICATOR |
3Q23 |
3Q22 |
Variation |
Results Analysis |
| Prosperity |
Investment in Technology and Innovation |
385,033,775 |
368,994,093 |
4.3% |
Target of 1.4% investment in Technology and Innovation over Net Operating Revenue achieved in the calculation period. |
| Planet |
Greenhouse Gas Emissions (Scopes 1, 2 and 3) (tCO e)2 |
3,928,562 |
4,145,277 |
-5.2% |
Reduction in Greenhouse
Gas (GHG) emissions,
in line with the
company's
decarbonization strategy. |
| | Earnings Release | 3Q23 | 34 |
| People |
Accident Frequency Rate - own employees (with time off) |
2.3 |
3.4 |
-32.4% |
3Q22: 48 accidents. |
| 3Q23: 29 accidents. |
| The reduction in the "Accident Frequency Rate - own employees (with time off)" is due to actions arising from the occupational health and safety (OHS) culture program, launched in 2020 with the support of external consultants, which focused on company employees. As a follow-up, a new OHS culture project was launched this year through the "Tá Ligado" and "Manifesta pela Vida" campaigns, which are being rolled out in initiatives for the entire workforce. |
| Women in the workforce (%) |
17.9% |
19.0% |
-5.4% |
Movements in the workforce are the result of the Voluntary
Dismissal Plans and organizational restructuring, with fewer managerial positions. |
| Management positions held by women (%) |
23.6% |
24.5% |
-3.7% |
| Governance |
Risk Management Maturity Level |
3 |
3 |
0.0% |
The target for 2022 was Level 3 in risk management maturity, which was achieved. For 2023 the target was raised to 4, with the maximum level being 5. |
|
Investigation of complaints dealt with in the
term (%) |
95% |
97% |
-2.0% |
This reduction was impacted by a specific issue in which the area manager left under the voluntary dismissal program. This caused some delays which have already been mitigated by the current protocols, but the result remains better than the target. |
Note: The figures presented are partial, preliminary,
and not assured, and may be adjusted in line with the processes of calculating, verifying, and updating the data.
| | Earnings Release | 3Q23 | 35 |
| 7.1. | Annex 1 - Financial Statements |
| |
PARENT COMPANY |
|
CONSOLIDATED |
| ASSETS |
09/30/2023 |
|
12/31/2022 |
|
09/30/2023 |
|
12/31/2022 |
| CURRENT |
|
|
|
|
|
|
|
| Cash and cash equivalents |
10,563,580 |
|
4,927,871 |
|
21,005,003 |
|
10,739,126 |
| Restricted cash |
479,847 |
|
2,917,849 |
|
674,649 |
|
3,098,401 |
| Securities and bonds |
2,548,017 |
|
3,611,904 |
|
10,271,350 |
|
12,193,654 |
| Clients |
1 |
|
462,628 |
|
5,257,407 |
|
4,794,924 |
| Transmission contract assets |
- |
|
- |
|
11,628,133 |
|
9,349,126 |
| Financing and loans |
1,148,154 |
|
1,524,088 |
|
328,470 |
|
692,839 |
| Remuneration of equity interests |
4,667,849 |
|
3,028,085 |
|
372,019 |
|
707,875 |
| Taxes and Contributions |
1,251,706 |
|
857,466 |
|
1,651,350 |
|
1,135,913 |
| Income tax and social contribution |
896,173 |
|
261,321 |
|
2,946,992 |
|
1,749,225 |
| Right to compensation |
1,003,612 |
|
1,186,214 |
|
1,043,281 |
|
1,216,928 |
| Warehouse |
213 |
|
262 |
|
452,858 |
|
429,310 |
| Receivables - ENBPAR |
- |
|
40,743 |
|
- |
|
40,743 |
| Derivative financial instruments |
- |
|
- |
|
378,695 |
|
501,355 |
| Others |
315,754 |
|
926,061 |
|
1,747,119 |
|
2,285,349 |
| |
22,874,906 |
|
19,744,492 |
|
57,757,326 |
|
48,934,768 |
| |
|
|
|
|
|
|
|
| Assets held for sale |
221,970 |
|
320,691 |
|
277,754 |
|
688,359 |
| |
23,096,876 |
|
20,065,183 |
|
58,035,080 |
|
49,623,127 |
| |
|
|
|
|
|
|
|
| NON-CURRENT |
|
|
|
|
|
|
|
| LONG-TERM ASSETS |
|
|
|
|
|
|
|
| Restricted cash |
- |
|
- |
|
1,786,969 |
|
1,306,138 |
| Right to compensation |
1,501,845 |
|
2,048,517 |
|
1,641,723 |
|
2,124,907 |
| Financing and loans |
6,845,134 |
|
3,366,460 |
|
93,739 |
|
328,806 |
| Clients |
- |
|
- |
|
666,715 |
|
703,055 |
| Receivables - ENBPAR |
- |
|
1,223,316 |
|
- |
|
1,223,316 |
| Securities |
427,170 |
|
411,705 |
|
844,268 |
|
412,093 |
| Taxes and Contributions |
4,582 |
|
3,705 |
|
465,968 |
|
439,196 |
| Deferred income tax and social contribution |
- |
|
- |
|
3,502,430 |
|
3,541,162 |
| Bonds and linked deposits |
3,911,967 |
|
6,402,122 |
|
6,900,268 |
|
8,558,013 |
| Transmission contract assets |
- |
|
- |
|
48,880,409 |
|
51,703,084 |
| Derivative financial instruments |
- |
|
- |
|
94,939 |
|
485,507 |
| Advances for future capital increases |
- |
|
20,596,029 |
|
- |
|
- |
| Others |
1,564,786 |
|
1,755,305 |
|
1,045,409 |
|
1,063,250 |
| |
14,255,484 |
|
35,807,159 |
|
65,922,837 |
|
71,888,527 |
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| INVESTMENTS |
|
|
|
|
|
|
|
| Assessed through the equity method |
131,413,591 |
|
112,079,558 |
|
33,487,644 |
|
32,224,264 |
| Held at fair value |
1,437,612 |
|
1,657,261 |
|
1,492,612 |
|
1,761,258 |
| |
132,851,203 |
|
113,736,819 |
|
34,980,256 |
|
33,985,522 |
| |
|
|
|
|
|
|
|
| FIXED ASSETS |
205,947 |
|
231,883 |
|
38,781,711 |
|
34,739,705 |
| |
|
|
|
|
|
|
|
| INTANGIBLE ASSETS |
88,118 |
|
67,857 |
|
79,087,125 |
|
79,980,581 |
| |
|
|
|
|
|
|
|
| |
147,400,752 |
|
149,843,718 |
|
218,771,929 |
|
220,594,335 |
| |
|
|
|
|
|
|
|
| TOTAL ASSETS |
170,497,628 |
|
169,908,901 |
|
276,807,009 |
|
270,217,462 |
| | Earnings Release | 3Q23 | 36 |
| |
PARENT COMPANY |
|
CONSOLIDATED |
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
09/30/2023 |
|
12/31/2022 |
|
09/30/2023 |
|
12/31/2022 |
| CURRENT |
|
|
|
|
|
|
|
| Loans, financing and debentures |
12,203,346 |
|
3,682,702 |
|
15,937,802 |
|
7,524,770 |
| Compulsory loans - Agreements |
1,846,786 |
|
- |
|
1,846,786 |
|
- |
| Compulsory loans |
1,288,856 |
|
1,289,602 |
|
1,288,856 |
|
1,289,602 |
| Suppliers |
95,511 |
|
994,922 |
|
2,513,438 |
|
3,517,173 |
| Advances |
3,513 |
|
1,486,222 |
|
159,332 |
|
1,653,122 |
| Taxes and Contributions |
379,739 |
|
370,739 |
|
969,340 |
|
1,271,700 |
| Income tax and social contribution |
- |
|
- |
|
108,599 |
|
- |
| Shareholder remuneration |
41,815 |
|
913,018 |
|
47,954 |
|
924,644 |
| Personnel obligations |
169,473 |
|
166,337 |
|
1,568,705 |
|
2,318,554 |
| Compensation obligations |
14,961 |
|
1,912,423 |
|
14,961 |
|
1,912,423 |
| Post-employment benefits |
- |
|
- |
|
302,234 |
|
246,437 |
| Provisions for disputes |
2,144,209 |
|
2,646,711 |
|
2,540,596 |
|
2,709,161 |
| Sector charges |
- |
|
- |
|
907,169 |
|
996,610 |
| Obligations under Law 14182/2021 |
- |
|
- |
|
2,105,872 |
|
1,472,662 |
| Leases |
10,930 |
|
8,710 |
|
228,153 |
|
224,319 |
| Others |
74,559 |
|
74,919 |
|
372,482 |
|
209,251 |
| |
18,273,698 |
|
13,546,305 |
|
30,912,279 |
|
26,270,428 |
| |
|
|
|
|
|
|
|
| Liabilities associated with assets held for sale |
- |
|
- |
|
- |
|
170,448 |
| |
18,273,698 |
|
13,546,305 |
|
30,912,279 |
|
26,440,876 |
| |
|
|
|
|
|
|
|
| NON-CURRENT |
|
|
|
|
|
|
|
| Loans, financing and debentures |
19,410,131 |
|
22,269,941 |
|
54,573,468 |
|
51,581,752 |
| Advances |
- |
|
- |
|
104,318 |
|
213,921 |
| Provisions for disputes |
17,339,486 |
|
22,084,048 |
|
26,308,965 |
|
30,623,558 |
| Post-employment benefits |
665,491 |
|
680,399 |
|
4,809,692 |
|
4,947,234 |
| Obligations under Law 14182/2021 |
- |
|
- |
|
36,423,512 |
|
35,186,792 |
| Onerous contracts |
- |
|
- |
|
209,099 |
|
209,099 |
| Leases |
27,693 |
|
32,571 |
|
371,286 |
|
528,849 |
| Concessions payable - Use of public assets |
- |
|
- |
|
552,456 |
|
372,420 |
| Advances for future capital increases |
95,544 |
|
86,919 |
|
95,544 |
|
86,919 |
| Derivative financial instruments |
478,821 |
|
- |
|
478,821 |
|
- |
| Sector charges |
- |
|
- |
|
442,528 |
|
464,358 |
| Taxes and Contributions |
- |
|
- |
|
606,537 |
|
723,716 |
| Deferred income tax and social contribution |
342,968 |
|
427,390 |
|
5,456,098 |
|
6,294,347 |
| Others |
745,681 |
|
276,532 |
|
2,288,610 |
|
1,514,985 |
| |
39,105,815 |
|
45,857,800 |
|
132,720,934 |
|
132,747,950 |
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
| Share capital |
69,991,640 |
|
69,705,554 |
|
69,991,640 |
|
69,705,554 |
| Capital Reserves and Granted Equity Instruments |
13,878,262 |
|
13,867,170 |
|
13,878,262 |
|
13,867,170 |
| Treasury shares |
(1,972,514) |
|
- |
|
(1,972,514) |
|
- |
| Profit reserves |
33,910,233 |
|
33,910,233 |
|
33,910,233 |
|
33,910,233 |
| Retained earnings |
4,073,448 |
|
- |
|
4,073,448 |
|
- |
| Other accumulated comprehensive income |
(6,762,954) |
|
(6,978,161) |
|
(6,762,954) |
|
(6,978,161) |
| Controlling shareholders |
113,118,115 |
|
110,504,796 |
|
113,118,115 |
|
110,504,796 |
| |
|
|
|
|
|
|
|
| Non-controlling shareholders |
- |
|
- |
|
55,681 |
|
523,840 |
| |
|
|
|
|
|
|
|
| TOTAL SHAREHOLDERS' EQUITY |
113,118,115 |
|
110,504,796 |
|
113,173,796 |
|
111,028,636 |
| |
|
|
|
|
|
|
|
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
170,497,628 |
|
169,908,901 |
|
276,807,009 |
|
270,217,462 |
| | Earnings Release | 3Q23 | 37 |
| |
PARENT COMPANY |
|
CONSOLIDATED |
| |
09/30/2023 |
|
12/31/2022 |
|
09/30/2023 |
|
12/31/2022 |
| CONTINUED OPERATIONS |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Net operating revenue |
93,997 |
|
139,207 |
|
27,236,793 |
|
25,064,955 |
| |
|
|
|
|
|
|
|
| Operating costs |
(73) |
|
(16,605) |
|
(13,142,453) |
|
(10,900,767) |
| |
|
|
|
|
|
|
|
| GROSS INCOME |
93,924 |
|
122,602 |
|
14,094,340 |
|
14,164,188 |
| |
|
|
|
|
|
|
|
| Operating expenses |
(432,991) |
|
(2,355,635) |
|
(3,165,615) |
|
(9,288,197) |
| |
|
|
|
|
|
|
|
| Regulatory remeasurements - Transmission contracts |
- |
|
- |
|
(12,144) |
|
362,392 |
| |
|
|
|
|
|
|
|
OPERATING INCOME BEFORE
FINANCIAL INCOME |
(339,067) |
|
(2,233,033) |
|
10,916,581 |
|
5,238,383 |
| |
|
|
|
|
|
|
|
| FINANCIAL INCOME |
(2,986,055) |
|
(189,062) |
|
(9,475,192) |
|
(2,695,516) |
| |
|
|
|
|
|
|
|
| INCOME BEFORE EQUITY INVESTMENTS |
(3,325,122) |
|
(2,422,095) |
|
1,441,389 |
|
2,542,867 |
| |
|
|
|
|
|
|
|
| Income from equity investments |
7,310,182 |
|
5,223,640 |
|
1,798,391 |
|
1,667,870 |
| |
|
|
|
|
|
|
|
| Other income and expenses |
4,088 |
|
574,658 |
|
859,931 |
|
274,366 |
| |
|
|
|
|
|
|
|
| OPERATING INCOME BEFORE TAXES |
3,989,148 |
|
3,376,203 |
|
4,099,711 |
|
4,485,103 |
| |
|
|
|
|
|
|
|
| Current income tax and social contribution |
608 |
|
(271,638) |
|
(467,723) |
|
(1,729,398) |
| Deferred income tax and social contribution |
- |
|
- |
|
201,480 |
|
374,515 |
| |
|
|
|
|
|
|
|
| NET INCOME FROM CONTINUED OPERATIONS |
3,989,756 |
|
3,104,565 |
|
3,833,468 |
|
3,130,220 |
| |
|
|
|
|
|
|
|
| Share attributable to controlling shareholders |
3,989,756 |
|
3,104,565 |
|
3,989,756 |
|
3,104,565 |
| Share attributable to non-controlling shareholders |
- |
|
- |
|
(156,288) |
|
25,655 |
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| DISCONTINUED OPERATIONS |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| NET INCOME FROM DISCONTINUED OPERATIONS |
(332,014) |
|
986,785 |
|
(332,014) |
|
986,785 |
| |
|
|
|
|
|
|
|
| Share Attributable to Controlling Shareholders |
(332,014) |
|
986,785 |
|
(332,014) |
|
986,785 |
| |
|
|
|
|
|
|
|
| NET INCOME FOR THE PERIOD |
3,657,742 |
|
4,091,350 |
|
3,501,454 |
|
4,117,005 |
| |
|
|
|
|
|
|
|
| Share attributable to Controlling Shareholders |
3,657,742 |
|
4,091,350 |
|
3,657,742 |
|
4,091,350 |
| Share attributable to non-controlling interests |
- |
|
- |
|
(156,288) |
|
25,655 |
| |
|
|
|
|
|
|
|
| EARNINGS PER SHARE |
|
|
|
|
|
|
|
| Earnings per share - basic (ON) |
R$1.40 |
|
R$2.18 |
|
R$1.40 |
|
R$2.18 |
| Earnings per share - basic (PN) |
R$1.55 |
|
R$2.40 |
|
R$1.55 |
|
R$2.40 |
| Earnings per share - diluted (ON) |
R$1.23 |
|
R$2.14 |
|
R$1.23 |
|
R$2.14 |
| Earnings per share - diluted (PN) |
R$1.35 |
|
R$2.36 |
|
R$1.35 |
|
R$2.36 |
| |
|
|
|
|
|
|
|
| Continued Operations |
|
|
|
|
|
|
|
| Earnings per share - basic (ON) |
R$1.55 |
|
R$1.65 |
|
R$1.55 |
|
R$1.65 |
| Earnings per share - basic (PN) |
R$1.71 |
|
R$1.82 |
|
R$1.71 |
|
R$1.82 |
| Earnings per share - diluted (ON) |
R$1.37 |
|
R$1.62 |
|
R$1.37 |
|
R$1.62 |
| Earnings per share - diluted (PN) |
R$1.51 |
|
R$1.79 |
|
R$1.51 |
|
R$1.79 |
| | Earnings Release | 3Q23 | 38 |
| 7.1.3. | Cash Flow Statement |
| |
PARENT COMPANY |
|
CONSOLIDATED |
| |
09/30/2023 |
|
12/31/2022 |
|
09/30/2023 |
|
12/31/2022 |
| OPERATIONAL ACTIVITIES |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Income for the period before income tax and social contribution |
3,989,148 |
|
3,376,203 |
|
4,099,711 |
|
4,485,103 |
| |
|
|
|
|
|
|
|
| Adjustments to reconcile profit with cash generated by operations: |
|
|
|
|
|
|
|
| Depreciation and amortization |
32,768 |
|
8,380 |
|
2,722,255 |
|
1,810,620 |
| Exchange and monetary variations, net |
1,179,258 |
|
508,415 |
|
2,698,369 |
|
352,552 |
| Financial charges |
706,116 |
|
(593,081) |
|
4,882,627 |
|
1,465,795 |
| Equity income |
(7,310,182) |
|
(5,223,640) |
|
(1,798,391) |
|
(1,667,870) |
| Other income and expenses |
(4,088) |
|
(574,658) |
|
(859,931) |
|
(274,366) |
| Transmission revenues |
- |
|
- |
|
(12,873,894) |
|
(12,142,930) |
| Construction cost - transmission |
- |
|
- |
|
1,919,759 |
|
927,448 |
| Regulatory remeasurements - Transmission contracts |
- |
|
- |
|
12,144 |
|
(362,392) |
| Operating provisions (reversals) |
(1,269,184) |
|
1,629,576 |
|
(1,162,997) |
|
5,793,684 |
| Result of hedged debt and derivatives |
720,901 |
|
- |
|
1,243,157 |
|
576,408 |
| Other |
977,887 |
|
9,019 |
|
920,773 |
|
(427,732) |
| |
(4,966,524) |
|
(4,235,989) |
|
(2,296,129) |
|
(3,948,783) |
| |
|
|
|
|
|
|
|
| (Increases)/decreases in operating assets |
|
|
|
|
|
|
|
| Clients |
1,339 |
|
- |
|
(667,908) |
|
(510,004) |
| Right to compensation |
364,234 |
|
337,087 |
|
291,791 |
|
348,990 |
| Others |
461,576 |
|
699,141 |
|
545,118 |
|
265,396 |
| |
827,149 |
|
1,036,228 |
|
169,001 |
|
104,382 |
| Increases/(decreases) in operating liabilities |
|
|
|
|
|
|
|
| Suppliers |
(881,548) |
|
12,552 |
|
(956,367) |
|
254,073 |
| Advances |
(3,243) |
|
- |
|
(123,927) |
|
166,827 |
| Personnel obligations |
3,136 |
|
10,917 |
|
(893,879) |
|
9,327 |
| Sector charges |
- |
|
- |
|
(130,911) |
|
221,323 |
| Others |
477,789 |
|
(156,395) |
|
563,733 |
|
(811,218) |
| |
(403,866) |
|
(132,926) |
|
(1,541,351) |
|
(159,668) |
| |
|
|
|
|
|
|
|
| Payment of financial charges |
(1,495,840) |
|
(1,008,362) |
|
(3,818,905) |
|
(2,150,600) |
| Receipt of annual permitted revenue - RAP |
- |
|
- |
|
13,383,639 |
|
10,716,047 |
| Receipt of financial charges |
736,160 |
|
531,789 |
|
368,619 |
|
257,973 |
| Receipt of remuneration for equity investments |
2,314,835 |
|
2,896,572 |
|
846,299 |
|
1,092,659 |
| Payment of disputes |
(1,351,125) |
|
(1,851,531) |
|
(1,727,316) |
|
(2,013,742) |
| Bonds and linked deposits |
(390,811) |
|
(426,442) |
|
(617,068) |
|
(888,159) |
| Payment of income tax and social contribution |
(164,126) |
|
(219,126) |
|
(1,852,177) |
|
(2,451,751) |
| Supplementary pension payments |
(14,908) |
|
(30,149) |
|
(397,856) |
|
(331,908) |
| |
|
|
|
|
|
|
|
| Net cash provided by (used in) operating activities of continued operations |
(919,908) |
|
(63,732) |
|
6,616,467 |
|
4,711,553 |
| Net cash provided by operating activities of discontinued operations |
19,990 |
|
- |
|
19,990 |
|
(2,908,844) |
| Net cash provided by (used in) operating activities |
(899,918) |
|
(63,732) |
|
6,636,457 |
|
1,802,709 |
| |
|
|
|
|
|
|
|
| | Earnings Release | 3Q23 | 39 |
| FINANCING ACTIVITIES |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Loans, financing and debentures |
7,000,000 |
|
44,746 |
|
11,823,049 |
|
2,544,746 |
| Payment of loans, financing and debentures - principal |
(1,582,454) |
|
(3,540,193) |
|
(4,102,639) |
|
(5,358,847) |
| Payment of remuneration to shareholders |
(863,402) |
|
(916,031) |
|
(768,615) |
|
(811,700) |
Payment to dissenting shareholders - incorporation
of shares |
(212) |
|
- |
|
(226,117) |
|
- |
| Share buyback |
(1,823,729) |
|
- |
|
(1,823,729) |
|
- |
| Payment of CDE obligations and revitalization of basins - principal |
- |
|
- |
|
(1,433,737) |
|
- |
| Lease payments - principal |
(4,622) |
|
- |
|
(574,095) |
|
(540,369) |
| Others |
- |
|
- |
|
226 |
|
- |
| |
|
|
|
|
|
|
|
| Net cash (used in) financing activities of continued operations |
2,725,581 |
|
(4,411,478) |
|
2,894,343 |
|
(4,166,170) |
| Net cash (used in) financing activities of discontinued operations |
- |
|
- |
|
- |
|
(174,814) |
| Net cash (used in) financing activities |
2,725,581 |
|
(4,411,478) |
|
2,894,343 |
|
(4,340,984) |
| |
|
|
|
|
|
|
|
| INVESTMENT ACTIVITIES |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Acquisition of debentures |
(200,000) |
|
- |
|
(200,000) |
|
- |
| Grant of advance for future capital increase |
- |
|
(26,526,187) |
|
- |
|
- |
| Payment of share capital |
- |
|
30,749,280 |
|
- |
|
30,749,280 |
| Receipt of loans and financing |
1,686,888 |
|
2,557,193 |
|
1,159,246 |
|
1,711,612 |
| Acquisition of fixed assets |
(6,338) |
|
(6,892) |
|
(2,206,751) |
|
(916,120) |
| Acquisition of intangible assets |
(20,270) |
|
(4,656) |
|
(76,973) |
|
(31,950,441) |
| Net financial investments (Securities) |
1,063,888 |
|
(1,574,988) |
|
2,343,678 |
|
3,649,461 |
| Transmission infrastructure - contractual asset |
- |
|
- |
|
(1,897,985) |
|
(934,772) |
| Acquisition/capital contribution to shareholdings |
(2,108) |
|
(188,367) |
|
(121,081) |
|
(235,789) |
| Disposal of equity investments |
355,941 |
|
1,103,398 |
|
908,271 |
|
1,103,398 |
| Net cash in business combination |
- |
|
- |
|
55,839 |
|
180,203 |
| Others |
- |
|
- |
|
(161,213) |
|
23,472 |
| |
|
|
|
|
|
|
|
| Net cash provided by investing activities of continued operations |
2,878,000 |
|
6,108,782 |
|
(196,969) |
|
3,380,304 |
| Net cash (used in) investing activities of discontinued operations |
932,046 |
|
- |
|
932,046 |
|
3,079,754 |
| Net cash provided by (used in) investing activities |
3,810,046 |
|
6,108,782 |
|
735,077 |
|
6,460,058 |
| |
|
|
|
|
|
|
|
| Increase (decrease) in cash and cash equivalents |
5,635,709 |
|
1,633,572 |
|
10,265,877 |
|
3,921,783 |
| |
|
|
|
|
|
|
|
| Cash and cash equivalents at the beginning of the period |
4,927,871 |
|
7,384 |
|
10,739,126 |
|
192,659 |
| Cash and cash equivalents at the end of the period |
10,563,580 |
|
1,640,956 |
|
21,005,003 |
|
4,118,346 |
| (Decrease) in cash and cash equivalents from discontinued operations |
- |
|
- |
|
- |
|
(3,904) |
| |
5,635,709 |
|
1,633,572 |
|
10,265,877 |
|
3,921,783 |
| | Earnings Release | 3Q23 | 40 |
| 7.2. | Annex 2 - Results by Segment |
| R$ million |
3Q23 |
3Q22 |
% |
9M23 |
9M22 |
% |
| Net Operating Revenue |
30 |
38 |
-21% |
95 |
139 |
-32% |
| Operating costs |
0 |
4 |
-100% |
0 |
-17 |
-100% |
| Operating expenses |
-1,219 |
-468 |
160% |
-437 |
-2,359 |
-81% |
Operating income before
financial income |
-1,189 |
-426 |
179% |
-342 |
-2,237 |
-85% |
| R$ million |
3Q23 |
3Q22 |
% |
9M23 |
9M22 |
% |
| Net Operating Revenue |
5,517 |
5,857 |
-6% |
16,460 |
15,243 |
8% |
| Operating costs |
-3,572 |
-3,668 |
-3% |
-10,184 |
-8,817 |
16% |
| Operating expenses |
-75 |
-1,004 |
-93% |
-958 |
-3,815 |
-75% |
Operating income before
financial income |
1,870 |
1,185 |
58% |
5,318 |
2,611 |
104% |
| R$ million |
3Q23 |
3Q22 |
% |
9M23 |
9M22 |
% |
| Net Operating Revenue |
3,375 |
2,288 |
48% |
11,131 |
10,091 |
10% |
| Operating costs |
-1,303 |
-967 |
35% |
-3,399 |
-2,454 |
39% |
| Operating expenses |
-309 |
-1,423 |
-78% |
-1,778 |
-3,136 |
-43% |
| Regulatory remeasurements - Transmission contracts |
-12 |
362 |
-103% |
-12 |
362 |
-103% |
Operating income before
financial income |
1,751 |
260 |
573% |
5,942 |
4,863 |
22% |
| | Earnings Release | 3Q23 | 41 |
| 7.3. | Annex 3 - Compulsory Loan |
Within the scope of the compulsory loan on electricity
(ECE) lawsuits, which discuss the monetary restatement of book-entry credits, the Company has been taking steps to mitigate the risks
involved and has created the Compulsory Loan Department, with the aim of strengthening strategic action in legal defenses and seeking
court settlements with discounts and the full settlement of the respective lawsuits.
As a result of these negotiations, in 3Q23 Eletrobras
reduced its inventory by R$3,085 million to R$19,055 million, mainly as a result of the agreements reached and the transfer of R$2,088
million to a specific current liability item after signing the legal agreements whose payments have not yet been made. In the same period,
the provision was reversed by R$418 million, especially due to the discounts obtained from the negotiations, which had a positive impact
on the result.
In the financial income, monetary adjustment
fell from R$495 million in 3Q22 to R$323 million in 3Q23 due to the reduction in the provisioned inventory, as mentioned above.
Since 3Q22, when negotiations on the compulsory
loan began and the inventory was R$25.8 billion, there has been a net reduction in the provisioned inventory of R$6.8 billion, despite
the accumulated monetary restatement of R$1,319 million between the periods, which is in line with the company's strategy of reducing
legal liabilities. In the same compared period, there was also an elimination of off-balance risk of R$2.8 billion, of which R$510 million
in possible and R$2.3 billion in remote risks. Finally, with the settlement negotiations carried out under the project, judicial deposits
and other guarantees offered in court, such as shares in affiliates, amounting to around R$1.3 billion, were released.
* Taking into consideration that Eletrobras has already
entered into legal agreements with Creditors, which are only awaiting ratification for due payment, the amounts have been reclassified
to liabilities.
| | Earnings Release | 3Q23 | 42 |
| 7.4. | Annex 4 - IFRS x Regulatory reconciliation |
| |
CVM Result - corporate |
|
Regulatory Result |
|
|
|
CVM Result - corporate |
|
Regulatory Result |
|
|
| |
07/01/2023 to 09/30/2023 |
|
07/01/2023 to 09/30/2023 |
|
Differences |
|
07/01/2022 to 09/30/2022 |
|
07/01/2022 to 09/30/2022 |
|
Differences |
| OPERATING REVENUES |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Generation |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Procurement |
4,213,764 |
|
4,213,764 |
|
- |
|
4,251,522 |
|
4,251,522 |
|
- |
| Supply |
899,552 |
|
899,552 |
|
- |
|
1,040,628 |
|
1,040,628 |
|
- |
| CCEE |
342,653 |
|
342,653 |
|
- |
|
202,333 |
|
202,333 |
|
- |
| Operation and maintenance revenue |
961,498 |
|
961,498 |
|
- |
|
1,254,957 |
|
1,254,957 |
|
- |
| Revenue from construction of Power Plants |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
| Rate of return updates - Generation |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
| Itaipu transfer |
- |
|
- |
|
- |
|
4,748 |
|
4,748 |
|
- |
| |
|
|
|
|
- |
|
- |
|
|
|
- |
| Transmission |
|
|
|
|
- |
|
- |
|
|
|
- |
| |
|
|
|
|
- |
|
- |
|
|
|
- |
| Operation and maintenance revenue - Renewed Lines |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
| Operation and maintenance revenue |
1,981,651 |
|
2,024,172 |
|
(42,521) |
|
1,654,499 |
|
1,654,499 |
|
- |
| Financial - Return on Investment - RBSE |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
| Construction revenue |
805,097 |
|
- |
|
805,097 |
|
625,988 |
|
- |
|
625,988 |
| Contract revenue - Transmission |
1,280,433 |
|
- |
|
1,280,433 |
|
643,101 |
|
- |
|
643,101 |
| Transmission System Availability (Rap) |
|
|
3,138,398 |
|
(3,138,398) |
|
- |
|
2,152,865 |
|
(2,152,865) |
| |
|
|
|
|
- |
|
- |
|
|
|
- |
| Other income |
114,356 |
|
114,356 |
|
0 |
|
223,648 |
|
152,986 |
|
70,662 |
| |
|
|
|
|
- |
|
- |
|
|
|
- |
| Deductions |
|
|
|
|
- |
|
- |
|
|
|
- |
| |
|
|
|
|
- |
|
- |
|
|
|
- |
| (-) Sector charges |
(527,743) |
|
(527,743) |
|
- |
|
(662,224) |
|
(662,224) |
|
- |
| (-) ICMS |
(260,577) |
|
(260,577) |
|
- |
|
(250,238) |
|
(250,238) |
|
- |
| (-) PASEP and COFINS |
(1,028,436) |
|
(1,028,436) |
|
- |
|
(953,395) |
|
(953,458) |
|
63 |
| (-) Other Deductions |
(818) |
|
(818) |
|
- |
|
(2,553) |
|
(2,553) |
|
- |
| |
|
|
|
|
- |
|
- |
|
|
|
- |
| Net operating revenue |
8,781,430 |
|
9,876,819 |
|
(1,095,389) |
|
8,033,014 |
|
8,846,065 |
|
(813,051) |
| |
|
|
|
|
- |
|
- |
|
|
|
- |
| OPERATING COSTS |
|
|
|
|
- |
|
- |
|
|
|
- |
| |
|
|
|
|
- |
|
- |
|
|
|
- |
| Personnel, Material and Services |
(810,388) |
|
(810,388) |
|
- |
|
(931,730) |
|
(931,730) |
|
- |
| Energy purchased for resale |
(807,438) |
|
(986,747) |
|
179,309 |
|
(1,101,863) |
|
(1,270,754) |
|
168,891 |
| Charges for use of the electricity grid |
(876,260) |
|
(876,260) |
|
- |
|
(832,854) |
|
(906,201) |
|
73,347 |
| Fuel for electricity production |
(510,415) |
|
(510,415) |
|
- |
|
(443,521) |
|
(443,521) |
|
- |
| Construction |
(865,601) |
|
- |
|
(865,601) |
|
(422,317) |
|
- |
|
(422,317) |
| Depreciation |
(444,771) |
|
(845,206) |
|
400,435 |
|
(436,198) |
|
(895,161) |
|
458,963 |
| Amortization |
(402,586) |
|
(404,274) |
|
1,688 |
|
(324,000) |
|
(324,002) |
|
2 |
| Operating provisions/reversals |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
| Other costs |
1,129 |
|
(5,898) |
|
7,027 |
|
1,668 |
|
8,659 |
|
(6,991) |
| | Earnings Release | 3Q23 | 43 |
| Operating costs |
(4,716,330) |
|
(4,439,188) |
|
(277,142) |
|
(4,490,815) |
|
(4,762,710) |
|
271,895 |
| |
|
|
|
|
- |
|
- |
|
|
|
- |
| GROSS INCOME |
4,065,100 |
|
5,437,631 |
|
(1,372,531) |
|
3,542,199 |
|
4,083,355 |
|
(541,156) |
| |
|
|
|
|
- |
|
- |
|
|
|
- |
| OPERATING EXPENSES |
|
|
|
|
- |
|
- |
|
|
|
- |
| |
|
|
|
|
- |
|
- |
|
|
|
- |
| Personnel, Material and Services |
(790,428) |
|
(790,428) |
|
- |
|
(773,905) |
|
(773,905) |
|
- |
| Voluntary Dismissal Program |
(21,861) |
|
(21,861) |
|
- |
|
- |
|
- |
|
- |
| Remuneration and compensation |
- |
|
|
|
- |
|
- |
|
- |
|
- |
| Depreciation |
(70,053) |
|
(68,676) |
|
(1,377) |
|
(42,436) |
|
(41,089) |
|
(1,347) |
| Amortization |
(7,255) |
|
(7,255) |
|
- |
|
(9,756) |
|
(9,756) |
|
- |
| Donations and contributions |
20,673 |
|
20,673 |
|
- |
|
(54,894) |
|
(54,894) |
|
- |
| Operating provisions/reversals |
24,918 |
|
(3,448) |
|
28,366 |
|
(1,528,690) |
|
(1,551,553) |
|
22,863 |
| Other expenses |
(775,780) |
|
(772,568) |
|
(3,212) |
|
(476,263) |
|
(446,950) |
|
(29,313) |
| Operating expenses |
(1,619,786) |
|
(1,643,563) |
|
23,777 |
|
(2,885,944) |
|
(2,878,147) |
|
(7,797) |
| |
|
|
|
|
|
|
|
|
|
|
|
| Regulatory remeasurements - Transmission contracts |
(12,144) |
|
- |
|
(12,144) |
|
362,392 |
|
- |
|
362,392 |
| |
|
|
|
|
|
|
|
|
|
|
|
| OPERATING INCOME BEFORE FINANCIAL INCOME |
2,433,170 |
|
3,794,068 |
|
(1,360,898) |
|
1,018,647 |
|
1,205,208 |
|
(186,561) |
| |
|
|
|
|
- |
|
- |
|
|
|
- |
| FINANCIAL INCOME |
(3,119,159) |
|
(2,980,435) |
|
(138,724) |
|
(1,818,829) |
|
(1,687,291) |
|
(131,538) |
| |
|
|
|
|
- |
|
- |
|
|
|
- |
| INCOME BEFORE EQUITY INVESTMENTS |
(685,989) |
|
813,633 |
|
(1,499,622) |
|
(800,182) |
|
(482,083) |
|
(318,099) |
| |
|
|
|
|
- |
|
- |
|
|
|
- |
| Income from equity investments |
658,826 |
|
598,185 |
|
60,641 |
|
555,285 |
|
477,089 |
|
78,196 |
| |
|
|
|
|
- |
|
- |
|
|
|
- |
| Other income and expenses |
798,397 |
|
798,397 |
|
- |
|
32,304 |
|
34,434 |
|
(2,130) |
| |
|
|
|
|
- |
|
- |
|
|
|
- |
| OPERATING INCOME BEFORE TAX |
771,234 |
|
2,210,215 |
|
(1,438,981) |
|
(212,593) |
|
29,440 |
|
(242,033) |
| |
|
|
|
|
- |
|
- |
|
|
|
- |
| Current income tax and social contribution |
332,011 |
|
332,011 |
|
- |
|
(382,510) |
|
(382,510) |
|
- |
| Deferred income tax and social contribution |
373,342 |
|
248,037 |
|
125,305 |
|
595,015 |
|
402,901 |
|
192,114 |
| |
|
|
|
|
- |
|
|
|
|
|
- |
| NET INCOME FOR THE PERIOD |
1,476,587 |
|
2,790,263 |
|
(1,313,676) |
|
(88) |
|
49,831 |
|
(49,919) |
| | Earnings Release | 3Q23 | 44 |
| | Earnings Release | 3Q23 | 45 |
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.
Date: November 8, 2023
| CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS |
| |
|
|
| By: |
/S/ Eduardo Haiama
|
|
| |
Eduardo Haiama
Vice-President of Finance and Investor Relations |
|
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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