SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549



FORM 6-K/A

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934

For the month of September, 2019

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

 

 

Page

Conference Call in Portuguese

August  13, 2019

14:30 PM (GMT)

13:30 PM (New York time)

18:30 PM (London time)

Phone: (11) 3137-8037  

Conference Call in English

August 13, 2019

2:30 PM (GMT)

1:30 PM (New York time)

6:30 PM (London time)

Phones: (11) 3137-8037

(+1) 786 837 9597 (USA)

(+44) 20 3318 3776 (London)

Contact RI:

[email protected]

www.eletrobras.com.br/ri

Tel: (55) (21) 2514-6333

Preparation of the Report to Investors:

 

Superintendent of Investor Relations

Paula Prado Rodrigues Couto

Capital Market Department

Bruna Reis Arantes

Alexandre Santos Silva

Andreia Martins F. Theobaldo

Fernando D'Angelo Machado

Luiz Gustavo Braga Parente

Maria Isabel Brum de A. Souza

Mariana Lera de Almeida Cardoso

Interns

Flávia Alessandra Barbosa Bezerra

Juliana C. M. Cardelli de Oliveira

Introduction

03

I.  Analysis of the Consolidated Result

06

II.  Analysis of the Parent Company's Result

19

III.  General information

23

IV. Anexos: 1.  Controlled Financial Information

                  2.  Controlled Financial Analysis

                  3.  Controlled Operational Information and SPEs

34

 

 

 

 

 

 

 

 

 


The Investors Report - Appendices I, II and III can be found at excel on our website: www.eletrobras.com.br/ri




Get to know the Eletrobras IR Ombudsman, an exclusive platform for receiving and forwarding suggestions, complaints, compliments and requests from protesters regarding the securities market on our Investor Relations website

 

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Rio de Janeiro, August 12, 2019 - A Eletrobras (Centrais Elétricas Brasileiras S.A.) [B3: ELET3 e ELET6 – NYSE: EBR e EBR-B – LATIBEX: XELTO e XELTB], the largest company in the Latin American electricity sector, operating in the generation, transmission and commercialization segment, controlling company of 8 subsidiaries, a holding company - Eletropar - a research center - Cepel and holding 50% of Itaipu Binacional and the direct control of 6 Special Purpose Companies, announces its results for the period.

In the first half of 2019 (1H19), Eletrobras posted net income of R$ 6,908 million, 272% higher than the net income of R$ 1,856 million in the first half of 2018 (1H18). The 1H19 profit is composed of Net Income from continuing operations of R$ 1,871 million and Net Income of R$ 5,037 million from discontinued operations (distribution), highlighting the privatization of the distribution company Amazonas Energia, which is no longer consolidated by Eletrobras.

Net Operating Revenue increased by 9.2%, from R$ 11,997 million in 1H18 to R$ 13,095 million in 1H19, highlighting the entry into operation of Amazonas GT TPP Mauá 3 and receipt of GAG Improvement relative to concessions renewed by Law 12,783 / 2013. Ebtida IFRS increased from R$ 6,078 million in 1H18 to R$ 4,287 million in 1H19, strongly impacted by the CCC provision related to credits granted by Amazonas Energia Distribuidora to Eletrobras, in the privatization process, in the amount of R$ 986 million and write-off. of investments made by Chesf, due to the expiration of the concession, in the net amount of about R$ 200 million recurring Net Operating Revenue grew by 8%, from R$ 11,980 million in 1H18 to R$ 12,926 million in 1H19 . Recurring Ebtida went from R$ 6,140 million in 1H18 to R$ 6,034 million in 1H19.

In the second quarter of 2019 (2Q19), Eletrobras posted a net income of R$ 5,561 million, higher than the R$ 1,372 million in the second quarter of 2018 (2Q18). Net income in 2Q19 is composed of Net Income from continuing operations of R$ 301 million and Net Income of R$ 5,260 million from discontinued operations (distribution).

Net Operating Revenue increased by 12%, from R$ 5,913 million in 2Q18 to R$ 6,643 million in 2Q19. Ebtida IFRS went from R$ 3,535 million in 2Q18 to R$ 1,350 million in 2Q19. Recurring Net Operating Revenue grew by 11%, from R$ 5,901 million in 2Q18 to R$ 6,570 million in 2Q19. Recurring Ebtida went from R$ 2,888 million in 2Q18 to R$ 3,113 million in 2Q19 presenting an increase of 7.8%. The  highlights of 2Q19 are presented below:

2Q19 HIGHLIGHTS

 

»Net Income of R$ 5,561 million;

»Net Operating Revenue of R$ 6,643 million, influenced by the increase in revenue of Amazonas GT by R$ 727 million with the start of supply of CCEAR of TPP Mauá 3, RBSE of R$ 984 million; GAG improvement of R$ 250 million;

»CVM EBITDA of R$ 1,350 million and Recurring Management EBITDA of R$ 3,113 million

»Net Debt / Recurring EBITDA (LTM) at 06/30/2019 = 2.0;

»Gain obtained from the reversal of Amazonas Energia's negative equity, resulting from the privatization process, in the amount of R$ 5,260 million;

»RBSE Fair Value gain, resulting from the variation of the NTN-B discount rate, in the amount of R$ 1,694 million;

»Provision related to CCC credits assigned by Amazonas Energia to Eletrobras, in the amount of R$ 921 million;

»Provisions for contingencies in the amount of R$ 329 million;

»Reversal of onerous contracts of R$ 248 million;

 

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R$ Million

1H19

1H18

%

 

2H19

2H18

%

66.5

67.3

-1.2%

Energy Sold - Generation GWh (1)

49,3

50,3

-2.0%

15,975

14,328

11%

Gross Revenue

8,058

7,089

14%

15,806

14,312

10%

Recurring Gross Revenue (2)

7,985

7,076

13%

13,095

11,997

9%

Net operating revenue

6,643

5,913

12.4%

12,926

11,980

8%

Recurring Net Operating Revenue (2)

6,570

5,901

11%

4,287

6,078

-29%

EBITDA

1,350

3,535

-62%

6,034

6,140

-2%

Recurring EBITDA (3)

3,113

2,888

7.8%

1,871

2,846

-34%

Net Income from Continuing Operations

301

452

-33%

6,908

1,856

272%

Net Profit

5,561

1,372

305%

1,092

1,854

-41%

Investiments

578

978

-41%

(1) Does not consider the energy allocated to quotas of the plants renewed by Law 12,783 / 2013 and exceptionally Itaipu; (2) Procel Retroactive Recipe; (3) Excludes item (2), Extraordinary Retirement Plan (PAE) and Consensus Resignation Plan (PDC) costs, independent investigation expenses, Extraordinary Holding Consulting and Inepar / Furnas lawsuit expenses, retroactive payment to Enel for TUSD Eletronuclear, elimintations adjustments contingency provisions, onerous contracts, Impairment, Provision for investment losses, Provision for investment losses classified as held for sale, Adjustment provisions at market value, Provision relating to Water Refusal Inspection Fee (TFRH), Provision ANEEL CCC; Third Party Debt PCLD with RGR (CCEE onlending); (4) Excludes item (3) and monetary restatement for compulsory.

 

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ANALYSIS OF CONSOLIDATED RESULTS (R$ million)

1H19

1H18

Statement of income

2Q19

2Q18

10,943

8,776

Generation Revenue

5,321

4,252

4,590

5,329

Transmission Revenue

2,529

2,765

442

223

Other Recipes

208

71

15,975

14,328

Gross Revenue

8,058

7,089

-2,880

-2,331

Deductions from Revenue

-1,415

-1,176

13,095

11,997

Net Operating Revenue

6,643

5,913

-2,864

-2,459

Operational costs

-1,575

-1,358

-4,360

-4,293

Personnel, Material, Services and Others

-2,314

-2,034

-873

-835

Depreciation and amortization

-445

-418

-2,029

198

Operational Provisions

-1,506

785

2,969

4,608

 

803

2,887

445

635

Shareholdings

102

230

3,414

5,243

 

905

3,117

89

-860

Financial Result

412

-1,884

3,504

4,383

Income Before Tax

1,317

1,233

-1,632

-1,536

Income tax and social contribution

-1,016

-781

1,871

2,846

Net Income From Continuing Operations

301

452

5,037

-991

Net Loss on Taxes of Discontinued Operations

5,260

919

6,908

1,856

Net Income

5,561

1,372

 

 

1S19

1S18

Recurring Statement of income*

2Q19

2Q18

10,930

8,759

Generation Revenue Managerial

5.311

4.240

4,590

5,329

Transmission Revenue Managerial

2.529

2.765

286

223

Other Recipes Managerial

144

71

15,806

14,312

Gross Revenue Managerial

7.985

7.076

-2,880

-2,331

Deductions from Revenue

-1.415

-1.176

12,926

11,980

Net Operating Revenue Managerial

6.570

5.901

-2,851

-2,343

Operational costs Managerial

-1,394

-1,247

-4,027

-3,967

Personal, Material, Services and Others Managerial

-2,139

-1,996

-873

-835

Depreciation and amortization

-445

-418

-276

-165

Operational Provisions Managerial

-26

0,2

4,899

4,670

 

2,566

2,240

262

635

Shareholdings Managerial

102

230

5,161

5,305

 

2,668

2,470

341

-1,665

Financial Result Managerial

535

-1,749

5,502

3,640

Managerial income before tax

3,203

721

-1,632

-1,536

Income tax and social contribution

-1,016

-781

3,870

2,104

Managerial net income

2,187

-60

*  Non recurring adjustments mentionend in the highlights.

 

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I.1 Main variations of DRE

Income Statement Variations (2Q19 x 2Q18)

The 2Q19 Results recorded a 305% variation compared to 2Q18, with a Net Income of R$ 5,561 million in 2Q19, compared to a net income of R$ 1,372 million in 2Q18, in particular due to the following factors:

Operating income

 

Generation Revenue

2Q19

 2Q18

%

Variation

Supply of energy for distribution companies

3,567

2,831

26.0

The variation was mainly due to: (i) the increase in revenues of amazonas GT (+ R$ 727 million) related to revenues from independent producers PIES and four gas-fired power plants that were received from Amazonas Distribuidora following the decentralization in December 2018 and beginning supply of CCEAR by Amazonas GT (Mauá 3); (ii) + R$ 105 million in Furnas, for the higher amount of secondary energy in 2019 and increase of ACL by R$ 112 million; (iii) R$ 49 million related to the sale (resale) of energy imported from Uruguay by Holding.

Supply of energy for final consumers

571,4

571,3

0.03

The variation is mainly due: (i) In  Furnas, there was revenue growth mainly due to the new contracts that started supplying after 06/30/2018, which had a positive impact on revenues of R$ 22 million and the price adjustment of contracts in force at the auctions of the Itumbiara, governed by Law 13,182 / 2015, specific to end consumers, resulting in a revenue increase of R$ 7 million, compensatade by (ii) a reduction of around 70 average MW of Chesf in the consumption of industrial customers reached by Law 13,182/2015 (Sobradinho HPP) and problem occurred in the plant of an industrial consumer in the state of Alagoas, in the months May and June / 2019, served by Chesf.

CCEE (short term)

280

199

40.4

The variation is mainly due to the following reason: (i) + R$ 135 million revenue growth in the subsidiary Eletronorte, due to (a) Short-term Market Differences due to the 996 MWm increase in unsold energy surplus, despite the 67% reduction in the average PLD in the period, from R$ 244.66 to R$ 80.22; (b) the impact of GSF (2Q18: 0.6 x 2Q19: 0.87) on revenue was 9% lower than in 2Q18; and (c) the suspension of the application of the FID - unavailability factor, which in 2Q18 represented a 4.27% reduction in the physical guarantee, without application in 2019; (ii) In subsidiary Furnas, the largest amount of secondary energy in 2019, which was partially traded in the ACL and the other portion traded in the short term market, representing a revenue increase of R$ 15 million.

Operating and Maintenance Revenue - Renewable Power Plants by Law 12,783

844

542

55.7

The variation is mainly due to the following reasons: (i) Annual update disclosed through ANEEL Homologation Resolution 2421; (ii) Revision of the GAGs calculation methodology for the 2018-2019 cycle, with increase in the total GAG value with GAG recognition improvement of around R$ 250 million;

Construction Revenue

10

12

-21.5

The variation was mainly due to (i) lower level of investment made in 2019. As regards generation construction revenue, it has an equivalent value in construction expenses and, therefore, has no effect on income.

Transfer Itaipu (see II.3.a)

50

97

-48.8

The variation was mainly due to (i) the variation in the tariff on which the monetary restatement calculated based on the US Commercial Price and Industrial goods indices, and also due to the recognition of the inter-ministerial decree that determines the revenue rom Itaipu.

TOTAL GENERATION REVENUES

5,321

4,252

25.1

The variation was mainly due to the factors explained above.

(-) Construction Revenue from Generation

-10

-12

-21.5

 

RECURRING GENERATION REVENUES

5,311

4,240

25.3

 The variation was mainly due to the factors explained above.

 
   

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Transmission Revenues

2Q19

2Q18

%

Variation

Revenue from Operation and Maintenance

(LT Renovated Law 12.783 / 2013)

1,037

857

21.1

The variation is due to the following reasons: (i) increase of R$ 60 million in subsidiary Furnas mainly due to a 9% increase in CT 062/2001 O&M revenues, with an increase of R$ 34 million (2018 = R$ 367 million and 2019 = R$ 401 million) and RBNI revenue from the same CT062 / 2001, with an increase of R$ 26 million, according to Homologation Resolution 2408/2018; (ii) the effect in 2Q18 of the elimination, in the consolidated, of transactions between group companies of around R$ 199 million.

O & M Revenue

175

212

-17.2

The variation is mainly due to the following reasons: (i) impact on the receipt of RAP from CT 034/2001 (Ibiúna-Bateias), where there was a decrease in RAP from R$ 56 million to R$ 36 million in the period, due to step established in this concession agreement, due to the depreciation of the asset.

Construction Revenue

124

304

-59.2

The variation is mainly due to the lower volume of investments compared to the previous year;

Finance - Return on Investment - RBSE

984

1,265

-22.2

The variation is mainly due to (i) the remuneration of the financial assets of the Existing System Basic Network (RBSE) for renewed transmission lines pursuant to Law 12,783 / 2013, and the decrease in remuneration between periods is due to the beginning of monthly amortization of assets, which began in August 1H17, highlighting Furnas (-R$ 212 million) and Chesf (-R$ 72 million), as per ratification Resolution 2408/2018.

 

Contractual Revenue - Transmission

209

129

61.7

The variation is mainly due to the following reasons: (i) In subsidiary Chesf, higher recording of remuneration on financial assets due to the entry of new ventures during 2018, highlighting Contract 61 (reinforcements and improvements); (ii) In subsidiary Eletrosul, consolidation, as of September 2018, of SPE TSBE.

TOTAL TRANSMISSION REVENUE

2,529

2,765

-8.6

The variation was mainly due to the factors explained above.

 

 

 

 

 

 RECURRING TRANSMISSION REVENUE

2,529

2,765

-8.6

The variation was mainly due to the factors explained above.

 

Other Revenues

2Q19

2Q18

%

Variation

Other Revenues

208

71

194

The variation is mainly due to: (i) a gain of R$ 29 million from the sale of Transleste, Transudeste and Transirapé SPEs; (ii) registration of gain on disposal of SPEs of R$ 35.2 million, inherent to the Etau and Uirapuru SPEs; (iii) In subsidiary Eletrosul, recognition in 2Q19 of revenue from studies and technical reports prior to auctions.

(-) Procel  Retroactive

-64

0

 

 

OTHER REVENUE PRÓ FORM

144

71

103

 

   

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Operating Costs and Expenses

OPERATIONAL COSTS

2Q19

2Q18

%

Variation

Energy purchased for resale

-466

-306

52.2

The variation was mainly due to: (i) increase R$ 71 million, in the subsidiary Amazonas GT, related to the incorporation of energy purchase agreements from independent producers - PIES in 2Q19. The average price of PIE´s contracts is R$ 733.19 / MWh and the contracted energy is 305 average MW /month. (ii) In Holding, R$ 49 million related to the purchase of energy (for resale) from Uruguay; (iii) In subsidiary Chesf, the amount contracted in 2Q19 increased by approximately 42 average MW due to the seasonality of purchase contracts and average price adjustment of contracts equivalent to R$ 6.63 / MWh.

Charges on the use of electricity

-576

-531

8.3

The variation is mainly due to the reallocation of accounts at Chesf (CHESF G's TUST charge to CHESF T being now accounted for as operating expense - R$ 23.4 million) and the effect of the consolidation of operations between group companies.

Fuel for energy production

-381

-234

62.7

The variation is mainly due to the higher gas consumption by Amazonas GT, relative to Mauá 3 and 4 other gas plants and by independent producers PIES (+184 million).

Construction

-152

-286

-46.9

The variation is mainly due to the reduction in investment value, especially subsidiary Chesf, which posted a reduction of R$ 110 million.

OPERATING COSTS

-1,575

-1,358

16.0

Variation was mainly due to the factors explained above.

(-)(-) CUSD Electronuclear Retroactive / Intercompany non-recurring accounting adjustment

172

99

73.3

 

(-)Construction of Generation

10

12

-21.5

 

RECURRING OPERATING COSTS

-1,394

-1,247

11.8

Variation was mainly due to the factors explained above.

 

OPERATING EXPENSES

2Q19

    2Q18

    %

Variation

Personnel

-1,168

-1,254

-6.8

The variation was mainly due to the cost reduction policy established by the Company, with PAE, PDC, hazardous work and overtime, which even offset the 1.69% readjustment of ACT 2019/2019. The economy still reflects partial effects due to termination dates and temporary health insurance obligations. 820 employees were dismissed in 2018 and 486 in 2019, in addition to the transfer of employees of privatized distributors.

Material

-71

-59

18.8

The variation was mainly due to the Angra 2 stoppage in 2Q19, and in 2018 occurred in 1Q18; and (ii) At subsidiary Eletronorte, growth in sundry expenses related to maintenance of power plants and transmission lines and environmental counterparts (see attachment 2).

Services

-624

-545

14.5

The variation was mainly due to: (i) increase in services by subsidiary Chesf of around R$ 25 million; (ii) At Holding, an increase of R$ 71 million in expenses related to services and consulting, capital restructuring and privatization of distributors.

Others

-452

-176

156.7

The variation was mainly due to: (i) In Amazonas GT, reclassification of credits of R$ 74 million related to the recovery of fuel expenses previously recorded under “Other operating expenses - Recovery of Expenses” to the fuel reduction account; (ii) in Furnas, R$ 60 million related to the INEPAR lawsuit; (iii) R$ 34 million, in the SPE Santa Vitória do Palmar, related to the provision for reimbursement to the electricity purchasing distributors, as the generation was lower than the contracted; (iv) increase of R$ 24 million in subsidiary Eletrosul, mainly due to non-recurring loans in 2Q18, which did not occur in 2Q19; and (iv) R$ 47 million intercompany elimination adjustments

Depreciation and amortization

-445

-418

6.4

Does not present relevant variation.

Operating Provisions / Reversals

-1,506

785

-292

The variation is mainly explained by: (i) Provision for contingencies in the amount of R$ 329 million, (ii) Provision for declared expiry of some Chesf transmission contracts in the amount of R$ 387 million, but with net effect of 207 million due to the reversal of onerous contract related to these expired investments in R$ 180 million; and (iii) Aneel CCC provision in the amount of R$ 921 million, related to CCC credits assigned by Amazonas Energia to Eletrobras, in the privatization process, but not yet recognized by Aneel; (iii) non-recurring effect in 2Q18 of the reversal of the Pará rate provision, which did not occur in 2Q19. The main operating provisions are detailed below (see Note 37).

 
   

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OPERATING EXPENSES TOTAL

-4,265

-1,667

156

The variation was mainly due to the factors explained above.

Consensual Dismissal Plan (PAE/PDC)

-3

24

-111

 

Independent Research / Consulting / Inepar/ Accounting Adjustment

178

15

1,120

 

Contingencies

329

544

-40

 

PCLD RGR

119

3

3,377

 

Onerous Contracts

-248

-216

15

 

Provision / (Reversal) for Investment Losses

-27

9

-405

 

Long-Term Asset Impairment

0

210

-100

 

Concession lapse

387

0

-

 

ANEEL Provision - CCC

921

0

-

 

Adjustment to Market Value

0

0

-100

 

TFRH

0

-1,334

-100

 

Recurring Operating Expenses

-2,610

-2,413

8.1

The variation was mainly due to the factors explained above.

 

Shareholdings

 

Shareholdings

2Q19

2Q18

%

Variation

Shareholdings

102

230

-55.7

The variation was mainly due to the worsening of SPEs results, especially Norte Energia.

(-) Gain Dist / Disposal SPEs

0

0

-

 

Shareholdings Management

102

230

-55.7

 

 

Financial Result

 

RESULTADO FINANCEIRO

2Q19

2Q18

%

Variation

Interest Income and Financial Income

479

443

8.2

The variation was mainly due to the increase in profitability on financial investments due to the variation of the CDI in 2Q19 against the CDI in the same period of 2018.

Net Monetary Update

-1

118

-101

The variation was mainly due to: (i) In Holding, the reduction in the monetary restatement due to the higher balance of liabilities after the incorporation of the distributors' debt; (ii) In subsidiary Furnas, in 2Q18 there was an adjustment by SELIC of the AFAC registered in Madeira Energia, of approximately R $ 14 million, which did not occur in the same period in 2019; (iii) in Amazonas GT, monetary restatement expense of 53 million related to upgrades of El Pasoe lawsuits increase in escrow deposits.

Net Foreign Exchange Variation

-3

-74

-96

The variation is mainly due to (i) the subsidiary Eletronuclear, gains from the devaluation of the dollar and euro currencies in outstanding commitments (approximately € 32.7 million and USD 5.1 million) from the Angra materials and services provider 3 (AREVA / FRAMATOME). There was a devaluation of approximately 1.7% in the Euro and Dollar currencies against the Real in 2Q19, (ii) in subsidiary Eletronorte due to the exchange rate variation resulting from the agreement with Corpoelec; (iii) in subsidiary Eletrosul, a new US dollar financing agreement, the proceeds of which were obtained in the last quarter of 2018, in the amount of US$ 73.0 million (R$ 282 million).

Debt Charges

-1,109

-570

94.4

The variation was mainly due to debt charges of the Distribution companies, which were available for sale in 2Q19, and were transferred to Eletrobras in the privatization process in R$ 176 million; (ii) unfunded debt charges on Eletronuclear's property, plant and equipment of 283 million, because the work has not yet been resumed.

Adjustment to Net Fair Value

-83

-81

2

Does not present relevant variation.

Interest Income and Financial Income

1,694

-1,629

-204

The variation was mainly due to the RBSE Fair Value Measurement (IFRS 9), with a positive record of R$ 1,658 million in 2Q19 against a negative record of R $ 1,561 in 2Q18, influenced by the reduction of the discount rate (NTN-B) from 5.72% to 3.09%.

Other financial results

-566

-91

525

The variation was mainly due to the recomposition of RGR's liabilities related to transfers to CCEE with negative net effect in the amount of R$ 330 million.

TOTAL FINANCIAL INCOME

412

-1,884

-121.9

The variation was mainly due to the factors explained above.

(-) Agreement Eletropaulo

0

0

0.0

 

(-)Monetary adjustment of compulsory loans

123

135

-8.9

 

RECURRING FINANCIAL RESULT

535

-1,749

-130.6

The variation was mainly due to the factors explained above.

 
   

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Income Tax and Social Contribution (CSLL)

 

Income Tax and Social Contribution

 2Q19

 2Q18

   %

Variation

Income Tax and social contribution

-1,016

-781

30.1

The variation was mainly due to: remeasurement of the deferred income tax liability related to RBSE in the amount of R$ 533 million in Furnas.

 

   

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Income Statement Variations (1H19 x 1H18)

1H19 Results recorded a variation of 272% compared to 1H18, with net income of R$ 6,908 million in 1H19, compared to net income of R$ 1,856 million in 1H18, in particular due to the following factors: .

Operating income

 

Generation Revenue

1H19

 1H18

%

Variation

Supply of energy for distribution companies

7,365

5,761

27.8

The variation was mainly due to: (i) revenues from independent producers PIES and four gas-fired power plants that were received from Amazonas Distribuidora following the decertification in December 2018 and the start of supply of CCEAR by Amazonas GT.

Supply of energy for final consumers

1,132

1,091

3.8

The variation was mainly due to the following reasons: (i) in subsidiary Furnas, due to the 3.73% readjustment of existing contracts as provided for in Law 13,182 / 2015 and increase of R$ 24 million in revenue from new contracts entered into in force due to auctions held in compliance with said law; in subsidiary Chesf, readjustment of contracts with industrial consumers served by Sobradinho HPP.

CCEE (short term)

645

649

-0.6

The variation is mainly due to the decrease in the price of energy settled at CCEE, partially offset by the increase in the amount of energy sold.

Operating and Maintenance Revenue - Renewable Power Plants by Law 12,783

1,684

1,075

56.7

The variation is mainly due to the following reasons: (i) Annual update disclosed through ANEEL Homologation Resolution 2421; (ii) Revision of the GAGs calculation methodology for the 2018-2019 cycle, with increase in the total GAG value with GAG recognition improvement of around R$ 250 million / quarter;

Construction Revenue

13

16

-19.7

The reduction reflects the lower level of investment made in 2019. It has an equivalent value in construction expenses and therefore has no effect on income.

Transfer Itaipu (see II.3.a)

104

184

-43.7

The variation was mainly due to the variation in the tariff applied to the monetary restatement calculated based on the American Commercial Price and Industrial goods price indices, and also due to the recognition of the interministerial decree that determines the revenue of Itaipu.

TOTAL GENERATION REVENUES

10,943

8,776

24.7

The variation was mainly due to the factors explained above.

(-) Construction/Proinfa

-13

-16

-19.7

 

GENERATION REVENUES MANAGERIAL

10,930

8,759

24.8

 The variation was mainly due to the factors explained above.

 

Transmission Revenues

1H19

1H18

%

Variation

Revenue from Operation and Maintenance

(LT Renovated Law 12.783 / 2013)

1,681

1,699

-1.1

The variation is mainly due to the following reason: (i) In subsidiary Eletronorte, the decrease in revenue from renewed revenue was mainly due to the reduction in the homologated revenue of the 2018/2019 cycle in relation to the 2017/2018 cycle, considering the receipt of amounts according to Ordinance MME 120/2016; (ii) in the subsidiary Eletrosul, (a) The anticipated apportionment, which measures the system's deficit and surplus, posted a negative result in 2019 (-R$ 1.0 million), in contrast to the same period surplus. (b) the calculation adjustment portion for the 2017/2018 cycle was calculated with the total discount of R$ 26.2 million, while for the 2018/2019 cycle the discount of R$ 60.6 million; (c) On the other hand, there was an increase of R$ 18.7 million due to the readjustment by the IPCA, entry into operation of new transmission authorizations linked to concession agreement 001/2015, whose revenues are measured in accordance with IFRS 15 (CPC 47).

O & M Revenue

372

345

8.0

The variation is mainly due to the following reasons: (i) Increase in revenues due to the start-up of reinforcements and improvements; (ii) increase in RAP installments due to the IPCA adjustment; and (iii) In subsidiary Eletrosul, consolidation, as of September 2018, of SPE TSBE, implying a R$ 27.6 million increase in revenues.

Construction Revenue

236

453

-47.9

The variation is mainly due to the following reasons: (i) in 2019 there is a lower volume of investments compared to the previous year;

Finance - Return on Investment - RBSE

1,897

2,459

-22.9

Remuneration of the financial assets of the Existing System Basic Network (RBSE) referring to renewed transmission lines pursuant to Law 12,783 / 2013, and the decrease in remuneration between periods is due to the beginning of monthly amortization of assets, which began in August of 1H17.

 

Return Rate Updates

405

373

8.4

The variation is mainly due to the consolidation, as of September 2018, of SPE TSBE. After business combination, it was controlled. The consolidated amount related to the SPE is R$ 34.7 million.

TOTAL TRANSMISSION REVENUE

4,590

5,329

-13.9

The variation was mainly due to the factors explained above.

 

 

 

 

 

 TRANSMISSION MANAGERIAL REVENUE

4,590

5,329

-13.9

The variation was mainly due to the factors explained above.

 
   

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Other Revenues

1H19

1H18

%

Variation

Other Revenues

442

223

97.9

(i) Recognition of R $ 92 million of funds earmarked for the financing of Procel PAR / 2018's Funding Plan, which refer to the period from May 2017 to April 2018, as authorized by ANEEL Order 3183/19 (ii) gain of R$ 29 million from the sale of SPEs Transleste, Transudeste and Transirapé; (iii) registration of gain on disposal of SPEs of R$ 35.2 million, inherent to the Etau and Uirapuru SPEs; (iv) In subsidiary Eletrosul, recognition in 2Q19 of revenue from studies and technical reports prior to auctions.

(-) Procel  Retroactive

-156

0

-

 

OTHER REVENUE PRÓ FORM

286

223

28.0

 

 

Operating Costs and Expenses

 

OPERATIONAL COSTS

1H19

1H18

%

Variation

Energy purchased for resale

-901

-701

28.4

The variation was mainly due to: (i) In subsidiary Amazonas GT, purchase of energy from independent producers PIES in 2Q19 and treated, for IFRS purposes, as Leasing (PIES);

Charges on the use of electricity

-785

-866

-9.4

The variation is mainly due to the recording of retroactive CUSD in 2Q18 by subsidiary Eletronuclear in the amount of R$ 99 million.

Fuel for cars of electricity

-911

-406

124.2

The variation is mainly due to the higher gas consumption by Amazonas GT, relative to Mauá 3 and 4 other gas plants and by independent producers PIES.

Construction

-267

-485

-44.9

The variation is mainly due to the lower level of investments.

OPERATING COSTS

-2,864

-2,459

16.5

Variation was mainly due to the factors explained above.

(-) Retroactive Enuclear Enel

0

99

-100.0

 

(-)Construction of Generation Projects

13

16

-19.7

 

OPERATING COSTS MANAGEMENT

-2,851

-2,343

21.7

Variation was mainly due to the factors explained above.

 

OPERATING EXPENSES

1H19

    1H18

    %

Variation

Personel

-2,482

-2,739

-9.4

The variation was mainly due to the cost reduction policy established by the Company, with PAE, PDC, hazardous work and overtime, which even offset the 1.69% readjustment of ACT 2019/2019.

Material

-101

-121

-16.9

The variation is mainly due to the following factors: (i) Company cost reduction policy; (ii) In subsidiary Eletronuclear, the hydrodynamic seals of all reactor refrigeration pumps were replaced, with a cost of R$ 14 million in 1Q18, with no equivalent cost during the Angra 2 maintenance shutdown in 2019; and (iii) In subsidiary CGTEE, Candiota III's stoppage from January to March / 2019, to overhaul the unit.

Services

-1,101

-969

13.5

The variation was mainly due to: (i) increase of services by subsidiary Chesf in surveillance services, contractors and contracted labor in the amount of R$ 43 million; (ii) At Holding, an increase of R$ 77 million in expenses related to services and consulting; (iii) CGTEE, for the increase in consulting and services for overhaul.

Others

-677

-463

46.0

In subsidiary Amazonas GT, reclassification of credits related to the difference between the provisional gas contract price and the ANP tariff, previously recorded under “Other operating expenses - Recovery of Expenses” to a fuel reduction account. and (ii) in subsidiary Furnas, R$ 60 million related to the INEPAR lawsuit;

Depreciation and amortization

-873

-835

4.5

Does not present relevant variation.

Operating Provisions / Reversals

-2,029

198

-1.124

The variation is mainly explained by: (i) Contingency Provision in the amount of R$ 622 million, influenced by the provisions related to the compulsory loan (R$ 180 million) and (ii) Aneel CCC Provision in the amount of R$ 986 million related to credits assigned by the privatized distributors to Eletrobras. The main operating provisions are detailed below (see Note 37).

OPERATING EXPENSES TOTAL

-7,262

-4,930

47.3

The variation was mainly due to the factors explained above.

Consensual Dismissal Plan (PAE/PDC)

167

296

-43,7

 

Independent Research / Consulting / Inepar

167

30

448,9

 

Contingencies

622

843

-26,2

 

PCLD RGR

162

4

4.335,1

 

Onerous Contracts

-342

-455

-24,9

 

Provision / (Reversal) for Losses on Investments

-62

16

-482,4

 

Long-Term Asset Impairment

0

413

-100,0

 

Concession lapse

387

0

        0

 

ANEEL Provision - CCC

986

0

0

 

Adjustment to Market Value

0,0

-0,3

-100,0

 

TFRH

0

-1.184

-100,0

 

Operating Expenses Managerial

-5,175

-4,967

4,2

The variation was mainly due to the factors explained above.

 
   

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Shareholdings

Shareholdings

1H19

1H18

%

Variation

Shareholdings

445

635

-29.9

The variation was mainly due to the worsening of SPEs results, especially Norte Energia.

(-) Gain Dist / Disposal SPEs

-183

 

 

 

Shareholdings Management

262

635

-58.8

 

 

Financial Result

RESULTADO FINANCEIRO

1H19

1H18

%

Variation

Interest Income and Financial Income

850

2,072

-58.9

The variation was mainly due to the 2Q18 agreement with Eletropaulo in the amount of 1,064 million.

Net Monetary Update

94

18

420

The variation was mainly due to: (i) Monetary restatement of CCC credits in the amount of R$ 87 million; (ii) In subsidiary Chesf, movement of judicial deposits, with the consequent recording of monetary restatement; (iii) in subsidiary Eletronorte, settlement of debts with CEF in the amount of R$ 80 million.

Net Foreign Exchange Variation

60

-115

152

The variation is mainly due to (i) the subsidiary Eletronuclear, gains from the devaluation of the dollar and euro currencies in outstanding commitments (approximately € 32.7 million and USD 5.1 million) from the Angra materials and services provider. 3 (AREVA / FRAMATOME). There was a devaluation of the Euro and Dollar currencies against the Real by approximately; (ii) the subsidiary Eletronorte resulting from exchange variation resulting from the agreement with Corpoelec; (iii) in subsidiary Eletrosul, gain from the exchange variation of the Euro financing agreement.

Debt Charges

-1,802

-1,199

-50.3

The variation was mainly due to: consent fee paid to bondholders by the holding company regarding the provision of guarantees to Petrobras arising from the assumption of debt by distributors and the increase in the debt balance of Amazonas GT; (ii) at Eletronuclear, Angra 3 interest capitalization reversal of 283 million (confirm if it enters this line).

Interest Income and Financial Income

-147

-141

-4

Does not present relevant variation.

Fair Value Adjustment

1,781

-1,367

230

The variation was mainly due to the fair value measurement of Transmission Contract Assets (IFRS 9) influenced by the discount rate variation (NTN-B).

Other financial results

-746

-128

-485

The variation was mainly due to the recomposition of RGR's liabilities related to transfers to CCEE with negative net effect in the amount of R$ 330 million.

TOTAL FINANCIAL INCOME

89

-860

-110.4

The variation was mainly due to the factors explained above.

(-) Agreement Eletropaulo

0

-1,064

-100.0

 

(-)Monetary adjustment of compulsory loans

251

260

-3.3

 

MANAGEMENT FINANCIAL RESULT

341

-1,665

-120.5

The variation was mainly due to the factors explained above.

 
  

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Income Tax and Social Contribution (CSLL)

 

Income Tax and Social Contribution

 1H19

 1H18

   %

Variation

Income Tax and social contribution

-1,632

-1,536

6

The variation is mainly due to (i) the collection of income tax on the amounts of the agreement with Eletropaulo in 2Q18; (ii) Furnas deferred income tax adjustment in 2Q19.

 

 

   

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I.2 Sale of Energy 

  

I.2.1  Energy Sold in 1H19  - Generators – TWh

 

In terms of the evolution of the energy market, Eletrobras Companies sold 66.5 TWh of electricity in 1H19, compared to 67.3 TWh traded in the same period of the previous year, which represents a 1.2% reduction.

 

(1) Power plants renewed by Law 12,783 / 13 - quotas

(2) Operating plants: ACR and ACL sales

(3) The Company acts as an agent for the sale of electricity from Itaipu. The sold energy revenues presented above are not part of Eletrobras' sales revenues mentioned in the Financial Statements

 

 

I.3 Impairments and Onerous Contracts

 

Contratos Onerosos

BALANCE ON 12/31/2018

BALANCE ON  06/30/2019

Movimentation

1H19

Generation

 

 

 

Santa cruz

160

          -  

160

Funil

249

        247

2

Coaracy Nunes

102

        102

0

LT Camaçari IV - Sapeaçu (a)

124

          -  

124

Outros

       90

        35

56

TOTAL

725

      383

342

Negative signs mean provisions and positive reversals.

 

   

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I.4 Consolidated EBITDA

EBITDA

1H19

1H18

(%)

Net Income (Loss) for the Year

6,908

1,856

272%

Net Loss from Taxes on Discontinued Operations

5,037

-991

-608%

Result for the Year

1,871

2,846

-34%

 + Provision for Income Tax and Social Contribution

1,632

1,536

6%

 + Financial Result

-89

860

-110%

 + Amortization and Depreciation

873

835

5%

 = EBITDA

4,287

6,078

-29%

Adjustment

 

 

 

(-) Effect on Disposal of Equity Holdings

-183

0

-

(-) Procel Retroactive / Nuclear Retroactive Cusd

-92

99

-193%

(-) Retirement Plan. Extraordinary (PAE) / Consentual Dismissal Plan (PDC)

167

296

-44%

(-) Independent Research / Consulting / Inepar

167

30

449%

(-) Earnings from Selling SPEs

-64

0

-

(-) Contingencies

622

843

-26%

(-) PCLD RGR – CCEE transfer

162

4

-29%

(-) Onerous contracts

-342

-455

-25%

(-) Provision / (Reversal) for Losses on Investments

-62

16

-482%

(-) Impairment

0

413

-100%

(-) Concession Expiry

387

0

-

(-)Provision ANEEL CCC

986

0

-

(-) Adjustment to market value

0,0

-0,3

-100%

(-) Water resources inspection fee (TRFH)

0

-1.184

-100%

=  Recurring EBITDA  1

6.034

6.140

-2%

1-    In 2Q19, the Company considered in its recurring EBITDA the revenue from RBSE in order to maintain a protocol similar to the debenture covenants to be issued.

Consolidated Result by Segment of Continuing Operations

 

 

 

06/30/19

 

 

 

DRE by Segment

Administration

Generation

Transmission

Elimination

Total

Operating System

O & M Regime

Operating System

Regime de O&M

 Net operating revenue

51

3,752

712

(371)

2,576

(76)

6,643

 Operating Costs and Expenses

(1,381)

(2,451)

(602)

(568)

(914)

76

(5,840)

 Operating Income Before Financial Result

(1,330)

1,301

110

(939)

1,662

-

803

 Financial Result

(652)

(378)

(16)

(63)

1,622

-

514

 Results of equity investments

-

-

-

-

-

-

-

Effect on Disposal of Equity Holdings

132

(260)

(141)

161

(908)

-

(1,016)

Income tax and social contribution

(1,850)

663

(47)

(841)

2,376

-

301

 Net Income (loss) for the period

51

3,752

712

(371)

2,576

(76)

6,643

               

 

 

 

06/30/18

 

 

 

DRE by Segment

Administratio

Geração

Transmissão

Elimination

Total

O & M Regime

Regime de O&M

O & M Regime

Regime de O&M

 Net operating revenue

97

7,853

1,417

609

3,602

(484)

13,095

 Operating Costs and Expenses

(2,174)

(4,794)

(1,155)

(479)

(2,007)

484

(10,126)

 Operating Income Before Financial Result

(2,077)

3,059

262

130

1,595

-

2,969

 Financial Result

(518)

(760)

(46)

(114)

1,527

-

89

 Results of equity investments

262

-

-

-

-

-

262

Effect on Disposal of Equity Holdings

183

-

-

-

-

-

183

Income tax and social contribution

(26)

(631)

(203)

(99)

(673)

-

(1,632)

 Net Income (loss) for the period

(2,175)

1,668

12

(83)

2,449

-

1,871

               

Adjustments made to recurring EBITDA refer to non-recurring events or events that are expected to be dealt with under the PDNG 2019-2022, therefore, they are expected not to affect the Company's future cash flow. However, there are risks and uncertainties related to the Company's business, such as, but not limited to, general economic, regulatory, political and commercial conditions in Brazil and abroad, changes in interest rates, inflation and Real value, changes in volumes and patterns of consumer electricity use, competitive conditions, payments related to our receivables, changes in rainfall and water levels in the reservoirs used to operate our hydroelectric plants, our financing and capital investment plans, existing and future government regulations , and other risks described in our annual report and other documents filed with the Securities and Exchange Commission and the United States Securities and Exchange Commission, which may change these estimates and expectations of management. Accordingly, future results of operations and initiatives of the Companies may differ from current expectations and the investor should not rely solely on the information contained herein.

 

   

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I.5 Net debt

 

 

 

Net Debt

06/30/2019

GROSS DEBT (1) – R$ million

55,482

(-) Trandfer RGR to CCEE (1)

1,587

Managerial gross debt

53,895

(-) (Cash and Cash Equivalents + Securities)

14,183

(-) Financing Receivable (discounted RGR Transfer)

14,241

(-) Net balance of Itaipu Financial Asset

1,942

Managerial  Net Debt

23,528

1 See Notes 9.1 and 19.

   

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Analysis of the Results of the Parent Company

In 2Q19, Eletrobras Holding posted net income of R$ 5,565 million, an increase of 307% compared to net income of R$ 1,366 in 2Q18.

In 1H19, Eletrobras Holding posted net income of R$ 6,962 million, an increase of 282% compared to net income of R$ 1,824 million in 1H18.

This 1H19 result was decisively influenced by: (i) Discontinued operations (distribution), in the amount of R$ 5,037 million, (ii) Equity Income, of R$ 3,755 million, mainly influenced by the results of subsidiaries; partially offset by (iii) Provision ANEEL - CCC, in the amount of (R$ 986 million), related to credits granted by Amazonas Energia Distribuidora to Eletrobras, but not recognized by Aneel (iv) Short-term liabilities in subsidiaries in the amount of R$ 111 million, mainly impacted by subsidiary CGTEE (R$ 341 million), partially offset by Amazonas GT (R$ 230 million). The chart below shows a comparison of Eletrobras holding's results for 1H18 and 1H19.

 

Evolution of Results - R$ million

 

Note: The analysis of the results of each subsidiary is attached.

 

 
   

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II.1 Shareholdings of the Parent Company

In 2Q19, the income from equity interests negatively impacted the Company's income by R$ 1,766 million, mainly due to the equity income of investments in subsidiaries, as shown below:

 

 

 

R$ million

 

 

 

Parent Company

 

 

 

 1H19

 1H18

2Q19

2Q18

 Investments in subsidiaries

 

 

 

 

 Equity

        3,431

              2,988

    1,538

     1,742

 

 

 

 

 

Investments in associates

 

 

 

 

Equity

            325

                  439

           229

              206

 

 

 

 

 

 Total

       3,755

             3,427

        1,766

          1,948

 

II.2  Commercialization of Electric Power of the Parent Company

a.Itaipu Binacional

 

FINANCIAL RESULT OF ITAIPU            

 

 

 

 

1T19

2T19

2019

Sale of Energy Contract Itaipu + CCEE

2,955

3,269

6,225

Revenue originating from the Right of Reimbursement (1)

195

118

313

Others

37

35

72

Total Revenue

3,187

3,422

6,609

 

 

 

 

Purchase of Energy Contract Itaipu + CCEE

-2,763

-3,633

-6,396

Expenses Originating from the Compensation Obligation (2)

-136

-82

-218

Itaipu repayment

-46

479

433

Others

-189

-136

-325

Total Expenses

-3,134

-3,372

-6,506

 

 

 

 

Net operating revenue  - Transfer of Itaipu

54

50

104

 

ITAIPU RESULTS (Price indexes)

 

 

 

 

1Q19

2Q19

2019

Revenue originating from the Right of Reimbursement (1)

195

118

313

+ Foreign Exchange Result

26

-79

-53

Result from the Right of Reimbursement (RD)

221

39

260

Expenses Originating from the Compensation Obligation (2)

136

82

218

+ Foreign exchange result

18

-55

-37

Resultado originário das Obrigações de ressarcimento (RO)

154

27

181

Balance: RD – RO

67

12

79

 

   

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a.1        

(see explanatory note 17.1.1 of the Financial Statements of 2Q19)

 

 

Pursuant to Law 11,480 / 2007, the adjustment factor of the financing agreements entered into with Itaipu Binacional and the assignment of credit agreements signed with the National Treasury as of 2007 was removed, and the Company is assured the full maintenance of its financing. receipt flow.

As a result, Decree 6,265 of November 22, 2007 was issued, regulating the commercialization of electricity from Itaipu Binacional, defining the differential to be applied to the transfer rate, creating an asset related to the portion of the annual differential calculated, equivalent to annual adjustment factor taken from the financing, to be included annually in the transfer rate, as of 2008, practiced by the Company, preserving the flow of funds, originally established.

Thus, from 2008 onwards, the power transfer rate from Itaipu Binacional was included in the tariff deriving from the removal of the annual readjustment factor, whose values ​​are defined annually through the interministerial ordinance of the Ministries of Finance and Mines and energy. The balance resulting from the adjustment factor of Itaipu Binacional, included in the item Financial Assets, presented in Non-Current Assets, amounts to R$ 4,813,191 at June 30, 2019, equivalent to US$ 1,255,986 (R$ 4,553,380 December 31, 2018, equivalent to U$ 1,175,126). The amount of R$ 4,067,894, equivalent to US$ 1,062,504, will be transferred to the National Treasury by 2023, as a result of the credit assignment operation carried out between the Company and the National Treasury in 1999. These amounts will be realized through their inclusion in the transfer rate to be practiced by 2023.

Thus, given that Itaipu's Financial Assets are a compensation arising from the financing agreement granted by Eletrobras to Itaipu, the amount of the Financial Assets to be received by Eletrobras is being considered, as a discount, in the calculation of Net Debt.

   

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II.3  Operational Provisions of Parent Company

 

In 2Q19, Operating Provisions negatively impacted the Parent Company's results by R$ 961 million, compared to the R$ 192 million provision in 2Q18. This variation is mainly explained by the provision recorded for CCC credits assigned by Amazonas Energia in the privatization process in the amount of R$ 921 million in 2Q19, and there was no provision under this heading in 2Q18.

In 1H19, Operating Provisions negatively impacted the Parent Company's results by R$ 1,312 million, compared to R$ 515 million in 1H18. This variation is mainly explained by the provision recorded for CCC credits assigned by Amazonas Energia in the privatization process in the amount of R$ 986 million in 1H19, there was no provision in this line in 1H18. Below is the table of changes in Operating Provisions:

 

 

R$ million                                                                                                               

 

 

 Operational Provisions

Parent company

 

 

 

1H19

1H18 (Reclassified)

2Q19

2Q18 (Reclassified)

Garanties

+70

-68

+58

-81

Contingencies

-75

-376

+29

-172

PCLD - Consumers and Resellers

0

0

0

0

PCLD - Financing and Loans

-236

-12

-59

-6

Short-term liabilities in subsidiaries

-111

-153

-95

-192

Onerous Contracts

0

0

0

0

Losses on Investments

+27

-34

+27

-34

Impairment

0

0

0

0

ANEEL Provision - CCC

-986

0

-921

0

Adjustment to Market Value

0

0

0

0

Pará Fee

0

0

0

0

Others

-0

127

0

293

 

-1,312

-515

-961

192

 

MUTATION PROVISION FOR DISCOVERED LIABILITIES - PARENT COMPANY

Balance on 12/31/2018

Equity

Balance o 06/31/2019

CGTEE

3,546

341

3,887

Amazonas GT

338

-230

108

TOTAL PROVISION FOR PASSIVE DISCOVERED

3,884

111

3,995

 

   

20

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II.4   Financial Results of Parent Company

                                                                         

In 2Q19, the Financial Result negatively impacted the Parent Company's results by R$ 398 million compared to R$ 409 million in 2Q18. This variation is mainly explained by the recomposition of RGR liabilities related to transfers to CCEE with negative net effect in the amount of R$ 330 million.

In 1H19, the Financial Result negatively impacted the Parent Company's results by R$ 164 million, a reduction of R$ 1,800 million compared to the 1H18 positive financial result, as shown below:

 

FINANCIAL RESULT                                                                                                                                                                                                                 R$ milhões

R$ million

 

 

1H19

1H18

2Q19

2Q18

Financial income

 

 

 

 

Interest income, commissions and fees

1,070

2,409

481

641

Revenue from short-term investments

146

268

88

164

Moratorium surcharge on electricity

0

4

0

2

Net Monetary updates

296

204

123

176

Net Exchange rate variations

12

81

-16

97

Other financial income

479

72

431

22

 

 

 

 

 

Financial Expenses

 

 

 

 

     Debt charges

-1,029

-731

-539

-374

     Lease charges

-3

0

-2

0

     Charges on shareholders' funds

-119

-116

-60

-58

     Other financial expenses

-1,016

-391

-905

-262

 

-164

1,800

-398

409

 

Evolution of the IGP-M and Dollar (%)

 

The main indexes of financing and onlendings contracts had the following variations in the periods:

 

2Q18

2Q19

Dólar

16.01%

-1.66%

IGPM

3.86%

2.19%

 

   

21

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III. General information

 

Portfolio of Receivables and Payables

a.    Financing and Borrowing Granted 

Financing and loans are made with the Company's own resources and external funds raised through international development agencies, financial institutions and the release of securities in the international financial market.

Financing and loans granted in the parent company, with exchange rate update clause, represent about 26% of the total portfolio (30% at December 31, 2018). Already those that predict update based on indices that represent the domestic price level in Brazil reach 74% of the portfolio balance (70% on December 31, 2018).

In addition to the financing mentioned above, until April 30, 2017, Eletrobras was responsible for managing the Global Reversal Reserve (RGR), a sector fund, and was responsible for granting financing through the use of these resources for the implementation of various sector programs. As of May 2017, with the issuance of Law 13,360 / 2016, CCEE assumed this activity. However, there are still financing made before this date, due by third parties, managed by Eletrobras.

Pursuant to Decree 9,022 / 2017, which regulates the aforementioned law, Eletrobras is not the guarantor of these operations taken by third parties, but is responsible for the contractual management of RGR funding agreements entered into up to November 17, 2016, which must be passed on to RGR within five days from the date of actual payment by the debtor agent.

The amounts related to receivables from loans and financing granted by RGR to third parties were segregated from other Eletrobras receivables and have equivalent liabilities (see Note 9.1 and 19).

 

 

 

 

06/30/2019

 

 

 

 

 Parent and Consolidates

 Transfer RGR

 

Charges

 

 Current

 

Non current

 AMAZONAS D

 

           26,824

 

                 62,750

 

                22,361

 BOA VISTA

 

            6,288

 

                 92,317

 

                33,279

 CERON

 

           13,007

 

               125,257

 

              139,290

 ELMA

 

           10,711

 

                   3,143

 

                      -  

 ENERLESTE

 

            1,719

 

                   1,424

 

                      -  

 GLOBAL

 

         137,547

 

                 44,100

 

                      -  

 CELPA

 

                 -  

 

                   6,795

 

              660,140

 CEMIG

 

                 -  

 

                 12,214

 

                12,993

 COELCE

 

                 -  

 

                   7,305

 

                10,445

 ELEKTRO

 

                 84

 

                   7,635

 

                 8,259

 RGE-SUL

 

                 47

 

                   5,248

 

                 3,670

 OTHERS

 

               281

 

                 59,942

 

                72,006

 

 

         196,507

 

               428,133

 

              962,444

Long-term installments of financing and borrowings based on contractually provided cash flows mature in variable installments, as shown below:

             

R$ Million

 

2020

2021

2022

2023

2024

After 2024

Total

Parent Company

1,250

3,736

6,155

4,417

3,447

2,458

21,463

Consolidadated

1,539

3,657

3,984

1,698

1,207

530

12,614

 

   

22

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Payable Financing and Loans 

Debts are guaranteed by the Federal Government and / or Eletrobras, are subject to charges, whose average rate in June 2019 is 6.29% pa. (6.4% pa in 2018), and have the following profile:

 

Parent Company

 

 

Consolidadated 

 

06.31.2019

 

12.31.2018

 

06.31.2019

 

12.31.2018

Balance in

R$ Million

%

 

Balance in R$ Million

%

 

Balance in R$ Million

%

 

Balance in R$ Million

%

Foreign currency

 

 

 

 

 

 

 

 

 

 

 

USD

11,228

31%

 

11,285

41%

 

11,505

23%

 

11,285

21%

USD with Libor

551

2%

 

698

3%

 

913

2%

 

1,079

2%

EURO

233

1%

 

245

1%

 

233

0%

 

245

0%

IENE

-  

0%

 

-  

0%

 

-  

0%

 

-  

0%

Others

-  

0%

 

-  

0%

 

-  

0%

 

-  

0%

Subtotal

12,013

34%

 

12,227

44%

 

12,652

25%

 

12,608

23%

 

 

 

 

 

 

 

 

 

 

 

 

Local currency

 

 

 

 

 

 

 

 

 

 

 

CDI

6,238

17%

 

5,092

18%

 

11,094

22%

 

10,649

20%

IPCA

-  

0%

 

-  

0%

 

100

0%

 

190

0%

TJLP

-  

0%

 

-  

0%

 

6,285

13%

 

6,515

12%

SELIC

12,189

34%

 

4,513

16%

 

9,185

18%

 

13,279

24%

Others

1,031

3%

 

-  

0%

 

5,592

11%

 

3,621

7%

Subtotal

19,458

54%

 

9,605

35%

 

32,256

65%

 

34,254

63%

 

 

 

 

 

 

 

 

 

 

 

 

Not indexed

4,251

12%

 

5,803

21%

 

5,066

10%

 

7,511

14%

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL

35,722

100%

 

27,635

100%

 

49,974

100%

 

54,373

100%

                     

* This amount includes the debt of other companies outside the Eletrobras System with RGR in the amount of R $ 1,950 Million, as well as in Amazonas and Ceal with RGR, in the amount of R $ 1,370 Million, since Eletrobras acts as manager of RGR and has a counterpart in assets.

 

The long-term portion of loans and financing matures as scheduled:

 

R$ Million

 

2020

2021

2022

2023

2024

After 2024

Total

Parent Company

3,022

11,346

3,773

2,449

2,322

3,581

26,493

Consolidated

4,490

11,869

5,307

4,603

3,477

9,149

38,894

 

Ratings

Agency

National

Classification/ Perspective

Latest Report

Moody’s BCA

“B1”: / Stable

10/03/2019

Moody’s Senior Unsecured Debt

“Ba3”: / Stable

10/03/2019

Fitch - Issuer Default Ratings (Foreign Currency)

“BB-”: / Stable

06/12/2019

Fitch - Issuer Default Ratings (Local Currency)

“BB-”: / Stable

06/12/2019

Fitch - Senior Unsecured Debt Rating

“BB-”

06/12/2019

S&P LT Local Currency

“brAAA”

04/25/2019

S&P - Senior Unsecured

"BB-"

04/25/2019

S&P LT Foreign Currency

“BB“ / Stable

04/25/2019

*CreditWatch

 

   

23

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Eletrobras Organization Chart

 

 

 

1. The number of SPEs is taking into consideration the direct and indirect interests in SPE, and disregarding the SPEs that participate in more than one Eletrobras Company, in contrast to the numbers considered in the tables of each company. This total includes 02 SPEs abroad. After selling processes concluded, as from Auction No. 01/2018, INTESA (12/28/2018), the Sento Sé I, II and III complexes (03/28/2019), ETAU (29/04/2013) 2019), Brasnorte, Transirapé, Transleste and Transudeste (05/31/2019) and Uirapuru (06/25/2019). Also disregarded were the West Coast and Marumbi which had the share exchange process completed and 10 Itaguaçu da Bahia SPEs that were merged into the Holding and were written off at the CNPJs. Of the 147 national and international SPEs, 51 are in the process of divestment; 10 SPEs in process of sale from Auction No. 01/2018; 41 SPEs being sold by 2020. 14 SPEs are to be merged and 25 SPEs terminated. In July, occurred the transfer of the equity interest of Eletronorte Transmissora de Energia S.A. Eletrobras currently has a stake in 147 SPEs. 

 

24

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Investiments

 

NATURE OF INVESTMENTS

                       

 

 

Budgeted 2019

 

Realized

 

1Q19

2Q19

1H19               (%)

 Generation

1,248.6

38.1

47.5

       85.6

6.9%

 Transmission

1,411.3

113.1

150.4

     263.4

18.7%

 Distribution

836.6

166.2

121.2

     287.4

34.3%

 Maintenance – Generation

735.2

8.5

75.0

       83.5

11.4%

Other (Research, Infrastructure and environment)

450.1

29.0

33.1

       62.1

13.8%

 Total Corporate

4,681.8

354.9

427.1

    782.0

16.7%

Financial Investments in SPEs

0.0

 

 

 

 

 Generation

653.9

119.5

150.4

     270.0

41.3%

 Transmission

369.4

40.1

0.2

       40.3

10.9%

Total SPEs

1,023.3

159.7

150.6

    310.3

30.3%

Total

5,705.0

514.5

577.8

 1.092.3

19.1%

           

 

For further details of the investments, per subsidiary or by project, see appendix 3 to this Investor Report.

 

Share Capital

 

Structural of Social Capital

 

In 2Q19, the capital of Eletrobras was composed as follows:

Shareholders

Common

Pref. Classe “A

Pref. Class “B”

Total

Quantity

%

Quantity

%

Quantity

%

Quantity

%

União Federal

554,395,652

51%

0

0%

892

0%

554,396,544

41%

BNDESpar

141,757,951

13%

0

0%

18,691,102

7%

160,449,053

12%

BNDES

74,545,264

7%

0

0%

18,262,671

7%

92,807,935

7%

FND

45,621,589

4%

0

0%

0

0%

45,621,589

3%

FGHAB

1,000,000

0%

0

0%

0

0%

1,000,000

0%

OUTROS

269,729,841

25%

146,920

100%

228,482,218

86%

498,358,979

37%

Total

1,087,050,297

100%

146,920

100%

265,436,883

100%

1,352,634,100

100%

 

 

25

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Stock Analysis

 

Actions

 

 

(R$)

(R$)

(pts.)

(pts.)

 

ELET3 B3

ELET6 B3

IBOV B3

IEE B3

Price and Volume

(Shares ON)

(Shares PN)

(Index)

(Índex)

Closing Price on 06/31/2018

35.25

36.30

100967

63831

Maximum in the quarter

37.25

38.85

102062

63831

Average in the quarter

33.64

35.14

96054

59248

Minimum in the quarter

30.10

32.14

89993

56073

 

 

 

 

 

Change in 2Q19

-3.9%

-4.9%

5.8%

11.1%

Change over the last 12 months

189.2%

165.7%

38.8%

65.5%

Average Daily Trading Volume 2Q19 (millions of shares)

3.452.2

2.063.2

         -  

         -  

Average Daily Trading Volume 2Q19 (R$ million)

116.5

72.4

         -  

         -  

 

 

 

 

 

Net Income per Share in the Quarter (R$)

4.11

4.11

         -  

-  

Net Asset Value per Share (R$)

46.42

46.42

         -  

-  

Price / Profit (P / E) (1)

8.57

8.83

         -  

Price / Stockholders' Equity (B / W) (2)

0.76

0.78

         -  

         

(1) Closing price of the preferred and common shares at the end of the period / Net Income per share. For the calculation, the accumulated net income of the last 12 months was considered;

(2) Closing price of the preferred and common shares at the end of the period / Asset Value per share at the end of the period.

 

Evolution of Traded Shares in B3

 

 

 

Source: AE Broadcast

Index number 06/30/2018 = 100 and ex-dividend values.

 

   

26

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ADR Programs

 

 

 

(US$)

(US$)

 

NYSE

NYSE

Preço e Volume

EBRN

EBRB

Closing Price on 06/31/2018

              9.12

           9.23

Maximum in the quarter

              9.62

           9.92

Average in the quarter

              8.61

           8.95

Minimum in the quarter

              7.47

           7.90

 

 

 

Change in 2Q19

-2.6%

-4.5%

Change over the last 12 months

184.1%

163.0%

Average Daily Trading Volume 2Q19 (millions of shares)

             392.5

           28.4

Average Daily Trading Volume 2Q19 (US$ million)

                3.4

             0.3

 

 

 

Evolution of Traded Shares in ADR

 

 

 

  Source: AE Broadcast

  Index number 06/30/2018 = 100

27

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Latibex - Madrid Stock Exchange

 

 

(€)

(€)

 

LATIBEX

LATIBEX

Price and Volume

XELTO

XELTB

Closing Price on 06/31/2019

7.60

8.40

Maximum in the quarter

8.50

8.40

Average in the quarter

7.54

8.03

Minimum in the quarter

6.80

7.60

 

 

 

Change in 2Q19

-9.5%

1.8%

Change over the last 12 months

177.4%

159.3%

Average Daily Trading Volume 2Q19 (millions of shares)

2.0

1.1

Average Daily Trading Volume 2Q19 (Euro million)

14.9

8.6

 

            

 

 

Evolution of Foreign Currencies

 

 

 

Index number 06/30/2018 = 100.

Source: Central Bank 

28

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Nº of employees

 

Parent Company

 

By time

 

By region

 

Working time at company (years)

 

 

 

 

 

1Q19

             2Q19

Up to 5

 

 

 

 

 

21

20

6 to 10

 

 

 

 

 

356

330

11 to 15

 

 

 

 

 

211

183

16 to 20

 

 

 

 

 

58

106

21 to 25

 

 

 

 

 

14

12

more than 25

 

 

 

 

 

114

96

Total

 

 

 

 

 

774

747

 

 

State of the Federation

 

 

 

 

 

 

1Q19

2Q19

Rio de Janeiro

 

 

 

 

752

726

São Paulo

 

 

 

 

1

1

Brasília

 

 

 

 

21

20

Total

 

 

 

 

774

747

 

 

Hired / Outsourced Labor

 

1Q19

2Q19

0

0

 

 

Turnover (Holding)     

 

1Q19

2Q19

2.0%

2.0%

 

   

29

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Direct Partnerships in SPEs - Parent Company

 

Eletrobras closed the second quarter of 2019 with a total of 54 equity interests in Special Purpose Entities (SPEs). Of this total, Eletrobras already had ownership interest in 4 projects (Norte Energia SA, Mangue Seco 2, IGESA and ROUAR) and still has the participation in another 50 SPEs arising from the donation process in payment between the subsidiaries and the holding company, all of them these were divested through Eletrobras Auction No. 01/2018.

Of the 71 SPEs participating in the Eletrobras Auction No. 01/2018, held on September 27, 2018, 26 companies were sold, of which 5 (five) through a Chesf power of attorney for Eletrobras. Among the 26 companies sold, SPEs INTESA, Pedra Branca SA, Sao Pedro do Lago SA, Sete Gameleira SA, Baraunas I Energetica SA, Mussambê Energetica SA, Morro Branco I Energetica SA, Baraunas II Energetica SA were transferred For the new controller by March 30, 2019, Brasnorte, Transirapé, Transleste and Transudeste, and Uirapuru were transferred until June 30, 2019, and are no longer on the list of SPEs currently present at the Holding.

The mentioned transaction represents one of the stages provided for in PNDG 2019-2023 and was intended to reduce debt through the settlement of its subsidiaries' debts with the Holding Company.

Generation

 

SPE

Power plant

Total Investiments

Capacity Installed   

Physical Warranty

Generated Energy MWh

R$ milhões

MW

MW Médio

1Q19

2Q19

Norte Energia SA*

UHE

42,342

11,233.10

4,571

12,232,360,76

 

Eólica Mangue Seco 2

EOL

In operation

26

9.6

10,692,87

13,631,18

Santa Vitória do Palmar Holding S.A. (2)

EOL

In operation

258

110

148,448,28

172,314,74

Chuí Holding S.A. (1)

EOL

In operation

144

59.6

77,749,68

90,009,43

Chuí IX

EOL

In operation

17.9

7.4

11,023,82

12,044,96

Hermenegildo I

EOL

In operation

57.28

24.9

38,253,29

41,346,52

Hermenegildo II

EOL

In operation

57.28

25

33,846,69

38,810,13

Hermenegildo III

EOL

In operation

48.33

21

28,507,34

34,157,37

Rouar S.A.

EOL

In operation

65.1

N/A

33,615,00

42,528,17

Brasventos Eolo

EOL

In operation

58.45

21.86

21,399,50

21,475,00

Rei dos Ventos 3

EOL

In operation

60.12

21

20,449,10

25,361,00

Miassaba 3

EOL

In operation

68.47

22.84

24,717,80

28,015,00

Serra das Vacas Holding (3)

EOL

In operation

90.76

45.6

87,684,30

80,658,71

Chapada do Piauí I Holding (4)

EOL

In operation

205.1

114.3

105,243,05

181,136,48

Chapada do Piauí II Holding (5)

EOL

In operation

172.4

88.7

85,879,43

156,396,80

* 18 generating units in commercial operation totaling 7566.30 MW in commercial operation.

(1) Chuí Holding S.A is the parent company of Chuí S.A Wind SPEs I, II, IV, V, VI, VII.

(2) Santa Vitória do Palmar Holding (SVP), which is the parent company of Geribatu SA I and X wind SPEs, merged with Chuí Holding SA, so that SVP now additionally controls Chuí SA I, II, IV, V wind SPEs, VI, VII.

(3) Serra das Vacas Holding S.A has incorporated the interests of Serra das Vacas S.A.

(4) Chapada do Piauí I Holding S.A has incorporated the interests of Santa Joana Wind Winds SPEs IX, X, XI, XII, XIII, XV and XIV.

(5) Chapada do Piauí II Holding S.A has incorporated the interests of the Santa Joana I, III, IV, V, VII and Santo Augusto IV S.A Wind Winds.

30

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SPE

Participation (%)

Location

Start of Operation

End of Operation

Alienated

In Auction

09/27/18

Norte Energia S.A

15

PA

abr/16

ago/45

Não

Santa Vitória do Palmar Holding S.A. (2)

78

RS

fev/15

abr/47

No – Lote A

Chuí Holding S.A. (1)

78

RS

mai/15

abr/47

No – Lote A

Chuí IX

99,99

RS

out/15

mai/49

No – Lote B

Hermenegildo I

99,99

RS

nov/15

jun/49

No – Lote B

Hermenegildo II

99,99

RS

dez/15

jun/49

No – Lote B

Hermenegildo III

99,99

RS

dez/15

jun/49

No – Lote B

Brasventos Eolo

49

RN

jul/14 (')

dez/45

Yes – Lote F

Rei dos Ventos 3

49

RN

jul/14 (')

dez/45

Yes – Lote F

Miassaba 3

49

RN

jul/14 (')

ago/45

Yes – Lote F

Rouar S.A

50

Uruguai -Departamento de Colônia

Abri/15

Out/33

No

Serra das Vacas Holding (3)

49

PE

dez/15

jun/49

Yes – Lote C

Chapada do Piauí I Holding (4)

49

PI

jul/15

mai/49

No – Lote D

Chapada do Piauí II Holding (5)

49

PI

(6)

mai/49

No – Lote D

Mangue Seco 2

49

RN

set/11

jun/32

No – Lote G

(1) Chuí Holding S.A is the parent company of Chuí S.A Wind SPEs I, II, IV, V, VI, VII.

(2) Santa Vitória do Palmar Holding (SVP), which is the parent company of Geribatu SA I and X wind SPEs, merged with Chuí Holding SA, so that SVP now additionally controls Chuí SA I, II, IV, V wind SPEs, VI, VII.

(3) Serra das Vacas Holding S.A has incorporated the interests of Serra das Vacas S.A.

(4) Chapada do Piauí I Holding S.A has incorporated the interests of Santa Joana Wind Winds SPEs IX, X, XI, XII, XIII, XV and XIV.

(5) Chapada do Piauí II Holding S.A has incorporated the interests of the Santa Joana I, III, IV, V, VII and Santo Augusto IV S.A Wind Winds.

(6) The Santa Joana I, IV, V and VII mills started in Jan / 16, Santo Augusto IV in Feb / 16 and Santa Joana III in Mar / 16.

 

Transmission

Development

Object

Participation (%)

Investiments

Extension of lines (km)

Voltage

Start of

End

(From to)

(R$ Million)

(kV)

Concession

of Concession

 

 

 

 

 

 

 

 

AETE

Coxipó-Cuiabá-Rondonópolis (MT),
SE Seccionadora Cuiabá

49

In operation

193

230

ago/05

fev/34

ETAU

Campos Novos (SC) – Barra Grande (SC) –
Lagoa Vermelha (RS) – Santa Marta (RS)

27.42

In operation

188

230

jul/05

dez/32

TME

LT Jauru / Cuiabá, em 230 kV, (MT)

49

In operation

348

500

nov/11

nov/39

Centroeste de Minas

Furnas – Pimenta II

49

In operation

62.7

345

mar/10

mar/35

Luziânia-Niquelândia

SE Luziânia

49

In operation

-

-

jun/14

mai/42

SE Niquelândia

ago/15

mai/42

MTE

Oriximiná - Silves - Lechuga (AM),
SE Silves (ex-Itacoatiara) e SE Lechuga (ex-Cariri)

49.5

In operation

559

500

mar/13

out/38

 

   

31

Disclaimer:

Este   Este material contém cálculos que podem não produzir uma soma ou resultado preciso devido a arredondamentos realizados


 
 

Development

Object

Total of

Capacity Installed   (MVA)

Location o

 

End of Concession

Alienated

In Auction

09/27/18

Investiments

Start of Operation

 

 

(R$ Million)

 

 

 

AETE

SE Seccionadora Cuiabá

In operation

-

MT

ago/05

fev/34

Yes – Lote O

ETAU

Lagoa Vermelha 2 230/138kV;

In operation

150

SC

abr/05

dez/32

Yes – Lote N

Barra Grande 230/138 kV;

-

jul/05

Santa Marta 230 kV  - Entrada de Linha;

-

jul/05

Ampliação Lagoa Vermelha 2 230/138kV

150

out/16

TME

SE Jauru 500/230 kV

   In operation

750

MT

nov/11

nov/39

Yes – Lote K

Centroeste de Minas

-

In operation

-

MG

mar/10

mar/35

Yes – Lote P

Luziânia-Niquelândia

SE Luziânia

In operation

450

GO

jun/14

mai/42

No – Lote Q

SE Niquelândia

30

ago/15

mai/42

MTE

SE Silves (ex-Itacoatiara)

In operation

150

AM/PA

mar/13

out/38

No – Lote R

 SE Lechuga (ex-Cariri)

1800

 

32

Disclaimer:

Este   Este material contém cálculos que podem não produzir uma soma ou resultado preciso devido a arredondamentos realizados


 
 

Balance Sheet

R$ mil

Asset

Parent Company

Consolidated

06.30.2019

12.31.18

06.30.2019

12.31.18

Current

 

 

 

 

   Cash and cash equivalents

3,972,810

47,400

4,368,757

583,352

   Restricted cash

2,458,728

1,560,088

2,458,728

1,560,088

   Marketable securities

6,799,406

4,034,242

9,814,155

6,408,104

   Customers

347,570

379,649

5,067,555

4,079,221

   Financial assets - Concessions and Itaipu

0

0

5,323,793

6,013,891

   Loans and financing

7,026,044

8,257,761

3,214,144

3,903,084

   Asset contractual transmission

0

0

1,259,960

1,302,959

   Equity Pay

1,536,873

2,474,558

202,483

219,895

   Taxes to recover

383,159

488,591

952,145

1,216,261

   Income tax and social contribution

336,295

817,417

1,974,827

2,420,165

   Reimbursement rights

0

0

28,647

454,139

   Warehouse

398

274

385,330

380,292

   Nuclear fuel stock

0

0

510,638

510,638

   Derivative financial instruments

651

2,195

164,122

182,760

  Hydrological risk

0

0

52,675

81,301

  Assets held for sale

1,791,781

5,282,624

3,806,098

15,424,359

  Credits with subsidiaries - CCD

0

2,406,622

0

0

   Other

1,739,031

1,296,560

2,453,543

2,104,904

TOTAL CURRENT ASSETS

26,392,746

27,047,981

42,037,600

46,845,413

 

 

 

 

 

NON CURRENT

 

 

 

 

LONG-TERM

 

 

 

 

   Reimbursement rights

5,968,076

3,234,542

6,000,789

5,802,172

   Loans and financing

21,463,122

20,518,018

12,614,254

9,971,857

   Customers

0

0

8,063

8,413

   Marketable securities

302,232

293,509

333,854

293,833

   Nuclear fuel stock

0

0

749,719

828,410

   Taxes to recover

0

0

467,654

265,805

   Current Income Tax and Social Contribution

0

0

0

0

   Deferred income and social contribution     taxes

0

0

529,401

553,409

   Escrow deposits

3,536,787

3,307,301

6,143,278

5,788,905

   Fuel Consumption Account - CCC

0

0

13,067,000

13,268,837

   Financial assets - Concessions and Itaipu

2,521,241

2,603,118

35,400,709

34,100,453

   Derivative financial instruments

0

0

179,516

188,262

   Advances for future capital increase

1,422,129

1,140,732

183,494

459,563

  Hydrological risk

0

0

208,552

227,083

   Other

2,472,720

2,368,142

2,411,880

1,604,403

 

37,686,307

33,465,362

78,298,163

73,361,405

INVESTMENTS

74,557,192

71,871,802

28,445,989

27,983,348

Fixed assets net

262,594

198,711

32,488,848

32,370,392

INTANGIBLE

13,436

13,386

629,840

649,650

TOTAL NON-CURRENT ASSETS

112,519,529

105,549,261

139,862,840

134,364,795

TOTAL ASSETS

138,912,275

132,597,242

181,900,440

181,210,208

 

   

33

Disclaimer:

Este   Este material contém cálculos que podem não produzir uma soma ou resultado preciso devido a arredondamentos realizados


 
 

 R$ mil

Liabilities and Equity

Parent Company

Consolidated

06.30.2019

12.31.18

06.30.2019

12.31.18

CURRENT

       

    Loans and financing

9,229,546

7,031,515

11,080,247

12,066,912

    Debentures

39,630

0

81,593

36,073

    Compulsory loan

14,778

15,659

14,778

15,659

    Suppliers

680,916

569,218

2,921,077

3,360,550

    Advances from customers

670,464

357,275

739,895

421,002

    Taxes payable

253,296

166,523

1,642,413

1,277,051

    Income tax and social contribution

16,092

917,734

2,308,312

2,953,072

    Onerous contracts

0

0

3,914

9,436

    Remuneration to shareholders

1,293,562

1,257,502

1,298,832

1,305,633

    Financial liabilities - Concessions and Itaipu

745,957

799,401

0

0

    Estimated liabilities

99,736

134,474

1,497,287

1,366,376

    Reimbursement Obligations

1,842,639

1,250,619

1,842,639

1,250,619

    Post-employment benefits

14,550

29,336

159,822

164,160

    Provisions for contingencies

786,255

850,828

865,628

931,364

    Regulatory charges

0

0

624,722

653,017

    Lease

7,475

0

231,367

152,122

    Accounts payable with subsidiaries

0

2,866,810

0

0

    Derivative financial instruments

880

928

920

962

    Liabilities associated with assets held for sale

0

11,127,717

1,715,806

10,294,967

    Others

64,155

96,496

1,465,958

264,996

TOTAL CURRENT LIABILITIES

15,759,931

27,472,035

28,495,210

36,523,971

 

 

 

 

 

NON-CURRENT

 

 

 

 

    Loans and financing

26,492,873

20,603,333

38,893,728

42,305,886

    Suppliers

0

0

16,578

16,555

    Debentures

5,000,481

0

5,426,024

432,155

    Advances from customers

0

0

407,096

448,881

    Compulsory loan

469,133

477,459

469,133

477,459

    Obligation for asset retirement

0

0

2,695,805

2,620,128

    Fuel Consumption Account - CCC

0

0

0

0

    Provisions for contingencies

17,511,275

17,604,730

24,167,818

23,196,295

    Post-employment benefits

1,196,286

1,196,286

3,111,043

2,894,949

    Provision for unsecured liabilities

3,994,730

3,883,600

0

0

    Onerous contracts

0

0

379,564

715,942

    indemnification obligations

0

0

0

0

    Lease

59,771

0

961,849

823,993

    Grants payable - Use of public goods

0

0

65,128

64,144

    Advances for future capital increase

3,992,488

3,873,412

3,998,443

3,873,412

    Derivative financial instruments

0

0

24,672

25,459

    Regulatory charges

0

0

755,702

721,536

    Taxes payable

0

0

230,655

248,582

    Income tax and social contribution

516,262

432,582

8,503,668

8,315,386

    Others

1,605,533

1,510,899

508,216

1,496,527

TOTAL NON-CURRENT LIABILITIES

60,838,832

49,582,301

90,615,122

88,677,289

 

 

 

 

 

EQUITY

 

 

 

 

    Share capital

31,305,331

31,305,331

31,305,331

31,305,331

    Capital reserves

13,867,170

13,867,170

13,867,170

13,867,170

    Revenue reserves

15,887,829

15,887,829

15,887,829

15,887,829

    Equity valuation adjustments

0

0

0

0

    Profits (losses)

6,670,290

0

6,670,290

0

    Accumulated other comprehensive income

-5,417,108

-5,517,424

-5,417,108

-5,517,424

    Non-controlling shareholders

0

0

476,596

466,042

TOTAL SHAREHOLDERS' EQUITY

62,313,512

55,542,906

62,790,108

56,008,948

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

138,912,275

132,597,242

181,900,440

181,210,208

                                                                                                              

  

34

Disclaimer:

Este   Este material contém cálculos que podem não produzir uma soma ou resultado preciso devido a arredondamentos realizados


 
 

Income Statement

 R$ mil

 

Parent Company

Consolidated

 

06.30.2019

06.30.18

06.30.2019

06.30.18

NET OPERATING REVENUE

237,567

166,224

13,095,172

11,996,792

Operating costs

 

 

 

 

    Energy purchased for resale

-51,483

-3,661

-900,890

-701,461

    Charges upon use of electric network

0

0

-785,328

-866,448

    Construction

0

0

-267,060

-484,616

    Fuel for electricity production

0

0

-910,907

-406,337

NET OPERATING REVENUE

186,084

162,563

10,230,987

9,537,930

Operating expenses

 

 

 

 

    Personnel, Supllies and Services

-370,248

-323,683

-3,683,487

-3,829,680

    Depreciation

-6,723

-2,346

-821,277

-791,360

    Amortization

0

0

-51,453

-43,585

    Donations and contributions

-58,329

-60,505

-102,880

-85,385

    Operating Provisions /Reversals net

-1,311,774

-515,107

-2,029,036

198,160

    Investigation Findings

0

0

0

0

    Others

-88,919

-50,339

-573,895

-378,094

 

-1,835,993

-951,980

-7,262,028

-4,929,944

OPERATING INCOME BEFORE FINANCIAL RESULT

-1,649,909

-789,417

2,968,959

4,607,986

Financial result

 

 

 

 

   Financial income

 

 

 

 

    Income from interest, commissions and fees

1,070,127

2,408,524

540,877

1,714,087

    Income from financial investments

146,071

268,236

309,563

357,613

    Moratorium on electricity

126

4,385

161,790

115,139

    Restatement Assets

576,265

525,358

563,739

381,541

    Current foreign currency exchange rate variations

1,003,276

2,849,601

1,087,152

2,762,814

    Payment of indemnities - Law 12,783 / 13

0

0

1,781,356

2,976

    Regulatory asset update

0

0

0

0

    Gains on derivatives

0

0

0

163,004

    Other financial income

478,801

72,403

611,849

249,798

   Financial expenses

 

 

 

 

    Debt charges

-1,028,505

-731,277

-1,802,452

-1,199,188

    Lease charges

-3,195

0

-171,937

0

    Charges on shareholders' funds

-119,076

-115,672

-147,071

-141,480

    Noncurrent Restatement

-280,237

-321,593

-470,219

-363,569

    Noncurrent foreign currency exchange rate variations

-991,370

-2,768,239

-1,027,077

-2,877,836

    Regulatory liability update

0

0

0

-1,369,919

    Losses on derivatives

0

0

-25,059

-383

    Other financial expenses

-1,016,430

-391,494

-1,323,139

-655,070

 

-164,147

1,800,232

89,372

-860,473

INCOME BEFORE EQUITY

-1,814,056

1,010,815

3,058,331

3,747,513

RESULTS OF EQUITY

3,755,390

2,400,259

262,000

635,260

EFFECT ON DISPOSAL OF CORPORATE PARTICIPATIONS

0

0

183,222

0

OPERATING INCOME BEFORE TAXES

1,941,334

3,411,074

3,503,553

4,382,773

    Current Income tax and social contribution

-16,093

-594,361

-1,673,769

-1,588,655

    Deferred Income Tax and Social Contribution

0

0

41,364

52,221

NET INCOME/LOSS FOR THE PERIOD

1,925,241

2,816,713

1,871,148

2,846,339

SHARE ATTRIBUTED TO CONTROLLING

1,925,241

2,816,713

1,925,241

2,816,713

SHARE ATTRIBUTED TO NON-CONTROLLING

0

0

-54,093

29,626

DISCONTINUED OPERATION

 

 

 

 

NET LOSS OF OPERATING TAXES DISCONTINUED

5,037,140

-992,530

5,037,140

-990,712

NET INCOME (LOSS) OF THE FINANCIAL YEAR

6,962,381

1,824,183

6,908,288

1,855,627

         

 

   

35

Disclaimer:

Este   Este material contém cálculos que podem não produzir uma soma ou resultado preciso devido a arredondamentos realizados


 
 

Cash Flow Statement

R$ mil

 

 Controladora

 Consolidado

06.30.2019

06.30.18

06.30.2019

06.30.18

Operating Activities

 

 

 

 

Income before income tax and social contribution

1,941,334

3,411,074

3,503,553

4,382,773

Adjustments to reconcile income to cash provided by operations:

 

 

 

 

Depreciation and amortization

6,723

2,346

872,730

834,945

Net monetary variations

-296,028

-203,765

-93,520

-17,972

Net foreign exchange rate variations

-11,906

-81,362

-60,075

115,022

Financial charges

-97,501

-1,853,683

1,374,438

-514,899

Financial asset revenue

0

0

-404,702

-373,208

Construction Revenue

0

0

-249,218

-469,667

Equivalence equity results

-3,755,390

-2,400,259

-262,000

-635,260

Result on disposal of equity interests

0

0

-183,222

0

RBSE Revenue

0

0

-3,677,877

-1,092,084

Provision (reversal) for short-term liabilities

111,130

152,545

0

0

Provision (reversal) for doubtful accounts

236,498

11,581

337,310

154,333

Provision (reversal) for contingencies

75,156

376,137

621,855

842,654

Provision (reversal) for impairment of assets

0

0

0

413,179

Provision (reversal) for onerous contract

0

0

-341,900

-455,131

Provision (reversal) for losses on investments

-27,252

34,079

-62,286

16,287

TRFH – (Pará rate)

0

0

0

-1,183,583

Provision (reversal) Aneel - CCC

986,382

0

0

0

RGR Charges

59,074

176,436

59,074

176,436

Minority interest in income

0

0

81,957

-29,626

Charges on shareholders' funds

119,076

115,672

147,071

141,479

Financial instruments - derivatives

0

0

25,059

-162,621

Others

-291,084

-418,320

186,344

-555,185

 

-2,885,122

-4,088,593

-1,628,962

-2,794,901

(Increases) / decreases in operating assets

 

 

 

 

Customers

20,440

3,850

-999,623

547,678

Marketable securities

-2,765,164

985,699

-3,437,349

287,346

Reimbursement rights

442,985

0

-759,507

706,719

Warehouse

-124

-37

-5,038

-47,418

Nuclear fuel stock

0

0

78,691

-20,216

Financial assets - Itaipu and public service concessions

28,433

45,671

28,433

45,671

Assets held for sale

3,490,843

0

11,618,261

-6,371,370

Hydrological risk

0

0

47,157

60,483

Credits with subsidiaries - CCD

2,406,622

0

0

0

Others

-1,380,736

-213,051

-1,942,236

2,798,576

 

2,243,298

822,131

4,628,788

-1,992,532

Increase / (decrease) in operating liabilities

 

 

 

 

Suppliers

97,989

454

-453,159

-284,256

Advances from customers

0

0

-36,081

-44,157

Lease

67,246

0

217,101

155,704

Estimated liabilities

-34,738

21,880

-84,043

46,149

indemnification obligations

0

0

0

-133,539

Sectorial charges

0

0

5,871

-8,828

Liabilities associated with assets held for sale

-1,832,382

0

-8,579,161

3,281,298

Accounts payable with subsidiaries

-2,866,810

0

0

0

Other

248,814

158,054

871,064

-2,217,961

 

-4,319,881

180,389

-8,058,408

794,410

 

 

 

 

 

Payment of financial charges

-576,159

-779,550

-1,551,736

-1,559,066

Payment of RGR charges

-111,938

-100,029

-111,938

-100,029

Financial charges received

0

0

3,589,228

4,407,848

income tax payment and social contribution

986,671

710,527

672,329

334,661

      Payment of refinancing of taxes and contributions - principal

-205,568

-120,039

-1,455,976

-913,687

      investment compensation received in corporate participations

0

0

-14,997

-35,421

Pension payment

1,813,145

393,599

314,831

475,197

Payment of legal provisions

-14,786

-14,162

-85,741

-149,246

Judicial deposits

-501,460

-436,372

-546,385

-460,125

 

-233,393

-58,365

-9,745

-123,644

Net cash provided by (used in) operating activities of continuing operations

-1,863,858

-79,391

-755,158

2,266,238

Net cash provided by (used in) operating activities of discontinued operations

0

0

-421,061

-1,048,859

Net cash provided by (used in) operating activities

-1,863,858

-79,391

-1,176,219

1,217,379

 

 

 

 

 

 

36

Disclaimer:

Este   Este material contém cálculos que podem não produzir uma soma ou resultado preciso devido a arredondamentos realizados


 
 

 

 

 

 

 

Financing activities

 

 

 

 

Loans and financing

5,000,000

0

5,755,633

495,990

Payment of loans and financing - Main

-2,125,022

-1,523,065

-3,574,750

-3,249,968

Payment of shareholders remuneration

-476

0

-10,368

-6,045

Advanced receivalbe for future capital increase

0

0

0

0

RGR resource for transfer

0

0

0

0

      Other

0

0

2,512

10,781

Net cash provided by (used in) financing activities from continuing operations

2,874,502

-1,523,065

2,173,027

-2,749,243

Net cash provided by (used in) financing activities of discontinued operations

0

0

414,724

1,056,242

Net cash provided by (used in) financing activities

2,874,502

-1,523,065

2,587,751

-1,693,001

 

 

 

 

 

Investing activities

 

 

 

 

Lending and financing

-619,724

-211,002

-44,658

0

loans and financing receivables

3,739,200

1,478,547

3,256,667

1,065,168

Acquisition of fixed assets

-153

-3,732

-434,931

-382,008

Acquisition of intangible assets

-53

0

-14,223

-15,164

Acquisition of concession assets

 

 

 

 

Acquisition / capital investment in equity

-6,860

-140,700

-210,774

-605,619

Advance concession for future capital increase

-197,644

0

-60,282

-5,674

Investment sale in shareholdings

0

363,813

-121,356

363,813

Net cash flow in the acquisition of investees

0

0

0

0

Other

0

0

-2,907

47,526

Net cash provided by (used in) investing activities from continuing operations

2,914,766

1,486,926

2,367,536

468,043

Net cash provided by (used in) investment activities of discontinued operations

0

0

6,337

-17,085

Net cash provided by (used in) investing activities

2,914,766

1,486,926

2,373,873

450,958

 

 

 

 

 

 Increase (decrease) in cash and cash equivalents

3,925,410

-115,530

3,785,405

-24,665

 

 

 

 

 

       Cash and cash equivalents at the beginning of the financial year

47,400

161,326

583,352

597,837

      Cash and cash equivalents at the end of the financial year

3,972,810

45,796

4,368,757

582,874

       Increase (decrease) in cash and cash equivalents

0

0

0

-9,702

 

3,925,410

-115,530

3,785,405

-24,665

 

37

Disclaimer:

Este   Este material contém cálculos que podem não produzir uma soma ou resultado preciso devido a arredondamentos realizados

 

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: September 2, 2019
CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS
By:
/SElvira Baracuhy Cavalcanti Presta
 
Elvira Baracuhy Cavalcanti Presta
CFO and Investor Relations Officer
 
 

 

 
FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.