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____
Marketletter 1Q15
Summary
|
Page |
| |
Introduction |
02 |
|
Conference Call in Portuguese May 18, 2015 2:00 PM (Brasília) 1:00 PM (New York) 6:00 PM (London) Phone: 55 (11) 3137-8030 Password: 9532 |
I. Analysis of the Results of the Consolidated Companies |
04 | ||
II. Analysis of the Results of the Parent Company |
09 | ||
III. General Information |
12 | ||
IV. Attachment: Subsidiary Companies Information |
27 |
||
|
Conference Call in English May 18, 2015 2:00 PM (Brasília) 1:00 PM (New York) 6:00 PM (London) Telefone: +1 786 837 9597 (+44) 20 3318 3776 ( London) Senha: 9532 | ||
|
| ||
|
IR Contact: www.eletrobras.com/elb/ri Tel: (55) (21) 2514-6333 |
1
Marketletter 1Q15
Rio de Janeiro, May 15, 2015 - Eletrobras (Centrais Elétricas Brasileiras S.A.) (BM&FBOVESPA: ELET3 and ELET6 – NYSE: EBR and EBR-B – LATIBEX: XELTO and XELTB), the largest company in the electricity sector in Latin America, parent company of 13 subsidiaries, operating in the generation, transmission and distribution segments, a participation company named Eletropar, and a 50% interest in the social capital of Itaipu Binational Company, announces its results for the period.
Eletrobras presented, showed an overall consolidated net income attributed to the controlling in the amount of R$ 1,255 million in the first quarter of 2015 (1Q15) as compared to a net loss attributed to the controlling in the amount of R$ 1,174 million in the fourth quarter of 2014 (4Q14). In the first quarter of 2014 (1Q14) the Company presented a net income attributed to the controlling in the amount of R$ 1,034 million. This result were influenced mainly due to the new generation and transmission tariffs regarding the assets whose concessions were renewed as per Law 12,783/13 and by certain facts that we hereby highlight:
In a positive way: i) Compared to the 4Q14 the revenues from sales in the spot market (CCEE) increased by 17%; ii) Reversal of provisions related to onerous contracts in the amount of R$ 75 million in the 1Q15, see item I.4; iii) Reduction of 18.9% in the electricity purchased for resale in the 1Q15 compared to the 4Q14; iv) Monetary adjustment of the remuneration of indemnities relating to Law 12.783 /13 in the 1Q15 of R$ 495 million; v) Positive effect from shareholdings in the amount of R$ 41 million compared to a negative effect of R$ 556 million in the 4Q14; and vi) Net results due to foreign currency exchange rate variations with a positive result in the amount of R$ 341 million in 1Q15 and R$ 169 million in 4Q14; vii) recognition of the CVA (Variation Compensation Account of items of the "Amount A") amounts and other financial components in the amount of R$ 282 million.
In a negative way: i) Compared to the 4Q14 the revenues from the Generation segment in 1Q15 decreased by 7%; (ii) Provision for contingencies in the amount of R$ 252 million, with the majority part from provision and expenses for compulsory loans; iii) provision for PCLD of customers and resellers in the amount of R$ 102 million; and iv) Debt charges of R$ 1,009 million.
HIGHLIGHTS OF THE CONSOLIDATED RESULTS OF FIRST QUARTER OF 2015:
· Net Operational Income – NOI in the amount of R$ 8,599 million;
· Electricity purchased for resale in the amount of R$ 2,923 million;
· Personnel expenses in the amount of R$ 1,325 million;
· Net operating provisions in the amount of R$ 327 million;
· Net results due to foreign currency exchange rate variations with a positive result in the amount of R$ 341 million; and
· The EBITDA of the Eletrobras Subsidiary Companies summed a total of R$ 1,806 million.
2
Marketletter 1Q15
I. ANALYSIS OF THE CONSOLIDATED RESULTS (R$ million)
R$ Million | |||
1Q15 |
4Q14 |
1Q14 | |
Net Operating Income |
8,599 |
9,781 |
7,008 |
(-) Energy purchased for resale |
-2,922 |
-3,605 |
-1,678 |
(-) Usage of the electric grid |
-465 |
-406 |
-367 |
(-) Fuel for electricity production |
-299 |
-440 |
-317 |
(-) Construction |
-563 |
-1,101 |
-537 |
Gross Results |
4,350 |
4,229 |
4,109 |
(-) Personnel, Material and Services |
-2,004 |
-2,594 |
-1,727 |
(-) Remuneration and Reimbursement |
-100 |
-74 |
-133 |
(-) Depreciation and amortization |
-463 |
-608 |
-384 |
(-) other expenditures |
-579 |
207 |
-999 |
|
1,204 |
1,160 |
867 |
Shareholdings |
41 |
-556 |
93 |
Operating provisions |
-327 |
-1,033 |
342 |
918 |
-428 |
1,301 | |
Interest income and financial investments |
526 |
778 |
504 |
Monetary Adjustement |
191 |
193 |
149 |
Foreign currency exchange rate variations |
341 |
169 |
-119 |
Debt charges |
-1,009 |
-1,202 |
-581 |
Charges related to Shareholders Resources |
-8 |
-13 |
-28 |
Other financial results |
552 |
730 |
120 |
1,511 |
227 |
1,346 | |
Income Tax and Social Contribution |
-398 |
-1,340 |
-305 |
Net Income |
1,113 |
-1,113 |
1,041 |
Minority Shareholders |
-142 |
61 |
07 |
Net Income attributed to controlling |
1,255 |
-1,174 |
1,034 |
I.1 Financial Highlights
Main Variations in Results (1Q 2015 x 4Q 2014)
The result of 1Q 2015 increased 206.9% when compared to the 4Q 2014, whereas a net income attributed to the controlling in the amount of R$ 1,255 million was registered in 1Q15 as compared to a net loss in the amount of R$ 1,174 million in 4Q14.
Net Operating Income, in the amount of R$ 8,599 million registered in 1Q15 a 12.1% decrease as compared to 4Q14, when it was registered an amount of R$ 9,781 million. Excluding the sales revenues in the spot market (CCEE), the revenue from construction and the CVA impact, the NOI would have shown a decrease of 0.5%, from R$ 7,183 million in the 4Q14 to R$ 7,149 million in the 1Q15. In the analysis by segment, the following highlights as presented:
» Generation income registered a 4.0% increase, from R$ 5,379 million in 4Q14 to R$ 5,596 million in 1Q15. Such increase was mainly due to electricity sales within the spot market (CCEE). The total energy sold went from 64 TWh in 4Q14 to 60 TWh in 1Q15. Construction revenue was registered at its equivalent value as cost of construction.
3
Marketletter 1Q15
» Transmission income showed a 26.6% decrease, from R$ 1,526 million in 4Q14 to R$ 1,120 million in 1Q15, influenced by a decrease in the revenue from construction which was registered at its equivalent value as cost of construction.
» Distribution income showed a 13.1% decrease from R$ 4,112 million in 4Q14 to R$ 3,575 million in 1Q15. The supply of electricity registered a 2.6% increase from R$ 3,037 million in 4Q14 to R$ 3,117 million in 1Q15. The recognition of the CVA and other financial components presented a 61.8% decrease in the 1Q15, from R$ 740 million in the 4Q14 to R$ 282 million in the 1Q15. The volume of electricity sold went from 7.5 TWh in 4Q14 to 7.1 TWh in 1Q15. Construction revenue was registered at its equivalent value as cost of construction.
-Electricity purchased for future resale registered a 18.9% decrease, from R$ 3,605 million in 4Q14 to R$ 2,923 million in 1Q15. This result was mainly due to the variation accrued by the PLD (Preço de Liquidação das Diferenças) values.
-The Fuel for the production of Electricity line registered a 32.0% decrease. Throughout 4Q14 it registered a net expense in the amount of R$ 440 million, whilst in 1Q15 it registered a net expense in the amount of R$ 299 million due to lower reimbursement from CCC as shown on Law 12,111/99 in CGTEE and Amazonas Energia in the 4Q14, and due to a reduction of generated energy of thermal plants Santa Cruz and Camaçari.
-Throughout 2014 the full amount of the Personnel, Material and Service (PMS) line showed a 22.7% decrease from R$ 2,594 million in 4Q14 to R$ 2,004 million in 1Q15. Personnel decreased by 19.2% from R$ 1,640 million in 4Q14 to R$ 1,325 million in 1Q15. The Third party services decreased by 29.6% from R$ 878 million in the 4Q14 to R$ 618 million in 1Q15 and the material line item decreased by 19.1% and from R$ 76 million in the 4Q14 to R$ 61 million in the 1Q15, see item I.7.
-Operating provisions went from a provision of R$ 1,033 million in the 4Q14 to a provision of R$ 327 million in the 1Q15. In the 1Q15, the operating provision were influenced mainly by provisions for contingencies in the amount of R$ 253 million, provision to cover doubtful credits of customers and resellers in the amount of R$ 102 million and provision for losses on investments in the amount of R$ 22 million (see item I.3). The provision were partially compensated by the reversal on onerous contracts in the amount of R$ 75 million (see item I.4).
-Shareholdings line registered a 107.4% variation, from an accounting of a negative result in the amount of R$ 556 million in 4Q14 and a positive result in the amount of R$ 41 million in the 1Q15. The variation was due mainly to the negative results obtained by SPE Madeira Energia S.A (Santo Antonio Hydroelectric Power Plant) which was the strongest influence related to equity investments variation in affiliated companies.
4
Marketletter 1Q15
-Net Financial Result line registered a net revenue of R$ 655 million in 4Q14 as compared to a net revenue of R$ 593 million in 1Q15, which represents a 9.4% decrease. This variation was mainly due to a 97% decrease in the revenues from a derivative operation, a 50% decrease from financial borrowing partially compensated by positive effect 102% regarding the currency variation and by the 16% decrease in debt charges expenses in the 1Q15.
I.2 Net Operating Income (NOI)
Throughout 1Q15 the Net Operating Income (NOI) registered a 12.1% decrease as compared to the previous quarter, from R$ 9,781 million to R$ 8,599 million in 1Q15. With regards to the 1Q14, the Net Operating Income registered an amount of R$ 7,008 million, representing a 22.7% increase.
CONSOLIDATED |
1Q15 |
|
4Q14 |
|
1Q14 |
Variation 1Q15 x4Q14 |
a)Generation |
|
|
|
|
|
|
Energy Sold |
3,117 |
|
3,354 |
|
2,535 |
-7.0% |
Supply |
922 |
|
814 |
|
940 |
13.3% |
CCEE |
887 |
|
757 |
|
1,697 |
17.2% |
Maintenance and Operation Revenue |
455 |
|
460 |
|
456 |
-1.0% |
Construction Revenue |
94 |
|
92 |
|
23 |
2.2% |
Itaipu Transfers (see item II.3.a) |
121 |
|
-96 |
|
19 |
-225.6% |
|
|
|
|
|
|
|
b) Transmission |
|
|
|
|
|
|
Maintenance and Operation Revenue |
622 |
|
580 |
|
576 |
7.1% |
Construction Revenue |
294 |
|
674 |
|
332 |
-56.4% |
Transmission Return Rate Update |
204 |
|
272 |
|
149 |
-25.0% |
|
|
|
|
|
|
|
c) Distribution |
|
|
|
|
|
|
Supply |
3,117 |
|
3,777 |
|
1,015 |
2.6% |
Construction Revenue |
176 |
|
335 |
|
182 |
-47.6% |
CVA and other financial components |
282 |
|
- |
|
- |
-61.8% |
|
|
|
|
|
|
|
Other Revenue |
339 |
|
654 |
|
220 |
-48.1% |
|
|
|
|
|
|
|
Gross Revenue |
10,630 |
|
11,632 |
|
8,144 |
-8.6% |
|
|
|
|
|
|
|
Operating Income Deduction |
|
|
|
|
|
|
Sectorial Charges |
-407 |
|
-275 |
|
-261 |
8.2% |
ICMS |
-813 |
|
-751 |
|
-288 |
-2.5% |
PASEP and COFINS |
-805 |
|
-825 |
|
-585 |
-2,5% |
Other Deductions |
-6 |
|
- |
|
-01 |
9.7% |
|
|
|
|
|
|
|
Net Operating Income |
8,599 |
|
9,781 |
|
7,008 |
-12.1% |
Participation of business in relation to Gross Revenues –2015
5
Marketletter 1Q15
I.2. Energy sold
I.2.1 Energy Sold in 2015 - Generation Companies – TWh
In terms of the energy market evolution, the Eletrobras companies during the 2015, sold 60 TWh of energy, as compared to 64 TWh traded in the same period of the previous year, representing a 6.2% decrease.
I.2.2 Energy Sold in 2015 – Distribution Companies – Twh
In terms of the energy market evolution, the Eletrobras Distribution System in 2015, sold 7.1 TWh of energy, as compared to 4.2 TWh traded in the same period of the previous year, representing a 71.4% increase.
6
Marketletter 1Q15
I.3 Operating Provisions
R$ million | ||||
|
Consolidated | |||
|
|
1Q15 |
4Q14 |
1Q14 |
Guarantees |
|
-01 |
64 |
21 |
Contingencies |
|
253 |
2,036 |
00 |
PCLD - Customers and Resellers |
|
102 |
37 |
-26 |
PCLD - Financing and Loans |
|
12 |
03 |
-35 |
Unfunded liabilities in subsidiaries |
|
- |
- |
- |
Onerous Contracts |
|
-75 |
-567 |
-258 |
Losses on Investments |
|
22 |
129 |
-309 |
Impairment |
|
- |
-317 |
- |
Adjustment to Market Value |
|
00 |
- |
111 |
Provision for losses on Fixed Asset |
|
- |
235 |
- |
Provision for losses on Environmental Compensation |
|
- |
105 |
- |
Provision for losses on Financial Asset |
|
- |
-1,199 |
80 |
Others |
|
14 |
508 |
75 |
|
|
327 |
1,033 |
-342 |
Note: Negative values in the table above indicate reversals of provisions.
Provisions for legal liabilities linked to legal proceedings
R$ million | ||||
|
|
| ||
|
|
03/31/2015 |
|
12/31/2014 |
Current |
|
|
|
|
Labor |
|
14 |
|
13 |
Civil |
|
270 |
|
19 |
|
|
284 |
|
32 |
Non-current |
|
|
|
|
Labor |
|
953 |
|
930 |
Tax Related |
|
255 |
|
237 |
Civil |
|
7,408 |
|
7,783 |
|
|
8,615 |
|
8,950 |
|
|
8,899 |
|
8,982 |
I.4 Onerous Contracts
|
|
R$ million | ||||
Consolidated Balance |
Amounts due 2015* | |||||
|
2015 |
2014 |
2013 |
1Q15 | ||
Transmission |
|
|
|
| ||
Contract 061/2001 |
|
- |
- |
| ||
Contract 062/2001 |
553 |
608 |
875 |
-55 | ||
Others |
23 |
24 |
- |
-01 | ||
|
576 |
632 |
875 |
-56 | ||
Generation |
|
|
|
| ||
Itaparica |
- |
- |
863 |
- | ||
Jirau |
- |
- |
712 |
- | ||
Camaçari |
87 |
91 |
267 |
-04 | ||
Termonorte II |
- |
- |
- |
- | ||
Funil |
128 |
132 |
96 |
-04 | ||
Paulo Afonso Complex |
- |
- |
- |
- | ||
Mauá-Klabin |
- |
- |
20 |
| ||
Coaracy Nunes |
30 |
30 |
89 |
-00 | ||
Others |
236 |
246 |
30 |
-10 | ||
|
481 |
500 |
2,057 |
-19 | ||
Distribution |
|
|
|
| ||
Intangibles* |
- |
- |
295 |
- | ||
TOTAL |
1,057 |
1,132 |
3,228 |
-75 | ||
7
Marketletter 1Q15
*The table considers an increase in the amount of R$ 50 million from the onerous contract of the Amazonas Energia intangibles that does not show in the Company results.
I.5 CONSOLIDATED EBITDA
|
|
|
R$ million | |
EBITDA |
1Q15 |
1Q14 |
(%) |
4Q14 |
Results of the period |
1,114 |
1,041 |
7% |
-1,113 |
+ Provision Income Tax and Social Contribution |
398 |
305 |
31% |
1,340 |
+ Financial Result |
-593 |
-44 |
-1242% |
-655 |
+ Depreciation and Amortization |
463 |
384 |
21% |
608 |
=EBITDA |
1,381 |
1,685 |
-18% |
180 |
I.5.EBITDA of Subsidiaries Companies*
Throughout the 1Q15 the sum of the EBITDA of the Eletrobras Subsidiary Companies registered a positive amount of R$ 1,806 million which represents a 2% increase, as compared to the negative EBITDA of R$ 1,753 million registered in the 4Q14. Throughout the 1Q14 the EBITDA of the Eletrobras Subsidiary Companies summed a total of R$ 1,840 million.
EBITDA R$ Million | ||||||
Company |
1Q15 |
1Q14 |
% |
1Q15 |
4Q14 |
(%) |
Eletronorte |
417 |
1,322 |
-68% |
417 |
-426 |
-198% |
Chesf |
123 |
40 |
205% |
123 |
537 |
-77% |
Furnas |
684 |
593 |
15% |
684 |
307 |
123% |
Eletronuclear |
174 |
-133 |
-231% |
174 |
-508 |
-134% |
Eletrosul |
180 |
248 |
-27% |
180 |
18 |
875% |
CGTEE |
-64 |
-43 |
48% |
-64 |
02 |
-2810% |
Subtotal |
1,513 |
2,027 |
-25% |
1,513 |
-68 |
-2,313% |
Distribution Companies |
293 |
-187 |
-257% |
293 |
1,822 |
-84% |
Total |
1,806 |
1,840 |
-2% |
1,806 |
1,753 |
3% |
EBITDA MARGIN R$ million | ||||||
Company |
1Q15 |
1Q14 |
% |
1Q15 |
4Q14 |
(%) |
Eletronorte |
29.6% |
68.9% |
-39.30 |
29.6% |
-10.3% |
39.91 |
Chesf |
13.4% |
4.5% |
8.90 |
13.4% |
20.1% |
-6.73 |
Furnas |
40.9% |
41.2% |
-0.30 |
40.9% |
6.3% |
34.60 |
Eletronuclear |
34.7% |
-27.2% |
61.90 |
34.7% |
-35.3% |
70.00 |
Eletrosul |
47.0% |
97.5% |
-50.50 |
47.0% |
2.1% |
44.86 |
CGTEE |
-53.4% |
-57.7% |
4.30 |
-53.4% |
0.6% |
-53.99 |
Subtotal |
30.3% |
40.0% |
-9.68 |
30.3% |
-0.5% |
30.75 |
Distribution Companies |
9.3% |
-12.8% |
22.05 |
9.3% |
27.3% |
-18.01 |
Total |
22.1% |
28.2% |
-6.04 |
22.1% |
8.3% |
13.81 |
EBITDA = Net income plus income taxes over profits minus net financial expenses Financial income and depreciation, amortization and depletion, as determined by CVM Instruction 527/12.
p.p = percentage points
* Source: Financial statements for consolidation
8
Marketletter 1Q15
I.6 NET DEBT
|
R$ million | |
Net Debt |
1Q15 |
1Q14 |
Financing payble - (RGR) |
37,180 |
32,155 |
(-)Cash + Marketable Securites |
6,713 |
5,362 |
(-)Financing receivable - (RGR) |
13,798 |
11,618 |
Net Debt |
16,669 |
15,175 |
This value corresponds to the amount reimbursed to Eletrobras due to the acquisition and commercialization of all energy resources belong to Brazil, generated by Itaipu Binational, under the Treat signed on 26 April 1973 between Brazil and Paraguay.
I.7. Personnel, material and service
|
|
R$ million | ||||||
|
1Q15 |
1Q15* |
1Q14 |
(%) Excluding Celg D |
(%) Consdiering Celg D |
1Q15 |
4Q14 |
(%) |
Personnel |
1,325 |
1,249 |
1,172 |
6.6% |
13.1% |
1,325 |
1,640 |
-19.2% |
Material |
61 |
58 |
67 |
-13.4% |
-9.2% |
61 |
76 |
-19.7% |
Services |
618 |
500 |
487 |
2.7% |
26.8% |
618 |
878 |
-29.6% |
* The consolidation of CELG D was of September 2014. For comparison purposes, the personnel, material and services expenses were excluded from CELG D.
II. Analysis of the Results of the Parent Company
Note: The analysis of the results of the subsidiary companies can be found in the Annex.
9
Marketletter 1Q15
II.1.Eletrobras Shareholdings
Throughout the 1Q15 the result regarding shareholdings had a positive impact in Eletrobras overall results in the amount of R$ 972 million, which represents a 36.3% variation as compared to the positive amount of R$ 1,525 million registered in 1Q14, due mainly to the equity equivalence of the subsidiary companies.
The recognition of the results obtained by the companies invested by Eletrobras made a negative impact on the 4Q14 results in the amount of R$ 945 million due to the valuation of shareholding investments mainly due to the result of the equity equivalence of the subsidiaries companies, as shown below:
II.2.Financial Results
R$ million | |||
|
Parent Company |
| |
|
1Q15 |
4Q14 |
1Q14 |
Investments in subsidiary companies |
|
|
|
Equity Equivalence |
924 |
-930 |
1,440 |
|
|
|
|
Investments in affiliated |
|
|
|
Interest on Equity |
- |
- |
- |
Equity Equivalence |
34 |
-43 |
29 |
|
|
|
|
|
|
|
|
Other investiments |
|
|
|
Interest on Equity |
- |
- |
0 |
Dividends |
04 |
18 |
03 |
Remuneration of Investments in Partnerships |
07 |
06 |
06 |
Capital Income - ITAIPU |
03 |
04 |
47 |
|
13 |
28 |
56 |
|
|
|
|
Total |
972 |
-945 |
1,525 |
Along the 1Q15, Financial Results positively impacted the overall results of the Parent Company in the amount of R$ 1,243 million, as compared to the amount of R$ 373 million in the 1Q14. This variation is primarily explained by the currency variation.
Throughout the 4Q14, Financial Results positively impacted the overall results of the Parent Company in the amount of R$ 891 million, as shown in table below:
FINANCIAL RESULT |
|
|
|
R$ million |
|
1Q15 |
1Q14 |
4Q14* | |
Financial Revenues |
|
|
| |
Interest income, commissions and fees |
695 |
551 |
749 | |
Income from financial investments |
136 |
90 |
92 | |
Arrears surcharge on electricity |
47 |
40 |
23 | |
Monetary adjustments |
336 |
146 |
194 | |
Foreign currency exchange rate variations |
659 |
-109 |
296 | |
Other Financial revenues |
16 |
51 |
28 | |
|
|
|
| |
Financial Expenses |
|
|
| |
Debt Charges |
-550 |
-366 |
-442 | |
Charges on Leasing Contracts |
- |
- |
0 | |
Charges on shareholders' funds |
-05 |
-25 |
-5 | |
Other Financial Expenses |
-89 |
-06 |
-42 | |
Total |
1,243 |
373 |
891 |
*Reviewed.
10
Marketletter 1Q15
The main indexes of the loans and transfer agreements showed the following variations in the period:
Evolution of the IGP-M Index and the Dollar (%)
|
1Q15 |
1Q14 |
US Dollar |
20.77 % |
-3.40% |
IGPM |
2.02 % |
2.55% |
II.3. Sale of electricity of Parent Company
FINANCIAL RESULT - ITAIPU |
R$ million | ||
|
1Q15 |
4Q14 |
1Q14 |
Energy sales Itaipu + CCEE Contract |
3,322 |
1,923 |
2,012 |
Revenue from Right to Reimbursement(1) |
57 |
528 |
67 |
Others |
48 |
262 |
31 |
Total Revenue |
3,426 |
2,713 |
2,110 |
|
|
|
|
Energy purchased Itaipu + CCEE Contract |
-2,232 |
-4,704 |
-2,078 |
Expense from Reimbursement Obligations (2) |
-37 |
-367 |
-42 |
Itaipu transfers |
-1,316 |
2404 |
107 |
Others |
279 |
-143 |
-78 |
Total Expenses |
-3,305 |
-2,809 |
-2,091 |
|
|
|
|
Net Op Income - Tranfers from Itaipu |
121 |
-96 |
19 |
|
|
|
|
FINANCIAL RESULT - ITAIPU (price indexes) | |||
|
1Q14 |
2Q14 |
3Q14 |
Lawful Rights (RR) (1) |
57 |
528 |
67 |
+ Foreign Currency Exch. Rate Results |
1,136 |
461 |
-169 |
Result from Right to Reimbursements (RR) |
1,193 |
989 |
-102 |
Obligation Expenditures (2) |
37 |
367 |
42 |
+ Foreign Currency Exch. Rate Results |
733 |
288 |
-106 |
Result from Reimbursement Obligations(OR) |
770 |
655 |
-64 |
Balance: RR - OR |
423 |
334 |
-38 |
Itaipu Binational
a.1 Financial Asset Itaipu Binacional
The balance resulting from the adjustment factor from Itaipu Binational, shown on Financial Asset at the Non-Current Assets amounted to R$ 6,661 million on March 31st, 2015, equivalent to US$ 2,077 million (December 31st , 2014 – R$ 5,469 million, equivalent to US$ 2,059 million), of which R$ 4,297 million, equivalent to US$ 1,328 million shall be transferred to the National Treasury until year 2023 represented by reimbursement obligations, as a result of a credit transaction which took place between the Company and the National Treasury in 1999. Such amounts will be realized through its inclusion in the sales tariff to be practiced until 2023.
11
Marketletter 1Q15
Commercialization of Eletric Energy– PROINFA
Trading electricity within the PROINFA registered a positive net result in the period ended by 2014 in the amount of R$ 29 million (March 31, 2015 by R$ 84 million), producing no effect on net income of the company. This value is included under the Reimbursement Obligations. The balance of resellers consumers line registered the amount R$ 515 million of PROINFA related to the Parent Company (December 31st, 2014 – R$ 573 million).
III.Eletrobras Information
Portfolio of Loans Receivable and Payable
Financing and Loans Granted
The financing and loans granted are determined on the company's own funds, as well as sectoral and external resources funds raised through international development agencies, financial institutions and resulting from the issuance of bonds in the international financial market.
All financing and loans are supported by formal agreements with the borrowers. The receivables of these values, in most cases, are planned in monthly installments, repayable in an average term of 10 years and the average interest rate, weighted by the portfolio balance, of 6.56% per year.
Financing and loans granted, with foreign currency exchange rate variation clauses, represent approximately 42% of the total portfolio of the Company (38% on December 31st, 2014). The remainder that predict adjustment based on indexes that represent the level of domestic prices in Brazil reach 59% of the portfolio balance (62% on December 31st, 2014).
The market value of these assets are equivalent to their accounting value, since they are industry specific operations and formed, in part, by resources from Sector Funds that don’t have comparable parameters with other loans.
The long-term portion of loans and financing granted from regular and Sector Funds, including transfers based on the contractual expected cash flows shall mature in variable amounts as shown below:
R$ million | |||||||
2016 |
2017 |
2018 |
2019 |
2020 |
Beyond 2020 |
Total | |
Parent company |
2,712 |
6,668 |
6,180 |
5,731 |
5,378 |
2,437 |
29,106 |
Consolidated |
1,838 |
1,933 |
2,010 |
2,170 |
2,099 |
3,496 |
13,548 |
Financing and Loans Payable
Debts are guaranteed by the Federal Government and/or by Eletrobras and subject to charges, which averaged along 2014 at 5,23% per annum (5.20% per annum in 2014) with the following debt profile:
12
Marketletter 1Q15
|
Parent Company |
|
Consolidated | ||||||||
03.31.2015 |
|
03.31.2014 |
|
03.31.2015 |
|
03.31.2014 | |||||
Balance in R$ million |
% |
|
Balance in R$ million |
% |
|
Balance in R$ million |
% |
|
Balance in R$ million |
% | |
Local Currency |
|||||||||||
USD |
10,258 |
34% |
8,252 |
32% |
10,269 |
24% |
8,261 |
21% | |||
USD with Libor |
3,273 |
11% |
2,892 |
11% |
3,674 |
8% |
3,223 |
8% | |||
EURO |
206 |
1% |
191 |
1% |
206 |
0% |
222 |
1% | |||
YEN |
178 |
1% |
172 |
1% |
205 |
0% |
172 |
0% | |||
Others |
- |
0% |
- |
0% |
02 |
0% |
01 |
0% | |||
Subtotal |
13,915 |
46% |
11,507 |
44% |
14,355 |
33% |
11,878 |
30% | |||
|
|||||||||||
Foreign Currency |
|||||||||||
CDI |
6,514 |
22% |
4,511 |
17% |
11,564 |
27% |
9,598 |
24% | |||
IPCA |
- |
0% |
- |
0% |
- |
0% |
- |
0% | |||
TJLP |
- |
0% |
- |
0% |
5,374 |
12% |
5,827 |
15% | |||
SELIC |
2,370 |
8% |
2,580 |
10% |
2,608 |
6% |
2,830 |
7% | |||
Others |
- |
0% |
- |
0% |
1,493 |
3% |
1,793 |
5% | |||
Subtotal |
8,885 |
30% |
7,092 |
27% |
21,039 |
48% |
20,049 |
51% | |||
|
|||||||||||
Non indexed |
7,156 |
24% |
7,422 |
29% |
8,172 |
19% |
7,613 |
19% | |||
|
|||||||||||
TOTAL |
29,955 |
100% |
26,020 |
100% |
43,565 |
100% |
39,539 |
100% |
The long-term loans and financing expressed in millions of Reais, shall mature as follows:
|
R$ million | ||||||
2016 |
2017 |
2018 |
2019 |
2020 |
Beyond 2020 |
Total | |
Parent Company |
1,955 |
3,463 |
2,488 |
5,004 |
1,715 |
12,207 |
26,832 |
Consolidated |
2,623 |
4,819 |
4,756 |
6,065 |
2,677 |
17,236 |
38,176 |
Ratings
Agency
|
Rating National/Perspective |
Latest Report |
Moody’s Issuer Rating |
Baa3 (Negative) |
May 7th, 2013 |
S&P LT Local Currency |
BBB+ (Stable) |
March 24th, 2014 |
S&P LT Foreign Currency |
BBB- (Stable) |
March 24th, 2014 |
Fitch LT Local Currency Issuer |
BB (Negative) |
December 6th, 2013 |
Fitch LT Foreign Currency Issuer |
BB (Negative) |
December 6th, 2013 |
13
Marketletter 1Q15
Investiments
R$ Million
NATURE OF THE INVESTMENTS |
Budgeted |
|
Accomplished
|
2015 |
1Q15 |
(%) | |
Generation |
8,054 |
1,105 |
13.7% |
Corporate Expansion |
4,396 |
356 |
8.1% |
Expansion of SPEs |
2,846 |
706 |
24.8% |
Maintenance |
812 |
43 |
5.3% |
Transmission |
4,213 |
438 |
10.4% |
Corporate Expansion |
2,795 |
255 |
9.1% |
Expansion of SPEs |
711 |
126 |
17.8% |
Maintenance |
706 |
57 |
8.1% |
Distribution |
1,422 |
85 |
6.0% |
Corporate Expansion |
1,216 |
59 |
4.9% |
Maintenance |
206 |
25 |
12.3% |
Others (Research, Infrastructure and Environmental Quality) |
802 |
58 |
7.3% |
Total |
14,491 |
1,686 |
11.6% |
Social Capital
Capital Structure
As of March 31st, 2015 the social capital of Eletrobras had the following composition:
Shareholders |
Common |
Pref. Class “A” |
Pref. Class “B” |
Total | ||||
1,087,050,297 |
% |
146,920 |
% |
265.436.883 |
1,087,050,297 |
% |
146,920 | |
Federal Government |
554,395,652 |
51.00% |
|
|
1,544 |
0.00% |
554,397,196 |
40.99% |
BNDESpar |
141,757,951 |
13.04% |
|
|
18,691,102 |
7.04% |
160,449,053 |
11.86% |
BNDES |
74,545,264 |
6.86% |
|
|
18,262,671 |
6.88% |
92,807,935 |
6.86% |
FND |
45,621,589 |
4.20% |
|
|
|
|
45,621,589 |
3.37% |
FGHAB |
1,000,000 |
0.09% |
|
|
|
|
1,000,000 |
0.07% |
FGEDUC |
7,779,030 |
0.72% |
|
|
|
|
7,779,030 |
0.58% |
CEF |
8,701,564 |
0.80% |
|
|
|
|
8,701,564 |
0.64% |
FGI |
|
|
|
|
8,750,000 |
3.30% |
8,750,000 |
0.65% |
Others |
253,249,247 |
23.30% |
146,920 |
100,00% |
219,731,566 |
82.78% |
473,127,733 |
34.98% |
|
|
|
|
|
|
|
|
|
15
Marketletter 1Q15
Share performance analysis
Shares
Eletrobras Common Shares – ELET3
During the 1Q15 Eletrobras’ common shares (ELET3) decreased their value by 0.7% closing at R$ 5.76. The maximum price achieved by those shares was R$ 6.04 on March 25th, and the lowest price registered was R$ 4.90 on March 11th . The quotations related are ex-dividend values. The average volume of shares traded daily throughout the third quarter was of 1.7 million shares, equivalent to a financial amount of R$ 9.1 million.
Eletrobras Preferred Shares – ELET6
During the 1Q15 Eletrobras’ preferred shares (ELET6) decreased their value by 16.9% closing at R$ 6.80. The maximum price achieved by those shares was R$ 8.40 on January 7th, and the lowest price registered was R$ 5.85 on February 11th. The quotations related are ex-dividend values. The average volume of shares traded daily throughout the third quarter was of 1.9 million shares, equivalent to a financial amount of R$ 13.2 million.
Shares Trading Performance at the BM&FBOVESPA
16
Marketletter 1Q15
ADR Programs
EBR – Eletrobras Common Shares
During the 1Q15, the Eletrobras common shares ADRs decreased their value by 15.4% ending the quarter valued at US$ 1.81. They recorded a maximum price of US$ 2.17 on January 15th, and the lowest price registered was on March 12th, when the price reached US$ 1.54 considering ex-dividend values. The average volume of shares traded daily throughout the third quarter was of 0.71 million shares. The balance of ADRs representing such shares at the end of the second quarter was of 88.2 million.
EBR - B– Eletrobras Preferred Shares
During the 1Q15, the Eletrobras preferred shares ADRs decreased their value by 26.8%, ending the quarter valued at US$ 2.10. They recorded a maximum price of US$ 3.09 on January 7th. The lowest price registered was US$ 1.96 on March 12th, considering ex-dividend values. The average volume of shares traded daily throughout the third quarter was of 0.18 million shares. The balance of ADRs representing such shares at the end of the third quarter was of 25.5 million.
Latibex (Latin American Stock Market at Madrid Stock Exchange)
XELTO - Eletrobras Common Shares
During the 1Q15the common shares listed on Latibex program increased their value by 12.2% ending the quarter valued at € 1.60. They recorded a maximum price of € 1.89 on January 22. The lowest price registered was € 1.44 on March 16th, considering ex-dividend values. The average volume of shares traded daily throughout the third quarter was of 11.2 thousand shares.
XELTB - Eletrobras Preferred Shares
During the 1Q15the preferred shares listed on Latibex program decreased their value by 21% ending the quarter valued at € 2.01. They recorded a maximum price of € 2.66 on January 7th . The lowest price registered was € 1.82 on February 11th, considering ex-dividend values. The average volume of shares traded daily throughout the third quarter was of 10.4 thousand shares.
17
Marketletter 1Q15
Number of Employees
Parent Company
Working time in the Company (years) |
1Q15 |
1Q14 |
2013 |
Until 5 |
298 |
455 |
521 |
6 to 10 |
292 |
276 |
255 |
11 to 15 |
184 |
79 |
81 |
16 to 20 |
37 |
23 |
28 |
21 to 25 |
103 |
111 |
165 |
beyond 25 |
113 |
99 |
214 |
Total |
1,027 |
1,043 |
1,264 |
By Region
State |
Number of employees | |||
|
|
|
1Q15 | |
Rio de Janeiro |
|
|
|
978 |
São Paulo |
|
|
|
- |
Paraná |
|
|
|
- |
Rio Grande do Sul |
|
|
|
- |
Brasília |
|
|
|
49 |
Total |
|
|
|
1,027 |
Outsourced Employees
1Q15 |
- |
Turnover Index
1Q15 |
0.2% |
Partnerships – Parent Company
Generation
SPE |
Type of Plant |
Investiment R$ million |
Installed Capacity MW |
Assured Energy MW Medium |
Generated Energy MWh | ||
1Q15 |
| ||||||
Norte Energia AS (Belo Monte) |
Hydro |
29,375.00 Fully built 25,885 April/10 value |
11,233.1 |
4,571.0 |
- |
| |
Eólica Mangue Seco 2 Geradora e Comercializadora de Energia Elétrica S.A.(*) |
Wind |
109.3 |
26.0 |
12.08 |
15,535 |
| |
Rouar SA |
Wind |
|
65.1* |
9,921.6 |
| ||
In December 31st, Atilleros wind farm operated with 16.8 MW od installed capacity (8 units). |
|
19
Marketletter 1Q15
Enterprise |
Stake (%) |
Location (Estate) |
Start of Construction |
Start of Operation |
End of Operation |
Belo Monte / Norte Energia |
15.0 |
PA |
Jun/2011 |
Nov/2015 |
Aug/2045 |
Eólica Mangue Seco 2 Geradora e Comercializadora de Energia Elétrica S.A. |
49.0 |
RN |
May/2010 |
Sep/2011 |
Jun/2045 |
Rouar SA |
50 |
Colonia -Uruguai |
Jan/14 |
Dec/2014 |
20 years |
Note: In 12/31/2014 the Wind farm Artilleros had 8 units connected to the grid under test. The beginning of the commercial operation will be in 2015.
Tansmission
Enterprise /SPE |
Object (De-Para) |
Stake (%) |
Investiment (R$ million) |
Extension lines (Km) |
Voltage (kV) |
Start of Operation |
End of Concession |
Interligação Elétrica Brasil / Uruguai (corporativo) |
LT 230 kV LT 525 kV |
Eletrobras -60,4 Eletrosul -39,6 |
128.00
|
2 km in 230 kV and 60 em 525 kV |
230 525 |
Jun/2015 |
Jun/2045 |
Enterprise /SPE |
Object |
Investiment (R$ million)* |
Transformation Capacity (MVA) |
Location
|
Start of Operation |
End of Concession |
Interligação Elétrica Brasil / Uruguai (corporativo) |
SE Candiota -525/230 kV |
- |
672 MVA +1 R 224 MVA |
RS |
Jun/2015 |
Jun/2045 |
*SE associated to TL.
20
Marketletter 1Q15
Risks related to Laws and Regulations
As stated in note 4 to Eletrobras' financial statements as of and for the three-month period ended March 31, 2015 as prepared in accordance with Brazilian generally accepted accounting principles ("Brazilian GAAP") and filed with the Brazilian Securities and Exchange Commission, following media reports regarding the alleged involvement of Eletrobras and/or its affiliates in relation to the investigation by the Brazilian Federal Prosecutors into Operação Lava Jato (Operation Car Wash), our Management has adopted certain measures aimed at identifying any potential illegal acts relating to this investigation. On April 25, 2015, Eletrobras became aware, through certain media reports, of a plea bargain agreement entered into by the former president of a construction company within the context of Operação Lava Jato. According to these reports, at the time Eletrobrás Termonuclear S.A. – Eletronuclear ("Eletronuclear") selected the consortium of companies for the mechanical assembly of the Angra 3 power plant consortium to develop the Angra 3 nuclear power plant, there were alleged negotiations for the payment of financial benefits to certain employees of Eletronuclear, including its president. In addition, there were allegations of arrangements entered into to allow certain companies to be declared the winners of this public procurement procedure. The president of Eletronuclear has requested a temporary leave of absence and has been since then replaced. Eletrobras' board of directors has approved the adoption of measures to engage an independent firm to conduct an investigation into these allegations pursuant to applicable Brazilian and U.S. laws.
As the investigation is still in its initial phase, no conclusive results have been reached. Accordingly, the possible impact resulting from this investigation, if any, are unknown and cannot be estimated by Eletrobras in relation to its financial statements as of and for the three-month period ended March 31, 2015. Eletrobras is currently unable to determine if any adjustments or additional disclosure in relation to these allegations is required in relation to its financial statements as of and for the period ended March 31, 2015 prepared in accordance with Brazilian GAAP. Accordingly, the limited review report included in our interim financial statements is qualified in respect of the same subject.
21
Marketletter 1Q15
BALANCE SHEET
values in R$ thousand
Assets |
Parent Company |
Consolidated | ||
03.31.15 |
12.31.14 |
03.31.15 |
12.31.14 | |
Current |
||||
Cash and cash equivalent |
357.947 |
88.194 |
1.836.911 |
1.407.078 |
Restricted cash |
1.043.047 |
1.743.525 |
1.043.047 |
1.743.525 |
Marketable Securities |
1.727.511 |
421.817 |
4.648.826 |
3.730.345 |
Clients |
352.560 |
399.133 |
4.745.292 |
4.427.216 |
Financial assets-concessions and Itaipu |
3.258.010 |
2.387.622 |
4.593.285 |
3.437.521 |
Financing and loans |
5.401.923 |
5.228.931 |
2.786.157 |
2.696.021 |
Fuel consumption account - CCC |
479.572 |
521.964 |
479.572 |
521.964 |
Remuneration of equity interests |
691.107 |
677.544 |
283.938 |
289.574 |
Taxes to retrieve |
213.541 |
591.217 |
537.106 |
900.431 |
Income tax and Social contribution |
928.190 |
374.504 |
1.314.857 |
762.726 |
Right to compensation |
0 |
0 |
5.706.484 |
3.526.986 |
Stored material |
525 |
798 |
533.343 |
512.614 |
Stock of nuclear fuel |
0 |
0 |
340.319 |
340.319 |
Compensations - Law 12,783/2013 |
0 |
0 |
3.438.319 |
3.738.295 |
Derivative financial instruments |
0 |
0 |
102.628 |
124.635 |
Others |
424.440 |
377.540 |
2.060.083 |
2.391.943 |
Total current assets |
14.878.373 |
12.812.789 |
34.450.167 |
30.551.193 |
Non-Current |
||||
LONG-TERM ASSETS |
||||
Right to reimbursements |
0 |
0 |
5.565.691 |
6.129.423 |
Financing and loans |
29.105.837 |
27.327.950 |
13.547.543 |
11.988.543 |
Clients |
162.089 |
174.324 |
1.776.653 |
1.743.504 |
Marketable Securities |
207.886 |
204.665 |
227.344 |
224.734 |
Stock of nuclear fuel |
0 |
0 |
623.882 |
661.489 |
Taxes to retrieve |
0 |
0 |
2.559.803 |
2.538.131 |
Income tax and Social contribution |
1.464.148 |
1.464.148 |
2.470.231 |
2.467.631 |
Linked deposits |
1.604.924 |
1.558.624 |
4.034.165 |
3.808.155 |
Fuel consumption account - CCC |
0 |
3.944 |
0 |
3.944 |
Financial assets-concessions and Itaipu |
3.327.422 |
2.948.729 |
30.064.540 |
28.969.262 |
Derivative financial instruments |
0 |
0 |
102.764 |
135.276 |
Advances for future Capital increase |
176.855 |
175.636 |
1.281.116 |
1.140.633 |
FUNAC Reimbursements |
0 |
0 |
594.159 |
595.445 |
Others |
959.389 |
859.843 |
1.341.973 |
1.070.214 |
37.008.550 |
34.717.863 |
64.189.864 |
61.476.384 | |
Investments |
49.630.056 |
48.599.387 |
20.678.069 |
20.070.517 |
Property, Plant And Equipment |
131.671 |
127.623 |
31.792.445 |
31.168.232 |
Intangible |
0 |
9.714 |
1.316.577 |
1.365.371 |
Total non-current assets |
86.770.277 |
83.454.587 |
117.976.955 |
114.080.504 |
Total Assets |
101.648.650 |
96.267.376 |
152.427.122 |
144.631.697 |
22
Marketletter 1Q15
Liabilities and Shareholders' Equity |
Parent Company |
Consolidated | ||
03.31.15 |
12.31.14 |
03.31.15 |
12.31.14 | |
Current |
||||
Financing and loans |
3.122.606 |
2.759.514 |
5.389.098 |
4.931.531 |
Debentures |
0 |
0 |
351.446 |
325.732 |
Financial liabilities |
0 |
0 |
0 |
0 |
Compulsory loan |
62.810 |
50.215 |
62.810 |
50.215 |
Suppliers |
386.038 |
548.589 |
8.701.456 |
7.489.134 |
Advance to customers |
447.683 |
448.759 |
500.641 |
501.572 |
Taxes to be collected |
25.903 |
58.736 |
1.176.788 |
1.168.168 |
Income tax and Social contribution |
0 |
0 |
199.383 |
18.138 |
Fuel consumption account - CCC |
222.152 |
301.471 |
222.152 |
301.471 |
Remuneration to shareholders |
61.606 |
61.995 |
64.791 |
64.402 |
National Treasury credits |
0 |
0 |
0 |
0 |
Estimated obligations |
102.726 |
96.107 |
1.164.666 |
1.174.679 |
Obligations of compensation |
684.643 |
655.158 |
733.536 |
702.728 |
Post-employment benefits |
7.846 |
10.856 |
240.045 |
258.898 |
Provisions for contingencies |
246.603 |
0 |
283.774 |
32.082 |
Sector Charges |
0 |
0 |
1.065.309 |
930.297 |
Leasing |
0 |
0 |
128.730 |
74.507 |
Concessions to pay-use of public goods |
0 |
0 |
3.358 |
3.645 |
Derivative financial instruments |
32.069 |
24.706 |
33.380 |
26.573 |
Others |
58.728 |
118.365 |
1.762.445 |
1.230.236 |
Total current liabilities |
5.461.413 |
5.134.471 |
22.083.808 |
19.284.008 |
Non-Current Liabilities |
||||
Financing and loans |
26.832.203 |
23.260.512 |
38.176.042 |
34.607.594 |
Suppliers |
0 |
0 |
0 |
0 |
National Treasury credits |
0 |
0 |
10.169.379 |
10.047.367 |
Debentures |
0 |
0 |
418.969 |
434.191 |
Advance to customers |
0 |
0 |
704.494 |
718.451 |
Compulsory loan |
454.739 |
469.459 |
454.739 |
469.459 |
Obligation for demobilization of assets |
0 |
0 |
1.335.934 |
1.314.480 |
Operational provisions |
1.122.753 |
1.100.499 |
1.122.753 |
1.100.499 |
Fuel consumption account - CCC |
480.564 |
474.770 |
480.564 |
474.770 |
Provisions for contingencies |
4.408.821 |
4.829.381 |
8.615.380 |
8.950.364 |
Post-employment benefits |
448.407 |
448.407 |
2.004.122 |
2.001.268 |
Provision for unfunded liabilities in subsidiaries |
3.132.924 |
2.794.236 |
101.962 |
97.449 |
Onerous contracts |
0 |
0 |
1.055.050 |
1.130.201 |
Obligations of compensation |
0 |
0 |
2.580.393 |
2.529.893 |
Leasing |
0 |
0 |
1.180.022 |
1.252.154 |
Concessions to pay-use of public goods |
0 |
0 |
60.640 |
59.815 |
Advances for future capital increase |
199.073 |
193.606 |
199.073 |
193.606 |
Derivative financial instruments |
0 |
0 |
59.365 |
70.336 |
Sector Charges |
0 |
0 |
611.119 |
609.721 |
Taxes to be collected |
0 |
0 |
803.185 |
837.551 |
Income tax and Social contribution |
472.742 |
291.878 |
666.277 |
569.380 |
Others |
806.697 |
730.606 |
1.547.430 |
1.030.640 |
Total non-current liabilities |
38.358.923 |
34.593.354 |
72.346.892 |
68.499.189 |
Shareholders ' Equity |
||||
Social Capital |
31.305.331 |
31.305.331 |
31.305.331 |
31.305.331 |
Capital reserves |
26.048.342 |
26.048.342 |
26.048.342 |
26.048.342 |
Profit reserves |
2.259.039 |
2.259.039 |
2.259.039 |
2.259.039 |
Equity valuation adjustments |
41.722 |
42.947 |
41.722 |
42.947 |
Additional Dividend Proposed |
0 |
0 |
0 |
0 |
Accumulated profits |
1.256.472 |
0 |
1.256.472 |
0 |
Other comprehensive results accumulated |
-3.082.592 |
-3.116.108 |
-3.082.592 |
-3.116.108 |
Participation of non-controlling shareholders |
0 |
0 |
168.108 |
308.949 |
Total shareholders ' equity |
57.828.314 |
56.539.551 |
57.996.422 |
56.848.500 |
Total liabilities and shareholders’ equity |
101.648.650 |
96.267.376 |
152.427.122 |
144.631.697 |
23
Marketletter 1Q15
STATEMENT OF INCOME
values in R$ thousand
Parent Company |
Consolidated | |||
03.31.15 |
03.31.14 |
03.31.15 |
03.31.14 | |
Net Operating Income |
803.581 |
710.363 |
8.598.882 |
7.008.477 |
Operating Costs |
|
|
|
|
Energy purchased for resale |
-693.124 |
-728.190 |
-2.921.562 |
-1.677.545 |
Charges on use of electric network |
0 |
0 |
-464.617 |
-367.351 |
Construction |
0 |
0 |
-563.212 |
-537.054 |
Fuel for electric power production |
0 |
0 |
-299.119 |
-317.043 |
Total |
-693.124 |
-728.190 |
-4.248.510 |
-2.898.993 |
Operating expenses |
||||
Personnel, Material and Services |
-120.127 |
-123.754 |
-2.004.428 |
-1.726.834 |
Remuneration and compensation |
0 |
0 |
-100.074 |
-132.923 |
Depreciation |
-1.250 |
-1.607 |
-348.760 |
-342.810 |
Amortization |
0 |
0 |
-114.318 |
-40.875 |
Donations and contributions |
-49.412 |
-49.514 |
-62.437 |
-63.837 |
Operational provisions |
-553.970 |
-344.232 |
-327.435 |
341.696 |
Staff Adjustment Plan |
0 |
0 |
0 |
-308.940 |
Others |
-161.636 |
-285.335 |
-515.893 |
-626.146 |
-886.395 |
-804.442 |
-3.473.345 |
-2.900.669 | |
Operating income before financial result |
-775.938 |
-822.269 |
877.027 |
1.208.815 |
Financial Result |
||||
Financial Revenues |
||||
Revenue from Interest, commissions and fees |
694.732 |
551.461 |
282.847 |
274.173 |
Revenue from financial investments |
135.610 |
90.373 |
243.027 |
229.435 |
Moratorium increase on electricity |
46.612 |
39.939 |
126.240 |
92.486 |
Monetary adjustments |
335.626 |
146.070 |
191.124 |
148.761 |
Compensation of remuneration - Law 12.783/13 |
0 |
0 |
495.332 |
185.840 |
Gain on financial instruments - derivatives |
0 |
0 |
11.528 |
9.739 |
Other financial revenues |
15.723 |
51.412 |
319.594 |
88.829 |
Financial Expenses |
||||
Debt charges |
-550.324 |
-366.412 |
-1.008.868 |
-580.794 |
Leasing charges |
0 |
0 |
-69.066 |
-67.514 |
Shareholders ' resource charges |
-5.466 |
-25.254 |
-7.535 |
-28.226 |
Monetary variation |
658.694 |
-109.002 |
341.170 |
-118.941 |
Losses on financial instruments - derivatives |
0 |
0 |
-54.519 |
-5.750 |
Other financial expenses |
-88.614 |
-5.600 |
-277.455 |
-183.829 |
1.242.593 |
372.987 |
593.419 |
44.209 | |
Income before equity participation |
466.655 |
-449.282 |
1.470.446 |
1.253.024 |
Result of Partnerships |
971.927 |
1.524.978 |
40.948 |
92.562 |
Operating Result before Taxes |
1.438.582 |
1.075.696 |
1.511.394 |
1.345.586 |
Income tax and social contribution - current |
0 |
-41.937 |
-261.285 |
-6.361 |
Income tax and social contribution - defered |
-183.335 |
0 |
-136.498 |
-298.416 |
Net income (loss) for the period |
1.255.247 |
1.033.759 |
1.113.611 |
1.040.809 |
Portion allocated to Controlling shareholders |
1.255.247 |
1.033.759 |
1.255.247 |
1.033.759 |
Portion allocated to non-controlling shareholders |
0 |
0 |
-141.636 |
7.050 |
Net profit per share (R$) |
0,93 |
0,76 |
0,93 |
0,76 |
24
Marketletter 1Q15
Parent Company |
Consolidated | |||
03.31.15 |
03.31.14 |
03.31.15 |
03.31.14 | |
Operational Activities |
||||
Income before income tax and social contribution |
1.438.581 |
1.075.696 |
1.511.393 |
1.345.586 |
Adjustments to reconcile profit with cash generated by operations: |
|
|
|
|
Depreciation and amortization |
1.250 |
1.607 |
463.078 |
383.685 |
Monetary/ foreign currency exchange rate variations net |
-994.320 |
-144.234 |
-995.308 |
-383.948 |
Financial charges |
-212.177 |
-265.896 |
35.384 |
240.405 |
Income from financial assets |
0 |
0 |
-195.125 |
-148.890 |
Equity result |
-971.927 |
-1.524.978 |
-40.948 |
-88.588 |
Provision (reversal) for unfunded liabilities |
338.689 |
591.613 |
0 |
0 |
Provision (reversal) for doubtful accounts |
12.380 |
-35.473 |
113.977 |
-43.414 |
Provision (reversal) for contingencies |
168.262 |
-57.878 |
252.807 |
-222 |
Provision (reversal) for reduction of asset to recovery value |
0 |
0 |
0 |
0 |
Provision (reversal) for onerous contracts |
0 |
0 |
-75.151 |
-257.661 |
Provision (reversal) for staff adjustment plan |
0 |
0 |
0 |
308.940 |
Provision (reversal) for investments loss |
22.254 |
-322.446 |
22.254 |
-308.636 |
Provision (reversal) for financial assets loss |
0 |
0 |
0 |
79.511 |
Provision (reversal) for losses on fixed asset |
0 |
0 |
0 |
0 |
Provision (reversal) for environmental compensation |
0 |
0 |
0 |
0 |
Charges over Global Reversion Reserve |
67.768 |
80.847 |
67.768 |
80.847 |
Adjustments to present value/market value |
-5.068 |
102.545 |
15.987 |
122.340 |
Minority interest in the result |
0 |
0 |
214.600 |
-10.682 |
Charges on shareholders resources |
5.466 |
25.254 |
7.535 |
28.226 |
Financial instruments-derivatives |
0 |
0 |
42.992 |
-3.989 |
Others |
-11.591 |
205.284 |
-102.868 |
378.904 |
-1.579.015 |
-1.343.755 |
-173.019 |
376.829 | |
(Increase)/decrease in operating assets |
|
|
|
|
Accounts receivable |
0 |
0 |
-410.034 |
-749.328 |
Securities |
-1.305.694 |
203.288 |
-917.870 |
250.525 |
Right to reimbursement |
0 |
0 |
-1.615.766 |
-1.580.758 |
Stored Matetrials |
273 |
32 |
-20.729 |
-64.965 |
Stock of nuclear fuel |
0 |
0 |
37.607 |
56.810 |
Financial assets - public service concessions |
-76.791 |
238.630 |
-76.791 |
238.630 |
Others |
-135.429 |
-117.573 |
-143.380 |
157.113 |
-1.517.641 |
324.377 |
-3.146.963 |
-1.691.972 | |
Increase/(decrease) in operating liabilities |
|
|
|
|
Suppliers |
54.906 |
8.499 |
1.551.791 |
1.233.758 |
Advance to customers |
0 |
0 |
-13.812 |
-12.981 |
Leasing |
0 |
0 |
-17.909 |
34.481 |
Estimated obligations |
6.619 |
14.734 |
40.530 |
-273.060 |
Obligations of compensation |
0 |
0 |
51.823 |
69.351 |
Sector charges |
0 |
0 |
136.410 |
77.604 |
Others |
9.952 |
294.262 |
1.002.447 |
201.192 |
71.478 |
317.495 |
2.751.280 |
1.330.345 | |
|
|
|
| |
Cash from operating activities |
-1.586.597 |
373.813 |
942.692 |
1.360.788 |
|
|
|
| |
Payment of financial charges |
-352.710 |
-121.793 |
-308.952 |
-287.203 |
Payment of fees on global reversion reserve |
-53.414 |
-58.627 |
-53.414 |
-58.627 |
Annual permitted revenue receipts (financial asset) |
0 |
0 |
227.822 |
226.339 |
Receiving compensation of financial asset |
0 |
0 |
795.309 |
743.361 |
Receipt of financial charges |
540.823 |
474.334 |
65.412 |
271.997 |
Payment of income tax and social contribution |
-67.147 |
-64.436 |
-101.585 |
-77.014 |
Receiving remuneration of equity in shareholdings |
0 |
70.463 |
20.958 |
75.415 |
Payment of pension fundings |
-3.010 |
-2.201 |
-76.479 |
-25.650 |
Payment of lawful contingencies |
-342.220 |
0 |
-346.599 |
-23.041 |
Judicial deposits |
-27.313 |
-12.747 |
-98.711 |
-216.180 |
|
|
|
| |
Net cash from operating activities |
-1.891.588 |
658.807 |
1.066.453 |
1.990.186 |
|
|
|
| |
Financing activities |
|
|
|
|
|
|
|
| |
Long term Loans and financing obtained |
2.179.372 |
0 |
2.375.303 |
1.010.969 |
Payment of loans and financing-principal |
-785.200 |
-542.562 |
-456.634 |
-657.543 |
Payment of remuneration to shareholders |
-384 |
-1.134 |
-384 |
-1.134 |
Payment of refinanced taxes and contributions-principal |
0 |
0 |
-7.612 |
-24.273 |
Compulsory loan and global reversion reserve |
0 |
0 |
0 |
0 |
Others |
0 |
0 |
13 |
0 |
Net cash from financing activities |
1.393.788 |
-543.696 |
1.910.686 |
328.019 |
Investment activities |
|
|
|
|
Granting of loans and financing |
-82.508 |
-584.760 |
-2.207 |
-18.606 |
Receiving of loans and financing |
964.601 |
1.090.714 |
183.327 |
494.997 |
Acquisition of property, plant and equipment |
-4.837 |
-31 |
-1.020.080 |
-289.897 |
Acquisition of intangible assets |
0 |
0 |
-84.217 |
-86.490 |
Acquisition of concession assets |
0 |
0 |
-919.077 |
-532.491 |
Acquisition/capital supply over equity shareholdings |
-109.703 |
-61.500 |
-648.450 |
-1.119.649 |
Granting of advance for future capital increase |
0 |
0 |
-58.240 |
-180.417 |
Net cash flow in the subsidiary acquisition |
0 |
0 |
0 |
0 |
Others |
0 |
0 |
1.638 |
8.326 |
Net cash from investing activities |
767.553 |
444.423 |
-2.547.306 |
-1.724.227 |
|
|
|
| |
Increase (decrease) in cash and cash equivalents |
269.753 |
559.533 |
429.833 |
593.975 |
|
|
|
| |
Cash and cash equivalents at the beginning of the period |
88.194 |
1.303.236 |
1.407.078 |
3.597.583 |
Cash and cash equivalents at the end of the period |
357.947 |
1.862.769 |
1.836.911 |
4.191.558 |
269.753 |
559.533 |
429.833 |
593.975 |
25 |
CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS | ||
By: |
/S/ Armando Casado de Araujo
|
|
Armando Casado de Araujo
Chief Financial and Investor Relation Officer |
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.