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 November, 2018

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)



Avenida Presidente Vargas, 409 - 13th floor,
Edifício Herm. Stoltz - Centro, CEP 20071-003,
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

  Conference, Call in Portuguese
  Page    November 13, 2018
Introduction  02    2:30 PM (GMT) 
    11:30 AM (New York time) 
I. Financial Information of the Companies  03  4:30 PM (London time) 
II. Financial Analysis of the Companies  18  Phone: (11) 3137-8037 
 
III. Operating Information of the Companies  22  Conference Call in English 
IV. Attachment:    November 13, 2018 
I. Financial Information from Subsidiaries    2:30 PM (GMT) 
II. Financial Analyses from Subsidiaries Companies    11:30 AM (New York time) 
III. Operational Information    4:30 PM (London time) 
Subsidiaries and SPEs    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 
O Informe aos Investidores Anexos I, II e III    Relations 
podem ser encontrados em excel no nosso website:    Paula Prado Rodrigues Couto 
www.eletrobras.com.br/ri     
    Capital Market Department 
    Bruna Reis Arantes 

  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 
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     
 

 


 

Disclaimer:

This material contains calculations that may not produce a precise sum or result due to rounding.


 
 


  

 

Rio de Janeiro, November 12, 2018 - Eletrobras (Centrais Elétricas Brasileiras S.A.) [B3: ELET3 and ELET6 - NYSE: EBR and EBR-B - LATIBEX: XELTO and XELTB], the largest company in the Latin American electricity sector, operating in the generation, transmission, distribution and marketing segment, controlling company of 14 subsidiaries, a holding company - Eletropar -, a research center - Cepel and holding a 50% Capital Stock of Itaipu Binacional and the control of 6 Special Purpose Companies, announces its results for the period.

In the first nine months of 2018 (9M18), Eletrobras reported net income of R$ 1,275 million. In the nine months of 2017 (9M17), the company presented Net Income of R$ 2,272 million. The Generation and Transmission segment recorded a Profit of R$ 2,518 million and R$ 1,629 million, respectively, while the distribution segment recorded a loss of R$ 2,002 million.

In the third quarter of 2018 (3Q18), Eletrobras reported a net loss of R$ 1,613 million, lower than the net income of R$ 550 million obtained in the third quarter of 2017 (3Q17). In this period, the Generation and Transmission segment recorded a Profit of R$ 832 million and R$ 103 million, respectively, while the distribution segment recorded a loss of R$ 998 million. Ebitda decreased by 92% from R$ 2,249 million in 3Q17 to R$ 189 million in 3Q18.

Highlights of the 3Q18

 

»Sale of Distributors Cepisa, Ceron, Eletroacre, Boa Vista Energia;

»Sale of SPEs in the amount of R$ 1,296 million;

»Income from the Generation segment - Profit of R$ 832 million;

»Results of the Transmission segment - Profit of R$ 103 million;

»Income from the Distribution segment - Loss of R$ 998 million;

»EBITDA Managerial of R$ 1,748 million in 3Q18;

» Net Operating Revenue of R$ 8,936 million;

»Provisions for Contingencies in the amount of R$ 2,201 million, with a highlight to R$ 1,518 million relating to the reserve for compulsory loans, of which 1,389 million were related to the work of revision of estimates the database of lawsuits, and R$ 241 million in Chesf to GSF of UHE Sobradinho;

»Provision for losses on investments in assets held for sale in the amount of R$ 418 million related to the adjustment of the fair value of SPEs to the respective minimum prices constant of the auction of September 27, 2018;

»Reversal of Provisions for onerous contracts of R$ 145 million; and

»Reclassification of energy expenditure purchased for resale in proinfa, as a reduction of proinfa generation revenue, affecting the revenue account by about R$ 2 billion, but without effect for the result.

R$ Million

9M18

9M17

%

 

3Q18

3Q17

%

110,6

114,7

-3.6%

Energy Sold - Generation GWh (1)

35,3

39,7

-11%

11,7

12,0

-2.5%

Energy Sold - Distribution GWh

4,0

4,1

-2.4%

35,046

32,648

7%

Gross Revenue

11,287

10,934

3%

27,128

25,196

8%

Gross Revenue from Management (2)

9,746

8,984

8%

28,105

26,847

5%

Net operating revenue

8,936

8,892

0.5%

20,796

19,995

4%

Net Operating Revenue Management (2)

7,491

7,006

7%

6,769

9,140

-26%

EBITDA

189

2,249

-92%

4,204

5,210

-19%

EBITDA Managerial(3)

1,748

1,475

18%

1,275

2,272

-44%

Net profit

-1,613

550

-393%

2,830

3,764

-25%

Investments

976

1,306

-25%

(1) Does not consider the energy allocated for quotas, from the plants renewed by Law 12.783 / 2013; (2) Excludes CELG D in 2017, Revenue from Construction, Revenue from Transmission with RBSE, referring to Transmission Lines renewed by Law 12,783 / 2013 and revenue from retroactive tariff assets of Ordinance MME 301; Adjustments referring to change of methodology by IFRS 15 in accounting for Proinfa; (3) Excludes item (2) and Extraordinary Retirement Plan (PAE), Consensual Dismissal Plan (PDC), expenses with independent research, research findings, extraordinary contributions to supplementary pension, reimbursement to Enel by TUSD Eletronuclear, of Teresina and Agepisa / Sefaz-PI, provisions for contingencies, onerous contracts, Impairment, Provision for losses on investments, Provision for Losses on Investments classified as held for sale, Provisions for adjustment to market value, water resources (TFRH), Provision ANEEL CCC; (4) Excludes item (3) and monetary restatement for compulsory and IRPF provision for RBSE and Distribution Tariff Assets.

 

Disclaimer:

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

 


 
 


  

 

ANALYSIS OF THE CONSOLIDATED RESULT (R$ million)

9M18

      9M17

DRE

     3Q18

          3Q17

13,297

15,374

Generation Revenue

5,123

5,409

7,903

7,808

Transmission Revenue

2,598

2,348

12,464

8,162

Distribution Revenue

3,051

2,800

1,382

1,305

Other Revenues

514

377

35,046

32,648

Gross Revenue

11,287

10,934

-6,941

-5,802

Deductions from Revenue

-2,351

-2,042

28,105

26,847

Net Operating Revenue

8,936

8,892

-9,590

-10,589

Operational Costs

-3,498

-3,928

-9,062

-9,007

Personnel, Material, Services and Others

-2,931

-2,731

-1,438

-1,385

Depreciation and Amortization

-489

-466

-3,571

-653

Operational Provisions

-2,824

-247

4,445

5,213

 

-805

1,521

887

2,542

Shareholdings

506

262

5,331

7,755

Income before Financial Income

-300

1,783

-1,593

-3,752

Financial Result

-988

-938

3,739

4,003

Income before Tax

-1,288

845

-2,464

-1,730

Income tax and social contribution

-325

-295

1,275

2,272

Net Profit

-1,613

550

 

 

9M18

       9M17

DRE Managerial*

3Q18

3Q17

13,266

13,337

Generation Revenue Management

5,110

4,769

3,608

3,483

Transmission Revenue Management

1,225

1,233

8,871

7,113

Distribution Revenue Management

2,898

2,604

1,382

1,263

Other Revenue Management

514

377

27,128

25,196

Gross Revenue Management

9,746

8,984

-6,331

-5,201

Deductions from Revenue Management

-2,255

-1,977

20,796

19,995

Net Operating Revenue Management

7,491

7,006

-8,061

-7,249

Operational Costs Management

-2,996

-2,861

-8,383

-8,072

Personal, Material, Services and Others Management

-2,917

-2,631

-1,438

-1,385

Depreciation and Amortization Management

-489

-466

-1,035

-481

Operational Provisions Management

-336

-301

1,879

2,809

 

754

748

887

1,017

Shareholdings Management

506

262

2,766

3,826

Income before Financial Income Management

1,259

1,010

-2,199

-3,453

Financial Result Management

-790

-515

567

372

Income before Tax Management

469

495

* Excludes results of CELG D in 2017, construction revenues and expenses, Transmission Revenue with RBSE, RBSE Revenue related to Transmission Lines renewed by Law 12,783 / 2013, Revenue from retroactive tariffs, expenses with independent research, Impairment , onerous contracts, extraordinary contributions in the supplementary pension plan, reimbursement to Enel by TUSD Eletronuclear, Agreements of Teresina and Agepisa / Sefaz-PI, provisions for contingencies, provision for losses on investments, provisions for adjustment to market value, (TFRH), ANEEL CCC Provision, which were impacted by RBSE, monetary restatement of compulsory loans, Extraordinary Retirement Plan (PAE), Consensus Dismissal Plan (PDC), GSF Provision Reversal, Provision for Fees Pará relatiova to Eletronorte and provision for IRPJ / CSLL related to RBSE and Assets Distribution tariffs.

 

Disclaimer:

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

 


 
 


  

 

 

I.1 Main variations of the Statement of Income   

Variations of Statement of Income (9M18 x 9M17)

9M18 Results posted a 44% variation compared to 9M17, with net income of R$ 1,275 million recorded in 9M18, compared to net income of R$ 2,272 million in 9M17, especially due to the following factors:

Operating Income

Generation Revenues

9M18

9M17

%

Variation

Supply of energy for distribution companies

8,444

10,628

-20.5

The variation was mainly due to the application of IFRS 15, changing the way the energy sold and purchased under Proinfa was recorded, with a negative impact of approximately R$ 2.5 billion in 2018, due to the offsetting with the cost of energy purchased for resale under Proinfa, as of 3Q18, as a recipe reducer.They also affected: (i) price readjustments in ACR; (ii) In the subsidiary Eletronuclear, updating of the fixed revenue established by ANEEL for the 2018 Fiscal Year and variable portion referring to the generated annual estimated for 2018; (iii) In the subsidiary Eletronorte, increase of energy in the regulated follow-up and sale through the auction A-1 product 2018/2019, 171.96 Mwmed. This growth in Supply revenue was offset by: (i) In the subsidiary Furnas, termination of Product ACR 2015-2017 and; (ii) In the subsidiary CGTTE, reduction of the revenue from reduction of CCEAR contracts.

Supply of energy for final consumers

1,736

1,859

-6.6

The reduction was mainly due to: (i) in the subsidiary Eletronorte, termination of some contracts (South equivalent to 315 Mwmed); (ii) In Chesf, adjustments in contracts extended with industrial consumers. This decrease was counterbalanced by the growth in revenue of subsidiary Furnas, due to the new auctions of the Itumbiara Plant, governed by Law 13182/158, specific to final consumers.

CCEE (short term)

1,134

868

30.6

The reduction is mainly due to the growth of the short-term revenue of the subsidiary Amazonas GT by the surplus generation at the Mauá 3 plant and sold to the LDP. In 2017, there was no revenue related to this operation. In addition, the account was affected by market variations (PLD, GSF, Portfolio of contracts, etc.).

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

1,626

1,657

-1.9

The variation is mainly due to the following reasons: (i) change in the CFURH tariff, which composes the revenue from quotas of the refurbished plants, and (ii) frustration of the forecast of financial income caused by the difference between the rate of remuneration used in the forecast and the rate actually realized.

Construction Revenue

30

28

6.4

No effect for the result, since it has expense in corresponding amount.

Transfer Itaipu (see II.3.a)

326

333

-2.0

The variation was mainly due to the variation of the tariff on which the monetary adjustment calculated on the basis of the US Commercial Price and Industrial goods indexes is affected, as well as the recognition of the interministerial ordinance that determines the revenues of Itaipu.

TOTAL GENERATION REVENUES

13,297

15,374

-13.5

The variation was mainly due to the factors explained above.

(-) Construction/Proinfa IFRS 15

-30

-2,037

-98.5

No effect for the result, since it has expense in corresponding amount.

GENERATION REVENUES MANAGERIAL

13,266

13,337

-0.5

 The variation was mainly due to the factors explained above.

 

 

 

 

Disclaimer:

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

 


 
 


  

 

Transmission Revenues

9M18

9M17

%

Variation

Revenue from Operation and Maintenance (LT Renovated Law 12.783 / 2013)

2,506

2,410

4.0

The variation is mainly due to the following reasons: (i) the annual update of the RAP - Allowed Annual Revenue from concessions related to Transmission Lines extended pursuant to Law 12.783 / 2012.

LT RAP Under Exploration regime

229

207

10.5

The variation is mainly due to the following reasons: (i) annual adjustment; and (ii) the adjustment portion of the period.

Construction Revenue

803

594

35.3

No effect for the result, since it has expense in corresponding amount.

Finance - Return on Investment - RBSE

3,492

3,731

-6.4

Remuneration of the financial assets of the Basic Network of the Existing System (RBSE) for the transmission lines renewed in accordance with Law 12,783 / 2013, and the decrease in remuneration between the periods is due to the beginning of the monthly amortization of assets, in August 9M17.

 

Return Rate Updates

873

866

0.9

The variation is due mainly to the following reasons: In the subsidiary Eletronorte, R$ 10 million increase in ETE's return on investment, R$ 10 million in PVTE, and R $ 6 million in LVTE.

TOTAL TRANSMISSION REVENUE

7,903

7,808

1.2

The variation was mainly due to the factors explained above.

(-) Rate of Return related to RBSE Compensation

-3,492

-3,731

-6.4

 

(-) Construction

-803

-594

35.3

 

 TRANSMISSION MANAGERIAL REVENUE

3,608

3,483

3.6

The variation was mainly due to the factors explained above.

 

 

Distribution Revenues

9M18

9M17

%

Variation

Supply

7,411

6,648

11.5

The variation was mainly due to: (i) Tariff Adjustment in the following subsidiaries: Eletroacre, Ceal, Ceron and Boa Vista;

Short Term Revenue

445

517

-13.8

The variation was mainly due to: (i) in the subsidiary Eletroacre, as from July 2017, MCSD decontamination of the energy surplus reducing the volume of energy sold in the MCP; and (ii) in the subsidiary Amazonas Energia, effects of the operation in the Short-Term Market referring to the transfer of the charges of the plants committed with contracts for availability.

Construction Revenue

497

522

-4.8

Sem efeito para o resultado, uma vez que possui despesa em valor correspondente.

CVA and other Financial Components

4,111

475

765

The variation was due to the constitution of positive CVA in the subsidiaries, mainly due to the recognition of the right to the tariff asset while operating in the form of a designation. (Ordinance MME 301)

TOTAL DISTRIBUTION REVENUE

12,464

8,162

52.7

Variation was mainly due to the factors explained above.

(-) CELG D

0

-528

 

 

(-)Retroactive Regulatory Asset

-3,096

0

-

 

(-)  Construction

-497

-522

-4.8

 

MANAGEMENT DISTRIBUTION REVENUE

8,871

7,113

24.7

Variation was mainly due to the factors explained above.

 

 

CVA and Other Financial Components

9M18

9M17

ED Acre

228

4

ED Alagoas

494

259

Amazonas Energy Distribution S.A.

1,574

-12

ED Piauí

939

218

ED Rondônia

557

-9

ED Roraima

318

28

Celg-D

0

-11

TOTAL CVA and Other Financial Components

4,111

475

 

 

Disclaimer:

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

 


 
 


 

Other Revenues

9M18

9M17

%

Variation

Other Revenues

1,382

1,305

5.9

The variation was mainly due to the increase in the rendering of engineering services, sale of fixed assets and revenues from tariff flags and tariffs of distributors.

CELG D

0

-42

-100.0

 

Other Management Income

1,382

1,263

9.4

 

 

Operating Costs and Expenses

 

OPERATING COSTS

9M18

 9M17

    %

Variation

Energy purchased for resale

-4,855

-7,949

-38.9

The variation was mainly due to the application of IFRS 15, altering the accounting of energy sold and purchased under Proinfa, with an impact of approximately R$ 2.0 billion in the energy purchased for resale. Also contributing to the variation is the fact that, as of February 2017, CELG no longer impacts costs, leading to a reduction in the purchase of energy for resale.

Charges on the use of electricity

-1,550

-1,207

28.4

The variation is mainly due to the accounting in the subsidiary Eletronuclear for the provision of use of the distribution system in the amount of R $ 208 million for the period from April 2014 to June 2018, as authorized by ANEEL Dispatch 4,123 / 2017.

Fuel for cars of electricity

-1,854

-289

541.5

The variation is explained, mainly (i) lower reimbursement of CCC, due to the glosses of Aneel with respect to fuel efficiency; (ii) variation of power generation via the Santa Cruz Thermoelectric Plant; (iii) in Amazonas GT, with the consumption of gas for the Mauá plant 3 (TG1 and TG2), when in the same period of 2017 it did not occur, offset by the recovery of expenses CCC.

Construction

-1,330

-1,144

16.3

No effect for the result, since it has expense in corresponding amount.

OPERATING COSTS

-9,590

-10,589

-9.4

Variation was mainly due to the factors explained above.

(-) CELG D/ Retroactive CUSD Enuclear Proinfa

199

2,197

-100.0

 

(-) Construction

1,330

1,144

16.3

 

OPERATING COSTS MANAGEMENT

-8,061

-7,249

11.2

Variation was mainly due to the factors explained above.

 

 

OPERATING EXPENSES

9M18

  9M17

  %

Variation

Personel

-4,871

-5,650

-13.8

The variation was mainly due to the following factors: (i) from February 2017 CELG D no longer impacts the results of this account; (ii) Pae in the amount of R$ 796 million in 9M17 PDC in the amount of R$ 293 million in 9M81; and (iii) cost reduction policy established by the Company.

Material

-219

-229

-4.4

The variation is mainly due to the time difference of the Angra 2 stop for the exchange of nuclear fuel, from February 17 to March 20, 2018.

Services

-2,030

-1,921

5.7

The variation was mainly due to the increase in the consulting service of the holding company, as an increase of R $ 77 million, being: ProERP R $ 27 mm, Deloitte R $ 14 mm, Hogan Lovells R $ 8 mm, Roland Berger R $ 7 mm and CSC Brasil R $ 3 million.

Others

-2,236

-1,207

85.2

The variation is fragmented in several accounts, and the main variations are due to: (i) In the subsidiary Amazonas Distribuição, due to the cut-off factor of regulatory losses; (ii) In the subsidiary Chesf, adjustment record of the actuarial report - Post-employment benefits and loss record - Consumers and Concessionaires.

Depreciation and amortization

-1,438

-1,385

3.8

There is no relevant variation.

Operating Provisions / Reversals

-3,571

-653

446.9

The variation is mainly explained by (i) Contingencies in the amount of R$ 3,714 million, influenced by provisions related to the compulsory loan (R $ 1,882 million) and Chesf's GSF; (ii) PCLD of R$ 730 million; and (iii) Provision for losses on investments in SPEs classified as held for sale, of R$ 418 million. The main operating provisions are detailed below (see Note 37). These provisions were partially offset by: (i) reversal of the Provision for Pará Rate of R$ 1,184 million; (ii) reversal of onerous contracts in the amount of R$ 780 million.

TOTAL OPERATING EXPENSES

-14,364

-11,045

30.1

The variation was mainly due to the factors explained above.

CELG D

0

96

-100.0

 

Consensual Dismissal Plan (PAE/PDC)

293

796

-63.2

 

Extraordinary Contributions on Pension Plans

109

0

-

 

Independent Investigation Expenses

46

43

7.1

 

Agreements with Teresina Municipality and Agespisa / Sefaz-PI

231

0

-

 

Contingencies

3,714

1,921

93.3

 

Onerous Contracts

-783

-1,971

-60.3

 

Provision / (Reversal) for Losses on Investments

11

27

-59.9

 

Provision for losses on investments classified as held for sale

418

0

-

 

Impairment

359

-561

-164.0

 

Provision ANEEL CCC

0

349

-100.0

 

Adjustment to Market Value

0

-1

-77

 

Water Resources Inspection Fee (TFRH) - Para Fee

-1,184

406

-391.4

 

Operating Expenses Managerial

-10,856

-9,938

9.2

The variation was mainly due to the factors explained above.

         

 

Disclaimer:

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

 


 
 


  

 

                                                                  

Shareholdings

Shareholdings

9M18

9M17

%

Variation

Shareholdings

887

2,542

-65.1

 The variation was mainly due to the sale of CELG D in 9M17.

(-) Alienation CELG D

0

-1,525

-

 

Shareholdings Management

887

1,017

-12.8

The variation was mainly due to the factors explained above

Financial Result

FINANCIAL RESULT

9M18

9M17

%

Variation

RESULTADO FINANCEIRO

2,239

1,444

55.1

The variation was mainly due to the accounting of the agreement with Eletropaulo in the amount of R$ 1,064 million in 9M18.

Interest Income and Financial Income

-94

-30

212

There was no material variation.

Net Monetary Update

-200

-81

147

The variation is mainly due to the variation in the exchange rate in the period on financing agreements and with suppliers.

Net Foreign Exchange Variation

-3,186

-4,359

-26.9

The variation was mainly due to the reduction of the indexes rates in 9M18 (SELIC, IPCA and others) and the reduction of indebtedness.

Debt Charges

-205

-315

-35

The variation was mainly due to the reduction of the indicator that corrects the values related to the Forwarding for Future Capital Increase (AFAC) performed by the Union in the holding company, adjusted by the Selic;

Shareholder Remuneration Charges

-146

-411

-64

The variation is fragmented in several small accounts, especially the variation resulting from the result of operations with derivatives, which went from a positive result in 9M17 of R $ 232 million to a positive result of R $ 56 million in 9M18.

TOTAL FINANCIAL INCOME

-1,593

-3,752

-57.6

The variation was mainly due to the factors explained above

CELG D and Eletropaulo Agreement

-1,064

-64

1.569.1

 

Monetary adjustment of compulsory loans

458

363

26.2

 

MANAGEMENT FINANCIAL RESULT

-2,199

-3,453

-36.3

The variation was mainly due to the factors explained above

 

 

 

 

Disclaimer:

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

 


 
 


  

 

Income Tax and Social Contribution (CSLL)

 

INCOME TAX AND CSLL

 9M18

9M17

%

Variation

Income tax and social contribution

-2,464

-1,730

42

The variation is mainly due to the collection of Income Tax (IRRF) on the disposal of CELG D and CVA RGR.

(-) IRRF RBSE

2,240

1,269

76.6

 

(-) IRRF Disposal CELG D

411

438

-6.1

 

Income Tax and Managerial Social Contribution

187

-462

-141

 

 

 

 

 

 

 

Disclaimer:

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

 


 
 


  

 

 

Variations of DRE (3Q18 x in 3Q17)

The 3Q18 Results recorded a variation of 393% in relation to 3Q17, with a net loss of R$ 1,613 million in 3Q18, compared to a net income of R$ 550 million in 3Q17, especially due to the following factors.

Operating income

 

Generation Revenue

3Q18

 3Q17

%

Variation

Supply do Distribution Companies

3,286

3,929

-16.4

The variation was mainly due to the application of IFRS 15, altering the accounting of energy sold and purchased under Proinfa, with an impact of approximately R$ 810 million in 3Q18.

Supply to final consumers

644

678

-4.9

The variation was mainly due to the termination of bilateral contracts in the subsidiary Eletronorte. This revenue reduction movement was offset by the new auctions of the Itumbiara Power Plant, governed by Law 13182/2015, specific to final consumers.

CCEE (short term)

485

104

366.6

The variation is mainly due to the following reason: (i) In the subsidiary Amazonas GT, short-term market revenue from the Mauá plant 3 sold to the LDP for the months of August and September / 18 (R$ 252 million); (ii) Differences in the Short-Term Market due to, among others, the variation of PLD and GSF values; (iii) change in the portfolios of contracts and seasonality, with emphasis on Furnas.

Revenue from Operation and Maintenance

551

536

3.0

There is no relevant variation. However, the increase is related to RAG's readjustment. In 3Q18, Resolution 2.421 / 2018, which recognizes the "GAG Improvement", was published, however, until the company completes its investment plans, the restatement of the financial asset, in the amount of approximately R $ 264 million in 3Q18, was reclassified in Current Liabilities as an advance of RAG improvement and is not being accounted for in revenue.

Construction Revenue

14

8

67.7

No effect for the result, since it has expense in corresponding amount.

Transfer Itaipu (see II,3,a)

142

155

-8.0

The variation was mainly due to the variation of the tariff on which the monetary adjustment calculated on the basis of the US Commercial Price and Industrial goods indexes is affected, as well as the recognition of the interministerial ordinance that determines the revenues of Itaipu.

TOTAL GENERATION REVENUES

5,123

5,409

-5.3

The variation was mainly due to the factors explained above

(-) Construction/Proinfa

-14

-640

-97.8

 

MANAGEMENT GENERATION REVENUES

5,110

4,769

7.1

 The variation was mainly due to the factors explained above

 

 

 

 

 

 

Disclaimer:

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

 


 
 


 

Transmission Revenues

3Q18

3Q17

%

Variation

Revenue from Operation and Maintenance (LT Renovadas Law 12,783 / 2013)

834

941

-11.4

The variation is mainly due to the following reasons: (i) reduction of the RAP in R $ 127 million, especially of the transmission financial assets.

Revenue from LT Under Exploration regime

83

79

4.8

The variation is mainly due to the following reasons: (i) annual adjustment of 2.6%; and (ii) annual update of the financial assets of SPE Transenergia Goias by R$ 10 million.

Construction Revenue

335

211

58.5

No effect for the result, since it has expense in corresponding amount.

Finance - Return on Investment - RBSE

1,039

904

15.0

The variation is mainly due to: (i) Remuneration of the financial asset of the Existing System Basic Network (RBSE) for transmission lines renewed in accordance with Law 12,783 / 2013, and the decrease in remuneration between the periods is due to the beginning of amortization of assets in August 2017.

Return Rate Updates

307

212

44.7

There is no relevant variation.

TOTAL TRANSMISSION REVENUE

2,598

2,348

10.7

The variation was mainly due to the factors explained above

(-) Assets Retroactive Tariff

-1,039

-904

15.0

 

(-) Construction

-335

-211

58.5

 

MANAGERIAL TRANSMISSION

1,225

1,233

-0.7

The variation was mainly due to the factors explained above

 

 

Distribution Revenues

3Q18

3Q17

%

Variation

Supply to DisCos and final Consumers

2,551

2,159

18.2

The variation was mainly due to: (i) Increase in Cepisa's tariff by 27.6% and tariffs in the amount of R $ 214 million; (ii) Amazonas D tariff adjustment (R $ 110 million).

Short Term Revenue

239

138

73.4

The variation was mainly due to: (i) in the subsidiary Eletroacre, a reduction due to the fall in overcontracting due to the lack of contracting with energy suppliers;

Construction Revenue

153

196

-21.8

No effect for the result, since it has expense in corresponding amount.

CVA and other Financial Components

108

308

-64.9

The variation was mainly due to (i) a positive CVA in the 3Q17 in the subsidiaries, mainly due to the following reasons: In the subsidiary Ceal, there was a reversal of the CVA provision to revenue and supplementary overcompensation (ii) Tariff Regulatory Assets in the subsidiaries Eletroacre, Amazonas D, Ceron and Boa Vista, with the objective of guaranteeing the economic neutrality of the debts contracted with RGR's resources to guarantee the provision of the public Distribution Service , whose tariff coverage was recognized by ANEEL (Official Letter 242/2018, Ordinance MME 301);

TOTAL DISTRIBUTION REVENUE

3,051

2,800

9.0

The variation was mainly due to the factors explained above

(-) CVA RGR

0

0

-

 

(-) Construction

-153

-196

-21.8

 

MANAGEMENT DISTRIBUTION REVENUE

2,898

2,604

11.3

The variation was mainly due to the factors explained above.

 

 

CVA and Other Financial Components

3Q18

3Q17

ED Acre

26

10

ED Alagoas

-166

121

Amazonas Distribuição de Energia S.A.

83

26

ED Piauí

99

149

ED Rondônia

37

-9

ED Roraima

28

10

Celg-D

0

0

 TOTAL CVA and Other Financial Components

108

308

 

 

 

 

 

 

Disclaimer:

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

 


 
 


 

 

Other Revenue

3Q18

3Q17

%

Variation

Other Revenue

514

377

36.2

The variation was mainly due to the non-recognition, in 2018, of Procel's revenue, which is subject to approval through a public hearing; (ii) increase in revenues from distributors due to tariffs and tariff modality (about R $ 77 million).

 

Operating Costs and Expenses

 

 

OPERATIONAL COSTS

3Q18

3Q17

%

Variation

Energy purchased for resale

-1,440

-2,592

-44.4

The variation was mainly due to: (i) application of IFRS 15, altering the accounting of energy sold and purchased under Proinfa, with an impact of approximately R$ 800 million in 3Q18; (ii) reduction of R$ 200 million in Ceron due to the reduction of Termonorte's physical guarantee and reduction of the cut-off, and 4.3% reduction of losses; (iii) reduction in Eletronorte due to the deprecation of 345Mwmed; (iv) Reduction of Furnas R$ 64 million due to lower energy purchased at CCEE; (iv) a reduction of R$ 44 million from Amazonas GT due to the higher generation of the Aparecida and Mauá Block Unit 3. This movement is counterbalanced by the growth of energy purchased for resale from the subsidiaries Ceal and Cepisa.

Charges on the use of electricity grid

-419

-344

21.6

The variation is mainly due to the readjustment of the basic network tariff.

 

Fuel for electricity production

-1,137

-576

97.4

The variation is mainly due to the following reasons: (i) In the subsidiary Amazonas D, less expense recovery due to the glosses practiced by CCCE under ANEEL's guidance regarding the reimbursement of the total cost of generation (CTG), these glosses are related to contracted gas volume, transportation tariffs practiced in the gas contract, power and energy availability, and liquid fuel (R$ 260 million); (ii) In the subsidiary Furnas, the generation of energy through the Santa Cruz Thermoelectric Plant according to dispatches by the National System Operator (ONS) (R$ 53 million); (iii) in the subsidiary Eletronuclear, interruption of the consumption of nuclear fuel in the period plants that occurred in different periods; in 2018 the Angra 2 shutdown occurred in the period from February 17, 2008 to March 20, 2008, and in 2017 the Angra 1 plant shutdown occurred during the months of August to October 2017. (iv) Amazonas GT: an increase of R$ 101 million by the beginning of consumption of UTE Mauá 3.

Construction

-502

-415

20.9

No effect for the result, since it has expense in corresponding amount.

TOTAL OPERATING COSTS

-3,498

-3,928

-10.9

The variation was mainly due to the factors explained above.

(-) Retroactive Eletronuclear Enel/Proinfa

0

652

-100.0

 

(-) Construction

502

415

20.9

 

MANAGERIAL OPERATING COSTS

-2,996

-2,861

4.7

The variation was mainly due to the factors explained above.

 

Disclaimer:

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

 


 
 


  

 

OPERATIONAL EXPENSES

3Q18

    3Q17

    %

Variation

Personnel

-1,489

-1,644

-9.4

The variation was mainly due to the cost reduction policy established by the Company, with PAE, PDC, hazardous and overtime, which offset the 1.69% adjustment of ACT 2018/2019.

Material

-72

-109

-34.1

The variation was mainly due to (i) lower maintenance of the Usina Mauá complex (R$ 19 million); (ii) Angra I and II stoppage for maintenance in 3Q17 (R$ 18 million). In 2018, the shutdown occurred in 2Q18, not affecting 3Q18.

Services

-711

-675

5.4

The variation is mainly explained by: (i) In the Holding, independent research expenses in the amount of R $ 15 million and other consulting services in the amount of R $ 45 million, with highlight to turnaround, with emphasis on CSC R $ 10 million SAP R $ 2 million (ii) subsidiary Ceal, resulting from the payment of attorney fees that have acted in the lawsuit related to the Bresser Plan; and (iii)  in the subsidiary Boa Vista, reflecting the hiring of labor and technical services to meet the interior of the State.

Others

-659

-303

117.7

The variation is mainly explained by: (i) Prefeitura de Teresina and Agepisa / Sefaz-PI agreements in the amount of R$ 138 million; (ii) In the subsidiary Furnas, provision for ICMS of Santa Cruz referring to decree RJ 46.207 / 2017; (iii) In the subsidiary Eletronorte, impairment of the SPEs ETE and MTE, in the amounts of R$ 20 and R $ 42 million respectively; (iv) In the subsidiary Amazonas D, civil damages were paid (R$ 8.9 million) and (R$ 4.2 million) and an increase of R$ 75.6 million, justified by the reduction index applied to the CCC / CDE reimbursement, which in 3Q17 was 2,3%, in 3Q18 the applied index was 8.4 %. ; (v) in the cepisa, R$ 21.4 per prescribed credits

Depreciation and amortization

-489

-466

4.8

There is no relevant variation.

Operating Provision/Reversals

-2,824

-247

1,042

The variation is mainly explained by: (i) Contingencies in the amount of R $ 2,110 million, influenced by provisions related to the compulsory loan (R $ 1,518 million); (ii) Chesf contingency provision of R $ 301 million, GSF of R $ 241 million GSF Chesf; (iii) PCLD of R $ 233 million; and (iiiv) provision for losses on investments classified as held for sale of R $ 418 million related to the adjustment in the equity interests of the Special Purpose Companies Hermenegildo I, II, III, Chuí IX, Miassaba 3, Brasnorte and Serra das Vacas, Manaus Transmitter at the minimum auction price held on September 27, 2018. The main operating provisions are detailed below (see Note 37).

TOTAL OPERATING EXPENSES

-6,243

-3,444

81.3

The variation was mainly due to the factors explained above.

Extraordinary Retirement Plan and Dismissal Plan(PAE and PDC)

-3

90

-103.3

 

Agreements City Hall of Teresina and Agespisa / Sefaz-PI

0

0

-

 

Extraordinary Contribution Social Security

3

0

-

 

Investigation Findings Expenses

15

10

51.6

 

Contingencies

2,201

800

175.2

 

Onerous contracts

-147

-744

-80.2

 

Provision for losses on investments classified as held for sale

-5

-17

-68.3

 

Provision / (Reversal) for Losses on Investments

418

0

-

 

Impairment

21

-713

-103.0

 

ANEEL Provision - CCC

0

349

-100.0

 

TFRH – Para Tax

0

0

-129

 

Managerial Operating Expenses

-3,741

-3,398

10.1

The variation was mainly due to the factors explained above.

         

 

Disclaimer:

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

 


 
 


  

 

Shareholdings

Shareholdings

3Q18

3Q17

%

Variation

Shareholdings

 

506

262

93.0

The variation was mainly due to the improvement in the results of the SPEs, with a highlight to the Norte Energia Positive Equivalence of R$ 187 million.

 

Financial Result

 

FINANCIAL RESULT

3Q18

3Q17

%

Variation

Income from Interest and Financial Investments

454

373

21.8

The variation was mainly due to the reduction of the indexes (SELIC, IPCA and others).

Net Monetary Adjustment

-89

-106

-16

There was no material variation.

Net Foreign Exchange Variation

-80

-17

384

The variation is mainly due to the variation in the exchange rate in the period on financing agreements and with suppliers.

Debt Charges

-1,028

-1,388

-25.9

The variation was mainly due to the reduction of indexes (SELIC, IPCA and others) and the reduction of indebtedness.

 

Shareholder Remuneration Charges

-64

-94

-32

A variação se deu, principalmente, em função da correção dos valores relativos ao Adiantamento para Futuro aumento de Capital (AFAC) realizados pela União na holding, pela Selic;

Other financial results

-181

293

-162

The variation is fragmented in several small accounts, with emphasis on: (i) the updating of the regulatory distribution asset, resulting from the recognition of economic neutrality by Administrative Rule 301; and (ii) the result of derivative operations, which went from a negative result in 3Q17 of R $ 48 million to a positive result of R $ 178 million in 3Q18.

TOTAL FINANCIAL RESULT

-988

-938

5.4

The variation was mainly due to the factors explained above.

CELG D and Eletropaulo’s Agreement /Proinfa

0

-26

-100.0

(-) CELG D \ Agreement Eletropaulo \ Proinfa

Monetary adjustment of compulsory loans

198

449

-55.9

 (-) Monetary update. emp. compulsory

FINANCIAL RESULT MANAGERIAL

-790

-515

53.6

The variation was mainly due to the factors explained above

 

Income Tax and CSLL

 

Income Tax and CSLL

 3Q18

  3Q17

   %

Variation

Income tax and social contribution

-325

-295

10

The variation is mainly due to the collection of IRRF on the disposal of CELG D.

(-)  Income tax RBSE

353

307

15.0

 

Income Tax and Cont, Social Managerial

28

13

123

The variation was mainly due to the factors explained above

 

 

 

 

Disclaimer:

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

 


 
 


  

 

 

I.2 Sale of Energy

 I.2.1  Energy Sold in 9M18  - Generators – TWh

 

In terms of the evolution of the energy market, Eletrobras Companies in 9M18 sold 110,6 TWh of energy, against 114.7 TWh traded in the same period of the previous year, which represents an decrease of 3.7%.

 

O&M Regime Sales

(1)   Usinas renovadas pela Lei 12.783/13 – cotas

(2)    Usinas sob regime de exploração: Vendas ACR e ACL

(3)    A Companhia atua como agente de comercialização de energia elétrica da Itaipu. As receitas de energia vendida apresentadas acima não fazem parte das receitas de vendas da Eletrobras mencionadas nas Demonstrações financeiras

 

I.2.2 Energy Sold in 9M18  - Distributors – TWh

 

In terms of evolution of the energy market, Eletrobras Distributors in 9M18 sold 11.7 TWh of energy, against 12 TWh traded in the same period last year, representing a reduction of 2.4%

 

** It considers only the captive market and supply.

 

 

 

 

 

 

 

 

 

 

 

Disclaimer:

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

 


 
 


  

 

I.3 Impairments and Onerous Contracts

 

 

Accumulated

Moviment

 

Impairment

12/31/2017

09/30/2018

1Q18

2Q18

3Q18

Generation

12,979

13,489

204

209

97

UTN Angra 3

9,900

10,553

204

213

236

UTE Santa Cruz

694

732

0

0

38

UHE Batalha

385

385

0

0

0

Candiota Fase B

366

366

0

0

0

Others

1,634

1,453

0

-4

-177

Transmission

2,593

2,519

0

0

-75

CC 061-2001

1,116

1,116

0

0

0

LT Jauru Porto Velho

0

14

0

0

14

CC 018-2012 Mossoró Ceará Mirim

253

222

0

0

-30

Outros

1,225

1,167

0

0

-58

Distribution

0

0

0

0

0

Administration

264

264

0

0

0

 

 

 

 

 

Total

15,837

16,272

174

163

21

           

 

 

Onerous Contracts

BALANCE ON 12/31/2017

BALANCE ON 09/30/2018

Moviment

9M18

Transmission

 

 

 

LT Recife II - Suape II

50

50

0

LT Camaçari IV - Sapeaçu

124

124

0

Others

10

10

0

 

185

185

0

Generation

 

 

 

Santa Cruz

32

290

258

Funil

127

119

-8

Coaracy Nunes

232

102

-130

Angra 3

1,389

736

-653

Others

115

48

-66

 

1,895

1,295

-600

 

 

 

 

Intang/Distribution Assets for sale

-

-

-183

 

 

 

 

TOTAL

2,079

1,479

-783

 

 

 

 

Disclaimer:

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

 


 
 


  

 

 

I.4 Consolidated EBITDA

 

R$ million

EBITDA

9M18

9M17

(%)

Result for the Year

1,275

2,272

-44%

 + Provision for Income Tax and Social Contribution

2,464

1,730

42%

 + Financial Result

1,593

3,752

-58%

 + Amortization and Depreciation

1,438

1,385

4%

 = EBITDA

6,769

9,140

-26%

Adjustment

 

 

 

(-) Celg D (EBITDA and Disposal - Equity Shares)

0

-1,554

-100%

(-) Basic Network Effects of the Existing System (RBSE)

-3,169

-3,386

-6%

(-)Tariff Assets RGR

-2,810

0

-

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

293

796

-63%

(-) Expenditure Independent research

46

43

7%

(-) Retroactive Payment Enel Eletronuclear

199

0

 

(-) Extraordinary Social Security Contributions

109

0

-

(-) Agreements Town Hall of Teresina and Agespisa / Sefaz-PI

231

0

-

(-) Contingencies

3,714

1,921

93%

(-) Onerous contracts

-783

-1,971

-60%

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

11

27

-60%

(-) Provision / (Reversal) for Losses on Investments classified as held for sale

418

0

-

(-) Impairment

359

-561

-164%

(-)Provision ANEEL CCC

0

349

-100%

(-) Adjustment to Market Value

-0,1

-0,6

-77%

(-) Water resources inspection fee (Para Rate)

-1,184

406

-391%

=  EBITDA MANAGERIAL 1

4,204

5,210

-18%

 

1The adjustments made to the Ebitda Managerial refer to non-recurring events or events that are expected to be treated under PDNG 2018-2022 and therefore 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 value of the Real, changes in volumes and standards of consumer energy use, competitive conditions, payments related to our receivables, changes in rainfall and water levels in the reservoirs used to operate our hydroelectric power 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 Securities and Exchange Commission of the United States of America that may change those estimates and expectations of the Administration. Thus, future results of the Company's operations and initiatives may differ from current expectations and the investor should not rely solely on the information contained herein.

 

 

 

 

Disclaimer:

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

 


 
 


  

 

 

Consolidated Results and EBITDA by segment

 

 

09/30/18

DRE by Segment

Administration

Generation

Transmission

Distribution

Eliminanation

Total

Operating System

O & M Regime

Operating System

O & M Regime

 Net operating revenue

152

10,866

1,321

1,085

6,205

10,160

(1,683)

28,105

 Operating Costs and Expenses

(3,266)

(6,221)

(1,380)

(959)

(3,360)

(10,148)

1,674

(23,661)

 Operating Income Before Financial Result

(3,114)

4,645

(59)

126

2,845

12

(9)

4,445

 Financial Result

1,944

(1,070)

(98)

(217)

(600)

(1,561)

9

(1,593)

 Results of equity investments

887

-

-

-

-

-

-

887

Income tax and social contribution

(586)

(815)

(85)

1

(525)

(454)

-

(2,464)

 Net Income (loss) for the period

(869)

2,760

(243)

(91)

1,720

(2,002)

-

1,275

EBITDA

(2,189)

5,796

(26)

140

2,876

181

 

6,769

EBITDA Margin

-1441%

53%

-2%

13%

46%

2%

 

24%

                 

 

09/30/17

DRE by Segment

Administration

Generation

Transmission

Distribution

Eliminanation

Total

Operating System

O & M Regime

Operating System

O & M Regime

 Net operating revenue

127

13,054

1,336

1,075

6,445

6,244

(1,433)

26,847

 Operating Costs and Expenses

(2,624)

(9,634)

(1,233)

(700)

(2,226)

(6,634)

1,417

(21,634)

 Operating Income Before Financial Result

(2,497)

3,419

103

376

4,219

(391)

(16)

5,213

 Financial Result

838

(1,073)

(157)

(328)

(411)

(2,637)

16

(3,752)

 Results of equity investments

2,542

-

-

-

-

-

-

2,542

Income tax and social contribution

(986)

(198)

(40)

(58)

(927)

479

-

(1,730)

Net Income (loss) for the period

(103)

2,148

(95)

(10)

2,881

(2,549)

-

2,272

EBITDA

73

4,443

140

389

4,251

(141)

 

9,140

EBITDA Margin

58%

34%

10%

36%

66%

-2%

 

34%

 

 

I.5 Net debt

 

 

R$ million

Net Debt

09/30/2018

12/31/2017

GROSS DEBT

43,428

45,593

(-) RGR of Other companies

1,147

1,219

(-) Purchase of shares with RGR (federalization)

532

1,391

(-) Debt with Third Parties Distributing Companies Managerial*

1,372

-

(+) Assumption of the debt of the distributing companies  Managerial*

2,807

-

= GROSS DEBT Managerial

43,183

42,982

(-) (Cash and Cash Equivalents + Securities)

7,514

8,048

(-) Financing Receivable without RGR

10,191

9,048

(-) Financing to be followed by distributors Sold (RO / RGR)  Managerial*

3,343

3,801

(-) Net balance of Itaipu Financial Asset

2,160

             1,788

Net Debt

19,975

           20,297

*In IFRS, debt and credit transactions, through the sale of distributors Cepisa, Ceron, Eletroacre, Boa Vista, according to 171st AGE, will take place in 4Q18.

The gross debt was financed through RGR funds, which were owed by a company outside the Eletrobras group (R$ 1,372 million) and credits related to the federalization of CEAM Distribuidora, incorporated by Amazonas D, and to the purchase of Celpa's shares, in accordance with Article 21-A and Article 21-B of Law 12,783 / 2013 (R$ 532 million).

 

 

 

 

 

 

 

Disclaimer:

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

 


 
 


  

 

Analysis of the Results of the Parent Company

 

In 3Q18, Eletrobras Holding recorded a net loss of R$ 1,621 million, a reduction of 402% compared to the net income of R$ 538 million registered in 3Q17.

In 9M18, Eletrobras Holding reported net income of R$ 1,230 million, a reduction of 45% compared to net income of R$ 2,237 million recorded in 9M17.

This 9M18 result was decisively influenced by: (i) Profit from Corporate Equity of R$ 4,157 million (see II.1). It also had a negative impact on: (i) Unrecognized liabilities in subsidiaries in the amount of R $ 2,104 million, mainly impacted by subsidiaries Amazonas Energia Distribuição (R??$ 1,616 million), CGTEE (R$ 563 million) and positive of Eletronuclear in 316 million; (ii) Provision for legal contingencies, in the amount of R$ 1,883 million, mainly due to the impact of the Provision for Compulsory Loans under the Operating Provisions caption, which amounted to R$ 1,518 million in 3Q18, of which R$ 1,389 million refer to the review of estimation carried out by the Company arising from the analysis of legal advice contracted to evaluate the data base of the judicial process control system (See Explanatory Note number 26 of the Financial Statements of 9M18); (iii) Accounting for monetary restatement related to compulsory loans in the amount of R$ 260 million in 9M18. The following chart presents a comparison of Eletrobras holding results between 9M17 and 9M18.

 

Evolution of Results - R$ million

 


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

 

 

 

Disclaimer:

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

 


 
 


  

 

II.1 Shareholdings of the Parent Company

In 3Q18, the result of Equity Shares positively impacted the Company 's result by R$ 1,090 million, mainly due to the Equity in earnings of investments in subsidiaries, as shown below:

 

 

 

 

 R$ million

 

Parent company

 

 9M18

 9M17

 3Q18

 3Q17

Investments in subsidiaries

 

 

 

 

Equity

3,660

4,766

672

2,262

 

 

 

   

Investments in associates

 

 

   

Equity

857

2,334

418

278

   

 

   

Investments in subsidiaries

4,517

7,100

1,090

2,539

 

II2.  Commercialization of Electric Power of the Parent Company

 

a.Itaipu Binacional

FINANCIAL RESULT OF ITAIPU 

 

 

 

 

 

1Q18

2Q18

3Q18

2018

Sale of Energy Contract Itaipu + CCEE

2,693

3,286

3,517

9,495

Revenue originating from the Right of Reimbursement (1)

255

292

423

969

Others

42

40

39

121

Total Revenue

2,989

3,619

3,979

10,586

 

 

 

 

 

Purchase of Energy Contract Itaipu + CCEE

-2,587

-3,562

-3,125

-9,273

Expenses Originating from the Compensation Obligation (2)

-168

-195

-280

-643

Itaipu repayment

-104

497

-369

25

Others

-44

-262

-62

-368

Total Expenses

-2,902

-3,521

-3,836

-10,260

 

 

 

 

 

Net operating revenue  - Transfer of Itaipu

87

97

142

326

 

 

 

   

ITAIPU RESULTS (Price indexes)

 

 

 

 

 

1Q18

2Q18

3Q18

2018

Revenue originating from the Right of Reimbursement (1)

255

292

423

969

+ Foreign Exchange Result

19

666

196

881

Result from the Right of Reimbursement (RD)

273

958

619

1,850

Expenses Originating from the Compensation Obligation (2)

168

195

280

643

+ Foreign exchange result

12

445

131

588

Result from the Reimbursement Obligations (RO)

180

640

412

1,232

Balance: RD - RO

93

318

207

618

 

a.1        

(see explanatory note 17.1.1 of the Financial Statements of 2Q18)

Pursuant to Law 11,480 / 2007, the adjustment factor for the financing agreements entered into with Itaipu Binacional and the loan assignment contracts entered into with the National Treasury, as from 2007, being assured to the Company the integral maintenance of its receivables flow.

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

As a result, the differential arising from the withdrawal of the annual adjustment factor, whose amounts are defined annually through an interministerial ordinance of the Ministries of Finance and Mining, was included in the rate of transfer of power from Itaipu Binacional, and Energy. The transfer rate in effect in 3Q18 includes an amount equivalent to US$ 346,874,357, which will be received by the Company through collections from the distributors, approved by regulation MME/MF 03/2017.

 

Disclaimer:

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

 


 
 


  

 

 

The balance resulting from the adjustment factor of Itaipu Binacional, included in the caption Financial Assets, presented in Non-current Assets, amounted to R $ 5,734,692 on September 30, 2018, equivalent to US$ 1,432,277 (R $ 3,884,737 on December 31, 2017, equivalent to US$ 1,174,346). The amount of R$ 4,192,443, equivalent to US$ 1,047,090, will be transferred to the National Treasury until 2023, as a result of the credit assignment between the Company and the National Treasury in 1999.

These amounts will be realized through their inclusion in the transfer rate to be practiced until 2023.

Therefore, considering that the Itaipu Financial Asset is a remuneration derived from the financing agreement granted by Eletrobras to Itaipu, the amount of the Financial Asset to be received by Eletrobras is being considered, as a discount, in the calculation of the Net Debt.

 

II.3  Operational Provisions of Parent Company

 

In 3Q18, Operating Provisions negatively impacted the Parent Company's income by R$ 2,748 million, compared to R$ 1,799 million in 3Q17. This variation is mainly explained by the increase in contingency provisions in the amount of R$ 1,507 million in 3Q18, compared to R$ 405 million in the same period of 3Q17.

In 9M18, Operating Provisions had a positive impact on the Parent Company's result of R$ 4,256 million, compared to R$ 4,324 million in 9M17. This variation is mainly explained by the movement of overdraft liabilities in subsidiaries in the amount of R$ 2,104 million. The table below shows the movements in Operating Provisions:

 

 

 

   R$ million

 Operational Provisions

Parent company

 

9M18

9M17

3Q18

3Q17

Garanties

57

13

-10

-9

Contingencies

1,883

1,125

1,507

405

PCLD - Consumers and Resellers

0

0

0

0

PCLD - Financing and Loans

17

5

5

5

Short-term liabilities in subsidiaries

2,104

3,143

959

1,353

Onerous Contracts

0

0

0

0

Provision / (Reversal) for Losses on Investments

40

45

6

7

Provision for losses on classified investments

276

0

276

0

Impairment

0

0

0

1

Adjustment to Market Value

-0

-1

0

-0

Pará Fee

0

0

0

0

Others

-121

-7

5

37

 

4,256

4,324

2,748

1,799

 

MUTATION PROVISION FOR DISCOVERED LIABILITIES - PARENT COMPANY

Balance on 12/31/2017

Other Comprehensive Results

Initial Adoption IFRS 9

Equity

Classification - held for sale

Balance at 09/30/2018

Amazonas

11,937

-

80

1,616

-

13,632

Eletronuclear

5,143

20

-

-316

-

4,846

CGTEE

3,523

-

-

563

-

4,086

ED Alagoas

1,054

-0

-

-44

-1,010

-

TOTAL PROVISION FOR PASSIVE DISCOVERED

21,657

20

80

1,818

-1,010

22,565

 

 

 

 

 

Disclaimer:

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

 


 
 


  

 

II.4   Financial Results of Parent Company

 

In 3Q18, the Financial Result had a negative impact on the Parent Company's result of R$ 140 million compared to R $ 117 million in 3Q17. This variation is mainly explained by the difference in Revenue from interest, commissions and fees.

In 9M18, the Financial Result positively impacted the Parent Company's result by R$ 1,940 million, showing a growth in relation to the 9M17 financial result of R$ 833 million, as shown below:

FINANCIAL RESULT 

 

R$ million

 

9M18

9M17

3Q18

3Q17

Financial income

 

 

 

 

Interest income, commissions and fees

3,079

2,628

670

841

Revenue from short-term investments

408

582

140

162

Moratorium surcharge on electricity

7

11

2

3

Net Monetary updates

191

-273

-13

-285

Net Exchange rate variations

41

-45

-41

-42

Other financial income

150

98

77

25

 

 

 

 

 

Financial Expenses

 

 

 

 

  Debt charges

-1,189

-1,455

-458

-432

  Lease charges

0

0

0

0

  Charges on shareholders' funds

-175

-301

-60

-89

  Other financial expenses

-571

-411

-179

-64

 

1,940

833

140

117

 

Evolution of the IGP-M and Dollar (%)

 

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

 

 

 

3Q17

3Q18

9M18

Dólar

-4.24%

3.84%

21.04%

IGPM

-0.15%

2.75%

8.30%

 

 

 

Disclaimer:

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

 


 
 


  

 

 

III. General information

 

Portfolio of Receivables and Payables

 

a.    Financing and Borrowing Granted

Financing and loans granted are made with the Company's own resources, as well as sector resources and external resources raised through international development agencies, financial institutions and arising from the launch of securities in the international financial market.

Loans and financing granted to the parent company, with a currency adjustment clause, represent approximately 29% of the total portfolio (28% at December 31, 2017). Those that foresee an update based on indices representing the domestic price level in Brazil amount to 71% of the portfolio balance (72% at December 31, 2017).

The market values of these assets are close to their book values, since they are sector-specific operations and are formed, in part, by funds from Sectoral Funds and that do not find similar conditions as a parameter of valuation at market value.

The long-term portions of the loans and financing granted based on the contractual cash flows mature in variable installments, as shown below:

R$ million

 

2019

2020

2021

2022

2023

After 2023

Total

Parent Company

2,490

5,953

   6,111

   2,520

1,572

   5,276

23,922

Consolidadated

2,452

2,659

   2,809

218

105

   555

   8,798

* This amount includes receivables from other companies outside the Eletrobras System with RGR in the amount of R$ 1,198 million, since Eletrobras acts as manager of RGR and has a counterpart in assets.

 

Payable Financing and Loans

 

Debts are guaranteed by the Federal Government and / or Eletrobras, are subject to charges, whose average rate in June 2018 is 6.29% pa. (7.94% pa in 2017), and have the following profile:

 

Parent Company

 

 

Consolidadated

 

09.30.2018

 

12.31.2017

 

09.30.2018

 

12.31.2017

Balance in R$ million

%

 

Balance in R$ million

%

 

Balance in R$ million

%

 

Balance in R$ million

%

Foreign currency

                     

USD

11,694

50%

 

9,308

39%

 

11,694

27%

 

9,308

21%

USD with Libor

835

4%

 

1,490

6%

 

1,247

3%

 

1,840

4%

EURO

266

1%

 

230

1%

 

266

1%

 

230

1%

IENE

-

0%

 

32

0%

 

-

0%

 

32

0%

Others

-

0%

 

-

0%

 

-

0%

 

2

0%

Subtotal

12,795

54%

 

11,061

47%

 

13,207

31%

 

11,412

25%

   

 

 

 

 

 

 

 

 

 

 

Local currency

 

 

 

 

 

 

 

 

 

 

 

CDI

4,409

19%

 

5,223

22%

 

10,495

24%

 

12,160

27%

IPCA

-

0%

 

-

0%

 

237

1%

 

369

1%

TJLP

-

0%

 

-

0%

 

6,675

16%

 

6,809

15%

SELIC

-

0%

 

616

3%

 

921

2%

 

1,783

4%

Others

-

0%

 

-

0%

 

4,205

10%

 

4,154

9%

Subtotal

4,409

19%

 

5,839

25%

 

22,532

52%

 

25,275

56%

 

 

 

 

 

 

 

 

 

 

 

 

Not indexed

6,380

27%

 

6,753

29%

 

7,213

17%

 

8,434

19%

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL

23,584

100%

 

23,653

100%

 

42,952

100%

 

45,122

100%

* In this amount is included the debt of other companies outside the Eletrobras System with RGR in the amount of R$ 1,198 million, since Eletrobras acts as manager of RGR and has a counterpart in assets.

 

Disclaimer:

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

 


 
 


 

 

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

             

R$ million

 

2019

2020

2021

2022

2023

After 2023

Total

Parent Company

   1,133

   2,090

   8,949

   1,577

   3,998

  178

   17,924

Consolidadated

   2,428

   4,337

10,834

   2,918

   5,148

   7,934

   33,598

 

 

Consolidated Gross Debt

 

* Includes

Debentures.

* The debts of the Distribution Companies are mostly with the Holding and therefore are eliminated in the consolidation of the gross debt (with the exception of 0.2%).

 

 

 

Ratings

 

 

Agency

National

Classification/ Perspective

Latest Report

Moody’s BCA

“B1”: / Estable

10/03/2018

Moody’s Senior Unsecured Debt

“Ba3”: / Estable

10/03/2018

Fitch - Issuer Default Ratings (Foreign Currency)

“BB-”: / Estable

06/14/2018

Fitch - Issuer Default Ratings (Local Currency)

“BB-”: / Estable

06/14/2018

Fitch - Senior Unsecured Debt Rating

"BB-"

06/14/2018

S&P LT Local Currency

“BB” /Estable

01/12/2018

S&P - Senior Unsecured

"BB-"

01/12/2018

S&P LT Foreign Currency

“BB“ /Estable*

01/12/2018

*CreditWatch

 

 

 

 

 

 

 

Disclaimer:

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

 


 
 


Eletrobras Organization Chart
 

1.     The number of SPEs is taking into account the direct and indirect interests in SPE, and disregarding the Special Purpose Companies that participate in more than one Eletrobras Company, differently from the amounts considered in the charts of each company.

2.        With effectiveness condition related to GSA signature.

 

 

Until September 2018, Eletrosul, Chesf, Eletronorte and Furnas completed the process of transferring ownership interest held in 51 Special Purpose Companies (SPEs) to its parent company, Centrais Elétricas Brasileiras S / A - Eletrobras, in payment. The mentioned transaction represents one of the stages foreseen in the PNDG 2018-2022 and had the purpose to promote the discharge of debts of its subsidiaries with the Holding and to reduce its financial leverage.

 

Of the 71 SPEs participating in the Eletrobras # 1/2018 Auction, held on September 27, 2018, 26 were sold, of which 5 (five) were by means of a power of attorney from Chesf to Eletrobras.

 

In addition to the 51 SPEs transferred to Eletrobras in the payment process, it is noteworthy that this company already had a shareholding in the Norte Energia S.A, Mangue Seco 2 and ROUAR projects.

 

 

 

 

Disclaimer:

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

 


 
 


  

 

Investiments

 

NATURE OF INVESTMENTS

 

Budgeted

2018

Realized

Budgeted

1Q18

2018

1Q18

9M18

1Q18

 Generation

 

586

65

89

172

326

56%

 Transmission

 

1,727

159

230

293

682

40%

 Distribution

 

203

65

120

81

266

131%

 Maintenance – Generation

 

735

44

59

70

173

24%

 Maintenance - Transmission

 

641

47

53

87

186

29%

 Maintenance - Distribution

 

56

42

57

48

146

258%

Other (Research, Infrastructure and environment)

 

434

86

108

97

291

67%

 Total Corporate

 

4,382

508

715

848

2,070

47%

Financial Investments in SPEs

 

 

 

 

 

 

 

 Generation

 

1,490

342

261

127

731

49%

 Transmission

 

336

26

2

1

29

9%

Total SPEs

 

1,826

369

263

128

760

42%

Total

 

6,208

876

978

976

2,830

46%

               

 

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

 

Share Capital

 

Structural of Social Capital

 

 

Shareholders

Common

Pref. Class “A”

Pref. Class “B”

Total

Quantity

%

Quantity

%

Quantidade

Quantity

%

Quantity

União Federal

554,395,652

51%

0

0%

1,544

0%

554,397,196

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%

OTHERS

269,729,841

25%

146,920

100%

228,481,566

86%

498,358,327

37%

Total

1,087,050,297

100%

146,920

100%

265,436,883

100%

1,352,634,100

100%

 

In 3Q18, the capital of Eletrobras had the following composition:

 

 

Disclaimer:

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

 


 
 

 

Stock Analysis

 

Actions

 

ELET3 - Eletrobras Common Shares

 

 

In 3Q18, the common shares of Eletrobras (ELET3) increased 27.2%, closing at R$ 15.51. The highest quotation was R$ 17.92, recorded on July 25, and the lowest R$ 13.06 recorded on July 2, considering ex-dividend values. The average daily trading volume in the period was 3.2 million shares and the average daily financial volume was R$ 50.5 million.

 

ELET6 - Eletrobras Preferred Shares

 

 

In 3Q18, the preferred shares of Eletrobras (ELET6) increased 37.4%, closing at R$ 18.62. The highest quotation was R$ 20.19, recorded on July 25, and the lowest R$ 14.68 recorded on July 2, considering ex-dividend values. The average daily trading volume in the period was 2.0 million shares and the average daily financial volume was R$ 35.5 million.

 

 

Evolution of Traded Shares in B3

 

 

 

 

 

Font: AE Broadcast

Index number 09/30/2017 = 100 and ex-dividend values

 

 

 

 

 

Disclaimer:

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

 


 
 


  

 

 

 

ADR Programs

 

EBRN - Eletrobras Common Shares

 

In 3Q18, Eletrobras common stock ADRs appreciated 21.2% to US$ 3.89. The highest price was U$ 4.83, registered on July 25, and the lowest U$ 3.41, registered on July 2, considering ex-dividend values. The average daily trading volume in the period was 305.4 thousand shares. Average daily financial volume was US$ 1.2 million.

 

EBRB - Eletrobras Preferred Shares

 

In 3Q18, Eletrobras preferred stock ADRs appreciated 28.2%, closing at U$ 4.50. The highest price was U$ 5.38, registered on July 25, and the lowest U$ 3.75, recorded on July 2, considering ex-dividend values. The average daily trading volume in the period was 25 thousand shares. The average daily financial volume was US$ 112.6 thousand.

 

Evolution of Traded Shares in ADR

 

 

 

  Font: AE Broadcast

  Index number 09/30/2017 = 100

 

 

 

 

 

 

 

                                                                                                  

 

 

Disclaimer:

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

 


 
 


  

 

Latibex - Madrid Stock Exchange

XELTO - Eletrobras Common Shares

 

In 3Q18, the Latibex common stock appreciated 17.5% to € 3.22. The highest price was € 4.14 recorded on July 24, and the lowest € 2.78, recorded on July 2, considering ex-dividend values. The average daily trading volume in the period was 1.13 thousand shares.

 

XELTB - Eletrobras Preferred Shares

 

In 3Q18, Latibex preferred shares increased 16.0% to € 3.76. The highest price was € 4.60, registered on July 26, and the lowest, € 3.14, recorded on July 2, considering ex-dividend values. The average daily trading volume in the period was 1.44 thousand shares.

 

Evolution of Foreign Currencies

 

Index number 09/30/2017 = 100 and ex-dividend values.

Font: Central Bank

 

 

Disclaimer:

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

 


 
 


 

Nº of employees

 

Parent Company

 

By time

 

Working time at company (years)

1T18

        2T18

      3Q18

Up to 5

25

27

25

6 to 10

407

391

393

11 to 15

237

236

207

16 to 20

16

14

37

21 to 25

9

10

14

more than 25

128

133

128

Total

822

811

804

 

By region

 

State of the Federation

 

1T18

2T18

3Q18

Rio de Janeiro

800

789

780

Brasília

22

22

22

Total

822

811

802

 

Hired / Outsourced Labor

 

1Q18

2Q18

3Q18

0

0

0

 

Turnover (Holding)

 

1Q18

2Q18

3Q18

0.%

0.6%

0.7%

 

 


 

Disclaimer:

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

 


 
 


  

 

 

 

Direct Partnerships in SPEs - Parent Company

 

Generation              

 

SPE

Power plant

Total  Investment R$ million

Capacity Installed  MW

Physical Warranty Average MW

Generated Energy Average MW 

1Q18

2Q18

3Q18

Norte Energia SA*

UHE

40,900,457

11,233,10

4,571

9,680,101,40

7,330,823,67

1,506,011.21

Eólica Mangue Seco 2

UEE

114,56

26

9,6

13,351,005

13,681,17

26,246,424

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

EOL

In operation

258

109,5

174,513,19

165,367,72

229,527,55

Chuí Holding S.A. (1)

EOL

In operation

144

59,6

91,890,43

89,823,67

118,580,13

Chuí IX

EOL

In operation

17,9

7,4

12,536

11,641,09

15,838,34

Hermenegildo I

EOL

In operation

57,28

24,9

43,169

   41,980,47

53,154,37

Hermenegildo II

EOL

In operation

57,28

25,3

38,619

39,530,76

  52,217,25

Hermenegildo III

EOL

In operation

48,33

21

32,851

  35,159,39

  43,412,67

Rouar S.A.

EOL

U$ 101.72

65.1

N/A

     

Brasventos Eolo

EOL

In operation

58.45

21.86

27,787,60

22,848,50

44,390,00

Rei dos Ventos 3

EOL

In operation

60.12

21.07

27,490,00

26,461,80

50,850,00

Miassaba 3

EOL

In operation

68.47

22.84

32,735,70

28,600,90

56,756,00

Serra das Vacas Holding (3)

EOL

In operation

90.76

43.60

92,799,52

80,985,47

107,243,13

Chapada do Piauí II Holding (4)

EOL

In operation

172.40

88.70

78,925,51

193,304,04

245,816,58

Mangue Seco 2

EOL

In operation

26

9.60

13,351,01

13,681,17

26,246,42

Pedra Branca

EOL

In operation

30

12.90

16,232,87

35,941,57

37,706,21

São Pedro do Lago

EOL

In operation

30

13.50

14,308,05

33,482,40

35,325,06

Sete Gameleiras

EOL

In operation

30

12.60

14,081,80

31,431,23

34,535,35

* The commercial operation already totals 5,121.9 MW of capacity in commercial operation.

(1) Chuí Holding S.A is the controlling shareholder of Chuí S.A. I, II, IV, V, VI, VII wind farms.

(2) Santa Vitória do Palmar Holding (SVP), which is the parent company of Geribatu SA spol. I to X incorporated Chuí Holding SA, in this way, SVP controlled the Chuí SA I, II, IV, V, VI, VII.

(3) Serra das Vacas Holding S.A incorporated the interests of wind power companies Serra das Vacas S.A. I to IV.

(4) The Chapada do Piauí II Holding SA incorporated the wind power SPEs Ventos de Santa Joana I, III, IV, V, VII and Ventos de Santo Augusto IV S.A.

 

 

 

 

 

 

 

 

Disclaimer:

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

 


 
 


 

Power plant

Participation (%)

Location

(State)

Start of

Operation

End of

Operation

 

 

Norte Energia S.A

15

PA

abr/16

ago/45

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

78

RS

fev/15

abr/47

Chuí Holding S.A. (1)

78

RS

mai/15

abr/47

Chuí IX

99.99

RS

out/15

mai/49

Hermenegildo I

99.99

RS

nov/15

jun/49

Hermenegildo II

99.99

RS

dez/15

jun/49

Hermenegildo III

99.99

RS

dez/15

jun/49

Brasventos Eolo

49

RN

jul/14 (')

dez/45

Rei dos Ventos 3

49

RN

jul/14 (')

dez/45

Miassaba 3

49

RN

jul/14 (')

ago/45

Rouar S.A

50

Uruguai -Departamento de Colônia

20 years*

 

Serra das Vacas Holding (3)

49

PE

dez/15

jun/49

Chapada do Piauí II Holding (4)

49

PI

(5)

dez/35

Mangue Seco 2

49

RN

set/11

jun/32

Pedra Branca

49

BA

mar/13

fev/46

São Pedro do Lago

49

BA

mar/13

fev/46

Sete Gameleiras

49

BA

mar/13

fev/46

 

Disclaimer:

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

 


 
 


  

 

Transmission

 

Development

Object

(From to)

Participation (%)

Investiment

(R$ million)

Capacity Installed   (Km)

Voltage

(kV)

Start of

Operation

Termination of

Concession

Intesa

Colinas-Miracema-Gurupi-Peixe Nova-Serra da Mesa 2 (TO / GO)

49

In operation

695

500

mai/08

abr/36

Uirapuru

Ivaiporã (PR) – Londrina (PR)

75

In operation

120

525

jul/06

mar/35

TME

LT Jauru / Cuiabá, em 230 kV, (MT)

49

In operation

348

500

nov/11

nov/39

Brasnorte

Jauru - Juba – C2 (MT) e  Maggi - Nova Mutum (MT), SE Juba e SE Maggi - 230/138 kV

49.71

In operation

402

230

set/09

mar/38

Transirapé

Irapé – Araçuaí

24.5

In operation

65

230

mai/07

mai/37

Transleste

Montes Claros – Irapé

24

In operation

138

345

dez/05

dez/35

Transudeste

Itutinga – Juiz de Fora

25

In operation

140

345

fev/07

fev/37

ETAU

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

27.42

In operation

188

230

jul/05

dez/32

AETE

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

49

In operation

193

230

ago/05

fev/34

Centroeste de Minas

Furnas – Pimenta II

49

In operation

62,7

345

mar/10

mar/35

Luziânia-Niquelândia

SE Luziânia

SE Niquelândia

49

In operation

-

-

jun/14

ago/15

mai/42

mai/42

 

 

 

 

Disclaimer:

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

 


 
 


Development

Object

(From to)

Total  Investment R$ million)

Capacity Installed  

(MVA)

Location

Start of

Operation

Termination of

Concession

AETE

SE Seccionadora Cuiabá

In operation

-

MT

ago/05

fev/34

Uirapuru

 

In operation

   

jul/06

mar/35

Brasnorte

SE Juba

SE Maggi - 230/138 kV

In operation

300

100

MT

set/09

mar/38

 

ETAU

Lagoa Vermelha 2 230/138kV;

Barra Grande 230/138 kV;

Santa Marta 230 kV  - Entrada de Linha;

Ampliação Lagoa Vermelha 2 230/138kV

In operation

150

SC

abr/05

dez/32

-

jul/05

-

jul/05

150

out/16

INTESA

SE Peixe 2

SE Serra da Mesa 2

In operation

-

TO/GO

mai/08

abr/36

TME

SE Jauru 500/230 kV

In operation

750

MT

nov/11

nov/39

Transirapé

SE Aracuaí 2

SE Irapé

SE Irapé

In operation

2x225

2x225

MG

mai/07

mai/37

Transleste

-

In operation

-

MG

dez/05

dez/35

Transudeste

-

In operation

-

MG

fev/07

fev/37

Centroeste de Minas

-

In operation

-

MG

mar/10

mar/35

Luziânia-Niquelândia

SE Luziânia

SE Niquelândia

In operation

450

30

GO

jun/14

ago/15

mai/42

mai/42

 

 

 

Disclaimer:

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

 


 
 


  

 

 

Balance Sheet

 

R$ thoussand

Asset

Parent Company

Consolidated

09.30.2018

31.12.17

09.30.2018

31.12.17

Current

       

   Cash and cash equivalents

67,537

161,326

878,555

792,252

   Restricted cash

1,788,067

1,329,876

1,788,067

1,329,876

   Marketable securities

3,142,639

5,059,957

6,359,199

6,924,358

   Customers

363,434

502,236

5,055,619

4,662,368

   Financial assets - Concessions and Itaipu

0

0

6,880,017

7,224,354

   Loans and financing

8,652,331

8,288,875

2,540,133

2,471,960

   Equity Pay

1,545,149

1,726,958

293,769

245,577

   Taxes to recover

        294,641

        623,299

        978,880

      1,066,207

   Income tax and social contribution

924,044

1,436,175

2,189,011

1,874,475

   Reimbursement rights

235

212

455,560

479,243

   Warehouse

              235

              212

        455,560

        479,243

   Nuclear fuel stock

               -  

               -  

        486,216

        465,152

   Derivative financial instruments

           2,903

               -  

        241,048

        209,327

  Hydrological risk

               -  

               -  

        81.301

        104.530

  Assets held for sale

      3,301,900

      1,482,907

    15,454,694

      5,825,879

  Credits with subsidiaries - CCD

     1,485,926

                    -  

                    -  

                    -  

   Other

1,605,241

802,501

2,039,826

2,115,375

TOTAL CURRENT ASSETS

23,174,047

21,414,322

46,599,215

37,358,727

 

 

 

 

 

NON CURRENT

 

 

 

 

LONG-TERM

 

 

 

 

   Reimbursement rights

0

0

5,777,525

6,509,032

   Loans and financing

23,921,921

22,889,437

8,798,230

7,794,891

   Customers

0

30,576

110,808

462,376

   Marketable securities

275,760

269,141

276,081

331,862

   Nuclear fuel stock

0

0

800,900

831,008

   Taxes to recover

0

0

1,507,491

1,635,142

   Current Income Tax and Social Contribution

0

471,568

729,113

471,568

   Deferred income and social contribution     taxes

0

0

0

1,010,810

   Escrow deposits

3,256,486

3,052,505

6,036,277

5,874,708

   Fuel Consumption Account - CCC

0

0

0

0

   Financial assets - Concessions and Itaipu

3,160,480

2,820,172

51,509,439

50,660,769

   Derivative financial instruments

0

0

249,723

216,904

   Advances for future capital increase

1,274,068

1,701,275

395,903

959,838

  Hydrological risk

0

0

255,810

325,132

   Other

2,381,592

2,278,845

1,530,958

1,108,629

 

34,270,307

33,513,519

77,978,258

78,192,669

INVESTMENTS

68,626,725

66,159,343

27,644,601

28,708,364

Fixed assets net

199,498

197,418

24,865,284

27,965,837

INTANGIBLE

2,234

0

607,593

749,762

TOTAL NON-CURRENT ASSETS

103,098,764

99,870,280

131,095,736

135,616,632

TOTAL ASSETS

126,272,811

121,284,602

177,694,951

172,975,359

 

 

 

 

Disclaimer:

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

 


 
 


  

 

 R$ thousand

Liabilities and Equity

Parent Company

Consolidated

09.30.2018

09.30.17

09.30.2018

09.30.17

CURRENT

       

Loans and financing

5,659,891

2,336,333

9,353,583

5,886,141

Debentures

0

0

32,916

183,432

Compulsory loan

28,788

42,260

28,788

42,260

Suppliers

521,298

514,752

7,678,269

10,443,752

Advances from customers

578,740

575,962

903,055

654,853

Taxes payable

208,418

100,767

1,345,291

1,173,319

Income tax and social contribution

586,656

1,023,764

1,933,003

1,498,218

Onerous contracts

0

0

9,436

12,048

Remuneration to shareholders

8,367

9,484

13,854

18,339

Financial liabilities - Concessions and Itaipu

665,541

783,658

0

0

Estimated liabilities

140,174

107,962

1,289,650

1,204,222

Reimbursement Obligations

1,826,427

1,346,660

1,826,427

1,392,542

Post-employment benefits

7,392

28,830

186,373

193,847

Provisions for contingencies

837,513

850,704

1,405,181

1,518,387

Regulatory charges

0

0

744,663

728,180

Lease

0

0

150,381

145,324

Derivative financial instruments

1,864

2,175

1,891

2,466

Liabilities associated with assets held for sale

6,099,704

4,805,946

13,066,467

7,630,670

Others

81,185

314,847

719,219

1,458,952

TOTAL CURRENT LIABILITIES

17,251,958

12,844,104

40,688,447

34,186,952

 

 

 

 

 

NON-CURRENT

 

 

 

 

Loans and financing

17,924,201

21,316,181

33,598,387

39,235,650

Suppliers

0

0

10,315,326

7,795,345

Debentures

0

0

442,741

287,347

Advances from customers

0

0

474,257

519,391

Compulsory loan

464,659

458,874

464,659

458,874

Obligation for asset retirement

0

0

2,578,563

2,470,400

Fuel Consumption Account - CCC

0

0

0

0

Provisions for contingencies

18,581,642

16,946,508

25,354,815

23,033,963

Post-employment benefits

578,666

578,666

1,991,953

2,001,715

Provision for unsecured liabilities

22,564,728

21,656,617

0

0

Onerous contracts

0

0

1,467,310

2,067,179

indemnification obligations

0

0

939,139

1,062,634

Lease

0

0

852,158

932,496

Grants payable - Use of public goods

0

0

65,339

63,082

Advances for future capital increase

3,814,743

3,639,441

3,814,743

3,639,441

Derivative financial instruments

0

0

45,832

39,594

Regulatory charges

0

0

735,714

698,423

Taxes payable

0

0

259,165

326,527

Income tax and social contribution

361,739

394,958

8,612,811

8,901,931

Others

1,416,866

1,109,876

1,264,026

2,501,883

TOTAL NON-CURRENT LIABILITIES

65,707,244

66,101,121

93,276,938

96,035,875

 

 

 

 

 

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

1,321,854

1,321,854

1,321,854

1,321,854

Equity valuation adjustments

0

22,434

0

22,434

Profits (losses)

1,228,160

0

1,228,160

0

Accumulated other comprehensive income

-4,408,906

-4,177,412

-4,408,906

-4,177,412

   Amounts recognized in OCI classified as held for sale

0

0

0

0

Non-controlling shareholders

0

0

415,957

413,155

TOTAL SHAREHOLDERS' EQUITY

43,313,609

42,339,377

43,729,566

42,752,532

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

126,272,811

121,284,602

177,694,951

172,975,359

                                                                                                                            

 

 

 

 

Disclaimer:

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

 


 
 


  

 

 

Income Statement

 R$ thousand

 

Parent Company

Consolidated

 

09.30.18

09.30.17

09.30.18

09.30.17

NET OPERATING REVENUE

339,247

2,897,015

8,892,350

26,846,848

Operating costs

 

 

 

 

Energy purchased for resale

-27,008

-2,560,073

-4,855,324

-7,949,311

Charges upon use of electric network

0

0

-1,550,067

-1,207,319

Construction

0

0

-1,330,084

-1,143,665

Fuel for electricity production

0

0

-1,854,327

-289,056

NET OPERATING REVENUE

312,239

336,942

18,515,580

16,257,497

Operating expenses

 

 

 

 

Personnel, Supllies and Services

-490,748

-479,148

-7,119,783

-7,800,311

 

0

0

0

0

Depreciation

-3,380

-3,421

-1,253,070

-1,131,093

Amortization

0

0

-184,733

-253,436

Donations and contributions

-87,864

-66,937

-126,100

-110,257

Operating Provisions /Reversals net

-4,255,824

-4,323,761

-3,570,842

-652,967

Investigation Findings

0

0

0

0

Others

-114,940

-179,039

-1,816,226

-1,096,703

 

-4,952,756

-5,052,306

-14,070,754

-11,044,767

OPERATING INCOME BEFORE FINANCIAL RESULT

-4,640,517

-4,715,364

4,444,826

5,212,730

Financial result

 

 

 

 

   Financial income

 

 

 

 

Income from interest, commissions and fees

3,078,888

2,627,611

1,664,483

662,305

Income from financial investments

408,405

581,857

574,601

781,222

Moratorium on electricity

6,728

10,843

436,221

256,835

Restatement Assets

740,825

608,272

714,362

1,058,806

Current foreign currency exchange rate variations

4,033,281

901,370

3,922,720

919,060

Payment of indemnities - Law 12,783 / 13

0

0

0

0

Regulatory asset update

0

0

476,718

36,942

Gains on derivatives

0

0

61,637

248,147

Other financial income

149,748

97,652

420,853

319,465

   Financial expenses

 

 

 

 

Debt charges

-1,188,879

-1,454,874

-3,186,265

-4,358,814

Lease charges

0

0

-232,575

-240,944

Charges on shareholders' funds

-175,302

-300,939

-205,391

-314,993

Noncurrent Restatement

-549,863

-881,158

-808,468

-1,088,948

Noncurrent foreign currency exchange rate variations

-3,992,565

-946,790

-4,122,392

-999,745

Regulatory liability update

0

0

-24,347

-38,636

Losses on derivatives

0

0

-5,974

-16,040

Other financial expenses

-570,857

-410,574

-1,278,748

-977,083

 

1,940,409

833,270

-1,592,565

-3,752,421

INCOME BEFORE EQUITY

-2,700,108

-3,882,094

2,852,261

1,460,309

RESULTS OF EQUITY

4,517,005

7,100,357

886,599

2,542,311

OPERATING INCOME BEFORE TAXES

1,816,897

3,218,263

3,738,860

4,002,620

Current Income tax and social contribution

-586,656

-938,325

-2,159,390

-1,315,807

Deferred Income Tax and Social Contribution

0

-43,017

-304,860

-414,411

NET INCOME/LOSS FOR THE PERIOD

1,230,241

2,236,921

1,274,610

2,272,402

SHARE ATTRIBUTED TO CONTROLLING

1,230,241

2,236,921

1,230,241

2,236,921

SHARE ATTRIBUTED TO NON-CONTROLLING

0

0

44,369

35,481

NET INCOME/LOSS PER SHARE

0,91

1,65

0,91

1,65

         

 

 

 

Disclaimer:

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

 


 
 


  

 

Cash Flow Statement

R$ thousand

 

Parent Company

Consolidated

09.30.2018

09.30.17

09.30.2018

09.30.17

Operating Activities

 

 

 

 

Income before income tax and social contribution

1,816,897

3,218,263

3,738,860

4,002,620

Adjustments to reconcile income to cash provided by operations:

 

 

 

 

Depreciation and amortization

3,380

3,421

1,437,803

1,384,529

Net monetary variations

-190,962

272,886

94,106

30,142

Net foreign exchange rate variations

-40,716

45,420

199,672

80,685

Financial charges

-2,148,292

-1,447,240

1,496,074

3,662,950

Financial asset revenue

0

0

-4,365,347

-4,402,908

Equivalence equity results

-4,517,005

-7,100,357

-886,599

-2,542,311

Provision (reversal) for capital deficiency

2,103,666

3,143,362

0

0

Provision (reversal) for doubtful accounts

16,556

5,220

729,700

204,870

Provision (reversal) for contingencies

1,883,406

1,125,137

3,714,460

1,921,398

Provision (reversal) for the impairment of assets

0

0

358,963

-560,553

Provision (reversal) for onerous contract

0

0

-782,767

-1,970,577

Provision (reversal) for losses on investments

316,334

44,521

428,475

27,204

TRFH – (Pará rate)

0

0

-1,183,583

-641

 

0

0

0

0

Provision (reversal) for hydrological risk - GSF

0

0

0

0

RGR Charges

258,283

274,503

258,283

274,503

Adjustment to present value / market value

-148

-13,207

108,914

50,945

Minority interest in results

0

0

-87,661

-69,150

Charges on shareholders' funds

175,302

300,939

205,390

314,993

Financial instruments - derivatives

0

0

-55,663

-264,187

Other

-156,380

-90,207

86,606

171,319

 

-2,296,576

-3,435,602

1,756,825

-1,686,789

(Increases) / decreases in operating assets

 

 

 

 

Customers

-74

0

-211,135

287,490

Marketable securities

1,917,319

-267,151

627,560

-1,870,108

Reimbursement rights

0

-212,609

1,421,981

615,030

Warehouse

-23

91

23,683

-43,940

Nuclear fuel stock

0

0

9,044

-106,178

Financial assets - Itaipu and public service concessions

-458,425

8,171

-458,425

8,171

Assets held for sale

0

0

-9,628,815

0

Hydrological risk

0

0

92,551

101,456

Credits with subsidiaries - CCD

-1,485,926

0

0

0

Other

367,428

159,673

829,313

-722,086

 

340,299

-311,824

-7,294,243

-1,730,165

Increase / (decrease) in operating liabilities

 

 

 

 

Suppliers

-26,994

556,458

379,317

1,965,593

Advances from customers

0

0

200,290

127,161

Lease

0

0

-75,281

-67,864

Estimated liabilities

32,212

54,899

116,944

655,178

indemnification obligations

0

95,371

-169,377

-99,913

Sectorial charges

0

0

53,774

301,739

Liabilities associated with assets held for sale

0

0

5,435,797

0

Other

126,160

85,796

-1,958,308

362,313

 

131,378

792,524

3,983,156

3,244,207

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment of financial charges

-792,344

-1,417,890

-2,065,326

-2,965,478

Payment of RGR charges

-145,028

-120,910

-145,028

-120,910

Financial charges received

0

0

6,186,999

2,423,706

income tax payment and social contribution

1,051,406

1,463,532

486,506

635,487

   Payment of refinancing of taxes and contributions - principal

-141,810

-225,695

-1,623,694

-1,351,479

   investment compensation received in corporate participations

0

0

-57,897

-102,853

Pension payment

943,886

511,153

608,213

551,875

Payment of legal provisions

-21,439

-21,105

-217,198

-249,340

Judicial deposits

-804,407

-541,700

-1,078,811

-651,314

 

-150,455

-296,624

-329,581

-69,609

Net cash from operating activities

-68,195

-385,878

3,948,781

1,929,958

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

 

 

Loans and financing

0

0

699,270

2,632,553

Payment of loans and financing - Main

-2,275,838

-2,939,223

-5,051,178

-4,318,737

Payment of shareholders remuneration

-729

-982

-10,674

-8,716

Advanced receivalbe for future capital increase

0

0

0

0

RGR resource for transfer

0

800,654

974,830

800,654

   Other

0

0

11,276

166,069

Net cash from financing activities

-2,276,567

-2,139,550

-3,376,476

-728,175

Investing activities

 

 

 

 

Lending and financing

-239,002

-1,748,789

0

0

loans and financing receivables

2,270,594

3,739,603

1,652,329

2,001,900

Acquisition of fixed assets

-3,732

-89

-662,230

-824,133

Acquisition of intangible assets

0

0

-36,372

-87,169

Acquisition of concession assets

0

0

-1,223,395

-1,248,720

Acquisition / capital investment in equity

-140,700

-157,200

-613,727

-1,570,701

Advance concession for future capital increase

0

-63,279

-88,524

-28,049

Investment sale in shareholdings

363,813

1,065,266

443,140

1,065,266

Other

0

0

42,776

-127,326

Net cash from investing activities

2,250,973

2,835,512

-486,002

-818,931

 

 

 

 

 

 Net decrese in cash and cash equivalents for the year

-93,789

310,084

86,303

382,852

 

 

 

 

 

   Cash and cash equivalents at beginning of year

161,326

194,106

792,252

679,668

   Cash and cash equivalents at end of year

67,537

504,190

878,555

1,062,520

 

-93,789

310,084

86,303

382,852

 

Disclaimer:

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: November 19, 2018
CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS
By:
/SArmando Casado de Araujo
 
Armando Casado de Araujo
Chief Financial and Investor Relation 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.