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 June, 2020

Commission File Number 1-34129



CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS
(Exact name of registrant as specified in its charter)



BRAZILIAN ELECTRIC POWER COMPANY
(Translation of Registrant's name into English)



Rua da Quitanda, 196 – 24th floor,
Centro, CEP 20091-005,
Rio de Janeiro, RJ, Brazil
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ___X___ Form 40-F _______

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes _______ No___X____


 
 


 
 


 
 

 

INTRODUCTION

Rio de Janeiro, May 28, 2020

Eletrobras (Centrais Elétricas Brasileiras S.A.)

[B3: ELET3 and ELET6 – NYSE: EBR and EBR-B – LATIBEX: XELTO and XELTB]

Eletrobras, the largest company in the electric energy sector in Latin America, active in the generation, transmission and commercialization segment, parent of 6 operational subsidiaries, a holding company - Eletropar - a research center - Cepel and with a 50% stake in the Itaipu Binacional's Capital Stock and direct and indirect participation in 133 Special Purpose Companies, on this date, announces its results for the period.

1st QUARTER OF 2020

 

Eletrobras presented, in the first quarter of 2020 (1Q20), a net profit of R$ 307 million, lower than the R$ 1,347 million obtained in the same period of 2019, mainly impacted by 2 (two) negative economic effects, but without financial effect, which was the negative exchange variation of R$ 665 million as a result of the currency devaluation during the Covid 19 pandemic and the remeasurement of the fair value of RBSE revenue, with a reduction of R$ 411 million in this line. In the first quarter of 2019 (1Q19), the profit consisted of the Net Income from continuing operations of R$ 1,570 million and the Net Loss of R$ 223 million referring to discontinued operations (distribution). Recurring profit in 1Q20 was R$ 981 million, also influenced by the negative economic effects mentioned above, against the result of R$ 1,640 million in 2019. Excluding these two effects, recurring profit would be R$ 282 million higher than in 1Q19.

Net Operating Revenue went from R$ 6,466 million in 1Q19 to R$ 6,956 million in 1Q20, an increase of 8%. Ebtida IFRS, in the amount of R$ 2,951 million in 1Q19, dropped to R$ 2,803 million in 1Q20. Recurring Net Operating Revenue grew 9%, from R $ 6,370 million in 1Q19 to R$ 6,947 million in 1Q20. Recurrent Ebtida grew 4%: R$ 3,088 million in 1Q19 to R$ 3,205 million in 1Q20.

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 


TABLE 01: MAIN INDICATORS (R$ Million)

 

1Q20

1Q19

%

Energy Sold - Generation GWh (1)

37

35

6%

Gross Revenue

8,464

7,931

6.8%

Recurring Gross Revenue (2)

8,473

7,835

8.0%

Net operating revenue

6,956

6,466

7.6%

Recurring Net Operating Revenue (2)

6,947

6,370

9.1%

EBITDA

2,803

2,951

-5.0%

Recurring EBITDA (3)

3,227

3,088

3.8%

Ebitda Margin

40%

46%

-5.3

Recurring Ebitda Margin

46%

48%

-2.3

Gross debt without third party RGR

49,481

42,281

17.0%

Recurring Net Debt

21,047

19,975

5.4%

Recurring Net Debt / Recurring LTM EBITDA

1.6

2.1

-0.5

Net Income from Continuing Operations

307

1,570

-80.5%

Net Profit

307

1,347

-77%

Investments

329

501

-28%

Employees

12,650

14,232

-11%

(1) Does not consider the energy allocated for quotas, from the plants renewed by Law 12,783 / 2013 (2) Revenue from Procel Retroativa, GAG Retroativa and Revenue from Generation Construction; (3) Excludes item (2), costs of the Extraordinary Retirement Plan (PAE) and the Consensual Dismissal Plan (PDC), expenses with independent investigation, Extraordinary Consultancy at the Holding, expenses related to the Inepar / Furnas agreement, retroactive payment to Enel by TUSD Eletronuclear, Inepar + Camargo Correa + CIEN judicial agreements; FGTS and INSS at Eletronorte - April launch; provisions for contingency, onerous contracts, Impairment, provision for losses on investments, provision for losses on investments classified as held for sale, provisions for adjustment to market value, provision for water resources inspection fee (TFRH), provision for ANEEL CCC ; Allowance for loan losses from third parties to RGR (transfer CCEE) and Allowance for loss of prospective credit (CPC 48), Expiry of Concession and Indemnification for Third Parties in Furnas; (4) Excludes item (3) and monetary restatement for the compulsory loan contingency; financial income from Eletropaulo lawsuit and activation of non-recurring tax credit.

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

I |  ANALYSIS OF THE CONSOLIDATED RESULT (R$ MILLION)

TABLE 02: CONSOLIDATED RESULTS

Financial Statements

1Q20

1Q19

Generation Revenue

5,949

5,622

Transmission Revenue

2,395

2,075

Others Revenue

129

234

Gross Revenue

8,473

7,931

Deductions from Revenue

-1,517

-1,465

Net Operating Revenue

6,956

6,466

Operational costs

-1,751

-1,289

Personnel, Material, Services and Others

-2,144

-2,046

Depreciation and amortization

-469

-428

Operating Provisions

-447

-523

 

2,144

2,179

Shareholding

164

160

Others Revenues and Expenses

25

183

 

2,333

2,523

Financial Result

-1,509

-336

Income before tax

824

2,187

Income tax and social contribution

-517

-617

Net Income for the year

307

1,570

Profit (Loss) Net of Taxes from Discontinued Operation

0

-223

NET INCOME FOR THE PERIOD

307

1,347

 

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

TABLE 03: RECURRING CONSOLIDATED RESULT

Recurrent Financial Statement *

1Q20

1Q19

Generation Revenue Recurrent

5,941

5,618

Transmission Revenue Recurrent

2,395

2,075

Others Revenue Recurrent

129

142

Gross Revenue Recurrent

8,464

7,835

Deductions from Revenue Recurrent

-1,517

-1,465

Net Operating Revenue Recurrent

6,947

6,370

Operational costs Recurrent

-1,743

-1,286

Personnel, Material, Services and Others Recurrent

-1,968

-1,863

Depreciation and amortization Recurrent

-469

-428

Operating Provisions Recurrent

-196

-294

 

2,571

2,500

Shareholdings Recurrent

164

160

 

2,735

2,660

Financial Result Recurrent

-1,237

-403

Income before tax Recurrent

1,498

2,257

Income tax and social contribution Recurrent

-517

-617

Net Income for the year Recurrent

981

1,640

* Non-recurring adjustments mentioned in the Highlights.

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

I.1 MAIN VARIATIONS OF FINANCIAL STATEMENTS

HIGHLIGHTS IN ANALYSIS OF VARIATION 1Q19X1Q20

OPERATING INCOME

TABLE 04: GENERATION REVENUE

Operating Revenue - Generation

1Q20

1Q19

%

Generation Revenue

 

 

 

Energy supply to distribution companies

4,005

3,798

5%

Supply

673

561

20%

CCEE

350

365

-4%

Operation and Maintenance Revenue

930

841

11%

Construction Revenue

8

4

132%

Itaipu Transfer

-17

54

-132%

Generation Revenue

5,949

5,622

6%

Non-recurring events

 

 

 

(-)Construction Generation / GAG Retroactive 1Q19

-8

-4

132%

Recurring Generation Revenue

5,941

5,618

6%

1Q19X1Q20 Variation Analysis

Energy supply to distribution companies

·        At the subsidiary Eletronorte (+ R$ 311 million) (i) a 398% increase in sales to traders (1Q19: 329 MWmed x 1Q20: 1,639 MWmed); (ii) 9% increase in the prices of contracts entered into with suppliers (1Q19: R$ 176.20 / MWh x 1Q20: R$ 191.19 / MWh); on the other hand, (iii) there was a 79.59% decrease in ACR revenue due to the termination of two products, 13th Auction - 2014/2019 and 17th Auction - 2018/2019, reducing 72.35% in the amount of energy sold ( 1Q19: 485 MWmed x 1Q20: 134 MWmed); and (iv) a 26.18% reduction in the average price in the ACR (1Q19: R$ 237.08 / MWh x 1Q20: R$ 175 / MWh);

·        At the subsidiary Eletronuclear (+ R$ 66 million), mainly due to (i) the 9.30% increase in the Fixed Revenue of the Angra 1 and 2 Mills according to ANEEL Homologatory Resolution 2,661 / 2019, which represents R$ 79, 2 million positive effect in the quarter offset by (ii) the R$ 13.4 million estimated excess energy portion recognized in 1Q19 without a counterpart in 1Q20;

·        At subsidiary CGT Eletrosul (+ R$ 53 million): (i) variation in prices in the regulated market was due to a contractual readjustment by the IPCA and, mainly, due to the reimbursement for generation failure in 1Q19 in the amount of R$ 81 million , given the overhaul at UTE Candiota, which in 2020, the reimbursement is approximately R$ 7 million

·        Partially compensated by the reduction in subsidiary Furnas (-R$ 166 million), mainly due to: (i) In the ACR, the termination of the 2014-2019 Existing Energy Product resulted in a net drop in revenue of approximately R$ 192 million, seen an average contracted quantity in 1Q19 of 334MWméd; and (ii) Lower sales of energy in the ACL, representing a decrease of R$ 33 million, partially offset by (iii) Seasonalization and price readjustment (on average of 4%) of quantity contracts, representing an increase in revenue in the order of R$ 10 million; and (iv) Higher dispatch from the Santa Cruz plant in 2020, increasing revenue by R$ 31 million. It is worth mentioning that the increase in sales in the "Supply" category explained below leads to a drop in revenue in the "Supply" item, given the lower availability of energy to be traded in the ACL-Supply.

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

·        At the subsidiary Amazonas GT (-R$ 66 million), mainly due to: (i) generation of UTE Aparecida, which decreased by 64% due to the migration of the CCVEE contract (exclusive with Amazonas Distribuição de Energia), with average price of R$ 591.00 / MWh, for CCEAR (regulated environment) presenting a lower average price, in the amount of R$ 248.5 / MWh, with a consequent reduction in revenue by R$ 106 million. The change in the contractual modality was due to compliance with the provisions of MME Ordinance No. 855, of November 13, 2018, with a view to the optimal use of natural gas thermoelectric plants connected to the Coari - Manaus gas pipeline, whose fuel contract establishes the end of supply in Nov / 2030, and Provisional Measure 855/18 granted Amazonas GT the alternative to change the contractual profile, leaving CCVEE, which ended in Jul/2020, to CCEAR whose deadline is concatenated to that of the natural gas contract (Nov/2030). This amendment was made during the term of the aforementioned MP, and is therefore valid despite its non-conversion into law. In addition to extending the supply term in the new contract, the plant has the ship or pay portion covered by the CCC fund, similarly to the conditions of UTE Mauá 3 under LEN A-5/2014; (ii) UHE Balbina contract, which decreased by 40.9%, due to the seasonality curve of the contracted energy registered at CCEE in response to the buyer's load, with a significant drop in 1Q20, showing a negative impact of R$ 45 million. .

Supply

·        At the subsidiary Furnas (+ R$ 110 million), mainly due to the following reasons: (i) New contracts at the ACL that started in 2020, positively impacted revenue by R$ 103 million; and (ii) price adjustment of the contracts in force at the Itumbiara Plant auctions, governed by Law 13,182 / 2015, specific to final consumers, resulting in an increase in revenue of approximately R$ 7 million.

CCEE

·        At subsidiary Furnas (-R$ 36 million), mainly due to (i) variation in GSF in the period, which decreased by approximately 30% (average of 149% in 2019 and 106% in 2020) - providing greater energy allocated to Furnas in 2019 (and consequent higher settlement in MCP) and less energy allocated in 2020 (and consequent lower settlement in MCP). In addition, the average PLD dropped 34% (1Q19 was R$ 285.04 while in 1Q20 it was R$ 188.63).

·        At subsidiary CGT Eletrosul (-R$ 33 million), mainly due to (i) the PLD submarket in the 1Q20 was 25% lower than in the 1Q19; (ii) in 2019, there was greater revenue of secondary energy by the hydroelectric plants participating in the Energy Reallocation Mechanism (MRE) as a result of the seasonalization strategy adopted; and (iii)  in 1Q19 the GSF was positive, with an average of 149%, while in 2020 the average was 105%.

·        Partially offset by subsidiary Chesf (+ R$ 45 million, mainly due to the following reason: (i) problem occurred at an industrial consumer's plant in the state of Alagoas, from May/2019 to March / 2020, and increased energy purchased at around 130 average MW (ex-post purchase contracts accumulated from January to March/2020), whose energy was settled at CCEE, at an average price of around R$ 159 / MWh.

Operation and Maintenance Revenue - Plants Renovated by Law 12.783/2013

·        At subsidiary Chesf (+ R$ 58 million), mainly due to (i) RAG's annual readjustment of around 9%, according to Aneel Homologatory Resolution No. 2587/2019 (2019-2020 cycle); (ii)  increase in the generation of quota plants in this period (2,558 average MW against 2,025 average MW in 2019), impacting the revenue destined to the reimbursement of CFURH.

·        At subsidiary Furnas (+ R$ 34 million), mainly due to (i) RAG's annual readjustment of approximately 11%, according to Aneel Homologatory Resolution No. 2587/2019, representing an increase of revenue of R$ 28 million in 1Q20 and ( ii) the variation of CFURH and, consequently, of PIS / COFINS, which represented an increase of R$ 6 million in revenue.

Construction Revenue 

·        Higher level of investment made in 1Q20, but with no effect on results as it has an equivalent value in construction expenses.

Transfer Itaipu

·        Variation of the tariff on which the monetary restatement calculated based on the American price indices Commercial Price and Industrial goods, which had a negative variation and offset the exchange variation gains on the financial asset of Itaipu recognized by the interministerial decree 04/2018 MME and Ministry of Finance that determines Itaipu's revenue.

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

TABLE 05: TRANSMISSION REVENUE

Operating Transmission Revenue

1Q20

1Q19

%

Transmission Revenue

2,395

2,075

15%

O&M Revenue - Renewed Lines

827

643

29%

O&M Revenue - Regime Exploration

207

197

5%

Construction Revenue

144

112

29%

Finance - Return on Investment - RBSE

1,016

927

10%

Contractual Revenue - Transmission

200

196

2%

Recurring Transmission Operating Revenue

2,395

2,075

15%

O&M Revenue - Renewed Lines Law 12.783/13 

·        RAP ratified for the 2019/2020 cycle (Homologatory Resolution 2565/19) referring to the 2019-2020 tariff cycle, with an impact of R$ 22 million in Furnas, R $ 20 million in Eletronorte and R$ 5 million in CGT Eletrosul;

·        At CGT Eletrosul (+ R$ 7.6 million) of new works for the period and at Subsidiary Furnas (+ R$ 9 million) for the replacement of 2 Series Capacitor Banks at SE Samambaia (in the amount of R$ 3 million/month) and all the physical fitness necessary for the start-up of both.

·        Partially offset by Chesf (-R$ 49 million), mainly due to: (i) falls in items related to the revenue of Provisional Measure nº  579 resulting from the tariff revisions between the resolution of the 2018/2019 cycle and the resolution of the current cycle 2,565/19 (4.66%), such as: prepayment of revenue, PV (R$ 4 million) and adjustment installment. The other effects can be attributed to the determination by IFRS15 of the undertakings associated with authoritative resolutions of CC 061/2001 and the projection of the new revenue flow in accordance with the approval resolution published in July / 2019. Despite the fall in the corporate balance sheet, the regulatory RAP grew 4.72% between the periods mentioned, generating an increase of approximately R$ 37 million.

·        Variation of the elimination effect between quarters, in the consolidated, of operations between group companies of approximately R$ 162 million.

O&M Revenue - Exploration Regime 

·        In the subsidiary Chesf (+ R$ 12 million), mainly due to: (i) annual adjustment of RAP - Annual Permitted Revenue (7.64%), according to Aneel Resolution No. 2,565 / 19 with emphasis on the growth related to the entry in operation of new transmission undertakings during 2019 and the effects of the application of IFRS 15 on non-renewed contracts; (ii) entry into the commercial operation of new works; (iii) R $ 70 million from the incorporation of RAP energizing new ventures without a counterpart in 2019. The regulatory RAP grew 51% between the periods mentioned, generating an increase of approximately R$ 32 million.

Construction Revenue  

·        The variation is mainly due to the higher volume of investments compared to the previous year, especially Chesf (+ R$ 45 million) and CGT Eletrosul (+ R$ 45 million), partially offset by the reduction in Furnas (-R$ 47 million);

RBSE - Lines renewed by Law 12.783/13 

·        variation of the rate applied between the compared period (in 2019 NTN-B 4.10% and in 2020 WACC 6.64%) for measuring RBSE's financial assets;

·        Increase in the RBSE rap billed due to factors such as the annual tariff readjustment and an increase in the Variable Portion discount in 2019, in relation to the same period in 2020, with the increase in Furnas in the order of R$ 20 million.

·        Given the accounting effects on the treatment of RBSE, to verify the amount actually received by the Company, see Table 21 of this Report.

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

Contractual Revenue – Transmission  

·        At the subsidiary Furnas (+ R$ 14 million) due to the CT 062.2001 contract, RBNI, according to IFRS 15. There was an expansion of R$ 326 million in the asset base between quarters.

·        In the subsidiary Chesf (+ R$ 10 million) mainly due to the: (i) higher registration of the remuneration on the financial asset due to the entry of new projects during the year of 2019, with emphasis on authorizations from the contract 61. There are authoritative resolutions linked to this contract although it is O&M.

·        Partially offset by the result of subsidiary CGT Eletrosul (-R$ 22 million), mainly due to the positive adjustment of R$ 19.3 million in 1Q19, reflecting the remeasurement of the balance of contractual assets of the subsidiary TSBE (due to the CPC 47 - IFRS 15). Excluding the adjustment amount occurred only in 1Q19, the variation would be negative by R$ 2.7 million, mainly reflecting the amortization of contractual assets over the period.

TABLE 06: OTHER OPERATING REVENUE

Operating Income

1Q20

1Q19

%

Others Revenues

129

234

-45%

Non-recurring events

 

 

 

Procel retroactive chargeback

0

-92

100%

Other recurring income

129

142

-9%

Others Revenues 

·        Holding (-R$ 102 million), mainly due to the recognition of the retroactive amount of R$ 92 million in 1Q19, considered as non-recurring;

·        At subsidiary CGT Eletrosul (-R$ 5 million) due to the impoundment of billing for Service Provision and Telecommunications (SCM) contracts in 1Q20, as a result of the incorporation of Eletrosul by CGTEE, which resulted in the CGT Eletrosul Company, being needed the registration of the new company before the competent bodies, which prevented the normal billing course. The amount not billed in 1Q20 for contracts is R$ 4.8 million.

OPERATIONAL COSTS

TABLE 07: OPERATIONAL COSTS

Operational costs

1Q20

1Q19

%

Energy purchased for resale

-646

-435

49%

Charges on use of the electricity grid

-446

-210

113%

Fuel for production electric power

-468

-530

-12%

Construction

-190

-115

65%

Total Operating Costs

-1,751

-1,289

36%

Non-recurring events

 

 

 

(-) Generation Construction

8

4

132%

Total Recurring Operating Costs

-1,743

-1,286

36%

1Q19X1Q20 Variation Analysis

Energy purchased for resale 

·        In the subsidiary Furnas (+ R$ 219 million), mainly due to: (i) price adjustment of the current purchase contracts, representing an increase of approximately R$ 9 million; (ii) increase in the amount of current products, already provided for in the contract, increasing in 2020 the amount of R$ 18 million; (iii) new short-term contracts signed in the amount of R$ 102 million, to reduce the negative exposure in the MCP, since there is a possibility to take advantage of the negative goodwill of the existing market in bilateral short-term operations, as well as the tax benefit in view of the settlement at CCEE; (iv) increase in the amounts settled as a debt in the MCP in 2020, which resulted in approximately R$ 81 million of variation in this item, mainly due to the GSF (149% 1Q19 x 106% 1Q20).

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

·        At subsidiary Chesf (+ R$ 43 million), mainly due to: (i) increase in energy purchased by around 130 average MW (accumulated in March/2020), whose energy was settled at CCEE); and (ii) increase of 13 average MW due to the seasonalization of purchase contracts. The combination of these factors resulted in a total increase of the energy purchased in the accumulated until March / 2020 in about 143 average MW, with a reduction in the average purchase price from R$ 195 / MWh (until Mar/2019) to R$ 177 / MWh (until Mar/2020) with an average sale price of R$ 206/MWh in the same period; and (iii) 4.3% readjustment in purchase contracts (IPCA).

·        Partially offset by subsidiary Eletronorte (-R$ 47 million), mainly due to: (i) purchase of energy from Corpoelec, in 1Q19, in the amount of R$ 38 million, with no counterpart in 1Q20; (ii) accounting for Energy Purchase for Resale, in 1Q19, in the amount of R$ 11.9 million (referring to Dec / 18 which was later reclassified), which did not happen in 1Q20; offset by (iii) the purchase of energy from Sinop in 1Q20 in the amount of R$ 2.1 million.

Charges on use of the electricity grid

·        Variation in the elimination effect between quarters, in the consolidated, of operations between group companies of approximately R $ 162 million;

·        Readjustment of about 9% of TUST, determined by ANEEL Homologatory Resolution No. 2586/2019 (cycle 2019-2020).

Fuel for electricity production

·        At the subsidiary Amazonas GT (-R$ 162 million), mainly due to: (i) the price of natural gas practiced in the first two months of 2019 was above ANEEL's regulation, which was corrected in March / 2019, when the contract was definitively transferred to Amazonas GT (R$ 1.7/m³ to R$ 1.2/m3) resulting in savings of R$ 74 million in 1Q20; (ii) rental outlets that occurred in Jun/19, which represent a reducing impact of R$ 62 million in the fuel portion for 1Q20; (iii) reduction of natural gas consumption by UTE Aparecida, since the plant had its contract migrated to CCEAR and started to have inflexibility of 50%, reducing from 150 MW / h to 75 MW / h, and, as the PLD of system in 1Q20 was below the plant's CVU, it operated in view of inflexibility only; and (iv) the launch in 1Q19 of approximately R$ 64 million in the “Other Operating Expenses” account, as a recovery of gas expenses via CCC credits, and in 1Q20 these subsidies started to be accounted as reducers of the fuel account . If this value of CCC were also a fuel reducer in 1Q19, there would be a reduction in the reimbursement of CCC, in the order of R$ 38 million, between the quarters, justified by the non-revenue of expense recovery via system charges that stopped being received with the departure of the rental companies (Usina de Flores, São José, Iranduba) occurred in Jun/19.

·        Compensated by subsidiary Furnas (+ R$ 96 million), mainly due to: (i) variation in the dispatch of the Santa Cruz plant, which in 1Q19 generated a generation of 259,032MWh and in the same period of 2020 a generation of 624,703 MWh, representing an increase of approximately 366,000 MWh.

Construction

·        Chesf (+ R$ 40 million), due to higher investments in the transmission system between the compared dates;

·        In Furnas (+ R$ 30 million), mainly due to (i) an increase of R$ 50 million in investments in improvements to contract 062; offset by (ii) write-off, in the amount of R$ 26 million, in contract 006/2010 - Mascarenhas-Linhares (due to accounting reclassifications); and (iii) other investments in improvements in several contracts.

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

OPERATIONAL EXPENSES

TABLE 08: PERSONNEL, MATERIAL, SERVICES AND OTHER

Personnel, Material, Services and Others

1Q20

1Q19

%

Personnel

-1,127

-1,356

-17%

Material

-102

-30

235%

Services

-467

-437

7%

Others

-449

-223

101%

PMSO total

-2,144

-2,046

4.8%

Non-Recurring Items

 

 

 

(-) PDC

-4

170

-102%

(-) Outsourced Furnas

25

0

-

(-) Inepar / Camargo Correa Case / CIEN

133

0

-

(-) FGTS and INSS at Eletronorte - April launch

22,6

0

-

(-) Independent Research

0

13

-100%

PMSO Recurrent

-1,968

-1,863

5.6%

1Q19X1Q20 Variation Analysis

Personnel

·        Reduction in personnel costs due to the cost containment policy established by the Company, with PDC, dangerousness and overtime;

·        Non-recurring expenses with PDC of R$ 170 million in 1Q19 against R$ 4 million in 1Q20, as there is no plan planned for 2020.

·        In contrast to the cost reductions, there was: (a) increase of 3.55% granted to employees through ACT as of 10/2019, with retroactive effects to 05/2019, and an additional of about 1% per time service, with an impact of R$ 54 million; (ii) Stoppage for maintenance of Angra 1 in 1Q20, causing an increase in overtime, and in 1Q19 there was no stoppage for maintenance (+ R$ 6.9 million, plus R$ 4.8 million in charges); (iii) non-appropriation of investment expenses in the amount of R$ 31 million, with emphasis on Angra 3 (due to the stoppage of the Angra 3 project), Chesf and CGTEletrosul; (iv) provision of R$ 34 million related to vacations recorded in different quarters;

·        In subsidiary Furnas, readmission, by justice, as employees, of 101 outsourced employees terminated, with an average monthly cost of R$ 0.8 million/month (April basis).

·        Accounting for R$ 22 million in FGTS and INSS at Eletronorte not referring to 1Q20 (to be adjusted in the subsequent quarter).

Material

·        At CGT Eletrosul (+ R$ 29 million), due to: (i) there was no lime consumption in 2019 due to the overhaul stop at the Candiota Phase C plant, while in 1Q20, the plant was in operation. The accumulated value attributed to Cal Viva in 1Q20 was R$ 29.3 million;

·        At the subsidiary Amazonas GT (+ R$ 24 million), mainly due to: (i) large maintenance of UTE Mauá 3 of R$ 20 million, for maintenance of the turbines of the generating units 10 and 11 of Mauá 03;

·        At the subsidiary Eletronuclear (+ R$ 22 million), mainly due to: (i) the 1P25 maintenance stop at Angra 1, which did not occur in 1Q20, generating, in addition to the increase in the usual maintenance stop costs and exchange of nuclear fuel, an additional cost due to a short circuit in the connection of the excitratriz with the electric generator. The plant was stopped in the programmed period from 11/01/2020 until 02/14/2020, and beyond the programmed time, for another 26 days (from 02/15/2020 to 03/12/2020). Altogether, Angra 1 was stopped for 61 days during 1Q20. The cost of repairing the exciter was borne by the manufacturer.

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

 

Services

·                  At subsidiary Eletronuclear (+ R$ 41 million), mainly due to: (i) an increase of R$ 38.8 million related to stop 1P25 - Angra 1;

·                  At subsidiary Eletronorte (+ R$ 12.6 million) due to expenses with meal ticket and health plan administration fee having been recorded in 1Q19 in Personnel, which did not occur in 1Q20 due to standardization by SAP;

·                  Compensated by subsidiary Furnas (-R$ 24 million), mainly due to: (i) reduction in contracted labor (R$ 13 million); (b) Assistance Fundação Real Grandeza (reduction of R$ 4 million), by renegotiating the management fee with the foundation at R$ 16 million per year; and (c) Accommodation (R$ 1.5 million).

Others

·        At subsidiary Furnas (+ R$ 127 million), mainly due to: (i) an increase in the indemnities, losses and damages account in the amount of R$ 111 million, of which R$ 98 million refers to the settlement of the lawsuit Camargo Correa in March 20 and the remainder refers to the launch of 3 installments of the agreement between Furnas and Inepar, totaling approximately R$ 14 million; (ii) there was an increase of R$ 21 million in court costs, highlighting the attorney fees paid, partially offset by (iii) a R$ 5.17 million reduction in rentals due mainly to the return of Block C and consequent payment only for blocks A and B in Brasília; and (iv) Reduction of R$ 5.96 million in the Hydrological Risk Insurance - GSF account due to the end of the amortization of the GSF insurance in Serra da Mesa and Mascarenhas; and (iv) a reduction of R$ 2.22 million in Taxes and Fees, mainly due to the lower amount of IPTU paid in 2020, referring only to blocks A and B, due to the return of block C.

·        At the Holding (+ R$ 39 million) mainly due to an increase in legal expenses (+ R$ 29 million) and Fines (+ R$ 11 million);

·        At subsidiary Amazonas GT (+ R$ 72 million), due to (i) reclassification of CCC recovery credits to be classified in 1Q20 as a reduction in the fuel account, while in 1Q19 they are classified as a reduction in other accounts; and

·        At the subsidiary Eletronorte (+ R $ 13 million) with emphasis on (i) an increase in the insurance account, in the amount of R$ 9.9 million (an increase of R$ 7.5 million in insurance for facilities, equipment and inventories); (ii) increase of R$ 5.6 million with judicial guarantee insurance; and (iii) a reduction of R$ 3.2 million with hydrological risk ended in 2019 offset by (iv) an increase of R$ 4.7 million related to the recovery of expenses.

 

Depreciation and Amortization

Depreciation and Amortization

1Q20

1Q19

%

Depreciation and Amortization

-469

-428

10%

 

 

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

 

TablE 09: OPERATING PROVISIONS

Operating Provisions

1Q20

1Q19

%

Operational provisions / reversals

-447

-523

-15%

 

 

 

 

Non-recurring provisions / reversals

 

 

 

(-) Contingencies

18

-293

-106%

(-) PCLD/ Estimated loss of credit prospective privatized distributors (CPC 48)

-146

0

-

(-) Onerous Contracts

0

94

-100%

(-) Provision/reversal for investment losses

-116

35

-433%

(-) ANEEL provision - CCC

-7

-65

-89%

Non-recurring provisions / reversals

-251

-229

9%

 

 

 

 

Recurring provisions / reversals

 

 

 

Garanties

-7

12

-161%

PCLD (excluding PCLD prospective credit loss estimate CPC 48)

-116

-190

-39%

Others

-73

-115

-36%

Recurring provisions / reversals

-196

-294

-33%

Note: Numbers with positive signs mean reversals of provision.

The variation is mainly explained by: 

·        Reduction in provisions for contingencies, mainly due to the reversal of the provision related to the Compulsory Loan processes in the amount of R$ 144 million;

·        Allowance for loan losses of R$ 261 million in 1Q20, of which R$ 146 million related to the assessment of prospective risk expectations according of CPC 48 applied to loans from privatized distributors and considered non-recurring.

SHAREHOLDINGS

TABLE 10: SHAREHOLDINGS

Shareholdings

1Q20

1Q19

%

Shareholdings

164

160

3%

Variation

Shareholdings  

·        The main highlights were: (i) improvement in the SPE IE Madeira equivalence result, due to a positive variation of 41% in the contractual assets, due to the increase in revenue due to the parallelism solution between the Maideira bipoles and an increase in the reversal of provision and reduction of interest on financing with BNDES due to the reduction in TJLP (+ R$ 51 million); (iii) improvement in the positive result of SPE SINOP (+ R$ 30 million), due to the improvement in the results of energy sales, which were partially offset by (iv) negative variation in the result of SPE NESA, mainly caused by the increase expenses due to the increase in energy sales costs and the increase in operating costs (-R$ 49 million);

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

FINANCIAL RESULT

TABLE 11: FINANCIAL INCOME AND EXPENSES

Financial Result

1Q20

1Q19

%

Financial Income

4,439

1,942

129%

Interest, commission and fee income

227

246

-8%

Income from financial investments

558

125

345%

Additional moratorium on electricity

55

61

-10%

Active monetary updates

178

261

-32%

Exchange rate variations

3,303

886

273%

Fair value adjustment

0

239

-100%

Derivative gains

0

0

-

Other Financial Income

119

124

-4%

Financial expenses

-5,948

-2,278

161%

Debt charges

-1,039

-694

50%

Leasing charges

-93

-85

10%

Charges on shareholder resources

-46

-93

-50%

Passive monetary updates

-128

-137

-7%

Passive exchange variations

-3,905

-824

374%

Fair value adjustment

-337

-166

103%

Derivative losses

-119

-18

550%

Other financial expenses

-280

-262

7%

Financial Result

-1,509

-336

349%

Non-recurring adjustments

 

 

 

(-) Revenue from loans owed by privatized distributors

-113

-195

-42%

(-)2021 Title Rollover Award + FIDC Commission 2021

298

0

-

(-) Monetary adjustment (Selic) of the provision for compulsory loans

87

128

-32%

Recurring Financial Result

-1,237

-403

207%

 

FINANCIAL RESULT

 

In 1Q20, the financial result decreased, from a negative result of R$ 336 million in 1Q19 to a negative result of R$ 1,509 million in 1Q20. The main variations were in the accounts of:

·        Exchange variation: the net result of the active and passive exchange variation accounts went from a positive result of R$ 62 million in 1Q19 to a negative result of R$ 602 million in 1Q20, due to exchange rate fluctuation in the period, influenced by the effects of the Covid 19 pandemic;

·        Adjustment to fair value of RBSE revenue in the positive net amount of R$ 73 million in 1Q19, having presented a financial expense of R$ 337 million in 1Q20. The variation of R$ 411 million results from the remeasurement, in December 2019, of the RBSE asset and the change in the discount rate of the portion of RBSE's remuneration from NTNB to the regulatory WACC of 6.64%. The rate used in the months of January and February 2019 was similar to the NTN-B of 4.6% and in March 2019 it was the NTN-B of 4.10%.

·        Revenue from financial investments: the increase in revenue results mainly from the increase in the balance of financial investments in non-market investment funds. The increase is due, in particular, to the capital increase that occurred in Dec/19, in the amount of R$ 3.6 billion and to the funding that occurred in Feb/20.

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

·        Debt charges: the increase refers to the payment of the premium / goodwill on the face value of the 2021 bonus in the percentage of 6% of the total securities repurchased in the tender offer operation of the bonus, in the amount of US$ 57 million. Additionally, we highlight that in the 1Q19, we had not yet contracted the debentures, which were raised in May 19, and the debts with Petrobras and BR Distribuidora subrogated by Amazonas Energia at the time of the transfer of control of the distributor.

·        Fall in interest income of R$ 19 million (8%), influenced by the reduction in the rate of the indexers (Selic, CDI).

 

 

 

 

 

 

 

 

 

 

1 Considering that the privatization of the distributors was completed in April 2019, and these operations are no longer part of its core business, the company treated the relevant effects of financial income, expenses, PL reversals and prospective loan loss provisions as non-recurring. contracted with them before or as a result of the privatization process, although revenues and eventual provisions arising from contracted loans may continue to affect the company's accounting result until its complete exhaustion. However, they were treated as recurring outstanding allowance for loan losses of distributors.

 

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

I.2 E EBITDA CONSOLIDATED  

TABLE 12: EBITDA DETAIL

EBITDA

1Q20

1Q19

(%)

Net Profit (Loss) for the Year

307

1,347

-77%

Net Tax Losses from Discontinued Operation

0

-223

-100%

Result of the Exercise

307

1,570

-80%

+ Provision for Income Tax and Social Contribution

517

617

-16%

+ Financial Result

1,509

336

349%

+ Amortization and Depreciation

469

428

10%

 = EBITDA

2,803

2,951

-5%

ADJUSTMENTS NON-RECURRING EVENTS

 

 

 

Other Income and Expenses

-25

-183

-86%

Retroactive: Procel 

0

-92

-100%

PDC

-4

170

-102%

Termination Agreement Furnas Outsourced

25

0

-

Judicial agreements Inepar + Camargo Correa + CIEN

133

0

-

FGTS and INSS at Eletronorte - April launch

23

0

-

Investigation/SAP/ERP implementation consultancies

0

13

-100%

Contingencies

-18

293

-106%

PCLD prospective credit loss estimate (CPC 48)

146

0

-

Onerous Contracts

0

-94

-100%

Provision / (reversal) for investment losses

116

-35

-433%

ANEEL provision - CCC

7

65

-89%

= EBITDA RECURRENT

3,205

3,088

5%

 

Note: Since 2019, the Company started to consider, in its recurring EBITDA, the RBSE revenue from concessions extended under Law 12,783 / 2013, in order to maintain a protocol similar to the debenture covenants issued in 2019. The adjusted 1Q19 Ebitda considers this adjustment of RBSE revenue to compare recurring 1Q20 EBITDA, for comparative purposes, and also the mandatory effects of IFRS 9 and 15, as explained in 4 of our financial statements. In addition, considering the privatization of the distributors was completed in April 2019, and these operations are no longer part of its core business, the company treated the relevant effects of financial income, expenses, PL reversals and allowances for loan losses as non-recurring. prospective (CPC 48) of loans contracted with them before or as a result of the privatization process, although revenues and eventual provisions arising from contracted loans may continue to affect the company's accounting result until its complete exhaustion. However, they were treated as recurring outstanding allowance for loan losses of distributors. These recurring adjustments related to the distributors, adjusted the recurring EBITDA in 1Q20 by R $ 146 million.

 

 

 

1 The adjustments made to the recurring Ebitda refer to non-recurring events or events that are expected to be dealt with under the PDNG 2019-2023. However, there are risks and uncertainties related to the Company's business, such as, but not limited to, general economic, regulatory, political and commercial conditions in Brazil and abroad, changes in interest rates, inflation and the value of the Real, changes in volumes and pattern of use of electricity by the consumer, competitive conditions, payments related to our receivables, changes in the levels of rain and water in the reservoirs used to operate our hydroelectric dams, our financing and capital investment plans, existing and future government regulations , and other risks described in our annual report and other documents filed with the Securities and Exchange Commission and the Securities and Exchange Commission of the United States of America, which may change these estimates and expectations of Management. Thus, the future results of the Companies' operations and initiatives may differ from current expectations and the investor should not rely exclusively on the information contained herein.

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

TABLE 13: 1Q19 EBITDA CONCILIATION:

EBITDA

1Q19

Resubmitted

1Q19

Reported

Net Profit (Loss) for the Year

1,347

1,347

Net Loss of Taxes from Discontinued Operation

-223

-223

Result of the Exercise

1,570

1,570

+ Provision for Income Tax and Social Contribution

617

617

+ Financial Result

336

322

+ Amortization and Depreciation

428

428

 = EBITDA

2,951

2,937

ADJUSTMENTS NON-RECURRING EVENTS

 

 

 

 

 

Other Income and Expenses

-183

-183

Retroactive: Procel

-92

-92

PDC

170

170

Furnas Termination Agreement

0

0

Legal agreements Inepar + Camargo Correa + CIEN

0

0

FGTS and INSS at Eletronorte - April launch

0

0

Research / SAP / ERP implementation consultancies

13

13

Contingencie

293

293

PCLD Prospective estimate of credit loss (CPC 48)

0

0

Onerous Contracts

-94

-94

Provision / (reversal) for investment losses

-35

-85

Provision for Losses on Investments classified as held for sale

0

50

ANEEL provision - CCC

65

65

= RECURRING EBITDA

3,088

3,073

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

I.3      CONSOLIDATED RESULT BY SEGMENT OF CONTINUED OPERATIONS: 

TablE 14: FINANCIAL STATEMENT BY SEGMENT (EXPLANATORY NOTE 44 FROM THE DF) – R$ THOUSAND

03/31/2020

FinacialStatement

  by Segment

Administration

Generation

Transmission

Eliminations

Total

Net Operating Revenue

41

5,010

2,158

-253

6,956

Operating Costs and Expenses

-573

-3,419

-1,072

253

-4,811

Operating Income Before Financial Result

-533

1,591

1,086

0

2,144

Financial Result

-266

-673

-570

0

-1,509

Result of Equity Interests

164

0

0

0

164

Other income and expenses

25

0

0

0

25

Income tax and social contribution

0

-557

39

0

-517

Net income (loss) for the period

-610

361

555

0

307

 

03/31/2019

FinacialStatement

  by Segment

Administration

Generation

Transmission

Eliminations

Total

Net Operating Revenue

47

4,805

2,008

-408

6,452

Operating Costs and Expenses

-793

-2,896

-1,005

408

-4,286

Operating Income Before Financial Result

-746

1,909

1,002

-

2,166

Financial Result

236

-412

-146

-

-322

Result of Equity Interests

343

0

0

-

343

Income tax and social contribution

-159

-434

-25

-

-617

Net income (loss) for the period

-326

1,064

831

-

1,570

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

I.3.1. INDEBTEDNESS AND RECEIVABLES

TABLE 15: GROSS DEBT AND NET DEBT

 

03/31/2020

Gross Debt - R$ million

50,564

(-) Transfer RGR to CCEE1

1,084

Recurring Gross Debt

49,481

(-) (Cash and cash equivalents + marketable securities)

12,254

(-) Financing Receivable

14,893

(+) RGR to receive RGR transfer to CCEE

1,084

(-) Net balance of Itaipu Financial Assets

2,370

Net debt

21,047

1 See Notes 9.1 and 19 (third party debts, Eletrobras being a mere manager).

TABLE 16: FINANCING PORTFOLIO PAYABLE

 

Parent Company 

 

Consolidated

03.31.2020

 

03.31.2019

 

03.31.2020

 

03.31.2019

Balance in R$ million

%

 

Balance in R$ million

%

 

Balance in R$ million

%

 

Balance in R$ million

%

Foreign currency

 

 

 

 

 

 

 

 

 

 

 

USD

10,216

38%

 

7,572

27%

 

10,599

24%

 

7,572

18%

USD with Libor

516

2%

 

434

2%

 

990

2%

 

799

2%

EURO

299

1%

 

235

1%

 

299

1%

 

235

1%

IENE

0

0%

 

0

0%

 

0

0%

 

0

0%

Others

0

0%

 

0

0%

 

0

0%

 

0

0%

Subtotal

11,031

41%

 

8,241

29%

 

11,889

27%

 

8,606

21%

 

 

 

 

 

 

 

 

 

 

 

 

Domestic currency

 

 

 

 

 

 

 

 

 

 

 

CDI

3,578

13%

 

4,033

14%

 

8,040

18%

 

8,698

21%

IPCA

0

0%

 

0

0%

 

73

0%

 

73

0%

TJLP

0

0%

 

0

0%

 

6,135

14%

 

6,233

15%

SELIC

8,237

0%

 

11,687

0%

 

8,254

19%

 

8,595

20%

Others

690

0%

 

714

0%

 

1,888

4%

 

2,465

6%

Subtotal

12,506

46%

 

16,434

58%

 

24,390

56%

 

26,065

62%

 

 

 

 

 

 

 

 

 

 

 

 

Not indexed

3,543

13%

 

3,599

13%

 

7,467

17%

 

7,269

17%

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL

27,080

100%

 

28,274

100%

 

43,746

100%

 

41,940

100%

 

 

MARKETLETTER 1Q2020

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

TABLE 17: DEBT MATURITY SCHEDULE, EXCLUDING RGR DUE TO THIRD PARTIES (FOR WHICH ELETROBRAS IS A MERGE MANAGER) AND INCLUDING HOLDING AND SUBSIDIARIES 'DEBENTURES:

 

2020

2021

2022

2023

2024

2025

After 2025

Total (R$ million)

Amortization with Debentures and RGR

6,424

9,451

6,447

4,237

5,737

3,964

14,305

50,564

(-) RGR CCEE

260

120

33

19

7

3

642

1,084

Consolidated Annual Amortization (With debentures)

 

6,164

 

9,331

 

6,414

 

4,218

 

5,730

 

3,961

 

13,663

 

49,480

 

Ratings

TabLE 18: Ratings

Agency

National Classification / Perspective

Last Report

Moody’s BCA

“B1”: / Positive

09/18/2019

Moody’s Senior Unsecured Debt

“Ba3”: / Positive

09/18/2019

Fitch - Issuer Default Ratings (Foreign Currency)

“BB-”: / Negative

05/07/2020

Fitch - Issuer Default Ratings (Local Currency)

“BB-”: / Negative

05/07/2020

S&P LT Local Currency

“brAAA”

07/04/2020

S&P Issuer Credit Rating

“BB-"/ Estable

07/04/2020

 *CreditWatch

MARKETLETTER 1Q2020

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

FINANCING AND LOANS GRANTED (RECEIVABLE)

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

 

All financing and loans granted are supported by formal contracts signed with the borrowers. Most of these amounts are received in monthly installments, amortized over an average term of 10 years, with the average interest rate, weighted by the portfolio balance, of 6.40% per year.

 

The parent company has a loan with Itaipu with an exchange adjustment clause that represents 45% of the total consolidated portfolio (41% on December 31, 2019). The other financings and loans provide for updating based on indexes that represent the level of domestic prices in Brazil and reach 55% of the balance of the consolidated portfolio (59% on December 31, 2019).

 

The parent company has a loan with Amazonas Distribuidora de Energia in the amount of R$ 3.9 billion, which substantially represents non-capitalized receivables in the process of disposal of corporate control. These contracts were renegotiated with a grace period of up to 3 years for amortization of the principal, during this grace period only interest is received. Additionally, the renegotiation considered the term that ends in January 2021, for the presentation of real guarantees that must be previously assessed and approved by Eletrobras' Management.

 

In addition to the aforementioned financing, Eletrobras, until April 30, 2017, was responsible for the management of the Global Reversion Reserve (RGR), a sectorial fund, having been responsible for the granting of financing, with the use of these resources, for the implementation of several sectoral programs. As of May 2017, with the enactment of Law 13,360 / 2016, CCEE took over this activity. However, there are still financing carried out before this date, due by third parties, managed by Eletrobras.

 

According to Decree 9.022/2017, which regulates the aforementioned law, Eletrobras is not the guarantor of these operations taken by third parties, however, it is responsible for the contractual management of financing contracts with RGR resources signed until November 17, 2016, which must be transferred to the RGR, within a period of up to five days, counted from the date of the effective payment by the debtor agent.

 

 

RGR REPASS

 

 

With the process of divesting the distributors completed, the transfer of the management of RGR resources to CCEE in accordance with Law 13.360 / 2016 and in line with Decree No. 9.022/2017, as of June 2019, the Company revised the form to present the amounts raised and transferred to third parties, with funds from RGR, in order to more adequately present the resources under Eletrobras's responsibility for those loans and financing that do not constitute Eletrobras debt and should be paid off by third parties with RGR, being Eletrobras responsible only for the contractual management of these loans. Accordingly, the amounts as of March 31, 2020 referring to receivables from loans and financing granted with funds from RGR to third parties were segregated from other receivables from Eletrobras and have equivalent liabilities (see note 18).

 

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

TABLE 19: RECEIVABLE

R$ Thousand

 

CONSOLIDATED

 

03/31/2020

 

CURRENT

 

PRINCIPAL

 

Tx. Average

Valor

 

CURRENT

NON

CURRENT

ITAIPU

7.02

 

  3,389,782

  3,333,902

ELETROPAULO

6.96

 

  - 

  1,330,665

CEAL

6.88

 

144,274

  1,378,002

AMAZONAS D

6.76

123,296

 

156,086

  3,695,144

CEPISA

4.78

 

293,154

390,427

BOA VISTA

4.98

  13

 

18,975

136,964

CELPA

5.96

  161

 

  - 

5,245

EQUATORIAL MARANHÃ D

0.23

 

25,245

61,262

REPASSE RGR

5

186,967

 

162,689

734,226

OUTRAS

-

105,269

 

20,811

  600

(-) PCLD

-

-  243,676

 

-  27,948

-  528,653

Total

 

172,030

 

  4,183,068

  10,537,784

 

TABLE 20: CCC CREDITS ASSIGNED BY PRIVATIZED DISTRIBUTORS

In the privatization process of the distributors, CCC credits were assigned, which are still being analyzed and inspected by Aneel. These credits are activated in the Company's Financial Statements, of 03/31/2020, in two accounts, namely Right of Reimbursement and Financing receivable, according to Notes 8 and 11 of 1Q20, and detailed below:

Note Explanatory 11 - Right to Reimbursement

Registered Net Assets

 

 R$ thousand

Amazonas

Ceron

Eletroacre

Boa Vista

Total

NT Aneel + Claims under analysis Aneel + "inefficiency

1,964,544

2,727,341

254,951

170,204

5,117,040

Current Rights

-

221,750

58,222

26,144

306,116

Total (a)

1,964,544

2,949,091

313,173

196,348

5,423,156

 

* The balance of R $ 2.0 billion from Amazonas consists of a return obligation to CCC in the order of R $ 450 million related to the final result of the inspection of the first and second period carried out by Aneel, and a credit receivable from the Treasury National economic and energy inefficiency of R $ 2.4 billion. The credit for economic and energy inefficiency is updated by Selic.

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

Explanatory Note 8 - Loan and Financing

R$ thousand

R$ thousand 

Amazonas

Ceron

Eletroacre

Boa Vista

Total

Conversion into Loans (b)

442,366

-

-

-

442,366

 

Note: The R$ 442 million credit in the table above was also a CCC credit, however current, and as it was paid by CCC to Amazonas Distribuidora, it was converted into debt of the distributor with Eletrobras.

Total Credits Granted (Note 8 + Note 11)

 

R$ thousand

R$ thousand

Amazonas

Ceron

Eletroacre

Boa Vista

Total

Net Credit (1)

2,406,909

2,949,092

313,173

196,347

5,865,521

 

(1) Credits restated up to 03/31/20, by IPCA, based on the credit generating event, with the exception of the portion of economic-energy inefficiency (R$ 2.46 billion) assigned by Amazonas Energia and Boa Vista Energia, which are updated by SELIC.

 

The National Electric Energy Agency - Aneel recognized, by decision of its collegiate board, on March 10, 2020, (i) the right to receive credits from the Ceron Fuel Consumption Account, in the amount of R $ 1,904,055,165, 07 (at July 2019 prices), referring to the inspection of the benefits due in the period from July 30, 2009 to June 30, 2016, considered as the first period of the inspection process (“First Inspection Period”), credits assigned to Eletrobras on the occasion of the privatization of said distributor; and (ii) the right to receive credits from the Fuel Consumption Account - CCC to Companhia de Eletricidade do Acre (“Eletroacre”), in the amount of R $ 191,610,318.04 (at July 2019 prices), referring to the inspection of the benefits due in the period from July 30, 2009 to June 30, 2016, credits also assigned to Eletrobras on the occasion of the privatization of said distributor.

 

These amounts recognized by Aneel are in accordance with the amounts recorded in the Quarterly Information of March 31, 2020, for the First Inspection Period, with the existing difference attributed to the inflation adjustment by the IPCA, due to the difference in the base date considered. The other amounts assigned by Ceron and Eletroacre to Eletrobras and recorded in its Balance Sheet refer to claims that will still be submitted to Aneel's Board of Directors in the second inspection period that covers the period from July 1, 2016 to April 30, 2017 (“ Second Inspection Period ”). After the end of the second inspection period, the values ​​of Ceron and Electroacre, when approved, should be included in the budget of the sectorial fund CDE for payment.

 

Aneel's Board of Directors also approved, on March 10, 2020, the obligation to return R $ 2,061,360,021.40 (at March 2019 prices), referring to the CCC's monthly inspection and reprocessing process paid to Amazonas Distribuidora de Energia SA (“Amazonas Energia”), from July 2016 to April 2017, referring to the Second Inspection Period. With this decision, Amazonas Energia had completed its entire inspection process, since Aneel's Board of Directors had already decided, on March 19, 2019, the result of the First Inspection Period for CCC reimbursements to Amazonas Energia, with the company having the right to receive a credit of approximately R $ 1,591,670,950.13 (at September 2018 prices), to be offset against credits to be returned. The net balance of Law credits assigned by Amazonas Energia Distribuidora, of R $ 1.9 billion, is equivalent to the disallowances of CCC arising from the criteria of economic and energy efficiency, a right recognized by Law 13,299 / 2016, in the historical amount of R $ 1,357,794,977.30 to be paid by the National Treasury. Eletrobras updated these values ​​by the Selic until 03/31/2020.

Aneel has not yet completed the inspection processes for CCC's refunds for the First and Second Period of Boa Vista Energia, also assigned to Eletrobras and recorded in the Financial Statements.

Considering the manifestations of Aneel mentioned above, in 1Q20, the provisions made up to March 31, 2020 were written off definitively by the company in its Balance Sheet.

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

TABLE 21: RECEIVABLE RBSE TRANSMISSION

The item of indemnifiable concessions and RBSE, in the amount of R$ 35,349,028 on March 31, 2020 refers to the assets of the facilities of the Basic Network existing on December 31, 2020 May 2000, not depreciated and that, therefore, are due to the concessionaires that renewed their concessions in the light of Law nº 12.783/2013.

The movement of assets referring to RBSE is shown below:

R$ million

 

Furnas

Chesf

Eletronorte

Eletrosul

Total

Balance on December 31, 2018

18,325

10,289

5,650

2,014

36,278

Updates - Financial Income

514

 167

195

52

927

Measurement adjustment

33

-  

26

36

95

(Receivement)

-767

-408

-245

-87

-1,507

Balance on March 31, 2019

18,104

10,048

5,626

2,014

35,792

 

 

Furnas

Chesf

Eletronorte

Eletrosul *

CGT Eletrosul*

Total

Balance on December 31, 2019

17,509

9,736

5,163

1,880

-  

34,288

Incorporation

-  

-  

-  

-1,880

1,880

 -  

Updates - Financial Income

548

214

199

-  

55

1,016

Measurement adjustment

-224

-16

-84

-  

-13

-337

(Receivement)

-840

-503

-260

-  

-91

-1,694

Balance on March 31, 2020

16,993

9,430

5,017

-  

1,832

33,273

 

 

 

 

 

 

 

Current assets

3,642

1,839

1,052

-  

208

6,741

Non-current assets

13,351

7,591

3,965

-  

1,624

26,532

 

* On January 2, 2020, the subsidiaries Eletrosul and CGTEE became part of CGT Eletrosul, according to the merger process of Eletrosul into CGTEE.

In addition to the disclosure about the amounts to be paid under the RBSE, present in the Financial Statements for the year ended December 31, 2019, the Company continues to monitor the progress of the processes and, for the purposes of this quarterly information, remains with the understanding of that as of the expiry of these injunctions, initiated in November 2019, these amounts should be recalculated in order to include the portion provided for in article 1, third paragraph, of MME Ordinance 120/2016. Considering this scenario, the Company remains with the estimate that the portion referring to Ke will be included in the next tariff cycle with revenue for the remaining period of 05 years.

The estimated cash flow considering the Company's assumptions, specified below, is shown below:

R$ million

 

 

2020

2021

2022

2023

2024

2025

TOTAL

Financial portion

8.0

3,372.6

3,372.6

3,372.6

3,372.6

1,686.3

17,742.8

“Ke” portion

-  

1,259.7

2,519.5

2,519.5

2,519.5

1,259.7

10,077.9

Total Financial Portion

2,565.9

4,632.4

5,892.1

5,892.1

5,892.1

2,946.1

27,820.6

 

 

 

 

 

 

 

 

Economic Portion

2,272.9

2,981.8

2,981.8

1,907.4

833.1

416.5

11,393.5

 

 

 

 

 

 

 

 

Total

4,838.8

7,614.2

8,873.9

7,799.5

6,725.2

3,362.6

39,214.2

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

Financial portion refers to the portion of remuneration (Ke) and unpaid depreciation since the extension of the concessions, on January 1, 2013 until June 30, 2017. Economic portion refers to the amounts of assets with residual values in the extension of these concessions.

Assumptions:

1)       Update of the “Ke” remuneration installment as of July 2017 by the WACC regulatory of the transmission and IPCA until the measurement date;

2)       Discount rate compatible with regulatory remuneration; and

3)       "Ke" term considering the start of revenue / amortization from the 21/22 tariff cycle - start of revenue in June 2021 for the term of Ordinance 120, until June 2025.The table above is net of PIS / Cofins, but is not net of income tax.

Note: Net flow of PIS/Cofins.

 

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

I.4. Investiment

TABLE 22: INVESTMENTS BY SEGMENT

 (R$ million)

Investiment  (Corporate + Partnerships)

Budged

2019

% 2019

Realized

2019

Generation

653

18%

118

Corporate Deployment

281

13%

36

Corporate Expansion

59

16%

9

Maintenance

161

28%

45

Expansion SPEs

153

18%

28

Transmission

409

42%

174

Corporate Deployment

-  

-

0,03

Expansion and Reinforcements and Improvements

284

31%

89

Maintenance

69

86%

60

Expansion SPEs

55

46%

25

Others*

93

40%

37

Total

1,155

28%

329

(1) Others: Research, Infrastructure, Environmental Quality

(2) For more details on investments, by subsidiary or project, see annex 3 to this Investor Information.

 

Generation - UTN Angra 3 corporate investment worth R$ 31.5 million and UTN Angra 1 and 2 worth R$ 20.3 million. There were also investments of R$ 9.4 million in UTE Santa Cruz. A further R$ 22 million was invested in SPE Brasil Ventos. Partnership projects represented 24% of investments made through Generation SPEs in 1Q20.

Transmission - Investments in Expansion and Reinforcements and Improvements corresponded to 51% of Corporate Investment. Highlight in corporate investments for Chesf, R $ 79.7 million; Furnas, R $ 41.7 million; CGT Eletrosul, R $ 23.3 million and Eletronorte, R $ 3.7 million. Partnership projects accounted for 14% of investments made through Transmission SPEs with emphasis on SPE Mata Sta. Geneva, R $ 25.2 million.

Non-realization of R$ 826 million in investments, R$ 227 million of which for reasons unrelated to Eletrobras, mainly due to the impact of the delay in supplying material and execution of works due to Covid 19 isolation measures. R $ 89 million Mata Highlight Sta Genebra, ESBR Jirau and SINOP and R $ 138 million with emphasis on UTN Angra I and II, Maintenance - Generation Chesf, Maintenance - Eletronorte Transmission, Eletronorte Reinforcements and Improvements and Vale São Bartolomeu.

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

I.5. COMMERCIALIZATION

I.5.1. ENERGY SOLD IN 1Q20 – GENERATORS - TWH

 

In terms of the evolution of the energy market, Eletrobras Companies, in 1Q20, sold 37 TWh of energy, against 35 TWh traded in the same period of the previous year, which represents an increase of 6%. These volumes include the energy sold from the plants under the quota regime, renewed by Law 12,783/2013, as well as by the plants under the exploration regime (ACL and ACR).

 

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

I.5.2. ENERGETIC BALANCE 

Table 23: Energetic Balance

 

Energetic Balance (MWmed)

2020

2021

2022

2023

2024

Ballast

  9,477

  9,293

  9,293

  9,205

  7,428

 

Own resources

  8,314

  8,314

  8,314

  8,314

  6.647

 

Energy Purchase

  1,162

979

979

891

782

Sales

  6,731

  5,455

  4,984

  4,851

  4,437

 

ACL - Bilateral Contracts + MCP realized

  4,490

  3,349

  2,878

  2,751

  2.337

ACR - Except quotas

  2,241

  2,107

  2,107

  2,101

  2.101

  Average Selling Price R$/MWh

  216,52

  217,69

  219,87

  220,77

  225,51

  Average Purchase Price R$/MWh

  216,42

  224,30

  224,30

  229,34

  230,44

Balance (Ballast - Sales)

  2,746

  3,838

  4,309

  4,354

  2,991

Uncontracted Energy *

29%

41%

46%

47%

40%

 * The uncontracted portion includes energy reserved for the company's hedge, strategically defined according to the GSF estimate for the period.

Not included in installments of Physical Guarantee Quotas and Nuclear Energy Quotas.

 Physical Guarantee Quotas for Hydroelectric Plants

  7,451

  7,451

  7,451

  7,451

  9,118

 Nuclear Energy Quotas

  1,573

  1,573

  1,573

  1,573

  1,573

 

Contracts concluded until 03/31/2020. It considers the end of the contracts of UHEs Mascarenhas de Moraes, in Jan/2024, and UHE Tucuruí, in Aug/2024, and from the respective dates, both started to be considered in the Quota regime.

 

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

II | Parent Company Result Analysis

 

In 1Q20, Eletrobras Holding posted a net income of R$ 300 million, a reduction of 79% compared to net income of R$ 1,398 million in 1Q19.

This 1Q20 result was decisively influenced by: (i) Income from Equity Holdings, of R$ 1,002 million, mainly influenced by the result of subsidiaries, (iii) positive effect on Provisions for legal contingencies, in the amount of R$ 155 million, mainly due to the reversals related to the lawsuits of compulsory loan in the amount of R $ 144 million; partially offset by (iii) negative financial result in the amount of (R$ 377 million), mainly influenced by the exchange rate fluctuation in the period, by (iv) Provision for Settlement of Doubtful Loans (PCLD) in the amount of (R$ 195 million) by and (iv) Provision for investment losses (R$ 116 million). The graph below shows a comparison of Eletrobras holding's results between 1Q19 and 1Q20.

EVOLUTION OF RESULT - R$ MILLION

Note: The analysis of the results of each subsidiary can be found in the attachment.

 

 

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

II.1  SHAREHOLDERS 'EQUITY

In 1Q20, the result from Equity Holdings positively impacted the Company's result by R$ 1,002 million, mainly due to the equity in results of investments in subsidiaries, in 1Q19 the result was R$ 1,989 million.

II.2  PARENT COMPANY OPERATING PROVISIONS

 

In 1Q20, Operating Provisions had a negative impact on the Parent Company's result by R$ 76 million, compared to the provision of (R$ 351 million) in 1Q19. This variation is mainly explained by the positive effect on Provisions for legal contingencies, in the amount of R$ 155 million, due to the reversals related to the compulsory loan lawsuits in the amount of R$ 144 million.

TABLE 24: OPERATING PROVISIONS (R$ MILLION)

Operating Provisions

Parent Company

 

 

1Q20

1Q19 ((Reclassified))

Guarantees

 

 

-7

12

Contingencies

 

 

155

-104

PCLD - Consumers and Resellers

 

 

0

0

PCLD - Financing and Loans

 

 

-195

-178

Overdraft liabilities in subsidiaries

 

 

119

-16

Onerous Contracts

 

 

0

0

Investment Losses

 

 

-116

-0

Provision for losses on investments classified as held for sale

 

 

0

0

Impairment

 

 

0

0

ANEEL Provision - CCC

 

 

-7

-65

TFRH

 

 

0

0

Others

 

 

-25

0

 

 

 

-76

-351

Table 25: CHANGE PROVISION FOR LIABILITIES UNDERCOVERED

MUTATION PROVISION FOR DISCOVERED LIABILITIES - PARENT COMPANY

Balance on 12/31/2019

Other Comprehensive Results

Equity

Balance on 03/31/2020

Amazonas GT

119

-6

-113

TOTAL PROVISION FOR DISCOVERED LIABILITIES

119

-6

-113

* The shares of subsidiary Amazonas GT were 100% transferred to subsidiary Eletronorte.

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

II.3  FINANCIAL RESULT OF PARENT COMPANY

In 1Q20, the Financial Result had a negative impact on the Parent Company's result by R$ 377 million in relation to the R$ 234 million in 1Q19, mainly influenced by the recording of R$ 2,771 million in financial expenses related to the write-off related to ANEEL - CCC process, due to the exchange rate fluctuation in the period. The Debt Charges showed a negative variation of R$ 240 million from 1Q19 to 1Q20, Net exchange variations changed from a positive result of R$ 28 million in 1Q19 to a negative result of R$ 165 million in 1Q20, offset by Revenue from financial investments in the amount of R$ 58 million in 1Q19 to R$ 478 million in 1Q20.

TABLE 26: FINANCIAL RESULT (R$ MILLION)

FINANCIAL RESULT

 

 

1Q20

1Q19

Financial income

 

 

   

Interest, commission and fee income

 

 

411

589

Income from financial investments

 

 

478

58

Additional moratorium on electricity

 

 

1

0

Monetary updates

 

 

46

173

Exchange variations

 

 

-165

28

Other financial income

 

 

95

48

 

 

 

 

 

Financial expenses

 

 

   

Debt charges

 

 

-729

-489

Leasing charges

 

 

-1

-2

Charges on shareholder resources

 

 

-23

-59

Other financial expenses

 

 

-489

-111

 

 

 

-377

234

 

 

MARKETLETTER 1Q2020

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

III. General Information

Position on 03/31/2020. Currently, our staff has 133 SPEs, as TDG was incorporated on 12/05/2020.The number of SPEs is taking into account the direct and indirect participation in SPE, and disregarding the SPEs that participate in more than one Eletrobras Company, differently from the quantities considered in the tables of each company. In this total, 02 SPEs abroad are included. Of the 134 national and international SPEs, 39 are in the process of divestment by the competitive procedure of sale 01/2019.

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

SHARE CAPITAL

STRUCTURAL OF CAPITAL STOCK

Eletrobras' capital stock, on March 31, 2020, totaled R $ 39,057 billion, represented by 1,568,930,910 shares, being 1,288,842,596 common shares and 280,088,314 preferred shares.

TABLE 27: CAPITAL STRUCTURE

Shareholders

Common

Pref. Classe “A”

Pref. Classe “B”

Total

Quantity

%

Quantity

%

Quantity

%

Quantity

%

Government

667,888,884

52%

0

0%

494

0%

667,889,378

43%

BNDESpar

141,757,951

11%

0

0%

18,691,102

7%

160,449,053

10%

BNDES

74,545,264

6%

0

0%

18,262,671

7%

92,807,935

6%

FND

45,621,589

4%

0

0%

0

0%

45,621,589

3%

FGHAB

1,000,000

0%

0

0%

0

0%

1,000,000

0%

Free Float

358,028,908

28%

146,920

100%

242,987,127

87%

601,162,955

38%

Total

1,288,842,596

100%

146,920

100%

279,941,394

100%

1,568,930,910

100%

 

 

MARKETLETTER 1Q2020

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

ASSET BEHAVIOR ANALYSIS

SHARES

TABLE 28: B3, ELET3 e ELET6

Price and Volume

(R$)

ELET3 (ON Shares)

(R$)

ELET6 (PN Shares)

(pts.)
IBOV (Índex)

(pts.)
IEE ((Índex)

Closing Price on 03/31/2019

23.86

26.03

73020

57651

Maximum in the quarter

41.78

42.66

119528

81871

Average in the quarter

33.63

35.28

103770

73909

Minimum in the quarter

15.24

18.48

63570

51682

 

 

 

 

 

Variation in 1Q20

-36.9%

-31.9%

-36.9%

-24.8%

Change in the last 12 months

-33.3%

-28.4%

-23.5%

0.4%

Average Daily Traded Volume 1Q20 (R$ million)

6.0

3.6

-

-

 

 

 

 

 

Net Income per Share in the Quarter (R$)

0.09

0.09

-

-

Book Value per Share (R$)

45.29

45.29

-

-

Price / Profit (P/E) (1)

267.34

291.65

-

-

Price / Shareholders' Equity(2)

0.53

0.57

-

-

 

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

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

 

EVOLUTION OF SHARES TRADED AT B3

  

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

ADR PROGRAMS

TABLE 29: NYSE, EBRN AND EBRB

Price and Volume

(US$) NYSE
EBRN

(US$) NYSE EBRB

Closing Price on 03/31/2019

 4.62

 5.10

Maximum in the quarter

 9.91

 11.56

Average in the quarter

 7.63

 9.09

Minimum in the quarter

 3.12

 3.47

 

 

 

Variation in 1Q20

-50.5%

-46.3%

Change in the last 12 months

-50.4%

-47.0%

Average Daily Trading Volume 1Q20 (US$ million)

 723.8

 42.0

 

EVOLUTION OF SHARES TRADED IN ADR

 

  

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

Latibex – MADRID MARKET

TABLE 30: LATIBEX, XELTO E XELTB

 

Price and Volume

 

(€) LATIBEX
XELTO

 

(€) LATIBEX XELTB

Closing Price on 12/31/2019

       4.36

       4.74

Maximum in the quarter

       8.90

       9.10

Average in the quarter

       7.06

       7.44

Minimum in the quarter

       2.84

       3.10

 

 

 

Variation in 2019

-47.2%

-43.6%

Change in the last 12 months

-48.1%

-45.8%

Average Daily Traded Volume 1Q20 (thousands of Euros)

         0.4

         0.1

 

EVOLUTION OF FOREIGN CURRENCIES

 

 

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

Nº OF EMPLOYEES

parent company

TABLE 31: EMPLOYEES FOR WORKING TIME

Working time in the company (years)

 

 

4Q19

1Q20

Up until 5

 

 

25

29

6 to 10

 

 

291

238

11 to15

 

 

191

210

16 to 20

 

 

128

138

21 to 25

 

 

13

13

more than 25

 

 

91

62

Total

 

 

739

690

TABLE 32: EMPLOYEES BY FEDERATION STATE

Federation State

 

 

4Q19

1Q20

Rio de Janeiro

 

 

719

674

São Paulo

 

 

1

1

Brasília

 

 

19

15

Total

 

 

739

690

CONTRACTED / OUTSOURCED LABOR

TABLE 33: CONTRACTED / OUTSOURCED LABOR

1Q20

0

ROTATION INDEX (Holding)

TABLE 34: ROTATING INDEX HOLDING WITH PDC

1Q20

0.22%

 

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Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

BALANCE SHEET (r$ thousand)

Asset

Parent Company

Consolidated

03.31.20

12.31.19

       03.31.20

12.31.19

CURRENT

       

   Cash and cash equivalents

2,057

18,202

511,523

335,307

   Restricted cash

3,319,932

3,227,536

3,319,932

3,227,536

   Marketable securities

7,125,676

6,787,137

11,742,493

10,426,370

   Customers

279,403

468,429

5,137,776

5,281,333

   Financial assets - Concessions and Itaipu

0

0

6,281,844

5,927,964

   Loans and financing

5,817,384

5,120,734

4,355,098

3,473,393

   Asset contractual transmission

0

0

1,113,171

1,116,009

   Equity Pay

3,575,812

3,592,503

246,926

299,899

   Taxes to recover

157,120

807,150

1,004,815

1,474,662

   Income tax and social contribution

1,057,173

309,033

2,298,965

2,382,899

   Reimbursement rights

0

0

60,925

48,458

   Warehouse

329

272

440,440

471,824

   Nuclear fuel stock

0

0

553,097

538,827

   Derivative financial instruments

0

138

83,675

140,543

  Hydrological risk

0

0

8,361

13,590

   Other

1,737,150

1,444,837

2,176,930

2,016,330

 

23,072,036

21,775,971

39,335,971

37,174,944

 

 

 

 

 

   Asset held for sale

1,434,279

1,546,250

3,397,757

3,543,519

 

24,506,315

23,322,221

42,733,728

40,718,463

 

 

 

 

 

NON CURRENT

 

 

 

 

LONG-TERM

 

 

 

 

   Reimbursement rights

5,423,156

5,382,834

5,455,869

5,415,547

   Loans and financing

17,362,789

18,282,460

10,537,784

10,803,423

   Customers

0

0

250,623

285,351

   Marketable securities

378,428

374,601

378,770

407,071

   Nuclear fuel stock

0

0

994,547

840,550

   Taxes to recover

0

0

417,538

420,370

   Current Income Tax and Social Contribution

0

0

542,466

463,451

   Deferred income and social contribution     taxes

4,222,098

4,168,575

6,921,400

6,891,416

   Escrow deposits

0

0

13,793,619

13,744,276

   Fuel Consumption Account - CCC

2,106,819

1,905,607

30,702,822

31,633,512

   Financial assets - Concessions and Itaipu

0

0

87,941

151,315

   Derivative financial instruments

1,005,148

774,468

187,256

181,257

   Advances for future capital increase

0

0

171,885

179,879

  Hydrological risk

1,638,760

1,222,393

1,638,760

1,222,393

   Other

1,292,923

1,350,913

1,394,629

1,024,607

NON CURRENT

33,430,121

33,461,851

73,475,909

73,664,418

INVESTMENTS

73,102,763

75,637,776

28,929,664

29,112,919

Fixed assets net

252,675

255,947

32,912,292

33,315,874

INTANGIBLE

19,516

19,518

635,907

655,041

TOTAL NON-CURRENT ASSETS

106,805,075

109,375,092

135,953,772

136,748,252

TOTAL ASSETS

131,311,390

132,697,313

178,687,500

177,466,715

 

MARKETLETTER 1Q2020

39

Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

 

(r$ thousand)

Liabilities and Equity

Parent Company

Consolidated

03.31.20

12.31.19

03.31.20

12.31.19

CURRENT

 

 

 

 

    Loans and financing

5,521,577

5,759,164

7,866,151

7,636,633

    Debentures

98,762

33,159

154,603

78,527

    Compulsory loan

14,778

15,156

14,778

15,156

    Suppliers

731,375

494,133

3,014,621

3,095,469

    Advances from customers

622,342

614,171

685,892

683,602

    Taxes payable

99,353

201,516

1,466,441

1,575,658

    Income tax and social contribution

0

0

1,584,082

2,532,732

    Onerous contracts

0

0

3,913

3,913

    Remuneration to shareholders

2,580,378

2,559,429

2,592,855

2,575,216

    Financial liabilities - Concessions and Itaipu

471,181

703,114

0

0

    Estimated liabilities

156,152

147,106

1,403,844

1,331,257

    Reimbursement Obligations

1,827,911

1,796,753

1,827,911

1,796,753

    Post-employment benefits

12,005

14,875

175,943

161,773

    Provisions for contingencies

833,795

1,014,585

847,043

1,031,488

    Regulatory charges

0

0

697,648

627,611

    Lease

7,655

7,574

224,774

219,484

    Derivative financial instruments

423

683

423

683

    Liabilities associated with assets held for sale

31,429

89,553

394,269

579,394

 

13,009,116

13,450,971

22,955,191

23,945,349

 

 

 

 

 

    Liabilities associated with assets held for sale

0

0

1,666,172

1,692,708

 

13,009,116

13,450,971

24,621,363

25,638,057

 

 

 

 

 

NON-CURRENT

 

 

 

 

    Loans and financing

21,558,336

22,515,109

35,880,342

34,303,730

    Suppliers

0

0

18,143

18,143

    Debentures

5,019,280

5,011,069

6,663,312

5,880,751

    Advances from customers

0

0

345,009

369,262

    Compulsory loan

472,511

470,600

472,511

470,600

    Obligation for asset retirement

0

0

3,162,945

3,129,379

    Provisions for contingencies

16,579,316

16,924,171

24,002,644

24,214,938

    Post-employment benefits

822,512

822,512

4,376,687

4,353,406

    Provision for unsecured liabilities

0

119,223

2,731

0

    Onerous contracts

0

0

361,934

361,934

    Lease

54,002

55,928

936,765

987,705

    Grants payable - Use of public goods

0

0

68,786

68,555

    Advances for future capital increase

72,802

50,246

72,802

50,246

    Derivative financial instruments

0

0

5,292

5,000

    Regulatory charges

0

0

739,566

730,303

    Taxes payable

0

0

234,784

239,959

    Income tax and social contribution

509,193

628,904

3,671,571

3,978,754

    Others

2,164,640

1,741,779

1,525,679

1,271,847

TOTAL NON-CURRENT LIABILITIES

47,252,592

48,339,541

82,541,503

80,434,512

 

 

 

 

 

EQUITY

 

 

 

 

    Share capital

39,057,271

31,305,331

39,057,271

31,305,331

    Capital reserves

13,867,170

13,867,170

13,867,170

13,867,170

    Profit reserves

23,887,181

23,887,181

23,887,181

23,887,181

    Advances for future capital increase

0

7,751,940

0

7,751,940

    Other comprehensive income accumulated

-6,076,317

-5,904,821

-6,076,317

-5,904,821

    Non controlling shareholdins

0

0

474,952

487,345

   

 

314,377

0

314,377

0

TOTAL SHAREHOLDERS' EQUITY

71,049,682

70,906,801

71,524,634

71,394,146

TOTAL LIABILITIES AND  SHAREHOLDERS' EQUITY

131,311,390

132,697,313

178,687,500

177,466,715


 

MARKETLETTER 1Q2020

40

Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

INCOME STATEMENT (r$ thousand)

 

Parent Company

Consolidated

 

03.31.20

12.31.19

03.31.20

12.31.19

NET OPERATING REVENUE

-3,568

141,572

6,955,636

6,465,657

Operating costs

 

 

 

 

    Energy purchased for resale

-3,659

-2,883

-646,220

-434,532

    Charges upon use of electric network

0

0

-446,459

-209,673

    Construction

0

0

-190,318

-115,044

    Fuel for electricity production

0

0

-467,998

-530,003

NET OPERATING REVENUE

-7,227

138,689

5,204,641

5,176,405

Operating expenses

 

 

 

 

    Personnel, Supllies and Services

-142,142

-165,792

-1,695,481

-1,823,196

    Depreciation

-3,273

-3,394

-447,008

-407,265

    Amortization

0

0

-22,257

-20,692

    Donations and contributions

-24,337

-32,748

-50,289

-52,292

    Operating Provisions /Reversals net

-75,841

-350,726

-446,852

-522,951

    Investigation Findings

0

0

0

0

    Others

-72,666

-30,265

-398,600

-170,583

 

-318,259

-582,925

-3,060,487

-2,996,979

OPERATING INCOME BEFORE FINANCIAL RESULT

-325,486

-444,236

2,144,154

2,179,426

Financial result

 

 

 

 

   Financial income

 

 

 

 

    Income from interest, commissions and fees

410,723

588,637

226,554

245,863

    Income from financial investments

478,215

57,783

557,821

125,312

    Moratorium on electricity

617

126

54,971

61,108

    Restatement Assets

150,028

314,651

177,909

260,825

    Current foreign currency exchange rate variations

3,472,139

757,492

3,302,788

886,205

    Payment of indemnities - Law 12,783 / 13

0

0

33

239,265

    Regulatory asset update

0

0

0

0

    Gains on derivatives

0

0

0

0

    Other financial income

95,043

47,516

118,603

123,634

   Financial expenses

 

 

 

 

    Debt charges

-729,417

-489,346

-1,039,250

-693,710

    Lease charges

-1,456

-1,617

-93,382

-84,710

    Charges on shareholders' funds

-22,556

-58,603

-46,152

-92,871

    Noncurrent Restatement

-103,737

-141,415

-128,154

-137,425

    Noncurrent foreign currency exchange rate variations

-3,637,147

-729,705

-3,904,835

-823,524

    Regulatory liability update

0

0

-337,266

-165,817

    Losses on derivatives

0

0

-118,528

-18,230

    Other financial expenses

-489,246

-111,399

-280,423

-262,049

 

-376,794

234,120

-1,509,311

-336,124

INCOME BEFORE EQUITY

-702,280

-210,116

634,843

1,843,302

RESULTS OF EQUITY

1,002,437

1,989,002

164,223

160,094

OTHER REVENUE AND EXPENDITURE

0

0

25,042

183,222

OPERATING INCOME BEFORE TAXES

300,157

1,778,886

824,108

2,186,618

    Current Income tax and social contribution

0

-158,558

-735,783

-1,059,368

    Deferred Income Tax and Social Contribution

0

0

218,511

442,720

NET INCOME FROM CONTINUING OPERATIONS

300,157

1,620,328

306,836

1,569,970

SHARE ATTRIBUTED TO CONTROLLING

300,157

1,620,328

300,157

1,620,328

SHARE ATTRIBUTED TO NON-CONTROLLING

0

0

6,679

-50,358

DISCONTINUED OPERATION

 

 

 

 

NET LOSS OF OPERATING TAXES DISCONTINUED

0

-222,616

0

-222,616

NET INCOME OF THE FINANCIAL YEAR

300,157

1,397,712

306,836

1,347,354

 

 

 

MARKETLETTER 1Q2020

41

Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

cash flow statement (r$ thousand)

 

Parent

 Consolidated

 

03.31.20

12.31.19

03.31.20

12.31.19

Operating Activities

 

 

 

 

Income before income tax and social contribution

300,157

1,778,886

824,108

2,186,618

Adjustments to reconcile income to cash provided by operations:

0

0

0

0

Depreciation and amortization

3,273

3,394

469,265

427,957

Net foreign exchange rate variations

118,717

-201,023

552,292

-186,078

Financial charges

342,706

-39,071

952,230

625,428

Financial asset revenue

0

0

-199,782

-196,017

Construction Revenue

0

0

-152,713

-115,758

Equivalence equity results

-1,002,437

-1,989,002

-164,223

-160,094

Result on disposal of equity interests

0

0

-25,042

-183,222

RBSE Revenue

0

0

-1,016,199

-926,665

Provision (reversal) for short-term liabilities

0

0

0

0

Provision (reversal) for doubtful accounts

0

0

0

0

Provision (reversal) for contingencies

0

0

0

0

Provision (reversal) for impairment of assets

0

0

0

0

Provision (reversal) for onerous contract

0

0

0

0

Provision (reversal) for losses on investments

0

0

0

0

TRFH – (Pará rate)

0

0

0

0

Provision (reversa operationsl)

75,841

350,726

446,852

522,951

Non-controlling interest

0

0

-10,136

76,298

Financial instruments - derivatives

0

0

118,528

18,230

Others

-89,445

-73,022

11,899

-83,095

 

-551,345

-1,947,998

982,971

-180,065

(Increases) / decreases in operating assets

 

 

 

 

Customers

0

20,441

-10,741

82,362

Marketable securities

-338,539

-55,777

-1,283,995

-820,131

Reimbursement rights

-40,322

-21,524

-52,789

-799,309

Warehouse

-57

-23

31,384

-17,496

Nuclear fuel stock

0

0

-168,267

9,410

Financial assets - Itaipu and public service concessions

-433,145

-82,768

-433,145

-82,768

Assets held for sale

94,459

-27,405

128,250

24,181

Hydrological risk

0

0

13,223

107,654

Credits with subsidiaries - CCD

0

0

0

0

Others

-284,977

-397,674

827,360

-380,760

 

-1,002,580

-564,731

-948,719

-1,876,858

Increase / (decrease) in operating liabilities

 

 

 

 

Suppliers

188,143

-23,847

-129,947

-500,795

Advances from customers

0

0

-30,134

-16,828

Lease

1,456

68,969

93,801

300,947

Estimated liabilities

9,046

-25,985

57,252

-319,943

indemnification obligations

0

0

0

0

Sectorial charges

0

0

79,300

-11,619

Liabilities associated with assets held for sale

0

186,722

-26,536

186,722

Accounts payable with subsidiaries

0

0

0

0

Other

316,776

25,298

-1,112,335

268,595

 

515,421

231,156

-1,068,599

-92,921

 

 

 

 

 

Payment of financial charges

-187,983

-237,669

-566,344

-740,160

Revenue of RAP and indemnities

0

0

1,991,912

1,505,901

Financial asset revenues

0

0

0

0

Revenue of financial charges

412,218

420,801

240,004

353,541


 

MARKETLETTER 1Q2020

42

Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.


 
 

 

Payment of income tax and social contribution

-71,152

-55,514

-1,150,712

-666,400

Refinancing payment of taxes and contributions - principal

0

0

0

0

Revenue of remuneration for investments in equity interests

156,847

7,044

158,371

20,371

Supplementary pension payment

-2,870

-7,359

-56,688

-44,400

Payment of legal contingencies

-463,992

-390,374

-471,265

-392,946

Bonds and related deposits

-54,066

-49,473

-52,570

-54,664

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

-949,345

-815,232

-117,531

18,017

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

0

0

0

-379,997

Net cash provided by (used in) operating activities

-949,345

-815,232

-117,531

-361,980

 

 

 

 

 

Financing activities

 

 

 

 

Loans and financing

5,193,319

0

6,119,567

630,181

Payment of loans and financing - Main

-5,863,325

-568,789

-6,321,568

-1,400,747

Payment of shareholders remuneration

0

-132

0

-132

Advanced receivalbe for future capital increase

0

0

0

0

       Payment of finance leases

-3,301

0

-139,451

0

      Others

0

0

5,393

-10,103

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

-673,308

-568,921

-336,060

-780,801

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

0

0

0

414,724

Net cash provided by (used in) financing activities

-673,308

-568,921

-336,060

-366,077

 

 

 

 

 

Investing activities

 

 

 

 

Lending and financing

0

0

0

0

loans and financing receivables

0

-230,807

0

0

Acquisition of fixed assets

1,819,051

1,766,714

855,972

1,524,906

Acquisition of intangible assets

0

-69

-178,009

-203,142

Acquisition / capital investment in equity

0

-53

-15,611

-6,401

Advance concession for future capital increase

0

-6,860

-25,250

-133,734

Investment sale in shareholdings

-230,055

-107,230

-6,000

-5,373

Net cash flow in the acquisition of investees

17,512

0

17,512

0

Other

0

0

0

0

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

0

0

-18,807

-65,394

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

1,606,508

1,421,695

629,807

1,110,862

Net cash provided by (used in) investing activities

0

0

0

6,337

 

 

 

 

 

 Increase (decrease) in cash and cash equivalents

-16,145

37,542

176,216

389,142

 

 

 

 

 

       Cash and cash equivalents at the beginning of the financial year

18,202

47,400

335,307

583,352

      Cash and cash equivalents at the end of the financial year

2,057

84,942

511,523

931,430

       Increase (decrease) in cash and cash equivalents

0

0

0

41,064

 

-16,145

37,542

176,216

389,142

         

 

MARKETLETTER 1Q2020

43

Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.

 

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: June 1, 2020
CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS
By:
/SElvira Baracuhy Cavalcanti Presta
 
Elvira Baracuhy Cavalcanti Presta
CFO and Investor Relations Officer
 
 

 

 
FORWARD-LOOKING STATEMENTS

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