EDP up 15% on third quarter net profit | EDP Brasil

EDP, company that operates in all segments of the Brazilian electricity sector, registered a Net Income of R$ 354 million in the third quarter of 2019, an increase of 15.3% compared to the same period of last year. EBITDA (earnings before taxes, depreciation and amortization) reached R$ 778.8 million, up 14.6% over the same period of 2018.

In the first nine months of 2019, Net Income was 12% above that recorded in a similar period last year, totaling R$ 838.6 million. EBITDA reached R$ 2 billion, an increase of 6.2% over 2018. The Company investments in the quarter were R$ 562.2 million, an increase of 41.2% compared to the previous year. In the year, Capex more than doubled compared to 2018, growing 119.3% and reaching R$ 1.6 billion.

At the good quarterly result was the conclusion of the fare review at the distributor of Espírito Santo, which resulted in a 28.1% increase in the Net Remuneration Base and a 4.84% reduction in the average consumer fare. In the review of EDP SP, the decrease in the fare was 5.33%, with an increase of 45.3% in the Net Remuneration Base. Another highlight of the period was the decrease in loss levels, which follow a downward trend, reflecting efforts to combat fraud and to expand and improve distribution networks.

In Transmission, EDP finalized in August the acquisition of the concession rights for lot Q, between Santa Catarina and Rio Grande do Sul, expanding to 1,441 kilometers the extension of the lines in its project portfolio. Of the total planned investments in the segment by 2022, R$ 1.4 billion has already been disbursed, or 37% of the contracted, allowing progress with works on or ahead of schedule.

An example was the recent obtaining of the installation license (IL) of Lot 18, between the states of São Paulo and Minas Gerais. The achievement of the IL was scheduled for February 2020, which means an anticipation of four months in relation to the scheduled start date. In July, EDP had already made a public offer for the distribution of debentures of this venture, reaching the amount of R$ 800 million. The operation enabled a minimum leverage of approximately 54% of the Capex of the work, due in 2039, enabling greater profitability for shareholders. In addition, this month was concluded the licensing of Lot 21, in Santa Catarina. With this, the construction of the last stage of this venture is authorized.

“EDP performance in the third quarter is marked by the conclusion of the two fare review processes in São Paulo and Espírito Santo. The investment made in the previous tariff cycle allowed significant economic recognition in the regulatory asset base. Additionally, we continued our investment in the Transmission segment at a good pace to make early deliveries”, says Miguel Setas, Chairman of EDP in Brazil.

Focus on clean energy

In line with the Company global commitments, EDP in Brazil remains committed to encouraging the transformation of the Brazilian energy matrix by promoting solutions based on clean sources. In this sense, EDP has just announced the installation of 30 new ultra-fast electric vehicle-charging stations in the state of São Paulo. The venture will have an investment of R$ 32.9 million and will connect a total of 64 charging points connecting São Paulo, Rio de Janeiro, Vitoria, Curitiba and Florianópolis, forming a corridor of electric cars supplying over 2,500 kilometers in length.

Approved at the National Agency of Electrical Energy (Aneel) public call for Efficient Electric Mobility, it is the first and largest project in South America to install ultra-fast chargers. Implementation of the network will begin in 2019 and first openings are scheduled for 2020, with completion in three years. Another important step for EDP to position itself as the leader of Brazil energy transition.

About EDP Brasil

With over 20 years of experience, EDP is one of the largest private companies in the electricity sector operating throughout the value chain. The Company, which has over 10,000 direct and outsourced employees, operates in Generation, Distribution, Transmission, Trading and Energy Services. It has six hydroelectric and one thermoelectric generation units, and serves about 3.4 million customers through its Distributors in São Paulo and Espírito Santo. Recently, it became CELESC main shareholder in Santa Catarina. In Brazil, it is a reference in areas such as Innovation, Governance and Sustainability, having been in the B3´s Corporate Sustainability Index (ISE) for 13 consecutive years.