EDP reached EBITDA of R$409 million in the first quarter of 2015
The results are due to a 61.6% increase in the distribution segment's EBITDA, annual tariff readjustments, moderate energy sales growth, and the positive impact of non-billed supply of consumption classes, partially offset by a 26.2% drop in the generation segment's EBITDA as a result of the GSF less than in 1Q14 (1Q15: 79% vs. 96% in 1Q14) and the lower volume of energy sold in the commercialization segment.
EDP, a company engaged in electricity generation, trading and distribution reached an EBITDA (earnings before interest, taxes, depreciation and amortization) of R$408.6 million in the first quarter of 2015. These results are mainly due to an R$85.5 million increase in the distribution segment EBITDA, partially offset by an R$63.7 million drop in the generation segment and an R$22 million drop in the commercialization segment.
Overall, EDP EBITDA did not change significantly compared to the same period in 2014 (R$406.4 million), with a slight increase of 0.5%. Net profits in the first quarter amounted to R$83.6 million, compared to R$99.5 million in 2014, while net revenues stood at R$2.1 billion in the first quarter of 2015, the same as in the previous year (R$2.1 billion).
The Company expenses (personnel, materials, third-party services and others) were 10.9% lower than in 4Q14 and 8.7% higher than 1Q14, a result that reflects each period accrued inflation over the previous 12 months.
Both distribution companies show a decrease in non-technical low voltage losses. In the case of EDP Bandeirante, the 0.3 pp drop reflects the recovery of 7.5 GWh of billed energy resulting from the intensification of the "Programa de Combate às Perdas Não Técnicas" in the region of Guarulhos, Poá and Ferraz de Vasconcelos.
As for EDP Escelsa, the 1.1 pp drop reflects the investments, in the second half of 2014, in the "BTZero" and "Telemedição" projects, which sought to improve energy measurement methods by setting up individual consumer meters, thereby making power theft more difficult.
The volume of energy distributed by concessionary companies in 1Q15 amounted to 6,764 GWh, a 0.6% increase compared to the 6,726 GWh distributed in 1Q14. In the generation segment, the volume of energy sold in the first quarter amounted to 2,260 GWh, a 1.9% increase compared to the same period of the last year (2,217 GWh). As for commercialization, the volume of energy in the first quarter dropped from 3,458 GWh in 2014 to 2,514 GWh in 2015, mainly due to the liquidity decrease in the non-regulated energy market.
Miguel Setas appointed to Board of Directors
EDP Portugal announced in April that Miguel Setas, Chief Executive Officer and Investor Relations Executive Officer of EDP Brazil has been appointed to the Board of Executive Directors, which manages the activities of the EDP Group. With this appointment, Brazil strengthens its representation in the Board decisions, thus highlighting the country relevance for the Portuguese headquarters.
Progress of power plant constructions
One of the highlights in the first quarter of 2015 was the evolution of the power plants of Cachoeira Caldeirão in Amapá (80%) and São Manoel, located between Mato Grosso and Pará (8.5%). The Pecém I thermal power station in Ceará reported an availability rate of 96.2% and an EBITDA of R$46 million in 1Q15.
The first generating unit of the Jari hydroelectric plant began its operations in September 2014, three months before schedule. Duly authorized by the Electricity Trade Chamber, energy sale contracts pertaining to the Jari power plant were officially launched on January 1st, 2015.
