EDP registers EBITDA of R $ 626 million in the third quarter | EDP Brasil

EDP Brasil, a company operating in the areas of generation, distribution, commercialization and electric energy solutions, registered EBITDA (profit before interest, taxes, depreciation and amortization) of R $ 626 million in the third quarter of 2016. In comparison with the same period of 2015, the result represents a growth of 6.6%.

The company net profit totaled R $ 231 million between July and September, more than four times higher than the same month last year. The growth is explained in part by the recognition of the appreciation of assets of EDP Escelsa, Esp’rito Santo energy distributor, after the tariff revision promoted by the National Electric Energy Agency (Aneel) in August.

"The results of EDP Brasil in the third quarter show our focus on the commitment to execute the investments and the operational excellence of our assets," says the company CEO, Miguel Setas.

The net operating revenue of the company, excluding construction gains, reached R $ 2.2 billion in the quarter. In the first nine months of this year, the company had a net profit of R $ 631 million, EBITDA of R$ 1.8 billion and R$ 6.3 billion in revenues.

Cachoeira Caldeir‹o HPP Operation

In August, the third and last generating unit of the Cachoeira Caldeir‹o Hydroelectric Power Plant, located in Amap‡, came into operation. The plant, which is a partnership between EDP Brasil and CTG, has anticipated 8 months and already represents solid gains for the Company.

Although the contracts for the sale of energy generated in the project in the regulated market are only valid from the first day of 2017, the UPP began the commercialization of its production in the free environment of hiring. The first unit sold its energy through a bilateral agreement with EDP Comercializadora, while the second and third units were auctioned to offer their generation to the market.

Works by HPP S‹o Manoel

The construction of the hydroelectric plant S‹o Manoel, in Mato Grosso has achieved 78% growth at the end of September. In the third quarter, some activities stand out, like the descent of the pre-distributor to the well of the first turbine, the completion of the concreting of the well of the second unit and the progress of the spillway floodgates assembly, which is in the process of completion.

Improved operational efficiency

The proceeds from the investment of the Escelsa and Bandeirante distributors in combating energy losses in concession areas helped reduce delinquency and allowed the company to reduce its expenses with Provisions for Doubtful Accounts (PDD). For the first time this year, the amount spent collapsed in the annual balance.

In total, provisioning expenses for defaulters were reduced by R $ 2.5 million. In Esp’rito Santo, the reduction was R $ 1.8 million between the third quarter of 2015 and that of this year. In S‹o Paulo, the decrease was of R$ 0.7 million. Direct reflection of actions such as the realization of fairs for renegotiation of debts and the implementation of agreements for late payments, in addition to work to combat fraud.

Non-technical losses at low voltage receded in the two concessionaires, both quarterly and yearly. At At Bandeirante, the drop was 0.97 percentage points at the end of September compared to the same month in 2015. At Escelsa, the indicator fell by 0.9 percentage points on the same comparative basis.

Transmission Auction

EDP Brasil participated in the last ANEEL Transmission Auction on October 28, in which it purchased a lot comprising 113 kilometers of lines and a 150 MVA substation in Esp’rito Santo. The total estimated investment for the work is R \ $ 116 million, with a disbursement of 5% in 2017, 27% in 2018, 66% in 2019 and 2% in 2020. The deadline for entry into operation considered by the company is 32 months.

The entry into the Transmission segment will allow EDP to diversify its performance in the electricity market with adequate profitability, cash predictability and controlled risk. The ability to execute hydroelectric projects and the company experience in the distribution segment will be decisive for the successful development of this project.