EDP, a company that operates across all segments of the country’s electricity industry, registered a net profit of R$ 306.9 million for the third quarter of 2018, up 119.1% compared with the same period in 2017. Year-to-date earnings are R$ 748.7 million, surpassing last year’s figure of 611.9 million by 22.3%.

At the Company’s EBITDA (earnings before interest, taxes, depreciation and amortization) was R$ 679.6 between July and September, a 23.2% increase over the third quarter of 2017.

Onet revenue was R$ 3.8 billion, with a Gross Margin of R$ 993.6 million. Contributing to this 20.7% increase in cumulative net revenue so far this year was the increased volume of energy traded by the Trading side of the company, growth in the distribution market and reduced losses.

“These figures confirm the trend seen in the previous two quarters and indicates the Company’s emphasis the characteristics that set us apart: sustainable growth, superior performance, operational excellence and assertive risk mitigation”, said Miguel Setas, president of EDP in Brazil.

Continuous growth

All EDP’s operating areas reported positive performance and contributed towards this result. Energy distribution increased for a fifth consecutive quarter, up 4.2%. The Company has also consistently reduced losses, especially from fraud and energy theft. Total losses in São Paulo decreased from 8.73% in September 2017 to 8.43% in September of this year. In Espírito Santo, losses fell from 13.09% to 12.35%.

Company highlights include a 19.6% stake in the Santa Catarina Electrical Power Stations (CELESC), adding R$ 16.9 million in equity equivalence.

At the Power Line under construction in Espírito Santo is 79.1% complete, with delivery expected one year and a half ahead of the regulatory deadline and will consolidate EDP’s position in the Transmission sector. The Company also obtained a Preliminary License (LAP) and is waiting for an Installation License (LI) to begin the construction on Lot 21, in Santa Catarina, which, given to the financing terms obtained, should yield returns to shareholders exceeding the upper profitability limit predicted at the time of the tender.

At the joint effort deployed by the Generation and Trading departments to mitigate hydrological risks has delivered positive results on both fronts. For the eighth straight quarter, the Trading department reported improved results, with a gross margin of R$ 68.8 million. The thermoelectric power station in Pecém continues to improve its operational performance.

At the sale of EDP’s shares in the Costa Rica SHS, located in Mato Grosso do Sul, for R$ 43.5 million, contributed to this result.

Investments in Brazil

As part of the Company’s commitment to invest R$ 1.4 billion in Brazil by the end of the year, EDP ended the third quarter with cumulative investments of R$ 809.9 million, a 9.1% increase compared with last year.

Investments in the Distribution segment totaled R$ 192 million, a 31.5% increase for this quarter, indicating the Company’s strategy to allocate a significant share of the department’s budget in the second half of the year was successful. 52.6% of total gross investment was used to install metering systems, expanding lines, connecting new customers and replacing equipment, as well as the loss reduction program. So far this year, the Company has invested R$ 443.7 million, in line with the forecast CAPEX investment of R$ 630 million investment through the end of 2018.

At the company invested R$ 45.5 million in Generation, up 252.9% on 2017, mainly due to regular preventive maintenance at Pecém HEP. Altogether, the Company has so far invested R$ 138 million in this business.

At the Company invested R$ 157.2 million in the Transmission department during the quarter for land purchases, environmental studies and administrative costs, as construction on the Espírito Santo lot advances and the Santa Catarina lot timetable has been brought forward. The Transmission area has received R$ 222.7 million in investment this year. Other investments totaled R$ 5.5 million over the first nine months of the year.

Noperational efficiency

At there was a 3% reduction in PMSO (cost with expenses) during the third quarter and a 1.2% decrease for the year to date, not including Provisions (provision for doubtful debts and Contingencies). This shows the Company’s commitment to holding cost growth below inflation.

In October, EDP’s focus on innovation, sustainability and high standards of governance was acknowledged during the Epoca 360° Awards, organized by Época Negócios magazine, one of the country’s foremost economic publications. EDP was also elected Brazil’s best Energy sector company in the 2018 annual.