EDP starts 2017 strengthening its investment in the Brazilian electric sector
Winner of the last transmission line auction with investments of R$ 3 billion in four lots, the company recorded recurrent positive results in the first quarter, with a growth of 18% in adjusted EBITDA
For EDP Brasil, the first months of 2017 were marked by the strengthening and diversification of its investment. The great highlight of the period was the expansion of the presence of the Company in the energy transmission segment, after securing four lots of lines and substations in the auction organized by the National Agency of Electric Energy (Aneel) on April 24th.
In terms of the planned investment in the work, the company led the contest, earning the right to build transmission lines in which it should invest more than R$3 billion. The work will add about 1,200 kilometers of transmission networks to the electrical system in the states of Minas Gerais, S‹o Paulo, Santa Catarina, Rio Grande do Sul and Maranh‹o.
"The first months of 2017 set the beginning of a new growth trajectory phase in Brazil. The transmission area is structuring the development of the electricity sector. EDP has already invested in other sectors such as generation, commercialization and distribution, and now we want to participate in the development of the transmission sector, says the president of EDP Brasil, Miguel Setas.
1st Quarter Results
Between January and March, the Company recorded an 18.1% increase in EBITDA (profits before interest, taxes, depreciation and amortization) in comparison with 2016, reaching R$539.7 million. The data disregards non-recurring effects that boosted the balance of the previous year, such as the conclusion of the sale of Pantanal EnergŽtica and the reimbursement of insurance from the PecŽm I Thermoelectric Power Plant.
Adjusted net income reached R$134.8 million, a 108,9% increase in the same basis of comparison. It is also worth noting the work of EDP in maintaining a controlled and efficient operation. In the first three months of 2017, the Group expenses in Personnel, Material, Third Party Services, Provisions and Other Manageable Funds (PMSO) increased by only 3.6%, below the inflation registered during the period by the Broad Consumer Price Index (IPCA) of 4.57%.
Breakthroughs in Distribution
The energy distributors EDP S‹o Paulo and EDP Esp’rito Santo concentrated investments in the fight against fraud and delinquency in the 1st quarter of the year and, as a result, achieved a reduction in non-technical losses at low voltage. Altogether, R$22 million were applied to the program.
In the S‹o Paulo concession area, losses were reduced by 1.77 percentage points, ending the month of March at 9.6%. In the state of Esp’rito Santo, the index fell 1.61 percentage points to 13.08%.
The total investment by the two concessionaires in the quarter amounted to R$ 141.4 million, more than double what was achieved in 2016. In addition to combating losses, resources were used for improvement work and maintenance and development of the BTZero network, installation of measuring sets, and recomposition of the network with the implementation of new cable types.
S‹o Manoel Power Plant
By the end of March, the works at the S‹o Manoel Hydroelectric Power Plant reached 85% of its physical development. With estimated delivery in 2018, the enterprise, located on the border between the states of Mato Grosso and Par‡, is in the final stages of construction.
The investment made so far in the plant amounts to R$2.8 billion. Just between January and March, R$177.6 million were invested in the construction. The UHE is a partnership between EDP Brasil, CTG Brasil and Furnas Centrais ElŽtricas, each with 33.33% in participation.
UTE PecŽm
In its operation of the PecŽm I Thermoelectric Plant, EDP achieved another important milestone in the period: consolidation of the efficiency of the enterprise. In the 1st quarter of 2017, the average availability of UTE reached 94%, an index higher than what is required by the regulator, which is 90%.
