Eletrobras closed the third quarter with a profit of R$965 million, a drop of 66% compared to the same period last year. The result was strongly impacted by the increase in provisions for losses in lawsuits.
Without the provisions and non-recurring effects, says the state-owned company, the profit for the quarter would have been BRL 3.6 billion, 69% higher than that registered in the third quarter of 2020. On the balance sheet, the company stated that “recurring growth demonstrates the improvement in the operational performance of the company”.
The state-owned company has been prepared for privatization, with the offer of new shares to private investors and a reduction in the government’s share, which hopes to complete the process in the first half of 2022.
In the quarter, Eletrobras raised by R$ 9 billion the provisions for losses in lawsuits against the rate charged on the electricity bill of large consumers until the 1990s. The increase, says the state-owned company, reflects the evolution of some processes for the execution phase.
The provisions refer to the so-called compulsory loans, which began to be collected from large consumers in 1978. Currently, there are thousands of lawsuits questioning the value of the reimbursement, which was made in company shares.
In a statement to the market, the state-owned company says it decided to set aside R$5.2 billion with the reclassification of risk of remote loss to risk of probable loss in some lawsuits and R$2.2 billion with a change in the timeframe for provision for shares in which it has already been defeated.
In its balance sheet, the company said the adjustments are “part of our ongoing assessment of the dynamic legal landscape in relation to compulsory loan disputes”, but that it continues to “make every effort” to ensure that its theses on the subject are recognized.
On the other hand, the state-owned company also had extraordinary positive effects, such as changes in transmission revenue (BRL 4.8 billion) and the agreement to renegotiate the hydrological risk, which guaranteed a longer concession period for hydroelectric plants (BRL 4.2 billion ).
In the third quarter, the company recorded growth of 50% in net operating revenue, to R$9.9 billion, and 4% in Ebitda, an indicator that helps measure a company’s cash generation, which was R$5 .6 billion.
Eletrobras continued to reduce its debt, which closed the quarter at R$19.1 billion, 9% less than the same period last year. The number of employees also continues to fall. At the end of the quarter, there were 12,160, a cut of 3%.
In the year, Eletrobras accumulates net income of R$ 5.1 billion, 13% above that verified in the same period of the previous year.
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