São Paulo – Eletrobras (ELET3; ELET6) recorded a net profit of R$964.561 million in the balance sheet for the third quarter, 65.7% lower than the profit of R$2.814 billion in the previous year. This decrease is attributed to adjustments in the reservation of contingency provisions amounting to R$9.434 billion.
According to the company, the revision of the estimates for the provision of compulsory loans, which totaled about R$8.926 billion in the third quarter, came after a ruling by the Supreme Constitutional Court (STJ) on internal appeal in Special Appeal No. 1.734,115 / Public Relations and the last. Approval of unfavorable reports in fiscal year 2021.
R$8.926 billion includes, among other things, R$5.253 billion relating to reclassification, from remote loss risk to potential loss risk, to certain disputes relating to the onset of the statute of limitations for reversible lucrative interest collection.
In addition, the savings of R$2.180 billion resulting from the change of time frame to provide a controversial portion for contemplating final decisions with a different understanding of the company, as well as recording negatively attested reports, had significant weight.
“We are reviewing our judgments as part of our ongoing assessment of the changing, and often unpredictable, legal landscape regarding forced loan disputes,” the company said.
Positive Highlights of Eletrobras’ Balance Sheet
According to the company, the result was the transport sector as a positive point, mainly due to the accounting for renewed contracts under Law 12,783/2021, as a result of the restructuring of the financial component of the RBSE, in the amount of R$ 4,859 million.
The result was also positively affected by the renegotiation of hydrological risks, in the amount of R$4.266 billion, arising from Aneel Resolution Nos. 2932 and 2919/21/21, which ratified the extension of grant terms for several Eletrobras hydroelectric power stations.
Another positive feature of the inversion quarter weakness R$454 million, primarily affected by lower discount rates, highlighting the reversal of R$265 million at the Santa Cruz and Furnas plants.
Net operating income increased from R$ 6.626 billion in the third quarter of 2020 to R$ 9.957 billion in the same period this year, an increase of 50%.
This increase was offset by the impact on transmission revenue from periodic tariff review, and in generation, better performance on bilateral contracts and higher settlement yields with CCEE.
Income before interest, taxes, depreciation, and amortization (Ebitda) IFRS, which amounted to R$5.369 billion in the third quarter of last year, rose to R$5.596 billion in the third quarter of this year.
Meanwhile, net recurring operating income grew 45%, from R$6.891 billion in the third quarter of 2020 to R$9,977 million in the same period this year.
On the other hand, the recurring Ebitda increased by 70% to R$5.598 billion. The company pointed out that “the frequent growth indicates the improvement of the company’s operational performance.”
Eletrobras operates in the generation, transmission and marketing sector, and controls 5 operating subsidiaries and a holding company – Eletropar. It also owns 50% of the capital of Itaipu Binacional Corporation.
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