Centrais Elétricas Brasileiras S.A. - Eletrobras (NYSE:EBR.B) Q2 2018 Earnings Conference Call Transcript

Aug 15, 2018 • 01:30 pm ET


Centrais Elétricas Brasileiras S.A. - Eletrobras (NYSE:EBR.B) Q2 2018 Earnings Conference Call Transcript


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Ladies and gentlemen, thank you very much for waiting. Welcome to the teleconference of Eletrobras in order to disclose our results regarding the second quarter of 2018. (Operator Instructions) I'd like to remind you that this presentation is available in PPT in the part of Investors Relations in our website. (Operator Instructions)

(Forward-Looking Cautionary Statement)

Now I'd like to give the floor to President, Wilson Ferreira Junior. Wilson Ferreira Junior, the floor is yours.

Wilson Ferreira Junior

Good afternoon, everyone. I'd like to thank for the opportunity and for you being here to listen to our results of second quarter of 2018. I have a quite large presentation.

So let's start on page number 4, where we have our main highlights -- financial highlights regarding this quarter. And the 3 main ones, we have an increase of 36% in gross revenue. We had BRL14 million -- more than BRL14,822 million. We had in terms of CVM EBITDA BRL5,293 million an increase of 96%. And in terms of net income, we had an increase of more than 807% increase regarding the previous period of the second quarter of 2017. And we are going to introduce to you the main results which led to that.

So going to page 5, just to mention some highlights in terms of this analysis. The first one here is that we kept on reducing our indebtedness in the second quarter, and we are able to reach 3.4. And we are really close to our master plan of business and management, which is going to be rigid as we go on, especially due to the sales of the SPEs, which are expected to cover them all. We included more than 814 megawatts until the end of the second quarter, and we added also almost 200 kilometers of transmission in terms of line until 2018. And also, we are going to provide more details afterwards. We had a great highlight on July 26, which was the privatization of Distribuicao Piaui to Equatorial Energia. It was a discount index of 119%, and we had the payment to the government and specifically, the process of capitalization for the life of the company from now onwards. Another highlight of this quarter was the definition by ANEEL, and we had Resolution 2421, which talks about the resources. And now we have a recognition a bit higher than -- a bit lower than BRL1 billion between '18 -'19. And we have investments in the semester which added almost BRL1 billion in terms of corporate sanctions and is also an investment in SPEs.

And then after that, we are going to page number 7. We are going to show you the main things in terms of infrastructure. As you can see here, in June this year, we have aggregated 814 megawatts, and up until the end of the year, we are going to have 1,489 megawatts. And with this, during the year, we have a highlight in terms of some wind plants specifically before the next month and