AXIA Energia S.A 6-K, filed May 17, 2022
AXIA Energia S.A. (AXIAY)
About this 6-K
AXIA Energia S.A filed this 6-K on May 17, 2022.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of May, 2022
Commission File Number 1-34129
CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS
(Exact name of registrant as specified in its charter)
BRAZILIAN ELECTRIC POWER COMPANY
(Translation of Registrant's name into English)
Rua da Quitanda, 196 – 24th floor,
Centro, CEP 20091-005,
Rio de Janeiro, RJ, Brazil
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ___X___ Form 40-F _______
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No___X____
MARKETLETTER 1Q22
INTRODUCTION
Rio de Janeiro, May 16, 2022
A Eletrobras (Centrais Elétricas Brasileiras S.A.)
[B3: ELET3 e ELET6 – NYSE: EBR e EBR-B – LATIBEX: XELTO e XELTB]
Eletrobras, the largest company in the electric energy sector in Latin America, operating in the generation, transmission and commercialization segment, direct controller of 5 operating subsidiaries and a holding company – Eletropar –, a research center – Cepel, 50% interest of the share capital of Itaipu Binacional and, with direct and indirect interest in 77 Special Purpose Entities, announces, on this date, its results for the period referring to the first quarter of 2022.
1st QUARTER OF 2022
Eletrobras presented, in the first quarter of 2022 (1Q22), a net income of R$ 2,716 million, 69% higher than net income of R$ 1,609 million obtained in the first quarter of 2021 (1Q21). The 1Q22 result was positively impacted by the company's financial performance, with emphasis on the positive effect of the exchange rate variation and the 12% increase in gross revenue. Another positive highlight in the quarter was the 3.4% reduction in PMSO costs. The negative highlight was the recording of BRL 1,226 million in Provisions for Doubtful Accounts, arising from the continued default of Amazonas Energia D, of which BRL 867 million refers to the purchase of electricity from independent power producers (PIE) located in Amazonas and R$ 359 million related to loan agreements owed by the aforementioned distributor.
Net Operating Revenue increased from R$ 8,208 million in 1Q21 to R$ 9,181 million in 1Q22, an increase of 12%, influenced by the better performance of bilateral contracts and the readjustment of transmission revenues. IFRS EBITDA, amounting to R$ 3,858 million in 1Q21, changed to a positive amount of R$ 3,752 million in 1Q22. Recurring Net Operating Revenue grew by 11%, from R$ 8,200 million in 1Q21 to R$ 9,121 million in 1Q22. Recurring EBITDA increased by 9.6%, from R$ 4,952 million in 1Q21 to R$ 5,428 million in 1Q22. The recurring growth in 2022 demonstrates the improvement in the Company's operating performance.
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 3 |
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OTHER 1Q22 HIGHLIGHTS
 |
Table 01: MAIN INDICATORS (R$ Million) |
| 1Q22 | 1Q21 | % | |
| Energy Sold - Generation GWh (1) | 42.7 | 49.2 | -13.1% |
| Gross Revenue | 10,980 | 9,821 | 12% |
| Recurring Gross Revenue (2) | 10,911 | 9,820 | 11% |
| Net operating revenue | 9,181 | 8,208 | 12% |
| Recurring Net Operating Revenue (3) | 9,121 | 8,200 | 11% |
| EBITDA | 3,752 | 3,858 | -3% |
| Recurring EBITDA (4) | 5,428 | 4,952 | 10% |
| Ebitda Margin | 41% | 47% | -6.1 |
| Recurring Ebitda Margin | 60% | 60% | -0.9 |
| Gross debt without third party RGR | 41,639 | 46,608 | -11% |
| Recurring Net Debt | 20,554 | 20,565 | 0% |
| Recurring Net Debt / Recurring LTM EBITDA | 1,0 | 1,9 | -94% |
| Net Profit | 2,716 | 1,609 | 69% |
| Investments | 523 | 519 | 1% |
| Employees | 12,090 | 12,221 | -1% |
(1) Does not consider the energy allocated to quotas, from the plants renewed by Law 12,783 / 2013;
(2), (3) and (4) Detailed adjustments in the consolidated analysis presented below.
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1 ANALYSIS
OF THE
CONSOLIDATED RESULT (R$ MILLION)
|
Tabela 02: CONSOLIDATED RESULTS |
| Financial Statements | 1Q22 | 1Q21 |
| Generation Revenue | 6,542 | 5,846 |
| Transmission Revenue | 4,235 | 3,801 |
| Others Revenue | 202 | 173 |
| Gross Revenue | 10,980 | 9,821 |
| Deductions from Revenue | -1,798 | -1,612 |
| Net Operating Revenue | 9,181 | 8,208 |
| Energy resale, grid, fuel and construction | -2,068 | -1,641 |
| Personnel, Material, Services and Others | -1,965 | -2,034 |
| Depreciation and amortization | -645 | -458 |
| Operating Provisions | -2,070 | -1,105 |
| 2,434 | 2,970 | |
| Shareholding | 552 | 430 |
| 0 | 0 | |
| Others Revenues and Expenses | 121 | 0 |
| 3,107 | 3,400 | |
| Financial Result | 478 | -584 |
| Income before tax | 3,585 | 2,817 |
| Income tax and social contribution | -869 | -1,207 |
| NET INCOME FOR THE PERIOD | 2,716 | 1,609 |
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|
Tabela 03: RECURRING CONSOLIDATED RESULT |
| Recurring Financial Statement * | 1Q22 | 1Q21 |
| Generation Revenue Recurring | 6,474 | 5,837 |
| Transmission Revenue Recurring | 4,235 | 3,801 |
| Others Revenue Recurring | 202 | 181 |
| Gross Revenue Recurring | 10,911 | 9,820 |
| Deductions from Revenue Recurrent | -1,791 | -1,619 |
| Net Operating Revenue Recurring | 9,121 | 8,200 |
| Operational costs Recurring | -2,064 | -1,632 |
| Personnel, Material, Services and Others Recurring | -1,916 | -1,933 |
| Depreciation and amortization Recurring | -645 | -458 |
| Operating Provisions Recurring | -265 | -114 |
| 4,230 | 4,064 | |
| Shareholdings Recurring | 552 | 430 |
| 4,783 | 4,494 | |
| Financial Result Recurring | 643 | -540 |
| Income before tax Recurring | 5,426 | 3,954 |
| Income tax and social contribution Recurring | -843 | -1,198 |
| Net Income for the year Recurring | 4,583 | 2,756 |
*
Non-recurring adjustments mentioned in the Highlights.
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1.1 MAIN VARIATIONS OF FINANCIAL STATEMENTS
HIGHLIGHTS IN ANALYSIS OF VARIATION 1Q22 X 1Q21
OPERATING INCOME
Table 04: GENERATION REVENUE
| Operating Revenue - Generation | 1Q22 | 1Q21 | % |
| Generation Revenue | |||
| Energy supply to distribution companies | 4,033 | 3,623 | 11% |
| Supply | 937 | 719 | 30% |
| CCEE | 483 | 465 | 4% |
| Operation and Maintenance Revenue | 1,082 | 1,034 | 5% |
| Construction Revenue | 3 | 9 | -61% |
| Itaipu Transfer | 4 | -4 | -211% |
| Generation Revenue | 6,542 | 5,846 | 12% |
| Non-recurring events | |||
| (-) Reversal of Penalties for Unavailability - CCEAR - CGT Eletrosul | -65 | 0 | - |
| (-) Construction Generation | -3 | -9 | -61% |
| Recurring Generation Revenue | 6,474 | 5,837 | 11% |
Variation Analysis 1Q21X1Q22
ENERGY SUPPLY TO DISTRIBUTION COMPANIES
| · | At Eletronuclear (+R$312 million): (i) increase in Fixed Revenue from Angra 1 and 2 plants, according to ANEEL Homologatory Resolution No. 3002 of 12/14/2021, due to (a) coverage of costs related to nuclear fuel in November and December 2020, which were reduced from 2021 Fixed Revenue, impacting 1Q21 by - R$77 million, which did not occur in 1ITR22, and (b) the update of the nuclear power plant decommissioning plan, which demanded from Eletronuclear an increase in the contribution of resources to the fund for this purpose, impacting 1Q22 by + R$ 46.6 million. |
| · | At CGT Eletrosul (+R$122 million): (i) R$99 million increase in ACR revenue, mainly due to the following factors: (a) 21 million increase, due to the 12% increase in average sales prices (R$238/MWh versus R$268/MWh) as a result of the adjustment by the IPCA; and (b) reduction in reimbursement for unavailability of UTE Candiota III, resulting in a R$ 8.5 million increase in revenue; (ii) an increase of R$ 64.8 million resulting from the recognition of a court decision favorable to CGT Eletrosul, referring to the retroactivity of the recognition of nullity of the clause - Penalties for unavailability - of CCEARs of the 1st New Energy Auction of 2005, signed by former CGTEE (today CGT Eletrosul) and 31 agents (electricity distributors), which will result in CCEE re-accounting; (iii) In the ACL, the R$22.5 million increase in revenue was mainly due to the positive variation in the average sales price of contracts signed in this environment (average price of R$201/MWh in 1Q21 and R$ 332 /MWh in 1Q22), offset by the reduction in the quantity sold in this environment (from 340 average MW in 1Q22 to 244 average MW in 1Q22). |
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| · | At Eletronorte (+R$38 million): (i) R$97 million increase in revenue from the sale of PIEs in the capital of Amazonas due to the 15% increase in contractual prices linked to the IGPM (1Q21 R$889.88/MWh X 1Q22 R$ 1,024.24/MWh); (ii) increase of R$ 12 million in revenue from the sale of UHE Samuel due to the 5% increase in contractual prices (1Q21 R$ 219.67/MWh X 1Q22 R$ 231.55/MWh) and the 16% increase the amount of energy sold (1Q21 116 MWavg X 1Q22 134 MWavg); (iii) increase of R$ 7 million in UHE Balbina sales, as a result of the increase in contractual prices by 11% (1Q21 R$ 345.45/MWh X 1Q22 R$ 382.32/MWh); (iv) increase of R$ 6 million in sales at UTE Aparecida, as a result of the 124% increase in contractual prices (1Q21 R$ 333.92/MWh X 1Q22 R$ 746.44/MWh), despite the negative variation in volume -52% of energy (1Q21 117 MWavg X 1Q22 56 MWavg); gains partially offset by (v) a 17% reduction, R$ 85 million, in sales at UHE Tucuruí, due to a 34% reduction in energy sold (1Q21 1,597 MWavg X 1Q22 1,056 MWavg), even at prices 26% larger (1Q21 R$144.82/MWh X 1Q22 R$181.89/MWh). |
| · | In Furnas (+R$21 million): (i) Higher dispatch from the Santa Cruz thermal plant in 2022, totaling R$16 million; (ii) Seasonal adjustment and price adjustment of ACR contracts of approximately 8% (R$174 million in 1Q21 and R$188 million in 1Q22); (iii) an increase of approximately R$6.5 million in Brasil Ventos Energia's revenue; partially offset by: (iv) Lower amount of energy traded on the ACL (2,320GWh in 1Q21 to 2,008 GWh in 1Q21, representing a decrease of R$16 million. |
Partially offset by:
| · | Chesf (-R$79 million): (i) Reduction of 142 average MW sold in ACL due to the commercialization strategy adopted; (ii) reclassification of revenues from wind farms with reserve contracts, in the amount of R$ 12 million (under CCEE, while in 1Q21 they were in supply). |
SUPPLY FOR END CONSUMERS
| · | At Eletronorte (+R$149 million): (i) increase in Albrás' revenue by R$137 million, due to the readjustment of the base price, the variations of the parameters defined in the contract for the calculation of the final sale price, such as price aluminum, US dollar and sector charges, with emphasis on (a) adjustment by the IGP-M of 32% of the base price, from R$134.77/MWh to R$177.92/MWh; (b) a 42% increase in average aluminum prices (US$ 2,040 in 1Q21 X US$ 2,972 in 1Q22); (c) a 4% drop in the average dollar conversion rates (1Q21 R$5.47/US$ X 1Q22 R$5.23/US$); (ii) increase of R$ 12 million due to the 32% readjustment of other sales contracts at UHE Tucuruí (1Q21 R$ 175.45/MWh X 1Q22 R$ 231.17/MWh). |
| · | Chesf (+R$42 million): (i) increase, in the period, of around 38 average MW in consumption by industrial customers covered by Law 13,182/2015. Due to the problems faced by a consumer in the State of Alagoas that lasted from May/2019 until the first months of 2021, in that period last year there was a reduction of about 60 average MW in relation to the historical average. |
| · | In Furnas (+R$26 million): (i) Adjustments in the unit prices of supply contracts, linked to UHE Itumbiara (Law 13,182), of approximately 9%, resulting in an increase of R$23 million in the period; (ii) Start of new supply contracts in 2022, representing an increase of R$3 million. |
CCEE
| · | In Furnas (+R$91 million): (i) variation of the GSF in the period, which increased by approximately 6% (average of 89% in 2021 and 95% in 2022), despite the drop in the average PLD of R R$ 172.57 in 1Q21 to R$ 55.70 in 1Q22), and due to the lower energy sales in the period which, added to the off-order dispatch of UTE Santa Cruz, provided a greater amount of energy to be settled in comparison with the previous period and consequent higher result in the Short Therm market. |
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MARKETLETTER 1Q22 |
| · | At Eletronorte (+R$50 million): (i) the 29% increase in the post-GSF seasonal physical guarantee (1Q21 2,806MWavg X 1Q22 3,613MWavg); (ii) the 21% drop in energy sold through bilateral contracts (1Q21 2,620 MWavg X 1Q22 2,061 MWavg). |
| · | At CGT Eletrosul (+R$6 million): (i) increase in energy settled in 1Q22 compared to 1Q21, corresponding to an increase of R$10 million due to the seasonality adopted; offset by (ii) the 66% reduction in PLD (from R$ 173 / MWh in 1Q21 to R$ 58 / MWh in 1Q22), corresponding to a negative variation of R$ 4.3 million. |
Partially offset by:
| · | In the holding company (-R$87 million): due to the reduction in the sale of electricity imported from Uruguay, due to the lower demand for energy volume by the ONS due to the improvement in the country's hydrological situation. |
| · | At Chesf (-R$41 million): (i) variation in the average PLD from R$159.91/MWh to R$56.21/MWh); (ii) maintenance of the GSF injunction, equivalent to R$36 million, until May/2021, with no effect in 1Q22; (iii) reclassification of revenues from the plants of the Pindaí complex which, after the incorporation in March/2021, began to be recorded in the CCEE account, representing approximately R$ 12 million in 1Q22. |
OPERATION AND MAINTENANCE REVENUE - PLANTS RENEWED BY LAW 12.783/2013
| · | At Chesf (+R$46 million): (i) annual adjustment of the RAG of around 6.5%, in accordance with Ratifying Resolution No. 2,902/2021 (2021-2022 cycle), and a 3.97% increase in CFURH in the accumulated in Mar/22 compared to the accumulated in Mar/21. |
CONSTRUCTION REVENUE
| · | In Furnas (-R$6 million): (i) changes in investments made in the Furnas plants in the amount of -6.26 million and in Porto Colombia in the amount of -464 thousand. |
TRANSFER ITAIPU
| · | In the Holding (+R$ 8 million): (i) Variation of the tariff on which the monetary restatement is applied, calculated based on the Commercial Price and Industrial goods American price indices, levied on the financial asset of Itaipu that offset the exchange variation incident on said asset, recognized by interministerial decree 04/2018 of the MME and Ministry of Finance, which determines Itaipu's revenue. |
|
Table 05: TRANSMISSION REVENUE |
| Operating Transmission Revenue | 1Q22 | 1Q21 | % |
| Transmission Revenue | 4,235 | 3,801 | 11% |
| O&M Revenue - Renewed Lines | 1,215 | 1,038 | 17% |
| Operation and Maintenance revenue | 302 | 304 | -1% |
| Construction Revenue | 147 | 120 | 23% |
| Contractual Revenue - Transmission | 2,571 | 2,340 | 10% |
| Recurring Transmission Operating Revenue | |||
| Non-recurring events | |||
| Retroactive adjustment of the monthly tariff for energy transport from Itaipu Binacional | |||
| Recurring Transmission Operating Revenue | 4,235 | 3,801 | 11% |
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 9 |
MARKETLETTER 1Q22 |
ANALYSIS OF VARIATION 1Q21X1Q22
O&M REVENUE - RENEWED LINES LAW 12.783/13
| · | Chesf (+R$153 million): (i) publication of Aneel Homologatory Resolution 2,895/21, which includes, among other aspects, the readjustment of the 21/22 cycle, the recognition of RAP's of reinforcements without previously established revenue and improvements included by Aneel to the 2021/2022 cycle. |
Partially compensated by:
| · | Eletronorte (-R$62 million): (i) Reduction of R$192.8 million in billed revenue. Mainly impacted by the Tariff Review process (2021/2022), Resolution 2,595/21, which took place in July/21, in which it defined the reprofiling of contract 058/2001 revenue, reducing the financial component. On the other hand, (ii) an increase in revenue of R$ 130 million due to the decrease in the amortization reduction portion. There was a reduction in the average monthly amortization from R$ 123 million monthly to R$ 80 million monthly due to the Tariff Review process of contract 058/2001. |
| · | In Furnas (-R$28 million): (i) due to a decrease, in 2022, in the amount billed by facilities dedicated to Itaipu. This drop was due to the reduction in energy amounts from distributors, despite the tariff readjustment. Itaipu's revenue is the revenue from facilities dedicated to the transport of energy from Itaipu, whose payment is made by Shareholder Distributors. This revenue is defined as follows: amount of energy (defined in ANEEL's resolution) x Itaipu's TUST (defined in ANEEL's resolution), with the product being the revenue to be paid by each distributor. |
| · | CGT Eletrosul (-R$7 million): (i) Increase in revenue of R$9.3 million referring to revenue from new authorized facilities; (ii) gradual reduction of the RAP during the 2018/2023 cycle, resulting from the result of the periodic tariff review of concession 057/2001, resulting in -R$ 11.3 million in the period; (iii) Advance apportionment of -R$ 4.1 million. |
O&M REVENUE - EXPLORATION REGIME
| · | At Chesf (+R$ 3 million): (i) publication of REH Aneel 2,895/21, which includes, among other aspects, the readjustment of the 21/22 cycle (including the effects of the tariff review of concession contracts 006/2009, 007 /2005, 017/2009 and 018/2009), the recognition of RAP's of reinforcements without previously established revenue and improvements included by Aneel for the 2021/2022 cycle. |
Partially compensated by:
| · | In subsidiary Eletronorte (+R$46 million): (i) increase of R$52.5 million in billed revenue, due to the cycle adjustment (8%), mainly in the Estação, Linha Verde and Porto Velho contracts. Contracts that underwent review had an average adjustment of 16% (however, they have lower absolute revenue). On the other hand, (ii) a reduction in revenue of R$ 6.2 million due to the increase in the reduction in amortization. |
| · | At CGT Eletrosul (+R$30 million): (i) The variation is mainly due to: (i) acquisition of control of investee TSLE, contract 020/2012, R$19.0 million; acquisition of control of investee FOTE, contract 007/2014, R$ 2.7 million; (ii) readjustment of the RAP of concession 010/2005 due to the IGP-M of 37%, R$ 7.5 million. |
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| · | In Furnas (+R$12 million): (i) Increase due to the change of tariff cycles, based on current regulations (REH No. 2,959/21. Highlight for the Ibiúna-Bateias contract, which varied 34%, representing + R$ 15. million in billed RAP. |
CONSTRUCTION REVENUE – TRANSMISSION
| · | Chesf (+R$42 million): (i) increase in the volume of transmission projects being built by the company between the periods, mainly in contract 061/2001. These investments are linked to Aneel's authorizing resolutions and improvements to the existing system. |
| · | CGT Eletrosul (+R$10 million): (i) Increase in the volume of transmission projects being built by the company between the periods, from R$22.2 million in 1Q21 to R$27.5 million in 1Q22. These investments are linked to Aneel's authorizing resolutions and improvements to the existing system; (ii) R$5.2 million in 1Q22 referring to SPE TSLE. |
Partially offset by:
| · | Furnas (-R$15 million): (i) reduction in the volume of transmission projects being built by the company compared to the same period in 2021, mainly in contract 062/2001. |
CONTRACTUAL REVENUE – TRANSMISSION
| · | Chesf (+R$17 million): (i) increase in contractual assets related to contract 061/2001, due to the increase in the volume of transmission projects being built by the company between the periods. |
| · | CGT Eletrosul (+R$46 million): (i) The variation is mainly due to: i) increase in contractual assets related to contract 057/2001, due to the increase in the volume of transmission projects being built by the company between the periods, R$ 8 million; (ii) acquisition of control of investee TSLE, concession agreement 020/2012 (TSLE), R$34 million; (iii) acquisition of control of investee FOTE, concession agreement 007/2014, R$8 million; and reduction of the IGPM in purchase with the same period in 2021 (6.18% Dec/20-Feb/21 and 4.59% Dec/21-Feb/22), with effects mainly on contract 010/2005; R$ - 4 million. |
| · | At Furnas (+R$41 million): (i) increase in the balance of contractual assets related to contract 062/2001, as a result of the adjustment made in September 2021, as a result of re-estimates of progress in the execution of transmission projects in progress and of ANEEL authorizations for RAPs for completed transmission projects. |
|
Table 06: OTHER OPERATING REVENUE |
| Operating Income | 1Q22 | 1Q21 | % | |
| Others Revenues | 202 | 173 | 17% | |
| Non-recurring events | ||||
| Revenue reversal energy interconnection between Brazil and Uruguay | 0 | 8 | 100% | |
| Other recurring income | 202 | 181 | 11% | |
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MARKETLETTER 1Q22 |
OTHERS REVENUES
ANALYSIS OF VARIATION 1Q21X1Q22
| · | At Eletronorte (+R$21 million): (i) increase of (a) R$ 10.3 million in Proinfa; (b) R$ 5.3 million in CDE; (c) R$ 4.3 million in Operation and Maintenance services; (d) R$ 2.9 million in leases and rentals, partially offset by (ii) a R$4.4 million reduction in other revenues. |
· In the holding (+R$13 million): higher revenue from the provision of various services.
Partially offset by:
| · | CGT Eletrosul (-R$ 3 million): (i) in 1Q21 there was revenue from the sale of studies and projects in the transmission segment in the amount of R$ 3.1 million, which did not occur in 1Q22; reduction partially offset by (ii) the entry, in 1Q22, of new fiber optic sharing service contracts, in the amount of R$ 0.2 million. |
OPERATIONAL EXPENSES
|
Table 07: OPERATIONAL COSTS AND EXPENSES |
| Operational costs | 1Q22 | 1Q21 | % |
| Energy purchased for resale | -483 | -499 | -3% |
| Charges on use of the electricity grid | -621 | -456 | 36% |
| Fuel for production electric power | -768 | -537 | 43% |
| Construction | -195 | -149 | 31% |
| Personnel, Material, Services and Others | -1,965 | -2,034 | -3% |
| Depreciation and amortization | -645 | -458 | 41% |
| Operating Provisions | |||
| Total Operating Costs and Expenses | -2,070 | -1,105 | 87% |
| Non-recurring events | -6,748 | -5,238 | 29% |
| (-) Non-recurring PMSO events | |||
| (-) Non-recurring provisions | 49 | 101 | -52% |
| (-) Generation Construction | 1,805 | 991 | 82% |
| Total Recurring Operating Costs and Expenses | -4,890 | -4,137 | 18% |
ANALYSIS OF VARIATION 1Q21X1Q22
ENERGY PURCHASED FOR RESALE
| · | In the holding company (-R$85 million): due to the reduction in energy imports from Uruguay, due to the lower demand for energy volume by the ONS due to the improvement in the country's hydrological situation. |
Partially offset by:
| · | In Furnas (+R$59 million): (i) price readjustment of the current purchase agreements of approximately 22% in the period, representing an increase of approximately R$48 million; (ii) Purchases made in 1Q22 (taking advantage of market opportunities, including incentivized energy), without comparison in 2021, totaling an increase of R$ 36 million for the period; (iii) difference in purchases in the Short-Term Market, since, in the months of 1Q22, the results were positive, therefore, there was no purchase in the MCP, while in the 1Q21, although the results were positive in the MCP, in the first two months of 2021 Furnas presented a total negative result of R$ -17 million, as there were amounts withheld at the CCEE due to the judicialization of the sector and such results allowed the use of this credit at the time; (iv) remaining difference (-R$ 8 million) is due to Cofins/Pasep credits. |
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| · | At Eletronorte (+R$14 million): (i) increase in the costs of purchase contracts for PIEs in Amazonas, R$56 million of which resulted from the contractual readjustment based on the IGP-M; (ii) start of the TEMPO power purchase agreement, totaling R$5 million; (iii) readjustment of the SINOP purchase agreement, generating an increase of R$ 117 thousand; (iv) at MCP, the difference was R$802 thousand; (iii) increase in taxes (PIS, COFINS and PASEP) and leasing recoverable by R$ 48 million. |
FUEL FOR ELECTRICITY PRODUCTION
| · | In Furnas (+R$193 million): difference in the dispatch of the Santa Cruz plant, which in 1Q22 had a generation of 557,686 MWh and in the same period of 2021 a generation of 272,552 MWh, representing an increase of approximately 285,000 MWh. |
| · | At Eletronorte (+R$42 million): (i) R$80.4 million increase in Ship or Pay and Take or Pay accessory expenses, as a result of the 15.25% reduction in natural gas consumption, thus reflecting in the increase, since the volume of natural gas that was no longer consumed and billed as a purchase of natural gas, started to be charged as an ancillary expense, due to the obligation of minimum consumption of contracted natural gas; (ii) a reduction of R$ 19.8 million in expenses with the purchase of natural gas, equivalent to 3.6%, despite the price of natural gas having suffered the average contractual readjustment of 11.09%, mainly due to the reduction in 46.63 % in the production of energy at UTE Mauá 3 caused by the plant to remain operating at the inflexibility of 50% due to the increase in the reservoirs of the UHEs of the Submarket of the North Region, causing the dispatches of the UHE to be prioritized compared to the plants thermal plants that have inflexibility in their contracts; (iii) reduction of R$ 19 million referring to the ICMS refund on the sales of energy produced by UTE Mauá 3, due to the consumption of natural gas. The reversal occurs because the sale is outside the state of AM and is exempt from ICMS; |
Partially offset by:
| · | At CGTEletrosul (-R$9 million): (i) variation in fuel cost (a) consumption, in 1Q21, of 380 thousand tons of coal and, in 1Q22, 250 thousand tons, negative variation of 34%, mainly due to downtime for maintenance of the generator set that took place in January 2022, offset by (b) an increase in the price of mineral coal between the periods, which had an impact of 17%. |
Charges on use of the electricity grid
| · | As a result of the increase in the tariff for the transmission and distribution system, the highlights being Eletronorte (+R$24 million) and Eletronuclear (+R$10 million). |
CONSTRUCTION
| · | At Chesf (+R$ 87 million): (i) expenses incurred (appropriated and allocated) in transmission investment events in progress. In addition, the company obtained a negative construction margin (when compared to revenue from transmission construction), due to reestimations of the progress in the execution of transmission projects in progress (including due to delays in works) and the identification of investments made still without authorized RAPs, mainly related to contract 061/2001. |
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MARKETLETTER 1Q22 |
| · | At CGT Eletrosul (+R$10 million): (i) Increase in the volume of transmission projects being built by the company between the periods, from R$22.2 million in 1Q21 to R$27.5 million in 1Q22. These investments are linked to Aneel's authorizing resolutions and improvements to the existing system. (ii) R$ 5.2 million in 1Q22 referring to SPE TSLE. |
Partially offset by:
| · | In Furnas (-R$20 million): (i) changes in investments in generation and transmission contracts in the period. Construction expenses in Generation in 1Q21 totaled R$ -8.79 million and in 1Q22 the amount was R$ -3.42 million. As for the transmission, the amount referring to contract 062/01 in 2021 was R$ -30.13 million and in 2022 it was R$ -14.86 million. In the other contracts, the values for 2021 and 2022 totaled -524 thousand and -717 thousand, respectively. |
|
Table 08: PERSONNEL, MATERIAL, SERVICES AND OTHER |
| Personnel, Material, Services and Others | 1Q22 | 1Q21 | % | |
| Personnel | -1,183 | -1,247 | -5% | |
| Material | -56 | -60 | -6% | |
| Services | -423 | -379 | 12% | |
| Others | -302 | -349 | -13% | |
| PMSO total | -1,965 | -2,034 | -3,4% | |
| Non-Recurring Items | ||||
| Incentive Plans (PAE, PDC) | -2 | -2 | 87% | |
| Eletronorte Dismissal | 0 | 64 | 0% | |
| Indemnity Allowance Health Plan | 15 | 0 | 0% | |
| Reversal contributions to foundations - CVM 600 adjustment | -7 | -8 | 94% | |
| CGT Eletrosul Retroactive Tx of ADM ELOSAUDE | 0 | 2 | 0% | |
| Furnas labor claims | 17 | 0 | 0% | |
| Generator set rental (emergency assistance to Amapá) | 0 | 28 | 0% | |
| Recovery of expenses (Commissions Debentures transferred to Liabilities) | 0 | -8 | 0% | |
| AmazGT gain from alienation | 0 | -3 | 0% | |
| Legal costs (except labor) | 20 | 0 | 0% | |
| Asset Write-off (Energisa Acre) | 6 | 0 | 0% | |
| PMSO Recorrente | -1,916 | -1,933 | -1% | |
Análise da variação 1Q21X1Q22
personnel
| · | readjustment of 6.76% referring to the Collective Bargaining Agreement ACT 2021-2022, applied from November 2021 (date of the agreement), but retroactive to May 2021 (base date of the ACT), with repercussions on wages, benefits , 13th salary, among others. |
| · | Payment of a non-recurring indemnity allowance of approximately R$ 15 million related to the change in the conditions of the health plan and an increase in the co-participation of employees of the companies, with the exception of Chesf (paid in April) and Eletronuclear (change not yet effected). These expenses represented R$10.2 million at Eletronorte, R$ 2.2 million at Holding, R$ 4.1 million at CGT and a reversal in Furnas of R$1.7 million, as Furnas had already posted this expense in December of 2021 in the amount of BRL 15.7 million. |
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 14 |
MARKETLETTER 1Q22 |
compensated by:
| · | reduction of expenses between 1Q22 and 1Q21 as a result of the change in the conditions of the Health plan mentioned above, with an increase in the co-payment of monthly fees by employees and adjustments resulting from this process, reducing the expenses of the Eletrobras companies; |
| · | At Eletronorte (-R$69 million): (i) Reduction of R$87.6 million in expenses with: (a) FGTS, of R$52.5 million and Prior Notice, of R$13.7 million, both due to the dismissals that took place in 2021; (c) reduction of vacations, of R$ 10.5 million, due to the fact that, in 2021, it was higher due to dismissals (R$ 64 million in 1Q21 and R$ 270 thousand in 1Q22), in addition to the impact arising from of the normalization of vacation pay, which had been reduced in 2020 due to initiatives arising from the pandemic. |
| · | Furnas (-R$57 million): (i) reversal of part of the unpaid PLR/2020 provisioned balance (R$56.9 million); (ii) decrease of R$ 1.9 million in Labor Claims, partially offset by (iii) increase in the Additional items for length of service (R$ 4.1 million) influenced by the last salary adjustment (ACT21 - IPCA 6.7%), and Dangerous work (R$ 3.8 million) due to the return to face-to-face activities; and (iv) Reduction of R$ -7.9 million in the item Consumption of activities, causing an increase in Personnel, since less expenses were directed to investment. |
Partially offset by:
| · | Chesf (+R$35 million): (i) increase in the cost of interest due to the actuarial liability of the CD and BD benefit plans +R$36.8 million, partially offset by (ii) the reduction in expenses with medical/hospital expenses (co-payment) -R$ 1.4 million (iii) reduction in expenses with food/education/transport assistance - R$ 1.2 million; (iv) greater allocation of expenses in investment activity -R$ 15.7 million in the period. |
| · | At CGT Eletrosul (+R$8 million): (i) reduction in the allocation of personnel in investment in 1Q22 by R$ 4.4 million compared to 1Q21, which increases personnel expenses (ii) increase in the INSS ceiling by 10.1%, as of Jan/22, whose impact was R$1.7 million in 1Q22; (iii) an increase of R$ 1.8 million in hazardous work, overtime and on-call, due to scheduled maintenance carried out in 1Q22, mainly related to the scheduled stoppage of the Candiota III plant. |
Material
| · | At CGT Eletrosul (-R$11 million): (i) reduction in consumption of inputs by UTE Candiota III given the annual scheduled stoppage that took place from 01/04/22 to 02/16/22, especially at Virgin Cal, which had a 54% reduction in consumption in tons or R$9.1 million, partially offset by (ii) a 22% increase in consumption of other materials, especially parts and equipment used in the maintenance of the same plant; (iii) Reconciliation between PIS/Cofins credit accounts in 1Q21, which reduced the recorded amount of the credit, in 1Q21, by R$0.1 million, against R$4.7 million in 1Q22. |
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MARKETLETTER 1Q22 |
Partially offset by:
| · | At Eletronuclear (+R$7 million): (i) the usual consumption of materials outside the shutdown period may vary according to the type of material consumed in the maintenance of the plants, without relevant facts. |
ServiCES
| · | At CGT Eletrosul (+R$26 million): (i) Operational maintenance services were R$29.0 million higher in 1Q22 when compared to 1Q21, especially due to the annual maintenance of UTE Candiota III, carried out in 1Q22, which represents about 85% of this increase. The remainder is related to maintenance at HPP São Domingos, Aerogenerators and Substation Equipment. This increase was offset by: (ii) a R$3.2 million reduction in legal consulting services. |
| · | In Furnas (+R$19 million): (i) R$19.14 million increase in Medical, Hospital and Dental Care, due to the damming of expenses related to the use of the health plan due to the pandemic, where the elective surgeries were not being authorized and use of the plan dropped during the critical period of the pandemic, nor were occupational exams being performed. |
| · | At Chesf (+R$7 million): (i) increase in maintenance services for operating assets [+R$2.2 million]; (ii) increase in cleaning and maintenance services for properties and facilities [+R$ 3.9 million]; (iii) increase in cargo transportation [+R$ 1.6 million]; (iv) increase in surveillance services [+R$1.9 million]; on the other hand, we had: (v) reduction in expenses with hired labor [-R$ 2.3 million] due to the improvement in processes. |
Partially offset by:
| · | At Eletronorte (-R$11 million): (i) reduction of R$25.4 million in expenses with: (a) PASEP/CONFINS credits (reducing accounts), of R$19 million, since in 2021 there were reversal, no counterpart in 2022; (b) medical, hospital and dental care, of R$4.5 million, as the amounts are being recorded in the Personnel group; (c) maintenance of right-of-way and access roads, in the amount of R$1.9 million. On the other hand, there was: (ii) an increase of R$14.1 million in: (a) maintenance of operating assets, of R$6.1 million; (b) maintenance of office equipment, of R$4.3 million; (c) driver service, of R$3.7 million, due to the gradual resumption of contracts due to the return of on-site activities. |
OTHERS
| · | In the Holding (-R$38 million): (i) lower tax expense, as IR was paid in 1Q21 resulting from the 2015 IR sentence of R$42 million, which did not occur in 1Q22; (ii) an increase of R$ 11 million related to the contribution to Cepel. |
| · | At Eletronorte (-R$46 million): (i) reduction of (a) Rent of Generator Sets: R$ 29 million (Emergency assistance to the state of Amapá); and (b) Write-off of assets: R$ 28.3 million (Energisa Acre), both occurred in 2021 with no counterpart in 2022, partially offset by (ii) an increase of R$ 11 million in: (a) Recovery of expenses ( reducing account): R$ 3.7 million; (b) Procedural/administrative fine of R$3.3 million referring to an administrative proceeding with the CCEE; (c) Rental of real estate for commercial purposes, in the amount of R$2.4 million; and (d) Insurance - facilities, equipment and inventories: R$1.7 million. |
| · | At Chesf (+R$7 million): (i) reduction in expenses with indemnities, losses and damages by (-R$39.5 million); partially offset by (ii) increase in taxes (mainly IPTU) (+R$ 6.4 million); (v) increase in outpatient and occupational health expenses (+R$ 4.1 million); (vi) recording of write-offs for conversion to payments in guarantees (+R$9.2 million), with no counterpart in 2021. |
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 16 |
MARKETLETTER 1Q22 |
Partially offset by:
| · | In Furnas (+R$22 million): (i) impact in 1Q22 in the Indemnity, losses and damages item in the amount of R$19.6 million due to the lawsuit filed by CAEFE, referring to the collection of administrative expenses related to an agreement signed between the parties, including attorneys' fees and interest/currency adjustment; (ii) increase in the item Taxes and Fees - IPTU in the amount of R$ 1.42 million; partially offset by (iv) reduction in amounts paid as "Contribution to CEPEL" in 1Q22, compared to 1Q21 (approximately R$ 2 million); (ii) Donation to schools and road maintenance, with a reduction of R$ 1.4 million. |
| · | At CGT Eletrosul (+R$13 million): (i) recovery of expenses in 1Q22 were R$ 4.6 million lower than in 1Q21, especially due to the recovery of R$ 8.1 million referring to debenture commissions to be amortized that occurred in 1Q21; (ii) In 1Q22, there were expenses of R$ 5.4 million, referring to the emergency that occurred in the assets of the SPE TSLE and which did not occur in 1Q21; (iii) indemnity for damages and legal costs were R$0.9 million higher in 1Q22 (iv) Insurance expenses were R$1.6 million higher in 1Q22 when compared to 1Q21. |
DEPRECIATION AND AMORTIZATION
|
Table 09: Depreciation and amortization |
| Depreciation and amortization | 1Q22 | 1Q21 | % |
| Depreciation and amortization | -645 | -458 | 40.8% |
| Non-Recurring Events | |||
| Recurring Depreciation and Amortization | -645 | -458 | 40.8% |
OPERATING PROVISIONS
Table 10: Operating Provisions
| Operating Provisions | 1Q22 | 1Q21 | % |
| Operating Provisions/Reversals | -2,070 | -1,105 | 87% |
| Non-recurring provisions/reversals | |||
| Provision for Disputes | -372 | -497 | -25% |
| Compulsory Loan | -300 | -435 | -31% |
| Allowance for PCLD Prospective credit loss estimate (CPC 48) | -1,057 | 0 | - |
| Provision for actuarial liabilities | -27 | -14 | 97% |
| Provision for investment losses | -16 | -15 | 6% |
| RAP adjustment portion (g) | 0 | 0 | - |
| Long-term asset impairment | 0 | 0 | - |
| Provision/(Reversal) for Implementation of Shares - Compulsory Loan | -11 | 7 | -265% |
| Provision for judicial deposits | 0 | 0 | - |
| Provision for the reduction of Fuel inventories | 0 | 0 | - |
| ANEEL Provision - CCC | 0 | -31 | -100% |
| Provision for unsecured liabilities | -23 | 0 | - |
| Candiota III Plant - Inflexibility | 0 | 0 | - |
| Candiota III Plant - Coal | 0 | -6 | -100% |
| Non-recurring provisions/reversals | -1,805 | -991 | 82% |
| Recurring Provisions/Reversals | |||
| Warranties | 3 | 18 | -83% |
| PCLD (excluding PCLD Prospective Estimate of Prospective Credit Loss (CPC 48)) | -191 | -99 | 92% |
| GAG improvement | -75 | -51 | 47% |
| Others | -2 | 19 | -111% |
| Recurring provisions/reversals | -265 | -114 | 133% |
The positive values in the table above mean reversal of provision.
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 17 |
MARKETLETTER 1Q22 |
VARIATION ANALYSIS 1Q21X1Q22
The variation is mainly explained by:
| · | Provision for Litigation of R$607 million in 1Q22: (a) In the Holding, provision for litigation of R$286 million, highlighting the R$300 million provision for compulsory loan lawsuits; and (b) in Furnas, R$176 million, with emphasis on Environmental Contingency, with the change in the risk classification to "probable" of a lawsuit, in the amount of R$64 million, referring to the Municipality of Capitólio, Regulatory Contingency, related to ANEEL's tax assessment notice (R$ +27 million); and Civil Contingency, in the process of Acciona Concessões Rodovia do Aço S.A., for indemnity for material damages (R$ +22.9 million); |
| · | Provision for Allowance for Consumers and Resellers, in the amount of R$896 million, with emphasis on the increase in the provision of R$867 million at Eletronorte, referring to the delinquency of Amazonas Energia with electric energy debts from independent energy producers (PIE). The total amount receivable from the customer Amazonas Energia until 03/31/2022 with Eletronorte is R$ 2.6 billion, of which R$ 547 million is overdue and unpaid debt. Of the total accounts receivable, the amount of R$1.9 billion is provisioned on 03/31/2022. |
| · | Provision for Allowance for Financing and Loans, in the amount of R$351 million, with emphasis on the provision of R$359 million, referring to the delinquency of Amazonas Energia with financial debts, of which R$169 million of Overdue Debts and R$190 million of Estimate (Prospective CPC 48). The total amount provisioned until 03/31/2022 of Amazonas Energia's financial debt with the holding company is R$ 1.6 billion, with the total balance of the financial debt until 3/31/22 of R$ 4.6 billion. |
| · | Gag Melhoria: highlight for Chesf of R$51 million, referring to investments in renovated plants and Furnas, with R$24 million. |
SHAREHOLDINGS
|
|
|||
| Shareholdings | 1Q22 | 1Q21 | % |
| Shareholdings | 552 | 430 | 28% |
| Non-recurring adjustments | |||
| Recurring shareholdings | 552 | 430 | 28% |
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 18 |
MARKETLETTER 1Q22 |
VARIATION ANALYSIS 1Q21X1Q22
SHAREHOLDINGS
| · | The main highlights were: (i) Madeira Energia S.A.: negative variation of R$220 million in 1Q21 against a reduction to zero considering that the negative effects due to the arbitration were already addressed by Eletrobras in 4Q21; Partially offset by: (ii) worsening results in affiliates, highlighting: (a) CEEE (-R$28 million), with a record of R$39 million at CEEE-GT in 1Q21 against a record of R$11 million at CEEE-G in 1Q22; and (b) Cemar (-R$22 million). (iii) in SPE Norte Energia (-R$19 million), mainly as a result of the impact of the increase in interest rates. |
FINANCIAL RESULT
Table 12: financial income and expenses
| Financial Result | 1Q22 | 1Q21 | % |
| Financial income | |||
| Interest income, commissions and fees | 199 | 139 | 44% |
| Revenue from financial investments | 342 | 91 | 276% |
| Moratorium addition on electricity | 113 | 128 | -12% |
| Net currency updates | -223 | 326 | -168% |
| Net exchange rate variations | 1,130 | -601 | -288% |
| Net derivative gains and losses | -79 | 285 | -128% |
| Financial Expenses | |||
| Debt Charges | -821 | -493 | 67% |
| Lease Charges | -141 | -114 | 23% |
| Charges on shareholder resources | -2 | -143 | -98% |
| Other net financial income and expenses | -39 | -201 | -80% |
| Financial Result | 478 | -584 | -182% |
| Non-recurring adjustments | |||
| (-) Company Revenue distributors | -163 | -81 | 101% |
| (-) Regularization of tax credits/Fine and Infraction Notices | 0 | 63 | -100% |
| (-) Monetary update. company compulsory | 362 | 56 | 543% |
| Financial expense related to the write-off of the customer to adjust the customer's balance related to the renegotiation of the CEA. | -34 | 0 | - |
| Financial Charges | 0 | 6 | -100% |
| Recurring Financial Result | 643 | -540 | -219% |
FINANCIAL RESULT:
VARIATION ANALYSIS 1Q21X1Q22
In 1Q22, the financial result showed a positive variation, with a negative result of R$ 584 million in 1Q21 and a positive result of R$ 429 million in 1Q22. The main variations were:
| · | The net exchange variation, which went from a negative net variation of R$601 million in 1Q21 to a positive net exchange variation of R$1,130 million in 1Q22, mainly due to the variation in the debt balance in dollars and the variation in the dollar in the respective periods . In 1Q21, there was a devaluation of the real against the dollar when compared to the immediately previous quarter (4Q20), from R$5.20 to R$5.70 and, against the Euro, from R$6.38 to R$ 6.69, while in 1Q22 the opposite occurred, where the appreciation of the real was observed, with the quotation against the dollar, changing from R$ 5.58 to R$ 4.74 and against the Euro of R$ 6.32 to BRL 5.26. |
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 19 |
MARKETLETTER 1Q22 |
| · | Income from financial investments, which increased from R$91 million in 1Q21 to R$342 million in 1Q22, due to the increase in the average volume of the cash balance in the period, together with a higher profitability of the portfolio's investments, mainly as a result of the increase in of interest rates. |
Partially offset by:
| · | Net monetary restatements, which went from a positive net variation of R$326 million in 1Q21 to a negative net variation of R$228 million in 1Q22. In the Holding, the result of net monetary restatements was impacted by the increase in passive monetary restatements related to the compulsory loan, which went from R$56 million in 1Q21 to R$362 million in 1Q22, mainly due to the Selic variation and the increase in the stock of accrued provision, mainly due to the change in the parameters of the provisioning criteria as of 3Q21. At Chesf, with the recognition of losses from customers Ligas do Brasil, Rio Doce Manganês, Energisa Sergipe and Equatorial Alagoas in 2021, the company stopped recording the active update of the balance of overdue invoices, which totaled R$19.7 million in transactions in 1Q21 . There was also the record of lower updating of judicial deposits (-R$ 18.0 million) between the base dates. |
| · | At Eletronorte: (i) net gain of R$ 285 million, in 1Q21, against a net expense of R$ 79 million in 1Q22, representing a reduction of R$ 364 million, with derivatives, due to the variation of the LME - London Metal Exchange in the period. The contract with Albras provides for an energy sale price plus the payment of a premium, which varies according to the aluminum price on the LME, quoted in US dollars. In 2022, the LME reached the maximum price stipulated in the contract and, due to the negative variation of the dollar, losses with derivatives were recorded. |
INCOME TAX
| Income tax and social contribution | 1Q22 | 1Q21 | % |
| Current income tax and social contribution | -789 | -972 | -19% |
| Deferred income tax and social contribution | -80 | -235 | -66% |
| Total income tax and social contribution | -869 | -1,207 | -28% |
| Non-Recurring Events | |||
| (-) Non-recurring Eletrosul adjustment | 26 | 9 | 189% |
| Recurring income tax and social contribution | -843 | -1,198 | -30% |
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 20 |
MARKETLETTER 1Q22 |
1.2 EBITDA Consolidated
Table 13: EBITDA Detail
| EBITDA | 2022 | 2021 | % |
| Result of the Exercise | 2,716 | 1,609 | 69% |
| + Provision for Income Tax and Social Contribution | 869 | 1,207 | -28% |
| + Financial Result | -478 | 584 | -182% |
| + Amortization and Depreciation | 645 | 458 | 41% |
| = EBITDA | 3,752 | 3,858 | -3% |
| ADJUSTMENTS NON-RECURRING EVENTS | |||
| Other Income and Expenses | -121 | 0 | - |
| Reversal of Revenue energy interconnection between Brazil and Uruguay | 0 | 8 | -100% |
| Reversão de Penalidades por indisponibildiade - CCEAR - CGT Eletrosul | -65 | 0 | - |
| Variation corresponding to the increase in Eletrosul's retroactive Supply revenue | 8 | 0 | - |
| Inflexibility Reimbursement 2020 Candiota III (revenue deductions) | 0 | -7 | 100% |
| Incentive Plans (PAE, PDC) | -2 | -2 | -13% |
| Eletronorte resignation | 0 | 64 | -100% |
| Indemnity Allowance Health Plan | 15 | 0 | - |
| Foundations contributions reversal - CVM 600 adjustment | -7 | -8 | -6% |
| CGT Eletrosul Retroativo Tx by ADM ELOSAUDE | 0 | 2 | -100% |
| Furnas labor claims | 17 | 0 | - |
| Generator set rental (emergency assistance to Amapá) | 0 | 28 | -100% |
| Recovery of expenses (Commissions Debentures transferred to Liabilities) | 0 | -8 | -100% |
| Amazonas GT gain from alienation | 0 | -3 | -100% |
| Indemnities, losses and damages: CAEFE (2022) Furnas | 20 | 0 | - |
| Legal costs (except labor) | 6 | 0 | - |
| Asset Write-off (Energisa Acre) | 0 | 29 | -100% |
| Provision for Disputes | 372 | 497 | -25% |
| Compulsory Loan | 300 | 435 | -31% |
| Allowance for Credit Loss Estimate (CPC 48) | 1,057 | 0 | - |
| Provision for actuarial liabilities | 27 | 14 | 97% |
| Provision for investment losses | 16 | 15 | 6% |
| Provision/(Reversal) for Implementation of Shares - Compulsory Loan | 11 | -7 | -265% |
| Provision for unsecured liabilities | 23 | 0 | - |
| ANEEL Provision - CCC | 0 | 31 | -100% |
| Candiota III Plant - Coal | 0 | 6 | -100% |
| = EBITDA RECURRING | 5,428 | 4,952 | 9.6% |
Note: As of 2019, the Company started to consider, in its recurring EBITDA, the RBSE revenue from the extended concessions in light of Law 12,783/2013, in order to maintain a protocol similar to the debenture covenants issued in 2019. In addition, considering the privatization of the distributors concluded in April 2019, and these operations are no longer part of its core business, the company treated as non-recurring the material effects of financial income, expenses, PL reversals and allowance for loan losses. (CPC 48) of loans contracted with them before or as a result of the privatization process, although revenues and eventual provisions arising from contracted loans may continue to affect the company's accounting results until their complete depletion. However, they were treated as recurring allowances for outstanding outstanding debt of distributors, as well as debts related to energy supply, with the exception, therefore, of provisions for prospective allowances (CPC 48) for energy supply.
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 21 |
MARKETLETTER 1Q22 |
Recurring Cash Generation with Adjustment of the Transmission Regulatory RAP
| 1Q22 | 1Q21 | |
| 1. EBITDA Recurrent | 5,428 | 4,952 |
| 2. (-) Total Corporate Revenue from Transmission | 4,235 | 3,801 |
| O&M Revenue | 1,215 | 1,038 |
| Construction Revenue | 302 | 304 |
| Finance - Return on Investment - RBSE | 147 | 120 |
| Contractual Revenue Transmission | 2,571 | 2,340 |
| 3. (+) Total Payment of Allowed Annual Revenue | 3,708 | 2,895 |
| Revenue of RAP and indemnities | 2,494 | 1,857 |
| O & M Revenue | 1,215 | 1,038 |
| 4 = 1 - 2 + 3 : Approximate Cash Generation | 4,901 | 4,046 |
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 22 |
MARKETLETTER 1Q22 |
1.3 Consolidated Results by Continued Operations segment:
|
Table 14: FINANCIAL STATEMENT BY SEGMENT – R$ THOUSAND |
| 2022 | |||||
|
Finacial Statement by Segment |
Administration | Generation | Transmission | Eliminations | Total |
| Net Operating Revenue | 43,612 | 5,441,185 | 3,824,629 | (128,108) | 9,181,318 |
| Operating Costs | (31,824) | (3,104,043) | (684,043) | 125,033 | (3,694,877) |
| Operating Expenses | (2,683,891) | (200,179) | (171,868) | 3,075 | (3,052,863) |
| Operating Income Before Financial Result | (2,672,103) | 2,136,963 | 2,968,718 | - | 2,433,578 |
| Financial Result | 478,188 | ||||
| Result of Equity Interests | 552,441 | ||||
| Other income and expenses | 121,033 | ||||
| Income tax and social contribution | (868,866) | ||||
| Net income | 2,716,374 | ||||
| 2021 | |||||
|
Finacia Statement by Segment |
Administration | Generation | Transmission | Eliminations | Total |
| Net Operating Revenue | 66,753 | 4,921,246 | 3,465,642 | (245,215) | 8,208,426 |
| Operating Costs | (119,357) | (2,486,582) | (574,619) | 241,951 | (2,938,607) |
| Operating Expenses | (1,960,292) | (179,085) | (163,505) | 3,264 | (2,299,618) |
| Operating Income Before Financial Result | (2,012,896) | 2,255,579 | 2,727,518 | 2,970,201 | |
| Financial Result | (583,771) | ||||
| Result of Equity Interests | 430,075 | ||||
| Income tax and social contribution | (1,207,366) | ||||
| Net income (loss) for the period | 1,609,139 | ||||
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1.3.1. INDEBTEDNESS AND RECEIVABLES
|
Table 15: GROSS DEBT AND NET DEBT |
| 03/31/2021 | |
| Gross Debt - R$ million | 41,639 |
| (-) (Cash and cash equivalents + marketable securities) | 15,454 |
| (-) Financing Receivable | 5,195 |
| (-) Net balance of Itaipu Financial Assets1 | 435 |
| Net debt | 20,554 |
1Explanatory Note 18b to the Financial Statements.
 |
Total Consolidated Gross Debt without RGR with Debentures – R$ billion |
|
Gross Parent Debt without RGR – R$ billion |
| 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | After 2027 | Total (R$ million) | |
| Amortization with RGR and Debentures | 7.0 | 4.8 | 6.6 | 4.3 | 4.2 | 1.7 | 13.0 | 41.6 |
|
Table 17: Foreign Exchange Exposure | ||
| Asset | US$ million | % |
| Itaipu Loans Receivables | 99,081 | 52% |
| Itaipu Financial Asset | 91,816 | 48% |
| TOTAL | 190,897 | 100% |
| Passivo* | US$ thousand | % |
| Bônus 2025 - Eletrobras | 499,179 | 34% |
| Bônus 2030 - Eletrobras | 741,305 | 51% |
| Others | 224,698 | 15% |
| TOTAL | 1,465,182 | 100% |
| 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | After 2027 | TOTAL | |
| Asset (US$ million) | 145.76 | 43.64 | 1.49 | 0.00 | 0.00 | 0.00 | 0.00 | 190.90 |
| Liabilities (US$ million) | 33.56 | 46.07 | 19.51 | 518.69 | 19.51 | 19.51 | 808.32 | 1,465.18 |
| Foreign Exchange Exposure | 112.20 | -2.43 | -18.02 | -518.69 | -19.51 | -19.51 | -808.32 | -1,274.28 |
Due to the atypical scenario and potentially unpredictable characteristics, it is not possible to accurately predict the scenarios that could materialize in the coming months in the company's operations.
* In the balance of Bonuses 2030 and 2025, there is an accounting effect on the deferral of expenses with repurchase of the 2021 bonus due to the operation carried out in February.
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Ratings
|
Table 18: Ratings |
| Agency | National Classification / Perspective | Last Report |
| Moody’s Escala Global | “Ba2”: / Estable | 04/26/2022 |
| Moody’s SACP | “Ba2”: / Estable | 04/26/2022 |
| Fitch - Issuer Default Ratings (Foreign Currency) | “BB-”: / Negativa | 06/02/2021 |
| Fitch - Issuer Default Ratings (Local Currency) | “BB-”: / Negativa | 06/02/2021 |
| S&P LT Local Currency – Local Currency | brAAA/ Estable | 04/13/2022 |
| S&P Issuer Credit Rating – Foreign Currency | BB-/ Estable l | 04/13/2022 |
*CreditWatch
FINANCING AND LOANS GRANTED (RECEIVABLES)
|
Total Consolidated Loans and Financing Receivables – R$ billion |
Does not include: receivable from Itaipu's financial assets of R$435 million and allowance for loan losses of R$1,501 million and current charges.
|
Company and Financing receivable Parent company - R$ billion |
| Receivables Projection | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | after 2027 | TOTAL |
| Parent Company | 1.5 | 1.4 | 1.1 | 0.4 | 0.4 | 0.3 | 2.2 | 7.3 |
Does not include charges and PCLD.
In the process of privatization of distributors, CCC credits were assigned, which depended on Aneel's analysis and inspection. These credits are activated in the Company's Financial Statements, as of 12/31/2021, in two accounts, namely Right of Reimbursement and Financing receivable, according to Explanatory Notes 13 and 9 of 1Q22, and detailed below:
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REFUND RIGHT
At a meeting held on September 28, 2021, the board of Aneel deliberated on the CCC inspection processes, still pending analysis, according to the inspection period of Ceron, Eletroacre and Boa Vista.
Thus, all eight inspection processes (first and second periods of the privatized distributors that were called Amazonas D, Eletroacre, Ceron and Boa Vista) were closed and the payment conditions were defined in the amount of R$ 2,670.5 million, updated by the IPCA of Aug/2021, which must be reimbursed by CCC to Eletrobras, as holder of the assumed credits of these distributors. This amount will be received in 60 months, in equal installments updated by the IPCA, with the first payment to be made in January 2022.
As for "inefficiency" credits, Law No. 14,182/2021 increased the scope of "inefficiency" by 14 months, from Jul/09 - Apr/16 (Law 13,299/2016) to Jul/09 - Jun/17, whose positive effect has already been reflected in the 3rd ITR of 2021. Additionally, CNPE Resolution No. 15/2021, later amended by CNPE Resolution No. 30/2021, issued on December 21, 2021, which defined the grant amount to be paid by Eletrobras for the new generation concessions in the company's capitalization process, informed the value of R$ 2,906,498,547.37 of "inefficiency" credits from Amazonas and Boa Vista, updated by the IPCA expectation until Dec/21, which will reduce the amount of grant to be paid by Eletrobras. As the CNPE updated the “inefficiency” credits by IPCA, Eletrobras has already made the adjustment in the 3rd ITR, changing the update of the “inefficiency” credits from Selic to IPCA. Thus, the positive impact of the 14-month increase in the coverage of “inefficiency” credits was partially neutralized by the negative impact of the exchange of the adjustment of these credits from Selic to IPCA, leaving a positive net value of R$ 341.5 million (position Sep/21), already recorded in 3Q21.
However, as can be seen in the two CNPE Resolutions, the amount of the “inefficiency” credit, which will deduct the grant amount to be paid by Eletrobras for the new generation concessions, has already been defined providing for inflation until December 31, 2019. 2021, with no possibility to change the defined value, with the inclusion of the real inflation for the period.
In 1Q22, Eletrobras has recorded the total amount of R$ 6,032.3 million in credits assumed by the distributors in their privatization processes. The amount of R$ 2,683.3 million will be paid by the CCC Fund to Eletrobras. The amount of R$ 2,906.5 million in “inefficiency” credits will be used for Eletrobras to deduct the grant amount to be paid for the new generation concessions in the company's capitalization process. The amount of R$ 442.4 million recorded in the loans and financing account referring to the current credit return agreement signed with Amazonas Energia, which is still in the grace period for payment of the principal, must be paid by Amazonas Energia. It is important to highlight that in 3Q21 Eletrobras made a provision in the amount of R$ 340.1 million referring to current credits owed by Ceron, Eletroacre and Boa Vista Energia (credits made before the transfer of the right to Eletrobras, and, therefore, need to be returned to the Eletrobras) as contracts have not yet been signed with these three distributors for the return of the amount. Currently, Eletrobras has been discussing with the three companies the amount to be paid to Eletrobras. After defining the amounts and payment terms, the contracts will be signed and Eletrobras will be able to reverse part or all of this provision of R$ 340.1 million. The total amount received from CCC credits in 1Q22 was R$140 million, of which R$6.5 million refers to monetary restatement.
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RBSE REPROFILING
In September 2021, the reprofiling of the financial component of the RBSE was recorded. ANEEL's decision caused a reduction in the payment curve of the amounts related to the periodic review of the Permitted Annual Revenues - RAP associated with transmission facilities for the 2021/2022 and 2022/2023 cycles and an increase in the flow of payments in the cycles after 2023, extending such installments until the 2027/2028 cycle, preserving, however, the remuneration for the cost of equity – Ke.
|
Table 21: RBSE reprofiling R$ million: |
| REPROFILED Financial Component | Period 2021-2022 | 2022-2023 | 2023-2024 | 2024-2025 | 2025-2026 | 2026-2027 | 2027-2028 |
| CHESF | 639 | 886 | 1.648 | 1.648 | 1.648 | 1.648 | 1.648 |
| ELETRONORTE | 278 | 393 | 769 | 769 | 769 | 769 | 769 |
| ELETROSUL | 161 | 215 | 360 | 360 | 360 | 360 | 360 |
| FURNAS | 806 | 1.199 | 2.635 | 2.635 | 2.635 | 2.635 | 2.635 |
| Total | 1,884 | 2,693 | 5,411 | 5,411 | 5,411 | 5,411 | 5,411 |
| Economic Component | Period 2021-2022 | 2022-2023 | 2023-2024 | 2024-2025 | 2025-2026 | 2026-2027 | 2027-2028 |
| CHESF | 1.091 | 1.091 | 654 | 654 | 654 | 654 | 654 |
| ELETRONORTE | 562 | 562 | 242 | 242 | 242 | 242 | 242 |
| ELETROSUL | 187 | 187 | 69 | 69 | 69 | 69 | 69 |
| FURNAS | 1.785 | 1.785 | 1.136 | 1.136 | 1.136 | 1.136 | 1.136 |
| Total | 3,625 | 3,625 | 2,102 | 2,102 | 2,102 | 2,102 | 2,102 |
| Total RBSE after REPROFILING | Period 2021-2022 | 2022-2023 | 2023-2024 | 2024-2025 | 2025-2026 | 2026-2027 | 2027-2028 |
| CHESF | 1.730 | 1.976 | 2.302 | 2.302 | 2.302 | 2.302 | 2.302 |
| ELETRONORTE | 841 | 955 | 1.011 | 1.011 | 1.011 | 1.011 | 1.011 |
| ELETROSUL | 348 | 402 | 430 | 430 | 430 | 430 | 430 |
| FURNAS | 2.590 | 2.984 | 3.771 | 3.771 | 3.771 | 3.771 | 3.771 |
| Total | 5,509 | 6,318 | 7,513 | 7,513 | 7,513 | 7,513 | 7,513 |
The above amounts include TFSEE (Electric Energy Services Inspection Fee) charges and resources for R&D and Energy Efficiency, and do not include PIS and Cofins. In addition, the data refer to the tariff cycle and not to the calendar year.
The values approved in the reprofiling were updated by the IPCA.Amortizações RBSE 2022- R$ mil
| Chesf | CGT Eletrosul | Eletronorte | Furnas | Total | |
| 2022 | 432,510 | 87,120 | 210,138 | 647,571 | 1,377,339 |
Note: TFSEE and R&D values are included. PIS and COFINS are
not included.
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1.4. Investment
|
Table 22: INVESTMENTS BY SEGMENT - R$ million |
| Investiment (Corporate + Partnerships) | Realized 1Q22 | Budgeted PDNG 1Q22 | % Budgeted 1Q22 |
| Generation Corporate | 98 | 301 | 33% |
| Implantation /Ampliation | 37 | 178 | 21% |
| Maintenance | 62 | 123 | 50% |
| Transmission | 240 | 259 | 93% |
| Reinforcements and improvements | 69 | 97 | 70% |
| Maintenance | 152 | 126 | 121% |
| Ampliation | 19 | 36 | 53% |
| SPES | - | 193 | - |
| Others* | 43 | 64 | 66% |
| Total without Eletronuclear | 381 | 817 | 47% |
| Eletronuclear | 142 | 243 | 59% |
| Total | 523 | 1,060 | 49% |
Others: Research, Infrastructure, Environmental Quality
* For further details on investments, by subsidiary or by project, see attachment 3 to this Investor Notice, to be released shortly.
IN 2022, R$523 MILLION OF THE R$1,060 MILLION BUDGETED FOR THE QUARTER WAS INVESTED.
In Generation, investment totaled BRL 239 million, considering the investment in Eletronuclear's Angra-3 Nuclear Power Plant: BRL 106 million carried out, referring to the resumption of works after bidding in 2021. of R$ R$ 35 million referring to maintenance. It is noteworthy that in the consolidated PDNG of Eletrobras, there was an investment forecast for Eletronuclear only for the month of Jan/22, given the previous perspective of privatization occurring within this period, which is why it is presented separately in the table above. At the Santa Cruz Thermoelectric Power Plant, in Furnas, R$ 24 million was invested in the implementation of the combined cycle. In maintenance, there was an investment of R$47 million at Chesf at the Sobradinho plant and others, R$11 million at Furnas and R$3 million at Eletronorte.
There were no investments in generation SPES.
In Transmission, investment totaled R$ 240 million, of which R$ 69 million in reinforcements and improvements, with emphasis on R$ 34 million at Chesf related to video monitoring and tele-assistance projects in several substations, among others, R$ 15 million at CGT Eletrosul and BRL 16 million at Eletronorte, with BRL 12 million more than expected for energization at the end of 2021, whose payments were made in 2022. In maintenance, there was a total realization of BRL 152 million, which was 21% higher of the R$ 126 million budgeted, with emphasis on R$ 132 million at Chesf referring to equipment, revitalization of transmission lines, among other small-scale reinforcement and improvement projects, with associated revenue and R$ 13 million at Eletronorte. Chesf, Eletronorte and CGT Eletrosul performed above the budget for the period by R$ 44 million. In expansion, BRL 19 million was realized, of which BRL 12 million at CGT Eletrosul and BRL 3 million more than planned at Chesf due to achievements at LT São Luiz II and São Luiz III and LT Paraiso-Açu C3.
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MARKETLETTER 1Q22 |
There were no investments in transmission SPES.
INVESTMENT FRUSTRATIONS
In generation, there was a total frustration of R$304 million, in 2022, with emphasis on the Santa Cruz plant, with a total of R$107 million, due to adjustments made to the physical and financial schedule of the project. In Maintenance at the Angra I and II plants, there was frustration of R$ 106 million due to problems with raw materials and delays in the delivery of imported equipment; At Furnas, there was frustration of R$ 42 million due to delays in bidding processes, changes in budget guidelines, changes in project scopes.
In Transmission, there was a total frustration of only BRL 19 million in 2022, having achieved 93% of the budget for the period. In reinforcements and improvements, there was frustration of R$ 29 million, of which R$ 28 million in Furnas due to delays in internal processes, failed bids and synergy with other projects; R$ 9 million at CGT Eletrosul also for delays in bids. In terms of maintenance, although the overall consolidated performance was higher than planned, there was frustration of R$18 million in Furnas due to delays in internal processes and changes in budget guidelines. In expansion, there was frustration of R$ 17 million, of which R$ 20 million at CGT Eletrosul due to delays in executive projects, mobilization of works to supply transformers to SE Blumenau and Siderópolis.
1.5. COMMERCIALIZATION
1.5.1. ENERGY SOLD IN 1Q22 – GENERATORS - TWH
In terms of energy market evolution, the Eletrobras Companies, in 1Q22, sold 42.7 TWh of energy, against 49.2 TWh traded in the same period of the previous year, which represents a decrease of 13%. These volumes include the energy sold from the plants under the quota regime, renewed by Law 12,783/2013, as well as by the plants under the exploration regime (ACL and ACR).
Sales: includes developments under Law 13,182/15
Average ACR Prices in the chart do not include Itaipu and Quotas (O&M). Include Electronuclear.
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1.5.2. ENERGETIC BALANCE
|
Table 23: Energetic Balance |
| Energetic Balance (MWmed) | 2022 | 2023 | 2024 | 2025 | 2026 | |||
| Ballast | 9.314 | 9.270 | 9.291 | 8.798 | 4.819 | |||
| Own resources (1) | 8.098 | 8.180 | 7.878 | 7.878 | 4.113 | |||
| Energy Purchase | 1.215 | 1.111 | 920 | 920 | 705 | |||
| Sales | 7.008 | 6.411 | 4.994 | 3.514 | 3.149 | |||
| ACL - Bilateral Contracts + MCP realized | 4.934 | 2.843 | 1.590 | 1.590 | 1.224 | |||
| ACR - Except quotas | 2.074 | 2.152 | 1.925 | 1.925 | 1.925 | |||
| Average Selling Price R$/MWh | 250,72 | 247,47 | 241,26 | 241,26 | 219,56 | |||
| Average Purchase Price R$/MWh | 292,76 | 268,94 | 244,36 | 244,36 | 224,81 | |||
| Average Selling Price R$/MWh (1) | 196,93 | 178,06 | 183,69 | 183,69 | 187,66 | |||
| Average Purchase Price R$/MWh (1) | 251,45 | 217,37 | 218,45 | 218,45 | 221,90 | |||
| Balance (Ballast - Sales) | 2.305 | 2.860 | 4.296 | 5.284 | 1.670 | |||
| Uncontracted Energy * | 25% | 31% | 46% | 60% | 35% | |||
* The uncontracted portion includes energy reserved for the company's hedge, strategically defined according to the GSF estimate for the period.
Contracts entered into until 03/31/2022.
The consequences of Law 14.182/2021, the process of depricing the plants under the Physical Guarantee Quotas regime and the creation of the new state-owned company are not being considered in the balance sheet.
The installments of Physical Guarantee Quotas and Nuclear Energy Quotas are not included in the balance sheet.
The Average Sales Prices do not consider projects under the Physical Guarantee Quotas and Nuclear Energy Quotas regime.
In Own Resources, for the hydroelectric projects, an estimate of GFIS2 was considered, that is, the Physical Guarantee considering the Adjustment Factors in function of the Internal Losses, Losses in the Basic Grid and Availability.
The extension of the concession period for the Mascarenhas de Moraes and Tucuruí HPPs was considered, as established in ANEEL Homologatory Resolution No. 2,932, of September 14, 2021;
Regarding the PIEs from which Amazonas GT (merged by Eletronorte) purchases energy and transfers it to the Distributor, (1) The reversion of assets to Eletronorte was considered from the date of termination of the current contracts (May/2025), and considered new sales contracts for the Distributor as of that date, according to the instructions of MP 855/2018.
(2) The prices of the contracts of Amazonas GT (merged by Eletronorte), including the contracts of PIEs, arising from the process of de-verticalization of Amazonas Distribuidora, are not considered in the purchase and sale prices, it is worth noting that, in this case, energy purchase and sale transactions do not reflect an economic impact ("pass-through").
| Physical and Nuclear Energy Guarantee Quotas (MWmed) | 2022 | 2023 | 2024 | 2025 | 2026 |
| Physical Guarantee Quotas for Hydroelectric Power Plants (3) | 7.464 | 7.451 | 7.451 | 7.451 | 7.451 |
| Nuclear Energy Quotas | 1.573 | 1.573 | 1.573 | 1.573 | 1.573 |
|
(3) Total Physical Guarantee Values of the projects. The concession under provisional administration of HPP Jaguari was considered, remaining until 2022. It only considers the existing CCGF, unlike the publications up to 2Q21, which considered the end of the contracts for UHE Mascarenhas de Moraes, in Jan/2024, and UHE Tucuruí, in Aug/2024, and from these dates, these plants were considered in the of Physical Guarantee Quotas. With the developments of Law 14.182/2021 and the process of deducting the plants under the Physical Guarantee Quotas regime, the following scenario is presented considering its effectiveness: | |||||
| Scenario Law 14.182/2021 (MWmed) | 2022 | 2023 | 2024 | 2025 | 2026 |
| Physical Guarantee Quotas for Hydroelectric Power Plants (3) (4) | 7.464 | 5.961 | 4.470 | 2.980 | 1.490 |
| Discounting (5) | 0 | 1.332 | 2.663 | 3.995 | 5.327 |
| New Grants (6) | 0 | 5.728 | 5.728 | 5.728 | 5.728 |
1) Total Physical Guarantee Values of the projects. Discounting taking place gradually over a period of 5 years from 2023.
2) Total Physical Guarantee Values of the projects. In the decoupling, the plants currently under quota regime will have a new concession under the Independent Energy Producer - PIE regime, occurring gradually over a period of 5 years from 2023. The Physical Guarantee values were defined in the Ordinance GM/MME No. 544/21.
3) Total Physical Guarantee Values of the projects. Considered new concession grants as of 2023 for the Sobradinho, Itumbiara, Tucuruí, Curuá-Una and Mascarenhas de Moraes plants, whose Physical Guarantee values were defined in Ordinance GM/MME No. 544/21. Regardless of what was observed in item (1).
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 30 |
MARKETLETTER 1Q22 |
2.
Result Analysis of
Parent Company
In 1Q22, Eletrobras Holding posted net income of R$ 2,708 million, an increase of 69% compared to the net income of R$ 1,601 million in 1Q21. The 1Q22 result was decisively influenced by: (i) an improvement in the financial result of R$ 1,116 million, mainly due to the positive effect of the exchange rate variation in 1Q22; (ii) revenue of R$ 121 million related to the tariff recognition associated with Fixed Assets in Progress – AIC, which were ratified by ANEEL through the extraordinary tariff review process and reimbursed to Eletrobras by the distributor Ceron; being partially offset by: (iii) provisions of R$648 million, of which R$300 million refer to compulsory loan and R$ 351 million to allowance for loan losses, of which R$ 359 million refer to Amazonas Energia.
|
EVOLUTION OF RESULT - R$ MILLION |
Note: The analysis of the results of each subsidiary can be found in Appendix II of the Investor Report.
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MARKETLETTER 1Q22 |
2.1 Shareholdings in the Parent Company
In 1Q22, the result from Equity Investments had a positive impact on the Parent Company's result by R$ 2,671 million, resulting from the Equity Income from investments in subsidiaries and affiliates, while the result in 1Q21 was R$ 2,725 million. Highlight for the improvement in the results of Chesf (+R$408 million), CGT Eletrosul (+R$203 million), Furnas (+R$172 million), Eletronuclear (+R$121 million) and partially offset by the worsening of results at Eletronorte (-R$ 900 million).
2.2 Operating Provisions of Parent Company
In 1Q22, Operating Provisions negatively impacted the Parent Company's results by R$648 million, compared to a provision of R$471 million in 1Q21. This variation is mainly explained by: (i) negative effect on provisions for Provision for Litigation, with emphasis on compulsory loan lawsuits in the amount of R$300 million, compared to a provision of R$435 million in 1Q21 ; and (ii) R$351 million in allowance for loan losses, of which R$359 million in provision for receivables against Amazonas Energia, comprising R$169.7 million in overdue debt PECLD and R$189.8 million in estimated of prospective PECLD.
|
Table 24: Operating Provisions (R$ million) |
| Operating Provisions | |||
| 1Q22 | 1Q21 | ||
| Guarantees | - 3 | - 18 | |
| Contingencies | 286 | 451 | |
| PCLD - Financing and Loans | 351 | 11 | |
| Investment Losses | 16 | 15 | |
| Provision for Implantation of Shares - Compulsory Loan | 11 | - 7 | |
| ANEEL Provision - CCC | - | 31 | |
| Others | - 13 | - 11 | |
| TOTAL | 648 | 471 | |
2.3 Parent Company Financial Result
The financial result improved by R$1,116 million, mainly due to: (i) active exchange variation, which went from R$ -446 million in 1Q21 to R$839 million in 1Q22 due to the 8.4 % in 1Q21 and -15.1% in 1Q22; partially offset by the worsening of (ii) net monetary restatement, which went from R$311 million to R$-184 million, mainly due to the monetary restatement of the compulsory loan of R$306 million.
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MARKETLETTER 1Q22 |
Table 25: Financial Result (R$ million)
| FINANCIAL RESULT | 1Q22 | 1Q21 |
| Financial income | ||
| Interest, commission and fee income | 321 | 257 |
| Income from financial investments | 87 | 75 |
| Additional moratorium on electricity | 0 | 0 |
| Interest income on dividends | 171 | 0 |
| Other financial income | 117 | 74 |
| Financial expenses | ||
| Debt charges | - 450 | - 280 |
| Leasing charges | - 1 | - 1 |
| Remuneration for Thermonuclear Plant Decommissioning Fund | - | - |
| Charges on shareholder resources | - 2 | 0 |
| Other financial expenses | - 63 | - 270 |
| Financial items, net | ||
| Monetary Variations | - 184 | 311 |
| Exchange Variations | 839 | - 446 |
| Financial Result | 835 | - 281 |
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 33 |
MARKETLETTER 1Q22 |
3.
General
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 34 |
MARKETLETTER 1Q22 |
 |
Table 26: CAPITAL STRUCTURE |
| Eletrobras’s Social Capital | |||||
| Shareholding position on 03/31/2022 | |||||
| Shareholders | Quantity | Value (R$) | % Capital | Total | |
| Common | 1,288,842,596 | 32,084,698,524,00 | 100.00% | 82.15% | |
| Government | 667,888,884 | 16,626,555,917,17 | 51.82% | 42.57% | |
| BNDESPAR | 141,757,951 | 3,528,950,032,66 | 11.00% | 9.04% | |
| BNDES | 74,545,264 | 1,855,744,316,08 | 5.78% | 4.75% | |
| Citibank | 50,595,860 | 1,259,543,189,92 | 3.93% | 3.22% | |
| Iberclear - Latibex | 344,335 | 8,571,942,53 | 0.03% | 0.02% | |
| FIA Dinâmica e Banclass | 65,536,875 | 1,631,487,726,37 | 5.08% | 4.18% | |
| FND | 45,621,589 | 1,135,712,719,15 | 3.54% | 2.91% | |
| FGHAB | 1,000,000 | 24,894,194,70 | 0.08% | 0.06% | |
| Banco do Nordeste | 1,420,900 | 35,372,161,25 | 0.11% | 0.09% | |
| Others | 240,130,938 | 5,977,866,324,39 | 18.63% | 15.31% | |
| PREF. A | 146,920 | 3,657,455,00 | 100.00% | 0.01% | |
| Victor Adler | 52,200 | 1,299,476,96 | 35.53% | 0.00% | |
| Shareholders to be identified | 42,451 | 1,056,783,46 | 28.89% | 0.00% | |
| Others | 52,269 | 1,301,194,66 | 35.58% | 0.00% | |
| PREF. B | 279,941,394 | 6,968,915,567,00 | 100.00% | 17.84% | |
| Citibank | 5,177,287 | 128,884,391,00 | 1.85% | 0.33% | |
| Iberclear - Latibex | 137,753 | 3,429,250,00 | 0.05% | 0.01% | |
| BNDESPAR | 18,691,102 | 465,299,932,00 | 6.68% | 1.19% | |
| BNDES | 18,262,671 | 454,634,488,00 | 6.52% | 1.16% | |
| 3G Radar Funds | 30,852,976 | 768,059,992,00 | 11.02% | 1.97% | |
| Shareholders to be identified | 2,035,995 | 50,684,456,00 | 0.73% | 0.13% | |
| Government | 494 | 12,298,00 | 0.00% | 0.00% | |
| Others | 204,783,116 | 5,097,910,761,00 | 73.15% | 13.05% | |
| Total | 1,568,930,910 | 39,057,271,546,52 | 100,00% |
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 35 |
MARKETLETTER 1Q22 |
Stock Analysis
Shares
|
Table 27: B3, ELET3 and ELET6 |
| Price and Volume | (R$) ELET3 (ON Shares) |
(R$) ELET6 (PN Shares) |
(pts.) IBOV (Índex) |
(pts.) IEE (Índex) |
| Closing Price on 03/31/2022 | 37.28 | 36.08 | 119,999 | 85,040 |
| Maximum in the quarter | 37.28 | 36.08 | 120,260 | 85,739 |
| Average in the quarter | 33.34 | 32.29 | 111,604 | 77,474 |
| Minimum in the quarter | 28.94 | 28.32 | 101,006 | 71,566 |
| Variation in 1Q22 | 13.7% | 13.6% | 14.5% | 11.4% |
| Change in the last 12 months | 13.8% | 10.9% | 2.9% | 5.1% |
| Average Daily Traded Volume 1Q212 (R$ million) | 154.2 | 74.2 | - | - |
| Book Value per Share (R$) | 50.42 | 50.42 | ||
| Price / Profit (P/E) (1) | 8.22 | 7.96 | ||
| Price / Shareholders' Equity (P/B) (2) | 0.74 | 0.72 |
| (1) | Closing price of preferred and common shares at the end of the period / Net income per share. For the calculation, the accumulated net profit of the last 12 months was considered; |
| (2) | Closing price of preferred and common shares at the end of the period / Book Value per share at the end of the period. |
|
Evolution of Shares Traded at B3 |
Source: AE Broadcast
Index number 03/31/2021 = 100 and ex-dividend values.
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 36 |
MARKETLETTER 1Q22 |
ADR PROGRAMS
|
Table 28: NYSE, EBRN and EBRB |
| Price and Volume | (US$) NYSE EBRN |
(US$) NYSE EBRB |
| Closing Price on 03/31/2022 | 7.76 | 7.88 |
| Maximum in the quarter | 7. 76 | 7.88 |
| Average in the quarter | 6.36 | 6.39 |
| Minimum in the quarter | 5.11 | 5.15 |
| Variation in 1Q22 | 30.0% | 31.3% |
| Change in the last 12 months | 32.6% | 34.0% |
| Average Daily Trading Volume 1Q22 (US$ million) | 8,938 | 74 |
|
Evolution of Shares Traded in ADR |
Source: AE Broadcast
Index number 03/31/2021 = 100 and ex-dividend values.
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 37 |
MARKETLETTER 1Q22 |
Latibex - MADRID MARKET
|
Table 29: LATIBEX, XELTO and XELTB |
| Price and Volume | (€) LATIBEX XELTO |
(€) LATIBEX XELTB |
| Closing Price on 03/31/2022 | 6.80 | 6.25 |
| Maximum in the quarter | 6.80 | 6.25 |
| Average in the quarter | 6.22 | 5.42 |
| Minimum in the quarter | 4.92 | 4.58 |
| Variation in 1Q22 | 29.5% | 25.0% |
| Change in the last 12 months | 33.3% | 25.0% |
| Average Daily Trading Volume 1Q22 (US$ million) | 13.4 | 10.0 |
|
Evolution of Foreign Currencies |
Index number 03/31/2021 = 100.
Source: Banco Central
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 38 |
MARKETLETTER 1Q22 |
Nº of Employees
PARENT COMPANY
|
Table 30: EMPLOYEES FOR WORKING TIME |
| Working time in the company (years) | 1Q22 |
| Up until 5 | 23 |
| 6 to 10 | 31 |
| 11 to 15 | 390 |
| 16 to 20 | 148 |
| 21 to 25 | 18 |
| More than 25 | 60 |
| Total | 670 |
|
Table 31: EMPLOYEES BY FEDERATION STATE |
| Federation State | 1Q22 |
| Rio de Janeiro | 653 |
| Brasília | 15 |
| São Paulo | 1 |
| Expatriate | 1 |
| Total | 670 |
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 39 |
MARKETLETTER 1Q22 |
Balance Sheet
|
(R$ thousand) |
| Asset | Parent Company | Consolidated | ||
| 03.31.22 | 03.31.21 | 03.31.22 | 12.31.21 | |
| CURRENT | ||||
| Cash and cash equivalents | 17,983 | 7,384 | 149,244 | 192,659 |
| Restricted cash | 3,262,722 | 2,544,594 | 3,262,722 | 2,544,594 |
| Marketable securities | 5,254,879 | 6,026,365 | 15,305,244 | 15,640,776 |
| Customers | 534,349 | 719,906 | 5,252,773 | 5,094,976 |
| Asset contractual transmission | 0 | 0 | 7,473,599 | 7,356,356 |
| Loans and financing | 2,236,718 | 2,275,301 | 1,423,219 | 1,251,766 |
| Remuneration of equity interests | 5,312,202 | 5,028,731 | 554,961 | 443,142 |
| Taxes to recover | 60,719 | 456,725 | 410,866 | 755,906 |
| Income tax and social contribution | 959,100 | 640,191 | 1,841,844 | 1,487,777 |
| Reimbursement rights | 776,017 | 741,255 | 804,335 | 768,848 |
| Warehouse | 276 | 293 | 648,727 | 627,573 |
| Nuclear fuel stock | 0 | 0 | 515,244 | 487,895 |
| Derivative financial instruments | 0 | 0 | 655,066 | 690,333 |
| Hydrological risk | 0 | 0 | 0 | 0 |
| Others | 854,337 | 685,320 | 2,073,314 | 2,014,705 |
| Asset held for sale | 937,602 | 289,331 | 1,033,184 | 387,690 |
| TOTAL CURRENT ASSETS | 20,206,905 | 19,415,396 | 41,404,342 | 39,744,996 |
| NON CURRENT | ||||
| LONG-TERM REALIZABLE | ||||
| Reimbursement rights | 5,476,537 | 5,529,316 | 5,568,776 | 5,627,386 |
| Loans and financing | 7,018,921 | 8,180,605 | 3,772,059 | 4,591,761 |
| Customers | 0 | 0 | 495,433 | 993,080 |
| Marketable Securities | 402,816 | 398,280 | 1,211,376 | 1,093,476 |
| Nuclear fuel stock | 0 | 0 | 1,360,494 | 1,490,820 |
| Taxes to recover | 3,365 | 3,365 | 458,146 | 449,258 |
| Current Income Tax and Social Contribution | 0 | 0 | 1,419,829 | 1,500,987 |
| Escrow deposits | 6,729,540 | 6,393,647 | 8,838,574 | 8,247,485 |
| Transmission contractual asset | 0 | 0 | 52,934,098 | 52,158,612 |
| Financial assets - Concessions and Itaipu | 400,234 | 428,865 | 2,572,814 | 2,601,027 |
| Derivative financial instruments | 0 | 0 | 608,923 | 653,022 |
| Advances for future capital increase | 4,016,378 | 3,932,463 | 0 | 0 |
| Remuneration of equity interests | 0 | 0 | 0 | 0 |
| Hydrological risk | 0 | 0 | 0 | 0 |
| Decommissioning Fund | 2,101,589 | 2,055,713 | 2,101,589 | 2,055,713 |
| Others | 1,985,643 | 2,024,412 | 1,124,225 | 1,087,508 |
| 28,135,023 | 28,946,666 | 82,466,336 | 82,550,135 | |
| INVESTMENT | 90,481,221 | 88,740,622 | 27,180,361 | 27,647,781 |
| Fixed assets net | 232,633 | 235,453 | 33,199,861 | 33,367,981 |
| INTANGIBLE | 61,385 | 61,387 | 4,801,212 | 4,992,176 |
| TOTAL NON-CURRENT ASSETS | 118,910,262 | 117,984,128 | 147,647,770 | 148,558,073 |
| TOTAL ASSETS | 139,117,167 | 137,399,524 | 189,052,112 | 188,303,069 |
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 40 |
MARKETLETTER 1Q22 |
|
(R$ thousand) |
| Liabilities and Equity | Parent Company | Consolidated | ||
| 03.31.22 | 12.31.21 | 03.31.22 | 12.31.21 | |
| CURRENT | ||||
| Loans and financing and Debentures | 5,240,728 | 5,310,178 | 8,184,832 | 8,234,753 |
| Compulsory loan | 1,238,366 | 1,216,335 | 1,238,366 | 1,216,335 |
| Suppliers | 675,646 | 773,858 | 3,200,908 | 4,031,532 |
| Advances from customers | 1,393,684 | 1,370,946 | 1,483,193 | 1,460,455 |
| Taxes payable | 207,861 | 259,336 | 578,154 | 804,485 |
| Income tax and social contribution | 0 | 0 | 222,753 | 19,624 |
| Onerous contracts | 0 | 0 | 10,517 | 10,517 |
| Remuneration to shareholders | 1,413,515 | 1,381,111 | 1,435,014 | 1,406,891 |
| Financial liabilities - Concessions and Itaipu | 1,064,344 | 578,626 | 1,064,344 | 578,626 |
| Estimated liabilities | 155,157 | 153,568 | 1,489,237 | 1,602,947 |
| Reimbursement Obligations | 1,199,689 | 836,744 | 1,199,689 | 859,003 |
| Post-employment benefits | 0 | 0 | 231,637 | 233,304 |
| Provisions for contingencies | 2,225,978 | 2,267,649 | 2,225,978 | 2,267,649 |
| Regulatory charges | 0 | 0 | 905,885 | 542,913 |
| Lease | 7,877 | 7,773 | 208,604 | 209,774 |
| Others | 65,078 | 64,061 | 317,686 | 236,183 |
| 14,887,923 | 14,220,185 | 23,996,797 | 23,714,991 | |
| Liabilities associated with assets held for sale | 0 | 0 | 169,383 | 168,381 |
| 14,887,923 | 14,220,185 | 24,166,180 | 23,883,372 | |
| NON-CURRENT | ||||
| Loans and financing and Debentures | 17,662,186 | 19,294,960 | 33,453,966 | 35,780,892 |
| Suppliers | 0 | 0 | 16,555 | 16,555 |
| Advances from customers | 0 | 0 | 165,406 | 186,348 |
| Obligation for asset retirement | 0 | 0 | 3,328,015 | 3,268,301 |
| Provisões para Provisão para Litígios | 23,609,396 | 23,666,275 | 31,611,131 | 31,142,222 |
| Benefício pós-emprego | 867,666 | 885,455 | 5,866,687 | 5,851,502 |
| Provisions for contingencies | 0 | 0 | 731,266 | 708,516 |
| Onerous contracts | 0 | 0 | 428,164 | 428,164 |
| Reimbursement Obligations | 38,541 | 40,560 | 648,800 | 693,710 |
| Lease | 0 | 0 | 83,179 | 81,655 |
| Concessions payable - Use of public goods | 79,218 | 77,336 | 17,235 | 77,336 |
| Advances for future capital increase | 0 | 0 | 0 | 0 |
| Derivative financial instruments | 0 | 0 | 420,285 | 649,341 |
| Sector Charges | 0 | 0 | 248,236 | 260,612 |
| Taxes payable | 589,572 | 569,816 | 7,183,249 | 7,244,737 |
| Income tax and social contribution | 2,566,566 | 2,523,733 | 1,563,043 | 1,613,042 |
| Others | 45,413,145 | 47,058,135 | 85,765,217 | 88,002,933 |
| TOTAL NON-CURRENT LIABILITIES | ||||
| EQUITY | 39,057,271 | 39,057,271 | 39,057,271 | 39,057,271 |
| Share capital | 13,867,170 | 13,867,170 | 13,867,170 | 13,867,170 |
| Capital reserves | 30,890,165 | 30,890,165 | 30,890,165 | 30,890,165 |
| Profit reserves | 0 | 0 | 0 | 0 |
| Other comprehensive income accumulated | -7,913,071 | -7,693,402 | -7,913,071 | -7,693,402 |
| Non controlling shareholdins | 0 | 0 | 304,616 | 295,560 |
| 2,914,564 | 0 | 2,914,564 | 0 | |
| TOTAL SHAREHOLDERS' EQUITY | 78,816,099 | 76,121,204 | 79,120,715 | 76,416,764 |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 139,117,167 | 137,399,524 | 189,052,112 | 188,303,069 |
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 41 |
MARKETLETTER 1Q22 |
Income Statement
(R$ thousand)
| Parent Company | Consolidated | ||||
| 03.31.22 | 03.31.21 | 03.31.22 | 03.31.21 | ||
| NET OPERATING REVENUE | 19,206 | 90,281 | 9,181,318 | 8,208,426 | |
| Operating costs | |||||
| Personnel, Material and Services | 0 | 0 | -935,350 | -783,534 | |
| Energy purchased for resale | -15,967 | -101,222 | -482,958 | -499,316 | |
| Charges upon use of electric network | 0 | 0 | -621,119 | -455,668 | |
| Fuel for electricity production | 0 | 0 | -768,250 | -537,337 | |
| Construction | 0 | 0 | -195,256 | -148,568 | |
| Depreciation | 0 | 0 | -395,327 | -403,351 | |
| Amortization | 0 | 0 | -208,227 | -14,008 | |
| Operating Provisions /Reversals net | 0 | 0 | 0 | -6,097 | |
| Others Costs | 0 | 0 | -88,390 | -90,728 | |
| GROSS RESULT | 3,239 | -10,941 | 5,486,441 | 5,269,819 | |
| Operating expenses | |||||
| Personnel, Supllies and Services | -130,324 | -126,055 | -726,861 | -902,096 | |
| Depreciation | -2,820 | -3,041 | -37,619 | -32,466 | |
| Amortization | -3 | -3 | -3,972 | -8,275 | |
| Donations and contributions | -33,277 | -21,589 | -47,068 | -38,738 | |
| Operating Provisions /Reversals net | -648,111 | -471,308 | -2,070,442 | -1,098,912 | |
| Others | -29,509 | -79,655 | -166,900 | -219,131 | |
| -844,044 | -701,651 | -3,052,862 | -2,299,618 | ||
| OPERATING INCOME BEFORE FINANCIAL RESULT | -840,805 | -712,592 | 2,433,579 | 2,970,201 | |
| Financial result | |||||
| Financial income | |||||
| Income from interest, commissions and fees | 320,681 | 256,658 | 199,449 | 138,746 | |
| Income from financial investments | 86,862 | 75,029 | 341,607 | 90,845 | |
| Moratorium on electricity | 0 | 0 | 112,536 | 127,529 | |
| Active monetary updates | 261,111 | 446,326 | 299,068 | 522,951 | |
| Exchange rate variations | 1,512,496 | 889,544 | 1,614,862 | 881,325 | |
| Fair value adjustment | 171,223 | 0 | 61,546 | 0 | |
| Regulatory asset update | 0 | 0 | 0 | 284,796 | |
| Gains on derivatives | 117,469 | 74,204 | 210,573 | 127,746 | |
| Financial expenses | |||||
| Debt charges | -450,382 | -280,011 | -821,076 | -492,628 | |
| Leasing charges | -1,106 | -1,281 | -140,700 | -114,352 | |
| Charges on shareholders' funds | -1,882 | -360 | -2,293 | -143,106 | |
| Passive monetary updates | -445,127 | -135,459 | -521,959 | -196,661 | |
| Passive exchange variations | -673,629 | -1,335,607 | -484,622 | -1,482,257 | |
| Losses with derivatives | 0 | 0 | -79,366 | 0 | |
| Other financial expenses | -62,544 | -269,673 | -311,437 | -328,705 | |
| 835,172 | -280,630 | 478,188 | -583,771 | ||
| INCOME BEFORE EQUITY | -5,633 | -993,222 | 2,911,767 | 2,386,430 | |
| RESULTS OF EQUITY | 2,671,385 | 2,725,339 | 552,441 | 430,075 | |
| OUTRAS RECEITAS E DESPESAS | 121,033 | 0 | 121,033 | 0 | |
| OTHER REVENUE AND EXPENDITURE | 2,786,785 | 1,732,117 | 3,585,241 | 2,816,505 | |
| Current Income Tax and Social Contribution | 0 | -131,049 | -788,564 | -972,207 | |
| Deferred Income Tax and Social Contribution | -78,443 | 0 | -80,302 | -235,159 | |
| NET INCOME FOR THE PERIOD | 2,708,342 | 1,601,068 | 2,716,375 | 1,609,139 | |
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 42 |
MARKETLETTER 1Q22 |
Cash Flow Statement
|
(R$ thousand) |
| Parent Company | Consolidated | |||
| 03.31.22 | 03.31.21 | 03.31.22 | 03.31.21 | |
| Operating Activities | ||||
| Income before income tax and social contribution | 2,786,785 | 1,732,117 | 3,585,241 | 2,816,505 |
| Depreciation and amortization | 2,822 | 3,043 | 645,144 | 458,100 |
| Net foreign exchange rate variations | -654,851 | 135,196 | -907,349 | 274,642 |
| Financial charges | -38,534 | 24,994 | 703,074 | 611,340 |
| Equivalence equity results | -2,671,385 | -2,725,339 | -552,441 | -430,075 |
| Other Income and Expenses | -121,033 | 0 | -121,033 | 0 |
| Revenue from the contractual asset - transmission | 0 | 0 | -4,235,234 | -3,801,242 |
| Construction Revenue | 0 | 0 | -3,418 | -8,790 |
| Contractual revenue - Transmission | 0 | 0 | 191,838 | 139,778 |
| Regulatory Remeasurements - Transmission Contracts | 0 | 0 | 0 | 0 |
| Operating provisions (reversals) | 648,111 | 471,308 | 2,070,442 | 1,105,009 |
| Participation of non-controlling shareholders | 0 | 0 | -11,998 | -12,220 |
| Ressarcimento GSF | 0 | 0 | 0 | 0 |
| Financial instruments - derivatives | 0 | 0 | 79,366 | -284,796 |
| Others | -120,194 | -83,640 | -176,581 | -9,209 |
| -2,955,063 | -2,174,437 | -2,318,190 | -1,957,463 | |
| (Increases) / decreases in operating assets | ||||
| Customers | 0 | 1 | 154,292 | 355,090 |
| Marketable securities | 771,485 | 2,445,649 | 222,168 | -322,549 |
| Reimbursement rights | -79,948 | -1 | -74,843 | 1,559 |
| Warehouse | 17 | 1 | -21,154 | 2,682 |
| Nuclear fuel stock | 0 | 0 | 102,977 | 36,704 |
| Financial assets - Itaipu | 514,349 | 593,802 | 514,349 | 593,802 |
| Assets held for sale | 0 | 0 | 24,657 | 0 |
| Hydrological risk | 0 | 0 | 0 | 7,218 |
| Credits with subsidiaries - CCD | 0 | 0 | 0 | 0 |
| Others | 91,189 | 185,197 | -139,136 | 328,041 |
| 1,297,092 | 3,224,649 | 783,310 | 1,002,547 | |
| Increases/(decreases) in operating liabilities | ||||
| Suppliers | -3,633 | -247,769 | -736,045 | -1,043,673 |
| Advances | 0 | 0 | -20,942 | -19,933 |
| Lease | -1,915 | -1,924 | 136,159 | 114,529 |
| Estimated liabilities | 1,589 | -736 | -118,001 | -68,747 |
| Indemnification obligations | 0 | 0 | -22,259 | -44,518 |
| Sectorial charges | 0 | 0 | 133,916 | -18,835 |
| Liabilities associated with assets held for sale | 0 | 0 | 1,002 | 0 |
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 43 |
MARKETLETTER 1Q22 |
| Others | 0 | 0 | 0 | 0 |
| -51,322 | -127,798 | -498,889 | -334,395 | |
| Payment of financial charges | -252,448 | -256,634 | -612,625 | -493,055 |
| Payment of financial charges - arrendamentos | 0 | 0 | -986 | -1,156 |
| Revenue of RAP and indemnities | 0 | 0 | 3,342,505 | 4,251,176 |
| Revenue of financial charges | 186,700 | 292,335 | 83,814 | 202,696 |
| Payment of income tax and social contribution | -28,195 | -52,352 | -772,458 | -741,543 |
| Revenue of remuneration for investments in equity interests | 67,541 | 413,675 | 140,802 | 426,826 |
| Supplementary pension payment | -17,789 | -3,717 | -118,004 | -75,506 |
| Payment of legal contingencies | -760,725 | -213,681 | -819,249 | -675,483 |
| Bonds and related deposits | -268,619 | -48,670 | -485,287 | -69,830 |
| Net cash provided by (used in) financing activities | -3 | 2,535,058 | 1,683,814 | 3,270,142 |
| Investing activities | ||||
| Loans and financing obtained and debentures obtained | -836,102 | -1,059,032 | -1,397,057 | -1,530,616 |
| Payment of loans and financing and debentures - principal | -108 | -2,281,924 | -193 | -2,312,224 |
| Payment of remuneration to shareholders | 0 | 0 | 0 | 0 |
| Payment of finance leases | 0 | 0 | -182,239 | -159,992 |
| Others | 0 | 0 | -56,377 | -3,907 |
| Net cash provided by (used in) financing activities | -836,210 | -3,340,955 | -1,635,866 | -4,006,739 |
| Investing activities | ||||
| Lending and financing | 0 | 0 | 0 | 0 |
| Loans and financing receivables | 846,812 | 1,555,558 | 367,966 | 1,213,310 |
| Acquisition of fixed assets | 0 | 0 | -266,102 | -279,298 |
| Acquisition of intangible assets | 0 | -9,139 | -9,390 | -27,664 |
| Acquisition / contribution of capital in equity interests | 0 | 0 | -396 | -2,244 |
| Acquisition / capital investment in equity | 0 | -759,218 | 0 | |
| Advance concession for future capital increase | 0 | 0 | 0 | 1,687 |
| Transmission infrastructure - contractual asset | 0 | 0 | -191,838 | -139,778 |
| Others | 0 | 0 | 8,397 | -24,073 |
| Net cash provided by (used in) investing activities from continuing operations | 846,812 | 787,202 | -91,363 | 741,940 |
| Increase (decrease) in cash and cash equivalents | 10,599 | -18,696 | -43,415 | 5,343 |
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 44 |
MARKETLETTER 1Q22 |
| Cash and cash equivalents at the beginning of the year for continued operations | 7,384 | 21,630 | 192,659 | 286,607 |
| Cash and cash equivalents at year-end of continuing operations | 17,983 | 2,934 | 149,244 | 291,950 |
| 10,599 | -18,696 | -43,415 | 5,343 |
MARKETLETTER 1Q2022 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed. | 45 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: May 16, 2022
| CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS | ||
| By: |
/S/ Elvira Baracuhy Cavalcanti Presta |
|
|
Elvira Baracuhy Cavalcanti Presta CFO and Investor Relations Officer |
||
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.