AXIA Energia S.A 6-K, filed Mar 14, 2024
AXIA Energia S.A. (AXIAY)
About this 6-K
AXIA Energia S.A filed this 6-K on March 14, 2024.
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 March, 2024
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____
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SUMMARY
| Key Indicators | 6 |
| 1. Operating Result | 7 |
| 1.1. Generation Segment | 7 |
| 1.2. Trading Segment | 9 |
| 1.3. Transmission Segment | 11 |
| 2. Consolidated result | IFRS | 11 |
| 2.1. Operating Revenues | 12 |
| 2.2. Other revenues | 17 |
| 2.3. Operating Costs and Expenses | 18 |
| 2.4. Equity Interests | 24 |
| 2.5. Financial Results | 25 |
| 2.6. Current and deferred taxes | 27 |
| 2.7. EBITDA | 27 |
| 3. Debt and receivables | 28 |
| 3.1. Holding Company / Parent Company and Consolidated | 28 |
| 4. Loans and Financing (Receivables) | 29 |
| 4.1. Holding Company / Parent Company and Consolidated | 29 |
| 4.2. RBSE | 30 |
| 5. Investments | 30 |
| 6. ESG 4Q23 | 32 |
| 7. APPENDICES | 33 |
| 7.1. Appendix 1 - Financial Statements | 33 |
| 7.2. Appendix 2 - Results by Segment | 39 |
| 7.3. Appendix 3 - Compulsory Loan | 40 |
| 7.4. Appendix 4 - IFRS x Regulatory reconciliation | 41 |
Earnings Release | 4Q23 | 3 |
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Eletrobras ANNOUNCES 4th quarter 2023 results
Eletrobras' operating and financial results in 2023 reflected the undertaking of greater cost efficiency and processes rationalization which enabled the Company to resume its investment program and consolidate its position as the largest power company in Latin America. The Company’s financial discipline and capital allocation made it possible to propose the distribution of dividends in the amount of R$1,296.7 million relating to 2023 results. The Company continued to accelerate its strategic agenda aimed at creating value with several highlights and achievements throughout 4Q23.
Operational
| · | In the generation segment, installed capacity increased by 2,095 MW, mainly reflecting the consolidation of the Teles Pires hydroelectric plant. |
| · | In the transmission segment, the Company is implementing 199 large-scale projects, with associated annual permitted revenue (RAP) of R$972 million per year. |
Structuring the trading area
| · | The process of centralizing the trading area continued to evolve in 4Q23. As a result, at quarter end, the Company had a base of 469 customers, of which 393 were ACL customers, a significant increase from the 249 customers in 4Q22. End consumers increased from 46 in 4Q22 to 269 in 4Q23. |
Adjustment of PMSO costs and expenses
| · | Recurring PMSO (Personnel, Material, Services and Others) was R$1,815 million in 4Q23, down 27% year-on-year (YoY). |
| · | The two Voluntary Dismissal Plans (VDPs) had 4,066 applicants, of which 2,811 have been accepted and left the Company. The estimated cost is R$1.7 billion, with expected savings of around R$1.8 billion in 12 months after the programs are completed. |
Simplifying the corporate structure and optimizing capital
| · | In December, signed a contract for the sale of 49% of the share capital of SPEs Chapada do Piauí I Holding S.A. and Chapada do Piauí II Holding S.A. |
| · | In December, completed the acquisition of FIP Milão's 51% stakes in SPEs Vale do São Bartolomeu S.A. and Triângulo Mineiro Transmissora S.A. for R$574 million (equity value). |
| · | In January, completed the sale of the Candiota thermoelectric complex, responsible for approximately one third of our total emissions, an important step aligned with our goal of reaching net zero by 2030. |
| · | In January, the Extraordinary General Meeting approved the incorporation of Furnas, which is subject to the conclusion of suspension conditions. |
Earnings Release | 4Q23 | 4 |
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Financial discipline
| · | The average debt maturity is 47.4 months and the average cost is CDI + 1.5091 % per annum (p.a). as of 12/31/23. |
| · | The net debt/adjusted EBITDA ratio was 2.2x in 4Q23. |
| · | Solid cash position of R$19 billion on 12/31/23. |
| · | Completion of the restructuring of Santo Antônio Energia's debt, improving the credit profile and ensuring its financial viability. |
Contingency management
| · | 41% decrease in inventory of compulsory loans to R$17.2 billion from R$24.3 billion in 4Q22. |
ESG
| · | In November, the Board of Directors approved the strategic guidelines for green hydrogen. |
| · | In December, Eletrobras was again included in the benchmark portfolio of the Corporate Sustainability Index of B3 - Brasil, Bolsa, Balcão - ISE-B3 2024. |
| · | The Company remained in the S&P Global Sustainability Yearbook 2024 for the 4th consecutive year. |
| · | In February, Eletrobras advanced to an A- (leadership) rating in the Climate Change and Water Security 2023 dimensions of the CDP - Disclosure Insight Action. |
Financial Highlights:
| · | Net operating revenue of R$9,922 million in 4Q23, up 10% YoY, mainly reflecting the increase in transmission revenues. |
| · | Recurring regulatory EBITDA of R$5.6 billion, due to higher transmission revenues and lower operating expenses. |
| · | Net profit of R$893 million, a significant improvement compared with a net loss of R$479 million in 4Q22. |
| · | The adjusted financial result was a net expense of R$2,269 million, mainly due to higher debt charges, charges and monetary update of the CDE obligations and the revitalization of river basins. |
| · | Investments totaled R$4,632 million in the quarter, up 190% from the R$1,597 million carried out in 4Q22. |
Earnings Release | 4Q23 | 5 |
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Key Indicators
| Highlights | 4Q23 | 4Q22 | % |
| Generation | |||
| Installed Generation Capacity (MW) | 44,654 | 42,559 | 4.9% |
| Assured Capacity (MWm) (1) | 18,587 | 18,544 | 0.2% |
| Net Generation (GWh) | 31,809 | 32,796 | -3.0% |
| Energy Sold ACR (GWh) (2) | 10.8 | 8.7 | 24.2% |
| Energy Sold ACL (GWh) (3) | 14.3 | 13.5 | 5.9% |
| Energy Sold Quotas (GWh) (4) | 11.6 | 16.5 | -29.5% |
| Average ACR Price (R$/MWh) | 220.2 | 217.2 | 1.4% |
| Average ACL Price (R$/MWh) | 193.7 | 197.7 | -2.0% |
| Transmission | |||
| Transmission lines (km) | 73,788.6 | 73,887.4 | -0.1% |
| RAP (R$mn) | 4,416 | 3,442 | 28.3% |
(1) Changes in the period: (1.1) Revision of Assured Capacity (AC) values of plants whose concessions were renewed due to capitalization (plants under the Quotas regime, Tucuruí, Itumbiara, Sobradinho, Mascarenhas de Moraes and Curuá-Una), as defined in Ordinance GM/MME 544/21, with a significant reduction in AC, effective as of 2023; (1.2) Ordinary Review of Assured Capacity of hydroelectric plants, valid from 2023, affecting several Eletrobras plants; (1.3) Increase in AC of Santa Cruz TPP due to closure of Combined Cycle; (1.4) Inclusion of SPEs that are now consolidated: HPPs Teles Pires, Baguari and Retiro Baixo; (2) does not include quotas; (3) includes contracts under Law 13.182/2015; (4) the figures presented are for the Assured Capacity of quotas in GWh.
| 4Q23 | 4Q22 | % | 2023 | 2022 | % | |
| Financial Indicators (R$mn) | ||||||
| Gross Revenue | 11,858 | 10,803 | 10% | 44,475 | 41,038 | 8% |
| Adjusted Gross Revenue | 11,858 | 10,803 | 10% | 44,495 | 40,965 | 9% |
| Net Operating Revenue | 9,922 | 9,009 | 10% | 37,159 | 34,074 | 9% |
| Adjusted Net Operating Revenue | 9,922 | 9,009 | 10% | 37,146 | 34,008 | 9% |
| EBITDA | 1,055 | 1,420 | -26% | 17,020 | 11,398 | 49% |
| Adjusted EBITDA | 3,840 | 4,563 | -16% | 19,274 | 17,780 | 8% |
| Regulatory EBITDA | 2,856 | 2,246 | 27% | 20,125 | 11,369 | 77% |
| Adjusted regulatory EBITDA | 5,642 | 5,392 | 5% | 21,522 | 18,117 | 19% |
| EBITDA margin | 11% | 16% | - 5,1 | 46% | 33% | 12,4 |
| Adjusted EBITDA Margin | 39% | 51% | - 11,9 | 52% | 52% | - 0,4 |
| Return on Equity (ROE) LTM | 3,9% | 3,3% | 0,6 | 3,9% | 3,3% | 0,6 |
| Adjusted Gross Debt | 61,438 | 59,107 | 4% | 61,438 | 59,107 | 4% |
| Adjusted Net Debt | 41,763 | 34,763 | 20% | 41,763 | 34,763 | 20% |
| Adjusted Net Debt/Adjusted LTM EBITDA | 2,2 | 2,0 | 11% | 2,2 | 2,0 | 11% |
| Net Income | 893 | -479 | 287% | 4,395 | 3,638 | 21% |
| Investments | 4,632 | 1,597 | 190% | 9,018 | 5,174 | 74% |
Earnings Release | 4Q23 | 6 |
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| 1. | Operating Result |
| 1.1. | Generation Segment |
| 1.1.1. | Generation Assets |
In 4Q23, the Company’s generation operations consisted of 100 plants, of which 47 were hydroelectric, 43 wind, 9 thermal and 1 solar, encompassing Corporate projects, Shared Ownership and holdings via SPEs.
Total installed capacity reached 44,654 MW in 4Q23, which represents 22% of the total installed capacity in Brazil. Of the total installed capacity, approximately 96% is derived from clean sources, with low greenhouse gas emissions.
| Source | Installed Capacity (MW) | Assured Capacity (aMW) |
Ac. Generated Energy (GWh) |
| Hydro (47 plants) | 42,293.49 | 17,118 | 139,649.61 |
| Thermal (9 plants) | 1,645.22 | 1,335 | 5,104.00 |
| Wind power (43 plants) | 714.85 | 134 | 2,191.91 |
| Solar (1 plant) | 0.93 | - | 1.10 |
| Total (100 plants) | 44,654.48 | 18,587 | 146,946.61 |
| 1.1.2. | System data |
In 4Q23, Brazil's Installed Capacity was 199,324.57 MW, of which 55% came from hydroelectric sources, 24% from thermal sources, 14% from wind power, 6% from solar power and 1% from nuclear power. Eletrobras accounts for 22% of Brazil's total installed capacity.
Source: Operating Results Jan 1, 2023 to Dec 31, 2023 - ONS
Earnings Release | 4Q23 | 7 |
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| 1.1.3. | Power Generation |
The reduction of approximately 14% in net generation in 2023 when compared to 2022 was mainly due to the levels of Affluent Natural Energies
(ENA) in the river basins of the North and Northeast regions, which registered a reduction, and the Southeast, Midwest and South regions,
which registered an increase, both influenced by the El Niño climate phenomenon. In addition, in 2022 the Eletrobras System accounted
for energy generated by Itaipu and Eletronuclear until the privatization.
| 1.1.4. | System data |
PLD
| 4Q23 | 4Q22 | ||
| Market | GSF (%) | 83.79 | 77.49 |
| PLD SE (R$/MWh) | 77.70 | 55.70 | |
| PLD S (R$/MWh) | 77.70 | 55.70 | |
| PLD NE (R$/MWh) | 77.70 | 55.70 | |
| PLD N (R$/MWh) | 77.70 | 55.70 |
|
GSF (%) |
Earnings Release | 4Q23 | 8 |
| |
| 1.1.5. | New Projects |
Two key projects currently under construction will add 330.45 MW to Eletrobras' installed capacity between 2023 and 2024: the 302.4 MW Coxilha Negra wind farm, located in Rio Grande do Sul state, and the 27 MW Casa Nova B wind farm, in Bahia state.
At the Coxilha Negra Wind Farm, work on the transmission lines was completed at the end of November 2023 and the mechanical assembly of two wind turbines in December 2023. Operation began in February 2024 and is 54% of the way through the physical schedule.
At the Casa Nova B wind farm, the transport of the wind turbine blades from the Port of Recife to the project site was completed, and 18 trafos were also recovered. Work also began on the 34.5kV medium-voltage network and line entry from the Casa Nova B wind farm to the Casa Nova II substation. The start of operations is scheduled for September 2024, with approximately 60% progress on the project completed.
| 1.2. | Trading Segment |
| 1.2.1. | Energy sold in 4Q23 |
Eletrobras Companies sold 36.6 TWh of energy in 4Q23, down 5% compared to 38.6 TWh traded in 4Q22, especially under the Operation & Maintenance (O&M) regime due to the decotization process which is taking place gradually over a 5-year period as from 2023, as well as contract terminations.
Volumes include the energy sold by plants under the quota regime, renewed by Law 12.783/2013, as well as by plants under the operating regime (Free Contracting Environment - ACL and Regulated Contracting Environment - ACR).
Sales: include developments under Law 13.182/15
Note: Average ACR prices in the chart do not include O&M. Average ACR prices in the chart do not include IEP contracts and thermal availability contracts. It includes the SPEs consolidated by Furnas: Santo Antônio HPP (from 3Q22), Baguari and Retiro Baixo HPPs (from 4Q23); and the SPE consolidated by Eletronorte: Teles Pires HPP (from 4Q23).
Earnings Release | 4Q23 | 9 |
| |
| 1.2.2. | Energy Balance |
This balance includes the Teles Pires, Baguari and Retiro Baixo plants, recently consolidated by Eletrobras.
| Energy Balance (aMW) | 2023 | 2024 | 2025 | 2026 | 2027 |
| Resources with no impact on Balance Sheet(1) | 1,419 | 1,192 | 1,192 | 1,192 | 946 |
| Resources (A) | 12,100 | 14,131 | 15,365 | 16,539 | 17,630 |
| Own resources (2) (3) (4) (5) | 10,782 | 12,849 | 14,164 | 15,427 | 16,599 |
| Hydro | 10,658 | 12,656 | 13,914 | 15,177 | 16,349 |
| Wind | 123 | 193 | 250 | 250 | 250 |
| Energy Purchase | 1,318 | 1,283 | 1,201 | 1,112 | 1,031 |
| Sales (B) | 10,960 | 9,478 | 8,000 | 6,643 | 5,730 |
| ACL - Bilateral Contracts + STM implemented | 8,276 | 5,774 | 4,906 | 3,548 | 2,730 |
| ACR - Except quotas | 2,684 | 3,704 | 3,095 | 3,095 | 3,000 |
| Average prices Contracts signed | |||||
| Average Price of Sales Contracts signed until Dec 31, 2023 lagging 1 quarter as of 2024 (ACR and ACL - R$/MWh) |
206 | 195 | 178 | 193 | 203 |
| Balance (A - B) | 1,140 | 4,653 | 7,364 | 9,896 | 11,900 |
| Balance considering estimated hedge (6) | - | 2,350 | 4,832 | 7,134 | 8,924 |
| Decontracted energy considering hedge estimate (7) | - | 15% | 29% | 40% | 48% |
Contracts signed until Dec 31, 2023.
It should be noted that the balance sheet takes into account the SPEs consolidated by Furnas: Santo Antônio HPP (as of 3Q22), Baguari and Retiro Baixo HPPs (as of 4Q23), whether in terms of resources, sales or average prices. In the same way, the SPE consolidated by Eletronorte, Teles Pires HPP (from 4Q23) is being considered.
1., Independent Energy Producers (IEP) contracts resulting from the Amazonas Distribuidora de-verticalization process, the thermal plant availability contracts and the Assured Capacity Quotas are not included in the balance sheet, whether in resources, requirements (sales) or average prices. These resources are presented in order to make up the total resources considered.
2. Own Resources include the Decotization plants (new IEPs) and the New Grants (Sobradinho, Itumbiara, Tucuruí, Curuá-Una and Mascarenhas de Moraes). For the hydroelectric projects, an estimate of GFIS2 was considered, i.e. the Assured Capacity taking into account the Adjustment Factors due to Internal Losses, Losses in the Basic Grid and Availability and adjustments due to the particularities of the portfolio.
3. The revised Assured Capacity values as defined in Ministerial Order No. 709/GM/MME of November 30, 2022 are taken into account
4. With the decotization process, the plants currently under the quota regime will be granted a new concession under the Independent Energy Producer (IEP) regime, which will take place gradually over a 5-year period starting in 2023. The Assured Capacity values were defined in Ministerial Order GM/MME No. 544/21.
5. Considering the new concession grants from 2023 onwards for the Sobradinho, Itumbiara, Tucuruí, Curuá-Una and Mascarenhas de Moraes plants, whose Assured Capacity values were defined in Ministerial Order GM/MME No. 544/21.
| Hydroelectric Power Plant Assured Capacity Quotas (aMW) | 2023 | 2024 | 2025 | 2026 | 2027 |
| Assured Capacity Quotas (6) (7) | 5,252 | 3,939 | 2,626 | 1,313 | 0 |
6. This does not include the Assured Capacity of the Jaguari HPP, of 12.7 aMW, whose concession is under provisional administration by Furnas.
7. Decotization will take place gradually over a 5-year period starting in 2023. The Assured Capacity values considered from 2023 onwards were those defined in Ministerial Order GM/MME No. 544/21.
8. The figures show an estimate of the energy not contracted. For 2023, the value used was 89.7%. For the other years, an average historical GSF value from 2018 to 2023 was used, of 81.8%. Source: CCEE, obtained from the CCEE website, at the following link: https://www.ccee.org.br/dados-e-analises/dados-geracao (in Portuguese), under the MRE option in the panel. It should be noted that this is only an estimate, based on facts that occurred in the past. The graph with the historical GSF values is shown on the page 8 of this report.
Earnings Release | 4Q23 | 10 |
| |
| 1.3. | Transmission Segment |
| 1.3.1. | Transmission lines - Km |
The Company ended 4Q23 with 73.8 thousand km of transmission lines (TLs) and 282 substations.
| Company | Own | In Partnership (1) | Total |
| Chesf | 22,042.9 | 1,810.8 | 23,853.7 |
| Eletronorte | 10,921.2 | 1,054.3 | 11,975.5 |
| CGT Eletrosul | 11,963.1 | 4.6 | 11,967.7 |
| Furnas | 21,612.0 | 4,379.8 | 25,991.8 |
| Total | 66,539.2 | 7,249.5 | 73,788.6 |
(1) Partnerships consider extensions proportional to the capital invested by Eletrobras Companies in the development.
| 1.3.2. | New Projects |
There are 199 large-scale transmission projects under implementation (reinforcements, improvements, and auction projects) with additional associated RAP of R$972 million between 2023-2027, which will add around 89 km of TLs and 4,166 MVA in substations. According to the ONS SGPMR system database, the Eletrobras companies had a total of 11,807 small-scale events under implementation, of which 11,134 were small-scale improvements and 673 were small-scale reinforcements.
| 2. | Consolidated result | IFRS |
| DRE (R$ million) | 4Q23 | 4Q22 | % | 2023 | 2022 | % |
| Generation Revenue | 7,221 | 6,805 | 6% | 26,617 | 24,161 | 10% |
| Transmission Revenue | 4,558 | 3,632 | 26% | 17,432 | 15,775 | 11% |
| Other Income | 79 | 366 | -79% | 426 | 1,102 | -61% |
| Gross Revenue | 11,858 | 10,803 | 10% | 44,475 | 41,038 | 8% |
| Deductions from Revenue | (1,936) | (1,794) | 8% | (7,316) | (6,963) | 5% |
| Net Operating Revenue | 9,922 | 9,009 | 10% | 37,159 | 34,074 | 9% |
| Energy resale, network, fuel and construction | (3,899) | (3,028) | 29% | (11,844) | (9,628) | 23% |
| Personnel, Material, Services and Others (1) | (2,156) | (4,044) | -47% | (8,960) | (10,028) | -11% |
| Depreciation and Amortization | (899) | (880) | 2% | (3,621) | (2,690) | 35% |
| Operating Provisions | (3,359) | (1,135) | 196% | (2,196) | (6,928) | -68% |
| (391) | (77) | -408% | 10,537 | 4,799 | 120% | |
| Shareholdings | 264 | 702 | -62% | 2,062 | 2,370 | -13% |
| Regulatory remeasurements - Transmission contracts | - | 3 | -100% | (12) | 365 | -103% |
| Other Income and Expenses | 283 | (87) | -424% | 1,143 | 187 | 512% |
| 156 | 540 | -71% | 13,730 | 7,721 | 78% | |
| Financial Result | (2,527) | (1,678) | 51% | (12,002) | (4,374) | 174% |
| Profit Before Tax | (2,371) | (1,138) | 108% | 1,728 | 3,347 | -48% |
| Income Tax and Social Contribution | 3,265 | 659 | 395% | 2,998 | (696) | -531% |
| Net Profit from Continuing Operations | 893 | (479) | 287% | 4,727 | 2,652 | 78% |
| Net Income from Discontinued Operations | - | - | - | (332) | 987 | -134% |
| Consolidated Net Profit | 893 | (479) | 287% | 4,395 | 3,638 | 21% |
| (1) | Includes donations and contributions |
Earnings Release | 4Q23 | 11 |
| |
| Adjusted Income Statement (R$ million) | 4Q23 | 4Q22 | % | 2023 | 2022 | % |
| Generation Revenue | 7,221 | 6,805 | 6% | 26,636 | 24,089 | 11% |
| Transmission Revenue | 4,558 | 3,632 | 26% | 17,432 | 15,775 | 11% |
| Other Income | 79 | 366 | -79% | 426 | 1,102 | -61% |
| Gross Revenue | 11,858 | 10,803 | 10% | 44,495 | 40,965 | 9% |
| Deductions from Revenue | (1,936) | (1,794) | 8% | (7,348) | (6,957) | 6% |
| Net Operating Revenue | 9,922 | 9,009 | 10% | 37,146 | 34,008 | 9% |
| Energy resale, network, fuel and construction | (3,948) | (2,972) | 33% | (11,859) | (9,575) | 24% |
| Personnel, Material, Services and Others (1) | (1,815) | (2,488) | -27% | (7,305) | (8,275) | -12% |
| Depreciation and Amortization | (899) | (880) | 2% | (3,621) | (2,690) | 35% |
| 3,260 | 2,669 | 22% | 14,361 | 13,468 | 7% | |
| Operating Provisions | (582) | 312 | -287% | (770) | (747) | 3% |
| Shareholdings | 264 | 702 | -62% | 2,062 | 2,370 | -13% |
| 2,941 | 3,683 | -20% | 15,653 | 15,090 | 4% | |
| Financial Result | (2,123) | (1,643) | 29% | (9,827) | (3,635) | 170% |
| Profit Before Tax | 819 | 2,040 | -60% | 5,826 | 11,455 | -49% |
| Income Tax and Social Contribution | 358 | 659 | -46% | (1,099) | (994) | 11% |
| Consolidated Net Profit | 1,176 | 2,700 | -56% | 4,727 | 10,461 | -55% |
| (1) | Includes donations and contributions |
| 2.1. | Operating Revenues |
| 2.1.1. | Generation |
In 4Q23, generation revenue was R$7,221 million, up R$416 million compared to 4Q22, mainly reflecting higher revenues from: (a) supply of R$690 million and (b) the short-term market (CCEE) of R$246 million, partially offset by lower revenues from: (c) operation and maintenance of R$202 million and (d) supply of R$43 million.
Earnings Release | 4Q23 | 12 |
| |
Power supply for distribution companies
Revenue from power supply for distribution companies is obtained from customers who are not end consumers, such as distributors, traders and generators. In 4Q23, this revenue was R$4,860 million, up R$690 million compared to 4Q22, mainly reflecting the consolidation of the SPEs in the amount of R$341 million: Teles Pires (R$272 million in Eletronorte), Baguari (R$53 million in Furnas) and Retiro Baixo (R$16 million in Furnas).
In addition, the following effects at Furnas stand out: (a) R$131 million increase in revenue from ACR contracts, extended as a result of renegotiation of hydrological risk of Mascarenhas de Moraes plant and (b) a greater quantity of energy contracted in the ACL, from 1,823 GWh in 4Q22 to 2,410 GWh in 4Q23, representing increase of R$91 million. At Chesf, revenues from supply increased by R$132 million as a result of the 374 MW increase in aMW sold on the ACL compared to the same period last year.
Power supply for end consumers
Revenue from power supply for end consumers, in turn, is obtained directly from the end consumer, such as industries or retailers. In 4Q23, revenues from procurement this kind of supply were R$934 million, down R$43 million compared to 4Q22.
The reduction in revenue from power supply for end consumers is primarily due to the lower volume of energy sold to industrial consumers covered by Law 13.182/15, specifically energy from the Itumbiara HPP in Furnas. This reduction was caused by unilateral cancellations by customers of part of the contracted procurement volumes. The impact of the reduction at Furnas was R$53 million, which was offset by: (a) the entry of new contracts in the ACL (R$19 million); and (b) the use of surplus energy for resale activities at SAESA (R$33 million). In turn, Eletronorte reported a reduction of R$24 million in revenues from procurement in 4Q23, of which R$19 million was related to a reduction in Albrás' revenues, due to an 8% reduction in the client’s average price reflecting variations in the parameters used to calculate the sale price (dollar, sector charges, average aluminum prices).
CCEE Revenue
CCEE (short-term market) revenue was R$387 million, up R$246 million compared to 4Q22, due to the increase in energy settled (higher GSF %) and in the PLD in 4Q23 compared to the same period in 2022. Of note were the following increases: Eletronorte of R$103 million, Chesf R$69 million and Furnas R$65 million.
Operation and Maintenance Revenue - Plants Renewed by Law 12.783/2013
Revenues from operation and maintenance were R$1,040 million, down R$202 million from 4Q22, mainly reflecting the start of the gradual decotization process of the quota-holding plants (20% each year), mitigated by the effects of the annual readjustment of the Annual Generation Revenue - RAG, in accordance with Homologation Resolution No. 3,068/2022 (2022-2023 cycle) and Homologation Resolution No. 3,225/2023 (2023-2024 cycle), impacting Eletronorte, Chesf and Furnas.
Earnings Release | 4Q23 | 13 |
| |
| 2.1.2. | Generation |
| Gross Revenue | 4Q23 | ||||||||
| Holding | Furnas | Chesf | CGT Eletrosul | Eletronorte | Total | Eliminations | Consolidated IFRS | ||
| Power supply for distribution companies | - | 2,271 | 155 | 2,102 | 400 | 4,929 | (69) | 4,860 | |
| Power supply for end consumers | - | 340 | 225 | 369 | - | 934 | - | 934 | |
| CCEE | - | 113 | 92 | 172 | 11 | 387 | - | 387 | |
| Operation and maintenance | - | 355 | 677 | 8 | - | 1,040 | - | 1,040 | |
| Generation Revenues | - | 3,079 | 1,149 | 2,652 | 411 | 7,291 | (69) | 7,221 | |
| Non-recurring items - Adjustments | - | - | - | - | - | - | - | - | |
| Adjusted Generation Revenue | - | 3,079 | 1,149 | 2,652 | 411 | 7,291 | (69) | 7,221 | |
| Gross Revenue | 4Q22 | ||||||||
| Holding | Furnas | Chesf | CGT Eletrosul | Eletronorte | Total | Eliminations | Consolidated IFRS | ||
| Power supply for distribution companies | - | 1,859 | 24 | 1,872 | 480 | 4,235 | (65) | 4,170 | |
| Power supply for end consumers | - | 359 | 225 | 393 | - | 977 | - | 977 | |
| CCEE | - | 48 | 22 | 68 | 2 | 141 | - | 141 | |
| Operation and maintenance | - | 433 | 799 | 10 | - | 1,243 | - | 1,243 | |
| Itaipu transfer | 274 | - | - | - | - | 274 | - | 274 | |
| Generation Revenues | 274 | 2,700 | 1,070 | 2,343 | 482 | 6,870 | (65) | 6,805 | |
| Non-recurring items - Adjustments | - | - | - | - | - | - | - | - | |
| Adjusted Generation Revenue | 274 | 2,700 | 1,070 | 2,343 | 482 | 6,870 | (65) | 6,805 | |
Generation Revenue by Contracting Environment
Below, we present Eletrobras' trading results by contracting environment.
| Volume (aMW) | 4Q23 | 4Q22 | Diff | % |
| Regulated contract | 4,913 | 3,956 | 956 | 24% |
| Hydroelectric quotas | 5,264 | 7,464 | (2,200) | -29% |
| Bilateral contract | 6,470 | 6,107 | 363 | 6% |
| STM Settlement | 2,172 | 1,266 | 906 | 72% |
Earnings Release | 4Q23 | 14 |
| |
| Revenue (R$ million) | 4Q23 | 4Q22 | Diff | % |
| Regulated contract | 3,056 | 2,543 | 513 | 20% |
| Hydroelectric quotas | 1,040 | 1,243 | (202) | -16% |
| Bilateral contract | 2,807 | 2,669 | 138 | 5% |
| CCEE | 387 | 141 | 246 | 174% |
| Other * | (69) | 210 | (279) | -133% |
| Average Price (R$/MWh) | 4Q23 | 4Q22 | Diff | % |
| Regulated contract | 220.2 | 217.2 | 3.0 | 1% |
| Hydroelectric quotas | 89.5 | 75.4 | 14.1 | 19% |
| Bilateral contract | 193.7 | 197.7 | (4.0) | -2% |
| STM Settlement (PLD) | 77.7 | 55.7 | 22.0 | 40% |
* Construction revenue, financial effect of Itaipu and eliminations (accounting adjustments)
| 2.1.3. | Transmission |
Transmission revenue was R$4,558 million in 4Q23, a 26% increase over 4Q22, mainly from construction revenue which went up R$813 million, O&M up R$109 million and contractual transmission revenue up R$4 million.
Operation & Maintenance (O&M) revenue
O&M revenue increased by R$109 million, mainly due to the publication of Aneel Homologation Resolution 3216/2023, effective as of July/2023, which primarily includes the tariff readjustment for the 23/24 cycle, as well as the partial recognition of the Periodic Tariff Review (RTP) of some tendered contracts.
Eletronorte's O&M revenue increased by R$62 million,
mainly reflecting the R$54 million increase related to renewed contract 058/2001. The results for the other companies were: Furnas with
+R$31 million, CGT Eletrosul with +R$22 million and Chesf with -R$10 million.
Construction Revenue
The construction revenue for the period is directly related to the investments made (appropriated and allocated) in the transmission projects in progress. Construction revenue totaled R$1,272 million, up R$813 million, mainly reflecting the R$372 million investment in Furnas' renewed contract 062/2001, Eletronorte's contract 058/2001 for R$273 million and Chesf's contract for R$122 million (CT 061/2001).
Contractual Finance Revenue
The contractual finance revenue is associated with the application of inflationary indices to the balances of the contract assets of each concession. The accumulated IPCA for October-December/2022 was 0.71%, while for October-December/2023 it was 0.78%. As for the IGP-M, the percentage varied from-2.46% to 1.46%.
Earnings Release | 4Q23 | 15 |
| |
The impact on the Eletrobras companies was: (a) CGT Eletrosul: +R$16 million; (b) Chesf: +R$1.4 million; (c) Furnas: -R$6 million, specifically contract 062 (RBNI R$19.2 million and RBSE -R$47.6 million) and (d) Eletronorte: -R$7.6 million (RBNI R$11.1 million and RBSE -R$18.7 million). The negative variation in RBSE amounts was due to the reduction in the average base as a result of the amortization of the existing balance.
This effect is due to the application of IFRS rules and differs from the regulatory revenue, which was adjusted in July 2023, according to Homologation Resolution No. 3.216/23.
| Transmission Operating Revenue (R$ million) |
4Q23 | 4Q22 | % | 2023 | 2022 | % |
| Transmission Revenues | 4,558 | 3,632 | 26% | 17,432 | 15,775 | 11% |
| Operation and maintenance revenue | 1,723 | 1,614 | 7% | 7,335 | 6,379 | 15% |
| Construction Revenue | 1,272 | 459 | 177% | 2,961 | 1,494 | 98% |
| Contractual Finance - Transmission | 1,562 | 1,559 | 0% | 7,136 | 7,901 | -10% |
| Non-recurring items - Adjustments | - | - | - | - | - | - |
| Adjusted Transmission Operating Revenue | 4,558 | 3,632 | 26% | 17,432 | 15,775 | 11% |
To verify revenue by Company, please access the financial statements on the IR website at https://ri.eletrobras.com/en/.
Regulatory Revenue
Regulatory transmission revenue varied between quarters due to: (i) re-profiling of RBSE of around R$915 million, (ii) monetary restatement by IPCA (most contracts) or IGP-M, of around R$120 million; and (ii) new investments, tariff revisions and adjustment portions and others, of around R$196 million. It should be noted that Aneel has extended the approval of the full RAP, resulting from the RTP, for concession contracts 057/2001, 058/2001, 061/2001 and 062/2001 to 2024.
It should also be noted that the main difference between regulatory and IFRS revenue in 4Q23 was due to the increase in RBSE's RAP as a result of the re-profiling reported above. Under IFRS, the increase in RAP due to the re-profiling did not result in the recognition of revenue, given that the balance of the contractual asset already provides for the increases in RAP, while under the regulatory method revenue is only recognized when the RAP is invoiced.
|
IFRS x Regulatory (R$ million) |
4Q23 | 4Q22 | Regulatory Variation | ||||
| IFRS | Adjustments | Regulatory | IFRS | Adjustments | Regulatory | ||
| Furnas | 1,802 | 216 | 2,018 | 1,425 | 98 | 1,523 | 32% |
| Chesf | 1,265 | 257 | 1,523 | 1,152 | 121 | 1,272 | 20% |
| CGT Eletrosul | 1,030 | (102) | 928 | 650 | 82 | 733 | 27% |
| Eletronorte | 527 | (18) | 509 | 498 | (70) | 428 | 19% |
| Eliminations | (66) | - | (66) | (93) | 437 | 345 | -119% |
| TOTAL | 4,558 | 353 | 4,911 | 3,632 | 669 | 4,301 | 14% |
Earnings Release | 4Q23 | 16 |
| |
Approved RAP x Regulatory Revenue 4Q23
The graph below shows the reconciliation between Approved RAP and regulatory revenue in 4Q23. Approved RAP corresponds to 3/12 of the RAP defined by Aneel. The Approved Adjustment Portion (AP) consists of 3/12 of the adjustment portion defined by Aneel for the availability of the facilities under Eletrobras' responsibility for the 2023/2024 cycle by means of Homologation Resolution 3216/2023. The discount on the variable portion is associated with the unavailability of transmission facilities, as regulated by Module 4 of the transmission rules.
The CDE/Proinfa amounts refer to the energy development account and the incentive program for alternative sources of power, considered in the credit notices (AVC) issued by the ONS as pass through. CDE Fund refers to the amounts relating to the CDE Fund (pass through) with PIS/Cofins. These amounts are not collected due to tariff discounts. It should be noted that these revenues should be treated as pass-through, since the transmission companies have the role of collecting this sector charge.
| 2.2. | Other revenues |
Other operating income (R$ million) |
4Q23 | 4Q22 | % | 2023 | 2022 | % |
| Other income | 79 | 366 | -79% | 426 | 1,102 | -61% |
Other revenues were R$79 million in 4Q23, down R$287 million compared to 4Q22. This was attributable to: (a) Eletronorte down R$164 million, due to the reclassification of R$117 million from CDE + PROINFA, which was accounted for in other revenues in 4Q22 and were allocated to O&M Revenues in 4Q23; and (b) Furnas down R$86 million, mainly due to actuarial gains (R$77 million) that occurred in 4Q22 and had no counterpart in 4Q23.
Earnings Release | 4Q23 | 17 |
| |
| 2.3. | Operating Costs and Expenses |
| Operating
Costs and Expenses (R$ million) |
4Q23 | 4Q22 | % | 2023 | 2022 | % |
| Energy purchased for resale | (942) | (976) | -3% | (3,028) | (3,118) | -3% |
| Charges on use of the electricity grid | (984) | (764) | 29% | (3,482) | (2,746) | 27% |
| Fuel for electricity production | (602) | (544) | 11% | (2,043) | (2,086) | -2% |
| Construction | (1,371) | (744) | 84% | (3,291) | (1,679) | 96% |
| Personnel, Material, Services and Others | (2,156) | (4,044) | -47% | (8,960) | (10,028) | -11% |
| Depreciation and Amortization | (899) | (880) | 2% | (3,621) | (2,690) | 35% |
| Regulatory
remeasurements - Transmission contracts |
- | 3 | - | (12) | 365 | -103% |
| Operating provisions | (3,359) | (1,135) | 196% | (2,196) | (6,928) | -68% |
| Costs and expenses | (10,313) | (9,084) | 14% | (26,634) | (28,910) | -8% |
| Non-recurring events | ||||||
| (-) Non-recurring PMSO events | 341 | 1,556 | -78% | 1,655 | 1,753 | -6% |
| (-) Non-recurring provisions | 2,776 | 1,446 | 92% | 1,426 | 6,181 | -77% |
| (-) Construction generation | - | - | - | - | 7 | - |
| (-) Regulatory remeasurements - Transmission Contracts | - | (3) | - | 12 | (365) | -103% |
| (-) Retroactive addition of ICMS Cal / Reclassification of Candiota oil value from the material account | - | - | - | 34 | (5) | -726% |
| (-) SAESA: Reversal of the TUST provision as a result of winning administrative dispute | - | 56 | - | - | 51 | - |
| (-) GSF cost allocated to Others in PMSO - Furnas | (49) | - | - | (49) | - | - |
| Recurring Costs and Expenses | (7,245) | (6,028) | 20% | (23,556) | (21,288) | 11% |
| 2.3.1. | Energy Purchased for Resale |
In 4Q23, energy purchased for resale totaled R$942 million, down R$34 million compared to 4Q22, primarily from (i) Furnas which was down R$111 million, due to the lower average price and quantity contracted, partially offset by (ii) Eletronorte which was up R$32 million due to the increase in energy purchased for resale from Teles Pires and (iii) CGT Eletrosul which was up R$37 million influenced by the expense of R$30 million relating to GSF insurance.
Earnings Release | 4Q23 | 18 |
| |
| 2.3.2. | Charges on use of the electricity grid |
In 4Q23, the charges on use of the electricity grid were R$984 million, up R$220 million compared to 4Q22, reflecting the adjustments in Aneel Homologation Resolution 3,217/2023, as well as the increase of approximately R$167 million in Eletronorte from the consolidation of Teles Pires.
| 2.3.3. | Fuel for Electricity Production |
In 4Q23, the costs associated with the use of fuels to produce electricity totaled R$602 million, up R$58 million YoY, primarily due to the R$46 million impact at Eletronorte due to the readjustment of contractual gas price and increase in gas consumption at the Mauá 3 and Aparecida TPPs, to serve the Out of the Merit and Price Order (FOMP) dispatches.
| 2.3.4. | Construction |
In 4Q23, construction costs totaled R$1,371 million, up R$628 million YoY due to Furnas’ R$381 million investments linked to the renewed 062/2001 contract; and (b) Eletronorte costs of R$284 million, mainly reflecting the R$272 million increase in the renewed 058/2001 contract.
| 2.3.5. | PMSO - Personnel, Material, Services and Other |
Staff
Recurring personnel costs were R$1,005 million in 4Q23, a 14% reduction compared to R$1,170 million in 4Q22, mainly reflecting the savings related to the dismissal of 2,811 employees at Eletrobras companies from the two Voluntary Dismissal Plans (VDPs), and the R$53 million increase from the 4.18% salary readjustment under the current Collective Bargaining Agreement. The number of employees was reduced by 14%, from 9,670 in 2022 to 8,328 in 2023.
Non-recurring items: VDP Incentive Plans totaling R$25 million and retroactive impact of profit sharing based on the 2023 results of R$208 million in December/2023.
Material
Material costs totaled R$99 million, up R$7 million compared to 4Q22, with no significant variations and no non-recurring effects in the quarter.
Services
Recurring services costs totaled R$576 million, down R$212 million from 4Q22, mainly reflecting costs at Furnas, down R$104 million and Eletronorte, down R$86 million. This decrease was partially offset by the R$69 million increase at the holding company, including R$46 million spent on consultancy and auditing as well as R$17 million on Legal Services.
Earnings Release | 4Q23 | 19 |
| |
Non-recurring items: R$80 million in the holding company related to consultancies for the Transformation Office.
Others
Other recurring costs and expenses totaled R$135 million in 4Q23, down R$303 million compared to 4Q22, reflecting: (a) R$156 million reduction at Furnas due to reclassifications under Indemnities and Condemnations, which is now allocated to Operating Provisions; and (b) the holding company, with a total reduction of R$97 million, resulting from operating losses due to the transfer of the energy trading activity from Itaipu to ENBPar of R$62 million, besides the R$21 million reduction in Legal Costs.
|
PMSO (R$ million) |
4Q23 | ||||||||
| Eletrobras | Furnas | Chesf | Eletronorte | CGT Eletrosul | Eletropar | Total | Eliminations | Consolidated IFRS | |
| Staff | (175) | (369) | (267) | (274) | (106) | (0,4) | (1,192) | - | (1,192) |
| Voluntary Dismissal Plan - Provision | (10) | (9) | 3 | (5) | (4) | - | (25) | - | (25) |
| Material | (1) | (21) | (17) | (46) | (14) | - | (99) | - | (99) |
| Services | (161) | (222) | (105) | (116) | (50) | (0,9) | (656) | - | (656) |
| Others | (6) | (74) | (99) | 33 | (28) | (1,8) | (175) | (8) | (184) |
| PMSO | (354) | (696) | (484) | (408) | (202) | (3,1) | (2,148) | (8) | (2,156) |
| Non-recurring events | |||||||||
| Personnel: Incentive Plans (PAE, PDC) | 10 | (11) | (3) | 5 | 4 | - | 4 | - | 4 |
| Staff: retroactive PLR | - | - | - | - | - | - | 208 | - | 208 |
| Services: Consultancies associated with transformation |
80 | - | - | - | - | - | 80 | - | 80 |
| Other: GSF cost allocated to Others - Furnas |
- | 49 | - | - | - | - | 49 | - | 49 |
| Recurring PMSO | (264) | (658) | (488) | (403) | (198) | (3,1) | (1,806) | (8) | (1,815) |
Earnings Release | 4Q23 | 20 |
| |
|
PMSO (R$ million) |
4Q22 | ||||||||
| Eletrobras | Furnas | Chesf | Eletronorte | CGT Eletrosul | Eletropar | Total | Eliminations | Consolidated IFRS | |
| Staff | (144) | (331) | (312) | (367) | (187) | (0,6) | (1,341) | - | (1,341) |
| Voluntary Dismissal Plan - Provision | (43) | (254) | (392) | (423) | (149) | - | (1,260) | - | (1,260) |
| Material | (0) | (22) | (14) | (29) | (28) | - | (92) | - | (92) |
| Services | (92) | (326) | (120) | (202) | (47) | (0,7) | (788) | - | (788) |
| Others | (130) | (241) | (103) | (105) | 4 | - | (575) | 13 | (562) |
| PMSO | (409) | (1,174) | (941) | (1,125) | (407) | (1,3) | (4,057) | 13 | (4,044) |
| Non-recurring events | |||||||||
|
Personnel: Incentive Plans (PAE, PDC); and Labor Claims (Furnas). |
43 | 264 | 392 | 423 | 149 | - | 1,270 | - | 1,270 |
| Personnel: Retroactive Profit Sharing –Eletrobras System | - | - | - | - | - | - | 161 | - | 161 |
| Other: Indemnities, losses and damages (Furnas); SAESA - arbitration no. 21.511 (Furnas); and Transfer of Itaipu's energy trading activity to ENBPar (Holding). | 62 | 62 | - | - | - | - | 124 | - | 124 |
| Recurring PMSO | (304) | (847) | (549) | (702) | (258) | (1,3) | (2,501) | 13 | (2,488) |
For comparative purposes, 3Q22 PMSO amount has been adjusted to "other", reflecting the actuarial benefit that is now impacted by the provisions.
| Other Costs and Expenses | 4Q23 | 4Q22 |
| Compensation, losses and fines | 123 | 496 |
| Insurance | 31 | 49 |
| Donations and contributions | 34 | 65 |
| Invested companies | 31 | (103) |
| Rent | 22 | 21 |
| Taxes | 20 | 1 |
| Recovery of expenses | (121) | (47) |
| Others | 44 | 79 |
| Total | 184 | 562 |
Earnings Release | 4Q23 | 21 |
| |
Operating provisions
| Operating Provisions (R$ million) | 4Q23 | 4Q22 | % | 2023 | 2022 | % |
| Operating Provisions / Reversals | (3,359) | (1,135) | 196% | (2,196) | (6,928) | -68% |
| Non-recurring items / Adjustments | 2,776 | 1,446 | 92% | 1,426 | 6,181 | -77% |
| Provision/Reversal for Litigation | 380 | (379) | -200% | (1,246) | 1,858 | -167% |
| Estimated losses on investments | (254) | (918) | -72% | (392) | (92) | 325% |
| Provision for the Implementation of Actions - Compulsory Loan | (22) | 31 | -173% | (39) | 102 | -138% |
| PCLD - Loans and financing | 9 | 2,528 | -100% | 22 | 3,348 | -99% |
| PCLD
Estimated prospective credit loss (CPC 48) ELN |
- | - | - | - | 867 | - |
| RGR refund | 69 | - | - | 558 | - | - |
| Onerous contracts | 862 | 14 | 5,933% | 862 | (230) | -475% |
| Measurement at fair value of assets held for sale | 742 | - | - | 704 | - | - |
| Provision for reduction of Fuel inventories | - | 26 | - | - | 26 | - |
| Impairment¹ | 956 | 110 | 771% | 956 | 268 | 257% |
| Provision for actuarial liabilities | - | 35 | - | - | 35 | - |
| Provision for demobilization | 35 | - | - | - | - | - |
| Recurring/unadjusted provisions/reversals | ||||||
| PCLD - Consumers and resellers and PCLD (excluding Estimate of prospective credit loss (CPC 48) ELN) | (383) | (7) | 5431% | (467) | (808) | -42% |
| GAG Melhoria1 | 44 | 118 | -63% | 144 | (9) | -1677% |
| Other | (243) | 200 | -221% | (447) | 69 | -745% |
| Adjusted provisions/reversals | (582) | 312 | -287% | (770) | (747) | 3% |
Positive values in the table above mean a reversal of the provision.
1 Management of generation assets for investment in improvements.
| § | Provision for Litigation:
went from a reversal of R$379 million in 4Q22 to a provision of R$380 million in 4Q23, highlighting R$191 million at Chesf, due to tax provisions, primarily the ICMS-AL process of around R$203 million, R$108 million at Furnas in civil, tax and environmental contingencies. Finally, in the Parent Company, there was a reversal of R$24 million in compulsory loan contingencies, due to savings resulting from discounts on agreements of R$497 million, which was negatively offset, in part, by the constitution of a provision of R$473 million due to unfavorable decisions in specific lawsuits. These lawsuits are being dealt with in court and are also being negotiated, with the possibility of reversal in future quarters. |
| § | Onerous contracts: R$862 million in 4Q23, influenced by onerousness provisions on trading contracts attributed, in particular, to Jirau and Hermenegildo. Noteworthy also was Chesf with R$389 million and CGT Eletrosul with R$357 million. |
Earnings Release | 4Q23 | 22 |
| |
| § | Measurement of Assets for sale: amounted to a reversal of R$742 million in 4Q23, driven by Furnas' increase of R$632 million , mainly due to the difference between the book value and the appraised value of HPP Santa Cruz, which was reclassified to "Asset held for Sale". |
| § | Impairment: In 4Q23, the Eletrobras companies applied the impairment test to long-term assets, recording a provision of R$956 million in the period. Highlights include (i) CGT Eletrosul with R$764 million provisioned for the valuation of its generating units, in particular, WPP Coxilha Negra at R$592 million and SHPP João Borges at R$57 million; and (ii) Eletronorte with R$262 million from HPP Samuel. |
| Cash-generating Units (R$ million) |
12/31/2022 | Movements | 12/31/2023 |
| UTE Candiota¹ | 1,043 | (1,043) | - |
| UTE Santa Cruz¹ | 567 | (567) | - |
| UTE Candiota Fase B¹ | 277 | (277) | - |
| Eólica Casa Nova I | 235 | 32 | 266 |
| UHE Batalha | 79 | (3) | 75 |
| UTE Mauá Bloco 4 | 49 | - | 49 |
| UTE Aparecida Óleo | 46 | - | 46 |
| UTE Mauá Bloco 1 | 41 | - | 41 |
| PCH Funil | 39 | (39) | - |
| Eólica Ventos de Angelim S.A. | 32 | (32) | - |
| PCH Pedra | 12 | 9 | 22 |
| Eólica Coxilha Negra | - | 592 | 592 |
| UHE Samuel | - | 262 | 262 |
| PCH João Borges | - | 58 | 58 |
| PCH Rio Chapéu | - | 48 | 48 |
| Eólica Coxilha Seca | - | 47 | 47 |
| Ibirapuitã¹ | - | 68 | 68 |
| Outros | 200 | 2 | 202 |
| 2,621 | (844) | 1,777 |
¹ Amounts reclassified to "Asset held for Sale".
| § | Estimated losses on doubtful accounts (PCLD) for consumers and resellers: a provision was established up for receivables from Amazonas Energia in 2022, which in that period was intended to reflect the risk observed due to the continued default on debt confession instruments (ICD). It should be noted that there was a provision of R$328.7 million in 4Q23 relating to Amazonas Energia's default. |
Earnings Release | 4Q23 | 23 |
| |
| 2.4. | Equity Interests |
| 4Q23 | 4Q22 | % | 2023 | 2022 | % | |
| Highlights Affiliates | ||||||
| Eletronuclear | (386) | 71 | -642% | 27 | 141 | -81% |
| CEB Lajeado | 12 | 24 | -50% | 47 | 58 | -18% |
| Cemar | 81 | 130 | -38% | 259 | 212 | 22% |
| CTEEP | 358 | 190 | 88% | 1.032 | 792 | 30% |
| Itaipu | 0 | 0 | - | 0 | 120 | -100% |
| Lajeado | 35 | 33 | 6% | 139 | 112 | 24% |
| SPES Highlights | ||||||
| BMTE | 51 | 46 | 11% | 209 | 177 | 18% |
| Serra do Facão | 49 | 11 | 324% | 113 | 9 | 1137% |
| Norte Energia | (133) | (60) | 122% | (427) | (324) | 32% |
| ESBR Jirau | 13 | (2) | -640% | 18 | (42) | -142% |
| IE Madeira | 42 | 44 | -5% | 202 | 231 | -13% |
| Chapecoense | 39 | 53 | -26% | 183 | 169 | 8% |
| Other Equity Interests | 103 | 161 | -36% | 261 | 712 | -63% |
| TOTAL Equity Interests | 264 | 702 | -62% | 2,062 | 2,370 | -13% |
Total equity interests were negatively impacted by Eletronuclear, an affiliated company, due to the scheduled stoppage of the Angra I and II plants and positively by the affiliated Company CTEEP due to reconstitution of the financial component of RBSE and the volume of tax benefit on the payment of Interest on Equity (IOE) recognized in 4Q23.
Earnings Release | 4Q23 | 24 |
| |
| 2.5. | Financial Results |
Financial Results (R$ million) |
4Q23 | 4Q22 | % | 2023 | 2022 | % |
| Financial Income | 844 | 628 | 34% | 3,083 | 3,428 | -10% |
| Interest
income, fines, commissions and fees |
(15) | 288 | -105% | 153 | 997 | -85% |
| Revenue from financial investments | 755 | 638 | 18% | 2,862 | 2,212 | 29% |
| Late payment surcharge on electricity | 51 | (144) | -136% | 166 | 253 | -34% |
| Interest income on dividends | - | (57) | - | - | 11 | - |
| Other financial income | 111 | 244 | -54% | 479 | 567 | -15% |
| (-) Taxes on financial income | (58) | (341) | -83% | (578) | (612) | -6% |
| Financial Expenses | (2,449) | (2,228) | 10% | (10,221) | (6,794) | 50% |
| Debt charges | (1,269) | (1,542) | -18% | (6,464) | (4,705) | 37% |
| Charges from obligations with CDE | (593) | (536) | 11% | (2,292) | (1,097) | 109% |
| River basin revitalization charges | (91) | (94) | -3% | (355) | (187) | 90% |
| Other financial expenses | (496) | (56) | 790% | (1,110) | (805) | 38% |
| Net Financial Items | (922) | (78) | 1078% | (4,864) | (1,007) | 383% |
| Monetary changes | (313) | (255) | 23% | (1,796) | (877) | 105% |
| Exchange rate variations | (25) | 215 | -111% | 170 | 447 | -62% |
| Derivatives | (278) | 220 | -227% | (1,522) | (356) | 327% |
| Monetary updates - CDE | (217) | (210) | 4% | (1,384) | (198) | 601% |
| Monetary updates - river basins | (89) | (49) | 83% | (332) | (23) | 1,341% |
| Financial Result | (2,527) | (1,678) | 51% | (12,002) | (4,374) | 174% |
| Adjustments | ||||||
| (-) Income from Distributors + AIC | 20 | (244) | -108% | (40) | (839) | -95% |
| (-)
Regularization of tax credits / Fines and Infraction Notices |
- | - | - | 29 | - | - |
| (-) Monetary update on compulsory loans | 238 | 286 | -17% | 1,265 | 1,621 | -22% |
| (-)
Interest and exchange variation on Itaipu sale to ENBPar |
- | - | - | - | (242) | - |
| (-) Financial charges/correction of differences between prices charged in energy sales contracts and new price agreed in the contractual addenda until October/22 | - | (139) | - | - | - | - |
| (-) Reversal of penalties for unavailability - CGT Eletrosul | - | - | - | - | (35) | - |
| (-) Write-off of unreconciled judicial deposits | - | 132 | - | 451 | 132 | 241% |
| (-)
Tax installment indemnification of reversible assets Tucuruí and Curua-Uma HPPs |
- | - | - | - | 101 | - |
| (-) PIS/Cofins on IOE | 146 | - | - | 470 | - | - |
| Adjusted Financial Result | (2,123) | (1,643) | 29% | (9,827) | (3,635) | 170% |
Earnings Release | 4Q23 | 25 |
| |
In 4Q23, the adjusted financial result was negative R$2,123 million, compared to negative R$1,643 million in 4Q22. The main variations in 4Q23 were:
| § | Lower debt charges, of R$1,269 million in 4Q23 down from R$1,542 million in 4Q22. This improvement was mainly due to the reduction in charges incurred at SAESA in the amount of R$128.8 million with the restructuring of the Company's debt with the BNDES in November/2023, comprising: (i) prepayment of the estimated portion of R$2 billion; and (ii) assumption of approximately R$11.5 billion by Eletrobras. There was also a reduction of R$68 million in the charges related to the issuance of debentures’ commercial notes due to the deferral of the cost of structuring the 2023 debentures (R$225 million) recognized in Eletrobras' results in 3Q23. |
| § | Monetary restatement (Selic rate) on the provision for contingency for compulsory loans declined from R$286 million in 4Q22 to R$238 million in 4Q23, due to the reduction in the provision inventory and the Selic rate variation in the period. |
| § | CDE obligation charges and CDE monetary updates (IPCA financial expenses + charges on the outstanding balance of CDE obligations, the charge being 7.6% per year) amounted to R$810 million in 4Q23. These obligations were established by Law 14.182/21 (Privatization of Eletrobras), as one of the conditions for obtaining new electricity generation concession grants for another 30 years. The charges were calculated based on the data published in CNPE Resolution 015/2021: (a) the present value of the obligation; (b) the future flow of payments; and (c) the payment term. |
| § | River basin revitalization charges (5.67% charge), of R$91 million in 4Q23, and Monetary updates - river basins of R$89 million. These obligations were established by Law 14.182/21 (Privatization of Eletrobras), as one of the conditions for obtaining the new concession grants for electricity generation, for another 30 years. The charges were calculated based on the data published in CNPE Resolution 015/2021: (a) the present value of the obligation; (b) the future flow of payments; and (c) the payment term. |
| § | Exchange rate variations: negative variation in the exchange rate update in the amount of R$239 million, due to the 2.4% depreciation of the dollar against the real observed in 4Q22 in foreign currency financing, contributing to a positive result of R$215 million in that quarter. 4Q23 was influenced by the Cross Currency Swap, as described below. |
| § | Variations in derivatives:
negative variation in derivatives in the amount of R$498 million due to: (a) losses with derivatives at Eletronorte of R$317 million in
4Q23, influenced by the variation in the quantity of energy, macroeconomic indices (dollar and Selic) and the projection of the price
of aluminum on the London Metal Exchange - LME for 12 months, which is used as a benchmark for payment of the premium provided for in
the contract with Albras; and (b) variation in the fair value of the debt linked to the CDI resulting from the Cross Currency Swap
operation in the notional amount of R$6,325 million, with the objective of protecting the bonds issued against exchange variation. An expense of R$147 million was recorded at the holding company in 4Q23 and R$33 million was recorded at CGT Eletrosul, with no counterpart in 4Q22. |
| § | Other financial expenses: non recurrent PIS/Cofins on the IOE issued by Furnas and Eletronorte in the amount of R$146 million. |
Earnings Release | 4Q23 | 26 |
| |
| CDE Charges and Projects Law 14.182/2021 |
4Q23 - In R$ million | |||
| Furnas | Chesf | Eletronorte | Total | |
| Debt charges - CDE obligations | (170) | (248) | (174) | (593) |
| Debt charges - Revitalization of river basins | (24) | (36) | (31) | (91) |
| Passive monetary restatement - CDE obligations | (63) | (91) | (64) | (217) |
| Passive monetary updating - Revitalization of river basins | (23) | (36) | (30) | (89) |
| Total CDE charges and Projects - Law 14.182/2021 | (280) | (411) | (299) | (990) |
| 2.6. | Current and deferred taxes |
| Income Tax and Social Contribution | 4Q23 | 4Q22 | % | 2023 | 2022 | % |
| Current income tax and social contribution | (45) | 99 | -145% | (513) | (1,630) | -69% |
| Deferred income tax and social contribution | 3,310 | 560 | 491% | 3,511 | 934 | 276% |
| Total income tax and social contribution | 3,265 | 659 | 395% | 2,998 | (696) | -531% |
| Adjustments | (2,907) | - | - | (4,097) | (298) | 1275% |
| IOE / Tax Savings – Furnas and Eletronorte1 | (453) | - | - | (1,643) | (298) | 451% |
| Constitution of negative tax base - SAESA | (2,454) | - | - | (2,454) | - | - |
| Adjusted income tax and social contribution | 358 | 659 | -46% | (1,099) | (994) | 11% |
¹ PIS/Cofins tax related to Furnas’ and Eletronorte’s IOE can be found in the Financial Result.
In 4Q23, current and deferred taxes were a debt balance of R$358 million, down 46% YoY, mainly due to the Interest on Equity from subsidiaries Furnas and Eletronorte in the total amount of R$1,580 million which generated tax savings of R$453 million, and the constitution of deferred tax assets of R$2,454 million relating to SAESA.
| 2.7. | EBITDA |
| 2.7.1. | Consolidated EBITDA |
| Consolidated EBITDA (R$ million) | 4Q23 | 4Q22 | % | 2023 | 2022 | % |
| Results for the year | 893 | (479) | -287% | 4,395 | 3,638 | 21% |
| + Provision for Income Tax and Social Contribution | (3,265) | (659) | 395% | (2,998) | 696 | -531% |
| + Financial Result | 2,527 | 1,678 | 51% | 12,002 | 4,374 | 174% |
| + Amortization and Depreciation | 899 | 880 | 2% | 3,621 | 2,690 | 35% |
| EBITDA | 1,055 | 1,420 | -26% | 17,020 | 11,398 | 49% |
| Revenue Adjustments | - | - | - | (12) | (66) | -81% |
| Cost and Expense Adjustments | 292 | 1,609 | -82% | 1,652 | 1,441 | 15% |
| Provision Adjustments | 2,776 | 1,446 | 92% | 1,426 | 6,181 | -77% |
| Other Income and Expenses Adjustments | (283) | 87 | -424% | (1,143) | (187) | 512% |
| Discontinued Operations Adjustments | - | - | - | 332 | (987) | -134% |
| Adjusted EBITDA | 3,840 | 4,563 | -16% | 19,274 | 17,780 | 8% |
Earnings Release | 4Q23 | 27 |
| |
| 3. | Debt and receivables |
Gross debt was R$60.8 billion, down R$9.7 billion QoQ and up R$1.7 billion YoY. The increase in gross debt compared to the same period last year was due to the conclusion of the consolidation process of SPE Teles Pires, which added R$2.7 billion to debt, as well as significant issues of capital market instruments in August and September, through Furnas, CGT Eletrosul e Eletrobras holding company, for a total of R$10.7 billion.
The QoQ reduction was mainly due to the settlement of the Eletrobras Commercial Note in the first half of October, in the amount of approximately R$6.2 billion, and the prepayment of R$2.1 billion relating to the debts of Santo Antônio Energia S.A. (SAESA), which led to a subsequent reduction in the holding company's consolidated indebtedness.
The early repayments and funding reduced the average term of the debt by around 5.5 months and cost was reduced by 92 bps, resulting in an average cost of CDI + 1.5091% p.a. at the end of the period.
The net debt/adjusted EBITDA ratio reached 2.2x in 4Q23.
| 3.1. | Holding Company / Parent Company and Consolidated |
| 3.1.1. | Loans and financing payable - R$ billion |
| 3.1.2. | Net Debt |
| Net Debt (R$ million) | Dec 31, 2023 | Sep 30, 2023 |
| (+) Gross Debt | 60,780 | 70,511 |
| (+) Derivatives (currency hedge) Net | 658 | 479 |
| (-) (Cash and Cash Equivalents + Current Securities) | 18,967 | 31,276 |
| (-) Loans receivable | 628 | 422 |
| (-) Net balance of Itaipu Financial Assets1 | 80 | 184 |
| Net Debt | 41,763 | 39,107 |
1 See Note 15 to the 2023 Annual Financial Statements.
Highlight: Since 3Q22, Eletrobras' debt has been substantially affected by the consolidation of SAESA's gross debt.
Earnings Release | 4Q23 | 28 |
| |
| 3.1.3. | Debt Composition |
| Creditor | Index | Average cost (per year) |
Total Balance (R$ thousand) |
Share of Total (%) | |
| Debentures, FIDC and other securities |
CDI | CDI + 1.00% to 2.17%, 117.6% CDI |
12,662,128 | 20.83% | |
| Debentures and other securities |
IPCA | IPCA + 3.75% to 7.49% | 14,412,487 | 23.71% | |
| BNDES | IPCA, TJLP, Fixed rate |
IPCA + 5.38% to 6.41%; TJLP to TJLP + 3% |
8,656,237 | 14.24% | |
| Banco do Brasil | CDI, IPCA, TJLP, CDI | TJLP + 2%, CDI + 1.65% to 2.25%, IPCA + 6.56% | 5,398,989 | 8.88% | |
| Petrobras / Vibra Energia | Selic | Selic | 2,492,397 | 4.10% | |
| Caixa Econômica Federal | IPCA | IPCA + 6.56% | 1,684,681 | 2.77% | |
| Bradesco | CDI, IPCA | IPCA + 6.56%; CDI + 2% to 2.09% | 1,467,661 | 2.41% | |
| Itaú | IPCA, CDI | IPCA + 6.56%; CDI + 1.60% to 2.28% | 1,284,222 | 2.11% | |
| Banco do Nordeste do Brasil | CDI, IPCA | IPCA + 2.74% to 6.56%, 3% to 10%, TFC + 2% to 3% | 970,515 | 1.60% | |
| Other creditors | CDI, IPCA, TJLP, Fixed rate | IPCA + 6.56%, CDI + 2% to 2.17%, 122.84% CDI, TJLP + 5%; pre-fixed rate up to 10% | 4,851,135 | 7.98% | |
| Foreign Currency - Bonds and other debts | USD | 4.63% to 6.27%, SOFR | 6,695,288 | 11.02% | |
| Foreign currency - other debts | EUR | 2.00% to 4.50% | 204,552 | 0.34% | |
| TOTAL | 60,780,291 | 100% | |||
* For accounting balance purposes, the debt is stated in the original currency of the loan contract.
However, it should be noted that the Company has carried out currency hedge operations for some of its foreign currency debts, which with their respective equivalent rates (post hedge) linked to the CDI are as follows: 2025 Bond - 97.41% of CDI; 2030 Bond - CDI+1.70% p.a. and Citibank - CDI + 1.70% p.a.
| 4. | Loans and Financing (Receivables) |
| 4.1. | Holding Company / Parent Company and Consolidated |
|
R$ billion |
This does not include R$79.6 million in receivable from Itaipu's financial assets, $3,989 million in PCLD and current charge.
Earnings Release | 4Q23 | 29 |
| |
| 4.2. | RBSE |
In April 2023, ANEEL issued Technical Note 085/2023, which addresses the comments on the calculations presented as part of the payment of RBSE's financial component in Technical Note 085/2022-SGT/ANEEL of June 2022, which in turn revisited the requests for reconsideration filed as part of payment of RBSE's financial component and re-profiling. The document does not constitute a decision by ANEEL, and therefore has no practical effect as of the date of publication of this document, since it depends on a decision by the ANEEL board, and therefore had no impact on Homologation Resolution 3216/23, which established the RAPs for the 2023-2024 cycle. The Company continues to monitor and act on the issue so that the assumptions, methodologies and calculations considered so far remain in force.
|
RBSE Expected Flow R$ million |
23-24 | 24-25 | 25-26 | 26-27 | 27-28 | ||
| Financial Component Re-profiled with Social Charges | |||||||
| Chesf | 1,913 | 1,913 | 1,913 | 1,913 | 1,913 | ||
| Eletronorte | 893 | 893 | 893 | 893 | 893 | ||
| CGT Eletrosul | 418 | 418 | 418 | 418 | 418 | ||
| Furnas | 3,060 | 3,060 | 3,060 | 3,060 | 3,060 | ||
| Total | 6,284 | 6,284 | 6,284 | 6,284 | 6,284 | ||
| Economic Component with Social Charges |
|||||||
| Chesf | 1,262 | 258 | 760 | 760 | 760 | ||
| Eletronorte | 649 | -87 | 281 | 281 | 281 | ||
| CGT Eletrosul | 213 | -52 | 81 | 81 | 81 | ||
| Furnas | 2,051 | 587 | 1,319 | 1,319 | 1,319 | ||
| Total | 4,175 | 706 | 2,441 | 2,441 | 2,441 | ||
| Total RBSE | |||||||
| Chesf | 3,175 | 2,171 | 2,673 | 2,673 | 2,673 | ||
| Eletronorte | 1,542 | 806 | 1,174 | 1,174 | 1,174 | ||
| CGT Eletrosul | 631 | 366 | 499 | 499 | 499 | ||
| Furnas | 5,111 | 3,647 | 4,379 | 4,379 | 4,379 | ||
| Total | 10,459 | 6,990 | 8,725 | 8,725 | 8,725 | ||
The figures above include TFSEE (Electricity Services Inspection Fee) charges and funds for R&D and Energy Efficiency, and do not include PIS and COFINS. In addition, the data refers to the tariff cycle (July to July of each year) and not the calendar year (January to December). The amounts approved in the re-profiling have been updated by the IPCA.
| 4.2.1. | RBSE accumulated amortization (R$ million) |
| Chesf | CGT Eletrosul | Eletronorte | Furnas | Total |
| 2,690 | 538 | 1,176 | 4,213 | 8,617 |
| 5. | Investments |
In 4Q23, investments totaled R$4,632 million, 148% higher than in 3Q23. For the full year, investments totaled R$9,018 million, up 60% compared to 2022.
Earnings Release | 4Q23 | 30 |
| |
|
Investments (R$ million) |
4Q23 | 3Q23 | 2023 | 2022 |
4Q23 X 3Q23 |
4Q23 X 4Q22 |
2023 X 2022 |
| Generation Corporate | 1,238 | 486 | 2,727 | 1,568 | 155% | 120% | 147% |
| Implementation / Expansion | 492 | 193 | 1,183 | 382 | 155% | 119% | 210% |
| Maintenance | 746 | 292 | 1,545 | 721 | 155% | 121% | 114% |
| Eletronuclear | - | - | - | 465 | - | - | - |
| Transmission Corporate | 1,372 | 958 | 3,528 | 1,981 | 43% | 66% | 78% |
| Expansion | 80 | 56 | 214 | 252 | 43% | -14% | -15% |
| Reinforcements and Improvements | 1,053 | 740 | 2,459 | 931 | 42% | 106% | 164% |
| Maintenance | 239 | 162 | 855 | 797 | 48% | 8% | 7% |
| Infrastructure and Others | 295 | 93 | 552 | 411 | 217% | 56% | 34% |
| SPEs | 1,728 | 334 | 2,211 | 1,679 | 417% | 9,195% | 32% |
| Generation - Contributions | 53 | - | 109 | 1,660 | - | 334% | -93% |
| Generation - Acquisition | 1,098 | 334 | 1,496 | - | 229% | - | - |
| Transmission - Contributions | - | - | 29 | 19 | - | - | 53% |
| Transmission - Acquisition | 577 | - | 577 | - | - | - | - |
| Total | 4,632 | 1,871 | 9,018 | 5,639 | 148% | 190% | 60% |
Generation
Investments in generation totaled R$2,727 million in 2023, with the main amounts spent on:
| § | Implementation and Expansion: R$933 million from CGT Eletrosul for the implementation of materials for the Coxilha Negra Wind Farm; R$184 million from Furnas for the Santa Cruz TPP in Combined Cycle commissioning; and R$48 million from Chesf for the Casa Nova A and B wind farms. |
| § | Maintenance: Chesf with R$624 million for maintenance, notably the replacement of equipment at Paulo Afonso IV and Sobradinho; Eletronorte with R$521 million, primarily for the Tucuruí and UTE Mauá 3 plants; and Furnas with R$274 million in maintenance and modernizations. |
| § | M&A: Highlights include the Baguari M&A for R$875 million, the Teles Pires M&A for R$333 million and the Retiro Baixo M&A for R$222 million. |
Transmission
Investments in transmission totaled R$3,528 million in 2023, with the following standing out:
| § | Chesf - R$1.142 billion in reinforcements, improvements and maintenance, with R$351 million in large-scale reinforcement and improvement projects. |
| § | Furnas - R$1.221 billion in reinforcements, improvements and maintenance, with emphasis on the Itumbiara substation and the replacement of the synchronization system at 46 locations. |
| § | Eletronorte - R$754 million in reinforcements, improvements and maintenance, of which R$514 million was invested in 49 large-scale projects. |
| § | CGT Eletrosul - R$385 million in various reinforcement, improvement and maintenance projects, of which R$193 million was invested in 38 large-scale reinforcement and improvement projects. |
Earnings Release | 4Q23 | 31 |
| |
| 6. | ESG 4Q23 |
| PILLAR | KPI | 4Q23 | 4Q22 | Variation | Results Analysis |
| Prosperity | Investment in Technology and Innovation | R$534.2 MN |
R$512.3 MN |
4,3% | Target of investing 1.4% of Net Operating Revenue in Technology and Innovation for 2022 achieved. |
| Planet | GHG Emissions (Scopes 1, 2 and 3) (tCO2e) | R$5.6 MN |
R$5.6 MN |
0,5% | Increased emissions by TPPs and IEPs (Independent Energy Producers), due to the drought in the North of the country throughout 2023 and, consequently, a greater use of thermal power plants. |
| People | Accident Frequency Rate - own employees (with time off) | 2.10 | 2.65 | -20.8% | 4Q23: 38 accidents |
| 4Q22: 58 accidents | |||||
| The reduction in the "Accident Frequency Rate with lost time - own employees" is due to actions arising from the Occupational Health and Safety Culture Program started in 2020, with the support of an external consultancy, which focused on own employees. As a follow-up, the new OHS culture project was launched in 2023 through the "Tá Ligado" and "Manifesta pela Vida" campaigns, which are being rolled out in initiatives for the entire workforce. | |||||
| Women in the workforce (%) | 17.7% | 19.0% | -6.8% | Movements in the workforce are the result of Voluntary Dismissal Plans and organizational restructuring, with fewer managerial positions. | |
| Management positions held by women (%) | 23.0% | 24.0% | -4.1% | ||
| Governance | Risk Management Maturity Level | 3.8 | 3 | 26.7% | 95% of the target was achieved. Result determined by external assessment, based on the IBGC framework. Of the seven pillars assessed, the Company achieved/exceeded the target in two: Risk Management Governance and Risk Management Policy. |
|
Investigation of complaints dealt within the term (%) |
98% | 96% | 2.1% | The better-than-target result is due to the consolidation of the calculation process in a centralized manner, optimizing the activity. |
Note: The figures presented are partial, preliminary and not assured, and may be adjusted in line with the processes of calculating, verifying and updating the data.
Data for the whole of 2023 and 2022, comparatively.
Earnings Release | 4Q23 | 32 |
| |
| 7. | APPENDICES |
Results by Company in Excel will be available soon at Eletrobras IR website.
| 7.1. | Appendix 1 - Financial Statements |
| 7.1.1. | Balance Sheet (R$ thousand) |
| PARENT COMPANY | CONSOLIDATED | |||||||||
| ASSETS | 12/31/2023 | 12/31/2022 | 12/31/2023 | 12/31/2022 | ||||||
| CURRENT | ||||||||||
| Cash and cash equivalents | 5,698,457 | 4,927,871 | 13,046,371 | 10,739,126 | ||||||
| Restricted cash | 250,060 | 2,917,849 | 447,688 | 3,098,401 | ||||||
| Securities | 2,477,747 | 3,611,904 | 5,920,171 | 12,193,654 | ||||||
| Clients | - | 462,628 | 5,210,482 | 4,794,924 | ||||||
| Transmission contract assets | - | - | 11,159,426 | 9,349,126 | ||||||
| Financing, loans and debentures | 1,099,798 | 1,524,088 | 367,741 | 692,839 | ||||||
| Remuneration of equity interests | 2,358,819 | 3,028,085 | 871,558 | 707,875 | ||||||
| Taxes and Contributions | 893,865 | 857,466 | 1,274,969 | 1,135,913 | ||||||
| Income tax and social contribution | 554,421 | 261,321 | 2,932,258 | 1,749,225 | ||||||
| Right to compensation | 940,268 | 1,186,214 | 980,206 | 1,216,928 | ||||||
| Warehouse | 204 | 262 | 426,690 | 429,310 | ||||||
| Receivables - ENBPAR | - | 40,743 | - | 40,743 | ||||||
| Derivative financial instruments | - | - | 373,606 | 501,355 | ||||||
| Others | 414,679 | 926,061 | 1,698,824 | 2,285,349 | ||||||
| 14,688,318 | 19,744,492 | 44,709,990 | 48,934,768 | |||||||
| Assets held for sale | 221,972 | 320,691 | 3,187,141 | 688,359 | ||||||
| 14,910,290 | 20,065,183 | 47,897,131 | 49,623,127 | |||||||
| NON-CURRENT | ||||||||||
| LONG-TERM ASSETS | ||||||||||
| Restricted cash | - | - | 1,985,656 | 1,306,138 | ||||||
| Right to compensation | 1,332,167 | 2,048,517 | 1,385,479 | 2,124,907 | ||||||
| Financing, loans and debentures | 6,852,841 | 3,366,460 | 260,409 | 328,806 | ||||||
| Clients | - | - | 649,446 | 703,055 | ||||||
| Receivables - ENBPAR | - | 1,223,316 | - | 1,223,316 | ||||||
| Securities | 432,355 | 411,705 | 432,724 | 412,093 | ||||||
| Taxes and Contributions | 804,582 | 3,705 | 1,153,616 | 439,196 | ||||||
| Deferred income tax and social contribution | - | - | 6,725,087 | 3,541,162 | ||||||
| Bonds and linked deposits | 3,337,816 | 6,402,122 | 6,585,685 | 8,558,013 | ||||||
| Transmission contract assets | - | - | 50,052,912 | 51,703,084 | ||||||
| Derivative financial instruments | - | - | - | 485,507 | ||||||
| Advances for future capital increases | - | 20,596,029 | - | - | ||||||
| Others | 1,495,993 | 1,755,305 | 1,053,164 | 1,063,250 | ||||||
| 14,255,754 | 35,807,159 | 70,284,178 | 71,888,527 | |||||||
| INVESTMENTS | ||||||||||
| Equity accounted | 141,814,345 | 112,079,558 | 32,100,302 | 32,224,264 | ||||||
| Held at fair value | 1,046,762 | 1,657,261 | 1,104,381 | 1,761,258 | ||||||
| 142,861,107 | 113,736,819 | 33,204,683 | 33,985,522 | |||||||
| REAL ESTATE | 201,942 | 231,883 | 35,805,421 | 34,739,705 | ||||||
| INTANGIBLE | 129,890 | 67,857 | 79,866,241 | 79,980,581 | ||||||
| 157,448,693 | 149,843,718 | 219,160,523 | 220,594,335 | |||||||
| TOTAL ASSETS | 172,358,983 | 169,908,901 | 267,057,654 | 270,217,462 | ||||||
Earnings Release | 4Q23 | 33 |
| |
| PARENT COMPANY | CONSOLIDATED | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | 12/31/2023 | 12/31/2022 | 12/31/2023 | 12/31/2022 | |||
| CURRENT | |||||||
| Loans, financing and debentures | 7,782,422 | 3,682,702 | 11,330,847 | 7,524,770 | |||
| Compulsory loans - Agreements | 896,746 | - | 896,746 | - | |||
| Compulsory loan | 1,257,291 | 1,289,602 | 1,257,291 | 1,289,602 | |||
| Suppliers | 155,989 | 994,922 | 2,963,867 | 3,517,173 | |||
| Down payments | 3,513 | 1,486,222 | 138,690 | 1,653,122 | |||
| Taxes and Contributions | 241,541 | 370,739 | 992,887 | 1,271,700 | |||
| Income tax and social contribution | - | - | 29,675 | - | |||
| Onerous Contracts | - | - | 120,660 | - | |||
| Shareholder remuneration | 1,110,416 | 913,018 | 1,154,836 | 924,644 | |||
| Personnel obligations | 213,767 | 166,337 | 1,634,933 | 2,318,554 | |||
| Compensation obligations | 8,572 | 1,912,423 | 8,572 | 1,912,423 | |||
| Post-employment benefits | - | - | 292,990 | 246,437 | |||
| Provisions for disputes | 1,993,061 | 2,646,711 | 2,290,873 | 2,709,161 | |||
| Sector charges | - | - | 765,619 | 996,610 | |||
| Obligations under Law 14.182/2021 | - | - | 2,161,176 | 1,472,662 | |||
| Rentals | 10,959 | 8,710 | 44,020 | 224,319 | |||
| Others | 77,227 | 74,919 | 801,645 | 209,251 | |||
| 13,751,504 | 13,546,305 | 26,885,327 | 26,270,428 | ||||
| Liabilities associated with assets held for sale | - | - | 274,464 | 170,448 | |||
| 13,751,504 | 13,546,305 | 27,159,791 | 26,440,876 | ||||
| NON-CURRENT | |||||||
| Loans, financing and debentures | 28,354,875 | 22,269,941 | 49,449,443 | 51,581,752 | |||
| Down payments | - | - | 86,612 | 213,921 | |||
| Provisions for disputes | 15,598,552 | 22,084,048 | 24,250,819 | 30,623,558 | |||
| Post-employment benefits | 859,753 | 680,399 | 5,293,808 | 4,947,234 | |||
| Obligations under Law 14.182/2021 | - | - | 37,358,230 | 35,186,792 | |||
| Onerous contracts | - | - | 950,468 | 209,099 | |||
| Rentals | 24,972 | 32,571 | 172,727 | 528,849 | |||
| Concessions payable - Use of public assets | - | - | 566,172 | 372,420 | |||
| Advances for future capital increases | 98,252 | 86,919 | 98,252 | 86,919 | |||
| Derivative financial instruments | 645,302 | - | 657,514 | - | |||
| Sector charges | - | - | 432,341 | 464,358 | |||
| Taxes and Contributions | - | - | 574,781 | 723,716 | |||
| Deferred income tax and social contribution | 440,834 | 427,390 | 5,721,830 | 6,294,347 | |||
| Others | 251,567 | 276,532 | 1,820,222 | 1,514,985 | |||
| 46,274,107 | 45,857,800 | 127,433,219 | 132,747,950 | ||||
| SHAREHOLDERS’ EQUITY | |||||||
| Share capital | 70,099,826 | 69,813,740 | 70,099,826 | 69,813,740 | |||
| Share issue costs | (108,186) | (108,186) | (108,186) | (108,186) | |||
| Capital reserves and Equity Instruments Granted | 13,889,339 | 13,867,170 | 13,889,339 | 13,867,170 | |||
| Treasury shares | (2,114,256) | - | (2,114,256) | - | |||
| Profit reserves | 37,536,595 | 33,910,233 | 37,536,595 | 33,910,233 | |||
| Additional dividend proposed | 216,114 | - | 216,114 | - | |||
| Accumulated other comprehensive income | (7,186,060) | (6,978,161) | (7,186,060) | (6,978,161) | |||
| Participation of controlling shareholders | 112,333,372 | 110,504,796 | 112,333,372 | 110,504,796 | |||
| Participation of non-controlling shareholders | - | - | 131,272 | 523,840 | |||
| TOTAL SHAREHOLDERS' EQUITY | 112,333,372 | 110,504,796 | 112,464,644 | 111,028,636 | |||
| TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY |
172,358,983 | 169,908,901 | 267,057,654 | 270,217,462 | |||
Earnings Release | 4Q23 | 34 |
| |
| 7.1.2. | Income Statement (R$ thousand) |
| PARENT COMPANY | CONSOLIDATED | ||||||
| 12/31/2023 | 12/31/2022 | 12/31/2023 | 12/31/2022 | ||||
| CONTINUING OPERATIONS | |||||||
| Net operating revenue | 109,424 | 377,721 | 37,158,908 | 34,074,233 | |||
| Operating costs | (99) | (16,685) | (18,673,49) | (15,857,60) | |||
| GROSS PROFIT | 109,325 | 361,036 | 18,485,409 | 18,216,623 | |||
| Operating expenses | (912,679) | (4,638,745) | (7,947,919) | (13,417,697) | |||
| Regulatory remeasurements - Transmission contracts | - | - | (12,144) | 365,178 | |||
| OPERATING RESULT BEFORE FINANCIAL RESULT | (803,354) | (4,277,709) | 10,525,346 | 5,164,104 | |||
| FINANCIAL RESULT | (3,507,163) | (272,650) | (12,002,121) | (4,373,595) | |||
| PROFIT BEFORE EQUITY INVESTMENTS | (4,310,517) | (4,550,359) | (1,476,775) | 790,509 | |||
| Income from shareholdings | 9,172,949 | 7,566,709 | 2,062,090 | 2,369,777 | |||
| Other income and expenses | 18,748 | 195,661 | 1,143,062 | 186,924 | |||
| OPERATING PROFIT BEFORE TAX | 4,881,180 | 3,212,011 | 1,728,377 | 3,347,210 | |||
| Current income tax and social contribution | 608 | (563,419) | (512,503) | (1,630,034) | |||
| Deferred income tax and social contribution | - | - | 3,511,001 | 934,421 | |||
| NET INCOME FROM CONTINUING OPERATIONS | 4,881,788 | 2,648,592 | 4,726,875 | 2,651,597 | |||
| Share attributable to controlling shareholders | 4,881,788 | 2,648,592 | 4,881,788 | 2,648,592 | |||
| Share attributable to non-controlling interests | - | - | (154,913) | 3,005 | |||
| DISCONTINUED OPERATIONS | |||||||
| NET INCOME FROM DISCONTINUED OPERATIONS | (332,014) | 986,785 | (332,014) | 986,785 | |||
| Portion Attributed to Controlling Shareholders | (332,014) | 986,785 | (332,014) | 986,785 | |||
| NET INCOME FOR THE FISCAL YEAR | 4,549,774 | 3,635,377 | 4,394,861 | 3,638,382 | |||
| Portion Attributed to Controlling Shareholders | 4,549,774 | 3,635,377 | 4,549,774 | 3,635,377 | |||
| Portion attributed to non-controlling shareholders | - | - | (154,913) | 3,005 | |||
Earnings Release | 4Q23 | 35 |
| |
| EARNINGS PER SHARE | |||||||
| Earnings per share - basic (ON) | R$1.98 | R$1.83 | R$1.98 | R$1.83 | |||
| Earnings per share - basic (PN) | R$2.18 | R$2.00 | R$2.18 | R$2.00 | |||
| Earnings per share - diluted (ON) | R$1.96 | R$1.80 | R$1.96 | R$1.80 | |||
| Earnings per share - diluted (PN) | R$2.15 | R$1.98 | R$2.15 | R$1.98 | |||
| Continuing Operations | |||||||
| Earnings per share - basic (ON) | R$2.12 | R$1.33 | R$2.12 | R$1.33 | |||
| Earnings per share - basic (PN) | R$2.34 | R$1.46 | R$2.34 | R$1.46 | |||
| Earnings per share - diluted (ON) | R$2.10 | R$1.31 | R$2.10 | R$1.31 | |||
| Earnings per share - diluted (PN) | R$2.31 | R$1.44 | R$2.31 | R$1.44 |
Earnings Release | 4Q23 | 36 |
| |
| 7.1.3. | Cash Flow Statement (R$ thousand) |
| PARENT COMPANY | CONSOLIDATED | ||||||
| 12/31/2023 | 12/31/2022 | 12/31/2023 | 12/31/2022 | ||||
| OPERATIONAL ACTIVITIES | |||||||
| Profit for the fiscal year before income tax and social contribution | 4,549,166 | 4,198,796 | 1,396,363 | 4,333,995 | |||
| Adjustments to reconcile profit with cash generated by operations: | |||||||
| Depreciation and amortization | 37,213 | 11,196 | 3,621,342 | 2,690,269 | |||
| Net exchange and monetary variations | 1,535,795 | 669,681 | 3,342,161 | 650,770 | |||
| Financial charges | 578,885 | (812,905) | 6,095,390 | 2,768,853 | |||
| Equity income | (9,172,949) | (7,566,709) | (2,062,090) | (2,369,777) | |||
| Other income and expenses | (18,748) | (195,661) | (1,143,062) | (186,924) | |||
| Transmission revenues | - | - | (17,432,037) | (15,774,884) | |||
| Construction cost - transmission | - | - | 3,291,132 | 1,671,307 | |||
| Regulatory remeasurements - Transmission contracts | - | - | 12,144 | (365,178) | |||
| Operating provisions (reversals) | (1,148,011) | 3,501,113 | 2,195,790 | 6,928,425 | |||
| Write-offs of fixed and intangible assets | - | - | 632,441 | 440,775 | |||
| Result of hedged debt and derivatives | 868,206 | - | 1,521,637 | 356,494 | |||
| Other | 559,889 | 145,382 | 911,053 | 1,310,565 | |||
| (6,759,720) | (4,247,904) | 985,901 | (1,879,305) | ||||
| (Additions)/decreases in operating assets | |||||||
| Clients | 1,340 | 194,947 | (927,096) | (408,364) | |||
| Receivables - ENBPAR | - | - | - | - | |||
| Right to compensation | 518,779 | 537,338 | |||||
| Financial assets - Itaipu | 459,642 | 1,017,850 | 473,496 | 1,036,409 | |||
| Others | (53,392) | (227,870) | 109,683 | (436,278) | |||
| 407,590 | 984,927 | (343,917) | 191,767 | ||||
| Increases/(decreases) in operating liabilities | |||||||
| Suppliers | (821,070) | (61,608) | (526,425) | 233,911 | |||
| Down payments | (3,243) | - | (162,275) | 104,964 | |||
| Personnel obligations | 47,430 | 12,769 | (813,498) | 222,345 | |||
| Sector charges | - | - | (280,680) | 159,695 | |||
| Others | (151,855) | (69,227) | 217,985 | (382,451) | |||
| (928,738) | (118,066) | (1,564,893) | 338,464 | ||||
| Payment of financial charges | (2,430,785) | (1,515,464) | (5,173,424) | (3,211,343) | |||
| Receipt of annual permitted revenue - RAP | - | - | 18,287,910 | 14,623,582 | |||
| Receipt of financial charges | 1,042,169 | 677,776 | 172,457 | 316,278 | |||
| Receipt of remuneration from equity investments | 6,792,347 | 4,617,624 | 1,329,703 | 1,494,560 | |||
| Payment of disputes | (1,351,125) | (3,074,367) | (2,672,962) | (4,222,504) | |||
| Bonds and linked deposits | (231,059) | (441,255) | (733,354) | (1,199,426) | |||
| Payment of income tax and social contribution | (164,735) | (236,134) | (2,930,778) | (2,607,461) | |||
| Supplementary pension payments | (14,908) | (33,894) | (510,048) | (469,943) | |||
| Net cash provided by (used in) operating activities of continuing operations | 910,200 | 812,041 | 8,242,958 | 7,708,664 | |||
| Net cash provided by operating activities of discontinued operations | - | - | - | (2,908,844) | |||
| Net cash provided by (used in) operating activities | 910,200 | 812,041 | 8,242,958 | 4,799,820 | |||
Earnings Release | 4Q23 | 37 |
| |
| FINANCING ACTIVITIES | |||||||
| Proceeds from the issuance of shares | - | 30,648,282 | - | 30,648,282 | |||
| Loans and financing obtained and debentures obtained | 7,000,000 | 6,000,000 | 11,821,045 | 8,500,000 | |||
| Payment of loans and financing and debentures - principal | (8,235,969) | (4,048,309) | (13,269,436) | (6,734,696) | |||
| Payment of remuneration to shareholders | (864,192) | (1,433,059) | (864,192) | (1,490,058) | |||
| Payment to dissenting shareholders - incorporation of shares | (212) | - | (226,057) | - | |||
| Share buybacks | (1,967,218) | - | (1,967,218) | - | |||
| Payment of CDE obligations and revitalization of basins - main | - | - | (1,455,824) | - | |||
| Lease payments - principal | (7,916) | - | (765,525) | (721,074) | |||
| Others | - | 44,746 | (27,924) | 44,746 | |||
| Net cash (used in) financing activities of continuing operations | (4,075,507) | 31,211,660 | (6,755,131) | 30,247,200 | |||
| Net cash (used in) financing activities of discontinued operations | - | - | - | (174,814) | |||
| Net cash (used in) financing activities | 4,075,507) | 31,211,660 | (6,755,131) | 30,072,386 | |||
| INVESTMENT ACTIVITIES | |||||||
| Acquisition of debentures | (450,000) | - | (450,000) | - | |||
| Grant of advance for future capital increase | - | (34,926,186) | - | - | |||
| Receipt of loans and financings |
2,014,687 | 3,397,329 | 1,060,818 | 2,358,352 | |||
| Acquisition of fixed assets | (6,776) | (7,697) | (3,862,770) | (1,585,639) | |||
| Acquisition of intangible assets | (62,044) | (6,480) | (258,371) | (32,038,772) | |||
| Net financial investments (TVM) | 1,134,157 | 3,480,282 | 7,209,710 | 4,475,913 | |||
| Transmission infrastructure - contractual asset | - | - | (3,269,358) | (1,652,992) | |||
| Acquisition/capital contribution of equity investments | (2,108) | (188,367) | (1,499,973) | (254,498) | |||
| Disposal of equity investments | 355,941 | 1,147,905 | 907,004 | 1,169,784 | |||
| Net cash in the business combination | - | - | 245,244 | 180,191 | |||
| Others | - | - | (214,922) | (57,832) | |||
| Net cash provided by investing activities of continuing operations |
2,983,857 | (27,103,215) | (132,618) | (27,405,493) | |||
| Net cash (used in) investing activities of discontinued operations |
952,036 | - | 952,036 | 3,079,754 | |||
| Net cash provided by (used in) investing activities | 3,935,893 | (27,103,215) | 819,418 | (24,325,739) | |||
| Increase (decrease) in cash and cash equivalents | 770,586 | 4,920,487 | 2,307,245 | 10,546,467 | |||
| Cash and cash equivalents at the beginning of the fiscal year | 4,927,871 | 7,384 | 10,739,126 | 192,659 | |||
| Cash and cash equivalents at the end of the fiscal year | 5,698,457 | 4,927,871 | 13,046,371 | 10,739,126 | |||
| Increase (Decrease) in cash and cash equivalents from discontinued operations | - | - | - | (3,904) | |||
| 770,586 | 4,920,487 | 2,307,245 | 10,546,467 |
Earnings Release | 4Q23 | 38 |
| |
| 7.2. | Appendix 2 - Results by Segment |
| 7.2.1. | Management |
| R$ million | 4Q23 | 4Q22 | % | 2023 | 2022 | % |
| Net Operating Revenue | 15 | 240 | -94% | 110 | 380 | -71% |
| Operating costs | (0,0) | (0) | -67% | (0) | (17) | -99% |
| Operating expenses | (483) | (2,284) | -79% | (920) | (4,644) | -80% |
| Operating result before financial result | (467) | (2,044) | -77% | (810) | (4,281) | -81% |
| 7.2.2. | Generation |
| R$ million | 4Q23 | 4Q22 | % | 2023 | 2022 | % |
| Net Operating Revenue | 5,938 | 5,009 | 19% | 22,398 | 20,252 | 11% |
| Operating costs | (3,757) | (2,340) | 61% | (13,941) | (11,157) | 25% |
| Operating expenses | (3,402) | 241 | -1512% | (4,360) | (3,574) | 22% |
| Operating result before financial result | (1,222) | 2,910 | -142% | 4,096 | 5,521 | -26% |
| 7.2.3. | Transmission |
| R$ million | 4Q23 | 4Q22 | % | 2023 | 2022 | % |
| Net Operating Revenue | 4,096 | 3,911 | 5% | 15,227 | 14,001 | 9% |
| Operating costs | (1,911) | (2,755) | -31% | (5,311) | (5,209) | 2% |
| Operating expenses | (887) | (2,099) | -58% | (2,664) | (5,234) | -49% |
| Regulatory remeasurements - Transmission contracts | - | 3 | -100% | (12) | 365 | -103% |
| Operating result before financial result | 1,298 | (940) | -238% | 7,239 | 3,923 | 85% |
Earnings Release | 4Q23 | 39 |
| |
| 7.3. | Appendix 3 - Compulsory Loan |
In the context of the compulsory loan on electricity (ECE) lawsuits, which discuss the monetary update of book credits, the Company has been taking steps to mitigate the risks involved and has created the Compulsory Loan Department, with the aim of strengthening strategic action in legal defenses and seeking court settlements with discounts and full settlement of the respective lawsuits.
As a result of these negotiations, Eletrobras reduced its inventory of such loans by R$1.890 billion to R$17.263 billion in 4Q23, mainly as a result of the agreements reached, which resulted in a R$497 million reduction in the provision, with a direct positive effect on the bottom line, offset by the net constitution of provision in the amount of R$485 million as a result of unfavorable decisions in specific lawsuits. Eletrobras is taking legal action to reverse these unfavorable decisions.
In the financial results, monetary update declined to R$236 million in 4Q23 from R$284 million in 4Q22 due to the reduction in the provision inventory, as mentioned above.
Since 3Q22, when negotiations on the compulsory loan began, and the inventory of provisions for lawsuits involving book-credits for the compulsory loans was R$25.8 billion, there has been a reduction of R$8.6 billion in this inventory, despite the accumulated monetary update of R$1.6 billion between the periods, which is in line with the Company's strategy of reducing legal liabilities. The legal agreements reached led to the elimination of off-balance sheet risk of R$4.4 billion, of which R$578 million in possible and R$3.8 billion in remote. When compared to 4Q22, provisioned inventory decreased by R$7.1 billion, despite the R$1.3 billion monetary update. The legal agreements reached led to the elimination of off-balance sheet risk of R$3.7 billion, of which R$505 million in possible and R$3.2 billion in remote.
* Considering that Eletrobras has already signed legal agreements with Creditors, which are only awaiting ratification for due payment, the amounts have been reclassified to liabilities.
Earnings Release | 4Q23 | 40 |
| |
| 7.4. | Appendix 4 - IFRS x Regulatory reconciliation |
| CVM Result - Corporate | Regulatory result | Differences | CVM Result - Corporate | Regulatory result | Differences | ||||||
| 10/1/2023 to 12/31/2023 | 10/1/2023 to 12/31/2023 | 10/1/2022 to 12/31/2022 | 10/1/2022 to 12/31/2022 | ||||||||
| OPERATING REVENUES | |||||||||||
| Generation | |||||||||||
| Supply | 4,859,793 | 4,859,793 | - | 4,170,221 | 4,170,221 | - | |||||
| Procurement | 934,359 | 934,359 | - | 977,199 | 977,199 | - | |||||
| CCEE | 387,119 | 387,119 | - | 141,121 | 141,121 | - | |||||
| Operation and maintenance revenue | 1,040,193 | 1,040,193 | - | 1,242,622 | 1,242,622 | - | |||||
| Revenue from construction of Power Plants | - | - | - | - | - | - | |||||
| Rate of return updates - Generation | - | - | - | - | - | - | |||||
| Itaipu transfer | - | - | - | 274,291 | 274,291 | - | |||||
| Transmission | |||||||||||
| Operation and maintenance revenue - Renewed Lines | - | - | - | - | - | - | |||||
| Operation and maintenance revenue | 1,723,349 | 1,723,349 | - | 1,613,885 | (3,876,467) | 5,490,352 | |||||
| Financial - Return on Investment - RBSE | - | - | - | - | - | - | |||||
| Construction revenue | 1,272,332 | - | 1,272,332 | 459,387 | - | 459,387 | |||||
| Contract revenue - Transmission | 1,562,462 | - | 1,562,462 | 1,558,682 | - | 1,558,682 | |||||
| Transmission System Availability (Rap) | - | 3,187,776 | (3,187,776) | - | (8,177,550) | (8,177,550) | |||||
| Other income | 78,605 | 78,605 | - | 365,820 | (66,271) | 432,091 | |||||
| Deductions | |||||||||||
| (-) Sector charges | (600,834) | (600,834) | - | (489,533) | (489,533) | - | |||||
| (-) ICMS | (270,772) | (270,772) | - | (246,464) | (246,464) | - | |||||
| (-) PASEP and COFINS | (1,063,557) | (1,063,557) | - | (1,055,095) | (1,055,114) | 19 | |||||
| (-) Other Deductions | (934) | (934) | - | (2,858) | (2,858) | - | |||||
| Net operating revenue | 9,922,115 | 10,275,097 | (352,982) | 9,009,278 | 9,246,297 | (237,019) | |||||
| OPERATING COSTS | |||||||||||
| Personnel, Material and Services | (808,155) | (808,155) | - | (1,063,211) | (1,103,697) | 40,486 | |||||
| Energy purchased for resale | (941,663) | (1,120,971) | 179,308 | (975,517) | (1,144,407) | 168,890 | |||||
| Charges for use of the electricity grid | (984,051) | (990,906) | 6,855 | (764,180) | (748,163) | (16,017) | |||||
| Fuel for electricity production | (602,306) | (602,306) | - | (544,170) | (503,684) | (40,486) | |||||
| Construction | (1,371,373) | - | (1,371,373) | (743,859) | - | (743,859) | |||||
| Depreciation | (438,399) | (1,118,564) | 680,165 | (501,067) | (1,204,185) | 703,118 | |||||
| Amortization | (405,771) | (409,044) | 3,273 | (325,312) | (325,368) | 56 | |||||
| Operating provisions/reversals | - | - | - | - | - | - | |||||
| Other costs | 20,672 | 20,858 | (186) | (39,527) | (42,179) | 2,652 | |||||
| Operating costs | (5,531,046) | (5,029,088) | (501,958) | (4,956,843) | (5,071,683) | 114,840 |
Earnings Release | 4Q23 | 41 |
| |
| GROSS PROFIT | 4,391,069 | 5,246,009 | (854,940) | 4,052,435 | 4,174,614 | (122,179) | |||||
| OPERATING EXPENSES | |||||||||||
| Personnel, Material and Services | (1,139,174) | (1,139,175) | 1 | (1,158,318) | (1,158,318) | - | |||||
| Voluntary Dismissal Program | (25,241) | (25,241) | - | (1,260,370) | (1,260,371) | 1 | |||||
| Remuneration and compensation | - | - | - | - | - | - | |||||
| Depreciation | (48,498) | (46,852) | (1,646) | (44,704) | (43,342) | (1,362) | |||||
| Amortization | (6,421) | (6,421) | - | (8,563) | (8,563) | - | |||||
| Donations and contributions | (32,808) | (32,808) | - | (64,767) | (64,767) | - | |||||
| Operating provisions/reversals | (3,358,785) | (3,250,845) | (107,940) | (1,134,741) | (1,082,005) | (52,736) | |||||
| Other expenses | (171,377) | (174,032) | 2,655 | (458,037) | (460,190) | 2,153 | |||||
| Operating expenses | (4,782,304) | (4,675,374) | (106,930) | (4,129,500) | (4,077,556) | (51,944) | |||||
| Regulatory remeasurements - Transmission contracts | - | - | - | 2,786 | - | 2,786 | |||||
| OPERATING RESULT BEFORE FINANCIAL RESULT | (391,235) | 570,635 | (961,870) | (74,279) | 97,058 | (171,338) | |||||
| FINANCIAL RESULT | (2,526,929) | (2,526,698) | (231) | (1,678,079) | (1,544,585) | (133,494) | |||||
| INCOME BEFORE EQUITY INVESTMENTS | (2,918,164) | (1,956,063) | (962,101) | (1,752,358) | (1,447,527) | (304,832) | |||||
| Equity Income | 263,699 | 249,091 | 14,608 | 701,907 | 655,243 | 46,664 | |||||
| Other income and expenses | 283,131 | 455,715 | (172,584) | (87,442) | (87,442) | - | |||||
| OPERATING INCOME BEFORE TAX | (2,371,334) | (1,251,257) | (1,120,077) | (1,137,893) | (879,726) | (258,168) | |||||
| Current income tax and social contribution | (44,780) | (44,781) | 1 | 99,364 | 99,364 | - | |||||
| Deferred income tax and social contribution | 3,309,521 | 3,156,915 | 152,606 | 559,906 | (13,720) | 573,626 | |||||
| NET INCOME FOR THE PERIOD | 893,407 | 1,860,877 | (967,470) | (478,623) | (794,081) | 315,458 |
Earnings Release | 4Q23 | 42 |
| |
Earnings Release | 4Q23 | 43 |
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: March 14, 2024
| CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS | ||
| By: |
/S/ Eduardo Haiama |
|
|
Eduardo Haiama Vice-President of Finance and Investor Relations |
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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.