Eneva reports R$59.4 million of EBITDA for three months ended March 31

By Caroline Salls

Pittsburgh, May 15 – Eneva SA reported EBITDA of R$59.4 million for the quarter ended March 31, down from R$103.9 million for the same period of 2014, according to a Friday news release.

The company said the reduction stemmed from the deconsolidation of Pecem II. Eneva said it recorded growth of 3.1% when disregarding the positive influence of Pecem II results in 2014.

Continuing its stabilization plan, the company said it recorded lower expenses and improved operating performance of the plants, which resulted in a 33% increase of company profitability.

According to the release, personnel expenses and outsourced services declined R$10.1 million in the first quarter of compared to the same period in 2014. Specifically, personnel expenses decreased R$2.7 million, while services outsourced declined by R$7.4 million.

“The savings achieved during the period reinforce the decision of the management to reduce expenses in order to give economic and financial stability to Eneva,” chief executive officer Alexandre Americano said in the release.

“Another important event to be highlighted is the approval of the judicial recovery plan in a record time, which demonstrates a high level of trust placed in the company’s stabilization plan.”

As previously reported, the plan was confirmed by the Commercial Court of the State of Rio de Janeiro on May 12.

Eneva said its first-quarter results were pressured by accounting adjustment of exchange variation and overstatement unavailability charges.

In addition, the company said it reached an agreement on April 30 with Parnaiba Natural Gas (PGN) and BPMB that will grant discounts on the natural gas supply to Parnaiba Complex plants, resulting in the deduction of R$141.8 million in the amount to be paid for the gas as a result of the postponement of the start of commercial operation of Parnaíba II.

In addition, Eneva said PGN and BPMB still need to discount R$167 million, equivalent to 50% of the fixed revenue reduction of Parnaiba II, as provided for in an agreement signed with Aneel on Nov. 20.

Eneva is a Rio de Janeiro-based power generation company.

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