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Eneva shareholders to vote on R$3.6 billion capital increase Aug. 26
By Caroline Salls
Pittsburgh, Aug. 14 – Eneva SA said shareholders will decide on the launch of an R$3.6 billion capital increase at an extraordinary general meeting scheduled for Aug. 26.
According to a Friday news release, the proposed increase includes the capitalization of 40% of the company’s debt, the contribution of key assets from stakeholders and the participation of minority shareholders.
The meeting is part of Eneva’s efforts to continue implementation of its judicial recovery plan.
In addition, the company reported adjusted EBITDA of R$128 million for the first half of 2015, compared with R$116 million of EBITDA for the same period of 2014.
Eneva said a 20% reduction in the net debt of the holding company, as provided for in its judicial recovery plan, and the proceeds from the R$300 million sale of the company’s stake in Pecem I contributed to an R$537.5 million reduction in its net debt in the first half of this year.
As part of the recovery plan, the net debt of the holding company was reprofiled up to R$985 million, which the company said strengthens cash flow.
The holding company’s continuing cost-cutting policy also provided a 20% reduction in Eneva’s costs for the period in question, the release said.
Eneva said the first-half results reinforce its commitment to promote the necessary adjustments that will allow it to further advance in its recovery process.
“The completion of the first stage of the judicial recovery plan reflects the management commitment to implement the goals set out in the company’s stabilization plan, started in 2014, allowing Eneva to resume its growth in a sustainable way,” chief executive officer Alexandre Americano said in the release.
Eneva is a Rio de Janeiro-based power generation company.
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