Eneva completes stabilization plan, registers R$86.9 million of EBITDA

By Caroline Salls

Pittsburgh, Nov. 13 – Brazil’s Eneva SA concluded its stabilization plan and registered R$86.9 million of adjusted EBITDA for the third quarter, according to a news release.

The company said the third-quarter adjusted EBITDA was four times higher than that recorded in the same period in 2014 and consolidated the improvement in the operational management of Eneva’s assets.

In line with the targets set out in the stabilization plan to promote the reduction of operating expenses, Eneva said it registered a cut of 41.9% in this item, which resulted in a decrease of R$10.4 million, mainly driven by personnel and outsourcing costs.

“The results confirm the company’s commitment to reduce costs and improve operational management,” chief executive officer Alexandre Americano said in the release.

“The measures adopted since 2014, added to the finalization of the capital increase were fundamental to the conclusion of Eneva’s stabilization plan.”

The company said it approved an R$2.3 billion private capital increase on Nov. 5, allowing the contribution of assets in the amount of R$1.3 billion and converting 40% of the debt of creditors to Eneva shares. These measures resulted in a reduction of R$2.4 billion in holding debt for a long-term debt of roughly R$983 million.

In addition, Eneva said minority shareholders contributed R$9.1 million in cash.

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

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