ENGIE Brasil Energia reported an Ebitda of R$ 1.4 billion in the second quarter 2020, corresponding to growth of 36.1%, largely a reflection of the increase in sales volume due to energy generated from the Pampa Sul plant, which began commercial operations last year,\u00a0 and an increase in net average selling prices. Results were also boosted by equity income from the Transportadora Associada de G\u00e1s S.A. (TAG) business, owner of the largest natural gas pipeline in Brazil as well as non-recurring\u00a0 income from the successful outcome to a lawsuit with respect to the reimbursement\/compensation of federal taxes.<\/p>\n

Net income for the quarter was R$ 765.8 million, 98.7% more than the amount recorded for the same period\u00a0 in 2019. \u201cAbove all, this result reflects the impact of Ebitda as well as the increase in financial revenue due to the restatement of the gain from the successful legal action, reduction of financial expenses from monetary restatement in the light of lower inflation in the quarter, partially compensated by an increase in interest on Company loans and financing\u201d, observes ENGIE Brasil Energia\u2019s chief financial officer, Marcelo Malta.<\/p>\n

Another significant increase was from net operating revenue of the energy generation and sales segment of the portfolio, which reached R$ 2 billion between the months of April and June of this year, an increase of 6.9% in relation to the same period in 2019. \u201cWe remain committed to, and focused on our long term strategy conducted in parallel with remote working during the second quarter. We have remained both diligent and proactive. Work on the new assets advanced while at the same time launching products as well as continuing the process of acquiring an additional stake in TAG. All this while preserving the wellbeing of our employees, our operations and the communities in which we work\u201d, comments the chief executive officer of ENGIE Brasil Energia, Eduardo Sattamini.<\/p>\n

In the commercial sphere, the Company recorded consistent energy sales for delivery in the period from 2021 to 2025, maintaining a net average selling price of R$ 190\/MWh. Energy volumes sold in the second quarter of 2020 reached 8,895 GWh (4,073 average MW), an increase of 105 GWh (48 average MW) between comparative periods (1.2%). Increased sales volume is mainly the result of growth in energy generation following the entry into commercial operations of Pampa Sul, which sold 293 average MW in the quarter, in addition to the closing of new purchase agreements, these factors partially offset by the reduction in consumption on the part of free market consumers following the economic downturn with the onset of the Covid-19 pandemic.<\/p>\n

Finally, the Board of Directors approved the distribution of R$ 677.7 million as interim dividends (R$ 0.8305737385\/share), equivalent to 55% of the net distributable profit registered for the first half of 2020. Shares will become ex-dividend from August 10, 2020 and dividend payout will be made on a date to be decided by the Management Board in due course.<\/p>\n

Highlights of the 2^{nd<\/sup> quarter <\/strong><\/p>\n}

\u00a0<\/strong>The United Nations (UNFCCC) confirmed that ENGIE\u2019s Campo Largo Wind Complex \u2013 Phase II (361.2 MW) Carbon Credits Project had been registered in the Clean Development Mechanism (CDM). This project \u2013 still at the construction stage \u2013 will contribute with an annual average reduction in Greenhouse Gases (GHG) of approximately 790,000 tons of CO_{2<\/sub>e annually. This is ENGIE\u2019s 23^{rd<\/sup> CDM project worldwide and the Company\u2019s 10th<\/sup> in Brazil.<\/p>\n}}

In an effort to explore new avenues as a retailer in the Free Energy Market, the Compoany launched E-conomiza, a solution for those companies seeking to reduce their energy bills through a simplified form of migration to the Free Market.<\/p>\n

ENGIE enhanced its level of governance with the installation the Audit Committee, a body reporting to the Board of Directors. Comprising three independent members, the new organ has the mission of advising the Board on risk management, ethical themes, internal controls, compliance and the internal and external audit, in alignment to the best practices of Novo Mercado governance.<\/p>\n

In the socio-economic field, two of ENGIE\u2019s sustainable development projects were selected by the Economic Commission for Latin America and the Caribbean (CEPAL) as cases of transformational investments towards a sustainable economy. Both projects are located in southern Brazil: Sistema Agroflorestal Cambona 4, developed in partnership with the Machadinho Consortium, responsible for improving the productivity of yerba mate cultivation for the local communities, generating income and employment; and the Lages Co-Generation Unit, exemplifying the transformational potential of the circular economy, using waste from the local timber industry for generating electricity and steam.<\/p>\n

Investments <\/strong><\/p>\n

\u00a0<\/strong>ENGIE Brasil Energia\u2019s investments in 2Q20 totaled R$ 588.0 million, of which R$ 539.9 million were invested in the construction of new projects: Campo Largo Wind Complex \u2013 Phase II, the Gralha Azul Transmission Line, Pampa Sul Thermoelectric Power Plant and the Novo Estado Energia, to the latter of which a further R$ 12.1 million were allocated to acquire a 100% corporate stake.<\/p>\n

On July 20, \u00a0an announcement was made as to the acquisition of a further stake of 3.25% worth R$ 327.2 million in Transportadora Associada de G\u00e1s (TAG), out of a 10% minority participation still\u00a0 held by Petrobras in the company.<\/p>\n","protected":false},"excerpt":{"rendered":"

In addition to bolstering protective measures on the health and safety front for employees and society, a good performance in the commercial area with consistent sales in the midst of the Covid-19 pandemic should be highlighted<\/p>\n","protected":false},"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-26708","imprensa","type-imprensa","status-publish","format-standard","hentry","tipo-release-renewables"],"acf":[],"yoast_head":"\n