ENGIE Brasil Energia reported\u00a0 net operating revenue of R$ 12.259 billion in 2020, 25% (R$ 2.454 billion) greater than recorded in 2019. Ebitda \u00a0reached R$ 6.484 billion, an increase of 25.7% (R$ 1.326 billion) compared with the preceding year. Net income amounted to R$ 2.797 billion in 2020, a year-on-year increase of 21% (R$ 486.2 million).<\/p>\n

Among the elements contributing\u00a0 to the Company\u2019s results in 2020, of particular note was the commercial and portfolio management strategy, organic growth at the Pampa Sul Thermoelectric Power Plant and the Umburanas Wind Complex, the effects of the renegotiation of hydrological risk, \u00a0accounting for R$ 967.7 million in the fourth quarter 2020, as well as the contribution from Transportadora Associada de G\u00e1s (TAG) and the transmission segment. \u201cDespite the effects of the Covid-19 pandemic, this performance confirms the Company\u2019s financial soundness\u201d, comments Marcelo Malta, Chief Financial Officer at ENGIE Brasil Energia.<\/p>\n

Another key factor in the result was the operational costs, which remained stable in spite of the entry into operation of new assets. In addition, financial expenses registered an increase of R$ 783,1 million (57.8%), mainly the result of the higher IGPM on the restated concessions payable account and the increase in interest and monetary restatement. In this context, it is important to remember that this expense is economic, not generating any impact on the Company\u2019s cash position in\u00a0 2020 with the effects of increases in IGPM being clawed back in the coming years via readjustments in the energy sales and gas transportation agreements which are linked to the same index.<\/p>\n

Excluding programmed stoppages, in 2020, the plants operated by ENGIE Brasil Energia reported uptime levels of 96.4%: 99.7% in the case of the hydroelectric plants, 76.9% for the thermal operations and 93.5% for the plants driven from complementary energy sources \u2014 SHP\u2019s, biomass, wind and photovoltaic. \u201cIn the midst of a pandemic, our efforts were focused around ensuring the supply of energy \u2013 an essential resource for society \u2013 and at the same time, protecting people, fully guaranteeing the health of our teams and supporting the communities in which the Company operates\u201d, explains the Company\u2019s Chief Executive and Investor Relations Officer, Eduardo Sattamini.<\/p>\n

It was thanks to this consistency of results, despite the challenges of the year, that the Board of Directors was able to approve the proposal for distributing interim dividends of R$ 609.6 million (R$ 0.7471\/share), to be ratified by the Annual General Meeting. Total distribution of earnings for fiscal year 2020 reached R$ 2.016,8 million (R$ 2.4717\/share), equivalent to 100% of the adjusted net income (excluding the renegotiation of the hydrological risk).<\/p>\n

Investments with a focus on renewable power and transmission lines\u00a0\u00a0\u00a0 <\/strong><\/p>\n

The challenges of Covid-19 have in no way prevented the Company from continuing to pursue its projects, already at the implementation stage. ENGIE Brasil Energia\u2019s investments amounted to R$ 4.013 billion in 2020, of which R$ 655.8 million were allocated to the acquisition of corporate stakes: R$ 328.6 million in the acquisition of a 100% holding in Novo Estado Energia S.A, a transmission line between the states of Par\u00e1 and Tocantins, and R$ 327.2 million in the acquisition\u00a0 a further 3.25% in TAG.<\/p>\n

\u201cWe are active in various links along the electrical sector value chain, with a participation in the development of transmission systems as\u00a0 well as expanding our generation facilities, initiatives which will allow a balanced supply of energy nationwide, contributing to the development of various regions of Brazil and cooperating with a positive resumption\u00a0 in economic activity\u201d Eduardo comments.<\/p>\n

A total of R$ 3.2 billion was invested in the construction of new projects, notably R$ 1.2 billion for the Novo Estado transmission line, R$ 972.9 million to the Campo Largo II Wind Complex, state of Bahia, and R$ 859.9 million in the Gralha Azul Transmission System in the state of Paran\u00e1. \u00a0In spite of the economic crisis and the pandemic, the three projects are scheduled to go into operation in 2021. \u201cWith resources assured from the market, reflecting\u00a0 our financial discipline and consistent delivery of results, we managed to advance the investment plans set for 2020, thus maintaining the expectation of startup in commercial operations of the projects and our commitments to the investors\u201d, Sattamini adds.<\/p>\n

ENGIE is also to begin work in the installation of the Santo Agostinho Wind Complex in the state of Rio Grande do Norte and on January 15 , 2021, a contract was signed with Siemens Gamesa to supply the wind generators. The project represents an investment of about R$ 2.2 billion and 434 MW of installed capacity with generation delivered to the Free Energy Market.<\/p>\n

In January 2021, a gradual start was made to generator testing operations \u00a0at the Campo Largo II Wind Complex in the state of Bahia. Again in the fourth quarter, the Generation Operations Center (COG) began assisted remote operations of the Machadinho, Hydroelectric Plant on the \u00a0Pelotas River, in the municipality of Piratuba (SC), bringing the number of plants operated out of the COG to 48 (5,468 MW) .<\/p>\n

“The acceleration of the transition to a carbon neutral economy is one of the key guidelines in ENGIE\u2019s global business strategy. We are assuming a decisive role as\u00a0 catalyst in this transformation of directing our investments in generation from renewable sources”, says Sattamini. “Consequently, we have also been able to innovate in products and services, offering alternatives to our clients in their progression toward reducing emissions and promoting faster means towards decarbonization\u201d, Sattamini adds.\u00a0<\/strong><\/p>\n

Other highlights in 2020\u00a0 <\/strong><\/p>\n

ENGIE and Natura have signed a partnership for the acquisition of carbon credits from the Lages Cogeneration Unit for offsetting 100 thousand tons of the Natura\u2019s CO_{2 <\/sub>\u00a0emissions in its 2019 inventory. Other important negotiations took place in 2020 based\u00a0 on the tendency of mobilization in the private sector in the direction of a low carbon economy.<\/p>\n}

A component of B3\u2019s Corporate Sustainability Index (ISE) since its inception\u00a0 16 years ago, ENGIE was also selected to be part of the new Carbon Efficient Index – ICO2 B3 portfolio from January 4 to April 30, 2021, readjustments to the portfolio taking place every four months, in\u00a0 line with IBrX 100 updates. This participation is further confirmation of the Company\u2019s historic commitment\u00a0 with the highest standards of sustainability and governance.<\/p>\n

On the social front, ENGIE demonstrated its profound commitment through tax incentive projects as well as its own social empowerment programs, among them the \u201cWomen of Our Neighborhood\u201d. This is an initiative designed to support women in income creation, sharing of knowledge and health support network. In the fourth quarter 2020, the winning projects of the first edition of the Program were announced, in\u00a0 which a total of R$ 500 thousand was distributed to 28 female entrepreneurs drawn from communities surrounding the Company\u2019s operations\u00a0 throughout Brazil.<\/p>\n

The Company\u2019s focus was also on providing support for tackling the sanitary crisis following the outbreak of the new coronavirus pandemic, outlays totaling more than R$ 7 million. Some of these resources came from Solidarity Campaign. The latter received strong support from the Company\u2019s employees, reinforcing community engagement as a key element in ENGIE corporate culture. \u201cDifferent support models were used in the communities\u00a0 where we have operations given that the necessities of each location are also diverse. The sanitary crisis obliged us to prioritize immediate help to the more vulnerable as well as emergency assistance to health institutions for improving conditions for attending the population\u201d, Sattamini said.<\/p>\n","protected":false},"excerpt":{"rendered":"

The year saw investments of the order of R$ 4 billion, principally for wind generation and transmission line installation projects.<\/p>\n","protected":false},"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-34596","imprensa","type-imprensa","status-publish","format-standard","hentry","tipo-release-renewables"],"acf":[],"yoast_head":"\n