Privatized 20 years ago in September 1998, ENGIE Brasil Energia ends the third quarter of 2018 reporting results which confirm its successful trajectory over the period. Net income in 3Q18 was 475.4 million, (R$ 0.7282/share), an amount 32.8% higher than the same period in 2017. Net operating revenue increased 50.4% compared with 3Q17, increasing to almost R$ 2.5 billion. This variation reflects the increase in the result for the short term energy market and business with trading companies, as well as the contributions made by the Jaguara and Miranda (MG)  hydro plants, acquired in an auction late last year.

Ebitda (earnings before interest, taxes, depreciation and amortization) reached R$ 1,019.7 million, an increase of 43.5%. Ebitda margin was 41%.

“The numbers qualify us to advance further in our long term strategy for transforming ENGIE into a major  player in energy infrastructure investment in Brazil”, declares ENGIE Brasil Energia’s Chief Executive Officer, Eduardo Sattamini. “The combination of efficient management of the asset portfolio and the capacity to grow profitably places us in a privileged position for offering  a differentiated investment platform to the investor”, the executive points out. Sattamini is also commemorating winning the Transparency Trophy for the ninth time, this accolade being awarded by Anefac, Fipecafi and Serasa Experian to companies which are outstanding for the quality and consistency of their financial information.

In the third quarter, the company drew down R$ 1,051.1 million in financing for the Campo Largo Wind Complex and the Pampa Sul thermoelectric plant (RS) under an agreement with the Brazilian Development Bank (BNDES).

At a later event, approval was given to the credit of R$ 397 million (R$ 0.6082033686 per share) in interest on equity capital and in intermediate dividends for a total amount of R$ 652.7 million (R$ 1.00 per share).

PREPARING FOR SECTOR CHANGES

“We are moving in the direction of diversification of our businesses although maintaining our focus on renewable generation as one of the important pillars of our strategy”, says Sattamini. ENGIE Brasil Energia Chief Executive Officer, adds that the Company is preparing for the major changes which will occur in the sector over the next few years: “The fundamental role of technology with the innovations brought by big data, artificial intelligence and data analytics, combined with the tendencies in the electricity sector, principally with the expansion of the free market, will bring us still closer to the final consumer”.

WIND FARMS AND DECARBONIZATION

Five phase 1 wind farms at the Campo Largo (BA) Wind Complex began generating power in the third quarter. Campo Largo will be operating at full commercial capacity in the fourth quarter of this year. Again the Umburanas Wind Complex, also in the state of Bahia, and now with 66% of the work concluded, is expected to go into full operation by the second quarter of 2019. “Our progress in wind is in line with our strategy of decarbonizing energy generation. This source of energy will soon become ENGIE’s second largest in installed capacity in Brazil”, declares Sattamini.

INCREASE IN CAPITAL STOCK

The Company’s Board of Directors also approved a proposal – to be submitted for a decision by the next Extraordinary General Shareholders Meeting, to be called in due course – for increasing the capital stock of ENGIE Brasil Energia, through the issue of new common shares to be granted to the  shareholders as a bonus in the proportion of 1 (one) new share for every four common shares.

The bonus operation is designed to increase share liquidity in the market,  considering that there will be: a) a larger free float, potentially increasing trading volume; and b) by adjusting the share price through the bonus issue, the price per share becomes more attractive and accessible to a larger number of investors.