Eletrobras reverses losses and earns R$ 893 million.

Year-to-date, the energy company recorded a profit of R$ 4.4 billion, 21% higher than in 2022.

Eletrobras reported a net profit of 893 million reais in the fourth quarter of 2023, reversing a loss of 479 million suffered in the same period of the previous year, according to results released on Thursday.

The earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled 1.05 billion reais in the period, down 26% year-on-year. Calculated under regulatory metrics, the company’s recurring EBITDA reached 5.6 billion reais in the quarter, up 5%, due to higher transmission revenues and reduced operating expenses.

Higher revenues in the quarter and an income tax and social contribution effect offset the impacts of an increase in net financial expenses and provisions on the net profit of the quarter, according to Eletrobras’ balance sheet.
For the full year, the electric power company reported a profit of 4.395 billion reais, 21% above that of 2022, while its EBITDA grew by 49% to 17 billion reais.

In a report accompanying the balance sheet, Eletrobras stated that its operational and financial results for 2023 reflected “the pursuit of greater cost efficiency and process rationalization,” enabling the resumption of its investment capacity.

Among its business areas, Eletrobras highlighted advancements in energy trading, a division that gained importance after the privatization process. The company also noted improvements in its costs related to “personnel, materials, services, and other” (PMSO), with initial effects from the two voluntary dismissal programs (PDVs) launched.

Regarding contingencies, Eletrobras pointed out a 41% reduction in the compulsory loan stock, the main liability on its balance sheet, to 17.2 billion reais, compared to 24.3 billion reais in the last quarter of 2022.

In the last quarter of 2023, Eletrobras’ investments totaled 4.63 billion reais, 190% higher than the amount recorded one year earlier.

“Eletrobras added, ‘Our financial discipline and capital allocation enabled the proposal of distributing dividends in the amount of 1.297 billion reais related to the results of 2023.'”