ENGIE Brasil Energia (EGIE3) reported an Ebitda of R$ 1.738 billion in the first quarter of 2021, an increase of 30.5% (R$ 406 million) compared with the same quarter in 2020. Net profits rose 3.3% and reached R$ 529 million for the period despite the impact of the General Market Price Index (IGP-M) on monetary restatement of concessions payable. The Company’s net operating revenue reached R$ 3.250 billion in the first three months, 25.3% (R$ 655 million) higher year-on-year.
Among the factors contriving to produce this result, of particular importance were improved results at Transportadora Associada de Gás (TAG) and the transmission segment. In addition, there was a decline in energy purchases, an increase in net average selling prices and a non-recurring item complementary to the reimbursement amount, the outcome to hydrological risk renegotiations at the end of 2020.
Excluding programmed stoppages, from January to March, the plants operated by ENGIE Brasil Energia posted uptime of 95%, 99.8% for the hydroelectric plants, 66% for the thermoelectric units and 91.1% for those operations powered by complementary sources — SHPs, biomass, wind and photovoltaic.
Electric energy output from plants operated by the Company was 9,938 GWh (4,601 average MW) in 1Q21, a result which was 26% greater than 1Q20. This reflected the improved hydrological situation in the South, where the majority of ENGIE Brasil Energia’s hydro plants are located, as well as the startup in commercial wind turbine operations at the Campo Largo II Wind Complex and more favorable wind densities this year in the Northeast region where the Company’s wind generation capacity is located.
In the light of robust and consistent results registered set against a backdrop of the challenges still confronting the country in the early months of the year, at the Annual General Meeting held on April 28, the shareholders approved the proposal to distribute complementary dividends for the fiscal year ending December 31, 2020 in the amount of R$ 610 million (R$ 0.7471/share), increasing the payout for 2020 to 100% of the distributable net profit (excluding the effects of the renegotiation of hydrological risk).
“At the same time that we intensified our social engagement in the light of the challenges imposed by the pandemic, we demonstrated excellence in our performance, guaranteeing the supply of energy and maintaining consistent growth in our results”, observes the Company’s Chief Executive and Investor Relations Officer, Eduardo Sattamini.
ENGIE continues to pursue a series of initiatives for meeting the challenge of Covid-19, among them, the testing of employees and service providers; participation in the Alliance for Life Project (Projeto Aliança pela Vida); viabilization of oxygen plants in conjunction with the Banco Nacional de Desenvolvimento Econômico e Social (BNDES); campaigns to raise funds to help communities surrounding head office and the plants; signing up to the United by Vaccine (Unidos pela Vacina) movement for the purchase of materials required for the vaccination process as well as the acquisition of medication necessary for intubation in partnership with other companies.
Investment forecast maintained for 2021,
ENGIE Brasil Energia has maintained its investment forecast of the order of R$ 3.6 billion for 2021. “Driven by our strategy for accelerating the energy transition towards a carbon-neutral economy, we continue determined to contribute to the economic recovery with investments in renewable energy generation and infrastructural operations with the transmission projects. We are at one with the ENGIE group on a global scale which forecasts accelerated growth in renewable energy and infrastructure over the next few years”, says Sattamini.
Investments in the first three months of the year totaled R$ 982 million, of which R$ 944 million were made in construction work on new projects. Work on the Novo Estado Transmission System in the states of Pará and Tocantins continue apace and is 69% complete with operations due to begin by December 2021. Some R$ 472 million was invested in the project during the first quarter. During the same period, the company invested a further R$ 234 million in the implementation of the Gralha Azul Transmission Line in the state of Paraná, now 83% complete with operations expected to begin in September 2021. An additional R$ 204 million was injected into the Campo Largo II Wind Complex during the first three months with commercial operations scheduled to begin in the 3rd quarter 2021. The Company expended R$ 34 million in the same period on the Santo Agostinho Wind Complex project, installation work to begin there in June.
A landmark 1GW of installed wind capacity and 1.2GW from all non-conventional sources
During the quarter, the National Electric Energy Agency (Aneel) authorized the Campo Largo II Wind Complex in Umburanas (BA) to begin commercial operations. Currently, some 142.8MW in installed capacity has already been brought on stream, the Company’s operations in Brazil surpassing the 1GW mark if all windfarms are taken into consideration, while total installed capacity from all non-conventional, renewable sources amounts to 1.2GW. The outlook is that the project in Umburanas should be fully operational by the third quarter of 2021, with a total output of 361.2 MW.
Other highlights of the period
ENGIE Brasil Energia awarded FRAM Capital exclusive rights for a 120-day period as from February 25, 2021 to conduct its due diligence on the sale of the Jorge Lacerda Thermoelectric Complex in Capivari de Baixo (SC). And the process for selling all the shares in the Pampa Sul Thermoelectric Plant in Candiota (RS) with 345 MW of installed capacity has resumed. Both initiatives are in line with ENGIE’s global decarbonization strategy.
The Company also received the accolade as the best company in Latin America in the Environment Category, Latin Trade IndexAmericas Sustainability Award 2021, an award involving a partnership between the Inter-American Development Bank (IBD) and Latin Trade, a business magazine circulating in the region for 27 years. Again in the socio-environmental field, ENGIE Brasil Energia has signed up to the Brazilian Waters (Águas Brasileiras) program of the Regional Development Ministry, its objective being the revitalization of hydrographic basins in the country.
EBE also renewed its commitment to Ethos Institute’s Corporate Pact for Integrity and Against Corruption, a voluntary undertaking by both private and public sector companies with the objective of promoting a more integral, ethical market and to eradicate bribery and corruption.
Launch of the Sustainability Report
On April 29, ENGIE Brasil Energia published the 2020 edition of its Sustainability Report. The document is an important tool for reporting and a medium for rendering accountability to society and stakeholders, analysis and detailing the highlights of the Company during the year in its principal business segments: energy generation, transmission, transportation of gas, distributed solar generation and trading.
ENGIE Brasil Energia’s Sustainability Reports are published annually and can be accessed from the Company’s website.
To see ENGIE’s Sustainability Report 2020 in full, access the link: https://www.engie.com.br/imprensa/press-release/engie-brasil-energia-lanca-relatorio-de-sustentabilidade/.