SAO PAULO (Reuters) -Brazilian energy large Eletrobras reported late on Wednesday a first-quarter web revenue of 331 million reais ($65 million), down 19% from a 12 months earlier because it resumed transmission investments and confronted decrease power costs.
WHY IT’S IMPORTANT
Eletrobras is Latin America’s largest utility and has been implementing new methods after it was privatized in June 2022, when the Brazilian authorities diluted its stake within the agency in a transaction price greater than $6 billion.
The corporate now has dispersed possession.
KEY QUOTE
“Leads to the primary quarter mirrored the continued seek for value rationalization, the deal with monetary administration and the resumption of investments in transmission,” Eletrobras stated in a press release.
MARKET REACTION
Sao Paulo-traded shares of Eletrobras fell greater than 5% after the outcomes, underperforming Brazil’s benchmark inventory index , which was buying and selling down 1.5%.
Analysts at Itau BBA stated in a observe to purchasers that core earnings got here in barely under their expectations resulting from decrease common free-market power costs, however Eletrobras had a stable efficiency by way of obligatory mortgage legal responsibility administration.
BY THE NUMBERS
Eletrobras’ web revenues fell 6% within the first three months of the 12 months to eight.72 billion reais.
Adjusted earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) slipped 19% to 4.5 billion reais.
($1 = 5.0904 reais)
