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Webcast 4 q13 eng

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  • 1. OPERATING AND FINANCIAL RESULTS 4Q13
  • 2. Agenda ► Introduction ► Highlights ► Operating Results ► Financial Results 2
  • 3. Agenda ► Introduction ► Highlights ► Operating Results ► Financial Results 3
  • 4. Introduction Presentation of Operating and Financial Information ► The financial information contained herein is presented in consolidated figures, pursuant to Brazilian Corporate Law, based on revised financial information. The consolidated financial information represents: i) 100% of CEMAR’s results, excluding 34.89% related to minority interests before Net Income, resulting in participation of 65.11% ii) 100% of CELPA’s results, excluding 3.82% related to minority interests before Net Income, resulting in participation of 96.18%; and iii) 100% of Equatorial Soluções’ results, which in turn consolidated 100% of Sol Energias’ results, excluding 49% of minority interest before Net Income. ► The operating information presented herein consolidates 100% of CEMAR’s results and 100% of CELPA’s results. ► The following information was not reviewed by the independent auditors: i) non-financial information relating to CEMAR, Light and the PLPT (Programa Luz para Todos - Light for All Program); ii) pro forma information and its comparison with the results presented in the period; and iii) management expectations regarding the future performance of the Companies. 4
  • 5. Agenda ► Introduction ► Highlights ► Operating Results ► Financial Results 5
  • 6. Operating Highlights ► CEMAR’s total billed energy volume reached 1,440 GWh in 4Q13, 13.8% higher than in 4Q12. The total volume distributed by CELPA (captive and free markets) totaled 1,985 GWh in 4Q13, representing growth of 14.6% YoY. ► In CEMAR, energy losses of the last 12 months ending 4Q13 represented 19.2% of the required energy, with a decrease of 1.1 percentage points compared to 20.3% recorded in 3Q13. In CELPA, total losses ended the year at 35.5% of the required energy. ► In 4Q13, CEMAR’s DEC and FEC indexes (accumulated over the last 12 months) were 18.9 hours, a decrease of 12.8%, and 10.9 times, a decrease of 0.7%, compared to those observed at the end of 4Q12. In CELPA, these same indexes closed the quarter with improvements of 27.7% and 25.4%, respectively. 6
  • 7. Financial Highlights ► Net operating revenues (NOR) in 4Q13 reached R$1,329 million, up 15.8% compared to 4Q12’s NOR, which reflects the beginning of the consolidation of CELPA only as from November 2012. ► In 4Q13, EBITDA totaled R$131 million, a 21.1% decrease compared to the 4Q12 amount, mainly due to the recognition of higher costs of energy purchase. ► The net result of the quarter was a loss of R$62 million, also mainly due to the increased recognition of the energy purchase costs. ► In 4Q13, Equatorial's consolidated investments totaled R$261 million, 1.1% higher than those made in 4Q12. ► Proposed Dividends: R$17.9 million, equivalent to R$ 0.09 per share, or 25% of the Adjusted Net Income. 7
  • 8. Agenda ► Introduction ► Highlights ► Operating Results ► Financial Results 8
  • 9. Energy Market - CEMAR ► CEMAR: 4Q13 energy sales moved up by 13.8%, reaching 1,440 GWh. Electricity Consumption per Segment (MWh) CONSUMPTION SEGMENTS * (MWh) 4Q12 3Q13 4Q13 Chg. 2012 2013 Chg. Residential Industrial 602,968 124,489 658,860 127,738 690,103 142,688 14.5% 2,257,539 479,727 2,563,490 497,447 13.6% Commercial Others 253,985 284,782 272,786 302,309 287,226 320,317 13.1% 960,422 1,098,354 1,062,255 1,164,727 10.6% 12.5% 1,266,225 1,361,693 1,440,335 13.8% 4,796,041 5,287,920 10.3% TOTAL 14.6% 3.7% 6.0% * Does not include sales to CEPISA and ow n consumption. Energy Balance (MWh) ENERGY BALANCE (MWh) 4Q12 3Q13 4Q13 Chg. 2012 2013 Chg. Required Energy 1,619,756 1,699,003 1,745,389 7.8% 6,059,292 6,552,861 8.1% Sold Energy (*) 1,268,309 1,363,727 1,442,845 13.8% 4,804,022 5,296,492 10.3% 351,447 335,276 302,544 -13.9% 1,255,270 1,256,370 0.1% Losses (*) Co nsiders sale to the segments, o wn co nsumptio n and sales to CEP ISA 9
  • 10. Distribution – Energy Losses in CEMAR 10
  • 11. Distribution – DEC and FEC - CEMAR ► CEMAR: In 4Q13, the DEC index decreased 12.8% compared to 4Q12 while the FEC index decreased 0.7% compared to the same quarter last year. DEC (hours) FEC (times) 21.7 -12.8% 11.0 18.9 4Q12 4Q13 4Q12 -0.7% 10.9 4Q13 11
  • 12. Energy Market - CELPA ► CELPA: Energy demand growth of 14.6% in energy sales in 4Q13 (Captive Market + Free), reaching 1,985 GWh. . Electricity Consumption per Segment (MWh) CONSUMPTION SEGMENTS * (MWh) Residential Industrial 4Q12 658,352 296,871 3Q13 700,202 339,552 4Q13 758,350 364,903 Commercial Others 389,469 301,819 418,796 310,282 445,532 328,569 14.4% 1,646,511 1,768,832 1,897,354 85,117 87,716 1,731,627 1,856,548 TOTAL Free Consumers TOTAL (Captive + Free) Chg. 2012 2,526,004 1,226,926 2013 2,757,980 1,294,265 1,639,171 1,216,900 10.8% 8.9% 1,479,814 1,150,232 15.2% 6,382,977 6,908,316 8.2% 87,476 2.8% 293,119 342,050 16.7% 1,984,831 14.6% 6,676,096 7,250,367 8.6% 15.2% 22.9% Chg. 9.2% 5.5% 5.8% * Does not include ow n consumption. Energy Balance (MWh) ENERGY BALANCE (MWh) Energy Sales (Captive + Own Consumption) 4Q12 3Q13 4Q13 Chg. 2012 2013 Chg. 1,653,375 1,775,472 1,910,597 15.6% 6,412,030 6,940,732 8.2% Free Market 85,117 87,716 87,476 2.8% 293,119 342,050 16.7% Total Losses 1,021,483 1,053,750 991,983 -2.9% 3,618,950 4,007,915 10.7% Required Energy 2,759,975 2,916,937 2,990,056 8.3% 10,324,099 11,290,651 9.4% 111,155 115,621 120,510 8.4% 403,750 449,083 11.2% 2,648,820 2,801,316 2,869,545 8.3% 9,920,349 10,841,568 9.3% Own Generation Energy Purchase (Contracts) (*) Includes sales to the segments, o wn co nsumptio n and free market. 12
  • 13. Distribution – Energy Losses in CELPA 13
  • 14. Distribution – DEC and FEC ► CELPA: In 4Q13, the DEC index improved 27.7% compared to 4Q12 while the FEC index decreased 25.4% compared to the same quarter last year. Analyzing CELPA’s indices only in the quarter, we can see improvements of 40.6% and 30.8%, respectively. DEC (hours) 101.6 -27.7% FEC (times) 82.7 50.9 -25.4% 38.0 CELPA – Last 12 months 4Q12 4Q13 22.9 4Q12 4Q13 11.8 -40.6% -30.8% 8.2 CELPA – Quarterly 13.6 4Q12 4Q13 4Q12 4Q13 14
  • 15. Agenda ► Introduction ► Highlights ► Operating Results ► Financial Results 15
  • 16. Quarterly Results Equatorial’s EBITDA Consolidated EBITDA (R$ million) 4Q12 3Q13 4Q13 Chg. 2012 2013 Chg. CEMAR's EBITDA CELPA's EBITDA 148 (377) 172 161 113 22 -23,6% 533 (369) 494 113 -7,3% EBITDA (Holding + Others) Accounting EBITDA (13) (242) (2) 331 (4) 131 -69,2% (21) 586 0,0% N/A (21) 143 309,8% Net Regulatory Assets / Liabilities CEMAR (17) (11) (5) -70,6% (37) 66 N/A Net Regulatory Assets / Liabilities CELPA Energy Purchase Correction (CEMAR) 1 23 - N/A 5 (2) 1 N/A - (125) - Metering Sales Adjustment (CEMAR) CELPA's PMSO Adjustment (Restructuring) - 26 2 5 N/A Others (CELPA) - 7 Adjusted Regulatory EBITDA (258) 228 N/A N/A - N/A 2 39 N/A N/A - - N/A - - N/A 156 N/A 109 694 N/A N/A 536,7% In 2012, we are consolidating CELPA on a pro forma basis, to maintain comparability between quarters. The same goes for 4Q12. 16
  • 17. Quarterly Results CELPA’s Net Income CELPA's Net Income (R$ million) Net Societary Loss Regulatory Assets / Liabilities Financial Expenses Adjustment Deferred Taxes Adjustment SG&A Restructuring Costs Depreciation / Amortization Adjusted Regulatory Net Results 4Q12 3Q13 4Q13 Chg. 2012 2013 Chg. (262) 100 (111) 57,8% (704) (229) 67,5% 45 - (115) 25 - 24 13 22 5 8 -47% N/A N/A N/A N/A 72 - 31 13 22 39 31 -57% N/A N/A N/A N/A (217) 10 (39) 82% (632) (93) 85% CEMAR’s Net Income CEMAR's Net Income (R$ million) 4Q12 3Q13 4Q13 Chg. 2012 2013 Chg. Net Societary Income 150 57 37 -75,3% 385 192 -50,1% Regulatory Assets / Liabilities (128) 9 6 105% (140) 92 166% N/A (8) - 100% Energy Purchase Adjustment - - - Financial Asset Adjustment - 22 9 N/A (69) 20 129% Adjusted Regulatory Net Results 22 88 52 136% 168 304 81% 17
  • 18. Debt: Schedule of Gross Debt Maturities Consolidated Gross Debt (100% CEMAR + 100% CELPA) 18
  • 19. Net Debt - Consolidated 100% CEMAR + 100% CELPA Net Debt (R$MM) and Net Debt/ EBITDA (Last 12 months) 2.0 1,430 Net Debt Reconciliation (R$MM) 2.9 423 2.3 1,403 1.7 1,001 1,078 1.9 1.613 3,226 1,125 1,189 Gross Debt Net Cash Net Debt Regulatory 4Q12 1Q13 2Q13 3Q13 4Q13 Assets We adjusted Equatorial’s net debt of previous quarters excluding the 25% stake in Geramar due to the change in the accounting consolidation rule. 19
  • 20. Net Debt – Pro-rata 65.11% CEMAR + 96.18% CELPA Net Debt (R$MM) and Net Debt/ EBITDA (Last 12 months) 2.7 2.7 2.4 1,001 Net Debt Reconciliation (R$MM) 379 2.1 1.7 984 849 1,348 2,577 849 738 629 Gross Debt 4Q12 1Q13 2Q13 3Q13 4Q13 Net Cash Net Debt Regulatory Assets We adjusted Equatorial’s net debt of previous quarters excluding the 25% stake in Geramar due to the change in the accounting consolidation rule. 20
  • 21. Capex - Equatorial ► CEMAR: In 4Q13, total capex reached R$113 million, of which R$102 million are own capex and R$11 million regarding the Light for All Program (PLPT). ► CELPA: In 4Q13, total capex reached R$148 million, of which R$110 million are own capex and R$38 million regarding the Light for All Program (PLPT). INVESTMENTS (R$MM) CEMAR Own (*) Light For All Program Total CELPA Own (*) Light For All Program Total GERAMAR Generation 4Q12 3Q13 4Q13 Chg. 2012 2013 Chg. 150 45 196 62 6 68 102 11 113 -31.9% -76.5% -42.2% 441 177 619 296 29 325 -32.9% -83.8% -47.6% 57 5 62 78 16 94 110 38 148 91.3% 658.3% 136.7% 433 45 478 361 61 421 -16.7% 33.5% -11.9% 0 0 0 45.1% 0 0 -11.0% TOTAL 258 (*) Including indirect Light For All Program investments 162 261 1.1% 1,097 746 -32.0% 21
  • 22. Contacts Eduardo Haiama CFO and IRO Thomas Newlands Investor Relations Renato Parentoni Investor Relations Telephone 1: +0 55 (21) 3206-6635 Telephone 2: +0 55 (21) 3217-6607 Email: ir@equatorialenergia.com.br Website: http://www.equatorialenergia.com.br/ir 22
  • 23. Disclaimer • This presentation may contain forward-looking statements, which are subject to risks and uncertainties, as they were based on the expectations of Company’s management and on available information. These prospects include statements concerning the Company’s current intentions or expectations for our clients; this presentation will also be available at our website www.equatorialenergia.com.br/ir and in the IPE system of the Brazilian Securities and Exchange Commission (CVM). • Forward-looking statements refer to future events which may or may not occur. Our future financial situation, operating results, market share and competitive positioning may differ substantially from those expressed or suggested by said forward-looking statements. Many factors and values that can establish these results are outside Company’s control or expectation. The reader/investor is advised not to completely rely on the information above. • The words “believe", “can", “predict", “estimate", “continue", “anticipate", “intend", “forecast" and similar words, are intended to identify estimates, which refer only to the date on which they were expressed. Hence, the Company has no obligation to update said statements. • This presentation does not constitute any offering, invitation or request of subscription offer or purchase of any marketable securities. And, this statement or any other information herein, does not constitute the basis for any contract or commitment of any kind. 23