ALUPAR INVESTIMENTO S.A. São Paulo, March 10, 2016 - Alupar Investimento S.A. (BM&FBovespa: ALUP11), discloses today its 4Q15 results. The quarterly information (ITR) and standardized financial statements (DFP) are presented in accordance with the accounting practices adopted in Brazil, in compliance with the provisions of Brazilian Corporate Law, International Financial Reporting Standards (IFRS) and the standards issued by the Accounting Pronouncements Committee (CPC).
4Q15 Conference Call: March, 11 English (Simultaneous Translation)03:00 p.m. (Brasília Time) 01:00 p.m. (NY Time) Phone: +1 (646) 843-6054
Code: Alupar
Replay: + 55 (11) 2188-0400
Code: Alupar
03:00 p.m. (Brasília Time) 01:00 p.m. (NY Time) Phone: + 55 (11) 2188-0155
Code: Alupar
Replay: + 55 (11) 2188-0400
Code: Alupar
José Luiz de Godoy Pereira Luiz Coimbra
Kassia Orsi Amendola Fernando Carvalho Pereira Tel.: +55 (011) 4571-2400
ri@alupar.com.br
Live Webcast: www.alupar.com.br/ri
(1) Equivalent Units
4Q15 HighlightsCorporate Result (IFRS): In 4Q15, the adjusted Net Revenue reached R$ 341.3 million, against the R$ 391.3 million recorded in 4Q14. In 2015, Adjusted Net Revenue totaled R$ 1,417.8 million, 5.9% higher than the R$ 1,338.9 million recorded in 2014.
In 4Q15, EBITDA totaled R$ 278.4 million, compared to the R$ 301.6 million in 4Q14. In 2015, EBITDA totaled R$ 1,150.8 million, 5.7% higher than the R$ 1,088.9 million in 2014.
In 4Q15, Net Income totaled R$ 42.0 million, compared to R$ 114.6 million in 4Q14. In 2015, Net Income amounted to R$ 209.2 million compared to the R$ 362.8 million in 2014.
In 4Q15 investments amounted R$ 229.0 million, compared with R$ 113.6 million in 4Q14. In 2015, investments totaled R$ 753.5 million, compared to R$ 417.2 million recorded in 2014.
Regulatory Result: In 4Q15, Net Revenue reached R$ 353.6 million, compared to R$ 387.0 million in 4Q14. In 2015, Net Revenue totaled R$ 1,416.6 million, 9.5% higher than the R$ 1,293.2 million reported in 2014.
In 4Q15, EBITDA reached R$ 317.7 million, 4.5% higher than the R$ 303.8 million posted in 4Q14. In 2015, EBITDA totaled R $ 1,160.6 million, 9.9% higher than the R$ 1,055.6 million recorded in 2014.
In 4Q15, Net Income totaled R$ 59.1 million, compared to R$ 114.0 million in the 4Q14. In 2015, Net Income was R$ 169.7 million, up on the R$ 287.7 million recorded in 2014.
The Company joined the proposal for renegotiation of the hydrological risk in the ACR (Regulated Environment), as established by Law No. 13.203/2015 and ANEEL Resolution No. 684/2015. The decision was based on the evaluation of the various Difference Settlement Price (PLD) and Generation Scaling Factor (GSF) scenarios. For Foz do Rio Claro HPP and São José HPP (Ijuí), the Company adhered to the SP100 product while Ferreira Gomes HPP joined the SP92 product.
In February 2016, the La Virgen subsidiary received a favorable decision from the Ministry of Mines and Energy of Peru to expand the installed capacity of the La Virgen HPP, from 64MW to 84MW.
On February 29, 2016, the agency Fitch Ratings has affirmed the National Long- term rating 'AA + (bra)' of Alupar and its debenture issues, being the perspective of the corporate rating is Stable.
On March 10, 2016, the Board of Directors recommended: (a) the distribution of R$ 175.0 million of profits for the 2015 fiscal year (equivalent to R$ 0.84 per unit), that refers to 88.1% of the 2015 Net Income, and; (b) the Company reinforcement of working capital in the amount of R$ 173.3 million, with the issuance of 40,618,617 new shares, to be bonus to shareholders and holders of Units at a ratio of 6.50 new shares for every 100 existing shares, both proposal will be submitted for approval at the General Shareholders Meeting to be held April 20, 2016.
Key Indicators "CORPORATE LAW (IFRS) | " | ||||||
R$ MM | 4Q15 | 4Q14 | Var.% | 2015 | 2014 | Var.% | |
Adjusted Net Revenue | 341.3 | 391.3 | (12.8%) | 1,417.8 | 1,338.9 | 5.9% | |
EBITDA (CVM 527) | 278.4 | 301.6 | (7.7%) | 1,150.8 | 1,088.9 | 5.7% | |
Adjusted EBITDA Margin | 81.6% | 77.1% | 4.5 p.p | 81.2% | 81.3% | (0.1 p.p) | |
Financial Results | (124.0) | (74.5) | 66.4% | (427.7) | (242.6) | 76.3% | |
Consolidated Net Income | 146.1 | 193.9 | (24.7%) | 571.2 | 751.7 | (24.0%) | |
Subsidiaries' Minority Interest | 104.0 | 79.3 | 31.3% | 362.0 | 388.9 | (6.9%) | |
Net Income Alupar | 42.0 | 114.6 | (63.3%) | 209.2 | 362.8 | (42.3%) | |
Earnings per UNIT (R$)* | 0.20 | 0.55 | (63.3%) | 1.00 | 1.74 | (42.3%) | |
Net Debt** | 3,902.3 | 3,350.9 | 16.5% | 3,902.3 | 3,350.9 | 16.5% | |
Net Debt / Ebitda*** | 3.5 | 2.8 | 3.4 | 3.1 | |||
Key Indicators "REGULATORY" | |||||||
R$ MM | 4Q15 | 4Q14 | Var.% | 2015 | 2014 | Var.% | |
Net Revenue | 353.6 | 387.0 | (8.6%) | 1,416.6 | 1,293.2 | 9.5% | |
EBITDA (CVM 527) | 317.7 | 303.8 | 4.5% | 1,160.6 | 1,055.6 | 9.9% | |
Adjusted EBITDA Margin | 89.8% | 78.5% | 11.3 p.p | 81.9% | 81.6% | 0.3 p.p | |
Financial Results | (124.0) | (74.5) | 66.4% | (427.7) | (242.6) | 76.3% | |
Consolidated Net Income | 145.3 | 173.8 | (16.4%) | 467.4 | 592.2 | (21.1%) | |
Subsidiaries' Minority Interest | 86.2 | 59.8 | 44.2% | 297.7 | 304.5 | (2.2%) | |
Net Income Alupar | 59.1 | 114.0 | (48.1%) | 169.7 | 287.7 | (41.0%) | |
Earnings per UNIT (R$)* | 0.28 | 0.55 | (48.1%) | 0.81 | 1.38 | (41.0%) | |
Net Debt** | 3,902.3 | 3,350.9 | 16.5% | 3,902.3 | 3,350.9 | 16.5% | |
Net Debt / Ebitda*** | 3.1 | 2.8 | 3.4 | 3.2 | |||
* Net Income / Units Equivalents (208,300,600) ** Including Securities under Non-Current Assets ***Annualized EBITDA.
Notes:
"Adjusted" concept in the corporate law numbers: According to IFRS (ICPC 01 and IFRIC12), investments (Capex) by transmission companies must be recognized as revenue and cost. However, since we are dealing with investments and, in Alupar's case, since there is no effect on the Company´s result (revenue and cost being equal, giving a zero margin), for analytical reasons we have disregarded this effect when analyzing the Company´s revenues. The three main effects are figures relating to Adjusted Net Revenue (Net Revenue less Infrastructure Revenue, or Capex), Adjusted Operating Costs (same as the Revenue concept), and Adjusted EBITDA Margin (EBITDA divided by Adjusted Net Revenue).
"Regulatory" concept: This refers to the figures in the regulatory financial statements of our subsidiaries, whose main difference is the non-application of ICPC 01 (IFRIC 12). ICPC 01 has a material impact on our transmission segment companies with the creation of the "Financial Assets" account and the elimination of the "Fixed Assets" account in the balance sheet and several changes in the presentation of "Revenue" in the Statement of Income.
GSF: The Generation Scaling Factor (GSF) can be regarded as a percentage of energy that all participants in the MRE (Energy Reallocation Mechanism) generate in relation to the MRE's total guaranteed power (or assured energy) output in a given month. When the GSF is lower than 100%, MRE participants are generating less energy than their total guaranteed output. This deficit, usually due to hydrological risk, results in an exposure, which is apportioned in accordance with the guaranteed output of each participant. As a result, each generator is required to purchase the missing MWh to cover their exposure and comply with their respective contracted energy supply at the Difference Settlement Price (PLD) determined by the Electricity Trading Board (CCEE). When the system is operating normally under typical hydrological conditions, this effect is not expected to be of sufficient importance as to deserve a special mention in the Company's results. However, the recent unfavorable hydrological scenario over 2015, resulted in a higher GSF- related cost.
Alupar Investimento S.A. is a privately-held Brazilian holding company operating in the electricity transmission and generation segments, whose corporate purpose is to construct and operate infrastructure projects related to the energy sector in Brazil and other selected Latin American countries with economic, institutional and regulatory stability. Alupar is one of the largest companies in the Brazilian transmission segment in terms of Annual Permitted Revenue (RAP) and the largest one under private national control.
The Company´s ownership structure is shown below:
Alupar seeks to maximize shareholder returns through moderate financial leverage and a debt profile compatible with the low-risk nature of its business, high revenue predictability and the strong operating cash flow typical of the electricity transmission and generation segments.
Alupar's corporate credit ratings reflect this solid capital structure and predictable strong cash flow: AA+ (bra) from Fitch Ratings for national scale.
Fully committed to creating value for its shareholders and society as a whole, Alupar is a socially responsible company with substantial technical ability and strong financial discipline, enabling it to continue growing in a sustainable manner through the development of generation and transmission system projects.
Alupar retains an interest in 21 transmission system concessions, with a term of 30 years and a total extension of 5,703 km of transmission lines, 5,503 km of which are in Brazil and 200 km in Chile. In Brazil, it is part of 20 such concessions, 18 of which are operational and two are in the implementation phase, scheduled for commercial start-up in 2017 and 2018.
Company | Concession Term | Beginning of | Line | RAP/RBNI | RAP/RBNI | RAP/RBNI | Index | |
Begin | End | Operations | Expansion | (Cycle 2013-14) | (Cycle 2014-15) (Cycle 2015-16) | |||
ETEP | 06/12/2001 | 06/12/2031 | 08/25/2002 | 323 km | R$ 77.4 | R$ 83.4 | R$ 86.9 | IGP-M |
The main features of Alupar's transmission assets are shown below:
ENTE | 12/11/2002 | 12/11/2032 | 02/12/2005 | 464 km | R$ 177.7 | R$ 191.6 | R$ 199.5 | IGP-M |
ERTE | 12/11/2002 | 12/11/2032 | 09/15/2004 | 179 km | R$ 39.9 | R$ 43.0 | R$ 44.8 | IGP-M |
EATE | 06/12/2001 | 06/12/2031 | 03/10/2003 | 924 km | R$ 339.6 | R$ 366.2 | R$ 381.3 | IGP-M |
ECTE | 11/01/2000 | 11/01/2030 | 03/26/2002 | 252.5 km | R$ 75.0 | R$ 80.9 | R$ 84.2 | IGP-M |
STN | 02/18/2004 | 02/18/2034 | 01/01/2006 | 541 km | R$ 142.2 | R$ 153.3 | R$ 159.6 | IGP-M |
Transleste | 02/18/2004 | 02/18/2034 | 12/18/2005 | 150 km | R$ 32.2 | R$ 34.7 | R$ 36.2 | IGP-M |
Transudeste | 03/04/2005 | 03/04/2035 | 02/23/2007 | 140 km | R$ 20.0 | R$ 21.5 | R$ 22.4 | IGP-M |
Transirapé | 03/15/2005 | 03/15/2035 | 05/23/2007 | 65 km | R$ 23.3 | R$ 25.2 | R$ 26.3 | IGP-M |
STC | 04/27/2006 | 04/27/2036 | 11/08/2007 | 195 km | R$ 32.0 | R$ 34.0 | R$ 36.9 | IPCA |
Lumitrans | 02/18/2004 | 02/18/2034 | 10/03/2007 | 51 km | R$ 21.0 | R$ 22.7 | R$ 23.6 | IGP-M |
ETES | 04/20/2007 | 04/20/2037 | 12/12/2008 | 107 km | R$ 11.9 | R$ 12.1 | R$ 13.1 | IPCA |
EBTE | 10/16/2008 | 10/16/2038 | 07/11/2011 | 775 km | R$ 36.7 | R$ 39.0 | R$ 40.6 | IPCA |
TME | 11/19/2009 | 11/19/2039 | 11/22/2011 | 348 km | R$ 35.6 | R$ 37.8 | R$ 43.7 | IPCA |
ESDE | 11/19/2009 | 11/19/2039 | 01/22/2014 | Substation | R$ 10.8 | R$ 11.5 | R$ 11.5 | IPCA |
ETEM | 07/12/2010 | 07/12/2040 | 12/16/2011 | 235 km | R$ 10.7 | R$ 11.4 | R$ 12.3 | IPCA |
ETVG | 12/23/2010 | 12/23/2040 | 12/23/2012 | Substation | R$ 3.6 | R$ 3.8 | R$ 9.4 | IPCA |
TNE | 01/25/2012 | 01/25/2042 | Pre-Oper. | 715 km | R$ 134.5 | R$ 143.1 | R$ 155.2 | IPCA |
ETSE | 05/10/2012 | 05/10/2042 | 12/01/2014 | Substation | R$ 15.8 | R$ 16.8 | R$ 19.7 | IPCA |
Transchile | 06/16/2005 | Perpetual | 01/21/2010 | 200 km | R$ 15.8 | R$ 21.1(1) | R$ 21.8(2) | CPI-USA |
ELTE | 09/05/2014 | 09/05/2044 | Pre-Oper. | Substation+38km | R$ 28.9 | R$ 28.9 | R$ 31.4 | IPCA |
TOTAL | 5,703 km | R$ 1,284.4 | R$ 1,382.0 | R$1,460.5 | ||||
(1)US$ = 3.00 (2)US$ =3.10
See below the evolution of the Company's transmission lines - km:
Alupar Investimento SA issued this content on 10 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 11 March 2016 03:51:52 UTC
Original Document: http://ri.alupar.com.br/Download.aspx?Arquivo=hM3TIryBz3cIR1Pvawa5wg==
