EQUATORIAL ENERGIA S.A. Earnings
3Q15 Release
Rio de Janeiro, November 03, 2015 - Equatorial Energia S.A. (BM&FBOVESPA: EQTL3) announces its results for the third quarter and first nine months of 2015 (3Q15 and 9M15).
Equatorial is a holding company with investments in Companhia Energética do Maranhão (CEMAR), Centrais Elétricas do Pará (CELPA), Geramar and Equatorial Soluções. Equatorial holds a 65.11% interest in CEMAR, the electricity distributor for the entire state of Maranhão, and 96.50% in CELPA, the electricity distributor for the entire state of Pará. It also holds a 25% interest in Geramar, the company responsible for the construction and operation of two thermoelectric plants in Maranhão with a combined installed capacity of 330MW. In the service segment, Equatorial holds a 100% interest in Equatorial Soluções. Non-financial information relating to Equatorial Energia and its subsidiaries and the PLPT ('Light for All Program'), as well as Management's expectations regarding the future performance of the Company and its subsidiaries were not reviewed by independent auditors.
CEMAR'S AND CELPA'S DEMAND FOR ENERGY INCREASES 2.0% AND 3.8%, RESPECTIVELY. CONSOLIDATED EBITDA REACHES R$ 365 MILLION IN THE QUARTER.
1. FINANCIAL AND OPERATING HIGHLIGHTS
► CEMAR's total energy volume reached 1,518 GWh in 3Q15, 2.0% higher than in 3Q14. The total volume distributed by CELPA (captive and free markets) totaled 2,166 GWh in 3Q15, representing an increase of 3.8% YoY.
► Net operating revenues (NOR) in 3Q15 reached R$1,862 million, 11.5% higher than 3Q14's NOR.
► In 3Q15, Consolidated Accounting EBITDA was R$365 million, compared to R$ 450 million in 3Q14, 18.9% decrease, mainly due to positive non- recurring effects in 3Q14.
► The net result of the quarter was R$ 80 million, versus R$ 282 million reported in the 3Q14, also due to non-recurring effects in 3Q14.
► In 3Q15, Equatorial's consolidated investments totaled R$257 million, 20.6% less than those made in 3Q14.
► In 3Q15, CEMAR's DEC and FEC indexes (accumulated over the last 12 months) were 16.0 hours and 9.2 times respectively. In CELPA, these same indexes closed the quarter with improvements of 16.6% and 18.7%, respectively.
► In CEMAR, energy losses of the last 12 months ending 3Q15 represented 17.6% of the required energy, 0.1 percentage point above the index from the 2Q15. In CELPA, total losses ended the quarter at 31.3% of the required energy, a reduction of 0.5 p.p. compared to the 31.8% recorded in 2Q15.
► As from September, Equatorial's common shares (EQTL3) are part of the Ibovespa, IbrX-50 and MSCI Brazil indices.
FINANCIAL DATA (R$MM) | 3Q14 | 2Q15 | 3Q15 | Var. | 9M14 | 9M15 | Var. |
Total Net Operating Revenue | 1,670 | 1,719 | 1,862 | 11.5% | 4,349 | 5,259 | 20.9% |
Accounting EBITDA | 450 | 231 | 365 | -18.9% | 522 | 843 | 61.6% |
Accounting EBITDA (LTM) | 652 | 1,705 | 1,620 | 148.3% | 652 | 1,620 | 148.3% |
Regulatory EBITDA | 387 | 231 | 365 | -5.7% | 923 | 843 | -8.7% |
Regulatory EBITDA (LTM) | 1,070 | 1,059 | 1,037 | -3.1% | 1,070 | 1,037 | -3.1% |
EBITDA Margin (% net revenues) | 27.0% | 13.4% | 19.6% | -27.2% | 12.0% | 16.0% | 4 p.p. |
Net Income | 282 | 500 | 80 | -71.5% | 111 | 666 | 497.2% |
Profit Margin (% net revenues) | 16.9% | 29.1% | 4.3% | -12,5 p.p. | 2.6% | 12.7% | 10 p.p. |
Net Income per Share (R$ / share) | 2.58 | 2.52 | 0.41 | -84.3% | 1.02 | 3.36 | 228.7% |
Investments | |||||||
CEMAR | 85 | 65 | 78 | -8.6% | 218 | 212 | -2.4% |
PLPT (CEMAR) | 21 | 15 | 22 | 5.7% | 62 | 47 | -24.6% |
CELPA | 141 | 85 | 102 | -28.2% | 391 | 382 | -2.4% |
PLPT (CELPA) | 76 | 45 | 53 | -29.9% | 150 | 145 | -3.3% |
Geramar | 0 | 2 | 2 | 507.5% | 0 | 7 | 1511.3% |
Total | 323 | 212 | 257 | -20.6% | 821 | 793 | -3.5% |
Net Debt | 1,453 | 1,514 | 1,488 | 2.4% | 1,453 | 1,488 | 2.4% |
Net Debt / Regulatory EBITDA (LTM) | 1.4 | 1.4 | 1.4 | 0 x | 1.4 | 1.4 | 0 x |
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3Q14 2Q15 3Q15 Var. 9M14 9M15 Var.
Distribution
Billed Energy (GWh)
CEMAR | 1,488 | 1,424 | 1,518 | 2.0% | 4,175 | 4,353 | 4.3% |
CELPA | 2,087 | 1,875 | 2,166 | 3.8% | 5,947 | 6,009 | 1.0% |
Consumers (000)
CEMAR | 2,179 | 2,223 | 2,238 | 2.7% | 2,179 | 2,238 | 2.7% |
CELPA | 2,143 | 2,241 | 2,275 | 6.1% | 2,143 | 2,275 | 6.1% |
1
Earnings
3Q15 Release
2. OPERATING PERFORMANCE
The operating information contained in this section is pro forma and reflects 100% of the operations of CEMAR and 100% of the operations of CELPA.
OPERATING PERFORMANCE - CEMAR ELECTRIC ENERGY SALES
In 3Q15, energy sales increased 2.0% over the same quarter of the previous year, reaching 1,518 GWh. The growth observed during the quarter was a result of the expansion of the client base of 2.7% in the quarter.
CONSUMPTION SEGMENTS (MWh)
3Q14
2Q15
3Q15
Var.
9M14
9M15
Var.
Residential
717
695
733
2.2%
2,043
2,131
4.3%
Industrial
107
102
112
4.7%
299
314
5.3%
Commercial
301
295
312
3.3%
850
894
5.1%
Others
331
303
333
0.5%
895
926
3.5%
TOTAL
1,457
1,395
1,489
2.2%
4,086
4,266
4.4%
Free Consumers
31
29
29
-8.2%
89
88
-1.1%
TOTAL (Captive + Free)
1,488
1,423
1,518
2.0%
4,175
4,353
4.3%
The volume of required energy by CEMAR´s system reached 1,860 GWh in 3Q15, a growth of 2.6% year on year. The amount of energy sold grew 2.0% over the same quarter of the previous year.
ENERGY BALANCE (MWh)
3Q14
2Q15
3Q15
Var.
9M14
9M15
Var.
Required Energy
1,814
1,744
1,860
2.6%
5,058
5,294
4.7%
Sold Energy (*)
1,491
1,426
1,520
2.0%
4,181
4,360
4.3%
Losses
323
318
340
5.3%
876
934
6.6%
(*) Considers sale to the segments, own consumption and sales to CEPISA
2
Earnings
3Q15 Release
ENERGY DISTRIBUTION LOSSES
The total losses of the last 12 months ending in 3Q15 represented 17.6% of the Required Energy, a 0.1% increase in comparison with the end of the last quarter, whereas non-technical losses in the low-voltage market also increased to 12.5%.
Despite a greater resistance against actions of losses combat, due the current moment in the economy and the complexity of the area of concession, we have been successful in maintaining a level considered low for non-technical losses. Meanwhile, we are reassessing the Energy Losses Reduction Plan to further understand which should be a sustainable level in the long term.
We highlight that the losses percentage were reduced as from 4Q14 due to the revision of the supply point measurement.
3
Earnings
3Q15 Release
QUALITY INDICATORS - DEC AND FEC
The quality and efficiency of the distribution concessionaires' networks is measured by the DEC (Duration Equivalent of Interruption per Consuming Unit that measures the equivalent length of interruptions per consumer, measured in hours per consumer for a given period) and FEC (Frequency Equivalent of Interruption per Consuming Unit, measured as the number of interruptions per consumer for a given period).
At the close of 3Q15, the 12-month DEC stood at 16.0 hours, compared to 16.5 hours at the end of 3Q14, a decrease of 2.8%. The FEC indicator (accumulated 12-month period) at the end of 3Q15 was 9.2 times, representing a 16.0% decrease in 3Q14's rate.
DEC (hours): Last 12 months FEC (times): Last 12 months
-2.8%
16.5
16.0
10.9
-16.0%
9.2
3Q14 3Q15
3Q14 3Q15
OPERATING PERFORMANCE - CELPA ELECTRIC ENERGY SALES
In 3Q15, sales of energy for the captive market increased 4.8% compared to the same quarter of the previous year, reaching 2,088 GWh. This growth can be explained manly by a reduction in losses and a growth of the consumption due a greater number of consumers.
CONSUMPTION SEGMENTS (MWh) | 3Q14 | 2Q15 | 3Q15 | Var. | 9M14 | 9M15 | Var. |
Residential | 867 | 756 | 913 | 5.2% | 2,446 | 2,472 | 1.1% |
Industrial | 347 | 307 | 342 | -1.2% | 990 | 977 | -1.2% |
Commercial | 446 | 404 | 467 | 4.7% | 1,266 | 1,291 | 2.0% |
Others | 332 | 326 | 366 | 10.3% | 967 | 1,019 | 5.4% |
TOTAL | 1,992 | 1,793 | 2,088 | 4.8% | 5,668 | 576 | 1.6% |
Free Consumers | 96 | 82 | 78 | -18.1% | 279 | 249 | -10.8% |
TOTAL (Captive + Free) | 2,087 | 1,875 | 2,166 | 3.8% | 5,947 | 6,009 | 1.0% |
The volume of required energy by CELPA's system came to 3,073 GWh in 3Q15, up 0.9% over the same period in the previous year. The volume of energy sold during the quarter grew 4.8% over 3Q14.
ENERGY BALANCE (GWh) | 3Q14 | 2Q15 | 3Q15 | Var. | 9M14 | 9M15 | Var. |
Energy Sales (Captive + Own Consu | 2,000 | 1,801 | 2,096 | 4.8% | 5,693 | 5,785 | 1.6% |
Free Market | 96 | 82 | 78 | -18.1% | 279 | 249 | -10.8% |
Total Losses | 949 | 1,027 | 898 | -5.3% | 2,714 | 2,753 | 1.5% |
Required Energy | 3,045 | 2,910 | 3,073 | 0.9% | 8,685 | 8,786 | 1.2% |
Ow n Generation | 121 | 103 | 109 | -9.7% | 341 | 326 | -4.6% |
Energy Purchase (Contracts) | 2,923 | 2,807 | 2,963 | 1.4% | 8,344 | 8,461 | 1.4% |
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