Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____.
São Paulo, August 10, 2017 – CPFL Energia S.A. (BM&FBOVESPA: CPFE3 and NYSE: CPL), announces its 2Q17 results. The financial and operational information herein, unless otherwise indicated, is presented on a consolidated basis and is in accordance with the applicable legislation. Comparisons are relative to 2Q16, unless otherwise stated.
CPFL ENERGIA ANNOUNCES ITS 2Q17 RESULTS
Indicators (R$ Million) |
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Sales within the Concession Area - GWh |
16,108 |
13,903 |
15.9% |
32,816 |
28,050 |
17.0% |
Captive Market |
11,027 |
10,122 |
8.9% |
23,124 |
20,690 |
11.8% |
Free Client |
5,081 |
3,780 |
34.4% |
9,692 |
7,359 |
31.7% |
Gross Operating Revenue |
9,157 |
7,226 |
26.7% |
17,887 |
14,812 |
20.8% |
Net Operating Revenue |
5,963 |
4,481 |
33.1% |
11,501 |
8,817 |
30.4% |
EBITDA(1) |
1,027 |
966 |
6.3% |
2,223 |
2,001 |
11.1% |
Net Income |
123 |
240 |
-48.7% |
355 |
473 |
-24.8% |
Investments(2) |
698 |
510 |
36.9% |
1,379 |
959 |
43.8% |
|
|
|
|
|
|
|
Notes:
(1) EBITDA is calculated from the sum of net income, taxes, financial result, depreciation/amortization, as CVM Instruction no. 527/12. See the calculation in item 4.6 of this report;
(2) Includes investment related to the construction of transmission lines of CPFL Transmissão Morro Agudo and, according to the requirements of IFRIC 12, it was recorded as “Financial Asset of Concession” (in non-current assets). Does not include special obligations.
2Q17 HIGHLIGHTS
• Stable sales in the concession area (+0.5%);
• Reduction in the contracted demand: -1.2% Off Peak and -2.1% Peak (Jun-17 x Jun-16);
• Increases of 33.1% in Net Operating Revenue and of 6.3% in EBITDA;
• Investments of R$ 698 million;
• Pro forma net debt of R$ 13.6 billion and leverage of 3.28x pro forma Net Debt/EBITDA;
• RGE tariff adjustment, in Jun-17, with an average effect of +5.00% to be perceived by the consumers;
• Anticipation of commercial start-up of Pedra Cheirosa Wind Complex (48.3 MW), in Jun-17;
• Anticipation of commercial start-up of CPFL Transmissão Morro Agudo, in Jul-17;
• Current status of State Grid transaction: Tag Along Tender Offer in progress, according to the Material Fact of July 7;
• Public Consultation: improvement of the legal framework of the electric sector.
INDEX
1) MESSAGE FROM THE CEO | 4 |
2) ENERGY SALES | 5 |
2.1) Sales within the Distributors’ Concession Area | 5 |
2.1.1) Sales by Segment – Concession Area | 6 |
2.1.2) Sales to the Captive Market | 6 |
2.1.3) Free Clients | 7 |
2.2) Contracted Demand (% - high voltage) | 8 |
2.3) Generation Installed Capacity | 8 |
3) INFORMATION ON INTEREST IN COMPANIES AND CRITERIA OF FINANCIAL STATEMENTS | |
CONSOLIDATION | 9 |
3.1) Consolidation of CPFL Renováveis Financial Statements | 11 |
3.2) Consolidation of RGE Sul Financial Statements | 11 |
3.3) Economic-Financial Performance Presentation | 11 |
4) ECONOMIC-FINANCIAL PERFORMANCE | 12 |
4.1) Opening of economic-financial performance by business segment | 12 |
4.2) Reclassification of the Concession Financial Asset | 13 |
4.3) Sectoral Financial Assets and Liabilities | 13 |
4.4) Operating Revenue | 14 |
4.5) Cost of Electric Energy | 14 |
4.6) Operating Costs and Expenses | 16 |
4.7) EBITDA | 18 |
4.8) Financial Result | 19 |
4.9) Net Income | 21 |
5) DEBT | 22 |
5.1) Debt (IFRS) | 22 |
5.2) Debt in Financial Covenants Criteria | 23 |
5.2.1) Debt Amortization Schedule in Financial Covenants Criteria | 23 |
5.2.2) Indexation and Debt Cost in Financial Covenants Criteria | 24 |
5.3) Net Debt in Financial Covenants Criteria and Leverage | 25 |
6) INVESTMENTS | 26 |
6.1) Capital Expenditures | 26 |
6.2) Projected Capital Expenditures | 26 |
7) STOCK MARKETS | 27 |
7.1) Stock Performance | 27 |
7.2) Daily Average Volume | 28 |
8) CORPORATE GOVERNANCE | 28 |
9) SHAREHOLDERS STRUCTURE | 29 |
9.1) State Grid Transaction | 30 |
10) PERFORMANCE OF THE BUSINESS SEGMENTS | 31 |
10.1) Distribution Segment | 31 |
10.1.1) Economic-Financial Performance | 31 |
10.1.1.1) Reclassification of the Adjustments to the Concession´s Financial Asset | 31 |
10.1.1.2) Sectoral Financial Assets and Liabilities | 31 |
11.1.1.3) Operating Revenue | 32 |
10.1.1.4) Cost of Electric Power | 33 |
10.1.1.5) Operating Costs and Expenses | 35 |
10.1.1.6) EBITDA | 37 |
10.1.1.7) Financial Result | 37 |
Página 2 de 66
10.1.1.8) Net Income | 39 |
10.1.2) Tariff events | 40 |
10.1.3) Operating Performance of Distribution | 41 |
10.2) Commercialization and Services Segments | 43 |
10.2.1) Commercialization Segment | 43 |
10.2.2) Services Segment | 43 |
10.3) Conventional Generation Segment | 44 |
10.3.1) Economic-Financial Performance | 44 |
10.3.1.1) Operating Revenue | 44 |
10.3.1.2) Cost of Electric Power | 44 |
10.3.1.3) Operating Costs and Expenses | 45 |
10.3.1.4) Equity Income | 45 |
10.3.1.5) EBITDA | 47 |
10.3.1.6) Financial Result | 47 |
10.3.1.7) Net Income | 48 |
10.4) CPFL Renováveis | 48 |
10.4.1) Economic-Financial Performance | 48 |
10.4.1.1) Variations in the Income Statement of CPFL Renováveis | 48 |
10.4.1.2) Operating Revenue | 49 |
10.4.1.3) Cost of Electric Power | 49 |
10.4.1.4) Operating Costs and Expenses | 49 |
10.4.1.5) EBITDA | 50 |
10.4.1.6) Financial Result | 51 |
10.4.1.7) Net Income | 51 |
10.4.2) Status of Generation Projects – 100% Participation | 52 |
11) ATTACHMENTS | 53 |
11.1) Statement of Assets – CPFL Energia | 53 |
11.2) Statement of Liabilities – CPFL Energia | 54 |
11.3) Income Statement – CPFL Energia | 55 |
11.4) Cash Flow – CPFL Energia | 56 |
11.5) Income Statement – Conventional Generation Segment | 57 |
11.6) Income Statement – CPFL Renováveis | 58 |
11.7) Income Statement – Distribution Segment | 59 |
11.8) Income Statement – Distribution Segment (without RGE Sul) | 60 |
11.9) Income Statement – Distribution Segment | 61 |
11.10) Sales within the Concession Area by Distributor (In GWh) | 64 |
11.11) Sales to the Captive Market by Distributor (in GWh) | 65 |
11.12) Reconciliation of Net Debt/Ebitda Pro Forma ratio of CPFL Energia for purposes of financial | |
covenants calculation | 66 |
Página 3 de 66
1) MESSAGE FROM THE CEO
The CPFL group was very active in the first half of this year, undergoing corporate changes, promoting improvements in its operations and management, actively participating in the discussions on improving the regulatory framework of the electricity sector and following the unfolding of the political and economic scenarios of Brazil in its markets.
The disposal of the Company's control was completed at the beginning of the year and the transition that marks the entry of State Grid into CPFL Energia's capital stock continues to move forward seamlessly and constructively. We went through the phases of introducing teams and integrating people. Sharing of experiences is taking place in both Brazil and China, resulting in the identification of potential business opportunities.
In addition to the corporate movements, the Company presented numerous advances and achievements throughout the semester. We promote organizational reviews in order to simplify our processes and structure, aiming at greater focus on business. It is also worth highlighting the creation of Envo, the delivery of the Morro Agudo project (transmission), the inauguration of the Pedra Cheirosa wind farm, the heavy investment in the asset base of CPFL Paulista, RGE and RGE Sul distributors, the ABRADEE award won by CPFL Santa Cruz as the best domestic distributor in its category and by RGE as the best distributor in the Southern region, the integration of RGE Sul (acquired in 2H16), among others.
Second quarter results reflected such gains and market conditions in the period. The distribution segment registered a slight increase in energy sales in the second quarter of 2017 (+0.5%), disregarding the positive effect of the acquisition of RGE Sul. Residential class registered a decrease of 0.6%, reflecting the high comparison base of 2016, when April temperatures were at a record high, while industrial and commercial classes increased by 1.3% and dropped by 1.4%, respectively. The acquisition of RGE Sul, consolidated since November 2016, added 2,134 GWh to sales volumes in the second quarter of 2017.
The group’s operating cash generation, measured by EBITDA, reached R$1,027 million, an increase of 6% compared to 2Q16, mainly reflecting the contribution from the full consolidation of RGE Sul and improved results from the Generation and Renewables segments. Consolidated leverage of CPFL Energia, as measured by the ratio of net debt to EBITDA under the criteria to measure our financial covenants, stood at 3.28 at the end of the quarter, remaining stable in relation to previous quarters. It is also important to note that the continuous decline in interest rates throughout the year will be beneficial to the Company, which has around three-fourths of its debt pegged to the CDI interbank rate.
In this way, CPFL is better prepared and well positioned to overcome the challenges facing the country. We continue working on value initiatives for our shareholders and in our investment plan (around R$ 3.0 billion in 2017), with financial discipline, efforts and commitment of our teams and the trust of our new controlling shareholders.
Andre Dorf
CEO of CPFL Energia
Página 4 de 66
Sales within the Concession Area - GWh | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Captive Market |
11,027 |
10,122 |
8.9% |
13,124 |
20,690 |
11.8% |
Free Client |
5,081 |
3,780 |
34.4% |
9,692 |
7,359 |
31.7% |
Total |
16,108 |
13,903 |
15.9% |
32,816 |
28,050 |
17.0% |
Sales within the Concession Area (without RGE Sul) - GWh | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Captive Market |
9,442 |
10,122 |
-6.7% |
19,444 |
20,690 |
-6.0% |
Free Client |
4,532 |
3,780 |
19.9% |
8,689 |
7,359 |
18.1% |
Total |
13,974 |
13,903 |
0.5% |
28,133 |
28,050 |
0.3% |
Note: RGE Sul was consolidated in November 2016. For more information, see item 3.2 of this report.
In 2Q17, sales within the concession area, achieved by the distribution segment, totaled 16,108 GWh, an increase of 15.9%, mainly due to the acquisition of RGE Sul. Disregarding the effect of this acquisition, sales within the concession area would have totaled 13,974 GWh, an increase of 0.5%.
Sales to the captive market totaled 11,027 GWh in 2Q17, an increase of 8.9%, mainly due to the acquisition of RGE Sul; disregarding the effect of this acquisition, sales to the captive market would have totaled 9,442 GWh, a reduction of 6.7%, reflecting mainly the strong client migration to the free market. The quantity of energy, in GWh, which corresponds to the consumption of free clients in the concession area of group’s distributors, billed through the Tariff for the Usage of the Distribution System (TUSD), reached 5,081 GWh in 2Q17, an increase of 34.4%, mainly due to the acquisition of RGE Sul; disregarding the effect of this acquisition, the quantity of energy billed through TUSD would have reached 4,532 GWh, an increase of 19.9%.
Sales within the Concession Area - GWh | ||||||||
|
2Q17 |
2Q16 |
Var. |
Part. |
1H17 |
1H16 |
Var. |
Part. |
Residential |
4,590 |
4,003 |
14.7% |
28.5% |
9,718 |
8,268 |
17.5% |
29.6% |
Industrial |
6,146 |
5,317 |
15.6% |
38.2% |
11,809 |
10,464 |
12.9% |
36.0% |
Commercial |
2,681 |
2,416 |
11.0% |
16.6% |
5,625 |
5,001 |
12.5% |
17.1% |
Others |
2,692 |
2,167 |
24.2% |
16.7% |
5,664 |
4,317 |
31.2% |
17.3% |
Total |
16,108 |
13,903 |
15.9% |
100.0% |
32,816 |
28,050 |
17.0% |
100.0% |
Sales within the Concession Area (without RGE Sul) - GWh | ||||||||
|
2Q17 |
2Q16 |
Var. |
Part. |
1H17 |
1H16 |
Var. |
Part. |
Residential |
3,978 |
4,003 |
-0.6% |
28.5% |
8,307 |
8,268 |
0.5% |
29.5% |
Industrial |
5,387 |
5,317 |
1.3% |
38.5% |
10,421 |
10,464 |
-0.4% |
37.0% |
Commercial |
2,383 |
2,416 |
-1.4% |
17.1% |
4,950 |
5,001 |
-1.0% |
17.6% |
Others |
2,226 |
2,167 |
2.7% |
15.9% |
4,456 |
4,317 |
3.2% |
15.8% |
Total |
13,974 |
13,903 |
0.5% |
100.0% |
28,133 |
28,050 |
0.3% |
100.0% |
Note: The tables with sales within the concession area by distributor are attached to this report in item 11.10.
Página 5 de 66
Noteworthy in 2Q17, in the concession area:
· Residential and commercial classes (28.5% and 16.6% of total sales, respectively): increases of 14.7% and 11.0%, respectively, influenced by the acquisition of RGE Sul. Disregarding the effect of this acquisition, we would have reductions of 0.6% and 1.4%, respectively, reflecting the high temperature in 2Q16 (mainly in the month of April);
· Industrial class (38.2% of total sales): increase of 15.6%, influenced by the acquisition of RGE Sul. Disregarding the effect of this acquisition, we would have an increase of 1.3%, reflecting the low 2Q16 comparison base.
Note: in parentheses, the variation in percentage points from 2Q16 to 2Q17.
Sales to the Captive Market - GWh | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Residential |
4,590 |
4,003 |
14.7% |
9,718 |
8,268 |
17.5% |
Industrial |
1,676 |
1,828 |
-8.3% |
3,307 |
3,677 |
-10.1% |
Commercial |
2,153 |
2,177 |
-1.1% |
4,595 |
4,524 |
1.6% |
Others |
2,608 |
2,115 |
23.3% |
5,503 |
4,221 |
30.4% |
Total |
11,027 |
10,122 |
8.9% |
23,124 |
20,690 |
11.8% |
Página 6 de 66
Sales to the Captive Market (without RGE Sul) - GWh | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Residential |
3,978 |
4,003 |
-0.6% |
8,307 |
8,268 |
0.5% |
Industrial |
1,428 |
1,828 |
-21.9% |
2,845 |
3,677 |
-22.6% |
Commercial |
1,893 |
2,177 |
-13.0% |
3,996 |
4,524 |
-11.7% |
Others |
2,144 |
2,115 |
1.4% |
4,297 |
4,221 |
1.8% |
Total |
9,442 |
10,122 |
-6.7% |
19,444 |
20,690 |
-6.0% |
Note: The tables with captive market sales by distributor are attached to this report in item 11.11.
The increase of 8.9% (905 GWh) in sales to the captive market, from 10,122 GWh in 2Q16 to 11,027 GWh in 2Q17, was influenced by the acquisition of RGE Sul. Disregarding the effect of this acquisition, the sales to the captive market would have totaled 9,442 GWh in 2Q17, representing a reduction of 6.7% (680 GWh), mainly due to the performance of the industrial and commercial classes, reflecting mainly the strong client migration to the free market, as explained before.
Free Client - GWh | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Industrial |
4,470 |
3,489 |
28.1% |
8,502 |
6,786 |
25.3% |
Commercial |
527 |
239 |
120.8% |
1,030 |
477 |
115.8% |
Others |
84 |
52 |
59.8% |
161 |
96 |
67.7% |
Total |
5,081 |
3,780 |
34.4% |
9,692 |
7,359 |
31.7% |
Free Client (without RGE Sul) - GWh | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Industrial |
3,959 |
3,489 |
13.5% |
7,576 |
6,786 |
11.6% |
Commercial |
490 |
239 |
105.1% |
954 |
477 |
99.9% |
Others |
83 |
52 |
58.2% |
159 |
96 |
65.9% |
Total |
4,532 |
3,780 |
19.9% |
8,689 |
7,359 |
18.1% |
Free Client by Distributor - GWh | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
CPFL Paulista |
2,353 |
1,998 |
17.7% |
4,529 |
3,843 |
17.9% |
CPFL Piratininga |
1,461 |
1,201 |
21.6% |
2,796 |
2,420 |
15.5% |
RGE |
595 |
499 |
19.3% |
1,129 |
931 |
21.2% |
CPFL Santa Cruz |
30 |
13 |
129.6% |
58 |
25 |
130.2% |
CPFL Jaguari |
45 |
25 |
82.9% |
88 |
52 |
69.4% |
CPFL Mococa |
10 |
7 |
39.7% |
17 |
14 |
15.7% |
CPFL Leste Paulista |
15 |
14 |
6.8% |
29 |
28 |
5.7% |
CPFL Sul Paulista |
23 |
23 |
2.3% |
44 |
45 |
-4.3% |
RGE Sul (*) |
549 |
- |
- |
1,003 |
- |
- |
Total |
5,081 |
3,780 |
34.4% |
9,692 |
7,359 |
31.7% |
Note: (*) Considers the quantity of energy billed through the TUSD from 2Q17.
Página 7 de 66
Contracted Demand Evolution | % compared to the same month of the previous year
2.3) Generation Installed Capacity
In 2Q17, the installed capacity of generation of CPFL Energia, considering the proportional stake in each project, reached 3,283 MW, representing an expansion of 3.6% compared to 2Q16. This increase is due to the commercial start-up of Campo do Ventos, São Benedito and Pedra Cheirosa Wind Complexes.
Generation Installed Capacity | MW
Note: Take into account CPFL Energia’s 51.61% stake in CPFL Renováveis.
Página 8 de 66
The interests directly or indirectly held by CPFL Energia in its subsidiaries and jointly-owned entities are described below. Except for: (i) the jointly-owned entities ENERCAN, BAESA, Foz do Chapecó and EPASA, that, as from January 1, 2013 are no longer proportionally consolidated in the Company’s financial statements, being their assets, liabilities and results accounted for using the equity method of accounting, and (ii) the investment in Investco S.A. recorded at cost by the subsidiary Paulista Lajeado, the other units are fully consolidated.
As of June 30, 2017 and 2016, the participation of non-controlling interests stated in the consolidated statements refers to the third-party interests in the subsidiaries CERAN, Paulista Lajeado and CPFL Renováveis. Since November 1st, 2016 CPFL Energia is considering the full consolidation of RGE Sul.
Energy distribution |
Company Type |
Equity Interest |
Location (State) |
Number of municipalities |
Approximate number of consumers |
Concession term |
End of the concession |
Companhia Paulista de Força e Luz ("CPFL Paulista") |
Publicly-quoted corporation |
Direct |
Interior of São Paulo |
234 |
4,337 |
30 years |
November 2027 |
Companhia Piratininga de Força e Luz ("CPFL Piratininga") |
Publicly-quoted corporation |
Direct |
Interior and coast of São Paulo |
27 |
1,706 |
30 years |
October 2028 |
Rio Grande Energia S.A. ("RGE") |
Publicly-quoted corporation |
Direct |
Interior of Rio Grande do Sul |
255 |
1,471 |
30 years |
November 2027 |
RGE Sul Distribuidora de Energia S.A. ("RGE Sul") |
Publicly-quoted corporation |
Indirect |
Interior of Rio Grande do Sul |
118 |
1,328 |
30 years |
November 2027 |
Companhia Luz e Força Santa Cruz ("CPFL Santa Cruz") |
Private corporation |
Direct |
Interior of São Paulo and Paraná |
27 |
211 |
30 years |
July 2045 |
Companhia Leste Paulista de Energia ("CPFL Leste Paulista") |
Private corporation |
Direct |
Interior of São Paulo |
7 |
58 |
30 years |
July 2045 |
Companhia Jaguari de Energia ("CPFL Jaguari") |
Private corporation |
Direct |
Interior of São Paulo |
2 |
41 |
30 years |
July 2045 |
Companhia Sul Paulista de Energia ("CPFL Sul Paulista") |
Private corporation |
Direct |
Interior of São Paulo |
5 |
86 |
30 years |
July 2045 |
Companhia Luz e Força de Mococa ("CPFL Mococa") |
Private corporation |
Direct |
Interior of São Paulo and Minas Gerais |
4 |
47 |
30 years |
July 2045 |
Energy generation (conventional and renewable sources) |
Company Type |
Equity Interest |
Location (State) |
Number of plants / type of energy |
Installed capacity | |
Total |
CPFL participation | |||||
CPFL Geração de Energia S.A. ("CPFL Geração") |
Publicly-quoted corporation |
Direct |
São Paulo and Goiás |
1 Hydroelectric, 3 SHPPs (a) |
1,295 |
688 |
CERAN - Companhia Energética Rio das Antas ("CERAN") |
Private corporation |
Indirect |
Rio Grande do Sul |
3 Hydroelectric |
360 |
234 |
Foz do Chapecó Energia S.A. ("Foz do Chapecó") (b) |
Private corporation |
Indirect |
Santa Catarina and |
1 Hydroelectric |
855 |
436 |
Campos Novos Energia S.A. ("ENERCAN") |
Private corporation |
Indirect |
Santa Catarina |
1 Hydroelectric |
880 |
429 |
BAESA - Energética Barra Grande S.A. ("BAESA") |
Publicly-quoted corporation |
Indirect |
Santa Catarina and |
1 Hydroelectric |
690 |
173 |
Centrais Elétricas da Paraíba S.A. ("EPASA") |
Private corporation |
Indirect |
Paraíba |
2 Thermoelectric |
342 |
182 |
Paulista Lajeado Energia S.A. ("Paulista Lajeado") |
Private corporation |
Indirect |
Tocantins |
1 Hydroelectric |
903 |
63 |
CPFL Energias Renováveis S.A. ("CPFL Renováveis") |
Publicly-quoted corporation |
Indirect |
See chapter 10.4.2 |
See chapter 10.4.2 |
See chapter 10.4.2 |
See chapter 10.4.2 |
CPFL Centrais Geradoras Ltda. ("CPFL Centrais Geradoras") |
Limited company |
Direct |
São Paulo |
6 MHPPs (d) |
4 |
4 |
Notes:
(a) SHPP – Small Hydroelectric Power Plant;
(b) The joint venture Chapecoense fully consolidates the interim financial statements of its direct subsidiary, Foz de Chapecó;
(c) Paulista Lajeado has a 7% participation in the installed power of Investco S.A. (5.94% share of its capital);
(d) MHPP – Micro Hydroelectric Power Plant;
Página 9 de 66
Energy commercialization |
Company Type |
Core activity |
Equity Interest |
CPFL Comercialização Brasil S.A. ("CPFL Brasil") |
Private corporation |
Energy commercialization |
Direct |
Clion Assessoria e Comercialização de Energia Elétrica Ltda. ("CPFL Meridional") |
Limited company |
Commercialization and provision of energy services |
Indirect |
CPFL Comercialização Cone Sul S.A. ("CPFL Cone Sul") |
Private corporation |
Energy commercialization |
Indirect |
CPFL Planalto Ltda. ("CPFL Planalto") |
Limited company |
Energy commercialization |
Direct |
CPFL Brasil Varejista S.A. ("CPFL Brasil Varejista") |
Private corporation |
Energy commercialization |
Indirect |
Services |
Company Type |
Core activity |
Equity Interest |
CPFL Serviços, Equipamentos, Industria e Comércio S.A. ("CPFL Serviços") |
Private corporation |
Manufacturing, commercialization, rental and maintenance of electro-mechanical equipment and service provision |
Direct |
NECT Serviços Administrativos Ltda. ("Nect") |
Limited company |
Provision of administrative services |
Direct |
CPFL Atende Centro de Contatos e Atendimento Ltda. ("CPFL Atende") |
Limited company |
Provision of telephone answering services |
Direct |
CPFL Total Serviços Administrativos Ltda. ("CPFL Total") |
Limited company |
Billing and collection services |
Direct |
CPFL Eficiência Energética S.A. ("CPFL ESCO") |
Private corporation |
Management in Energy Efficiency |
Direct |
TI Nect Serviços de Informática Ltda. ("Authi") (e) |
Limited company |
IT services |
Direct |
CPFL GD S.A. ("CPFL GD") (f) |
Private corporation |
Electric energy generation services |
Indirect |
(e) In September, 2014 the direct subsidiary TI Nect Serviços de Informática Ltda. (“Authi”), was set up with the objective of providing informatics, information technology maintenance, system update, program development and customization and computer and peripheral equipment maintenance services;
(f) The main objective of CPFL GD S.A., incorporated in August 2015 and fully controlled by CPFL Eficiência Energética S.A., is the provision of general consultancy services in the electric energy market and commercialization of assets related to the electric energy generation plants;
Página 10 de 66
Others |
Company Type |
Core activity |
Equity Interest |
CPFL Jaguariúna Participações Ltda. ("CPFL Jaguariúna") |
Limited company |
Venture capital company |
Direct |
CPFL Jaguari de Geração de Energia Ltda. ("Jaguari Geração") |
Limited company |
Venture capital company |
Direct |
Chapecoense Geração S.A. ("Chapecoense") |
Private corporation |
Venture capital company |
Indirect |
Sul Geradora Participações S.A. ("Sul Geradora") |
Private corporation |
Venture capital company |
Indirect |
CPFL Telecom S.A. ("CPFL Telecom") |
Private corporation |
Telecommunication services |
Direct |
CPFL Transmissão Piracicaba S.A. ("CPFL Transmissão Piracicaba") |
Private corporation |
Electric energy transmission services |
Indirect |
CPFL Transmissão Morro Agudo S.A. ("CPFL Transmissão Morro Agudo") (g) |
Private corporation |
Electric energy transmission services |
Indirect |
(g) The incorporation of CPFL Transmissora Morro Agudo S.A., subsidiary of CPFL Geração, was approved in January 2015, with the objective of building and operating electric energy transmission concessions, including construction, implementation, operation and maintenance of transmission facilities of the basic network of the Interlinked National System (“SIN”).
3.1) Consolidation of CPFL Renováveis Financial Statements
On June 30, 2017, CPFL Energia indirectly held 51.61% of CPFL Renováveis, through its subsidiary CPFL Geração.
CPFL Renováveis has been fully consolidated (100%, line by line), in CPFL Energia’s financial statements since August 1, 2011, and the interest held by the non-controlling shareholders has been mentioned bellow the net income line (in the Financial Statements), as “Non-Controlling Shareholders’ Interest”, and in the Shareholders Equity (in the Balance Sheet) in the line with the same name.
3.2) Consolidation of RGE Sul Financial Statements
On June 30, 2017, CPFL Energia indirectly held 100% of RGE Sul, through its subsidiary CPFL Jaguariúna. RGE Sul has been fully consolidated (100%, line by line), in CPFL Energia’s financial statements since November 1st, 2016.
In the analysis presented in this report, we consider the impact of the inclusion of RGE Sul as an isolated item.
3.3) Economic-Financial Performance Presentation
In accordance with U.S. SEC (Securities and Exchange Commission) guidelines and pursuant to items 100(a) and (b) of Regulation G, with the disclosure of 4Q16/2016 results, in order to avoid the disclosure of non-GAAP measures, we no longer disclose the economic-financial performance considering the proportional consolidation of the generation projects and the adjustment of the numbers for non-recurring items, focusing the disclosure in the IFRS criterion. Only in chapter 5, of Indebtedness, we continue presenting the information in the financial covenants criterion, considering that the proper reconciliation with the numbers in the IFRS criterion are presented in item 11.12 of this report.
Página 11 de 66
Consolidated Income Statement - CPFL ENERGIA (R$ Million) | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Gross Operating Revenue |
9,157 |
7,226 |
26.7% |
17,887 |
14,812 |
20.8% |
Net Operating Revenue |
5,963 |
4,481 |
33.1% |
11,501 |
8,817 |
30.4% |
Cost of Electric Power |
(3,739) |
(2,665) |
40.3% |
(6,959) |
(5,193) |
34.0% |
Operating Costs & Expenses |
(1,661) |
(1,231) |
35.0% |
(3,240) |
(2,376) |
36.3% |
EBIT |
563 |
585 |
-3.9% |
1,302 |
1,249 |
4.3% |
EBITDA1 |
1,027 |
966 |
6.3% |
2,223 |
2,001 |
11.1% |
Financial Income (Expense) |
(418) |
(264) |
58.4% |
(854) |
(583) |
46.5% |
Income Before Taxes |
228 |
390 |
-41.6% |
611 |
798 |
-23.4% |
Net Income |
123 |
240 |
-48.7% |
355 |
473 |
-24.8% |
Note: (1) EBITDA is calculated from the sum of net income, taxes, financial result and depreciation/amortization, according to CVM Instruction no. 527/12. See the calculation in item 4.6 of this report.
Income Statement by business segment - CPFL Energia (R$ million) | ||||||||||||||||
|
|
Distribution |
|
Conventional Generation |
|
Renewable Generation |
|
Commerciali-zation |
|
Services |
|
Others |
|
Eliminations |
|
Total |
2Q17 | ||||||||||||||||
Net operating revenue |
4,741 |
280 |
431 |
763 |
120 |
11 |
(384) |
5,963 | ||||||||
Operating costs and expenses |
|
(4,289) |
|
(59) |
|
(208) |
|
(729) |
|
(97) |
|
(21) |
|
384 |
|
(5,018) |
Depreciation e amortization |
(191) |
(31) |
(153) |
(1) |
(5) |
(1) |
- |
(381) | ||||||||
Income from electric energy service |
|
261 |
|
191 |
|
70 |
|
34 |
|
18 |
|
(11) |
|
- |
|
563 |
Equity accounting |
- |
83 |
- |
- |
- |
- |
- |
83 | ||||||||
EBITDA |
|
452 |
|
304 |
|
223 |
|
35 |
|
22 |
|
(10) |
|
- |
|
1,027 |
Financial result |
(166) |
(102) |
(133) |
(8) |
0 |
(11) |
- |
(418) | ||||||||
Income (loss) before taxes |
96 |
171 |
(62) |
26 |
18 |
(22) |
- |
228 | ||||||||
Income tax and social contribution |
(53) |
(29) |
(14) |
(8) |
(4) |
3 |
- |
(105) | ||||||||
Net income (loss) |
|
43 |
|
142 |
|
(76) |
|
18 |
|
14 |
|
(19) |
|
- |
|
123 |
2Q16 (Resubmitted) | ||||||||||||||||
Net operating revenue |
3,568 |
247 |
365 |
486 |
94 |
11 |
(290) |
4,481 | ||||||||
Operating costs and expenses |
|
(3,117) |
|
(49) |
|
(154) |
|
(454) |
|
(75) |
|
(24) |
|
290 |
|
(3,583) |
Depreciation e amortization |
(141) |
(31) |
(135) |
(1) |
(3) |
(1) |
- |
(312) | ||||||||
Income from electric energy service |
|
310 |
|
166 |
|
76 |
|
31 |
|
16 |
|
(14) |
|
- |
|
585 |
Equity accounting |
- |
69 |
- |
- |
- |
- |
- |
69 | ||||||||
EBITDA |
|
451 |
|
266 |
|
211 |
|
32 |
|
19 |
|
(13) |
|
- |
|
966 |
Financial result |
(65) |
(87) |
(128) |
6 |
1 |
10 |
- |
(264) | ||||||||
Income (loss) before taxes |
245 |
149 |
(52) |
36 |
17 |
(4) |
- |
390 | ||||||||
Income tax and social contribution |
(92) |
(27) |
(10) |
(10) |
(3) |
(8) |
- |
(150) | ||||||||
Net income (loss) |
|
154 |
|
121 |
|
(62) |
|
26 |
|
13 |
|
(12) |
|
- |
|
240 |
Variation | ||||||||||||||||
Net operating revenue |
32.9% |
13.4% |
18.0% |
57.2% |
26.7% |
2.8% |
32.3% |
33.1% | ||||||||
Operating costs and expenses |
|
37.6% |
|
19.1% |
|
34.8% |
|
60.5% |
|
29.3% |
|
-12.1% |
|
32.3% |
|
40.1% |
Depreciation e amortization |
35.9% |
-1.6% |
13.3% |
-17.8% |
44.4% |
8.2% |
- |
22.2% | ||||||||
Income from electric energy service |
|
-15.7% |
|
14.5% |
|
-7.8% |
|
10.6% |
|
10.6% |
|
-22.1% |
|
- |
|
-3.9% |
Equity accounting |
- |
20.9% |
- |
- |
- |
- |
- |
20.9% | ||||||||
EBITDA |
|
0.3% |
|
14.3% |
|
5.7% |
|
9.8% |
|
16.5% |
|
-24.2% |
|
- |
|
6.3% |
Financial result |
154.3% |
18.2% |
3.5% |
- |
-20.7% |
- |
- |
58.4% | ||||||||
Income (loss) before taxes |
-60.9% |
15.3% |
19.9% |
-27.4% |
9.4% |
389.8% |
- |
-41.6% | ||||||||
Income tax and social contribution |
-42.6% |
6.2% |
43.9% |
-21.9% |
8.6% |
- |
- |
-30.3% | ||||||||
Net income (loss) |
|
-71.8% |
|
17.4% |
|
23.7% |
|
-29.6% |
|
9.7% |
|
56.8% |
|
- |
|
-48.7% |
Note: an analysis of the economic-financial performance by business segment is presented in chapter 10.
Página 12 de 66
Income Statement by business segment - CPFL Energia (R$ million) | ||||||||||||||||
|
|
Distribution |
|
Conventional Generation |
|
Renewable Generation |
|
Commerciali-zation |
|
Services |
|
Others |
|
Eliminations |
|
Total |
1H17 | ||||||||||||||||
Net operating revenue |
9,203 |
537 |
819 |
1,384 |
223 |
54 |
(719) |
11,501 | ||||||||
Operating costs and expenses |
|
(8,125) |
|
(106) |
|
(359) |
|
(1,309) |
|
(183) |
|
(79) |
|
719 |
|
(9,441) |
Depreciation e amortization |
(380) |
(61) |
(304) |
(2) |
(9) |
(2) |
- |
(758) | ||||||||
Income from electric energy service |
|
699 |
|
370 |
|
156 |
|
74 |
|
31 |
|
(26) |
|
- |
|
1,302 |
Equity accounting |
- |
163 |
- |
- |
- |
- |
- |
163 | ||||||||
EBITDA |
|
1,078 |
|
594 |
|
459 |
|
75 |
|
40 |
|
(24) |
|
- |
|
2,223 |
Financial result |
(347) |
(202) |
(256) |
(21) |
2 |
(30) |
- |
(854) | ||||||||
Income (loss) before taxes |
351 |
330 |
(100) |
53 |
33 |
(56) |
- |
611 | ||||||||
Income tax and social contribution |
(158) |
(56) |
(26) |
(18) |
(8) |
10 |
- |
(255) | ||||||||
Net income (loss) |
|
193 |
|
274 |
|
(126) |
|
35 |
|
25 |
|
(46) |
|
- |
|
355 |
1H16 (Resubmitted) | ||||||||||||||||
Net operating revenue |
7,095 |
484 |
656 |
917 |
180 |
19 |
(533) |
8,817 | ||||||||
Operating costs and expenses |
|
(6,053) |
|
(101) |
|
(278) |
|
(869) |
|
(143) |
|
(39) |
|
533 |
|
(6,949) |
Depreciation e amortization |
(280) |
(62) |
(268) |
(2) |
(6) |
(2) |
- |
(620) | ||||||||
Income from electric energy service |
|
762 |
|
321 |
|
110 |
|
47 |
|
30 |
|
(22) |
|
- |
|
1,249 |
Equity accounting |
- |
132 |
- |
- |
- |
- |
- |
132 | ||||||||
EBITDA |
|
1,042 |
|
515 |
|
379 |
|
48 |
|
37 |
|
(20) |
|
- |
|
2,001 |
Financial result |
(156) |
(170) |
(262) |
9 |
1 |
(5) |
- |
(583) | ||||||||
Income (loss) before taxes |
606 |
283 |
(152) |
56 |
32 |
(27) |
- |
798 | ||||||||
Income tax and social contribution |
(230) |
(52) |
(17) |
(16) |
(8) |
(1) |
- |
(325) | ||||||||
Net income (loss) |
|
376 |
|
231 |
|
(169) |
|
40 |
|
24 |
|
(28) |
|
- |
|
473 |
Variation | ||||||||||||||||
Net operating revenue |
29.7% |
11.0% |
24.7% |
50.9% |
24.0% |
182.8% |
34.8% |
30.4% | ||||||||
Operating costs and expenses |
|
34.2% |
|
5.2% |
|
29.4% |
|
50.6% |
|
27.9% |
|
99.8% |
|
34.8% |
|
35.9% |
Depreciation e amortization |
35.8% |
-1.0% |
13.2% |
-12.0% |
44.9% |
10.7% |
- |
22.2% | ||||||||
Income from electric energy service |
|
-8.3% |
|
15.2% |
|
41.0% |
|
58.3% |
|
1.5% |
|
20.4% |
|
- |
|
4.3% |
Equity accounting |
- |
23.1% |
- |
- |
- |
- |
- |
23.1% | ||||||||
EBITDA |
|
3.5% |
|
15.3% |
|
21.3% |
|
55.5% |
|
9.0% |
|
21.2% |
|
- |
|
11.1% |
Financial result |
122.4% |
18.8% |
-2.3% |
- |
32.4% |
487.3% |
- |
46.5% | ||||||||
Income (loss) before taxes |
-42.0% |
16.7% |
-33.8% |
-4.9% |
2.9% |
108.4% |
- |
-23.4% | ||||||||
Income tax and social contribution |
-31.5% |
8.2% |
54.3% |
10.2% |
-7.4% |
- |
- |
-21.4% | ||||||||
Net income (loss) |
|
-48.5% |
|
18.7% |
|
-25.0% |
|
-11.1% |
|
6.5% |
|
61.6% |
|
- |
|
-24.8% |
Note: an analysis of the economic-financial performance by business segment is presented in chapter 10.
The Company and its electric energy distribution subsidiaries, aiming at the better presentation of their operational and financial performance, concluded that the adjustment of expectation of the cash flow of the indemnable financial asset of the concession of each distributor, originally presented under financial revenue item, in financial result, should be more adequately classified in the operating revenues group, together with other revenues related to its activity. This allocation reflects more accurately the business model of electric energy distribution and provides a better presentation regarding its performance.
Pursuant to CPC 23 / IAS 8 - Accounting Policies, Changes in Estimates and Error Rectification, the CPFL Energia and its Subsidiaries changed their accounting policy previously adopted by an accounting policy that better reflects the performance of the Company's and its subsidiaries' businesses and, therefore, reclassified retrospectively into their income statements for 2Q16.
In 2Q17, it was accounted the total sectoral financial assets in the amount of R$ 369 million, compared to the total sectoral financial liabilities in the amount of R$ 462 million in 2Q16, a variation of R$ 831 million.
On June 30, 2017, the balance of these sectoral financial assets and liabilities was negative in R$ 1,254 million, compared to a negative balance of R$ 1,525 million on March 31, 2017 and a positive balance of R$ 130 million on June 30, 2016.
As established by the applicable regulation, any sectoral financial assets or liabilities shall be included in the tariffs of the distributors in their respective annual tariff events.
Página 13 de 66
In 2Q17, gross operating revenue reached R$ 9,157 million, representing an increase of 26.7% (R$ 1,930 million). Deductions from the gross operating revenue was of R$ 3,194 million in 2Q17, representing an increase of 16.3% (R$ 448 million). Net operating revenue reached R$ 5,963 million in 2Q17, registering an increase of 33.1% (R$ 1,482 million).
The main factors that affected the net operating revenue were:
· Increase of revenues in the Distribution segment, in the amount of R$ 1,173 million, mainly due to the acquisition of RGE Sul (for more details, see item 10.1.1.2);
· Increase of revenues in the Commercialization segment, in the amount of R$ 278 million;
· Increase of revenues in CPFL Renováveis, in the amount of R$ 66 million;
· Increase of revenues in the Conventional Generation segment, in the amount of R$ 33 million;
· Increase of revenues in the Services segment, in the amount of R$ 25 million;
Partially offset by:
· Reduction of R$ 94 million, due to the eliminations.
Cost of Electric Energy (R$ Million) | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Cost of Electric Power Purchased for Resale |
||||||
Energy from Itaipu Binacional |
610 |
504 |
21.0% |
1,168 |
1,051 |
11.2% |
Energy Purchased in the Spot Market/PROINFA |
110 |
82 |
34.1% |
202 |
89 |
125.6% |
Energy Purchased through Auction in the Regulated Environment and Bilateral Contracts |
3,153 |
1,960 |
60.9% |
5,825 |
3,791 |
53.6% |
PIS and COFINS Tax Credit |
(353) |
(232) |
51.9% |
(656) |
(452) |
45.2% |
Total |
3,521 |
2,314 |
52.2% |
6,539 |
4,480 |
46.0% |
|
|
|
|
|||
Charges for the Use of the Transmission and Distribution System |
|
|
|
|
||
Basic Network Charges |
248 |
202 |
22.8% |
496 |
404 |
22.9% |
Itaipu Transmission Charges |
16 |
13 |
21.1% |
31 |
25 |
20.2% |
Connection Charges |
30 |
19 |
57.2% |
60 |
35 |
69.2% |
Charges for the Use of the Distribution System |
11 |
10 |
12.6% |
22 |
19 |
16.7% |
System Service Usage Charges - ESS |
(66) |
70 |
- |
(149) |
197 |
- |
Reserve Energy Charges - EER |
(0) |
71 |
- |
(0) |
101 |
- |
PIS and COFINS Tax Credit |
(21) |
(34) |
-38.3% |
(40) |
(69) |
-41.9% |
Total |
218 |
351 |
-37.9% |
420 |
713 |
-41.1% |
|
|
|
|
|||
Cost of Electric Energy |
3,739 |
2,665 |
40.3% |
6,959 |
5,193 |
34.0% |
Página 14 de 66
Cost of Electric Energy (without RGE Sul) (R$ Million) | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Cost of Electric Power Purchased for Resale |
||||||
Energy from Itaipu Binacional |
509 |
504 |
1.0% |
973 |
1,051 |
-7.4% |
Energy Purchased in the Spot Market/PROINFA |
88 |
82 |
7.3% |
158 |
89 |
76.7% |
Energy Purchased through Auction in the Regulated Environment and Bilateral Contracts |
2,768 |
1,960 |
41.2% |
5,096 |
3,791 |
34.4% |
PIS and COFINS Tax Credit |
(307) |
(232) |
31.9% |
(568) |
(452) |
25.8% |
Total |
3,059 |
2,314 |
32.2% |
5,658 |
4,480 |
26.3% |
|
|
|
|
|||
Charges for the Use of the Transmission and Distribution System |
|
|
|
|
||
Basic Network Charges |
207 |
202 |
2.1% |
412 |
404 |
2.1% |
Itaipu Transmission Charges |
13 |
13 |
0.8% |
25 |
25 |
0.1% |
Connection Charges |
21 |
19 |
8.8% |
41 |
35 |
15.8% |
Charges for the Use of the Distribution System |
11 |
10 |
12.6% |
22 |
19 |
16.7% |
System Service Usage Charges - ESS |
(58) |
70 |
- |
(130) |
197 |
- |
Reserve Energy Charges - EER |
(0) |
71 |
- |
(0) |
101 |
- |
PIS and COFINS Tax Credit |
(16) |
(34) |
-53.9% |
(30) |
(69) |
-56.7% |
Total |
177 |
351 |
-49.6% |
341 |
713 |
-52.1% |
|
|
|
|
|||
Cost of Electric Energy |
3,236 |
2,665 |
21.4% |
5,999 |
5,193 |
15.5% |
In the analysis presented in this report, we consider the impact of the inclusion of RGE Sul as an isolated item.
In 2Q17, the cost of electric energy, comprising the purchase of electricity for resale and charges for the use of the distribution and transmission system, amounted to R$ 3,739 million, registering an increase of 40.3% (R$ 1,074 million).
The factors that explain these variations follow below:
· The cost of electric power purchased for resale reached R$ 3,521 million in 2Q17, an increase of 52.2% (R$ 1.207 million), due to the following factors:
(i) Impact of the inclusion of RGE Sul in our consolidation in 2Q17. The total cost of electric power purchased for resale in relation to RGE Sul (which was not included in our consolidation in 2Q16) totaled R$ 462 million for 2Q17;
(ii) Increase of 41.2% (R$ 808 million) in the cost of energy purchased through auction in the regulated environment and bilateral contracts, due to the increases of 18.9% in the average purchase price (R$ 196.27/MWh in 2Q17 vs. R$ 165.11/MWh in 2Q16) and of 18.8% (2,233 GWh) in the volume of purchased energy;
(iii) Increase of 7.3% in the amount of energy purchased in the spot market/PROINFA cost (R$ 6 million);
(iv) Increase of 1.0% (R$ 5 million) in the cost of energy from Itaipu, due to the increase of 4.9% in the average purchase price (R$ 208.98/MWh in 2Q17 vs. R$ 199.16/MWh in 2Q16), partially offset by the reduction of 3.7% (94 GWh) in the volume of purchased energy;
Partially offset by:
(v) Increase of 31.9% (R$ 74 million) in PIS and COFINS tax credits (cost reducer), generated from the energy purchase.
· Charges for the use of the transmission and distribution system reached R$ 218 million in 2Q17, a reduction of 37.9% (R$ 133 million), due to the following factors:
(i) Variation of R$ 129 million in the System Service Usage Charges – ESS, from an expense of R$ 70 million in 2Q16 to a revenue of R$ 58 million in 2Q17;
(ii) Variation of R$ 71 million in Reserve Energy Charges – EER, since there was no registration of this charge in 2Q17 and there was a revenue of financial resources derived from the Reserve Energy Account (CONER) in the amount of R$ 71 million in 2Q16;
Página 15 de 66
Partially offset by:
(iii) Impact of the inclusion of RGE Sul in our consolidation in 2Q17. The total charges for the use of the transmission and distribution system in relation to RGE Sul (which was not included in our consolidation in 2Q16) totaled R$ 41 million for 2Q17;
(iv) Reduction of 53.9% (R$ 18 million) in PIS and COFINS tax credits (cost reducer), generated from the charges;
(v) Increase of 2.1% (R$ 4 million) in the basic network charges;
(vi) Increase of R$ 3 million in Itaipu transmission charges and charges for connection and usage of the distribution system.
In the analysis presented in this report, we consider the impact of the inclusion of RGE Sul as an isolated item.
Operating costs and expenses reached R$ 1,661 million in 2Q17, compared to R$ 1,231 million in 2Q16, an increase of 35.0% (R$ 430 million), due to the following factors:
PMSO
The PMSO item reached R$ 786 million in 2Q17, compared to R$ 630 million in 2Q16, an increase of 24.7% (R$ 156 million).
Página 16 de 66
Reported PMSO (R$ million) | ||||||||
|
2Q17 |
2Q16 |
Variation |
1H17 |
1H16 |
Variação | ||
|
R$ MM |
% |
R$ MM |
% | ||||
Reported PMSO |
|
|
|
|
|
|
|
|
Personnel |
(337) |
(267) |
(69) |
26.0% |
(669) |
(512) |
(157) |
30.7% |
Material |
(57) |
(39) |
(18) |
46.3% |
(113) |
(79) |
(34) |
42.4% |
Outsourced Services |
(189) |
(158) |
(32) |
20.0% |
(374) |
(307) |
(68) |
22.0% |
Other Operating Costs/Expenses |
(203) |
(166) |
(37) |
22.0% |
(389) |
(339) |
(50) |
14.7% |
Allowance for doubtful accounts |
(39) |
(50) |
10 |
-21.0% |
(86) |
(96) |
10 |
-10.2% |
Legal, judicial and indemnities expenses |
(59) |
(50) |
(9) |
18.0% |
(114) |
(109) |
(5) |
4.3% |
Others |
(105) |
(67) |
(38) |
57.1% |
(189) |
(134) |
(55) |
41.0% |
Total Reported PMSO |
(786) |
(630) |
(156) |
24.7% |
(1,545) |
(1,237) |
(308) |
24.9% |
|
|
|
|
|
|
|
|
|
PMSO RGE Sul |
|
|
|
|
|
|
|
|
Personnel |
(40) |
|
|
|
(81) |
|
|
|
Material |
(7) |
|
|
|
(16) |
|
|
|
Outsourced Services |
(31) |
|
|
|
(62) |
|
|
|
Other Operating Costs/Expenses |
(33) |
|
|
|
(56) |
|
|
|
Allowance for doubtful accounts |
(6) |
|
|
|
(15) |
|
|
|
Legal, judicial and indemnities expenses |
(14) |
|
|
|
(23) |
|
|
|
Others |
(12) |
|
|
|
(18) |
|
|
|
Total PMSO RGE Sul |
(111) |
|
|
|
(216) |
|
|
|
|
|
|
|
|
|
|
|
|
PMSO (-) RGE Sul |
|
|
|
|
|
|
|
|
Personnel |
(297) |
(267) |
(30) |
11.1% |
(588) |
(512) |
(76) |
14.8% |
Material |
(50) |
(39) |
(11) |
28.3% |
(97) |
(79) |
(18) |
22.4% |
Outsourced Services |
(158) |
(158) |
(0) |
0.3% |
(312) |
(307) |
(5) |
1.7% |
Other Operating Costs/Expenses |
(170) |
(166) |
(4) |
2.1% |
(332) |
(339) |
6 |
-1.9% |
Allowance for doubtful accounts |
(33) |
(50) |
17 |
-34.0% |
(72) |
(96) |
24 |
-25.4% |
Legal, judicial and indemnities expenses |
(44) |
(50) |
5 |
-10.7% |
(90) |
(109) |
19 |
-17.2% |
Others |
(93) |
(67) |
(26) |
38.6% |
(171) |
(134) |
(37) |
27.3% |
Total PMSO (-) RGE Sul |
(675) |
(630) |
(45) |
7.1% |
(1,329) |
(1,237) |
(92) |
7.5% |
(i) Personnel - increase of 26.0% (R$ 69 million), mainly due to:
ü Acquisition of RGE Sul (R$ 40 million);
ü Collective bargaining agreement – wages and benefits (R$ 18 million);
ü Increase in the Services segment business, due to business expansion of CPFL Serviços, Nect, Authi and CPFL Eficiência (R$ 18 million);
Partially offset by:
ü Other effects (R$ 7 million);
(ii) Material – increase of 46.3% (R$ 18 million), mainly due to:
Página 17 de 66
ü Acquisition of RGE Sul (R$ 7 million);
ü Replacement of material to the maintenance of lines and grid (R$ 4 million);
ü Fleet maintenance (R$ 2 million);
ü Other effects (R$ 5 million);
(iii) Out-sourced services - increase of 20.0% (R$ 37 million), mainly due to the acquisition of RGE Sul (R$ 31 million) and other effects (R$ 1 million);
(iv) Other operational costs/expenses - increase of 22.0% (R$ 37 million), mainly due to increase in the expenses in:
ü Acquisition of RGE Sul (R$ 33 million);
ü Increase in assets write-off (R$ 23 million), mainly due to the write-off of intangible assets of CPFL Renováveis’ SHPPs projects, due to the uncertainty of its development, in the amount of R $ 16 million;
ü Increase in the expenses with collection fees (R$ 2 million);
ü Increase in the expenses with publicity and advertising (R$ 2 million);
ü Increase in the expenses with donations, contributions and subsidies (R$ 1 million);
ü Other effects (R$ 2 million);
Partially offset by:
ü Reduction of 34.0% in allowance for doubtful account (R$ 17 million);
ü Reduction of 10.7% in legal and judicial expenses (R$ 5 million);
ü Reduction of 50.0% in the amortization of paid premium – GSF (hydrological risk) in Conventional/Renewable Generation segment (R$ 2 million);
ü Reduction of 22.9% in the expenses with regulatory penalties – DIC, FIC, DMIC and DICRI (R$ 2 million).
Other operating costs and expenses
Other operating costs and expenses reached R$ 875 million in 2Q17, compared to R$ 600 million in 2Q16, registering an increase of 45.7% (R$ 275 million), due to the following factors:
· Acquisition of RGE Sul (R$ 133 million);
· Increase of 69.6% (R$ 191 million) in Costs of Building the Infrastructure item;
· Increase of 102.1% (R$ 14 million) in Private Pension Fund item, due to the registration of the impacts of the 2017 actuarial report;
· Increase of 23.6% (R$ 59 million) in Depreciation and Amortization item;
· Increase of 16.3% (R$ 10 million) in Amortization of Intangible of Concession Asset item.
In 2Q17, EBITDA reached R$ 1,027 million, registering an increase of 6.3% (R$ 61 million).
EBITDA is calculated according to CVM Instruction no. 527/12 and showed in the table below:
Página 18 de 66
EBITDA and Net Income conciliation (R$ million) | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Net Income |
123 |
240 |
-48.7% |
355 |
473 |
-24.8% |
De preciation and Amortization |
381 |
312 |
758 |
620 |
||
Financial Result |
418 |
264 |
854 |
583 |
||
Income Tax / Social Contribution |
105 |
150 |
255 |
325 |
||
EBITDA |
1,027 |
966 |
6.3% |
2,223 |
2,001 |
11.1% |
In the analysis presented in this report, we consider the impact of the inclusion of RGE Sul as an isolated item. However, the impacts caused by the acquisition of RGE Sul in CPFL Energia’s results (due to the reduction in Cash and increase in Indebtedness for acquisition funding, among others) were not excluded in our analyzes.
In 2Q17, net financial expense was of R$ 418 million, an increase of 58.4% (R$ 154 million) compared to the net financial expense of R$ 264 million reported in 2Q16.
Financial Result (R$ Million) | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Revenues |
||||||
Income from Financial Investments |
129 |
165 |
-21.8% |
289 |
298 |
-2.8% |
Additions and Late Payment Fines |
69 |
60 |
16.6% |
143 |
117 |
22.2% |
Fiscal Credits Update |
2 |
15 |
-83.9% |
5 |
18 |
-71.8% |
Judicial Deposits Update |
13 |
9 |
44.4% |
26 |
18 |
48.5% |
Monetary and Foreign Exchange Updates |
(1) |
47 |
- |
29 |
102 |
-71.3% |
Discount on Purchase of ICMS Credit |
3 |
5 |
-43.0% |
6 |
12 |
-50.4% |
Sectoral Financial Assets Update |
1 |
7 |
-85.2% |
1 |
57 |
-98.0% |
PIS and COFINS - over Other Financial Revenues |
(13) |
(2) |
523.1% |
(27) |
(23) |
17.4% |
Others |
18 |
27 |
-31.8% |
31 |
49 |
-36.7% |
Total |
223 |
334 |
-33.2% |
503 |
646 |
-22.1% |
|
|
|
|
|||
Expenses |
|
|
|
|
||
Debt Charges |
(442) |
(438) |
1.1% |
(928) |
(868) |
6.8% |
Monetary and Foreign Exchange Updates |
(154) |
(135) |
14.1% |
(338) |
(288) |
17.3% |
(-) Capitalized Interest |
10 |
21 |
-52.7% |
34 |
34 |
0.6% |
Sectoral Financial Liabilities Update |
(23) |
(14) |
60.3% |
(50) |
(16) |
209.9% |
Use of Public Asset |
(0) |
(4) |
-94.5% |
(4) |
(8) |
-56.5% |
Others |
(30) |
(27) |
14.1% |
(72) |
(82) |
-11.8% |
Total |
(641) |
(597) |
7.3% |
(1,358) |
(1,229) |
10.5% |
|
|
|
|
|||
Financial Result |
(418) |
(264) |
58.4% |
(854) |
(583) |
46.5% |
Página 19 de 66
Financial Result (without RGE Sul) (R$ Million) | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Revenues |
||||||
Income from Financial Investments |
125 |
165 |
-24.6% |
280 |
298 |
-6.1% |
Additions and Late Payment Fines |
55 |
60 |
-6.9% |
112 |
117 |
-4.3% |
Fiscal Credits Update |
2 |
15 |
-83.9% |
5 |
18 |
-71.8% |
Judicial Deposits Update |
12 |
9 |
36.0% |
25 |
18 |
39.6% |
Monetary and Foreign Exchange Updates |
(3) |
47 |
- |
28 |
102 |
-72.1% |
Discount on Purchase of ICMS Credit |
3 |
5 |
-43.0% |
6 |
12 |
-50.4% |
Sectoral Financial Assets Update |
1 |
7 |
-85.2% |
1 |
57 |
-98.0% |
PIS and COFINS - over Other Financial Revenues |
(13) |
(2) |
523.1% |
(27) |
(23) |
17.4% |
Others |
14 |
27 |
-46.5% |
28 |
49 |
-43.4% |
Total |
198 |
334 |
-40.7% |
457 |
646 |
-29.3% |
|
|
|
|
|||
Expenses |
|
|
|
|
||
Debt Charges |
(407) |
(438) |
-6.9% |
(851) |
(868) |
-2.0% |
Monetary and Foreign Exchange Updates |
(153) |
(135) |
13.3% |
(330) |
(288) |
14.5% |
(-) Capitalized Interest |
9 |
21 |
-56.8% |
32 |
34 |
-4.3% |
Sectoral Financial Liabilities Update |
(11) |
(14) |
-20.8% |
(38) |
(16) |
130.9% |
Use of Public Asset |
(0) |
(4) |
-94.5% |
(4) |
(8) |
-56.5% |
Others |
(24) |
(27) |
-9.9% |
(62) |
(82) |
-24.2% |
Total |
(587) |
(597) |
-1.7% |
(1,251) |
(1,229) |
1.8% |
|
|
|
|
|||
Financial Result |
(390) |
(264) |
47.6% |
(794) |
(583) |
36.3% |
The items explaining these variations in Financial Result are as follows:
· Financial Revenues: reduction of 33.2% (R$ 111 million), from R$ 334 million in 2Q16 to R$ 223 million in 2Q17, mainly due to the following factors:
(i) Variation of R$ 50 million in the monetary and foreign exchange updates, from a revenue of R$ 47 million in 2Q16 to a expense of R$ 3 million in 2Q17, due to the reductions of: (a) R$ 39 million in the gain with the zero-cost collar derivative1 ; (b) R$ 11 million in revenues from fines, interest and monetary adjustment relating to installment payments made by consumers; and (c) R$ 1 million in the update of the balance of tariff subsidies, as determined by ANEEL; partially offset by the increase of R$ 1 million in other monetary and foreign exchange updates;
(ii) Reduction of 24.6% (R$ 41 million) in the income from financial investments, due to the reductions in the CDI interbank rate and in the average balance of investments;
(iii) Reduction of 83.9% (R$ 13 million) in fiscal credits update;
(iv) Reduction of 46.5% (R$ 13 million) in other financial revenues;
(v) Increase of 523.1% (R$ 11 million) in PIS and COFINS over Other Financial Revenue (revenue reducer);
(vi) Reduction of 85.2% (R$ 6 million) in sectoral financial assets update;
(vii) Reduction of 6.9% (R$ 4 million) in additions and late payment fines;
(viii) Reduction of 43.0% (R$ 2 million) in discount on the acquisition of ICMS credit;
Partially offset by:
1 In 2015, subsidiary CPFL Geração contracted US$ denominated put and call options, involving the same financial institution as counterpart, and which on a combined basis are characterized as an operation usually known as zero-cost collar. The contracting of this operation does not involve any kind of speculation, inasmuch as it is aimed at minimizing any negative impacts on future revenues of the joint venture ENERCAN, which has electric energy sale agreements with annual restatement of part of the tariff based on the variation in the US$. In addition, according to Management’s view, the scenario was favorable for contracting this type of financial instrument, considering the high volatility implicit in dollar options and the fact that there was no initial cost for same.
Página 20 de 66
(ix) Impact of the inclusion of RGE Sul in our consolidation in 2Q17. The total financial revenue in relation to RGE Sul (which was not included in our consolidation in 2Q16) totaled R$ 25 million for 2Q17;
(x) Increase of 36.0% (R$ 3 million) in judicial deposits update.
· Financial Expenses: increase of 7.3% (R$ 43 million), from R$ 597 million in 2Q16 to R$ 641 million in 2Q17, mainly due to the following factors:
(i) Impact of the inclusion of RGE Sul in our consolidation in 2Q17. The total financial expense in relation to RGE Sul (which was not included in our consolidation in 2Q16) totaled R$ 53 million for 2Q17;
(ii) Increase of 13.3% (R$ 18 million) in the monetary and foreign exchange updates, due to: (a) the effect of Itaipu’s exchange variation (R$ 43 million); (b) the mark-to-market negative effect for financial operations under Law 4,131 – non-cash effect (R$ 33 million); partially offset by (c) the reduction of debt charges in foreign currency, with swap to CDI interbank rate (R$ 59 million);
(iii) Reduction of 56.8% (R$ 12 million) in capitalized interest (expense reducer);
Partially offset by:
(iv) Reduction of 6.9% (R$ 30 million) of debt charges in local currency, due to the reduction in the CDI interbank rate;
(v) Reduction of 94.5% (R$ 4 million) in the financial expenses with the Use of Public Asset (UBP);
(vi) Reduction of 20.8% (R$ 3 million) in sectoral financial liabilities update;
(vii) Reduction of 9.9% (R$ 3 million) in other financial expenses.
In 2Q17, net income was R$ 123 million, registering a reduction of 48.7%.
Página 21 de 66
1) Do not consider mark-to-market effects and borrowing costs.
Indexation after Hedge1 – 2Q16 vs. 2Q17
2Q16
2Q17
1) For debt linked to foreign currency (23% of total in 2Q17), swaps are contracted, which convert indexing for CDI;
Página 22 de 66
Net Debt and Leverage in IFRS
IFRS - R$ Million |
2Q17 |
2Q16 |
Var. % |
Financial Debt (including hedge) |
(20,121) |
(18,920) |
6.3% |
(+) Available Funds |
4,316 |
5,465 |
-21.0% |
(=) Net Debt |
(15,805) |
(13,455) |
17.5% |
CPFL Energia has always adopted a solid and conservative financial policy. Thus, the Company has used since 2011, a prefunding strategy, in other words, forecasts the cash needs for the next 24 months and anticipates market access on more favorable terms of liquidity and cost. Thus, at the beginning of 2017, CPFL Energia had worked in 2018 and 2019 prefunding.
Debt Amortization Schedule in Financial Covenants Criteria (Jun-17)1
1) Considers only the principal debt of R$ 17,471 million, excluding accrued interests of R$ 477 million and including other adjustments in the amount of R$ 84 million) to reach in the debt value of R$ 17,864 million in the Covenant criteria;
2) Short-term (Jul-17 – Jun-18) = R$ 3,864 million.
The cash position at the end of 2Q17 had a coverage ratio of 1.10x the amortizations of the next 12 months, enough to honor all amortization commitments until the end of 1H18. The average amortization term, calculated by this schedule, is 2.70 years.
Página 23 de 66
Indexation1 After Hedge2 in Financial Covenants Criteria – 2Q16 vs. 2Q17
2Q16
2Q17
1) Considering proportional consolidation of CPFL Renováveis, CERAN, BAESA, ENERCAN, Foz do Chapecó and EPASA;
2) For debt linked to foreign currency (23% of total), swaps are contracted, which convert the indexation to CDI. The debt amount indexed in Interbank Rate (CDI) increased from 71% to 74%, mainly due to the R$ 620 million borrowed by CPFL Energia (holding) and R$ 400 million by CPFL Brasil through debentures emission in 4Q16. Additionally, In 1Q17 there were debentures emission in amount of R$ 786 million from RGE, CPFL Piratinga and CPFL Renováveis (holding).
Página 24 de 66
Gross Debt Cost1 in Financial Covenants Criteria – LTM
1) Adjusted by the proportional consolidation since 2012; Financial debt (+) private pension fund (-) hedge.
2) As of 2Q17, CPFL Energia started to calculate gross debit cost considering end of period rates, to better reflect the variations on interest rates.
In 2Q17, Pro forma Net Debt totaled R$ 13,613 million, an increase of 16.8% compared to net debt position at the end of 2Q16 in the amount of R$ 11,658 million.
The increase in Net Debt in 2Q17 was mainly due to the acquisition of RGE Sul, which was consolidated in November 2016.
Covenant Criteria (*) - R$ Million |
2Q17 |
2Q16 |
Var. |
Financial Debt (including hedge)1 |
(17,864) |
(16,962) |
5.3% |
(+) Available Funds |
4,251 |
5,304 |
-19.9% |
(=) Net Debt |
(13,613) |
(11,658) |
16.8% |
EBITDA Pro-Forma² |
4,151 |
3,764 |
10.3% |
Net Debt / EBITDA |
3.28x |
3.10x |
-0.20x |
1) Considering proportional consolidation of CPFL Renováveis, CERAN, BAESA, ENERCAN, Foz do Chapecó and EPASA;
2) Adjusted EBITDA in the covenants criteria: adjusted according to equivalent participation of CPFL Energia in each of its subsidiaries, with the inclusion of regulatory assets and liabilities and the historical EBITDA of newly acquired projects.
In line with the criteria for calculation of financial covenants of loan agreements with financial institutions, net debt is adjusted according to the equivalent stake of CPFL Energia in each of its subsidiaries. Also, include in the calculation of adjusted EBITDA the effects of historic EBITDA of newly acquired projects. Considering that, adjusted net debt totaled R$ 13,613 million and EBITDA Proforma in the last 12 months reached R$ 4,151 million, the ratio adjusted Net Debt / EBITDA Proforma at the end of 2Q17 reached 3.28x.
Página 25 de 66
Investments (R$ Million) | ||||||
Segment |
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Distribution |
440 |
221 |
99.1% |
788 |
429 |
83.5% |
Generation - Conventional |
1 |
1 |
41.1% |
2 |
4 |
-54.4% |
Generation - Renewable |
238 |
260 |
-8.2% |
521 |
487 |
7.0% |
Commercialization |
1 |
1 |
25.6% |
2 |
2 |
-24.6% |
Services and Others1 |
14 |
21 |
-32.0% |
27 |
28 |
-3.8% |
Subtotal |
696 |
504 |
38.1% |
1,339 |
950 |
41.0% |
Transmission |
2 |
6 |
-60.7% |
40 |
9 |
331.7% |
Total |
698 |
510 |
36.9% |
1,379 |
959 |
43.8% |
Special Obligations |
58 |
66 |
-13.4% |
121 |
110 |
10.5% |
|
|
|
|
|
|
|
Note:
1) Others – basically refer to assets and transactions that are not related to the listed segments.
In 2Q17, R$ 696 million were invested, an increase of 38.1% if compared to 2Q16. In addition, there was an investment of R$ 2 million in the quarter related to the transmission lines construction of CPFL Transmissão Morro Agudo, which, according to the requirements of IFRIC 12, was recorded as “Financial Asset of Concession” (non-current assets). CPFL Energia also accounted for R$ 58 million in Special Obligations in the quarter, among other items financed by the consumer.
We highlight investments made by CPFL Energia in each segment:
(i) Distribution:
a. Expansion and strengthening of the electric system;
b. Electricity system maintenance and improvements;
c. Operational infrastructure;
d. Upgrade of management and operational support systems;
e. Customer help services;
f. Research and development programs.
(ii) Generation:
a. Mainly on Campo dos Ventos and São Benedito Wind Complexes;
b. Pedra Cheirosa Wind Complex.
On April 28, 2017, CPFL Energia’s Board of Directors approved Board of Executive Officers’ proposal for 2017 Annual Budget and 2018/2021 Multiannual Plan for the Company, which was previously discussed by the Budget and Corporate Finance Commission. Projections already include expected investments for RGE Sul.
Página 26 de 66
Projected Capital Expenditures (R$ million)1
Notes:
1) Constant currency;
2) Disregard investments in Special Obligations on Distribution segment (among other items financed by consumers);
3) Conventional + Renewable.
7.1) Stock Performance
CPFL Energia is listed on both the B3 (Novo Mercado) and the New York Stock Exchange (NYSE) (ADR Level III), segments with the highest levels of corporate governance.
B3 |
NYSE | ||||||
Date |
CPFE3 (R$) |
IEE |
IBOV |
Date |
CPL (US$) |
DJBr20 |
Dow Jones |
30/30/2016 |
R$ 20.59 |
30,786 |
51,526 |
30/30/2016 |
$ 12.86 |
15,996 |
17,930 |
03/31/2017 |
R$ 25.77 |
39,971 |
64,984 |
03/31/2017 |
$ 16.39 |
21,073 |
20,663 |
06/30/2017 |
R$ 26.69 |
39,543 |
63,832 |
06/30/2017 |
$ 16.35 |
19,840 |
21,409 |
QoQ |
3.6% |
-1.1% |
-1.8% |
QoQ |
-0.2% |
-5.9% |
3.6% |
YoY |
29.6% |
28.4% |
23.9% |
YoY |
27.1% |
24.0% |
19.4% |
On June 30, 2017 the price shares closed at R$ 26.69 per share on the B3 and US$ 16.35 per ADR on the NYSE, which represented a variation in the quarter of 3.6% and -0.2% respectively. In the last 12 months, the shares appreciated 29.6% on B3 and the ADR appreciated 27.1% on the NYSE.
Página 27 de 66
The daily trading volume in 2Q17 averaged R$ 54 million, of which R$ 41.7 million on the B3 and R$ 12.3 million on the NYSE, representing a decrease of 7% compared to 2Q16. The number of trades on the B3 decreased by 55.1%, from a daily average of 8,194, in 2Q16, to 3,678, in 2Q17.
Note: Considers the sum of the average daily volume on the B3 and NYSE.
The corporate governance model adopted by CPFL Energia and its subsidiaries is based on the principles of transparency, equity, accountability and corporate responsibility.
In 2016, CPFL marked 12 years since being listed on the B3 and the New York Stock Exchange (“NYSE”). With more than 100 years of history in Brazil, the Company’s shares are listed on the Novo Mercado Special Listing Segment of the B3 with Level III ADRs, a special segment for companies that comply with corporate governance best practices. All CPFL shares are common shares, entitling all shareholders the right to vote with 100% Tag Along rights guaranteed in case of sale of shareholding control.
CPFL’s Management is composed of the Board of Directors (“Board”), its decision-making authority, and the Board of Executive Officers, its executive body. The Board is responsible for defining the strategic business direction of the holding company and subsidiaries, and is composed of 7 members, of which 2 independent members.
The Bylaws of the Board establishes the procedures for evaluating the directors, under the leadership of the Chairman, their main duties and rights.
The Board set up three advisory committees (Management Processes, Risks and Sustainability, People Management and Related Parties), all coordinated by a director, which support the Board in its decisions and monitor relevant and strategic themes, such as people and risk management, sustainability, the surveillance of internal audits and analysis of transactions with Parties Related to controlling shareholders and handling of incidents recorded through complaint hotlines and ethical conduct channels.
The Board of Executive Officers is made up of 1 Chief Executive Officer, 1 Deputy Chief of Executive Officer and 6 Vice Presidents, with terms of two years, eligible for reelection, responsible for executing the strategy of CPFL Energia and its subsidiaries as defined by the Board of Directors in line with corporate governance guidelines. To ensure alignment of governance practices, Executive Officers sit on the Boards of Directors of companies that make up the CPFL group and nominate their respective executive officers.
Página 28 de 66
CPFL has a permanent Fiscal Council, made up of 5 members, that also exercises the duties of the Audit Committee, in line with Sarbanes-Oxley law (SOX) rulings applicable to foreign companies listed on U.S. stock exchanges. At the Ordinary and Extraordinary General Meetings held on April 28, 2017, 3 acting members and 3 deputy members were elected.
The guidelines and documents on corporate governance are available at the Investor Relations website http://www.cpfl.com.br/ir.
CPFL Energia is a holding company that owns stake in other companies. State Grid Corporation of China (SGCC) controls CPFL Energia through its subsidiaries State Grid International Development Co., Ltd, State Grid International Development Limited (SGID), International Grid Holdings Limited, State Grid Brazil Power Participações S.A. (SGBP) and ESC Energia S.A.:
Reference date: 06/30/2017
Notes:
(1) 51.54% stake of the availability of power and energy of Serra da Mesa HPP, regarding the Power Purchase Agreement between CPFL Geração and Furnas;
(2) CPFL Energia holds a stake in RGE Sul through the CPFL Jaguariúna.
Página 29 de 66
As a complement to the Material Facts released on September 2nd, 22nd, 23rd and 28th, 2016, November 23rd, 2016, December 13th, 2016, and January 23rd, 2017, February 16th and 23rd, 2017, and June 13th, 2017, CPFL Energia announced to its shareholders and to the market in general that, on July 7th, that the company received from its controlling shareholder, State Grid Brazil Power Participações S.A., a letter informing that it decided to proceed solely with the Mandatory Tender Offers.
On June 12, 2017, the CVM requested through Letters 152 and 153/2017/CVM/SRE/GER-1 (“CVM Letters”) that State Grid either filed with the CVM the valuation reports in connection with the Delisting Tender Offer and the Novo Mercado’s Exit Tender Offer for each of the Companies, or, alternatively, filed with the CVM the adjusted offer documents providing solely for the Mandatory Tender Offers resulting from the direct transfer of control of CPFL Energia and the indirect transfer of control of CPFL Renováveis.
In response to the CVM Letters, State Grid informed, on June 7th, that it decided to proceed solely with the Mandatory Tender Offers resulting from the transfer of control of the Companies required in respect of each of the Companies pursuant to article 254-A of Law 6,404, dated as of December 15, 1976, article 29 of CVM Instruction 361, dated as of March 05, 2002, the Novo Mercado Listing Rules of B3 S.A. – Brasil, Bolsa, Balcão (“B3” and “Novo Mercado”) and the Companies’ bylaws.
As also requested by the CVM Letters, the applicable documentation for the tender offers for each of the Companies were adjusted to reflect the foregoing decision filed with the Comissão de Valores Mobiliários – CVM on July 12, 2017.
Página 30 de 66
Consolidated Income Statement - Distribution (R$ Million) | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Gross Operating Revenue |
7,798 |
6,213 |
25.5% |
15,333 |
12,898 |
18.9% |
Net Operating Revenue |
4,741 |
3,568 |
32.9% |
9,203 |
7,095 |
29.7% |
Cost of Electric Power |
(3,158) |
(2,325) |
35.8% |
(5,968) |
(4,551) |
31.1% |
Operating Costs & Expenses |
(1,322) |
(932) |
41.8% |
(2,537) |
(1,781) |
42.4% |
EBIT |
261 |
310 |
-15.7% |
699 |
762 |
-8.3% |
EBITDA(1) |
452 |
451 |
0.3% |
1,078 |
1,042 |
3.5% |
Financial Income (Expense) |
(166) |
(65) |
154.3% |
(347) |
(156) |
122.4% |
Income Before Taxes |
96 |
245 |
-60.9% |
351 |
606 |
-42.0% |
Net Income |
43 |
154 |
-71.8% |
193 |
376 |
-48.5% |
Notes:
(1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization, as CVM Instruction no. 527/12;
(2) The distributors’ financial performance tables are attached to this report in item 11.12.
The distribution subsidiaries, aiming at the better presentation of their operational and financial performance, concluded that the adjustment of expectation of the cash flow of the indemnable financial asset of the concession of each distributor, originally presented under financial revenue item, in financial result, should be more adequately classified in the operating revenues group, together with other revenues related to its activity. This allocation reflects more accurately the business model of electric energy distribution and provides a better presentation regarding its performance.
Pursuant to CPC 23 / IAS 8 - Accounting Policies, Changes in Estimates and Error Rectification, by the end of 2016, the CPFL Energia and its Subsidiaries changed their accounting policy previously adopted by an accounting policy that better reflects the performance of the Company's and its subsidiaries' businesses and, therefore, accounting the adjustments to the concession financial asset in Operating Revenues.
In 2Q17, total sectoral financial assets accounted for R$ 369 million, a variation of R$ 831 million if compared to 2Q16, when sectoral financial liabilities amounted to R$ 462 million.
On June 30, 2017, the balance of sectoral financial assets and liabilities was negative in R$ 1,254 million, compared to a negative balance of R$ 1,525 million on March 31, 2017 and a positive balance of R$ 130 on June 30, 2016.
As established by the applicable regulation, any sectoral financial assets or liabilities shall be included in the tariffs of the distributors in their respective annual tariff events.
Página 31 de 66
In the analysis presented in this report, we consider the impact of the inclusion of RGE Sul as an isolated item.
Operating Revenue (R$ Million) | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Gross Operating Revenue |
||||||
Revenue with Energy Sales (Captive + TUSD) |
6,008 |
6,069 |
-1.0% |
12,967 |
12,726 |
1.9% |
Short-term Electric Energy |
537 |
(41) |
- |
749 |
100 |
649.7% |
Revenue from Building the Infrastructure of the Concession |
459 |
269 |
70.8% |
837 |
483 |
73.3% |
Sectoral Financial Assets and Liabilities |
369 |
(462) |
- |
(196) |
(1,194) |
-83.6% |
CDE Resources - Low-income and Other Tariff Subsidies |
314 |
242 |
29.8% |
738 |
495 |
49.1% |
Adjustments to the Concession's Financial Asset |
32 |
65 |
-49.9% |
81 |
152 |
-46.5% |
Other Revenues and Income |
79 |
72 |
9.5% |
157 |
136 |
15.1% |
Total |
7,798 |
6,213 |
25.5% |
15,333 |
12,898 |
18.9% |
|
|
|
|
|||
Deductions from the Gross Operating Revenue |
|
|
|
|
||
ICMS Tax |
(1,265) |
(1,176) |
7.5% |
(2,711) |
(2,487) |
9.0% |
PIS and COFINS Taxes |
(673) |
(543) |
24.0% |
(1,344) |
(1,139) |
18.0% |
CDE Sector Charge |
(784) |
(835) |
-6.1% |
(1,614) |
(1,677) |
-3.8% |
R&D and Energy Efficiency Program |
(42) |
(32) |
31.2% |
(83) |
(65) |
28.1% |
PROINFA |
(43) |
(29) |
50.2% |
(87) |
(49) |
77.4% |
Tariff Flags and Others |
(244) |
(26) |
835.5% |
(281) |
(377) |
-25.5% |
Others |
(5) |
(4) |
18.4% |
(11) |
(9) |
17.9% |
Total |
(3,057) |
(2,645) |
15.6% |
(6,130) |
(5,804) |
5.6% |
|
|
|
|
|||
Net Operating Revenue |
4,741 |
3,568 |
32.9% |
9,203 |
7,095 |
29.7% |
Operating Revenue (without RGE Sul) (R$ Million) | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Gross Operating Revenue |
||||||
Revenue with Energy Sales (Captive + TUSD) |
5,082 |
6,069 |
-16.3% |
10,799 |
12,726 |
-15.1% |
Short-term Electric Energy |
426 |
(41) |
- |
626 |
100 |
526.9% |
Revenue from Building the Infrastructure of the Concession |
355 |
269 |
32.1% |
649 |
483 |
34.3% |
Sectoral Financial Assets and Liabilities |
347 |
(462) |
- |
(102) |
(1,194) |
-91.5% |
CDE Resources - Low-income and Other Tariff Subsidies |
243 |
242 |
0.6% |
564 |
495 |
14.0% |
Adjustments to the Concession's Financial Asset |
30 |
65 |
-54.2% |
70 |
152 |
-53.7% |
Other Revenues and Income |
73 |
72 |
1.0% |
133 |
136 |
-2.4% |
Total |
6,555 |
6,213 |
5.5% |
12,740 |
12,898 |
-1.2% |
|
|
|
|
|||
Deductions from the Gross Operating Revenue |
|
|
|
|
||
ICMS Tax |
(1,025) |
(1,176) |
-12.8% |
(2,157) |
(2,487) |
-13.3% |
PIS and COFINS Taxes |
(573) |
(543) |
5.6% |
(1,116) |
(1,139) |
-2.0% |
CDE Sector Charge |
(674) |
(835) |
-19.3% |
(1,386) |
(1,677) |
-17.4% |
R&D and Energy Efficiency Program |
(36) |
(32) |
11.7% |
(70) |
(65) |
7.9% |
PROINFA |
(38) |
(29) |
33.0% |
(77) |
(49) |
57.7% |
Tariff Flags and Others |
(211) |
(26) |
705.9% |
(242) |
(377) |
-35.8% |
Others |
(3) |
(4) |
-24.7% |
(9) |
(9) |
-3.8% |
Total |
(2,560) |
(2,645) |
-3.2% |
(5,057) |
(5,804) |
-12.9% |
|
|
|
|
|||
Net Operating Revenue |
3,995 |
3,568 |
12.0% |
7,684 |
7,095 |
8.3% |
In 2Q17, gross operating revenue amounted to R$ 7,798 million, an increase of 25.5% (R$ 1,585 million), due to the following factors:
· Acquisition of RGE Sul (R$ 1,242 million);
· Variation of R$ 809 million) in the Sectoral Financial Assets/Liabilities, from a sectoral financial liability of R$ 462 million in 2Q16 to a sectoral financial asset of R$ 347 million in 2Q17;
· Variation of R$ 467 million in Short-term Electric Energy, from an expense of R$ 41 million in 2Q16 to a revenue of R$ 426 million in 2Q17;
· Increase of 32.1% (R$ 86 million) in revenue from building the infrastructure of the concession;
Página 32 de 66
· Increase of 0.6% (R$ 2 million) in tariff subsidies (CDE resources), mainly discounts in TUSD (for special consumers) and low-income subsidies, in addition to discounts granted to consumers that obtained an injunction to disoblige the payment of specific components of CDE;
· Increase of 1.0% (R$ 1 million) in Other Revenues and Income;
Partially offset by:
· Reduction of 16.3% (R$ 987 million) in the revenue with energy sales (captive + free clients), due to: (i) the negative average tariff adjustment in the distribution companies for the period between 2Q16 and 2Q17 (highlight for the average reductions of 7.51% in RGE in June 2016, of 24.21% in CPFL Piratininga in October 2016 and of 10.50% in CPFL Paulista in April 2017); (ii) the stability in the sales volume within the concession area (variation of +0.5%), disregarding the volumes of RGE Sul; partially offset by (iii) the adoption of red tariff flag in April and May 2017, compared to green tariff flag applied in the same period of 2016 (green tariff flag was adopted in June 2016 and 2017);
· Reduction of 54.2% (R$ 35 million) in the adjustments to the Concession´s Financial Asset, due to: (i) lower inflation (IPCA of 0.22% in 2Q17 and of 1.75% in 2Q16); and (ii) the reduction in concession’s financial asset observed in the distributors which have gone through the concession renewal process at the end of 2015 (CPFL Santa Cruz, CPFL Leste Paulista, CPFL Sul Paulista, CPFL Jaguari, and CPFL Mococa)2.
Deductions from the gross operating revenue were R$ 3,057 million in 2Q17, representing an increase of 15.6% (R$ 412 million), due to the following factors:
· Acquisition of RGE Sul (R$ 496 million);
· Increase of 705.9% in tariff flags approved by the CCEE (R$ 184 million);
· Increase of 5.6% in PIS and COFINS taxes (R$ 30 million);
· Increase of 33.0% in the PROINFA (R$ 9 million);
· Increase of 11.7% in the R&D and Energy Efficiency Program (R$ 4 million);
Partially offset by the following factors:
· Reduction of 19.3% in the CDE sector charge (R$ 161 million), due to the adoption of CDE System Usage quotas in lower amount than 2016, partially offset by the increase in CDE Energy quotas and in the CDE charges in order to cover ACR Account loans;
· Reduction of 12.8% in ICMS tax (R$ 150 million);
· Reduction of 24.7% in other deductions from the gross operating revenue (R$ 1 million).
Net operating revenue reached R$ 4,741 million in 2Q17, representing an increase of 32.9% (R$ 1,173 million).
In the analysis presented in this report, we consider the impact of the inclusion of RGE Sul as an isolated item.
2 In order to calculate the split between the intangible asset and concession’s financial asset, it must be considered the useful life of assets. The portion of the useful life that will occur by the end of the concession is classified as an intangible asset and the residual value is classified as concession’s financial asset, referring to the compensation that the distributor will receive when the assets are reversed to the Grantor.
Página 33 de 66
Cost of Electric Energy (R$ Million) | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Cost of Electric Power Purchased for Resale |
||||||
Energy from Itaipu Binacional |
610 |
504 |
21.0% |
1,168 |
1,051 |
11.2% |
Energy Purchased in the Spot Market/PROINFA |
76 |
74 |
3.5% |
154 |
77 |
99.7% |
Energy Purchased through Auction in the Regulated Environment and Bilateral Contracts |
2,578 |
1,621 |
59.1% |
4,842 |
3,144 |
54.0% |
PIS and COFINS Tax Credit |
(301) |
(203) |
48.2% |
(568) |
(395) |
43.8% |
Total |
2,963 |
1,995 |
48.5% |
5,596 |
3,877 |
44.3% |
|
|
|
|
|||
Charges for the Use of the Transmission and Distribution System |
|
|
|
|
||
Basic Network Charges |
228 |
185 |
23.4% |
456 |
369 |
23.4% |
Itaipu Transmission Charges |
16 |
13 |
21.1% |
31 |
25 |
20.2% |
Connection Charges |
27 |
17 |
55.7% |
54 |
33 |
64.8% |
Charges for the Use of the Distribution System |
11 |
8 |
34.4% |
21 |
17 |
24.5% |
System Service Usage Charges - ESS |
(66) |
70 |
- |
(149) |
197 |
- |
Reserve Energy Charges - EER |
- |
71 |
- |
- |
101 |
- |
PIS and COFINS Tax Credit |
(21) |
(34) |
-37.9% |
(40) |
(69) |
-41.6% |
Total |
195 |
331 |
-41.0% |
372 |
674 |
-44.8% |
|
|
|
|
|||
Cost of Electric Energy |
3,158 |
2,325 |
35.8% |
5,968 |
4,551 |
31.1% |
Cost of Electric Energy (without RGE Sul) (R$ Million) | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Cost of Electric Power Purchased for Resale |
||||||
Energy from Itaipu Binacional |
509 |
504 |
1.0% |
973 |
1,051 |
-7.4% |
Energy Purchased in the Spot Market/PROINFA |
54 |
74 |
-26.5% |
110 |
77 |
43.0% |
Energy Purchased through Auction in the Regulated Environment and Bilateral Contracts |
2,193 |
1,621 |
35.3% |
4,113 |
3,144 |
30.8% |
PIS and COFINS Tax Credit |
(255) |
(203) |
25.4% |
(481) |
(395) |
21.6% |
Total |
2,501 |
1,995 |
25.4% |
4,715 |
3,877 |
21.6% |
|
|
|
|
|||
Charges for the Use of the Transmission and Distribution System |
|
|
|
|
||
Basic Network Charges |
186 |
185 |
0.7% |
372 |
369 |
0.6% |
Itaipu Transmission Charges |
13 |
13 |
0.8% |
25 |
25 |
0.1% |
Connection Charges |
18 |
17 |
2.6% |
35 |
33 |
7.3% |
Charges for the Use of the Distribution System |
11 |
8 |
34.4% |
21 |
17 |
24.5% |
System Service Usage Charges - ESS |
(58) |
70 |
- |
(130) |
197 |
- |
Reserve Energy Charges - EER |
- |
71 |
- |
- |
101 |
- |
PIS and COFINS Tax Credit |
(16) |
(34) |
-53.5% |
(30) |
(69) |
-56.5% |
Total |
154 |
331 |
-53.5% |
293 |
674 |
-56.5% |
|
|
|
|
|||
Cost of Electric Energy |
2,655 |
2,325 |
14.2% |
5,009 |
4,551 |
10.1% |
The cost of electric energy, comprising the purchase of electricity for resale and charges for the use of the distribution and transmission system, amounted to R$ 3,158 million in 2Q17, representing an increase of 35.8% (R$ 832 million):
· The cost of electric power purchased for resale was R$ 2,963 million in 2Q17, representing an increase of 48.5% (R$ 968 million), due to the following factors:
(i) Acquisition of RGE Sul (R$ 462 million);
(ii) Increase of 35.3% (R$ 572 million) in the cost of energy purchased in the regulated environment and bilateral contracts, mainly due to the increase of 337.0% (31,202 GWh) in the volume of purchased energy, partially offset by the reduction of 69.0% in the average purchase price (from R$ 175.03/MWh in 2Q16 to R$ 54.20/MWh in 2Q17);
(iii) Increase of 1.0% (R$ 5 million) in the cost of energy from Itaipu, due to the increase of 4.9% in the average purchase price (from R$ 199.16/MWh in 2Q16 to R$ 208.98/MWh in 2Q17), partially offset by the reduction of 3.7% (94 GWh) in the volume of purchased energy;
Partially offset by:
(iv) Reduction of R$ 19 million in the cost of energy purchased in the short term and Proinfa, mainly due to the reduction in the average purchase price of Proinfa (from R$ 357.56/MWh in 2Q16 to R$ 230.24/MWh in 2Q17), despite the higher average PLD (from R$ 62.22/MWh in 2Q16 to R$ 302.55/MWh in 2Q17, in the Southeast/Midwest submarket, and from R$ 60.15/MWh in 2Q16 to R$ 282.96/MWh in 2Q17, in the South submarket);
Página 34 de 66
(v) Increase of 25.4% (R$ 52 million) in PIS and Cofins tax credit (cost reducer), generated from the energy purchase.
· Charges for the use of the transmission and distribution system reached R$ 195 million in 2Q17, representing a reduction of 41.0% (R$ 136 million), due to the following factors:
(i) Variation of R$ 129 million in the system service usage charges – ESS, from an expense of R$ 70 million in 2Q16 to a revenue of R$ 58 million in 2Q17;
(ii) Variation of R$ 71 million in the energy reserve charges – EER, since there was no registration in 2Q17 and there was a registration in the amount of R$ 71 million in 2Q16;
Partially offset by:
(iii) Acquisition of RGE Sul (R$ 41 million);
(iv) Reduction of 53.5% (R$ 18 million) in PIS and Cofins tax credit (cost reducer), generated from the charges;
(v) Increase of 34.4% (R$ 3 million) in the usage of the distribution system charges;
(vi) Increase of R$ 2 million in the Itaipu transmission charges and charges for basic network and connection.
In the analysis presented in this report, we consider the impact of the inclusion of RGE Sul as an isolated item.
Operating costs and expenses reached R$ 1,322 million in 2Q17, compared to R$ 932 million in 2Q16, an increase of 41.8% (R$ 390 million), due to the following factors:
PMSO
PMSO reached R$ 645 million in 2Q17, an increase of 26.6% (R$ 135 million), compared to R$ 509 million in 2Q16. Disregarding the acquisition of RGE Sul, PMSO would increase 4.8% (R$ 24 million).
Página 35 de 66
Reported PMSO (R$ million) | ||||||||
|
2Q17 |
2Q16 |
Variation |
1H17 |
1H16 |
Variação | ||
|
R$ MM |
% |
R$ MM |
% | ||||
Reported PMSO |
|
|
|
|
|
|
|
|
Personnel |
(230) |
(175) |
(55) |
31.1% |
(454) |
(341) |
(113) |
33.0% |
Material |
(42) |
(29) |
(13) |
43.3% |
(81) |
(58) |
(23) |
40.2% |
Outsourced Services |
(212) |
(160) |
(53) |
33.0% |
(407) |
(304) |
(103) |
33.9% |
Other Operating Costs/Expenses |
(161) |
(145) |
(16) |
10.7% |
(323) |
(290) |
(34) |
11.6% |
Allowance for doubtful accounts |
(39) |
(49) |
10 |
-19.8% |
(86) |
(94) |
8 |
-8.6% |
Legal, judicial and indemnities expenses |
(55) |
(47) |
(8) |
17.1% |
(101) |
(98) |
(3) |
3.4% |
Others |
(67) |
(49) |
(17) |
34.7% |
(136) |
(98) |
(38) |
39.1% |
Total Reported PMSO |
(645) |
(509) |
(135) |
26.6% |
(1,264) |
(992) |
(272) |
27.4% |
|
|
|
|
|
|
|
|
|
PMSO RGE Sul |
|
|
|
|
|
|
|
|
Personnel |
(40) |
|
|
|
(81) |
|
|
|
Material |
(7) |
|
|
|
(16) |
|
|
|
Outsourced Services |
(31) |
|
|
|
(62) |
|
|
|
Other Operating Costs/Expenses |
(33) |
|
|
|
(56) |
|
|
|
Allowance for doubtful accounts |
(6) |
|
|
|
(15) |
|
|
|
Legal, judicial and indemnities expenses |
(14) |
|
|
|
(23) |
|
|
|
Others |
(12) |
|
|
|
(18) |
|
|
|
Total PMSO RGE Sul |
(111) |
|
|
|
(216) |
|
|
|
|
|
|
|
|
|
|
|
|
PMSO (-) RGE Sul |
|
|
|
|
|
|
|
|
Personnel |
(190) |
(175) |
(15) |
8.5% |
(372) |
(341) |
(31) |
9.2% |
Material |
(35) |
(29) |
(6) |
19.1% |
(65) |
(58) |
(7) |
12.8% |
Outsourced Services |
(181) |
(160) |
(21) |
13.5% |
(344) |
(304) |
(41) |
13.4% |
Other Operating Costs/Expenses |
(128) |
(145) |
18 |
-12.1% |
(267) |
(290) |
23 |
-7.9% |
Allowance for doubtful accounts |
(33) |
(49) |
16 |
-33.1% |
(72) |
(94) |
23 |
-24.0% |
Legal, judicial and indemnities expenses |
(41) |
(47) |
6 |
-13.1% |
(77) |
(98) |
20 |
-20.6% |
Others |
(54) |
(49) |
(5) |
9.7% |
(118) |
(98) |
(20) |
20.3% |
Total PMSO (-) RGE Sul |
(533) |
(509) |
(24) |
4.8% |
(1,048) |
(992) |
(57) |
5.7% |
Personnel – increase of 31.1% (R$ 55 million), mainly due to the acquisition of RGE Sul (R$ 40 million), of the collective bargaining agreement effects (R$ 14 million) and others (R$ 1 million);
Material – increase of 43.3% (R$ 13 million), mainly due to the acquisition of RGE Sul (R$ 7 million), the replacement of material to the maintenance of lines and grid (R$ 4 million) and others (R$ 2 million);
Outsourced services – increase of 33.0% (R$ 53 million), mainly due to the following items: acquisition of RGE Sul (R$ 31 million), outsourced services (R$ 5 million), hardware/software maintenance (R$ 4 million), tree pruning (R$ 3 million), lines, grid and substations maintenance service (R$ 2 million), meter reading and use (R$ 2 million), collection actions (R$ 2 million) and Call Center (R$ 1 million);
Other operating costs/expenses – increase of 10.7% (R$ 16 million), mainly due to the following factors: acquisition of RGE Sul (R$ 33 million) and other expenses (R$ 5 million). These effects were partially offset by the reduction in the allowance for doubtful accounts (R$ 16 million) and legal and judicial expenses (R$ 6 million).
Página 36 de 66
Other operating costs and expenses
Other operating costs and expenses reached R$ 677 million in 2Q17, compared to R$ 423 million in 2Q16, registering an increase of 60.2% (R$ 255 million), with the variations below:
(i) Acquisition of RGE Sul (R$ 151 million);
(ii) Increase of 32.1% (R$ 86 million) in cost of building the concession´s infrastructure. This item, which reached R$ 355 million in 2Q17, does not affect results, since it has its counterpart in “operating revenue”;
(iii) Increase of 10.5% (R$ 13 million) in Depreciation and Amortization item;
(iv) Increase of 87.6% (R$ 12 million) in Private Pension Fund item, due to the registration of the impacts of the 2017 actuarial report;
Parcialmente compensados por:
(v) Reduction of 47.7% (R$ 7 million) in Amortization of Acquisition Goodwill item.
EBITDA totaled R$ 452 million in 2Q17, registering an increase of 0.3% (R$ 2 million).
Conciliation of Net Income and EBITDA (R$ million) | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Net income |
43 |
154 |
-71.8% |
193 |
376 |
-48.5% |
Depreciation and Amortization |
191 |
141 |
|
380 |
280 |
|
Financial Results |
166 |
65 |
|
347 |
156 |
|
Income Tax /Social Contribution |
53 |
92 |
|
158 |
230 |
|
EBITDA |
452 |
451 |
0.3% |
1,078 |
1,042 |
3.5% |
In the analysis presented in this report, we consider the impact of the inclusion of RGE Sul as an isolated item. However, the impacts caused by the acquisition of RGE Sul in CPFL Energia’s results (due to the reduction in Cash and increase in Indebtedness for acquisition funding, among others) were not excluded in our analyzes.
In 2Q17, the net financial result recorded a net financial expense of R$ 166 million, an increase of 154.3% (R$ 100 million).
Página 37 de 66
Financial Result (R$ Million) | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Revenues |
||||||
Income from Financial Investments |
69 |
92 |
-24.4% |
148 |
171 |
-13.6% |
Additions and Late Payment Fines |
69 |
58 |
19.2% |
141 |
114 |
23.7% |
Fiscal Credits Update |
1 |
11 |
-91.3% |
2 |
12 |
-83.8% |
Judicial Deposits Update |
13 |
8 |
50.9% |
26 |
17 |
53.0% |
Monetary and Foreign Exchange Updates |
5 |
15 |
-70.1% |
18 |
41 |
-56.0% |
Discount on Purchase of ICMS Credit |
3 |
5 |
-43.0% |
6 |
12 |
-50.4% |
Sectoral Financial Assets Update |
1 |
7 |
-85.2% |
1 |
57 |
-98.0% |
PIS and COFINS - over Other Financial Revenues |
(10) |
3 |
- |
(20) |
(15) |
38.6% |
Others |
13 |
14 |
-10.1% |
20 |
25 |
-20.3% |
Total |
163 |
214 |
-23.7% |
340 |
432 |
-21.3% |
|
|
|
|
|||
Expenses |
|
|
|
|
||
Debt Charges |
(169) |
(167) |
1.2% |
(348) |
(334) |
4.4% |
Monetary and Foreign Exchange Updates |
(120) |
(95) |
26.6% |
(248) |
(205) |
21.3% |
(-) Capitalized Interest |
4 |
3 |
37.0% |
9 |
5 |
65.3% |
Sectoral Financial Liabilities Update |
(23) |
(14) |
60.3% |
(50) |
(16) |
209.9% |
Others |
(21) |
(6) |
252.4% |
(50) |
(39) |
26.4% |
Total |
(329) |
(279) |
17.8% |
(688) |
(588) |
16.8% |
|
|
|
|
|||
Financial Result |
(166) |
(65) |
154.3% |
(347) |
(156) |
122.4% |
Financial Result (without RGE Sul) (R$ Million) | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Revenues |
||||||
Income from Financial Investments |
65 |
92 |
-29.4% |
138 |
171 |
-19.3% |
Additions and Late Payment Fines |
55 |
58 |
-5.1% |
110 |
114 |
-3.6% |
Fiscal Credits Update |
1 |
11 |
-91.3% |
2 |
12 |
-83.8% |
Judicial Deposits Update |
12 |
8 |
42.0% |
24 |
17 |
43.7% |
Monetary and Foreign Exchange Updates |
3 |
15 |
-79.2% |
17 |
41 |
-58.0% |
Discount on Purchase of ICMS Credit |
3 |
5 |
-43.0% |
6 |
12 |
-50.4% |
Sectoral Financial Assets Update |
1 |
7 |
-85.2% |
1 |
57 |
-98.0% |
PIS and COFINS - over Other Financial Revenues |
(10) |
3 |
- |
(20) |
(15) |
38.6% |
Others |
9 |
14 |
-38.3% |
16 |
25 |
-33.6% |
Total |
138 |
214 |
-35.3% |
294 |
432 |
-32.0% |
|
|
|
|
|||
Expenses |
|
|
|
|
||
Debt Charges |
(134) |
(167) |
-19.8% |
(271) |
(334) |
-18.7% |
Monetary and Foreign Exchange Updates |
(119) |
(95) |
25.5% |
(240) |
(205) |
17.4% |
(-) Capitalized Interest |
4 |
3 |
9.8% |
7 |
5 |
34.5% |
Sectoral Financial Liabilities Update |
(11) |
(14) |
-20.8% |
(38) |
(16) |
130.8% |
Others |
(14) |
(6) |
144.6% |
(40) |
(39) |
0.7% |
Total |
(275) |
(279) |
-1.3% |
(581) |
(588) |
-1.2% |
|
|
|
|
|||
Financial Result |
(137) |
(65) |
110.4% |
(287) |
(156) |
84.1% |
The items explaining these changes are as follows:
· Financial Revenue: reduction of 23.7% (R$ 51 million), from R$ 214 million in 2Q16 to R$ 163 million in 2Q17, mainly due to the following factors:
(i) Reduction of 29.4% in the income from financial investments (R$ 27 million), due to the lower average balance of investments and the fall of CDI interbank rate;
(ii) Variation of R$ 13 million in PIS and Cofins on financial revenues, from a revenue of R$ 3 million in 2Q16 to an expense of R$ 10 million in 2Q17;
(iii) Reduction of 79.2% in adjustments for inflation and exchange rate changes (R$ 12 million), due to the reduction of R$ 11 million in revenues from fines, interest and monetary adjustment relating to installment payments made by consumers and the reduction of R$ 1 million in the adjustment of the balance of tariff subsidies, as determined by Aneel;
Página 38 de 66
(iv) Reduction of 91.3% in fiscal credits update (R$ 10 million);
(v) Reduction of 85.2% in sectoral financial assets update (R$ 6 million);
(vi) Reduction of 38.3% in other financial revenues (R$ 5 million);
(vii) Reduction of 5.1% in late payment interest and fines (R$ 3 million);
(viii) Reduction of 43.0% in the discount on purchase of ICMS credit (R$ 2 million);
Partially offset by:
(ix) Acquisition of RGE Sul (R$ 25 million);
(x) Increase of 42.0% in adjustments for inflation of escrow deposits (R$ 4 million).
· Financial Expense: increase of 17.8% (R$ 50 million), from R$ 279 million in 2Q16 to R$ 329 million in 2Q17, mainly due to the following factors:
(i) Acquisition of RGE Sul (R$ 53 million);
(ii) Increase of 25.5% in adjustments for inflation and exchange rate changes (R$ 24 million), due to: (a) the effect of exchange variation in Itaipu invoices (R$ 43 million); (b) the mark-to-market negative effect for financial operations under Law 4,131 – non-cash effect (R$ 32 million); partially offset by (c) the reduction of debt charges in foreign currency, with swap to CDI interbank rate (R$ 51 million);
(iii) Increase of 144.6% in other financial expenses (R$ 9 million);
Partially offset by:
(iv) Reduction of 19.8% in interest on debt in local currency (R$ 33 million);
(v) Reduction of 20.8% in the sectoral financial liabilities update (R$ 3 million).
In 2Q17, a Net Income of R$ 43 million was registered, a reduction of 71.8% (R$ 110 million) if compared to the Net Income of R$ 154 million observed in 2Q16.
Página 39 de 66
Reference dates
Tariff Process Dates | |
Disco |
Date |
CPFL Santa Cruz |
March 22nd* |
CPFL Leste Paulista |
March 22nd* |
CPFL Jaguari |
March 22nd* |
CPFL Sul Paulista |
March 22nd* |
CPFL Mococa |
March 22nd* |
CPFL Paulista |
April 8th |
RGE Sul |
April 19th |
RGE |
June 19th |
CPFL Piratininga |
October 23rd |
Tariff Revision | |||
Distributor |
Periodicity |
Next Revision |
Cycle |
CPFL Paulista |
Every 5 years |
April 2018 |
4th PTRC |
RGE Sul |
Every 5 years |
April 2018 |
4th PTRC |
RGE |
Every 5 years |
June 2018 |
4th PTRC |
CPFL Piratininga |
Every 4 years |
October 2019 |
5th PTRC |
CPFL Santa Cruz |
Every 5 years |
March 2021* |
5th PTRC |
CPF Leste Paulista |
Every 5 years |
March 2021* |
5th PTRC |
CPFL Jaguari |
Every 5 years |
March 2021* |
5th PTRC |
CPFL Sul Paulista |
Every 5 years |
March 2021* |
5th PTRC |
CPFL Mococa |
Every 5 years |
March 2021* |
5th PTRC |
* In the Public Hearing 038/2015, held by Aneel, the revision dates have been changed to March 22. The date previously used for the adjustments of these distributors was February 3.
Annual tariff adjustments occurred in the last 12 months
|
CPFL Piratininga |
CPFL Santa Cruz |
CPFL Leste Paulista |
CPFL Jaguari |
CPFL Sul Paulista |
CPFL Mococa |
Ratifying Resolution |
2,157 |
2,211 |
2,210 |
2,213 |
2,209 |
2,212 |
Adjustment |
-12.54% |
-1.28% |
0.77% |
2.05% |
1.63% |
1.65% |
Parcel A |
-7.02% |
0.88% |
1.26% |
3.26% |
0.44% |
2.78% |
Parcel B |
1.67% |
0.48% |
1.92% |
0.62% |
0.53% |
0.67% |
Financial Components |
-7.19% |
-2.65% |
-2.41% |
-1.83% |
0.66% |
-1.80% |
Effect on consumer billings |
-24.21% |
-10.37% |
-3.28% |
-8.41% |
-4.15% |
-2.56% |
Date of entry into force |
10/23/2016 |
3/22/2017 |
3/22/2017 |
3/22/2017 |
3/22/2017 |
3/22/2017 |
Página 40 de 66
Annual tariff adjustments occurred in April and June 2017
|
CPFL Paulista |
RGE Sul |
RGE Sul |
Ratifying Resolution |
2,217 |
2,218 |
2,252 |
Adjustment |
-0.80% |
-0.20% |
3.57% |
Parcel A |
1.37% |
2.32% |
2.17% |
Parcel B |
0.76% |
0.63% |
0.20% |
Financial Components |
-2.93% |
-3.15% |
1.21% |
Effect on consumer billings |
-10.50% |
-6.43% |
5.00% |
Date of entry into force |
4/8/2017 |
4/19/2017 |
6/19/2017 |
SAIDI and SAIFI
Below we are presenting the results achieved by the distribution companies with regard to the main indicators that measure the quality and reliability of their supply of electric energy. The SAIDI (System Average Interruption Duration Index) measures the average duration, in hours, of interruption per consumer per year. The SAIFI (System Average Interruption Frequency Index) measures the average number of interruptions per consumer per year.
SAIDI and SAIFI Indexes1 | ||||||||||||||
Distributor |
SAIDI (hours) |
SAIFI (interruptions) | ||||||||||||
2013 |
2014 |
2015 |
2016 |
1Q17 |
2Q17 |
ANEEL1 |
2013 |
2014 |
2015 |
2016 |
1Q17 |
2Q17 |
ANEEL1 | |
CPFL Paulista |
7.14 |
6.93 |
7.76 |
7.62 |
7.33 |
7.23 |
7.50 |
4.73 |
4.88 |
4.89 |
5.00 |
4.89 |
4.94 |
6.53 |
CPFL Piratininga |
7.44 |
6.98 |
7.24 |
6.97 |
8.82 |
7.45 |
6.86 |
4.58 |
4.19 |
4.31 |
3.80 |
4.28 |
4.56 |
6.03 |
RGE |
17.35 |
18.77 |
15.98 |
14.44 |
14.43 |
13.88 |
12.15 |
9.04 |
9.14 |
8.33 |
7.56 |
7.82 |
7.57 |
9.10 |
RGE Sul |
14.07 |
17.75 |
19.11 |
19.45 |
17.34 |
16.24 |
11.42 |
7.39 |
8.87 |
8.42 |
9.41 |
8.84 |
8.36 |
9.11 |
CPFL Santa Cruz |
6.97 |
6.74 |
8.46 |
5.65 |
5.38 |
5.23 |
9.26 |
6.82 |
5.29 |
6.34 |
4.09 |
3.79 |
3.88 |
8.85 |
CPFL Jaguari |
5.92 |
5.41 |
6.93 |
7.10 |
7.81 |
7.26 |
8.26 |
5.43 |
4.32 |
4.61 |
6.13 |
7.34 |
6.95 |
7.43 |
CPFL Mococa |
4.86 |
6.88 |
7.04 |
10.56 |
10.30 |
9.73 |
9.95 |
4.93 |
7.31 |
5.92 |
6.63 |
6.33 |
6.04 |
8.99 |
CPFL Leste Paulista |
7.58 |
8.48 |
7.92 |
8.01 |
8.19 |
8.44 |
9.73 |
6.33 |
6.30 |
5.67 |
5.73 |
5.69 |
6.45 |
8.18 |
CPFL Sul Paulista |
9.08 |
9.69 |
11.51 |
15.20 |
12.62 |
11.11 |
9.95 |
6.71 |
7.03 |
9.47 |
11.76 |
9.98 |
9.50 |
8.29 |
1) Regulatory Agency (ANEEL) Limits – 2017.
In 2Q17, CPFL Piratininga’s SAIDI registered an increase in relation to 2Q16, due to the occasional disconnections of great impact mainly in the transmission system (transmission lines that do not belong to CPFL Piratininga).
On the other hand, CPFL Sul Paulista’s and RGE Sul's SAIDI registered a reduction in 2Q17 in relation to 2Q16, demonstrating the effectiveness of maintenance and improvement works, and also because, in 2Q17, we have more favorable weather conditions than in 2Q16, when we were still suffering the effects of what was considered the strongest El Niño of the last 15 years.
The SAIFI indicator was kept below regulatory limits in all companies (except CPFL Sul Paulista), reflecting the effectiveness of the maintenance performed and the constant investments in improvements and modernization carried out by CPFL.
Página 41 de 66
Losses
Find below the performance of CPFL distribution companies throughout the last quarters:
12M Accumulated Losses1 |
Technical Losses |
Non-Technical Losses |
Total Losses | ||||||||||||
3Q16 |
4Q16 |
1Q17 |
2Q17 |
ANEEL2 |
3Q16 |
4Q16 |
1Q17 |
2Q17 |
ANEEL2 |
3Q16 |
4Q16 |
1Q17 |
2Q17 |
ANEEL2 | |
CPFL Energia |
6.24% |
6.30% |
6.32% |
6.43% |
6.39% |
2.74% |
2.99% |
2.90% |
2.53% |
1.81% |
8.98% |
9.30% |
9.22% |
8.96% |
8.20% |
CPFL Paulista |
6.10% |
6.22% |
6.16% |
6.25% |
6.32% |
3.26% |
3.36% |
3.50% |
3.19% |
1.98% |
9.36% |
9.58% |
9.66% |
9.44% |
8.30% |
CPFL Piratininga |
5.13% |
5.14% |
5.23% |
5.41% |
5.52% |
1.92% |
2.16% |
2.28% |
2.05% |
1.45% |
7.05% |
7.30% |
7.52% |
7.45% |
6.97% |
RGE |
7.37% |
7.33% |
7.38% |
7.40% |
7.28% |
2.33% |
2.66% |
2.44% |
1.65% |
1.81% |
9.70% |
9.99% |
9.82% |
9.05% |
9.09% |
RGE Sul |
6.79% |
6.83% |
7.00% |
7.09% |
6.75% |
3.04% |
3.85% |
2.72% |
2.62% |
2.20% |
9.84% |
10.67% |
9.72% |
9.71% |
8.95% |
CPFL Santa Cruz |
8.49% |
8.65% |
8.61% |
9.15% |
7.76% |
1.31% |
1.17% |
1.38% |
0.09% |
0.51% |
9.80% |
9.82% |
9.98% |
9.24% |
8.27% |
CPFL Jaguari |
3.46% |
3.40% |
3.35% |
3.44% |
4.28% |
1.16% |
1.23% |
1.05% |
0.16% |
0.41% |
4.62% |
4.63% |
4.40% |
3.60% |
4.69% |
CPFL Mococa |
7.74% |
7.50% |
7.33% |
7.35% |
8.17% |
2.43% |
2.80% |
3.20% |
3.07% |
0.57% |
10.17% |
10.29% |
10.52% |
10.42% |
8.74% |
CPFL Leste Paulista |
8.55% |
8.39% |
8.35% |
8.36% |
7.99% |
3.26% |
2.49% |
2.22% |
1.58% |
0.82% |
11.81% |
10.88% |
10.57% |
9.94% |
8.81% |
CPFL Sul Paulista |
8.14% |
8.35% |
8.48% |
8.48% |
5.94% |
1.45% |
1.74% |
1.74% |
1.37% |
0.22% |
9.59% |
10.08% |
10.22% |
9.85% |
6.16% |
1) The figures above were adequate to a better comparison with the regulatory losses trajectory defined by the Regulatory Agency (ANEEL). In CPFL Piratininga, RGE and RGE Sul, high-voltage customers were disregarded.
2) Regulatory targets for losses are defined in the periodic tariff revision (RTP) process. CPFL Paulista, RGE and RGE Sul are on the 3rd PTRC and other distributors are in 4th PTRC.
The consolidated losses index of CPFL Energia, already considering RGE Sul in the historical series, was of 8.96% in 2Q17, compared to 9.10% in 2Q16, a reduction of 0.14 p.p. Disregarding RGE Sul, the consolidated losses index of CPFL Energia would be of 8.84% in 2Q17, compared to 8.89% in 2Q16, a reduction of 0.05 p.p.
Find below how was performance of losses in low voltage market:
12-month Accumulated Losses - LV1 |
Non-technical Losses / LV | ||||
3Q16 |
4Q16 |
1Q17 |
2Q17 |
ANEEL2 | |
CPFL Paulista |
7.63% |
7.91% |
8.27% |
7.53% |
4.61% |
CPFL Piratininga |
5.45% |
6.10% |
6.45% |
5.79% |
3.90% |
RGE |
5.72% |
6.56% |
6.03% |
4.06% |
4.41% |
RGE Sul |
7.21% |
9.23% |
6.44% |
6.20% |
4.91% |
CPFL Santa Cruz |
2.58% |
2.36% |
2.78% |
0.17% |
0.98% |
CPFL Jaguari |
4.71% |
4.93% |
4.24% |
0.63% |
1.60% |
CPFL Mococa |
4.29% |
4.94% |
5.67% |
5.47% |
0.98% |
CPFL Leste Paulista |
5.85% |
4.48% |
4.02% |
2.88% |
1.46% |
CPFL Sul Paulista |
3.23% |
3.76% |
3.77% |
2.95% |
0.46% |
1) Regulatory targets for losses are defined in the periodic tariff revision (RTP) process. CPFL Paulista, RGE and RGE Sul are on the 3rd PTRC and other distributors are in 4th PTRC.
Página 42 de 66
Consolidated Income Statement - Commercialization (R$ Million) | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Net Operating Revenue |
763 |
486 |
57.2% |
1,384 |
917 |
50.9% |
EBITDA(1) |
35 |
32 |
9.8% |
75 |
48 |
55.5% |
Net Income |
18 |
20 |
-10.0% |
35 |
34 |
3.6% |
Note:
(1) EBITDA is calculated from the sum of net income, taxes, financial result and depreciation/amortization.
Operating Revenue
In 2Q17, net operating revenue reached R$ 763 million, representing an increase of 57.2% (R$ 278 million).
EBITDA
In 2Q17, EBITDA totaled R$ 35 million, compared to R$ 32 million in 2Q16, an increase of 9.8% (R$ 3 million). Comparing 1H17 to 1H16, there was an increase of 55.5% in EBITDA figures.
Net Income
In 2Q17, net income amounted to R$ 18 million, compared to R$ 20 million in 2Q16, a decrease of 10% (R$ 2 million).
Consolidated Income Statement - Services (R$ Million) | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Net Operating Revenue |
120 |
94 |
26.7% |
223 |
180 |
24.0% |
EBITDA(1) |
22 |
19 |
16.5% |
40 |
37 |
9.0% |
Net Income |
14 |
13 |
13.9% |
25 |
23 |
8.7% |
Note:
(1) EBITDA is calculated from the sum of net income, taxes, financial result and depreciation/amortization.
Operating Revenue
In 2Q17, net operating revenue reached R$ 120 million, representing an increase of 26.7% (R$ 26 million).
EBITDA
In 2Q17, EBITDA totaled R$ 22 million, compared to R$ 19 million in 2Q16, an increase of 16.5%.
Página 43 de 66
Net Income
In 2Q17, net income amounted to R$ 14 million, compared to R$ 13 million in 2Q16, an increase of 13.9%.
Consolidated Income Statement - Conventional Generation (R$ million) | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Gross Operating Revenue |
307 |
272 |
13.1% |
590 |
533 |
10.7% |
Net Operating Revenue |
280 |
247 |
13.4% |
537 |
484 |
11.0% |
Cost of Electric Power |
(28) |
(21) |
32.1% |
(50) |
(47) |
6.7% |
Operating Costs & Expenses |
(61) |
(59) |
3.5% |
(117) |
(116) |
1.3% |
EBIT |
191 |
166 |
14.5% |
370 |
321 |
15.2% |
EBITDA |
305 |
249 |
22.3% |
594 |
516 |
15.3% |
Financial Income (Expense) |
(102) |
(87) |
18.2% |
(202) |
(170) |
18.8% |
Income Before Taxes |
171 |
149 |
15.3% |
330 |
283 |
16.7% |
Net Income |
142 |
121 |
17.4% |
274 |
231 |
18.7% |
Nota:
(1) EBITDA is calculated from the sum of net income, taxes, financial result and depreciation/amortization.
In 2Q17, Gross Operating Revenue reached R$ 307 million, an increase of 13.1% (R$ 36 million) in relation to 2Q16.
The variation in the gross operating revenue is mainly due to the following factors:
Net Operating Revenue reached R$ 280 million, registering an increase of 13.4% (R$ 33 million).
In 2Q17, the cost of electric power reached R$ 28 million, a reduction of 32.1% (R$ 7 million), due mainly to the following factors:
· Increase of 39.3% in the cost with Electric Energy Purchased for Resale (R$ 6 million), due mainly to the following factors:
Página 44 de 66
(i) Increase of R$ 6 million in the energy cost from the plants of Rio das Antas Complex (Ceran), basically due to the increase in the volume of energy purchased at 46.8%;
(ii) In CPFL Geração, increase in the cost of energy from Barra Grande HPP (Baesa) (R$ 0.9 million) due to average price increase in the energy costs form Baesa.
· Increase of 13.0% in the cost with Charges for the Use of the Transmission and Distribution System (R$ 0.8 million).
In 2Q17, operating costs and expenses reached R$ 61 million, compared to R$ 59 million in 2Q16, an increase of 3.5% (R$ 2 million), due to the variations in:
(i) PMSO item, that reached R$ 29.9 million in 2Q17, compared to R$ 27.6 million in 2Q16, registering a reduction of 8.7% (R$ 2.4 million). The table below lists the main variation in PMSO:
PMSO (R$ million) | ||||||
|
2Q17 |
2Q16 |
Variation |
1H17 |
1H16 |
Variation |
|
% |
% | ||||
PMSO |
|
|
|
|
|
|
Personnel |
(9.8) |
(10.2) |
-3.7% |
(19.9) |
(19.2) |
3.6% |
Material |
(0.7) |
(0.6) |
17.4% |
(1.3) |
(1.5) |
-13.1% |
Outsourced Services |
(9.4) |
(5.6) |
68.5% |
(14.9) |
(10.2) |
45.7% |
Other Operating Costs/Expenses |
(10.1) |
(11.2) |
-10.3% |
(18.6) |
(22.1) |
-15.7% |
GSF Risk Premium |
(1.8) |
(1.3) |
41.0% |
(3.6) |
(1.3) |
- |
Others |
(8.2) |
(9.9) |
-16.9% |
(15.0) |
(20.8) |
-27.9% |
Total PMSO |
(29.9) |
(27.6) |
8.7% |
(54.7) |
(53.0) |
3.2% |
This variation is explained mainly by the following factors:
i. Increase of 68.5% in Outsourced Services (R$ 3.8 million), mainly due to the write-off of plants projects (R$ 3.5 million)
ii. Reduction of 10.3% in Other Operating Costs/Expenses (R$ 1.2 million).
(ii) Reduction of 1.7% in Depreciation and Amortization (R$ 0.5 million).
Equity Income (R$ Million) | ||||||||
|
2Q17 |
2Q16 |
Var. R$ |
Var. % |
1H17 |
1H16 |
Var. R$ |
Var. % |
Projects |
||||||||
Barra Grande HPP |
2 |
1 |
1 |
132.2% |
4 |
8 |
(5) |
-55.6% |
Campos Novos HPP |
28 |
30 |
(2) |
-6.5% |
62 |
53 |
9 |
17.8% |
Foz do Chapecó HPP |
35 |
20 |
15 |
75.7% |
60 |
38 |
22 |
57.3% |
Epasa TPP |
18 |
18 |
0 |
0.6% |
37 |
33 |
4 |
11.6% |
Total |
83 |
69 |
14 |
20.9% |
163 |
132 |
31 |
23.1% |
Página 45 de 66
In 2Q17, Equity Income reached R$ 83 million, compared to R$ 69 million in 2Q16, an increase of 20.9% (R$ 16 million).
Barra Grande HPP (R$ 1.3 million):
· Increase of 18% in Net Revenue (R$ 2.5 million);
· Increase of 10.4% in Operating Costs and Expenses (R$ 0.8 million);
· Reduction in Net Financial Expense (R$ 0.3 million);
· Increase of the expense with Income Tax and Social Contribution (R$ 0.7 million);
· Reduction of 132.2% in Net Income (R$ 1.3 million).
Foz do Chapecó HPP (R$ 14.9 million):
· Increase of 9.9% in Net Revenue (R$ 9.3 million);
· Increase of 2.1% in Operating Costs and Expenses (R$ 0.4 million);
· Reduction of 0.9% in Depreciation and Amortization (R$ 0.1 million);
· Reduction of 14.3% in Net Financial Expense (R$ 1.8 million);
· Increase of 78.9% in the expense with Income Tax and Social Contribution (R$ 7.9 million);
· Increase of 75.7% in Net Income (R$ 14.9 million).
Campos Novos HPP (R$ 11 million):
· Increase of 4.3% in Net Revenue (R$ 3 million);
· Reduction of 62.9% in Operating Costs and Expenses (R$ 7 million);
· Reduction of 3% (R$ 0.1 million) in Depreciation and Amortization;
· Reversion of negative Net Financial Result in 2Q16 of R$ 1 million to positive Net Financial Result of R$ 2.3 million (variation of R$ 3.2 million);
· Increase of the expense with Income Tax and Social Contribution (R$ 1.2 million);
· Reduction of 6.7% in Net Income (R$ 2 million).
EPASA TPP (R$ 0.1 million):
· Reduction of 10.1% in Net Revenue (R$ 7.2 million);
· Reduction of 18.8% in operating costs and expenses (R$ 8.2 million);
· Reduction of 1.0% in Depreciation and Amortization;
· Increase of 27.0% in Net Financial Expense;
· Increase of the expense with Income Tax and Social Contribution (R$ 1.6 million);
· Maintenance of Net Income (R$ 0.1 million).
Página 46 de 66
In 2Q17, EBITDA was of R$ 305 million, compared to R$ 267 million in 2Q16, an increase of 14.3% (R$ 38 million).
Conciliation of Net Income and EBITDA (R$ million) | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Net Income |
142 |
121 |
17.4% |
274 |
231 |
18.7% |
Depreciation and Amortization |
31 |
31 |
|
61 |
62 |
|
Financial Result |
102 |
87 |
|
202 |
170 |
|
Income Tax /Social Contribution |
29 |
27 |
|
56 |
52 |
|
EBITDA |
305 |
267 |
14.3% |
594 |
515 |
15.3% |
Financial Result (Adjusted - R$ Million) | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Revenues |
||||||
Income from Financial Investments |
20 |
17 |
21.5% |
55 |
32 |
70.8% |
Additions and Late Payment Fines |
0 |
- |
0.0% |
0 |
- |
0.0% |
Fiscal Credits Update |
0 |
0 |
- |
0 |
0 |
- |
Monetary and Foreign Exchange Updates |
(6) |
32 |
- |
11 |
60 |
-81.6% |
PIS and COFINS - over Other Financial Revenues |
(1) |
(1) |
5.5% |
(3) |
(2) |
48.3% |
Others |
0 |
3 |
-95.2% |
0 |
4 |
-93.7% |
Total |
13 |
52 |
-74.1% |
64 |
97 |
-33.8% |
|
|
|
|
|||
Expenses |
|
|
|
|
||
Debt Charges |
(97) |
(120) |
-19.0% |
(212) |
(233) |
-9.1% |
Monetary and Foreign Exchange Updates |
(17) |
(10) |
72.2% |
(49) |
(17) |
180.7% |
(-) Capitalized Interest |
- |
- |
0.0% |
- |
- |
0.0% |
Sectoral Financial Liabilities Update |
- |
- |
0.0% |
- |
- |
- |
Use of Public Asset |
(0) |
(4) |
0.0% |
(4) |
(8) |
-56.5% |
Others |
(1) |
(4) |
-70.5% |
(2) |
(8) |
-72.9% |
Total |
(116) |
(138) |
-16.1% |
(266) |
(267) |
-0.1% |
|
|
|
|
|||
Financial Result |
(103) |
(87) |
18.5% |
(203) |
(170) |
19.0% |
In 2Q17, the financial result was a net expense of R$ 103 million, representing an increase of 18.5% (R$ 16 million).
· Financial Revenues moved from R$ 52 million in 2Q16 to R$ 13 million in 2Q17, a decrease of 74.1% (R$ 38 million), due to:
ü Reduction of 118.6% in monetary and foreign exchange updates (R$ 38 million), from a revenue of R$ 32 million in 2Q16 to a expense of R$ 6 million in 2Q17, due to the reductions of: R$ 39 million in the gain with the zero-cost collar derivative 3;
3 In 2015, subsidiary CPFL Geração contracted US$ denominated put and call options, involving the same financial institution as counterpart, and which on a combined basis are characterized as an operation usually known as zero-cost collar. The contracting of this operation does not involve any kind of speculation, inasmuch as it is aimed at minimizing any negative impacts on future revenues of the joint venture ENERCAN, which has electric energy sale agreements with annual restatement of part of the tariff based on the variation in the US$. In addition, according to Management’s view, the scenario was favorable for contracting this type of financial instrument, considering the high volatility implicit in dollar options and the fact that there was no initial cost for same.
Página 47 de 66
ü Reduction of 95.2% in other effects (R$ 3 million).
Partially offset by:
ü Increase of 21.5% in income from financial investments (R$ 4 million).
· Financial Expenses moved from R$ 138 million in 2Q16 to R$ 1116 million in 2Q17, a decrease of 16,1% (R$ 22 million), due to:
ü Reduction of 19% in debt charges (R$ 23 million), mainly due to the reduction in the CDI interbank rate;
ü Reduction of 94.5% in expenses of the Use of Public Asset (UBP) (R$ 4 million);
ü Reduction of R$ 3 million in other effects;
Partially offset by:
ü Increase of 72.2 % in monetary and foreign exchange updates (R$ 7 million).
In 2Q17, net income was of R$ 142 million, compared to a net income of R$ 121 million in 2Q16, an increase of 17.4%.
Consolidated Income Statement - CPFL Renováveis (100% Participation - R$ Million) | ||||||
|
2Q17 |
2Q16 |
Var. % |
1H17 |
1H16 |
Var. % |
Gross Operating Revenue |
464 |
386 |
20.2% |
873 |
694 |
25.8% |
Net Operating Revenue |
431 |
365 |
18.0% |
819 |
656 |
24.7% |
Cost of Electric Power |
(86) |
(52) |
64.2% |
(137) |
(84) |
63.8% |
Operating Costs & Expenses |
(275) |
(237) |
16.1% |
(526) |
(462) |
13.8% |
EBIT |
70 |
76 |
-7.8% |
156 |
110 |
41.0% |
EBITDA (1) |
223 |
211 |
5.7% |
459 |
379 |
21.3% |
Financial Income (Expense) |
(133) |
(128) |
3.5% |
(256) |
(262) |
-2.3% |
Income Before Taxes |
(62) |
(52) |
19.9% |
(100) |
(152) |
-33.8% |
Net Income |
(76) |
(62) |
23.7% |
(126) |
(169) |
-25.0% |
Note:
(1) EBITDA is calculated from the sum of net income, taxes, financial result and depreciation/amortization.
In 2Q17, the variations in the Income Statement of CPFL Renováveis are mainly due to the factors below:
· Commercial start-up of Pedra Cheirosa Complex in June 2017 (48.3 MW);
· Commercial start-up of Campo dos Ventos Complex and São Benedito Complex wind farms, gradually, over 2016 (231.0 MW).
Página 48 de 66
Gross Operating Revenue reached R$ 464 million in 2Q17, representing an increase of 20.2% (R$ 78 million).
Net Operating Revenue reached R$ 431 million in 2Q17, representing an increase of 18.0% (R$ 66 million). This increase is mainly due to the following factors:
Wind (R$ 15 million):
(i) Commercial startup of the Campo dos Ventos and São Benedito wind complexes in May 2016 and Pedra Cheirosa in June 2017 partially compensated by lower generation in Ceará Wind Farms (R$ 15 million) ;
SHPP (R$ 28 million):
(ii) Different seasonal adjustment strategy for physical guarantee and contractual price adjustment (R$ 15 million);
(iii) Higher revenue from the holding company mainly due to the settlement of energy purchase to rebuild guarantees and the assets’ moving average, which were offset by the cost of energy purchase (R$ 13 million);
Biomass (R$ 5 million):
(iv) As from 1Q17, biomass revenue (excluding plants with an energy sale agreement in the regulated market – Bio Pedra, Bio Ester and Bio Formosa) started being recognized based on the seasonal adjustment of the physical guarantee of agreements, while a portion of biomass generation in 1Q16 was recognized based on generation.
In 2Q17, Cost of Electric Power was of R$ 86 million, representing na increase of 64.2% (R$ 34 million). This increase is due to the following factors:
· Increase of 92.6% in the cost with Electric Energy Purchased for Resale (R$ 14 million), mainly due to the the purchase of energy to the meet exposure in the spot market and hedge;
· Increase of 18.0% in cost with Charges for the Use of the Transmission and Distribution System (R$ 4 million):
(i) Energy purchase to the meet exposure in the spot market and hedge;
(ii) GSF impact;
(iii) Acknowledgment of contractual indemnity and one-year and four-year verifications of energy sales contracts (R$ 38.6 million) that occurred in 2Q16 but didn´t occurred on 2Q17.
In 2Q17, Operating Costs and Expenses reached R$ 275 million, representing an increase of 16.1% (R$ 38 million). The main factors were:
Página 49 de 66
· PMSO item, which reached R$ 122.4 million, an increase of 19.8% (R$ 20.2 million).
The table below shows a summary of the main variations in PMSO:
PMSO (R$ million) | ||||||||
|
2Q17 |
2Q16 |
Variation |
1H17 |
1H16 |
Variation | ||
|
R$ MM |
% |
R$ MM |
% | ||||
Reported PMSO |
|
|
|
|
|
|
|
|
Personnel |
(23) |
(21) |
(2) |
10.3% |
(46) |
(41) |
(5) |
11.5% |
Material |
(3) |
(1) |
(1) |
119.9% |
(7) |
(5) |
(3) |
58.9% |
Outsourced Services |
(55) |
(43) |
(11) |
25.7% |
(101) |
(86) |
(15) |
17.9% |
Other Operating Costs/Expenses |
(42) |
(37) |
(6) |
15.1% |
(68) |
(63) |
(5) |
8.6% |
GSF Risk Premium |
(1) |
(1) |
1 |
- |
(1) |
(1) |
- |
- |
Others |
(42) |
(36) |
(6) |
17.3% |
(67) |
(61) |
(5) |
8.8% |
Total PMSO |
(122) |
(102) |
(20) |
19.8% |
(222) |
(194) |
(28) |
14.5% |
This variation is explained mainly by the following factors:
(i) Personnel: Increase of 10.3% (R$ 2.2 million), as a result of the higher number of employees and the collective bargaining agreement;
(ii) Outsourced Services: Increase of 25.7% (R$ 11.2 million) mainly due to increase in expenses with IT consulting services (45%);
(iii) Disposal of intangible asset related to SHPPs projects due to the uncertainty of its development R$ 16 million (non-recurring provision without cash effects).
· Depreciation and Amortization item, which reached R$ 114 million, an increase of 17.7% (R$ 17 million), due basically to the start-up of assets over the last 12 months.
In 2Q17, EBITDA was of R$ 236 million, compared to R$ 211 million in 2Q16, an increase of 5.7% (R$ 12 million). This variation is observed due to a higher net income that was driven by the comercial start of new assets and due to sales contracts seasonal variances. This last item was partially compensated by higher costs incoming from assets added to Company´s portifolio and also due to the intangible asset disposal related to SHPPs.
Conciliation of Net Income and EBITDA (R$ million) | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Net income |
(76) |
(62) |
23.7% |
(126) |
(169) |
-25.0% |
Amortization |
153 |
135 |
|
304 |
268 |
|
Financial Results |
133 |
128 |
|
256 |
262 |
|
Income Tax /Social Contribution |
14 |
10 |
|
26 |
17 |
|
EBITDA |
223 |
211 |
5.7% |
459 |
379 |
21.3% |
Página 50 de 66
Financial Result (IFRS - R$ Million) | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Revenues |
||||||
Income from Financial Investments |
31 |
29 |
7.0% |
67 |
55 |
21.6% |
Late payment interest and fines |
0 |
1 |
-87.5% |
1 |
2 |
-51.2% |
Judicial Deposits Update |
0 |
0 |
-79.8% |
0 |
1 |
-64.0% |
Monetary and Foreign Exchange Updates |
0 |
0 |
-18.6% |
0 |
1 |
-65.1% |
PIS and COFINS - over Other Financial Revenues |
(1) |
(2) |
-29.0% |
(3) |
(3) |
-1.4% |
Others |
3 |
5 |
-47.7% |
6 |
9 |
-30.5% |
Total |
33 |
34 |
-4.4% |
72 |
64 |
11.7% |
|
|
|
|
|||
Expenses |
|
|
|
|
||
Debt Charges |
(143) |
(146) |
-2.3% |
(293) |
(285) |
3.0% |
Monetary and Foreign Exchange Updates |
(15) |
(19) |
-19.4% |
(36) |
(41) |
-10.6% |
(-) Capitalized Interest |
6 |
18 |
-68.8% |
25 |
28 |
-11.8% |
Others |
(13) |
(16) |
-15.3% |
(23) |
(29) |
-20.9% |
Total |
(165) |
(162) |
1.8% |
(328) |
(326) |
0.5% |
|
|
|
|
|||
Financial Result |
(133) |
(128) |
3.5% |
(256) |
(262) |
-2.3% |
In 2Q17, net Financial Result was an expense of R$ 133 million, representing an increase of 3.5% (R$ 5 million) compared to 2Q16.
The main factor that affected the financial revenue (decrease of R$ 1 million) was:
(i) Lower average Interbank Rate (10.92% p.a. on 2Q17 versus 14.13% p.a. on 2Q16).
The main factor that affected the financial expense (decrease of R$ 12 million) was:
(ii) Capitalized Interest: Decrease of 68.8%, arising from the reduction of renewable energy complexes under construction that should lead the interest capitalization in 2017. While in 2016 there were 10 renewable energy complexes under interest capitalization, there are 3 complexes in 2017.
In 2Q17, Net Loss was of R$ 76 million, compared to a net income of R$ 62 million in 2Q16 (R$ 14 million), due to the intangible asset disposal related to SHPPs.
Página 51 de 66
On the date of this report, the portfolio of projects of CPFL Renováveis (100% Participation) totaled 2,103 MW of operating installed capacity and 27 MW of capacity under construction. The operational power plants comprises 39 Small Hydroelectric Power Plants – SHPPs (423 MW), 45 wind farms (1,309 MW), 8 biomass thermoelectric power plants (370 MW) and 1 solar power plant (1 MW). Still under construction there is 1 SHPP (30 MW).
Additionally, CPFL Renováveis owns wind, solar and SHPP projects under development totaling 2,224 MW, representing a total portfolio of 2,564 MW.
The table below illustrates the overall portfolio of assets (100% participation) in operation, construction and development, and its installed capacity on this date:
CPFL Renováveis - Portfolio (100% participation) | |||||
In MW |
SHPP |
Biomass |
Wind |
Solar |
Total |
Operating |
423 |
370 |
1,309 |
1 |
2,103 |
Under construction |
30 |
- |
- |
- |
30 |
Under development |
242 |
- |
1,982 |
340 |
2,564 |
Total |
695 |
370 |
3,291 |
341 |
4,697 |
Pedra Cheirosa Wind Farms – Operating
The wind farms of Pedra Cheirosa Complex (Pedra Cheirosa I and II), located in the municipality of Itarema, State of Ceará, started operations on June 27, 2017, with almost a year of anticipation. The installed capacity is of 48.3 MW and the assured energy is of 26.1 average-MW. Energy was sold through long-term contract in the 2013 A-5 auction (Pedra Cheirosa I – price: R$ 156.20/MWh | Pedra Cheirosa II – price: R$ 156.82, both in June 2017).
Boa Vista II SHPP
The Boa Vista II SHPP, project located in the State of Minas Gerais, has operations in input prediction from 1Q20. The installed capacity is of 26.5 MW and the assured energy is of 14.8 average-MW. Energy was sold through long-term contracts in the 2015 A-5 new energy auction (price: R$ 233.59/MWh – June 2017).
Página 52 de 66
(R$ thousands)
Consolidated | |||
ASSETS |
06/30/2017 |
12/31/2016 |
06/30/2016 |
CURRENT |
|||
Cash and Cash Equivalents |
4,316,090 |
6,164,997 |
5,464,783 |
Consumers, Concessionaries and Licensees |
3,949,822 |
3,765,893 |
3,444,243 |
Dividend and Interest on Equity |
13,513 |
73,328 |
13,424 |
Recoverable Taxes |
477,097 |
403,848 |
517,302 |
Derivatives |
462,563 |
163,241 |
560,057 |
Sectoral Financial Assets |
- |
- |
645,648 |
Concession Financial Assets |
10,972 |
10,700 |
9,846 |
Other Credits |
908,589 |
797,181 |
647,280 |
TOTAL CURRENT |
10,138,647 |
11,379,187 |
11,302,583 |
NON-CURRENT |
|||
Consumers, Concessionaries and Licensees |
213,407 |
203,185 |
131,118 |
Affiliates, Subsidiaries and Parent Company |
9,340 |
47,631 |
44,532 |
Judicial Deposits |
819,962 |
550,072 |
495,527 |
Recoverable Taxes |
223,475 |
198,286 |
160,071 |
Sectoral Financial Assets |
35,738 |
- |
- |
Derivatives |
340,742 |
641,357 |
686,282 |
Deferred Taxes |
863,821 |
922,858 |
495,045 |
Concession Financial Assets |
5,899,539 |
5,363,144 |
4,002,959 |
Investments at Cost |
116,654 |
116,654 |
116,654 |
Other Credits |
808,424 |
766,253 |
657,087 |
Investments |
1,532,128 |
1,493,753 |
1,384,239 |
Property, Plant and Equipment |
9,984,338 |
9,712,998 |
9,453,342 |
Intangible |
10,640,881 |
10,775,613 |
9,020,793 |
TOTAL NON-CURRENT |
31,488,450 |
30,791,805 |
26,647,651 |
TOTAL ASSETS |
41,627,097 |
42,170,992 |
37,950,234 |
Página 53 de 66
(R$ thousands)
|
Consolidated | ||
LIABILITIES AND SHAREHOLDERS' EQUITY |
06/30/2017 |
12/31/2016 |
06/30/2016 |
CURRENT |
|||
Suppliers |
2,793,507 |
2,728,130 |
1,688,003 |
Loans and Financing |
3,614,588 |
1,875,648 |
2,270,776 |
Debentures |
1,506,804 |
1,547,275 |
1,016,240 |
Employee Pension Plans |
59,027 |
33,209 |
4,268 |
Regulatory Charges |
440,213 |
366,078 |
319,311 |
Taxes, Fees and Contributions |
622,307 |
681,544 |
746,067 |
Dividend and Interest on Equity |
8,244 |
232,851 |
222,937 |
Accrued Liabilities |
155,113 |
131,707 |
123,203 |
Derivatives |
3,942 |
6,055 |
48,536 |
Sectoral Financial Liabilities |
1,069,666 |
597,515 |
42,510 |
Public Utilities |
11,936 |
10,857 |
9,941 |
Other Accounts Payable |
937,117 |
807,623 |
850,851 |
TOTAL CURRENT |
11,222,464 |
9,018,492 |
7,342,643 |
NON-CURRENT |
|||
Suppliers |
126,588 |
129,781 |
633 |
Loans and Financing |
8,973,309 |
11,168,394 |
11,102,484 |
Debentures |
6,761,375 |
7,452,672 |
5,645,524 |
Employee Pension Plans |
1,015,952 |
1,019,233 |
861,304 |
Taxes, Fees and Contributions |
23,190 |
26,814 |
- |
Deferred Taxes |
1,286,862 |
1,324,134 |
1,363,006 |
Reserve for Tax, Civil and Labor Risks |
851,385 |
833,276 |
618,034 |
Derivatives |
63,545 |
112,207 |
83,031 |
Sectoral Financial Liabilities |
219,891 |
317,406 |
473,100 |
Public Utilities |
83,868 |
86,624 |
86,152 |
Other Accounts Payable |
288,160 |
309,292 |
190,359 |
TOTAL NON-CURRENT |
19,694,127 |
22,779,832 |
20,423,625 |
SHAREHOLDERS' EQUITY |
|||
Capital |
5,741,284 |
5,741,284 |
5,741,284 |
Capital Reserve |
468,014 |
468,014 |
468,082 |
Legal Reserve |
739,102 |
739,102 |
355,347 |
Statutory Reserve - Concession Financial Assets |
760,866 |
702,928 |
640,545 |
Statutory Reserve - Strengthening of Working Capital |
545,505 |
545,505 |
392,972 |
Dividend |
- |
7,820 |
- |
Other Comprehensive Income |
(247,466) |
(234,633) |
(231,958) |
Retained Earnings |
344,254 |
- |
436,476 |
8,351,561 |
7,970,021 |
7,802,748 | |
Non-Controlling Shareholders' Interest |
2,358,945 |
2,402,648 |
2,381,218 |
TOTAL SHAREHOLDERS' EQUITY |
10,710,506 |
10,372,668 |
10,183,966 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
41,627,097 |
42,170,992 |
37,950,234 |
Página 54 de 66
(R$ thousands)
Consolidated | ||||||||
|
|
2Q17 |
2Q16 |
Variation |
|
1H17 |
1H16 |
Variation |
OPERATING REVENUES |
|
|||||||
Electricity Sales to Final Customers |
|
5,875,500 |
5,844,986 |
0.5% |
12,697,351 |
12,308,064 |
3.2% | |
Electricity Sales to Distributors |
|
1,454,121 |
639,961 |
127.2% |
2,404,924 |
1,388,217 |
73.2% | |
Revenue from building the infrastructure |
|
462,323 |
274,716 |
68.3% |
878,362 |
491,850 |
78.6% | |
Update of concession's financial asset |
|
32,391 |
64,641 |
-49.9% |
81,314 |
152,021 |
-46.5% | |
Sectorial financial assets and liabilities |
|
369,317 |
(461,979) |
- |
(195,686) |
(1,194,232) |
-83.6% | |
Other Operating Revenues |
|
962,859 |
864,071 |
11.4% |
2,020,631 |
1,666,123 |
21.3% | |
|
9,156,512 |
7,226,397 |
26.7% |
|
17,886,897 |
14,812,044 |
20.8% | |
|
||||||||
DEDUCTIONS FROM OPERATING REVENUES |
|
(3,193,963) |
(2,745,673) |
16.3% |
(6,385,569) |
(5,994,551) |
6.5% | |
NET OPERATING REVENUES |
|
5,962,549 |
4,480,723 |
33.1% |
|
11,501,327 |
8,817,493 |
30.4% |
|
||||||||
COST OF ELECTRIC ENERGY SERVICES |
|
|
||||||
Electricity Purchased for Resale |
|
(3,520,542) |
(2,313,621) |
52.2% |
(6,538,926) |
(4,479,553) |
46.0% | |
Electricity Network Usage Charges |
|
(217,974) |
(350,926) |
-37.9% |
(420,244) |
(713,014) |
-41.1% | |
|
(3,738,517) |
(2,664,546) |
40.3% |
|
(6,959,171) |
(5,192,567) |
34.0% | |
OPERATING COSTS AND EXPENSES |
|
|||||||
Personnel |
|
(336,679) |
(267,200) |
26.0% |
(669,162) |
(512,168) |
30.7% | |
Material |
|
(57,462) |
(39,271) |
46.3% |
(112,556) |
(79,056) |
42.4% | |
Outsourced Services |
|
(189,136) |
(157,568) |
20.0% |
(374,389) |
(306,788) |
22.0% | |
Other Operating Costs/Expenses |
|
(202,814) |
(166,217) |
22.0% |
(388,738) |
(338,902) |
14.7% | |
Allowance for Doubtful Accounts |
|
(39,372) |
(49,814) |
-21.0% |
(86,068) |
(95,865) |
-10.2% | |
Legal and judicial expenses |
|
(58,504) |
(49,585) |
18.0% |
(113,623) |
(108,969) |
4.3% | |
Others |
|
(104,938) |
(66,818) |
57.1% |
(189,047) |
(134,067) |
41.0% | |
Cost of building the infrastructure |
|
(465,666) |
(274,491) |
69.6% |
(880,293) |
(491,527) |
79.1% | |
Employee Pension Plans |
|
(28,112) |
(13,913) |
102.1% |
(56,944) |
(27,825) |
104.6% | |
Depreciation and Amortization |
|
(309,125) |
(250,014) |
23.6% |
(613,448) |
(496,095) |
23.7% | |
Amortization of Concession's Intangible |
|
(72,116) |
(62,020) |
16.3% |
(144,233) |
(123,907) |
16.4% | |
|
(1,661,109) |
(1,230,694) |
35.0% |
|
(3,239,762) |
(2,376,266) |
36.3% | |
|
||||||||
EBITDA1 |
|
1,027,277 |
966,300 |
6.3% |
|
2,223,042 |
2,001,069 |
11.1% |
|
||||||||
INCOME FROM ELECTRIC ENERGY SERVICE |
|
562,923 |
585,483 |
-3.9% |
|
1,302,394 |
1,248,659 |
4.3% |
|
||||||||
FINANCIAL REVENUES (EXPENSES) |
|
|||||||
Financial Revenues |
|
222,632 |
333,512 |
-33.2% |
503,343 |
645,843 |
-22.1% | |
Financial Expenses |
|
(640,799) |
(597,468) |
7.3% |
(1,357,649) |
(1,228,827) |
10.5% | |
|
(418,168) |
(263,957) |
58.4% |
|
(854,306) |
(582,984) |
46.5% | |
|
||||||||
EQUITY ACCOUNTING |
|
|||||||
Equity Accounting |
|
83,113 |
68,783 |
20.8% |
162,967 |
132,408 |
23.1% | |
Assets Surplus Value Amortization |
|
(145) |
(145) |
0.0% |
(290) |
(290) |
0.0% | |
|
82,968 |
68,638 |
20.9% |
|
162,678 |
132,118 |
23.1% | |
|
||||||||
INCOME BEFORE TAXES ON INCOME |
|
227,724 |
390,164 |
-41.6% |
|
610,766 |
797,793 |
-23.4% |
|
||||||||
Social Contribution |
|
(28,289) |
(42,502) |
-33.4% |
(68,863) |
(89,668) |
-23.2% | |
Income Tax |
(76,263) |
(107,528) |
-29.1% |
(186,610) |
(235,544) |
-20.8% | ||
|
||||||||
NET INCOME |
|
123,172 |
240,135 |
-48.7% |
|
355,293 |
472,581 |
-24.8% |
Controlling Shareholders' Interest |
|
143,475 |
259,811 |
-44.8% |
|
389,360 |
531,160 |
-26.7% |
Non-Controlling Shareholders' Interest |
|
(20,302) |
(19,676) |
3.2% |
|
(34,067) |
(58,578) |
-41.8% |
Note: (1) EBITDA is calculated from the sum of net income, taxes, financial result and depreciation/amortization, according to CVM Instruction no. 527/12.
Página 55 de 66
(R$ thousands)
Consolidated | ||||
2Q17 |
Last 12M | |||
Beginning Balance |
4,877,813 |
5,464,783 | ||
Net Income Before Taxes |
227,724 |
1,193,521 | ||
Depreciation and Amortization |
381,509 |
1,429,390 | ||
Interest on Debts and Monetary and Foreign Exchange Restatements |
515,837 |
2,313,553 | ||
Consumers, Concessionaries and Licensees |
67,897 |
(118,921) | ||
Sectoral Financial Assets |
(46,011) |
880,610 | ||
Accounts Receivable - Resources Provided by the CDE/CCEE |
48,545 |
(65,027) | ||
Suppliers |
541,606 |
752,429 | ||
Sectoral Financial Liabilities |
(247,739) |
327,117 | ||
Accounts Payable - CDE |
6,801 |
(42,146) | ||
Interest on Debts and Debentures Paid |
(477,660) |
(1,704,399) | ||
Income Tax and Social Contribution Paid |
(106,640) |
(771,296) | ||
Others |
96,388 |
108,074 | ||
780,533 |
3,109,384 | |||
Total Operating Activities |
1,008,257 |
4,302,905 | ||
Investment Activities |
||||
Value Paid in Business Combination, Net of the Acquired Cash |
- |
(1,496,675) | ||
Acquisition of Property, Plant and Equipment, and Intangibles |
(697,246) |
(2,627,788) | ||
Others |
(6,784) |
(108,972) | ||
Total Investment Activities |
(704,030) |
(4,233,435) | ||
Financing Activities |
||||
Loans and Debentures |
185,251 |
3,397,029 | ||
Principal Amortization of Loans and Debentures, Net of Derivatives |
(1,010,857) |
(4,149,523) | ||
Dividend and Interest on Equity Paid |
(17,389) |
(458,586) | ||
Others |
(22,955) |
(7,083) | ||
Total Financing Activities |
(865,950) |
(1,218,163) | ||
Cash Flow Generation |
(561,723) |
(1,148,693) | ||
Ending Balance - 06/30/2017 |
|
4,316,090 |
|
4,316,090 |
Página 56 de 66
(R$ thousands)
Conventional Generation | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
OPERATING REVENUE |
|
|
|
| ||
Eletricity Sales to Final Consumers |
- |
- |
- |
- |
- |
- |
Eletricity Sales to Distributors |
296,003 |
269,935 |
9.7% |
575,502 |
529,206 |
8.7% |
Other Operating Revenues |
11,357 |
1,821 |
523.8% |
14,175 |
3,503 |
304.7% |
|
307,360 |
271,755 |
13.1% |
589,677 |
532,709 |
10.7% |
|
|
|
|
|
|
|
DEDUCTIONS FROM OPERATING REVENUE |
(27,357) |
(24,834) |
10.2% |
(52,523) |
(48,991) |
7.2% |
NET OPERATING REVENUE |
280,003 |
246,921 |
13.4% |
537,154 |
483,717 |
11.0% |
|
|
|
|
|
|
|
COST OF ELETRIC ENERGY SERVICES |
|
|
|
|
|
|
Eletricity Purchased for Resale |
(21,495) |
(15,433) |
39.3% |
(36,889) |
(35,248) |
4.7% |
Eletricity Network Usage Charges |
(6,586) |
(5,828) |
13.0% |
(13,164) |
(11,680) |
12.7% |
|
(28,080) |
(21,261) |
32.1% |
(50,053) |
(46,928) |
6.7% |
OPERATING COSTS AND EXPENSES |
|
|
|
|
|
|
Personnel |
(9,806) |
(10,179) |
-3.7% |
(19,892) |
(19,201) |
3.6% |
Material |
(712) |
(606) |
17.4% |
(1,262) |
(1,453) |
-13.1% |
Outsourced Services |
(9,370) |
(5,559) |
68.5% |
(14,856) |
(10,195) |
45.7% |
Other Operating Costs/Expenses |
(10,051) |
(11,207) |
-10.3% |
(18,646) |
(22,122) |
-15.7% |
Employee Pension Plans |
(517) |
(322) |
60.7% |
(1,034) |
(643) |
60.7% |
Depreciation and Amortization |
(28,318) |
(28,811) |
-1.7% |
(56,491) |
(57,116) |
-1.1% |
Amortization of Concession's Intangible |
(2,492) |
(2,492) |
0.0% |
(4,983) |
(4,983) |
0.0% |
|
(61,265) |
(59,175) |
3.5% |
(117,164) |
(115,713) |
1.3% |
|
|
|
|
|
|
|
EBITDA |
304,580 |
266,570 |
14.3% |
594,379 |
515,584 |
15.3% |
|
|
|
|
|
|
|
EBIT |
190,657 |
166,484 |
14.5% |
369,937 |
321,076 |
15.2% |
|
|
|
|
|
|
|
FINANCIAL INCOME (EXPENSE) |
|
|
|
|
|
|
Financial Income |
13,683 |
51,660 |
-73.5% |
64,191 |
96,511 |
-33.5% |
Financial Expenses |
(115,926) |
(138,177) |
-16.1% |
(266,500) |
(266,765) |
-0.1% |
Interest on Equity |
- |
- |
- |
- |
- |
- |
|
(102,243) |
(86,517) |
18.2% |
(202,308) |
(170,253) |
18.8% |
|
|
|
|
|
|
|
EQUITY ACCOUNTING |
|
|
|
|
|
|
Equity Accounting |
83,113 |
68,783 |
20.8% |
162,968 |
132,408 |
23.1% |
Assets Surplus Value Amortization |
(145) |
(145) |
0.0% |
(290) |
(290) |
0.0% |
|
82,968 |
68,638 |
20.9% |
162,678 |
132,118 |
23.1% |
|
|
|
|
|
|
|
INCOME BEFORE TAXES ON INCOME |
171,382 |
148,605 |
15.3% |
330,306 |
282,941 |
16.7% |
|
|
|
|
|
|
|
Social Contribution |
(7,684) |
(7,226) |
6.3% |
(14,852) |
(13,831) |
7.4% |
Income Tax |
(21,248) |
(20,019) |
6.1% |
(41,404) |
(38,154) |
8.5% |
|
|
|
|
|
|
|
NET INCOME (LOSS) |
142,451 |
121,360 |
17.4% |
274,050 |
230,956 |
18.7% |
Controlling Shareholders' Interest |
|
|
0.0% |
|
|
0.0% |
Non-Controlling Shareholders' Interest |
|
|
0.0% |
|
|
0.0% |
Página 57 de 66
(R$ thousands)
Consolidated (100% Participation) | |||||||
|
2Q17 |
2Q16 |
Var. % |
1H17 |
1H16 |
Var. |
Var. % |
OPERATING REVENUES |
|
| |||||
Eletricity Sales to Final Consumers |
6,034 |
22,277 |
-72.9% |
29,824 |
45,477 |
(15,653) |
655.7% |
Eletricity Sales to Distributors |
455,428 |
355,365 |
28.2% |
839,596 |
639,541 |
200,055 |
0.8% |
Other Operating Revenues |
2,551 |
8,435 |
-69.8% |
3,436 |
8,745 |
(5,308) |
-56.5% |
|
464,013 |
386,077 |
20.2% |
1,774,264 |
1,693,852 |
80,412 |
4.7% |
|
|
| |||||
DEDUCTIONS FROM OPERATING REVENUES |
(32,745) |
(20,597) |
59.0% |
(54,127) |
(37,368) |
(16,759) |
6.0% |
NET OPERATING REVENUES |
431,268 |
365,480 |
18.0% |
818,729 |
656,394 |
162,336 |
4.7% |
|
|
| |||||
COST OF ELETRIC ENERGY SERVICES |
|
| |||||
Eletricity Purchased for Resale |
(62,354) |
(32,373) |
92.6% |
(89,652) |
(45,507) |
(44,145) |
-25.8% |
Eletricity Network Usage Charges |
(23,512) |
(19,918) |
18.0% |
(47,404) |
(38,154) |
(9,251) |
14.4% |
|
(85,866) |
(52,291) |
64.2% |
(137,056) |
(83,661) |
(53,395) |
-17.0% |
OPERATING COSTS AND EXPENSES |
|
| |||||
Personnel |
(23,029) |
(20,875) |
10.3% |
(45,938) |
(41,211) |
(4,728) |
21.8% |
Material |
(2,524) |
(1,148) |
119.9% |
(7,401) |
(4,658) |
(2,743) |
-47.3% |
Outsourced Services |
(54,582) |
(43,428) |
25.7% |
(100,860) |
(85,524) |
(15,335) |
21.2% |
Other Operating Costs/Expenses |
(42,270) |
(36,726) |
15.1% |
(68,006) |
(62,610) |
(5,396) |
567.5% |
Depreciation and Amortization |
(114,236) |
(97,029) |
17.7% |
(226,444) |
(192,526) |
(33,917) |
4.5% |
Amortization of Concession's Intangible |
(38,625) |
(37,932) |
1.8% |
(77,250) |
(75,732) |
(1,518) |
-3.1% |
|
(275,265) |
(237,139) |
16.1% |
(525,899) |
(462,262) |
(63,636) |
20.1% |
|
|
|
|
|
|
|
|
EBITDA (1) |
222,998 |
211,012 |
5.7% |
459,468 |
378,729 |
80,739 |
-0.8% |
|
|
| |||||
EBIT |
70,137 |
76,051 |
-7.8% |
155,775 |
110,470 |
45,304 |
-4.5% |
|
|
| |||||
FINANCIAL INCOME (EXPENSE) |
|
| |||||
Financial Income |
32,850 |
34,375 |
-4.4% |
71,740 |
64,255 |
7,485 |
1.0% |
Financial Expenses |
(165,385) |
(162,454) |
1.8% |
(327,926) |
(326,414) |
(1,512) |
11.4% |
|
(132,535) |
(128,080) |
3.5% |
(256,186) |
(262,159) |
5,973 |
14.3% |
|
|
| |||||
INCOME BEFORE TAXES ON INCOME |
(62,398) |
(52,029) |
19.9% |
(100,412) |
(151,688) |
51,277 |
1220.0% |
|
|
| |||||
Social Contribution |
(4,577) |
(4,073) |
12.4% |
(9,150) |
(6,998) |
(2,152) |
5.9% |
Income Tax |
(9,310) |
(5,577) |
67.0% |
(16,884) |
(9,873) |
(7,011) |
-15.6% |
|
|
|
|
|
|
|
|
NET INCOME |
(76,285) |
(61,678) |
23.7% |
(126,445) |
(168,559) |
42,114 |
150.1% |
Controlling Shareholders' Interest |
- |
- |
0.0% |
- |
- |
- |
0.0% |
Non-Controlling Shareholders' Interest |
- |
- |
0.0% |
- |
- |
- |
0.0% |
Página 58 de 66
(R$ thousands)
Consolidated | ||||||||
|
|
2Q17 |
2Q16 |
Variation |
|
1H17 |
1H16 |
Variation |
OPERATING REVENUE |
|
|||||||
Electricity Sales to Final Customers |
5,405,439 |
5,484,109 |
-1.4% |
|
11,766,967 |
11,608,218 |
1.4% | |
Electricity Sales to Distributors |
601,730 |
25,706 |
2240.8% |
|
887,264 |
241,244 |
267.8% | |
Revenue from building the infrastructure |
458,746 |
268,574 |
70.8% |
|
837,188 |
482,997 |
73.3% | |
Adjustments to the concession´s financial asset |
32,391 |
64,641 |
-49.9% |
|
81,314 |
152,021 |
-46.5% | |
Sectoral financial assets and liabilities |
369,317 |
(461,979) |
- |
|
(195,686) |
(1,194,232) |
-83.6% | |
Other Operating Revenues |
930,205 |
831,540 |
11.9% |
|
1,956,415 |
1,607,935 |
21.7% | |
|
7,797,827 |
6,212,592 |
25.5% |
|
15,333,462 |
12,898,184 |
18.9% | |
|
|
|
|
|
|
|||
DEDUCTIONS FROM OPERATING REVENUE |
(3,056,725) |
(2,644,909) |
15.6% |
|
(6,130,007) |
(5,803,616) |
5.6% | |
NET OPERATING REVENUE |
4,741,102 |
3,567,684 |
32.9% |
|
9,203,455 |
7,094,568 |
29.7% | |
|
|
|||||||
COST OF ELECTRIC ENERGY SERVICES |
|
|||||||
Electricity Purchased for Resale |
(2,962,995) |
(1,994,968) |
48.5% |
|
(5,595,920) |
(3,877,000) |
44.3% | |
Electricity Network Usage Charges |
(194,844) |
(330,520) |
-41.0% |
|
(372,303) |
(673,957) |
-44.8% | |
|
(3,157,840) |
(2,325,489) |
35.8% |
|
(5,968,223) |
(4,550,957) |
31.1% | |
OPERATING COSTS AND EXPENSES |
|
|
||||||
Personnel |
|
(229,825) |
(175,239) |
31.1% |
|
(453,625) |
(340,988) |
33.0% |
Material |
|
(41,826) |
(29,189) |
43.3% |
|
(80,636) |
(57,504) |
40.2% |
Outsourced Services |
|
(212,108) |
(159,514) |
33.0% |
|
(406,543) |
(303,641) |
33.9% |
Other Operating Costs/Expenses |
|
(160,745) |
(145,220) |
10.7% |
|
(323,069) |
(289,565) |
11.6% |
Allowance for Doubtful Accounts |
|
(39,114) |
(48,787) |
-19.8% |
|
(86,091) |
(94,162) |
-8.6% |
Legal and Judicial Expenses |
|
(55,091) |
(47,045) |
17.1% |
|
(100,918) |
(97,579) |
3.4% |
Others |
|
(66,541) |
(49,387) |
34.7% |
|
(136,059) |
(97,825) |
39.1% |
Cost of building the infrastructure |
|
(458,746) |
(268,574) |
70.8% |
|
(837,188) |
(482,997) |
73.3% |
Employee Pension Plans |
|
(27,595) |
(13,591) |
103.0% |
|
(55,910) |
(27,182) |
105.7% |
Depreciation and Amortization |
|
(154,293) |
(119,631) |
29.0% |
|
(305,444) |
(237,716) |
28.5% |
Amortization of Concession's Intangible |
|
(15,322) |
(5,918) |
158.9% |
|
(30,643) |
(11,835) |
158.9% |
Amortization of goodwill derived from acquisition |
|
(21,381) |
(15,035) |
42.2% |
|
(43,584) |
(30,069) |
44.9% |
|
(1,321,842) |
(931,911) |
41.8% |
|
(2,536,640) |
(1,781,498) |
42.4% | |
|
|
|||||||
EBITDA (IFRS)(1) |
|
452,417 |
450,867 |
0.3% |
|
1,078,262 |
1,041,733 |
3.5% |
|
|
|||||||
EBIT |
|
261,421 |
310,284 |
-15.7% |
|
698,591 |
762,113 |
-8.3% |
|
|
|||||||
FINANCIAL INCOME (EXPENSE) |
|
|
||||||
Financial Income |
|
163,000 |
213,754 |
-23.7% |
|
340,341 |
432,297 |
-21.3% |
Financial Expenses |
|
(328,552) |
(278,864) |
17.8% |
|
(687,509) |
(588,418) |
16.8% |
Interest on Equity |
|
|
||||||
|
(165,552) |
(65,110) |
154.3% |
|
(347,168) |
(156,121) |
122.4% | |
|
|
|||||||
INCOME BEFORE TAXES ON INCOME |
|
95,869 |
245,174 |
-60.9% |
|
351,423 |
605,992 |
-42.0% |
|
|
|||||||
Social Contribution |
|
(13,730) |
(25,827) |
-46.8% |
|
(41,808) |
(62,573) |
-33.2% |
Income Tax |
|
(38,894) |
(65,835) |
-40.9% |
|
(116,167) |
(167,886) |
-30.8% |
|
|
|||||||
Net Income (IFRS) |
|
43,244 |
153,512 |
-71.8% |
|
193,449 |
375,533 |
-48.5% |
Note: (1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization, as CVM Instruction no. 527/12.
Página 59 de 66
(R$ thousands)
Consolidated (without RGE Sul) | ||||||||
|
|
2Q17 |
2Q16 |
Variation |
|
1H17 |
1H16 |
Variation |
OPERATING REVENUE |
|
|||||||
Electricity Sales to Final Customers |
4,542,510 |
5,484,109 |
-17.2% |
|
9,739,790 |
11,608,218 |
-16.1% | |
Electricity Sales to Distributors |
486,175 |
25,706 |
1791.3% |
|
754,068 |
241,244 |
212.6% | |
Revenue from building the infrastructure |
354,728 |
268,574 |
32.1% |
|
648,506 |
482,997 |
34.3% | |
Adjustments to the concession´s financial asset |
29,599 |
64,641 |
-54.2% |
|
70,383 |
152,021 |
-53.7% | |
Sectoral financial assets and liabilities |
346,622 |
(461,979) |
- |
|
(101,732) |
(1,194,232) |
-91.5% | |
Other Operating Revenues |
796,578 |
831,540 |
-4.2% |
|
1,637,087 |
1,607,935 |
1.8% | |
|
6,556,211 |
6,212,592 |
5.5% |
|
12,748,101 |
12,898,184 |
-1.2% | |
|
|
|
|
|
|
|||
DEDUCTIONS FROM OPERATING REVENUE |
(2,560,894) |
(2,644,909) |
-3.2% |
|
(5,056,929) |
(5,803,616) |
-12.9% | |
NET OPERATING REVENUE |
3,995,317 |
3,567,684 |
12.0% |
|
7,691,172 |
7,094,568 |
8.4% | |
|
|
|||||||
COST OF ELECTRIC ENERGY SERVICES |
|
|||||||
Electricity Purchased for Resale |
(2,501,297) |
(1,994,968) |
25.4% |
|
(4,715,055) |
(3,877,000) |
21.6% | |
Electricity Network Usage Charges |
(153,820) |
(330,520) |
-53.5% |
|
(293,478) |
(673,957) |
-56.5% | |
|
(2,655,118) |
(2,325,489) |
14.2% |
|
(5,008,533) |
(4,550,957) |
10.1% | |
OPERATING COSTS AND EXPENSES |
|
|
||||||
Personnel |
|
(190,050) |
(175,239) |
8.5% |
|
(372,342) |
(340,988) |
9.2% |
Material |
|
(34,759) |
(29,189) |
19.1% |
|
(64,846) |
(57,504) |
12.8% |
Outsourced Services |
|
(181,008) |
(159,514) |
13.5% |
|
(344,310) |
(303,641) |
13.4% |
Other Operating Costs/Expenses |
|
(127,678) |
(145,220) |
-12.1% |
|
(266,792) |
(289,565) |
-7.9% |
Allowance for Doubtful Accounts |
|
(32,621) |
(48,787) |
-33.1% |
|
(71,572) |
(94,162) |
-24.0% |
Legal and Judicial Expenses |
|
(40,873) |
(47,045) |
-13.1% |
|
(77,498) |
(97,579) |
-20.6% |
Others |
|
(54,185) |
(49,387) |
9.7% |
|
(117,722) |
(97,825) |
20.3% |
Cost of building the infrastructure |
|
(354,728) |
(268,574) |
32.1% |
|
(648,506) |
(482,997) |
34.3% |
Employee Pension Plans |
|
(25,500) |
(13,591) |
87.6% |
|
(50,999) |
(27,182) |
87.6% |
Depreciation and Amortization |
|
(132,232) |
(119,631) |
10.5% |
|
(254,593) |
(237,716) |
7.1% |
Amortization of Concession's Intangible |
|
(5,918) |
(5,918) |
0.0% |
|
(11,835) |
(11,835) |
0.0% |
Amortization of goodwill derived from acquisition |
|
(7,867) |
(15,035) |
-47.7% |
|
(22,901) |
(30,069) |
-23.8% |
|
(1,059,739) |
(931,911) |
13.7% |
|
(2,037,124) |
(1,781,498) |
14.3% | |
|
|
|||||||
EBITDA(1) |
|
426,476 |
450,867 |
-5.4% |
|
934,845 |
1,041,733 |
-10.3% |
|
|
|||||||
EBIT |
|
280,460 |
310,284 |
-9.6% |
|
645,516 |
762,113 |
-15.3% |
|
|
|||||||
FINANCIAL INCOME (EXPENSE) |
|
|
||||||
Financial Income |
|
138,282 |
213,754 |
-35.3% |
|
293,851 |
432,297 |
-32.0% |
Financial Expenses |
|
(275,223) |
(278,864) |
-1.3% |
|
(584,611) |
(588,418) |
-0.6% |
Interest on Equity |
|
|
||||||
|
(136,941) |
(65,110) |
110.3% |
|
(290,760) |
(156,121) |
86.2% | |
|
|
|||||||
INCOME BEFORE TAXES ON INCOME |
|
143,519 |
245,174 |
-41.5% |
|
354,756 |
605,992 |
-41.5% |
|
|
|||||||
Social Contribution |
|
(17,040) |
(25,827) |
-34.0% |
|
(40,356) |
(62,573) |
-35.5% |
Income Tax |
|
(47,877) |
(65,835) |
-27.3% |
|
(112,105) |
(167,886) |
-33.2% |
|
|
|||||||
Net Income |
|
78,602 |
153,512 |
-48.8% |
|
202,295 |
375,533 |
-46.1% |
Note: (1) EBITDA is calculated from the sum of net income, taxes, financial result and depreciation/amortization, as CVM Instruction no. 527/12.
Página 60 de 66
(R$ thousands)
Summary of Income Statement by Distribution Company (R$ Thousands) | ||||||
CPFL PAULISTA | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Gross Operating Revenue |
3,423,379 |
3,250,680 |
5.3% |
6,629,747 |
6,676,967 |
-0.7% |
Net Operating Revenue |
2,081,236 |
1,889,646 |
10.1% |
3,973,463 |
3,697,427 |
7.5% |
Cost of Electric Power |
(1,426,951) |
(1,246,792) |
14.4% |
(2,667,529) |
(2,424,146) |
10.0% |
Operating Costs & Expenses |
(542,514) |
(456,615) |
18.8% |
(1,032,997) |
(880,551) |
17.3% |
EBIT |
111,771 |
186,238 |
-40.0% |
272,936 |
392,731 |
-30.5% |
EBITDA(1) |
169,294 |
239,477 |
-29.3% |
386,668 |
498,340 |
-22.4% |
Financial Income (Expense) |
(66,307) |
(9,916) |
568.7% |
(138,909) |
(50,405) |
175.6% |
Income Before Taxes |
45,464 |
176,323 |
-74.2% |
134,027 |
342,326 |
-60.8% |
Net Income |
23,325 |
113,545 |
-79.5% |
75,593 |
217,840 |
-65.3% |
CPFL PIRATININGA | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Gross Operating Revenue |
1,465,730 |
1,405,467 |
4.3% |
2,881,317 |
2,993,019 |
-3.7% |
Net Operating Revenue |
887,490 |
764,111 |
16.1% |
1,737,379 |
1,567,403 |
10.8% |
Cost of Electric Power |
(615,508) |
(537,274) |
14.6% |
(1,192,183) |
(1,059,256) |
12.5% |
Operating Costs & Expenses |
(189,140) |
(175,763) |
7.6% |
(379,305) |
(326,723) |
16.1% |
EBIT |
82,842 |
51,074 |
62.2% |
165,891 |
181,424 |
-8.6% |
EBITDA(1) |
106,947 |
74,135 |
44.3% |
213,853 |
227,357 |
-5.9% |
Financial Income (Expense) |
(33,224) |
(4,948) |
571.4% |
(65,729) |
(25,124) |
161.6% |
Income Before Taxes |
49,618 |
46,126 |
7.6% |
100,162 |
156,300 |
-35.9% |
Net Income |
30,493 |
29,044 |
5.0% |
61,855 |
97,427 |
-36.5% |
RGE | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Gross Operating Revenue |
1,302,689 |
1,212,466 |
7.4% |
2,518,125 |
2,521,968 |
-0.2% |
Net Operating Revenue |
793,423 |
703,132 |
12.8% |
1,521,940 |
1,412,335 |
7.8% |
Cost of Electric Power |
(482,929) |
(421,700) |
14.5% |
(900,382) |
(835,026) |
7.8% |
Operating Costs & Expenses |
(238,556) |
(219,299) |
8.8% |
(450,081) |
(419,372) |
7.3% |
EBIT |
71,938 |
62,133 |
15.8% |
171,477 |
157,937 |
8.6% |
EBITDA(1) |
112,095 |
100,275 |
11.8% |
251,219 |
233,841 |
7.4% |
Financial Income (Expense) |
(30,115) |
(45,119) |
-33.3% |
(67,601) |
(64,860) |
4.2% |
Income Before Taxes |
41,823 |
17,014 |
145.8% |
103,876 |
93,077 |
11.6% |
Net Income |
26,146 |
10,239 |
155.4% |
65,701 |
59,388 |
10.6% |
CPFL SANTA CRUZ | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Gross Operating Revenue |
158,690 |
148,871 |
6.6% |
318,285 |
304,121 |
4.7% |
Net Operating Revenue |
102,551 |
91,532 |
12.0% |
205,311 |
179,625 |
14.3% |
Cost of Electric Power |
(60,376) |
(53,166) |
13.6% |
(114,954) |
(100,746) |
14.1% |
Operating Costs & Expenses |
(30,172) |
(30,060) |
0.4% |
(60,236) |
(56,001) |
7.6% |
EBIT |
12,003 |
8,305 |
44.5% |
30,121 |
22,878 |
31.7% |
EBITDA(1) |
16,528 |
12,935 |
27.8% |
38,946 |
32,081 |
21.4% |
Financial Income (Expense) |
(2,870) |
(1,369) |
109.6% |
(6,226) |
(5,666) |
9.9% |
Income Before Taxes |
9,133 |
6,936 |
31.7% |
23,895 |
17,213 |
38.8% |
Net Income |
5,742 |
5,955 |
-3.6% |
15,062 |
12,469 |
20.8% |
Note:
(1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization.
Página 61 de 66
Summary of Income Statement by Distribution Company (R$ Thousands) | ||||||
CPFL LESTE PAULISTA | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Gross Operating Revenue |
48,488 |
43,938 |
10.4% |
94,684 |
87,602 |
8.1% |
Net Operating Revenue |
32,090 |
28,276 |
13.5% |
62,642 |
53,973 |
16.1% |
Cost of Electric Power |
(15,556) |
(14,086) |
10.4% |
(29,814) |
(27,670) |
7.7% |
Operating Costs & Expenses |
(12,484) |
(9,305) |
34.2% |
(22,923) |
(18,153) |
26.3% |
EBIT |
4,050 |
4,884 |
-17.1% |
9,905 |
8,150 |
21.5% |
EBITDA(1) |
5,571 |
6,609 |
-15.7% |
13,045 |
11,585 |
12.6% |
Financial Income (Expense) |
(765) |
(894) |
-14.4% |
(2,545) |
(3,019) |
-15.7% |
Income Before Taxes |
3,285 |
3,990 |
-17.7% |
7,360 |
5,130 |
43.5% |
Net Income |
2,078 |
3,133 |
-33.7% |
4,639 |
3,819 |
21.5% |
CPFL SUL PAULISTA | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Gross Operating Revenue |
62,391 |
59,367 |
5.1% |
123,124 |
122,606 |
0.4% |
Net Operating Revenue |
40,704 |
36,727 |
10.8% |
80,282 |
73,503 |
9.2% |
Cost of Electric Power |
(19,647) |
(19,514) |
0.7% |
(39,221) |
(39,304) |
-0.2% |
Operating Costs & Expenses |
(15,140) |
(12,836) |
17.9% |
(29,123) |
(24,700) |
17.9% |
EBIT |
5,916 |
4,376 |
35.2% |
11,937 |
9,499 |
25.7% |
EBITDA(1) |
6,938 |
6,681 |
3.9% |
13,488 |
14,096 |
-4.3% |
Financial Income (Expense) |
(1,647) |
(1,170) |
40.7% |
(4,083) |
(3,255) |
25.5% |
Income Before Taxes |
4,270 |
3,206 |
33.2% |
7,854 |
6,245 |
25.8% |
Net Income |
2,733 |
2,140 |
27.7% |
4,940 |
4,066 |
21.5% |
CPFL JAGUARI | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Gross Operating Revenue |
60,142 |
59,784 |
0.6% |
115,040 |
125,362 |
-8.2% |
Net Operating Revenue |
35,866 |
34,147 |
5.0% |
67,200 |
69,538 |
-3.4% |
Cost of Electric Power |
(23,139) |
(22,862) |
1.2% |
(43,465) |
(45,179) |
-3.8% |
Operating Costs & Expenses |
(9,890) |
(6,864) |
44.1% |
(18,716) |
(12,869) |
45.4% |
EBIT |
2,837 |
4,421 |
-35.8% |
5,019 |
11,491 |
-56.3% |
EBITDA(1) |
3,807 |
5,542 |
-31.3% |
7,015 |
13,727 |
-48.9% |
Financial Income (Expense) |
(926) |
(938) |
-1.4% |
(3,425) |
(2,110) |
62.3% |
Income Before Taxes |
1,911 |
3,483 |
-45.1% |
1,594 |
9,381 |
-83.0% |
Net Income |
1,142 |
2,111 |
-45.9% |
750 |
5,857 |
-87.2% |
CPFL MOCOCA | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Gross Operating Revenue |
34,703 |
32,019 |
8.4% |
67,780 |
66,538 |
1.9% |
Net Operating Revenue |
21,956 |
20,113 |
9.2% |
42,955 |
40,764 |
5.4% |
Cost of Electric Power |
(11,012) |
(10,094) |
9.1% |
(20,984) |
(19,631) |
6.9% |
Operating Costs & Expenses |
(6,808) |
(6,134) |
11.0% |
(13,672) |
(13,061) |
4.7% |
EBIT |
4,137 |
3,886 |
6.5% |
8,298 |
8,072 |
2.8% |
EBITDA(1) |
5,296 |
5,212 |
1.6% |
10,611 |
10,706 |
-0.9% |
Financial Income (Expense) |
(1,206) |
(809) |
49.0% |
(2,242) |
(2,481) |
-9.6% |
Income Before Taxes |
2,931 |
3,076 |
-4.7% |
6,056 |
5,592 |
8.3% |
Net Income |
1,859 |
2,325 |
-20.0% |
3,824 |
3,938 |
-2.9% |
Note:
(1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization.
Página 62 de 66
Summary of Income Statement by Distribution Company (R$ Thousands) | ||||||
RGE SUL | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Gross Operating Revenue |
1,241,616 |
- |
0.0% |
2,585,361 |
- |
0.0% |
Net Operating Revenue |
745,785 |
- |
0.0% |
1,512,283 |
- |
0.0% |
Cost of Electric Power |
(502,722) |
- |
0.0% |
(959,690) |
- |
0.0% |
Operating Costs & Expenses |
(262,103) |
- |
0.0% |
(499,517) |
- |
0.0% |
EBIT |
(19,039) |
- |
0.0% |
53,076 |
- |
0.0% |
EBITDA(1) |
25,940 |
- |
0.0% |
143,417 |
- |
0.0% |
Financial Income (Expense) |
(28,611) |
- |
0.0% |
(56,408) |
- |
0.0% |
Income Before Taxes |
(47,650) |
- |
0.0% |
(3,332) |
- |
0.0% |
Net Income |
(35,358) |
- |
0.0% |
(8,846) |
- |
0.0% |
Note:
(1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization.
Página 63 de 66
CPFL Paulista | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Residential |
2,213 |
2,221 |
-0.4% |
4,604 |
4,581 |
0.5% |
Industrial |
2,704 |
2,673 |
1.2% |
5,236 |
5,219 |
0.3% |
Commercial |
1,363 |
1,371 |
-0.6% |
2,818 |
2,846 |
-1.0% |
Others |
1,058 |
1,024 |
3.3% |
2,084 |
2,018 |
3.3% |
Total |
7,337 |
7,288 |
0.7% |
14,742 |
14,664 |
0.5% |
CPFL Piratininga | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Residential |
936 |
943 |
-0.7% |
1,987 |
1,985 |
0.1% |
Industrial |
1,577 |
1,574 |
0.2% |
3,060 |
3,174 |
-3.6% |
Commercial |
597 |
611 |
-2.2% |
1,244 |
1,250 |
-0.5% |
Others |
285 |
285 |
-0.1% |
568 |
564 |
0.6% |
Total |
3,395 |
3,412 |
-0.5% |
6,859 |
6,974 |
-1.7% |
RGE | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Residential |
640 |
649 |
-1.4% |
1,326 |
1,313 |
0.9% |
Industrial |
869 |
841 |
3.4% |
1,661 |
1,604 |
3.5% |
Commercial |
338 |
350 |
-3.4% |
710 |
727 |
-2.5% |
Others |
717 |
693 |
3.5% |
1,475 |
1,417 |
4.1% |
Total |
2,564 |
2,532 |
1.3% |
5,171 |
5,062 |
2.2% |
CPFL Santa Cruz | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Residential |
88 |
88 |
-0.6% |
182 |
182 |
0.2% |
Industrial |
55 |
51 |
6.8% |
106 |
106 |
0.1% |
Commercial |
39 |
40 |
-1.1% |
83 |
83 |
-0.3% |
Others |
91 |
89 |
1.8% |
180 |
174 |
3.7% |
Total |
272 |
268 |
1.5% |
551 |
544 |
1.2% |
CPFL Jaguari | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Residential |
22 |
22 |
0.3% |
45 |
45 |
0.5% |
Industrial |
97 |
95 |
1.8% |
191 |
194 |
-1.4% |
Commercial |
14 |
13 |
6.6% |
28 |
26 |
7.5% |
Others |
10 |
10 |
0.8% |
19 |
19 |
-0.9% |
Total |
142 |
140 |
1.9% |
284 |
284 |
-0.2% |
CPFL Mococa | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Residential |
19 |
19 |
1.9% |
39 |
38 |
1.5% |
Industrial |
17 |
16 |
8.1% |
33 |
32 |
2.2% |
Commercial |
7 |
7 |
-3.0% |
15 |
16 |
-3.0% |
Others |
15 |
15 |
-1.3% |
30 |
29 |
2.1% |
Total |
59 |
57 |
2.2% |
116 |
115 |
1.2% |
CPFL Leste Paulista | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Residential |
25 |
25 |
1.2% |
51 |
50 |
0.9% |
Industrial |
22 |
21 |
7.8% |
44 |
41 |
6.3% |
Commercial |
11 |
11 |
-0.1% |
22 |
23 |
-0.9% |
Others |
28 |
28 |
-0.6% |
53 |
50 |
6.4% |
Total |
86 |
84 |
2.0% |
170 |
164 |
3.7% |
CPFL Sul Paulista | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Residential |
36 |
36 |
-0.1% |
73 |
73 |
0.4% |
Industrial |
45 |
47 |
-3.9% |
91 |
94 |
-3.2% |
Commercial |
14 |
14 |
-2.7% |
30 |
29 |
0.5% |
Others |
23 |
23 |
0.9% |
47 |
46 |
2.6% |
Total |
118 |
120 |
-1.7% |
241 |
242 |
-0.6% |
RGE Sul (*) | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Residential |
611 |
- |
0.0% |
1,411 |
- |
0.0% |
Industrial |
760 |
- |
0.0% |
1,388 |
- |
0.0% |
Commercial |
298 |
- |
0.0% |
676 |
- |
0.0% |
Others |
465 |
- |
0.0% |
1,208 |
- |
0.0% |
Total |
2,134 |
- |
0.0% |
4,683 |
- |
0.0% |
Note: (*) Considers sales within the concession area from 2Q17 and 1H17.
Página 64 de 66
CPFL Paulista | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Residential |
2,213 |
2,221 |
-0.4% |
4,604 |
4,581 |
0.5% |
Industrial |
694 |
858 |
-19.1% |
1,383 |
1,742 |
-20.6% |
Commercial |
1,060 |
1,221 |
-13.2% |
2,221 |
2,547 |
-12.8% |
Others |
1,018 |
990 |
2.9% |
2,005 |
1,951 |
2.8% |
Total |
4,985 |
5,290 |
-5.8% |
10,212 |
10,821 |
-5.6% |
CPFL Piratininga | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Residential |
936 |
943 |
-0.7% |
1,987 |
1,985 |
0.1% |
Industrial |
308 |
460 |
-33.0% |
630 |
922 |
-31.7% |
Commercial |
443 |
542 |
-18.2% |
950 |
1,111 |
-14.5% |
Others |
248 |
267 |
-7.3% |
497 |
535 |
-7.2% |
Total |
1,935 |
2,211 |
-12.5% |
4,063 |
4,554 |
-10.8% |
RGE | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Residential |
640 |
649 |
-1.4% |
1,326 |
1,313 |
0.9% |
Industrial |
309 |
362 |
-14.7% |
597 |
711 |
-16.0% |
Commercial |
309 |
330 |
-6.2% |
654 |
690 |
-5.2% |
Others |
712 |
693 |
2.7% |
1,466 |
1,417 |
3.4% |
Total |
1,969 |
2,033 |
-3.2% |
4,042 |
4,131 |
-2.1% |
CPFL Santa Cruz | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Residential |
88 |
88 |
-0.6% |
182 |
182 |
0.2% |
Industrial |
27 |
38 |
-28.4% |
54 |
81 |
-33.4% |
Commercial |
36 |
39 |
-7.9% |
77 |
83 |
-7.1% |
Others |
91 |
89 |
1.8% |
180 |
174 |
3.7% |
Total |
242 |
255 |
-5.0% |
493 |
519 |
-5.0% |
CPFL Jaguari | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Residential |
22 |
22 |
0.3% |
45 |
45 |
0.5% |
Industrial |
52 |
71 |
-26.1% |
104 |
142 |
-26.9% |
Commercial |
13 |
13 |
4.5% |
28 |
26 |
6.5% |
Others |
10 |
10 |
0.8% |
19 |
19 |
-0.9% |
Total |
97 |
115 |
-15.4% |
196 |
233 |
-15.7% |
CPFL Mococa | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Residential |
19 |
19 |
1.9% |
39 |
38 |
1.5% |
Industrial |
8 |
9 |
-14.3% |
16 |
17 |
-7.3% |
Commercial |
7 |
7 |
-5.3% |
15 |
16 |
-4.8% |
Others |
15 |
15 |
-1.3% |
30 |
29 |
2.1% |
Total |
49 |
50 |
-3.1% |
99 |
100 |
-0.9% |
CPFL Leste Paulista | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Residential |
25 |
25 |
1.2% |
51 |
50 |
0.9% |
Industrial |
7 |
7 |
10.0% |
15 |
14 |
7.5% |
Commercial |
11 |
11 |
-0.1% |
22 |
23 |
-0.9% |
Others |
28 |
28 |
-0.6% |
53 |
50 |
6.4% |
Total |
71 |
70 |
1.1% |
141 |
136 |
3.3% |
CPFL Sul Paulista | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Residential |
36 |
36 |
-0.1% |
73 |
73 |
0.4% |
Industrial |
22 |
24 |
-9.6% |
47 |
48 |
-2.3% |
Commercial |
14 |
14 |
-2.7% |
30 |
29 |
0.5% |
Others |
23 |
23 |
0.9% |
47 |
46 |
2.6% |
Total |
95 |
98 |
-2.6% |
197 |
197 |
0.3% |
RGE Sul (*) | ||||||
|
2Q17 |
2Q16 |
Var. |
1H17 |
1H16 |
Var. |
Residential |
611 |
- |
0.0% |
1,411 |
- |
0.0% |
Industrial |
249 |
- |
0.0% |
463 |
- |
0.0% |
Commercial |
260 |
- |
0.0% |
600 |
- |
0.0% |
Others |
465 |
- |
0.0% |
1,206 |
- |
0.0% |
Total |
1,585 |
- |
0.0% |
3,679 |
- |
0.0% |
Note: (*) Considers sales to the captive market from 2Q17 and 1H17.
Página 65 de 66
(R$ million)
Net debt - Generation projects |
||||||||||
June-17 |
Majority-controlled subsidiaries (fully consolidated) |
Investees accounted for under the equity method |
Total | |||||||
CERAN |
CPFL Renováveis |
Lajeado |
Subtotal |
Enercan |
Baesa |
Chapeco-ense |
Epasa |
Subtotal | ||
Borrowings and debentures |
299 |
6,459 |
36 |
6,794 |
219 |
127 |
1,402 |
246 |
1,994 |
8,788 |
(-) Cash and cash equivalents |
(276) |
(732) |
(25) |
(1,032) |
(375) |
(21) |
(220) |
(95) |
(712) |
(1,744) |
Net Debt |
23 |
5,727 |
12 |
5,762 |
(156) |
106 |
1,181 |
152 |
1,282 |
7,044 |
CPFL stake (%) |
65% |
51.61% |
59.93% |
- |
48.72% |
25.01% |
51% |
53.34% |
- |
- |
Net Debt in generation projects |
15 |
2,956 |
7 |
2,978 |
(76) |
26 |
602 |
81 |
634 |
3,611 |
Reconciliation |
||||||||||
CPFL Energia |
||||||||||
Gross Debt |
20,121 |
|||||||||
(-) Cash and cash equivalents |
(4,316) |
|||||||||
Net Debt (IFRS) |
15,805 |
|||||||||
(-) Fully consolidated projects |
(5,764) |
|||||||||
(+) Proportional consolidation |
3,573 |
|||||||||
Net Debt (Pro Forma) |
13,613 |
|||||||||
EBITDA Pro Forma reconciliation (2Q17 LTM) | ||||||||||
EBITDA - Generation projects |
||||||||||
2Q17LTM |
Majority-controlled subsidiaries (fully consolidated) |
Investees accounted for under the equity method |
Total | |||||||
CERAN |
CPFL Renováveis |
Lajeado |
Subtotal |
Enercan |
Baesa |
Chapeco-ense |
Epasa |
Subtotal | ||
Net operating revenue |
299 |
1,739 |
33 |
2,071 |
571 |
219 |
802 |
577 |
2,169 |
4,240 |
Operating cost and expense |
(68) |
(677) |
(26) |
(771) |
(123) |
(104) |
(148) |
(355) |
(731) |
(1,502) |
EBITDA |
232 |
1,062 |
7 |
1,300 |
448 |
115 |
654 |
221 |
1,438 |
2,738 |
CPFL stake (%) |
65% |
51.61% |
59.93% |
- |
48.72% |
25.01% |
51% |
53.34% |
- |
- |
Proportional EBITDA |
151 |
548 |
4 |
703 |
218 |
29 |
334 |
118 |
699 |
1,401 |
Reconciliation |
||||||||||
CPFL Energia - 2Q17 LTM |
||||||||||
Net income |
762 |
|||||||||
Amortization |
1,429 |
|||||||||
Financial Results |
1,725 |
|||||||||
Income Tax /Social Contribution |
432 |
|||||||||
EBITDA |
4,348 |
|||||||||
(-) Equity income |
(342) |
|||||||||
(-) EBITDA - Fully consolidated projects |
(1,324) |
|||||||||
(+) Proportional EBITDA |
1,420 |
|||||||||
(+) RGE Sul - Jul-16 to Jun-17¹ |
48 |
|||||||||
EBITDA Pro Forma |
4,151 |
|||||||||
Net Debt / EBITDA Pro Forma |
3.28x |
Notes:
1) In accordance with financial covenants calculation in cases of assets acquired by the Company.
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CPFL ENERGIA S.A. | ||
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By: |
/S/ GUSTAVO ESTRELLA
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Name: Title: |
Gustavo Estrella Chief Financial Officer and Head of Investor Relations |
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.