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Geti 1 q10_call_final

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  • 1. 1Q10 Results May, 2010

2. 1Q10 Main highlightsOperational Operational Energy generation 55% higher than physical guarantee Raise of 8% on billed energy with AES Eletropaulo due to bilateral contract seasonality, to be offset throughout this yearFinancial Financial Ebitda reached R$ 378 million, with margin of 82% Decision favorable to the Company on legal dispute with Furnas created a positive impact of R$ 43 million in financial result Net income of R$ 239 million, presenting an increase of 11% compared to 1Q09 (R$ 211 million without considering the non-recurring event abovementioned)Subsequent Subsequent 1st debenture issuance of the Company, amounting R$ 900 million and pre-payment of the Event Event only existing debt on May, 4th 20102 3. Reservoirs level and CAR1 AES Tiet reservoirs levels closed the quarter with an average of 97% and the stored energy in the Southeast Submarket stayed well above the CAR throughout 1Q10 Reservoirs Level - (%) Risk Aversion Curve Southeast Submarket 80 % of Maximum Stored Energy6098.9 97.2 92.0 92.485.3 83.04080.8 72.9 65.5 72.654.547.320 -Southeast South Northeast North JanAprJul Oct2009 2010 CAR20091Q09 1Q101 Risk Aversion CurveSource: National Electric System Operator ONS3 4. Operational availability Maintaining high operational availability with a level of generated energy 55% higherthan the physical guarantee Energy Generation MW Avg.1155%130%121%119% 115%1,979112%1,6651,545 1,5121,4671,425 20052006200720082009 1Q10Generation MW Avg.Generation / Physical Guarantee 1- Generated energy divided by the amount of period hours 4 5. Billed energy Billed energy was 12% higher due to seasonality of bilateral contract with AES Eletropaulo and greater volume of secondary energy in 1Q10Billed Energy GWh1 Spot Market2 12 %4,1643,705 589 MRE2 335 511 49 563 Other Bilateral Contracts19 2,787 3,015 AES Eletropaulo 1Q091Q10 1 - Including energy purchased 2 Considers the difference between the sale and purchase volume 5 6. Investments Investments of R$ 6 million in maintenance and modernization of power plants andR$ 1 million in environmental projects in 1Q10Investments R$ million Investments 1Q10 New SHPPs 67Investments6% 2%9 5957 18%2013 75%58 44 39 11Equip. and Maint. New SHPPs 87 ITEnvironment200820092010(e) 1Q09 1Q10 6 7. Projects to comply with the expansion obligation Opportunities to increase installed capacity Concluded Concluded 6 MW of co-generation through biomass, contracted for 15 years (as of 2010) (PPA1) (PPA1) Under 7 MW of hydro generation through SHPPs2 in Jaguari Mirim River Under Construction Construction So Jos SHPP (4 MW) has an estimated start-up in 2H10 So Joaquim SHPP (3 MW) has an estimated start-up in 2H10 Under Under 500 MW of thermo generation through natural gas Development Development Location has been defined in Nov/2009 Initiation of the environmental licensing process, with entry on CETESB in March/2010 22 MW of hydro generation through SHPPs, in stage of technical and economic feasibility studies1 Power Purchase Agreement2 Small Hydro Power Plant 7 8. Net Revenue Increase of 8% in volume and 1.53% in the energy price sold to AES Eletropaulocontributed to raise of 10%in net revenue Net Revenue R$ million46010%417 1Q09 1Q10 8 9. Costs and expenses Costs were impacted by biannual lock maintenance, increase in head counting and salary, and a complement on the provision regarding lawsuit with AES SulDepreciation and Amortization- 7% 98 92 16Operational Provisions 165Other Costs and Expenses127 30 Energy Purchase, Transmission48 48and Connection Charges,and Water Resources1Q091Q10 1 - Personnel, Material, Third Party Services and Other Costs and Expenses9 10. Ebitda change 11% raise in Ebitda, with 82% of margin Ebitda R$ million 82% 82%11%Ebitda Margin378342 1Q09 1Q10 10 11. Financial result Positive impact of R$ 43 million in financial result due to Companys favorable decision in a lawsuit with Furnas and a negative impact of the IGP-M of R$ 39 million in the Companys debtFinancial Result R$ million - 66%31 1Q09 1Q10 11 12. Net income Company registered a net income of R$ 239 million in 1Q10 and will distribute 100% of the result100 %100 %11 % 239 Pay-out 2151Q091Q1012 13. Cash flow generation Growth of 24% in operating cash flow generationConsolidated Managerial Cash Flow R$ million1Q094Q091Q10Initial Cash840 652 615Operational Cash Generation 297 297 368Investments (11)(24) (8)Net Financial Expenses (6)(14)(12)Net Amortization(53)(59)(60)Income Tax (253)(18) (328)Free Cash Flow(25) (183) (41)Dividends and Interest on Equity0 221 0Final Cash814 615 57413 14. DebtReduction of the debt cost from IGP-M + 10% p.a. to CDI + 1.20% p.a. Net Debt R$ billion Overlook on the 1st debenture issuance R$ 900 million0.3x0.3x0.3x0.3x 5 years term CDI + 1.20% a.a. Payment on semiannual basis0.40.40.40.3 Fixed amortization on the 3rd, 4th, and 5th years Objective: pre-payment of Eletrobras debt2008 2009 1Q091Q10Net DebtNet Debt / Ebitda14 15. Capital market37% growth in daily average volume traded in 1Q10AES Tiet X Ibovespa X IEE Daily Avg. Volume - R$ thousandLast 12 Months 13,70810,187 190 170+ 72%8,160 150+ 45% 8,086 9,756 130+ 10% 110 5,468 9070 2,6923,952 Mar-092 Jun-09Sep-09 Dec-09 Mar-102,101 1Q10 110 20082009 1Q10+ 3%Preferred Common 100 0% - 3%GETI4 90 IBOVIEEDec-093 Jan-10Feb -10Mar-1015 1 Index: 03/31/09= 1002 - Index: 12/31/09 =100 16. 1Q10 Results The statements contained in this document with regard to the business prospects, projected operating and financial results, and growth potential are merely forecasts based on the expectations of the Companys Management in relation to its future performance. Such estimates are highly dependent on market behavior and on the conditions affecting Brazils macroeconomic performance as well as the electric sector and international market, and they are therefore subject to changes. .

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