Eletrobras posts record loss

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Thursday, March 31, 2016

Brazil's state-run electric holding company Eletrobras reported its biggest ever annual loss on Thursday, jolted by asset write-downs, litigation costs and an ailing local economy.

The Rio de Janeiro-based company posted a 2015 net loss of 14.4bn reais (US$4bn), having recorded a 3bn-real shortfall in 2014.

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It was the ninth-worst full-year result by a Brazilian company and surpassed Eletrobras' previous record loss of 8.58bn reais in 2014.

Eletrobras said it was impacted by costs for "legal contingencies" totaling 7bn reais, distribution losses of 5.1bn reais and a 6bn-real impairment charge.

The largest write-down was a 5bn-real charge for the Angra 3 nuclear power project (pictured), which has suffered from repeated delays and cost overruns amid a corruption investigation.

Eletrobras said revenue from energy sales fell due to lower spot-market electricity prices.

The company posted a fourth-quarter loss of 10.3bn reais compared to 1.20bn-real shortfall a year earlier.

*Largest annual losses by Brazilian companies before Thursday (SOURCE: Economatica)

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