Eletrobras reports Q2 profit despite rising costs

Friday, August 11, 2017

Brazilian federal power utility holding Eletrobras reported a sharp decline in second quarter earnings, impacted by costs related to its voluntary redundancy program.

Net income fell to 306mn reais (US$96mn) from 12.7bn reais a year earlier, according to a securities filing on Friday.

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Adjusted earnings, excluding non-recurring items, reached 162mn reais compared to a 157mn-real deficit a year earlier. Ebitda fell 87% to 3.0bn reais.

Eletrobras said 2,097 employees had accepted redundancy packages by July 14, leading to operating costs of 706mn reais.

In addition to staff cuts, Eletrobras is selling distribution and generation assets as it suffers the knock-on effects of Brazil's economic downturn and the sprawling Lava Jato corruption scandal.