1Q19 Results
© CPFL Energia 2019. All rights reserved.
Disclaimer
This presentation may contain statements that represent expectations about future events or results according to Brazilian and international securities regulators. These statements are based on certain assumptions and analyses made by the Company pursuant to its experience and the economic environment, market conditions and expected future events, many of which are beyond the Company's control. Important factors that could lead to significant differences between actual results and expectations about future events or results include the Company's business strategy, Brazilian and international economic conditions, technology, financial strategy, developments in the utilities industry, hydrological conditions, financial market conditions, uncertainty regarding the results of future operations, plans, objectives, expectations and intentions, among others. Considering these factors, the Company's actual results may differ materially from those indicated or implied in forward-looking statements about future events or results.
The information and opinions contained herein should not be construed as a recommendation to potential investors and no investment decision should be based on the truthfulness, timeliness or completeness of such information or opinions. None of the advisors to the company or parties related to them or their representatives shall be liable for any losses that may result from the use or contents of this presentation.
This material includes forward-looking statements subject to risks and uncertainties, which are based on current expectations and projections about future events and trends that may affect the Company's business.
These statements may include projections of economic growth, demand, energy supply, as well as information about its competitive position, the regulatory environment, potential growth opportunities and other matters. Many factors could adversely affect the estimates and assumptions on which these statements are based.
2
Increase of1.9% in load in the concession area(growths of residential and commercial classes)
EBITDAofR$ 1,531 million, growth of12.1%
Net IncomeofR$ 570 million, growth of36.0%
Net debt ofR$ 14.9 billion and leverage of2.70x Net Debt/EBITDA1
Investments ofR$ 445 million
CPFL Paulista's tariff adjustment, inApr-19:(i) increase of9.63% of the parcel B, from R$ 2,310 million to R$ 2,532 million, and
(ii) average effect of +8.66%to be perceived by the consumers
31) Financial covenants criteria.
1Q19 Highlights | EBITDA1
EBITDA, from R$ 1,366 MM in 1Q18 to
R$ 1,531 MM in 1Q19, increase of 12.1%
EBITDA by Segment | 2018
Commerc., Services & Others
Renewable4%
12%
Conv. Generation
20%Distribution
64%
Commerc., Services & Others| R$ million
+165.3%
Distribution| R$ million
+23.6%
1Q181Q19
Conventional Generation| R$ million
-6.5%
1Q181Q19
Renewable Generation| R$ million
-15.7%
1Q18 | 1Q19 | 1Q18 | 1Q19 |
41) EBITDA is calculated from the sum of net income, taxes, financial result, depreciation/amortization, as CVM Instruction no. 527/12.
1Q19 Energy Sales
Highlights
Increase in load1in the concession area (+1.9%)
Increase in sales2in the concession area (+3.2%)
Increases inResidential(+8.4%) and Commercial(+5.1%) classes, due to the effect of the temperature, mainly in the months of January and February
Losses:from 8.82%in 1Q18 and 9.03%in 4Q18 to 8.84%in 1Q19
Sales in the concession area| GWh
+3.2%
17,185 17,731
5,201 +2.3%5,323
11,983 +3.5%12,407
1Q181Q19
Free Client Captive
Market Breakdown in | Comparison by Region | Sales by consumption | |||||||
the concession area | | | Sales in the conc. | segment | GWh | |||||||
1Q19 | area3 | ||||||||
17% | 32% | ||||||||
17% | +3.7% | +3.2% | 17,185 | 432 | (51) | 149 | 16 | 17,731 | |
34% | +8.4% | -0.9% | +5.1% | +0.5% | +3.2% | ||||
+4.1% | +4.1% | ||||||||
Residential | Industrial | +4.9% | +1.0% | 1Q18 | Resid. | Indust. | Commerc. | Others | 1Q19 |
Commercial | Others | ||||||||
1)Load net of losses; 2) If excluding the consumption of a large consumer of the steel industry, that migrate to the Basic Network, the sales in the concession area5would be: +3.8%, free client: +4.5%; and industrial class: +1.0%; 3) Region Sales Info (EPE)
Generation | Scenario
NIPS Reservoir Levels | % | Southeast Reservoir Levels | % | ||
ONS projection for | May 6th, 2019 | ONS projection for | May 6th, 2019 |
(current storage): | May 31st, 2019 | (current storage): | |
May 31st, 2019 | |||
49.2% | |||
45.6% | |||
53.9 | 48.6 | 50.9 | 53.9 | ||
44.0 | 45.1 | 47.7 | |||
43.1 | |||||
39.9 | 42.6 | ||||
32.0 | |||||
32.4 | 33.9 | ||||
30.8 | 29.4 31.3 | 29.8 | |||
29.6 | |||||
20.6 | 26.6 | 27.6 | |||
16.8 | |||||
1 | 1 | ||||
PLD (SE/CW) Evolution | GSF - Projection | ||||
The MRE adjustment factor verified in March was 1.367 | |||||
The outlook is that hydraulic generation will be below the physical | |||||
guarantee from May on. |
2
61) Period from 1997 to 2018; 2) BE - PLDMay-19
1Q19 Results
Net Revenue | EBITDA | Net Income | |||
11.8% | 12.1% | 36.0% | |||
R$ 753 million | R$ 165 million | R$ 151 million | |||
1Q18 | 1Q19 | 1Q18 | 1Q19 | 1Q18 | 1Q19 |
R$ 6,375 | R$ 7,127 | R$ 1,366 | R$ 1,531 | R$ 419 | R$ 570 |
million | million | million | million | million | million |
Main EffectsKey FactorsObserved | EBITDA: |
EBITDA:
Distribution: total var. of +R$ 187 MM
•Market/tariff (+R$ 213 MM)
•PIS/COFINS recoverable (+R$ 34 MM)
•PMSO1(-R$ 78 MM):
ADA(-R$ 42 MM)
Legal and judicial expenses(-R$ 20 MM)
Renewable Generation: total var. of -R$ 36 MM
•PPA seasonal., net of secondary energy(-R$ 28 MM)
•Lower wind farms generation(-R$ 25 MM)
•Start-upof Boa Vista II SHPP - increase of energy available that was settled on the CCEE (+R$ 13 MM)
Commerc., Serv. & Others: total var. of +R$ 35 MM
•Commercialization: margin gain (+R$ 23 MM)
•Services: margin gain (+R$ 13 MM)
Conventional Generation: total var. of -R$ 21 MM
•GSF - BAESA - Compensation agreement related to 2018(-R$ 17 MM)
•EPASA overhaul(-R$ 10 MM)
•Inflation effect over the contracts (+11 MM)
Net Income:
Financial Result: total var. of +R$ 87 MM
•Debt charges2- mainly due to the reduction in the indebtedness (+R$ 56 MM)
•MTM (+R$ 33 MM)
71) Includes Private Pension Fund; 2) Net of income from financial investments, including sectoral financial assets and liabilities.
Indebtedness
Leverage lFinancial covenants criteria | R$ billion
14.5 | 16.3 | 14.9 | ||||
13.0 | 12.2 | 13.2 | ||||
3.49 | 3,41 | 3.21 | ||||
3.20 | ||||||
Adjusted Net Debt1 | 3.05 | |||||
/Adjusted EBITDA2 | 2.70 | |||||
2014 | 2015 | 2016 | 2017 | 2018 | 1Q19 | |
Adjusted EBITDA1,2 | 3,736 | 3,584 | 4,117 | 4,531 | 5,342 | 5,481 |
R$ Million | ||||||
Gross debt cost3lIFRS | end of period
Nominal
Real
13.2% | 13.5% | |||||||||||
10.8% | ||||||||||||
6.8% | 8.0% | 7.5% | 7.6% | |||||||||
4.1% | 2.3% | 4.9% | 3.6% | |||||||||
2.9% | ||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 1Q19 |
Gross debt breakdown by indexer3| IFRS | 1Q19
8 | 1) LTM EBITDA; 2) Adjusted by the proportional consolidation; 3) Financial debt (-) hedge. |
© CPFL Energia 2019. All rights reserved.
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CPFL Energia SA published this content on 08 May 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 08 May 2019 21:57:08 UTC