Carlo Zorzoli, Enel’s Country Manager for Brazil, said: “We have grown in Ceará by improving our financial and operational performance despite Brazil’s economic slowdown. We are continuously investing in the modernisation of the distribution network while also managing to further improve service quality.”
Fortaleza, February 22nd, 2017 – Enel Distribuição Ceará’s Board of Directors has approved the company’s financial results as of the end of 2016.
· Revenues slightly increased by 1.1%, mainly due to 2.2% increase in energy sales and transport, the 2015 extraordinary tariff adjustment and tariff review, and the tariff adjustment approved in April 2016 by national electricity regulator ANEEL.
- Partially offset by the recognition of regulatory liabilities resulting from lower electricity purchase costs in 2016 due to improved water availability in the country, to be deducted in the 2017 tariff adjustment.
· EBITDA up 4% mainly due to higher revenues and lower energy purchase costs.
- Partly offset by increase in provisions for non-payment of electricity bills, as a consequence of Brazil’s adverse macroeconomic environment.
· EBIT up 2.7%, mainly due to higher depreciation and amortisation charges as a result of the increase in the asset base originating from investment in the period. Those investments were aimed at modernising the distribution network to improve service quality as well as connecting new customers.
· Net income up 8.3% mainly due to EBITDA increase.
- The increase in net income was also due to the lower net financial expenses resulting from the reduction in net debt.
· Net financial debt down by 26%, thanks to higher cash flow in 2016 that was mainly due to the cash in of accounts receivable and lower energy purchase costs which resulted from better water availability in the country.
· Energy sales and transport grew due to +3.5% increase in number of customers.
- Of c. 133,500 new customers, 20,114 were residential clients and 19,866 rural businesses.
· System Average Interruption Duration (SAIDI) and System Average Interruption Frequency (SAIFI) showed respective improvements of 28.1% and 26% in 2016, as a result of the investments to improve the network.
 Order 4,621 enacted by ANEEL in November 2014, which allows distribution companies to record in their financial results non-manageable costs that are higher or lower than those recognised in the current tariff
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