Enel Distribuição Rio increases investments in 9M 2016

Published on Thursday, 17 November 2016

MAIN FINANCIAL HIGHLIGHTS (millions of Brazilian reais)
  9M 2016 9M 2015 Change
Revenues 5.469,9 6.290,2 -13%
EBITDA 219,9 251,9 -13%
EBIT 32,2 91,7 -65%
Net income (199.1) (31,2) -%
Net debt 2.976,0 2.352,9 +26%
Capex 571,5 558,5 +2%

Carlo Zorzoli, Enel’s Country Manager for Brazil, said: “Ampla’s financial results are still affected by the country´s economic downturn, that has had a strong impact on the Brazilian distribution sector. Against this backdrop, energy sales and transport are stagnating and energy losses are increasing in Ampla’s concession area. We are in any case investing in network modernisation with the aim of improving service quality."

Niterói, November 3rd, 2016 – Ampla's Board of Directors has approved the company’s financial results for the nine months of 2016.

  • Revenues down by 13%, mainly due to recognition of regulatory liabilities* resulting from lower electricity purchase costs in 9M 2016, to be deducted from 2017 tariff adjustment.    

- Slightly down by 0.4% in energy sales and transport, as a consequence of Brazil’s economic slowdown.

- Effects partially offset by March 2015 and March 2016 tariff adjustments approved by ANEEL.

  • EBITDA down by 13%, mainly due to increase in provisions for non-payment of electricity bills and higher energy losses in the period, mainly attributable to the adverse macroeconomic environment in Rio de Janeiro State and Brazil as a whole.
  • EBIT down by 65%, mainly due to higher depreciation and amortisation charges as a result of the increase in the asset base originated by investment in the period.
  • Net income down, mainly due to lower EBIT and rises in financial charges driven by higher debt to cover investments in modernising distribution network and improving service quality.
  • Net Financial Debt up by 26% due to increase in loans received mainly from banks and parent company Enel Brasil, to finance Ampla`s investment plan and working capital.

- Debt further grew due to higher inflation and taxes, increasing financial costs of contracts.

  • Capex increased by 2%, mainly focused on modernisation of distribution network to improve Ampla’s service quality.


*Order 4,621 enacted by Brazilian regulator 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

  1S2016 1S2015 Variação
Energy Sale and Transport (GWh) 8.740 8.778 -0,4%
Customers 3.042.583 2.952.404 +3,1%
  • Energy sales and transport were slightly down due to lower electricity consumption per capita in regulated (-3.3%) market that was in turn mainly attributable to Brazil’s economic slowdown

- Partially offset by the increase in number of customers (+3.1%).

- Of c. 90,100 new customers, 17,400 were residential.

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