Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Bolsa de Valores de Sao Paulo  >  CPFL Energia S.A.    CPFE3   BRCPFEACNOR0

CPFL ENERGIA S.A.

(CPFE3)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector news

CPFL Energia S A : Apresentação 3T20_webcast_EN_vf

11/13/2020 | 08:55am EST

3Q20 Results

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

Initial Guidelines

Simultaneous Translation into English:

Q&A Session

1st Step: Click on

1st Step: Click on

2nd Step: Choose

2nd Step: ID yourself

Your audio will be opened for you to ask the question live directly to the executives

Inform your name and institution

For the English version of the presentation, please access: www.cpfl.com.br/ri

3

Increase of 1.6% in load in the concession area

EBITDA of R$ 1,954 million, increase of 20.8% Net Income of R$ 1,352 million, increase of 80.8%

Net Debt of R$ 13.3 billion and leverage of 1.93x Net

Debt/EBITDA1

Debts prepayment (CPFL Renováveis): BNDES debts prepayment (R$ 2 billion - trapped cash of R$ 915 million), concluded in Aug-20

Investments of R$ 770 million, increase of 25.0%

Note: (1) Financial covenants criteria.

4

3Q20 Highlights

CPFL Piratininga tariff adjustment, in Oct-20: +9.82% for

the consumers and +17.02% in Parcel B

Release of funds of COVID Account in 3Q20, in the amount of

R$ 1,280 million

CPFL Renováveis' integration plan through the Corporate Restructuring of the CPFL Group companies: concluded on Sep 30th

Release of our 2020-2024 Strategic Plan of Sustainability in Oct/20

CPFL in Hospitals Program: (i) energy

efficiency: R$ 50.5 million invested up to Sep-20; and (ii) 48 hospitals with concluded actions

3Q20 Energy Sales

Load1 in the concession area | GWh

Sales in the concession area | GWh

Sales by consumption segment | GWh

Free Client

+1.6%

Free Client

+0.4%

Captive

Captive

+0.4%

16,434

16,703

15,963

16,023

(184)

6,042

409

(201)

36

5,726

+5.5

5,441

5,520

+1.5%

-0.4%

15,963

+8.8%

-3.0%

-8.0%

+1.3%

16,023

10,708

10,660

10,522

-0.2%

10,503

3 Q 1 9

3 Q 2 0

3 Q 1 9

3 Q 2 0

3Q19

Resid.

Indust

Commerc.

Others

3Q20

Performance of main industrial and commercial activities in the

Main impacts by segment | %

concession

area

Resid

Ind

Com

Others

Total

11.4%

Billing calendar

2.1

0.1

1.5

0.7

1.0

4.7%

4.6%

2.5%

2.3%

Temperature

1.7

0.0

0.6

0.0

0.6

Migrations

0.0

-1.7

0.0

-0.8

-0.8

48.2% of

-3.1%

55.8% of

-7.2%

DG

-0.8

-0.1

-1.2

-0.3

-0.5

Industrial

Commercial

Macroeconomics/

Consumption

Consumption

5.8

-1.3

-8.9

1.8

0.2

-17.7%

Others

Food

Chemicals

Rubber &

Vehicles

Retail

Wholesale

Telecom Human Health

Plastic

Business

Trade

Care

5

1) Load net of losses; 2) If excluding the migration of large consumers, the load and the sales within the concession area in 3Q20 would have the following variations: +2.3% and +1.2%, respectively;

9M20 Energy Sales

Load1 in the concession area | GWh

Sales in the concession area | GWh

Sales by consumption segment | GWh

Free Client

Free Client

-3.8%

-3.1%

Captive

Captive

-3.8%

51,035

49,435

50,320

48,419

298

(1.371)

17,079

-1.3%

16,849

16,369

-2.3%

15,997

(797)

(31)

50,320

48,419

33,956

+2.0%

-7.5%

-9.5%

-0.4%

-4.0%

32,585

33,951

32,422

-4.5%

9 M 1 9

9 M 2 0

9 M 1 9

9 M 2 0

9 M 1 9

Resid.

Indust

Commerc.

Others

9 M 2 0

Performance of main industrial and commercial activities in the

Main impacts by segment | %

concession

area

4.8%

Resid

Ind

Com

Others

Total

2.5%

0.1%

Billing calendar

0.6

-0.1

0.6

0.1

0.3

-3.8%

Temperature

-1.5

0.0

-1.5

-0.2

-0.7

-4.7%

-9.3%

-7.3%

Migrations

0.0

-1.4

0.0

-2.1

-0.9

48.4% of

55.5% of

DG

-0.8

-0.2

-1.3

-0.4

-0.6

Industrial

Commercial

Macroeconomics/

Consumption

-21.8%

Consumption

3.6

-5.8

-7.2

2.2

-1.9

Others

Food

Chemicals

Rubber &

Vehicles

Retail

Wholesale

Human Health Telecom

Plastic

Business

Trade

Care

6

1) Load net of losses; 2) If excluding the migration of large consumers, the load and the sales within the concession area in 9M20 would have the following variations: -2.6% and -2.9%, respectively;

Delinquency and Energy Losses

Delinquency

ADA | R$ MM

-42.9%

79.3

80.0

61.1

57.9

-56.0%

70.0

60.0

39.5

34.9

50.0

1.28%

40.0

0.87%

30.0

0.49%

0.77%

0.51%

20.0

10.0

-

3Q19

4Q19

1Q20

2Q20

3Q20

Collection actions | Power cuts (thousands)

-33.9%

Sep-20:

589

591

603

287 k

(record)

172.0%

389

143

3Q19 4Q19 1Q20 2Q20 3Q20

  • Resolution 878 - Prohibition of power cuts from March 24th to July 31th.

Energy Losses

Losses | Last 12 months

9.31%9.06%

CPFL Energia

ANEEL Limits

8.27%8.20%

Sep-19Sep-20

  • Differences in calendar (billing days x load)¹:
    • Sep-20:+1.0 day
    • Sep-19:-1.7 day
  • Intensified actions against losses:
    • 144.8 GWh of recovered energy
    • 175,000 inspections
    • Installation of telemetry with inspection

1) Excluding the differences in the billing calendar, Losses in the 3Q20 would have a variation of +0.15% (9.05% in 3Q19 vs 9.20% in 3Q20)

7

3Q20 Generation

PLD

GSF

(SE/CW - R$/MWh)

-57.2%

+21.3%

214

54%

65%

92

3Q19

3Q20

3Q19

3Q20

Wind - Generation (MWh)

HPPs1 - Flow - m3/s

SHPPs - Flow - m3/s

+88.4%

+27.3%

760

16.0

20.4

403

3Q193Q19

3Q203 20

3Q19

3Q20

Wind - Availability

+11.0%

1,3301,476

94.9%

+2.2% 97.0%

3Q193Q20

3Q193Q20

8

3Q20 Results

EBITDA performance by segment

R$ million+20.8% +336 MM

226(1)11

1,618

101 1,954

EBITDA breakdown by segment

Comm, Services &

Renewable Others

Generation2% 25%

Conventional Distribution

Generation55%

3Q19

Distribution

Comm, Services

Conventional

Renewable

3Q20

& Others

Generation

Generation

18%

Distribution: R$ 1,072 million (+26.7%)

Market / tariff (+R$ 140 MM)

Concession financial asset (+R$ 58 MM)

IPCA1

PMSO2 (+R$ 39 MM)

3Q19

3Q20

0.31%

0.86%

ADA (+R$ 26 MM)

CPFL Piratininga RAB Appraisal Report - 3Q19 (-R$42 MM) Others (+R$ 5 MM)

Comm., Services & Others: R$ 49 million (-3.0%)

  • Commercialization (-R$17 MM) - lower margin
  • Services (+R$ 17 MM) - mainly CPFL Serviços

and CPFL Eficiência

  • Others (-R$1 MM)

1) From June to August of each year, according to concession financial asset calculation; 2) If disregarding expenses with private pension plan (-R$ 14 MM), PMSO was R$ 52

9 MM lower than in 3Q19.

3Q20 Results

EBITDA performance by segment

R$ million+20.8% +336 MM

EBITDA breakdown by segment

101 1,954

Comm, Services &

226(1)11

1,618

3Q19

Distribution

Comm, Services

Conventional

& Others

Generation

Conventional Generation: R$ 349 million (+3.2%)

  • Lower expenses with GSF (+R$ 11 MM)

Energy contract readjustments (+R$ 4 MM)

  • Others (-R$4 MM)

Renewable Others

Generation2%

25%

Conventional

Distribution

Generation

Renewable

3Q20

55%

18%

Generation

Renewable Generation: R$ 485 million (+26.3%)

  • Higher wind farms generation/availability

(+R$ 31 MM)

Lower expenses with GSF (+R$ 26 MM)

Energy contract readjustments (+R$ 26 MM)

  • PMSO (+R$ 18 MM)

10

3Q20 Results

Net Income performance

+80.8%

+604 MM

R$ million

291

1,352

336

(60)

36

748

3Q19

EBITDA

Financial Results

Depreciation /

Income tax

3Q20

Amortization

FinancialFinancialResultsResults

  • MTM (-R$ 67 MM)
  • Re-IPOresources in 3Q19 (-R$56 MM)

Update in sectoral financial A&L (-R$20 MM)

  • Expenses with net debt (+R$ 99 MM)
  • Others (-R$16 MM)

Income Tax

  • Recognition of tax credits

in CPFL Renováveis (+R$

271 MM)

11

9M20 Results

Performance of EBITDA and Net Income

R$ million

+4.4%

+205 MM

132 (34) 24

4,654

83 4,858

+43.7%

+826 MM

211 2,718

420 (10)

1,892 205

+4.9%

-22.4%

+2.4%

+10.1%

9M19

Distribution Comm, Services

Conventional

Renewable

9M20

& Others

Generation

Generation

EBITDA

  • Increase in Distribution segment (+4.9%), mainly favored by good performance in market/tariff and lower PMSO
  • Renewable Generation reflecting contract inflation adjustments and higher availability, partially offset by a slightly weaker wind performance

+4.4%

-74.6%

+0.8%

-21.8%

9M19

EBITDA

Financial

Depreciation / Income tax

9M20

Results Amortization

Net Income

  • Financial results favored by lower interest rates/decrease in the cost of debt (R$ 321 million) and MTM (R$ 198 million)
  • Recognition of tax credits in CPFL Renováveis (+R$ 271 MM), partially offset by higher income tax due to better results

12

CAPEX 3Q20

2%

20%

Distribution

  • R$ 601 million
  • Increase of 9.2% if compared to 3Q19
  • Expansion, upgrade and maintenance of the electric system

Renewable Generation

  • R$ 98 million
  • Implementation of the projects Gameleira and Cherobim

Total Investment of

R$ 770 million

in 3Q20

Increase of 25.0%

compared to 3Q19

Transmission

  • R$ 54 million
  • Beginning of the projects sold in 2018 auctions:
    • Maracanaú
    • Sul I and Sul II

Conventional

Generation

  • R$ 1 million
  • Operational infrastructure and maintenance improvements

78%

Services

  • R$ 16 million
  • Upgrade of management and operational support systems
  • Acquisition and replacement of vehicles and equipment

13

Indebtedness

Leverage l Financial covenants criteria | R$ billion

16.3

16.8

15.1

15.0

14.5

13.3

3.19 3.05

Adjusted Net

2.52

2.21

2.29

1.93

Debt

1

/Adjusted

EBITDA2

2017

2018

2019

1Q20

2Q20

3Q20

Adjusted EBITDA1,2

4,531

5,342

6,677

6,846

6,548

6,895

R$ Million

Gross debt cost3 IFRS | End of period

Nominal

Real

7.5%

6.8%

6.2%

3.8%

5.4%

4.2%

3.6%

3.6%

1.8%

2.1%

2.0%

0.5%

2018

3Q19

2019

1Q20

2Q20

3Q20

Gross debt breakdown by indexer3

Debt Amortization Schedule | IFRS End of period

IFRS | 3Q20

Cash Coverage:

1.92x Short-Term

Amortization(12M)

21%

77%

2.613

2%

6.758

4.738

2.903

2.831

CDI TJLP

Inflation

622

Cash

2020

2021

2022

2023

1) LTM EBITDA; 2) Adjusted by the proportional consolidation as well as considering SGBP's loan agreement; 3) Financial debt (-) hedge.

Average Tenor: 2.68 years

Short-Term (12M): 20% of total

Short Term

Long Term

3.600

2.725

20242025+

14

Social Actions

"CPFL nos Hospitais"

Largest energy efficiency program in

hospitals in Brazil

Up to: 200 hospitals | R$ 150 MM

  • 42,095 replaced lamps
  • 2,807 kWp in installed capacity of PV systems
  • R$ 2.34 million/year of estimated savings
  • 4.84 GWh/year of expected solar energy (enough to supply 2,476 residences)
  • 363 tCO2 of expected avoided emissions (equivalent to planting 2,179 trees)

Total amount invested up to Sep-20:R$ 50.5 million. 48 Hospitals with concluded actions

11th Commitment of Sustainability

Plan

Programs to develop the future of children and adolescents through sport and culture, contributing to reducing the levels of social vulnerability

  • "Instituto Vanderlei Cordeiro de Lima" - democratization of sport benefiting 240 athletes (Investment: R$ 1.5 million)
  • "Instituto Anelo" - music courses for ~ 500 students in 2020 (Investment: R$ 450,000)
  • "Programa Semear" - Stimulus to volunteering for CPFL employees, benefiting 10 NGOs in 2020, with ~ 1,500 volunteers in SP and RS (Investment: R$ 103,900)

13th Commitment of

Sustainability Plan

Donations

during COVID-19

pandemic

  • R$ 5 MM donated to 20 hospitals across the concession area for Covid-19tests, masks and cleaning materials
  • R$ 1 MM donated to Saving Lives Program of BNDES
  • State Grid also donated 120 thousand masks to the state government of São Paulo and the city of Campinas

15

15

1st Step: Click on

2nd Step: ID yourself

Your audio will be opened for you to ask the

question live directly to the executives

Inform your name and institution

16

17

© CPFL Energia 2020. All rights reserved.

Disclaimer

CPFL Energia SA published this content on 13 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 November 2020 13:54:05 UTC


© Publicnow 2020
All news about CPFL ENERGIA S.A.
01/18CPFL ENERGIA S A : Notice to Shareholders - Date scheduled for the Annual Genera..
PU
01/05CPFL ENERGIA S A : Minutes of the 433rd Meeting of the Board of Directors
PU
01/04CPFL ENERGIA S A : Notice to the Market - CPFL Energia Integrates ICO2
PU
2020CPFL ENERGIA S A : Notice to the Market - CPFL Energia Integrates ISE 2
PU
2020CPFL ENERGIA S A : Minutes of the 430th Meeting of the Board of Direct
PU
2020CPFL ENERGIA S A : Minutes of the 432nd Meeting of the Board of Directors
PU
2020CPFL ENERGIA S A : Minutes of the 430th Meeting of the Board of Directors
PU
2020CPFL ENERGIA S A : Ata da 428ª RCA
PU
2020CPFL ENERGIA S A : Notice to the Market - CPFL Energia Integrates ISE 2021
PU
2020CPFL ENERGIA S A : Apresentação 3T20_webcast_EN_vf
PU
More news
Financials
Sales 2020 28 147 M 5 272 M 5 272 M
Net income 2020 3 176 M 595 M 595 M
Net Debt 2020 14 168 M 2 654 M 2 654 M
P/E ratio 2020 11,2x
Yield 2020 6,05%
Capitalization 35 121 M 6 553 M 6 578 M
EV / Sales 2020 1,75x
EV / Sales 2021 1,67x
Nbr of Employees 9 716
Free-Float 16,3%
Chart CPFL ENERGIA S.A.
Duration : Period :
CPFL Energia S.A. Technical Analysis Chart | CPFE3 | BRCPFEACNOR0 | MarketScreener
Technical analysis trends CPFL ENERGIA S.A.
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 9
Average target price 37,18 BRL
Last Close Price 30,38 BRL
Spread / Highest target 35,6%
Spread / Average Target 22,4%
Spread / Lowest Target 2,04%
EPS Revisions
Managers and Directors
NameTitle
Gustavo Estrella Chief Executive Officer & Director
Bo Wen Chairman
Luís Henrique Ferreira Pinto Vice President-Regulated Operations
Yue Hui Pan Chief Financial Officer & IR Officer
Antonio Kandir Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
CPFL ENERGIA S.A.-6.36%6 353
NEXTERA ENERGY12.60%170 185
ENEL S.P.A.0.71%102 731
IBERDROLA, S.A.-0.13%86 821
ORSTED A/S0.04%85 212
DUKE ENERGY CORPORATION1.47%68 378