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MarketScreener Homepage  >  Equities  >  Bolsa de Valores de Sao Paulo  >  EDP - Energias do Brasil S.A.    ENBR3   BRENBRACNOR2

EDP - ENERGIAS DO BRASIL S.A.

(ENBR3)
  Report
End-of-day quote. End-of-day quote Bolsa de Valores de Sao Paulo - 01/22
19.46 BRL   -1.12%
01/22EDP ENERGIAS DO BRASIL S A : Quiet Period 4Q20/2020 Results
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01/21EDP ENERGIAS DO BRASIL S A : 4Q20/2020 Market Release
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01/19EDP ENERGIAS DO BRASIL S A : Shareholder Information
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EDP Energias do Brasil S A : 3Q20 Results Release

11/24/2020 | 03:19pm EST

3Q20 Release

NET

NET

EBITDA

INCOME

DEBT

R$ 300 M

R$ 5,801 M

R$ 699 M

MARKET

TREASURY

TOTAL

CAP

SHARES

SHARES

R$ 10.6 B

4,312,246

606,850,394

CONTROLLING

FREE FLOAT SHAREHOLDER

48.1%*

51.2%

*excluding treasury shares

and LTI

INVESTOR

RELATIONS

www.edp.com.br/ri

ri@edpbr.com.br+ 55 11 2185-5907

EARNINGS WEBINAR AND WEBCAST

October 29, 2020

The Conference will be held in Portuguese with simultaneous translation into English.

Portuguese

English

Noon (Brasília)

11:00 a.m. (Eastern Time)

Link to Webinar

3:00 p.m. (GMT)

Portuguese

Link to Webinar with

simultaneous translation into

English

São Paulo, October 28, 2020 - EDP ENERGIAS DO BRASIL S.A. ("EDP Energias do Brasil", "Company" or "Group"), a listed company of B3's Novo Mercado (ticker: ENBR3) announces today its financial and operational results for the third quarter of 2020 and year-to-date 2020. The information is shown in consolidated form, pursuant to the accounting practices adopted in Brazil and the International Financial Reporting Standards (IFRS), based on reviewed financial information. The independent auditors did not review the operational information.

3Q20 Release

A MESSAGE FROM THE CHIEF EXECUTIVE

The first nine months of 2020 were marked by the Company's continued efforts to mitigate the impacts of the pandemic which afflicts not just Brazil, but the entire world. EDP has been acting in a timely manner since early March, following a three-phase strategy: in the early months, the "React" phase - during which all measures required were taken to protect people and the company and support the fight against the pandemic. After that, came the "Recover" phase and, finally, the "Reshape" phase.

After the "React" phase to the coronavirus pandemic, already in the second quarter the Company launched a Results Recovery Plan comprising over 50 initiatives intended to fully recover from the impacts of the pandemic on the fiscal year's financial and economic performance. It has thus been able to maintain the resiliency of its results and operational performance, in an effort that has yielded positive results for the second consecutive quarter. One indication of this is that EBITDA adjusted for non-recurring and non-cash effects was R$ 590.1 million, up 19.4% YoY, and R$ 1.7 billion in the year to date, which represents 3.7% consolidated growth. Adjusted income was R$ 207.2 million in the quarter, up 22.3%, and R$ 639.3 million in the year to date, up 4.3%.

As the "Recover" phase advances, EDP put "reshape" measures into motion to find new business opportunities even in the pandemic- stricken year. To this end, it defined seven areas of action: "Growth", "Client", "Digital", "Innovation", "Green Recovery", "Diversity & Inclusion", and "Workplace Redesign".

Despite the crisis, our Solutions area made important gains with the delivery of important solar energy projects. By June, the Company had already announced the completion of a set of four solar plants telecommunications company Claro. In September, EDP delivered to Johnson & Johnson its first photovoltaic plant in South America. It is no accident that, in the third quarter, EDP was recognized with two of Brazil's top innovation awards. The Company was named most innovative in the electric energy industry by the Valor Econômico newspaper's Valor Inovação Brasil survey, done in partnership with consulting firm Strategy&; and was named the company most engaged with and committed to the industry's open innovation ecosystem according to the 100 Open Corps Rankings.

In our other areas of operations, signs of gradual economic recovery are already making themselves felt. In Distribution, the volume of distributed energy was down 3.5% due to the preventive and social distancing measures adopted nationwide, resulting in manufacturing output retraction, reduced retail sales, and rising unemployment. Even so, compared with previous quarters, a consumption recovery trend can already be seen because of the gradual reopening of retail and industrial recovery. Also noteworthy in this segment has been EDP Espírito Santo's tariffs adjustment process, resulting in a 6.02% increase in average consumer tariffs. At EDP São Paulo, the tariff adjustment approved on October 20 led to a 4.82% increase in average consumer tariffs.

On Transmission, despite the temporary construction stoppage, we were able to resume work in June and make important gains, such as completion of the last stretch of Lot 11, in the state of Maranhão, in early August, 12 months ahead of the regulatory deadline. We also made headway in the other Lots, mitigating delays and maintaining our early-delivery schedules.

On the Trading and Generation segments, integration of the two units' energy management continues to produce consistent results, covering the period's hydrological risk. Given the current scenario, our hedge for the year is significantly allocated to the beginning of the second half, when a greater hydro generation deficit is expected.

Because of the cost-cutting effort that is one of the Recovery Plan's main aspects, recurring PMTO was down 7.5% in the quarter and 4.0% in the year to date. In addition, since the pandemic began, the Company reinforced its Funding Plan in an amount over BRL 1.7 billion for cash reinforcements through the year. We maintained our capital structure optimization, with consolidated leverage at 2.0X Net Debt/ EBITDA by the end of the quarter.

Special mention should be made of the Company's decision, already communicated with the disclosure of the results for the previous quarter, to adjust the Dividend Policy and Capital Structure, in order to clearly demonstrate the value generation for shareholder with the minimum payment proposal of R$ 1.00 per share and maintaining the minimum leverage of 2.0x Net Debt/ EBITDA and target between 2.5 and 3.0x. In the same period, the Company opened a share buyback program, and so far, has been acquired more than 3 million shares.

It should also be noted that the Company executed the Statement of Acceptance of Standardizing Resolution ("Resolução Normativa") 885/2020, which governs the COVID Account, requesting an amount of BRL 574 million, 92% of the total stipulated for EDP.

As concerns the ESG - Environment, Social and Governance agenda, the highlight is EDP Brasil's Biodiversity pledge. The initiative endorses commitment to preventing, mitigating, compensating, and generating and sharing of biodiversity information until 2030. The pledge is an initiative of the Brazilian Business Council for Sustainable Development (CEBDS).

Additional highlights on the environmental dimension include the Pledges that the Company had already executed with the United Nations Organization on the World Environment Day - "1.5ºC Business Ambition" and "Recover Better", which align our objectives with the pursuit of reduced greenhouse gas emissions, as a means to fight the effects of global warming. On the social dimension, we emphasize the Diversity and Inclusiveness Program, which the Company has been developing over the past quarters to develop a fairer, more diverse and more inclusive organization.

Certain in the belief that we are prepared to navigate this period of great challenges facing Brazil, we remain sharply focused on our agenda of creating value for all stakeholders. We deeply regret all lives lost in the pandemic and will continue to do everything within our power to help Brazilian society deal with this difficult situation. As far as EDP is concerned, our focus will be to gain continuous strength to come out of this crisis more competitive.

Miguel Setas

2

3Q20 Release

Period Highlights (R$ thousands)

3Q20

3Q19

Chg.

Gross Margin

1,022,738

1,122,223

-8.9%

PMTO

(257,257)

(275,694)

-6.7%

PMTO Recurrent1

(245,670)

(265,064)

-7.3%

EBITDA

699,408

778,797

-10.2%

Adjusted EBITDA

590,144

494,315

19.4%

Net Income

299,772

353,968

-15.3%

Adjusted Net Income

207,175

169,369

22.3%

Capex2

477,512

562,174

-15.1%

Net Debt3

5,801,294

5,557,131

4.4%

9M20 9M19

2,999,796 3,034,033

(809,822) (809,142)

(761,412) (792,842)

1,984,471 2,040,188

1,720,890 1,660,070

808,045 838,563

639,251 612,654

1,227,729 1,631,564

5,801,294 5,557,131

Chg.

-1.1%

0.1%

-4.0%

-2.7%

3.7%

-3.6%

4.3%

-22.8%

4.4%

Note: 1 Recurring PMTO excludes B2C, Solar, Transmissão, EDP Varejista, EDP Ventures, EDP GRID and Soluções. 2 Capex considers consolidated assets 3 Debt balance as of Sep/30/2020 and Dec/31/2019. Cash considers cash, securities, and the escrow deposit associated with transmission financing.

3

3Q20 Release

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Disclaimer

EDP - Energias do Brasil SA published this content on 28 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 November 2020 20:18:05 UTC


© Publicnow 2020
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Financials
Sales 2020 12 911 M 2 362 M 2 362 M
Net income 2020 976 M 178 M 178 M
Net Debt 2020 6 479 M 1 185 M 1 185 M
P/E ratio 2020 12,4x
Yield 2020 4,83%
Capitalization 11 725 M 2 148 M 2 145 M
EV / Sales 2020 1,41x
EV / Sales 2021 1,34x
Nbr of Employees 3 380
Free-Float 48,1%
Chart EDP - ENERGIAS DO BRASIL S.A.
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EDP - Energias do Brasil S.A. Technical Analysis Chart | ENBR3 | BRENBRACNOR2 | MarketScreener
Technical analysis trends EDP - ENERGIAS DO BRASIL S.A.
Short TermMid-TermLong Term
TrendsNeutralBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 10
Average target price 22,12 BRL
Last Close Price 19,46 BRL
Spread / Highest target 29,6%
Spread / Average Target 13,7%
Spread / Lowest Target -2,36%
EPS Revisions
Managers and Directors
NameTitle
Miguel Nuno Simões Nunes Ferreira Setas President & Director-Investor Relations
António Luís Guerra Nunes Mexia Chairman
Henrique Manuel Marques Faria Lima Freire Vice President-Finance
Henrique Manuel Marques Faria Lima Freire Vice President-Finance
Pedro Sampaio Malan Independent Director
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