Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____.
São Paulo, November 10, 2016 – CPFL Energia S.A. (BM&FBOVESPA: CPFE3 and NYSE: CPL), announces its 3Q16 results. The financial and operational information herein, unless otherwise indicated, is presented on a consolidated basis and is in accordance with the applicable legislation. Comparisons are relative to 3Q15, unless otherwise stated.
CPFL ENERGIA ANNOUNCES ITS 3Q16 RESULTS
Indicators (R$ Million) |
3Q16 |
3Q15 |
Var. |
9M16 |
9M15 |
Var. |
Sales within the Concession Area - GWh |
13,454 |
13,749 |
-2.1% |
41,504 |
43,054 |
-3.6% |
Captive Market |
9,549 |
9,877 |
-3.3% |
30,239 |
31,108 |
-2.8% |
Free Client |
3,905 |
3,872 |
0.8% |
11,264 |
11,946 |
-5.7% |
Gross Operating Revenue(1) |
7,006 |
8,393 |
-16.5% |
21,175 |
24,566 |
-13.8% |
Net Operating Revenue(1) |
4,412 |
4,715 |
-6.4% |
12,586 |
14,652 |
-14.1% |
EBITDA (IFRS)(2) |
1,075 |
1,080 |
-0.5% |
2,924 |
2,745 |
6.5% |
Adjusted EBITDA(3) |
985 |
965 |
2.0% |
2,835 |
2,801 |
1.2% |
Net Income (IFRS) |
269 |
280 |
-3.9% |
742 |
513 |
44.7% |
Adjusted Net Income(4) |
235 |
312 |
-24.8% |
763 |
783 |
-2.5% |
Investments(5) |
649 |
223 |
191.3% |
1,615 |
962 |
67.9% |
Notes:
(1) Disregard construction revenues;
(2) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result, depreciation/amortization, as CVM Instruction no. 527/12;
(3) Adjusted EBITDA considers CPFL Energia stake in each of the generation assets and excludes the non-recurring effects and the exchange variation in Itaipu invoices;
(4) Adjusted Net Income considers CPFL Energia stake in each of the generation assets and excludes the non-recurring effects;
(5) Includes investment related to the construction of transmission lines of CPFL Transmissão Piracicaba and Morro Agudo and, according to the requirements of IFRIC 12, it was recorded as “Financial Asset of Concession” (in non-current assets).
3Q16 HIGHLIGHTS
• Reduction in the load in the concession area (-2.3%);
• Contracted demand is being preserved: +0.6% Off Peak and +1.3% Peak (Sep-16 x Sep-15);
• Reduction of 5.6% in adjusted Net Revenue and increase of 2.0% in adjusted EBITDA;
• Tariff adjustment of CPFL Piratininga, in Oct-16, with an average effect of -24.18% to be perceived by consumers; the impact of the increase of parcel B was of +9.60%;
• CVA balance: transition from a sectoral financial asset of R$ 170 million in Jun-16 to a sectoral financial liability of R$ 388 million in Sep-16;
• Investments of R$ 649 million;
• Net debt of R$ 11.4 billion and leverage of 3.07x Net Debt/EBITDA;
• Commercial start-up of 83 generation units in Campo dos Ventos and São Benedito wind complexes (174.3 MW) until Nov-16;
• Beginning of CPFL’s management in RGE Sul, considering the completion of the acquisition of the distribution company on Oct 31st;
• CPFL Energia’s sale to State Grid: announcement of the sale decision of Previ and Bonaire stakes (following Camargo Corrêa) – transaction pending the ANEEL approval;
• PM 735 was approved by the Lower and Upper Houses and is awaiting presidential approval.
|
3Q16 Results | November 10, 2016 |
INDEX
2.1) Sales within the Distributors’ Concession Area. 5
2.1.1) Sales by segment – Concession Area. 6
2.1.2) Sales to the Captive Market 6
2.2) Contracted Demand in % (high voltage) 7
2.3) Generation Installed Capacity. 7
3) INFORMATION ON INTEREST IN COMPANIES AND CRITERIA OF FINANCIAL STATEMENTS CONSOLIDATION 8
3.1) Consolidation of CPFL Renováveis Financial Statements. 10
3.2) Presentation of adjusted figures. 10
4) ECONOMIC-FINANCIAL PERFORMANCE. 11
4.1) Sectoral Financial Assets and Liabilities. 11
4.3) Cost of Electric Energy. 12
4.4) Operating Costs and Expenses. 14
5.2.1) Debt Evolution in Pro forma criteria (R$ Billion) 22
5.2.2) Debt Amortization Schedule in Pro forma Criteria. 24
5.2.3) Indexation and Debt Cost in Pro forma criteria. 25
5.3) Net Debt in Covenant Criteria and Leverage. 25
6.2) Projected Capital Expenditures. 28
9) CURRENT SHAREHOLDERS STRUCTURE – 09/30/2016. 31
9.1) State Grid Transaction. 31
10) PERFORMANCE OF THE BUSINESS SEGMENTS. 38
10.1.1) Economic-Financial Performance. 38
10.1.1.1) Sectoral Financial Assets and Liabilities. 38
10.1.1.2) Operating Revenue. 38
10.1.1.3) Cost of Electric Power 39
10.1.1.4) Operating Costs and Expenses. 40
Página 2 de 73
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3Q16 Results | November 10, 2016 |
10.1.2) Annual Tariff Adjustment 45
10.1.3) Periodic Tariff Review. 46
10.1.4) 4th Periodical Tariff Review Cycle. 46
10.1.5) Operating Performance of Distribution. 46
10.2) Commercialization and Services Segments. 48
10.3) Conventional Generation Segment 49
10.3.1) Economic-Financial Performance. 49
10.4.1) Economic-Financial Performance. 53
10.4.2) Status of Generation Projects – 100% Participation. 57
11.1) Statement of Assets – CPFL Energia. 59
11.2) Statement of Liabilities – CPFL Energia. 60
11.3) Income Statement – CPFL Energia (IFRS) 61
11.4) Income Statement – CPFL Energia (Adjusted) 62
11.5) Cash Flow – CPFL Energia. 63
11.6) Income Statement – Conventional Generation Segment (IFRS) 64
11.7) Income Statement – Conventional Generation Segment (Adjusted) 65
11.8) Income Statement – CPFL Renováveis (IFRS) 66
11.9) Income Statement – CPFL Renováveis (Adjusted) 67
11.10) Income Statement – Distribution Segment (IFRS) 68
11.11) Income Statement – Distribution Segment (Adjusted) 69
11.12) Economic-Financial Performance – Distributors. 70
11.13) Sales within the Concession Area by Distributor (In GWh) 72
11.14) Sales to the Captive Market by Distributor (in GWh) 73
Página 3 de 73
|
3Q16 Results | November 10, 2016 |
Results in the third quarter of 2016 reflected a combination of Brazil’s macroeconomic scenario and CPFL Group’s growth strategy. The distribution segment continued to suffer from the economic recession, with the power volume contracting 2.3% in the concession area. The positive highlight for distribution was the slight increase in demand from high-voltage clients (0.6% during off-peak and 1.3% during peak), guaranteeing disco’s remuneration by these clients.
On the other hand, results were supported by performance of the renewable energy segment, where cash generation is mostly concentrated in the second half of the year, as well as by the startup of SHP Mata Velha, in May 2016 and the ramp-up of the wind power complexes of Campo dos Ventos and São Benedito over the year. Reported EBITDA was R$ 985 million (+2.0%) in the quarter, while leverage – measured by the ratio of net debt to EBITDA – stood at an adequate 3.07 at the end of the quarter.
On October 31, we concluded the acquisition of AES Sul, which is now called RGE Sul. With the transaction, CPFL Energia increased its scale and footprint in the state of Rio Grande do Sul, serving 382 cities, for market share of 65% in the state. As part of this process, AES Sul debt was fully amortized, and new debentures were issued in the aggregate principal of R$ 1.1 billion and at a cost of 114.5% of the CDI overnight rate. CPFL took charge of the company’s management on November 1, and its plans include investments of around R$ 1.0 billion over the next 3 years, aiming to increase service quality and comply with the improvement plan set by ANEEL.
In relation to the process of sale of CPFL Energia controlling interest, the final share purchase agreement (SPA) between State Grid and Camargo Corrêa was entered into on September 2. In accordance with the Company’s Shareholders' Agreement, the proposal was extended to other controlling shareholders of the company, which decided, over the course of September, to join Camargo Corrêa and sell their interest. The transaction was approved by Brazil's Antitrust Authority (CADE) on September 15 and is now pending approval by ANEEL, a condition precedent in the agreement.
In terms of the industry scenario, MP 735 was approved by the Senate and awaits presidential sanction. The order proposes important changes to the Brazilian power sector, creating impacts and opportunities for its various business segments. The safety of a solid regulatory framework is essential for the power sector to resume investments and deliver sustainable growth in the long term.
At this time of transition experienced by the Company and the industry, CPFL Energia is advancing in its growth strategy – investments amounted to R$ 649 million in 3Q16 (+191%), in addition to the acquisition of AES Sul. Our plans are based on opportunities to capture efficiency gains and economies of scale, with particular attention to liquidity and financial discipline when making any decision.
Andre Dorf
CEO of CPFL Energia
Página 4 de 73
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3Q16 Results | November 10, 2016 |
In 3Q16, sales within the concession area, achieved by the distribution segment, totaled 13,454 GWh, a decrease of 2.1%.
Sales within the Concession Area - GWh | ||||||
|
3Q16 |
3Q15 |
Var. |
9M16 |
9M15 |
Var. |
Captive Market |
9,549 |
9,877 |
-3.3% |
30,239 |
31,108 |
-2.8% |
Free Client |
3,905 |
3,872 |
0.8% |
11,264 |
11,946 |
-5.7% |
Total |
13,454 |
13,749 |
-2.1% |
41,504 |
43,054 |
-3.6% |
In 3Q16, the captive market sales totaled 9,549 GWh, a decrease of 3.3%. This reduction reflects the adverse macroeconomic scenario, resulting in the fall of consumption, and the strong trend of migration to the free market. Already the amount of energy in GWh, which corresponds to the consumption of free clients in the concession area of group’s distributors, billed through the Use rate of the distribution system (Free Client), reached 3,905 GWh at 3Q16, an increase of 0.8%.
Sales within the Concession Area - GWh |
| ||||||
|
3Q16 |
3Q15 |
Var. |
9M16 |
9M15 |
Var. |
Part. |
Residential |
3,755 |
3,761 |
-0.1% |
12,023 |
12,071 |
-0.4% |
27.9% |
Industrial |
5,338 |
5,614 |
-4.9% |
15,807 |
17,231 |
-8.3% |
39.7% |
Commercial |
2,171 |
2,246 |
-3.3% |
7,173 |
7,367 |
-2.6% |
16.1% |
Others |
2,189 |
2,129 |
2.8% |
6,501 |
6,385 |
1.8% |
16.3% |
Total |
13,454 |
13,749 |
-2.1% |
41,504 |
43,054 |
-3.6% |
100.0% |
Note: The tables with sales within the concession area by distributor are attached to this report in item 11.13.
Noteworthy in 3Q16, in the concession area:
· Residential and commercial segments (27.9% and 16.1% of total sales, respectively): decrease of 0.1% and 3.3%, respectively. Consumption decrease reflects the low economic activity in comparison with the 3T15.
· Industrial segment (39.7% of total sales): decrease of 4.9%, reflecting the slowdown in economic activity. It is noteworthy that a large customer of the steel business in the area of CPFL Piratininga has reduced consumption by 67.6% in comparison with the 3Q15; this represents 3.5% of the 4.9% reduction. Therefore, CPFL Piratininga recorded a decrease of 13.8% (or 249 GWh) in this segment. CPFL Paulista recorded a decrease of 0.2% (or 5 GWh) and the RGE was up by 1.2% (or 10 GWh)
Página 5 de 73
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3Q16 Results | November 10, 2016 |
Sales to the Captive Market - GWh | ||||||
|
3Q16 |
3Q15 |
Var. |
9M16 |
9M15 |
Var. |
Residential |
3,755 |
3,761 |
-0.1% |
12,023 |
12,071 |
-0.4% |
Industrial |
1,738 |
1,982 |
-12.3% |
5,415 |
6,082 |
-11.0% |
Commercial |
1,922 |
2,047 |
-6.1% |
6,447 |
6,701 |
-3.8% |
Others |
2,134 |
2,088 |
2.2% |
6,355 |
6,254 |
1.6% |
Total |
9,549 |
9,877 |
-3.3% |
30,239 |
31,108 |
-2.8% |
Note: The tables with captive market sales by distributor are attached to this report in item 11.14.
The decrease in sales on the captive market was influenced mainly by the performance of the industrial and commercial segments, with reduction of 12.3% and 6.1%, respectively, reflecting slower economic activity and migration to the free market, as explained above.
Free client - GWh | ||||||
|
3Q16 |
3Q15 |
Var. |
9M16 |
9M15 |
Var. |
Industrial |
3,601 |
3,632 |
-0.9% |
10,392 |
11,149 |
-6.8% |
Commercial |
249 |
200 |
24.6% |
726 |
666 |
8.9% |
Others |
55 |
41 |
35.8% |
146 |
131 |
11.5% |
Total |
3,905 |
3,872 |
0.8% |
11,264 |
11,946 |
-5.7% |
Página 6 de 73
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3Q16 Results | November 10, 2016 |
Free Client by Distributor - GWh | ||||||
|
3Q16 |
3Q15 |
Var. |
9M16 |
9M15 |
Var. |
CPFL Paulista |
2,067 |
1,924 |
7.4% |
5,910 |
5,902 |
0.1% |
CPFL Piratininga |
1,232 |
1,370 |
-10.1% |
3,652 |
4,293 |
-14.9% |
RGE |
523 |
478 |
9.3% |
1,455 |
1,450 |
0.3% |
CPFL Santa Cruz |
16 |
11 |
41.4% |
41 |
34 |
19.7% |
CPFL Jaguari |
24 |
17 |
40.5% |
76 |
51 |
47.0% |
CPFL Mococa |
7 |
6 |
18.9% |
21 |
19 |
13.3% |
CPFL Leste Paulista |
14 |
12 |
13.8% |
42 |
36 |
15.6% |
CPFL Sul Paulista |
22 |
53 |
-58.1% |
68 |
161 |
-58.0% |
Total |
3,905 |
3,872 |
0.8% |
11,264 |
11,946 |
-5.7% |
Contracted demand evolution | % compared to previous quarters
2.3) Generation Installed Capacity
In 3Q16, the installed capacity of generation of CPFL Energia, considering the proportional stake in each project, reached 3,192 MW, representing an expansion of 2.0% compared to 3Q15. This increase is due to the commercial start-up of Mata Velha SHPP and 48 wind turbines of Campo do Ventos wind complexes.
Generation Installed Capacity | MW
Note: Take into account CPFL Energia’s 51.61% stake in CPFL Renováveis. Does not consider São Benedito and São Dimas wind complexes, since the farms were not operating with 100% of wind turbines.
Página 7 de 73
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3Q16 Results | November 10, 2016 |
The interests directly or indirectly held by CPFL Energia in its subsidiaries and jointly-owned entities are described below. Except for: (i) the jointly-owned entities ENERCAN, BAESA, Foz do Chapecó and EPASA, that, as from January 1, 2013 (and for comparative purpose for the balances of 2012) are no longer proportionally consolidated in the Company’s financial statements, being their assets, liabilities and results accounted for using the equity method of accounting, and (ii) the investment in Investco S.A. recorded at cost by the subsidiary Paulista Lajeado, the other units are fully consolidated.
As of September 30, 2016 and 2015, the participation of non-controlling interests stated in the consolidated statements refers to the third-party interests in the subsidiaries CERAN, Paulista Lajeado and CPFL Renováveis. From November 01, 2016 CPFL Energia will the full consolidation of RGE Sul.
Energy distribution | Company Type | Equity Interest |
Number of municipalities |
Approximate number of consumers (in thousands) |
Concession term | End of the concession |
Companhia Paulista de Força e Luz ("CPFL Paulista") | Publicly-quoted corporation | Direct 100% | Direta 100% | 4.291 | 30 years | November 2027 |
Companhia Piratininga de Força e Luz ("CPFL Piratininga") | Publicly-quoted corporation | Direct 100% | Direta 100% | 1.689 | 30 years | October 2028 |
Rio Grande Energia S.A. ("RGE") | Publicly-quoted corporation | Direct 100% | Direta 100% | 1.460 | 30 years | November 2027 |
Companhia Luz e Força Santa Cruz ("CPFL Santa Cruz") | Private corporation |
Direct 100% | Direta 100% |
209 | 30 years | July 2045 |
Companhia Leste Paulista de Energia ("CPFL Leste Paulista") | Private corporation | Direct 100% | Direta 100% |
58 | 30 years | July 2045 |
Companhia Jaguari de Energia ("CPFL Jaguari") | Private corporation | Direct 100% | Direta 100% |
40 | 30 years | July 2045 |
Companhia Sul Paulista de Energia ("CPFL Sul Paulista") | Private corporation | Direct 100% |
Direta 100% | 84 | 30 years | July 2045 |
Companhia Luz e Força de Mococa ("CPFL Mococa") | Private corporation |
Direct 100% |
Direta 100% | 47 | 30 years | July 2045 |
Energy generation (conventional and renewable sources) | Company Type | Equity Interest | Location (State) | Number of plants / type of energy |
Installed capacity | |
Total | CPFL participation | |||||
CPFL Geração de Energia S.A. ("CPFL Geração") | Publicly-quoted corporation | Direct 100% |
São Paulo and Goiás | 1 Hydroelectric, 4 SHPPs (a) and 1 Thermal |
715 | 715 |
CERAN - Companhia Energética Rio das Antas ("CERAN") | Private corporation | Indirect 65% |
Rio Grande do Sul | 3 Hydroelectric | 360 | 234 |
Foz do Chapecó Energia S.A. ("Foz do Chapecó") (b) | Private corporation |
Indirect 51% |
Santa Catarina and Rio Grande do Sul |
1 Hydroelectric | 855 | 436 |
Campos Novos Energia S.A. ("ENERCAN") | Private corporation | Indirect 48.72% |
Santa Catarina | 1 Hydroelectric | 880 | 429 |
BAESA - Energética Barra Grande S.A. ("BAESA") | Publicly-quoted corporation |
Indirect 25.01% |
Santa Catarina and Rio Grande do Sul |
1 Hydroelectric | 690 | 173 |
Centrais Elétricas da Paraíba S.A. ("EPASA") | Private corporation |
Indirect 53.34% |
Paraíba | 2 Thermals | 342 | 182 |
Paulista Lajeado Energia S.A. ("Paulista Lajeado") | Private corporation |
Indirect 59.93% (c) |
Tocantins | 1 Hydroelectric | 903 | 63 |
CPFL Energias Renováveis S.A. ("CPFL Renováveis") | Publicly-quoted corporation |
Indirect 51.61% |
See Chapter 11.4.2 | See Chapter 11.4.2 | See Chapter 10.4.2 | See Chapter 10.4.2 |
CPFL Centrais Geradoras Ltda ("CPFL Centrais Geradoras") | Limited company |
Direct 100% |
São Paulo | 6 MHPPs (d) | 4 | 4 |
Notes:
(a) SHPP – Small Hydroelectric Power Plant;
(b) The joint venture Chapecoense fully consolidates the interim financial statements of its direct subsidiary, Foz de Chapecó;
(c) Paulista Lajeado has a 7% participation in the installed power of Investco S.A. (5.94% share of its capital);
(d) MHPP – Micro Hydroelectric Power Plant;
Página 8 de 73
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3Q16 Results | November 10, 2016 |
Energy commercialization and services | Company Type | Core activity | Equity Interest |
CPFL Comercialização Brasil S.A. ("CPFL Brasil") | Private corporation | Energy commercialization | Direct 100% |
Clion Assessoria e Comercialização de Energia Elétrica Ltda. ("CPFL Meridional") | Limited company | Commercialization and provision of energy services |
Indirect 100% |
CPFL Comercialização Cone Sul S.A. ("CPFL Cone Sul") | Private corporation | Energy commercialization | Indirect 100% |
CPFL Planalto Ltda. ("CPFL Planalto") | Limited company | Energy commercialization | Direct 100% |
CPFL Brasil Varejista S.A. ("CPFL Brasil Varejista") | Private corporation | Energy commercialization | Indirect 100% |
CPFL Serviços, Equipamentos, Industria e Comércio S.A. ("CPFL Serviços") | Private corporation | Manufacturing, commercialization, rental and maintenance of electro- mechanical equipment and service provision |
Direct 100% |
NECT Serviços Administrativos Ltda ("Nect") | Limited company | Provision of administrative services | Direct 100% |
CPFL Atende Centro de Contatos e Atendimento Ltda. ("CPFL Atende") | Limited company | Provision of telephone answering services |
Direct 100% |
CPFL Total Serviços Administrativos Ltda. ("CPFL Total") | Limited company | Billing and collection services | Direct 100% |
CPFL Telecom S.A ("CPFL Telecom") | Private corporation | Telecommunication services | Direct 100% |
CPFL Transmissão Piracicaba S.A ("CPFL Transmissão Piracicaba") | Private corporation | Electric energy transmission services | Indirect 100% |
CPFL Eficiência Energética S.A ("CPFL ESCO") | Private corporation | Management in Energy Efficiency | Direct 100% |
CPFL Transmissora Morro Agudo S.A ("CPFL Transmissão Morro Agudo") (e) | Private corporation | Electric energy transmission services | Direct 100% |
TI Nect Serviços de Informática Ltda. ("Authi") (f) | Limited company | IT services | Direct 100% |
CPFL GD S.A ("CPFL GD") (g) | Private corporation | Electric energy generation services | Indirect 100% |
(e) The incorporation of CPFL Transmissora Morro Agudo S.A., subsidiary of CPFL Geração, was approved in January 2015, with the objective of building and operating electric energy transmission concessions, including construction, implementation, operation and maintenance of transmission facilities of the basic network of the Interlinked National System;
(f) In September, 2014 the direct subsidiary TI Nect Serviços de Informática Ltda. (“Authi”), was set up with the objective of providing informatics, information technology maintenance, system update, program development and customization and computer and peripheral equipment maintenance services;
(g) The main objective of CPFL GD S.A., incorporated in August 2015 and fully controlled by CPFL Eficiência Energética S.A., is the provision of general consultancy services in the electric energy market and commercialization of assets related to the electric energy generation plants.
Página 9 de 73
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3Q16 Results | November 10, 2016 |
Other | Company Type | Core activity | Equity Interest |
CPFL Jaguariúna Participações Ltda. ("CPFL Jaguariúna") | Limited company | Venture capital company | Direct 100% |
CPFL Jaguari de Geração de Energia Ltda. ("Jaguari Geração") | Limited company | Venture capital company | Direct 100% |
Chapecoense Geração S.A. ("Chapecoense") | Private corporation | Venture capital company | Indirect 51% |
Sul Geradora Participações S.A. ("Sul Geradora") | Private corporation | Venture capital company | Indirect 99.95% |
3.1) Consolidation of CPFL Renováveis Financial Statements
On September 30, 2016, CPFL Energia indirectly held 51.61% of CPFL Renováveis, through its subsidiary CPFL Geração.
CPFL Renováveis has been fully consolidated (100%, line by line), in CPFL Energia’s financial statements since August 1, 2011, and the interest held by the non-controlling shareholders has been mentioned bellow the net income line (in the Financial Statements), as “Non-Controlling Shareholders’ Interest”, and in the Shareholders Equity (in the Balance Sheet) in the line with the same name.
3.2) Presentation of adjusted figures
Since the 1Q14, the presentation of adjusted figures considers equivalent stake in each of the assets in which CPFL Energia has a stake. Therefore, the result of adjusted figures already excludes non-controlling shareholders’ interests.
Página 10 de 73
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3Q16 Results | November 10, 2016 |
Consolidated Income Statement - CPFL ENERGIA (IFRS - R$ Million) | ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Gross Operating Revenue2 | 7,006 | 8,393 | -16.5% | 21,175 | 24,566 | -13.8% |
Net Operating Revenue2 | 4,412 | 4,715 | -6.4% | 12,586 | 14,652 | -14.1% |
Cost of Electric Power | (2,771) | (3,140) | -11.8% | (7,963) | (10,350) | -23.1% |
Operating Costs & Expenses | (1,277) | (1,105) | 15.6% | (3,654) | (3,404) | 7.3% |
EBIT | 689 | 722 | -4.5% | 1,786 | 1,667 | 7.2% |
EBITDA3 | 1,075 | 1,080 | -0.5% | 2,924 | 2,745 | 6.5% |
Financial Income (Expense) | (371) | (347) | 7.2% | (802) | (900) | -10.8% |
Income Before Taxes | 387 | 419 | -7.7% | 1,185 | 892 | 32.9% |
Net Income | 269 | 280 | -3.9% | 742 | 513 | 44.7% |
Consolidated Income Statement - CPFL ENERGIA (Adjusted - R$ Million)1 | ||||||
|
3Q16 |
3Q15 |
Var. |
9M16 |
9M15 |
Var. |
Gross Operating Revenue2 |
6,851 |
8,179 |
-16.2% |
20,916 |
24,168 |
-13.5% |
Net Operating Revenue2 |
4,263 |
4,516 |
-5.6% |
12,337 |
14,304 |
-13.8% |
Cost of Electric Power |
(2,634) |
(2,948) |
-10.6% |
(7,557) |
(9,674) |
-21.9% |
Operating Costs & Expenses |
(1,246) |
(1,132) |
10.1% |
(3,582) |
(3,439) |
4.2% |
EBIT |
709 |
689 |
2.8% |
2,015 |
1,959 |
2.9% |
EBITDA3 |
985 |
965 |
2.0% |
2,835 |
2,801 |
1.2% |
Financial Income (Expense) |
(341) |
(207) |
64.2% |
(755) |
(678) |
11.4% |
Income Before Taxes |
368 |
482 |
-23.6% |
1,260 |
1,280 |
-1.6% |
Net Income |
235 |
312 |
-24.8% |
763 |
783 |
-2.5% |
Notes:
(1) Adjusted figures take into account CPFL’s equivalent stake in each generation project and disregard non-recurring effects. Details about the adjustments in the Adjusted EBITDA and in the Adjusted Net Income are in items 4.5 and 4.7 of this report;
(2) Disregard Construction Revenue, in the amount of R$ 325 million in 3Q16, R$ 252 million in 3Q15, R$ 817 million in 9M16 and R$ 768 million in 9M15;
(3) EBITDA is calculated from the sum of net income, taxes, financial result and depreciation/amortization, according to CVM Instruction no. 527/12.
On November 25, 2014, through Dispatch no. 4,621, Aneel approved the amendment to concession agreements of distribution companies, in order to include a specific clause guaranteeing that the balance remaining of any insufficient payment or reimbursement of tariff due to termination of the concession, for any reason, will be indemnified.
After this change, the Securities and Exchange Commission of Brazil (CVM) approved, on December 9, 2014, through Resolution no. 732, the recognition of assets and liabilities that were previously called “regulatory assets and liabilities” in the financial statements of distribution companies, which are now called “sectorial financial assets and liabilities”.
In 3Q16, it was accounted the total sectoral financial liabilities in the amount of R$ 558 million, compared to the total sectoral financial assets in the amount of R$ 728 million in 3Q15, a variation of R$ 1,286 million. On September 30, 2016, the balance of these sectoral financial assets and liabilities was negative in R$ 435 million (R$ 388 million, excluding the special obligations recorded as the methodology of the 4th Cycle of Tariff Review), compared to a positive balance of R$ 130 million (R$ 170 million, excluding the special obligations recorded as the methodology of the 4th Cycle of Tariff Review) on June 30, 2016.
Página 11 de 73
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3Q16 Results | November 10, 2016 |
Disregarding the revenue from the construction of concession infrastructure, gross operating revenue (IFRS) reached R$ 7,006 million in 3Q16, representing a reduction of 16.5% (R$ 1,387 million). The adjusted gross operating revenue was of R$ 6,851 million in 3Q16, a reduction of 16.2% (R$ 1,328 million).
Net operating revenue (IFRS, disregarding the revenue from the construction of concession infrastructure) reached R$ 4,412 million in 3Q16, registering a reduction of 6.4% (R$ 303 million). The adjusted net operating revenue, disregarding the revenue from the construction of concession infrastructure, amounted to R$ 4,263 million in 3Q16, a reduction of 5.6% (R$ 253 million).
The increase in net operating revenue, already considering revenue eliminations, was mainly caused by the following factors:
· Reduction of revenues in the Distribution segment, in the amount of R$ 416 million (for more details, see item 10.1.1.2);
· Reduction of revenues in the Conventional Generation segment, in the amount of R$ 20 million;
Partially offset by:
· Increase of revenues in the Commercialization and Services segment, in the amount of R$ 147 million;
· Increase of revenues in CPFL Renováveis, in the amount of R$ 36 million.
The cost of electric energy (IFRS), comprising the purchase of electricity for resale and charges for the use of the distribution and transmission system, amounted to R$ 2,771 million in 3Q16, registering a reduction of 11.8% (R$ 370 million). The adjusted cost of electric energy was R$ 2,634 million in 3Q16, a reduction of 10.6% (R$ 313 million).
The factors that explain these variations follow below:
· The cost of electric power purchased for resale (IFRS) in 2Q16 reached R$ 2,466 million, a reduction of 8.4% (R$ 226 million), mainly due to the following non-recurring events:
ü GSF (Generation Scale Factor), in the amount of R$ 53 million in 3Q15;
ü Negative effect of the strategy put in place for the seasonality of physical guarantee, totaling R$ 8 million in 3Q15 (R$ 7 million in the Conventional Generation segment and R$ 1 million in CPFL Renováveis); the total negative effect of the strategy put in place for the seasonality of physical guarantee was of R$ 9 million in 3Q15 (R$ 7 million in the Conventional Generation segment and R$ 2 million in CPFL Renováveis), considering that the difference of R$ 1 million of CPFL Renováveis was considered in the Operating Revenue.
Note: after the GSF renegotiation in 4Q15, the Company has considered the remaining GSF as a recurring effect, and has considered the effects of the strategy put in place for the seasonality of physical guarantee of 2015 as a non-recurring effect, since the effects of seasonality are significantly reduced after the renegotiation of the GSF.
Página 12 de 73
|
3Q16 Results | November 10, 2016 |
GSF and Seasonality Effect (Adjusted - R$ Million) | ||||||||
|
3Q16 (*) |
2Q16 (*) |
1Q16 (*) |
2015 |
4Q15 |
3Q15 |
2Q15 |
1Q15 |
GSF |
|
|||||||
Conventional Generation |
(3) |
(7) |
(10) |
(320) |
(23) |
(48) |
(122) |
(127) |
CPFL Renováveis |
(2) |
(1) |
(1) |
(54) |
(3) |
(5) |
(18) |
(27) |
Total |
(4) |
(8) |
(12) |
(374) |
(26) |
(53) |
(140) |
(154) |
|
|
|
|
|
|
|
| |
Seasonality Effect |
|
|
|
|
|
|
|
|
Conventional Generation |
- |
- |
- |
89 |
(29) |
(7) |
60 |
65 |
CPFL Renováveis |
- |
- |
- |
4 |
(3) |
(2) |
3 |
7 |
Total |
- |
- |
- |
93 |
(32) |
(9) |
63 |
72 |
Note: (*) As from 2016, both the GSF and the seasonality effect will be treated as recurring items, being part of the business.
In the adjusted figures, that disregard these effects, the cost of electric power purchased for resale in 3Q16 was R$ 2,323 million, representing a reduction of 6.8% (R$ 169 million). The decrease mainly reflects the variations below:
(i) Reduction of 41.4% (R$ 326 million) in the cost of energy from Itaipu, due to the reductions of 40.8% in the average purchase price (R$ 180.93/MWh in 3Q16 vs. R$ 305.77/MWh in 3Q15) and of 0.9% (23 GWh) in the volume of purchased energy;
Partially offset by:
(ii) Increase of 6.6% (R$ 126 million) in the cost of energy purchased through auction in the regulated environment and bilateral contracts, due to the increase of 33.6% (3,205 GWh) in the volume of purchased energy, partially offset by the reduction of 20.2% in the average purchase price (R$ 158.60/MWh in 3Q16 vs. R$ 198.67/MWh in 3Q15);
(iii) Reduction of 7.2% (R$ 18 million) in PIS and COFINS tax credits (cost reducer), generated from the energy purchase;
(iv) Increase in the amount of energy purchased in the spot market/PROINFA cost (R$ 13 million), excluding the GSF and the effect of the strategy put in place for the seasonality of physical guarantee (non-recurring effects).
· Charges for the use of the transmission and distribution system (IFRS) reached R$ 305 million in 3Q16, a reduction of 32.0% (R$ 143 million). In adjusted figures, that take into account the proportionate consolidation of generation assets, sector charges reached R$ 311 million in 3Q16, a reduction of 31.7% (R$ 144 million), due to the following factors:
(i) Reduction of 94.2% (R$ 90 million) in the Reserve Energy Charges – EER;
(ii) Reduction of 47.5% (R$ 77 million) in the System Service Usage Charges – ESS, due to the spot price (PLD) reduction;
(iii) Reduction of 1.1% (R$ 2 million) in the basic network charges;
Partially offset by:
(iv) Increase of R$ 10 million in Itaipu transmission charges and charges for connection and usage of the distribution system;
(v) Reduction of 34.0% (R$ 15 million) in PIS and COFINS tax credits (cost reducer), generated from the charges.
Página 13 de 73
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3Q16 Results | November 10, 2016 |
Operating costs and expenses (IFRS) were R$ 1,277 million in 3Q16, a decrease of 15.6% (R$ 173 million) if compared to 3Q15. Adjusted operating costs and expenses were R$ 1,246 million in 3Q16, an increase of 10.1% (R$ 114 million), if compared to 2Q15, due to the following factors:
(i) Increase of 28.7% (R$ 72 million) in the cost of building the infrastructure of the concession. This item, which reached R$ 324 million in 3Q16, has its counterpart in the “operating revenue”;
(ii) The adjusted PMSO item, that reached R$ 622 million in 3Q16, compared to R$ 588 million in 3Q15, registering an increase of 5.8% (R$ 35 million);
The table below lists the main variation in PMSO:
MANAGERIAL ADJUSTMENTS ON PMSO, FOR COMPARISON PURPOSES (in millions of Reais) | ||||
|
3Q16 |
3Q15 |
Variation | |
|
R$ MM |
% | ||
Reported PMSO (IFRS) |
|
|
|
|
Personnel |
(261.2) |
(237.4) |
(23.8) |
10.0% |
Material |
(64.8) |
(38.7) |
(26.1) |
67.4% |
Outsourced Services |
(156.5) |
(142.7) |
(13.8) |
9.7% |
Other Operating Costs/Expenses |
(130.6) |
(103.6) |
(27.0) |
26.1% |
Allowance for doubtful accounts |
(34.2) |
(31.6) |
(2.5) |
8.0% |
Legal, judicial and indemnities expenses |
(29.3) |
(47.6) |
18.3 |
(38.5%) |
GSF risk premium |
(2.4) |
- |
(2.4) |
- |
Others |
(6480.1%) |
(2437.4%) |
(40.4) |
165.9% |
Reported PMSO (IFRS) - (A) |
(613.1) |
(522.5) |
(90.6) |
17.3% |
Proportional Consolidation + Regulatory Assets&Liabilities |
|
|
|
|
Personnel |
6.8 |
6.3 |
|
|
Material |
(20.2) |
(73.8) |
|
|
Outsourced Services |
15.5 |
11.5 |
|
|
Other Operating Costs/Expenses |
(10.8) |
(9.1) |
|
|
Allowance for doubtful accounts |
0.0 |
0.3 |
(0.3) |
- |
Legal, judicial and indemnities expenses |
(1.1) |
1.1 |
(2.2) |
- |
GSF risk premium |
(4.6) |
- |
(4.6) |
- |
Others |
(5.1) |
(10.5) |
4.8 |
- |
Total Proportional Consolidation + Regulatory Assets&Liabilities - (B) |
(8.7) |
(65.1) |
56.4 |
(86.7%) |
Adjusted PMSO |
|
|
|
|
Personnel |
(254.4) |
(231.1) |
(23.3) |
10.1% |
Material |
(85.0) |
(112.5) |
27.6 |
(24.5%) |
Outsourced Services |
(141.1) |
(131.2) |
(9.9) |
7.5% |
Other Operating Costs/Expenses |
(141.4) |
(112.7) |
(28.7) |
25.4% |
Allowance for doubtful accounts |
(34.2) |
(31.4) |
(2.8) |
8.8% |
Legal, judicial and indemnities expenses |
(30.3) |
(46.5) |
16.2 |
(34.8%) |
GSF risk premium |
(9.3) |
- |
(9.3) |
- |
Others |
(67.6) |
(34.8) |
(32.7) |
93.9% |
Total adjusted PMSO - (C) = (A) + (B) |
(621.8) |
(587.5) |
(34.2) |
5.8% |
Página 14 de 73
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3Q16 Results | November 10, 2016 |
This variation is mainly explained by the following aspects:
(ii.1) Personnel expenses, which recorded an increase of 10.1% (R$ 23 million), mainly due to:
· collective bargaining agreement – wages and benefits (R$ 17 million);
· increase in the Services segment business, due to business expansion of CPFL Serviços, CPFL Atende, Nect and CPFL Eficiência (R$ 9 million);
· Other effects (R$ 3 million);
Partially offset by:
· Reversal provision assumed by the sponsors of the Fundação Cesp, regarding to INSS tax collection over medical cooperatives (R$ 6 million)
(ii.2) Out-sourced services expenses, which registered an increase of 7.5% (R$ 10 million), mainly due to increase in the expenses in:
· Distribution Segment (R$ 4 million) - collection actions, maintenance of the power grid, tree pruning, meter reading and others;
· Increase in CPFL Renováveis (R$ 4 million) – O&M maintenance, software maintenance, environment expenses and legal consulting and;
· Other effects (R 2 million).
(ii.3) Other operational costs/expenses, that registered an increase of 25.4% (R$ 29 million), mainly due to:
· INSS expenses recovery that registered on the 3Q15;
· Hydrologic risk (GSF) premium amortization in the Generation segment business (Conventional/Renewables) (R$ 9 million);
· Increase of 176.9% in assets write-off (R$ 7 million);
· Increase of 8.8% in allowance for doubtful accounts (R$ 3 million), due to deterioration of the macroeconomic scenario and tariff adjustments that occurred in 2015;
· Increase of 13.9% in expenses with collection fees (R$ 2 million);
· Increase of 21.1% in expenses with leases and rentals (R$ 2 million);
· Increase of 26.3% in operating fines (DIC, FIC, DMIC and DICRI) in the Distribution segment (R$ 1 million);
· Others effects (R$ 10 million);
Partially offset by:
· Decrease of 34.8% of legal and judicial expenses (R$ 16 million).
· Decrease of 19.0% in CFURH – Financial Compensation for Use of Water (R$ 2 million)
(ii.4) Decrease of 24.5% in Material (R$ 28 million), mainly explained by:
· In the Conventional Generation segment business, decrease of 71.1% (R$ 55 million), mainly due to oil acquisition by Epasa (Termonordeste TPP and Termoparaíba TPP), that was reduced by R$ 52 million in Conventional Generation. The average Unit Variable Cost (CVU) for this thermal plant decreased from R$ 392.81/MWh to R$ 349.69/MWh and thermal dispatch was lower in 73% when comparing the same quarters of each year.
Página 15 de 73
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3Q16 Results | November 10, 2016 |
Partially offset by:
· Increase of 349,1% in the Services segment business (R$ 23 million); due to CPFL Eficiência leasing, contract business expansion has its counterpart in the “operating revenue”(no impact on the company´s bottom line)
· Increase of 24.3% in the Distribution Segment (R$ 6 million) mainly due to replacement of the line and grid, machinery and equipment (R$ 4 million) and fleeting maintenance (R$ 2 million)
(iii) Increase of 44.7% in the Private Pension Fund expenses (R$ 7 million), due to actuarial report update.
(iv) Depreciation and Amortization, which represented an increase of 2.3% (R$ 5 million), are mainly explained by (i) the increase in the Distribution segment business (R$ 8 million) in amortization of intangible distribution infrastructure asset, mainly due to additions to the intangible assets base in the period, partially offset by reduction in the CPFL Renováveis (R$ 1 million); (iii) Conventional Generation (R$ 1 million) and (iv) Commercialization and Services segment (R$ 1 million)
Partially offset by:
(v) Decrease of 10.1 in Intangible of Concession Amortization (R$ 5 million), due to (v.1) decrease in the Intangible of Concession balance accounted in the holding company CPFL Energia, due to the renewal of the concessions of the subsidiaries CPFL Santa Cruz, CPFL Leste Paulista, CPFL Sul Paulista, CPFL Jaguari e CPFL Mococa (R$ 7 million; (v.2) amortization criteria accounting change where as of January 1, 2016, the Company will amortize the intangible assets acquired on a straight-line basis, in all cases (R$ 7 million) and (v.3) decrease in the Conventional Generation segment (R$ 2 million); partially offset by (v.4) increase in the Distribution segment (R$ 1 million) and (v.5) increase in the CPFL Renováveis (R$ 2 milion)
In 3Q16, IFRS EBITDA reached R$ 1,075 million, registering a reduction of 0.5% (R$ 5 million). Adjusted EBITDA in 3Q16 totaled R$ 985 million, compared to R$ 965 million in 3Q15, an increase of 2.0% (R$ 20 million).
Página 16 de 73
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3Q16 Results | November 10, 2016 |
EBITDA conciliation - IFRS x Adjusted (R$ million) | |||
|
3Q16 |
3Q15 |
Var. |
EBITDA - IFRS (A) |
1,075 |
1,080 |
-0.5% |
(+) Proportional Consolidation of Generation (B) |
(93) |
(60) |
|
Conventional Generation |
74 |
84 |
|
CPFL Renováveis |
(167) |
(143) |
|
(+) Itaipu Foreign Exchange Variation (C) (*) |
3 |
(119) |
|
(+) Non-recurring effects (D) |
- |
63 |
|
GSF and Energy Purchase (CPFL Geração and CPFL Renováveis) |
- |
54 |
|
Seasonality Effect (CPFL Geração and CPFL Renováveis) |
- |
9 |
|
Adjusted EBITDA (A + B + C + D) |
985 |
965 |
2.0% |
Note: (*) In order to better reflect the actual operating cash generation of the distribution segment, we adjust Itaipu foreign exchange variation in the adjusted EBITDA. This effect has its counterpart in the Financial Result, with no effect on Net Income.
In 3Q16, net financial expense (IFRS) was of R$ 371 million, an increase of 7.2% (R$ 25 million) compared to the net financial expense of R$ 347 million reported in 3Q15. The adjusted net financial expense, considering the proportional consolidation in the segments of conventional and renewable generation, and excluding the effect of the exchange variation in Itaipu’s invoices (negative in R$ 3 million in 3Q16 and positive in R$ 119 million in 3Q15), was of R$ 341 million, an increase of 64.2% (R$ 133 million).
Página 17 de 73
|
3Q16 Results | November 10, 2016 |
Financial Result (IFRS - R$ Million) | |||
|
3Q16 |
3Q15 |
Var. |
Financial Revenues |
335 |
421 |
-20.3% |
Financial Expenses |
(707) |
(767) |
-7.9% |
Financial Result |
(371) |
(347) |
7.2% |
Financial Result (Adjusted - R$ Million) | |||
|
3Q16 |
3Q15 |
Var. |
Revenues |
|||
Income from Financial Investments |
181 |
107 |
68.5% |
Additions and Late Payment Fines |
58 |
56 |
2.3% |
Fiscal Credits Update |
10 |
5 |
93.2% |
Judicial Deposits Update |
10 |
24 |
-58.8% |
Monetary and Foreign Exchange Updates |
29 |
28 |
5.8% |
Adjustment of Expected Cash Flow |
49 |
125 |
-60.6% |
Discount on Purchase of ICMS Credit |
2 |
2 |
-3.8% |
Sectoral Financial Assets Update |
(6) |
55 |
- |
PIS and COFINS - over Other Financial Revenues |
(22) |
(19) |
14.8% |
Others |
17 |
15 |
14.4% |
Total |
327 |
397 |
-17.7% |
|
|
||
Expenses |
|
|
|
Debt Charges |
(396) |
(404) |
-2.2% |
Monetary and Foreign Exchange Updates (*) |
(221) |
(148) |
49.1% |
(-) Capitalized Interest |
11 |
11 |
0.1% |
Sectoral Financial Liabilities Update |
(1) |
0 |
- |
Use of Public Asset |
(14) |
(15) |
-9.8% |
Others |
(48) |
(49) |
-2.0% |
Total |
(668) |
(605) |
10.4% |
|
|
||
Financial Result |
(341) |
(207) |
64.2% |
Note: (*) The effect of Itaipu foreign exchange variation was negative in R$ 3 million in 3Q16 and positive in R$ 119 million in 3Q15.
The items explaining these variations in adjusted Financial Result are as follows:
· Financial Revenues: in IFRS, a reduction of 20.3% (R$ 85 million), from R$ 421 million in 3Q15 to R$ 335 million in 3Q16. In the adjusted figures, considering the proportional consolidation in the segments of conventional and renewable generation, a reduction of 17.7% (R$ 70 million), from R$ 397 million in 3Q15 to R$ 327 million in 3Q16 mainly due to the following factors:
(i) Reduction of 60.6% (R$ 76 million) in the adjustment of expected cash flow (monetary update of concession’s financial asset), due to: (a) (a) the application of the 4th Cycle of Tariff Review of CPFL Piratininga, in 3Q15, when the restoration of its Remuneration Base positively impacted by R$ 72 million; (b) the lower inflation, with a 0.39% fall in the index (IGP-M index of 1.70% in 3Q15 vs. IPCA index of 1.31% in 3Q16) 1; and (b) the reduction in concession’s financial asset observed in the distributors which have gone through the concession renewal process at the end of 2015 (CPFL Santa Cruz, CPFL Leste Paulista, CPFL Sul Paulista, CPFL Jaguari and CPFL Mococa) 2;
1 In November 2015, through the Resolution (REN) n. 686/2015, ANEEL approved changes in the PRORET (Tariff Regulation Procedures), sub-module 2.3, including the replacement of the IGP-M inflation index by the IPCA inflation index to update the regulatory asset base.
Página 18 de 73
|
3Q16 Results | November 10, 2016 |
(ii) Reduction of R$ 61 million in sectoral financial assets update, from a revenue of R$ 55 million in 3Q15 to an expense of R$ 6 million in 3Q16;
(iii) Reduction of 58.8% (R$ 14 million) in judicial deposits update;
(iv) PIS and COFINS over Other Financial Revenue (R$ 3 million);
Partially offset by:
(v) Increase of 68.5% (R$ 74 million) in the income from financial investments, due mainly to the increase in the average balance of investments;
(vi) Increase of 93.2% (R$ 5 million) in fiscal credits update;
(vii) Increase of 5.8% (R$ 2 million) in the monetary and foreign exchange updates;
(viii) Increase of 14.4% (R$ 2 million) in other financial revenues;
(ix) Increase of 2.3% (R$ 1 million) in additions and late payment fines.
· Financial Expenses: in IFRS, a reduction of 7.9% (R$ 61 million), from R$ 767 million in 3Q15 to R$ 707 million in 3Q16. In adjusted figures, considering the proportional consolidation in the segments of conventional and renewable generation, and excluding the effect of the exchange variation in Itaipu’s invoices (negative in R$ 3 million in 3Q16 and positive in R$ 119 million in 3Q15), an increase of 10.4% (R$ 63 million), from R$ 605 million in 3Q15 to R$ 668 million in 3Q16, mainly due to the following factors:
(i) Increase of 49.1% (R$ 73 million) in the monetary and foreign exchange updates, due to: (a) the mark-to-market negative effect for financial operations under Law 4,131 – non-cash effect (R$ 77 million); partially offset by (b) the reduction of debt charges in foreign currency, with swap to CDI interbank rate (R$ 4 million), reflecting the reduction in the stock of debt;
Partially offset by:
(ii) Reduction of 2.2% (R$ 9 million) of debt charges in local currency, reflecting the reduction in the stock of debt;
(iii) Reduction of R$ 1 million in other financial expenses.
In 3Q16, net income (IFRS) was R$ 269 million, registering a reduction of 3.9% (R$ 11 million). Adjusted net income in 3Q16 totaled R$ 235 million, compared to R$ 312 million in 3Q15, a reduction of 24.8% (R$ 77 million).
2 In order to calculate the split between the intangible asset and concession’s financial asset, it uses the useful life of assets. The portion of the useful life that occur by the end of the concession is classified as an intangible asset and the residual value is classified as concession’s financial asset, referring to the compensation that the distributor will receive when the assets are reversed to the Grantor.
Página 19 de 73
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3Q16 Results | November 10, 2016 |
Net Income conciliation - IFRS x Adjusted (R$ million) | |||
|
3Q16 |
3Q15 |
Var. |
Net Income - IFRS (A) |
269 |
280 |
-3.9% |
(+) Proportional Consolidation of Generation (B) |
(34) |
(12) |
|
Conventional Generation |
(64) |
(57) |
|
CPFL Renováveis |
30 |
45 |
|
(+) Non-recurring effects (C) |
- |
44 |
|
GSF and Energy Purchase (CPFL Geração and CPFL Renováveis) |
- |
37 |
|
Seasonality Effect (CPFL Geração and CPFL Renováveis) |
- |
7 |
|
Adjusted Net Income (A + B + C) |
235 |
312 |
-24.8% |
Página 20 de 73
|
3Q16 Results | November 10, 2016 |
1) Do not consider mark-to-market effects and borrowing costs.
Indexation after Hedge1 – 3Q15 vs. 3Q16
1) For debt linked to foreign currency (28% of total in 3Q16), swaps are contracted, which convert indexing for CDI;
Net Debt and Leverage in IFRS
IFRS - R$ Million |
3Q16 |
3Q15 |
Var. % |
Financial Debt (including hedge) |
(18,766) |
(19,291) |
-2.7% |
(+) Available Funds |
5,345 |
4,033 |
32.5% |
(=) Net Debt |
(13,422) |
(15,258) |
-12.0% |
Página 21 de 73
|
3Q16 Results | November 10, 2016 |
In September 30, 2016, financial debt in Pro forma criteria was R$ 16,813 million, a decrease of 2.3% in comparison to the same period last year. Find below the debt profile during the last twelve months:
1) Considering mark-to-market effect, borrowing costs and accounting adjusts
Find below CPFL Energia’s financial debt by segment, and the debt profile during the last twelve months:
Página 22 de 73
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3Q16 Results | November 10, 2016 |
CPFL Energia has always adopted a solid and conservative financial policy. Thus, the Company has used since 2011, a prefunding strategy, in other words, forecasts the cash needs for the next 24 months and anticipates market access on more favorable terms of liquidity and cost. Thus, at the beginning of 2016, CPFL Energia started working in 2017 and 2018 prefunding.
1) Considers only the principal debt, including hedge and excluding accrued interests (R$ 435 million in 3Q16);
2) Twelve months (Oct-16 to Sep-17);
The cash position at the end of 3Q16 had a coverage ratio of 2.22x the amortizations of the next 12 months, enough to honor all amortization commitments until the beginning of 2018. The average amortization term, calculated by this schedule, is 3.23 years.
Financial Debt - 3Q16 - Pro-Forma (R$ Million) | |||||||||||||
Issuance Type |
BNDES |
Financial Institutions |
Other |
Foreign Currency |
Debentures |
Total | |||||||
Segments |
Short Term |
Long Term |
Short Term |
Long Term |
Short Term |
Long Term |
Short Term |
Long Term |
Short Term |
Long Term |
Short Term |
Long Term |
Total |
Distribution |
354 |
1,095 |
121 |
365 |
3 |
8 |
93 |
4,190 |
414 |
1,832 |
985 |
7,489 |
8,474 |
Conventional Generation |
169 |
981 |
- |
618 |
10 |
64 |
322 |
651 |
550 |
1,756 |
1,052 |
4,070 |
5,121 |
Renewable Generation |
151 |
1,591 |
- |
- |
74 |
402 |
- |
- |
170 |
805 |
395 |
2,797 |
3,192 |
Holding, T&S and Others |
15 |
81 |
11 |
24 |
1 |
- |
12 |
44 |
- |
- |
38 |
149 |
187 |
Debt (Principal) |
689 |
3,748 |
132 |
1,006 |
87 |
473 |
428 |
4,885 |
1,133 |
4,392 |
2,470 |
14,504 |
16,974 |
Charges |
|
|
|
|
291 |
144 |
435 | ||||||
Hedge |
|
|
|
|
(107) |
(535) |
(642) | ||||||
Financial Debt Including Hedge |
|
|
|
|
|
|
|
|
|
|
2,654 |
14,113 |
16,767 |
Percentage on total (%) |
|
|
|
|
|
|
|
|
|
|
15.8% |
84.2% |
|
Private Pension Fund (PPF) |
9 |
857 |
866 | ||||||||||
Financial Debt (Including Private Pension Fund) |
|
|
|
|
|
|
|
|
|
2,663 |
14,970 |
17,633 | |
Percentage on total (%) |
|
|
|
|
|
|
|
|
|
|
15.1% |
84.9% |
|
Note: The amount of R$ 16.767 million of the Financial Debt Pro-Forma is presented using the Treasury accounting methodology. The amount presented in financial statement follows a different methodology. For conciliation of financial debt covenant criteria, that was R$ 16.685 million, it is necessary to subtract R$ 81 million related to booking account of derivatives, mark-to-market and borrowing costs.
Página 24 de 73
|
3Q16 Results | November 10, 2016 |
1) Considering proportional consolidation of CPFL Renováveis, CERAN, BAESA, ENERCAN, Foz do Chapecó and EPASA;
2) For debt linked to foreign currency (32% of total), swaps are contracted, which convert the indexation to CDI. The debt amount indexed in Interbank Rate (CDI) increased from 71.6% to 72.2%, mainly due to the R$ 550 million borrowed by CPFL Geração through 4,131 Brazilian Law in July and September 2016.
1) Adjusted by the proportional consolidation since 2012; Financial debt (+) private pension fund (-) hedge.
In 3Q16, Pro forma Net Debt totaled R$ 11,439 million, a decrease of 16.7% compared to net debt position at the end of 3Q15 in the amount of R$ 13,726 million.
Covenant Criteria (*) - R$ Million |
3Q16 |
3Q15 |
Var. |
Financial Debt (including hedge)1 |
(16,685) |
(17,442) |
-4.3% |
(+) Available Funds |
5,246 |
3,716 |
41.2% |
(=) Net Debt |
(11,439) |
(13,726) |
-16.7% |
EBITDA Proforma2 |
3,725 |
3,962 |
-6.0% |
Net Debt / EBITDA |
3.07x |
3.46x |
-0.39x |
1) Considering proportional consolidation of CPFL Renováveis, CERAN, BAESA, ENERCAN, Foz do Chapecó and EPASA;
2) Adjusted EBITDA in the covenants criteria: adjusted according to equivalent participation of CPFL Energia in each of its subsidiaries, with the inclusion of regulatory assets and liabilities and the historical EBITDA of newly acquired projects.
Página 25 de 73
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3Q16 Results | November 10, 2016 |
In line with the criteria for calculation of financial covenants of loan agreements with financial institutions, net debt is adjusted according to the equivalent stake of CPFL Energia in each of its subsidiaries. Also, include in the calculation of adjusted EBITDA the effects of historic EBITDA of newly acquired projects. Considering that, adjusted net debt totaled R$ 11,439 million and adjusted EBITDA in the last 12 months reached R$ 3,725 million, the ratio adjusted Net Debt / adjusted EBITDA at the end of 3Q16 reached 3.07x.
At beginning of July, CPFL Energia informed the market that Camargo Correa S.A., its largest shareholder, had received a letter agreement from state-owned Chinese company State Grid to acquire its shares. The rating agencies had evaluated the letter agreement as positive, given the credit quality of the Chinese company, but without any immediate impacts on corporate and issuances ratings of CPFL Energia. The following table shows the ratings and the outlooks assigned by the agencies.
Ratings of CPFL Energia - National Scale | |||||
Agency |
|
2013 |
2014 |
2015 |
Current |
|
Rating |
brAA+ |
brAA+ |
brAA |
brAA- |
| |||||
|
Outlook |
Stable |
Stable |
Negative |
Negative |
|
Rating |
AA+ (bra) |
AA+ (bra) |
AA (bra) |
AA (bra) |
| |||||
|
Outlook |
Stable |
Stable |
Stable |
Negative |
Página 26 de 73
|
3Q16 Results | November 10, 2016 |
Investiments (IFRS - R$ Million) | ||||||
Segment |
3Q16 |
3Q15 |
Var. |
9M16 |
9M15 |
Var. |
Distribution |
280 |
192 |
46.0% |
709 |
613 |
15.8% |
Generation - Conventional |
8 |
1 |
594.6% |
12 |
3 |
355.6% |
Generation - Renewable |
315 |
12 |
2620.8% |
802 |
287 |
179.4% |
Commercialization |
0 |
1 |
-6.4% |
2 |
1 |
104.3% |
Services and Others1 |
6 |
14 |
-54.0% |
34 |
28 |
22.3% |
Total |
610 |
219 |
179.1% |
1,560 |
931 |
67.5% |
Transmission |
39 |
4 |
807.9% |
55 |
31 |
80.1% |
Special Obligations |
42 |
88 |
-51.7% |
152 |
174 |
-12.6% |
Note:
1) Others – basically refers to assets and transactions that are not related to the listed segments.
In 3Q16, R$ 610 million were invested in business maintenance and expansion, 179.1% higher than 3Q15. In addition, we invested R$ 39 million in the quarter related to the transmission lines construction of CPFL Transmissão Morro Agudo which, according to the requirements of IFRIC 12, it was recorded as “Financial Asset of Concession” in non-current assets. CPFL Energia also booked R$ 42 million in Special Obligations in the quarter among other items financed by the consumer.
Listed below are some of the main investments made by CPFL Energia in 3Q16, in each segment:
(i) Distribution:
a. Expansion and strengthening of the electric system;
b. Electricity system maintenance and improvements;
c. Operational infrastructure;
d. Upgrade of management and operational support systems;
e. Customer help services;
f. Research and development programs.
(ii) Generation:
a. Mainly on Campo dos Ventos and São Benedito Wind Complexes;
b. Pedra Cheirosa Wind Complex;
c. Mata Velha SHPP.
Página 27 de 73
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3Q16 Results | November 10, 2016 |
In August 2016, the Extraordinary General Meeting (AGE) approved the acquisition of 100% of the capital stock of RGE Sul (ex-AES Sul). With the closing of the deal, in 10/31/2016, the company has updated its projected investments, just adding the estimated investments in RGE Sul for the last two months of 2016, and during the next four years.
Notes:
1) Constant currency;
2) The projected investments is also available in the Reference Form of RGE Sul, resubmitted in the same date of this Report; It will also be available in the Reference Form of CPFL Energia in its resubmission in late date.
3) Considers 100% on CPFL Renováveis and Ceran;
4) Considers proportional stakes in the generation projects;
5) Disregard investments in Special Obligations on Distribution segment (among other items financed by consumers);
6) For 2016, considers only November and December 2016
7) Conventional + Renewable
Página 28 de 73
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3Q16 Results | November 10, 2016 |
CPFL Energia, which has a current free float of 31.9% (up to September 30, 2016), is listed on both the BM&FBovespa (Novo Mercado) and the NYSE (ADR Level III), segments with the highest levels of corporate governance.
BM&FBovespa |
NYSE | ||||||
Date |
CPFE3 (R$) |
IEE |
IBOV |
Date |
CPL (US$) |
DJBr20 |
Dow Jones |
09/30/2015 |
R$ 14.36 |
25,775 |
45,059 |
09/30/2015 |
$ 7.42 |
12,159 |
16,285 |
06/30/2016 |
R$ 20.59 |
30,786 |
51,526 |
06/30/2016 |
$ 12.86 |
15,996 |
17,930 |
09/30/2016 |
R$ 24.19 |
36,307 |
58,367 |
09/30/2016 |
$ 14.80 |
18,185 |
18,308 |
QoQ |
17.5% |
17.9% |
13.3% |
QoQ |
15.1% |
13.7% |
2.1% |
YoY |
68.5% |
40.9% |
29.5% |
YoY |
99.3% |
49.6% |
12.4% |
On September 30, 2016 the price shares closed at R$ 24.19 per share on the BM&FBovespa and US$ 14.80 per ADR on the New York Stock Exchange. In 3Q16, which represented a variation in the quarter of 17.5% and 15.1% respectively. Year over year, the shares appreciated 68.5% on BM&FBovespa and the ADR appreciated 99.3% on the NYSE.
The daily trading volume in 3Q16 averaged R$ 59.4 million, of which R$ 41.8 million on the BM&FBovespa and R$ 17.6 million on the NYSE, 49.2 % up compared to 3Q15. The number of trades on the BM&FBovespa decreased by 1.9%, rising from a daily average of 6,135, in 3Q15, to 6,020 in 3Q16.
Note: Considers the sum of the average daily volume on the BM&FBovespa and NYSE
Página 29 de 73
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3Q16 Results | November 10, 2016 |
The corporate governance model adopted by CPFL Energia ("CPFL" or "Company") and its subsidiaries is based on the principles of transparency, fairness, accountability and corporate responsibility.
In 2016, CPFL marked 1 years since being listed on the BM&FBovespa and the New York Stock Exchange (“NYSE”). With more than 100 years of history in Brazil, the Company’s shares are listed on the Novo Mercado Special Listing Segment of the BM&FBovespa with Level III ADRs, a special segment for companies that comply with corporate governance best practices. All CPFL shares are common shares, entitling all shareholders the right to vote with 100% Tag Along rights guaranteed in case of sale of shareholding control.
CPFL’s Management is composed of the Board of Directors (“Board”), its decision-making authority, and the Board of Executive Officers, its executive body. The Board is responsible for defining the strategic business direction of the holding company and subsidiaries, and is composed of 7 external members, one of whom an Independent Member, whose term of office is 1 year and who are eligible for reelection.
The Bylaws of the Board establishes the procedures for evaluating the directors, under the leadership of the Chairman, their main duties and rights.
The Board set up three advisory committees (Management Processes, Risks and Sustainability, People Management and Related Parties), which support the Board in its decisions and monitor relevant and strategic themes, such as people and risk management, sustainability and the surveillance of internal audits, analysis of transactions with Parties Related to controlling shareholders and handling of incidents recorded through complaint hotlines and ethical conduct channels.
To ensure that best practices permeate all activities of the Board and its relations with the Company while the Board members are focused on their decision-making functions, in 2006 the Company created the Corporate Governance Advisory, which reports directly and solely to the Chairman of the Board.
This Advisory Council acts as the guardian of best practices to ensure compliance with Governance Guidelines; speed of communication between the Company and its Board members; quality and timeliness of information; integration and evaluation of members of the Board of Directors and the Audit Board; constant improvement of governance processes and institutional relations with government authorities and entities.
The composition of Executive board, in line with governance guidelines, was changed on May 2015. The change in Company’s Bylaws, which were approved at the General Shareholders Meeting held on April 29, 2015, created a new vice President position subordinated to the CEO, who passes 5 (five) to 6 (six) Executive vice Presidents, standing in line with our succession program. The mandates of the Executive vice Presidents endures two years, with a reelection possibility, besides they sit on the Boards of the subsidiaries. Therefore, the changes in CPFL Energia aims to create the bases required to consolidate as the leader of Brazilian power Market, always seeking the efficient management of its assets and sustainable opportunities to create value for its stakeholders.
CPFL has a permanent Fiscal Council, made up of 5 members, that also exercises the duties of the Audit Committee, in line with Sarbanes-Oxley law (SOX) rulings applicable to foreign companies listed on U.S. stock exchanges.
The guidelines and documents on corporate governance are available at the Investor Relations website http://www.cpfl.com.br/ri.
Página 30 de 73
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3Q16 Results | November 10, 2016 |
CPFL Energia is a holding company, whose results depend directly on those of its subsidiaries.
Notes:
(1) Controlling shareholders;
(2) Includes the 0.2% stake of Petros pension fund;
(3) % of bound shares by the controlling shareholders;
(4) 51.54% stake of the availability of power and energy of Serra da Mesa HPP, regarding the Power Purchase Agreement between CPFL Geração and Furnas.
On September 2, 2016, CPFL Energia released through a Material Fact that received from its indirect shareholder Camargo Corrêa S.A. (“CCSA”), a member of CPFL Energia’s controlling block, a correspondence, also signed by State Grid International Development Limited (“State Grid”). In the correspondence, CCSA and State Grid inform the execution on that date of the Share Purchase Agreement (the “Share Purchase Agreement”), by and among CCSA (both as seller and as guarantor), ESC Energia S.A. (“ESC”) (as seller), State Grid, as guarantor and State Grid Brazil Power Participacoes Ltda, a Brazilian subsidiary of State Grid, as buyer (“Buyer”). The Share Purchase Agreement provides for (i) the direct or (through a sale of ESC to Buyer) indirect sale of all of the 234,086,204 CPFL Energia shares held by ESC that are bound to the Shareholders Agreement of CPFL Energia entered into on March 22, 2002, as amended (the “Shareholders Agreement”), representing approximately 23% of CPFL Energia’s capital stock (as well as any shares received as share dividends (bonificação em ações) on the bound shares as from January 1st, 2016) and (ii) the direct sale by CCSA to Buyer of 5,869,876 CPFL Energia shares held directly by CCSA (received as share dividends (bonificação em ações) on the bound shares referred in item (i) above on April 29, 2016), representing approximately 0.58% of CPFL Energia’s capital stock (the “Transaction”). The purchase price established in the Share Purchase Agreement is R$25.00 (twenty five Brazilian Reais) per share issued by CPFL Energia, subject to the following adjustments (“Per Share Price”): (i) the addition of approximately R$ 0,001879503 per share (which amount corresponds to 80% of CPFL Energia’s consolidated net income for the fiscal year ended on December 31st 2015 (as reported in CPFL Energia’s Form 20-F, filed with the United States of America Securities and Exchange Commission on April 15, 2016), calculated on a per share basis, and divided by 366) per day from and including January 1st, 2016 to and including the closing date of the Transaction; and (ii) the subtraction of a per share amount equal to any cash dividends or other cash distributions paid to CPFL Energia shareholders (or declared to CPFL Energia shareholders of record as of a date that is) on or after January 1, 2016 and prior to the closing (other than for the cash dividend declared on April 29, 2016). The value attributed by the Buyer to the shares of CPFL Energias Renováveis S.A. owned directly or indirectly by CPFL is of 3,168,935,347.80 (which currently represents the amount of R$12.20 per share of CPFL Energias Renováveis S.A.).
Página 31 de 73
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3Q16 Results | November 10, 2016 |
On September 22, 2016, CPFL Energia released through a Material Fact that, on that date, it was published in the Official Gazette the decision of the General Superintendent of the Administrative Council for Economic Defense (Conselho Nacional de Defesa Econômica) (CADE) for unrestricted approval of the Concentration Act No. 08700.006319/2016-39, authorizing (i) the sale of shares held by Camargo Corrêa S.A. and ESC Energia S.A. to the State Grid Brazil Power Participações Ltda. ("State Grid"), a Brazilian subsidiary of State Grid International Development Limited, as well as (ii) the potential acquisition of the shares held by other shareholders party to the Shareholders' Agreement of the Company, Energia São Paulo Fundo de Investimento em Ações, Bonaire Participações S.A. and BB Carteira Livre I Fundo de Investimento em Ações (vehicle of Caixa de Previdência dos Funcionários do Banco do Brasil – Previ), in the assumption of the exercise of the right of joint sale (tag along), and (iii) the possible launch of a public offer to acquire the outstanding shares of CPFL Energia, in the event of the sale of a sufficient amount of shares issued by CPFL Energia in accordance with applicable law.
On September 23, 2016, CPFL Energia released through a Material Fact that, the Chairman of its Board of Directors received, on that date, from its shareholder Caixa de Previdência dos Funcionários do Banco do Brasil – Previ (“Previ”), member of CPFL Energia’s controlling block, a letter in which it formalizes the exercise of tag along rights envisaged in the Shareholders Agreement, to sell together with ESC Energia S.A. and Camargo Corrêa S.A., its entire shareholding interest bound by the Shareholders’ Agreement of the Company, to State Grid Power Brazil Participações Ltda., a subsidiary of State Grid International Development Limited (“State Grid”). In the letter, Previ, a party to the Shareholders Agreement of CPFL Energia S.A., owning 196,276,558 ordinary shares bound to the referred Agreement, representing 19.28% of the capital stock of CPFL Energia, came, through its legal representatives, to communicate that, according to the letter sent by the Chairman of the Board of Directors of CPFL Energia, dated of September 2, 2016, which informed about the shares purchase agreement signed on September 2, 2016, between Camargo Corrêa S.A. and State Grid Brazil Power Participações Ltda. (“SPA”), as well as the provisions of the clause 11.4 of the Shareholders Agreement of CPFL Energia, Previ exercised the right of joint sale (tag along) of all shares bound to the Shareholders Agreement and the bonus shares resulting from the referred Agreement.
On September 28, 2016, CPFL Energia released through two Material Facts that the Chairman of its Board of Directors received, on that date, from the shareholder Energia São Paulo Fundo de Investimento em Ações (“Energia SP FIA”), member of CPFL Energia’s controlling block, the letter transcribed below, in which it formalizes the exercise of tag along rights envisaged in the Shareholders Agreement, to sell together with ESC Energia S.A. and Camargo Corrêa S.A., its entire shareholding interest bound by the Shareholders’ Agreement of the Company, to State Grid Brazil Power Participações Ltda., a subsidiary of State Grid International Development Limited (“State Grid”). In the letter, Energia SP FIA, Bonaire Participações S.A., Fundação Cesp, Fundação Sistel de Seguridade Social, Fundação Petrobras de Seguridade Social - Petros and Fundação Sabesp de Seguridade Social – SABESPREV, in response to the “Notice about Transfer of Shares” sent by Camargo Corrêa S.A. on September 2, 2016, irrevocably expressed their decision to exercise the tag along rights in accordance with Clause 11.4 (III) of the Shareholders Agreement of CPFL to sell all the shares they hold in CPFL bound by the Shareholders Agreement of the Company, as well as bonus shares resulting from the ownership of said bound shares. The signatories are legitimate direct and/or indirect holders of 112,196,990 common shares bound by said Shareholders’ Agreement and 2,813,417 bonus common shares not bound by said agreement, which will be sold to State Grid Brazil Power Participações Ltda. when the signatories adhere to the Share Purchase Agreement between State Grid International Development Limited, State Grid Brazil Power Participações Ltda., ESC Energia S.A. and Camargo Corrêa S.A., on September 2, 2016, in accordance with Clause 10.2 of the Share Purchase Agreement.
Página 32 de 73
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3Q16 Results | November 10, 2016 |
We reiterate that the effective completion of the transaction is still subject to the approval by the Electricity Regulatory Agency (Agência Nacional de Energia Elétrica) (ANEEL).
Since November 1st, 2016, CPFL Energia controls the distribution company AES Sul, which was renamed as RGE Sul. This company’s figures are still not consolidated in 3Q16 CPFL Energia results.
According to the Material Fact disclosed on October 31, 2016, the acquisition by CPFL Jaguariúna Participações Ltda. (“CPFL Jaguariúna”) of all shares of the capital stock of AES Sul Distribuidora Gaúcha de Energia S.A. (“AES Sul”) held by AES Guaíba II Empreendimentos Ltda. (“AES Guaíba”) was completed on this date (“Transaction”).
The closing of the Transaction was preceded by the completion of the necessary conditions precedent as provided in the purchase and sale of shares agreement executed on June 15, 2016 between AES Guaíba, CPFL Jaguariúna, CPFL Energia and The AES Corporation and its amendments.
The total price paid by CPFL Jaguariúna to AES Guaíba was of one billion four hundred and three million reais (R$ 1,403,000,000.00) added of two hundred and ninety five million four hundred and fifty five thousand reais (R$ 295,455,000.00) regarding a capital increase of AES Sul subscribed by AES Guaíba on February 26, 2016, totaling one billion six hundred and ninety eight million four hundred and fifty five thousand Reais (R$ 1,698,455,000.00) (“Acquisition Price”). The Acquisition Price shall be adjusted in up to forty five (45) days counted as of the date hereof, based on certain variations in working capital and net debt.
RGE Sul Profile
RGE Sul serves a concession area with 99,512 km², through 65,000 km of distribution networks and 60 substations.
In its area of operation, there are 1.3 million customers, which in 2015 consumed 8,864 GWh. Sales to the captive market totaled 7,808 GWh, while the volume billed through the Tariff for Use of the Distribution System (TUSD) was 1,056 GWh.
In 9M16, total consumption in the concession area was 6,697 GWh, down 2.2% over the same period of 2015. The retail sales totaled 5,722 GWh while the volume sold through the Tariff for Use of the Distribution System (TUSD) was 975 GWh.
3 Sources: Demonstrações Contábeis Regulatórias 2015, ITR 3Q16 and Aneel.
Página 33 de 73
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3Q16 Results | November 10, 2016 |
Sales by segment in the concession area – 9M16 | GWh
Some characteristics of the concession area:
· Serves the Porto Alegre Metropolitan Area (excluding the state capital): 50% of the market and 60% of customers
· Triunfo Petrochemical Complex
· Strong presence of agricultural production with relevant crops for the domestic market (rice) and foreign market (soybean)
· Relevant municipalities: Canoas, Novo Hamburgo, São Leopoldo, Sapucaia do Sul and Uruguaiana (34% of population)
With the incorporation of RGE Sul, CPFL Energia will serve 382 of 497 municipalities in Rio Grande do Sul. Thus, CPFL will control 65% of the market in the state.
CPFL Energia will continue to be the leader in the distribution segment with a market share of 14.3% through its 9 distribution companies, which together serve 679 municipalities and 9.1 million clients in the states of São Paulo, Rio Grande do Sul, Paraná and Minas Gerais.
Find below some indicators that show the relevance of the new asset to CPFL Energia:
Página 34 de 73
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3Q16 Results | November 10, 2016 |
|
Before AES Sul |
AES Sul |
After AES Sul |
Variation |
Municipalities (#) |
561 |
118 |
679 |
21% |
Concession area ('000 km2) |
204 |
100 |
304 |
49% |
Distribution network ('000 km) |
247 |
65 |
312 |
26% |
Clients (million) |
7,8 |
1,3 |
9,1 |
17% |
Sales in the Concession Area (GWh) |
58 |
9 |
67 |
16% |
Market Share (%) |
12,4 |
1,9 |
14,3 |
+1,9 p.p. |
Presence in RS municipalities (%) |
53 |
24 |
77 |
+24 p.p. |
Municipalities in IFDM (1) |
42 em 100 |
5 |
47 em 100 |
12% |
(1) FIRJAN Municipalities Development Index - Ranking based on the following quality of life criteria: i) Employment and Income; (ii) Education and (iii) Health | ||||
|
|
|
|
|
Regulatory outlook
The concession of RGE Sul will terminate in 11/6/2027 and the next tariff revision, which happens every 5 years, will be in April-18, when the 4th cycle of Tariff Revision will be applied.
For the current cycle, in force since April 2013, the figures below were considered:
4th Periodic Tariff Review Cycle |
RGE Sul |
Date |
Apr-13 |
Description |
Value (R$ Million) |
Gross Regulatory Asset Base (A) |
2,503 |
Depreciation Rate (B) |
3.71% |
Depreciation Quota (C = A x B) |
93 |
Net Regulatory Asset Base (D)1 |
1,489 |
Pre-tax WACC (E) |
11.36% |
Cost of Capital (F = D x E) |
160 |
Regulatory EBITDA (G = C + F) |
253 |
Regulatory OPEX (H) |
318 |
Parcel B (I = G + H) |
572 |
Productivity Index Parcel B (J) |
1.12% |
Parcel B with adjustments (K = I* (1 - J)) |
563 |
Other Revenues (L) |
20 |
Adjusted Parcel B (M = K - L) |
542 |
Parcel A (N) |
1,516 |
Required Revenue (O = M+ N) |
2,058 |
Note |
|
(1) Including R$ 95 million in RGR PLPT / Other investments, with differentiated remuneration (below WACC) |
Annual tariff readjustment
On April 12, 2016, through Ratifying Resolution n. 1,059, Aneel authorized an average tariff readjustment of +3.94%, composed by -1.89% related to the economic tariff adjustment and +5.83% related to the financial components external do the tariff readjustment, corresponding to an average effect of -0.34% to be perceived by consumers. The new tariffs came into force on April 19, 2016.
Página 35 de 73
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3Q16 Results | November 10, 2016 |
Economic-Financial Performance
DRE - RGE Sul (R$ Milhões) | |||
|
9M16 |
9M15 |
Var. |
Gross Operating Revenue |
3,844 |
4,240 |
-9.3% |
Net Operating Revenue |
2,111 |
2,495 |
-15.4% |
Cost of Electric Power |
(1,378) |
(1,845) |
-25.3% |
Operating Costs & Expenses |
(680) |
(554) |
22.9% |
EBIT |
53 |
97 |
-45.9% |
EBITDA |
157 |
195 |
-19.3% |
Financial Income (Expense) |
(102) |
(80) |
27.4% |
Income Before Taxes |
(50) |
17 |
- |
Net Income |
(34) |
10 |
- |
Operating Revenue
In 9M16, gross operating revenue reached R$ 3,844 million, representing a decrease of 9.3% (R$ 396 million). Net operating revenue totaled R$ 2,111 million, a decrease of 15.4% (R$ 384 million).
EBITDA
In 9M16, EBITDA totaled R$ 157 million, compared to R$ 195 million in 9M15, a decrease of 19.3%.
Net Income
In 9M16, net loss was R$ 34 million, compared to a net income of R$ 10 million in 9M15.
Balance of Sectoral Financial Assets and Liabilities
On September 30, 2016, the balance of sectoral financial assets and liabilities was a liability of R$ 71 million.
Debt
As part of incorporation process of the new company to CPFL Energia, the settlement of old debts held by AES Sul was carried out and replaced by an issue of debentures in the amount of R $ 1.1 billion (4th issue). This new debt has cost of 114.5% of CDI and 4-year tenor.
In addition, in order to fund the acquisition, two new debts were issued by CPFL Energia: (i) issuance of debentures of CPFL Energia in the amount of R$ 620 million; and (ii) issuance of debentures of CPFL Brasil (R$ 400 million). Both have cost of 114.5% of CDI and 4-year tenor.
For more details about the indebtedness of CPFL Energia, see Section 5 - Debt.
Página 36 de 73
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3Q16 Results | November 10, 2016 |
Investments
For the period 2016-2020, RGE Sul, under the command of CPFL Energia, plans to invest R$ 1,387 million.
For more details, see section 6.2 – Projected Capital Expenditures.
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3Q16 Results | November 10, 2016 |
Consolidated Income Statement - Distribution (Pro-forma - R$ Million) | ||||||
|
3Q16 |
3Q15 |
Var. |
9M16 |
9M15 |
Var. |
Gross Operating Revenue (IFRS)(1) |
5,739 |
7,382 |
-22.3% |
17,995 |
21,632 |
-16.8% |
Net Operating Revenue (IFRS)(1) |
3,265 |
3,802 |
-14.1% |
9,718 |
12,745 |
-23.8% |
Cost of Electric Power |
(2,387) |
(2,809) |
-15.1% |
(6,931) |
(9,250) |
-25.1% |
Operating Costs & Expenses |
(919) |
(797) |
15.3% |
(2,670) |
(2,448) |
9.0% |
EBIT |
259 |
444 |
-41.7% |
899 |
1,047 |
-14.1% |
EBITDA (IFRS)(2) |
386 |
561 |
-31.3% |
1,275 |
1,405 |
-9.2% |
Adjusted EBITDA(3) |
388 |
443 |
-12.3% |
1,309 |
1,308 |
0.1% |
Financial Income (Expense) |
(151) |
(125) |
20.4% |
(156) |
(254) |
-38.8% |
Income Before Taxes |
108 |
318 |
-66.1% |
743 |
793 |
-6.2% |
Net Income (IFRS) |
64 |
201 |
-68.2% |
469 |
511 |
-8.4% |
Adjusted Net Income(4) |
64 |
201 |
-68.2% |
469 |
564 |
-16.9% |
Notes:
(1) Excludes Construction Revenue;
(2) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization, as CVM Instruction no. 527/12;
(3) Adjusted EBITDA, besides the items mentioned above, excludes non-recurring effects and the exchange variation in Itaipu invoices (negative effect of R$ 3 million in 3Q16 compared to a positive effect of R$ 119 million in 3Q15);
(4) Adjusted Net Income excludes the non-recurring effects;
(5) The distributors’ financial performance tables are attached to this report in item 11.12.
On November 25, 2014, through Dispatch no. 4,621, Aneel approved the amendment to concession agreements of distribution companies, in order to include a specific clause guaranteeing that the balance remaining of any insufficient payment or reimbursement of tariff due to termination of the concession, for any reason, will be indemnified.
After this change, the Brazilian Securities and Exchange Commission (CVM) approved, in December 2014, through Deliberation no. 732, the recognition of assets and liabilities that were previously called “regulatory assets and liabilities” in the financial statements of the electric energy distributors, which are now called “sectoral financial assets and liabilities”.
In 3Q16, the total sectoral financial liabilities accounted for R$ 558 million, compared to an amount of sectoral financial assets of R$ 728 million in 3Q15, a variation of R$ 1,286 million. On September 30, 2016, the balance of sectoral financial assets and liabilities was negative in R$ 435 million (R$ 388 million, excluding the amount related to special obligations recorded according to the methodology of the 4th Cycle of Tariff Review), compared to a positive balance of R$ 130 million (R$ 170 million, excluding the amount related to special obligations recorded according to the methodology of the 4th Cycle of Tariff Review) on June 30, 2016.
Excluding the revenue from building the infrastructure of the concession (which does not affect the results, because of the related cost, in the same amount), gross operating revenue (IFRS) amounted to R$ 5,739 million in 3Q16, a decrease of 22.3% (R$ 1,643 million), due to the following factors:
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3Q16 Results | November 10, 2016 |
· Variation of R$ 1,286 million in the Sectoral Financial Assets and Liabilities, from an asset of R$ 728 million in 3Q15 to a liability of R$ 558 million in 3Q16;
· Decrease of 10.3% (R$ 647 million) in the revenue with energy sale (captive + free clients), due to the adoption of green tariff flag, in replacement of red tariff flag applied in 3Q15 and the reduction of 2.1% in the sales volume within the concession area , despite the positive average tariff adjustment in the distribution companies for the period between 3Q15 and 3Q16 (due to the annual tariff readjustments);
Partially offset by:
· Increase of 70.8% (R$ 178 million) in tariff subsidies (CDE resources), mainly due to discounts granted to consumers associated to ABRACE, that obtained an injunction to disoblige the payment of specific components of CDE 4;
· Increase of 210.6% (R$ 107 million) in Short-term Electric Energy; and
· Increase of 6.5% (R$ 4 million) in Other Revenues and Income.
The adjusted gross operational revenue, which excludes the effect of the exchange variation in Itaipu invoices over the sectoral financial assets and liabilities, reached R$ 5,741 million, a decrease of 20.8% (R$ 1,510 million) if compared to 3Q15.
Deductions from the gross operating revenue were R$ 2,474 million in 3Q16, representing a reduction of 30.9% (R$ 1,106 million), due to the following decreases:
· of 100.0% in tariff flags approved by the CCEE (R$ 501 million);
· of 32.7% in the CDE sector charge (R$ 383 million), due to the adoption of new CDE quotas (System Usage and Energy), in lower amount than the recorded in 2015, partially offset by the inclusion of CDE charges in order to cover ACR Account loans as of each disco´s 2015 tariff event;
· of 22.5% in PIS and COFINS taxes (R$ 154 million);
· of 6.4% in ICMS tax (R$ 74 million);
· of 11.7% in the R&D and Energy Efficiency Program (R$ 4 million);
· of 3.0% in other charges (R$ 0.1 million).
Partially offset by the increase:
· of 46.3% in the PROINFA (R$ 10 million).
Excluding the revenue from building the infrastructure of the concession (which does not affect the results because of the related cost, in the same amount), net operating revenue (IFRS) reached R$ 3,265 million in 3Q16, representing a reduction of 14.1% (R$ 537 million). Adjusted net operating revenue, which excludes non-recurring effects and the exchange variation in Itaipu invoices, reached R$ 3,268 million, a decrease of 11.3% (R$ 416 million).
The cost of electric energy, comprising the purchase of electricity for resale and charges for the use of the distribution and transmission system, amounted to R$ 2,387 million in 3Q16, representing a decrease of 15.1% (R$ 423 million):
4 Aneel Dispatch n. 1,576/2016 determined that distribution companies should deduct total effect of the injunction from the payment of monthly quotas of CDE. Thus, it was recorded as revenue in “Energy development account – CDE” with a counterpart in “Receivables – Eletrobrás”, in the amount of R$ 186 million.
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3Q16 Results | November 10, 2016 |
· The cost of electric power purchased for resale was R$ 2,108 million in 3Q16, representing a reduction of 11.5% (R$ 274 million), due to the following factors:
(i) Decrease of 41.4% (R$ 326 million) in the cost of energy from Itaipu, mainly due to the 40.8% decrease in the average purchase price (from R$ 305.77/MWh in 3Q15 to R$ 180.93/MWh in 3Q16) and by the reduction of 0.9% (23 GWh) in the volume of purchased energy;
(ii) Reduction of 40.6% (R$ 44 million) in the cost of energy purchased in the short term and Proinfa, mainly due to the reductions of 70.9% in the volume of purchased energy (294 GWh) and of average PLD (from R$ 204.07/MWh in 3Q15 to R$ 116.01/MWh in 3Q16, in the Southeast/Midwest submarket, and from R$ 192.70/MWh in 3Q15 to R$ 112.05/MWh in 3Q16, in the South submarket), partially offset by the 15.0% increase in the average purchase price (from R$ 268.07/MWh in 3Q15 to R$ 308.22/MWh in 3Q16);
Partially offset by:
(iii) Increase of 4.0% (R$ 68 million) in the cost of energy purchased in the regulated environment and bilateral contracts, mainly due to the increase of 15.2% (1,365 GWh) in the volume of purchased energy, despite the 9.7% increase in the average purchase price (from R$ 191.87/MWh in 3Q15 to R$ 173.21/MWh in 3Q16);
(iv) Reduction of 11.5% (R$ 28 million) in PIS and COFINS tax credits (cost reducer), generated from the energy purchase.
· Charges for the use of the transmission and distribution system reached R$ 278 million in 3Q16, representing a decrease of 34.9% (R$ 149 million) increase, due to the following factors:
(i) Decrease of 94.2% in the energy reserve charges – EER ( R$ 90 million);
(ii) Decrease of 47.4% in the system service usage charges – ESS (R$ 76 million), due to the reduction in the PLD;
Partially offset by:
(iii) Decrease of 34.9% (R$ 15 million) in PIS and COFINS tax credits (cost reducer), generated from the charges; and
(iv) Increase of 1.1% (R$ 2 million) in the basic network, connection, use of the distribution system and Itaipu transmission charges.
Operating costs and expenses (IFRS) were R$ 919 million in 3Q16, a increase of 15.3% (R$ 122 million) if compared to 3Q15.
(i) Increase of 13.1% in the PMSO item (R$ 54 million), that reached R$ 470 million in 3Q16, compared to R$ 415 million in 3Q15. The table below lists the main variation in PMSO:
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3Q16 Results | November 10, 2016 |
Reported PMSO (R$ million) | ||||
|
3Q16 |
3Q15 |
Variation | |
|
R$ MM |
% | ||
Reported PMSO (IFRS) |
|
|
|
|
Personnel |
(167.3) |
(163.4) |
(3.9) |
2.4% |
Material |
(32.6) |
(26.2) |
(6.4) |
24.6% |
Outsourced Services |
(163.6) |
(133.4) |
(30.2) |
22.7% |
Other Operating Costs/Expenses |
(106.2) |
(92.3) |
(13.9) |
15.0% |
Legal, judicial and indemnities expenses |
(32.5) |
(31.3) |
(1.3) |
4.0% |
Allowance for doubtful accounts |
(29.3) |
(41.2) |
12.0 |
-29.0% |
Others |
(44.4) |
(19.8) |
(24.6) |
124.3% |
Total Reported PMSO (IFRS) - (A) |
(469.7) |
(415.3) |
(54.4) |
13.1% |
This variation is explained mainly by the following aspects:
(i.1) Personnel expenses, that recorded an increase of 2.4% (R$ 4 million), mainly due to: collective bargaining agreement – wages and benefits (R$ 13 million), partially offset by reversal provision assumed by the sponsors of the Fundação Cesp regarding to INSS tax collection over medical cooperatives (R$ 6 million)
(i.2) Decrease of 24.6% in Material (R$ 6 million), mainly explained due to replacement of the line and grid, machinery and equipment (R$ 4 million) and fleeting maintenance (R$ 2 million)
(i.3) Out-sourced services expenses, which registered an increase of 22.7% (R$ 30 million), mainly due to increase in the expenses in: collection actions (R$ 7 million), tree puning (R$ 5 million), maintenance of the power grid (R$ 3 million), meter reading and use (R$ 3 million) and other outsourced services – auditing and consulting services, hardware/software maintenance, bill delivery and collection, call center, buildings conservation and maintenance (R$ 12 million);
(i.4) Other operational costs/expenses, that registered an increase of 15.0% (R$ 14 million), mainly due to:
· INSS expenses recovery that registered in 3Q15 (R$ 13 million)
· Increase of 176.9% in assets disposal (R$ 4 million)
· Increase of 4.0% in allowance for doubtful accounts (R$ 1 million), due to deterioration of the macroeconomic scenario and tariff adjustments that occurred in 2015;
· Expenses with publicity and advertising (R$ 1 million)
· Operating fines (DIC, FIC, DMIC and DICRI) (R$ 1 million)
· Other effects (R$ 7 million) and;
· Decrease of 30.4% of legal and court expenses (R$ 13 million).
(ii) Increase of 20.8% (R$ 52 million) in the cost of building the infrastructure of the concession. This item, which reached R$ 299 million in 3Q16, has its counterpart in the “operating revenue”;
(iii) Increase of 42.5% in the Private Pension Fund expenses (R$ 7 million), due to
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3Q16 Results | November 10, 2016 |
actuarial report update
(iv) Increase of 7.3% (R$ 8 million) in Depreciation and Amortization.
(v) Increase of 18.0% (R$ 1 million) in Intangible of Concession Amortization
EBITDA (IFRS) totaled R$ 386 million in 3Q16, registering a decrease of 31.3% (R$ 176 million). Adjusted EBITDA, which excludes non-recurring effects and the exchange variation in Itaipu invoices, reached R$ 388 million, representing a decrease of 12.3% (R$ 54 million).
EBITDA Conciliation - IFRS x Adjusted (R$ million) | |||
|
3Q16 |
3Q15 |
Var. |
EBITDA - IFRS (A) |
386 |
561 |
-31.3% |
Exchange variation in Itaipu invoices (B) |
3 |
(119) |
|
Adjusted EBITDA (A + B + C) |
388 |
443 |
-12.3% |
In 3Q16, the net financial result (IFRS) recorded a net financial expense of R$ 151 million, compared to a net financial expense of R$ 125 million in 3Q15. The adjusted net financial result, which disregard the effects of exchange variation in Itaipu invoices, recorded a net financial expense of R$ 154 million, compared to a net financial expense of R$ 7 million in 3Q15.
Financial Result (IFRS - R$ Million) | |||
3Q16 | 3Q15 | Var. | |
Financial Revenues | 234 | 302 | -22.6% |
Financial Expenses | (385) | (427) | -10.0% |
Financial Result | (151) | (125) | 20.4% |
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3Q16 Results | November 10, 2016 |
Financial Result (Adjusted - R$ million) | |||
3Q16 | 3Q15 | Var. | |
Financial Revenue | |||
Income from Financial Investments | 103 | 28 | 269.7% |
Late payment interest and fines | 56 | 55 | 0.6% |
Adjustment for inflation of tax credits | 6 | 1 | 421.3% |
Adjustment for inflation of escrow deposits | 9 | 23 | -61.2% |
Adjustment for inflation and exchange rate changes | 27 | 25 | 6.7% |
Adjustment of expected cash flow | 49 | 125 | -60.6% |
Discount on purchase of ICMS credit | 2 | 2 | -3.8% |
Adjustments to the sectoral financial asset | (6) | 55 | - |
PIS and Cofins on financial revenue | (18) | (16) | 13.1% |
Other | 7 | 4 | 78.5% |
Total | 234 | 302 | -22.6% |
Financial Expense | |||
Interest on debts | (169) | (170) | -0.4% |
Adjustment for inflation and exchange rate changes* | (181) | (111) | 62.7% |
(-) Capitalized interest | 3 | 3 | 21.2% |
Adjustments to the sectoral financial liability | (1) | 0 | - |
Other | (39) | (31) | 27.5% |
Total | (387) | (309) | 25.4% |
Net financial revenue (expense) | (154) | (7) | 2156.5% |
Note: The effect of exchange variation in Itaipu invoices was positive in R$ 3 million in 3Q16 and negative in R$ 119 million in 3Q15.
The items explaining these changes are as follows:
· Financial Revenue: in IFRS, decrease of 22.6% (R$ 68 million), from R$ 302 million in 3Q15 to R$ 234 million in 3Q16, mainly due to the following factors:
(i) Decrease of 60.6% (R$ 76 million) in the adjustment of expected cash flow (adjustments of the concession’s financial asset), due to: (a) the adoption of the 4th Cycle of Periodic Tariff Revision of CPFL Piratininga, in 3Q15, when the reinstatement of the Regulatory Asset Base positively impacted in the amount R$ 72 million (b) lower inflation (IGP-M of 1.70% in 3Q15 vs IPCA of 1.31% in 3Q16) 5; and (c) the reduction in concession’s financial asset observed in the distributors which have gone through the concession renewal process at the end of 2015 (CPFL Santa Cruz, CPFL Leste Paulista, CPFL Sul Paulista, CPFL Jaguari, and CPFL Mococa) 6;
(ii) Decrease of R$ 61 million in adjustments of sectoral financial asset, from a revenue of R$ 55 million in 3Q15 to an expense of R$ 6 million in 3Q16;
(iii) Reduction of 61.2% (R$ 14 million) in adjustments for inflation of escrow deposits;
5 In November 2015, through the Resolution (REN) n. 686/2015, ANEEL approved changes in the PRORET (Tariff Regulation Procedures), sub-module 2.3, including the replacement of the IGP-M inflation index by the IPCA inflation index to update the regulatory asset base.
6 In order to calculate the split between the intangible asset and concession’s financial asset, it must be considered the useful life of assets. The portion of the useful life that will occur by the end of the concession is classified as an intangible asset and the residual value is classified as concession’s financial asset, referring to the compensation that the distributor will receive when the assets are reversed to the Grantor.
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3Q16 Results | November 10, 2016 |
(iv) Increase of 13.1% in PIS and COFINS on financial revenues (R$ 2 million);
Partially offset by:
(v) Increase of 269.7% (R$ 75 million) in the income from financial investments, due to the increases in the average balance of investments;
(vi) Increase of 421.5% in adjustments for inflation of tax credits (R$ 5 million);
(vii) Increase of R$ 3 million in other financial revenues;
(viii) Increase of 6.7% (R$ 2 million) in adjustments for inflation and exchange rate changes, due to: (a) the increase of R$ 4 million in revenues from fines, interest and monetary adjustment relating to installment payments made by consumers; partially offset by (b) the decrease of R$ 2 million in the adjustment of the balance of tariff subsidies, as determined by Aneel;
(ix) Increase of 0.6% in late payment interest and fines (R$ 0.3 million).
· Financial Expense: in IFRS, decrease of 10.0% (R$ 43 million), from R$ 427 million in 3Q15 to R$ 385 million in 3Q16. In adjusted figures, which disregard the effects of exchange variation in Itaipu invoices, there was an increase of 25.4% (R$ 79 million), mainly due to the following factors:
(i) Increase of 62.7% (R$ 70 million) in adjustments for inflation and exchange rate changes, disregarding the effects of exchange variation in Itaipu invoices, due to: (a) the mark-to-market negative effect for financial operations under Law 4,131 – non-cash effect (R$ 79 million) ; partially offset by (b) the decrease of debt charges in foreign currency, with swap to CDI interbank rate (R$ 9 million);
(ii) Increase of 27.5% (R$ 8 million) in other financial expenses;
(iii) Increase of R$ 1 million in the adjustments to the sectoral financial liability;
Partially offset by:
(iv) Decrease of 0.4% (R$ 1 million) in interest on debt in local currency.
In 3Q16, Net Income (IFRS) was R$ 64 million, registering a decrease of 68.2% (R$ 137 million).
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3Q16 Results | November 10, 2016 |
Tariff Process Schedule | |
Disco |
Date |
CPFL Santa Cruz |
March 22nd* |
CPFL Leste Paulista |
March 22nd* |
CPFL Jaguari |
March 22nd* |
CPFL Sul Paulista |
March 22nd* |
CPFL Mococa |
March 22nd* |
CPFL Paulista |
April 8th |
RGE Sul |
April 19th |
RGE |
June 19th |
CPFL Piratininga |
October 23rd |
* In the Public Hearing 038/2015, held by ANEEL, the review dates have been effectively changed to March 22. The date previously used for the adjustments of these distributors was February 3.
CPFL Piratininga
Aneel Ratifying Resolution No. 2,157 of October 21, 2016 adjusted electric energy tariffs of CPFL Piratininga by -12.54%, being -5.35% related to the Tariff Adjustment and -7.19% as financial components outside the Tariff Adjustment, corresponding to an average effect of -24.21% on consumer billings. The impact of the Parcel A (Energy, Transmission Charges and Sector Charges) in the Adjustment was of -7.02% and of the Parcel B was of 1.67%. The new tariffs came into force on October 23, 2016.
RGE
Aneel Ratifying Resolution No. 2,082 of June 17, 2016 has adjusted electric energy tariffs of RGE by -1.48%, being -0.67% related to the Tariff Adjustment and -0.81% as financial components outside the Tariff Adjustment. This Tariff Adjustment replaces the ETR, which corresponds to an average effect of -7.51% on consumer billings. The impact of the Parcel A (Energy, Transmission Charges and Sector Charges) in the Adjustment was of -2.98% and of the Parcel B was of -2.31%. The negative Adjustment is explained by: (i) the reduction in CDE quota for 2016, (ii) the lower tariff, in dollars, of the Itaipu agreement, and (iii) the higher energy volume under the quota regime. The new tariffs came into force on June 19, 2016.
CPFL Paulista
On April 5, 2016, through Ratifying Resolution No. 2,056, Aneel adjusted the electricity tariffs of CPFL Paulista by 9.89 % and -0.29% for the Economic Tariff Adjustment (ETR) and 10.17% related to financial components external to the Tariff Adjustment, corresponding to an average effect of 7.55% to be perceived by consumers. The impact of Parcel A (Energy Transmission charges and sector charges) in the Adjustment was -2.06% and Parcel B 1.78%. The new tariffs came into force on April 8, 2016.
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3Q16 Results | November 10, 2016 |
Tariff Review | |||
Distributor |
Periodicity |
Next Review |
Cycle |
CPFL Paulista |
Every 5 years |
April 2018 |
4th PTRC |
RGE Sul |
Every 5 years |
April 2018 |
4th PTRC |
RGE |
Every 5 years |
June 2018 |
4th PTRC |
CPFL Piratininga |
Every 4 years |
October 2019 |
5th PTRC |
CPFL Santa Cruz |
Every 5 years |
March 2021* |
5th PTRC |
CPF Leste Paulista |
Every 5 years |
March 2021* |
5th PTRC |
CPFL Jaguari |
Every 5 years |
March 2021* |
5th PTRC |
CPFL Sul Paulista |
Every 5 years |
March 2021* |
5th PTRC |
CPFL Mococa |
Every 5 years |
March 2021* |
5th PTRC |
* In the Public Hearing 038/2015, held by Aneel, the review dates have been effectively changed to March 22. The date previously used for the adjustments of these distributors was February 3.
4th Periodic Tariff Review Cycle |
CPFL Piratininga |
Sta. Cruz |
Sul Paulista |
Leste Paulista |
Mococa |
Jaguari |
Data |
Oct/15 |
Mar-16 |
Mar-16 |
Mar-16 |
Mar-16 |
Mar-16 |
Description |
Value (R$ Million) |
Value (R$ Million) |
Value (R$ Million) |
Value (R$ Million) |
Value (R$ Million) |
Value (R$ Million) |
Gross Regulatory Asset Base (A) |
3,020 |
328 |
210 |
151 |
113 |
89 |
Depreciation Rate (B) |
3.65% |
3.69% |
3.77% |
3.81% |
3.77% |
3.76% |
Depreciation Quota (C = A x B) |
110 |
12 |
8 |
6 |
4 |
3 |
Net Regulatory Asset Base (D) |
1,906 |
194 |
124 |
102 |
72 |
62 |
Pre-tax WACC (E) |
12.26% |
12.26% |
12.26% |
12.26% |
12.26% |
12.26% |
Cost of Capital (F = D x E) |
234 |
24 |
15 |
12 |
9 |
8 |
Special Obligations (G) |
10 |
2 |
1 |
0 |
0 |
0 |
Regulatory EBITDA (H = C + F + G) |
354 |
38 |
24 |
19 |
13 |
11 |
Regulatory OPEX (I) |
447 |
82 |
33 |
28 |
21 |
21 |
Parcel B (J = H + I) |
801 |
120 |
56 |
47 |
35 |
33 |
Productivity Index Parcel B ( K ) |
1.22% |
1.18% |
1.17% |
1.19% |
1.21% |
1.30% |
Quality Incentive Mechanism ( L) |
0.00% |
-0.33% |
0.00% |
-0.33% |
1.00% |
-0.64% |
Parcel B with adjusts (M = J * (K - L) |
791 |
119 |
56 |
46 |
34 |
33 |
Other Revenues (N) |
36 |
3 |
1 |
1 |
1 |
1 |
Adjusted Parcel B (O = M - N) |
755 |
116 |
54 |
45 |
33 |
31 |
Parcel A (P) |
3,649 |
319 |
117 |
84 |
58 |
138 |
Required Revenue (Q = O + P) |
4,404 |
436 |
171 |
130 |
91 |
169 |
Notes:
1) Management, Operation and Maintenance costs;
2) Annual cost of facilities and properties.
CPFL Santa Cruz, CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista and CPFL Mococa
On March 22, 2016, Aneel approved the result of the fourth Periodic Tariff Review of the distributors CPFL Santa Cruz, CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista and CPFL Mococa. Compared to the Extraordinary Tariff Review March 2015, the average effect for consumers was 7.2% for CPFL Santa Cruz, 12.8% for CPFL Sul Paulista, 13.3% for CPFL Leste Paulista, 9.0% for CPFL Mococa and 13.3% to CPFL Jaguari. The details can be found in the table above. The new tariffs came into force on March 22, 2016.
Since October 2015, CPFL Energia’s concession area has been experiencing high rainfall levels and higher lightning strike, which has increased the flood events, hampering the access of our teams and damaging our substations. Moreover, the lower amount of purges by critical days given the change in the factor of the occurrence threshold for reaching the critical day, has negatively impacted the operational indicators. The limit factor considers the last 24 months; 2013 had few occurrences, while 2015 had a higher number of occurrences.
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3Q16 Results | November 10, 2016 |
In 3Q16, CPFL Mococa’s SAIDI increased significantly due to a fire in an energy substation of a transmission company in the concession area. CPFL Energia operated in two fronts to restore the energy supply: through energy supply transference and through the installation of a mobile transfer.
Below we are presenting the results achieved by the distribution companies with regard to the main indicators that measure the quality and reliability of their supply of electric energy. The SAIDI (System Average Interruption Duration Index) measures the average duration, in hours, of interruption per consumer per year. The SAIFI (System Average Interruption Frequency Index) measures the average number of interruptions per consumer per year. The indicators suffered a soft increase due to climate phenomena mentioned above.
SAIDI and SAIFI Indexes1 | ||||||||||||
Distributor |
SAIDI (hours) |
SAIFI (interruptions) | ||||||||||
2012 |
2013 |
2014 |
2015 |
3Q16 |
ANEEL1 |
2012 |
2013 |
2014 |
2015 |
3Q16 |
ANEEL1 | |
CPFL Paulista |
7.48 |
7.14 |
6.93 |
7.76 |
8.34 |
7.92 |
5.37 |
4.73 |
4.89 |
4.89 |
5.20 |
7.06 |
CPFL Piratininga |
5.66 |
7.44 |
6.98 |
7.24 |
7.03 |
7.35 |
4.24 |
4.58 |
4.19 |
4.31 |
3.82 |
6.45 |
RGE |
14.61 |
17.35 |
18.77 |
15.98 |
14.90 |
12.92 |
8.94 |
9.04 |
9.14 |
8.33 |
7.53 |
9.97 |
CPFL Santa Cruz |
5.28 |
6.97 |
6.74 |
8.46 |
7.38 |
9.44 |
5.83 |
6.82 |
5.29 |
6.34 |
4.62 |
9.08 |
CPFL Jaguari |
4.49 |
5.92 |
5.41 |
6.93 |
7.12 |
8.00 |
4.66 |
5.43 |
4.32 |
4.61 |
5.79 |
8.00 |
CPFL Mococa |
5.83 |
4.86 |
6.88 |
7.04 |
10.94 |
10.19 |
5.69 |
4.93 |
7.31 |
5.92 |
6.80 |
8.79 |
CPFL Leste Paulista |
8.26 |
7.58 |
8.48 |
7.92 |
7.83 |
9.79 |
6.57 |
6.33 |
6.30 |
5.67 |
5.19 |
8.49 |
CPFL Sul Paulista |
10.80 |
9.08 |
9.69 |
11.51 |
16.05 |
10.46 |
9.01 |
6.71 |
7.03 |
9.47 |
12.42 |
8.73 |
1) Regulatory Agency (ANEEL) Limits - 2016
Find below the losses of the distributors during the quarter and the overall performance during the last quarters:
12M Accumulated Losses1 |
Technical Losses |
Non-Technical Losses |
Total Losses | ||||||||||||
4Q15 |
1Q16 |
2Q16 |
3Q16 |
ANEEL2 |
4Q15 |
1Q16 |
2Q16 |
3Q16 |
ANEEL2 |
4Q15 |
1Q16 |
2Q16 |
3Q16 |
ANEEL2 | |
CPFL Energia |
6.31% |
6.31% |
6.40% |
6.36% |
6.32% |
2.03% |
2.53% |
2.61% |
2.57% |
1.77% |
8.34% |
8.84% |
9.01% |
8.93% |
8.09% |
CPFL Paulista |
3.51% |
3.54% |
3.62% |
3.59% |
6.32% |
1.12% |
1.42% |
1.38% |
1.42% |
1.98% |
4.63% |
4.96% |
5.00% |
5.01% |
8.30% |
CPFL Piratininga |
4.52% |
4.48% |
4.52% |
4.51% |
5.52% |
2.40% |
2.86% |
2.87% |
2.82% |
1.43% |
6.92% |
7.34% |
7.39% |
7.34% |
6.95% |
RGE |
7.64% |
7.55% |
7.45% |
7.45% |
7.28% |
1.63% |
1.98% |
2.63% |
2.29% |
1.87% |
9.27% |
9.53% |
10.08% |
9.73% |
9.15% |
CPFL Santa Cruz |
8.34% |
8.72% |
8.79% |
8.65% |
7.76% |
0.47% |
0.79% |
0.81% |
1.15% |
0.52% |
8.81% |
9.51% |
9.60% |
9.80% |
8.28% |
CPFL Jaguari |
3.48% |
3.43% |
3.36% |
3.35% |
4.28% |
0.90% |
1.31% |
1.83% |
1.27% |
0.40% |
4.37% |
4.73% |
5.19% |
4.62% |
4.67% |
CPFL Mococa |
7.69% |
7.79% |
7.75% |
7.71% |
8.17% |
1.90% |
2.56% |
2.62% |
2.46% |
0.57% |
9.58% |
10.35% |
10.36% |
10.17% |
8.74% |
CPFL Leste Paulista |
8.64% |
8.48% |
8.51% |
8.57% |
7.81% |
3.13% |
3.76% |
2.94% |
3.24% |
1.15% |
11.76% |
12.23% |
11.44% |
11.81% |
8.96% |
CPFL Sul Paulista |
7.42% |
7.66% |
7.83% |
8.13% |
5.94% |
0.22% |
0.91% |
1.24% |
1.46% |
0.20% |
7.64% |
8.57% |
9.07% |
9.59% |
6.15% |
1) The data above are adequate to a better comparison with the regulatory losses trajectory defined by the Regulatory Agency (ANEEL). In CPFL Piratininga and RGE accounts, the high-tension customers are excluded.
2) The values of regulatory targets and trajectories losses are defined in the periodic tariff review (RTP). CPFL Paulista and RGE are on the 3rd PTRC and other distributors are in 4th PTRC.
The consolidated losses index of CPFL Energia was from 8.32% in 3Q15 to 8.93% in 3Q16, an increase of 0.61 b.p. This increase is mainly due to changes in the market breakdown, with increasing low voltage customers share, increase of energy injected in distribution lines (energy generated in SHPPs and transported to basic network) and worse macroeconomic scenario.
Página 47 de 73
|
3Q16 Results | November 10, 2016 |
However, when we compare to 2Q16 losses index, we note an improvement due to the lower impact of unbilled and higher collections actions aiming commercial losses (higher number of inspections in 8.0% in comparison to 2Q16). It is also important to highlight that the technical losses has reduced in the quarter.
In the 9M16, CPFL Energia invested R$ 26.7 million in anti-loss program. Of the total, R$ 23.9 million were designated to managerial expenses (removal of irregular connections and actions against fraud), totalizing 203 thousand inspections and R$ 2.8 million to operational investments (replacement of meters).
Find below losses in low voltage market and how was the performance during the quarters:
12-month Accumulated Losses - LV |
Non-technical Losses / LV | ||||
4Q15 |
1Q16 |
2Q16 |
3Q16 |
ANEEL | |
CPFL Paulista |
4.89% |
6.24% |
6.04% |
6.19% |
4.61% |
CPFL Piratininga |
6.51% |
7.81% |
7.81% |
7.69% |
3.90% |
RGE |
4.03% |
4.89% |
6.50% |
5.58% |
4.41% |
CPFL Santa Cruz |
0.91% |
1.53% |
1.57% |
2.27% |
0.98% |
CPFL Jaguari |
3.60% |
5.31% |
7.50% |
5.20% |
1.60% |
CPFL Mococa |
3.29% |
4.49% |
4.61% |
4.35% |
0.98% |
CPFL Leste Paulista |
5.49% |
6.67% |
5.19% |
5.82% |
1.96% |
CPFL Sul Paulista |
0.57% |
2.23% |
2.91% |
3.25% |
0.51% |
1) The data above are adequate to a better comparison with the regulatory losses trajectory defined by the Regulatory Agency (ANEEL). In CPFL Piratininga and RGE accounts, the high-tension customers are excluded.
2) The values of regulatory targets and trajectories losses are defined in the periodic tariff review (PTR). CPFL Paulista and RGE are on the 3rd PTRC and other distributors are in 4th PTRC.
Consolidated Income Statement - Commercialization and Services (Pro-forma - R$ Million) | ||||||
|
3Q16 |
3Q15 |
Var. |
9M16 |
9M15 |
Var. |
Gross Operating Revenue |
792 |
593 |
33.6% |
2,038 |
1,758 |
15.9% |
Net Operating Revenue |
705 |
526 |
34.0% |
1,812 |
1,557 |
16.4% |
EBITDA (IFRS)(1) |
81 |
38 |
111.6% |
165 |
127 |
30.2% |
Net Income (IFRS) |
55 |
35 |
55.7% |
105 |
104 |
0.9% |
Note:
EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization;
Operating Revenue
In 3Q16, gross operating revenue reached R$ 792 million, representing an increase of 33.6% (R$ 199 million), while net operating revenue were up by 34.0% (R$ 179 million) to R$ 705 million.
EBITDA
In 3Q16, EBITDA totaled R$ 81 million, compared to R$ 38 million in 3Q15, an increase of 111.6%.
Net Income
In 3Q16, net income amounted to R$ 55 million, compared to a net income of R$ 35 million in 3Q15.
Página 48 de 73
|
3Q16 Results | November 10, 2016 |
Consolidated Income Statement - Conventional Generation - IFRS (Pro-forma - R$ Million) | ||||||
|
3Q16 |
3Q15 |
Var. |
9M16 |
9M15 |
Var. |
Gross Operating Revenue |
283 |
273 |
3.4% |
814 |
789 |
3.3% |
Net Operating Revenue |
256 |
249 |
3.0% |
739 |
719 |
2.8% |
Cost of Electric Power |
(23) |
(77) |
-70.4% |
(70) |
(177) |
-60.7% |
Operating Costs & Expenses |
(53) |
(54) |
-2.7% |
(166) |
(157) |
5.8% |
EBITDA(1) |
280 |
193 |
44.8% |
795 |
606 |
31.2% |
Net Income |
116 |
44 |
166.8% |
348 |
166 |
109.9% |
Note: (1) EBITDA is calculated from the sum of net income, taxes, financial result and depreciation/amortization
Consolidated Income Statement - Conventional Generation - Adjusted(1) (Pro-forma - R$ Million) | ||||||
|
3Q16 |
3Q15 |
Var. |
9M16 |
9M15 |
Var. |
Gross Operating Revenue |
497 |
544 |
-8.7% |
1,488 |
1,618 |
-8.0% |
Net Operating Revenue |
452 |
495 |
-8.6% |
1,354 |
1,472 |
-8.0% |
Cost of Electric Power |
(32) |
(102) |
-69.0% |
(99) |
(280) |
-64.7% |
Operating Costs & Expenses |
(123) |
(175) |
-29.7% |
(395) |
(536) |
-26.2% |
EBIT |
297 |
217 |
36.7% |
860 |
656 |
31.1% |
EBITDA |
354 |
277 |
27.9% |
1,031 |
834 |
23.6% |
Adjusted EBITDA(2) |
354 |
331 |
6.8% |
1,023 |
1,013 |
1.0% |
Financial Income (Expense) |
(142) |
(160) |
-10.9% |
(392) |
(447) |
-12.4% |
Income Before Taxes |
155 |
57 |
169.2% |
468 |
209 |
124.2% |
Net Income |
106 |
44 |
142.2% |
318 |
150 |
111.2% |
Adjusted Net Income(2) |
106 |
80 |
32.9% |
313 |
268 |
16.5% |
Notes:
(1) Proportional Consolidation of Conventional Generation (Ceran, Baesa, Enercan, Foz do Chapecó and Epasa);
(2) Excluding the non-recurring effects in the EBITDA and in the Net Income.
Operating Revenue
In 3Q16, Gross Operating Revenue, considering the proportional consolidation of Conventional Generation, reached R$ 497 million, a reduction of 8.7% (R$ 47 million).
The variation in the gross operating revenue is mainly due to the following factors:
(i) Reduction in Epasa’s revenues, in the amount of R$ 69 million, reflecting the lower dispatch and lower cost of acquisition of fuel oil;
(ii) Reduction of revenue with the strategy put in place for the seasonality of physical guarantee in 3Q16 (R$ 36 million). In the Net Revenue, the seasonality of physical guarantee effect was R$ 31 million in 3Q16;
Partially offset by:
(iii) Revenue increase due to prices adjustments in the PPAs of the Company’s hydroelectric power plants (Semesa, Ceran, Baesa, Enercan, Foz do Chapecó and Jaguari Geração) (R$ 47 million);
(iv) Other effects (R$ 7 million).
The Net Operating Revenue reached R$ 452 million, a decrease of 8.6% (R$ 43 million).
Página 49 de 73
|
3Q16 Results | November 10, 2016 |
Cost of Electric Power
In 3Q16, the cost of electric power, considering the proportional consolidation of Conventional Generation, reached R$ 32 million, a reduction of 69.0% (R$ 71 million), due mainly to the following factors:
(i) Reduction of 90.0% in electric energy purchased for resale (R$ 73 million), due to:
ü Reduction of R$ 34 million with GSF costs from R$ 36 million in 3Q15 – non-recurring effect - to R$ 3 million in 3Q16 7.
ü Reduction of the energy purchased cost due to the strategy put in place for the seasonality of physical guarantee in 3Q16 (R$ 30 million). In 3Q15, the seasonality of physical guarantee effect was a loss of R$ 7 million – non-recurring effect;
ü Reduction in purchase energy from bilateral contracts (R$ 9 million);
Partially offset by:
(ii) Increase of 10.6% in transmission and distribution network usage charges (R$ 2 million).
The operating costs and expenses, considering the proportional consolidation of Conventional Generation, reached R$ 123 million in 3Q16, compared to R$ 175 million in 3Q15, a reduction of 29.7% (R$ 52 million), due to the variations in:
(i) The adjusted PMSO item, that reached R$ 66 million in 3Q16, compared to R$ 115 million in 3Q15, registering a reduction of 43.0% (R$ 23 million).
The table below lists the main variation in PMSO:
7 GSF of R$ 19 million, discounted the application of the percentage for GSF reimbursement, which covered the energy volume that was renegotiated in 2015
Página 50 de 73
|
3Q16 Results | November 10, 2016 |
MANAGERIAL ADJUSTMENTS IN PMSO, FOR COMPARISON PURPOSES (R$ million) | ||||
|
3Q16 |
3Q15 |
Variation | |
|
R$ MM |
% | ||
Reported PMSO (IFRS) |
|
|
|
|
Personnel |
(8.0) |
(8.5) |
0.4 |
-4.9% |
Material |
(0.7) |
(0.1) |
(0.6) |
488.2% |
Outsourced Services |
(4.3) |
(4.0) |
(0.2) |
6.0% |
Other Operating Costs/Expenses |
(9.1) |
(8.9) |
(0.1) |
1.6% |
Total Reported PMSO (IFRS) - (A) |
(22.0) |
(21.5) |
(0.5) |
2.4% |
Proportional Consolidation |
|
|
|
|
Personnel |
(3.6) |
(3.1) |
(0.6) |
18.0% |
Material |
(21.3) |
(77.0) |
55.7 |
-72.3% |
Outsourced Services |
(4.7) |
(4.9) |
0.3 |
-5.1% |
Other Operating Costs/Expenses |
(12.3) |
(8.9) |
(3.4) |
38.2% |
Total Proportional Consolidation - (B) |
(41.9) |
(93.9) |
52.0 |
-55.4% |
Adjusted PMSO |
|
|
|
|
Personnel |
(11.7) |
(11.5) |
(0.1) |
1.2% |
Material |
(22.0) |
(77.1) |
55.2 |
-71.5% |
Outsourced Services |
(8.9) |
(8.9) |
0.0 |
-0.1% |
Other Operating Costs/Expenses |
(23.2) |
(17.8) |
(5.4) |
30.5% |
GSF Risk Premium |
(8.9) |
- |
(8.9) |
- |
Others |
(14.4) |
(17.8) |
3.4 |
-19.3% |
Total Adjusted PMSO - (C) = (A) + (B) |
(65.8) |
(115.4) |
49.6 |
-43.0% |
This variation is explained mainly by the following aspects:
(i.1) Decrease of 71.5% in Material (R$ 55 million), mainly explained by additional material expenses related to the oil acquisition by Epasa (Termonordeste TPP and Termoparaíba TPP), that reduced R$ 52 million. The average Unit Variable Cost (CVU) this thermal plant decreased of R$ 392.81/MWh to R$ 349.69/MWh and thermal dispatch was lower in 73% when comparing the same quarters of each year.
Partially offset by:
(i.2) Personnel expenses, that which registered an increase of 1.2% and;
(i.3) Increase of 30.5% in Other operational costs/expenses (R$ 5 million), mainly due to hydrologic risk premium amortization – GSF (R$ 9 million); partially offset by decrease of expenses with Financial compensation for use of water resources - CFHUR (R$ 3 million) and gain with asset disposal (R$ 3 million)
(ii) Decrease of 39.1% in Intangible of Concession Amortization (R$ 2 million)
(iii) Decrease of 1.8% in Depreciation and Amortization (R$ 1 million)
In 3Q16, EBITDA (considering the proportional consolidation) was R$ 354 million, compared to R$ 277 million in 3Q15, an increase of 27.9% (R$ 77 million).
Considering the proportional consolidation and excluding the non-recurring effects, the Adjusted EBITDA totaled R$ 354 million in 3Q16, compared to R$ 331 million in 3Q15, an increase of 6.8% (R$ 23 million).
Página 51 de 73
|
3Q16 Results | November 10, 2016 |
EBITDA Conciliation - IFRS x Adjusted (R$ million) | |||
|
3Q16 |
3Q15 |
Var. |
EBITDA - IFRS (A) |
280 |
193 |
44.8% |
(+) Proportional Consolidation (B) |
74 |
84 |
-11.3% |
EBITDA - Proportional Consolidation |
354 |
277 |
27.9% |
(+) Non-recurring effects (C) |
- |
54 |
|
GSF (Generation Scaling Factor) |
- |
48 |
|
Seasonality Effect |
- |
7 |
|
Adjusted EBITDA (A + B + C) |
354 |
331 |
6.8% |
Financial Result
In 3Q16, the financial result was a net expense of R$ 142 million, a decrease of 10.9% (R$ 17 million).
Financial Revenues moved from R$ 44 million in 3Q15 to R$ 45 million in 3Q16 (2.1% or R$ 1 million increase)
Financial Expenses moved from R$ 203 million in 3Q15 to R$ 187 million in 3Q16 (8.1% or R$ 17 million increase)
ü Decrease of 30.8% in the monetary and foreign exchange updates (R$ 10 million)
ü Decrease of 1.7% in debt charges (R$ 3 million)
ü Decrease of 9.8% in the Use of Public Asset - UBP (R$ 1 million)
ü Decrease of R$ 3 million in other effects.
Net Income
In 3Q16, net income (considering the proportional consolidation) was R$ 106 million, compared to a net income of R$ 44 million in 3Q15.
Considering the proportional consolidation and excluding the non-recurring effects, the Adjusted Net Income totaled R$ 106 million in 3Q16, compared to R$ 80 million in 3Q15, an increase of 32.9% (R$ 26 million).
Net Income Conciliation - IFRS x Adjusted (R$ million) | |||
|
3Q16 |
3Q15 |
Var. |
Net Income - IFRS (A) |
116 |
44 |
166.8% |
(+) Proportional Consolidation (B) |
(10) |
0 |
0.0% |
Net Income - Proportional Consolidation |
106 |
44 |
142.2% |
(+) Non-recurring effects (C) |
- |
36 |
|
GSF (Generation Scaling Factor) |
- |
31 |
|
Seasonality Effect |
- |
5 |
|
Adjusted Net Income (A + B + C) |
106 |
80 |
32.9% |
Página 52 de 73
|
3Q16 Results | November 10, 2016 |
Consolidated Income Statement - CPFL Renováveis (100% Participation - R$ Million) | ||||||
|
3Q16 |
3Q15 |
Var. % |
9M16 |
9M15 |
Var. % |
Gross Operating Revenue (IFRS) |
537 |
429 |
25.1% |
1,213 |
1,134 |
7.0% |
Net Operating Revenue |
506 |
402 |
25.9% |
1,145 |
1,062 |
7.8% |
Cost of Electric Power |
(82) |
(44) |
83.5% |
(193) |
(231) |
-16.7% |
Operating Costs & Expenses |
(218) |
(198) |
9.9% |
(635) |
(599) |
6.1% |
PMSO |
(79) |
(62) |
28.7% |
(229) |
(202) |
13.4% |
Depreciation/Amortization |
(138) |
(136) |
1.4% |
(407) |
(397) |
2.4% |
EBIT |
206 |
159 |
29.6% |
317 |
232 |
36.5% |
EBITDA (IFRS)(1) |
345 |
296 |
16.6% |
724 |
629 |
15.0% |
Financial Income (Expense) |
(133) |
(118) |
13.5% |
(395) |
(336) |
17.3% |
Income Before Taxes |
73 |
42 |
74.7% |
(78) |
(104) |
-25.4% |
Net Income (IFRS) |
50 |
26 |
90.1% |
(117) |
(131) |
-10.6% |
Note:
(1) Earnings before interest, taxes, depreciation and amortization
Consolidated Income Statement - CPFL Renováveis (Proportional Consolidation - R$ Million)1 | ||||||
|
3Q16 |
3Q15 |
Var. % |
9M16 |
9M15 |
Var. % |
Gross Operating Revenue |
278 |
223 |
24.5% |
628 |
598 |
4.9% |
Net Operating Revenue |
262 |
209 |
25.2% |
592 |
561 |
5.7% |
Cost of Electric Power |
(42) |
(24) |
72.8% |
(98) |
(132) |
-25.3% |
Operating Costs & Expenses |
(113) |
(102) |
10.4% |
(328) |
(309) |
6.1% |
PMSO |
(41) |
(32) |
30.2% |
(119) |
(104) |
14.8% |
Depreciation/Amortization |
(71) |
(70) |
1.4% |
(210) |
(205) |
2.4% |
EBIT |
107 |
82 |
29.6% |
166 |
120 |
38.6% |
EBITDA |
178 |
153 |
16.6% |
373 |
325 |
15.0% |
Adjusted EBITDA(2) |
178 |
161 |
10.6% |
373 |
376 |
-0.6% |
Financial Income (Expense) |
(69) |
(61) |
13.5% |
(204) |
(174) |
17.3% |
Income Before Taxes |
38 |
22 |
74.7% |
(38) |
(54) |
-29.9% |
Net Income |
26 |
14 |
90.1% |
(58) |
(68) |
-14.2% |
Adjusted Net Income(2) |
26 |
22 |
17.8% |
(58) |
(17) |
247.5% |
Notes:
(1) Considering:
a. Proportional Consolidation of CPFL Renováveis (51.61%);
b. Reclassify part of the GSF effects that are booked as a revenue to “Cost of Electric Power”;
c. Reclassify GSF premium risk booked as a revenue and “Cost of Electric” Power to “Others” in PMSO.
(2) Excluding the non-recurring effects in the EBITDA and in the Net Income.
Comments to CPFL Renováveis’ Financial Statements
In 3Q16, the main events that driven the Financial Statements were:
· Commercial start-up of Mata Velha SHPP in May 2016 (24.0 MW);
· Commercial start-up of Campo dos Ventos III wind farm in June 2016 (25.4 MW);
· Commercial start-up of Campo dos Ventos I and V wind farms in July 2016 (both with 25.4 MW);
· Commercial start-up of Santo Domingos wind farm in September 2016 (25.4 MW);
· Partial commercial start-up of São Benedito wind farm in September 2016 (25.2 MW from 29.4MW);
All the wind farms mentioned above belongs to Campo dos Ventos and São Benedito Wind Power Complexes.
Página 53 de 73
|
3Q16 Results | November 10, 2016 |
Operating Revenue
Considering proportional participation, Gross Operating Revenue reached R$ 278 million in 3Q16, representing an increase of 24.5% (R$ 55 million). The increase can be mainly explained by the following factors:
(i) Higher energy volume generated at wind farms due to higher wind speed in 3Q16 (R$ 21 million);
(ii) Commercial startup and revenue from generation on a test basis of Campo dos Ventos e São Benedito wind farm complexes (R$ 14 million);
(iii) Higher SHPPs revenue due to the difference in seasonality guarantee in 3Q16. It Is important to highlight that last year the seasonality of the SHPPs physical guarantee was concentrated mainly in 1Q15, while this year, the seasonality was equalized along the twelve months (R$ 12 million);
(iv) Higher energy generation by the Bio Pedra biomass plant in 3Q16 due to the operational normalization after a damage in one of its turbines in May 2015 (R$ 6 million);
(v) Effect of the strategy put in place for the seasonality of physical guarantee in 3Q15 – non-recurring effect (R$ 1 million);
(vi) Other effects (R$ 1 million)
Net Operating Revenue reached R$ 262 million, representing an increase of 25.2% (R$ 53 million).
Cost of Electric Power
In 3Q16, the Cost of Electric Power (considering the proportional participation) reached R$ 42 million, representing an increase of 72.8% (R$ 18 million). This increase was a result of the following factors:
(i) Renegotiation of the operational startup of Campo dos Ventos and São Benedito wind farms, generating an indemnity to CPFL Brasil in the amount of R$ 12 million in 3Q16;
(ii) Seasonality differences between the periods, due to the trading strategy, resulting in energy purchase need (R$ 4 million);
(iii) Energy purchase to meet SHPP’s sales contracts that were not part of MRE in 3Q16 (R$ 2 million);
(iv) Recognition of R$ 1 million related to the effective energy generation of Eurus and Campo dos Ventos II wind farms. It is important to highlight that the energy generation was impacted by climate events, like El Niño, causing lower wind speed in the region where the wind farms are located;
(v) Other effects (R$ 5 million)
Partially offset by:
(vi) Lower GSF cost, representing R$ 5 million in 3Q15 – non-recurring effect (variation of R$ 5 million). After the GSF renegotiation in 4Q15, the Company has considered the remaining GSF as a recurring effect, and has considered the gains with the strategy put in place for the seasonality of physical guarantee of 2015 as a non-recurring effect, since the effects of seasonality are significantly reduced after the renegotiation of the GSF. The remaining GSF costs refer to the portion of the free market (ACL) contracts that were not renegotiated; and
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3Q16 Results | November 10, 2016 |
(vii) Effect of the strategy put in place for the seasonality of physical guarantee in 3Q15, which did not happen in 3Q16 (R$ 1 million) - non-recurring effect.
Operating Costs and Expenses
In 3Q16, Operating Costs and Expenses (considering the proportional participation) reached R$ 113 million, representing an increase of 10.7% (R$ 11 million). The main variations were:
(i) PMSO item, which reached R$ 42 million, an increase of 30.2% (R$ 10 million). The table below shows a summary of the main variations:
Managerial Adjustments in PMSO, for comparison purposes (R$ Million) | ||||
|
3Q16 |
3Q15 |
Variation | |
|
R$ MM |
% | ||
Reported PMSO (IFRS) |
|
|
|
|
Personnel |
(22.6) |
(19.5) |
(3.1) |
16.2% |
Material |
(2.3) |
(5.1) |
2.8 |
-55.2% |
Outsourced Services |
(42.4) |
(34.3) |
(8.2) |
23.9% |
Other Operating Costs/Expenses |
(12.1) |
(2.8) |
(9.2) |
324.4% |
Total Reported PMSO (IFRS) |
(79.4) |
(61.7) |
(17.7) |
28.7% |
Adjusted PMSO |
|
|
|
|
Personnel |
(11.7) |
(10.0) |
(1.6) |
16.2% |
Material |
(1.2) |
(2.6) |
1.5 |
-55.2% |
Outsourced Services |
(21.9) |
(17.7) |
(4.2) |
23.9% |
Other Operating Costs/Expenses |
(6.7) |
(1.5) |
(5.2) |
357.1% |
GSF Risk Premium |
(0.8) |
- |
(0.8) |
- |
Others |
(5.9) |
(1.5) |
(4.5) |
303.7% |
Total Adjusted PMSO |
(41.5) |
(31.8) |
(9.6) |
30.2% |
The variations are explained in the following factors:
ü Personnel: Increase of 16.2% (R$ 2 million), due to the collective bargaining agreement and higher number of employees
ü Materials: Decrease of 55.2% (R$ 2 million) mainly due to lower purchases of wood chips to contribute to energy generation ;
ü Services: Increase of 23.9% (4 million) mainly due to the growth of the operating portfolio e higher costs of O&M suppliers;
ü Others: Mainly related to the GSF 8 premium risk payment in 3Q16 (R$ 1 million), which did not happen in 3Q15, besides other effects (R$ 5 million).
(ii) Depreciation and Amortization reached R$ 71 million, an increase of 1.4% (R$ 1 million), due mainly to the operational startup of Mata Velha SHPP, Campo dos Ventos I, III and V wind farms, besides the partial commercial startup of São Benedito Wind Farm.
EBITDA
In 3Q16, EBITDA (considering the proportional participation) was R$ 178 million, compared to R$ 153 million in 3Q15, an increase of 16.6% (R$ 25 million).
Considering the proportional participation and excluding the non-recurring effects, the Adjusted EBITDA totaled R$ 178 million in 3Q16, compared to R$ 161 million in 3Q15, an increase of 10.6% (R$ 17 million).
8 Hydrologic risk premium amortization is booked in revenue and “Cost of Electric Power”. In our managerial analysis, these amounts are reclassified to “Others” in PMSO.
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3Q16 Results | November 10, 2016 |
EBITDA Conciliation - IFRS vs. Ajusted (R$ Million) | ||||
|
3Q16 |
3Q15 |
Var. |
Var. (%) |
EBITDA - IFRS (A) |
345 |
296 |
49 |
16.6% |
(+) Proportional Consolidation (B) |
(167) |
(143) |
(24) |
16.6% |
EBITDA - Proportional Consolidation (C=A+B) |
178 |
153 |
- |
16.6% |
(+) Non-recurring effects (D) |
- |
8 |
(8) |
- |
GSF and Energy Purchase for SHPP |
- |
6 |
(6) |
- |
Seasonality effect - SHPPs |
- |
2 |
(2) |
- |
Ajusted EBITDA (E=C-D) |
178 |
161 |
17 |
10.6% |
Financial Result
Considering the proportional participation in 3Q16, Net Financial Result was a net expense of R$ 69 million, representing an increase of 13.5% (R$ 8 million) in comparison to 3Q15.
The main factors that affected the financial income were:
(i) Lower returns from financial investments, due to higher cash burn on investments in course (R$ 5 million);
(ii) Other positive effects (R$ 2 million).
In the other hand, the main factors that affected the financial expenses were:
(i) Higher accrued interest, mainly due to the higher reference indexers (R$ 8 million)
a. Average-CDI of 13.97% p.y. in 3Q15 to 14.13% p.y. in 3Q16 and;
b. TJLP of 6.5% p.y. in 3Q15 to 7.5% p.y. in 3Q16;
(ii) Lower monetary and foreign exchange adjustments (R$ 3 million).
Net Income
In 3Q16, Net Income (considering the proportional participation) was R$ 26 million, compared to a Net Income of R$ 14 million in 3Q15, an increase of 90.1% (R$ 12 million).
Considering the proportional participation and excluding the non-recurring effects, the Adjusted Net Income totaled R$ 26 million in 3Q16, compared to an Adjusted Net Income of R$ 22 million in 3Q15, an increase of 17.8% (R$ 4 million).
Net Income Conciliation1 - IFRS vs. Ajusted (R$ Million) | ||||
|
3Q16 |
3Q15 |
Var. |
Var. (%) |
Net Income - IFRS (A) |
50 |
26 |
24 |
90.1% |
(+) Proportional Consolidation (B) |
(24) |
(13) |
(11) |
90.1% |
Net Income - Proportional Consolidation (C=A+B) |
26 |
14 |
- |
90.1% |
(+) Non-recurring effects1 (D) |
- |
8 |
(8) |
- |
GSF and Energy Purchase for SHPP |
- |
6 |
(6) |
- |
Seasonality effect - SHPPs |
- |
2 |
(2) |
- |
Ajusted Net Income (E=C-D) |
26 |
22 |
4 |
17.8% |
1) CPFL Renováveis has adopted in its tax management the presumed profit methodology. For this reason, the amounts of non-recurring effects listed on EBITDA conciliation are the same that are booked above.
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3Q16 Results | November 10, 2016 |
On the date of this report, the portfolio of projects of CPFL Renováveis (100% Participation) totaled 1,998 MW of operating installed capacity and 131 MW of capacity under construction. The operational power plants comprises 39 Small Hydroelectric Power Plants – SHPPs (423 MW), 41 Wind Farms (1,204 MW), 8 Biomass Thermoelectric Power Plants (370 MW) and 1 Solar Power Plant (1 MW). Still under construction there are 4 Wind Farms (105 MW) and 1 SHPP (27 MW).
Additionally, CPFL Renováveis owns wind and SHPP projects under development totaling 2,987 MW, representing a total portfolio of 5,115 MW.
The table below illustrates the overall portfolio of assets (100% participation) in operation, construction and development, and its installed capacity on this date:
CPFL Renováveis - Portfolio (100% participation) | |||||
In MW |
SHPP |
Biomass |
Wind |
Solar |
Total |
Operating |
423 |
370 |
1,204 |
1 |
1,998 |
Under construction |
27 |
- |
105 |
- |
131 |
Under development |
216 |
- |
2,226 |
544 |
2,987 |
Total |
666 |
370 |
3,535 |
545 |
5,115 |
Mata Velha SHPP
Aneel authorized the PCH Mata Velha commercial operation on May 9, 2016, whose entry into operation was initially scheduled for 1H17. The installed capacity is of 24.0 MW and the assured energy is of 13.1 average-MW. The energy was sold in 16th New Energia Auction (“LEN” in portuguese) held in 2013 (price: R$ 182.63/MWh – September 2016). The energy will be sold in the free market until the beginning of the as the operational startup will begin earlier than the deadline.
Campo dos Ventos Wind Farms and São Benedito Wind Farms
Campo dos Ventos Complex Wind Farms (São Domingos, Ventos de São Martinho e Campo dos Ventos I, III and V) and São Benedito Complex Wind Farms (Ventos de São Benedito, Ventos de Santo Dimas, Santa Mônica e Santa Úrsula), located at Rio Grande do Norte State, are under construction. The first wind turbine started commercial operations in May 2016 and the end of construction is planned for December 2016. The installed capacity is of 231.0 MW and the contracted energy is of 125.2 average-MW. The energy will be sold in the free market.
Until November-16, 83 wind turbines went into commercial operation. The entry of others will be gradual and that the works of completion of these projects are planned for the month of December 2016.
Pedra Cheirosa Wind Farms
Pedra Cheirosa Wind Farms (Pedra Cheirosa I and II), located at Ceará State, are under construction. Start-up is scheduled for 1H18. The installed capacity is of 48.3 MW and the assured energy is of 26.1 average-MW. Energy was sold through long-term contract in the A-5 auction 2013 (Pedra Cheirosa I - price: R$ 146.85/MWh | Pedra Cheirosa II – price: R$ 147.78, both in September 2016).
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3Q16 Results | November 10, 2016 |
Boa Vista II SHPP
SHPP Boa Vista II project, located in the state of Minas Gerais, has operations in input prediction from 1Q20. The installed capacity is of 26.5 MW and the assured energy is of 14.8 average-MW. Energy was sold through long-term contracts in the new energy auction A-5 2015 (price: R$ 228.67/MWh – September 2016).
Página 58 de 73
|
3Q16 Results | November 10, 2016 |
(R$ thousands)
Consolidated | |||
ASSETS |
09/30/2016 |
12/31/2015 |
09/30/2015 |
CURRENT |
|||
Cash and Cash Equivalents |
5,344,665 |
5,682,802 |
4,033,374 |
Consumers, Concessionaries and Licensees |
3,540,804 |
3,174,918 |
3,350,246 |
Dividend and Interest on Equity |
13,424 |
91,392 |
40,442 |
Financial Investments |
53,147 |
23,633 |
17,729 |
Recoverable Taxes |
376,849 |
475,211 |
310,008 |
Derivatives |
111,761 |
627,493 |
700,201 |
Sectoral Financial Assets |
239,341 |
1,464,019 |
1,257,608 |
Concession Financial Assets |
10,563 |
9,630 |
9,459 |
Other Credits |
674,211 |
959,553 |
1,405,527 |
TOTAL CURRENT |
10,364,766 |
12,508,652 |
11,124,595 |
NON-CURRENT |
|||
Consumers, Concessionaries and Licensees |
141,040 |
128,946 |
108,201 |
Affiliates, Subsidiaries and Parent Company |
46,292 |
84,265 |
110,123 |
Judicial Deposits |
499,126 |
1,227,527 |
1,199,922 |
Recoverable Taxes |
166,102 |
167,159 |
145,079 |
Sectoral Financial Assets |
- |
489,945 |
1,044,407 |
Derivatives |
664,538 |
1,651,260 |
1,770,333 |
Deferred Taxes |
578,360 |
334,886 |
785,416 |
Concession Financial Assets |
4,222,894 |
3,597,474 |
3,897,319 |
Investments at Cost |
116,654 |
116,654 |
116,654 |
Other Credits |
686,187 |
594,519 |
531,677 |
Investments |
1,440,262 |
1,247,631 |
1,216,690 |
Property, Plant and Equipment |
9,663,465 |
9,173,217 |
9,107,925 |
Intangible |
8,963,014 |
9,210,338 |
8,699,525 |
TOTAL NON-CURRENT |
27,187,935 |
28,023,819 |
28,733,271 |
TOTAL ASSETS |
37,552,701 |
40,532,471 |
39,857,866 |
Página 59 de 73
|
3Q16 Results | November 10, 2016 |
(R$ thousands)
|
Consolidated | ||
LIABILITIES AND SHAREHOLDERS' EQUITY |
09/30/2016 |
12/31/2015 |
09/30/2015 |
CURRENT |
|||
Suppliers |
1,943,658 |
3,161,210 |
2,252,811 |
Accrued Interest on Debts |
97,095 |
118,267 |
81,014 |
Accrued Interest on Debentures |
231,417 |
232,227 |
262,914 |
Loans and Financing |
1,434,598 |
2,831,654 |
2,769,337 |
Debentures |
1,275,079 |
458,165 |
230,747 |
Employee Pension Plans |
8,946 |
802 |
77,315 |
Regulatory Charges |
284,841 |
852,017 |
1,478,920 |
Taxes, Fees and Contributions |
671,486 |
653,342 |
646,556 |
Dividend and Interest on Equity |
8,211 |
221,855 |
13,745 |
Accrued Liabilities |
133,527 |
79,924 |
117,607 |
Derivatives |
4,548 |
981 |
- |
Sectoral Financial Liabilities |
317,091 |
- |
- |
Public Utilities |
9,941 |
9,457 |
4,343 |
Other Accounts Payable |
737,258 |
904,971 |
889,721 |
TOTAL CURRENT |
7,157,697 |
9,524,873 |
8,825,031 |
NON-CURRENT |
|||
Suppliers |
633 |
633 |
633 |
Accrued Interest on Debts |
130,813 |
120,659 |
103,939 |
Accrued Interest on Debentures |
25,889 |
16,487 |
13,575 |
Loans and Financing |
11,107,624 |
11,592,206 |
11,537,980 |
Debentures |
5,106,400 |
6,363,552 |
6,729,581 |
Employee Pension Plans |
857,031 |
474,318 |
337,839 |
Deferred Taxes |
1,345,092 |
1,432,594 |
1,369,594 |
Reserve for Tax, Civil and Labor Risks |
613,267 |
569,534 |
585,486 |
Derivatives |
129,299 |
33,205 |
32,919 |
Sectoral Financial Liabilities |
357,164 |
- |
- |
Public Utilities |
87,666 |
83,124 |
84,686 |
Other Accounts Payable |
180,457 |
191,148 |
200,506 |
TOTAL NON-CURRENT |
19,941,335 |
20,877,460 |
20,996,739 |
SHAREHOLDERS' EQUITY |
|||
Capital |
5,741,284 |
5,348,312 |
5,348,312 |
Capital Reserve |
468,302 |
468,082 |
468,082 |
Legal Reserve |
694,058 |
694,058 |
650,811 |
Statutory Reserve - Concession Financial Assets |
724,308 |
585,451 |
496,885 |
Statutory Reserve - Strengthening of Working Capital |
- |
392,972 |
- |
Other Comprehensive Income |
(238,407) |
185,321 |
247,642 |
Retained Earnings |
644,988 |
- |
417,120 |
8,034,534 |
7,674,196 |
7,628,852 | |
Non-Controlling Shareholders' Interest |
2,419,136 |
2,455,942 |
2,407,245 |
TOTAL SHAREHOLDERS' EQUITY |
10,453,670 |
10,130,138 |
10,036,096 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
37,552,701 |
40,532,471 |
39,857,866 |
Página 60 de 73
|
3Q16 Results | November 10, 2016 |
(R$ thousands)
Consolidated - IFRS | ||||||
3Q16 | 3Q15 | Variation | 9M16 | 9M15 | Variation | |
OPERATING REVENUES | ||||||
Electricity Sales to Final Customers | 5,474,412 | 5,993,616 | -8.7% | 17,782,476 | 17,205,460 | 3.4% |
Electricity Sales to Distributors | 1,012,962 | 811,481 | 24.8% | 2,401,179 | 2,730,703 | -12.1% |
Revenue from building the infrastructure | 325,100 | 252,049 | 29.0% | 816,950 | 767,769 | 6.4% |
Sectorial financial assets and liabilities | (558,007) | 727,814 | -176.7% | (1,752,239) | 2,311,969 | -175.8% |
Other Operating Revenues | 1,077,085 | 860,087 | 25.2% | 2,743,209 | 2,318,034 | 18.3% |
7,331,552 | 8,645,047 | -15.2% | 21,991,574 | 25,333,935 | -13.2% | |
DEDUCTIONS FROM OPERATING REVENUES | (2,594,177) | (3,677,875) | -29.5% | (8,588,728) | (9,914,147) | -13.4% |
NET OPERATING REVENUES | 4,737,375 | 4,967,172 | -4.6% | 13,402,846 | 15,419,789 | -13.1% |
COST OF ELECTRIC ENERGY SERVICES | ||||||
Electricity Purchased for Resale | (2,465,707) | (2,692,119) | -8.4% | (6,945,260) | (9,207,611) | -24.6% |
Electricity Network Usage Charges | (304,806) | (447,923) | -32.0% | (1,017,820) | (1,141,970) | -10.9% |
(2,770,513) | (3,140,041) | -11.8% | (7,963,080) | (10,349,581) | -23.1% | |
OPERATING COSTS AND EXPENSES | ||||||
Personnel | (261,189) | (237,429) | 10.0% | (773,356) | (698,887) | 10.7% |
Material | (64,765) | (38,696) | 67.4% | (143,821) | (105,822) | 35.9% |
Outsourced Services | (156,531) | (142,723) | 9.7% | (463,319) | (412,743) | 12.3% |
Other Operating Costs/Expenses | (130,619) | (103,613) | 26.1% | (469,521) | (417,956) | 12.3% |
Allowance for Doubtful Accounts | (34,161) | (31,644) | 8.0% | (130,026) | (94,109) | 38.2% |
Legal and judicial expenses | (29,258) | (47,595) | -38.5% | (138,227) | (197,168) | -29.9% |
Others | (67,201) | (24,374) | 175.7% | (201,268) | (126,679) | 58.9% |
Cost of building the infrastructure | (324,154) | (251,887) | 28.7% | (815,681) | (766,605) | 6.4% |
Employee Pension Plans | (23,658) | (16,347) | 44.7% | (51,483) | (49,036) | 5.0% |
Depreciation and Amortization | (254,202) | (249,397) | 1.9% | (750,297) | (719,004) | 4.4% |
Amortization of Concession's Intangible | (62,365) | (64,882) | -3.9% | (186,272) | (233,574) | -20.3% |
(1,277,483) | (1,104,974) | 15.6% | (3,653,749) | (3,403,628) | 7.3% | |
EBITDA1 | 1,074,917 | 1,080,322 | -0.5% | 2,923,964 | 2,744,995 | 6.5% |
EBIT | 689,379 | 722,157 | -4.5% | 1,786,017 | 1,666,580 | 7.2% |
FINANCIAL REVENUES (EXPENSES) | ||||||
Financial Revenues | 335,467 | 420,915 | -20.3% | 1,141,838 | 1,037,481 | 10.1% |
Financial Expenses | (706,920) | (767,451) | -7.9% | (1,944,253) | (1,937,505) | 0.3% |
(371,453) | (346,537) | 7.2% | (802,416) | (900,024) | -10.8% | |
EQUITY ACCOUNTING | ||||||
Equity Accounting | 68,971 | 43,887 | 57.2% | 201,379 | 125,836 | 60.0% |
Assets Surplus Value Amortization | (145) | (284) | -49.0% | (435) | (852) | -49.0% |
68,826 | 43,603 | 57.8% | 200,944 | 124,985 | 60.8% | |
INCOME BEFORE TAXES ON INCOME | 386,752 | 419,223 | -7.7% | 1,184,545 | 891,541 | 32.9% |
Social Contribution | (35,448) | (40,337) | -12.1% | (125,116) | (104,972) | 19.2% |
Income Tax | (82,031) | (98,665) | -16.9% | (317,575) | (273,798) | 16.0% |
NET INCOME | 269,272 | 280,221 | -3.9% | 741,854 | 512,771 | 44.7% |
Controlling Shareholders' Interest | 231,566 | 267,613 | -13.5% | 762,725 | 560,763 | 36.0% |
Non-Controlling Shareholders' Interest | 37,707 | 12,608 | 199.1% | (20,871) | (47,992) | -56.5% |
Note: (1) EBITDA is calculated from the sum of net income, taxes, financial result and depreciation/amortization, according to CVM Instruction no. 527/12. | ||||||
Página 61 de 73
|
3Q16 Results | November 10, 2016 |
(Pro forma, R$ thousands)
Consolidated - Adjusted1 | |||||||
3Q16 | 3Q15 | Variation | 9M16 | 9M15 | Variation | ||
OPERATING REVENUES | |||||||
Electricity Sales to Final Customers | 5,463,979 | 5,989,513 | -8.8% | 17,750,038 | 17,201,356 | 3.2% | |
Electricity Sales to Distributors | 856,753 | 731,685 | 17.1% | 2,122,128 | 2,533,673 | -16.2% | |
Revenue from building the infrastructure | 325,100 | 252,049 | 29.0% | 816,950 | 767,769 | 6.4% | |
Sectorial financial assets and liabilities | (555,329) | 597,187 | -193.0% | (1,718,496) | 2,115,902 | -181.2% | |
Other Operating Revenues | 1,086,092 | 860,850 | 26.2% | 2,762,161 | 2,316,682 | 19.2% | |
7,176,595 | 8,431,284 | -14.9% | 21,732,782 | 24,935,383 | -12.8% | ||
DEDUCTIONS FROM OPERATING REVENUES | (2,588,122) | (3,662,948) | -29.3% | (8,578,662) | (9,863,450) | -13.0% | |
NET OPERATING REVENUES | 4,588,473 | 4,768,336 | -3.8% | 13,154,120 | 15,071,934 | -12.7% | |
COST OF ELECTRIC ENERGY SERVICES | |||||||
Electricity Purchased for Resale | (2,323,017) | (2,492,062) | -6.8% | (6,518,976) | (8,513,098) | -23.4% | |
Electricity Network Usage Charges | (311,132) | (455,515) | -31.7% | (1,037,652) | (1,161,294) | -10.6% | |
(2,634,149) | (2,947,577) | -10.6% | (7,556,628) | (9,674,392) | -21.9% | ||
OPERATING COSTS AND EXPENSES | |||||||
Personnel | (254,359) | (231,091) | 10.1% | (753,116) | (681,800) | 10.5% | |
Material | (84,963) | (112,527) | -24.5% | (226,842) | (343,493) | -34.0% | |
Outsourced Services | (141,071) | (131,205) | 7.5% | (421,664) | (381,157) | 10.6% | |
Other Operating Costs/Expenses | (141,381) | (112,713) | 25.4% | (493,464) | (374,409) | 31.8% | |
Allowance for Doubtful Accounts | (34,152) | (31,377) | 8.8% | (129,845) | (93,865) | 38.3% | |
Legal and judicial expenses | (30,312) | (46,488) | -34.8% | (135,309) | (148,797) | -9.1% | |
Others | (76,917) | (34,847) | 120.7% | (228,310) | (131,747) | 73.3% | |
Cost of building the infrastructure | (324,154) | (251,887) | 28.7% | (815,681) | (766,605) | 6.4% | |
Employee Pension Plans | (23,658) | (16,347) | 44.7% | (51,483) | (49,036) | 5.0% | |
Depreciation and Amortization | (232,156) | (226,886) | 2.3% | (688,207) | (665,934) | 3.3% | |
Amortization of Concession's Intangible | (43,987) | (48,911) | -10.1% | (131,538) | (176,597) | -25.5% | |
(1,245,729) | (1,131,566) | 10.1% | (3,581,995) | (3,439,031) | 4.2% | ||
ADJUSTED EBITDA2 | 984,738 | 964,990 | 2.0% | 2,835,243 | 2,801,041 | 1.2% | |
EBIT | 708,595 | 689,193 | 2.8% | 2,015,498 | 1,958,510 | 2.9% | |
FINANCIAL REVENUES (EXPENSES) | |||||||
Financial Revenues | 327,059 | 397,166 | -17.7% | 1,116,982 | 972,972 | 14.8% | |
Financial Expenses | (667,754) | (604,656) | 10.4% | (1,872,253) | (1,651,213) | 13.4% | |
(340,695) | (207,489) | 64.2% | (755,272) | (678,240) | 11.4% | ||
INCOME BEFORE TAXES ON INCOME | 367,900 | 481,704 | -23.6% | 1,260,226 | 1,280,270 | -1.6% | |
Social Contribution | (38,169) | (47,440) | -19.5% | (138,387) | (136,064) | 1.7% | |
Income Tax | (94,856) | (122,038) | -22.3% | (358,543) | (360,943) | -0.7% | |
ADJUSTED NET INCOME | 234,876 | 312,226 | -24.8% | 763,296 | 783,263 | -2.5% | |
Notes: | |||||||
(1) Adjusted figures take into account CPFL’s equivalent stake in each generation project and disregard non-recurring effects; | |||||||
(2) EBITDA is calculated from the sum of net income, taxes, financial result and depreciation/amortization, according to CVM Instruction no. 527/12. |
Página 62 de 73
|
3Q16 Results | November 10, 2016 |
(R$ thousands)
Consolidated | ||||
3Q16 |
Last 12M | |||
Beginning Balance |
5,464,783 |
4,033,374 | ||
Net Income Before Taxes |
386,752 |
1,747,458 | ||
Depreciation and Amortization |
316,567 |
1,263,892 | ||
Interest on Debts and Monetary and Foreign Exchange Restatements |
598,758 |
1,805,805 | ||
Consumers, Concessionaries and Licensees |
(141,301) |
(384,832) | ||
Sectoral Financial Assets |
586,319 |
2,587,347 | ||
Accounts Receivable - Resources Provided by the CDE/CCEE |
(127,903) |
603,542 | ||
Suppliers |
255,655 |
(309,153) | ||
Sectoral Financial Liabilities |
(28,306) |
247,628 | ||
Accounts Payable - CDE |
(8,004) |
(50,375) | ||
Interest on Debts and Debentures Paid |
(428,441) |
(1,642,397) | ||
Income Tax and Social Contribution Paid |
(324,079) |
(710,631) | ||
Others |
59,549 |
(243,975) | ||
758,814 |
3,166,851 | |||
Total Operating Activities |
1,145,566 |
4,914,309 | ||
Investment Activities |
||||
Acquisition of Property, Plant and Equipment, and Intangibles |
(609,960) |
(2,056,090) | ||
Others |
(55,326) |
(72,040) | ||
Total Investment Activities |
(665,286) |
(2,128,130) | ||
Financing Activities |
||||
Capital Increase by Non Controlling Shareholders |
247 |
254 | ||
Loans and Debentures |
926,123 |
2,644,441 | ||
Principal Amortization of Loans and Debentures, Net of Derivatives |
(1,311,151) |
(3,854,575) | ||
Dividend and Interest on Equity Paid |
(213,056) |
(232,488) | ||
Others |
(2,561) |
(32,520) | ||
Total Financing Activities |
(600,398) |
(1,474,888) | ||
Cash Flow Generation |
(120,118) |
1,311,291 | ||
Ending Balance - 09/30/2016 |
|
5,344,665 |
|
5,344,665 |
Página 63 de 73
|
3Q16 Results | November 10, 2016 |
(Pro forma, R$ thousands)
Conventional Generation (IFRS) | ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
OPERATING REVENUE | ||||||
Eletricity Sales to Final Consumers | - | - | - | - | - | - |
Eletricity Sales to Distributors | 278.203 | 272.066 | 2,3% | 807.409 | 784.724 | 2,9% |
Other Operating Revenues | 4.330 | 1.299 | 233,3% | 7.058 | 3.893 | 81,3% |
282.533 | 273.365 | 3,4% | 814.467 | 788.616 | 3,3% | |
DEDUCTIONS FROM OPERATING REVENUE | (26.270) | (24.672) | 6,5% | (75.262) | (69.410) | 8,4% |
NET OPERATING REVENUE | 256.262 | 248.693 | 3,0% | 739.205 | 719.207 | 2,8% |
COST OF ELETRIC ENERGY SERVICES | ||||||
Eletricity Purchased for Resale | (16.540) | (71.100) | -76,7% | (51.788) | (161.089) | -67,9% |
Eletricity Network Usage Charges | (6.283) | (5.891) | 6,6% | (17.962) | (16.267) | 10,4% |
(22.823) | (76.991) | -70,4% | (69.751) | (177.356) | -60,7% | |
OPERATING COSTS AND EXPENSES | ||||||
Personnel | (8.038) | (8.452) | -4,9% | (27.239) | (24.586) | 10,8% |
Material | (666) | (113) | 488,2% | (2.119) | (1.697) | 24,9% |
Outsourced Services | (4.269) | (4.029) | 6,0% | (13.690) | (13.702) | -0,1% |
Other Operating Costs/Expenses | (9.059) | (8.912) | 1,6% | (31.181) | (21.030) | 48,3% |
Employee Pension Plans | (517) | (837) | -38,3% | (1.160) | (340) | 241,4% |
Depreciation and Amortization | (27.756) | (27.882) | -0,5% | (83.585) | (83.873) | -0,3% |
Amortization of Concession's Intangible | (2.492) | (4.046) | -38,4% | (7.475) | (12.138) | -38,4% |
(52.797) | (54.272) | -2,7% | (166.449) | (157.365) | 5,8% | |
EBITDA | 279.862 | 192.961 | 45,0% | 795.011 | 605.481 | 31,3% |
EBIT | 180.642 | 117.429 | 53,8% | 503.006 | 384.486 | 30,8% |
FINANCIAL INCOME (EXPENSE) | ||||||
Financial Income | 37.267 | 32.726 | 13,9% | 134.516 | 83.482 | 61,1% |
Financial Expenses | (148.514) | (156.152) | -4,9% | (416.275) | (413.081) | 0,8% |
Interest on Equity | - | - | - | - | - | - |
(111.247) | (123.426) | -9,9% | (281.759) | (329.598) | -14,5% | |
EQUITY ACCOUNTING | ||||||
Equity Accounting | 68.971 | 43.603 | 58,2% | 200.944 | 124.985 | 60,8% |
Assets Surplus Value Amortization | 145 | 284 | -48,9% | 435 | 852 | -48,9% |
68.971 | 43.603 | 58,2% | 200.944 | 124.985 | 60,8% | |
INCOME BEFORE TAXES ON INCOME | 138.367 | 37.607 | 267,9% | 422.191 | 179.872 | 134,7% |
Social Contribution | (5.871) | 1.478 | -497,2% | (19.702) | (3.856) | 411,0% |
Income Tax | (16.333) | 4.169 | -491,8% | (54.487) | (10.894) | 400,2% |
NET INCOME (LOSS) | 116.163 | 43.254 | 168,6% | 348.002 | 165.122 | 110,8% |
Controlling Shareholders' Interest | 103.763 | 43.664 | 137,6% | 315.257 | 150.223 | 109,9% |
Non-Controlling Shareholders' Interest | 12.255 - | 410 | 0,0% | 32.744 | 14.899 | 119,8% |
Página 64 de 73
|
3Q16 Results | November 10, 2016 |
(Pro forma, R$ thousands)
Conventional Generation (Adjusted) | ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
OPERATING REVENUE | ||||||
Eletricity Sales to Final Consumers | - | - | - | - | - | - |
Eletricity Sales to Distributors | 492,798 | 542,889 | -9.2% | 1,482,601 | 1,615,660 | -8.2% |
Other Operating Revenues | 3,778 | 716 | 427.5% | 4,999 | 1,933 | 158.6% |
496,576 | 543,605 | -8.7% | 1,487,601 | 1,617,593 | -8.0% | |
DEDUCTIONS FROM OPERATING REVENUE | (44,582) | (48,884) | -8.8% | (133,425) | (145,557) | -8.3% |
NET OPERATING REVENUE | 451,994 | 494,720 | -8.6% | 1,354,176 | 1,472,036 | -8.0% |
COST OF ELETRIC ENERGY SERVICES | ||||||
Eletricity Purchased for Resale | (8,131) | (26,558) | -69.4% | (39,345) | (39,922) | -1.4% |
Eletricity Network Usage Charges | (23,659) | (21,390) | 10.6% | (67,307) | (61,440) | 9.5% |
(31,789) | (47,948) | -33.7% | (106,652) | (101,362) | 5.2% | |
OPERATING COSTS AND EXPENSES | ||||||
Personnel | (11,666) | (11,529) | 1.2% | (37,875) | (33,309) | 13.7% |
Material | (21,972) | (77,142) | -71.5% | (88,379) | (246,378) | -64.1% |
Outsourced Services | (8,937) | (8,949) | -0.1% | (25,508) | (29,228) | -12.7% |
Other Operating Costs/Expenses | (23,218) | (17,792) | 30.5% | (71,467) | (48,667) | 46.8% |
Employee Pension Plans | (517) | (113) | 356.5% | (1,160) | (340) | 241.4% |
Depreciation and Amortization | (54,169) | (55,151) | -1.8% | (163,116) | (165,155) | -1.2% |
Amortization of Concession's Intangible | (2,636) | (4,330) | -39.1% | (7,909) | (12,990) | -39.1% |
(123,115) | (175,006) | -29.7% | (395,414) | (536,066) | -26.2% | |
EBITDA | 353,895 | 331,248 | 6.8% | 1,023,135 | 1,012,752 | 1.0% |
EBIT | 297,090 | 271,767 | 9.3% | 852,110 | 834,607 | 2.1% |
FINANCIAL INCOME (EXPENSE) | ||||||
Financial Income | 44,626 | 43,716 | 2.1% | 159,629 | 96,426 | 65.5% |
Financial Expenses | (186,981) | (203,499) | -8.1% | (551,428) | (543,660) | 1.4% |
Interest on Equity | - | - | - | - | - | - |
(142,355) | (159,783) | -10.9% | (391,799) | (447,234) | -12.4% | |
EQUITY ACCOUNTING | ||||||
Equity Accounting | - | - | - | - | - | - |
Assets Surplus Value Amortization | - | - | - | - | - | - |
- | - | - | - | - | - | |
INCOME BEFORE TAXES ON INCOME | 154,735 | 111,984 | 38.2% | 460,311 | 387,374 | 18.8% |
Social Contribution | (13,598) | (9,218) | 47.5% | (41,366) | (34,038) | 21.5% |
Income Tax | (35,264) | (23,091) | 52.7% | (106,339) | (85,002) | 25.1% |
NET INCOME (LOSS) | 105,873 | 79,675 | 32.9% | 312,605 | 268,334 | 16.5% |
Página 65 de 73
|
3Q16 Results | November 10, 2016 |
(R$ thousands)
Consolidated - IFRS (100% Participation) | ||||||
3Q16 | 3Q15 | Var. % | 9M16 | 9M15 | Var. % | |
OPERATING REVENUES | ||||||
Eletricity Sales to Final Consumers | 22,934 | 8,481 | 170.4% | 68,410 | 8,481 | 706.7% |
Eletricity Sales to Distributors | 511,671 | 420,018 | 21.8% | 1,133,436 | 1,119,415 | 1.3% |
Other Operating Revenues | 2,700 | 858 | 214.8% | 11,445 | 5,921 | 93.3% |
537,305 | 429,356 | 25.1% | 1,213,291 | 1,133,817 | 7.0% | |
DEDUCTIONS FROM OPERATING REVENUES | (31,492) | (27,462) | 14.7% | (68,560) | (71,888) | -4.6% |
NET OPERATING REVENUES | 505,813 | 401,894 | 25.9% | 1,144,731 | 1,061,929 | 7.8% |
COST OF ELETRIC ENERGY SERVICES | ||||||
Eletricity Purchased for Resale | (57,569) | (26,816) | 114.7% | (127,761) | (174,255) | -26.7% |
Eletricity Netw ork Usage Charges | (23,938) | (17,600) | 36.0% | (64,757) | (56,844) | 13.9% |
(81,507) | (44,415) | 83.5% | (192,518) | (231,099) | -16.7% | |
OPERATING COSTS AND EXPENSES | ||||||
Personnel | (22,600) | (19,457) | 16.2% | (63,811) | (53,339) | 19.6% |
Material | (2,289) | (5,113) | -55.2% | (6,948) | (14,487) | -52.0% |
Outsourced Services | (42,446) | (34,267) | 23.9% | (116,503) | (99,586) | 17.0% |
Other Operating Costs/Expenses | (12,075) | (2,845) | 324.4% | (41,327) | (34,117) | 21.1% |
Depreciation and Amortization | (100,144) | (102,875) | -2.7% | (292,670) | (277,652) | 5.4% |
Amortization of Concession's Intangible | (38,277) | (33,591) | 14.0% | (114,010) | (119,510) | -4.6% |
(217,831) | (198,147) | 9.9% | (635,268) | (598,690) | 6.1% | |
EBITDA (IFRS)(1) | 344,895 | 295,797 | 16.6% | 723,624 | 629,302 | 15.0% |
EBIT | 206,474 | 159,332 | 29.6% | 316,945 | 232,140 | 36.5% |
FINANCIAL INCOME (EXPENSE) | ||||||
Financial Income | 33,487 | 39,558 | -15.3% | 98,738 | 99,046 | -0.3% |
Financial Expenses | (166,874) | (157,064) | 6.2% | (493,306) | (435,289) | 13.3% |
(133,387) | (117,506) | 13.5% | (394,569) | (336,243) | 17.3% | |
INCOME BEFORE TAXES ON INCOME | 73,087 | 41,825 | 74.7% | (77,624) | (104,102) | -25.4% |
Social Contribution | (10,347) | (7,426) | 39.3% | (17,345) | (12,964) | 33.8% |
Income Tax | (12,620) | (8,032) | 57.1% | (22,492) | (14,293) | 57.4% |
NET INCOME (IFRS) | 50,121 | 26,367 | 90.1% | (117,461) | (131,360) | -10.6% |
Controlling Shareholders' Interest | 47,797 | 25,865 | 84.8% | (123,705) | (132,651) | -6.7% |
Non-Controlling Shareholders' Interest | 2,324 | 502 | 362.8% | 6,244 | 1,291 | 383.5% |
1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization, as CVM Instruction no.527/12. | ||||||
Página 66 de 73
|
3Q16 Results | November 10, 2016 |
(Pro forma, R$ thousands)
Consolidated - Adjusted (Proportional Consolidation) | ||||||
3Q16 | 3Q15 | Var. % | 9M16 | 9M15 | Var. % | |
OPERATING REVENUES | ||||||
Eletricity Sales to Final Consumers | 11,836 | 4,377 | 170.4% | 35,307 | 4,377 | 706.7% |
Eletricity Sales to Distributors | 264,716 | 219,746 | 20.5% | 586,457 | 586,032 | 0.1% |
Other Operating Revenues | 1,394 | 443 | 214.8% | 5,907 | 3,056 | 93.3% |
277,946 | 224,566 | 23.8% | 627,670 | 593,465 | 5.8% | |
DEDUCTIONS FROM OPERATING REVENUES | (16,283) | (14,246) | 14.3% | (35,393) | (37,422) | -5.4% |
NET OPERATING REVENUES | 261,663 | 210,319 | 24.4% | 592,277 | 556,042 | 6.5% |
COST OF ELETRIC ENERGY SERVICES | ||||||
Eletricity Purchased for Resale | (29,840) | (8,395) | 255.4% | (64,985) | (52,521) | 23.7% |
Eletricity Netw ork Usage Charges | (12,355) | (9,083) | 36.0% | (33,422) | (29,338) | 13.9% |
(42,195) | (17,478) | 141.4% | (98,407) | (81,859) | 20.2% | |
OPERATING COSTS AND EXPENSES | ||||||
Personnel | (11,664) | (10,042) | 16.2% | (32,933) | (27,529) | 19.6% |
Material | (1,182) | (2,639) | -55.2% | (3,586) | (7,477) | -52.0% |
Outsourced Services | (21,907) | (17,686) | 23.9% | (60,128) | (51,397) | 17.0% |
Other Operating Costs/Expenses | (6,711) | (1,468) | 357.1% | (22,768) | (11,944) | 90.6% |
Depreciation and Amortization | (51,685) | (53,095) | -2.7% | (151,050) | (143,299) | 5.4% |
Amortization of Concession's Intangible | (19,755) | (17,337) | 14.0% | (58,841) | (61,680) | -4.6% |
(112,904) | (102,266) | 10.4% | (329,307) | (303,326) | 8.6% | |
EBITDA Adjusted (1) | 178,004 | 161,007 | 10.6% | 373,470 | 375,836 | -0.6% |
EBIT | 106,563 | 90,575 | 17.7% | 164,564 | 170,857 | -3.7% |
FINANCIAL INCOME (EXPENSE) | ||||||
Financial Income | 17,283 | 20,416 | -15.3% | 50,959 | 51,119 | -0.3% |
Financial Expenses | (86,125) | (81,062) | 6.2% | (254,600) | (224,657) | 13.3% |
(68,842) | (60,646) | 13.5% | (203,641) | (173,538) | 17.3% | |
INCOME BEFORE TAXES ON INCOME | 37,721 | 29,929 | 26.0% | (37,638) | (2,681) | 1303.8% |
Social Contribution | (5,340) | (3,833) | 39.3% | (8,952) | (6,691) | 33.8% |
Income Tax | (6,513) | (4,145) | 57.1% | (11,608) | (7,377) | 57.4% |
NET INCOME Adjusted(1) | 25,868 | 21,951 | 17.8% | (58,199) | (16,749) | 247.5% |
1) Please, considers: | ||||||
(i) Proportional participation (51.61%); | ||||||
(ii) Exclusion of the non-recurring effect (R$ 8 million in 3Q15); | ||||||
Renováveis is reclassified as a cost in our pro forma analysis; | ||||||
in 9M16) is reclassified as “Other Operating Costs/Expenses”. |
Página 67 de 73
|
3Q16 Results | November 10, 2016 |
(Pro forma, R$ thousands)
Consolidated | ||||||
3Q16 | 3Q15 | Variation | 9M16 | 9M15 | Variation | |
OPERATING REVENUE | ||||||
Electricity Sales to Final Customers | 5,056,216 | 5,703,678 | -11.4% | 16,664,433 | 16,355,097 | 1.9% |
Electricity Sales to Distributors | 217,629 | 109,989 | 97.9% | 458,873 | 721,983 | -36.4% |
Revenue from building the infrastructure | 299,165 | 247,560 | 20.8% | 782,162 | 735,825 | 6.3% |
Sectoral financial assets and liabilities | (558,007) | 727,814 | - | (1,752,239) | 2,311,969 | - |
Other Operating Revenues | 1,022,916 | 840,752 | 21.7% | 2,623,450 | 2,242,591 | 17.0% |
6,037,919 | 7,629,793 | -20.9% | 18,776,679 | 22,367,467 | -16.1% | |
DEDUCTIONS FROM OPERATING REVENUE | (2,473,700) | (3,579,976) | -30.9% | (8,276,677) | (9,622,361) | -14.0% |
NET OPERATING REVENUE | 3,564,219 | 4,049,817 | -12.0% | 10,500,002 | 12,745,106 | -17.6% |
COST OF ELECTRIC ENERGY SERVICES | ||||||
Electricity Purchased for Resale | (2,108,341) | (2,381,929) | -11.5% | (5,985,341) | (8,175,128) | -26.8% |
Electricity Network Usage Charges | (278,240) | (427,507) | -34.9% | (945,928) | (1,074,535) | -12.0% |
(2,386,581) | (2,809,436) | -15.1% | (6,931,269) | (9,249,663) | -25.1% | |
OPERATING COSTS AND EXPENSES | ||||||
Personnel | (167,303) | (163,408) | 2.4% | (508,291) | (487,342) | 4.3% |
Material | (32,585) | (26,157) | 24.6% | (90,090) | (69,797) | 29.1% |
Outsourced Services | (163,632) | (133,395) | 22.7% | (467,274) | (380,879) | 22.7% |
Other Operating Costs/Expenses | (106,175) | (92,290) | 15.0% | (395,246) | (367,868) | 7.4% |
Allowance for Doubtful Accounts | (32,534) | (31,269) | 4.0% | (126,696) | (90,832) | 39.5% |
Legal and Judicial Expenses | (28,698) | (41,233) | -30.4% | (126,840) | (181,929) | -30.3% |
Others | (44,942) | (19,789) | 127.1% | (141,709) | (95,107) | 49.0% |
Cost of building the infrastructure | (299,165) | (247,560) | 20.8% | (782,162) | (735,825) | 6.3% |
Employee Pension Plans | (23,141) | (16,234) | 42.5% | (50,323) | (48,696) | 3.3% |
Depreciation and Amortization | (120,964) | (112,697) | 7.3% | (358,680) | (342,582) | 4.7% |
Amortization of Concession's Intangible | (5,918) | (5,014) | 18.0% | (17,753) | (15,404) | 15.2% |
(918,883) | (796,755) | 15.3% | (2,669,818) | (2,448,394) | 9.0% | |
EBITDA (IFRS)(1) | 385,637 | 561,337 | -31.3% | 1,275,348 | 1,405,035 | -9.2% |
EBIT | 258,755 | 443,626 | -41.7% | 898,916 | 1,047,049 | -14.1% |
FINANCIAL INCOME (EXPENSE) | ||||||
Financial Income | 233,581 | 301,861 | -22.6% | 826,408 | 746,938 | 10.6% |
Financial Expenses | (384,507) | (427,213) | -10.0% | (982,232) | (1,001,381) | -1.9% |
Interest on Equity | ||||||
(150,926) | (125,351) | 20.4% | (155,824) | (254,443) | -38.8% | |
INCOME BEFORE TAXES ON INCOME | 107,829 | 318,274 | -66.1% | 743,092 | 792,606 | -6.2% |
Social Contribution | (12,318) | (31,358) | -60.7% | (74,891) | (74,977) | -0.1% |
Income Tax | (31,594) | (85,909) | -63.2% | (199,480) | (206,160) | -3.2% |
Net Income (IFRS) | 63,916 | 201,007 | -68.2% | 468,720 | 511,469 | -8.4% |
Note: | ||||||
(1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization, as CVM Instruction no. 527/12. | ||||||
Página 68 de 73
|
3Q16 Results | November 10, 2016 |
(Pro forma, R$ thousands)
Consolidated | |||||||
3Q16 | 3Q15 | Variation | 9M16 | 9M15 | Variation | ||
OPERATING REVENUE | |||||||
Electricity Sales to Final Customers | 5,056,216 | 5,703,678 | -11.4% | 16,664,433 | 16,355,097 | 1.9% | |
Electricity Sales to Distributors | 217,629 | 109,989 | 97.9% | 458,873 | 721,983 | -36.4% | |
Revenue from building the infrastructure | 299,165 | 247,560 | 20.8% | 782,162 | 735,825 | 6.3% | |
Sectoral financial assets and liabilities | (555,330) | 597,187 | - | (1,718,497) | 2,115,902 | - | |
Other Operating Revenues | 1,022,916 | 840,752 | 21.7% | 2,623,450 | 2,242,591 | 17.0% | |
6,040,596 | 7,499,166 | -19.4% | 18,810,422 | 22,171,400 | -15.2% | ||
DEDUCTIONS FROM OPERATING REVENUE | (2,473,700) | (3,567,893) | -30.7% | (8,276,677) | (9,573,008) | -13.5% | |
NET OPERATING REVENUE | 3,566,896 | 3,931,273 | -9.3% | 10,533,745 | 12,598,392 | -16.4% | |
COST OF ELECTRIC ENERGY SERVICES | |||||||
Electricity Purchased for Resale | (2,108,341) | (2,381,929) | -11.5% | (5,985,341) | (8,175,128) | -26.8% | |
Electricity Network Usage Charges | (278,240) | (427,507) | -34.9% | (945,928) | (1,074,535) | -12.0% | |
(2,386,581) | (2,809,436) | -15.1% | (6,931,269) | (9,249,663) | -25.1% | ||
OPERATING COSTS AND EXPENSES | |||||||
Personnel | (167,303) | (163,408) | 2.4% | (508,291) | (487,342) | 4.3% | |
Material | (32,585) | (26,157) | 24.6% | (90,090) | (69,797) | 29.1% | |
Outsourced Services | (163,632) | (133,395) | 22.7% | (467,274) | (380,879) | 22.7% | |
Other Operating Costs/Expenses | (106,175) | (92,290) | 15.0% | (395,246) | (318,056) | 24.3% | |
Allowance for Doubtful Accounts | (32,534) | (31,269) | 4.0% | (126,696) | (90,832) | 39.5% | |
Legal and Judicial Expenses | (28,698) | (41,233) | -30.4% | (126,840) | (132,117) | -4.0% | |
Others | (44,942) | (19,789) | 127.1% | (141,709) | (95,107) | 49.0% | |
Cost of building the infrastructure | (299,165) | (247,560) | 20.8% | (782,162) | (735,825) | 6.3% | |
Employee Pension Plans | (23,141) | (16,234) | 42.5% | (50,323) | (48,696) | 3.3% | |
Depreciation and Amortization | (120,964) | (112,697) | 7.3% | (358,680) | (342,582) | 4.7% | |
Amortization of Concession's Intangible | (5,918) | (5,014) | 18.0% | (17,753) | (15,404) | 15.2% | |
(918,883) | (796,755) | 15.3% | (2,669,818) | (2,398,582) | 11.3% | ||
Adjusted EBITDA(1) | 388,314 | 442,793 | -12.3% | 1,309,091 | 1,308,132 | 0.1% | |
EBIT | 261,433 | 325,082 | -19.6% | 932,659 | 950,146 | -1.8% | |
FINANCIAL INCOME (EXPENSE) | |||||||
Financial Income | 233,581 | 301,861 | -22.6% | 826,408 | 736,381 | 12.2% | |
Financial Expenses | (387,185) | (308,668) | 25.4% | (1,015,974) | (814,109) | 24.8% | |
Interest on Equity | |||||||
(153,604) | (6,807) | 2156.5% | (189,567) | (77,728) | 143.9% | ||
INCOME BEFORE TAXES ON INCOME | 107,829 | 318,274 | -66.1% | 743,092 | 872,418 | -14.8% | |
Social Contribution | (12,318) | (31,358) | -60.7% | (74,891) | (82,160) | -8.8% | |
Income Tax | (31,594) | (85,909) | -63.2% | (199,480) | (226,113) | -11.8% | |
Adjusted Net Income(2) | 63,916 | 201,007 | -68.2% | 468,720 | 564,145 | -16.9% | |
Notes: | |||||||
(1) Adjusted EBITDA excludes the non-recurring effects and the exchange variation in Itaipu invoices (negative effect of R$ 3 million in 3Q16 and positive effect of R$ 119 million in 3Q15); | |||||||
(2) Adjusted Net Income excludes the non-recurring effects. |
Página 69 de 73
|
3Q16 Results | November 10, 2016 |
(R$ thousands)
Summary of Income Statement by Distribution Company (R$ Thousands) | ||||||
CPFL PAULISTA | ||||||
| ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Gross Operating Revenue | 3,111,428 | 4,086,626 | -23.9% | 9,712,671 | 11,783,067 | -17.6% |
Net Operating Revenue | 1,835,304 | 2,155,126 | -14.8% | 5,457,006 | 6,632,712 | -17.7% |
Cost of Electric Power | (1,255,263) | (1,519,877) | -17.4% | (3,679,409) | (4,875,263) | -24.5% |
Operating Costs & Expenses | (460,609) | (393,575) | 17.0% | (1,341,159) | (1,243,089) | 7.9% |
EBIT | 119,432 | 241,673 | -50.6% | 436,438 | 514,360 | -15.1% |
EBITDA (IFRS)(1) | 173,395 | 295,005 | -41.2% | 596,010 | 677,245 | -12.0% |
Financial Income (Expense) | (86,802) | (106,357) | -18.4% | (61,482) | (165,717) | -62.9% |
Income Before Taxes | 32,631 | 135,316 | -75.9% | 374,957 | 348,643 | 7.5% |
Net Income (IFRS) | 17,278 | 83,982 | -79.4% | 235,118 | 221,667 | 6.1% |
CPFL PIRATININGA | ||||||
| ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Gross Operating Revenue | 1,380,474 | 1,654,526 | -16.6% | 4,341,430 | 5,055,216 | -14.1% |
Net Operating Revenue | 788,209 | 838,533 | -6.0% | 2,323,549 | 2,807,103 | -17.2% |
Cost of Electric Power | (553,388) | (616,293) | -10.2% | (1,612,643) | (2,103,498) | -23.3% |
Operating Costs & Expenses | (179,594) | (150,305) | 19.5% | (506,317) | (473,049) | 7.0% |
EBIT | 55,228 | 71,935 | -23.2% | 204,589 | 230,556 | -11.3% |
EBITDA (IFRS)(1) | 78,399 | 96,093 | -18.4% | 273,693 | 302,799 | -9.6% |
Financial Income (Expense) | (29,519) | 28,708 | -202.8% | (22,580) | 1,535 | -1571.3% |
Income Before Taxes | 25,709 | 100,643 | -74.5% | 182,009 | 232,090 | -21.6% |
Net Income (IFRS) | 15,178 | 64,184 | -76.4% | 112,604 | 150,216 | -25.0% |
RGE | ||||||
| ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Gross Operating Revenue | 1,204,924 | 1,467,087 | -17.9% | 3,682,646 | 4,323,838 | -14.8% |
Net Operating Revenue | 726,108 | 821,028 | -11.6% | 2,094,197 | 2,610,508 | -19.8% |
Cost of Electric Power | (453,206) | (530,790) | -14.6% | (1,288,232) | (1,824,864) | -29.4% |
Operating Costs & Expenses | (212,754) | (196,789) | 8.1% | (632,125) | (573,953) | 10.1% |
EBIT | 60,149 | 93,449 | -35.6% | 173,839 | 211,691 | -17.9% |
EBITDA (IFRS)(1) | 98,626 | 127,338 | -22.5% | 288,221 | 311,907 | -7.6% |
Financial Income (Expense) | (29,290) | (32,576) | -10.1% | (49,904) | (73,417) | -32.0% |
Income Before Taxes | 30,859 | 60,873 | -49.3% | 123,936 | 138,274 | -10.4% |
Net Income (IFRS) | 19,744 | 39,104 | -49.5% | 79,132 | 91,861 | -13.9% |
CPFL SANTA CRUZ | ||||||
| ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Gross Operating Revenue | 150,478 | 183,012 | -17.8% | 454,599 | 542,901 | -16.3% |
Net Operating Revenue | 96,429 | 105,121 | -8.3% | 276,054 | 324,805 | -15.0% |
Cost of Electric Power | (59,034) | (68,355) | -13.6% | (159,779) | (219,978) | -27.4% |
Operating Costs & Expenses | (27,870) | (22,688) | 22.8% | (83,871) | (66,185) | 26.7% |
EBIT | 9,525 | 14,078 | -32.3% | 32,403 | 38,642 | -16.1% |
EBITDA (IFRS)(1) | 14,221 | 16,858 | -15.6% | 46,302 | 48,542 | -4.6% |
Financial Income (Expense) | (1,995) | (3,937) | -49.3% | (7,661) | (1,808) | 323.8% |
Income Before Taxes | 7,530 | 10,141 | -25.8% | 24,742 | 36,834 | -32.8% |
Net Income (IFRS) | 4,739 | 6,461 | -26.6% | 17,209 | 24,563 | -29.9% |
Notes: | ||||||
(1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization; |
Página 70 de 73
|
3Q16 Results | November 10, 2016 |
Summary of Income Statement by Distribution Company (R$ Thousands) | ||||||
CPFL LESTE PAULISTA | ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Gross Operating Revenue | 46,235 | 55,058 | -16.0% | 133,837 | 149,566 | -10.5% |
Net Operating Revenue | 30,770 | 32,546 | -5.5% | 84,743 | 89,922 | -5.8% |
Cost of Electric Power | (15,563) | (17,299) | -10.0% | (43,233) | (51,422) | -15.9% |
Operating Costs & Expenses | (10,066) | (8,288) | 21.4% | (28,219) | (23,596) | 19.6% |
EBIT | 5,141 | 6,959 | -26.1% | 13,291 | 14,904 | -10.8% |
EBITDA (IFRS)(1) | 6,883 | 7,922 | -13.1% | 18,468 | 18,725 | -1.4% |
Financial Income (Expense) | (997) | (2,241) | -55.5% | (4,016) | (2,537) | 58.3% |
Income Before Taxes | 4,144 | 4,718 | -12.2% | 9,274 | 12,367 | -25.0% |
Net Income (IFRS) | 2,666 | 3,109 | -14.3% | 6,485 | 7,887 | -17.8% |
CPFL SUL PAULISTA | ||||||
| ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Gross Operating Revenue | 58,890 | 72,299 | -18.5% | 181,510 | 203,171 | -10.7% |
Net Operating Revenue | 37,406 | 39,506 | -5.3% | 110,922 | 114,669 | -3.3% |
Cost of Electric Power | (19,355) | (22,363) | -13.5% | (58,658) | (67,262) | -12.8% |
Operating Costs & Expenses | (14,313) | (10,098) | 41.7% | (39,013) | (29,860) | 30.7% |
EBIT | 3,738 | 7,045 | -46.9% | 13,251 | 17,547 | -24.5% |
EBITDA (IFRS)(1) | 6,087 | 8,231 | -26.0% | 20,197 | 21,602 | -6.5% |
Financial Income (Expense) | (961) | (2,949) | -67.4% | (4,229) | (2,798) | 51.1% |
Income Before Taxes | 2,777 | 4,096 | -32.2% | 9,022 | 14,749 | -38.8% |
Net Income (IFRS) | 1,780 | 2,675 | -33.5% | 5,846 | 9,501 | -38.5% |
CPFL JAGUARI | ||||||
| ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Gross Operating Revenue | 56,277 | 74,204 | -24.2% | 181,639 | 210,442 | -13.7% |
Net Operating Revenue | 32,183 | 37,241 | -13.6% | 101,721 | 110,018 | -7.5% |
Cost of Electric Power | (23,443) | (26,004) | -9.8% | (68,622) | (82,097) | -16.4% |
Operating Costs & Expenses | (7,038) | (6,655) | 5.8% | (19,906) | (18,911) | 5.3% |
EBIT | 1,703 | 4,583 | -62.8% | 13,193 | 9,009 | 46.4% |
EBITDA (IFRS)(1) | 2,838 | 5,266 | -46.1% | 16,565 | 11,441 | 44.8% |
Financial Income (Expense) | (579) | (3,186) | -81.8% | (2,688) | (5,804) | -53.7% |
Income Before Taxes | 1,124 | 1,397 | -19.5% | 10,505 | 3,205 | 227.7% |
Net Income (IFRS) | 565 | 796 | -29.0% | 6,422 | 1,687 | 280.6% |
CPFL MOCOCA | ||||||
| ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Gross Operating Revenue | 32,800 | 41,603 | -21.2% | 99,337 | 111,224 | -10.7% |
Net Operating Revenue | 21,088 | 25,008 | -15.7% | 61,853 | 66,375 | -6.8% |
Cost of Electric Power | (10,357) | (11,682) | -11.3% | (29,988) | (34,672) | -13.5% |
Operating Costs & Expenses | (6,892) | (9,422) | -26.9% | (19,953) | (21,362) | -6.6% |
EBIT | 3,839 | 3,904 | -1.7% | 11,912 | 10,340 | 15.2% |
EBITDA (IFRS)(1) | 5,186 | 4,625 | 12.1% | 15,892 | 12,775 | 24.4% |
Financial Income (Expense) | (784) | (2,814) | -72.1% | (3,265) | (3,897) | -16.2% |
Income Before Taxes | 3,055 | 1,090 | 180.4% | 8,647 | 6,443 | 34.2% |
Net Income (IFRS) | 1,966 | 696 | 182.4% | 5,905 | 4,086 | 44.5% |
Notes: | ||||||
(1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization; |
Página 71 de 73
|
3Q16 Results | November 10, 2016 |
CPFL Paulista | ||||||
| ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Residential | 2,069 | 2,070 | -0.1% | 6,650 | 6,677 | -0.4% |
Industrial | 2,691 | 2,696 | -0.2% | 7,910 | 8,262 | -4.3% |
Commercial | 1,229 | 1,290 | -4.7% | 4,075 | 4,223 | -3.5% |
Others | 1,084 | 1,046 | 3.7% | 3,102 | 3,058 | 1.4% |
Total | 7,073 | 7,101 | -0.4% | 21,737 | 22,220 | -2.2% |
CPFL Piratininga | ||||||
| ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Residential | 855 | 900 | -5.1% | 2,840 | 2,960 | -4.1% |
Industrial | 1,564 | 1,813 | -13.8% | 4,743 | 5,633 | -15.8% |
Commercial | 549 | 558 | -1.5% | 1,800 | 1,811 | -0.6% |
Others | 271 | 270 | 0.3% | 830 | 828 | 0.2% |
Total | 3,238 | 3,541 | -8.6% | 10,212 | 11,232 | -9.1% |
RGE | ||||||
| ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Residential | 646 | 608 | 6.3% | 1,960 | 1,866 | 5.1% |
Industrial | 855 | 845 | 1.2% | 2,459 | 2,545 | -3.4% |
Commercial | 317 | 320 | -1.0% | 1,044 | 1,072 | -2.6% |
Others | 660 | 642 | 2.7% | 2,076 | 2,011 | 3.3% |
Total | 2,477 | 2,415 | 2.6% | 7,539 | 7,494 | 0.6% |
CPFL Santa Cruz | ||||||
| ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Residential | 85 | 84 | 1.1% | 266 | 264 | 0.9% |
Industrial | 52 | 55 | -7.1% | 157 | 169 | -7.0% |
Commercial | 35 | 37 | -5.2% | 118 | 123 | -3.8% |
Others | 91 | 88 | 3.3% | 265 | 262 | 1.3% |
Total | 262 | 264 | -0.7% | 806 | 817 | -1.3% |
CPFL Jaguari | ||||||
| ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Residential | 21 | 21 | 3.3% | 67 | 66 | 1.3% |
Industrial | 94 | 94 | 0.4% | 288 | 286 | 0.7% |
Commercial | 12 | 11 | 5.4% | 38 | 38 | 1.4% |
Others | 9 | 9 | 1.0% | 28 | 28 | 1.5% |
Total | 137 | 135 | 1.3% | 421 | 418 | 0.9% |
CPFL Mococa | ||||||
| ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Residential | 18 | 18 | 1.2% | 56 | 56 | 0.8% |
Industrial | 16 | 15 | 12.1% | 48 | 45 | 6.0% |
Commercial | 7 | 7 | -5.6% | 23 | 24 | -4.6% |
Others | 17 | 16 | 1.8% | 46 | 45 | 1.7% |
Total | 58 | 56 | 3.3% | 173 | 170 | 1.7% |
CPFL Leste Paulista | ||||||
| ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Residential | 25 | 24 | 1.9% | 75 | 74 | 0.6% |
Industrial | 21 | 19 | 11.4% | 63 | 57 | 9.5% |
Commercial | 10 | 10 | -1.4% | 33 | 33 | -1.6% |
Others | 35 | 34 | 1.7% | 85 | 83 | 1.6% |
Total | 91 | 88 | 3.5% | 255 | 248 | 2.7% |
CPFL Sul Paulista | ||||||
| ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Residential | 36 | 35 | 1.6% | 109 | 108 | 0.5% |
Industrial | 46 | 76 | -40.1% | 139 | 233 | -40.2% |
Commercial | 13 | 13 | -4.2% | 42 | 44 | -3.7% |
Others | 23 | 23 | -2.5% | 69 | 70 | -1.2% |
Total | 117 | 148 | -21.1% | 359 | 455 | -21.0% |
Página 72 de 73
|
3Q16 Results | November 10, 2016 |
CPFL Paulista | ||||||
| ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Residential | 2,069 | 2,070 | -0.1% | 6,650 | 6,677 | -0.4% |
Industrial | 811 | 930 | -12.7% | 2,553 | 2,870 | -11.0% |
Commercial | 1,073 | 1,162 | -7.7% | 3,619 | 3,810 | -5.0% |
Others | 1,054 | 1,015 | 3.8% | 3,004 | 2,962 | 1.4% |
Total | 5,006 | 5,177 | -3.3% | 15,827 | 16,319 | -3.0% |
CPFL Piratininga | ||||||
| ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Residential | 855 | 900 | -5.1% | 2,840 | 2,960 | -4.1% |
Industrial | 429 | 512 | -16.2% | 1,352 | 1,570 | -13.9% |
Commercial | 475 | 499 | -4.7% | 1,586 | 1,615 | -1.8% |
Others | 247 | 260 | -4.9% | 782 | 793 | -1.4% |
Total | 2,006 | 2,171 | -7.6% | 6,560 | 6,939 | -5.5% |
RGE | ||||||
| ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Residential | 646 | 608 | 6.3% | 1,960 | 1,866 | 5.1% |
Industrial | 351 | 379 | -7.6% | 1,061 | 1,153 | -8.0% |
Commercial | 298 | 307 | -2.8% | 988 | 1,015 | -2.6% |
Others | 659 | 642 | 2.6% | 2,076 | 2,011 | 3.2% |
Total | 1,954 | 1,936 | 0.9% | 6,085 | 6,044 | 0.7% |
CPFL Santa Cruz | ||||||
| ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Residential | 85 | 84 | 1.1% | 266 | 264 | 0.9% |
Industrial | 36 | 44 | -19.0% | 117 | 135 | -13.6% |
Commercial | 35 | 37 | -5.7% | 117 | 122 | -4.0% |
Others | 91 | 88 | 3.3% | 265 | 262 | 1.3% |
Total | 246 | 253 | -2.6% | 765 | 783 | -2.2% |
CPFL Jaguari | ||||||
| ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Residential | 21 | 21 | 3.3% | 67 | 66 | 1.3% |
Industrial | 70 | 77 | -8.6% | 212 | 235 | -9.4% |
Commercial | 12 | 11 | 5.4% | 38 | 38 | 1.4% |
Others | 9 | 9 | 1.0% | 28 | 28 | 1.5% |
Total | 113 | 118 | -4.4% | 346 | 366 | -5.6% |
CPFL Mococa | ||||||
| ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Residential | 18 | 18 | 1.2% | 56 | 56 | 0.8% |
Industrial | 9 | 9 | 7.6% | 27 | 27 | 0.9% |
Commercial | 7 | 7 | -5.6% | 23 | 24 | -4.6% |
Others | 17 | 16 | 1.8% | 46 | 45 | 1.7% |
Total | 51 | 51 | 1.5% | 152 | 151 | 0.2% |
CPFL Leste Paulista | ||||||
| ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Residential | 25 | 24 | 1.9% | 75 | 74 | 0.6% |
Industrial | 7 | 7 | 7.2% | 21 | 21 | -0.8% |
Commercial | 10 | 10 | -1.4% | 33 | 33 | -1.6% |
Others | 35 | 34 | 1.7% | 85 | 83 | 1.6% |
Total | 77 | 76 | 1.9% | 213 | 212 | 0.5% |
CPFL Sul Paulista | ||||||
| ||||||
3Q16 | 3Q15 | Var. | 9M16 | 9M15 | Var. | |
Residential | 36 | 35 | 1.6% | 109 | 108 | 0.5% |
Industrial | 24 | 24 | -0.8% | 72 | 72 | -0.6% |
Commercial | 13 | 13 | -4.2% | 42 | 44 | -3.7% |
Others | 23 | 23 | -2.5% | 69 | 70 | -1.2% |
Total | 95 | 96 | -0.8% | 292 | 294 | -0.8% |
Página 73 de 73
CPFL ENERGIA S.A. | ||
|
By: |
/S/ GUSTAVO ESTRELLA
|
Name: Title: |
Gustavo Estrella Chief Financial Officer and Head of Investor Relations |
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.