Eletrobras 1Q Profit Declined After Financial Expenses Jumped

By Jeffrey T. Lewis

SÃO PAULO-Centrais Elétricas Brasileiras SA, or Eletrobras, said Thursday that its profit dropped in the first quarter after financial expenses shot up from the purchase of a stake in one of its units and from renovative and charitable measures.

The Brazilian electric utility company said late Thursday evening that it had net income of 406 million reais in the quarter, the equivalent of $81.5 million, compared with BRL2.72 billion in the year-ago period. Net operating revenue rose to BRL9.21 billion from BRL8.17 billion.

Eletrobras in March boosted its stake in a hydroelectric plant to 95.2% and consolidated the plant's debt into its own, increasing the parent company's interest expenses by BRL996 million. Net expense swung to BRL3.13 billion in the first quarter partly as a result, from net income of BRL589 million in the year-ago period.

First-quarter results were also impacted by the BRL1.37 billion that Eletrobras paid for the revitalization of select hydrographic basins and for the restatement of certain obligations to a government fund set up to help low-income residents pay their electric bills.

Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com

(END) Dow Jones Newswires

May 05, 2023 07:58 ET (11:58 GMT)

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