Eletrobras 2Q Profit Increased on Higher Revenue

By Jeffrey T. Lewis

SÃO PAULO-Centrais Elétricas Brasileiras's profit increased in the second quarter after the higher price of energy sales in Brazil's open power market boosted revenue.

The electric utility known as Eletrobras said late Monday evening that it had net income of 1.6 billion reais in the quarter, the equivalent of $327 million, compared with BRL1.4 billion a year earlier. Net operating revenue rose to BRL9.2 billion from BRL8.9 billion.

The power company said it provisioned BRL513 million to pay for its second voluntary retirement plan, which was accepted by 1,475 workers before finishing. Eletrobras expects to save close to BRL688 million per year from the retirements.

Brazil's electricity market has multiple segments, including one with prices regulated by the government and another open market where prices are set by supply and demand.

Eletrobras said the amount of power sold in the regulated market increased 78% from a year earlier, but the average price in that market declined 23% from the same period of 2022. The company sold 13.9% more in the open market while the average price in that segment rose 3.5%.

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

(END) Dow Jones Newswires

August 08, 2023 08:25 ET (12:25 GMT)

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