Eletrobras Shares Rise 2.5% After Positive 2Q Earnings Report

By Jeffrey T. Lewis

SÃO PAULO--Centrais Elétricas Brasileiras's ordinary shares rose 2.5% after the Brazilian electric company known as Eletrobras reported profit rose in the second quarter from a year earlier.

The ordinary shares reached 37.15 reais and its preferred shares rose 1.5% to BRL41.62 reais. The ordinary shares were down 14% from the end of last year through Monday's close, while the preferred shares were down 5.2% in the same period. Brazil's benchmark Ibovespa stocks index was down 1.1% in early trading.

Eletrobras said 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.

Eletrobras posted better-than-expected generation and transmission results, and the earnings report showed that efforts to reduce operating expenses could start produce results in coming quarters, XP Investimentos analyst Maira Maldonado said in a research note.

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

(END) Dow Jones Newswires

August 08, 2023 10:02 ET (14:02 GMT)

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