SAO PAULO (Reuters) -Brazilian power giant Eletrobras reported late on Wednesday a first-quarter net profit of 331 million reais ($65 million), down 19% from a year earlier as it resumed transmission investments and faced lower energy prices.
WHY IT'S IMPORTANT
Eletrobras is Latin America's largest utility and has been implementing new strategies after it was privatized in June 2022, when the Brazilian government diluted its stake in the firm in a transaction worth more than $6 billion.
The company now has dispersed ownership.
KEY QUOTE
"Results in the first quarter reflected the ongoing search for cost rationalization, the focus on financial management and the resumption of investments in transmission," Eletrobras said in a statement.
MARKET REACTION
Sao Paulo-traded shares of Eletrobras fell more than 5% after the results, underperforming Brazil's benchmark stock index Bovespa, which was trading down 1.5%.
Analysts at Itau BBA said in a note to clients that core earnings came in slightly below their expectations due to lower average free-market energy prices, but Eletrobras had a solid performance in terms of compulsory loan liability management.
BY THE NUMBERS
Eletrobras' net revenues fell 6% in the first three months of the year to 8.72 billion reais.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) slipped 19% to 4.5 billion reais.
($1 = 5.0904 reais)