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, 2011 – CPFL Energia S.A. (BM&FBOVESPA: CPFE3 and NYSE: CPL), announces its 3Q11 results. The financial and operational information herein, unless otherwise indicated, is presented on a consolidated basis and is in accordance with the applicable legislation. The financial statements are presented according to the new Brazilian accounting standards, fully adapted to all statements issued by the Accounting Pronouncements Committee (CPC) applicable to the operations of CPFL group, which are consistent with the international accounting practices – IFRS. Comparisons are relative to 3Q10, unless otherwise stated.
CPFL ENERGIA ANNOUNCES 3Q11 NET INCOME
OF R$ 379 MILLION
Indicators (R$ Million) |
3Q11 |
3Q10 |
Var. |
9M11 |
9M10 |
Var. |
Sales within the Concession Area - GWh |
13,757 |
13,201 |
4.2% |
40,643 |
38,714 |
5.0% |
Captive Market |
10,071 |
9,779 |
3.0% |
29,734 |
29,381 |
1.2% |
TUSD |
3,687 |
3,423 |
7.7% |
10,909 |
9,333 |
16.9% |
Commercialization and Generation Sales - GWh |
3,125 |
3,047 |
2.5% |
8,998 |
9,062 |
-0.7% |
Gross Operating Revenue |
4,858 |
4,494 |
8.1% |
13,883 |
12,965 |
7.1% |
Net Operating Revenue |
3,292 |
3,099 |
6.2% |
9,360 |
8,845 |
5.8% |
EBITDA (IFRS)(1) |
956 |
768 |
24.6% |
2,791 |
2,541 |
9.8% |
EBITDA (IFRS+ Regulatory Assets & Liabilities - Non-Recurring)(2) |
996 |
857 |
16.2% |
NA |
NA |
NA |
Net Income (IFRS) |
379 |
351 |
8.1% |
1,139 |
1,198 |
-5.0% |
Net Income (IFRS+ Regulatory Assets & Liabilities - Non-Recurring)(3) |
401 |
401 |
0.0% |
NA |
NA |
NA |
Investments |
465 |
502 |
-7.4% |
1,202 |
1,224 |
-1.8% |
|
|
|
|
|
|
|
Notes:
(1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result, depreciation/amortization and pension fund contributions;
(2) EBITDA (IFRS + Regulatory Assets & Liabilitites – Non-recurring) considers, besides the items mentioned above, the regulatory assets and liabilities, and excludes the non-recurring effects;
(3) Net Income (IFRS + Regulatory Assets & Liabilitites – Non-recurring) considers the regulatory assets and liabilities and excludes the non-recurring effects.
NA = Not applicable.
3Q11 HIGHLIGHTS
· Increase of 4.2% in sales within the concession area;
· Acquisition of Santa Luzia Small Hydro Power Plant by CPFL Renováveis in August, with 28.5 MW of installed capacity;
· Commercial start-up of Bio Formosa (September) and Bio Buriti (October) Thermoelectric Facilities, totaling 90 MW of installed capacity;
· R$ 1,435 million funding through Law 4,131, at average cost of 100% of CDI and term between 3 and 5 years;
· Incorporation of 10.1 thousands of kilometers of private network up to September (total of R$ 130 million);
· Completion of the investment plan for CPFL Piratininga 2nd cycle of Tariff Review, of R$ 664 million, equivalent to 100.2%;
· CPFL Paulista and RGE are winners of National Quality Award (PNQ). CPFL Energia is the best Electric Energy company by the annuary Valor 1000 of Valor Econômico Newspaper;
· CPFL Energia was elected, by the Institutional Investor magazine, by the 2nd consecutive year, as the company with the best CEO, IR Professional and IR Team of the Latin America Utilities Sector, in 2011;
· Appreciation of 13.1% of CPFL Energia’s shares price on the BM&FBOVESPA in 9M11, outperforming the Ibovespa (-24.6%) and the IEE (9.1%).
INDEX
1) ENERGY SALES | 3 |
1.1) Sales within the Distributors’ Concession Area | 3 |
1.1.1) Sales to the Captive Market | 3 |
1.1.2) Sales by Class – Concession Area | 4 |
1.1.3) TUSD by Distributor | 4 |
1.2) Commercialization and Generation Sales – Excluding Related Parties | 4 |
2) INFORMATION ON INTEREST IN COMPANIES AND CRITERIA OF FINANCIAL STATEMENTS CONSOLIDATION | 5 |
2.1) Consolidation of CPFL Renováveis Financial Statements | 6 |
3) ECONOMIC-FINANCIAL PERFORMANCE | 7 |
3.1) Operating Revenue | 7 |
3.2) Cost of Electric Energy | 8 |
3.3) Operating Costs and Expenses | 9 |
3.4) Regulatory Assets and Liabilities | 11 |
3.5) EBITDA | 11 |
3.6) Financial Result | 11 |
3.7) Net Income | 11 |
4) DEBT | 12 |
4.1) Financial Debt (Including Hedge) | 12 |
4.2) Total Debt (Financial Debt + Hedge + Debt with the Private Pension Fund) | 14 |
4.3) Adjusted Net Debt | 15 |
5) INVESTMENTS | 15 |
6) CASH FLOW | 16 |
7) DIVIDENDS | 17 |
8) STOCK MARKET | 18 |
8.1) Share Performance | 18 |
8.2) Average Daily Volume | 19 |
8.3) Ratings | 19 |
9) CORPORATE GOVERNANCE | 20 |
10) CURRENT SHAREHOLDERS STRUCTURE – 09/30/2011 | 21 |
11) PERFORMANCE OF THE BUSINESS SEGMENTS | 22 |
11.1) Distribution Segment | 22 |
11.1.1) Economic-Financial Performance | 22 |
11.1.2) Tariff Review | 26 |
11.1.3) Tariff Adjustment | 27 |
11.2) Commercialization and Services Segment (excluding CPFL Renováveis) | 28 |
11.3) Conventional Generation Segment (excluding CPFL Renováveis) | 29 |
11.3.1) Economic-Financial Performance | 29 |
11.4) CPFL Renováveis | 31 |
11.4.1) Economic-Financial Performance | 31 |
11.4.2) Status of Generation Projects | 32 |
11.4.3) Acquisition of Santa Luzia Small Hydro Power Plant | 34 |
12) ATTACHMENTS | 35 |
12.1) Statement of Assets – CPFL Energia | 35 |
12.2) Statement of Liabilities – CPFL Energia | 36 |
12.3) Income Statement – CPFL Energia | 37 |
12.4) Income Statement – Segments of Conventional Generation (excluding CPFL Renováveis) and CPFL Renováveis | 38 |
12.5) Income Statement – Consolidated Distribution Segment | 39 |
12.6) Economic-Financial Performance – Distributors |
40 |
12.7) Sales to the Captive Market by Distributor (in GWh) | 42 |
Page 2 of 42
In 3Q11, sales within the concession area, achieved by the distribution segment, totaled 13,757 GWh, an increase of 4.2%.
Vendas na Área de Concessão - GWh | ||||||
|
3T11 |
3T10 |
Var. |
9M11 |
9M10 |
Var. |
Mercado Cativo |
10,071 |
9,779 |
3.0% |
29,734 |
29,381 |
1.2% |
TUSD |
3,687 |
3,423 |
7.7% |
10,909 |
9,333 |
16.9% |
Total |
13,757 |
13,201 |
4.2% |
40,643 |
38,714 |
5.0% |
Sales to the captive market totaled 10,071 GWh, an increase of 3.0%.
The energy volume in GWh consumed by free customers in the distributors’ operational areas, billed through the Distribution System Usage Tariff (TUSD), rose by 7.7% to 3,687 GWh, reflecting the migration of customers to the free market.
Mercado Cativo - GWh | ||||||
|
3T11 |
3T10 |
Var. |
9M11 |
9M10 |
Var. |
Residencial |
3,449 |
3,226 |
6.9% |
10,164 |
9,697 |
4.8% |
Industrial |
2,707 |
2,866 |
-5.5% |
7,900 |
8,639 |
-8.6% |
Comercial |
1,921 |
1,784 |
7.7% |
5,955 |
5,642 |
5.5% |
Outros |
1,994 |
1,903 |
4.8% |
5,715 |
5,403 |
5.8% |
Total |
10,071 |
9,779 |
3.0% |
29,734 |
29,381 |
1.2% |
Note: The captive market sales by distributor tables are attached to this report in item 12.7.
In the captive market, emphasis is given to the growths of the residential and commercial classes, which jointly accounted for 53.3% of total consumption by the distributors’ captive consumers:
· Residential and commercial classes: up by 6.9% and 7.7%, respectively, favored by the accumulated effects of economic growth (increase of income levels, purchasing power of consumers and credit concessions) over recent years. The performance of the residential class was also positively impacted by higher billing days (on average 1.5 day more, equivalent to approximately 1.55%).
· Industrial class: down by 5.5%, due to the migration of customers to the free market and the slowdown in industrial production.
Page 3 of 42
TUSD by Distributor - GWh | ||||||
|
3Q11 |
3Q10 |
Var. |
9M11 |
9M10 |
Var. |
CPFL Paulista |
1,832 |
1,731 |
5.8% |
5,423 |
4,575 |
18.5% |
CPFL Piratininga |
1,420 |
1,343 |
5.8% |
4,227 |
3,844 |
10.0% |
RGE |
383 |
305 |
25.7% |
1,104 |
801 |
37.8% |
CPFL Santa Cruz |
5 |
5 |
-3.0% |
14 |
14 |
3.2% |
CPFL Jaguari |
8 |
19 |
-56.3% |
35 |
52 |
-32.2% |
CPFL Mococa |
- |
- |
0.0% |
- |
- |
0.0% |
CPFL Leste Paulista |
13 |
- |
0.0% |
34 |
- |
0.0% |
CPFL Sul Paulista |
25 |
20 |
25.4% |
73 |
48 |
51.5% |
Total |
3,687 |
3,423 |
7.7% |
10,909 |
9,333 |
16.9% |
Commercialization and Generation Sales - GWh | ||||||
|
3Q11 |
3Q10 |
Var. |
9M11 |
9M10 |
Var. |
Total |
3,125 |
3,047 |
2.5% |
8,998 |
9,062 |
-0.7% |
Note: Excludes sales to related parties and in the CCEE. Considers Furnas (Semesa) and other generation sales outside the group, except Epasa’s sales (availability contract). Includes 54.5% of CPFL Renováveis’ sales (excluding related parties).
In 3Q11, commercialization and generation sales moved up by 2.5% to 3,125 GWh, mainly due to the increase in sales to free customers, reflecting the increase in the number of customers in the portfolio this year (from 74 to 135) and CPFL Renováveis’ sales outside the group, consolidated as of August 1st (considering 54.5%).
Page 4 of 42
The interests directly or indirectly held by CPFL Energia in its subsidiaries and jointly-owned entities are described bellow. Except for the (i) jointly-owned entities Enercan, Baesa, Foz do Chapecó and Epasa, which are consolidated proportionately, and (ii) the investment in Investco recorded at cost by the subsidiary Paulista Lajeado, the other units are fully consolidated.
As of September 30, 2011, the participation of non-controlling interests stated in the consolidated statements refers to the third-party interests in the subsidiaries Ceran, Paulista Lajeado and in CPFL Renováveis.
Page 5 of 42
In August 24, 2011, the joint venture between CPFL Energia and ERSA was actually implemented, through the incorporation of CPFL Renováveis.
CPFL Energia now indirectly holds 54.50% of CPFL Renováveis, through its subsidiaries CPFL Geração (43.65%) and CPFL Brasil (10.85%).
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.
Page 6 of 42
Consolidated Income Statement - CPFL ENERGIA (R$ Thousands) | ||||||
|
3Q11 |
3Q10 |
Var. |
9M11 |
9M10 |
Var. |
Gross Operating Revenues |
4,858,087 |
4,494,484 |
8.1% |
13,883,340 |
12,965,301 |
7.1% |
Net Operating Revenues |
3,292,224 |
3,098,875 |
6.2% |
9,359,864 |
8,845,159 |
5.8% |
Cost of Electric Power |
(1,635,616) |
(1,665,778) |
-1.8% |
(4,578,729) |
(4,582,560) |
-0.1% |
Operating Costs & Expenses |
(874,137) |
(811,098) |
7.8% |
(2,507,619) |
(2,154,817) |
16.4% |
EBIT |
782,471 |
621,999 |
25.8% |
2,273,517 |
2,107,782 |
7.9% |
EBITDA (IFRS)(1) |
956,168 |
767,692 |
24.6% |
2,790,652 |
2,540,668 |
9.8% |
EBITDA (IFRS+ Regulatory Assets & Liabilities - Non-Recurring)(2) |
995,857 |
857,271 |
16.2% |
NA |
NA |
NA |
Financial Income (Expense) |
(205,203) |
(73,101) |
180.7% |
(518,358) |
(239,231) |
116.7% |
Income Before Taxes |
577,268 |
548,898 |
5.2% |
1,755,159 |
1,868,551 |
-6.1% |
NET INCOME (IFRS) |
379,064 |
350,781 |
8.1% |
1,139,022 |
1,198,414 |
-5.0% |
NET INCOME (IFRS+ Regulatory Assets & Liabilities - Non-Recurring)(3) |
400,810 |
400,618 |
0.0% |
NA |
NA |
NA |
Notes:
(1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result, depreciation/amortization and pension fund contributions;
(2) EBITDA (IFRS + Regulatory Assets & Liabilitites – Non-recurring) considers, besides the items mentioned above, the regulatory assets and liabilities, and excludes the non-recurring effects;
(3) Net Income (IFRS + Regulatory Assets & Liabilitites – Non-recurring) considers the regulatory assets and liabilities and excludes the non-recurring effects.
NA = Not applicable.
Gross operating revenue in 3Q11 reached R$ 4,858 million, representing an increase of 8.1% (R$ 364 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), gross operating revenue would have amounted to 4,544 million, an increase of 8.2% (R$ 345 million).
Deductions from the operating revenue were R$ 1,566 million, representing an increase of 12.2% (R$ 170 million), mainly due to the following factors: (i) increase of 11.1% in taxes on revenue (R$ 117 million); (ii) increase of 14.9% in CCC and CDE sector charges (R$ 41 million); (iii) increase of 12.5% in the amounts related to the R&D and energetic efficiency program (R$ 4 million); (iv) increase of 21.9% in global reversal reserve - RGR (R$ 4 million); and (v) increase of 24.8% in the amounts related to Proinfa (R$ 3 million).
Net operating revenue reached R$ 3,292 million in 3Q11, representing an increase of 6.2% (R$ 193 million). Excluding the revenue from building the infrastructure of the concession, net operating revenue would have amounted to 2,978 million, an increase of 6.2% (R$ 175 million).
The upturn in operating revenue was mainly caused by the following factors:
· Tariff adjustments of the distribution companies;
· Increase of 3.0% in the sales volume to the captive market;
· Increase of 6.4% (R$ 20 million) in the gross revenue of TUSD from free customers, mainly due to the migration of captive customers to the free market;
· Additional net revenue:
· At the Conventional Generation Segment, in the amount of R$ 100 million, due to: (i) the non-recurring effect related to the re-accounting for the difference in the energy cost of Epasa in 2010 (R$ 29 million); and (ii) the beginning of operations of Foz do Chapecó Hydroelectric Facility, in October 2010, and of Epasa’s 2 thermoelectric facilities, in January 2011 (R$ 71 million);
Page 7 of 42
· At CPFL Renováveis, in the amount of R$ 27 million, due to: (i) new operating assets, resulting from the joint venture with ERSA; (ii) the start-up of Baldin Biomass Thermoelectric Facility, in August 2010, and Bio Formosa Thermoelectric Facility, in September 2011; and (iii) the price adjustments of other assets which were before CPFL Geração.
It is important to remember that part of the sales of these projects is made to Group companies, being eliminated in the consolidation.
The upturn in operating revenue was partially offset by the 12.2% reduction (R$ 8 million) in other revenues and due to, among other factors, the recognition of revenues with carbon credit, in 3Q10 (R$ 3.4 million), and the reduction of revenues with render of services outside CPFL Group.
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$ 1,636 million in 3Q11, representing a decrease of 1.8% (R$ 30 million):
· The cost of electric power purchased for resale in 3Q11 was R$ 1,279 million, representing a decrease of 7.3% (R$ 101 million), due to the following effects:
(i) Decrease in the cost of energy purchased through bilateral contracts (R$ 77.7 million), mainly caused by the reduction of 6.6% (617 GWh) in the volume of purchased energy.
Contributed for this variation the following items:
· Epasa: expenses increment, in 3Q10, of R$ 44 million with the energy acquisition (277 GWh), to honour the commitments taken, while it hasn’t started the operations of Termonordeste and Termoparaíba Thermoelectric Plants;
· Foz do Chapecó Hydroelectric Facility: expenses increment, in 3Q10, of R$ 8 million with the energy acquisition, to honour the commitments taken.
Partially offsetting:
· The non-recurring increase related to the re-accounting for the energy cost of Epasa in 2010 (R$ 12 million).
(ii) Decrease in the cost of energy purchased in the short term (R$ 15.8 million), due to the reduction of 48.4% in the average purchase price, partially offset by the increase of 26.3% (222 GWh) in the volume of purchased energy;
(iii) Decrease in the cost of energy from Itaipu (R$ 8.0 million), maily due to the reduction of 3.5% in the average purchase price (reduction of 7.95% in the 3Q11 average exchange rate, compared to the 3Q10). This decrease was partially offset by the increase of 0.3% (9 GWh) in the volume of purchased energy;
(iv) Decrease in the PROINFA cost (R$ 2.2 million), due to the 38.2% reduction in the average purchase price, partially offset by the increase of 53.9% (83 GWh) in the volume of purchased energy.
The upturn in the cost of electric power purchased for resale was partially offset by the decrease in Pis and Cofins tax credits, generated from the energy purchase (R$ 3 million).
The net reduction of 304 GWh in the volume of purchased energy is due to the increase of purchases within CPFL Group.
· Charges for the use of the transmission and distribution system reached R$ 357 million in 3Q11, a 24.6% increase (R$ 70 million), mainly due to the following factors:
Page 8 of 42
(i) Increase in the basic network charges (R$ 50 million), mainly due to the following factors:
· Increase of 21.5% in CPFL Paulista (R$ 22.6 million);
· Increase of 24.6% in CPFL Piratininga (R$ 12.6 million);
· Increases in Foz do Chapecó Hydroelectric Facility (R$ 6.5 million) and in Epasa (R$ 1.6 million), due to the beginning of operation of the facilities.
(ii) Increase of 52.0% in the system service usage charges - ESS (R$ 18 million);
(iii) Increase of 59.2% in the charges for the use of the distribution system (R$ 4 million);
(iv) Increase of 17.9% in Itaipu charges (R$ 3 million).
Partially offsetting:
(i) Increase in the Pis and Cofins tax credits (R$ 5 million), generated from the charges for the use of the transmission and distribution.
Operating costs and expenses were R$ 874 million in 3Q11, registering an increase of 7.8% (R$ 63 million), due to the following factors:
· Increase of 6.3% (R$ 19 million) in the cost of building the infrastructure of the concession (which does not affect the results because of the related revenue, in the same amount). This item, which reached R$ 314 million in 3Q11, has its counterpart in the “operating revenue”;
· The PMSO item reached R$ 386 million in 3Q11, registering an increase of 4.4% (R$ 16 million), mainly due to the following factors (that need to be excluded for comparison purposes with the 3Q10):
(i) Additional PMSO of CPFL Renováveis, related to new operating assets, resulting from the joint venture with ERSA (R$ 21 million);
(ii) Start-up of Foz do Chapecó Hydroelectric Facility and Epasa - Termonordeste and Termoparaíba Thermoelectric Facilities (R$ 7 million);
(iii) Non-recurring increase on Personnel expenses related to the complement of the Incentivated Retirement Program – PAI, due to the additional adherences (R$ 3 million).
Partially offsetting:
(i) Decrease in legal and judicial expenses and indemnities of CPFL Paulista, due to the non-recurring increase in 3Q10, due to the acknowledgement of the provision for a labor contingency related to the judicial agreement celebrated with the São Paulo Engineers Labor Union (R$ 20 million);
(ii) Non-recurring effect related to the reversal of the provision of expenses with physical inventory of assets (R$ 17 million), in the subsidiaries CPFL Paulista (R$ 10.0 million), CPFL Piratininga (R$ 2.1 million), CPFL Santa Cruz (R$ 2.0 million), CPFL Sul Paulista (R$ 1.1 million), CPFL Leste Paulista (R$ 0.8 million), CPFL Mococa (R$ 0.8 million) and CPFL Jaguari (R$ 0.4 million). These expenses have been accrued in accordance with Aneel’s Resolution No. 367/09, but will not be fully realized in 2011, should occur in 2012.
Excluding these effects, PMSO for 3Q11 would have totaled R$ 372 million and PMSO for 3Q10 would have been R$ 348 million, an increase of 6.8% (R$ 24 million), compared to the IGP-M index of 7.5% (for the last 12 months).
Page 9 of 42
The principal factors explaining the variation in PMSO, following the exclusion of the effects already mentioned were:
(i) Personnel expenses, which reported an increase of 6.1% (R$ 9 million), mainly due to the Collective Bargaining Agreement for 2011 (R$ 7 million) and business expansion of CPFL Atende and CPFL Serviços (R$ 1 million);
(ii) Expenses with material, which registered an increase of 29.6% (R$ 6 million), mainly due to the increases in the subsidiaries:
ü CPFL Paulista (R$ 4.7 million), due to the increase in expenses with the maintenance of lines and networks (R$ 2.9 million) and other acquisitions of materials (R$ 2.0 million);
ü RGE (R$ 1.6 million), mainly due to the increase in expenses with the maintenance of lines and networks (R$ 0.7 million), with safety tools and equipment (R$ 0.6 million) and the prices adjustments;
ü CPFL Piratininga (R$ 0.8 million), due to the increase in expenses with the maintenance of lines and networks (R$ 0.3 million) and other acquisitions of materials (R$ 0.2 million);
(iii) Outsourced services expenses, which registered an increase of 3.9% (R$ 4 million) mainly due to the increases in the subsidiaries:
ü CPFL Paulista (R$ 7 million), due to the increase in expenses with global enterprise services (R$ 2 million), consulting (R$ 2 million), hardware/software maintenance (R$ 2 million), and reading, delivery and collection of energy bill (R$ 1 million). From outsourced services expenses of CPFL Paulista, R$ 6 million were provided by Group companies and thus eliminated on Consolidation;
ü RGE (R$ 7 million), due to the increase in expenses with hardware/software maintenance (R$ 5 million), and with consulting (R$ 2 million). From outsourced services expenses of RGE, R$ 1 million were eliminated on Consolidation;
ü CPFL Piratininga: increase in expenses with consulting (R$ 1 million), and delivery of energy bill (R$ 1 million);
ü CPFL Brasil (R$ 4 million), due to the operations of CPFL Total. From outsourced services expenses of CPFL Brasil, R$ 1 million were eliminated on Consolidation;
ü CPFL Serviços (R$ 3 million), due to the services rendered in the construction of the biomass facilities and wind farms of CPFL Group;
ü CPFL Geração: increase in expenses with consulting (R$ 2 million).
The increase in outsourced services expenses was partially offset by the higher volume of eliminations occurred on consolidation (R$ 21 million).
(iv) Other operating costs/expenses, which registered an increase of 6.2% (R$ 4 million), mainly due to the reduction, in 3Q10, of expenses of the provision for doubtful debts of RGE, caused by the recovery of uncollectible accounts receivable (R$ 5 million).
· Depreciation and Amortization, which represented a net increase of 17.0% (R$ 29 million), mainly due to the following factors:
(i) Additional expense at CPFL Geração, due to the start-up of Foz do Chapecó Hydroelectric Facility (R$ 17 million) and Epasa - Termonordeste and Termoparaíba Thermoelectric Facilities (R$ 4 million);
(ii) Additional of CPFL Renováveis (R$ 8 million).
Page 10 of 42
The regulatory assets and liabilities, which are no longer registered, in accordance with the pronouncements issued by the Accounting Pronouncements Committee (CPC) and the international practices (IFRS), represented a cost reversal of R$ 70 million in 3Q10 and R$ 71 million in 3Q11 (impact in EBITDA). The amounts related to the deferral of the regulatory assets and liabilities will be passed through the tariffs in the next tariff readjustment, through the financial components. The amounts related to the amortization are reflected in the tariffs of each period.
Based on the above factors, 3Q11 EBITDA (IFRS) reached R$ 956 million, registering a 24.6% increase (R$ 188 million).
Considering the regulatory assets and liabilities and excluding the non-recurring effects, the EBITDA (IFRS + Regulatory Assets and Liabilitites – Non-recurring effects) would have totaled R$ 857 million in 3Q10 and R$ 996 million in 3Q11, an increase of 16.2% (R$ 139 million).
The 3Q11 net financial expense was R$ 205 million, a 180.7% increase (R$ 132 million) compared with the net financial expense of R$ 73 million reported in 3Q10.
The items explaining these changes are as follows:
· Financial Expenses: increase of 109.6% (R$ 222 million), from R$ 203 million in 3Q10 to R$ 425 million in 3Q11, mainly due to the following factors:
(i) Upturn in debt charges and in monetary restatements and currency variations (R$ 146 million), due to: (i) the increase in the debt balance; (ii) the increase in the CDI Interbank rate, from 2.6% in 3Q10 to 3.0% in 3Q11 (R$ 35 million); and (iii) the currency effect in the purchase of energy from Itaipu (difference between the invoice and the payment day + adjustment until the end of the month for the open invoices) (R$ 32 million);
(ii) Additional financial expense (R$ 42 million) related to the start-up of Foz do Chapecó Hydroelectric Facility (R$ 28.5 million) and Epasa - Termonordeste and Termoparaíba Thermoelectric Facilities (R$ 13.3 million);
(iii) Additional financial expense (R$ 12 million) coming from CPFL Renováveis.
· Financial Revenues: increase of 69.6% (R$ 90 million), from R$ 130 million in 3Q10 to R$ 220 million in 3Q11, mainly due to the income from financial investments (R$ 95 million), as a result of the increase in the investment balance and the increase in the CDI Interbank rate.
Net income (IFRS) in 3Q11 was R$ 379 million, an increase of 8.1% (R$ 28 million).
Excluding the amount related to the non-controlling shareholders, the net income (IFRS) in 3Q11 would have totaled R$ 369 million, an increase of 7.1% (R$ 25 million), compared to the net income of R$ 344 million in 3Q10.
Page 11 of 42
Considering the regulatory assets and liabilities, including the effects on the financial result, (net of taxes) and excluding the non-recurring effects, the net income (IFRS + Regulatory Assets and Liabilities – Non-recurring effects) would have totaled R$ 401 million in 3Q10 and in 3Q11, an not showing variation.
CPFL Energia’s financial debt (including hedge) increased by 51.0% to R$ 13,129 million in 3Q11. The main contributing factors to the variation in the balance of financial debt were:
· CPFL Brasil, CPFL Geração, CPFL Renováveis and Conventional Generation Projects: funding (BNDES and other financial institutions), net of amortizations, totaling R$ 1,669 million, with the following highlights:
+ Debentures issuances by CPFL Brasil (2nd Issue of R$ 1,320 million), CPFL Geração (4th Issue of R$ 680 million), EPASA (2nd Issue of R$ 204 milhões and 3rd Issue of R$ 66 million) and ENERCAN (R$ 53 million), for debt rollover, investments funding and acquisition of Jantus’ equity;
+ Funding of BNDES financing for CPFL Renováveis (R$ 316 million);
+ Funding of financing, through Law No. 4131/62, for CPFL Geração (R$ 100 million);
+ Funding of working capital by Foz do Chapecó (R$ 25 million);
+ Funding of BNB financing for Epasa (R$ 6 milhões);
- Amortizations of the principal of Epasa (1st Issue of R$ 146 million and 2nd Issue of R$ 66 million), CPFL Geração (2nd Issue of R$ 425 million), CPFL Brasil (1st Issue of R$ 165 million) and BAESA’s debentures (R$ 6 million);
- Amortization of working capital by CPFL Geração (R$ 100 million);
- Amortization of Inter-American Development Bank - IDB’s loan for ENERCAN (R$ 51 million);
- Amortizations of BNDES financing for CERAN (R$ 54 million), ENERCAN (R$ 35 million), CPFL Geração (R$ 26 million), BAESA (R$ 19 million) and CPFL Renováveis (R$ 8 million).
· CPFL Energia and Group’s Distributors: funding (BNDES and other financial institutions), net of amortizations, totaling R$ 1,902 million, with the following highlights:
Page 12 of 42
+ Funding of financing, through Law No. 4131/62, for CPFL Paulista (R$ 952 million), CPFL Piratininga (R$ 336 million), CPFL Leste Paulista (R$ 8 million), CPFL Sul Paulista (R$ 8 million), CPFL Jaguari (R$ 7 million) and CPFL Mococa (R$ 7 million);
+ Debentures issuances by CPFL Paulista (5th Issue of R$ 484 million), CPFL Piratininga (4th Issue of R$ 280 million and 5th Issue of R$ 160 million), RGE (5th Issue of R$ 70 million) and CPFL Santa Cruz (1st Issue of R$ 65 million), for debt rollover and investments funding;
+ Funding of financing by CPFL Paulista (R$ 150 million), RGE (R$ 56 million), CPFL Piratininga (R$ 19 million), CPFL Leste Paulista (R$ 18 million), CPFL Sul Paulista (R$ 9 million), CPFL Santa Cruz (R$ 7 million), CPFL Jaguari (R$ 6 million) and CPFL Mococa (R$ 3 million);
+ Funding, net of amortizations, of BNDES financing for Group’s Distributors, totaling R$ 158 million;
- Amortizations of the principal of CPFL Piratininga (1st Issue of R$ 200 million and 4th Issue of R$ 280 million), RGE (2nd Issue of R$ 29 million and 4th Issue of R$ 185 million), CPFL Paulista (4th Issue of R$ 110 million), CPFL Leste Paulista (1st Issue of R$ 24 million), CPFL Sul Paulista (1st Issue of R$ 16 million) and CPFL Jaguari’s debentures (1st Issue of R$ 10 million).
· Indebtedness from the incorporation of CPFL Renováveis (source ERSA), in the amount of R$ 517 million.
Financial Debt - 3Q11 (R$ Thousands) | |||||||||||
|
Charges |
|
|
Principal |
|
|
Total | ||||
|
Short Term |
Long Term |
|
|
Short Term |
Long Term |
|
|
Short Term |
Long Term |
Total |
|
|
||||||||||
Local Currency |
|
|
|||||||||
BNDES - Repowering |
35 |
- |
|
3,690 |
5,725 |
|
3,725 |
5,725 |
9,450 | ||
BNDES - Investment |
15,172 |
- |
|
465,111 |
3,325,693 |
|
480,283 |
3,325,693 |
3,805,976 | ||
BNDES - Others |
29 |
- |
|
2,077 |
4,633 |
|
2,106 |
4,633 |
6,740 | ||
BNDES - Working Capital |
765 |
- |
|
111,129 |
64,710 |
|
111,894 |
64,710 |
176,603 | ||
Financial Institutions |
106,789 |
16,118 |
|
244,971 |
1,465,861 |
|
351,760 |
1,481,979 |
1,833,739 | ||
Others |
793 |
- |
|
25,066 |
51,926 |
|
25,859 |
51,926 |
77,785 | ||
Subtotal |
123,583 |
16,118 |
|
852,044 |
4,918,548 |
|
975,627 |
4,934,666 |
5,910,293 | ||
|
|
|
|||||||||
Foreign Currency |
|
|
|||||||||
Financial Institutions |
24,272 |
- |
|
504,363 |
1,684,949 |
|
528,635 |
1,684,949 |
2,213,584 | ||
Subtotal |
24,272 |
- |
|
504,363 |
1,684,949 |
|
528,635 |
1,684,949 |
2,213,584 | ||
|
|
|
|||||||||
Debentures |
|
|
|||||||||
CPFL Energia |
3,768 |
- |
|
150,000 |
300,000 |
|
153,768 |
300,000 |
453,768 | ||
CPFL Paulista |
47,653 |
- |
|
213,333 |
908,925 |
|
260,986 |
908,925 |
1,169,911 | ||
CPFL Piratininga |
23,337 |
- |
|
- |
418,421 |
|
23,337 |
418,421 |
441,759 | ||
RGE |
18,596 |
- |
|
126,667 |
323,002 |
|
145,263 |
323,002 |
468,265 | ||
CPFL Santa Cruz |
2,677 |
- |
|
- |
64,682 |
|
2,677 |
64,682 |
67,359 | ||
CPFL Brasil |
58,502 |
- |
|
- |
1,315,397 |
|
58,502 |
1,315,397 |
1,373,899 | ||
CPFL Geração |
46,690 |
- |
|
- |
940,470 |
|
46,690 |
940,470 |
987,160 | ||
EPASA |
15,848 |
- |
|
104,417 |
98,784 |
|
120,265 |
98,784 |
219,049 | ||
BAESA |
648 |
- |
|
5,734 |
22,937 |
|
6,382 |
22,937 |
29,319 | ||
ENERCAN |
309 |
- |
|
2,708 |
48,822 |
|
3,017 |
48,822 |
51,839 | ||
Subtotal |
218,028 |
- |
|
602,859 |
4,441,440 |
|
820,887 |
4,441,440 |
5,262,327 | ||
|
|
||||||||||
Financial Debt |
365,883 |
16,118 |
|
|
1,959,266 |
11,044,937 |
|
|
2,325,148 |
11,061,056 |
13,386,204 |
|
|
||||||||||
Hedge |
- |
- |
|
- |
- |
|
(256,791) |
(181) |
(256,972) | ||
|
|
||||||||||
Financial Debt Including Hedge |
- |
- |
|
|
- |
- |
|
|
2,068,357 |
11,060,875 |
13,129,232 |
Percentage on total (%) |
- |
- |
|
|
- |
- |
|
|
15.8% |
84.2% |
100% |
With regard to financial debt, it is worth noting that R$ 11,061 million (84.2% of the total) are considered long term, and R$ 2,068 million (15.8% of the total) are considered short term.
Page 13 of 42
Total debt, comprising financial debt, hedge (asset/liability) and debt with the private pension fund, amounted to R$ 13,616 million in 3Q11, growth of 45.9%. The nominal average cost of debt rose from 10.0% p.a. in 3Q10 to 11.5% p.a. in 3Q11, due to the upturn in the CDI interbank rate (from 9.2% to 11.5%). The real average cost of debt fell from 5.0% p.a. in 3Q10 to 3.9% p.a. in 3Q11, due to the upturn in the IPCA (from 4.7% to 7.3%). (accrued rates in the last 12 months)
Debt Profile – 3Q11
As a result of the funding operations and amortizations, there was an increase in the CDI-pegged portion (from 58.6%, in 3Q10, to 67.7%, in 3Q11) and prefixed (from 2.3%, in 3Q10, to 3.3%, in 3Q11), and a decrease in the portion tied to the TJLP-indexed portion (from 30.6%, in 3Q10, to 24.9%, in 3Q11) and the IGP-M/IGP-DI (from 7.5%, in 3Q10, to 3.7%, in 3Q11).
The foreign-currency and TJLP debt would have come to 16.6% and 25.9% of the total, respectively, if banking hedge operations had been excluded. However, as we consider contracted swap operations, which convert the indexation of debt in foreign-currency and TJLP to the CDI, the effective foreign-currency and TJLP debt is 0.3% (all of this possesses a natural hedge) and 24.9%, respectively.
Page 14 of 42
R$ Thousands |
3Q11 |
3Q10 |
Var. |
Total Debt |
(13,616,393) |
(9,332,878) |
45.9% |
(+) Available Funds |
4,274,619 |
1,140,304 |
274.9% |
(+) Judicial Deposit (1) |
581,760 |
474,456 |
22.6% |
(=) Adjusted Net Debt |
(8,760,014) |
(7,718,118) |
13.5% |
Note: (1) Related to the income tax of CPFL Paulista.
In 3Q11, adjusted net debt totaled R$ 8,760 million, an upturn of 13.5% (R$ 1,042 million).
The Company closed 3Q11 with a Net Debt / EBITDA ratio of 2.43x. Adjusting the EBITDA and excluding the balance of the debt of CPFL Renováveis, related to Bio Formosa and Bio Buriti Thermoelectric Facilities, which recently started operations, and Bio Ipê and Bio Pedra Thermoelectric Facilities, and Santa Clara Wind Farm, which are under construction, and have not started generating EBITDA to the group, the Net Debt / EBITDA would have been 2.29x.
In 3Q11, R$ 465 million were invested in business maintenance and expansion, of which R$ 305 million in distribution, R$ 153 million in generation and R$ 7 million in commercialization and value added services (SVA). As result, CPFL Energia’s investments totaled R$ 1,202 million in 9M11, of which R$ 741 million in distribution, R$ 449 million in generation (R$ 339 million of CPFL Renováveis) and R$ 12 million in commercialization and value added services (SVA).
Listed below are some of the main investments made by CPFL Energia in each segment:
(i) Distribution: strengthening and expanding the electricity system to keep pace with market growth, both in terms of energy sales and numbers of customers. Other allocations included electricity system maintenance and improvements, operational infrastructure, the upgrading of management and operational support systems, customer help services and research and development programs, among others;
(ii) Generation: chiefly focused on Bio Formosa and Bio Buriti Thermoelectric Facilities, enterprises that have already entered into commercial operation, and Bio Ipê, Bio Pedra, Alvorada and Coopcana Thermoelectric Facilities, Salto Góes Small Hydro Power Plant and Santa Clara, Macacos I and Campo dos Ventos II Wind Farms, ongoing construction projects.
Page 15 of 42
Consolidated Cash Flow (R$ Thousands) | ||||
3Q11 |
Last 12M | |||
Beginning Balance |
4,402,948 |
1,140,304 | ||
Net Income Including Social Contribution and Income Tax |
577,268 |
2,271,980 | ||
Depreciation and Amortization |
196,049 |
777,693 | ||
Interest on Debts and Monetary and Foreign Exchange Restatements |
402,110 |
1,034,289 | ||
Income Tax and Social Contribution Paid |
(223,109) |
(724,410) | ||
Interest on Debts Paid |
(185,906) |
(728,567) | ||
Others |
63,446 |
(290,079) | ||
252,590 |
68,926 | |||
Total Operating Activities |
829,858 |
2,340,906 | ||
Investment Activities |
||||
Acquisition of Property, Plant and Equipment, and Intangibles |
(464,852) |
(1,778,810) | ||
Others |
270,096 |
285,710 | ||
Total Investment Activities |
(194,756) |
(1,493,100) | ||
Financing Activities |
||||
Loans and Debentures |
1,420,990 |
5,816,182 | ||
Principal Amortization of Loans and Debentures |
(1,434,346) |
(2,287,010) | ||
Dividends Paid |
(750,075) |
(1,240,371) | ||
Others |
- |
(2,292) | ||
Total Financing Activities |
(763,431) |
2,286,509 | ||
Cash Flow Generation |
(128,329) |
3,134,315 | ||
Ending Balance - 09/30/2011 |
|
4,274,619 |
|
4,274,619 |
The cash flow balance closed the 3Q11 at R$ 4,275 million, 2.9% (R$ 128 million) down on the opening figure. We highlight the following factors that contributed to this variation in the cash balance:
· Cash increase:
(i) Cash from operating activities in the amount of R$ 830 million.
· Cash decrease:
(i) Investments (sum of “Acquisition of Property, Plant and Equipment” and “Intangibles” accounts), in the amount of R$ 465 million (detailed in item 5, “Investments”);
(ii) Principal amortizations of loans and debentures, which exceeded funding by R$ 13 million;
(iii) Dividend payments related to 1H11, in the amount of R$ 750 million.
Page 16 of 42
On September 30, 2011, intermediary dividends related to 1H11 were paid to holders of common shares traded on the São Paulo Stock Exchange (BM&FBovespa S.A. Bolsa de Valores, Mercadorias e Futuros - BM&FBOVESPA). The total declared amount was R$ 748 million, equivalent to R$ 0.777023176 per share and corresponding to 100% of controlling shareholders' net income for the period.
On October 12, 2011, intermediary dividends related to 1H11 were paid to holders of ADRs, traded on the New York Stock Exchange (NYSE). The paid amount was equivalent to US$ 0.8237 per ADR.
CPFL Energia's Dividend Yield | |||||
|
1H09 |
2H09 |
1H10 |
2H10 |
1H11 |
Dividend Yield - last 12 months (1) |
7.6% |
7.9% |
8.6% |
6.9% |
6.0% |
|
|
|
|
|
|
Note: (1) Based on the average of the closing quotations in each half year period.
The 1H11 dividend yield, calculated on the average of the closing quotations in the period (R$ 22.05 per share) is 3.5% (6.0% in the last 12 months).
The declared amounts are in line with the Company’s dividend policy, which states that shareholders will receive at least 50% of adjusted half-yearly net income as dividends and/or interest on equity (IOE).
Page 17 of 42
CPFL Energia, which has a current free float of 30.7%, is listed on both the BM&FBOVESPA (Novo Mercado) and the NYSE (ADR Level III), segments with the highest levels of corporate governace.
The shares closed the half year priced at R$ 20.63 per share and US$ 22.15 per ADR, respectively (closing price in 09/30/2011).
In 9M11, the shares appreciated 6.2% on the BM&FBOVESPA and depreciated 1.2% on the NYSE, outperforming major market indexes.
In the last 12 months, the shares appreciated 13.1% on the BM&FBOVESPA and 7.8% on the NYSE, also outperforming major market indexes.
Page 18 of 42
The daily trading volume in 9M11 averaged R$ 33.7 million, of which R$ 13.6 million on the BM&FBOVESPA and R$ 20.1 million on the NYSE, 1.1% up on 2010. The number of trades on the BM&FBOVESPA increased by 27.0%, rising from a daily average of 1,406, in 2010, to 1,786, in 9M11.
CPFL Energia’s rating was maintained the same, by Standard and Poor’s and Fitch Ratings, after the acquisition of Jantus and the joint venture with ERSA.
The following table shows the evolution of CPFL Energia’s corporate ratings:
Page 19 of 42
CPFL Energia’s corporate governance model is based on four principles – transparency, equity, accountability and corporate responsibility – and is adopted by all the companies in the CPFL group.
CPFL Energia is listed on the Novo Mercado of the BM&FBOVESPA and its Level III ADRs are traded on the NYSE, being submitted to arbitration at the BM&FBOVESPA’s Market Arbitration Chamber. The company's capital stock is composed of common shares only, and ensures tag-along rights equivalent to 100% of the amount paid to the controlling shareholders in the case of disposal of control.
The Company’s Board of Directors has as its objetive to define the overall business guidelines and elect the Board of Executive Officers, among other responsibilities determined by the law and the Bylaws. Its working rules are defined in the Internal Rules. The Board is composed of one independent member and six members designated by the controlling shareholders, with a one-year term of office, reelection being admitted. It normally meets once a month but may be convened whenever necessary, electing, among its members, the Chairman and the Vice-Chairman. No member may serve on the Company’s Board of Executive Officers.
The Board of Directors constituted three committees and defined its competence in a sole Internal Rules: the Human Resources Committee, Related Parties Committee and Management Processes Committee. Whenever necessary, ad hoc commissions are installed to advise the Board on such specific issues as: corporate governance, strategies, budgets, energy purchases, new operations and financial policies.
CPFL Energia maintains a permanent Fiscal Council comprising five members who also carry out the attributes of the Audit Committee, in accordance with the rules of the Securities and Exchange Commission (SEC). The Fiscal Council’s working rules are defined in the Internal Rules and in the Fiscal Council Guide.
The Board of Executive Officers comprises seven officers, with a two-year term of office, being admitted the reelection. It represents the Company and manages its business in accordance with the policy defined by the Board of Directors. The Chief Executive Officer is responsible for nominating the other statutory officers.
Page 20 of 42
CPFL Energia is a holding company, whose results depend directly on those of its subsidiaries.
Notes: ........... Controlling shareholders;
(1) Includes the 0.1% stake of the company Camargo Corrêa S.A.;
(2) Termoparaíba and Termonordeste Thermoelectric Facilities;
(*) Pro-forma - CPFL Energia owns a 54.5% interest in CPFL Renovaveis through CPFL Geração, with 43.6482% and CPFL Brasil with 10.8518% (without the SIIF projects).
Page 21 of 42
Consolidated Income Statement - Distribution (R$ Thousands) | ||||||
|
3Q11 |
3Q10 |
Var. |
9M11 |
9M10 |
Var. |
Gross Operating Revenues |
4,369,268 |
4,029,752 |
8.4% |
12,521,290 |
11,736,179 |
6.7% |
Net Operating Revenues |
2,855,460 |
2,671,168 |
6.9% |
8,135,028 |
7,719,665 |
5.4% |
Cost of Electric Power |
(1,654,965) |
(1,574,504) |
5.1% |
(4,622,757) |
(4,444,822) |
4.0% |
Operating Costs & Expenses |
(681,682) |
(670,522) |
1.7% |
(1,966,940) |
(1,740,791) |
13.0% |
EBIT |
518,812 |
426,141 |
21.7% |
1,545,331 |
1,534,051 |
0.7% |
EBITDA (IFRS)(1) |
583,708 |
490,427 |
19.0% |
1,748,941 |
1,723,668 |
1.5% |
EBITDA (IFRS+ Regulatory Assets & Liabilities - Non-Recurring)(2) |
652,658 |
580,006 |
12.5% |
NA |
NA |
NA |
Financial Income (Expense) |
(92,369) |
(13,171) |
601.3% |
(166,963) |
(42,524) |
292.6% |
Income Before Taxes |
426,443 |
412,970 |
3.3% |
1,378,369 |
1,491,527 |
-7.6% |
NET INCOME (IFRS) |
284,463 |
274,739 |
3.5% |
935,294 |
1,009,819 |
-7.4% |
NET INCOME (IFRS+ Regulatory Assets & Liabilities - Non-Recurring)(3) |
325,520 |
324,576 |
0.3% |
NA |
NA |
NA |
Notes:
(1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result, depreciation/amortization and pension fund contributions;
(2) EBITDA (IFRS + Regulatory Assets & Liabilitites – Non-recurring) considers, besides the items mentioned above, the regulatory assets and liabilities, and excludes the non-recurring effects;
(3) Net Income (IFRS + Regulatory Assets & Liabilitites – Non-recurring) considers the regulatory assets and liabilities and excludes the non-recurring effects;
(4) The distributors’ financial performance tables are attached to this report in item 12.6.
NA = Not applicable.
Operating Revenue
Gross operating revenue in 3Q11 reached R$ 4,369 million, representing an increase of 8.4% (R$ 340 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), gross operating revenue would have amounted to 4,055 million, an increase of 8.6% (R$ 321 million).
Deductions from the operating revenue were R$ 1,514 million, representing an increase of 11.4% (R$ 155 million), mainly due to the following factors: (i) increase in taxes on revenue (R$ 105 million); (ii) increase in CCC and CDE sector charges (R$ 41 million); (iii) increase in the amounts related to Proinfa (R$ 37 million); and (iv) increase in RGR (R$ 4 million). The increase in the deductions from the operating revenue was partially offset by the reduction of the amounts related to the R&D and energetic efficiency program (R$ 32 million).
Net operating revenue reached R$ 2,855 million in 3Q11, representing an increase of 6.9% (R$ 184 million). Excluding the revenue from building the infrastructure of the concession, net operating revenue would have amounted to 2,541 million, an increase of 7.0% (R$ 166 million).
The upturn in operating revenue was mainly caused by the following factors:
· Tariff adjustments of the distribution companies;
· Increase of 3.0% in the sales volume to the captive market;
· Increase of 7.2% (R$ 22 million) in the gross revenue of TUSD from free customers, mainly due to the migration of captive customers to the free market;
· Increase of 25.3% (R$ 8 million) in other revenues.
Cost of Electric Power
Page 22 of 42
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$ 1,655 million in 3Q11, representing an increase of 5.1% (R$ 80 million):
· The cost of electric power purchased for resale in 3Q11 was R$ 1,318 million, representing an increase of 1.4% (R$ 18 million), due to the following effects:
(i) Increase in the cost of energy purchased through bilateral contracts (R$ 45.2 million), caused by the increase of 14.5% (1.022 GWh) in the volume of purchased energy, partially offset by the reduction of 9.0% in the average purchase price. This reduction was partially offset by the non-recurring increase related to the re-accounting for the energy cost of Epasa in 2010 (R$ 12 million).
Partially offsetting:
(i) Decrease in the cost of energy purchased in the short term (R$ 16.1 million), due to the reduction of 52.0% in the average purchase price, partially offset by the rise of 30.7% (210 GWh) in the volume of purchased energy;
(ii) Decrease in the cost of energy from Itaipu (R$ 8.0 million), mainly due to the reduction of 3.5% in the average purchase price (reduction of 7.95% in the 3Q11 average exchange rate, compared to the 3Q10). This decrease was partially offset by the increase of 0.3% (9 GWh) in the volume of purchased energy;
(iii) Decrease in the PROINFA cost (R$ 2.2 million), due to the 38.2% reduction in the average purchase price, partially offset by the increase of 54.1% (83 GWh) in the volume of purchased energy;
(iv) Increase in Pis and Cofins tax credits, generated from the energy purchase (R$ 1.1 million).
· Charges for the use of the transmission and distribution system reached R$ 337 million in 3Q11, an increase of 22.8% (R$ 63 million), mainly due to the following factors:
(i) Increase in the basic network charges (R$ 42 million), mainly due to the increases in CPFL Paulista (R$ 22.6 million) and CPFL Piratininga (R$ 12.6 million);
(ii) Increase in the system service usage charges - ESS (R$ 18 million);
(iii) Increase in the charges for the use of the distribution system (R$ 4 million);
(iv) Increase in Itaipu charges (R$ 4 million).
Partially offsetting:
(i) Increase in the Pis and Cofins tax credits (R$ 5 million), generated from the charges for the use of the transmission and distribution.
Operating Costs and Expenses
Operating costs and expenses were R$ 682 million in 3Q11, registering an increase of 1.7% (R$ 11 million), due to the following factors:
· Increase of 6.3% (R$ 19 million) in the cost of building the infrastructure of the concession (which does not affect the results because of the related revenue, in the same amount). This item, which reached R$ 314 million in 3Q11, has its counterpart in the “operating revenue”;
· The PMSO item reached R$ 303 million in 3Q11, registering a decrease of 2.6% (R$ 8 million), mainly due to the following factors (that need to be excluded for comparison purposes with 3Q10):
(i) Decrease in legal and judicial expenses and indemnities of CPFL Paulista, due to the non-recurring increase in 3Q10, due to the acknowledgement of the provision for a labor contingency related to the judicial agreement celebrated with the São Paulo Engineers Labor Union (R$ 20 million);
Page 23 of 42
(ii) Non-recurring effect related to the reversal of the provision of expenses with physical inventory of assets (R$ 17 million), in the subsidiaries CPFL Paulista (R$ 10.0 million), CPFL Piratininga (R$ 2.1 million), CPFL Santa Cruz (R$ 2.0 million), CPFL Sul Paulista (R$ 1.1 million), CPFL Leste Paulista (R$ 0.8 million), CPFL Mococa (R$ 0.8 million) and CPFL Jaguari (R$ 0.4 million). These expenses have been accrued in accordance with Aneel’s Resolution No. 367/09, but will not be fully realized in 2011, should occur in 2012.
Partially offsetting:
(i) Non-recurring increase on Personnel expenses related to the complement of the Incentivated Retirement Program – PAI, due to the additional adherences (R$ 3 million).
Excluding these effects, PMSO for 3Q11 would have totaled R$ 317 million and PMSO for 3Q10 would have been R$ 290 million, an increase of 9.5% (R$ 28 million).
The principal factors explaining the variation in PMSO, after excluding the effects already mentioned were:
(i) Expenses with material, which registered an increase of 46.6% (R$ 8 million), mainly due to the increases:
ü CPFL Paulista (R$ 4.7 million), due to the increase in expenses with the maintenance of lines and networks (R$ 2.9 million) and other acquisitions of materials (R$ 2.0 million);
ü RGE (R$ 1.6 million), mainly due to the increase in expenses with the maintenance of lines and networks (R$ 0.7 million), with safety tools and equipment (R$ 0.6 million) and the prices adjustments;
ü CPFL Piratininga (R$ 0.8 million), due to the increase in expenses with the maintenance of lines and networks (R$ 0.3 million) and other acquisitions of materials (R$ 0.2 million);
(ii) Outsourced services expenses, which registered an increase of 17.3% (R$ 16 million) mainly due to the following factors:
ü CPFL Paulista (R$ 7 million), due to the increase in expenses with global enterprise services (R$ 2 million), consulting (R$ 2 million), hardware/software maintenance (R$ 2 million), and reading, delivery and collection of energy bill (R$ 1 million). From outsourced services expenses of CPFL Paulista, R$ 6 million were provided by Group companies and thus eliminated on Consolidation;
ü RGE (R$ 7 million), due to the increase in expenses with hardware/software maintenance (R$ 5 million), and with consulting (R$ 2 million). From outsourced services expenses of RGE, R$ 1 million were eliminated on Consolidation;
ü CPFL Piratininga: increase in expenses with consulting (R$ 1 million), and delivery of energy bill (R$ 1 million);
(iii) Other operating costs/expenses, which registered an increase of 8.6% (R$ 4 million), due to the reduction, in 3Q10, of expenses of the provision for doubtful debts of RGE, caused by the recovery of uncollectible accounts receivable (R$ 5 million).
· Depreciation and Amortization, which represented a net increase of 1.0% (R$ 1 million).
Page 24 of 42
Regulatory Assets and Liabilities
The regulatory assets and liabilities, which are no longer registered, in accordance with the pronouncements issued by the Accounting Pronouncements Committee (CPC) and the international practices (IFRS), represented a cost reversal of R$ 70 million in 3Q10 and R$ 71 million in 3Q11 (impact in EBITDA). The amounts related to the deferral of the regulatory assets and liabilities will be passed through the tariffs in the next tariff readjustment, through the financial components. The amounts related to the amortization are reflected in the tariffs of each period.
EBITDA
Based on the mentioned factors, 3Q11 EBITDA (IFRS) reached R$ 584 million, registering an increase of 19.0% (R$ 93 million).
Considering the regulatory assets and liabilities and excluding the non-recurring effects, the EBITDA (IFRS + Regulatory Assets and Liabilitites – Non-recurring effects) would have totaled R$ 580 million in 3Q10 and R$ 653 million in 3Q11, an increase of 12.5% (R$ 73 million).
Financial Result
The 3Q11 net financial expense was R$ 92 million, a 601.3% increase (R$ 79 million) compared with the net financial expense of R$ 13 million reported in 3Q10.
The items explaining these changes are as follows:
· Financial Expenses: increase of 117.6% (R$ 117 million), from R$ 99 million in 3Q10 to R$ 216 million in 3Q11. This variation is mainly due to the upturn in debt charges and in monetary restatements and currency variations (R$ 105 million), as a result of: (i) the increase in the debt balance; (ii) the increase in the CDI Interbank rate, from 2.6% in 3Q10 to 3.0% in 3Q11 (R$ 18 million); and (iii) the currency effect in the purchase of energy from Itaipu (difference between the invoice and the payment day + adjustment until the end of the month for the open invoices) (R$ 32 million);
· Financial Revenues: increase of 43.8% (R$ 38 million), from R$ 86 million in 3Q10 to R$ 124 million in 3Q11, mainly due to the income from financial investments (R$ 30 million), as a result of the increase in the investment balance and the increase in the CDI Interbank rate.
Net Income
Net income (IFRS) in 3Q11 was R$ 284 million, an increase of 3.5% (R$ 10 million).
Considering the regulatory assets and liabilities, including the effects on the financial result (net of taxes) and excluding the non-recurring effects, the net income (IFRS + Regulatory Assets and Liabilities – Non-recurring effects) would have totaled R$ 325 million in 3Q10 and R$ 326 million in 3Q11, an increase of 0.3% (R$ 1 million).
Page 25 of 42
Tariff Revisions | ||
Distribution Company |
Period |
Date of Next Tariff Revision |
CPFL Piratininga |
Each 4 years |
October 2011 |
CPFL Santa Cruz |
Each 4 years |
February 2012 |
CPFL Jaguariúna |
|
|
CPFL Leste Paulista |
Each 4 years |
February 2012 |
CPFL Jaguari |
Each 4 years |
February 2012 |
CPFL Sul Paulista |
Each 4 years |
February 2012 |
CPFL Mococa |
Each 4 years |
February 2012 |
CPFL Paulista |
Each 5 years |
April 2013 |
RGE |
Each 5 years |
April 2013 |
Note: (1) Date postponed by Aneel, through the Ratifying Resolution 1,223 of October 18, 2011.
11.1.2.1) CPFL Piratininga
Aneel Ratifying Resolution No. 1,223 of October 18, 2011 postponed the effective date of CPFL Piratininga tariffs, until the conclusion of the Public Hearing AP 040, for the definition of the methodology used in the third Tariff Revision cycle. Aneel’s Officers Meeting held on November 8 and 9 approved almost all the items that compose the referred methodology. The only pending item, which refers to “other revenues”, will be voted on November 22. Therefore, the application of this methodology shall occur in 2012.
Main changes for the third Tariff Revision cycle:
· Operating costs: There is no more “Aneel’s referente company”, but the costs defined in the prior Tariff Revision cycle (the second one) will be updated reverting to the tariff reasonableness the average productivity gains achieved by the distribution companies. In addition, a comparative evaluation of the distribution companies’ efficiency will be done. If there is a difference between the two results, a trajectory of the operating costs will be defined through the X Factor.
· Weighted Average Cost of Capital (WACC): Decreased from 9.95% to 7.5% (real and net of taxes). The decrese reflects the risk perception to invest in energy distribution in Brazil and the decrease of the fund raising costs by the distribution companies, besides the adjustments in the methodology, such as: the exclusion of the regulatory risk, the country risk stablished by the median and the capture of tax incentive, among others.
· XPd Factor - Productivity Component: The productivity gains will be estimated based on the historical relation between the marked expansion and the growth of the distribution companies costs. (XPd: central point of 1.11%, ex-ante calculation).
· XQ Factor – Quality Component: The methodology was maintained, but the trajectories will be re-defined, considering the best performances achieved by the distribution companies. The best performers will have a higher benefit and a lower penalty. The reverse will be done for the companies that present the worst quality performance, always comparing it with its own historical performance. (For XQ=0, the variation of quality index will be between -5% and +5%).
· XT Factor – Trajectory: Will be attributed if the operating costs defined in the second Tariff Revision cycle (after the update by the productivity gains), are not within the range of the efficient operating costs defined by the benchmarking methodology. (XT limited to +/-2%).
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· Other revenues: This issue is expected to be analysed by Aneel on November 22, 2011.
Unrecoverable revenues: It will be considered the provision for doubtfull by consumer class and on sector charges, according to the limit established by Aneel.
Dates of Tariff Adjustments | |
Distribution Company |
Date |
CPFL Piratininga |
October 23th |
CPFL Santa Cruz |
February 3rd |
CPFL Jaguariúna |
|
CPFL Leste Paulista |
February 3rd |
CPFL Jaguari |
February 3rd |
CPFL Sul Paulista |
February 3rd |
CPFL Mococa |
February 3rd |
CPFL Paulista |
April 8th |
RGE |
June 19th |
11.1.3.1) CPFL Piratininga
Aneel Ratifying Resolution 1,075 of October 19 2010 readjusted electric energy tariffs of CPFL Piratininga by 10.11%, made up of 8.59% with respect to the Tariff Readjustment and 1.52% with respect to external financial components to the Annual Tariff Readjustment, corresponding to an average effect of +5.66% on consumer billings. The new tariffs came into effect on October 23 2010.
11.1.3.2) CPFL Santa Cruz, CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista and CPFL Mococa
On February 3 2011, Aneel published in the Federal Official Gazette, the Annual Tariff Readjustment Indices for 2011 for the CPFL Santa Cruz, CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista and CPFL Mococa distributors, effective from the same date, as shown in the table at the end of item “11.1.3.5”.
11.1.3.3) CPFL Paulista
Aneel Ratifying Resolution 1,130 of April 5 2011 readjusted the electricity energy tariffs at CPFL Paulista by 7.38%, 6.11% relative to the Tariff Readjustment and 1.26% with respect to the financial components external to the Annual Tariff Readjustment, corresponding to an annual impact of 7.23% on the billings of captive consumers. The new tariffs came into effect on April 8 2011 and will remain in force until April 7 2012.
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11.1.3.4) RGE
Aneel Ratifying Resolution 1,153 of June 14 2011 readjusted the electricity energy tariffs at RGE by 17.21%, 8.58% relative to the Tariff Readjustment and 8.63% with respect to the financial components external to the Annual Tariff Readjustment, corresponding to an average impact of 6.74% on the billings of captive consumers. The new tariffs came into effect on June 19 2011 and will remain in force until June 18 2012.
11.1.3.5) Table with Adjustments
The adjustments are presented per distributor in the following table:
Consolidated Income Statement - Commercialization and Services (R$ Thousands) | |||
|
3Q11(2) |
3Q10(3) |
Var. |
Gross Operating Revenues |
542,683 |
568,297 |
-4.5% |
Net Operating Revenues |
480,126 |
507,914 |
-5.5% |
EBITDA (IFRS)(1) |
61,108 |
81,434 |
-25.0% |
NET INCOME (IFRS) |
33,929 |
54,857 |
-38.2% |
Notes:
(1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result, depreciation/amortization and pension fund contributions;
(2) Excludes CPFL Renováveis;
(3) Amounts reported before the joint venture between CPFL Energia and ERSA. Includes, therefore, the assets that, before the referred joint venture, were consolidated within the Commercialization and Services Segment.
Operating Revenue
In 3Q11, gross operating revenue reached R$ 543 million, representing a decrease of 4.5% (R$ 26 million), while net operating revenue moved down by 5.5% (R$ 28 million) to R$ 480 million.
EBITDA
In 3Q11, EBITDA totaled R$ 61 million, a decrease of 25.0% (R$ 20 million).
Net Income
In 3Q11, net income amounted to R$ 34 million, down by 38.2% (R$ 21 million).
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Consolidated Income Statement - Generation (R$ Thousands) | |||
|
3Q11(4) |
3Q10(5) |
Var. |
Gross Operating Revenues |
387,102 |
314,850 |
22.9% |
Net Operating Revenues |
359,873 |
295,516 |
21.8% |
Cost of Electric Power |
(21,245) |
(65,437) |
-67.5% |
Operating Costs & Expenses |
(105,504) |
(72,890) |
44.7% |
EBIT |
233,123 |
157,189 |
48.3% |
EBITDA (IFRS)(1) |
296,132 |
201,085 |
47.3% |
EBITDA (IFRS - Non-Recurring)(2) |
266,696 |
201,085 |
32.6% |
Financial Income (Expense) |
(115,592) |
(59,662) |
93.7% |
Income Before Taxes |
117,531 |
97,528 |
20.5% |
NET INCOME (IFRS) |
82,880 |
60,807 |
36.3% |
NET INCOME (IFRS - Non-Recurring)(3) |
63,452 |
60,807 |
4.3% |
Notes:
(1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result, depreciation/amortization and pension fund contributions;
(2) EBITDA (IFRS - Non-recurring) considers, besides the items mentioned above, the exclusion ofthe non-recurring effects;
(3) Net Income (IFRS - Non-recurring) excludes the non-recurring effects;
(4) Excludes CPFL Renováveis;
(5) Amounts reported before the joint venture between CPFL Energia and ERSA. Includes, therefore, the assets that, before the referred joint venture, were consolidated within the Generation Segment.
Operating Revenue
In 3Q11, gross operating revenue reached R$ 387 million, representing an increase of 22.9% (R$ 72 million), while net operating revenue moved up by 21.8% (R$ 64 million) to R$ 360 million.
This variation is mainly due to the net additional revenue, in the amount of R$ 100 million, as a result of: (i) the non-recurring effect related to the re-accounting for the difference in energy cost of Epasa in 2010 (R$ 29 million); and (ii) the beginning of operations of Foz do Chapecó Hydroelectric Facility, in October 2010, and of Epasa’s 2 thermoelectric facilities, in January 2011 (R$ 71 million).
The upturn in operating revenue was partially offset by the reduction resulting from the corporate restructuring: some companies that, in 3Q10, were consolidated within the generation segment will be consolidated within CPFL Renováveis.
It is important to remember that part of the sales of these projects is made to Group companies.
Cost of Electric Power
In 3Q11, the cost of electric power decreased 67.5% (R$ 44 million) to R$ 21 million, chiefly due to the following factors:
· Epasa: expenses increment, in 3Q10, of R$ 44 million with the energy acquisition (277 GWh), to honour the commitments taken, while it hasn’t started the operations of Termonordeste and Termoparaíba Thermoelectric Plants;
· Foz do Chapecó Hydroelectric Facility: expenses increment, in 3Q10, of R$ 8 million with the energy acquisition, to honour the commitments taken.
This increase of the cost of electric power was partially offset by the rise in the charges for the use of the transmission system related to Foz do Chapecó Hydroelectric Facility (R$ 6 million) and Epasa (R$ 2 million), due to the start-up of the facilities.
Page 29 of 42
Operating Costs and Expenses
In 3Q11, operating costs and expenses moved up by 44.7% (R$ 33 million) to R$ 106 million, chiefly due to the increase of:
· The PMSO item reached R$ 42 million in 3Q11, an increase of 46.6% (R$ 14 million), mainly due to the following factor (that needs to be excluded for comparison purposes with 3Q10): start-up of Foz do Chapecó Hydroelectric Facility and Epasa – Termonordeste and Termoparaíba Thermoelectric Facilities (R$ 8 million).
Excluding this effect, PMSO for 3Q11 would have totaled R$ 35 million and PMSO for 3Q10 would have been R$ 29 million, an increase of 22.1% (R$ 6 million).
The main factors explaining the variation in PMSO, following the exclusion of the effects already mentioned were:
ü Personnel Expenses, which reached R$ 9 million, an increase of 4.7% (R$ 0.4 million) due to, among other factors, the Collective Bargaining Agreement for 2011;
ü Outsourced Services Expenses, which reached R$ 9 million, an increase of 35.5% (R$ 2.4 million) mainly due to the following upturns, in CPFL Geração: (i) consulting expenses (R$ 1.9 million); and (ii) technical employees reinforcing (R$ 0.5 million);
ü Other Operating Costs/Expenses, which reached R$ 16 million, an increase of 28.9% (R$ 3.6 million), mainly due to the increase in the expenses with royalties in the controlled companies Ceran and Enercan (R$ 2.4 million).
· Depreciation and Amortization, which represented a net increase of 44.0% (R$ 19 million), mainly due to the start-up of Foz do Chapecó Hydroelectric Facility (R$ 17 million) and Epasa - Termonordeste and Termoparaíba Thermoelectric Facilities (R$ 4 million).
EBITDA
In 3Q11, EBITDA (IFRS) was R$ 296 million, an increase of 47.3% (R$ 95 million).
Excluding the non-recurring effects, EBITDA (IFRS – Non-recurring effects) would have totaled R$ 201 million in 3Q10 and R$ 267 million in 3Q11, an increase of 32.6% (R$ 66 million).
Financial Result
In 3Q11, net financial expense was R$ 116 million, up by 93.8% (R$ 56 million). The items explaining these changes are as follows:
· Financial Revenues: moved from R$ 17 million in 3Q10 to R$ 19 million in 3Q11 (R$ 2 million increase), mainly due to the income from financial investments, as a result of the increase in the investment balance and the increase in the CDI Interbank rate;
· Financial Expenses: moved from R$ 77 million in 3Q10 to R$ 135 million in 3Q11 (R$ 58 million increase), chiefly due to the following factors:
(i) Upturn in debt charges and in monetary restatements and currency variations, due to: (i) the increase in the debt balance; and (ii) the increase in the CDI Interbank rate, from 2.6% in 3Q10 to 3.0% in 3Q11;
(ii) Additional financial expense (R$ 42 million) related to the start-up of Foz do Chapecó Hydroelectric Facility (R$ 28.5 million) and Epasa - Termonordeste and Termoparaíba Thermoelectric Facilities (R$ 13.3 million).
Page 30 of 42
Net Income
In 3Q11, net income (IFRS) was R$ 83 million, an increase of 36.3% (R$ 22 million).
Excluding the non-recurring effects, net income (IFRS – Non-recurring effects) would have totaled R$ 61 million in 3Q10 and R$ 63 million in 3Q11, an increase of 4.3% (R$ 3 million).
Consolidated Income Statement - CPFL Renováveis (R$ Thousands) | |||
|
3Q11(2) |
3Q10(3) |
Var. |
Gross Operating Revenues |
50,880 |
31,873 |
59.6% |
Net Operating Revenues |
48,432 |
28,018 |
72.9% |
Cost of Electric Power |
(4,134) |
(2,407) |
71.8% |
Operating Costs & Expenses |
(31,024) |
(779) |
3884.0% |
EBIT |
13,274 |
24,832 |
-46.5% |
EBITDA (IFRS)(1) |
21,265 |
14,409 |
47.6% |
Financial Income (Expense) |
3,113 |
NA |
NA |
Income Before Taxes |
16,386 |
NA |
NA |
NET INCOME (IFRS) |
12,574 |
NA |
NA |
Notes:
(1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result, depreciation/amortization and pension fund contributions;
(2) 3Q11 includes only the months of August and September 2011;
(3) Pro-forma Income Statement, elaborated for comparison purposes with 3Q10.
Main impacts of CPFL Renováveis over CPFL Energia’s Economic-Financial Performance in 3Q10:
Operating Revenue
In 3Q11, gross operating revenue reached R$ 51 million, representing an increase of 59.6% (R$ 20 million), while net operating revenue moved up by 72.9% (R$ 20 million) to R$ 48 million. This variation is mainly due to the increase in the amount of R$ 27 million, as a result of:
· The new assets, resulting from de joint venture between CPFL Energia and ERSA;
· The start-up of Baldin Biomass Thermoelectric Facility, in August 2010, and Bio Formosa Thermoelectric Facility, in September 2011;
· The price adjustments of other assets which were before CPFL Geração.
Operating Costs and Expenses
In 3Q11, operating costs and expenses moved up by R$ 30 million to R$ 31 million, chiefly due to the following factors:
· Additional PMSO of CPFL Renováveis, related to new operating assets, resulting from de joint venture with ERSA (R$ 21 million);
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· Additional Depreciation and Amortization related to CPFL Renováveis (R$ 8 million).
EBITDA
In 3Q11, EBITDA (IFRS) was R$ 21 million, an increase of 47.6% (R$ 7 million).
Additional EBITDA of CPFL Renováveis, related to new operating assets, resulting from de joint venture with ERSA, was R$ 5 million.
Financial Result
Additional financial expense coming from CPFL Renováveis was R$ 12 million.
Net Income
In 3Q11, net income (IFRS) was R$ 13 million.
Additional net income of CPFL Renováveis, related to new operating assets, resulting from de joint venture with ERSA, was R$ 13 million.
Bio Formosa Thermoelectric Facility – Operating
Bio Formosa Thermoelectric Facility, located at Rio Grande do Norte State, began its commercial operations on September 2, 2011. R$ 132 million were invested in the project. The installed capacity is of 40 MW and the assured power is of 16 average-MW. Approximately 70% of the assured power (11 average-MW) was sold in the A-5 Auction occurred in 2006 (price: R$ 179.10/MWh – December 2010) and the remaining energy will be sold to the free market. Capital structure (estimated): 81% BNDES (36% à TJLP + 1.9% p.a. and 64% à 5.5% p.a. pre) and 19% equity. Average maturity: 12 years.
Bio Buriti Thermoelectric Facility – Operating
Bio Buriti Thermoelectric Facility, located at Buritizal (São Paulo State), began its commercial operations on October 7, 2011. R$ 148 million were invested in the project. The installed capacity is of 50 MW and the assured power is of 21 average-MW (exported to CPFL Brasil). Capital structure (estimated): 80% BNDES (36% à TJLP + 1.9% p.a. and 64% à 5.5% p.a. pre) and 20% equity. Average maturity: 12 years.
Bio Ipê Thermoelectric Facility
Bio Ipê Thermoelectric Facility, located at Nova Independência (São Paulo State), is under construction (93% of works completed – September 2011). Commercial start-up is scheduled for 4Q11. The estimated investment in the project is of R$ 26 million. The installed capacity is of 25 MW and the assured power is of 8.4 average-MW. Capital structure (estimated): 87% BNDES (74% à TJLP + 1.9% p.a. and 26% à 5.5% p.a. pre) and 13% equity. Average maturity: 14 years.
Bio Pedra Thermoelectric Facility
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Bio Ipê Thermoelectric Facility, located at Serrana (São Paulo State), is under construction (45% of works completed – September 2011). Commercial start-up is scheduled for 2Q12. The estimated investment in the project is of R$ 205 million. The installed capacity is of 70 MW and the assured power is of 24.4 average-MW. The energy was sold in the 3rd Reserve Energy Auction occurred in August 2010 (price: R$ 145.48/MWh). Capital structure (estimated): 80% BNDES (26% à TJLP + 1.9% p.a. and 74% à 5.5% p.a. pre) and 20% equity. Average maturity: 11 years.
Alvorada Thermoelectric Facility
Alvorada Thermoelectric Facility, located at Araporã (Minas Gerais State), is under construction (6% of works completed – September 2011). Commercial start-up is scheduled for 2Q13. The estimated investment in the project is of R$ 154 million. The installed capacity is of 50 MW and the assured power is of 18 average-MW.
Coopcana Thermoelectric Facility
Coopcana Thermoelectric Facility, located at São Carlos do Ivaí (Paraná State), is under construction (4% of works completed – September 2011). Commercial start-up is scheduled for 1Q13. The estimated investment in the project is of R$ 153 million. The installed capacity is of 50 MW and the assured power is of 18 average-MW.
Salto Góes Small Hydro Power Plant
Salto Góes Small Hydro Power Plant, located at Santa Catarina State, is under construction (48% of works completed – September 2011). Commercial start-up is scheduled for 1Q13. The estimated investment in the project is of R$ 136 million. The installed capacity is of 20 MW and the assured power is of 11.1 average-MW. The energy was sold in an Auction (price: R$ 151.43/MWh – January 2011).
Santa Clara I, II, III, IV, V and VI and Eurus VI Wind Farms
Santa Clara I, II, III, IV, V and VI and Eurus VI Wind Farms, located at Rio Grande do Norte State, are under construction (30% of works completed – September 2011). Start-up is scheduled for 3Q12. The estimated investment in the project is of R$ 801 million. The installed capacity is of 188 MW and the assured power is of 76 average-MW. The energy was sold in the Reserve Auction occurred in December 2009 (price: R$ 159.00/MWh – December 2010). Capital structure (estimated): 70% BNDES (TJLP + 1.7% p.a.) and 30% equity. Average maturity: 16 years.
Macacos I Complex Wind Farms (Macacos, Pedra Preta, Costa Branca and Juremas)
Macacos I Complex Wind Farms (Macacos, Pedra Preta, Costa Branca and Juremas), located at Rio Grande do Norte State, are under construction (8% of works completed – September 2011). Start-up is scheduled for 3Q13. The estimated investment in the project is of R$ 374 million. The installed capacity is of 78.2 MW and the assured power is of 37.1 average-MW. The energy was sold in Alternative Sources Auction occurred in August 2010 (price: R$ 136.12/MWh – December 2010).
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Campo dos Ventos II Wind Farm
Campo dos Ventos II Wind Farm, located at Rio Grande do Norte State, is under construction (6% of works completed – September 2011). Start-up is scheduled for 3Q13. The estimated investment in the project is of R$ 127 million. The installed capacity is of 30 MW and the assured power is of 14 average-MW. The energy was sold in the 3rd Reserve Energy Auction occurred in August 2010 (price: R$ 127.22/MWh – December 2010).
Campo dos Ventos Complex Wind Farms (Campo dos Ventos I, III and V, São Domingos and Ventos de São Martinho)
The start-up of Campo dos Ventos Complex Wind Farms (Campo dos Ventos I, III and V, Ventos de São Domingos and Ventos de São Martinho), located at Rio Grande do Norte State, is scheduled for 2Q14. The beginning of construction depends upon the approval of the National Electric Energy Agency – ANEEL. The estimated investment in the project is of R$ 660 million. The installed capacity is of 138 MW and the assured power is of 68.5 average-MW.
São Benedito Complex Wind Farms (Santa Mônica, Santa Úrsula, Ventos de São Benedito and Ventos de São Dimas)
The start-up of São Benedito Complex Wind Farms (Santa Mônica, Santa Úrsula, Ventos de São Benedito e Ventos de São Dimas), located at Rio Grande do Norte State, is scheduled for 2Q14. The beginning of construction depends upon the approval of the National Electric Energy Agency – ANEEL. The estimated investment in the project is of R$ 506 million. The installed capacity is of 116 MW and the assured power is of 60.6 average-MW.
CPFL Renováveis have released, on August 17, 2011, an Announcement to the Market informing that it acquired from PST Energias Renováveis e Participações S.A. 100% of the shares of Santa Luzia Energética S.A., owner of Santa Luzia Small Hydro Power Plant, located in the municipalities of São Domingos and Iguaçu, state of Santa Catarina, with installed capacity of 28.5 MW and assured energy of 18 average-MW. The transfer of control of the shares depends upon the prior approval of the appropriate authorities, such as the National Electric Energy Agency – ANEEL and the Brazilian National Economic and Social Development Bank – BNDES. The Santa Luzia Small Hydro Power Plant has been in commercial operation since July 2011 and the entire amount of its assured energy has been sold through long-term contracts, of which 14 average-MW sold in the Renewable Sources Auction occurred in 2007 (price: R$ 170.00/MWh – June 2011) and the remaining in a contract with a free customer.
Page 34 of 42
Consolidated | |||
ASSETS |
09/30/2011 |
12/31/2010 |
09/30/2010 |
CURRENT ASSETS |
|||
Cash and Cash Equivalents |
4,274,619 |
1,562,897 |
1,140,304 |
Consumers, Concessionaries and Licensees |
1,865,275 |
1,816,073 |
1,893,347 |
Financial Investments |
44,744 |
42,533 |
40,837 |
Recoverable Taxes |
208,659 |
193,020 |
178,749 |
Derivatives |
256,791 |
244 |
361 |
Materials and Supplies |
42,816 |
24,856 |
22,158 |
Leases |
4,443 |
4,754 |
4,020 |
Other Credits |
444,535 |
253,812 |
228,164 |
TOTAL CURRENT ASSETS |
7,141,882 |
3,898,190 |
3,507,940 |
NON-CURRENT ASSETS |
|||
Consumers, Concessionaries and Licensees |
186,685 |
195,738 |
180,586 |
Judicial Deposits |
1,079,399 |
890,685 |
862,071 |
Financial Investments |
46,837 |
72,823 |
87,453 |
Recoverable Taxes |
166,385 |
138,966 |
135,986 |
Derivatives |
224 |
82 |
159 |
Deferred Taxes |
1,096,980 |
1,183,460 |
1,182,177 |
Leases |
24,729 |
26,315 |
23,830 |
Concession Financial Assets |
1,233,886 |
934,646 |
825,466 |
Employee Pension Plans |
5,800 |
5,800 |
11,743 |
Investments at Cost |
116,654 |
116,654 |
116,654 |
Other Credits |
217,932 |
222,100 |
282,295 |
Property, Plant and Equipment |
6,982,472 |
5,786,465 |
5,603,183 |
Intangible |
7,759,064 |
6,584,874 |
6,416,894 |
TOTAL NON-CURRENT ASSETS |
18,917,048 |
16,158,607 |
15,728,497 |
TOTAL ASSETS |
26,058,930 |
20,056,797 |
19,236,437 |
Page 35 of 42
|
Consolidated | ||
LIABILITIES AND SHAREHOLDERS' EQUITY |
09/30/2011 |
12/31/2010 |
09/30/2010 |
LIABILITIES |
|||
CURRENT LIABILITIES |
|||
Suppliers |
1,197,365 |
1,047,385 |
1,176,989 |
Accrued Interest on Debts |
147,854 |
40,516 |
56,379 |
Accrued Interest on Debentures |
218,028 |
118,066 |
114,639 |
Loans and Financing |
1,356,407 |
578,867 |
555,373 |
Debentures |
602,859 |
1,509,958 |
1,311,138 |
Employee Pension Plans |
37,967 |
40,103 |
43,801 |
Regulatory Charges |
145,065 |
123,541 |
119,130 |
Taxes, Fees and Contributions |
488,434 |
455,248 |
524,968 |
Dividends and Interest on Equity |
21,603 |
23,813 |
23,076 |
Accrued Liabilities |
121,574 |
58,688 |
72,093 |
Derivatives |
- |
3,982 |
3,372 |
Public Utilities |
27,212 |
17,287 |
16,743 |
Other Accounts Payable |
513,208 |
410,869 |
401,298 |
TOTAL CURRENT LIABILITIES |
4,877,576 |
4,428,323 |
4,418,999 |
NON-CURRENT LIABILITIES |
|||
Accrued Interest on Debts |
16,118 |
29,155 |
17,938 |
Loans and Financing |
6,603,497 |
4,917,843 |
4,614,767 |
Debentures |
4,441,440 |
2,212,314 |
2,020,542 |
Employee Pension Plans |
454,993 |
570,877 |
605,759 |
Taxes, Fees and Contributions |
625 |
960 |
1,139 |
Deferred Taxes |
651,892 |
277,767 |
280,233 |
Reserve for Contingencies |
314,068 |
291,265 |
289,017 |
Derivatives |
43 |
7,883 |
1,433 |
Public Utilities |
437,301 |
429,632 |
420,325 |
Other Accounts Payable |
164,100 |
141,124 |
194,523 |
TOTAL NON-CURRENT LIABILITIES |
13,084,079 |
8,878,819 |
8,445,676 |
SHAREHOLDERS' EQUITY |
|||
Capital |
4,793,424 |
4,793,424 |
4,793,424 |
Capital Reserve |
16 |
16 |
16 |
Legal Reserve |
418,665 |
418,665 |
341,751 |
Additional Proposed Dividend |
- |
486,040 |
- |
Revaluation Reserve |
1,104,691 |
795,563 |
785,351 |
Retained Earning (Loss) |
417,060 |
- |
196,174 |
6,733,856 |
6,493,708 |
6,116,716 | |
Non-Controlling Shareholders' Interest |
1,363,418 |
255,948 |
255,046 |
TOTAL SHAREHOLDERS' EQUITY |
8,097,274 |
6,749,656 |
6,371,762 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
26,058,930 |
20,056,797 |
19,236,437 |
Page 36 of 42
Consolidated | ||||||||
|
|
3Q11 |
3Q10 |
Variation |
|
9M11 |
9M10 |
Variation |
OPERATING REVENUES |
|
|
||||||
Electricity Sales to Final Customers(1) |
|
3,824,174 |
3,482,626 |
9.81% |
|
11,015,653 |
10,421,641 |
5.70% |
Electricity Sales to Distributors |
|
339,763 |
348,380 |
-2.47% |
|
914,567 |
845,887 |
8.12% |
Revenue from building the infrastructure |
|
314,135 |
295,403 |
6.34% |
|
778,153 |
698,867 |
11.34% |
Other Operating Revenues(1) |
|
380,015 |
368,075 |
3.24% |
|
1,174,968 |
998,906 |
17.63% |
|
4,858,087 |
4,494,484 |
8.09% |
|
13,883,340 |
12,965,301 |
7.08% | |
|
|
|||||||
DEDUCTIONS FROM OPERATING REVENUES |
|
(1,565,864) |
(1,395,609) |
12.20% |
|
(4,523,475) |
(4,120,142) |
9.79% |
NET OPERATING REVENUES |
|
3,292,224 |
3,098,875 |
6.24% |
|
9,359,864 |
8,845,159 |
5.82% |
|
|
|||||||
COST OF ELECTRIC ENERGY SERVICES |
|
|
||||||
Electricity Purchased for Resale |
|
(1,278,806) |
(1,379,348) |
-7.29% |
|
(3,609,063) |
(3,723,117) |
-3.06% |
Electricity Network Usage Charges |
|
(356,810) |
(286,430) |
24.57% |
|
(969,665) |
(859,443) |
12.82% |
|
(1,635,616) |
(1,665,778) |
-1.81% |
|
(4,578,729) |
(4,582,560) |
-0.08% | |
OPERATING COSTS AND EXPENSES |
|
|
||||||
Personnel |
|
(169,265) |
(147,737) |
14.57% |
|
(527,064) |
(441,095) |
19.49% |
Material |
|
(27,864) |
(21,412) |
30.13% |
|
(69,400) |
(57,626) |
20.43% |
Outsourced Services |
|
(110,738) |
(111,254) |
-0.46% |
|
(367,760) |
(320,223) |
14.84% |
Other Operating Costs/Expenses |
|
(78,438) |
(89,599) |
-12.46% |
|
(248,107) |
(204,120) |
21.55% |
Cost of building the infrastructure |
|
(314,135) |
(295,403) |
6.34% |
|
(778,153) |
(698,867) |
11.34% |
Employee Pension Plans |
|
22,352 |
21,800 |
2.53% |
|
67,056 |
65,405 |
2.52% |
Depreciation and Amortization |
|
(149,902) |
(120,982) |
23.90% |
|
(446,017) |
(359,051) |
24.22% |
Amortization of Concession's Intangible |
|
(46,148) |
(46,511) |
-0.78% |
|
(138,174) |
(139,240) |
-0.77% |
|
(874,137) |
(811,098) |
7.77% |
|
(2,507,619) |
(2,154,817) |
16.37% | |
|
|
|||||||
EBITDA |
|
956,168 |
767,692 |
24.55% |
|
2,790,652 |
2,540,668 |
9.84% |
|
|
|||||||
EBIT |
|
782,471 |
621,999 |
25.80% |
|
2,273,517 |
2,107,782 |
7.86% |
|
|
|||||||
FINANCIAL INCOME (EXPENSE) |
|
|
||||||
Financial Income |
|
220,146 |
129,825 |
69.57% |
|
471,584 |
332,117 |
41.99% |
Financial Expenses |
|
(425,349) |
(202,925) |
109.61% |
|
(989,942) |
(571,348) |
73.26% |
|
(205,203) |
(73,101) |
180.71% |
|
(518,358) |
(239,231) |
116.68% | |
|
|
|||||||
INCOME BEFORE TAXES ON INCOME |
|
577,268 |
548,898 |
5.17% |
|
1,755,159 |
1,868,551 |
-6.07% |
|
|
|||||||
Social Contribution |
|
(52,966) |
(52,641) |
0.62% |
|
(163,648) |
(178,316) |
-8.23% |
Income Tax |
(145,237) |
(145,477) |
-0.16% |
|
(452,488) |
(491,821) |
-8.00% | |
|
|
|||||||
NET INCOME |
|
379,064 |
350,781 |
8.06% |
|
1,139,022 |
1,198,414 |
-4.96% |
Controlling Shareholders' Interest |
|
368,719 |
344,148 |
7.14% |
|
1,116,428 |
1,182,176 |
-5.56% |
Non-Controlling Shareholders' Interest |
|
10,346 |
6,633 |
55.98% |
|
22,594 |
16,238 |
39.14% |
Note: (1) TUSD revenue from captive customers reclassified from the line of “other operating revenues” to the line of “electricity sales to final customers”.
Page 37 of 42
Consolidated |
Conventional Generation |
CPFL Renováveis | ||||
|
3Q11(1) |
3Q10(2) |
Variation |
3Q11(3) | ||
OPERATING REVENUES |
||||||
Eletricity Sales to Final Consumers |
- |
- |
0.00% |
- | ||
Eletricity Sales to Distributors |
386,491 |
312,901 |
23.52% |
50,856 | ||
Other Operating Revenues |
611 |
1,949 |
-68.67% |
25 | ||
387,102 |
314,850 |
22.95% |
50,880 | |||
DEDUCTIONS FROM OPERATING REVENUES |
(27,229) |
(19,334) |
40.83% |
(2,449) | ||
NET OPERATING REVENUES |
359,873 |
295,516 |
21.78% |
48,432 | ||
COST OF ELETRIC ENERGY SERVICES |
||||||
Eletricity Purchased for Resale |
(2,248) |
(55,149) |
-95.92% |
(2,792) | ||
Eletricity Network Usage Charges |
(18,997) |
(10,288) |
84.66% |
(1,343) | ||
(21,245) |
(65,437) |
-67.53% |
(4,134) | |||
OPERATING COSTS AND EXPENSES |
||||||
Personnel |
(10,685) |
(8,612) |
24.07% |
(8,353) | ||
Material |
(1,327) |
(1,204) |
10.21% |
(157) | ||
Outsourced Services |
(10,141) |
(6,833) |
48.40% |
(12,514) | ||
Other Operating Costs/Expenses |
(20,343) |
(12,344) |
64.80% |
(2,008) | ||
Employee Pension Plans |
620 |
299 |
107.53% |
- | ||
Depreciation and Amortization |
(58,797) |
(38,859) |
51.31% |
(7,855) | ||
Amortization of Concession's Intangible |
(4,832) |
(5,336) |
-9.44% |
(137) | ||
(105,504) |
(72,890) |
44.75% |
(31,024) | |||
EBITDA |
296,132 |
201,085 |
47.27% |
21,265 | ||
EBIT |
233,123 |
157,189 |
48.31% |
13,274 | ||
FINANCIAL INCOME (EXPENSE) |
||||||
Financial Income |
18,997 |
16,874 |
12.58% |
15,494 | ||
Financial Expenses |
(134,589) |
(76,535) |
75.85% |
(12,381) | ||
Interest on Equity |
- |
- |
- |
- | ||
(115,592) |
(59,662) |
93.75% |
3,113 | |||
EQUITY ACCOUNTING |
(0) |
- |
0.00% |
- | ||
INCOME BEFORE TAXES ON INCOME |
117,531 |
97,528 |
20.51% |
16,386 | ||
Social Contribution |
(9,250) |
(9,858) |
-6.16% |
(1,166) | ||
Income Tax |
(25,401) |
(26,863) |
-5.44% |
(2,646) | ||
NET INCOME |
82,880 |
60,807 |
36.30% |
12,574 | ||
Controlling Shareholders' Interest |
76,245 |
54,087 |
40.97% |
12,469 | ||
Non-Controlling Shareholders' Interest |
15,915 |
6,630 |
140.04% |
105 |
Notes:
(1) Excludes CPFL Renováveis;
(2) Amounts reported before the joint venture between CPFL Energia and ERSA. Includes, therefore, the assets that, before the referred joint venture, were consolidated within the Generation Segment.
(3) 3Q11 includes only the months of August and September 2011.
Page 38 of 42
Consolidated | ||||||||
|
|
3Q11 |
3Q10 |
Variation |
|
9M11 |
9M10 |
Variation |
OPERATING REVENUES |
|
|||||||
Electricity Sales to Final Customers(1) |
3,641,909 |
3,331,364 |
9.32% |
|
10,498,610 |
10,002,200 |
4.96% | |
Electricity Sales to Distributors |
48,634 |
60,510 |
-19.63% |
|
139,016 |
114,045 |
21.90% | |
Revenue from building the infrastructure |
314,135 |
295,403 |
6.34% |
|
778,153 |
698,867 |
11.34% | |
Other Operating Revenues(1) |
364,590 |
342,475 |
6.46% |
|
1,105,511 |
921,067 |
20.03% | |
|
4,369,268 |
4,029,752 |
8.43% |
|
12,521,290 |
11,736,179 |
6.69% | |
|
|
|||||||
DEDUCTIONS FROM OPERATING REVENUES |
(1,513,808) |
(1,358,584) |
11.43% |
|
(4,386,262) |
(4,016,514) |
9.21% | |
NET OPERATING REVENUES |
2,855,460 |
2,671,168 |
6.90% |
|
8,135,028 |
7,719,665 |
5.38% | |
|
|
|||||||
COST OF ELECTRIC ENERGY SERVICES |
|
|||||||
Electricity Purchased for Resale |
(1,317,796) |
(1,299,974) |
1.37% |
|
(3,707,717) |
(3,614,685) |
2.57% | |
Electricity Network Usage Charges |
(337,169) |
(274,530) |
22.82% |
|
(915,040) |
(830,137) |
10.23% | |
|
(1,654,965) |
(1,574,504) |
5.11% |
|
(4,622,757) |
(4,444,822) |
4.00% | |
OPERATING COSTS AND EXPENSES |
|
|
||||||
Personnel |
|
(128,762) |
(126,933) |
1.44% |
|
(428,571) |
(379,272) |
13.00% |
Material |
|
(24,330) |
(16,602) |
46.55% |
|
(56,895) |
(46,956) |
21.17% |
Outsourced Services |
|
(93,729) |
(94,563) |
-0.88% |
|
(320,059) |
(273,344) |
17.09% |
Other Operating Costs/Expenses |
|
(55,830) |
(72,736) |
-23.24% |
|
(179,653) |
(152,735) |
17.62% |
Cost of building the infrastructure |
|
(314,135) |
(295,403) |
6.34% |
|
(778,153) |
(698,867) |
11.34% |
Employee Pension Plans |
|
21,732 |
21,501 |
1.07% |
|
65,195 |
64,508 |
1.06% |
Depreciation and Amortization |
|
(81,746) |
(80,866) |
1.09% |
|
(254,160) |
(239,368) |
6.18% |
Amortization of Concession's Intangible |
|
(4,881) |
(4,920) |
-0.78% |
|
(14,644) |
(14,757) |
-0.76% |
|
(681,682) |
(670,522) |
1.66% |
|
(1,966,940) |
(1,740,791) |
12.99% | |
|
|
|||||||
EBITDA |
|
583,708 |
490,427 |
19.02% |
|
1,748,941 |
1,723,668 |
1.47% |
|
|
|||||||
EBIT |
|
518,812 |
426,141 |
21.75% |
|
1,545,331 |
1,534,051 |
0.74% |
|
|
|||||||
FINANCIAL INCOME (EXPENSE) |
|
|
||||||
Financial Income |
|
124,101 |
86,311 |
43.78% |
|
311,874 |
236,837 |
31.68% |
Financial Expenses |
|
(216,470) |
(99,482) |
117.60% |
|
(478,837) |
(279,361) |
71.40% |
Interest on Equity |
|
- |
- |
- |
|
- |
- |
- |
|
(92,369) |
(13,171) |
601.30% |
|
(166,963) |
(42,524) |
292.63% | |
|
|
|||||||
INCOME BEFORE TAXES ON INCOME |
|
426,443 |
412,970 |
3.26% |
|
1,378,369 |
1,491,527 |
-7.59% |
|
|
|||||||
Social Contribution |
|
(38,380) |
(37,218) |
3.12% |
|
(118,959) |
(129,429) |
-8.09% |
Income Tax |
|
(103,600) |
(101,013) |
2.56% |
|
(324,115) |
(352,279) |
-7.99% |
|
|
|||||||
NET INCOME |
|
284,463 |
274,739 |
3.54% |
|
935,294 |
1,009,819 |
-7.38% |
Note: (1) TUSD revenue from captive customers reclassified from the line of “other operating revenues” to the line of “electricity sales to final customers”.
Page 39 of 42
Summary of Income Statement by Distribution Company (R$ Thousands) | ||||||
CPFL PAULISTA | ||||||
|
3Q11 |
3Q10 |
Var. |
9M11 |
9M10 |
Var. |
Gross Operating Revenues |
2,229,042 |
2,068,223 |
7.8% |
6,302,302 |
6,012,722 |
4.8% |
Net Operating Revenues |
1,459,760 |
1,374,408 |
6.2% |
4,088,622 |
3,956,257 |
3.3% |
Cost of Electric Power |
(873,140) |
(843,195) |
3.6% |
(2,395,840) |
(2,308,274) |
3.8% |
Operating Costs & Expenses |
(333,178) |
(343,221) |
-2.9% |
(966,864) |
(843,215) |
14.7% |
EBIT |
253,441 |
187,992 |
34.8% |
725,918 |
804,768 |
-9.8% |
EBITDA (IFRS)(1) |
276,229 |
205,456 |
34.4% |
798,263 |
858,404 |
-7.0% |
EBITDA (IFRS+ Regulatory Assets & Liabilities - Non-Recurring)(2) |
319,498 |
160,044 |
99.6% |
NA |
NA |
NA |
Financial Income (Expense) |
(41,573) |
845 |
-5019.2% |
(59,791) |
10,968 |
-645.1% |
Income Before Taxes |
211,868 |
188,838 |
12.2% |
666,127 |
815,736 |
-18.3% |
NET INCOME (IFRS) |
142,362 |
125,155 |
13.7% |
447,510 |
545,265 |
-17.9% |
NET INCOME (IFRS+ Regulatory Assets & Liabilities - Non-Recurring)(3) |
169,437 |
100,873 |
68.0% |
NA |
NA |
NA |
CPFL PIRATININGA | ||||||
|
3Q11 |
3Q10 |
Var. |
9M11 |
9M10 |
Var. |
Gross Operating Revenues |
981,043 |
921,082 |
6.5% |
2,979,553 |
2,731,493 |
9.1% |
Net Operating Revenues |
628,490 |
605,952 |
3.7% |
1,907,039 |
1,782,246 |
7.0% |
Cost of Electric Power |
(374,274) |
(355,442) |
5.3% |
(1,046,448) |
(1,008,761) |
3.7% |
Operating Costs & Expenses |
(143,833) |
(159,114) |
-9.6% |
(444,848) |
(423,930) |
4.9% |
EBIT |
110,382 |
91,396 |
20.8% |
415,743 |
349,555 |
18.9% |
EBITDA (IFRS)(1) |
122,335 |
105,471 |
16.0% |
453,614 |
389,138 |
16.6% |
EBITDA (IFRS+ Regulatory Assets & Liabilities - Non-Recurring)(2) |
149,581 |
91,475 |
63.5% |
NA |
NA |
NA |
Financial Income (Expense) |
(24,108) |
380 |
-6444.2% |
(44,421) |
(19,936) |
122.8% |
Income Before Taxes |
86,274 |
91,776 |
-6.0% |
371,322 |
329,619 |
12.7% |
NET INCOME (IFRS) |
57,463 |
61,067 |
-5.9% |
248,272 |
221,129 |
12.3% |
NET INCOME (IFRS+ Regulatory Assets & Liabilities - Non-Recurring)(3) |
72,882 |
53,951 |
35.1% |
NA |
NA |
NA |
RGE | ||||||
|
3Q11 |
3Q10 |
Var. |
9M11 |
9M10 |
Var. |
Gross Operating Revenues |
913,999 |
830,469 |
10.1% |
2,541,844 |
2,391,017 |
6.3% |
Net Operating Revenues |
597,054 |
547,390 |
9.1% |
1,662,235 |
1,576,599 |
5.4% |
Cost of Electric Power |
(326,756) |
(295,933) |
10.4% |
(948,021) |
(904,134) |
4.9% |
Operating Costs & Expenses |
(154,998) |
(128,651) |
20.5% |
(409,843) |
(371,694) |
10.3% |
EBIT |
115,299 |
122,806 |
-6.1% |
304,371 |
300,771 |
1.2% |
EBITDA (IFRS)(1) |
140,715 |
151,185 |
-6.9% |
383,087 |
383,915 |
-0.2% |
EBITDA (IFRS+ Regulatory Assets & Liabilities - Non-Recurring)(2) |
141,729 |
172,010 |
-17.6% |
NA |
NA |
NA |
Financial Income (Expense) |
(22,684) |
(13,161) |
72.4% |
(56,108) |
(33,195) |
69.0% |
Income Before Taxes |
92,615 |
109,645 |
-15.5% |
248,262 |
267,576 |
-7.2% |
NET INCOME (IFRS) |
61,164 |
73,416 |
-16.7% |
176,350 |
189,810 |
-7.1% |
NET INCOME (IFRS+ Regulatory Assets & Liabilities - Non-Recurring)(3) |
61,310 |
87,405 |
-29.9% |
NA |
NA |
NA |
CPFL SANTA CRUZ | ||||||
|
3Q11 |
3Q10 |
Var. |
9M11 |
9M10 |
Var. |
Gross Operating Revenues |
99,661 |
82,792 |
20.4% |
286,801 |
242,411 |
18.3% |
Net Operating Revenues |
68,875 |
57,301 |
20.2% |
196,686 |
166,214 |
18.3% |
Cost of Electric Power |
(33,186) |
(33,840) |
-1.9% |
(98,105) |
(94,891) |
3.4% |
Operating Costs & Expenses |
(20,247) |
(18,026) |
12.3% |
(59,889) |
(49,806) |
20.2% |
EBIT |
15,442 |
5,435 |
184.1% |
38,692 |
21,517 |
79.8% |
EBITDA (IFRS)(1) |
17,484 |
7,414 |
135.8% |
45,050 |
27,576 |
63.4% |
EBITDA (IFRS+ Regulatory Assets & Liabilities - Non-Recurring)(2) |
14,829 |
631 |
2250.1% |
NA |
NA |
NA |
Financial Income (Expense) |
(2,443) |
(399) |
512.2% |
(4,024) |
(30) |
13315.0% |
Income Before Taxes |
12,999 |
5,036 |
158.1% |
34,668 |
21,487 |
61.3% |
NET INCOME (IFRS) |
8,558 |
3,321 |
157.7% |
23,669 |
14,838 |
59.5% |
NET INCOME (IFRS+ Regulatory Assets & Liabilities - Non-Recurring)(3) |
6,821 |
(1,091) |
-725.2% |
NA |
NA |
NA |
Notes:
(1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result, depreciation/amortization and pension fund contributions;
(2) EBITDA (IFRS + Regulatory Assets & Liabilitites – Non-recurring) considers, besides the items mentioned above, the regulatory assets and liabilities, and excludes the non-recurring effects;
(3) Net Income (IFRS + Regulatory Assets & Liabilitites – Non-recurring) considers the regulatory assets and liabilities and excludes the non-recurring effects.
NA = Not applicable.
Page 40 of 42
Summary of Income Statement by Distribution Company (R$ Thousands) | ||||||
CPFL LESTE PAULISTA | ||||||
|
3Q11 |
3Q10 |
Var. |
9M11 |
9M10 |
Var. |
Gross Operating Revenues |
37,495 |
33,911 |
10.6% |
100,853 |
90,526 |
11.4% |
Net Operating Revenues |
27,830 |
24,518 |
13.5% |
72,921 |
63,869 |
14.2% |
Cost of Electric Power |
(11,811) |
(11,772) |
0.3% |
(29,940) |
(27,780) |
7.8% |
Operating Costs & Expenses |
(9,688) |
(6,749) |
43.5% |
(25,993) |
(17,620) |
47.5% |
EBIT |
6,332 |
5,997 |
5.6% |
16,988 |
18,469 |
-8.0% |
EBITDA (IFRS)(1) |
7,310 |
6,890 |
6.1% |
19,980 |
21,163 |
-5.6% |
EBITDA (IFRS+ Regulatory Assets & Liabilities - Non-Recurring)(2) |
8,647 |
4,850 |
78.3% |
NA |
NA |
NA |
Financial Income (Expense) |
(780) |
(874) |
-10.8% |
(2,017) |
(1,143) |
76.5% |
Income Before Taxes |
5,552 |
5,123 |
8.4% |
14,971 |
17,326 |
-13.6% |
NET INCOME (IFRS) |
3,616 |
3,482 |
3.8% |
10,142 |
11,668 |
-13.1% |
NET INCOME (IFRS+ Regulatory Assets & Liabilities - Non-Recurring)(3) |
4,604 |
2,314 |
99.0% |
NA |
NA |
NA |
CPFL SUL PAULISTA | ||||||
|
3Q11 |
3Q10 |
Var. |
9M11 |
9M10 |
Var. |
Gross Operating Revenues |
48,167 |
37,863 |
27.2% |
134,313 |
110,773 |
21.3% |
Net Operating Revenues |
34,691 |
25,416 |
36.5% |
94,004 |
74,031 |
27.0% |
Cost of Electric Power |
(14,752) |
(13,249) |
11.3% |
(43,211) |
(40,895) |
5.7% |
Operating Costs & Expenses |
(12,018) |
(6,179) |
94.5% |
(30,700) |
(16,088) |
90.8% |
EBIT |
7,920 |
5,988 |
32.3% |
20,094 |
17,048 |
17.9% |
EBITDA (IFRS)(1) |
8,644 |
6,605 |
30.9% |
22,402 |
18,986 |
18.0% |
EBITDA (IFRS+ Regulatory Assets & Liabilities - Non-Recurring)(2) |
7,952 |
6,079 |
30.8% |
NA |
NA |
NA |
Financial Income (Expense) |
(436) |
(174) |
150.5% |
(531) |
19 |
-2896.3% |
Income Before Taxes |
7,485 |
5,814 |
28.7% |
19,563 |
17,067 |
14.6% |
NET INCOME (IFRS) |
4,941 |
3,847 |
28.4% |
13,266 |
11,627 |
14.1% |
NET INCOME (IFRS+ Regulatory Assets & Liabilities - Non-Recurring)(3) |
4,481 |
3,472 |
29.1% |
NA |
NA |
NA |
CPFL JAGUARI | ||||||
|
3Q11 |
3Q10 |
Var. |
9M11 |
9M10 |
Var. |
Gross Operating Revenues |
38,580 |
35,375 |
9.1% |
115,142 |
102,989 |
11.8% |
Net Operating Revenues |
24,897 |
22,662 |
9.9% |
74,426 |
65,592 |
13.5% |
Cost of Electric Power |
(14,956) |
(13,519) |
10.6% |
(43,787) |
(40,608) |
7.8% |
Operating Costs & Expenses |
(3,937) |
(5,438) |
-27.6% |
(15,092) |
(12,918) |
16.8% |
EBIT |
6,004 |
3,705 |
62.1% |
15,547 |
12,066 |
28.9% |
EBITDA (IFRS)(1) |
6,519 |
4,182 |
55.9% |
17,162 |
13,502 |
27.1% |
EBITDA (IFRS+ Regulatory Assets & Liabilities - Non-Recurring)(2) |
6,578 |
2,962 |
122.1% |
NA |
NA |
NA |
Financial Income (Expense) |
(174) |
117 |
-249.1% |
143 |
413 |
-65.5% |
Income Before Taxes |
5,830 |
3,822 |
52.5% |
15,690 |
12,479 |
25.7% |
NET INCOME (IFRS) |
3,840 |
2,523 |
52.2% |
10,661 |
8,499 |
25.4% |
NET INCOME (IFRS+ Regulatory Assets & Liabilities - Non-Recurring)(3) |
3,869 |
1,761 |
119.8% |
NA |
NA |
NA |
CPFL MOCOCA | ||||||
|
3Q11 |
3Q10 |
Var. |
9M11 |
9M10 |
Var. |
Gross Operating Revenues |
25,278 |
22,029 |
14.7% |
71,009 |
61,844 |
14.8% |
Net Operating Revenues |
17,521 |
15,043 |
16.5% |
48,718 |
41,783 |
16.6% |
Cost of Electric Power |
(9,408) |
(8,353) |
12.6% |
(26,254) |
(23,723) |
10.7% |
Operating Costs & Expenses |
(4,121) |
(3,868) |
6.5% |
(14,486) |
(8,203) |
76.6% |
EBIT |
3,992 |
2,822 |
41.4% |
7,978 |
9,857 |
-19.1% |
EBITDA (IFRS)(1) |
4,473 |
3,223 |
38.8% |
9,382 |
10,984 |
-14.6% |
EBITDA (IFRS+ Regulatory Assets & Liabilities - Non-Recurring)(2) |
4,573 |
2,893 |
58.1% |
NA |
NA |
NA |
Financial Income (Expense) |
(171) |
95 |
-280.0% |
(212) |
380 |
-155.9% |
Income Before Taxes |
3,820 |
2,917 |
31.0% |
7,766 |
10,237 |
-24.1% |
NET INCOME (IFRS) |
2,520 |
1,929 |
30.6% |
5,423 |
6,983 |
-22.3% |
NET INCOME (IFRS+ Regulatory Assets & Liabilities - Non-Recurring)(3) |
2,870 |
1,698 |
69.0% |
NA |
NA |
NA |
Notes:
(1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result, depreciation/amortization and pension fund contributions;
(2) EBITDA (IFRS + Regulatory Assets & Liabilitites – Non-recurring) considers, besides the items mentioned above, the regulatory assets and liabilities, and excludes the non-recurring effects;
(3) Net Income (IFRS + Regulatory Assets & Liabilitites – Non-recurring) considers the regulatory assets and liabilities and excludes the non-recurring effects.
NA = Not applicable.
Page 41 of 42
CPFL Paulista | ||||||
|
3Q11 |
3Q10 |
Var. |
9M11 |
9M10 |
Var. |
Residential |
1,918 |
1,802 |
6.4% |
5,643 |
5,387 |
4.8% |
Industrial |
1,277 |
1,330 |
-4.0% |
3,667 |
4,056 |
-9.6% |
Commercial |
1,121 |
1,024 |
9.5% |
3,455 |
3,227 |
7.0% |
Others |
1,018 |
1,018 |
0.0% |
2,800 |
2,753 |
1.7% |
Total |
5,334 |
5,174 |
3.1% |
15,565 |
15,423 |
0.9% |
CPFL Piratininga | ||||||
|
3Q11 |
3Q10 |
Var. |
9M11 |
9M10 |
Var. |
Residential |
841 |
784 |
7.3% |
2,532 |
2,404 |
5.3% |
Industrial |
716 |
766 |
-6.6% |
2,121 |
2,237 |
-5.2% |
Commercial |
436 |
420 |
3.6% |
1,365 |
1,338 |
2.0% |
Others |
257 |
241 |
6.5% |
761 |
714 |
6.7% |
Total |
2,250 |
2,212 |
1.7% |
6,779 |
6,692 |
1.3% |
RGE | ||||||
|
3Q11 |
3Q10 |
Var. |
9M11 |
9M10 |
Var. |
Residential |
528 |
483 |
9.3% |
1,507 |
1,443 |
4.4% |
Industrial |
546 |
597 |
-8.4% |
1,612 |
1,815 |
-11.2% |
Commercial |
292 |
271 |
7.8% |
906 |
861 |
5.2% |
Others |
544 |
469 |
16.1% |
1,687 |
1,479 |
14.1% |
Total |
1,910 |
1,819 |
5.0% |
5,712 |
5,599 |
2.0% |
CPFL Santa Cruz | ||||||
|
3Q11 |
3Q10 |
Var. |
9M11 |
9M10 |
Var. |
Residential |
75 |
72 |
3.9% |
223 |
216 |
3.3% |
Industrial |
48 |
44 |
9.5% |
139 |
126 |
10.6% |
Commercial |
35 |
34 |
3.8% |
112 |
107 |
5.2% |
Others |
92 |
89 |
2.9% |
248 |
233 |
6.5% |
Total |
250 |
239 |
4.6% |
723 |
682 |
6.0% |
CPFL Jaguari | ||||||
|
3Q11 |
3Q10 |
Var. |
9M11 |
9M10 |
Var. |
Residential |
19 |
18 |
4.2% |
55 |
53 |
3.2% |
Industrial |
70 |
68 |
3.1% |
209 |
206 |
1.2% |
Commercial |
9 |
9 |
4.4% |
30 |
27 |
8.9% |
Others |
9 |
9 |
0.3% |
28 |
27 |
2.5% |
Total |
107 |
104 |
3.1% |
321 |
314 |
2.3% |
CPFL Mococa | ||||||
|
3Q11 |
3Q10 |
Var. |
9M11 |
9M10 |
Var. |
Residential |
16 |
16 |
0.8% |
48 |
47 |
3.5% |
Industrial |
16 |
16 |
1.3% |
46 |
46 |
-1.0% |
Commercial |
7 |
6 |
8.8% |
21 |
19 |
8.3% |
Others |
16 |
17 |
-4.6% |
42 |
45 |
-6.8% |
Total |
55 |
55 |
0.2% |
157 |
158 |
-0.2% |
CPFL Leste Paulista | ||||||
|
3Q11 |
3Q10 |
Var. |
9M11 |
9M10 |
Var. |
Residential |
22 |
22 |
1.4% |
65 |
62 |
5.1% |
Industrial |
6 |
19 |
-68.5% |
20 |
55 |
-63.8% |
Commercial |
10 |
9 |
9.4% |
29 |
27 |
8.9% |
Others |
36 |
38 |
-6.0% |
83 |
87 |
-5.1% |
Total |
73 |
87 |
-16.1% |
197 |
230 |
-14.7% |
CPFL Sul Paulista | ||||||
|
3Q11 |
3Q10 |
Var. |
9M11 |
9M10 |
Var. |
Residential |
31 |
30 |
1.9% |
91 |
86 |
6.4% |
Industrial |
28 |
27 |
2.9% |
85 |
97 |
-12.6% |
Commercial |
12 |
11 |
4.4% |
38 |
35 |
6.6% |
Others |
22 |
21 |
2.5% |
66 |
65 |
1.2% |
Total |
92 |
90 |
2.7% |
280 |
283 |
-1.3% |
Page 42 of 42
CPFL ENERGIA S.A. | ||
|
By: |
/S/ LORIVAL NOGUEIRA LUZ JUNIOR
|
Name: Title: |
Lorival Nogueira Luz Junior 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.