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, August 11, 2016 – CPFL Energia S.A. (BM&FBOVESPA: CPFE3 and NYSE: CPL), announces its 2Q16 results. The financial and operational information herein, unless otherwise indicated, is presented on a consolidated basis and is in accordance with the applicable legislation. Comparisons are relative to 2Q15, unless otherwise stated.
CPFL ENERGIA ANNOUNCES ITS 2Q16 RESULTS
Indicators (R$ Million) |
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Sales within the Concession Area - GWh |
13,903 |
14,191 |
-2.0% |
28,050 |
29,305 |
-4.3% |
Captive Market |
10,122 |
10,079 |
0.4% |
20,690 |
21,231 |
-2.5% |
Free Client |
3,780 |
4,112 |
-8.1% |
7,359 |
8,074 |
-8.8% |
Gross Operating Revenue(1) |
6,887 |
8,768 |
-21.5% |
14,168 |
16,173 |
-12.4% |
Net Operating Revenue(1) |
4,141 |
4,878 |
-15.1% |
8,174 |
9,937 |
-17.7% |
EBITDA (IFRS)(2) |
902 |
692 |
30.2% |
1,849 |
1,665 |
11.1% |
Adjusted EBITDA(3) |
901 |
834 |
8.0% |
1,851 |
1,837 |
0.7% |
Net Income (IFRS) |
240 |
90 |
166.1% |
473 |
233 |
103.2% |
Adjusted Net Income(4) |
261 |
221 |
18.0% |
528 |
472 |
12.0% |
Investments |
504 |
382 |
31.9% |
950 |
713 |
33.2% |
Notes:
(1) Disregard construction revenues;
(2) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result, depreciation/amortization, as CVM Instruction no. 527/12;
(3) Adjusted EBITDA considers CPFL Energia stake in each of the generation assets and excludes the non-recurring effects and the exchange variation in Itaipu invoices;
(4) Adjusted Net Income considers CPFL Energia stake in each of the generation assets and excludes the non-recurring effects.
2Q16 HIGHLIGHTS
• Stability of the load in the concession area (-0.2%) – captive (+1.8%) and free client (-5.1%);
• Contracted demand preserved at the same level: +0.5% Off Peak and +1.1% Peak (Jun-16 x Jun-15);
• Decrease of 15.4% in adjusted Net Revenues and increase of 8.1% in adjusted EBITDA;
• Tariff adjustment of RGE, in Jun-16, with an average effect of -7.51% to consumers;
• Reduction of 77% in the balance of CVA - R$ 737 million in Mar-16 to R$ 170 million in Jun-16;
• Investments of R$ 504 million;
• Net debt of R$ 11.7 billion and leverage of 3.10x net debt/Ebitda;
• Commercial start-up of 36 generation units in Campo dos Ventos and Sao Benedito wind complexes (75.6 MW) until Jul-16;
• Announcement of the proposal of acquisition of Camargo Corrêa’s equity interest by State Grid for R$ 25.00/share - pending the due diligence process and Aneel and CADE approvals;
• Announcement of the acquisition of AES Sul distribution company - pending Aneel and creditors approvals.
Conference Call with Simultaneous Translation into English · Friday, August 12, 2016 – 11:00 a.m. (Brasília), 10:00 a.m. (ET) ( Portuguese: 55-11-3193-1001 or 55-11-2820-4001 (Brazil) ( English: 1-888-700-0802 (USA) and 1-786-924-6977 (Other Countries) · Webcast: www.cpfl.com.br/ir |
Investor Relations Department 55-19-3756-6083 |
INDEX
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After a three-month transition period, I took over as CEO of CPFL Energia on July 1. During this period, I could confirm my perception of the excellent reputation that CPFL Energia enjoys in the market, its top-notch technical team, the robust corporate platform that supports the businesses and the balance in our workforce between the experience of veterans and the vigor of youth.
In this new cycle, our focus will be on making sure that processes and systems are increasingly simpler and more efficient in order to make our company more agile and lean so that we continue to face the challenges and seize the opportunities for growth and creating value for the Company.
Our 2Q16 results were marked by clarity in the financial statements, which did not bring any significant extraordinary items. In 2Q16, the Company reported managerial EBITDA of R$901 million (+8.0%), mainly due to the recovery of the Distribution segment, whose average load measured in the captive market increased by 1.8%. Demand contracted by high-voltage clients, which remunerates the distribution activity, increased slightly by 0.5% for off-peak hours and by 1.1% for peak hours. The renewable energies segment also contributed positively, reflecting the 20% increase in wind power generation compared to 2Q15 and the startup of new generation assets (SHP Mata Velha and part of the Campo dos Ventos wind power complex).
In the consolidated result, the reduction in the Company’s leverage, which reached 3.10 times net debt/EBITDA at the end of the quarter, reflected not only the improved results, but also the consistent monetization of regulatory assets (CVA) throughout 2016.
On June 16, we announced the acquisition of AES Sul, a Company that serves more than 1.3 million clients in 118 cities in the state of Rio Grande do Sul. The transaction, approved by Brazil's antitrust authority CADE on August 5 and the Extraordinary Shareholders Meeting held on August 9, still requires approval from the Brazilian Electricity Regulatory Agency (ANEEL) and the creditors of AES Sul. With this step, we have resumed the long-awaited process of consolidating the distribution segment, where scale and efficiency are fundamental for ensuring better services and lower tariffs to final consumers. Once the operation is concluded, CPFL Energia will enjoy a market share of over 14% of Brazil’s distribution segment, serving around 9 million clients through 9 concessionaires in the Southern and Southeastern regions of the country.
In the beginning of July, CPFL Energia was informed by Camargo Corrêa S.A. that the latter had received and accepted a proposal from the State Grid Corporation of China to acquire its interest in the controlling block of CPFL Energia (23% of the Company’s capital) for R$25.00 per share. Once the final agreement is signed (pending confirmatory due diligence), the period will start for other controlling shareholders of CPFL Energia to express their opinion regarding the following rights: (i) preference in acquiring all the shares covered by the transaction; or (ii) become a party to the transaction and sell, together with Camargo Corrêa, all their bound shares at the same price per share and under the same conditions offered by State Grid.
Both transactions reflect the new scenario in the electricity sector, now with prospects for attracting investments and growth opportunities for companies. This scenario favors the consolidation of the most fragmented segments - CPFL Energia took the first step in this direction with the acquisition of AES Sul and will continue to play a leading role in this new phase of development for Brazil’s electricity sector.
Andre Dorf
CEO of CPFL Energia
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In 2Q16, sales within the concession area, achieved by the distribution segment, totaled 13,903 GWh, a decrease of 2.0%.
Sales within the Concession Area - GWh | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Captive Market |
10,122 |
10,079 |
0.4% |
20,690 |
21,231 |
-2.5% |
Free Client |
3,780 |
4,112 |
-8.1% |
7,359 |
8,074 |
-8.8% |
Total |
13,903 |
14,191 |
-2.0% |
28,050 |
29,305 |
-4.3% |
In 2Q16, the captive market sales totaled 10,122 GWh, an increase of 0.4%. Already the amount of energy in GWh, which corresponds to the consumption of free clients in the area of expertise of the distributors of the group, billed through the Use rate of the distribution system (Free Client), reached 3,780 GWh at 2Q16, a decrease of 8.1%. This reduction reflects the adverse macroeconomic scenario, resulting in a drop in industrial production.
Sales within the Concession Area - GWh |
| ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Part. |
Residential |
4,003 |
3,840 |
4.2% |
8,268 |
8,311 |
-0.5% |
28.8% |
Industrial |
5,323 |
5,869 |
-9.3% |
10,469 |
11,618 |
-9.9% |
38.3% |
Commercial |
2,416 |
2,393 |
0.9% |
5,001 |
5,121 |
-2.3% |
17.4% |
Others |
2,161 |
2,089 |
3.5% |
4,312 |
4,256 |
1.3% |
15.5% |
Total |
13,903 |
14,191 |
-2.0% |
28,050 |
29,305 |
-4.3% |
100.0% |
Note: The tables with sales within the concession area by distributor are attached to this report in item 11.13.
Noteworthy in 2Q16, in the concession area:
· Residential and commercial segments (28.8% and 17.4% of total sales, respectively): increase of 4.2% and 0.9%, respectively. The positive performance in residential and commercial class reflects mainly the high temperature compared to what accrued to the 2Q15.
· Industrial segment (38.3% of total sales): decrease of 9.3%, reflecting the slowdown in economic activity. It is noteworthy that a large customer of the steel business in the area of CPFL Piratininga has reduced consumption by 76.8%. This represents 4% of the 9.3% reduction. Among the Group's distributors, we highlight that CPFL Paulista recorded a fall of 5.7% (or 162 GWh) and CPFL Piratininga had a decrease of 17.4% (or 332 GWh) due to the performance of the large customer cited above.
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Sales to the Captive Market - GWh | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Residential |
4,003 |
3,840 |
4.2% |
8,268 |
8,311 |
-0.5% |
Industrial |
1,828 |
2,028 |
-9.8% |
3,677 |
4,100 |
-10.3% |
Commercial |
2,177 |
2,168 |
0.4% |
4,524 |
4,654 |
-2.8% |
Others |
2,115 |
2,044 |
3.5% |
4,221 |
4,166 |
1.3% |
Total |
10,122 |
10,079 |
0.4% |
20,690 |
21,231 |
-2.5% |
Note: The tables with captive market sales by distributor are attached to this report in item 11.14.
Sales on the captive market were influence mainly by the good performance of the residential class with an increase of 4.2% and others with 3.5% increase, that is variations of temperatures recorded this quarter. Reduction of consumption in the industrial class, which, in turn, reflects the slowdown of economic activity, as explained earlier.
Free client - GWh | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Industrial |
3,494 |
3,841 |
-9.0% |
6,792 |
7,517 |
-9.6% |
Commercial |
239 |
226 |
5.9% |
477 |
467 |
2.3% |
Others |
47 |
45 |
4.3% |
90 |
90 |
0.5% |
Total |
3,780 |
4,112 |
-8.1% |
7,359 |
8,074 |
-8.8% |
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Free Client by Distributor - GWh | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
CPFL Paulista |
1,998 |
2,046 |
-2.3% |
3,843 |
3,978 |
-3.4% |
CPFL Piratininga |
1,201 |
1,467 |
-18.1% |
2,420 |
2,923 |
-17.2% |
RGE |
499 |
503 |
-0.9% |
931 |
971 |
-4.1% |
CPFL Santa Cruz |
13 |
11 |
16.0% |
25 |
23 |
9.0% |
CPFL Jaguari |
25 |
15 |
63.2% |
52 |
34 |
50.2% |
CPFL Mococa |
7 |
7 |
7.1% |
14 |
13 |
10.8% |
CPFL Leste Paulista |
14 |
13 |
12.1% |
28 |
24 |
16.5% |
CPFL Sul Paulista |
23 |
50 |
-54.4% |
45 |
108 |
-58.0% |
Total |
3,780 |
4,112 |
-8.1% |
7,359 |
8,074 |
-8.8% |
Contracted demand evolution | % compared to previous quarters
2.3) Generation Installed Capacity
As of June 30, 2016, the installed capacity of generation of CPFL Energia group, considering its stake in each of the projects, reached 3,215 MW, representing an expansion of 2.8% if compared to 2Q15. This increase is due to the commercial start-up of SHPP Mata Velha and 26 of 36 wind turbines of Complexes Campo do Ventos and São Benedito (12 wind turbines of Campo dos Ventos III, 6 wind turbines of Campo do Ventos I and 8 wind turbines of Campos dos Ventos V).
Generation Installed Capacity | MW
Note: Take into account CPFL Energia’s 51.61% stake in CPFL Renováveis
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The interests directly or indirectly held by CPFL Energia in its subsidiaries and jointly-owned entities are described below. Except for: (i) the jointly-owned entities ENERCAN, BAESA, Foz do Chapecó and EPASA, that, as from January 1, 2013 (and for comparative purpose for the balances of 2012) are no longer proportionally consolidated in the Company’s financial statements, being their assets, liabilities and results accounted for using the equity method of accounting, and (ii) the investment in Investco S.A. recorded at cost by the subsidiary Paulista Lajeado, the other units are fully consolidated.
As of June 30, 2016 and 2015, the participation of non-controlling interests stated in the consolidated statements refers to the third-party interests in the subsidiaries CERAN, Paulista Lajeado and CPFL Renováveis.
Energy distribution |
Company Type |
Equity Interest |
Location (State) |
Number of municipalities |
Approximate number of consumers |
Concession term |
End of the concession |
Companhia Paulista de Força e Luz ("CPFL Paulista") |
Publicly-quoted corporation |
Direct |
Interior of São Paulo |
234 |
4,267 |
30 years |
November 2027 |
Companhia Piratininga de Força e Luz ("CPFL Piratininga") |
Publicly-quoted corporation |
Direct |
Interior and coast of São Paulo |
27 |
1,684 |
30 years |
October 2028 |
Rio Grande Energia S.A. ("RGE") |
Publicly-quoted corporation |
Direct |
Interior of Rio Grande do Sul |
255 |
1,455 |
30 years |
November 2027 |
Companhia Luz e Força Santa Cruz ("CPFL Santa Cruz") |
Private corporation |
Direct |
Interior of São Paulo and Paraná |
27 |
208 |
30 years |
July 2045 |
Companhia Leste Paulista de Energia ("CPFL Leste Paulista") |
Private corporation |
Direct |
Interior of São Paulo |
7 |
57 |
30 years |
July 2045 |
Companhia Jaguari de Energia ("CPFL Jaguari") |
Private corporation |
Direct |
Interior of São Paulo |
2 |
40 |
30 years |
July 2045 |
Companhia Sul Paulista de Energia ("CPFL Sul Paulista") |
Private corporation |
Direct |
Interior of São Paulo |
5 |
84 |
30 years |
July 2045 |
Companhia Luz e Força de Mococa ("CPFL Mococa") |
Private corporation |
Direct |
Interior of São Paulo and Minas Gerais |
4 |
46 |
30 years |
July 2045 |
Energy generation (conventional and renewable sources) |
Company Type |
Equity Interest |
Location (State) |
Number of plants / type of energy |
Installed capacity | |
Total |
CPFL participation | |||||
CPFL Geração de Energia S.A. ("CPFL Geração") |
Publicly-quoted corporation |
Direct |
São Paulo and Goiás |
1 Hydroelectric, 4 SHPPs (a) and 1 Thermal |
715 MW |
715 MW |
CERAN - Companhia Energética Rio das Antas ("CERAN") |
Private corporation |
Indirect |
Rio Grande do Sul |
3 Hydroelectric |
360 MW |
234 MW |
Foz do Chapecó Energia S.A. ("Foz do Chapecó") (b) |
Private corporation |
Indirect |
Santa Catarina and |
1 Hydroelectric |
855 MW |
436 MW |
Campos Novos Energia S.A. ("ENERCAN") |
Private corporation |
Indirect |
Santa Catarina |
1 Hydroelectric |
880 MW |
429 MW |
BAESA - Energética Barra Grande S.A. ("BAESA") |
Publicly-quoted corporation |
Indirect |
Santa Catarina and |
1 Hydroelectric |
690 MW |
173 MW |
Centrais Elétricas da Paraíba S.A. ("EPASA") |
Private corporation |
Indirect |
Paraíba |
2 Thermals |
342 MW |
182 MW |
Paulista Lajeado Energia S.A. ("Paulista Lajeado") |
Private corporation |
Indirect |
Tocantins |
1 Hydroelectric |
903 MW |
63 MW |
CPFL Energias Renováveis S.A. ("CPFL Renováveis") |
Publicly-quoted corporation |
Indirect |
See Chapter 11.4.2 |
See Chapter 11.4.2 |
See Chapter 11.4.2 |
See Chapter 11.4.2 |
CPFL Centrais Geradoras Ltda ("CPFL Centrais Geradoras") |
Limited company |
Direct |
São Paulo |
6 MHPPs (d) |
4 MW |
4 MW |
Notes:
a) SHPP – Small Hydroelectric Power Plant;
b) The joint venture Chapecoense fully consolidates the interim financial statements of its direct subsidiary, Foz de Chapecó;
c) Paulista Lajeado has a 7% participation in the installed power of Investco S.A. (5.94% share of its capital).
d) MHPP – Micro Hydroelectric Power Plant.
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Energy commercialization and services |
Company Type |
Core activity |
Equity Interest |
CPFL Comercialização Brasil S.A. ("CPFL Brasil") |
Private corporation |
Energy commercialization |
Direct |
Clion Assessoria e Comercialização de Energia Elétrica Ltda. ("CPFL Meridional") |
Limited company |
Commercialization and provision of energy services |
Indirect |
CPFL Comercialização Cone Sul S.A. ("CPFL Cone Sul") |
Private corporation |
Energy commercialization |
Indirect |
CPFL Planalto Ltda. ("CPFL Planalto") |
Limited company |
Energy commercialization |
Direct |
CPFL Brasil Varejista S.A. ("CPFL Brasil Varejista") |
Private corporation |
Energy commercialization |
Indirect |
CPFL Serviços, Equipamentos, Industria e Comércio S.A. ("CPFL Serviços") |
Private corporation |
Manufacturing, commercialization, rental and maintenance of electro-mechanical equipment and service provision |
Direct |
NECT Serviços Administrativos Ltda ("Nect") |
Limited company |
Provision of administrative services |
Direct |
CPFL Atende Centro de Contatos e Atendimento Ltda. ("CPFL Atende") |
Limited company |
Provision of telephone answering services |
Direct |
CPFL Total Serviços Administrativos Ltda. ("CPFL Total") |
Limited company |
Billing and collection services |
Direct |
CPFL Telecom S.A ("CPFL Telecom") |
Private corporation |
Telecommunication services |
Direct |
CPFL Transmissão Piracicaba S.A ("CPFL Transmissão Piracicaba") |
Private corporation |
Electric energy transmission services |
Indirect |
CPFL Eficiência Energética S.A ("CPFL ESCO") |
Private corporation |
Management in Energy Efficiency |
Direct |
CPFL Transmissora Morro Agudo S.A ("CPFL Transmissão Morro Agudo") (e) |
Private corporation |
Electric energy transmission services |
Direct |
TI Nect Serviços de Informática Ltda. ("Authi") (f) |
Limited company |
IT services |
Direct |
CPFL GD S.A ("CPFL GD") (g) |
Private corporation |
Electric energy generation services |
Indirect |
Other |
Company Type |
Core activity |
Equity Interest |
CPFL Jaguariúna Participações Ltda. ("CPFL Jaguariúna") |
Limited company |
Venture capital company |
Direct |
CPFL Jaguari de Geração de Energia Ltda. ("Jaguari Geração") |
Limited company |
Venture capital company |
Direct |
Chapecoense Geração S.A. ("Chapecoense") |
Private corporation |
Venture capital company |
Indirect |
Sul Geradora Participações S.A. ("Sul Geradora") |
Private corporation |
Venture capital company |
Indirect |
e) The incorporation of CPFL Transmissora Morro Agudo S.A., subsidiary of CPFL Geração, was approved in January 2015, with the objective of building and operating electric energy transmission concessions, including construction, implementation, operation and maintenance of transmission facilities of the basic network of the Interlinked National System.
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f) In September, 2014 the direct subsidiary TI Nect Serviços de Informática Ltda. (“Authi”), was set up with the objective of providing informatics, information technology maintenance, system update, program development and customization and computer and peripheral equipment maintenance services.
g) The main objective of CPFL GD S.A., incorporated in August 2015 and fully controlled by CPFL Eficiência Energética S.A., is the provision of general consultancy services in the electric energy market and commercialization of assets related to the electric energy generation plants.
3.1) Consolidation of CPFL Renováveis Financial Statements
On June 30, 2016, CPFL Energia indirectly held 51.61% of CPFL Renováveis, through its subsidiary CPFL Geração.
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.
3.2) Presentation of adjusted figures
Since the 1Q14, the presentation of adjusted figures considers similar holdings in each of the assets in which CPFL Energia has a stake. Therefore, the result of adjusted figures already excludes non-controlling shareholders’ interests.
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Consolidated Income Statement - CPFL ENERGIA (IFRS - R$ Million) | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Gross Operating Revenue2 |
6,887 |
8,768 |
-21.5% |
14,168 |
16,173 |
-12.4% |
Net Operating Revenue2 |
4,141 |
4,878 |
-15.1% |
8,174 |
9,937 |
-17.7% |
Cost of Electric Power |
(2,665) |
(3,612) |
-26.2% |
(5,193) |
(7,210) |
-28.0% |
Operating Costs & Expenses |
(1,231) |
(1,247) |
-1.3% |
(2,376) |
(2,299) |
3.4% |
EBIT |
521 |
304 |
71.6% |
1,097 |
944 |
16.1% |
EBITDA3 |
902 |
692 |
30.2% |
1,849 |
1,665 |
11.1% |
Financial Income (Expense) |
(199) |
(187) |
6.7% |
(431) |
(553) |
-22.1% |
Income Before Taxes |
390 |
181 |
115.5% |
798 |
472 |
68.9% |
Net Income |
240 |
90 |
166.1% |
473 |
233 |
103.2% |
Consolidated Income Statement - CPFL ENERGIA (Adjusted - R$ Million)1 | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Gross Operating Revenue2 |
6,831 |
8,726 |
-21.7% |
14,065 |
15,988 |
-12.0% |
Net Operating Revenue2 |
4,089 |
4,834 |
-15.4% |
8,074 |
9,788 |
-17.5% |
Cost of Electric Power |
(2,522) |
(3,370) |
-25.2% |
(4,922) |
(6,727) |
-26.8% |
Operating Costs & Expenses |
(1,213) |
(1,202) |
1.0% |
(2,337) |
(2,307) |
1.3% |
EBIT |
628 |
546 |
15.0% |
1,307 |
1,269 |
3.0% |
EBITDA3 |
901 |
834 |
8.1% |
1,851 |
1,836 |
0.8% |
Financial Income (Expense) |
(198) |
(186) |
6.0% |
(415) |
(471) |
-11.9% |
Income Before Taxes |
430 |
360 |
19.6% |
892 |
799 |
11.7% |
Net Income |
261 |
221 |
18.4% |
528 |
471 |
12.2% |
Notes:
(1) Adjusted figures take into account CPFL’s equivalent stake in each generation project and disregard non-recurring effects. Details about the adjustments in the Adjusted EBITDA and in the Adjusted Net Income are in items 4.5 and 4.7 of this report;
(2) Disregard Construction Revenue, in the amount of R$ 275 million in 2Q16, R$ 285 million in 2Q15, R$ 492 million in 1H16 and R$ 516 million in 1H15;
(3) EBITDA is calculated from the sum of net income, taxes, financial result and depreciation/amortization, according to CVM Instruction no. 527/12.
On November 25, 2014, through Dispatch no. 4,621, Aneel approved the amendment to concession agreements of distribution companies, in order to include a specific clause guaranteeing that the balance remaining of any insufficient payment or reimbursement of tariff due to termination of the concession, for any reason, will be indemnified.
After this change, the Securities and Exchange Commission of Brazil (CVM) approved, on December 9, 2014, through Resolution no. 732, the recognition of assets and liabilities that were previously called “regulatory assets and liabilities” in the financial statements of distribution companies, which are now called “sectorial financial assets and liabilities”.
In 2Q16, it was accounted the total sectoral financial liabilities in the amount of R$ 462 million, compared to the total sectoral financial assets in the amount of R$ 896 million in 2Q15, a variation of R$ 1,358 million. On June 30, 2016, the balance of these sectoral financial assets and liabilities was positive in R$ 130 million (R$ 170 million, excluding the special obligations recorded as the methodology of the 4th Periodical Tariff Review Cycle), compared to a positive balance of R$ 707 million (R$ 737 million, excluding the special obligations recorded as the methodology of the 4th Periodical Tariff Review Cycle) on March 31, 2016.
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4.2) Operating Revenue
Disregarding the revenue from the construction of concession infrastructure, gross operating revenue (IFRS) reached R$ 6,887 million in 2Q16, representing a reduction of 21.5% (R$ 1,881 million). The adjusted gross operating revenue was of R$ 6,831 million in 2Q16, a reduction of 21.7% (R$ 1,894 million).
Net operating revenue (IFRS, disregarding the revenue from the construction of concession infrastructure) reached R$ 4,141 million in 2Q16, registering a reduction of 15.1% (R$ 736 million). The adjusted net operating revenue, disregarding the revenue from the construction of concession infrastructure, amounted to R$ 4,089 million in 2Q16, a reduction of 15.4% (R$ 745 million).
The increase in net operating revenue, already considering revenue eliminations, was mainly caused by the following factors:
· Reduction of revenues in the Distribution segment, in the amount of R$ 779 million (for more details, see item 10.1.1.2);
· Reduction of revenues in the Conventional Generation segment, in the amount of R$ 40 million;
Partially offset by:
· Increase of revenues in the Commercialization and Services segment, in the amount of R$ 50 million;
· Increase of revenues in CPFL Renováveis, in the amount of R$ 24 million.
The cost of electric energy (IFRS), comprising the purchase of electricity for resale and charges for the use of the distribution and transmission system, amounted to R$ 2,665 million in 2Q16, registering a reduction of 26.2% (R$ 947 million). The adjusted cost of electric energy was R$ 2,522 million in 2Q16, a reduction of 25.2% (R$ 848 million).
The factors that explain these variations follow below:
· The cost of electric power purchased for resale (IFRS) in 2Q16 reached R$ 2,314 million, a reduction of 30.1% (R$ 998 million), mainly due to the following non-recurring events:
ü GSF (Generation Scale Factor), in the amount of R$ 140 million in 2Q15;
ü Effect of the strategy put in place for the seasonality of physical guarantee, totaling R$ 61 million in 2Q15 (R$ 60 million in the Conventional Generation segment and R$ 1 million in CPFL Renováveis); the total effect of the strategy put in place for the seasonality of physical guarantee was of R$ 63 million in 2Q15 (R$ 60 million in the Conventional Generation segment and R$ 3 million in CPFL Renováveis), considering that the difference of R$ 2 million of CPFL Renováveis was considered in the Operating Revenue;
ü CPFL Renováveis’ energy purchase for SHPPs, totaling R$ 1 million in 2Q15.
Note: after the GSF renegotiation in 4Q15, the Company has considered the remaining GSF as a recurring effect, and has considered the effects of the strategy put in place for the seasonality of physical guarantee of 2015 as a non-recurring effect, since the effects of seasonality are significantly reduced after the renegotiation of the GSF.
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GSF and Seasonality Effect (Adjusted - R$ Million) | |||||||
|
2Q16 (*) |
1Q16 (*) |
2015 |
4Q15 |
3Q15 |
2Q15 |
2Q15 |
GSF |
|
||||||
Conventional Generation |
(7) |
(10) |
(320) |
(23) |
(48) |
(122) |
(127) |
CPFL Renováveis |
(1) |
(1) |
(54) |
(3) |
(5) |
(18) |
(27) |
Total |
(8) |
(12) |
(374) |
(26) |
(53) |
(140) |
(154) |
|
|
|
|
|
|
| |
Seasonality Effect |
|
|
|
|
|
|
|
Conventional Generation |
- |
- |
89 |
(29) |
(7) |
60 |
65 |
CPFL Renováveis |
- |
- |
4 |
(3) |
(2) |
3 |
7 |
Total |
- |
- |
93 |
(32) |
(9) |
63 |
72 |
Note: (*) As from 2016, both the GSF and the seasonality effect will be treated as recurring items, being part of the business.
In the adjusted figures, that disregard these effects, the cost of electric power purchased for resale in 2Q16 was R$ 2,165 million, representing a reduction of 29.4% (R$ 900 million). The decrease mainly reflects the variations below:
(i) Reduction in the amount of energy purchased in the spot market/PROINFA cost (R$ 65 million), excluding the GSF and the effect of the strategy put in place for the seasonality of physical guarantee (non-recurring effects), due to lower spot prices (in SE/CW, R$ 62.22/MWh in 2Q16 vs. R$ 382.82/MWh in 2Q15; in South, R$ 60.15/MWh in 2Q16 vs. R$ 382.82/MWh in 2Q15);
(ii) Reduction of 29.8% (R$ 763 million) in the cost of energy purchased through auction in the regulated environment and bilateral contracts, due to the reduction of 34.1% in the average purchase price (R$ 167.96/MWh in 2Q16 vs. R$ 254.85/MWh in 2Q15), partially offset by the increase of 6.6% (664 GWh) in the volume of purchased energy;
(iii) Reduction of 24.3% (R$ 162 million) in the cost of energy from Itaipu, due to the reductions of 23.6% in the average purchase price (R$ 199.16/MWh in 2Q16 vs. R$ 260.83/MWh in 2Q15) and of 0.8% (21 GWh) in the volume of purchased energy;
Partially offset by:
(iv) Reduction of 29.2% (R$ 90 million) in PIS and COFINS tax credits (cost reducer), generated from the energy purchase.
· Charges for the use of the transmission and distribution system (IFRS) reached R$ 351 million in 2Q16, an increase of 16.9% (R$ 51 million). In adjusted figures, that take into account the proportionate consolidation of generation assets, sector charges reached R$ 357 million in 2Q16, an increase of 16.8% (R$ 51 million), due to the following factors:
(i) Expense of R$ 71 million in Reserve Energy Charge – EER, paid in 2Q16 and not observed in 2Q15;
(ii) Increase of R$ 11 million in Itaipu transmission charges and charges for connection and usage of the distribution system;
Partially offset by:
(iii) Reduction of 9.4% (R$ 21 million) in basic network charges;
(iv) Reduction of 5.7% (R$ 4 million) in the system service usage charges – ESS, due to the spot price (PLD) reduction;
(v) Increase of 16.7% (R$ 5 million) in PIS and COFINS tax credits (cost reducer), generated from the charges.
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4.4) Operating Costs and Expenses
Operating costs and expenses (IFRS) were R$ 1,231 million in 2Q16, a decrease of 1.3% (R$ 17 million) if compared to 2Q15, R$ 1,247 million. Adjusted operating costs and expenses were R$ 1,213 million in 2Q16, an increase of 1.0% (R$ 12 million), if compared to 2Q15, R$ 1,202 million, due to the following factors:
(i) The adjusted PMSO item, that reached R$ 652 million in 2Q16, compared to R$ 614 million in 2Q15, registering an increase of 6.2% (R$ 38 million);
The table below lists the main variation in PMSO:
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MANAGERIAL ADJUSTMENTS ON PMSO, FOR COMPARISON PURPOSES (in millions of Reais) | ||||
|
2Q16 |
2Q15 |
Variation | |
|
R$ MM |
% | ||
Reported PMSO (IFRS) |
|
|
|
|
Personnel |
(267.2) |
(236.4) |
(30.8) |
13.0% |
Material |
(39.3) |
(34.9) |
(4.3) |
12.4% |
Outsourced Services |
(157.6) |
(134.2) |
(23.4) |
17.5% |
Other Operating Costs/Expenses |
(166.2) |
(216.5) |
50.3 |
(23.2%) |
Allowance for doubtful accounts |
(49.8) |
(41.2) |
(8.6) |
20.9% |
Legal, judicial and indemnities expenses |
(49.6) |
(120.0) |
70.4 |
(58.7%) |
GSF risk premium |
(4.6) |
- |
(4.6) |
- |
Others |
(62.2) |
(55.4) |
(6.9) |
12.4% |
Reported PMSO (IFRS) - (A) |
(630.3) |
(622.0) |
(8.2) |
1.3% |
Proportional Consolidation + Regulatory Assets&Liabilities |
|
|
|
|
Personnel |
6.8 |
5.4 |
|
|
Material |
(32.5) |
(64.0) |
|
|
Outsourced Services |
13.4 |
11.5 |
|
|
Other Operating Costs/Expenses |
(6.0) |
(0.1) |
|
|
Allowance for doubtful accounts |
0.1 |
(0.0) |
0.1 |
- |
Legal, judicial and indemnities expenses |
0.6 |
(5.4) |
6.0 |
- |
GSF risk premium |
(3.1) |
- |
(3.1) |
- |
Others |
(3.5) |
5.3 |
(8.8) |
- |
Total Proportional Consolidation + Regulatory Assets&Liabilities - (B) |
(18.3) |
(47.1) |
28.8 |
(61.1%) |
Non-recurring effects |
|
|
|
|
Contingencies/legal expenses (Other Operating Costs/Expenses) |
- |
(49.8) |
49.8 |
|
Provision for loss property - Biopedra TPP (Other Operating Costs/Expenses) |
- |
(5.7) |
5.7 |
|
(=) Total Non-recurring effects - (C) |
- |
(55.5) |
55.5 |
- |
Adjusted PMSO |
|
|
|
|
Personnel |
(260.4) |
(231.0) |
(29.4) |
12.7% |
Material |
(71.8) |
(98.9) |
27.1 |
(27.4%) |
Outsourced Services |
(144.2) |
(122.6) |
(21.6) |
17.6% |
Other Operating Costs/Expenses |
(175.4) |
(161.1) |
(14.2) |
8.8% |
Allowance for doubtful accounts |
(49.7) |
(41.2) |
(8.5) |
20.7% |
Legal, judicial and indemnities expenses |
(49.0) |
(75.6) |
26.5 |
(35.1%) |
GSF risk premium |
(7.7) |
- |
(7.7) |
- |
Others |
(68.9) |
(44.4) |
(24.5) |
55.2% |
Total adjusted PMSO - (D) = (A) + (B) + (C) |
(651.7) |
(613.7) |
(38.1) |
6.2% |
This variation is explained mainly by the following aspects:
ü Personnel expenses, that recorded an increase of 12.7% (R$ 29 million), mainly due to:
· collective bargaining agreement – wages and benefits (R$ 15 million);
· increase in the Services segment business, due to business expansion of CPFL Serviços, CPFL Atende, Nect and CPFL Eficiencia (R$ 9 million);
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· other effects (R$ 5 million)
ü Out-sourced services expenses, which registered an increase of 17.6% (R$ 22 million), mainly due to increase in the expenses with the maintenance of the power grid, machinery and equipment (R$ 12 million), collection actions (R$ 5 million) and in the Services segment business (R$ 3 million), due to business expansion of CPFL Serviços, CPFL Atende, Nect and CPFL Eficiência;
ü Other operational costs/expenses, that registered an increase of 8.8% (R$ 14 million), mainly due to:
· increase of 20.7% in allowance for doubtful accounts (R$ 9 million), due to deterioration of the macroeconomic scenario and tariff adjustments that occurred in 2015;
· Hydrologic risk premium amortization – GSF in the Generation segment business (Conventional/Renewables) (R$ 8 million)
· increase of 136.2% in operating fines (DIC, FIC, DMIC and DICRI) in the Distribution segment (R$ 6 million);
· increase of 64.5% in assets disposal (R$ 5 million);
· increase of 47.0% in CFURH – Financial Compensation for use of the water (R$ 4 million)
· increase of 12.7% in collection fees expenses (R$ 2 million);
· increase of 18.9% in leases and rentals expenses (R$ 2 million);
· others effects (R$ 5 million)
Partially offset by:
· decrease of 35.1% of legal and court expenses (R$ 27 million).
Partially offset by:
ü Decrease of 27.4% in Material (R$ 27 million), mainly explained by
· In the Conventional Generation segment business, additional material expenses related to the oil acquisition by Epasa (Termonordeste TPP and Termoparaíba TPP), that reduced R$ 36 million in Conventional Generation. The average Unit Variable Cost (CVU) this thermal plant decreased of R$ 426.75/MWh to R$ 272.36/MWh when comparing the same quarters of each year.
Partially offset by:
· In the Distribution segment business, that increased R$ 6 million, mainly due to replacement of the line and grid, machinery and equipment and buildings conservation and maintenance (R$ 3 million);
· increase in Services segment business (R$ 2 million); due to business expansion
(ii) Depreciation and Amortization, which represented an increase of 2.7% (R$ 6 million), are mainly explained by (i) the increase in the Distribution segment business (R$ 3 million) in amortization of intangible distribution infrastructure asset, mainly due to additions to the intangible assets base in the period and (ii) CPFL Renováveis (R$ 3 million) due to depreciation of the projects that started operations in this period.
Partially offset by:
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(iii) Decrease of 31.2% in Intangible of Concession Amortization (R$ 20 million), due to:
ü decrease in the Intangible of Concession balance accounted in the holding company CPFL Energia, due to the renewal of the concessions of the subsidiaries CPFL Santa Cruz, CPFL Leste Paulista, CPFL Sul Paulista, CPFL Jaguari e CPFL Mococa (R$ 10 million);
ü change in accounting practice, due to until December 31, 2015, the intangible assets acquired of Distribution companies and Generation companies, which registered in the CPFL Energia holding and in the CPFL Geração (parent company) were amortized on a straight-line basis or based on the net projected profit curve of the concessionaries, as applicable. As of January 1, 2016, the Company will amortize the intangible assets acquired on a straight-line basis, in all cases (R$ 8 million) and;
ü Others effects (R$ 2 million)
(iv) Decrease of 3.5% (R$ 10 million) in the cost of building the infrastructure of the concession. This item, which reached R$ 217 million in 2Q16, has its counterpart in the “operating revenue”;
(v) Decrease of 14.9% in the Private Pension Fund expenses (R$ 2 million).
In 2Q16, IFRS EBITDA reached R$ 902 million, registering an increase of 30.2% (R$ 209 million). Adjusted EBITDA in 2Q16 totaled R$ 901 million, compared to R$ 834 million in 2Q15, an increase of 8.1% (R$ 68 million).
EBITDA conciliation - IFRS x Adjusted (R$ million) | |||
|
2Q16 |
2Q15 |
Var. |
EBITDA - IFRS (A) |
902 |
692 |
30.2% |
(+) Proportional Consolidation of Generation (B) |
(29) |
(6) |
|
Conventional Generation |
74 |
70 |
|
CPFL Renováveis |
(102) |
(75) |
|
(+) Itaipu Foreign Exchange Variation (C) (*) |
28 |
13 |
|
(+) Non-recurring effects (D) |
- |
133 |
|
GSF and Energy Purchase (CPFL Geração and CPFL Renováveis) |
- |
141 |
|
Seasonality Effect (CPFL Geração and CPFL Renováveis) |
- |
(63) |
|
Labor contingencies |
- |
50 |
|
Provision for asset write-off (Bio Pedra TPP) |
- |
6 |
|
Adjusted EBITDA (A + B + C + D) |
901 |
834 |
8.1% |
Note: (*) In order to better reflect the actual operating cash generation of the distribution segment, we adjust Itaipu foreign exchange variation in the adjusted EBITDA. This effect has its counterpart in the Financial Result, with no effect on Net Income.
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In 2Q16, net financial expense (IFRS) was of R$ 199 million, an increase of 6.7% (R$ 13 million) compared to the net financial expense of R$ 187 million reported in 2Q15. The adjusted net financial expense, considering the proportional consolidation in the segments of conventional and renewable generation, and excluding the effect of the exchange variation in Itaipu’s invoices (negative in R$ 28 million in 2Q16 and in R$ 13 million in 2Q15), was of R$ 198 million, an increase of 6.0% (R$ 11 million).
Financial Result (IFRS - R$ Million) | |||
|
2Q16 |
2Q15 |
Var. |
Financial Revenues |
402 |
329 |
21.9% |
Financial Expenses |
(601) |
(516) |
16.4% |
Financial Result |
(199) |
(187) |
6.7% |
Financial Result (Adjusted - R$ Million) | |||
|
2Q16 |
2Q15 |
Var. |
Revenues |
|||
Income from Financial Investments |
159 |
90 |
76.1% |
Additions and Late Payment Fines |
59 |
52 |
13.6% |
Fiscal Credits Update |
15 |
5 |
179.0% |
Judicial Deposits Update |
9 |
20 |
-53.9% |
Monetary and Foreign Exchange Updates |
47 |
11 |
342.4% |
Adjustment of Expected Cash Flow |
68 |
78 |
-13.2% |
Discount on Purchase of ICMS Credit |
5 |
3 |
61.3% |
Sectoral Financial Assets Update |
7 |
34 |
-77.7% |
PIS and COFINS over Interest on Own Capital |
(1) |
(6) |
-80.4% |
Others |
23 |
14 |
64.0% |
Total |
392 |
302 |
29.9% |
|
|
||
Expenses |
|
|
|
Debt Charges |
(388) |
(372) |
4.5% |
Monetary and Foreign Exchange Updates |
(144) |
(69) |
108.3% |
(-) Capitalized Interest |
12 |
5 |
133.2% |
Sectoral Financial Liabilities Update (*) |
(14) |
2 |
-958.7% |
Use of Public Asset |
(15) |
(19) |
-24.9% |
Others |
(41) |
(35) |
16.8% |
Total |
(589) |
(488) |
20.8% |
|
|
||
Financial Result |
(198) |
(186) |
6.0% |
Note: (*) The effect of Itaipu foreign exchange variation was negative in R$ 28 million in 2Q16 and in R$ 13 million in 2Q15.
The items explaining these variations in adjusted Financial Result are as follows:
· Financial Revenues: in IFRS, an increase of 21.9% (R$ 72 million), from R$ 329 million in 2Q15 to R$ 402 million in 2Q16. In the adjusted figures, considering the proportional consolidation in the segments of conventional and renewable generation, and excluding the effect of the exchange variation in Itaipu’s invoices (negative in R$ 11 million in 2Q15), an increase of 29.9% (R$ 90 million), from R$ 302 million in 2Q15 to R$ 392 million in 2Q16 mainly due to the following factors:
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(i) Increase of 76.1% (R$ 69 million) in the income from financial investments, due to the increases in the average balance of investments and in the average CDI interbank rate;
(ii) Increase of 342.4% (R$ 37 million) in the monetary and foreign exchange updates, due to: (a) the gain of R$ 32 million with the zero-cost collar derivative1; (b) the increase of R$ 4 million in revenues from fines, interest and monetary adjustment relating to installment payments made by consumers; (c) other monetary and foreign exchange updates (R$ 4 million); partially offset by (d) the increase of R$ 3 million in the update of the balance of tariff subsidies, as determined by ANEEL;
(iii) Increase of 179.0% (R$ 10 million) in fiscal credits update;
(iv) Increase of 13.6% (R$ 7 million) in additions and late payment fines;
(v) PIS and COFINS over Interest on Own Capital (R$ 5 million).
(vi) Increase of R$ 11 million in other financial revenues;
Partially offset by:
(vii) Reduction of 77.7% (R$ 26 million) in the sectoral financial assets update;
(viii) Reduction of 53.9% (R$ 11 million) in judicial deposits update;
(ix) Reduction of 13.2% (R$ 10 million) in the adjustment of expected cash flow (monetary update of concession’s financial asset), due to: (a) the lower inflation, with a 0.49% fall in the index (IGP-M index of 2.31% in 2Q15 vs. IPCA index of 1.82% in 2Q16)2; and (b) the reduction in concession’s financial asset observed in the distributors which have gone through the concession renewal process at the end of 2015 (CPFL Santa Cruz, CPFL Leste Paulista, CPFL Sul Paulista, CPFL Jaguari and CPFL Mococa)3.
· Financial Expenses: in IFRS, an increase of 16.4% (R$ 85 million), from R$ 516 million in 2Q15 to R$ 601 million in 2Q16. In adjusted figures, considering the proportional consolidation in the segments of conventional and renewable generation, and excluding the effect of the exchange variation in Itaipu’s invoices (negative in R$ 28 million in 2Q16 and in R$ 2 million in 2Q15), an increase of 20.8% (R$ 101 million), from R$ 488 million in 2Q15 to R$ 589 million in 2Q16, mainly due to the following factors:
(i) Increase of 108.3% (R$ 75 million) in the monetary and foreign exchange updates, due to: (a) the increase of debt charges in foreign currency, with swap to CDI interbank rate (R$ 81 million); partially offset by (b) the mark-to-market positive effect for financial operations under Law 4,131 – non-cash effect (R$ 6 million);
(ii) Increase of 4.5% (R$ 17 million) of debt charges in local currency, reflecting the increase in the average cost of debt;
1 In 2015, subsidiary CPFL Geração contracted US$ denominated put and call options, involving the same financial institution as counterpart, and which on a combined basis are characterized as an operation usually known as zero-cost collar. The contracting of this operation does not involve any kind of speculation, inasmuch as it is aimed at minimizing any negative impacts on future revenues of the joint venture ENERCAN, which has electric energy sale agreements with annual restatement of part of the tariff based on the variation in the US$. In addition, according to Management’s view, the scenario was favorable for contracting this type of financial instrument, considering the high volatility implicit in dollar options and the fact that there was no initial cost for same.
2 In November 2015, through the Resolution (REN) n. 686/2015, ANEEL approved changes in the PRORET (Tariff Regulation Procedures), sub-module 2.3, including the replacement of the IGP-M inflation index by the IPCA inflation index to update the regulatory asset base.
3 In order to calculate the split between the intangible asset and concession’s financial asset, it uses the useful life of assets. The portion of the useful life that occur by the end of the concession is classified as an intangible asset and the residual value is classified as concession’s financial asset, referring to the compensation that the distributor will receive when the assets are reversed to the Grantor.
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(iii) Sectoral financial liabilities update (R$ 16 million);
Partially offset by:
(iv) Reduction of 24.9% (R$ 5 million) in the financial expenses with the Use of Public Asset (UBP);
(v) Reduction of R$ 1 million in other financial expenses.
In 2Q16, net income (IFRS) was R$ 240 million, registering an increase of 166.1% (R$ 150 million). Adjusted net income in 2Q16 totaled R$ 261 million, compared to R$ 221 million in 2Q15, an increase of 18.4% (R$ 41 million).
Net Income conciliation - IFRS x Adjusted (R$ million) | |||
|
2Q16 |
2Q15 |
Var. |
Net Income - IFRS (A) |
240 |
90 |
166.1% |
(+) Proportional Consolidation of Generation (B) |
21 |
35 |
|
Conventional Generation |
(9) |
(10) |
|
CPFL Renováveis |
30 |
45 |
|
(+) Non-recurring effects (C) |
- |
95 |
|
GSF and Energy Purchase (CPFL Geração and CPFL Renováveis) |
- |
99 |
|
Seasonality Effect (CPFL Geração and CPFL Renováveis) |
- |
(42) |
|
Labor contingencies |
- |
33 |
|
Provision for asset write-off (Bio Pedra TPP) |
- |
6 |
|
Adjusted Net Income (A + B + C) |
261 |
221 |
18.4% |
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1) Do not consider mark-to-market effects and borrowing costs.
Indexation after Hedge1 – 2Q15 vs. 2Q16
1) For debt linked to foreign currency (32% of total in 2Q16), swaps are contracted, which convert indexing for CDI;
Net Debt and Leverage in IFRS
Página 21 de 71
In June 30, 2016, financial debt in Pro forma criteria was R$ 17,158 million, an increase of 1.2% in comparison to the same period last year. Find below the debt profile during the last twelve months:
1) Considering mark-to-market effect, borrowing costs and accounting adjustments
Find below CPFL Energia’s financial debt by segment and company, and the debt profile during the last twelve months:
Página 22 de 71
CPFL Energia has always adopted a solid and conservative financial policy. Thus, the Company has used since 2011, a prefunding strategy, in other words, forecasts the cash needs for the next 24 months and anticipates market access on more favorable terms of liquidity and cost. Thus, at the beginning of 2015, CPFL Energia started working in 2016 and 2017 prefunding.
Debt Amortization Schedule in Pro forma criteria (Jun-16)1
1) Considers only the principal debt, including hedge and excluding accrued interests (R$ 462 million in 2Q16);
2) Twelve months (Jul-16 to Jun-17);
The cash position at the end of 2Q16 has coverage ratio of 2.29x the amortizations of the next 12 months, enough to honor all amortization commitments until around the beginning of 2018. The average amortization term, calculated by this schedule, is 3.48 years.
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Indexation1 After Hedge2 Pro forma criteria – 2Q15 vs. 2Q16
1) Considering proportional consolidation of CPFL Renováveis, CERAN, BAESA, ENERCAN, Foz do Chapecó and EPASA;
2) For debt linked to foreign currency (36% of total), swaps are contracted, which convert the indexation to CDI. The debt amount indexed in Interbank Rate (CDI) increased from 70.6% to 72.3%, mainly due to the R$ 708 million borrowed through a syndicated loan by 4,131 Brazilian Law in May 2016.
Gross Debt Cost1 in Pro forma criteria – LTM
1) Adjusted by the proportional consolidation since 2012; Financial debt (+) private pension fund (-) hedge.
In 2Q16, Net Debt Pro forma totaled R$ 11,658 million, a decrease of 15.4% compared to net debt position at the end of 2Q15 in the amount of R$ 13,774 million.
1) Considering proportional consolidation of CPFL Renováveis, CERAN, BAESA, ENERCAN, Foz do Chapecó and EPASA;
2) Adjusted EBITDA in the covenants criteria: adjusted according to equivalent participation of CPFL Energia in each of its subsidiaries, with the inclusion of regulatory assets and liabilities and the historical EBITDA of newly acquired projects.
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In line with the criteria for calculation of financial covenants of loan agreements with financial institutions, net debt is adjusted according to the equivalent participation of CPFL Energia in each of its subsidiaries. Also, include in the calculation of adjusted EBITDA the effects of historic EBITDA of newly acquired projects. Considering that, adjusted net debt totaled R$ 11,658 million and adjusted EBITDA reached R$ 3,764 million, the adjusted Net Debt / adjusted EBITDA at the end of 2Q16 reached 3.10x.
On March 2016, Fitch Ratings affirmed the AA (bra) ratings of CPFL Energia and its subsidiaries. However, the agency changed the outlook from stable to negative. Despite of the Brazilian Sovereign downgrade in May by the agency, the ratings of CPFL Energia were maintained.
At beginning of July, CPFL Energia informed the markets that Camargo Correa S.A., its biggest shareholder, had received a letter agreement from state-owned Chinese company State Grid to acquire its shares. The rating agencies had evaluated the letter agreement as positive, given the credit quality of the Chinese company, but there has had any immediate impacts on corporate and issuances ratings of CPFL Energia. The following table shows the ratings and the outlooks assigned by the agencies.
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Investiments (IFRS - R$ Million) | ||||||
Segment |
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Distribution |
221 |
246 |
-10.0% |
429 |
421 |
2.0% |
Generation - Conventional |
1 |
1 |
43.2% |
4 |
1 |
165.6% |
Generation - Renewable1 |
260 |
129 |
101.6% |
487 |
276 |
76.7% |
Commercialization |
1 |
0 |
194.1% |
2 |
1 |
190.0% |
Services and Others2 |
21 |
7 |
220.0% |
28 |
14 |
94.8% |
Total |
504 |
382 |
31.9% |
950 |
713 |
33.2% |
Transmission |
12 |
10 |
19.6% |
16 |
26 |
-39.0% |
Special Obligations |
66 |
52 |
26.7% |
110 |
87 |
26.9% |
Notes:
1) The difference of R$ 5 million negative in the 2Q16 and R$ 3 million positive in 1H16 is listed at the line “Non- cash transactions and other information” from CPFL Renováveis ITR (Note 30);
2) Others – all type of investment that is not included on the segments listed above.
In 2Q16, R$ 504 million were invested in business maintenance and expansion, 31.9% higher than 2Q15. In addition, we invested R$ 12 million in the quarter in the construction of CPFL Transmissão’s transmission lines and, according to the requirements of IFRIC 12, it was recorded as “Financial Asset of Concession” in non-current assets. CPFL Energia also booked R$ 66 million in Special Obligations in the quarter among other items financed by the consumer.
Listed below are some of the main investments made by CPFL Energia in 2Q16, in each segment:
(i) DisCos:
a. Strengthening and expansion the electric system;
b. Electricity system maintenance and improvements;
c. Operational infrastructure;
d. Upgrade of management and operational support systems;
e. Customer help services;
f. Research and development programs.
(ii) GenCos:
a. Campo dos Ventos II Wind Complex;
b. São Benedito Wind Complex;
c. Pedra Cheirosa Wind Complex;
d. Mata Velha SHPP.
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In December 2015, the Board of Executive Officers' proposal for the 2016 Annual Budget and the 2017/2020 Multiannual Plan for CPFL Energia and its subsidiaries, which was previously discussed by the Budget and Corporate Finance Commission.
Projected Capital Expenditures in R$ thousand
Notes:
(i) Constant currency;
(ii) Disregard investments in Special Obligations on Distribution segment (among other items financed by consumers);
(iii) IFRS – Considers 100% on CPFL Renováveis and Ceran; Pro forma – Considers proportional stakes in the generation projects.
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CPFL Energia, which has a current free float of 31.9% (up to June 30, 2016), is listed on both the BM&FBOVESPA (Novo Mercado) and the NYSE (ADR Level III), segments with the highest levels of corporate governance
BM&FBovespa |
NYSE | ||||||
Date |
CPFE3 (R$) |
IEE |
IBOV |
Date |
CPL (US$) |
DJBr20 |
Dow Jones |
06/30/2015 |
R$ 18.58 |
30,253 |
53,080 |
06/30/2015 |
$ 12.13 |
17,771 |
17,620 |
03/31/2016 |
R$ 18.92 |
27,859 |
50,055 |
03/31/2016 |
$ 10.78 |
14,334 |
17,685 |
06/30/2016 |
R$ 20.59 |
30,786 |
51,526 |
06/30/2016 |
$ 12.86 |
15,996 |
17,930 |
QoQ |
8.8% |
10.5% |
2.9% |
QoQ |
19.3% |
11.6% |
1.4% |
YoY |
10.8% |
1.8% |
-2.9% |
YoY |
6.0% |
-10.0% |
1.8% |
On June 30, the price shares closed at R$ 20.59 on BM&FBovespa and $ 12.86 on NYSE. In 2Q16, the shares’ prices valued 8.8 % and 19.3 %, respectively. Year over year, the shares devalued 10.8% on BM&FBovespa and 6.0% on NYSE.
The daily trading volume in 2Q16 averaged R$ 56.7 million, of which R$ 36 million on the BM&FBOVESPA and R$ 20.7 million on the NYSE, 31.8 % up compared to 2Q15. The number of trades on the BM&FBOVESPA increased by 51%, rising from a daily average of 5,407, in 2Q15, to 8,163 in 2Q16.
Note: Considers the sum of the average daily volume on the BM&FBovespa and NYSE
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The corporate governance model adopted by CPFL Energia ("CPFL" or "Company") and its subsidiaries is based on the principles of transparency, fairness, accountability and corporate responsibility.
In 2015, CPFL marked 11 years since being listed on the BM&FBovespa and the New York Stock Exchange (“NYSE”). With more than 100 years of history in Brazil, the Company’s shares are listed on the Novo Mercado Special Listing Segment of the BM&FBovespa with Level III ADRs, a special segment for companies that comply with corporate governance best practices. All CPFL shares are common shares, entitling all shareholders the right to vote with 100% Tag Along rights guaranteed in case of sale of shareholding control.
CPFL’s Management is composed of the Board of Directors (Board), its decision-making authority, and the Board of Executive Officers, its executive body. The Board is responsible for defining the strategic business direction of the holding company and subsidiaries, and is composed of 7 external members, one of whom an Independent Member, whose term of office is 1 year and who are eligible for reelection.
The Bylaws of the Board establishes the procedures for evaluating the directors, under the leadership of the Chairman, their main duties and rights.
The Board set up three advisory committees (Management Processes Risks and Sustainability, People Management and Related Parties), which support the Board in its decisions and monitor relevant and strategic themes, such as people and risk management, sustainability and the surveillance of internal audits, analysis of transactions with Parties Related to controlling shareholders and handling of incidents recorded through complaint hotlines and ethical conduct channels.
To ensure that best practices permeate all activities of the Board and its relations with the Company while the Board members are focused on their decision-making functions, in 2006 the Company created the Board of Directors Advisory Council, which reports directly and solely to the Chairman of the Board. In 2015, the name was changed from Board of Directors Advisory Council to Corporate Governance Advisory Council.
This Advisory Council acts as the guardian of best practices to ensure compliance with Governance Guidelines; speed of communication between the Company and its Board members; quality and timeliness of information; integration and evaluation of members of the Board of Directors and the Audit Board; constant improvement of governance processes and institutional relations with government authorities and entities.
The composition of Executive board, in line with governance guidelines, was changed on May 2015. The change in Company’s Bylaws, which were approved at the General Shareholders Meeting held on April 29, 2015, created a new vice President position subordinated to the CEO, who passes 5 (five) to 6 (six) Executive vice Presidents, standing in line with our succession program. The mandates of the Executive vice Presidents endures two years, with a re election possibility, besides they sit on the Boards of the subsidiaries. Therefore, the changes in CPFL Energia aims to create the bases required to consolidate as the leader of Brazilian power Market, always seeking the efficient management of its assets and sustainable opportunities to create value for its stakeholders.
CPFL has a permanent Audit Board, made up of 5 members, that also exercises the duties of the Audit Committee, in line with Sarbanes-Oxley law (SOX) rulings applicable to foreign companies listed on U.S. stock exchanges.
The guidelines and documents on corporate governance are available at the Investor Relations website http://www.cpfl.com.br/ri.
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CPFL Energia is a holding company, whose results depend directly on those of its subsidiaries.
Notes:
(1) Controlling shareholders;
(2) Includes the 0,5% stake of Caixa de Previdência dos Funcionários do Banco do Brasil;
(3) Includes the 0.2% stake of Petros e Sistel pension funds;
(4) % of bound shares by the controlling shareholders
(5) 51.54% stake of the availability of power and energy of Serra da Mesa HPP, regarding the Power Purchase Agreement between CPFL Geração and Furnas.
Proposal of acquisition of Camargo Corrêa S.A. equity interest
On 1 July 2016, CPFL Energia issued material fact to the market stating that, as of that date, “CPFL Energia S.A. (“CPFL Energia”), in compliance with the provisions of article 157, paragraph 4 of Law No. 6,404/76 (“Corporation Law”), and Brazilian Securities Commission (“CVM”) Ruling No. 358/2002, informs to its shareholders and to the market at large that received today from its controlling shareholder Camargo Corrêa S.A. (“CCSA”) a communication about the proposal received from State Grid International Development Limited. (“Buyer”) to the acquisition of the totality of its CPFL Energia’s bound shares, as established in CPFL Energia’s Shareholders Agreement signed in March 22, 2002 and its amendments (“Shareholders Agreement”). Find below the transcription of the notification received by the Company: Camargo Corrêa S.A (“CCSA”) comes, through this communication, inform you that received and accepted today a proposal (“Proposal”) sent by State Grid International Development Limited. (“Buyer”) to acquire the totality of its CPFL Energia’s bound shares as established in CPFL Energia Shareholders Agreement signed in March 22, 2002 and its amendments (“Shareholders Agreement”). In this sense, CCSA signed today a binding letter agreement (“Letter Agreement”) with the Buyer, targeting the signature of a Share Purchase Agreement (“Share Purchase Agreement”) related to the direct or indirect acquisition, by one or more of the buyer’s Brazilian subsidiaries of 234,086,204 shares of
Página 31 de 71
CPFL Energia, owned by ESC Energia S.A., CCSA subsidiary, which are bounded to the Shareholders Agreement and represent approximately 23% of CPFL Energia capital (“Transaction”). The acquisition price is R$ 25.00 (twenty-five reais) for each share of CPFL Energia, subject to the adjustments foreseen in the Transaction documents (“Price per Share”). CCSA was communicated that, by the means and facts of the Transaction, the amount attributed by the Buyer to the shares of CPFL Energias Renováveis S.A., owned directly or indirectly by CPFL Energia is R$ 12.20 per share. The signing of the Share Purchase Agreement will happen after the conclusion of a confirmatory due diligence to be conducted by the Buyer at CPFL Energia and its subsidiaries. The effective conclusion of the transaction will happen after all the necessary approvals by the proper public authorities, including Brazilian antitrust agency (“CADE”) and the National electricity regulatory agency (“ANEEL”). After the effective signing of the Share Purchase Agreement, it will start to count the term to the other participants of CPFL Energia Shareholders Agreement to exercise its right of first refusal to acquire the totality of shares related to the Transaction or, otherwise, opt to be a part of the Transaction and sell together of CCSA the totality of the shares bounded to CPFL Energia Shareholders Agreement for the same Price per Share and the same conditions offered to CCSA by the Buyer. CCSA will inform you about any further relevant developments related to the Transaction.”
Acquisition of AES SUL Distributor
On 16 June 2016, CPFL Energia issued material fact to the market stating that, as of that date, “CPFL Energia S.A. (“CPFL Energia”), in compliance with the provisions of article 157, paragraph 4 of Law No. 6,404/76 (“Corporation Law”), and Brazilian Securities Commission (“CVM”) Ruling No. 358/2002, informs to its shareholders and to the market at large that it has executed, yesterday, with AES Guaíba II Empreendimentos Ltda., as seller (“AES Guaíba”), and with The AES Corporation, as guarantor, a Share Purchase and Sale Agreement that provides for the acquisition by CPFL Energia of the totality of the shares issued by AES Sul Distribuidora Gaúcha de Energia S.A. (“AES Sul”, the “Agreement” and the “Transaction”, respectively). For the Transaction, CPFL Energia shall pay to AES Guaíba, on the closing date, the amount of one billion four hundred and three million Reais (R$ 1,403,000,000.00) added of two hundred and ninety five million four hundred and fifty five thousand Reais (R$ 295,455,000.00) regarding the capital increase of AES Sul, effected by AES Guaíba on February 26, 2016, totaling one billion six hundred and ninety eight million four hundred and fifty five thousand Reais (R$ 1,698,455,000.00) (“Total Price”). The Total Price shall be adjusted, in up to forty five (45) days counted as of the closing date, by the working capital and net debt variations (excepted the capital increase variation) of AES Sul between December 31, 2015, and the Transaction’s closing date.
The closing and implementation of the Transaction shall occur once certain conditions precedent usual in similar transactions are verified, as determined by the Agreement, among which, the previous approval of Agência Nacional de Energia Elétrica – ANEEL, of the Conselho Administrativo de Defesa Econômica – CADE, and other third parties, including AES Sul’s creditors. CPFL Energia also informs that the Transaction constitutes a material investment for purposes of Article 256, I, of the Corporation Law, so an extraordinary shareholders’ meeting of CPFL Energia shall be timely summoned to approve the Transaction by its shareholders. Such extraordinary shareholders’ meeting shall take place before the closing date. It should be emphasized that CPFL Energia’s controlling shareholders have committed to vote favorably to the approval of the Transaction in such extraordinary shareholders’ meeting. On the other hand, the Transaction does not suit in the requirements and parameters provided for in Article 256, II, of the Corporation law and, therefore, shall not grant the withdrawal right to the shareholders of CPFL Energia. The necessary documentation for the shareholders of CPFL Energia to decide regarding the previous approval of the Transaction, including the appraisal report, per determined by Article 256, paragraph 1st of the Corporation Law, shall be timely disclosed to CPFL Energia’s shareholders and to the market. AES Sul acts as an electric energy distributor in the State of Rio Grande do Sul and has the monopoly to distribute energy to the captive market of 118 cities of such State.“
Página 32 de 71
AES Sul meets 1.31 million client, with an area of 99,512 km ², has 7,241 GWh consumption, have 65000 km on distribution network deadline for award winning in 11/6/2027 and the next rate review in 04/2018. The CPFL Energia holds market share of 12.3% of the national market of distribution, with its market share in this market will reach 14.3%, to meet 382 of the 497 municipalities of Rio Grande do Sul. Finally, the CPFL Energia will keep the market informed of subsequent facts related to the transaction.
Página 33 de 71
Consolidated Income Statement - Distribution (Pro-forma - R$ Million) | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Gross Operating Revenue (IFRS)(1) |
5,876 |
7,823 |
-24.9% |
12,256 |
14,249 |
-14.0% |
Net Operating Revenue (IFRS)(1) |
3,231 |
4,025 |
-19.7% |
6,453 |
8,695 |
-25.8% |
Cost of Electric Power |
(2,322) |
(3,245) |
-28.4% |
(4,545) |
(6,440) |
-29.4% |
Operating Costs & Expenses |
(917) |
(919) |
-0.2% |
(1,751) |
(1,652) |
6.0% |
EBIT |
261 |
136 |
91.8% |
640 |
603 |
6.1% |
EBITDA (IFRS)(2) |
386 |
259 |
49.3% |
890 |
844 |
5.5% |
Adjusted EBITDA(3) |
415 |
322 |
28.8% |
921 |
865 |
6.4% |
Financial Income (Expense) |
(1) |
28 |
-101.8% |
(5) |
(129) |
-96.2% |
Income Before Taxes |
260 |
164 |
58.3% |
635 |
474 |
33.9% |
Net Income (IFRS) |
168 |
116 |
45.0% |
405 |
310 |
30.4% |
Adjusted Net Income(4) |
168 |
149 |
13.0% |
405 |
363 |
11.5% |
Notes:
(1) Excludes Construction Revenue;
(2) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization, as CVM Instruction no. 527/12;
(3) Adjusted EBITDA, besides the items mentioned above, excludes non-recurring effects and the exchange variation in Itaipu invoices (negative effect of R$ 28 million in 2Q16 compared to a negative effect of R$ 13 million in 2Q15);
(4) Adjusted Net Income excludes the non-recurring effects;
(5) The distributors’ financial performance tables are attached to this report in item 11.12.
On November 25, 2014, through Dispatch no. 4,621, Aneel approved the amendment to concession agreements of distribution companies, in order to include a specific clause guaranteeing that the balance remaining of any insufficient payment or reimbursement of tariff due to termination of the concession, for any reason, will be indemnified.
After this change, the Brazilian Securities and Exchange Commission (CVM) approved, in December 2014, through Deliberation no. 732, the recognition of assets and liabilities that were previously called “regulatory assets and liabilities” in the financial statements of the electric energy distributors, which are now called “sectoral financial assets and liabilities”.
In 2Q16, the total sectoral financial liabilities accounted for R$ 462 million, compared to an amount of sectoral financial assets of R$ 896 million in 2Q15, a variation of R$ 1,358 million. On June 30, 2016, the balance of sectoral financial assets and liabilities was positive in R$ 130 million (R$ 170 million, excluding the amount related to special obligations recorded according to the methodology of the 4th Cycle of Tariff Review), compared to a positive balance of R$ 707 million (R$ 737 million, excluding the amount related to special obligations recorded according to the methodology of the 4th Cycle of Tariff Review) on March 31, 2016.
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 amounted to R$ 5,876 million in 2Q16, a decrease of 24.9% (R$ 1,947 million), due to the following factors:
Página 34 de 71
· Variation of R$ 1,358 million in the Sectoral Financial Assets and Liabilities, from an asset of R$ 896 million in 2Q15 to a liability of R$ 462 million in 2Q16;
· Variation of R$ 398 million in Short-term Electric Energy;
· Decrease of 3.5% (R$ 217 million) in the revenue with energy sale (captive + free clients), due to the reduction of 2.0% in the sales volume within the concession area and the positive average tariff adjustment in the distribution companies for the period between 2Q15 and 2Q16 (due to the annual tariff readjustments);
Partially offset by:
· Increase of R$ 14 million in Other Revenues and Income; and
· Increase of R$ 12 million in tariff subsidies (CDE resources), mainly discounts in TUSD (for special consumers) and in low-income tariffs, following tariff readjustment.
The adjusted gross operational revenue, which excludes the effect of the exchange variation in Itaipu invoices over the sectoral financial assets and liabilities, reached R$ 5,904 million, a decrease of 24.7% (R$ 1,932 million) if compared to 2Q15.
Deductions from the gross operating revenue were R$ 2,645 million in 2Q16, representing a reduction of 30.4% (R$ 1,153 million), due to the following decreases:
· of 96.2% in tariff flags approved by the CCEE (R$ 658 million);
· of 26.8% in the CDE sector charge (R$ 305 million), due to the adoption of new CDE quotas (System Usage and Energy), in lower amount than the recorded in 2015, partially offset by the inclusion of CDE charges in order to cover ACR Account loans as of each disco´s 2015 tariff event;
· of 24.3% in PIS and COFINS taxes (R$ 174 million);
· of 1.5% in ICMS tax (R$ 18 million);
· of 7.9% in the R&D and Energy Efficiency Program (R$ 3 million);
Partially offset by the increase:
· of 19.2% in the PROINFA (R$ 5 million); and
· of 11.6% in other charges (R$ 0.5 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), net operating revenue (IFRS) reached R$ 3,231 million in 2Q16, representing a reduction of 19.7% (R$ 794 million). Adjusted net operating revenue, which excludes non-recurring effects and the exchange variation in Itaipu invoices, reached R$ 3,260 million, a decrease of 19.3% (R$ 779 million).
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$ 2,322 million in 2Q16, representing a decrease of 28.4% (R$ 923 million):
· The cost of electric power purchased for resale was R$ 1,995 million in 2Q16, representing a reduction of 32.8% (R$ 974 million), due to the following factors:
(i) Decrease of 32.7% (R$ 787 million) in the cost of energy purchased in the regulated environment and bilateral contracts, mainly due to the reduction of 35.2% in the average purchase price (from R$ 256.97/MWh in 2Q15 to R$ 166.51/MWh in 2Q16), despite the 3.9% increase (364 GWh) in the volume of purchased energy;
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(ii) Decrease of 24.3% (R$ 162 million) in the cost of energy from Itaipu, mainly due to the 23.6% decrease in the average purchase price (from R$ 260.83/MWh in 2Q15 to R$ 199.16/MWh in 2Q16) and by the reduction of 0.8% (21 GWh) in the volume of purchased energy;
(iii) Reduction of 62.8% (R$ 124 million) in the cost of energy purchased in the short term and Proinfa, mainly due to the reductions of 42.4% in the volume of purchased energy (225 GWh) and of average PLD (from R$ 382.82/MWh in 2Q15 to R$ 62.22/MWh in 2Q16, in the Southeast/Midwest submarket, and from R$ 382.82/MWh in 2Q15 to R$ 60.15/MWh in 2Q16, in the South submarket), partially offset by the 52.5% increase in the average purchase price (from R$ 234.54/MWh in 2Q15 to R$ 357.56/MWh in 2Q16);
Partially offset by:
(iv) Reduction of 32.8% (R$ 99 million) in PIS and COFINS tax credits (cost reducer), generated from the energy purchase.
· Charges for the use of the transmission and distribution system reached R$ 328 million in 2Q16, an increase of 18.3% (R$ 51 million) increase, due to the following factors:
(i) Accounting of the energy reserve charges – EER in 2Q16, in the amount of R$ 71 million (not observed in 2Q15);
(ii) Increase of 30.7% (R$ 5 million) in the connection and use of the distribution system charges;
(iii) Increase of 25.5% (R$ 3 million) in Itaipu transmission charges;
Partially offset by:
(iv) Reduction of 9.1% (R$ 19 million) in the basic network charges;
(v) Decrease of 5.7% in the system service usage charges – ESS (R$ 4 million), due to the reduction in the PLD; and
(vi) Decrease of 18.3% (R$ 5 million) in PIS and COFINS tax credits (cost reducer), generated from the charges.
Operating costs and expenses were R$ 917 million in 2Q16 compared to R$ 919 million in 2Q15, a decrease of 0.2% (R$ 2 million), due to the following factors:
(i) Decrease of 2.2% (R$ 6 million) in the cost of building the infrastructure of the concession. This item, which reached R$ 269 million in 2Q16, does not affect results and has its counterpart in the “operating revenue”;
(ii) Reduction of 16.3% (R$ 3 million) in the Private Pension Fund item;
Partially offset by:
(iii) Increase of 0.8% in PMSO (R$ 4 million), which reached R$ 509 million in 2Q16, compared to R$ 505 million in 2Q15. This variation is due to the following factors:
ü Personnel expenses, which registered an increase of 5.5% (R$ 9 million), mainly due to the effects of the Collective Bargaining Agreement;
ü Material expenses, which registered an increase of 31.0% (R$ 7 million), mainly due to replacement of materials for the maintenance of the power grid (R$ 3 million), purchase of materials for maintenance of the fleet (R$ 3 million), and others (R$ 1 million);
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ü Outsourced services expenses, which registered an increase of 30.4% (R$ 37 million), mainly due to the increases in expenses with the maintenance of the power grid (R$ 12 million), collection actions (R$ 5 million), tree pruning (R$ 3 million), meter reading and use (R$ 2 million), hardware/software maintenance (R$ 2 million), bill delivery and collection (R$ 1 million), and other outsourced services (R$ 11 million);
ü Other operating costs/expenses, which registered an decrease of 25.3% (R$ 49 million), mainly due to the following factors:
· Decrease of 60.0% (R$ 71 million) in legal, judicial, indemnities and penalties expenses. Disregarding the non-recurring effect recorded in 2Q15, in the amount of R$ 50 million, the reduction would be of 30.7% (R$ 21 million);
· Increase of 20.4% (R$ 8 million) in provision for doubtful accounts, due to the current macroeconomic scenario;
· Increase of 37.2% (R$ 13 million) in other expenses, mainly due to regulatory fines – DIC, FIC, DMIC and DICRI (R$ 6 million), publicity and advertising (R$ 1 million), and other effects (R$ 6 million).
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Reported PMSO (R$ million) | ||||
|
2Q16 |
2Q15 |
Variation | |
|
R$ MM |
% | ||
Reported PMSO (IFRS) |
|
|
|
|
Personnel |
(175.3) |
(166.1) |
(9.1) |
5.5% |
Material |
(29.2) |
(22.3) |
(6.9) |
31.0% |
Outsourced Services |
(159.5) |
(122.3) |
(37.2) |
30.4% |
Other Operating Costs/Expenses |
(145.0) |
(194.0) |
49.1 |
-25.3% |
Legal, judicial and indemnities expenses |
(48.8) |
(40.5) |
(8.3) |
20.4% |
Allowance for doubtful accounts |
(47.0) |
(117.7) |
70.7 |
-60.0% |
Others |
(49.1) |
(35.8) |
(13.3) |
37.2% |
Total Reported PMSO (IFRS) - (A) |
(508.9) |
(504.7) |
(4.2) |
0.8% |
Non-recurring effects |
|
|
|
|
Labor contingencies (Other Operating Costs/Expenses) |
- |
49.8 |
|
|
Total non-recurring effects - (C) |
- |
49.8 |
(49.8) |
- |
Adjusted PMSO |
|
|
|
|
Personnel |
(175.3) |
(166.1) |
(9.1) |
5.5% |
Material |
(29.2) |
(22.3) |
(6.9) |
31.0% |
Outsourced Services |
(159.5) |
(122.3) |
(37.2) |
30.4% |
Other Operating Costs/Expenses |
(145.0) |
(144.2) |
(0.8) |
0.5% |
Legal, judicial and indemnities expenses |
(48.8) |
(40.5) |
(8.3) |
20.4% |
Allowance for doubtful accounts |
(47.0) |
(67.9) |
20.9 |
-30.7% |
Others |
(49.1) |
(35.8) |
(13.3) |
37.2% |
Total PMSO |
(508.9) |
(454.9) |
(54.0) |
11.9% |
(iv) Increase of 2.2% (R$ 3 million) in the Depreciation and Amortization item.
EBITDA (IFRS) totaled R$ 386 million in 2Q16, registering an increase of 49.3% (R$ 127 million). Adjusted EBITDA, which excludes non-recurring effects and the exchange variation in Itaipu invoices, reached R$ 415 million, representing an increase of 28.8% (R$ 93 million).
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EBITDA Conciliation - IFRS x Adjusted (R$ million) | |||
|
2Q16 |
2Q15 |
Var. |
EBITDA - IFRS (A) |
386 |
259 |
49.3% |
Exchange variation in Itaipu invoices (B) |
28 |
13 |
|
(+) Non recurring effects (C) |
- |
50 |
|
Labor contingencies |
- |
50 |
|
Adjusted EBITDA (A + B + C) |
415 |
322 |
28.8% |
In 2Q16, the net financial result (IFRS) recorded a net financial expense of R$ 1 million, compared to a net financial revenue of R$ 28 million in 2Q15. The adjusted net financial result, which disregard the effects of exchange variation in Itaipu invoices, recorded a net financial expense of R$ 29 million, compared to a net financial revenue of R$ 15 million in 2Q15.
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Note: The effect of exchange variation in Itaipu invoices was negative in R$ 28 million in 2Q16 and in R$ 13 million in 2Q15.
The items explaining these changes are as follows:
· Financial Revenue: in IFRS, increase of 11.9% (R$ 30 million), from R$ 252 million in 2Q15 to R$ 282 million in 2Q16. In adjusted figures, which disregard the effects of exchange variation in Itaipu invoices, there was an increase of 16.8% (R$ 41 million), mainly due to the following factors:
(i) Increase of 171.4% (R$ 58 million) in the income from financial investments, due to the increases in the average balance of investments and in the average CDI interbank rate;
(ii) Increase of 193.5% in adjustments for inflation of tax credits (R$ 7 million);
(iii) Increase of 11.5% (R$ 6 million) in late payment interest and fines, due to the increase in the tariff;
(iv) Positive effect in PIS and COFINS on financial revenues (R$ 3 million), due to reversal of the accumulated balance of deferred PIS and COFINS (on the concession’s financial asset) recorded between July, 2015 and June, 2016, based on a legal opinion;
(v) Increase of 61.3% in discount on purchase of ICMS credit (R$ 2 million);
(vi) Increase of 7.1% (R$ 1 million) in adjustments for inflation and exchange rate changes, due to: (a) the increase of R$ 4 million in revenues from fines, interest and monetary adjustment relating to installment payments made by consumers; partially offset by (b) the decrease of R$ 3 million in the adjustment of the balance of tariff subsidies, as determined by Aneel;
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(vii) Increase of R$ 11 million in other financial revenues;
Partially offset by:
(viii) Decrease of 77.7% (R$ 26 million) in adjustments of sectoral financial asset;
(ix) Reduction of 57.0% (R$ 11 million) in adjustments for inflation of escrow deposits;
(x) Decrease of 13.2% (R$ 10 million) in the adjustment of expected cash flow (adjustments of the concession’s financial asset), due to: (a) lower inflation (IGP-M of 2.31% in 2Q15 vs IPCA of 1.82% in 2Q16)4; and (b) the reduction in concession’s financial asset observed in the distributors which have gone through the concession renewal process at the end of 2015 (CPFL Santa Cruz, CPFL Leste Paulista, CPFL Sul Paulista, CPFL Jaguari, and CPFL Mococa)5;
· Financial Expense: in IFRS, increase of 26.4% (R$ 59 million), from R$ 223 million in 2Q15 to R$ 282 million in 2Q16. In adjusted figures, which disregard the effects of exchange variation in Itaipu invoices, there was an increase of 37.5% (R$ 85 million), mainly due to the following factors:
(i) Increase of 99.4% (R$ 55 million) in adjustments for inflation and exchange rate changes, due to: (a) the increase of debt charges in foreign currency, with swap to CDI interbank rate (R$ 57 million); partially offset by (b) the mark-to-market positive effect for financial operations under Law 4,131 – non-cash effect (R$ 2 million);
(ii) Increase of 11.3% (R$ 17 million) in interest on debt in local currency, reflecting the increase in the average cost of debt;
(iii) Increase R$ 16 million in the adjustments to the sectoral financial liability;
Partially offset by:
(iv) Decrease of 13.9% (R$ 3 million) in other financial expenses.
In 2Q16, Net Income (IFRS) was R$ 168 million, registering an increase of 45.0% (R$ 52 million). Adjusted Net Income, which excludes non-recurring effects, had an increase of 13.0% (R$ 19 million).
Net Income Conciliation - IFRS x Adjusted (R$ million) | |||
|
2Q16 |
2Q15 |
Var. |
Net Income - IFRS (A) |
168 |
116 |
45.0% |
(+) Non recurring effects (B) |
- |
33 |
|
Labor contingencies |
- |
33 |
|
Adjusted Net Income (A + B) |
168 |
149 |
13.0% |
4 In November 2015, through the Resolution (REN) n. 686/2015, ANEEL approved changes in the PRORET (Tariff Regulation Procedures), sub-module 2.3, including the replacement of the IGP-M inflation index by the IPCA inflation index to update the regulatory asset base.
5 In order to calculate the split between the intangible asset and concession’s financial asset, it must be considered the useful life of assets. The portion of the useful life that will occur by the end of the concession is classified as an intangible asset and the residual value is classified as concession’s financial asset, referring to the compensation that the distributor will receive when the assets are reversed to the Grantor.
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* In the Public Hearing 038/2015, held by Aneel, the review dates have been effectively changed to March 22. The date previously used for the adjustments of these distributors was 3 February.
RGE
Aneel Ratifying Resolution No. 2,082 of June 17, 2016 has readjusted electric energy tariffs of RGE by -1.48%, being -0.67% related to the Tariff Readjustment and -0.81% as financial components outside the Tariff Readjustment. This Tariff Readjustment replaces the ETR, which corresponds to an average effect of -7.51% on consumer billings. The impact of the Parcel A (Energy, Transmission Charges and Sector Charges) in the readjustment was of -2.98% and of the Parcel B was of -2.31%. The negative readjustment is explained by: (i) the reduction in CDE quota for 2016, (ii) the lower tariff, in dollars, of the Itaipu agreement, and (iii) the higher energy volume under the quota regime. The new tariffs came into force on June 19, 2016.
CPFL Paulista
On April 5, 2016, through Ratifying Resolution No. 2,056, Aneel readjusted the electricity tariffs of CPFL Paulista by 9.89 % and -0.29% for the Economic Tariff Readjustment (ETR) and 10.17% related to financial components external to the Tariff Readjustment, corresponding to an average effect of 7.55% to be perceived by consumers. The impact of Parcel A (Energy Transmission charges and sector charges) in the readjustment was -2.06% and Parcel B 1.78%. The new tariffs came into force on April 8, 2016.
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* In the Public Hearing 038/2015, held by Aneel, the review dates have been effectively changed to March 22. The date previously used for the adjustments of these distributors was 3 February.
Notes:
1) Management, Operation and Maintenance costs;
2) Annual cost of facilities and properties.
In October 2015 ANEEL finalized the tariff review process of Piratininga. The change positively impacted the calculation methodology of Parcel B. Thus, the portion B increased by 5.31%, compared to the portion B that made up the previous rate (R$ 720 million to R$ 755 million). Compared to the Extraordinary Tariff Review February 2015, the average effect for consumers will be 21.11%, composed as follows: Parcel A (8.10 %), Parcel B (1.36%) and financial components (11.65%).The new tarrifs came into force in Oct, 23 2015.
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CPFL Santa Cruz, CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista and CPFL Mococa
On March 22, 2016, Aneel approved the result of the fourth Periodic Tariff Review of the distributors CPFL Santa Cruz, CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista and CPFL Mococa. Compared to the Extraordinary Tariff Review March 2015, the average effect for consumers was 7.2% for CPFL Santa Cruz, 12.8% for CPFL Sul Paulista, 13.3% for CPFL Leste Paulista, 9.0% for CPFL Mococa and 13.3% to CPFL Jaguari. The details can be found in the table above. The new tariffs came into force on March 22, 2016.
Since September 2015, CPFL Energia concession area, located in São Paulo state, has been suffered by the strongest El Niño in 15 years. By the end of 2015, the region experienced strong rainfalls with winds and lightning above the historical average. In the beginning of 2016, the high level of rains, despite of the lower wind and lightning volumes (if compared to the end of 2015), led to several floods, hampering the access of our teams to prompt reestablishing the electricity supply. Moreover, the lower amount of purges by critical days due to the change in the comparison basis (2015 and 2014 from 2014 and 2013), and the constructions which the Company has been made in the concession area (CPFL Paulista e RGE) impacting SAIDI negatively.
Below we are presenting the results achieved by the distribution companies with regard to the main indicators that measure the quality and reliability of their supply of electric energy. The SAIDI (System Average Interruption Duration Index) measures the average duration, in hours, of interruption per consumer per year. The SAIFI (System Average Interruption Frequency Index) measures the average number of interruptions per consumer per year. The indicators suffered a soft increase due to climate phenomena mentioned above.
SAIDI and SAIFI Indexes1 | ||||||||||||
Distributor |
SAIDI (hours) |
SAIFI (interruptions) | ||||||||||
2012 |
2013 |
2014 |
2015 |
2Q16 |
ANEEL1 |
2012 |
2013 |
2014 |
2015 |
2Q16 |
ANEEL1 | |
CPFL Paulista |
7.48 |
7.14 |
6.93 |
7.76 |
8.35 |
7.92 |
5.37 |
4.73 |
4.89 |
4.89 |
5.14 |
7.06 |
CPFL Piratininga |
5.66 |
7.44 |
6.98 |
7.24 |
7.03 |
7.35 |
4.24 |
4.58 |
4.19 |
4.31 |
3.95 |
6.45 |
RGE |
14.61 |
17.35 |
18.77 |
15.98 |
15.61 |
12.92 |
8.94 |
9.04 |
9.14 |
8.33 |
7.75 |
9.97 |
CPFL Santa Cruz |
5.28 |
6.97 |
6.74 |
8.46 |
7.99 |
9.44 |
5.83 |
6.82 |
5.29 |
6.34 |
5.16 |
9.08 |
CPFL Jaguari |
4.49 |
5.92 |
5.41 |
6.93 |
6.47 |
8.00 |
4.66 |
5.43 |
4.32 |
4.61 |
4.40 |
8.00 |
CPFL Mococa |
5.83 |
4.86 |
6.88 |
7.04 |
6.49 |
10.19 |
5.69 |
4.93 |
7.31 |
5.92 |
5.22 |
8.79 |
CPFL Leste Paulista |
8.26 |
7.58 |
8.48 |
7.92 |
7.39 |
9.79 |
6.57 |
6.33 |
6.30 |
5.67 |
5.04 |
8.49 |
CPFL Sul Paulista |
10.80 |
9.08 |
9.69 |
11.51 |
15.99 |
10.46 |
9.01 |
6.71 |
7.03 |
9.47 |
12.43 |
8.73 |
1) Regulatory Agency (ANEEL) Limits - 2016
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Find below the losses of the distributors during the quarter and the overall performance during the last quarters:
12M Accumulated Losses |
Technical Losses |
Non-Technical Losses |
Total Losses | ||||||||||||
3Q15 |
4Q15 |
1Q16 |
2Q16 |
ANEEL2 |
3Q15 |
4Q15 |
1Q16 |
2Q16 |
ANEEL2 |
3Q15 |
4Q15 |
1Q16 |
2Q16 |
ANEEL2 | |
CPFL Paulista |
6.43% |
6.57% |
6.61% |
6.77% |
6.32% |
2.15% |
2.09% |
2.66% |
2.59% |
1.98% |
8.59% |
8.66% |
9.27% |
9.36% |
8.30% |
CPFL Piratininga |
4.52% |
4.52% |
4.48% |
4.52% |
5.52% |
2.38% |
2.40% |
2.86% |
2.87% |
1.43% |
6.89% |
6.92% |
7.34% |
7.38% |
6.95% |
RGE |
7.81% |
7.70% |
7.61% |
7.50% |
7.28% |
1.70% |
1.63% |
2.01% |
2.66% |
1.87% |
9.51% |
9.33% |
9.61% |
10.16% |
9.15% |
CPFL Santa Cruz |
8.00% |
8.34% |
8.72% |
8.79% |
7.76% |
1.08% |
0.47% |
0.79% |
0.81% |
0.52% |
9.08% |
8.81% |
9.51% |
9.60% |
8.28% |
CPFL Leste Paulista |
3.56% |
3.48% |
3.43% |
3.36% |
4.28% |
0.68% |
0.90% |
1.31% |
1.83% |
0.40% |
4.24% |
4.37% |
4.73% |
5.19% |
4.67% |
CPFL Sul Paulista |
7.61% |
7.69% |
7.79% |
7.75% |
8.17% |
1.95% |
1.90% |
2.56% |
2.62% |
0.57% |
9.56% |
9.58% |
10.35% |
10.36% |
8.74% |
CPFL Jaguari |
8.49% |
8.64% |
8.48% |
8.51% |
7.81% |
2.94% |
3.13% |
3.76% |
2.94% |
1.15% |
11.43% |
11.76% |
12.23% |
11.44% |
8.96% |
CPFL Mococa |
7.29% |
7.42% |
7.66% |
7.83% |
5.94% |
0.32% |
0.22% |
0.91% |
1.24% |
0.20% |
7.61% |
7.64% |
8.57% |
9.07% |
6.15% |
1) The data above are adequate to a better comparison with the regulatory losses trajectory defined by the Regulatory Agency (ANEEL). In CPFL Piratininga and RGE accounts, the high-tension customers are excluded.
2) The values of regulatory targets and trajectories losses are defined in the periodic tariff review (RTP). CPFL Paulista and RGE are on the 3rd PTRC and other distributors are in 4th PTRC.
In 2Q16, the consolidated loss ratio of CPFL Energia increased from 8.84% to 9.01%. This increase can be mainly explained by the following factors:
· The increase in unbilled, mainly due to the effect of the leap year (1 day longer in charge), not yet reflected in higher sales of timing and high temperatures in April;
· Change in the market breakdown, increasing the low-tension customers participation, where the loss level is higher, when we compare to the high-tension customers;
· Increase of energy injected on distribution lines (energy generated by small hydro power plants to be injected in Basic Grid), mainly in the CPFL Paulista concession area, which impacts negatively the technical losses;
· The worse macroeconomic scenario, which increased the number of energy cuts that distributors have been executing in order to avoid delinquency, raised the power theft, affecting negatively the non-technical losses.
In the 1H16, CPFL Energia invested R$ 17.2 million in anti-loss program. Of the total, R$ 1.6 million was designated to operational investments (replacement of meters) and R$ 15.6 million to managerial expenses (removal of irregular connections), totalizing 151.1 thousand inspections.
Find below losses in low voltage market and how was the performance during the quarters:
12-month Accumulated Losses - LV |
Non-technical Losses / LV | ||||
3Q15 |
4Q15 |
1Q16 |
2Q16 |
ANEEL | |
CPFL Paulista |
5.06% |
4.89% |
6.24% |
6.04% |
4.61% |
CPFL Piratininga |
6.50% |
6.51% |
7.81% |
7.79% |
3.90% |
RGE |
4.20% |
4.00% |
4.93% |
6.53% |
4.41% |
CPFL Santa Cruz |
2.10% |
0.91% |
1.53% |
1.57% |
0.98% |
CPFL Jaguari |
2.71% |
3.60% |
5.31% |
7.50% |
1.60% |
CPFL Mococa |
3.37% |
3.29% |
4.49% |
4.61% |
0.98% |
CPFL Leste Paulista |
5.14% |
5.49% |
6.67% |
5.19% |
1.96% |
CPFL Sul Paulista |
0.85% |
0.57% |
2.23% |
2.91% |
0.51% |
1) The data above are adequate to a better comparison with the regulatory losses trajectory defined by the Regulatory Agency (ANEEL). In CPFL Piratininga and RGE accounts, the high-tension customers are excluded.
2) The values of regulatory targets and trajectories losses are defined in the periodic tariff review (RTP). CPFL Paulista and RGE are on the 3rd PTRC and other distributors are in 4th PTRC.
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Consolidated Income Statement - Commercialization and Services (Pro-forma - R$ Million) | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Gross Operating Revenue |
650 |
594 |
9.5% |
1,233 |
1,165 |
5.9% |
Net Operating Revenue |
577 |
528 |
9.3% |
1,095 |
1,031 |
6.3% |
EBITDA (IFRS)(1) |
51 |
54 |
-6.0% |
85 |
88 |
-4.0% |
Net Income (IFRS) |
35 |
40 |
-13.0% |
56 |
69 |
-19.3% |
Note:
(1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization;
Operating Revenue
In 2Q16, gross operating revenue reached R$ 650 million, representing an increase of 9.5% (R$ 57 million), while net operating revenue were up by 9.3% (R$ 49 million) to R$ 577 million.
EBITDA
In 2Q16, EBITDA totaled R$ 51 million, compared to R$ 54 million in 2Q15, a decrease of 6.0%.
Net Income
In 2Q16, net income amounted to R$ 35 million, compared to a net income of R$ 40 million in 2Q15.
Consolidated Income Statement - Conventional Generation - IFRS (Pro-forma - R$ Million) | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Gross Operating Revenue |
271 |
261 |
4.0% |
532 |
515 |
3.2% |
Net Operating Revenue |
247 |
238 |
3.4% |
483 |
471 |
2.6% |
Cost of Electric Power |
(21) |
(52) |
-59.0% |
(47) |
(100) |
-53.2% |
Operating Costs & Expenses |
(58) |
(53) |
8.8% |
(114) |
(103) |
10.2% |
EBITDA(1) |
267 |
230 |
16.1% |
516 |
413 |
24.8% |
Net Income |
122 |
83 |
46.2% |
232 |
122 |
90.4% |
Note: (1) EBITDA is calculated from the sum of net income, taxes, financial result and depreciation/amortization.
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Consolidated Income Statement - Conventional Generation - Adjusted(1) (Pro-forma - R$ Million) | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Gross Operating Revenue |
499 |
536 |
-6.9% |
991 |
1,074 |
-7.7% |
Net Operating Revenue |
454 |
488 |
-6.9% |
902 |
977 |
-7.7% |
Cost of Electric Power |
(33) |
(84) |
-61.2% |
(67) |
(178) |
-62.2% |
Operating Costs & Expenses |
(139) |
(163) |
-15.0% |
(272) |
(361) |
-24.6% |
EBIT |
283 |
241 |
17.5% |
563 |
439 |
28.3% |
EBITDA |
340 |
300 |
13.5% |
677 |
557 |
21.5% |
Adjusted EBITDA(2) |
340 |
362 |
-6.0% |
669 |
682 |
-1.8% |
Financial Income (Expense) |
(119) |
(145) |
-18.0% |
(249) |
(287) |
-13.2% |
Income Before Taxes |
164 |
96 |
71.1% |
313 |
151 |
107.1% |
Net Income |
113 |
73 |
54.3% |
212 |
107 |
98.4% |
Adjusted Net Income(2) |
113 |
114 |
-1.0% |
207 |
189 |
9.6% |
Notes :
(1) Proportional Consolidation of Conventional Generation (Ceran, Baesa, Enercan, Foz do Chapecó and Epasa);
(2) Excluding the non-recurring effects in the EBITDA and in the Net Income.
Operating Revenue
In 2Q16, Gross Operating Revenue, considering the proportional consolidation of Conventional Generation, reached R$ 499 million, a reduction of 6.9% (R$ 37 million).
The variation in the gross operating revenue is mainly due to the following factors:
(i) Reduction in Epasa’s revenues, in the amount of R$ 67 million, reflecting the lower dispatch and lower cost of acquisition of fuel oil;
Partially offset by:
(ii) Revenue increase due to prices adjustments in the PPAs of the Company’s hydroelectric power plants (Semesa, Ceran, Baesa, Enercan, Foz do Chapecó and Jaguari Geração) (R$ 30 million).
The Net Operating Revenue reached R$ 454 million, a reduction of 6.9% (R$ 33 million).
Cost of Electric Power
In 2Q16, the cost of electric power, considering the proportional consolidation of Conventional Generation, reached R$ 33 million, a reduction of 61.2% (R$ 51 million), due mainly to the following factors:
(i) Reduction of 83.2% in electric energy purchased for resale (R$ 53 million), due to:
ü Reduction of R$ 115 million with GSF costs from R$ 122 million in 2Q15 to R$ 7 million in 2Q16. In 2015, prior to the renegotiation of the hydrological risk, the GSF was considered non-recurring effect. After the GSF renegotiation in 4Q15, the Company has considered the remaining GSF as a recurring effect, and has considered the gains with the strategy put in place for the seasonality of physical guarantee of 2015 as a non-recurring effect, since the effects of seasonality are significantly reduced after the renegotiation of the GSF. The remaining GSF costs refer to the Free Market contracts that were not renegotiated.
Partially offset by:
ü Seasonality strategy effect of physical guarantee (cost reducer), of R$ 60 million in 2Q15 - non-recurring effect
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ü Other effects (R$ 2 million).
Partially offset by:
(ii) Increase of 9.6% in transmission and distribution network usage charges (R$ 2 million)
The operating costs and expenses, considering the proportional consolidation of Conventional Generation, reached R$ 139 million in 2Q16, compared to R$ 163 million in 2Q15, a reduction of 15.5% (R$ 24 million), due to the variations in:
(i) The adjusted PMSO item, that reached R$ 81 million in 2Q16, compared to R$ 104 million in 2Q15, registering a reduction of 22.1% (R$ 23 million). The table below lists the main variation in PMSO:
MANAGERIAL ADJUSTMENTS IN PMSO, FOR COMPARISON PURPOSES (R$ million) | ||||
|
2Q16 |
2Q15 |
Variation | |
|
R$ MM |
% | ||
Reported PMSO (IFRS) |
|
|
|
|
Personnel |
(10.2) |
(8.2) |
(2.0) |
24.2% |
Material |
(0.6) |
(0.5) |
(0.1) |
11.6% |
Outsourced Services |
(5.2) |
(4.3) |
(0.9) |
20.9% |
Other Operating Costs/Expenses |
(11.2) |
(8.3) |
(2.9) |
35.6% |
Total Reported PMSO (IFRS) - (A) |
(27.2) |
(21.3) |
(5.9) |
27.6% |
Proportional Consolidation |
|
|
|
|
Personnel |
(3.3) |
(2.7) |
(0.6) |
23.0% |
Material |
(33.1) |
(66.5) |
33.4 |
-50.3% |
Outsourced Services |
(4.1) |
(5.6) |
1.5 |
-27.2% |
Other Operating Costs/Expenses |
(11.2) |
(8.0) |
(3.2) |
39.8% |
Total Proportional Consolidation - (B) |
(51.6) |
(82.8) |
31.2 |
-37.6% |
Adjusted PMSO |
|
|
|
|
Personnel |
(13.5) |
(10.9) |
(2.6) |
23.9% |
Material |
(33.7) |
(67.0) |
33.4 |
-49.8% |
Outsourced Services |
(9.3) |
(9.9) |
0.6 |
-6.4% |
Other Operating Costs/Expenses |
(24.7) |
(16.3) |
(8.4) |
51.9% |
GSF Risk Premium |
(7.7) |
- |
(7.7) |
- |
Others |
(17.0) |
(16.3) |
(0.7) |
4.3% |
Total Adjusted PMSO - (C) = (A) + (B) |
(81.1) |
(104.1) |
23.0 |
-22.1% |
This variation is explained mainly by the following aspects:
ü Decrease of 49.8% in Material (R$ 33 million), mainly explained by additional material expenses related to the oil acquisition by Epasa (Termonordeste TPP and Termoparaíba TPP), that reduced R$ 36 million in Conventional Generation. The average Unit Variable Cost (CVU) this thermal plant decreased of R$ 426.75/MWh to R$ 272.36/MWh when comparing the same quarters of each year.
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ü Reduction of 6.4% in out-sourced services expenses (R$ 1 million)
Partially offset by:
ü Personnel expenses, that which registered an increase of 23.9% (R$ 3 million) and
ü Increase of 51.9% in Other operational costs/expenses (R$ 8 million), mainly due to hydrologic risk premium amortization – GSF (R$ 8 million)
(ii) Decrease of 39.1% in Intangible of Concession Amortization (R$ 2 million)
In 2Q16, EBITDA (considering the proportional consolidation) was R$ 340 million, compared to R$ 300 million in 2Q15, an increase of 13.5% (R$ 41 million).
Considering the proportional consolidation and excluding the non-recurring effects, the Adjusted EBITDA totaled R$ 340 million in 2Q16, compared to R$ 362 million in 2Q15, a reduction of 6.0% (R$ 22 million).
EBITDA Conciliation - IFRS x Adjusted (R$ million) | |||
|
2Q16 |
2Q15 |
Var. |
EBITDA - IFRS (A) |
267 |
230 |
16.1% |
(+) Proportional Consolidation (B) |
74 |
70 |
5.1% |
EBITDA - Proportional Consolidation |
340 |
300 |
13.5% |
(+) Non-recurring effects (C) |
- |
62 |
|
GSF (Generation Scaling Factor) |
- |
122 |
|
Seasonality Effect |
- |
(60) |
|
Adjusted EBITDA (A + B + C) |
340 |
362 |
-6.0% |
Financial Result
In 2Q16, the financial result was a net expense of R$ 119 million, a decrease of 18.0% (R$ 26 million).
Financial Revenues moved from R$ 119 million in 2Q15 to R$ 60 million in 2Q16 (222.3% or R$ 41 million increase)
ü Increase in the monetary and foreign exchange updates (R$ 35 million), due to the gain of R$ 32 million with the zero-cost collar derivative6
ü Increase of 66.1% in the income from financial investments (R$ 10 million), due to the increases in the average balance of investments and in the average CDI interbank rate;
6 In 2015, subsidiary CPFL Geração contracted US$ denominated put and call options, involving the same financial institution as counterpart, and which on a combined basis are characterized as an operation usually known as zero-cost collar. The contracting of this operation does not involve any kind of speculation, inasmuch as it is aimed at minimizing any negative impacts on future revenues of the joint venture ENERCAN, which has electric energy sale agreements with annual restatement of part of the tariff based on the variation in the US$. In addition, according to Management’s view, the scenario was favorable for contracting this type of financial instrument, considering the high volatility implicit in dollar options and the fact that there was no initial cost for same.
Página 49 de 71
Partially offset by:
ü Reduction of R$ 4 million in other effects.
Financial Expenses moved from R$ 163 million in 2Q15 to R$ 178 million in 2Q16 (9.3% or R$ 16 million increase)
ü Increase of 6.3% in debt charges (R$ 8 million)
ü Increase of 54.7% in the monetary and foreign exchange updates (R$ 4 million)
ü Increase of R$ 4 million in other effects.
Net Income
In 2Q16, net income (considering the proportional consolidation) was R$ 113 million, compared to a net income of R$ 73 million in 2Q15.
Considering the proportional consolidation and excluding the non-recurring effects, the Adjusted Net Income totaled R$ 113 million in 2Q16, compared to R$ 117 million in 2Q15, a reduction of 1.0% (R$ 1 million).
Net Income Conciliation - IFRS x Adjusted (R$ million) | |||
|
2Q16 |
2Q15 |
Var. |
Net Income - IFRS (A) |
122 |
83 |
46.2% |
(+) Proportional Consolidation (B) |
(9) |
(10) |
-12.6% |
Net Income - Proportional Consolidation |
113 |
73 |
54.3% |
(+) Non-recurring effects (C) |
- |
41 |
|
GSF (Generation Scaling Factor) |
- |
80 |
|
Seasonality Effect |
- |
(39) |
|
Adjusted Net Income (A + B + C) |
113 |
114 |
-1.0% |
Página 50 de 71
Consolidated Income Statement - CPFL Renováveis (100% Participation - R$ Million) | ||||||
|
2Q16 |
2Q15 |
Var. % |
1H16 |
1H15 |
Var. % |
Gross Operating Revenue (IFRS) |
381 |
314 |
21.0% |
676 |
704 |
-4.0% |
Net Operating Revenue |
360 |
296 |
21.8% |
639 |
660 |
-3.2% |
Cost of Electric Power |
(78) |
(65) |
19.9% |
(111) |
(187) |
-40.5% |
Operating Costs & Expenses |
(206) |
(207) |
-0.4% |
(417) |
(401) |
4.2% |
EBIT |
76 |
24 |
223.3% |
110 |
73 |
51.7% |
EBITDA (IFRS)(1) |
211 |
156 |
35.3% |
379 |
334 |
13.6% |
Financial Income (Expense) |
(128) |
(112) |
14.3% |
(261) |
(219) |
19.4% |
Income Before Taxes |
(52) |
(89) |
-41.2% |
(151) |
(146) |
3.3% |
Net Income (IFRS) |
(62) |
(93) |
-33.7% |
(168) |
(158) |
6.2% |
Note:
(1) Earnings before interest, taxes, depreciation and amortization
Consolidated Income Statement - CPFL Renováveis (Proportional Consolidation - R$ Million)1 | ||||||
|
2Q16 |
2Q15 |
Var. % |
1H16 |
1H15 |
Var. % |
Gross Operating Revenue |
197 |
168 |
17.5% |
350 |
375 |
-6.7% |
Net Operating Revenue |
186 |
158 |
18.3% |
331 |
352 |
-5.9% |
Cost of Electric Power |
(40) |
(39) |
3.4% |
(57) |
(107) |
-47.0% |
Operating Costs & Expenses |
(107) |
(107) |
0.3% |
(215) |
(207) |
4.2% |
EBIT |
39 |
12 |
223.3% |
59 |
38 |
55.9% |
EBITDA |
109 |
80 |
35.3% |
195 |
172 |
13.6% |
Adjusted EBITDA(2) |
109 |
102 |
6.8% |
195 |
222 |
-11.8% |
Financial Income (Expense) |
(66) |
(58) |
14.3% |
(135) |
(113) |
19.4% |
Income Before Taxes |
(27) |
(46) |
-41.2% |
(76) |
(75) |
1.2% |
Net Income |
(32) |
(48) |
-33.7% |
(85) |
(81) |
4.3% |
Adjusted Net Income(2) |
(32) |
(27) |
19.8% |
(85) |
(32) |
166.5% |
Notes:
(1) Considering:
a. Proportional Consolidation of CPFL Renováveis (51.61%);
b. Reclassify part of the GSF effects that are booked as a revenue to “Cost of Electric Power”;
c. Reclassify GSF premium risk booked as a revenue and “Cost of Electric” Power to “Others” in PMSO.
(2) Excluding the non-recurring effects in the EBITDA and in the Net Income.
Comments to CPFL Renováveis’ Financial Statements
In 2Q16, the main events were the operational startup of Mata Velha SHPP in May 2016 (24.0 MW), commercial startup of Campo dos Ventos III wind farm in June 2016 (25.4 MW), and the partial commercial startup of Campo dos Ventos I and Campo dos Ventos V wind farms (29.4 MW).
Operating Revenue
Considering proportional participation, Gross Operating Revenue reached R$ 197 million in 2Q16, representing an increase of 17.5% (R$ 29 million). The increase can be mainly explained by the following factors:
(i) Higher energy volume generated at wind farms due to higher wind speed in 2Q16 (R$ 14 million);
Página 51 de 71
(ii) Higher energy volume generated at Bio Pedra TPP in 2Q16 due to the operational normalization of the turbine damaged in 2Q15 (R$ 5 million)
(iii) Booking of indemnity received from O&M suppliers due to lower availability of machinery compared to what was stipulated in the agreements of the SIIF, Bons Ventos, Rosa dos Ventos and Atlântica wind complexes (R$ 4 million);
(iv) Commercial startup of Mata Velha SHPP in May 2016 (R$ 3 million);
(v) Strategy effect put in place for the seasonality of physical guarantee in 2Q15, which did not happen in 2Q16 (R$ 2 million) - non-recurring effect;
(vi) Commercial startup of Campo dos Ventos III wind farm and revenue of the partial commercial startup of Campo dos Ventos I and Campo dos Ventos V wind farm (R$ 1 million);
Net Operating Revenue reached R$ 186 million, representing an increase of 18.3% (R$ 28 million).
Cost of Electric Power
In 2Q16, the Cost of Electric Power (considering the proportional participation) reached R$ 40 million, representing an increase of 3.4% (R$ 1 million). This increase was a result of the following factors:
(i) Renegotiation of the operational startup of Campo dos Ventos and São Benedito wind farms, generating an indemnity of R$ 14 million in 2Q16;
(ii) Recognition of R$ 6 million in 2Q16 referring to annual and quadrennial ascertainment (ended in June 2016) of the energy sale agreements for Santa Clara and Morro dos Ventos wind farms. Note that generation was impacted by climate events, such as El Niño, which led to lower wind speed in the region where these farms are located;
(iii) Other effects (R$ 3 million);
Partially offset by:
(iv) Lower GSF impact that booked R$ 19 million in 2Q15 – non-recurring event, and booked R$ 1 million in 2Q16 (variation of R$ 18 million). After the GSF renegotiation in 4Q15, the Company has considered the remaining GSF as a recurring effect, and has considered the strategy effect put in place for the seasonality of physical guarantee of 2015, as a non-recurring effect, since the effects of seasonality are significant reduced after the renegotiation of the GSF. The remaining GSF costs refer to the portion of the free market (ACL) contracts that were not renegotiated;
(v) Energy purchase in 2Q15 related to the requirements of the biomass agreements, which did not happen in 2Q16 (R$ 3 million) – non-recurring effect;
(vi) Strategy effect put in place for the seasonality of physical guarantee in 2Q15, which did not happen in 2Q16 (R$ 1 million) - non-recurring effect.
Operating Costs and Expenses
In 2Q16, Operating Costs and Expenses (considering the proportional participation) reached R$ 107 million, practically maintaining the same level of 2Q15. The main variations were:
(i) PMSO item reached R$ 38 million, a decrease of 2.5% (R$ 1 million). The table below presents a summary of the main variations on PMSO:
Página 52 de 71
Managerial Adjustments in PMSO, for comparison purposes (R$ Million) | ||||
|
2Q16 |
2Q15 |
Variation | |
|
R$ MM |
% | ||
Reported PMSO (IFRS) |
|
|
|
|
Personnel |
(20.9) |
(16.7) |
(4.2) |
25.0% |
Material |
(1.1) |
(5.2) |
4.1 |
-78.1% |
Outsourced Services |
(37.4) |
(36.2) |
(1.2) |
3.2% |
Other Operating Costs/Expenses |
(11.9) |
(16.6) |
4.7 |
-28.2% |
Total Reported PMSO (IFRS) |
(71.3) |
(74.8) |
3.5 |
-4.6% |
Adjusted PMSO |
|
|
|
|
Personnel |
(10.8) |
(8.6) |
(2.2) |
25.0% |
Material |
(0.6) |
(2.7) |
2.1 |
-78.1% |
Outsourced Services |
(19.3) |
(18.7) |
(0.6) |
3.2% |
Other Operating Costs/Expenses |
(7.0) |
(2.9) |
(4.1) |
139.7% |
GSF Risk Premium |
(1.6) |
- |
(1.6) |
- |
Others |
(5.4) |
(2.9) |
(2.5) |
84.6% |
Total Adjusted PMSO |
(37.7) |
(32.9) |
(4.7) |
14.3% |
The variation is explained mainly due to the following factors:
ü Personnel: Increase of 25.0% (R$ 2 million), mainly due to the collective bargaining agreement since September 2015, and higher number of employees (from 367 in 2Q15 to 410 in 2Q16);
ü Material/Services: Decrease of 7.1% (R$ 2 million) due to lower expenses with outsourced services related to environmental programs linked to new projects and lower expenses with advocative hours;
ü Others: Mainly related to the payment hydrologic risk premium – GSF7 in 2Q16 (R$ 2 million), which did not happen in 2Q15, besides other effects (R$ 2 million).
(ii) Depreciation and Amortization reached R$ 70 million, an increase of 1.9% (R$ 2 million), due mainly to the operational startup of Mata Velha SHPP, Campo dos Ventos III wind farm in June 2016, and the partial operational startup of Campo dos Ventos I and Campo dos Ventos V wind farms.
EBITDA
In 2Q16, EBITDA (considering the proportional participation) was R$ 109 million, compared to R$ 80 million in 2Q15, an increase of 35.3% (R$ 29 million).
Considering the proportional participation and excluding the non-recurring effects, the Adjusted EBITDA totaled R$ 109 million in 2Q16, compared to R$ 102 million in 2Q15, a decrease of 6.8% (R$ 7 million).
7 Hydrologic risk premium amortization is booked in revenue and “Cost of Electric Power”. In our managerial analysis, these amounts are reclassified to “Others” in PMSO.
Página 53 de 71
EBITDA Conciliation - IFRS vs. Ajusted (R$ Million) | |||
|
2Q16 |
2Q15 |
Var. (%) |
EBITDA - IFRS (A) |
211 |
156 |
35.3% |
(+) Proportional Consolidation (B) |
(102) |
(75) |
35.3% |
EBITDA - Proportional Consolidation (C=A+B) |
109 |
80 |
35.3% |
(+) Non-recurring effects (D) |
- |
21 |
- |
GSF and Energy Purchase for SHPP |
- |
19 |
- |
Seasonality effect - SHPPs |
- |
(3) |
- |
Bio Pedra TPP - Provision |
- |
6 |
|
Ajusted EBITDA (E=C-D) |
109 |
102 |
6.8% |
Financial Result
Considering the proportional participation in 2Q16, Net Financial Result was a net expense of R$ 66 million, representing an increase of 14.3% (R$ 8 million) in comparison to 2Q15.
The main factors that affected the financial income were:
(i) Higher returns from investments, mainly due to new funding added;
(ii) Higher interest rates:
a. Interbank Deposit Rate (DI) from 13.1% p.y. in 2Q15 to 14.1% p.y. in 2Q16 a
b. TJLP from 6.0% p.y. in 2Q15 to 7.5% p.y. in 2Q16;
In the other hand, the main factors that affected the financial expenses were:
(i) Higher accrued interest and monetary update, mainly due to new funding added;
(ii) Higher interest rates (CDI and TJLP);
(iii) Addition of new capacities because of the cost of financing is no longer capitalized after the commercial startup
Net Income
In 2Q16, Net Loss (considering the proportional participation) was R$ 32 million, compared to a Net Loss of R$ 48 million in 2Q15, a decrease of 33.7% (R$ 16 million).
Considering the proportional participation and excluding the non-recurring effects, the Adjusted Net Loss totaled R$ 32 million in 2Q16, compared to an Adjusted Net Loss of R$ 27 million in 2Q15, an increase of 19.8% (R$ 5 million).
Net Income Conciliation1 - IFRS vs. Ajusted (R$ Million) | |||
|
2Q16 |
2Q15 |
Var. (%) |
Net Income - IFRS (A) |
(62) |
(93) |
-33.7% |
(+) Proportional Consolidation (B) |
30 |
45 |
-33.7% |
Net Income - Proportional Consolidation (C=A+B) |
(32) |
(48) |
-33.7% |
(+) Non-recurring effects1 (D) |
- |
21 |
- |
GSF and Energy Purchase for SHPP |
- |
19 |
- |
Seasonality effect - SHPPs |
- |
(3) |
- |
Bio Pedra TPP - Provision |
- |
6 |
|
Ajusted Net Income (E=C-D) |
(32) |
(27) |
19.8% |
Note:
(1) CPFL Renováveis has adopted in its taxes management the presumed profit methodology. For this reason, the amounts of non-recurring effects listed on EBITDA conciliation are the same that are booked above.
Página 54 de 71
On the date of this report, the portfolio of projects of CPFL Renováveis (100% Participation) totaled 1,849 MW of operating installed capacity and 280 MW of capacity under construction. The operational power plants comprises 38 Small Hydroelectric Power Plants – SHPPs (423 MW), 37 Wind Farms (1,105 MW), 8 Biomass Thermoelectric Power Plants (370 MW) and 1 Solar Power Plant (1 MW). Still under construction there are 9 Wind Farms (204 MW) and 1 SHPP (27 MW).
Additionally, CPFL Renováveis owns wind and SHPP projects under development totaling 2,986 MW, representing a total portfolio of 5,115 MW.
The table below illustrates the overall portfolio of assets (100% participation) in operation, construction and development, and its installed capacity on this date:
Mata Velha SHPP
Aneel authorized the PCH Mata Velha commercial operation on May 9, 2016, whose entry into operation was initially scheduled for 1H17. The installed capacity is of 24.0 MW and the assured energy is of 13.1 average-MW. The energy was sold in 16th New Energia Auction (“LEN” in portuguese) held in 2013 (price: R$ 162.42/MWh – June 2016). The energy will be sold in the free market until the beginning of the as the operational startup will begin earlier than the deadline.
Campo dos Ventos Wind Farms and São Benedito Wind Farms
Campo dos Ventos Complex Wind Farms (São Domingos, Ventos de São Martinho e Campo dos Ventos I, III and V) and São Benedito Complex Wind Farms (Ventos de São Benedito, Ventos de Santo Dimas, Santa Mônica e Santa Úrsula), located at Rio Grande do Norte State, are under construction. The first wind turbine started commercial operations in May 2016 and the end of construction is planned for December 2016. The installed capacity is of 231.0 MW and the contracted energy is of 125.2 average-MW. The energy will be sold in the free market.
Until June/16 twelve wind turbines went into commercial operation. The entry of others will be gradual and that the works of completion of these projects are planned for the month of December 2016.
Pedra Cheirosa Wind Farms
Pedra Cheirosa Wind Farms (Pedra Cheirosa I and II), located at Ceará State, are under construction. Start-up is scheduled for 1H18. The installed capacity is of 48.3 MW and the assured energy is of 26.1 average-MW. Energy was sold through long-term contract in the A-5 auction 2013 (price: R$ 138.39/MWh – June 2016).
Página 55 de 71
Boa Vista II SHPP
SHPP Boa Vista II project, located in the state of Minas Gerais, has operations in input prediction from 1Q20. The installed capacity is of 26.5 MW and the assured energy is of 14.8 average-MW. Energy was sold through long-term contracts in the new energy auction A-5 2015 (price: R$ 228.67/MWh – June 2016).
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(R$ thousands)
Consolidated - IFRS | ||||||||
|
|
2Q16 |
2Q15 |
Variation |
|
1H16 |
1H15 |
Variation |
OPERATING REVENUES |
|
|||||||
Electricity Sales to Final Customers |
|
5,844,986 |
5,945,120 |
-1.7% |
12,308,064 |
11,211,844 |
9.8% | |
Electricity Sales to Distributors |
|
639,961 |
1,062,761 |
-39.8% |
1,388,217 |
1,919,223 |
-27.7% | |
Revenue from building the infrastructure |
|
274,716 |
284,912 |
-3.6% |
491,850 |
515,720 |
-4.6% | |
Sectorial financial assets and liabilities |
|
(461,979) |
895,571 |
-151.6% |
(1,194,232) |
1,584,155 |
-175.4% | |
Other Operating Revenues |
|
864,071 |
864,647 |
-0.1% |
1,666,123 |
1,457,947 |
14.3% | |
|
7,161,755 |
9,053,011 |
-20.9% |
|
14,660,022 |
16,688,888 |
-12.2% | |
|
||||||||
DEDUCTIONS FROM OPERATING REVENUES |
|
(2,745,673) |
(3,890,462) |
-29.4% |
(5,994,551) |
(6,236,271) |
-3.9% | |
NET OPERATING REVENUES |
|
4,416,082 |
5,162,549 |
-14.5% |
|
8,665,472 |
10,452,617 |
-17.1% |
|
||||||||
COST OF ELECTRIC ENERGY SERVICES |
|
|
||||||
Electricity Purchased for Resale |
|
(2,313,621) |
(3,311,561) |
-30.1% |
(4,479,553) |
(6,515,492) |
-31.2% | |
Electricity Network Usage Charges |
|
(350,926) |
(300,127) |
16.9% |
(713,014) |
(694,047) |
2.7% | |
|
(2,664,546) |
(3,611,688) |
-26.2% |
|
(5,192,567) |
(7,209,539) |
-28.0% | |
OPERATING COSTS AND EXPENSES |
|
|||||||
Personnel |
|
(267,200) |
(236,425) |
13.0% |
(512,167) |
(461,458) |
11.0% | |
Material |
|
(39,271) |
(34,946) |
12.4% |
(79,056) |
(67,126) |
17.8% | |
Outsourced Services |
|
(157,568) |
(134,154) |
17.5% |
(306,789) |
(270,019) |
13.6% | |
Other Operating Costs/Expenses |
|
(166,217) |
(216,515) |
-23.2% |
(338,902) |
(314,343) |
7.8% | |
Allowance for Doubtful Accounts |
|
(49,814) |
(41,188) |
20.9% |
(95,865) |
(62,466) |
53.5% | |
Legal and judicial expenses |
|
(49,585) |
(119,964) |
-58.7% |
(108,969) |
(149,573) |
-27.1% | |
Others |
|
(66,818) |
(55,364) |
20.7% |
(134,067) |
(102,304) |
31.0% | |
Cost of building the infrastructure |
|
(274,491) |
(284,540) |
-3.5% |
(491,527) |
(514,718) |
-4.5% | |
Employee Pension Plans |
|
(13,913) |
(16,344) |
-14.9% |
(27,825) |
(32,689) |
-14.9% | |
Depreciation and Amortization |
|
(250,014) |
(240,375) |
4.0% |
(496,095) |
(469,607) |
5.6% | |
Amortization of Concession's Intangible |
|
(62,020) |
(83,992) |
-26.2% |
(123,907) |
(168,693) |
-26.5% | |
|
(1,230,694) |
(1,247,292) |
-1.3% |
|
(2,376,266) |
(2,298,654) |
3.4% | |
|
||||||||
EBITDA1 |
|
901,659 |
692,477 |
30.2% |
|
1,849,047 |
1,664,673 |
11.1% |
|
||||||||
EBIT |
|
520,842 |
303,569 |
71.6% |
|
1,096,638 |
944,423 |
16.1% |
|
||||||||
FINANCIAL REVENUES (EXPENSES) |
|
|||||||
Financial Revenues |
|
401,522 |
329,493 |
21.9% |
806,370 |
616,567 |
30.8% | |
Financial Expenses |
|
(600,837) |
(516,251) |
16.4% |
(1,237,333) |
(1,170,054) |
5.8% | |
|
(199,315) |
(186,758) |
6.7% |
|
(430,963) |
(553,487) |
-22.1% | |
|
||||||||
EQUITY ACCOUNTING |
|
|||||||
Equity Accounting |
|
68,783 |
64,541 |
6.6% |
132,408 |
81,949 |
61.6% | |
Assets Surplus Value Amortization |
|
(145) |
(284) |
-49.0% |
(290) |
(568) |
-49.0% | |
|
68,638 |
64,257 |
6.8% |
|
132,118 |
81,381 |
62.3% | |
|
||||||||
INCOME BEFORE TAXES ON INCOME |
|
390,164 |
181,068 |
115.5% |
|
797,793 |
472,318 |
68.9% |
|
||||||||
Social Contribution |
|
(42,502) |
(23,172) |
83.4% |
(89,668) |
(64,635) |
38.7% | |
Income Tax |
(107,528) |
(67,656) |
58.9% |
(235,544) |
(175,133) |
34.5% | ||
|
||||||||
NET INCOME |
|
240,135 |
90,240 |
166.1% |
|
472,581 |
232,550 |
103.2% |
Controlling Shareholders' Interest |
|
259,811 |
124,180 |
109.2% |
|
531,160 |
293,150 |
81.2% |
Non-Controlling Shareholders' Interest |
|
(19,676) |
(33,940) |
-42.0% |
|
(58,578) |
(60,600) |
-3.3% |
Note: (1) EBITDA is calculated from the sum of net income, taxes, financial result and depreciation/amortization, according to CVM Instruction no. 527/12.
Página 59 de 71
(Pro forma, R$ thousands)
Consolidated - Adjusted1 | ||||||||
|
|
2Q16 |
2Q15 |
Variation |
|
1H16 |
1H15 |
Variation |
OPERATING REVENUES |
|
|||||||
Electricity Sales to Final Customers |
|
5,834,207 |
5,945,120 |
-1.9% |
12,286,059 |
11,211,844 |
9.6% | |
Electricity Sales to Distributors |
|
558,247 |
1,007,453 |
-44.6% |
1,265,810 |
1,801,989 |
-29.8% | |
Revenue from building the infrastructure |
|
274,716 |
284,912 |
-3.6% |
491,850 |
515,720 |
-4.6% | |
Sectorial financial assets and liabilities |
|
(433,654) |
908,721 |
-147.7% |
(1,163,167) |
1,518,715 |
-176.6% | |
Other Operating Revenues |
|
872,640 |
864,285 |
1.0% |
1,676,069 |
1,455,832 |
15.1% | |
|
7,106,155 |
9,010,491 |
-21.1% |
|
14,556,621 |
16,504,099 |
-11.8% | |
|
||||||||
DEDUCTIONS FROM OPERATING REVENUES |
|
(2,742,582) |
(3,892,037) |
-29.5% |
(5,990,550) |
(6,200,502) |
-3.4% | |
NET OPERATING REVENUES |
|
4,363,573 |
5,118,453 |
-14.7% |
|
8,566,071 |
10,303,597 |
-16.9% |
|
||||||||
COST OF ELECTRIC ENERGY SERVICES |
|
|||||||
Electricity Purchased for Resale |
|
(2,164,705) |
(3,064,431) |
-29.4% |
(4,195,772) |
(6,021,036) |
-30.3% | |
Electricity Network Usage Charges |
|
(357,301) |
(305,965) |
16.8% |
(726,520) |
(705,779) |
2.9% | |
|
(2,522,006) |
(3,370,395) |
-25.2% |
|
(4,922,292) |
(6,726,815) |
-26.8% | |
OPERATING COSTS AND EXPENSES |
|
|||||||
Personnel |
|
(260,382) |
(231,015) |
12.7% |
(498,757) |
(450,710) |
10.7% | |
Material |
|
(71,796) |
(98,909) |
-27.4% |
(141,880) |
(230,966) |
-38.6% | |
Outsourced Services |
|
(144,196) |
(122,611) |
17.6% |
(280,593) |
(249,952) |
12.3% | |
Other Operating Costs/Expenses |
|
(175,366) |
(161,121) |
8.8% |
(352,693) |
(261,696) |
34.8% | |
Allowance for Doubtful Accounts |
|
(49,718) |
(41,193) |
20.7% |
(95,693) |
(62,487) |
53.1% | |
Legal and judicial expenses |
|
(49,035) |
(75,563) |
-35.1% |
(104,997) |
(102,309) |
2.6% | |
Others |
|
(76,612) |
(44,364) |
72.7% |
(152,003) |
(96,900) |
56.9% | |
Cost of building the infrastructure |
|
(274,491) |
(284,540) |
-3.5% |
(491,527) |
(514,718) |
-4.5% | |
Employee Pension Plans |
|
(13,913) |
(16,344) |
-14.9% |
(27,825) |
(32,689) |
-14.9% | |
Depreciation and Amortization |
|
(229,542) |
(223,488) |
2.7% |
(456,051) |
(439,048) |
3.9% | |
Amortization of Concession's Intangible |
|
(43,810) |
(63,691) |
-31.2% |
(87,551) |
(127,686) |
-31.4% | |
|
(1,213,495) |
(1,201,720) |
1.0% |
|
(2,336,876) |
(2,307,465) |
1.3% | |
|
||||||||
ADJUSTED EBITDA2 |
|
901,423 |
833,518 |
8.1% |
|
1,850,504 |
1,836,051 |
0.8% |
|
||||||||
EBIT |
|
628,071 |
546,338 |
15.0% |
|
1,306,903 |
1,269,317 |
3.0% |
|
||||||||
FINANCIAL REVENUES (EXPENSES) |
|
|||||||
Financial Revenues |
|
391,757 |
301,619 |
29.9% |
789,923 |
575,806 |
37.2% | |
Financial Expenses |
|
(589,459) |
(488,081) |
20.8% |
(1,204,500) |
(1,046,557) |
15.1% | |
|
(197,702) |
(186,462) |
6.0% |
|
(414,577) |
(470,751) |
-11.9% | |
|
||||||||
INCOME BEFORE TAXES ON INCOME |
|
430,369 |
359,877 |
19.6% |
|
892,326 |
798,566 |
11.7% |
|
||||||||
Social Contribution |
|
(48,116) |
(37,640) |
27.8% |
(100,219) |
(88,624) |
13.1% | |
Income Tax |
(121,115) |
(101,730) |
19.1% |
(263,687) |
(238,905) |
10.4% | ||
|
||||||||
ADJUSTED NET INCOME |
|
261,139 |
220,507 |
18.4% |
|
528,420 |
471,037 |
12.2% |
Notes:
(1) Adjusted figures take into account CPFL’s equivalent stake in each generation project and disregard non-recurring effects;
(2) EBITDA is calculated from the sum of net income, taxes, financial result and depreciation/amortization, according to CVM Instruction no. 527/12.
Página 60 de 71
(Pro forma, R$ thousands)
Conventional Generation (IFRS) | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
OPERATING REVENUE |
|
|
|
| ||
Eletricity Sales to Final Consumers |
- |
- |
- |
- |
- |
- |
Eletricity Sales to Distributors |
269,935 |
259,845 |
3.9% |
529,206 |
512,657 |
3.2% |
Other Operating Revenues |
1,432 |
1,204 |
19.0% |
2,728 |
2,594 |
5.2% |
|
271,367 |
261,049 |
4.0% |
531,935 |
515,251 |
3.2% |
|
|
|
|
|
|
|
DEDUCTIONS FROM OPERATING REVENUE |
(24,834) |
(22,674) |
9.5% |
(48,991) |
(44,737) |
9.5% |
NET OPERATING REVENUE |
246,532 |
238,375 |
3.4% |
482,943 |
470,514 |
2.6% |
|
|
|
|
|
|
|
COST OF ELETRIC ENERGY SERVICES |
|
|
|
|
|
|
Eletricity Purchased for Resale |
(15,433) |
(46,705) |
-67.0% |
(35,248) |
(89,989) |
-60.8% |
Eletricity Network Usage Charges |
(5,828) |
(5,168) |
12.8% |
(11,680) |
(10,376) |
12.6% |
|
(21,261) |
(51,873) |
-59.0% |
(46,928) |
(100,365) |
-53.2% |
OPERATING COSTS AND EXPENSES |
|
|
|
|
|
|
Personnel |
(10,179) |
(8,194) |
24.2% |
(19,201) |
(16,133) |
19.0% |
Material |
(606) |
(543) |
11.6% |
(1,453) |
(860) |
69.0% |
Outsourced Services |
(5,171) |
(4,278) |
20.9% |
(9,421) |
(9,672) |
-2.6% |
Other Operating Costs/Expenses |
(11,207) |
(8,266) |
35.6% |
(22,122) |
(12,118) |
82.6% |
Employee Pension Plans |
(322) |
(113) |
183.9% |
(643) |
(227) |
183.9% |
Depreciation and Amortization |
(28,168) |
(28,006) |
0.6% |
(55,829) |
(55,991) |
-0.3% |
Amortization of Concession's Intangible |
(2,492) |
(4,046) |
-38.4% |
(4,983) |
(8,092) |
-38.4% |
|
(58,143) |
(53,446) |
8.8% |
(113,652) |
(103,093) |
10.2% |
|
|
|
|
|
|
|
EBITDA |
266,570 |
229,649 |
16.1% |
515,584 |
413,088 |
24.8% |
|
|
|
|
|
|
|
EBIT |
167,128 |
133,056 |
25.6% |
322,364 |
267,056 |
20.7% |
|
|
|
|
|
|
|
FINANCIAL INCOME (EXPENSE) |
|
|
|
|
|
|
Financial Income |
51,660 |
19,624 |
163.3% |
97,249 |
50,757 |
91.6% |
Financial Expenses |
(138,177) |
(123,517) |
11.9% |
(267,761) |
(256,929) |
4.2% |
Interest on Equity |
- |
- |
- |
- |
- |
- |
|
(86,517) |
(103,893) |
-16.7% |
(170,512) |
(206,172) |
-17.3% |
|
|
|
|
|
|
|
EQUITY ACCOUNTING |
|
|
|
|
|
|
Equity Accounting |
68,783 |
64,541 |
6.6% |
132,408 |
81,949 |
61.6% |
Assets Surplus Value Amortization |
(145) |
(284) |
-49.0% |
(290) |
(568) |
-49.0% |
|
68,638 |
64,257 |
6.8% |
132,118 |
81,381 |
62.3% |
|
|
|
|
|
|
|
INCOME BEFORE TAXES ON INCOME |
149,249 |
93,421 |
59.8% |
283,969 |
142,265 |
99.6% |
|
|
|
|
|
|
|
Social Contribution |
(7,226) |
(2,438) |
196.3% |
(13,831) |
(5,334) |
159.3% |
Income Tax |
(20,019) |
(7,549) |
165.2% |
(38,154) |
(15,063) |
153.3% |
|
|
|
|
|
|
|
NET INCOME (LOSS) |
122,004 |
83,433 |
46.2% |
231,984 |
121,869 |
90.4% |
Controlling Shareholders' Interest |
112,874 |
72,851 |
54.9% |
211,494 |
106,559 |
98.5% |
Non-Controlling Shareholders' Interest |
9,129 |
10,583 |
-13.7% |
20,490 |
15,310 |
33.8% |
Página 62 de 71
(Pro forma, R$ thousands)
Conventional Generation (Adjusted) | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
OPERATING REVENUE |
|
|
|
|
|
|
Eletricity Sales to Final Consumers |
- |
- |
- |
- |
- |
- |
Eletricity Sales to Distributors |
498,264 |
535,320 |
-6.9% |
989,803 |
1,072,771 |
-7.7% |
Other Operating Revenues |
319 |
215 |
48.4% |
1,222 |
1,217 |
0.4% |
|
498,583 |
535,534 |
-6.9% |
991,025 |
1,073,988 |
-7.7% |
|
|
|
|
|
|
|
DEDUCTIONS FROM OPERATING REVENUE |
(44,511) |
(48,011) |
-7.3% |
(88,843) |
(96,673) |
-8.1% |
NET OPERATING REVENUE |
454,071 |
487,524 |
-6.9% |
902,181 |
977,316 |
-7.7% |
|
|
|
|
|
|
|
COST OF ELETRIC ENERGY SERVICES |
|
|
|
|
|
|
Eletricity Purchased for Resale |
(10,692) |
(1,710) |
525.4% |
(31,214) |
(13,364) |
133.6% |
Eletricity Network Usage Charges |
(21,842) |
(19,920) |
9.6% |
(43,648) |
(40,051) |
9.0% |
|
(32,534) |
(21,630) |
50.4% |
(74,863) |
(53,415) |
40.2% |
OPERATING COSTS AND EXPENSES |
|
|
|
|
| |
Personnel |
(13,463) |
(10,863) |
23.9% |
(25,733) |
(21,780) |
18.1% |
Material |
(33,686) |
(67,046) |
-49.8% |
(66,408) |
(169,236) |
-60.8% |
Outsourced Services |
(9,262) |
(9,896) |
-6.4% |
(16,571) |
(20,279) |
-18.3% |
Other Operating Costs/Expenses |
(24,689) |
(16,256) |
51.9% |
(48,726) |
(30,875) |
57.8% |
Employee Pension Plans |
(322) |
(113) |
183.9% |
(643) |
(227) |
183.9% |
Depreciation and Amortization |
(54,647) |
(54,611) |
0.1% |
(108,947) |
(110,004) |
-1.0% |
Amortization of Concession's Intangible |
(2,636) |
(4,330) |
-39.1% |
(5,273) |
(8,660) |
-39.1% |
|
(138,704) |
(163,114) |
-15.0% |
(272,300) |
(361,061) |
-24.6% |
|
|
|
|
|
|
|
EBITDA |
340,116 |
361,720 |
-6.0% |
669,239 |
681,504 |
-1.8% |
|
|
|
|
|
|
|
EBIT |
282,833 |
302,780 |
-6.6% |
555,019 |
562,840 |
-1.4% |
|
|
|
|
|
|
|
FINANCIAL INCOME (EXPENSE) |
|
|
|
|
|
|
Financial Income |
59,771 |
18,543 |
222.3% |
115,003 |
52,711 |
118.2% |
Financial Expenses |
(178,329) |
(163,212) |
9.3% |
(364,447) |
(340,161) |
7.1% |
Interest on Equity |
- |
- |
- |
- |
- |
- |
|
(118,558) |
(144,669) |
-18.0% |
(249,445) |
(287,451) |
-13.2% |
|
|
|
|
|
|
|
EQUITY ACCOUNTING |
|
|
|
|
|
|
Equity Accounting |
- |
- |
- |
- |
- |
- |
Assets Surplus Value Amortization |
- |
- |
- |
- |
- |
- |
|
- |
- |
- |
- |
- |
- |
|
|
|
|
|
|
|
INCOME BEFORE TAXES ON INCOME |
164,274 |
158,111 |
3.9% |
305,574 |
275,390 |
11.0% |
|
|
|
|
|
|
|
Social Contribution |
(14,811) |
(13,322) |
11.2% |
(27,768) |
(24,820) |
11.9% |
Income Tax |
(36,304) |
(30,471) |
19.1% |
(71,075) |
(61,911) |
14.8% |
|
|
|
|
|
|
|
NET INCOME (LOSS) |
113,159 |
114,318 |
-1.0% |
206,731 |
188,659 |
9.6% |
Página 63 de 71
(R$ thousands)
Consolidated - IFRS (100% Participation) | ||||||||
|
2Q16 |
2Q15 |
Var. |
Var. % |
1H16 |
1H15 |
Var. |
Var. % |
OPERATING REVENUES |
|
| ||||||
Eletricity Sales to Final Consumers |
22,277 |
- |
22,277 |
0.0% |
45,477 |
- |
45,477 |
0.0% |
Eletricity Sales to Distributors |
349,851 |
314,075 |
35,777 |
11.4% |
621,765 |
699,397 |
(77,632) |
-11.1% |
Other Operating Revenues |
8,435 |
394 |
8,041 |
2040.9% |
8,745 |
5,064 |
3,681 |
72.7% |
|
380,563 |
314,469 |
66,094 |
21.0% |
675,986 |
704,460 |
(28,474) |
-4.0% |
|
|
| ||||||
DEDUCTIONS FROM OPERATING REVENUES |
(20,391) |
(18,849) |
(1,542) |
8.2% |
(37,068) |
(44,426) |
7,358 |
-16.6% |
NET OPERATING REVENUES |
360,172 |
295,620 |
64,552 |
21.8% |
638,918 |
660,035 |
(21,116) |
-3.2% |
|
|
| ||||||
COST OF ELETRIC ENERGY SERVICES |
|
| ||||||
Eletricity Purchased for Resale |
(56,354) |
(45,429) |
(10,925) |
24.0% |
(70,192) |
(147,439) |
77,247 |
-52.4% |
Eletricity Network Usage Charges |
(21,456) |
(19,442) |
(2,014) |
10.4% |
(40,819) |
(39,245) |
(1,574) |
4.0% |
|
(77,811) |
(64,872) |
(12,939) |
19.9% |
(111,011) |
(186,684) |
75,673 |
-40.5% |
OPERATING COSTS AND EXPENSES |
|
| ||||||
Personnel |
(20,875) |
(16,695) |
(4,180) |
25.0% |
(41,211) |
(33,882) |
(7,329) |
21.6% |
Material |
(1,148) |
(5,249) |
4,101 |
-78.1% |
(4,658) |
(9,374) |
4,716 |
-50.3% |
Outsourced Services |
(37,400) |
(36,246) |
(1,154) |
3.2% |
(74,057) |
(65,319) |
(8,738) |
13.4% |
Other Operating Costs/Expenses |
(11,926) |
(16,618) |
4,693 |
-28.2% |
(29,252) |
(31,272) |
2,019 |
-6.5% |
Depreciation and Amortization |
(97,029) |
(89,880) |
(7,149) |
8.0% |
(192,526) |
(174,777) |
(17,749) |
10.2% |
Amortization of Concession's Intangible |
(37,932) |
(42,539) |
4,607 |
-10.8% |
(75,732) |
(85,919) |
10,186 |
-11.9% |
|
(206,310) |
(207,228) |
917 |
-0.4% |
(417,437) |
(400,542) |
(16,895) |
4.2% |
|
|
|
|
|
|
|
|
|
EBITDA (IFRS)(1) |
211,013 |
155,939 |
55,073 |
35.3% |
378,729 |
333,504 |
45,225 |
13.6% |
|
|
| ||||||
EBIT |
76,051 |
23,520 |
52,531 |
223.3% |
110,470 |
72,808 |
37,662 |
51.7% |
|
|
| ||||||
FINANCIAL INCOME (EXPENSE) |
|
| ||||||
Financial Income |
34,375 |
29,880 |
4,495 |
15.0% |
65,251 |
59,488 |
5,763 |
9.7% |
Financial Expenses |
(162,461) |
(141,934) |
(20,526) |
14.5% |
(326,432) |
(278,224) |
(48,208) |
17.3% |
|
(128,086) |
(112,055) |
(16,031) |
14.3% |
(261,182) |
(218,736) |
(42,445) |
19.4% |
|
|
| ||||||
INCOME BEFORE TAXES ON INCOME |
(52,035) |
(88,534) |
36,499 |
-41.2% |
(150,711) |
(145,928) |
(4,783) |
3.3% |
|
|
| ||||||
Social Contribution |
(4,073) |
(1,859) |
(2,214) |
119.1% |
(6,998) |
(5,538) |
(1,460) |
26.4% |
Income Tax |
(5,577) |
(2,689) |
(2,888) |
107.4% |
(9,873) |
(6,261) |
(3,612) |
57.7% |
|
|
|
|
|
|
|
|
|
NET INCOME (IFRS) |
(61,685) |
(93,082) |
31,397 |
-33.7% |
(167,582) |
(157,727) |
(9,855) |
6.2% |
Controlling Shareholders' Interest |
(63,706) |
(94,086) |
30,381 |
-32.3% |
(171,502) |
(158,516) |
(12,985) |
8.2% |
Non-Controlling Shareholders' Interest |
2,021 |
1,004 |
1,017 |
101.2% |
3,920 |
789 |
3,131 |
396.6% |
1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization, as CVM Instruction no. 527/12.
Página 64 de 71
(Pro forma, R$ thousands)
Consolidated - Adjusted (Proportional Consolidation) | ||||||||
|
2Q16 |
2Q15 |
Var. |
Var. % |
1H16 |
1H15 |
Var. |
Var. % |
OPERATING REVENUES |
|
| ||||||
Eletricity Sales to Final Consumers |
11,497 |
- |
11,497 |
0.0% |
23,471 |
- |
23,471 |
0.0% |
Eletricity Sales to Distributors |
181,112 |
165,479 |
15,634 |
9.4% |
322,175 |
370,581 |
(48,407) |
-13.1% |
Other Operating Revenues |
4,354 |
203 |
4,150 |
2040.9% |
4,513 |
2,613 |
1,900 |
72.7% |
|
196,963 |
165,682 |
31,281 |
18.9% |
350,159 |
373,195 |
(23,036) |
-6.2% |
|
|
| ||||||
DEDUCTIONS FROM OPERATING REVENUES |
(10,550) |
(9,885) |
(664) |
6.7% |
(19,190) |
(23,376) |
4,185 |
-17.9% |
NET OPERATING REVENUES |
186,413 |
155,797 |
30,617 |
19.7% |
330,969 |
349,819 |
(18,851) |
-5.4% |
|
|
| ||||||
COST OF ELETRIC ENERGY SERVICES |
|
| ||||||
Eletricity Purchased for Resale |
(28,782) |
(10,868) |
(17,914) |
164.8% |
(35,874) |
(41,390) |
5,517 |
-13.3% |
Eletricity Network Usage Charges |
(11,074) |
(10,034) |
(1,040) |
10.4% |
(21,067) |
(20,255) |
(813) |
4.0% |
|
(39,856) |
(20,903) |
(18,953) |
90.7% |
(56,941) |
(61,645) |
4,704 |
-7.6% |
OPERATING COSTS AND EXPENSES |
|
| ||||||
Personnel |
(10,774) |
(8,617) |
(2,157) |
25.0% |
(21,269) |
(17,487) |
(3,782) |
21.6% |
Material |
(592) |
(2,709) |
2,117 |
-78.1% |
(2,404) |
(4,838) |
2,434 |
-50.3% |
Outsourced Services |
(19,303) |
(18,707) |
(595) |
3.2% |
(38,221) |
(33,712) |
(4,510) |
13.4% |
Other Operating Costs/Expenses |
(6,983) |
(2,913) |
(4,070) |
139.7% |
(16,667) |
(10,476) |
(6,191) |
59.1% |
Depreciation and Amortization |
(50,078) |
(46,388) |
(3,690) |
8.0% |
(99,365) |
(90,204) |
(9,160) |
10.2% |
Amortization of Concession's Intangible |
(19,577) |
(21,955) |
2,378 |
-10.8% |
(39,086) |
(44,343) |
5,257 |
-11.9% |
|
(107,307) |
(101,289) |
(6,018) |
5.9% |
(215,443) |
(201,060) |
(14,383) |
7.2% |
|
|
|
|
|
|
|
|
|
EBITDA Adjusted (1) |
108,906 |
101,948 |
6,958 |
6.8% |
195,466 |
221,662 |
(26,196) |
-11.8% |
|
|
| ||||||
EBIT |
39,251 |
33,605 |
5,645 |
16.8% |
58,584 |
87,114 |
(28,529) |
-32.7% |
|
|
| ||||||
FINANCIAL INCOME (EXPENSE) |
|
| ||||||
Financial Income |
17,741 |
15,421 |
2,320 |
15.0% |
33,677 |
30,703 |
2,974 |
9.7% |
Financial Expenses |
(83,848) |
(73,254) |
(10,594) |
14.5% |
(168,475) |
(143,594) |
(24,881) |
17.3% |
|
(66,106) |
(57,833) |
(8,274) |
14.3% |
(134,798) |
(112,892) |
(21,906) |
19.4% |
|
|
| ||||||
INCOME BEFORE TAXES ON INCOME |
(26,856) |
(24,227) |
(2,628) |
10.8% |
(76,214) |
(25,778) |
(50,436) |
195.7% |
|
|
| ||||||
Social Contribution |
(2,102) |
(959) |
(1,143) |
119.1% |
(3,612) |
(2,858) |
(753) |
26.4% |
Income Tax |
(2,878) |
(1,388) |
(1,490) |
107.4% |
(5,095) |
(3,231) |
(1,864) |
57.7% |
|
|
|
|
|
|
|
|
|
NET INCOME Adjusted(1) |
(31,836) |
(26,574) |
(5,262) |
19.8% |
(84,921) |
(31,868) |
(53,053) |
166.5% |
1) Please, considers:
(i) Proportional participation (51.61%);
(ii) Exclusion of the non-recurring effect (R$ 21 million in 2Q15);
(iii) Part of the GSF effects (R$ 5.0 million in 2Q15, totalizing R$ 0.2 million in 1H16 and R$ 12.0 million in 1H15) that are booked as a revenue by CPFL Renováveis is reclassified as a cost in our pro forma analysis;
(iv) The GSF premium risk that are booked as a Gross Operational Revenue (R$ 0.5 million in 2Q16, totalizing R$ 1 million in 1H16) and Cost of Electric Energy Services (R$ 0.4 million in 2Q16, totalizing R$ 0.6 million in 1H16) are reclassified as “Other Operating Costs/Expenses
(Pro forma, R$ thousands)
Consolidated | ||||||||
|
|
2Q16 |
2Q15 |
Variation |
|
1H16 |
1H15 |
Variation |
OPERATING REVENUE |
|
|||||||
Electricity Sales to Final Customers |
5,484,109 |
5,660,951 |
-3.1% |
|
11,608,218 |
10,651,420 |
9.0% | |
Electricity Sales to Distributors |
25,706 |
426,187 |
-94.0% |
|
241,244 |
611,994 |
-60.6% | |
Revenue from building the infrastructure |
268,574 |
274,711 |
-2.2% |
|
482,997 |
488,266 |
-1.1% | |
Sectoral financial assets and liabilities |
(461,979) |
895,571 |
- |
|
(1,194,232) |
1,584,155 |
- | |
Other Operating Revenues |
827,994 |
840,222 |
-1.5% |
|
1,600,534 |
1,401,839 |
14.2% | |
|
6,144,404 |
8,097,642 |
-24.1% |
|
12,738,761 |
14,737,674 |
-13.6% | |
|
|
|
|
|
|
|||
DEDUCTIONS FROM OPERATING REVENUE |
(2,644,602) |
(3,797,716) |
-30.4% |
|
(5,802,977) |
(6,042,385) |
-4.0% | |
NET OPERATING REVENUE |
3,499,802 |
4,299,927 |
-18.6% |
|
6,935,784 |
8,695,289 |
-20.2% | |
|
|
|||||||
COST OF ELECTRIC ENERGY SERVICES |
|
|||||||
Electricity Purchased for Resale |
(1,994,968) |
(2,968,732) |
-32.8% |
|
(3,877,000) |
(5,793,199) |
-33.1% | |
Electricity Network Usage Charges |
(327,512) |
(276,760) |
18.3% |
|
(667,688) |
(647,028) |
3.2% | |
|
(2,322,480) |
(3,245,492) |
-28.4% |
|
(4,544,688) |
(6,440,227) |
-29.4% | |
OPERATING COSTS AND EXPENSES |
|
|
||||||
Personnel |
|
(175,252) |
(166,113) |
5.5% |
|
(340,987) |
(323,934) |
5.3% |
Material |
|
(29,189) |
(22,279) |
31.0% |
|
(57,504) |
(43,640) |
31.8% |
Outsourced Services |
|
(159,514) |
(122,301) |
30.4% |
|
(303,642) |
(247,485) |
22.7% |
Other Operating Costs/Expenses |
|
(144,976) |
(194,029) |
-25.3% |
|
(289,071) |
(275,578) |
4.9% |
Allowance for Doubtful Accounts |
|
(48,787) |
(40,505) |
20.4% |
|
(94,162) |
(59,564) |
58.1% |
Legal and Judicial Expenses |
|
(47,045) |
(117,712) |
-60.0% |
|
(98,142) |
(140,696) |
-30.2% |
Others |
|
(49,144) |
(35,812) |
37.2% |
|
(96,767) |
(75,318) |
28.5% |
Cost of building the infrastructure |
|
(268,574) |
(274,711) |
-2.2% |
|
(482,997) |
(488,266) |
-1.1% |
Employee Pension Plans |
|
(13,591) |
(16,231) |
-16.3% |
|
(27,182) |
(32,462) |
-16.3% |
Depreciation and Amortization |
|
(119,631) |
(117,589) |
1.7% |
|
(237,716) |
(229,885) |
3.4% |
Amortization of Concession's Intangible |
|
(5,918) |
(5,260) |
12.5% |
|
(11,835) |
(10,390) |
13.9% |
|
(916,645) |
(918,513) |
-0.2% |
|
(1,750,935) |
(1,651,639) |
6.0% | |
|
|
|||||||
EBITDA (IFRS)(1) |
|
386,226 |
258,771 |
49.3% |
|
889,712 |
843,698 |
5.5% |
|
|
|||||||
EBIT |
|
260,677 |
135,922 |
91.8% |
|
640,161 |
603,423 |
6.1% |
|
|
|||||||
FINANCIAL INCOME (EXPENSE) |
|
|
||||||
Financial Income |
|
281,764 |
251,742 |
11.9% |
|
592,827 |
445,077 |
33.2% |
Financial Expenses |
|
(282,287) |
(223,330) |
26.4% |
|
(597,724) |
(574,168) |
4.1% |
Interest on Equity |
|
- |
- |
- |
|
- |
- |
- |
|
(523) |
28,411 |
- |
|
(4,897) |
(129,091) |
-96.2% | |
|
|
|||||||
INCOME BEFORE TAXES ON INCOME |
|
260,154 |
164,333 |
58.3% |
|
635,263 |
474,332 |
33.9% |
|
|
|||||||
Social Contribution |
|
(25,827) |
(12,804) |
101.7% |
|
(62,573) |
(43,619) |
43.5% |
Income Tax |
|
(65,835) |
(35,350) |
86.2% |
|
(167,886) |
(120,251) |
39.6% |
|
|
|||||||
Net Income (IFRS) |
|
168,492 |
116,179 |
45.0% |
|
404,804 |
310,461 |
30.4% |
Note:
(1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization, as CVM Instruction no. 527/12.
Página 66 de 71
(Pro forma, R$ thousands)
Consolidated | ||||||||
|
|
2Q16 |
2Q15 |
Variation |
|
1H16 |
1H15 |
Variation |
OPERATING REVENUE |
|
|||||||
Electricity Sales to Final Customers |
5,484,109 |
5,660,951 |
-3.1% |
|
11,608,218 |
10,651,420 |
9.0% | |
Electricity Sales to Distributors |
25,706 |
426,187 |
-94.0% |
|
241,244 |
611,994 |
-60.6% | |
Revenue from building the infrastructure |
268,574 |
274,711 |
-2.2% |
|
482,997 |
488,266 |
-1.1% | |
Sectoral financial assets and liabilities |
(433,654) |
908,721 |
- |
|
(1,163,167) |
1,518,715 |
- | |
Other Operating Revenues |
827,994 |
840,222 |
-1.5% |
|
1,600,534 |
1,401,839 |
14.2% | |
|
6,172,729 |
8,110,792 |
-23.9% |
|
12,769,826 |
14,672,234 |
-13.0% | |
|
|
|
|
|
|
|||
DEDUCTIONS FROM OPERATING REVENUE |
(2,644,602) |
(3,797,716) |
-30.4% |
|
(5,802,977) |
(6,005,115) |
-3.4% | |
NET OPERATING REVENUE |
3,528,127 |
4,313,076 |
-18.2% |
|
6,966,849 |
8,667,119 |
-19.6% | |
|
|
|||||||
COST OF ELECTRIC ENERGY SERVICES |
|
|||||||
Electricity Purchased for Resale |
(1,994,968) |
(2,968,732) |
-32.8% |
|
(3,877,000) |
(5,793,199) |
-33.1% | |
Electricity Network Usage Charges |
(327,512) |
(276,760) |
18.3% |
|
(667,688) |
(647,028) |
3.2% | |
|
(2,322,480) |
(3,245,492) |
-28.4% |
|
(4,544,688) |
(6,440,227) |
-29.4% | |
OPERATING COSTS AND EXPENSES |
|
|
||||||
Personnel |
|
(175,252) |
(166,113) |
5.5% |
|
(340,987) |
(323,934) |
5.3% |
Material |
|
(29,189) |
(22,279) |
31.0% |
|
(57,504) |
(43,640) |
31.8% |
Outsourced Services |
|
(159,514) |
(122,301) |
30.4% |
|
(303,642) |
(247,485) |
22.7% |
Other Operating Costs/Expenses |
|
(144,976) |
(144,217) |
0.5% |
|
(289,071) |
(225,766) |
28.0% |
Allowance for Doubtful Accounts |
|
(48,787) |
(40,505) |
20.4% |
|
(94,162) |
(59,564) |
58.1% |
Legal and Judicial Expenses |
|
(47,045) |
(67,900) |
-30.7% |
|
(98,142) |
(90,884) |
8.0% |
Others |
|
(49,144) |
(35,812) |
37.2% |
|
(96,767) |
(75,318) |
28.5% |
Cost of building the infrastructure |
|
(268,574) |
(274,711) |
-2.2% |
|
(482,997) |
(488,266) |
-1.1% |
Employee Pension Plans |
|
(13,591) |
(16,231) |
-16.3% |
|
(27,182) |
(32,462) |
-16.3% |
Depreciation and Amortization |
|
(119,631) |
(117,589) |
1.7% |
|
(237,716) |
(229,885) |
3.4% |
Amortization of Concession's Intangible |
|
(5,918) |
(5,260) |
12.5% |
|
(11,835) |
(10,390) |
13.9% |
|
(916,645) |
(868,701) |
5.5% |
|
(1,750,935) |
(1,601,827) |
9.3% | |
|
|
|||||||
Adjusted EBITDA(1) |
|
414,550 |
321,733 |
28.8% |
|
920,777 |
865,340 |
6.4% |
|
|
|||||||
EBIT |
|
289,002 |
198,883 |
45.3% |
|
671,226 |
625,065 |
7.4% |
|
|
|||||||
FINANCIAL INCOME (EXPENSE) |
|
|
||||||
Financial Income |
|
281,764 |
241,184 |
16.8% |
|
592,827 |
434,520 |
36.4% |
Financial Expenses |
|
(310,612) |
(225,922) |
37.5% |
|
(628,790) |
(505,441) |
24.4% |
Interest on Equity |
|
- |
- |
- |
|
- |
- |
- |
|
(28,848) |
15,262 |
- |
|
(35,963) |
(70,921) |
-49.3% | |
|
|
|||||||
INCOME BEFORE TAXES ON INCOME |
|
260,154 |
214,145 |
21.5% |
|
635,263 |
554,144 |
14.6% |
|
|
|||||||
Social Contribution |
|
(25,827) |
(17,287) |
49.4% |
|
(62,573) |
(50,802) |
23.2% |
Income Tax |
|
(65,835) |
(47,803) |
37.7% |
|
(167,886) |
(140,204) |
19.7% |
|
|
|||||||
Adjusted Net Income(2) |
|
168,492 |
149,055 |
13.0% |
|
404,804 |
363,137 |
11.5% |
Notes:
(1) Adjusted EBITDA excludes the non-recurring effects and the exchange variation in Itaipu invoices (negative effect of R$ 28 million in 2Q16 and of R$ 13 million in 2Q15);
(2) Adjusted Net Income excludes the non-recurring effects.
Página 67 de 71
(R$ thousands)
Summary of Income Statement by Distribution Company (R$ Thousands) | ||||||
CPFL PAULISTA | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Gross Operating Revenue |
3,216,807 |
4,316,291 |
-25.5% |
6,601,242 |
7,696,441 |
-14.2% |
Net Operating Revenue |
1,855,773 |
2,258,384 |
-17.8% |
3,621,702 |
4,477,586 |
-19.1% |
Cost of Electric Power |
(1,246,792) |
(1,731,430) |
-28.0% |
(2,424,146) |
(3,355,386) |
-27.8% |
Operating Costs & Expenses |
(456,615) |
(485,761) |
-6.0% |
(880,551) |
(849,513) |
3.7% |
EBIT |
152,365 |
41,193 |
269.9% |
317,006 |
272,687 |
16.3% |
EBITDA (IFRS)(1) |
205,604 |
97,231 |
111.5% |
422,615 |
382,240 |
10.6% |
Financial Income (Expense) |
23,957 |
15,681 |
- |
25,320 |
(59,360) |
-142.7% |
Income Before Taxes |
176,323 |
56,874 |
210.0% |
342,326 |
213,326 |
60.5% |
Net Income (IFRS) |
113,545 |
39,636 |
186.5% |
217,840 |
137,685 |
58.2% |
CPFL PIRATININGA | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Gross Operating Revenue |
1,393,470 |
1,852,107 |
-24.8% |
2,960,956 |
3,400,690 |
-12.9% |
Net Operating Revenue |
752,113 |
970,711 |
-22.5% |
1,535,339 |
1,968,569 |
-22.0% |
Cost of Electric Power |
(537,274) |
(752,896) |
-28.6% |
(1,059,256) |
(1,487,205) |
-28.8% |
Operating Costs & Expenses |
(175,763) |
(176,327) |
-0.3% |
(326,723) |
(322,744) |
1.2% |
EBIT |
39,077 |
41,489 |
-5.8% |
149,361 |
158,620 |
-5.8% |
EBITDA (IFRS)(1) |
62,137 |
66,618 |
-6.7% |
195,293 |
206,705 |
-5.5% |
Financial Income (Expense) |
7,049 |
12,131 |
-41.9% |
6,939 |
(27,173) |
- |
Income Before Taxes |
46,126 |
53,620 |
-14.0% |
156,300 |
131,447 |
18.9% |
Net Income (IFRS) |
29,044 |
37,487 |
-22.5% |
97,427 |
86,031 |
13.2% |
RGE | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Gross Operating Revenue |
1,193,685 |
1,495,967 |
-20.2% |
2,477,721 |
2,856,751 |
-13.3% |
Net Operating Revenue |
684,352 |
841,011 |
-18.6% |
1,368,089 |
1,789,480 |
-23.5% |
Cost of Electric Power |
(421,700) |
(602,617) |
-30.0% |
(835,026) |
(1,294,074) |
-35.5% |
Operating Costs & Expenses |
(219,299) |
(202,425) |
8.3% |
(419,372) |
(377,165) |
11.2% |
EBIT |
43,352 |
35,969 |
20.5% |
113,691 |
118,242 |
-3.8% |
EBITDA (IFRS)(1) |
81,495 |
69,372 |
17.5% |
189,595 |
184,569 |
2.7% |
Financial Income (Expense) |
(26,339) |
(5,191) |
- |
(20,614) |
(40,841) |
-49.5% |
Income Before Taxes |
17,014 |
30,777 |
-44.7% |
93,077 |
77,401 |
20.3% |
Net Income (IFRS) |
10,239 |
23,409 |
-56.3% |
59,388 |
52,757 |
12.6% |
CPFL SANTA CRUZ | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Gross Operating Revenue |
148,871 |
198,159 |
-24.9% |
304,121 |
359,889 |
-15.5% |
Net Operating Revenue |
91,532 |
112,314 |
-18.5% |
179,625 |
219,684 |
-18.2% |
Cost of Electric Power |
(53,166) |
(81,496) |
-34.8% |
(100,746) |
(151,623) |
-33.6% |
Operating Costs & Expenses |
(30,060) |
(23,289) |
29.1% |
(56,001) |
(43,497) |
28.7% |
EBIT |
8,305 |
7,529 |
10.3% |
22,878 |
24,564 |
-6.9% |
EBITDA (IFRS)(1) |
12,935 |
11,119 |
16.3% |
32,081 |
31,684 |
1.3% |
Financial Income (Expense) |
(1,369) |
2,896 |
-147.3% |
(5,666) |
2,129 |
-366.1% |
Income Before Taxes |
6,936 |
10,425 |
-33.5% |
17,213 |
26,693 |
-35.5% |
Net Income (IFRS) |
5,955 |
7,753 |
-23.2% |
12,469 |
18,102 |
-31.1% |
Notes:
(1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization;
Página 68 de 71
Summary of Income Statement by Distribution Company (R$ Thousands) | ||||||
CPFL LESTE PAULISTA | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Gross Operating Revenue |
43,938 |
52,292 |
-16.0% |
87,602 |
94,508 |
-7.3% |
Net Operating Revenue |
28,276 |
28,670 |
-1.4% |
53,973 |
57,376 |
-5.9% |
Cost of Electric Power |
(14,086) |
(17,058) |
-17.4% |
(27,670) |
(34,123) |
-18.9% |
Operating Costs & Expenses |
(9,305) |
(9,244) |
0.7% |
(18,153) |
(15,308) |
18.6% |
EBIT |
4,884 |
2,368 |
106.2% |
8,150 |
7,945 |
2.6% |
EBITDA (IFRS)(1) |
6,609 |
3,799 |
74.0% |
11,585 |
10,803 |
7.2% |
Financial Income (Expense) |
(894) |
601 |
-248.7% |
(3,019) |
(296) |
- |
Income Before Taxes |
3,990 |
2,970 |
34.3% |
5,130 |
7,649 |
-32.9% |
Net Income (IFRS) |
3,133 |
1,830 |
71.2% |
3,819 |
4,778 |
-20.1% |
CPFL SUL PAULISTA | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Gross Operating Revenue |
59,377 |
72,523 |
-18.1% |
122,619 |
130,871 |
-6.3% |
Net Operating Revenue |
36,737 |
37,020 |
-0.8% |
73,516 |
75,162 |
-2.2% |
Cost of Electric Power |
(19,514) |
(23,085) |
-15.5% |
(39,304) |
(44,898) |
-12.5% |
Operating Costs & Expenses |
(12,836) |
(10,546) |
21.7% |
(24,700) |
(19,762) |
25.0% |
EBIT |
4,386 |
3,390 |
29.4% |
9,513 |
10,502 |
-9.4% |
EBITDA (IFRS)(1) |
6,691 |
4,838 |
38.3% |
14,110 |
13,371 |
5.5% |
Financial Income (Expense) |
(1,180) |
1,183 |
-199.8% |
(3,268) |
151 |
- |
Income Before Taxes |
3,206 |
4,572 |
-29.9% |
6,245 |
10,653 |
-41.4% |
Net Income (IFRS) |
2,140 |
2,918 |
-26.7% |
4,066 |
6,826 |
-40.4% |
CPFL JAGUARI | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Gross Operating Revenue |
59,784 |
76,145 |
-21.5% |
125,362 |
136,238 |
-8.0% |
Net Operating Revenue |
34,147 |
35,023 |
-2.5% |
69,538 |
72,777 |
-4.5% |
Cost of Electric Power |
(22,862) |
(28,462) |
-19.7% |
(45,179) |
(56,093) |
-19.5% |
Operating Costs & Expenses |
(6,864) |
(4,735) |
45.0% |
(12,869) |
(12,257) |
5.0% |
EBIT |
4,421 |
1,825 |
142.2% |
11,491 |
4,427 |
159.6% |
EBITDA (IFRS)(1) |
5,542 |
2,708 |
104.7% |
13,727 |
6,176 |
122.3% |
Financial Income (Expense) |
(938) |
708 |
-232.5% |
(2,110) |
(2,618) |
-19.4% |
Income Before Taxes |
3,483 |
2,534 |
- |
9,381 |
1,809 |
418.7% |
Net Income (IFRS) |
2,111 |
1,530 |
- |
5,857 |
892 |
556.8% |
CPFL MOCOCA | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Gross Operating Revenue |
32,019 |
38,124 |
-16.0% |
66,538 |
69,622 |
-4.4% |
Net Operating Revenue |
20,113 |
20,422 |
-1.5% |
40,764 |
41,366 |
-1.5% |
Cost of Electric Power |
(10,094) |
(11,750) |
-14.1% |
(19,631) |
(22,990) |
-14.6% |
Operating Costs & Expenses |
(6,134) |
(6,513) |
-5.8% |
(13,061) |
(11,940) |
9.4% |
EBIT |
3,886 |
2,159 |
80.0% |
8,072 |
6,436 |
25.4% |
EBITDA (IFRS)(1) |
5,212 |
3,087 |
68.8% |
10,706 |
8,149 |
31.4% |
Financial Income (Expense) |
(809) |
401 |
-301.6% |
(2,481) |
(1,083) |
129.2% |
Income Before Taxes |
3,076 |
2,560 |
20.2% |
5,592 |
5,354 |
4.4% |
Net Income (IFRS) |
2,325 |
1,616 |
43.8% |
3,938 |
3,390 |
16.2% |
Notes:
(1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization;
Página 69 de 71
CPFL Paulista | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Residential |
2,221 |
2,126 |
4.5% |
4,581 |
4,607 |
-0.6% |
Industrial |
2,673 |
2,835 |
-5.7% |
5,219 |
5,566 |
-6.2% |
Commercial |
1,371 |
1,371 |
0.0% |
2,846 |
2,933 |
-3.0% |
Others |
1,024 |
990 |
3.4% |
2,018 |
2,013 |
0.2% |
Total |
7,288 |
7,322 |
-0.5% |
14,664 |
15,119 |
-3.0% |
CPFL Piratininga | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Residential |
943 |
937 |
0.6% |
1,985 |
2,060 |
-3.6% |
Industrial |
1,579 |
1,911 |
-17.4% |
3,179 |
3,819 |
-16.7% |
Commercial |
611 |
586 |
4.2% |
1,250 |
1,254 |
-0.2% |
Others |
280 |
274 |
2.0% |
559 |
558 |
0.2% |
Total |
3,412 |
3,709 |
-8.0% |
6,974 |
7,690 |
-9.3% |
RGE | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Residential |
649 |
594 |
9.2% |
1,313 |
1,257 |
4.5% |
Industrial |
841 |
865 |
-2.8% |
1,604 |
1,701 |
-5.7% |
Commercial |
350 |
353 |
-0.8% |
727 |
753 |
-3.3% |
Others |
693 |
670 |
3.5% |
1,417 |
1,369 |
3.5% |
Total |
2,532 |
2,482 |
2.1% |
5,062 |
5,079 |
-0.3% |
CPFL Santa Cruz | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Residential |
88 |
84 |
4.8% |
182 |
180 |
0.9% |
Industrial |
51 |
56 |
-8.2% |
106 |
114 |
-7.0% |
Commercial |
40 |
39 |
0.5% |
83 |
86 |
-3.2% |
Others |
89 |
84 |
6.1% |
174 |
173 |
0.2% |
Total |
268 |
263 |
1.8% |
544 |
553 |
-1.6% |
CPFL Jaguari | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Residential |
22 |
21 |
5.2% |
45 |
45 |
0.4% |
Industrial |
95 |
93 |
2.1% |
194 |
192 |
0.9% |
Commercial |
13 |
12 |
5.4% |
26 |
26 |
-0.3% |
Others |
10 |
9 |
4.3% |
19 |
19 |
1.8% |
Total |
140 |
136 |
3.1% |
284 |
282 |
0.8% |
CPFL Mococa | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Residential |
19 |
18 |
4.0% |
38 |
38 |
0.6% |
Industrial |
16 |
15 |
6.0% |
32 |
31 |
3.2% |
Commercial |
7 |
8 |
-1.7% |
16 |
16 |
-4.2% |
Others |
15 |
14 |
8.6% |
29 |
29 |
1.6% |
Total |
57 |
55 |
4.9% |
115 |
114 |
0.9% |
CPFL Leste Paulista | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Residential |
25 |
24 |
2.8% |
50 |
50 |
0.0% |
Industrial |
21 |
19 |
6.7% |
41 |
38 |
8.6% |
Commercial |
11 |
11 |
-2.5% |
23 |
23 |
-1.7% |
Others |
28 |
25 |
12.7% |
50 |
49 |
1.6% |
Total |
84 |
79 |
6.2% |
164 |
161 |
2.3% |
CPFL Sul Paulista | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Residential |
36 |
35 |
2.9% |
73 |
73 |
-0.1% |
Industrial |
47 |
74 |
-36.3% |
94 |
157 |
-40.2% |
Commercial |
14 |
14 |
0.5% |
29 |
30 |
-3.5% |
Others |
23 |
23 |
2.2% |
46 |
46 |
-0.6% |
Total |
120 |
145 |
-17.2% |
242 |
306 |
-21.0% |
Página 70 de 71
CPFL Paulista | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Residential |
2,221 |
2,126 |
4.5% |
4,581 |
4,607 |
-0.6% |
Industrial |
858 |
960 |
-10.7% |
1,742 |
1,940 |
-10.2% |
Commercial |
1,221 |
1,232 |
-0.9% |
2,547 |
2,648 |
-3.8% |
Others |
990 |
958 |
3.3% |
1,951 |
1,947 |
0.2% |
Total |
5,290 |
5,276 |
0.3% |
10,821 |
11,142 |
-2.9% |
CPFL Piratininga | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Residential |
943 |
937 |
0.6% |
1,985 |
2,060 |
-3.6% |
Industrial |
460 |
522 |
-11.9% |
922 |
1,057 |
-12.8% |
Commercial |
542 |
521 |
4.0% |
1,111 |
1,117 |
-0.5% |
Others |
267 |
262 |
1.9% |
535 |
534 |
0.3% |
Total |
2,211 |
2,242 |
-1.4% |
4,554 |
4,768 |
-4.5% |
RGE | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Residential |
649 |
594 |
9.2% |
1,313 |
1,257 |
4.5% |
Industrial |
362 |
383 |
-5.7% |
711 |
774 |
-8.2% |
Commercial |
330 |
331 |
-0.2% |
690 |
708 |
-2.6% |
Others |
693 |
670 |
3.5% |
1,417 |
1,369 |
3.5% |
Total |
2,033 |
1,978 |
2.8% |
4,131 |
4,108 |
0.6% |
CPFL Santa Cruz | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Residential |
88 |
84 |
4.8% |
182 |
180 |
0.9% |
Industrial |
38 |
44 |
-14.1% |
81 |
91 |
-11.0% |
Commercial |
39 |
39 |
0.3% |
83 |
86 |
-3.3% |
Others |
89 |
84 |
6.1% |
174 |
173 |
0.2% |
Total |
255 |
252 |
1.2% |
519 |
530 |
-2.0% |
CPFL Jaguari | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Residential |
22 |
21 |
5.2% |
45 |
45 |
0.4% |
Industrial |
71 |
78 |
-9.7% |
142 |
158 |
-9.9% |
Commercial |
13 |
12 |
5.4% |
26 |
26 |
-0.3% |
Others |
10 |
9 |
4.3% |
19 |
19 |
1.8% |
Total |
115 |
121 |
-4.5% |
233 |
248 |
-6.1% |
CPFL Mococa | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Residential |
19 |
18 |
4.0% |
38 |
38 |
0.6% |
Industrial |
9 |
9 |
5.2% |
17 |
18 |
-2.4% |
Commercial |
7 |
8 |
-1.7% |
16 |
16 |
-4.2% |
Others |
15 |
14 |
8.6% |
29 |
29 |
1.6% |
Total |
50 |
48 |
4.6% |
100 |
101 |
-0.4% |
CPFL Leste Paulista | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Residential |
25 |
24 |
2.8% |
50 |
50 |
0.0% |
Industrial |
7 |
7 |
-3.1% |
14 |
14 |
-4.8% |
Commercial |
11 |
11 |
-2.5% |
23 |
23 |
-1.7% |
Others |
28 |
25 |
12.7% |
50 |
49 |
1.6% |
Total |
70 |
67 |
5.0% |
136 |
137 |
-0.2% |
CPFL Sul Paulista | ||||||
|
2Q16 |
2Q15 |
Var. |
1H16 |
1H15 |
Var. |
Residential |
36 |
35 |
2.9% |
73 |
73 |
-0.1% |
Industrial |
24 |
24 |
2.2% |
48 |
48 |
-0.5% |
Commercial |
14 |
14 |
0.5% |
29 |
30 |
-3.5% |
Others |
23 |
23 |
2.2% |
46 |
46 |
-0.6% |
Total |
98 |
95 |
2.2% |
197 |
198 |
-0.8% |
Página 71 de 71
CPFL ENERGIA S.A. | ||
|
By: |
/S/ GUSTAVO ESTRELLA
|
Name: Title: |
Gustavo Estrella 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.