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Brazil utility Eletrobras posts Q2 loss of $46 mln
August 13, 2014 / 3:03 AM / 3 years ago

Brazil utility Eletrobras posts Q2 loss of $46 mln

BRASILIA, Aug 12 (Reuters) - Centrais Eletricas Brasileiras SA, Latin America’s largest utility, on Tuesday recorded net losses of 105 million reais ($46.11 million) in the second quarter, returning to negative results after steep profits in the first quarter.

Eletrobras, as the Brazilian state-run company is known, had a profit of 986 million reais in the first quarter and 164 million reais in the second quarter of 2013, the company said in a statement.

The company highlighted a 6.3 percent drop in power generation revenues in the second quarter and a double-digit increase in expenditures during the period. The company also said it had legal expenses of 360 million reais and provisions of 131 million reais for financial asset losses during the quarter.

Eletrobras has struggled to posts profits since Brazilian President Dilma Rousseff decided in late 2012 to force most utilities to slash industrial and consumer power rates under long-term contracts by about 20 percent in exchange for early and guaranteed renewal of soon-to-expire contracts to operate hydrodams.

Earlier on Tuesday the government approved a loan of up to 6.5 billion reais from state-run banks Caixa Econômica Federal and Banco do Brasil to Eletrobras.

$1 = 2.2772 Brazilian real Reporting by Alonso Soto; Editing by Miral Fahmy

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