Brazilian state-run electric power holding company Eletrobras on Tuesday released 2017 balance sheets showing a R$1.726 billion loss. The 2017 loss reversed a 2016 net profit of R$3.513 billion. The loss comes ahead of a congressional vote on planned privatization of the sprawling utilities giant. The administration of President Michel Temer is hoping to sell a controlling stake in the company for some R$12.2 billion. But the privatization, planned for later this year, depends on congressional approval. Eletrobras accumulated losses of some R$30 billion from 2012 through 2015 on a government rate freeze. Rates rose sharply in 2016, helping Eletrobras post profits for that year. But high rates have also caused a sharp increase in non-payment by customers, including industrial users hurt by Brazil’s long recession. Losses in 2017 were due mainly to provisioning against such arrears.
Link to Eletrobras documentMore Testimonials