Brazil’s government-run utilities holding company Eletrobras on Tuesday released its 2016 balance sheets, showing its first net profit after four years of stiff losses. In 2016, the company earned profits of R$3.4 billion, reversing a net loss in 2015 of R$14.4 billion. The 2016 performance was aided by an accounting decision taken by Brazil’s Securities and Exchange Commission (CVM) allowing Eletrobras to increase the value of its tranmission lines by more than R$18 billion. The holding company still suffered operational losses in 2016 as well as high debt-service costs. Eletrobras has been facing high energy generating costs and controlled rates for several years.
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