AES Tiete's Net Income Comes To R$185.7 Million In 1Q13
SAO PAULO, May 8, 2013 /PRNewswire/ -- AES Tiete S.A. (BM&FBovespa: GETI3 and GETI4; OTC: AESAY and AESYY) announced today its 1Q13 results.
In 1Q13, AES Tiete's net revenue totaled to R$598.1 million, up 10.7% from the R$540.2 million recorded in 1Q12. This performance was mainly due to the higher volume of energy sold through the bilateral contract with AES Eletropaulo, coupled with the adjustment in the price of energy sold and the increase in the volume of energy sold through other bilateral contracts.
Generation in the Interconnected National System (SIN) was not enough to reach the total physical guarantee of the system in 1Q13 due to low rainfall since September 2012, the frequent dispatches from thermal plants and the higher seasonalized physical guarantee allocated by certain generators participating in the Energy Reallocation Mechanism (MRE) in January. As a result, the National Electric System Operator (ONS) lowered the physical guarantee by 10.2% on average in the first three months of the year, by the highest percentage in January (26%). Therefore, AES Tiete had to purchase energy in the spot market to cover this exposure even though it generated 1.9% more energy than its physical guarantee. With increased energy purchase and higher average prices in the spot market, the Company recorded EBITDA of R$333.8 million, with 55.8% margin. In order to mitigate the risk of exposure to the spot market throughout the year, in February 2013, the Company determined its seasonal adjustment for the year in a balanced manner with all contractual obligations in order to minimize any exposure to the spot market in future months. However, it may still have to purchase large amounts of energy during the year depending on the amounts of energy dispatched by thermal plants and the system physical guarantee. The Company is expecting the physical guarantee to be reduced by an annual average percentage that may vary from 4% to 9% in 2013 and thermal dispatch from 9.5 GW to 13 GW, respectively. According to this scenario, the Company would have to purchase 663 GWh to 1,163 GWh of energy in the short term market to cover the exposure caused by such reduction in an associated cost of R$ 231 million to R$ 441 million.
In March 2013, the Company held its 1st issue of promissory notes totaling R$ 498 million. The proceeds were used to refinance the first amortization of the 1st issue of debentures and allocated to modernization projects in the Company's plants. The proceeds obtained through the 2nd issue of debentures, to be performed by the Company, will be used to redeem such promissory notes.AES Tiete is going to pay as dividends a total of R$203.7 million, or 109.7% of net income in the quarter. The dividend yield on common shares and preferred shares stood at 2.7% and 2.8% respectively for 1Q13. AES TIETE INVITES TO: Conference Call / Webcast
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV