AES Tiete: Adverse Hydrological Conditions Generate Negative Result but Benefit Long Term Contracting
BARUERI, Brazil, Nov. 5, 2014 /PRNewswire/ -- The third quarter of 2014 was characterized by a reduction of the Reallocation Mechanism energy (MRE) of 15.3% and by a elevation of the spot market price in the period (R$ 676.44 /MWavg in 3Q14 from R$ 182.71/MWavg in 3Q13). This quarter, due to the adopted seasonality strategy for the year, the Company went from a selling position in the spot market throughout the first half of the year, to a buying position, which resulted in an increase of R$ 446.4 million1 in cost of purchasing energy on the spot market in the 3Q14 compared to that recorded in 1H14 (R$ 584.5 million1), in line with the guidance released since the first quarter of 2014.
The calculated EBITDA for the period was a negative R$ 69.7 million and the Company closed the 3Q14 with loss of R$ 83.6 million.
The Company's energy marketing strategy of the after 2016 advanced in 3Q14 by selling ~50 MWavg at a price and average term of R$ 170/MWh and 3.5 years.
On the operational side we continued to improve our policy of managing physical assets. In 9M14, there was a 45% reduction in unscheduled outages of power plants of AES Tiete (vs. 9M13) reflecting good maintenance and the company´s reliability, which already closed 2013 at reduced levels.
The modernization program of the plants received investments of R$ 48.6 million in 3Q14, mainly destined for the plants of Agua Vermelha, Barra Bonita, Promissao and Bariri, which aims at continuous improvement of the operational conditions and efficiency of AES Tiete plants.
Conference Call and Webcast
Date: Friday, November 7th, 2014.
Hour: 11h00 (BR) / 8h00 (EST)
Connection:
BR: (+55 11) 3193-1001 or (+55 11) 2820-4001
USA/Other Countries: (+1) 786-924-6977 or (+1) 888 700-0802
Conference Code: Tiete
Replay: (+55 11) 3193-1012 ou (+55 11) 2820-4012
Code: 9839452#
Available: 11.07.2014 to 11.13.2014
Slide presentation will be available for viewing and downloading on the website: http://ri.aestiete.com.br.
The conference call audio will be broadcasted live over the internet on the same website, remaining available after the event.
Contact RI
INVESTORS RELATIONS
Address: Av. Dr. Marcos Penteado de Ulhoa Rodrigues, 939, Bairro Sitio Tambore, Torre II
Condominio Castelo Branco Office Park - CEP 06460-040 - Barueri – SP
Phone: (11) 2195-7048 E-mail: [email protected] Website: ri.aestiete.com.br
[1] Normalized by the net impact of the spot market settlements
SOURCE AES Tietê
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