Maintenance of Adverse Hydrological Conditions Generate Negative Result for AES Tiete, but are Beneficial to Long-term Contracts

USA - English

• Brazil - Português

BARUERI, Brasil, Feb. 25, 2015 /PRNewswire/ -- 2014 was challenging year for the electricity sector. High temperatures and critical hydrology resulted in reduced hydro generation and increased thermal dispatch, aiming to ensure the recovery of reservoirs and guarantee supply. Such a scenario exposed the Company to a high physical guarantee reduction in the ERM of 9.3% in 2014 (vs. 0.31% in 2013) and high spot market prices (R$ 689/MWh in 2014 compared to R$ 263/MWh in 2013). This led to an increase of R$ 1,526.7 million in energy purchase costs compared to R$ 235.4 million in 2013. The elevation of the physical guarantee reduction in the ERM in 2014 resulted in a negative impact of R$ 816 million in the Ebitda.

The 2014 EBITDA was a negative R$ 917.9 million and the net profit was R$ 449,3 million.

The Company's commercial strategy after 2016 progressed in 4Q14 with the sale of ~40MWavg at an average price and term of R$ 189/MWh and 3.3 years. The current portfolio totalized 83% of its available energy for 2016, 73% for 2017, 46% for 2018, 24% for 2019 and 11% for 2020.

AES Tiete (BM&FBovespa: GETI3 and GETI4)  reduced its manageable costs in 6%, bypassing its initial estimate and reflecting the gains of efficiency reached in year of 2014.

In 2014, the unscheduled outages of power plants was reduced in 35% (compared to 2013), a reflection of the Company's good maintenance and reliable practices.

The power plants modernization program received investments of R$ 185.9 million in 2014, directed mainly to the plants of Agua Vermelha and Barra Bonita, aiming at AES Tiete's continuous improvements of operational conditions and greater efficiency of the plants.

Conference Call and Webcast
Date: Thursday, February 26th, 2015
Hour: 11h00 (BR) / 9h00 (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: 7507267# 

Available: 02/26/15 to 03/04/15

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

SOURCE AES Tiete

Related Links

http://ri.aestiete.com.br