Latin America’s largest power utility to report Q1 earnings
Brazil’s state-run power utility, Centrais Eletricas Brasileiras SA, will publish its first quarter results today. The announcement comes within the context of the company’s preparations to privatise, which was initially planned for this year.
Eletrobras has seen an increase in activity from some of the world’s largest hedge funds, mainly motivated by the market-friendly reforms of President Jair Bolsonaro’s administration. Despite investment limitations during the last few years, Eletrobras has consolidated its position as Brazil’s main power utility company, reporting a net income of $2.1 billion in 2019.
However, Eletrobras was recently removed from Norway’s sovereign wealth fund due to concerns over the company’s association with human rights violations and environmental destruction. Some of the company’s projects, which include construction in the Amazon, have been met with protests by environmental groups.
Brazil’s GDP is set to contract by as much as 5.3% this year and the Brazilian parliament has voiced concern regarding foreign organisations taking shares in the company. The company’s privatisation will likely be moved to 2021 as politicians focus on controlling the spread of COVID-19 and the company takes steps to refinance its debt.
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