Brazil's Eletrobras cuts Q4 loss as short-term contracts increase
RIO DE JANEIRO, March 28 (Reuters) - Brazil's state-run Centrais Eletricas Brasileiras SA (Eletrobras), Latin America's largest utility, said its fourth-quarter net loss fell 78 percent from a year earlier as it sold more energy on short-term contracts and received regulatory credits.
Eletrobras lost 1.2 billion reais ($369 million) in the three months ended Dec. 31, having lost 5.4 billion in the fourth quarter of 2013, the company said in a statement.
Its full-year loss fell by more than half to 3 billion reais from 6.1 billion in 2013, the statement said.
The fourth-quarter result was driven by a more than doubling of short-term electricity sales. Brazil's utility regulator Aneel also granted a 1.2 billion real credit for previous investments. Non-cash income related to the Aneel's reevaluation of regulated assets nearly tripled.
The company also earned 567 million reais on power-project contracts, most from the Jirau e Itaparica dams, the statement said. The company also made a 2 billion real provision for possible legal judgments against the company.
However the company gave only a summary of its results and its formal fourth-quarter earnings release to Brazil's CVM securities regulator was missing a consolidated balance sheet, income statement and cash flow statement.
The filing only had balance sheets, income statements and cashflow statements for Eletrobras' subsidiaries.
Eletrobras's losses had soared in the wake of a decision by Brazil's government to extend expiring hydropower concession contracts for 30 years in exchange for steep reductions in rates for electricity generated by its dams. ($1 = 3.25 Brazilian reais) (Reporting by Jeb Blount; Editing by David Holmes)
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