UPDATE 1-Eletrobras posts Q4 loss of $2.85 bln on impairments, provisions

jueves 31 de marzo de 2016 00:50 GYT
 

(Adds details on provisions, impairments, revenues)

SAO PAULO, March 30 (Reuters) - Brazil's state-run Eletrobras, Latin America's largest electricity utility, posted on Wednesday a net loss of 10.438 billion reais ($2.85 billion) for the fourth quarter, due to impairments and provisions for potential legal liabilities.

The final quarter's results pushed 2015 losses to 14.954 billion reais for Centrais Eletricas Brasileiras SA, as the financially strapped company is also known. The company posted a net loss of 2.96 billion reais in 2014.

In the third quarter, Eletrobras posted a net loss of 4.01 billion reais due to a massive impairment charge on its Angra 3 nuclear plant.

For 2015, the company said it kept aside 7.08 billion reais in provisions for outstanding court cases, that could be decided against the company, 5.28 billion reais of which were for its main generation subsidiaries - Furnas and Chesf.

Eletrobras stated it had recognized 5.99 billion reais in impairments, of which 4.97 billion reais was for Angra 3 nuclear plant. The country's third nuclear power plant was ensnared in a corruption scandal involving over-billing and kickbacks by large engineering firms to officials in state-run companies and political parties.

Net operating revenues fell to 7.86 billion reais in the fourth quarter from 7.90 billion reais in the third quarter and 9.67 billion in the last quarter of 2014. Net operating revenues rose 8 percent across 2015, however, to 32.59 billion reais as compared with 30.14 billion reais the year before.

Brazil's economy is still in the grips of a deteriorating political crisis and economic recession, both of which are turning out to be among the worst in the country's history.

($1 = 3.62 Brazilian reais)

(Reporting by Reese Ewing; Editing by Simon Cameron-Moore and Sherry Jacob-Phillips)