Brazil's CPFL posts higher 2016 revenues, but wider loss

Brazilian renewable energy firm CPFL Energias Renovaveis SA (BVMF:CPRE3) reported a 2016 net loss of BRL 143.7 million (USD 45.7m/EUR 42.4m) even as revenues grew by 9.8% year-on-year.

The company reached 2 GW of capacity last year. Thanks to the completion of the Campos dos Ventos and Sao Benedito wind power complexes, with a combined capacity of 231 MW, and other positive factors, CPFL Energias Renovaveis’ revenue grew in the year. Still, energy generation costs increased and there was a decline in generation in the closing quarter of the year.

Revenue in the year reached BRL 1.6 billion, including BRL 501.9 million generated in the fourth quarter.

Earnings before interest and tax (EBITDA) were stables in 2016 at BRL 1 billion, but fell by 27.6% in the closing quarter.

The annual net loss of BRL 143.7 million compares to a deficit of BRL 48.7 million in 2015. In the fourth quarter CPFL Energias Renovaveis turned to a loss of BRL 26.2 million from a profit of BRL 82.6 million.

In 2016 CPFL Energias Renovaveis’ investments reached BRL 929.8 million.

(BRL 1 = USD 0.317/EUR 0.294)

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