AES Brasil (AESB3) has a loss in the 4th quarter and the water crisis weighed heavily in 2021 – Money Times

AES Brazil
AES’ net operating revenue, in turn, increased 37.5% in the fourth quarter, to 731.9 million reais (Image: AES Brasil/Linkedin)

The renewable energy generator AES Brazil (AESB3) announced this Thursday that it recorded a net loss of 34.8 million reais in the fourth quarter of 2021, against a positive result of 602 million reais recorded in the same period of the previous year.

The profit before fees, taxesdepreciation and amortization (Ebitda) totaled 205.8 million reais in the quarter, a decrease of 82.4% in the annual comparison.

The decline in indicators mainly reflects non-recurring effects, such as the accounting at the end of 2020 of the hydrological risk renegotiation (GSF), which positively impacted the company’s numbers at the time.

The generator was also hampered by the adverse hydrological situation last year, which affected its portfolio of water assets.

“GSF took the year as a whole, it has a certain effect on the quarterly result… with the active management of our portfolio and energy purchases, we were able to reduce the impacts of the water crisis within the annual context,” the CFO told Reuters from AES Brasil, Alessandro Gregori.

In 2021, the company ended the year with a net profit of 516.5 million reais, 39.1% lower than the figure for 2020. Ebitda, on the other hand, totaled 903.9 million reais, down 56.3%.

AES’ net operating revenue, in turn, increased 37.5% in the fourth quarter, to 731.9 million reais, and grew 24.9% in the year, to 2.5 billion reais.

positive year

For 2022, AES Brasil sees a scenario of greater business normality, after the challenges with the 2021 water crisis, and should continue to invest in the expansion of its portfolio of renewable energies and products to meet the growing free market.

“Today we are already less exposed to variations in hydrology. And by 2024, with 4.7 GW of installed power, considering the contracts that enter until then, we will already have more than half of the Ebitda coming from wind and solar sources”, said Gregori.

According to him, the generator continues to seek contracts with consumers in the free market to expand its parks under construction, in addition to exploring new opportunities in retail sales, a segment in which it already holds a 10% market share, he said.

In parallel, the company is also evaluating the potential of new markets in the electricity sector, such as batteries for energy storage, offshore wind and green hydrogen production.


The generator also updated its investment projections (Capex) in the coming years.

For the period 2022-2026, the plan contemplates around 3.8 billion reais, considering the construction of the Tucano (BA) and Cajuína (RN) wind farms, in addition to the modernization and maintenance of operating assets.

Most of the BRL 2.7 billion contributions are concentrated this year, when the company should complete the first phases of the Bahia wind farm, with 322.4 MW, and proceed with the construction of Cajuína, with 381.9 MW already contracted and which starts operating in 2023.

See the result below:

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