Oi (OIBR3) reverses loss and profits R$ 1.78 billion in 1Q22 – Money Times

Hi OIBR3 OIBR4
The company reversed a loss of BRL 3.03 billion recorded in the first quarter of 2021 (Image: REUTERS/Sergio Moraes)

THE Hey (OIBR3;OIBR4) recorded in the first quarter of the year a net profit consolidated balance attributed to controlling shareholders of R$ 1.78 billion, according to the report released by the company this Tuesday (28).

With this, the company reversed the loss of R$ 3.03 billion recorded in the same period last year.

According to Oi, the profit at the beginning of the year is due to a positive net financial result of R$1.87 billion and an income tax and social contribution expense of R$363 million.

Oi even postponed the release of results for the period from January to March 2022 twice. The company said that it needed an additional period to complete the work to prepare the Quarterly Information Form (ITR) in order to “ensure the disclosure of accurate, consistent and complete information to shareholders and the market”.

As reasons for the postponement of the financial statements to the market, Oi cited:

  • complexity of the asset segregation works in the three SPEs that make up the UPI Ativos Móveis and the need to obtain opinions from independent auditors for the respective financial statements of the three SPEs; and
  • conclusion of the sale of UPI Ativos Móveis and the sale of the control of UPI InfraCo with the consequent impacts on the preparation of the Company’s financial statements, and, consequently, on the audit of the financial statements of Oi.

On the day of the postponement announcement, the company even announced that its net revenue for the first quarter (operations in Brazil) reached R$4.38 billion, practically in line with the R$4.39 billion recorded in the same period in 2021.

Consolidated net revenue reported in the quarter was R$4.41 billion, against R$4.45 billion a year ago.

Ebitda (earnings before interest, taxes, depreciation and amortization) in Brazil totaled BRL 1.22 billion, compared to BRL 1.12 billion a year earlier.

The company ended the quarter with a cash position of BRL 1.98 billion, down 34.4% from BRL 3.02 billion between January and March 2021.

indebtedness

Consolidated gross debt jumped 18.5% year-on-year, to R$33.4 billion. According to Oi, the increase in debt was mainly a consequence of disbursements made in the period (2nd private debenture issue of R$ 2 billion and senior bond in the amount of US$ 880 million, both from Oi Móvel, and debenture in V.tal in the amount of R$ 2.5 billion).

“It should be noted that a large part of the proceeds from the senior ‘bond’ were used for the prepayment of the 1st private debenture issue of Oi Móvel, in July 2021, partially offsetting the increase in the period”, highlights Oi.

As a result, the company’s net debt totaled BRL 31.42 billion, 3.5% lower compared to the fourth quarter of 2021, but 24.8% higher compared to the first quarter of 2021.

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About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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