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Centrais Eletricas Brasileiras S.A. - Eletrobras (EBR)

- NYSE
  • Thu, Aug. 27, 12:11 PM
    • Petrobras (PBR +11.2%) management has recommended to the company's board that it delay a planned IPO of its fuel distribution unit because of deteriorating market conditions, Reuters reports.
    • The company has said an IPO of the BR Distribuidora fuel distribution business, which includes Brazil’s largest gas station chain with ~7,500 stations across the country, would depend on global and domestic market conditions.
    • Brazil equities are rising broadly today as China, the country’s top trading partner, makes efforts to bolster the market and the economy; VALE +7.9%, EBR +7.7%, ITUB +5.7%, BBD +5.1%, BSBR +3.4%, ERJ +1.9%.
    | 6 Comments
  • Tue, Aug. 25, 5:58 PM
    • Petrobras (NYSE:PBR) is among the Brazilian borrowers most at risk of seeing leverage ratios swell as the country's real posts the world’s biggest currency losses, according to a Bloomberg analysis.
    • For PBR, electric utility Eletrobras (NYSE:EBR), airline Gol Linhas Aereas Inteligentes (NYSE:GOL) and mall operator General Shopping Brasil (OTC:GBRAF), every 10% depreciation in the real boosts the companies’ debt-to-earnings ratio by a factor of 1x, Fitch Ratings says.
    • The companies, with a combined $60B of overseas bonds outstanding, are vulnerable to a falling real because they have high levels of foreign currency debt while most of their sales are in the local tender.
    • PBR’s $2.5B in bonds due 2024 have dropped ~9% YTD, EBR's $1.75B of bonds due 2021 have tumbled 13% since December, while GOL’s $325M in notes due 2022 have shed 17%.
    • ETFs: EWZ, BRZU, BRXX, BRAQ, BZQ, BRAF, UBR, DBBR, FBZ
    | 1 Comment
  • Tue, Jul. 28, 10:48 AM
    • Brazilian police arrest two people involved in building a nuclear power plant for Eletrobras (EBR -1.8%), pulling the state-run utility holding company into the huge corruption scandal surrounding Petrobras (PBR +2%).
    • Besides the arrests, the operation includes the execution of 23 search and seizure warrants in Brazil's largest cities.
    • Authorities are investigating a possible illegal cartel involved in the construction of the Angra III nuclear power plant, which was overseen by EBR’s Eletronuclear unit; construction of the plant began in 1984, was suspended after six years because of a lack of financing, was restarted by the government in 2010 and is expected to finish in 2018.
    | 2 Comments
  • Fri, Jul. 24, 11:48 AM
    | 21 Comments
  • Wed, Jul. 22, 8:40 AM
    • Petrobras (NYSE:PBR) confirmed yesterday it had found irregularities in the approval of a 2009 contract to provide naphtha to petrochemical company Braskem (NYSE:BAK) and had reported the issue to public prosecutors, as the Brazilian prosecutor’s office looks further into the giant corruption scandal surrounding the company.
    • Also, prosecutors have asked state-run power holding company Eletrobras (NYSE:EBR) for details of contracts signed with engineering firms under investigation in the Petrobras probe.
    | Comment!
  • Fri, Jul. 17, 3:59 PM
    • Brazil's political crisis deepens as Eduardo Cunha, the head of Brazil’s lower house, said today he is breaking with the ruling coalition.
    • Cunha accused Pres. Rousseff's administration of pressuring prosecutors to implicate him in the widening corruption scandal at Petrobras scheme; late yesterday, the federal judge leading the investigation broadcast testimony from a defendant who turned state’s evidence alleging that Cunha took bribes.
    • The move comes after a series of recent defeats in congress for Rousseff as lawmakers turned aside efforts to contain spending and raise taxes as she seeks to preserve Brazil’s investment-grade credit rating.
    • PBR -5.5%, VALE -2.2%, EBR -2.1%, ELP -2.9%, CIG -5.8%, CPL -2.1%, SBS -2.9%, BSBR -1.1%, BBD -2.2%, ITUB -1.5%.
    • ETFs: EWZ, BRF, BRZU, EWZS, BRXX, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
    | 8 Comments
  • Thu, Jun. 25, 3:57 PM
    • Brazil's financial markets were routed today after a news report that former President Luiz Inacio Lula da Silva could be arrested as part of the sweeping corruption scandal involving Petrobras (PBR -4.7%).
    • Investors were spooked by a report that a habeas corpus legal filing had been made on behalf of Lula to protect him from unlawful arrest in the corruption investigation; spokespersons later said the proceeding had not been filed by the ex-president or his representatives and that they had no prior knowledge of it.
    • Also, Brazil's non-seasonally adjusted jobless rate rose in May to 6.7%, the highest since 2010, from 6.4% in April, reinforcing worries that the country is on the verge of a recession.
    • Also: PBR.A -5%, VALE -3.6%, EBR -4.5%, ELP -2.5%, CIG -4.6%, CPL -2.6%, SBS -2%, BSBR -2.5%, BBD -1.1%, ITUB -2.7%.
    • ETFs: EWZ, BRF, BRZU, EWZS, BRXX, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
    | 34 Comments
  • Thu, Jun. 11, 12:58 PM
    • The corruption case afflicting Petrobras (NYSE:PBR) has spread to Brazil's largest electricity company, Eletrobras (EBR, EBR.B), which said yesterday that it had appointed U.S. law firm Hogan Lovells to investigate possible violations of domestic and international graft laws in its contracts.
    • EBR says the probe would focus on large contracts and those that involved construction companies implicated in the controversy.
    • The Fitch ratings agency says the corruption investigation will not prompt a downgrade of EBR’s credit rating but that the company still faces challenges due to its losses after the change in the government’s energy policies.
    | 7 Comments
  • Fri, May 22, 12:34 PM
    • Brazil stocks are sharply lower after Eletrobras (EBR -4.5%), the country’s largest utility by revenue, was cut to junk by Moody’s.
    • While EBR showed “some financial improvement” in its Q1 earnings, its credit metrics remain too weak to remain at investment grade, Moody’s said, also citing an investigation on alleged bribes involving the former head of a subsidiary.
    • Meanwhile, Pres. Rousseff is trying to salvage her presidency as things go from bad to worse amid the Petrobras (PBR -3.8%) corruption scandal, with a new poll finding that 63% of Brazilians favor impeachment proceedings.
    • Brazilian opposition lawmakers are considering impeachment, either as an accessory to the corruption or for crimes of “irresponsibility” with finances.
    • Also: PBR.A -3.8%, EBR.B -6.6%, VALE -0.2%, ELP -1.2%, CIG -3.3%, CPL -2%, SBS -4.7%, BSBR -2.7%, BBD -2.6%, ITUB -2.3%.
    • ETFs: EWZ, BRF, BRZU, EWZS, BRXX, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
    | 26 Comments
  • Wed, May 13, 12:45 PM
    | 1 Comment
  • Wed, Apr. 1, 2:25 PM
    | 13 Comments
  • Tue, Jan. 20, 5:49 PM
    • Monday’s massive blackout is raising concerns that electricity rationing may hit Brazil this year, dealing a major blow to the country’s already fragile economy.
    • Critics say the government's unwillingness to take politically unpopular actions, such as raising water rates and enforcing strict conservation, has made a bad situation worse.
    • The blackouts also caused some economists to revisit their forecasts; the chief economist at Banco Votorantim in São Paulo projects Brazil’s economy to grow just 0.1% this year, with even that figure too optimistic if electricity rationing occurs.
    • Relevant tickers: EWZ, CIG, CPL, EBR, ELP, BRZU, BZQ, UBR, DBBR, FBZ
    | 10 Comments
  • Dec. 12, 2014, 8:19 AM
    • Eletrobras (NYSE:EBR) says its board approved a plan to renegotiate 8.5B reais ($3.2B) in debt owed to Petrobras (NYSE:PBR), as part of a plan by Brazil's government to help the state-run oil company borrow money in capital markets.
    • Under the terms of the plan, Brazil's Treasury will guarantee 4.3B reais of the amount, while the remaining 4.2B reais will come from a government development fund financed with taxes that consumers pay on their electricity bills.
    • Separately, Brazilian prosecutors yesterday filed charges against 36 suspects in the corruption investigation alleging construction companies bribed public officials and overbilled Petrobras for contracts.
    | Comment!
  • Dec. 11, 2014, 9:42 AM
    • Brazil's government is working on a plan to help Petrobras (PBR -4.7%) borrow money in capital markets to help finance exploration and operational activities during next year, the mining and energy minister says.
    • The plan would involve the Brazilian government guaranteeing a debt issuance by PBR backed by 9B reais ($3.4B) in debt that state-controlled power utility Eletrobras (NYSE:EBR) owes the oil company, according to the minister.
    • Bankers say PBR risks being temporarily left out of capital markets as the widening corruption probe makes it harder for the company to raise cash in debt and equity markets.
    | 5 Comments
  • Oct. 27, 2014, 12:49 PM
    | Comment!
  • Oct. 27, 2014, 10:31 AM
    • It's an ugly open for Petrobras (PBR -14.2%) following Pres. Rousseff's re-election as Brazil's president, as hopes are dashed for a regime change that might have helped investor confidence in the country and the company.
    • Rousseff's victory "was not totally priced in yet," Loomis Sayles analyst Bianca Taylor says, adding that she expects a slump in Brazil assets as a whole in the next few days.
    • PBR and state-controlled utility Centrais Eletricas Brasileiras (EBR -12.3%) were the two worst performing stocks in the 834-member MSCI Emerging Markets Index this morning.
    • Also: VALE -5.9%, ITUB -6.5%, BBD -8.1%, GOL -7.6%.
    • Brazil ETFs: EWZ -6.7%, BRF, BRXX, EWZS, BRZU, BRAQ, BZQ, BRAZ, BRAF, UBR, BRZS, DBBR, FBZ
    | 6 Comments
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Company Description
Centrais Eletricas Brasileiras SA, along with its subsidiaries, is engaged in generation, transmission and distribution of electricity in Brazil. It operates in three segments namely generation, transmission and distribution segment.
Sector: Utilities
Country: Brazil