The ordinary shares of Centrais Elétricas Brasileiras, also known as Eletrobras, saw a 2.5% increase after the Brazilian electric company reported a rise in profit for the second quarter compared to the same period last year. The ordinary shares reached 37.15 reais, while the preferred shares rose 1.5% to BRL41.62 reais. Despite these gains, the ordinary shares were down 14% from last year’s end, while the preferred shares were down 5.2% during the same period. In early trading, Brazil’s benchmark Ibovespa stocks index was down 1.1%.
Eletrobras announced on Monday evening that it achieved a net income of 1.6 billion reais in the quarter, equivalent to $327 million, compared to the previous year’s 1.4 billion reais. Net operating revenue also experienced growth, reaching BRL9.2 billion from BRL8.9 billion.
Analysts at XP Investimentos noted in a research note that Eletrobras posted better-than-expected generation and transmission results. The earnings report also indicated that efforts to reduce operating expenses could start showing positive results in the coming quarters.
It is clear that Eletrobras’s continued focus on enhancing operational efficiency and generating increased revenue has contributed to this positive performance.