Centrais Elétricas Brasileiras S.A. – Eletrobrás (NYSE:EBR) Q2 2022 Earnings Conference Call August 15, 2022 1:30 PM ET
Company Participants
Rodrigo Limp – President and CEO
Elvira Presta – Director, Finances and IR
Camila Gualda Araújo – Director, Governance, Risks and Compliance
Pedro Luiz Jatobá – Director, Generation
Conference Call Participants
Ale Souza – TC
Maria Carolina – Credit Suisse
Andre Sampaio – Santander
Henrique Peretti – JPMorgan
Jonah Fredie – Studio
Marcelo Sá – Itau Corretora
Pedro Manfredini – Goldman Sachs
Eduardo Lagares – Montara Capital
Operator
Ladies and gentlemen, thanks for standing by. Please be welcome to the earnings conference call from the second quarter 2022 from Eletrobrás. We present today Eletrobrás team here, we have with us Mr. Rodrigo Limp, President of Eletrobrás; Ms. Elvira Presta, Financial Director, Investor Relations; Mrs. Camila Gualdo Araújo, Governance Director, Risks and conformity; and Mr. Pedro Luiz Jatobá, Generation Director.
We let you know that this video conference is being recorded, and it will be available at the company’s IR website, where the current presentation is going to be available on both languages. We highlight you that whom may ever need simultaneous translation, it’s going to be available at the globe icon with an interpretation located at the bottom area of your screen. By selecting it, choose your preferred language, Portuguese or English. For those listening the video conference in English, there is the option to mute the original audio in Portuguese, clicking on Mute Original Audio. [Operator Instructions]
Before we proceed, we’d like to let you know that possible statements being made during this video conference related to perspectives of business of the company, projections, operational goals and financial goals as well, they constitute beliefs and premises of the company, like as information is currently available with the company. Future considerations are not guarantee of performance because they involve risks and uncertainties that may depend on things that may or may not happen. Investors must comprehend that these economical conditions and others operational factors may influence on the results expressed in these statements.
Now I’d like to give the word to Mr. Rodrigo Limp, President of Eletrobras, so that we start our presentation. Mr. Rodrigo, please go ahead.
Rodrigo Limp
Thank you very much. Good afternoon to everybody. We are now starting, talking to all of our partners here of Eletrobrás. They were presented and would like to let you know, and thanks to everybody that’s here with us with the conference call. With the reports of Eletrobrás right now after the — we have after we capitalized — after our private capitalization. And it brings me great satisfaction, always a great satisfaction to show the results of the company on this scenery — on this special scenery that we have here with us at Eletrobrás if we follow these last few years.
And by starting our presentation, going to the first slide of our company’s highlights, and where I told you guys about some of the highlights on the second quarter, without a doubt, the biggest one was the privatization that we catered BRL 30.8 billion, including the the greenshoe development, and that’s why we achieved this number, was superior of the minimal valuable that we had available that we expect to do the payments. And currently, we are not counting on the values that we had on the previous negotiations, and these values captured by mainly with Eletrobrás.
And after the capitalization we’ve got on June 17, the contracts are concession, all the contracts available of the 3 companies referring of the 22 [usings] with capitalization, 17 with the quota and the other — where the other factors that were ending the concession. And we’ve had new contracts for over 30 years. It’s going to be starting in January. And we’re going to start this project of oncotization that’s going to generate 6.7 gigawatts million and with go into context of Eletrobrás about governance.
We had the election of our administration council on August 5 or a few days ago, and we got only 1 team, and they assumed that they got power grid on the same day. 80% of the Board, they were considered independents of the roles. And in the same day, we had the election as well of Wilson Ferreira, former President of Eletrobrás. He’s returning as the CEO of the company. And we define it as well, it’s going to be happening until the end of September and also as highlights of the company.
And we’ve talked about the projects of capitalization. We have the CDE as well. We’ve got a reinforcement of BRL 1.1 billion on the funds. It was a really positive development and Elvira is going to be showing us later and all we have as well says. And it worked on a — with a gray highlight on this of the control average of control before the capitalization. And now after capitalization, we’ve had — we assumed the company with another election of the new administration counsel. And as the president right now and Elvira and [indiscernible] as well. And we’ve had a participation of 72% of the contract the company, and it’s going to be consolidated the results. It’s going to be after the next quarter.
And going to the next highlights. And now we’re going to say about the capitalization highlights as well, but acknowledgments, and we were knowledged again as well with the ranking on the Latin America is active team. And here, we were awarded with the CFO. Elvira, she was the — she got the second place on the Electric and Other Utilities. And about Investor Relations, we were awarded the third place. We particularly — I’m talking about all the other directors and also the Investor Relations, for me, it was the first place, but we were really happy with this award that our teams achieved. And we got another acknowledgment on ESG. And we got this on other subjects as well with other adaptation.
But about the responsibility, about ESG, we got the top 1 on the electric topics. And about the weather changes, about the employees and leaderships, reinforcing what Eletrobrás believes. And we had as well the third on National Olympics on innovation and energy, where we prefer professionals and students with projects of innovation on energy. And we have the agenda as well about ESG.
We’ve presented some results of projects and initiatives of the companies of our group that would contribute to the challenges that may happen on the agenda — 2030 agenda that we have available on our website as well. And I would really recommend both subject for you guys to access. These thematics, they are constantly with us here in Eletrobrás. And more and more, we’re going to be showing this. We are reaffirming our compromise with the sustainability.
And going to the next slide as well. We are going to talk about capitalization and post capitalization of Eletrobrás. Now I’m going to present some information about capitalization and then about the results. The financial results, I’m going to ask that Elvira will do the presentation.
But right now, we have a map showing other positions. Our structural positions, pre-capitalization and post capitalization. And we have the main shareholders on the government side and if you look on the line about entities. And we got out of a company without capitalization with 72% and 61.78% total. And now with the post capitalization, we have 42.67 online. And on the total amount, we’ve got 39.07%. And with the results with the PPI, the union told us that — recommend that we must have only topped 45%.
And since we got this below 45%, and this worry about the disposal emissions that we collected in the resources, additional resource that we got this. And they reduced the numbers for the union. And we have a true corporation as well that we got an improvement of 10%. And it’s effectively working right now as we can show — as we showed on the last assembly with our investors. And we have this graphic as well to show you guys with Itaipu and Eletrobrás. And it already went through the chain of command of ENBPar. And now we’ve got our participation as well from Eletronuclear.
And going to the next slide as well about the governance of the company. On this day on the spot capitalization, we had the election of the new council, and we have the picture here, to you guys the elected ones, but not all of them, to some of them, of some that were present there, we’ve had 8 counselors that took action on August 5. And as we said, we had the election of Wilson Ferreira as the CEO of the company. We’ve had a little bit before the assembly on July. We’ve got a new directory of the company of institutional assets. And on the same August 5, we had the election of Wilson for the CEO. And he also elected to be as CEO of the Regulation Institutional Relations Board.
And I am supporting him as a CEO until he takes action, and it’s going to be happening until September 20. And we’re talking about him with all the process, all the transition process from [indiscernible] to here. And it’s going to be anticipated probably from September 20.
2 counselors, they didn’t took action yet. One of them told us that it’s going to be — take action — it’s going to be a [indiscernible]. And the other one is Leone Piani, he has studied actions to take action from August 5. He has until September 4 to take action of the administration counsel as well.
And going to the next slide. We’re going to talk about the priorities, strategical priorities that we have post capitalization with Eletrobrás. And before we talk about this, it’s important for us to let you guys know that we’ve already been working on this with capitalization. We look at strategic programs that we have from 2020 and 2025. And we have — amongst other scenarios, we have a really good project with capitalization and of our work plans. It was approved last year. We were projecting on our horizon, the capitalization was on this project.
And with this administration as well, with the administration counts and the return of Wilson as a president, naturally, it’s going to be updated. But the directions that we are going to have, most of them already defined right now. And we have some priorities. One of them is controlling the cost of the company, simplifying the structures, reduction of the expenses. And what we’re going to face as a priority for the new administration, we have as well the growth opportunities with new business, participation in auctions in the free market and as we work with some projects as well.
And again, with the auctions. We are going to be operating with M&A, and everything is aligned with our main goals of capitalization to improve the areas that we can work on, because we reduced a lot with our investments on the last 3, 4 years. And now with the capitalization, we have a bigger capacity to get revenue in working with our costs.
And with our conditions, we are planning to be an even more active player with the sector of energy and looking about new business as well. And with the new technologies, the green energy, we’re going to study deep within this and their technologies as well of renewable, energies.
And Eletrobrás plans to work this with new renewable sources, another front that we want to work on, including discussing with one of our new counselors is about the passage that we have with us. We focus on loans right now. We have some strategies of negotiation, with this passasge working with the negotiation, generating value to the company. In another front, we have the question about efficiency, tributary efficiency. And we were talking about this with the market representing on our road shows at our investors, these possibilities, to generate value, to enrich value with this capitalization.
And like on here naturally, we’re going to have an opportunity of questions from investors, and we’re going to have the press conference. And we’re going to — we can put some more details on this.
And talking about on the next slide with managing the people staff. When we talk about all the flexibility, about managing staff with the privatization. When we are not a state anymore, we can now even have new hirings without these tasks, these events that’s a slower process. And now we can hire in a faster way in each activities. So it’s a possibility that we have right now to manage the staff.
We’re going to be altering the salary policies, remuneration working with the democracy, generating value to the company and the staff as well in retaining talents here in the company with us because we are working with this, keeping people with us with the administration teams, we celebrate it as well. [indiscernible] on the ACT we have with a lot of companies. We have a project of 2 years. And it gives a profitability not only to us, but with this staff as well, the people about the opportunity, it’s all going to be happening. We had a lot of rounds of negotiation when we participated with this — bring this possibility and this flexibility to manage the staff, manage the people. And with the good actions that companies do, we’re going to be doing from now on.
Some highlight points. We are going to be checking the salary by IPCA for the next few years and about letting some staff go. And it’s going to be
— only going to be able to happen with the — bit of actions. Before the capitalization, it was able to do, and we have a 2-year gap to work with this.
And we have this available when they have possibilities to separate in 2 areas as well. And about — if we let some staff go, on this first year, it’s going to be only to the retiring staff. And on the second year, we must keep at least 20% of the employee area until April 2023.
And this is a combination of, of course, maintaining the staff, managing all we can. And all of this happened with a constant dialogue with all the staff, with the syndicated and it was respected and as well with the legislation house and about the new employees. And it’s going to be happening after the capitalization. The rules — the following rules that are mandatory right now, they are going to be new. There are going to be different ones. There are going to be new rules for them to follow. And on the chart that we have on the side, we have the number of employees. We’ve got a lot of questions about the employees, number of employees that we have had. And when we’ve had the Eletronuclear suppose as well and to talking about the total of it, we have 10,508. And now talking about our overall, the group of companies that we have here with us, it’s going to be reduced.
And going to the next slide as well. We’re talking about the business generation in this quarter on our generation capacity of Eletrobrás and what we are used to — of the [50 giga] it was used to and with the capitalization. And when we lost Itaipu Eletronuclear, we’ve lost this number. We have right now 42.547 of capacity. It was about 23% about the total amount of the country in Brazil.
And we talk about the energy generated in 2022, the participation on the energy production, it’s a little bit bigger for our capacity. We have about 35% of the capacity. And talk about [indiscernible]. And we have a higher capacity from our administration because we have a lot of users available to work with us, [indiscernible] users that are able to work with us. And when they want to work with us, it’s available. It’s able to happen with an increased number, talking about installed capacity. And when we talk below, we have the [50] guarantee for the next few years. We have the beginning of the [uncotization] starting 2023. And we have 7.45 cotization. It’s going to be turned down to 0 in 2023. And we already consider this reduction of guarantee on the using this from Eletrobrás. And it was approved by same [there].
And we have a big challenge ahead of us talking about commercialization of the energy. And starting with 2027, we have this number of energy to capitalize with the companies or the country. And with these 15 gigahertz, [proof] of 1 cotization. And we have some contracts that’s going to be ending on the next few years. And without a doubt, secure it. It’s going to be end 2024. And when we extended with GSF, it went through 2026. And now we have 30 more years to work with this and the other users, that it’s not inside this project, but they already stay with this energy consumption with us for the company.
We have a big number — a big challenge for the energy area of the West with us, and it’s a big opportunity that we must achieve a higher number. We expect a lot from these companies with these capacities of generation, with synergy to achieve a big value to the company. And when we check about energetic balance for 2022, when we look at the numbers here, most of our energy is with cotization is almost 50%. We have a 13.6% area with assay. And with the free market in the short-term markets, we have a big number of 36.9%. And with an unhired energy area, we have 2.2%. And it shows that we have a significant area of energy already with the premarket.
And with this uncotization of the market, it shows that — it doesn’t show that we’re going to be working from scratch. We already have an expertise with the market, and now we’re going to be working with this showing — getting more knowledge, showing more efficiency. And it’s going to be a bigger challenge. And the deadline in service, it’s going to be a short time, about 5 years. It’s going to be a big challenge for us. But what it brings confidence to us is that we have an expert — a big expertise with this and want to improve this on the market.
And as we work with these last few years and also the last few months with the capitalization on the short term and when we think about medium and long term as well. And concluding this, when we go to the next slide, I’m going to end this first part of the presentation with the general numbers with the highlights of the company on this second quarter and when it were quite concentrated with this capitalization numbers and some relevant themes about Amazonas Energia. And Elvira is going to be showing with more details.
Now I would like to thank again everybody’s presence here. I’m going to give the word back to Elvira to start with her presentation, and we’re going to be working with the Q&A.
Elvira Presta
Thanks, Rodrigo, and thanks, everybody. It’s good here with us with the conference call from here. We’re going to talk with the details about the financial performance. And we talk about the highlights that we have here available.
When we look here on the left side, it shows the — yes, it shows a net income here. And we can compare from this quarter and look on last quarter, we have a revenue, an improvement of 19%. For 2021, it was about 39%. And related to last year as well, about the revenue, it was negative. We’re going to be showing up ahead of us these numbers. And we got this reduction of almost 45%.
And we show the highlights as well, the positive points and the negative points that we’re going to be showing here like really quickly with the slides as well — on the slides. And we look on the top area on the right side, we’ve got a big number of transmission revenue. It was BRL 1.288 million, it was improvement of 35%. We have got, I think, a liquid effect of capitalization of BRL 742 million.
As Limp told us of our — yes, shareholders, we saw some — yes, we had this number of [1,100 million], as Limp told us before. NOS took amount of this. But the number that we got here, it was about BRL 415 million, the past number. And Itaipu participation, we’ve got a positive effect of almost BRL 900 million and the negative effects that we had here with us, and it’s going to be detailed after next slides, is the — it were about BRL 7.7 million — BRL 707 million with provisions solidities, and we lost these investments in size and should complement on this. And we talk about the variation exposed the passive of BRL 1.542 million.
And we’ve got this complement. And as I mentioned about this, it was an important number that had show us on the cash flow. You got this loan of [BRL 1.322 million — dollars], sorry, as well. And when we update the loan, it was a negative of BRL 477 million.
And when we talk about the effects of capitalization on the second quarter of 2022, I know it’s quite complex, but we had to synthesize how we register these effects on the balance sheet, yes, for the passive effects that we have and on the result as well.
Just remind you on this capitalization process on the law, on the resolutions with the [indiscernible] that you got all these processes. They were defined as the amount of value that we check these numbers for more than 30 years with the need to work in some regions of the country to get — check this. And we had a right to work with the [indiscernible] mainly because they weren’t 100% okay. And we had a credit from CCC to get.
And with this introduction, this amount, it totals about BRL 75 billion on the total, as you can check on the top left side. And how this BRL 75 billion is going to be showed up and the first line that you can check on the chart, it’s going to be the obligations of the project on the investments that we had with renewable sources, green sources on the Amazon area. And this was about BRL 6.7 billion and about the obligations of the CDE, it was about BRL 33.735 billion and the bonus that we got, BRL 26.623 billion. And the number that you had to be on the bonus and with the holding, we’ve got this number of BRL 2.907 billion. And with the Tucurui, it was BRL 5 billion. And this is what checks with the BRL 75.021 billion. And there are relevant assets that we have available here from now on, these obligations. With the projects, we had a negative, and we have as well the obligations with CDE. And also with the expenses on the first years, we expect BRL 2 billion of expenses with [indiscernible].
And we expect the results from the second quarter, as we can show here, we expect BRL 742 million. And we show these numbers as we can check, we can check this on the quarter. As I showed on the top chart on the left, we had 5 billion, but it was registered on our balance sheet historical value. And that’s why there is a difference. And we were checking these numbers about the transfers with the Itaipu, and they had a historical value, the original value from Itaipu were as we put everything right. And we got this number of BRL 1.98 billion.
And about the residual loss, we should pay in the [indiscernible], we had some residual months that we had to pay this. And it was almost about BRL 2 billion. And about the gross score, the ROS score, and we have this total number of BRL 742 million positive for the second quarter. And here on the right, we have the number — the relevant numbers here with us. On the follow-on, as Limp said, we had BRL 26,362 million and more about the BRL 4 billion of the green shoe. And we had to pay BRL 26,623 million above the bonuses. And we had to pay also BRL 5,264 million of CDE. And we paid this on the last — in the end of the July, also the bonus and the CDE as well.
Okay. Then we can go to the next slide right now and where we can talk about the context of the commercialization pact. And it was — we’ve got an improvement about the ideological — ideas of the company. You can see on the chart on the left, end of the chart on the right as well, we can see about the price levels. It’s right stabilized compared from what we have on the last year. And despite the — despite we have lower prices and we have a better situation, weather situation. And it didn’t impact us by resulting the energy.
And we can see on the bottom chart on the left side, we had the numbers on the second quarter from last year and on the right side from this quarter from this year. And we went through 5.10 to 5.23. And we’ve got an improvement on 191.2 megawatts. And we’ve got an improvement on the prices from — yes, from these numbers or megawatts on this right from 191.52 megawatts to 288.63 megawatts. And we had our contracts either with us. And Limp showed us that the energy, it is around 47% as we can show here on the charts. But revenue right now was around 20% on this chart on this quarter.
And as we can show results right now and on the graph that we have here on the left and on the first 3 columns. And we have the numbers here to show with the IFRS. And then on the next 3 lines, we have the recurring informations. And on the right-hand side, we have some items that we should highlight, since we have — some next slides next, and you’re going to be able to see this with more details right now.
And we talk on the first line right now with the gross core. And the main highlight here, it was the improvement of the transmission energy. It is partly related with the RBSE. And it happened on the third quarter last year. And when we compare from these quarters, these last quarters, the effects weren’t too high. And when we look on PMSO, we had an improvement of 13%. And on recurring areas, we had 21%.
And we had some deals, collective deals, but I’m going to show this ahead. And about the provisions and about Amazonas Energia in San Canton, we’re going to highlight them in other slide.
And the financial results, we had a negative impact on cash flow of BRL 1.5 billion. And on the recurring as well, when we checked, it was BRL 1.417 billion, with IFRS and recurring as well. And when we are going to be on with more details on the next slide, we’re going to present here the evolution of the raw revenue here.
We’ve got an improvement of 70%. And when we look on the bars here on the darker side, we left from almost BRL 9 billion as revenue from last quarter to BRL 10.5 billion on this quarter. And it helped with the transmission. And we can see on the chart, the evolution that we have on new construction. And it works with [indiscernible]. We’ve had a success with reinforcements and improvements when we created the base energy here with us. And on the highlights, it was more than BRL 350 million of improvement right now.
And going to the next slide. We bring some details on. There are revenue generation, and we got an improvement of 37% here, and we see on the negotiation right now. And on the left side, on the top area, it shows where we negotiate here. It’s going to be regulated with the quotas, the bilateral contracts and the short term, the first line, the regulated contract. It was really — it’s almost aligned from what we had based on the last year, but we got an improvement of revenue in the quotas as well. It didn’t change. And the bilateral as well, we got a negative of 2%, but we could get better contracts with better prices. And it was an impact with some relevance with Eletronorte with some [indiscernible] situations in that. And it explains this increase of 13%.
And the short-term area with the light blue area and shows a BRL 300 million less negative. But we had a positive contract number of BRL 165 billion and bilateral BRL 239 million as well. But on the end, the hydroelectric quotas, we had BRL 75 million positive. In short terms, we’ve got an active of BRL 310 million. But it was above BRL 200, but right now, it’s about BRL 55.70.
And now we leave the generation. Now we’re going to be talking about expenses, operational expenses. The top chart here, right, it’s going to be the IFRS area. And we got improvement of 13%. And the recurring one, we got 21%. The green bar, it shows about the staff on the graphic. It’s our main expense, shows about almost 50%.
And as you can see on the right side, we talked here briefly. The main impact, it’s about the deals that we had with the staff. And we close here on gererate the ACT for this year and the IPC as well, and it was higher compared to last year. And at the same time as last year, we didn’t have registered the numbers of the last year. And we got this number on the end of the year. and we got this number of 6.76. So this impact, with the deals from this quarter, we didn’t have it last year at this time. And this improves our staff as well. And the other aspects, they are less relevant numbers to get the attention of you guys on this impact. From what happened, it was mentioned right now.
And going to the next slide and about the operational provisions that we have here, it’s a constant theme here with our results and the chart that we have on the left side. On the same time in the last year, we had a total of BRL 906 million. And on this year, we got BRL 2,238 million. And on the yellow line, we have the contingency lines that we had. We have some processes with Chesf and K factor as well. It was about the construction of uses and with the IGPM corrections and other functions that we should check and put these numbers.
And in Furnas as well, we had to reclassify the risk from probable with this process. And it gets the amount of BRL 67 million. And about the loans, and we have nothing relevant right now. The only information that we had about the situations we already talked in the last slides. And when we talk about the reversion of losses, investments, just to remind you guys, when we finalize the balance from last year when it happened in March, in February, you had the results that Santo Antonio was condemned to pay about BRL 1.5 million from the time. And Furnas still had 43% for this company, and we had the provision for this 43% and got the number to check about this.
And when we close this, we had the assembly to improve the social capital of Santo Antonio, and it was approved right now. But the main partners, they borrowed it. And then these numbers as they import these options. And this number, the total number that was total to was about BRL 1.5 billion.
And talking about PCLD on the growing line with Amazonas Energia. I’m going to be showing up to the next slide, and we have some more details here to show you guys. And about the Amazonas Energia debt. And we had about 50% of provisions of the total amount, and that’s more than what we expected. And in this quarter, we had improvements. It’s almost 60% of provision. We have the active numbers available to receive, talking about the holding and the Electronorte as well. And it totals about BRL 7,100 million. And the credits, we have BRL 1,200 million. And the provision credit, we have BRL 4.183 billion. And on the top line, we have the debt — financial debt of the holding. That exists because of the projects of the privatization, and we have credits to pay about BRL 470 million.
And the center slide chart is about the debt with the energy with Eletronorte, part of it, and we must highlight here, down here. And since May 2022, we had a full reinforcement of funds, and Amazonas Energia could try to liquidate to get these numbers faster. And this would allow that from May to — would be able to pay the total amount of this picture. But we still have some older debts that we already checked. It was about the ICD. That’s on the second line here. And the total amount of the debt of Amazonas Energia with Eletronorte, it’s about 2,800. And that 2,100, it’s almost done.
And going to the next slide, we’re going to show you with graphics with the EBITDA with recurring numbers that we got an improvement from 6% from [5,600] almost to [5,800] on the darker lines. And on the main events that we had, we had net revenue. And you show that most of it comes from transmission and BRL 137 million for transmission.
We had some other effects that they don’t compensate on selves, but we had a negative impact with costs BRL 1 billion.
The next slide is going to be the net income — net revenue here. We got this number of 60% compared to the 45% from the last quarter last year. We’ve got BRL 1.5 billion of improvement on the events. On the other quarters, as we talk about the cash flow and impacted on our financial results because of the improvement that are the money that we had. We also had — we had the impact on the EBITDA, and it goes lower as the last quarters because of Amazonas Energia. And on the recurring one, we talk about the compulsory lowing when we updated this with Selic well.
And concluding this, we are close to the end. Going to the next slide, we are talking about the net debt to EBITDA as well. I think we’re going to do like a pro forma graphic on the left side, financial discipline. With the discrete with the shareholders, they happened in July, and we had the election as well with the counsel when we consolidated the Santo Antonio with our balance sheets. And it’s going to be working from the third quarter on. So we did a pro forma on the left side as you can check.
The reported number that we had about the debt, it went down because of — because we unconsolidated the Eletronuclear. And when we ended here the quarter and we didn’t consolidate right now Santo Antonio as well because it has a big debt here. And by the other hand, we’ve consolidated Eletronuclear. So with that as a company, it got this number. It is a total — we have a total amount of almost BRL 7 billion. As you can check on the dark line of EBITDA, it’s BRL 7.5 billion. And with the pro forma area with the debt of San Antonio and the EBITDA as well, the total of the debt will be about BRL 1.6 billion only. And it’s not certain that’s going to be happening on the third quarter, but it’s only a pro forma action show.
And on the right side, and like on a really short time on the raw revenue, it was about BRL 35 billion. About the financials that we have received, the net debt, it’s about BRL 15 billion.
We’ve got the Furnas. It was a number of a positive of BRL 2.5 billion, and we got as well CEEE-T and it was a total of BRL 1.1 billion.
And to conclude this, we have another slide as well. Our investment — realized investments that we have here on slide, we have the big block show you guys what we have achieved on the second quarter and then when we accumulate on the 6 months and what we’ve had available from these 6 months for the year.
And we’ve achieved almost 1/3, 1/3 from it about generation here. we noticed some difficulties with the market, with the supplier areas. And in this process, it was with a station, yes. And at last, it was available in the states. And our expectations is from now on to accelerate this with the bindings as well. Yes, it’s going to be easy from mow on.
With the transmission as well, we have here on the transformation — or the transmission around 90% of the results achieved. And we talk about the SPES, we have BRL 1,600 million. And it’s the Furnas, the support from Furnas at Santo Antonio. And since it’s going to be from June, and it’s not going to be consolidated as well, it shows from SPES. And on the next quarter, it’s going to be consolidated. So it’s going to be on the corporate.
And when we talk about Eletronuclear as well on the — almost the last slide, and we didn’t consolidate Eletronuclear as well. And with this, I finish my presentation. Now we can start the Q&A. Thanks very much. Thank you very much.
Question-and-Answer Session
Operator
[Operator Instructions] Our first question is from Ale Souza, sell-side analyst from TC.
Ale Souza
If you can give me a highlight about the strategy of the energy volume that’s going to be leaving the quota regime.
Rodrigo Limp
Thanks, Alejandro, and this is one of the main themes for Eletrobrás. And it didn’t show up right now of the capitalization process. And we are prepared to — we are still talking. We are working to improve this process, commercialization process, trying to get more synergy in our organization from the last few years. Ever since the policies — commercialization policy that we have implanted in our companies with rules, we have a committee
— a strategy committee to work with this with the company to — that our President is going to be working with this. He participates with this. He naturally works with commercializing all this.
So we have a big sequence working with this, trying to improve this area. And right now, concluding the process and starting this uncotization, the challenges begin right now. We have a bigger quantity of energy due to energy, as I showed the amounts that we have. We have some big challenges to work with Furnas and Chesf. It’s a big amount of energy, amount of energy to be allocated. That’s why we work with this for some points.
And we started commercialization of part of this uncoticized energy with our policies, and we work to improve this. But not only short term but also medium and long term. And we have some contracts. And as we are moving on, and Eletrobrás is going to be working with this. And I’m going to ask him to give some more details with this and what we are going to be doing perfectly.
And this scenario has been brought to us. And on the last few years, we are going to be improving this on the structure of this commercialization process to get a more integrated action with the companies. As the President said, this means that we’ve already altered some important projects. We are concluding — some — is an integrated area with commercialization. That’s going to be allowing that is going to be working with our customers with just only 1 company and we are drawing our strategy to allocate these energies at a short term and as we discuss some more structural ideas with the long term as well.
It’s happening on course. We imagine that the first results is going to be available in the next few months. And we expect that with 2023, with respect to the company with all the elements ready to execute this strategy.
Operator
Our next question comes from Maria Carolina, sell-side analysts from Credit Suisse.
Maria Carolina
I have two questions here. And I’m going to talk about the priorities that you highlighted here. What can be done about our counsel? I imagine that we’ve had a — when Wilson takes charge of CEO, this discussion will be moving on, but we have some governance themes that we must check on. We have some discussions to have about the update, talking about ruling, if we must improve something or some points that should be discussed right now — could be discussed right now and talking about new market as well.
And some of these things about migrating to the new market is going to be available and the subjects, they are already able to be put in work in parallel as when Wilson returns as well or not or some themes that should be made to do later and about the passives as well as compulsory, if you can give us some more details about this company as well.
As a safe company, we didn’t have like a lot of margin to discuss with this and about the strategies as well with some asset information as well. I would like some more details on what would be done with this. We know that everything can change. And I would like to know if you guys have a guidance or a plan with this, right now, it is quite relevant to the company.
Rodrigo Limp
Thank you. We’ve already had some — we have had an evolution of some processes. On February, we’ve had a lot of improvements here. And right now, we are working, yes, to change some information about the companies and taking off the state rulings that will only be appliable to state companies. And now we are working with this to advancing on some points to work this and moving on, on this subject and make it more adherent to the governance of the company or a private company and about the new counsel.
And Wilson, certainly, we are going to discuss some other improvements about the governance structure. And this is going to happen, of course. But we don’t have this today to tell you guys. And this is going to be a with the new administration. And following here, I’m going to ask Camila to conclude this. And about the compulsory loans, and we talked a lot about this before the capitalization, how it’s going to be possible as a lever to develop, we have some significant values available provisions. We have BRL 25 billion of compulsory and some other passives.
And since we’re not now state company right now, we have a lot of flexibility to work with this. And we were talking about the administrative counsel with this. They already put this a priority. Our judiciary area is working with this with our policies as well. We have some information approval right now, but we are waiting for the — to lead the state rulings work. But we’re trying to make this process faster. And I believe these are one of the areas that we can generate even more value to the company, like any other companies like cost reduction commercialization of energy and commercialization and as I can say.
And please, Camila, if you like to point even something more.
Camila Gualdo Araújo
Thanks, Limp. I hope that you guys are listening me well. Just adding on, we are working right now really to improve the information about the companies, the holdings, the controlled companies. We’re changing the roles of the companies. We’ve already done this. All the rulings, they were approved with the assemblies. And over the last month, we already moved on with this. It was a tertiary condition that we must develop with this.
And now since we are going on some demands about state that must exclude some things from the rulings we are working right now with the holding as well, we must weather together the new market situations. We must migrate to the new markets. They’re going to check what’s going to be necessary to do with the new market to be established about showing all these decisions to be made. And we’re working right now, obviously, with the new counsel with Wilson returning as well, we have to give all these information to him, to them, what we are working really right now.
On the next quarter, we are going to have a lot more information to report right now. And right now, we are hard work in progress, but we don’t have information right now. Thanks for the questions.
Operator
Our next question comes from comes Andre [Sampaio], sell-side analyst from Santander.
Andre Sampaio
I have some doubts here. My first doubt, if you could explain about how we would advance on the reductions on some passives with some remote numbers. I would like to know with Belo Monte if already happened from the second quarter or if you didn’t get this number? And what was the reason all of this? What do you expect on this? That was the first question.
The second question is about the strategic plans with the participation from the new markets. If you have something in mind or you’re going to be waiting for Wilson about these listed companies as well, the idea is to sell some of this with the market prices or wait for better conditions to get rid of those numbers.
Rodrigo Limp
Perfect. Thanks, Andre, for your questions. Relevant questions. First of all, the homework question is going to be working for what we have possible. And as the company’s understanding, it was a repetitive understanding. It was already working. But since we had some diverging decisions from the last few years, it went on the repeated one. But with the home situation reinforced our monitoring with the core to try to find some solutions with this.
The classification is going to be they were not with the home situation. Is it going to be possible or not. If we can migrate this or not for the remote situation, we are evaluating this and this decision as well with the home as well. And it gives a lot of judiciary safety to work with on these pieces, but we must monitor all of this to get safety on what we work on this reclassification. And this must happen in a short amount of time, in case we have this transition on this understanding because it will be possible or not, on the reclassication.
And on the second question about the planning on the participations, we’ve approved last year a plan of some companies, listed companies that we are always evaluating the opportunities that we have, looking naturally at some criteria.
The first of them, if it’s going to be available to — of the actions, yes, I’d be able to work with them. And most of them, they were given as a guarantee on some judiciary achievements here. We’ve had a big job here trying to get them clear as a guarantee. We had a success in many of them and to show them on the financial descriptions that we had this, we had a big evolution.
We have a conviction that we got an expertise that we can do this faster, really faster as we talk about not so long ago at [C3 AT] and some participations of some distributors. And we have almost 100% of [coils] and for example. And that’s a point that you’re going to be evaluating and, of course, we evaluate as well.
And what we really expect of the value of this was within the market, and if it’s going to be something active or not and our core business is to generate and transmit energy, but we are open to make these evaluations analyze each case individually because if an opportunity shows up to be available, it should be good. And we can do this, work with this seriously. And of course, if it’s going to bring us some value, if it’s going to bring some values to the company.
And naturally, when Wilson arrives and the counsel as well, we are going to be discussing all of these themes. And this is a theme that we are already been discussing some time ago with the company to try to improve this. I don’t know if I have answered your question. You guys would like to add something up or not?
Unidentified Company Representative
I just like to — I’d like to talk about the market moment as well and the price is going to be higher or lower. We believe it’s more than this. We must accelerate about the actions that we have there are stuck, and we’re learning a lot from this. We’ve got a lot of success and talk about the presentation as well. We’re about [indiscernible] was an example of this process that we had to work with this. We’ve had realization as well about the rulings. We had a possibility to work with this as well. So we put all of our efforts to work with this, to get this clear.
And this is something that we are still doing with other companies. And as soon as we get this clear, we’re going to be working the best moment to work with this. But already, we are, yes, still working to achieve all of these plans.
Rodrigo Limp
I would like to just add one thing. It’s going to be strategic or not work with this. It was concluded right now. This is something that you can replicate on the transmission as well on some projects. We’re going to be waiting with the deal that we have to check. It’s going to be good. We check all the great criteria, the interest of keeping this company as well. And the value, it’s going to be showed up. It’s going to be good or not. Mainly of course, we have this in mind.
Operator
Our next question comes from Henrique Peretti, sell-side analyst from JPMorgan.
Henrique Peretti
My question, it’s also about the strategic participation of the company. We talk about the press with some shareholders of Belo Monte, that they were interested in selling their participations as well. It was around 20%, Petrobras has around 50%, but it’s not consolidated. But Petrobras, it’s consolidated — it’s interested to get this amount of Belo Monte. On your guys’ vision, what’s going to be the levers of value on this business? Is it going to be interesting for them or not? And I understand about the debts, only if it’s going to be 100% of able and about the subsidiaries, which one will be able to work with us? And if we don’t make some sense or not.
Rodrigo Limp
Thank you, Henrique. In my post process of Santo Antonio, we are working with Santo Antonio. It was what we needed to do about the decisions that we’ve got available, yes. And we reacted like quickly to make the company healthy. But naturally, it’s on our horizon to evaluate on these actives on — the strategic actives about the Belo Monte, yes. If it’s going to be relevant or not, it’s going to make sense or not for us to work on our participation there or not. But naturally, it’s going to be happening or for another developments. The Belo Monte is going to be evaluated. And it brings — it’s one of the biggest users from Brazil and improves on our capacity, commercialization of capacity, but it has the benefit for us to consolidate this.
But on the other hand, it has a high debt on Belo Monte. And that’s a point that we must consider on a possible evaluation as well. So we don’t — right now, we don’t have anything chosen on this. We must look at this strategically with another participation as well if it makes sense or not to move on the sense with them.
And besides the debt, we have a biggest exposure of hydrolytic, these points. We must check on this, if it’s going to be able to move on, on Belo Monte or not. And all of these aspects must be controlled. But I believe yes, it’s going to be evaluated with all the other relevant projects that we have available.
Operator
Our next question comes from Jonah Fredie, buy-side analyst from Studio.
Jonah Fredie
I would like to ask about the PDD and about the staff that you guys have and that they can’t be fired right now. We have around 10,000 people on the staff. And what’s the percentage of the staff that should be working with this?
Rodrigo Limp
And about the situation, we already had a prediction to work with them on the previous. And we don’t have any restrictions with them for the staff. What happens is possible clients may happen with the staff and to retire and about to retire. And it works on the first year, but we have no restrictions right now to — that’s able to all the staff. And of course, the responsible partners that may have, they are only available right now to the retired ones and about to retire.
And there’s restriction. It’s going to be leaving next year. and it’s going to be entering a new rule that went with the syndicate, that establishes that 80% of the staff from that time on must be preserved with the second year. These are the rules that are available right now on these next 2 years, we must have — we must make a new negotiation to check this new cycle, how it’s going to be working.
But I understand that the company, it gets a special treatment that all the private companies have. We are managing the staff area, trying to restructure the company, how the new structure is going to be working on. It’s a discussion that we are having what’s going to be happening with the company. That’s not a discussion that’s going to be happening as related. He’s going to be talking with everybody. That’s why we talk about it on the slide, we had this maintenance of the staff.
And this is not going to be worked on individually on each one of them. And it’s going to be worth once more together with the syndicate. The criteria to establish, minimal criteria for this work for the next 2 years.
Operator
Our next question comes from Marcelo Sá, sell-side analyst from Itau Corretora.
Marcelo Sá
I have some questions. But the first one, it’s about the deductions that we had about the gains that were acknowledge with the privatization. I’d just like to understand with these numbers, that BRL 75 billion that were acknowledged, if they would get a deal with this 30 years and it would reduce the number for BRL 2.5 billion being paid from? And about the passives that were acknowledged about, it was about BRL 40 billion, it was with BRL 32 billion, plus some other sectorial fund that we had here. And how it’s going to be impacted on the expenses — financial expenses of the company.
Rodrigo Limp
You’re going to be working on the results. And we work with the inflation, how it’s going to be working with this. I would just like to know if this is right from what I understood. And about the expenses, it was with Santo Antonio. The partners, they didn’t put all of their information. And Eletrobrás, they — it had to get rid of this to avoid Santo Antonio to pay some debts, but they understand the they had an obligation to work with this and must be penalized with this.
Marcelo Sá
I’d just like to know if this waiver is going to be working of the — who’s going to be working. It is. Eletrobrás is going to be having 100% of Santo Antonio with this any additional expenses.
Rodrigo Limp
Okay, Marcelo, thank you for your questions. We’re going to — I’m going to be asking to Marcus answer some of the questions. Please, Marcus our accountability about here.
Unidentified Company Representative
Marcelo, it’s exactly this from what you said he’s going to be working within 30 years, and you’re going to get these numbers with some tax as well. And as financial expenses, you’re going to be getting these numbers as well. But the taxes, the numbers that we have available is going to be 7.6% and 5.6% with the obligations, let’s say, it’s mainly what you have said.
Marcelo Sá
When you talk about 7.6% from [IPCA] obligation, it’s a real tax as well. And it should add on, right?
Unidentified Company Representative
Yes, yes. Perfect. Exactly what you said.
Marcelo Sá
Yes. The number you guys said, you told it was an expense of BRL 2 billion. And it doesn’t make much sense because we had BRL 40 billion of our passive numbers and 7, 7.5 and it’s going to be around 10%. And it would have like BRL 4 billion more.
Rodrigo Limp
Marcelo, it’s going to be — it showed up plus IPCA. And about Santo Antonio, Marcelo, we are talking right now, debating with this. It’s a strategic plan to work with this. We know that the other partners, they had their obligations to work with it, and they didn’t work then. And we have to take a decision judiciary that we have here. But we got some — we advanced on some things on this period of time. We had a discrete — an ethical industry. We didn’t need to move the judiciary issue that it was undesirable.
So we got the Street on the beginning of June. So we could elect a new counsel and a President as well. It has a month. It was a month ago or more so. And we concluded a negotiation as well. And it was expensive to work with this — working. And now we’re going to be working on the next steps with the partners, how it’s going to be working on moving on. And it’s going to be penalty for them or not. We are waiting for the President to take charge, and they are showing, we are going to be showing the alternatives what accounts to what’s going to be happening. And we are going to be renegotiating the debt as well. Santander is negotiating that as well because it’s a really high debt. And we’re going to show this the new counsel and the President as well.
Operator
Our next question comes from Pedro Manfredini, sell-side analyst from Goldman Sachs.
Pedro Manfredini
I had just one about the reinforcement of CapEx. And we — as we check out your guidance, we have some numbers that it looks to me is not sure. And I would like to know how you’re analyzing this with the company with this improvement to work with this number on the next few years, if you need to do this.
And the second question is, when you renegotiate the patterns of the energy within the group, I imagine that with the errors that we have from the state companies, it’s like a bit of pattern how to work with the accounting of the company’s fullness [indiscernible]. And there is any upside with this fusion with this pattern as well as we interpret to credit as well. And if you can get something value from all of this for all these restructuring of the company.
Rodrigo Limp
Thank you. Talking about CapEx. We only let go about — only about the big numbers. The small numbers, it’s working separate. The total development, it’s the elevated number and about the transmission as well. We’re not talking about reinforcement, but talking about on a wide subject. It’s going to be a big challenge from next year because they’re going to be checking a lot of maintenance on these companies to be listed.
This sector is going to be facing a big challenge. The suppliers, constructors, it can generate a discussion it the power to present the challenge that they are going to be happening. And they’re going to be check because, of course, the discussions will happen. The numbers will have to be checked up. And it’s a significant amount, but we don’t have a definition right now about the increase of CapEx, but we can discuss about this about the upsides within lateral and the companies.
I’m going to ask Elvira to see if Elvira can…
Elvira Presta
Of course, we have a pattern and the best pattern to show this. We’ve created accounting management to work on this for the last few years. We have this pattern in a great bargain. And we can improve, of course, on all of this, but we already have pattern on front. But the opportunities that we have about the pattern as well. But as Limp said on the beginning of the presentation, we have — we don’t have to follow the rules of the state companies. It’s going to be easier. We are already working with a negotiation as a group, and we are a lot more competitive with all of this.
And there’s a big gain on this participation. But of course, we have a lot of enhancements that we must report.
Pedro Manfredini
Of course, I would like to add one more question and talking about CapEx as well and with the plan as well, and talk about investments and on expansion and talking about maintenance of generation as well. We are trying to get a reference from benchmark from the sector here. In case of companies that went from privatization. And we are finding for nothing in common.
But I don’t know, I’d just like to know if I’m wrong, if CapEx that you guys expect, it gives you guys a plan. It looks like you’d be — you expect more from what it should be. And I’m talking about Chesf promoting as well. And we have some numbers, it’s quite slower quite smaller numbers than what you guys are expecting or seeing right now. And when we talk about — with a bigger group. And when you show this number, it’s going to be on a super dimension because if it’s going to be discussed with Petrobras post capitalization, a profiling, re-profiling for all this.
Rodrigo Limp
Okay. We have a factor that we are going to be talking about is from Eletrobrás. That’s different from other companies. We have some actives that are more — they’re elder. And all of them are there in a time that we must have an investment, recapitalization. We have right now 20% of capacity with modernization as well, the big developments that we have from the biggest use concession as well. We are hiring staff and modernization as well. And of course, it adds on. We’re going to be checking this again with the companies with a privatization of the company.
Our procurement system is going to be changing. We’re going to be able to negotiate with more flexible situations. And I must highlight again that prioritization. So it has given us a big horizon from these next 3 years about the modernization as well. And we are going to be getting this improvement as well, optical improvements. And we’re going to be analyzing this deeper on this 22 [users] that were [uncollateralized] to talk about the potentials that we have available to have modernization of improvements on these sectors. All of this is being considered and of course, going to be reflected on the planning on the next year.
And thanks for the question. At this point, that I wanted to highlight some of our active that we have right now, of course, it’s going to be happening with the new team. We talk about modernization on this plan. You’re going to have an enhancement and some of them — some of it can give an increase of guarantees for this modernization. It’s going to be only able to make the company keep rolling, to keep rolling the teams overall. And we’re going to be discussing with this what we need, the minimum correctives and what we expect to work. It is already — yes, it’s able to effectively promote enhancement, expansions to improve the guarantees.
Pedro Manfredini
And another question about the pension funds. You have a lot of plans with Eletrobrás. And on these discussions that you guys — if you guys have any upside on the post privatization as well. And if you guys are going to offer this with the improvements as well with the new [election] concerning your right.
Rodrigo Limp
Thanks for your plan. This is one of our clients. Yes. Yes, we have some perspectives on these items.
Operator
Our next question comes from Eduardo Lagares, buy-side analysts from Montara Capital.
Eduardo Lagares
I have my doubts about Eletronuclear as a company. I’d like to know the percentage, the shareholder to make some investments. If I’m wrong, it’s going to be with the ordinary actions. But you guys have a lot of things to be done as well, if these investments is going to be splitted with these participation. It wasn’t like quite sure for me, and it was — we have a high numbers to talk about it.
Rodrigo Limp
Thank you, Eduardo. If I understood right your question, I think you’re right. Our responsibility of investments, our guarantees is going with the participation with the ordinary actions as well. You guys — we would keep this participation with the ordinary actions. But I didn’t understand quite your question. But within the invested amount, I don’t know if we have a different. Elvira, I don’t know if you have a different view.
Elvira Presta
Just to complement your question, when the modeling was made with [Bindes], it predicts that when Eletronuclear is going to be restructured with capital. And it got BRL 3 billion with the new controller that’s Unipar. It’s going to be a cash flow, and we capitalize while guarding firsthand before handle.
And now we’re not controlling. But even if we had most of these actions, our obligation, future obligation of eventual financials, it’s limited to the percentage. What was modeled by Bindes , well that that’s situation that been promoted for Unipar the short term, Eletronuclear, it shouldn’t be able to need cash flow because it has the support of billions. And it has to restructure a way to refinance.
And if Eletronuclear didn’t get this investments, the shareholders and the Unipar bar as a state, one, they must provide these situations. But it’s not defined when it’s going to — how it’s going to be done. It’s going to be — as a refinancing, it will be transferred. It should be moved on ahead, not now, but it may have the situation as well. But it must be — it depends on the demands that may happen or not.
With this, we end the question and answer, right?
Operator
Yes. We end right now the Q&A session. We are going to be giving the word back to Mr. Rodrigo Limp. for his final statements. Mr. Rodrigo, please?
Rodrigo Limp
Thank you. I would like to thank to all guys that were here. We had a big participation of people following us here. And I’d like to thank you all and all that follow all of us on this capitalization process as well. And as buy-side analysts, press, I would like to make it registered, keep it registered here. This interest from all of you guys and this work that we’ve made here, it had a lot of hands.
And now we put Eletrobrás starting a new era that I don’t have doubts that’s going to be like really promising to the company. You’re going to be the main character on the many fronts, on the area you works, on renewables being referenced, on national and global as well as renewables, we are really optimistic on this. And we are moving on, waiting with constant dialogue with you guys, and it’s really important for the company. And we end this conference right now, but our Investor Relations area, it’s always available on any point, additional points that you guys have here beside the questions that were asked here. And once again, thanks for your guide me here. Wish you a great afternoon to everybody.
Operator
Right now, Eletrobrás earnings conference call has concluded. We thank you for your participation and have a great day.
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