Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____
March 9th, 2006
Bovespa: CPFE3 R$ 31.25 / share
NYSE: CPL US$ 43.20 / ADR (1 ADR = 3 shares)
Total Shares = 479.8 million
Market Value: R$ 15.0 billion
Closing Price: 03/07/2006
Portuguese Teleconference with Simultaneous Translation into English Bilingual Q&A Thursday, March 9, 2006 Portuguese: (11) 2101-1490 Code: CPFL or 7072291 |
CPFL ENERGIA ANNOUNCES NET INCOME OF R$ 1.021 BILLION IN 2005 São Paulo, March 9, 2006 CPFL Energia S.A. (Bovespa: CPFE3 and NYSE: CPL), announces its 4Q05 and 2005 year results. The financial and operational results presented herein are in accordance to the Brazilian Corporate Law and consolidated basis, unless otherwise indicated. Comparison refers to the 4Q04 and the 2004 financial year, unless otherwise indicated. |
2005 HIGHLIGHTS |
|
(1) EBITDA is calculated from the sum of net income, taxes, financial results, depreciation/amortization and private pension plans, besides adjustments referring to extraordinary items and non-recourse transactions. |
PERFORMANCE OF ON SHARES / ADRs OVER 4Q05 AND 2005
The performance of CPFL Energia ON shares traded on Bovespa, displayed variations above the main comparative indexes, i.e. Ibovespa and IEE, both for the 4Q05 and over the year 2005. ADRs, traded on the New York Stock Exchange performed similarly, outdoing the principal comparative indexes.
CPFL Stocks x Main Comparative Indexes
BOVESPA | NYSE | |||||||||
%Change | %Change | |||||||||
4Q05 | 2005 | 4Q05 | 2005 | |||||||
CPFE3 | 18.1 | 64.8 | CPL | 9.4 | 85.5 | |||||
IBOV | 5.9 | 27.7 | DJIA | 1.4 | (0.6) | |||||
IEE | 4.7 | 42.9 | DJBR20 | 2.9 | 47.5 | |||||
Sources: Broadcast / Economática |
In 2005, CPFL Energia shares were integrated into important reference indexes for Brazilian shares traded on the national and international markets, including the main indexes relating to best practices of differentiated corporate governance.
| BOVESPA: | |
| ISE Corporate Sustainability Index December/05; | |
| IBrX Brazil Index (IBX-100) September/05; | |
| IEE Electric Power Index September/05; | |
| ITAG Share Index with Differentiated Tag-Along Rights 1st half-year/05; | |
| IGC Differentiated Corporate Governance Share Index 1st half-year/05. | |
| NYSE: | |
| DJBr20 - Dow Jones Brazil Titans Index 20 ADR 1st half-year/05. | |
2
CORPORATE STRUCTURE AND ACQUISITIONS
CPFL Energia is a holding company which depends directly on the results of its subsidiary companies, CPFL Paulista (100%), CPFL Geração (100%) e CPFL Brasil (100%).
Change in Shareholders Structure
Listed below are the main corporate events of 2005 which determined the variation of the CPFL Energia free float over the last 12 months:
o | Partial IFC loan subscription (1st installment) in the amount of US$ 10 million: free float reaches 15.92%; | |
o | Migration of minority shareholders of CPFL Geração: free float reaches 16.04%; | |
o | Subscription of balance of IFC loan in the amount of US$ 30 million: free float reaches 16.80%; | |
o | Migration of CPFL Paulista and CPFL Piratininga minority shareholders: free float reaches 17.75%. |
3
At the time of the IPO, CPFL Energia had 3.1 thousand shareholders listed on the Bovespa. Today, after the migration of the minority shareholders from CPFL Paulista and CPFL Piratininga the company has 64.0 thousand (1) new shareholders.
(1) The number of shareholders was computed from CPF and CNPJ (individuals and companies)
Acquisitions in 2005
In January 2005 CPFL Brasil acquired 100% of Clion stock and in September acquired 67.23% of Sul Geradora stock, in order to comply with ANEEL Resolution nº 166, which determined the elimination of any RGE participation in company stock.
Acquisition of 4 PCHs by CPFL Geração:
Through CPFL Sul Centrais Elétricas CPFL Geração acquired the PCH Guaporé, PCH Andorinhas, PCH Pirapó and the PCH Saltinho plants, all owned by RGE. The acquisition was approved by ANEEL in November 2005. This acquisition will add an average of 1.1 MW of secured power.
4
DIVIDENDS AND INTEREST ON CAPITAL
The CPFL Energia policy on dividend payment stipulates that a minimum of 50% of adjusted net earnings be distributed on a half-yearly basis.
CPFL Energia will pay dividends totaling R$ 899.1 million with reference to the year 2005, considering that R$ 400.6 million refers to 1H05 and R$ 498.5 million refers to 2H05.
TYPE OF PAYMENT | TERM OF REFERENCE | AMOUNT (R$ milions) | DATE OF PAYMENT | |||
Interest on own capital (*) | 1H05 | 76.9 | September/2005 | |||
Dividends | 1H05 | 323.7 | September/2005 | |||
Interest on own capital (*) | 2H05 | 109.3 | Aproved, to be defined | |||
Dividends | 2H05 | 389.2 | Aproved, to be defined | |||
TOTAL | 899.1 | |||||
The practice of dividend payment over the past 2 years reached 95% of adjusted net earnings, which not only surpassed the company dividend policy but also achieved a dividend yield of 6.75% for the1H05 and 9.47% for the 2H05.
(1) Consider half-year dividend compared to the average share quotation at the close of the half-year sum last 2 half-years
5
PRINCIPAL ECONOMIC AND FINANCIAL DATA - BY BUSINESS SEGMENTS AND CONSOLIDATED
Comparison 4Q05 vs. 4Q04
ECONOMIC-FINANCIAL DATA | DISTRIBUTION | COMMERCIALIZATION | GENERATION | |||||||||||||||
R$ (thousand) | 4Q05 | 4Q04 | Var.% | 4Q05 | 4Q04 | Var.% | 4Q05 | 4Q04 | Var.% | |||||||||
Gross Revenue | 2,657,302 | 2,411,066 | 10.2 | 407,193 | 243,289 | 67.4 | 116,101 | 87,323 | 33.0 | |||||||||
Net Revenue | 1,866,571 | 1,706,575 | 9.4 | 351,811 | 210,830 | 66.9 | 104,429 | 83,375 | 25.3 | |||||||||
Income from Electric Utility Services (EBIT) | 260,638 | 397,894 | (34.5) | 60,926 | 38,493 | 58.3 | 77,088 | 66,821 | 15.4 | |||||||||
EBITDA | 352,872 | 427,534 | (17.5) | 60,957 | 38,514 | 58.3 | 86,664 | 74,145 | 16.9 | |||||||||
Net Income | 254,652 | 219,722 | 15.9 | 41,466 | 25,693 | 61.4 | 30,107 | 18,741 | 60.6 | |||||||||
Total Assets | 9,014,873 | 8,779,095 | 2.7 | 240,259 | 153,743 | 56.3 | 2,880,195 | 2,492,906 | 15.5 | |||||||||
Shareholders´ Equity | 1,869,332 | 1,813,929 | 3.1 | 548 | 4 | 13,600.0 | 1,106,328 | 1,044,401 | 5.9 | |||||||||
Comparison 2005 vs. 2004
ECONOMIC-FINANCIAL DATA | DISTRIBUTION | COMMERCIALIZATION | GENERATION | |||||||||||||||
R$ (thousand) | 2005 | 2004 | Var.% | 2005 | 2004 | Var.% | 2005 | 2004 | Var.% | |||||||||
Gross Revenue | 10,100,690 | 9,066,637 | 11.4 | 1,419,805 | 892,569 | 59.1 | 435,907 | 330,618 | 31.8 | |||||||||
Net Revenue | 7,070,385 | 6,313,083 | 12.0 | 1,227,428 | 782,655 | 56.8 | 393,442 | 313,169 | 25.6 | |||||||||
Income from Electric Utility Services (EBIT) | 1,234,829 | 897,323 | 37.6 | 224,636 | 152,229 | 47.6 | 310,023 | 250,544 | 23.7 | |||||||||
EBITDA | 1,595,131 | 1,294,677 | 23.2 | 224,736 | 152,309 | 47.6 | 345,066 | 282,202 | 22.3 | |||||||||
Net Income | 755,819 | 323,050 | 134.0 | 153,791 | 101,716 | 51.2 | 117,190 | 71,053 | 64.9 | |||||||||
Total Asets | 9,014,873 | 8,779,095 | 2.7 | 240,259 | 153,743 | 56.3 | 2,880,195 | 2,492,906 | 15.5 | |||||||||
Shareholders´ Equity | 1,869,332 | 1,813,929 | 3.1 | 548 | 4 | 13,600.0 | 1,106,328 | 1,044,401 | 5.9 | |||||||||
6
ENERGY MARKET
The energy sold by the CPFL group through the distribution and commercialization segments to the end-customer totaled 10,150 GWh for the 4Q05 and 38,357 GWh over 2005, representing respective increases of 5.8% and 4.7% . Largely responsible for this growth are the residential and commercial classes with respective increases of 6.1% and 6.0 % in 4Q05 and 5.8% and 7.8% in 2005, owing to improvements in employment levels and earning power and to higher seasonal temperatures.
Energy Sales Evolution
CPFL ENERGIA CONSOLIDATED - GWh (*) | 4Q05 | 4Q04 | Var.% | 2005 | 2004 | Var.% | ||||||
Residential | 2,242 | 2,114 | 6.1 | 8,783 | 8,302 | 5.8 | ||||||
Industrial | 4,276 | 4,705 | (9.1) | 16,995 | 17,897 | (5.0) | ||||||
Commercial | 1,386 | 1,308 | 6.0 | 5,329 | 4,936 | 7.8 | ||||||
Rural | 469 | 439 | 6.8 | 1,730 | 1,619 | 6.9 | ||||||
Others | 848 | 815 | 4.0 | 3,323 | 3,200 | 3.8 | ||||||
Bi-lateral contracts | 929 | 213 | 335.9 | 2,197 | 693 | 217.0 | ||||||
TOTAL | 10,150 | 9,594 | 5.8 | 38,357 | 36,647 | 4.7 | ||||||
(*) Excludes transactions between group companies, CCEE and generation sales |
Owing to the evolution of verified sales over the period, the customer mix of the consolidated group was subjected to alterations, including in the decrease in the participation of the industrial class from 49.8% in 2004 to 47.0% in 2005, resulting in the increase of the other classes.
It should be emphasized that the demand from the concession area (load) for the CPFL Group distributors presented growth of 2.1% for the 4Q05 and 4.6% in 2005, which surpassed the São Paulo State average of 3.8% in 2005.
CPFL Brasil played an important role in energy sales, especially to the free market which totaled 2,222 GWh for the 4Q05 and 6,862 GWh in 2005, to the free market; growth of 113.6% and 113.8%, respectively.
7
ECONOMIC AND FINANCIAL PERFORMANCE
Gross Revenue
Gross operating revenue for the 4Q05 was R$ 2.9 billion and R$ 10.9 billion over 2005, representing growth of 13.3% and 14.2% respectively.
The main contributing factors for this growth at CPFL Energia and its subsidiaries were:
i. | The increase in consolidated sales by the group of 5.8% in 4Q05 and 4.7% in 2005; |
ii. | Tariff readjustments and revisions by the distributors CPFL Paulista and RGE in April 2005 and CPFL Piratininga in October 2005, of 17,74%(1), 21,93% and 1,54%(2); |
iii. | The increase of 108.2% for the 4Q05 and 118.0% in 2005 in TUSD revenues; |
iv. | The positive performance of the Commercialization company achieving growth of 113.5% in the 4Q05 and 113.8% in 2005, in sales to the free market; |
v. | The generation tariff adjustments of 11.12% applied to bilateral contracts between CPFL Paulista and CPFL Centrais Elétricas, in April 2005, and 12.42% for the contract between SEMESA and FURNAS in January 2005; |
vi. | The operational start-up of the Monte Claro and Barra Grande hydroelectric plants, with the added capacity of 153 GWh in the 4Q05 and 406 GWh in 2005. |
(1) | In july/05 ANEEL acknowledged the right to an additional 1.01% on the IRT |
(2) | Already excluding PIS/COFINS |
8
Cost of Energy Service
The cost of electric energy service which is comprised of (i) cost of purchased energy and (ii) overheads for the use of the system, totaled R$ 990.6 million for the 4Q05 and R$ 3.932 billion in 2005, representing increases of 2.7% e 3.4% respectively. The main variations for the 4Q05 and for the year 2005 are listed below:
i. | The total cost of energy purchased in the 4Q05 was R$ 802.6 million and over the year 2005 was R$ 3.175 billion, which corresponds to an increase of 4.1% and 1.6% respectively. This was due to the increased quantity of energy acquired, which was 2.7% in the 4Q05 and 4.5% in 2005 |
ii. | Overheads for the use of the transmission and distribution system in the 4Q05 dropped 3.1%, yet over the year 2005 showed an increase of 11.6%, totaling R$ 187.9 million for the 4Q05 and R$ 757.2 million in 2005. The cost reduction for the last quarter is partially due to the change in the methodology of charging for use and the connection to the basic grid as determined by ANEEL. |
Costs and Operating Expenses
Costs and operating expenses for the 4Q05 registered R$ 674.7 million and R$ 2.047 billion for the year 2005, respective increases of 79.8% and 23.0% . The principal contributing factors to these variations can be examined in the table below:
Manageable costs Personnel, Material, Outsourced Services and Others.
Manageable costs reached R$ 237.2 million for the 4Q05 and R$ 837.2 million in 2005, representing respective increases of 10.5% and de 6.1% .
These variations, which were inferior to revenue growth, were the result of the continuity of the cost control program, management of expenses and the harnessing of operational synergies within the group companies.
MANAGEABLE COSTS - R$ (thousand) | 4Q05 | 4Q04 | Var.% | 2005 | 2004 | Var.% | ||||||
Personnel | 82,640 | 72,269 | 14.4 | 315,764 | 293,252 | 7.7 | ||||||
Material | 13,500 | 16,594 | (18.6) | 49,196 | 44,956 | 9.4 | ||||||
Outsourced Services | 77,441 | 75,090 | 3.1 | 260,257 | 241,848 | 7.6 | ||||||
Others (*) | 63,618 | 50,647 | 25.6 | 211,994 | 209,356 | 1.3 | ||||||
TOTAL | 237,199 | 214,600 | 10.5 | 837,211 | 789,412 | 6.1 | ||||||
9
Private Pension Fund
Costs and expenses relating to the private pension fund in the 4Q05 were R$ 22.4 million and over the year 2005 totaled R$ 89.6 million, an increase of 143.9% for the 4T05 and a reduction of 40.7% for 2005.
The reduction over 2005 reflects the actuarial calculation adjustment based on premise revisions, such as mortality tables and the effect of raised income expectation on plan assets, which occurred after 4Q04.
However, the increase observed in 4Q05 was a result of the significant reduction registered in the 4Q04 owing to the acknowledgment of these due adjustments at the time, which refer to the year 2004.
Additionally, in accordance with instruction CVM 371 of 2001, there is a further extraordinary expenditure of R$ 8.1 million for 4T05 and R$ 32.6 million over 2005. This item corresponds to an actuarial accounting deficit prior to the year 2001, which will be accounted over a period of 5 years starting in 2002.
The Private Pension Fund total cost, i.e., costs and operating expenses together with the extraordinary item amounted to R$ 34.7 million for the 4Q05 and R$ 138.9 million over 2005, representing an increase of 49.6% in the 4Q05, owing to the adjustments mentioned above, and an overall reduction of 31.3% in 2005.
PRIVATE PENSION FUND COSTS / EXPENSES R$ (thousand) | 4Q05 | 4Q04 | Var.% | 2005 | 2004 | Var.% | ||||||
Operational Costs | 23,837 | 10,988 | 116.9 | 90,362 | 148,428 | (39.1) | ||||||
General Administrative Expenses | (1,427) | (1,801) | (20.8) | (725) | 2,743 | (126.4) | ||||||
Extraordinary Item Net of Tax Effects | 8,139 | 9,258 | (12.1) | 32,559 | 33,655 | (3.3) | ||||||
Taxation on Extraordinary Item (Instruction CVM nº 371/2000) | 4,183 | 4,771 | (12.3) | 16,729 | 17,339 | (3.5) | ||||||
TOTAL | 34,732 | 23,216 | 49.6 | 138,925 | 202,165 | (31.3) | ||||||
This item totaled R$ 2.0 million in the 4Q05 and R$ 8.1 million in 2005, presenting a reduction of 104.2% and 23% respectively, which contributed in maintaining operational expenses at lower levels than those registered in the 4T04 and in 2004.
This reduction is a result of the application of instructions CVM 319 and 349 as from December 2004 at CPFL Paulista and CPFL Piratininga, generating a reflex premium for their respective controllers (CPFL Energia and CPFL Paulista), which in turn was amortized as a financial expense. The current amortization balance refers to the goodwill amortization of RGE.
CCC and CDE subsidies totaled R$ 192.1 million for the 4Q05 and R$ 665.3 million in 2005, respective increases of 52.4% and 52.6%, due to contribution adjustments.
These costs are determined by the regulatory body ANEEL and their impact is neutralized on the balance sheet due to the CVA registry mechanism which compensates the shortfall in the subsequent tariff readjustment.
10
1. Energy Efficiency Program and R&D
Due to changes in accounting criteria for the programs of Energy Efficiency and R&D caused by the application of resolution ANEEL nº 176 of December 15th 2005, as from 4Q05 these registries will now be accounted for in the act of billing and not at implementation, which will generate the following modifications:
i. | Non-recourse effect of previous adjustments: Reduction of R$ 74.9 million in consolidated net worth and in the equity equivalence of the holding company CPFL Energia; |
ii. | Adjustments for financial year 2005: Increase of R$ 52.1 million in Other Operational Expenses. |
2. RTE(*) and Free Energy Losses
The stipulated time frame to realize RTE assets, which was 72 months for CPFL Paulista and 61 months for CPFL Piratininga as from January 2002 will not be sufficient for the recovery of registered assets, and for this reason provision has been made for losses amounting to R$ 84.9 million in 2005, accounted for as operational expenses.
As with RTE, RGE and CPFL Geração also constituted an operational expense of R$ 6.9 million as a result of losses in the realization of Free Energy assets.
Therefore, in consideration to the above, an additional operational expense has been acknowledged for 2005 in the amount of R$ 91.8 million.
Currently, RTE is charged on the captive consumer tariffs. However, although considered on the RTE calculation base, consumers who opt for the free market are not charged for this amount. ANEEL has already intimated through the official circular nº 2,218, its intention to levy this fee on free market consumers. If this should occur then the distributors will be able to redeem the funds reserved.
OPERATING COSTS / EXPENSES - R$ (thousand) | 4Q05 | 4Q04 | Var.% | 2005 | 2004 | Var.% | ||||||
Manageable costs | 237,199 | 214,600 | 10.5 | 837,211 | 789,412 | 6.1 | ||||||
Private Pension Fund | 22,410 | 8,646 | 159.2 | 89,637 | 150,630 | (40.5) | ||||||
Depreciation and Amortization | 77,089 | 73,929 | 4.3 | 302,631 | 277,327 | 9.1 | ||||||
Incorporated Goodwill Amortization | 2,038 | (47,969) | (104.2) | 8,148 | 10,583 | (23.0) | ||||||
Subsidies CCC/CDE | 192,068 | 126,011 | 52.4 | 665,296 | 435,913 | 52.6 | ||||||
Losses RTE/Free Energy | 91,806 | - | - | 91,806 | - | |||||||
Energy Efficiency Program Adjustments | 52,071 | - | - | 52,071 | - | |||||||
TOTAL | 674,681 | 375,217 | 79.8 | 2,046,800 | 1,663,865 | 23.0 | ||||||
11
Income from Electric Energy Service
The results for income from electric energy service in 4Q05 totaled R$ 394.4 million and R$ 1,760.2 million for 2005, representing respectively a reduction of 19.2% and an increase of 38.8% . The positive evolution in 2005 is owed to the following factors:
| Increase in revenue: | |
i. | Increase in total electricity billing and revenue from TUSD; | |
ii. | Tariff adjustments of the distributors and generators. | |
| Control of operational expenses: | |
i. | Reduction of goodwill amortization costs incorporated from CPFL Paulista and CPFL Piratininga, due to the application of instructions CVM 319 and 349; | |
ii. | Active administration of manageable costs. | |
The reduction in the income from electric energy service observed in 4Q05 was a result of the increase in expenses/costs with the private pension fund, together with the increase in other operational costs generated by the non-recourse register in 4Q05 related to RTE and Free Energy losses.
EBITDA
Consolidated EBITDA was R$ 488.6 million in 4Q05 and R$ 2.120 billion in 2005, which corresponds to a reduction of 5.1% and an increase of 26.1%, respectively.
The 26.1% increase over 2005 is due basically to the growth of 14.2% in revenue, without the equivalent increase in costs, as can be seen in the graph below. The negative variation of 5.1% in the 4Q05 can be attributed to the non-recourse adjustments of R&D, RTE and Free Energy considered as operational expense.
(1) | Includes minority stake and non-operating results (2) Considers personnel, material, outsourced services and other expenditures |
(3) | Refers to Energy Efficiency Program, R&D, RTE and Free Energy |
12
EBITDA is a calculation made from the sum of net income, taxes net financial result of interest on capital, depreciation, amortization, private pension fund and other adjustments relating to extraordinary items and non-recourse transactions when applicable.
EBITDA - R$ (thousand) | 4Q05 | 4Q04 | Var.% | 2005 | 2004 | Var.% | ||||||
Net Income | 380,717 | 160,084 | 137.8 | 1,021,278 | 278,919 | 266.2 | ||||||
+ Income and Social Contribution Taxes | (33,952) | 107,823 | (131.5) | 336,333 | 252,734 | 33.1 | ||||||
+ Depreciation and Amortization | 79,127 | 25,960 | 204.8 | 310,779 | 287,910 | 7.9 | ||||||
+ Private Pension Fund | 22,410 | 8,646 | 159.2 | 89,637 | 150,630 | (40.5) | ||||||
+ Net Financial Expenses from Revenues | 32,142 | 203,006 | (84.2) | 329,260 | 677,185 | (51.4) | ||||||
+ Extraordinary Item (Instruction CVM nº 371/2000) | 8,139 | 9,258 | (12.1) | 32,559 | 33,655 | (3.3) | ||||||
TOTAL | 488,583 | 514,777 | (5.1) | 2,119,846 | 1,681,033 | 26.1 | ||||||
Financial Result
The financial result, composed of a net financial expense of R$ 141.4 million for 4Q05 and R$ 329.3 million over 2005, demonstrated respective reductions of 63.4% and 51.4% . These reductions can be attributed to the following factors:
i. | The reduction of financial expenses, net of interest on capital, of 25.5% in the 4Q05 and 18.3% in 2005, justified by the reduction of indebtedness, change of debt profile and improvements in some macroeconomic indicators; |
ii. | The increase in financial revenues of 67.1% in the 4Q05 and 33.6% in 2005 , basically as a result of earnings from financial investments provided by the operational generation of available cash. Moreover, the increase registered in the 4Q05 can also be attributed to the additional financial revenue of R$ 62.1 million due to the change in remuneration methodology of RTE and Free Energy assets as detailed below. |
In accordance with the ANEEL directive nº 2,212, of December 2005, and nº 74, of January 2006, the distributors CPFL Paulista and CPFL Piratininga started to remunerate 90% of RTE assets by the monthly index Selic + 1% p.a., whereas the previous rate was Selic of BACEN +1% p.a. The remaining 10% will continue to be remunerated by Selic of BACEN.
This adjustment of the RTE will generate consolidated financial revenue of R$ 56.0 million due to the increase of RTE assets in 4Q05.
The same criteria of remuneration were also established for the assets of Free Energy registered at CPFL Geração and RGE, generating additional consolidated financial revenue of R$ 6.1 million.
Financial revenue created by this criteria adjustment totalized R$ 62.1 million for the group.
13
Net Income
The net income of R$ 380.7 million for the 4Q05 and R$ 1.021 billion in 2005, represented increases of 137.8% and 266.2% respectively, and were a direct consequence of EBITDA increase combined with the noted improvement in the financial results as can be noticed in the graph bellow.
(1) | Includes Interest on Capital and Goodwill Amortization |
(2) | Private Pension Fund, Income and Social Contribution Taxes and Reversal of Interest on Capital |
Its important to mention the registry of R$ 72 million at CPFL Energia which refers to the constitution of fiscal credits stemming from the perspective of future generation of income tax and social contribution.
INDEBTEDNESS
The group financial debt showed a reduction of 1.3% at the end of 2005, compared to the same period of the previous year, totaling R$ 4.9 billion.
14
Emphasis should be given to the improvement of the debt profile. The actions initiated in early 2004 permitted an improvement in the main indicators, including cost reduction.
This positive evolution contributed to the elevation of the company rating to BrA+ as analysed by Standard & Poors and divulged in January 2006.
In December 2004, BNDES approved the participation of CPFL Paulista and CPFL Piratininga in the program of expansion and modernization of the electric system (FINEM), enabling access to credits of R$ 241 million and R$ 89 million respectively, indexed to the TJLP on 6 year terms. In 2005, CPFL Paulista obtained the first three installments totaling R$ 139 million. Over the same period four installments were released for CPFL Piratininga totaling R$ 66 million.
In April 2005 ENERCAN, a company in which CPFL Geração owns 48.72% stock, received the approval for a US$ 75 million loan from the Interamerican Development Bank (BID), for the purpose of financing the Campos Novos Hydroelectric plant. Of the total contracted, two installments have been released totaling US$ 60 million.
In December 2005 CPFL Piratininga received a R$ 300 million short term credit line indexed by CDI. This loan was liquidated in February 2006 with part of the funds raised from the emission of R$ 400 million in subordinated debentures with a five year maturity. The instrument will yield 104% of the CDI and should be amortized in two installments, the first being on January 1, 2010 and the second on January 1, 2011.
The company RGE closed the year 2005 with financial debt of R$ 633 million, practically stable in relation to the consolidated financial debt balance of 2004. Of the R$ 284 millions released in new loans in 2005, the emission of R$ 230 million in debentures stands out, which permits the extension of the debt profile. This emission was made in two stages; the first in the amount of R$ 204 million, indexed to CDI and due April 2009, and another in the amount of R$ 26 million indexed to IGP-M, due April 2011.
15
LOANS AND FINANCINGS - 2005 (R$ thousand) | ||||||||
PRINCIPAL | ||||||||
CHARGES | SHORT TERM | LONG TERM | TOTAL | |||||
LOCAL CURRENCY | ||||||||
BNDES - Repotencialization | 85 | 3,717 | 14,091 | 17,893 | ||||
BNDES - Investment | 7,297 | 73,963 | 1,002,277 | 1,083,537 | ||||
BNDES - RTE, Tranche "A" and Free Energy | 2,069 | 237,451 | 394,419 | 633,939 | ||||
BNDES - CVA Resolution 116 | 784 | 92,642 | - | 93,426 | ||||
FIDC | 30,535 | 64,033 | 5,699 | 100,267 | ||||
BRDE | - | 16,044 | - | 16,044 | ||||
Furnas Centrais Elétricas S.A. | - | - | 99,384 | 99,384 | ||||
Financial Institutions | 3,622 | 69,081 | 112,953 | 185,656 | ||||
Others | 553 | 33,509 | 19,786 | 53,848 | ||||
Subtotal | 44,945 | 590,440 | 1,648,609 | 2,283,994 | ||||
FOREIGN CURRENCY | ||||||||
IFC | - | - | - | - | ||||
Floating Rate Notes | 578 | 244,369 | - | 244,947 | ||||
Trade Finance | - | - | - | - | ||||
BID | 690 | - | 68,428 | 69,118 | ||||
Financial Institutions | 1,718 | 363,206 | 90,428 | 455,352 | ||||
Subtotal | 2,986 | 607,575 | 158,856 | 769,417 | ||||
DEBENTURES | ||||||||
CPFL Paulista | 84,148 | 150,710 | 987,083 | 1,221,941 | ||||
RGE | 6,958 | 379 | 154,258 | 161,595 | ||||
SEMESA | 3,842 | 121,681 | 360,146 | 485,669 | ||||
BAESA | - | 722 | 55,112 | 55,834 | ||||
94,948 | 273,492 | 1,556,599 | 1,925,039 | |||||
TOTAL | 142,879 | 1,471,507 | 3,364,064 | 4,978,450 | ||||
As noted in previous periods, the improvement in debt profile is also a consequence of index composition such as the increase of debt harnessed to the TJLP originated from the release of funds from FINEM and financings obtained for plant construction, a reduction in exposure to CDI owing to relevant amortizations at the distributors of R$ 354 million related to the loan from BNDES which refers to RTE/CVA, the amortizations at CPFL Paulista of R$ 151 million with reference to debentures and finally the amortizations of R$ 152 million, relating to the Floating Rate Notes.
16
The balance of adjusted net debt calculated as total debt (loans and financing plus private pension fund cost) excluding regulatory assets / CVA and available cash flow, showed a decrease of 0.6% in 2005, totaling R$ 3,705 million. The relationship net debt/EBITDA evolved positively, falling to 1.7 at the end of 2005, against 2.3 in the previous year.
R$ (thousand) | 2005 | 2004 | Var.% | |||
Total Debt (1) | (5,892,841) | (5,944,792) | 0.9 | |||
+ Regulatory Assets and Liabilities / CVA | 1,158,411 | 1,398,899 | 20.8 | |||
+ Available Funds | 1,029,241 | 817,724 | (20.6) | |||
= ADJUSTED NET DEBT | (3,705,189) | (3,728,169) | 0.6 | |||
(1) Financial Debt + Private Pension Fund (Fundação CESP) |
CAPEX
In 2005 the CPFL Group invested R$ 626.5 million for the maintenance and expansion of business, of which R$ 368 million went to distribution, R$ 3.5 million to commercialization and R$ 254.9 million for generation.
The main investments made by CPFL Energia over the last years have been concentrated on the following items:
17
During the next 5 years CPFL Energia has plans to invest R$ 3.5 billion, of which 83% is earmarked for expansion.
PERFORMANCE OF BUSINESSES UNITS
Distribution Segment
Gross Revenue
Gross operating revenue totaled R$ 2.7 billion in 4Q05 and R$ 10.1 billion in 2005, an increase of 10.2% and 11.4% respectively. Among the main contributing factors for this performance were the distributor tariff adjustments and revisions - CPFL Paulista and RGE with respective gains of 17.74% (1) and 21.93%, in April 2005 and CPFL Piratininga with 1.54% (2) in October 2005, besides the revenue increase for the use of the electricity network (TUSD) of 108.2% for the 4Q05 and 118.0% in 2005.
(1) | In July, ANEEL acknowledged the right to an additional 1.01% on the IRT |
(2) | PIS/COFINS already excluded |
18
Furthermore, the reduction of commercial losses at CPFL Paulista and CPFL Piratininga which are now at the levels of 2.61% and 1.80% respectively have contributed to additional revenue of R$ 78 million in 2005.
The increase in revenue would have been higher, had it not been for some captive customers migrating to the category of free customers, which provoked a drop in industrial class sales of 23.9% for the 4Q05 and 20.7% over 2005, with the consequent reduction of sales volume of 7.7% in 4Q05 and 6.2% in 2005.
Sales Comparison
DISTRIBUTION SEGMENT - GWh | 4Q05 | 4Q04 | Var.% | 2005 | 2004 | Var.% | ||||||
Residential | 2,242 | 2,114 | 6.1 | 8,783 | 8,302 | 5.8 | ||||||
Industrial | 2,894 | 3,805 | (23.9) | 11,956 | 15,082 | (20.7) | ||||||
Commercial | 1,378 | 1,303 | 5.8 | 5,301 | 4,916 | 7.8 | ||||||
Rural | 469 | 439 | 6.8 | 1,730 | 1,619 | 6.9 | ||||||
Others | 827 | 799 | 3.5 | 3,249 | 3,144 | 3.3 | ||||||
TOTAL | 7,810 | 8,460 | (7.7) | 31,019 | 33,063 | (6.2) | ||||||
Owing to the evolution of verified sales over the period, the customer mix of the consolidated group was subjected to alterations, including in the decrease in the participation of the industrial class from 45.6% in 2004 to 38.5% in 2005, in compensation there was an increase in the other classes.
19
In the distribution segment, the migration of customers to the free market has had its effect partially compensated in the final balance due to the extra revenue generated from TUSD of R$ 138.7 million in the 4Q05 and R$ 472,6 million in 2005, respective increases of 108.2% and 118%.
The energy consumed by free customers in the distributors concession area totaled 1,934 GWh in the 4Q05 and 7,013 GWh in 2005, representing an increase of 90.0% and 113.3%, respectively.
Sales Comparison TUSD(1)
DISTRIBUTION SEGMENT - GWh | 4T05 | 4T04 | Var.% | 2005 | 2004 | Var.% | ||||||
Residential | - | - | - | - | - | - | ||||||
Industrial | 1,889 | 984 | 92.0 | 6,848 | 3,164 | 116.5 | ||||||
Commercial | 25 | 20 | 25.6 | 92 | 70 | 31.2 | ||||||
Rural | - | - | - | - | - | - | ||||||
Others | 20 | 14 | 41.9 | 73 | 54 | 35.0 | ||||||
TOTAL | 1,934 | 1,018 | 90.0 | 7,013 | 3,288 | 113.3 | ||||||
(1) With calendar Adjustment |
Considering the consolidated sales(1) in the group distributors concession area (captive customers + free customers), the increase in sales would be 2.1% in the 4Q05 and 4.6% in 2005.
20
Distributors readjustments and tariff revisions
COMPANY | % REVISION | STATUS | APROVED | % IRT (1) | APROVED | |||||
CPFL Paulista | 20.29 | Definitive | April/2005 | 17.74(2) | April/2005 | |||||
RGE | 14.40 | Definitive | April/2004 | 21.93 | April/2005 | |||||
CPFL Piratininga | 9.67 | Definitive | October/2005 | 1.54(3) | October/2005 | |||||
(1) | Net effect of the tarifary revision and adjustments |
(2) | In April 8, 2005: 17.74% plus adjustment of 1.01% aproved by ANEEL in July/05. |
(3) | PIS/COFINS already excluded |
In consequence of the total liabilities generated at CPFL Piratininga by the tariff revision of 2003, definitively approved in October 2005, a loss of R$ 3.1 million in the 4Q05 and R$ 31.8 million in 2005 was acknowledged.
EBITDA
EBITDA for the distribution segment was R$ 352.9 million in the 4Q05 and R$ 1.595 billion in 2005, presenting a reduction of 17.5% and an increase of 23.2% respectively. This annual performance can be attributed to the following factors:
i. | Distributor tariff readjustments; |
ii. | Revenue gains from TUSD; |
iii. | Control of manageable costs. |
The reduction of 17.5% in the 4Q05 was basically caused by the non-recourse adjustments of operational expenses in the distributors relating to the provision of funds for the Electrical Sector Program of Research and Development and losses to the aforementioned RTE and Free Energy.
Net Income
Consolidated net income for the distribution segment reached R$ 254.7 million in the 4Q05 and R$ 755.8 million in 2005, registering growth of 15.9% and 134% respectively.
21
Main Economic and Financial Data for Distribution Companies
4Q05 vs. 4Q04
ECONOMIC-FINANCIAL DATA (*) | CPFL PAULISTA | CPFL PIRATININGA | RGE | |||||||||||||||
R$ (thousand) | 4Q05 | 4Q04 | Var.% | 4Q05 | 4Q04 | Var.% | 4Q05 | 4Q04 | Var.% | |||||||||
Gross Revenue | 1,589,569 | 1,419,561 | 12.0 | 679,067 | 676,788 | 0.3 | 582,290 | 472,135 | 23.3 | |||||||||
EBITDA | 232,535 | 272,619 | (14.7) | 89,053 | 97,163 | (8.3) | 43,397 | 89,948 | (51.8) | |||||||||
Net Income | 222,934 | 219,722 | 1.5 | 70,785 | 44,456 | 59.2 | 58,606 | 6,538 | 796.4 | |||||||||
(*) Considering 100% of RGE |
2005 vs. 2004
ECONOMIC-FINANCIAL DATA (*) | CPFL PAULISTA | CPFL PIRATININGA | RGE | |||||||||||||||
R$ (thousand) | 2005 | 2004 | Var.% | 2005 | 2004 | Var.% | 2005 | 2004 | Var.% | |||||||||
Gross Revenue | 5,979,161 | 5,269,334 | 13.5 | 2,642,252 | 2,519,058 | 4.9 | 2,208,404 | 1,908,764 | 15.7 | |||||||||
EBITDA | 1,004,457 | 849,689 | 18.2 | 421,252 | 272,276 | 54.7 | 272,379 | 273,692 | (0.5) | |||||||||
Net Income | 724,101 | 323,050 | 124.1 | 232,593 | 93,154 | 149.7 | 113,660 | 30,752 | 269.6 | |||||||||
(*) Considering 100% of RGE |
The performance indicators DEC and FEC of the group distributors in 2005, reflect their operational efficiency and the quality of the market in which they operate, achieving rates well above the average for Brazil, as can be observed in the table below
Commercialization Segment
Gross Revenue
Gross revenue of CPFL Brasil reached R$ 407.2 million in the 4Q05 and R$ 1.420 billion in 2005, showing respective growth 67.4% and 59.1%, mostly generated by growth in sales to free customers and other concessionaires.
22
The performance of CPFL Brasil on the free market demonstrates its effectiveness, with the conquest of 86 free customers and winning market share of 27%.
Comparison of End-Customers CPFL Brasil
COMMERCIALIZATION SEGMENT - GWh | 4Q05 | 4Q04 | Var.% | 2005 | 2004 | Var.% | ||||||
Residential | - | - | - | - | - | - | ||||||
Industrial (*) | 2,192 | 1,021 | 114.7 | 6,761 | 3,136 | 115.6 | ||||||
Commercial | 8 | 5 | 46.0 | 28 | 20 | 40.2 | ||||||
Rural | - | - | - | - | - | - | ||||||
Others | 22 | 14 | 54.4 | 73 | 54 | 35.7 | ||||||
TOTAL | 2,222 | 1,040 | 113.6 | 6,862 | 3,209 | 113.8 | ||||||
(*) Includes bilateral contracts |
23
EBITDA
The EBITDA of CPFL Brasil was R$ 61.0 million in the 4Q05 and R$ 224.7 million in 2005, presenting respective increases of 58.3% and 47.6%, due mainly to the growth of energy commercialization and the aggregation of services rendered.
Net Income
CPFL Brasil obtained a net income of R$ 41.5 million for the 4Q05 and R$ 153.8 million for 2005, showing growth of 61.4% and 51.2%, respectively.
Generation Segment
Gross Revenues
Gross operational revenues of CPFL Geração reached R$ 116.1 million in 4Q05 and R$ 435.9 million in 2005, growth of 33.0% and 31.8% respectively. This variation is the result of the following factors:
i. | Generation of 80 GWh at Monte Claro Plant in the 4Q05 and 333 GWh in 2005, generating revenue growth of R$ 12.3 million in 4Q05 and R$ 40.7 million in 2005 respectively; |
ii. | Operational start-up of the Barra Grande facility on November 1st 2005, generating an additional 73 GWh in 4Q05 and subsequent revenue of R$ 7.5 million; |
iii. | Increase of energy sales of CPFL Centrais Elétricas by 25 GWh in 2005 representing respective added revenue of R$ 15.1 million; |
iv. | Readjustments in bilateral contracts between CPFL Paulista and CPFL Centrais Elétricas of 11.12%, in April 2005, and a further 12.42% in the contract between SEMESA and FURNAS, in January 2005. |
24
EBITDA
The EBITDA of CPFL Geração totaled R$ 86.7 million in the 4Q05 and R$ 345.1 million in 2005, registering increases of 16.9% and 22.3% respectively. These variations are due mainly by the start-up of the Monte Claro Plant in December 2004, which generated an EBITDA of R$ 28.1 million in 2005 and the coming on-line of the Barra Grande Plant on November 1st 2005, which generated an EBITDA of R$ 5.2 million in 2005.
Net Income
Net income for the generation segment totaled R$ 30.1 million in the 4Q05 and R$ 117.2 million in 2005, increases of 60.6% and 64.9% .
Generation Projects Schedule
To give continuity to developments since the start-up of commercial operations of the Monte Claro Plant in December 2004, the first of three hydroelectric plants in the CERAN Complex, the following events highlight the progress in relation to the schedule of the projects:
i. | Operational start-up of the Barra Grande Plant on November 1st 2005, with the first turbine commercially operational. The second unit came on-line in early February 2006 and the last should be operational by April 30th 2006; |
ii. | The filling of the reservoir Campos Novos was initiated in October 2005. The commercial start-up of the first turbine is forecast for the 1st. quarter of 2006, with 91% of secured power; |
iii. | The forecast for commercial operation of the first unit of the Castro Alves hydroelectric plant is in 2007 and will represent 63% of secured power. The first unit of the 14 de Julho Plant is forecast for 2008 and will represent 93% of secured power. |
Both plants are part of the CERAN Complex; | |
iv. | Start of construction of the Foz do Chapecó hydroelectric plant is forecast for the 4Q06 with commercial operations envisioned for 2010. |
With the start-up of commercial operations of the Barra Grande and Campos Novos Plants, CPFL Geração will have increased its installed capacity by 65% between 2005 and 1H06, with a further 33% by 2010.
25
Investor Relations:
José Antônio de Almeida Filippo IRO | ||||
Vitor Fagá de Almeida IRM | E-mail: | Phone: (55 19) 3756-6083 | ||
Alessandra Munhoz Andretta Coordinator | ri@cpfl.com.br | |||
Silvia Emanoele P. de Paula - Coordinator | ||||
Adriana M. Sarinho Ribeiro | Facsimile: (55 19) 3756-6089 | |||
Edilaine Tracci | ||||
Juan Diego Melcón | ||||
Luis Fernando Castro de Abreu | ||||
Thiago Piffer |
ri.cpfl.com.br
CPFL Energia is one of the largest private companies in the distribution, generation and commercialization of electric energy in Brazil. CPFL is the only private company in the Brazilian electric energy sector that adopted the best corporate
governance practices BOVESPA Novo Mercado and also has a Level-3 ADR in NYSE - New York Stock Exchange. Our strategy is focused on the improvement of operating efficiency, on the conclusion of current generation projects and pursuing new
ones, on expanding and strengthening the commercialization business, developing new value-added products and services, and on strategically positioning the company to benefit from the sector consolidation, taking advantage of our experience
in integrating and restructuring other operations.
|
26
Parent Company | Consolidated | |||||||
ASSETS | 2005 | 2004 | 2005 | 2004 | ||||
CURRENT ASSETS | ||||||||
Cash and Banks | 249,452 | 186,385 | 1,029,241 | 817,724 | ||||
Consumers, Concessionaires and Licensees | - | - | 1,803,072 | 1,572,487 | ||||
Dividends and Interest on Equity | 515,494 | 387,387 | - | - | ||||
Other Receivables | - | 115 | 62,141 | 68,944 | ||||
Financial Investments | 22,923 | - | 22,923 | - | ||||
Recoverable Taxes | 60,369 | 48,838 | 188,772 | 174,663 | ||||
Allowance for Doubtful Accounts | - | - | (54,361) | (50,420) | ||||
Material and Supplies | - | - | 9,203 | 7,575 | ||||
Deferred Tariff Costs Variations | - | - | 486,384 | 463,928 | ||||
Prepaid Expenses | - | - | 58,014 | 9,425 | ||||
Derivative Contracts | 1,124 | - | 3,644 | - | ||||
Other Credits | 400 | - | 161,258 | 158,339 | ||||
849,762 | 622,725 | 3,770,291 | 3,222,665 | |||||
NONCURRENT ASSETS | ||||||||
Consumers, Concessionaires and Licensees | - | - | 416,268 | 582,290 | ||||
Other Receivables | - | - | 84,812 | 125,259 | ||||
Escrow Deposits | - | - | 224,100 | 145,396 | ||||
Financial Investments | 107,681 | - | 108,531 | 850 | ||||
Recoverable Taxes | 2,787 | - | 77,324 | 33,551 | ||||
Deferred Taxes | 72,000 | - | 1,118,441 | 1,055,675 | ||||
Deferred Tariff Costs Variations | - | - | 510,277 | 580,232 | ||||
Prepaid Expenses | - | - | 38,187 | 49,186 | ||||
Other Credits | - | - | 167,235 | 97,700 | ||||
182,468 | - | 2,745,175 | 2,670,139 | |||||
PERMANENT ASSETS | ||||||||
Investments | 4,298,189 | 3,754,635 | 3,095,162 | 2,841,132 | ||||
Property,Plant and Equipment | 137 | - | 4,841,766 | 4,414,917 | ||||
Special Obligation linked to the Concession | - | - | (640,997) | (588,053) | ||||
Deferred Charges | 204 | - | 40,045 | 57,321 | ||||
4,298,530 | 3,754,635 | 7,335,976 | 6,725,317 | |||||
TOTAL ASSETS | 5,330,760 | 4,377,360 | 13,851,442 | 12,618,121 | ||||
27
CPFL Energia S.A.
Balance Sheets as of December 31, 2005 and 2004
(in thousands of Brazilian Reais)
Parent Company | Consolidated | |||||||
LIABILITIES | 2005 | 2004 | 2005 | 2004 | ||||
CURRENT LIABILITIES | ||||||||
Suppliers | 1,908 | 6,831 | 782,233 | 663,857 | ||||
Payroll | - | - | 1,932 | 3,792 | ||||
Accrued Interest on Debts | - | 3,556 | 47,931 | 39,748 | ||||
Accrued Interest on Debentures | - | - | 94,948 | 98,490 | ||||
Loans and Financing | - | 10,618 | 1,198,015 | 864,573 | ||||
Debentures | - | - | 273,492 | 257,502 | ||||
Employee Pension Plans | - | - | 121,048 | 100,530 | ||||
Regulatory Charges | - | - | 30,945 | 61,504 | ||||
Taxes and Social Contributions Payable | 16,625 | 4,489 | 474,960 | 409,474 | ||||
Employee Profit Sharing | - | - | 6,768 | 5,284 | ||||
Dividends and Interest on Equity | 482,211 | 140,147 | 489,263 | 158,644 | ||||
Due to Related Parties | - | 58 | 54 | - | ||||
Accrued Liabilities | 8 | 7 | 29,490 | 25,935 | ||||
Deferred Tariff Gains Variations | - | - | 262,764 | 148,536 | ||||
Derivative Contracts | - | 2,934 | 39,928 | 43,056 | ||||
Other | 63 | 2 | 285,511 | 116,318 | ||||
500,815 | 168,642 | 4,139,282 | 2,997,243 | |||||
LONG-TERM LIABILITIES | ||||||||
Suppliers | - | - | 201,982 | 229,874 | ||||
Loans and Financing | - | 95,558 | 1,807,465 | 2,144,341 | ||||
Debentures | - | - | 1,556,599 | 1,640,705 | ||||
Employee Pension Plans | - | - | 793,343 | 798,903 | ||||
Taxes and Social Contributions Payable | - | - | 31,110 | 86,503 | ||||
Reserve for Contingencies | 8,533 | - | 376,510 | 304,036 | ||||
Deferred Tariff Gains Variations | - | - | 11,976 | 47,209 | ||||
Derivative Contracts | 25,364 | 17,178 | 29,635 | 44,696 | ||||
Other | - | - | 107,492 | 91,611 | ||||
33,897 | 112,736 | 4,916,112 | 5,387,878 | |||||
NON-CONTROLLING SHAREHOLDERS' | ||||||||
INTEREST | - | - | - | 137,018 | ||||
SHAREHOLDERS' EQUITY | ||||||||
Capital | 4,734,790 | 4,082,036 | 4,734,790 | 4,082,036 | ||||
Treasury Shares | (8) | - | (8) | - | ||||
Profit Reserves | 61,266 | 13,946 | 61,266 | 13,946 | ||||
4,796,048 | 4,095,982 | 4,796,048 | 4,095,982 | |||||
TOTAL LIABILITIES | 5,330,760 | 4,377,360 | 13,851,442 | 12,618,121 | ||||
28
CPFL Energia S.A.
Income Statement for the Fourth Quarters and Years ending 2005 and 2004
(In Thousands of Brazilian Reais)
Information (Consolidated - R$ thousands) | 4Q05 | 4Q04 | Var.% | 2005 | 2004 | Var.% | ||||||
GROSS REVENUES | 2,891,256 | 2,552,206 | 13.3% | 10,907,058 | 9,548,670 | 14.2% | ||||||
Electricity Sales to Final Consumers | 2,575,451 | 2,355,769 | 9.3% | 9,841,134 | 8,869,117 | 11.0% | ||||||
Electricity Sales to Distributors | 136,010 | 79,271 | 71.6% | 460,129 | 310,314 | 48.3% | ||||||
Other Revenues | 179,795 | 117,166 | 53.5% | 605,795 | 369,239 | 64.1% | ||||||
DEDUCTIONS FROM OPERATING REVENUES | (831,084) | (723,429) | 14.9% | (3,168,146) | (2,812,417) | 12.6% | ||||||
NET OPERATING REVENUES | 2,060,172 | 1,828,777 | 12.7% | 7,738,912 | 6,736,253 | 14.9% | ||||||
COST OF ENERGY | (990,554) | (964,708) | 2.7% | (3,931,951) | (3,804,310) | 3.4% | ||||||
Electric Energy Purchased for Resale | (802,628) | (770,750) | 4.1% | (3,174,765) | (3,125,752) | 1.6% | ||||||
Electricity Network Usage Charge | (187,926) | (193,958) | -3.1% | (757,186) | (678,558) | 11.6% | ||||||
OPERATING COSTS/EXPENSES | (674,681) | (375,217) | 79.8% | (2,046,800) | (1,663,865) | 23.0% | ||||||
Personnel | (82,640) | (72,269) | 14.4% | (315,764) | (293,252) | 7.7% | ||||||
Private Pension Fund | (22,410) | (8,646) | 159.2% | (89,637) | (150,630) | -40.5% | ||||||
Material | (13,500) | (16,594) | -18.6% | (49,196) | (44,956) | 9.4% | ||||||
Outsourced Services | (77,441) | (75,090) | 3.1% | (260,257) | (241,848) | 7.6% | ||||||
Depreciation and Amortization | (77,089) | (73,929) | 4.3% | (302,631) | (277,327) | 9.1% | ||||||
Merged Goodwill Amortization | (2,038) | 47,969 | -104.2% | (8,148) | (10,583) | -23.0% | ||||||
Fuel Consumption Account | (113,702) | (70,781) | 60.6% | (392,454) | (251,403) | 56.1% | ||||||
Enery Development Accout | (78,366) | (55,230) | 41.9% | (272,842) | (184,510) | 47.9% | ||||||
Other | (207,495) | (50,647) | 309.7% | (355,871) | (209,356) | 70.0% | ||||||
SERVICE INCOME | 394,937 | 488,852 | -19.2% | 1,760,161 | 1,268,078 | 38.8% | ||||||
FINANCIAL INCOME (EXPENSE) | (141,437) | (206,475) | -31.5% | (519,811) | (683,834) | -24.0% | ||||||
Net Income Expenses | (32,142) | (203,006) | -84.2% | (329,260) | (677,185) | -51.4% | ||||||
Interest on Equity | (109,295) | (3,469) | 3050.6% | (190,551) | (6,649) | 2765.9% | ||||||
OPERATING INCOME | 253,500 | 282,377 | -10.2% | 1,240,350 | 584,244 | 112.3% | ||||||
NON-OPERATING INCOME | 1,373 | 4,153 | -66.9% | (360) | (4,415) | -91.8% | ||||||
Income | 2,574 | 10,196 | -74.8% | 10,508 | 14,935 | -29.6% | ||||||
Expense | (1,201) | (6,043) | -80.1% | (10,868) | (19,350) | -43.8% | ||||||
INCOME BEFORE TAXES | 254,873 | 286,530 | -11.0% | 1,239,990 | 579,829 | 113.9% | ||||||
Social Contribution | 4,993 | (21,740) | -123.0% | (92,372) | (59,620) | 54.9% | ||||||
Income tax | 28,959 | (86,083) | -133.6% | (243,961) | (193,114) | 26.3% | ||||||
INCOME BEFORE EXTRAORDINARY ITEM | ||||||||||||
AND REVERSAL OF INTEREST | 288,825 | 178,707 | 61.6% | 903,657 | 327,095 | 176.3% | ||||||
Extraordinary Item Net of Tax Effects | (8,139) | (9,258) | -12.1% | (32,559) | (33,655) | -3.3% | ||||||
Non-Controlling Shareholders Interest | (9,264) | (12,834) | -27.8% | (40,371) | (21,170) | 90.7% | ||||||
Reversal of Interest on Equity | 109,295 | 3,469 | 3050.6% | 190,551 | 6,649 | 2765.9% | ||||||
NET INCOME | 380,717 | 160,084 | 137.8% | 1,021,278 | 278,919 | 266.2% | ||||||
29
Companhia Paulista de Força e Luz
Income Statement for the Fourth Quarters and Years ending 2005 and 2004
(In Thousands of Brazilian Reais)
Information (Consolidated - R$ thousands) | 4Q05 | 4Q04 | Var.% | 2005 | 2004 | Var.% | ||||||
GROSS REVENUES | 2,657,302 | 2,411,066 | 10.2% | 10,100,690 | 9,066,637 | 11.4% | ||||||
DEDUCTIONS FROM OPERATING REVENUE | (790,731) | (704,491) | 12.2% | (3,030,305) | (2,753,554) | 10.1% | ||||||
NET REVENUES | 1,866,571 | 1,706,575 | 9.4% | 7,070,385 | 6,313,083 | 12.0% | ||||||
COST OF ELECTRIC ENERGY | (966,677) | (972,849) | -0.6% | (3,898,783) | (3,865,295) | 0.9% | ||||||
Energy Purchased for Resale | (779,769) | (779,813) | 0.0% | (3,144,369) | (3,188,408) | -1.4% | ||||||
Electricity Network Usage Charge | (186,908) | (193,036) | -3.2% | (754,414) | (676,887) | 11.5% | ||||||
GROSS OPERATING INCOME | 899,894 | 733,726 | 22.6% | 3,171,602 | 2,447,788 | 29.6% | ||||||
OPERATING COSTS/EXPENSES | (639,256) | (335,832) | 90.3% | (1,936,773) | (1,550,465) | 24.9% | ||||||
Personnel | (77,159) | (68,025) | 13.4% | (295,805) | (278,074) | 6.4% | ||||||
Private Pension Fund | (22,116) | (10,844) | 103.9% | (88,463) | (148,122) | -40.3% | ||||||
Material | (12,501) | (11,780) | 6.1% | (46,072) | (38,509) | 19.6% | ||||||
Outsourced Services | (65,136) | (55,667) | 17.0% | (224,916) | (202,321) | 11.2% | ||||||
Depreciation and Amortization | (67,735) | (66,572) | 1.7% | (268,674) | (248,554) | 8.1% | ||||||
Merged Goodwill Amortization | (2,038) | 47,969 | -104.2% | (8,148) | (10,583) | -23.0% | ||||||
Fuel Consumption Account | (113,702) | (70,781) | 60.6% | (392,454) | (251,403) | 56.1% | ||||||
Energy Development Account | (78,366) | (55,389) | 41.5% | (272,842) | (184,510) | 47.9% | ||||||
Others | (200,503) | (44,743) | 348.1% | (339,399) | (188,389) | 80.2% | ||||||
INCOME FROM ELECTRIC ENERGY SERVICE | 260,638 | 397,894 | -34.5% | 1,234,829 | 897,323 | 37.6% | ||||||
FINANCIAL INCOME | (83,810) | (154,674) | -45.8% | (356,229) | (500,451) | -28.8% | ||||||
Financial Income | 183,397 | 111,382 | 64.7% | 495,349 | 384,696 | 28.8% | ||||||
Financial Expense | (174,958) | (200,044) | -12.5% | (674,720) | (763,845) | -11.7% | ||||||
Net Expenses on Revenue | 8,439 | (88,662) | -109.5% | (179,371) | (379,149) | -52.7% | ||||||
Interest on Equity | (92,249) | (66,012) | 39.7% | (176,858) | (121,302) | 45.8% | ||||||
OPERATING INCOME | 176,828 | 243,220 | -27.3% | 878,600 | 396,872 | 121.4% | ||||||
NON-OPERATING INCOME | 1,415 | 1,344 | 5.3% | 277 | (7,493) | -103.7% | ||||||
Income | 2,547 | 4,959 | -48.6% | 10,418 | 9,192 | 13.3% | ||||||
Expense | (1,132) | (3,615) | -68.7% | (10,141) | (16,685) | -39.2% | ||||||
INCOME BEFORE TAXES AND EXTRAORDINARY ITEM | 178,243 | 244,564 | -27.1% | 878,877 | 389,379 | 125.7% | ||||||
Social Cotribution | (2,122) | (14,108) | -85.0% | (69,549) | (33,136) | 109.9% | ||||||
Income Tax | (4,570) | (66,392) | -93.1% | (192,793) | (118,644) | 62.5% | ||||||
INCOME (LOSS) BEFORE EXTRAORDINARY ITEM | 171,551 | 164,064 | 4.6% | 616,535 | 237,599 | 159.5% | ||||||
Extraordinary item net of tax effects | (8,078) | (9,203) | -12.2% | (32,314) | (33,439) | -3.4% | ||||||
INCOME (LOSS) BEFORE NON-CONTROLLING | ||||||||||||
SHAREHOLDERS INTEREST | 163,473 | 154,861 | 5.6% | 584,221 | 204,160 | 186.2% | ||||||
Non-Controlling Shareholders Interest | (1,070) | (1,151) | -7.0% | (5,260) | (2,412) | 118.1% | ||||||
Reversal of Interest on Equity | 92,249 | 66,012 | 39.7% | 176,858 | 121,302 | 45.8% | ||||||
NET INCOME | 254,652 | 219,722 | 15.9% | 755,819 | 323,050 | 134.0% | ||||||
30
CPFL Comercialização Brasil S.A.
Income Statement for the Fourth Quarters and Years ending 2005 and 2004
(In Thousands of Brazilian Reais)
Information (R$ thousands) | 4Q05 | 4Q04 | Var. | 2005 | 2004 | Var. | ||||||
GROSS REVENUES | 407,193 | 243,289 | 67.4% | 1,419,805 | 892,569 | 59.1% | ||||||
Electricity Sales to Final Customers | 97,596 | 53,835 | 81.3% | 358,633 | 175,948 | 103.8% | ||||||
Electricity Sales to Distributors | 304,353 | 180,942 | 68.2% | 1,046,559 | 702,704 | 48.9% | ||||||
Other Operating Revenues | 5,244 | 8,512 | -38.4% | 14,613 | 13,917 | 5.0% | ||||||
DEDUCTIONS FROM OPERATING REVENUES | (55,382) | (32,459) | 70.6% | (192,377) | (109,914) | 75.0% | ||||||
NET REVENUES | 351,811 | 210,830 | 66.9% | 1,227,428 | 782,655 | 56.8% | ||||||
COST OF ENERGY | (282,661) | (161,984) | 74.5% | (975,972) | (606,547) | 60.9% | ||||||
Electric Energy Purchased for Resale | (282,640) | (161,520) | 75.0% | (975,516) | (605,544) | 61.1% | ||||||
Electricity Network Usage Charge | (21) | (464) | -95.5% | (456) | (1,003) | -54.5% | ||||||
OPERATING COSTS/EXPENSES | (8,224) | (10,353) | -20.6% | (26,820) | (23,879) | 12.3% | ||||||
Personnel | (1,920) | (1,210) | 58.7% | (6,691) | (4,013) | 66.7% | ||||||
Material | (780) | (4,505) | -82.7% | (2,378) | (5,401) | -56.0% | ||||||
Outsourced Services | (4,423) | (4,717) | -6.2% | (13,944) | (13,261) | 5.2% | ||||||
Depreciation and Amortization | (31) | (21) | 47.6% | (100) | (80) | 25.0% | ||||||
Others | (1,070) | 100 | -1170.0% | (3,707) | (1,124) | 229.8% | ||||||
SERVICE INCOME | 60,926 | 38,493 | 58.3% | 224,636 | 152,229 | 47.6% | ||||||
FINANCIAL INCOME | 1,457 | 449 | 224.5% | 7,245 | 1,950 | 271.5% | ||||||
Income | 2,885 | 1,745 | 65.3% | 13,287 | 7,218 | 84.1% | ||||||
Expense | (1,428) | (1,296) | 10.2% | (6,042) | (5,268) | 14.7% | ||||||
OPERATING INCOME | 62,383 | 38,942 | 60.2% | 231,881 | 154,179 | 50.4% | ||||||
INCOME BEFORE TAXES | 62,383 | 38,942 | 60.2% | 231,881 | 154,179 | 50.4% | ||||||
Social Contribution | (5,551) | (3,509) | 58.2% | (20,703) | (13,893) | 49.0% | ||||||
Income Tax | (15,366) | (9,740) | 57.8% | (57,387) | (38,570) | 48.8% | ||||||
NET INCOME | 41,466 | 25,693 | 61.4% | 153,791 | 101,716 | 51.2% | ||||||
31
CPFL Geração de Energia S.A.
Income Statement for the Fourth Quarters and Years ending 2005 and 2004
(In Thousands of Brazilian Reais)
Information (Consolidated - R$ thousands) | 4Q05 | 4Q04 | Var.% | 2005 | 2004 | Var.% | ||||||
GROSS REVENUES | 116,101 | 87,323 | 33.0% | 435,907 | 330,618 | 31.8% | ||||||
Electricity Sales | 112,403 | 80,769 | 39.2% | 429,222 | 323,469 | 32.7% | ||||||
Other Revenues | 3,698 | 6,554 | -43.6% | 6,685 | 7,149 | -6.5% | ||||||
DEDUCTIONS FROM OPERATING REVENUES | (11,672) | (3,948) | 195.6% | (42,465) | (17,449) | 143.4% | ||||||
NET REVENUES | 104,429 | 83,375 | 25.3% | 393,442 | 313,169 | 25.6% | ||||||
COST OF ENERGY | (3,174) | (1,267) | 150.5% | (8,859) | (4,511) | 96.4% | ||||||
Electricity purchased for resale | (2,177) | (809) | 169.1% | (6,543) | (3,843) | 70.3% | ||||||
Electricity Network Usage Charge | (997) | (458) | 117.7% | (2,316) | (668) | 246.7% | ||||||
OPERATING COSTS/EXPENSES | (24,167) | (15,287) | 58.1% | (74,560) | (58,114) | 28.3% | ||||||
Personnel | (3,397) | (3,249) | 4.6% | (12,782) | (11,012) | 16.1% | ||||||
Private Pension Fund | (294) | (37) | 694.6% | (1,174) | (2,508) | -53.2% | ||||||
Material | (199) | (234) | -15.0% | (702) | (978) | -28.2% | ||||||
Outsourced Services | (5,525) | (3,401) | 62.5% | (15,823) | (10,066) | 57.2% | ||||||
Depreciation and Amortization | (9,323) | (7,303) | 27.7% | (33,857) | (28,693) | 18.0% | ||||||
Others | (5,429) | (1,063) | 410.7% | (10,222) | (4,857) | 110.5% | ||||||
SERVICE INCOME | 77,088 | 66,821 | 15.4% | 310,023 | 250,544 | 23.7% | ||||||
FINANCIAL INCOME | (33,004) | (33,938) | -2.8% | (124,859) | (131,242) | -4.9% | ||||||
Income | 24,210 | 10,621 | 127.9% | 24,210 | 10,621 | 127.9% | ||||||
Expense | (57,214) | (44,559) | 28.4% | (149,069) | (141,863) | 5.1% | ||||||
OPERATING INCOME | 44,084 | 32,883 | 34.1% | 185,164 | 119,302 | 55.2% | ||||||
NON-OPERATING INCOME (EXPENSE) | (41) | (16) | 156.3% | 12 | 457 | -97.4% | ||||||
Income | 28 | (2) | -1500.0% | 81 | 471 | -82.8% | ||||||
Expense | (69) | (14) | 392.9% | (69) | (14) | 392.9% | ||||||
INCOME BEFORE TAXES | 44,043 | 32,867 | 34.0% | 185,176 | 119,759 | 54.6% | ||||||
Social Contribution | (1,265) | (4,124) | -69.3% | (15,120) | (12,591) | 20.1% | ||||||
Income Tax | (12,610) | (9,948) | 26.8% | (52,621) | (35,899) | 46.6% | ||||||
INCOME BEFORE EXTRAORDINARY ITEM | 30,168 | 18,795 | 60.5% | 117,435 | 71,269 | 64.8% | ||||||
Extraordinary Item Net of Tax Effects | (61) | (54) | 13.0% | (245) | (216) | 13.4% | ||||||
NET INCOME | 30,107 | 18,741 | 60.6% | 117,190 | 71,053 | 64.9% | ||||||
This report contains forward-looking information. Such information is not only historical facts, but reflects outlook and expectations of CPFL Energias management. Words such as believes, may, aims,
estimates, continues, anticipates, intends, expects and other similar words are used to indicate estimates and forecasts. Forward-looking statements and estimates include information
related to results and forecasts, strategy, financing plans, market competitive environment, sectors conditions, potential growth opportunities and effects of future regulations and from competition. Such estimates and forecasts refer only to
the moment they were made, and CPFL Energia has no obligation to publicly update or review any of these estimates due to new information available, future events or any other factor. Due to risks and uncertainties, estimates and forward-looking
statements in this report may not materialize. |
32
CPFL ENERGIA S.A.
| ||
|
By: /S/
JOSÉ ANTONIO DE ALMEIDA FILIPPO
| |
Name: José Antonio de Almeida Filippo
Title: Chief Financial Officer and Head of Investor Relations
|
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.