Losses at Eletrobras attributed to Angra 3

17 November 2015

Brazil's state-run power utility Eletrobras has posted a BRL4.01bn ($1.06bn) third-quarter loss due to weaker hydropower generation and a massive impairment charge on Angra 3 nuclear power plant.

The loss was almost three times the BRL1.36bn loss in the second quarter, and can be attributed mainly to a BRL3.39bn impairment charge on Angra 3.

The BRL14bn Angra 3 project has also been at the focus of corruption allegations at Eletrobras. In late July, the president of Eletrobras' nuclear power unit, Eletronuclear, was arrested and later charged with taking bribes from building contractors at the site. He subsequently resigned. The main Brazilian contractors on the Angra 3 project have also withdrawn from their contracts.

Eletrobras said in its earnings statement that an independent review of its operations led by US-based law firm, Hogan Lovells, in the wake of the scandal had not yet finished and that it had no information about any potential financial impact of the corruption scandal on its balance sheet and earnings.

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