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Brazil’s Light is “actively working” on divestment program, including hydro

Brazil’s Light is “actively working” on divestment program, including hydro

Brazilian power holding company Light is “actively working” on a divestment program, Chief Financial Officer Roberto Barroso told attendees of an investors webcast Friday.

According to BNamericas, the goal is to sell interests in assets that are not wholly controlled by the group, such as Ganhà£es Energia, the 11,233-MW Belo Monte hydroelectric power plant and the 25-MW Paracambi small hydro plant.

Ganhà£es Energia is a special purpose company responsible for the operation of four small hydro plants — Dores de Guanhà£es, Senhora do Porto, Jacaré and Fortuna I — in Minas Gerais state, with total installed capacity of 44 MW. Light holds a 51% stake in the company and Cemig Geraçà£o e Transmissà£o the rest.

Located in Parà¡, Belo Monte is Brazil’s largest 100% hydro plant. It is operated by the Norte Energia Consortium, in which Light holds a 9.77% stake through Amazà´nia Energia, in partnership with Cemig.

Paracambi is in Rio de Janeiro state and is owned by Light and Cemig.

“We are divesting so we can focus on areas that have generated the most value for us, like Light Energia [generation], Lightcom [power trading] and electricity distribution,” Barroso said. 

Light posted a BRL136 million (US$24.9 million) net profit in the third quarter of 2020, compared to a BRL1.5 billion profit a year before. Adjusted EBITDA between July and September was BRL587 million, down 46%.