THE EDP Brasilfrom the Portuguese company EDP, will make an accounting write-off of 1.2 billion reais related to its Pecém thermoelectric plant after a reassessment of the asset in view of the cancellation of auction of capacity reserve scheduled for 2022, in which the company planned to renew the venture’s contracts.
“Given the cancellation of the auction and, consequently, the loss of the most suitable window for the renewal of the Pecém contracts, the company recognized, at this moment, the impairment”, said EDP, in a statement to the market this Thursday.
“Despite this fact, EDP points out that there will be no impact on its expected cash generation until July 2027, on the payment of debts or financial obligations, on compliance with the dividend policy.”
The company also highlighted that 2022 was the first year in which the plant could participate in this auction and that, therefore, it considered these assumptions in the impairment test.
“Various scenarios were analysed, including the probability of there being or not new auctions and their respective impacts”, said EDP.
Located in Ceará, the plant has an installed capacity of 720 MW and supports the electricity system in the Northeast through availability contracts, which reached 98% in 2022, the highest rate since its entry into operation.
Additionally, Ebitda in the first nine months of 2022 reached 446 million reais, indicators that reflect the excellent operational and financial performance of Pecém, according to the company.
EDP stressed that it will continue to work actively so that new opportunities are created for the renewal of Pecém contracts, so that the plant can continue.
Source: Moneytimes
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