Light off
Earnings reports from electric power companies did not brighten investors' day.
247 – Shares of Light (LIGT3) remained among the biggest losers on the Ibovespa this Monday morning after the release of weak results for 2010.
The announcement came Friday night, after the close of trading on the stock exchange, and gave ammunition to financial market agents to act on Monday with sell orders. The company saw an 80% drop in its net profit in the fourth quarter of 2010, to R$ 60 million, compared to R$ 299 million in the last quarter of 2009.
Although the company's net revenue grew by 5,2%, to R$1, the operating result was yet another reason for investor frustration. EBITDA (earnings before interest, taxes, depreciation, and amortization) totaled R$347 million in the period, a 20% decrease compared to R$433 million in the fourth quarter of 2009.
Another energy company that reported weak results was CTEEP, Companhia de Transmissão de Energia Elétrica Paulista, which had a net profit of R$ 812,171 million in 2010, a decrease of 5,8% compared to the previous year.