By Brazil Stock Guide – Brazil’s state-owned nuclear holding ENBPar has adopted emergency measures aimed at preventing a cash deficit at its subsidiary Eletronuclear in 2025, according to a document sent to federal ministers. The steps rely on postponing payments and rolling over debt and are expected to ease liquidity pressures only in the short term.
The measures include delaying November and December 2025 installments on loan contracts linked to the life-extension program of the Angra 1 nuclear plant. Those contracts were signed between Eletronuclear and Eletrobras (ELET3.SA, ELET6.SA). ENBPar also approved the rollover of Eletronuclear’s debt instruments with BTG Pactual (BPAC11.SA) and Banco ABC Brasil (ABCB4.SA), which are also tied to the Angra 1 life-extension project.
In addition, ENBPar is mediating an agreement related to nuclear fuel credits for Angra 3, with the goal of stabilizing the financial position of companies within the group, including Indústrias Nucleares do Brasil and Eletronuclear.
ENBPar Chief Executive Officer Marlos Costa de Andrade warned that the impact of the actions is limited to 2025 and does not address the structural challenges facing Eletronuclear. “The restriction of resources for Eletronuclear, the tariff imbalance, the lack of funding for investments to extend the life of Angra 1 and, in particular, the uncertainty surrounding the Angra 3 project, which awaits a decision by the National Energy Policy Council, have made Eletronuclear’s situation increasingly irreversible,” he wrote in the document.
Without a decision on the future operation of Angra 3, Eletronuclear has been covering the plant’s operating costs using cash generated by Angra 1 and Angra 2, increasing pressure on its finances and raising the risk of a deficit.
The document also notes that the R$2.4 billion expected to enter Eletronuclear’s cash flow from a settlement between the federal government and Axia Energia, formerly Eletrobras, will not be enough to fully stabilize the company. The settlement was approved by Brazil’s Supreme Court this month, following a lawsuit that challenged limits on the government’s voting power after Eletrobras’ privatization.
Under the agreement, the government retains a 10% voting cap but increases its seats on Eletrobras’ board and secures a position on the fiscal council. The deal also provides for a R$2.4 billion investment in the modernization and expansion of Angra 1, while relieving Axia Energia of its obligation to fund the construction of Angra 3, which remains pending a policy decision.
Leave a Reply