Brazil's CPFL back in profit in Q4

Brazilian renewable power company CPFL Renováveis posted net profits of R$27.8m ($12m) in the fourth quarter of 2013, reversing a R$155,000 loss in the same period a year ago.

Higher operational revenues from new wind farms and a reduction in financial expenses drove the company's profits.

In the full year, however, CPFL posted a loss of R$55m in 2013, which compares with net profits of R$8.3m in 2012.

In the final quarter, the company continued to buy power to meet power purchase agreements amid delays in the completion of power generation projects. In the third quarter, such purchases were responsible for a R$16m loss.

The company posted an Ebitda of R$175m for the quarter, a 6.1% increase compared with the same period in 2012. According to the company's statement, the Ebitda would have been 50% higher if power purchase deals and other extraordinary expenses hadn't needed to be met.

In the full year of 2013, the company's registered net operational revenues of R$1.1bn, up 26% from R$804 in 2012. The increase was mainly due to the expansion of the company's wind power portfolio via acquisitions, and to the start of commercial operations of wind farms.

CPFL ended 2013 with total installed capacity of 1.79GW (including wind, biomass, small hydro and solar), of which 1.28GW were operating.  Of the operational generation assets, 586MW were wind, 327MW were small-scale hydro, 370MW were biomass and 1MW were solar.

Wind power accounted for 50.4% of the company's revenue in 2013, up from 46.7% in 2012. Power from biomass plants rose to 19.1% from 13% by the same comparison and small-scale hydro reduced its contribution to the company's revenue from 40.3% to 30.3%.

In 2013, the company invested R$804m down from R$1bn in 2012. At the end of the year, CPFL focused investments to complete five wind complexes: Campos dos Ventos II, Coopcana, Macacos I, Atlântica and Alvorada.