Direct economic value generated and distributed (R$ thousand)

During 2023, Norte Energia recorded a 4% increase in net operating revenue and reached BRL 5,764 millions. Despite this, the increase in operating expenses, energy sales costs and the acquisition of energy for resale, among other factors, resulted in a 7% reduction in the year’s accumulated EBITDA¹, which reached BRL 3 million.

Several factors contributed to this performance. Among them, the increase in operating costs, the decision by the electrical system operator to divert a significant portion of the water intended for power generation to the spillway, the decrease in rainfall due to the El Niño phenomenon and the drop in the settlement price of differences (PLD), which, in 2023, remained at the minimum level of BRL 69.04/MWh.

The following financial statements were prepared in accordance with accounting practices adopted in Brazil, covering the standards of the Brazilian Securities and Exchange Commission (CVM), the pronouncements, interpretations and guidelines of the Accounting Pronouncements Committee (CPC), approved by the Federal Accounting Council (CFC), and the international financial reporting standards (IFRS), issued by the International Accounting Standards Board (IASB).

Furthermore, Norte Energia follows the guidelines contained in the Brazilian Electricity Sector Accounting Manual and the standards defined by the Brazilian Electricity Regulatory Agency (Aneel). The information presented was verified internally, with the approval of senior management, and underwent a specific audit carried out by the consultancy Ernst & Young.

¹ Ebitda is the acronym for “Earnings Before Interest, Taxes, Depreciation, and Amortization”. It is a financial measurement used to evaluate the operational performance of a company, excluding financial expenses, taxes, depreciation and amortization. Ebitda is often used by investors and analysts to compare performance between companies in different industries or to assess the financial health of a company in terms of its ability to generate operating profit.