Earnings Release 1Q14

1Q14 Earnings Release

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ENEVA Announces First Quarter 2014 Results

EBITDA reached R$ 103.9 million as a result of increased generation capacity and improved operational

performance of the coal plants

Rio de Janeiro, May 13, 2014 - ENEVA S.A. (BM&FBOVESPA: ENEV3, GDR I: ENEVY) announces today the results

for the first quarter ended March 31, 2014 (1Q14). The information below is presented on a consolidated basis in

accordance with the accounting practices adopted in Brazil, except when stated otherwise.

1Q14 Highlights

• Energy sales: 218% growth as a result of increased commercial capacity and improved operation of coal plants;

• Net Revenues: increase of 199% with full-quarter commercial operation of Itaqui, Pecém II and Parnaíba I;

• Operating Costs: increase of 58% due to growth in fuel costs resulting from increased commercial capacity in

operation. Cost per MWh decreased 57% ;

• Operating Expenses: 6% decrease resulting from reduction of headcount and lower stock option-related expenses;

• EBITDA: stronger EBITDA resulting mainly from increased capacity and improved operational performance of the coal

plants;

• Unavailabity penalties: Federal Court granted injunction to Pecém I and Itaqui halting unavailability charges based

on hourly measurements;

• Generation capacity: the Parnaíba III power plant was authorized by Aneel to begin commercial operations of its second

generation unit (7MW), thus reaching 176MW of installed capacity;

• PGN: R$ 250 million capital increase concluded;

• Management and Board of Directors: New CEO, Fabio Bicudo took office in February. Two new independent Board

members appointed.

Main Indicators

(R$ thousand) 1Q14 1Q13 %

Net Operating Revenues 586,771 196,098 199%

Operating Costs (494,779) (312,609) 58%

Operating Expenses (36,791) (39,029) -6%

EBITDA 103,912 (137,645) N.A.

Net Income (71,931) (250,901) -71%

Net Debt 5,912,983 5,899,021 0.24%

Total Generation Energy Sales (GWh) 2,249 708 218%



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1Q14 & Subsequent Events

Federal Court Grants Pecém I and Itaqui Injunctions to Halt Hourly Unavailability Charges

In January, a Federal Court granted an injunction to the Company’s subsidiaries Porto do Pecém Geração de

Energia S.A. (Pecém I) and Itaqui Geração de Energia S.A. halting unavailability charges measured on an hourly

basis, effective immediately. Earlier in the month, Pecém I and Itaqui had filed a lawsuit against Aneel, Brazil’s

National Electric Energy Agency, questioning the penalties being charged on an hourly basis, considering that the

Regulated Market Power Purchase Agreements provide for using the 60-month rolling average availability.

Changes in Management and Board of Directors

In February, Fabio Bicudo was appointed as the new CEO of ENEVA. Mr. Bicudo was most recently the co-head of

Brazil Investment Banking and a member of the Brazil Management Committee at Goldman Sachs. ENEVA’s

Board of Directors also welcomed two new independent members, Mr. Luiz Fernando Fleury and Mr. Ronnie Vaz

Moreira. Mr. Fleury, who were elected in December 12, 2013, has formerly served as CEO and Board Member of

Redecard and Banco Ibi. Mr. Moreira, elected on January 10, 2014, has extensive experience in the energy

sector, having served as CFO of Petrobras and Executive VP at Light.

Completion of the Capital Increase of Parnaíba Gás Natural S.A.

In February, a capital increase in the total amount of R$ 250 million of ENEVA’s affiliated company Parnaíba Gas

Natural S.A. (PGN) was concluded, having been fully subscribed and paid in by Cambuhy Investimentos and

E.ON. As a result, PGN’s corporate structure is currently as follows: OGX Petróleo e Gás S.A. – Em Recuperação

Judicial (OGX), controlled by OGP, holds approximately 36.36%; Cambuhy holds approximately 36.36%; Eneva

holds approximately 18.18%; and E.ON holds approximately 9.09% of the common shares of PGN.

Beginning of Commercial Operations of 2nd Generation Unit of Parnaíba III Power Plant

The Parnaíba III thermo power plant received in February authorization from Aneel, Brazil’s National Electric

Energy Agency, to start the commercial operations of its second generation unit, with 7MW of installed capacity.

Thereby, the installed capacity of the plant reached 176MW, complying with the total capacity contracted under

the terms of the Regulated Market power purchase agreement secured in the 2008 A-5 energy auction.

Capitalization and Debt Maturity Profile Extension

On May 12, 2014, the Company announced a transaction comprising a private capital increase of up to R$ 1.5

billion, the sale of between 50% and 100% of Pecém II and the restructuring of the HoldCo debt. The capital

increase will be carried out in two phases:

(i) Phase I: amounting up to R$ 316.5 million, at a price of R$1.27 per share, whereby E.ON has

committed to subscribe for new ENEVA shares in an amount of R$120 million;

(ii) Phase II: totaling up to R$ 1.5 billion minus the funds raised in Phase I, whereby E.ON has

committed to subscribe for new ENEVA shares up to an amount of R$450 million. E.ON’s commitment

may be fulfilled through the contribution of E.ON shareholding in Pecém II and its subscription is

limited to the extent that E.ON’s participation in ENEVA shall not exceed 49.9%.


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In parallel to Phase I, ENEVA has launched a competitive bidding process for the sale of between

50% and 100% of Pecém II, in which E.ON has committed to provide a backstop guarantee whereby

it would acquire 50% of the asset at a maximum price of R$ 400 million. A long term financing to

Pecém II will be provided by the Bank Parties in the total amount of R$150 million, subject to

obtainment of consents and approvals under existing financing agreements of ENEVA group.

Additionally, the financing banks agreed to push-down R$ 600 million of the HoldCo debt to its

operating subsidiaries, with a 5-year maturity extension with three years of grace period for the

remaining portion.

Aneel Denies Injunction to Suspend Power Purchase Agreements of Parnaíba II CCGT

On May 13, the Board of the National Electric Energy Agency (Aneel) denied the Company’s request for an

injunction that would suspend the beginning date of the Regulated Market Power Purchase Agreements of the

Parnaíba II CCGT plant. A final judgement on the matter is still pending.

The Company is analyzing additional alternatives including judicial measures and will keep its shareholders and

the market updated about any developments regarding this matter.


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Economic and Financial Performance

1. Net Operating Revenues

In 1Q14, ENEVA recorded consolidated Net Operating Revenues of R$ 586.8 million vs R$ 196.1 million reported

in 1Q13. The increase in net revenues is mostly attributable to the beginning of commercial operations of Pecém

II in October 2013 and full-quarter operations of Itaqui and Parnaíba I.

Net revenues in 1Q14 are comprised largely by the revenues from the Regulated Market Power Purchase

Agreements (PPA) of Itaqui, Pecém II and Parnaíba I, which reached, respectively, R$ 159.1 million, R$ 147.1

million and R$ 268.1 million in the period.

The breakdown of operating revenues for 1Q14 is as follows:

Operating Revenues

(R$ million) Consolidated Itaqui Pecém II Parnaíba I Amapari Parnaíba II

Gross Revenues 656.6 176.7 164.5 298.3 16.9 0.2

Fixed Revenues 269.9 79.0 71.3 110.8 8.9 0.0

Variable Revenues 330.0 60.7 77.3 183.7 8.0 0.2

Adjustments from previous periods 0.0 0.0 0.0 0.0 0.0 0.0

Other Revenues 56.7 37.0 15.9 3.8 0.0 0.0

Deductions from Operating Revenues -69.8 -17.6 -17.4 -30.2 -4.6 0.0

Net Operating Revenues 586.8 159.1 147.1 268.1 12.3 0.2

2. Operating Costs

Operating Costs

(R$ thousands) 1Q14 1Q13

Personnel and Management (13,021) (5,313)

Fuel (227,875) (90,207)

Outsourced Services (35,914) (3,707)

Leases and Rentals (98,454) (15,440)

Energy Acquired for Resale (26,995) (172,766)

Other Costs (44,578) (7,919)

Transmission Charges (16,118) (8,553)

Compensation for Downtime (32,353) -

Other 3,894 634

Total (446,836) (295,352)

Depreciation and Amortization (47,942) (17,257)

Total Operating Costs (494,779) (312,609)

Operating Costs totaled R$ 494.8 million in 1Q14, impacted mainly by an increase of R$ 137.7 million in fuel

costs relative to the same period of the preceding year, due to the full-quarter operation of Itaqui and Parnaíba I


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the beginning of commercial operations of Pecém II. All plants were dispatched by the ONS during the full

quarter. The fuel cost of R$ 227.9 million recorded in the quarter is divided into R$ 62.7 million incurred by

Itaqui, R$ 62.8 million incurred by Pecém II, R$ 85.0 million incurred by Parnaíba I and R$ 17.4 million by

Amapari.

The full-quarter operation of these plants also impacted the Outsourced Services account, which reached R$ 35.9

million in 1Q14, mainly due to higher costs with utilities, machinery and equipment repair, mechanical

maintenance service and technical consulting.

The Leases and Rentals account, which totaled R$ 98.5 million in the quarter, is comprised mainly by lease costs

incurred by Parnaíba I, according to its gas supply agreement (R$ 96.6 million).

The Other Costs account, which totaled R$ 44.6 million in 1Q14, is mainly composed by transmission charges

(TUST) and compensation for downtime of the power plants (unavailability charges).

In 1Q14, Itaqui, Pecém II and Parnaíba I had to reimburse discos for the energy not delivered by the difference

between their declared variable cost per MWh (CVU) and the spot price (PLD). In the quarter, these costs

amounted to R$ 5.5 million, R$ 14.0 million and R$ 12.9 million for Itaqui, Pecém II and Parnaíba I, respectively.

On January 07, 2014, Itaqui filed a lawsuit against Aneel questioning the penalties being charged on an hourly

basis, considering that the Regulated Market Power Purchase Agreements (PPAs) provide for using the 60-month

rolling average availability. On January 24, 2014, a Federal Court granted an injunction to Itaqui determining

that unavailability charges be calculated based on the 60-month rolling average. In the cases of Pecém II and

Parnaíba I, unavailability charges are still being measured and charged on an hourly basis. Downtime charges

are calculated based on the difference between the actual production of the generating units and the authorized

capacity discounting forced and programmed stoppage rates, internal consumption of the units and grid losses.

3. Operating Expenses

In the quarter, Operating Expenses, excluding Depreciation & Amortization, amounted to R$ 36.0 million, a 6.2%

reduction when compared to 1Q13. In the same period, the holding company posted Operating Expenses,

excluding Depreciation & Amortization, of R$ 27.8 million, compared to the R$ 23.3 million recorded in 1Q13.

During the period, the IPCA inflation index rose by 6.15%.

Operating Expenses Consolidated

(R$ thousands) 1Q14 1Q13 %

Personnel (15,292) (20,297) -24.7%

Outsourced Services (17,358) (14,062) 23.4%

Leases and Rentals (1,528) (1,677) -8.9%

Other Expenses (1,845) (2,354) -21.6%

Total (36,023) (38,391) -6.2%

Depreciation and Amortization (768) (638) 20.4%

Total Operating Expenses (36,791) (39,029) -5.7%


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Operating Expenses Holding


Personnel (13,287) (11,121) 19.5%

Stock Options 3,511 5,714 -38.5%

Outsourced Services (11,925) (9,796) 21.7%

Leases and Rentals (1,348) (1,080) 24.8%

Other Expenses (1,239) (1,260) -1.7%

Total

(27,799) (23,258) 19.5%


Total Operating Expenses (28,324) (23,712) 19.5%

The main changes are as follows:

• Personnel: Personnel expenses totaled R$ 15.3 million in 1Q14, compared to R$ 20.3 million reported in

the same period of the preceding year. The reduction in personnel expenses is largely a result of:

� Reduction in stock option-related expenses resulting from a decrease in both the number of

options outstanding and the share price since 1Q13 (-R$ 2.2 million);

� Headcount reduction in Parnaíba I and II (-R$ 3.1 million);

• Outsourced services: Expenses with outsourced services in 1Q14 totaled R$ 17.4 million, up R$3.2

million in relation to 1Q13. The highlights are:

� Decrease in expenses with shared services in the holding company, resulting from the

elimination of EBX’s service structure (-R$ 4.2 million);

� Increase in expenses with technical, financial and legal consulting services in the holding

company (+R$ 4.8 million);

� Increase in third-party services at Parnaíba II, aimed mainly at expediting the construction of

the plant (+R$ 1.5 million)

4. EBITDA

In 1Q14, ENEVA reported a positive EBITDA of R$ 103.9 million, mainly due to:

• Beginning of commercial operations of Pecém II on Oct 18, 2013;

• Full-quarter operations of Itaqui and Parnaíba I; and

• Improved operational performance of the coal plants, with resulting decrease on operating costs per

MWh generated.


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5. Net Financial Result

Financial Result


Financial Income 50,517 12,701 297.7%

Monetary variation 21,368 3,889 449.5%

Revenues from financial investments 19,239 9,876 94.8%

Marking-to-market of derivatives 9,036 (3,018) -399.5%

Settlement of derivatives - 1,575 -100.0%

Present value adjust. (debentures) - (251) -100.0%

Other 874 631 38.5%

Financial Expenses (174,811) (90,528) 93.1%

Monetary variation (16,012) (2,263) 607.5%

Interest expenses (149,417) (58,088) 157.2%

Settlement of derivatives - (634) -100.0%

Marking-to-market of derivatives - (1,616) -100.0%

Costs and Interest on Debentures (211) (213) -0.6%

Other (9,170) (27,714) -66.9%

Net Financial Result (124,293) (77,827) 59.7%

In 1Q14, ENEVA recorded net financial expenses of R$ 124.3 million, compared to net expenses of R$ 77.8

million in 1Q13, impacted mainly by the increase in interest expenses in the holding company (+R$ 52.1 million),

Itaqui (+R$ 15.0 million); Pecém II (+R$ 33.1 million) and Parnaíba I (+R$ 6.5 million). Given the end of the

grace period for interest payments on the Pecém II and Parnaíba I long-term debts, interest due, which until

then was mostly capitalized, started being expensed. Higher interest expenses at the holding level are related to

the growth in debt motivated by increased cash needs in the subsidiaries resulting from energy acquisition costs

due to delays in the startup of the power plants and unavailability penalties.

6. Equity Income

The company reported a negative equity income of R$ 7.4 million, mainly impacted by losses incurred by Pecém

I.

The following analysis considers 100% of the projects. On March 31, 2014, ENEVA held an interest of 50.0% in

Pecém I, 50% in Eneva Participações, 52.5% in Parnaíba III and Parnaíba IV, and 18.2% in Parnaíba Gás Natural

(formerly, OGX Maranhão).


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6.1. Pecém I

INCOME STATEMENT - Pecém I

(R$ million) 1Q14 1Q13 %

Net Operating Revenues 283.7 207.5 36.7%

Operating Costs

(265.7) (363.1) -26.8%

Operating Expenses (4.7) (3.9) 20.8%

Net Financial Result

(58.8)

(28.7) 104.7%

Earnings Before Taxes (45.5) (188.2) -75.8%

Taxes Payable and Deferred 15.5 64.0 -75.8%

NET INCOME (30.0) (124.2) -75.8%

EBITDA 48.8 (143.4) -134.0%

Net revenues for Pecém I in the quarter amounted to R$ 283.7 million, comprised of:

• Fixed revenues amounting to R$ 151.1 million;

• Variable revenues amounting to R$ 103.1 million;

• Revenues referring to power trades resulting from the annual revision of the plant’s firm energy, provided for

in the concession contract, totaling R$ 64.4 million;

• Taxes on revenues amounting to R$34.9 million.

Operating Costs, excluding depreciation and amortization, totaled R$ 230.2 million, a 33.7% decrease compared

to the same period of last year, mostly attributable to the reduction in energy acquisition costs. The second

generating unit of Pecém I was granted authorization for commercial operations in May 2013 and therefore 1Q13

figures were impacted by costs incurred to meet contractual obligations for this unit.

Fuel costs in the quarter reached R$ 93.4 million, split mainly between coal (R$ 83.4 million) and diesel oil (R$

5.3 million) costs.

Operating costs in 1Q14 were also inflated by costs associated with power trades resulting from the annual

revision of the plant’s firm energy, provided for in the concession contract, amounting to R$ 57.0 million. Every

year, the ONS resets the plant’s firm energy based on the performance of the past 60 months. If the average

availability rate falls below the value originally declared, the plant’s firm energy is reduced and the difference has

to be covered by a free market collateral contract. The plant can then sell in the spot market the energy

associated with the collateral contract, maintaining only the collateral component of the contract. In 1Q14, given

high spot prices, gross revenues resulting from this sale amounted to R$ 64.4 million.

Other Costs totaled R$ 55.0 million in 1Q14. This account is composed mainly by transmission charges (R$ 14.0

million) and compensation for downtime or unavailability charges (R$ 40.6 million).

In 1Q14, Pecém I recorded a positive EBITDA of R$ 48.8 million. Net financial expenses amounted to R$ 58.8

million, compared to R$ 28.7 million in 1Q13, impacted mainly by increased interest expenses due to interest on

long-term financing no longer being capitalized with the start-up of operations, interest on intercompany loans,


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higher losses on monetary variation, due to differential exchange rates on hedging swaps and the reversal of

values previously booked to Shareholders’ Equity due to the ineffectiveness of hedge accounting.

Pecém I reported a net loss of R$ 30.0 million in 1Q14.

6.2. Eneva Participações S.A. (formerly MPX/E.ON Participações)

6.2.1. Holding Operating Expenses

Operating Expenses Holding ENEVA Participações S.A.


Personnel (6,022) (8,894) -32.3%

Outsourced Services

(2,055)

(1,721) 19.4%

Leases and Rentals (576) (909) -36.7%

Other Expenses (251) (393) -36.2%

Total (8,903) (11,917) -25.3%


Total Operating Expenses (8,924) (11,919) -25.1%

In 1Q14, Operating Expenses, excluding Depreciation & Amortization, amounted to R$ 8.9 million, a decrease of

R$ 3.0 million compared to 1Q13, mostly attributable to reduced personnel expenses.

6.2.2. Parnaíba III

INCOME STATEMENT - Parnaíba III



Operating Costs (63.4) (67.1) -5.5%


Net Financial Result (2.7) (0.8) 263.5%

Other Revenues/Expenses (0.8) - -

Earnings Before Taxes 9.3 (31.7) -129.3%

Taxes Payable and Deferred (3.1) 10.8 -129.2%

NET INCOME 6.1 (20.9) -129.3%

EBITDA 14.4 (30.9) -147%

On October 22, 2013, Parnaíba III received authorization from Aneel to start the commercial operations of its

first generation unit, with 169MW of installed capacity. On February 17, 2014, the plant started the commercial

operations of its second generation unit, with 7MW of installed capacity. Thereby, in 1Q14, the installed capacity

of the plant reached 176MW, complying with the total capacity contracted under the terms of the Regulated


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Market power purchase agreement secured in the 2008 A-5 energy auction.

Net revenues in the quarter totaled to R$ 76.5 million, split between fixed revenues of R$24.9 million and

variable and other revenues amounting to R$ 60.2 million. Revenues in 1Q13 refer to the pass-through of

energy acquisition costs incurred to ensure compliance with the plant’s energy supply agreements until the

authorization to start commercial operations.

Operational Costs reached R$ 63.4 million in the quarter, comprised mainly of:

• Fuel - natural gas (R$ 19.1 million);

• Lease costs, according to the gas supply agreement (R$ 29.1 million)

• Energy acquisition costs incurred to meet contractual obligations until the start-up of the second generation

unit (R$ 2.4 million)

• Unavailability costs (R$ 6.8 million).

In 1Q14, Parnaíba III recorded a positive EBITDA of R$ 14.4 million.

Net financial expenses amounted to R$ 2.7 million, mainly impacted by interest expenses.

Parnaíba III reported a net income of R$ 6.1 million in 1Q14.

6.2.3. Parnaíba IV

INCOME STATEMENT - Parnaíba IV


Net Operating Revenues 32.9 - -

Operating Costs (23.1) (0.0) -


Net Financial Result (1.2) (2.6) -52.4%

Other Revenues/Expenses (0.9) - -

Earnings Before Taxes 7.0 (2.7) -356.7%

Taxes Payable and Deferred (1.3) - -

NET INCOME 5.7 (2.7) -308.6%

EBITDA 10.3 (0.2) -6610.3%

Parnaíba IV (56MW) received authorization from Aneel to start commercial operations as a power self-producer

on December 12, 2013. The plant, a partnership between Eneva, Eneva Participações and Petra Energia S.A.,

signed a contract in the free market, for a five-year period, to supply 20 MWavg from December, 2013 until May,

2014 and 46MWavg from June, 2014 until December, 2018.

In 1Q14, Parnaíba IV recorded net revenues of R$ 32.9 million and operational costs amounting to R$ 23.1

million, impacted mainly by fuel costs – natural gas (R$ 6.8 million) and energy costs resulting from submarket

exposure (R$ 12.7 million). One should note that such exposure was partially hedged, with resulting revenues


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accounted for in the ENEVA Trading arm.

Parnaíba IV reported an EBITDA of R$ 10.3 million in the quarter.

Net financial expenses totaled R$ 1.2 million, mainly impacted by debt interest.

In 1Q14, the plant reported a net income of R$ 5.7 million.

6.3. Parnaíba Gás Natural

In 1Q14, Parnaíba Gás Natural recorded net revenues of R$ 162.0 million, with a cumulative production of 378.6

million m3 of gas. EBITDA in the quarter reached R$ 133.8 million.

Parnaíba Gás Natural recorded a net profit of R$ 35.1 million in 1Q14.

Income Statement (Non audited) Parnaíba Gás Natural

(R$ thousand) 1Q14 1Q13

Operating Period(1) 90 days 65 days

Gas Production - in MMm3 (2) 378.6 83.5

Gross Operating Revenues 181,559 39,279

Deductions from Gross Revenue(3) (19,533) (4,522)

Net Operating Revenues 162,026 34,757

Production costs (3,712) (3,597)

Royalties, Special Part. And Government Part. (23,218) (2,718)

SG&A 126 (6,317)

Exploration Expenses (1,426) (37,355)

EBITDA 133,796 (15,230)

Depreciation and Amortization (38,332) (5,667)

Net Financial Income (41,216) (5,134)

Financial Income 2,669 1,729

Financial Expenses (43,191) (5,148)

Foreign Exchange (694) 3,717

Derivatives - (5,432)

Earnings Before Taxes 54,248 (26,031)

IR (14,042) 6,306

CSLL (5,057) 2,271

Net Income 35,149 (17,454)

(1) Date of closing for book values: 25th day of the month. (2) Gas production related to Parnaíba Gás Natural’s participation in the blocks (70%).

(3) Deductions from Revenues: taxes such as PIS/COFINS/ICMS.


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7. Net Income

In 1Q14, ENEVA reported a net loss of R$ 71.9 million, impacted mainly by interest expenses related to the end

of the grace period of the long-term project loans and higher leverage at the holding company.

INCOME STATEMENT



Operating Costs (494.8) (312.6) 58.3%

Operating Expenses (36.8) (39.0) -5.7%

Net Financial Result (124.3) (77.8) 59.7%

Equity Income (7.4) (83.5) -91.2%

Other Revenues/Expenses 9.7 (1.0) -1061.8%

Earnings Before Taxes (66.7) (317.9) -79.0%

Taxes Payable and Deferred (3.8) 60.8 -106.3%

Minority Interest (1.4) 6.2 -122.2%

NET INCOME (71.9) (250.9) -71.3%

EBITDA 103.9 (137.6) -175.5%

8. Debt

As of March 31, 2014, consolidated gross debt amounted to R$ 6,098.9 million, a reduction of 2.7% in relation to

the amount recorded on December 31, 2013.

Consolidated debt profile (R$ million)

The balance of short-term debt at the end of March, 2014 was R$ 2,478.1 million, or R$ 70.0 million higher than

the amount recorded on December 31, 2013.

R$ 871.8 million out of the total balance of short-term debt are allocated in the projects (vs. R$ 845.9 million on

December 31, 2014), as follows:

• R$ 290.3 million refer to the current portion of the long-term debts of Itaqui, Pecém II and Parnaíba I;

2,478 41%3,621

59%

Short Term Long Term

2,12835%

3,97065%

Working Capital Project Finance


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• R$ 87.3 million refer to bridge loans to Parnaíba I. The outstanding balance will be paid-off in

installments, which started in October, 2013;

• R$ 494.2 million refer to bridge loans to Parnaíba II.

The remaining balance of short-term debt, amounting to R$ 1,606.3 million, is allocated in the holding company

(vs. R$ 1,562.2 million on December 31, 2013). During 1Q14, ENEVA holding raised additional R$ 80 million to

cover project investment and working capital needs.

In March 2014, following the conclusion of a R$ 250 million capital increase at Parnaíba Gás Natural – PGN, and

the approval by its shareholders for the issuance of R$ 745 million in non-convertible debentures, PGN paid off a

R$ 200 million debt with ENEVA. This debt was contracted in the 4Q13, in light of the early termination triggered

by OGX’s judicial recovery procedure, the Company raised further R$ 200.0 million to pay-off 1/3 of the debt

held by Parnaíba Gás Natural – PGN (formerly OGX Maranhão), thus replacing the banks as a creditor to PGN.

According to the new IFRS standards, Pecém I is no longer included in the consolidated statements. As of March

31, 2014, the gross debt of Pecém I (50%) amounted to R$ 1,048.4 million.

At the end of march, 2014, the average cost of debt stood at 10.20% p.a. and the average maturity at 4.2

years.

Debt Maturity Profile* (R$ million)

*Values include principal + capitalized interest + charges and exclude outstanding convertible debentures.

Net debt in 1Q14 amounted to R$ 6,002.5 million, 1.2% higher than the value reported on December 31, 2013.

Consolidated Cash and Cash Equivalents totaled R$ 96.4 million at the end of March, 2014, a decrease of R$

181.2 million as compared to the balance in December 31, 2013.

96.4871.8

844.3

325.7 282.0

2,168.7

Project Finance

1,606.3Working Capital

Cash & CashEquivalents

2014 2015 2016 2017 From 2018 on


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Consolidated Cash and Cash Equivalents (R$ million)

9. Capital Expenditures (Accounting view)

During 1Q14, ENEVA’s consolidated capital expenditures amounted to 62.0 million. Capitalized interest amounted

to R$ 20.1 million and depreciation & amortization to R$ 46.8 million. An accounting adjustment of R$ 30.8

million was carried out in Parnaíba I due to a recalculation of values resulting from energy sale during

commissioning.

Capital Expenditures (R$ million)

1Q14 4Q13

Capex Interest

Capitalized Depreciation & Amortization

Capex

Interest Capitalized

Depreciation & Amortization

Itaqui 12.8 - -21.4 92.4 13.7 -13.0

Pecém II 12.3 - -11.0 78.0 24.0 -

Parnaíba I -11.4 - -14.4 70.3 6.7 -3.0

Parnaíba II 48.3 20.1 - 139.0 13.7 -

Pecém I registered capital expenditures of R$ 7.4 million (50% of the project). Depreciation & amortization

amounted to R$ 8.9 million (50% of the project).

Installed Generation Capacity and Status of Projects under Construction

ENEVA’s gross installed capacity reached 2,376 MW, as a result of the startup of Parnaíba III’s second generation

unit, with 7MW of installed capacity, on February 18, 2014. Thereby, the installed capacity of this power plant

reached 176MW, complying with the total capacity contracted under the terms of the Regulated Market power

purchase agreement (PPA) secured in the 2008 A-5 energy auction.

277.6

571.9

80.0

156.5 104.8

521.6

350.9

96.4

Cash and CashEquivalents

(4Q13)

Revenues Debt Raised IntercompanyLoan

CAPEX Operating Costsand Expenses

Debt Service Cash and CashEquivalents

(1Q14)


15

Installed

Capacity (MW) ENEVA

Ownership Declaration of

Commercial Operation

Amapari 23 51% June, 2008

Pecém I 720 50% May 10, 2013

Itaqui 360 100% Feb 05, 2013

Parnaíba I 676 70% Apr 12, 2013

Pecém II 365 100% Oct 18, 2013

Parnaíba III 176 52.5% Oct 22, 2013

Parnaíba IV 56 52.5% Dec 12, 2013

Total 2,376

Additionally, ENEVA is currently building a combined cycle gas-fired power plant, Parnaíba II, with 517MW of

installed capacity. Its assembly is underway and the first gas turbine was successfully commissioned in early

March, 2014. COD is expected to 2H14.

Natural Gas E&P in the Parnaíba Basin

Gavião Real Field Development

In 1Q14, natural gas production reached 6.0 million m³/day (~37.8 kboepd) in the Gavião Real field, in order to

supply the Parnaíba I, Parnaíba III and Parnaíba IV thermal power plants, which have a combined capacity of

908 MW.

The total onshore production in 1Q14 amounted to 540.8 million cubic meters of natural gas, of which 70%

attributable to Parnaíba Gas Natural S.A. – PGN. The gas produced was fully processed at PGN’s Gas Treatment

Unit (GTU) and delivered to ENEVA’s power plants.

Since January, 2014, with the connection of two additional wells, located in two different production clusters, the

natural gas production has been performed by a total of 15 production wells.

The equipment that will allow the GTU capacity expansion to 8.0 million m³/day is currently been unloaded at the

Port of Itaqui, Maranhão, and its first batch is in customs clearance process.

Capital Markets

Stock Price Performance

ENEVA’s capital on March 1st, 2014 was constituted by 702,524,469 ordinary shares, of which 38.2% were free

float.

ENEVA’s share price at the end of the first quarter of 2014 was R$1.63, compared to R$3.00 on December 30,

2013, representing a drop of 45.7% in the quarter. In the same period, the Bovespa Index (Ibovespa) decreased


16

2.1% and the Electrical Utilities Sector Index (IEE) dropped 5.4%. In the last 12 months, ENEVA’s shares fell

82.8% and both of the Ibovespa and the IEE 10.5%. The Company’s market capitalization at the end of the

quarter reached R$ 1.1 billion. Average daily traded volume in 1Q14 was R$6.4 million.

Free Float Profile

(as of March 31, 2014)

50,415

R$3.00

R$1.63

24,839

50

60

70

80

90

100

110

120

12/3

0/1

3

01/0

6/1

4

01/1

3/1

4

01/2

0/1

4

01/2

7/1

4

02/0

3/1

4

02/1

0/1

4

02/1

7/1

4

02/2

4/1

4

03/0

3/1

4

03/1

0/1

4

03/1

7/1

4

03/2

4/1

4

03/3

1/1

4

1Q14 Capital Markets Performance12/30/2013 = 100

IBOV ENEV3 IEEX

50,415

R$1.63

R$9.50

24,839

10

30

50

70

90

110

130

03/2

8/1

3

04/1

3/1

3

04/2

9/1

3

05/1

5/1

3

05/3

1/1

3

06/1

6/1

3

07/0

2/1

3

07/1

8/1

3

08/0

3/1

3

08/1

9/1

3

09/0

4/1

3

09/2

0/1

3

10/0

6/1

3

10/2

2/1

3

11/0

7/1

3

11/2

3/1

3

12/0

9/1

3

12/2

5/1

3

01/1

0/1

4

01/2

6/1

4

02/1

1/1

4

02/2

7/1

4

03/1

5/1

4

03/3

1/1

4

12m Capital Markets Performance03/28/2013 = 100

IBOV ENEV3 IEEX

67.3%

32.7%

Brazil International

8.4%

91.6%

Individuals Institutional


17

1Q14 Conference Call

Wednesday, May 14, 2014

11:00 am (Brasilia Time) / 10:00 am (US EST)

Access numbers Brazil

+55 11 3193-1001

+55 11 2820-4001

Access numbers US

+1 786 924-6977

Password: ENEVA

Webcast in English: www.ccall.com.br/eneva/1q14.htm Webcast in Portuguese: www.ccall.com.br/eneva/1t14.htm

ENEVA Contacts Investor Relations:

Flavia Heller

Rodrigo Vilela

+55 21 3721-3030

[email protected]

ir.eneva.com.br

Press:

Carla Assemany +55 21 3721-3359 / +55 21 99953-7255


18

ANNEX

I. Balance Sheet – Assets (Holding and Consolidated)

Holding Consolidated

(R$ thousands) Mar-14 Dec-13 Mar-14 Dec-13

Current Assets 49,301 141,242 639,157 747,842

Cash and Cash Equivalents 19,694 110,156 96,801 277,583

Accounts Receivable 29,568 26,878 406,437 347,048

Gain on Derivatives - 4,171 - 4,171

Subsidies CCC - - 46,935 30,802

Inventories - - 78,345 78,376

Escrow Accounts 39 38 39 38

Prepaid Expenses - - 10,601 9,825

Non-current Assets - - - -

Long-term Asset 1,276,932 1,464,405 854,497 966,682

Accounts Receivable - Related Parties

1,126,587 1,256,884 406,126 542,634

AFAC 136,295 206,678 185 150

Escrow Accounts - - 128,672 118,606

Deferred Taxes (IR/CSLL) - - 304,077 302,327

Prepaid Expenses - R&D 14,050 843 15,438 2,965

Fixed Assets 3,273,779 3,146,339 8,004,001 7,974,688

Equity Interest 3,258,396 3,130,978 957,331 941,853

Property, Plant and Equipment 12,773 12,634 6,836,644 6,819,454

Intangible Assets 2,610 2,727 210,026 213,381

Deferred Assets - - - -

TOTAL ASSETS 4,600,013 4,751,986 9,497,656 9,689,212


19

II. Balance Sheet – Liabilities (Holding and Consolidated)


(R$ thousand) Mar-14 Dec-13 Mar-14 Dec-13

Current Liabilities 1,626,396 1,580,010 3,052,426 2,978,859

Accounts Payable 5,312 3,473 338,185 331,216

Personnel 9,006 8,424 18,267 16,770

Charges on Debts 48,845 15,721 142,195 85,300

Taxes Payable 575 709 37,507 45,934

Short Term Debt 1,557,407 1,546,490 2,335,901 2,322,842

Losses on Derivatives - - - -

Other 5,250 5,193 180,371 176,796

Non-current Liabilities - - - -

Long term Liabilities 572,132 703,232 3,933,603 4,136,479

Accounts Payable - - - -

Deferred Taxes (IR/CSLL) 1,712 - (53,116) (51,384)

Long-Term Debt 520,520 655,417 3,673,883 3,853,762

Intercompany Loan 36,700 34,489 286,704 307,720

Provision for Losses 7,843 8,087 8,331 11,551

Others 5,356 5,239 17,800 14,830

Minority Interests - - 125,003 123,633

Shareholder's Equity 2,401,485 2,468,744 2,386,624 2,450,242

Common Stock 4,532,314 4,532,314 4,532,314 4,532,314

Capital Reserve - - - -

Reserve Valuation Adjustments (42,886) (44,046) (42,886) (44,046)

Profit Reserve 354,025 350,514 354,025 350,514

Advance for Future Capital Increase - AFAC

- - - -

Translation Adjustments (9,238) (9,238) (9,238) (9,238)

Accumulated Profit or Losses (2,360,800) (1,418,345) (2,375,661) (1,436,848)

Net Earnings (71,931) (942,455) (71,931) (942,455)

TOTAL LIABILITIES 4,600,013 4,751,986 9,497,656 9,689,212


20

III. Income Statement (Holding and Consolidated)


(R$ thousand) 1Q14 1Q13 1Q14 1Q13

Gross Operating Revenues - -

656,588 217,568

Energy Supply - -

656,588 217,568

Energy Commercialization - -

- -

Deductions from Gross Revenue - -

(69,816) (21,470)

Net Operating Revenues - -

586,771 196,098

Operating Costs - -

(494,779) (312,609)

Personnel - -

(13,021) (5,313)

Material - -

(3,813) (1,010)

Fuel - -

(227,875) (90,207)

Outsourced Services - -

(35,914) (3,707)

Depreciation and Amortization - -

(47,942) (17,257)

Leases and Rentals - -

(98,454) (15,440)

CCC Subsidy - -

15,286 12,970

Energy Acquired for Resale - -

(26,995) (172,766)

Other costs - -

(56,051) (19,879)

Operating Expenses (28,324) (23,712)

(36,791) (39,029)

Personnel (13,287) (11,121)

(15,292) (20,297)

Material (67) (44)

(161) (271)

Outsourced Services (11,925) (9,796)

(17,358) (14,062)

Depreciation and Amortization (525) (453)

(768) (638)

Leases and Rentals (1,348) (1,080)

(1,528) (1,677)

Other Expenses (1,172) (1,216)

(1,684) (2,083)

EBITDA (27,799) (23,258)

103,912 (137,645)

Net Financial Income

(30,342) (30,508)

(124,293) (77,827)

Other Revenues/ Expenses

21,741 (1,026)

9,725 (1,011)

Equity Income

(35,006) (195,656)

(7,361) (83,490)

Earnings Before Taxes

(71,931) (250,901)

(66,728) (317,868)

CSLL/IR

- -

(2,733) -

Deferred Taxes Provision (IR/CSLL)

- -

(1,103) 60,807

Minority Interest

- -

(1,365) 6,160

NET INCOME (71,931) (250,901)

(71,931) (250,901)


21

IV. Project Balance Sheet – Assets (Consolidated Projects)

Itaqui Pecém II Amapari Parnaíba I Parnaíba II

(R$ thousands) Mar-14 Dec-13 Mar-14 Dec-13 Mar-14 Dec-13 Mar-14 Dec-13 Mar-14 Dec-13

Current Assets 139,623 153,100 151,812 170,228 69,527 62,105 204,652 158,288 23,900 62,301

Cash and Cash Equivalents 19,619 27,310 12,896 40,010 4,318 9,791 33,670 32,034 6,283 57,725

Accounts Receivable 89,118 91,775 104,675 98,935 10,263 10,082 162,206 117,932 10,585 1,426

Gain on Derivatives - - - - - - - - - -

Subsidies CCC - - - - 46,935 30,802 - - - -

Inventories 28,659 31,467 34,241 31,269 7,923 11,306 7,072 4,236 449 97

Escrow Accounts - - - - - - - - - -

Prepaid Expenses 2,226 2,547 - 14 88 123 1,703 4,086 6,583 3,053

Non-current Assets - - - - - - - - - -

Long-term Asset 277,499 261,893 106,934 108,323 1,397 1,852 58,972 50,733 24,868 24,130

Accounts Receivable - Related Parties 18,655 4,361 63 2,219 0 - 1,881 2,426 14,992 14,927

AFAC - - - - - - - - - -

Escrow Accounts 66,717 64,811 20,092 19,682 - 68 41,864 34,044 - -

Deferred Taxes (IR/CSLL) 192,127 192,127 86,065 85,708 1,196 1,783 14,813 14,006 9,876 8,703

Prepaid Expenses - R&D - 594 715 715 201 - 414 257 - 499

Fixed Assets 2,654,307 2,662,831 1,922,057 1,920,761 65,308 67,353 1,188,175 1,213,998 1,188,060 1,139,811

Equity Interest - - - - - - - - - -

Property, Plant and Equipment 2,642,586 2,651,061 1,921,738 1,920,423 62,818 64,481 1,012,319 1,035,111 1,182,849 1,134,599

Intangible Assets 11,012 11,062 319 338 144 153 175,856 178,887 5,212 5,212

Deferred Assets 708 708 - - 2,347 2,719 - - - -

TOTAL ASSETS 3,071,429 3,077,823 2,180,803 2,199,312 136,232 131,310 1,451,799 1,423,019 1,236,829 1,226,242


22

V. Project Balance Sheet – Liabilities (Consolidated Projects)


(R$ thousand) Mar-14 Dec-13 Mar-14 Dec-13 Mar-14 Dec-13 Mar-14 Dec-13 Mar-14 Dec-13

Current Liabilities 291,631 285,496 210,936 221,660 37,274 31,608 275,187 265,826 611,082 594,757

Accounts Payable 130,060 126,245 31,314 28,856 32,032 29,541 79,482 85,787 60,119 57,855

Personnel 3,288 2,964 906 874 445 469 2,152 1,721 2,447 2,304

Charges on Debts 12,453 9,228 49,381 47,823 - - 17,327 12,095 14,188 433

Taxes Payable 9,547 14,357 10,455 14,632 3,155 72 7,811 9,431 5,950 6,717

Short Term Debt 90,968 90,451 69,452 68,333 - - 138,073 137,568 480,000 480,000

Losses on Derivatives - - - - - - - - - -

Other 45,315 42,251 49,428 61,140 1,642 1,526 30,342 19,223 48,378 47,447

Non-current Liabilities - - - - - - - - - -

Long term Liabilities 1,688,687 1,724,724 1,339,437 1,346,518 337 52 764,520 768,997 299,869 303,322

Accounts Payable - - - - - - - - - -

Deferred Taxes (IR/CSLL) (14,919) (15,178) (11,535) (9,863) - - (27,484) (22,947) (891) (3,397)

Long-Term Debt 1,194,925 1,213,510 1,011,111 1,023,600 - - 663,718 680,534 283,610 280,700

Intercompany Loan 508,681 526,391 334,187 327,158 52 52 121,531 107,223 17,151 26,019

Provision for Losses - - 2,317 2,266 - - - - - -

Others - - 3,357 3,357 285 - 6,755 4,187 - -

Minority Interests - - - - - - - - - -

Shareholder's Equity 1,091,111 1,067,603 630,430 631,134 98,621 99,649 412,092 388,195 325,877 328,163

Common Stock 1,598,360 1,458,660 799,181 799,181 84,761 84,761 263,619 263,619 345,716 345,716

Capital Reserve - - - - 6,529 6,529 - - - -

Reserve Valuation Adjustments - - - - - - - - - -

Profit Reserve - - - - 11,978 11,978 - - - -

Advance for Future Capital Increase - AFAC - 87,700 - - - - 159,071 141,571 - -

Translation Adjustments - - - - - - - - - -

Accumulated Profit or Losses (478,757) (228,021) (168,047) (121,716) (3,619) - (16,995) (17,146) (17,553) (747)

Net Earnings (28,492) (250,736) (705) (46,331) (1,028) (3,619) 6,397 152 (2,285) (16,806)

TOTAL LIABILITIES 3,071,429 3,077,823 2,180,803 2,199,312 136,232 131,310 1,451,799 1,423,019 1,236,829 1,226,242


23

VI. Project Income Statement (Consolidated Projects)


(R$ thousand) 1Q14 1Q13 1Q14 1Q13 1Q14 1Q13 1Q14 1Q13 1Q14 1Q13

Gross Operating Revenues 176,681 143,657 164,482 - 16,882 10,469 298,346 63,442 196 -

Energy Supply 176,681 143,657 164,482 - 16,882 10,469 298,346 63,442 196 -

Energy Commercialization - - - - - - - - - -

Deductions from Gross Revenue (17,598) (13,962) (17,353) - (4,604) (1,063) (30,243) (6,444) (18) -

Net Operating Revenues 159,083 129,695 147,129 - 12,278 9,406 268,103 56,998 178 -

Operating Costs (142,267) (234,271) (110,355) (8,562) (5,469) (10,103) (236,226) (61,750) (287) 0

Personnel (5,955) (2,512) (1,201) - (990) (1,276) (4,873) (1,525) (0) -

Material (2,386) (601) (686) - (159) (322) (582) (88) (0) -

Fuel (62,724) (44,538) (62,752) - (17,436) (19,028) (84,963) (26,641) - -

Outsourced Services (13,745) (2,039) (9,619) - (862) (907) (11,670) (2,992) 0 0

Depreciation and Amortization (21,262) (12,931) (10,941) (9) (1,409) (1,406) (14,324) (2,911) (6) -

Leases and Rentals (867) (685) (748) - (55) (46) (96,639) (14,570) - -

CCC Subsidy - - - - 15,286 12,970 - - - -

Energy Acquired for Resale (23,088) (165,354) (2,787) - - - (839) (7,413) (281) -

Other costs (12,241) (5,610) (21,621) (8,553) 156 (88) (22,336) (5,610) 0 -

Operating Expenses (2,106) (3,746) (1,469) (2,202) (364) (401) (1,439) (4,126) (3,016) (2,484)

Personnel (337) (1,584) (328) (557) (105) (184) (11) (1,951) (1,151) (2,269)

Material (3) (68) (1) (21) (5) (3) (52) (136) (33) -

Outsourced Services (1,597) (1,564) (1,032) (1,291) (118) (196) (1,048) (1,313) (1,637) (175)

Depreciation and Amortization (104) (98) (36) (21) (7) (7) (73) (53) (23) (6)

Leases and Rentals (1) (162) (57) (144) (15) (6) (32) (267) (75) (18)

Other Expenses (62) (271) (15) (167) (114) (6) (223) (406) (97) (15)

EBITDA 36,077 (95,292) 46,282 (10,734) 7,862 314 44,834 (5,914) (3,096) (2,477)

Net Financial Income (38,251) (24,582) (35,310) (2,630) 153 100 (20,217) (20,198) (332) (3)

Other Revenues/ Expenses (4,951) (52) (1,056) - (5,538) - (546) - - -

Equity Income - - - - - - - - - -

Earnings Before Taxes (28,492) (132,956) (1,062) (13,394) 1,060 (999) 9,675 (29,075) (3,458) (2,486)

CSLL/IR - - - - (1,216) - (1,517) - - -

Deferred Taxes Provision (IR/CSLL) - 45,187 357 4,547 (872) 338 (1,761) 9,884 1,172 850

Minority Interest - - - - - - - - - -

NET INCOME (28,492) (87,769) (705) (8,847) (1,028) (661) 6,397 (19,191) (2,285) (1,636)


24

VII. Project Balance Sheet – Assets (Projects accounted as Equity Income)

ENEVA Part. Holding ENEVA Part. Consolidated Pecém I Parnaíba III Parnaíba IV

(R$ thousands) Mar-14 Dec-13 Mar-14 Dec-13 Mar-14 Dec-13 Mar-14 Dec-13 Mar-14 Dec-13

Current Assets 1,099 9,564 108,981 224,047 301,555 290,867 88,294 162,075 28,185 29,035

Cash and Cash Equivalents 513 9,033 17,642 67,915 38,424 45,961 14,016 62,796 13,655 5,074

Accounts Receivable 586 532 91,329 151,634 190,266 153,169 73,804 96,338 10,795 20,754

Gain on Derivatives - - - 2,245 - - 135 1,380 3,540 3,105

Subsidies CCC - - - - - - - - - -

Inventories - - 2 4 72,567 91,438 - - 162 3

Escrow Accounts - - - 146 298 298 - 292 - -

Prepaid Expenses - - 7 2,104 - - 338 1,269 33 99

Non-current Assets - - - - - - - - - -

Long-term Asset 33,921 32,149 146,120 209,487 494,056 479,904 72,210 10,539 27,979 82

Accounts Receivable - Related Parties 33,821 32,009 145,311 203,506 1,273 2,502 62,305 249 27,971 74

AFAC 100 140 35 - - - - - - -

Escrow Accounts - - - (0) 56,865 55,767 - - - -

Deferred Taxes (IR/CSLL) - - 774 5,981 435,918 421,636 9,906 10,290 8 8

Prepaid Expenses - R&D - - - - - - - - - -

Fixed Assets 275,289 270,469 196,525 282,752 3,420,511 3,426,733 172,229 156,197 152,026 118,278

Equity Interest 244,565 240,510 152,693 - - - - - - -

Property, Plant and Equipment 6,047 5,287 18,718 214,112 3,418,831 3,425,065 172,229 156,197 152,026 118,278

Intangible Assets 24,676 24,672 25,114 68,640 1,429 1,417 - - - -

Deferred Assets - - - (0) 251 251 - - - -

TOTAL ASSETS 310,310 312,182 451,626 716,286 4,216,122 4,197,504 332,733 328,810 208,189 147,395


25

VIII. Project Balance Sheet – Liabilities (Projects accounted as Equity Income)


(R$ thousand) Mar-14 Dec-13 Mar-14 Dec-13 Mar-14 Dec-13 Mar-14 Dec-13 Mar-14 Dec-13

Current Liabilities 11,926 12,862 138,396 335,350 602,470 548,838 148,808 149,709 19,940 83,602

Accounts Payable 815 1,083 124,568 199,583 135,456 111,952 16,705 28,253 16,911 7,888

Personnel 3,342 3,611 4,140 4,484 4,612 3,629 - - 85 129

Charges on Debts - - - 2,884 8,303 2,803 2,007 636 - 5,131

Taxes Payable 255 654 1,739 13,021 19,497 39,446 2,401 39 2,641 437

Short Term Debt - - - 106,019 163,783 165,377 120,000 120,000 - 70,000

Losses on Derivatives - - - - 22,352 5,560 - - - -

Other 7,514 7,514 7,950 9,359 248,468 220,072 7,694 782 303 17

Non-current Liabilities - - - - - - - - - -

Long term Liabilities 34,375 30,764 60,125 86,344 2,480,645 2,487,934 37,757 39,060 163,074 44,279

Accounts Payable - - - - - - - - - -

Deferred Taxes (IR/CSLL) - - - - (24,883) (26,068) - - - -

Long-Term Debt - - - 5,480 1,949,507 2,000,817 - - - -

Intercompany Loan 23,906 20,315 45,392 67,561 473,793 449,330 36,404 38,591 161,788 43,223

Provision for Losses 10,469 10,448 14,733 6,952 82,228 63,855 - - - -

Others - - - 6,351 - - 1,353 469 1,286 1,056

Minority Interests - - - 36,941 - - - - - -

Shareholder's Equity 264,009 268,556 253,105 257,652 1,133,006 1,160,732 146,168 140,040 25,176 19,514

Common Stock 266,758 266,758 266,758 266,758 1,886,872 1,886,872 160,271 160,271 15,936 15,936

Capital Reserve 62,000 62,000 62,000 62,000 - - - - - -

Reserve Valuation Adjustments - - - 0 (85,772) (88,091) - - - -

Profit Reserve - - - - 71,312 71,312 - - - -

Advance for Future Capital Increase - AFAC

- - - - - - - - - -

Translation Adjustments 34 34 34 34 - - - - - -

Accumulated Profit or Losses (60,237) (33,674) (71,141) (44,578) (709,361) (427,019) (20,230) (1,166) 3,578 13

Net Earnings (4,546) (26,563) (4,546) (26,563) (30,045) (282,342) 6,127 (19,065) 5,662 3,565

TOTAL LIABILITIES 310,310 312,182 451,626 716,286 4,216,122 4,197,504 332,733 328,810 208,189 147,395


26

IX. Project Income Statement (Projects accounted as Equity Income)


(R$ thousand) 1Q14 1Q13 1Q14 1Q13 1Q14 1Q13 1Q14 1Q13 1Q14 1Q13

Gross Operating Revenues - - 164,142 439,974 318,631 232,277 85,052 40,001 36,564 -

Energy Supply - - 201 121 318,631 232,277 74,809 40,001 32,462 -

Energy Commercialization - - 163,941 439,853 - - 10,243 - 4,102 -

Deductions from Gross Revenue - - (14,879) (40,493) (34,921) (24,738) (8,514) (3,700) (3,668) -

Net Operating Revenues - - 149,263 399,481 283,710 207,539 76,538 36,301 32,896 -

Operating Costs (69) 1 (147,841) (394,091) (265,736) (363,075) (63,418) (67,120) (23,117) (5)

Personnel - - (685) (590) (8,743) (2,130) - - - -

Material - - (1) (0) (6,180) (601) - - (301) -

Fuel - - - - (93,426) (56,059) (19,066) - (6,806) -

Outsourced Services (5) 0 (52) (73) (19,105) (1,757) (3,581) - (2,058) -

Depreciation and Amortization - - (102) (90) (35,517) (15,968) (1,539) - (1,236) -

Leases and Rentals - - (61) (716) (1,340) (185) (29,062) - (0) -

CCC Subsidy - - - - 12,999 - - - - -

Energy Acquired for Resale - - (145,921) (392,492) (56,986) (209,401) (2,430) (67,120) (12,702) -

Other costs (64) 0 (1,018) (129) (57,438) (76,973) (7,740) - (14) (5)

Operating Expenses (8,924) (11,919) (9,870) (13,710) (4,719) (3,907) (287) (76) (702) (154)

Personnel (6,022) (8,894) (6,653) (9,552) (2,262) (1,481) - - (417) (70)

Material (1) (23) (1) (46) (19) (37) (2) - (2) (7)

Outsourced Services (2,055) (1,721) (2,242) (2,551) (1,659) (1,791) (250) (6) (186) (37)

Depreciation and Amortization (21) (2) (29) (60) (38) (39) - - (1) -

Leases and Rentals (576) (909) (595) (1,008) (64) (34) - - (46) (39)

Other Expenses (250) (370) (351) (492) (678) (525) (36) (71) (49) (2)

EBITDA (8,972) (11,916) (8,318) (8,169) 48,809 (143,436) 14,371 (30,896) 10,314 (158)

Net Financial Income 552 1,229 2,178 252 (58,776) (28,715) (2,750) (756) (1,216) (2,557)

Other Revenues/ Expenses (25) (986) (1,621) 408 - - (808) - (892) -

Equity Income 3,920 62 3,732 (1,947) - - - - - -

Earnings Before Taxes (4,546) (11,614) (4,159) (9,608) (45,522) (188,158) 9,275 (31,652) 6,969 (2,715)

CSLL/IR - - (386) (1,979) - 59,790 (1,878) - (1,077) -

Deferred Taxes Provision (IR/CSLL) - - (1) (27) 15,477 4,183 (1,269) 10,762 (230) -

Minority Interest - - - - - - - - - -

NET INCOME (4,546) (11,614) (4,546) (11,614) (30,045) (124,185) 6,127 (20,890) 5,662 (2,715)


27

X. Parnaíba Gás Natural - Balance Sheet

Balance Sheet (Non audited) Parnaíba Gás Natural

(R$ thousand) mar-14 dec-13

Current Assets 437,071 258,196

Cash and Cash Equivalents 243,612 5,006

Accounts Receivable from third parties 116,074 112,487

Accounts Receivable - Intercompany 25,143 14,388

Taxes Recoverable - 7,150

Gain on Derivatives - -

Inventories - Oil 75 73

Other 52,167 119,092

Non-current Assets 1,117,173 1,100,395

Recoverable Taxes and Contributions 9,752 -

Materials Inventories 35,284 39,791

Deferred Taxes (IR/CSLL) 109,370 112,495

Deferred Taxes (IR/CSLL) - Retained Earnings 4,626 4,572

Receivables from related parties 2,785 -

Property, Plant and Equipment 942,592 930,723

Intangible Assets 12,764 12,814

Total Assets 1,554,244 1,358,591

Current Liabilities 399,005 1,134,315

Accounts Payable 222,874 292,767

Taxes Payable 32,417 17,936

Personnel 7,755 4,043

Accounts Payable to Related Parties 130,325 183,922

Others 5,634 7,060

Short Term Debt - 420,085

Short Term Debt - Intercompany - 208,502

Non-current Liabilities 714,386 68,572

Long-Term Debt 658,714 -

Deferred Taxes (IR/CSLL) - -

Accounts Payable Intercompany - OGX P&G - -

Provision for Losses 55,672 68,572

Shareholder's Equity 440,853 155,704

Common Stock 618,593 368,593

Retained Earnings (177,740) (212,889)

Total Liabilities 1,554,244 1,358,591

Documents

Earnings Release 1Q14