By Brazil Stock Guide – Shares of Light S.A. (LIGT3 BZ), the Rio de Janeiro–based power utility, fell 12.86% to close at R$6.10 on Friday, August 15, after the company reported second-quarter results.
Light posted a net loss of R$51.4 million in the period from April to June, almost unchanged from the R$51.6 million loss recorded a year earlier. Revenue dropped 7.1% year-on-year, totaling R$3.45 billion.
UBS BB analysts Giuliano Ajeje and Henrique Simões said the results came in far below expectations. Adjusted EBITDA reached R$329 million, which was 45% under the market consensus. They noted that lower billing volumes, influenced by milder weather, added pressure on performance. The analysts also pointed out that the company’s recovery depends heavily on the terms of its distribution concession renewal, which remains uncertain.
Trading activity underscored investor caution. Turnover for Light shares reached only R$19 million on Friday, less than half of the R$39.1 million registered in the previous session.