On Friday (5), Wilson Ferreira Jr., current president of Vibra, was again elected CEO of Eletrobras (ELET6) by the new board of directors. The executive had presided over the company between 2016 and 2021, when it was still controlled by the federal government.
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The expectation is that Ferreira Jr. stay at Vibra until mid-September, while the company transitions from command to the new president, who has not yet been defined.
The CEO returns to Eletrobras seeing space to promote important modernization, innovation and digitalization movements, such as he saw in Vibra. In this way, he took advantage of the appointment to declare his perception that Eletrobras has the potential to become one of the largest renewable energy companies in the world, and for that, it should resume its look at the company’s growth and its strategic planning with a horizon until 2035 .
To achieve this ambitious goal, the company will need to reinvest heavily. Ferreira Jr. evaluates that the company’s investment capacity should grow exponentially after privatization, and already talks about investments in the order of R$ 15 billion per year – triple the amount invested in 2021.
Over the last few decades, Eletrobras has lost a significant share of the Brazilian electricity market to new entrants, both public and private. With no capacity to invest in the expansion of its business, the company saw competition occupy strategic spaces, but managed to maintain its position as the largest electric company in Brazil.
Now, the market expects the executive to resume long-term plans, this time without the strong concern with the high degree of indebtedness, a factor that marked part of the CEO’s first time at the helm of the company.
However, first of all, it is important to analyze how the new advice and the CEO will deal with the challenges that the company will have to face in the short term, especially with regard to the possible benefits of privatization.
Eletrobras class B preferred shares closed up 0.80% on Monday (8), quoted at R$ 50.58.