Good morning to everyone. Welcome to the Presentation of Results of the 3rd quarter 2020. My name is Carlos Sedino. I'm the Director for Investor Relationships of the group. And today, I will be the emcee for our event.
Today, we have Gustavo Estrella, President of CPFL Energy Mr. Pan, Director, Vice President, Finance and Investor Relations and other executives of the company. I reinforce that due to the pandemic, we are still connected from our residences. So we apologize if there's any failure in any connection and reinforce that we'll work to reestablish communication as soon as possible. All the presentations will be done in Portuguese, and we have simultaneous translation for English.
For this, all you have to do is click on the interpretation button that shows up on the bottom part of the platform. If you want to see the presentations in English, you can also find this on the website of RI. I'd also like to inform all the participants that after the presentation of the company, we will begin our session of questions and answers. All the questions will be done live. And to ask to do that, all you have to click on the button, raise hands, which is also at the bottom of the screen.
Please remember that this event is being recorded. I'm now going to give the floor to Gustavo Estrella to begin the presentation of the results. Thank you very much. Good morning to everyone. We're beginning then the presentation of the results of the Q3 2020.
Going to the next slide where we have the highlights. Here for our quarter, it was it has positive results. We clearly can see that we've had a recovery for the market. So we start here with a load growth of 1.6% in the concession area. We're going to demonstrate details a bit further forward.
Part of this comes from residential consumption. It's clearly an uptake in the consumption and also an effect a positive effect of temperature. The EBITDA, BRL 1,954,000, a growth of 20.8% in relation to the Q3 of 2019. The net profit, BRL 1,352, an increase of 80% in relation to 2,009. We recognize the fiscal credits and we'll talk about this further forward.
Our net debt, BRL 13,300,000,000 and this is a leverage of BRL 1.93,000,000,000, very comfortable. And it will be impacted by the payment of dividends up to the end of this year. But in general, it's a leverage of about 2 times very comfortable and very much below what we expect. There's also a movement here of change of debts, prepayment of our debts, especially in CPFL Renewables. This is something that we had forecasted.
We concluded this process now in the month of August, A total of EUR 3,000,000,000 debts prepaid and renegotiated with an important reduction in our average cost of financing. So we have this process which concluded in August and the benefits in the totality will take place after the Q4. We also have an important quarter in relation to the program of investments of the company, an investment of EUR 770,000,000, a growth of 25% in relation to 2019. Our expectation is to deliver the investment for 2020 in spite of the pandemic. We delayed the execution of the investments at the beginning, but the expectation is that we will be able to deliver.
We also had an important process in CPFL Piratinga, which was the readjustment of the tariffs, an ordinary adjustment with an impact of tariffs for the consumer, 9.82 percent and a reflex on installment B, 17.02%, especially a higher IGPM in the last two months. We also have resources for the COVID account. The total value is BRL 1,280,000. We also have a value of BRL 100,000,000 left over, but part of the COVID account has already been used, also helping in the liquidity of the company, and it reduces the tariff impacts in our distributors short term. We also now on the 30th of September, we have the integration plan of CPFL Renewables.
It's also a promise. And we did this restructuring between generation and renewables, and this has been concluded now on the 30th September. We also publicized an extremely important plan. It's our strategic sustainability plan for 2022, 2024 linked to the ESG. It's a plan that's very complete and detailed where we define all the actions and the goals of the CPFL Group related to the SG term the period from 2020 to 2024.
We've also publicized this to the market in detail for this period. Part of the plan is also the hospital CPFL program. We see some challenges here to execute this program because we are talking about energetic efficiency in public hospitals and of course in pandemic periods it's always a higher or a bigger challenge. But we were able to invest over BRL 50,500,000. We reached 48 hospitals, BRL150 1,000,000 and 200 hospitals in our concession areas.
So it is a program that's going very well. Now let's go to the next slide. Here we have the sales of energy in the 3rd quarter. As I said, this is a recovery sign. We can see that the load on the concession has gone up 16.4%.
The sales went up 0.4%. And when we look at the right side, we can see that this growth comes led by residential consumption, a growth of 8.8%. As I said, we have here a temperature effect, average temperatures that are higher than last year. And here, clearly, this is a sign that the consumption is taking on again in the residential. The industrial, even though general.
We can notice this in the slums, migration of those people who have left our market and have gone to the basic network. So this is movement of increase and decrease. But if you put it on the same base, the increase of the residential would be 1.3% and not 3%. So it's a sign of recovery that we compare especially with the Q2 of 2020. When we look at the left hand side at the bottom of the slide here, we see the main performance of the segments of consumption.
So we can see some sectors of different activities showing a positive consumption. The food industry, which is very important in the industry with a growth of over 11% and rubber and plastic, 2 percent chemistry and vehicles, which had a decrease of 17%. If we compare the decrease that we had in the 2nd semester 2020, this decrease was 42%. So even in the negative field, we can see in the vehicle field or segment a recovery in the consumption of energy. When we look at the commercial area, the retail consumers, a lot of places still closed and the wholesale was 3%, the telecom positive 4.7% and health services 4 point 5%.
So in general, what we notice with a positive effect of temperature, what we can see is a recovery, which gives us a positive perspective for the next months. Let's go to the next slide. Here, we can see the accumulated for 9 months. So the data is worse than the third quarter. So you can see a ramp of recovery of the consumption went up 8.8.
We accumulated the industry with 7.5% and commerce with 9.5%. So I think this gives us a sign of the trend of recovery of our market in the more recent months. Let's move on to the next slide. Another topic, which is very important and during this year of 2020 is default and losses. We can see here the default.
We go back to the levels pre crisis. I think this is a very important number for the company. It's a sign of recovery of default. Here in the Q3, we have some effects, some renegotiations that were carried out. But even with this renegotiation, we would reach a percentage of about 0.7, a little bit lower in the Q3 of 2019 levels pre crisis where we start to notice retake of the precreases levels of default.
So it's not a coincidence, but in this quarter, we have billing actions again. And here, we are doing this as of August when we close this in about we go from a level from October on of 236 cuts per month. So the expectation is that we will be able to control our defaults in the 4th quarter losses. We have some difference here, the billing calendar, so the base of preparation. So in general, when we carry out a calendar adjustment, we have stability in the loss percentages when we compare to 2019.
I think this is also good news given the pandemic period that we're going through. We've also intensified the fight against the losses. We're recovering energy with 177,000 inspections and also the installation of telemetry for the urban clients. Now let's go to our next slide. With the performance of generation, we have here a drop in the 3rd quarter.
And this trend here has reverted already in the 4th quarter with a big increase of the PLD, but in the comparison, a decrease of the PLD in relation to 2019, also an increase or an improvement of the GSF in the Q3 2020 in relation to 2019, an improvement of 21.3%. An improvement, a large improvement here in the flow, hydraulic, the large ones with a growth of 88%. With the rainfalls in the 3rd quarter, we know that this has already reverted in the 4th quarter and the PCH, especially in the state of Minas Gerais, with a growth of 20 7.3%. Wind generation, I think we have good news here. The first one in relation to the performance of the wind, we can notice an increase in the generation in wind farms.
You can see 1.3, 1.4. You can see the performance better than 2019. We're getting close to the P50 with 95% performance and also the availability. So we have an important increase of availability of our engines reaching in this quarter of 2020 97%, a growth of 2.2%, which impacts our capacity of generation. Combined, this gives us an interesting moment.
Now let's go to the next slide. And I'm going to give the floor to Mr. Pan for him to talk a bit about the results of the 3rd quarter. Thank you, Gustavo. Good morning to everyone.
The EBITDA has been of almost EUR 2,000,000, an increase of 21%. The Distribution segment has had gone back to have a good result with an increase of 26.7 percent, showing a certain recovery after the most difficult period of the pandemic. The gain of the market and the tariff was of BRL140,000,000 highlighting the performance of the residential class, which was benefited by the effects of the pandemic with social isolation and working from home office and also by the high temperatures. In the sequence, the financial assets of the concession had an increase of BRL 58,000,000 due to the higher IPCA. Last year, the IPCA was 0.31 percent.
And in the Q3 of 2020 was 0.86%. We also had an important reduction in the PMSO, €39,000,000 and the PDD, the reduction of But also, it is a response, a very effective response to the cuts much higher than our expectations. As a negative impact, we have the effect of the tariff revision of the CFFL for Piratinga, which generated a benefit of EUR 42,000,000 last year. This was something extraordinary. The other variations added EUR 5,000,000.
The trading, service and others, these segments, they remained stable. Lower margins in trading were compensated by the good performance of CPFL Services and CPFL Efficiency. In the next slide, we have an alteration from the conventional generation, which had an EBITDA 3.2% higher. The main effect were the lowest costs with GSF. Besides the drop of the PLD, the GSF was also better than last year.
As Gustavo has already showed us, the readjustment of the price of the contracts was compensated by other factors. In CPFL Renewable, the EBITDA went up 26.3%. The main effect was a higher wind generation with BRL 31,000,000. Other effects other positive effects were the GSF BRL 26,000,000 and the inflation the passover inflation, the contracts 26,000,000 as well. The PMSO also generated a gain of BRL 18,000,000.
A good part as a result of the synergy obtained were the integration of the company to the CPFL Energy Group. In the Slide 11, we show the performance of the net profit, which was of BRL 1,400,000,000 in the period, a hike of 80.8% in relation to the Q3 of last year. Besides the variation of the EBITDA, we had the financial result, a decrease of EUR 60,000,000. The In the financial results, we have to highlight some effects. The first one is the MTN.
After the gain of over BRL 250,000,000 in the Q1 of 2020, it starts to give back part of that result with the improvement of the spreads, the risk spreads in the market. The second effect has to do to the extraordinary revenue that we had last year when the resources of the REITO were in the cash of energy CPFL Energy. Besides this, the update of the liabilities and assets, the sectorial financial assets, they had a reduction of EUR 20,000,000. On the other hand, the expenses with the net debt had a reduction of BRL 99,000,000, explained in part by the drop of the interest rate, the Selic and part the plan from the liability management. The other items all added up had were worse in EUR 16,000,000.
As for taxes, in this quarter, we had an extraordinary effect in the value of EUR 2 71,000,000 referring to the recognition of fiscal credits, which is a result of the fusion of generation assets, which improved the yield of the group. In the next slide, we show the results accumulated results up to September of 2020. The variation of the EBITDA was positive again in this comparison with a hike of 4.4 percent or EUR205 1,000,000. We highlight here the distribution that grew almost 5%, favored by the good performance in the market and tariffs were the highlight to the performance of the residential class. The reduction of the PMSO is also a positive highlight in this segment.
Another highlight is the renewable generation with a hike of 10.1% equal to BRL 83,000,000. This is the result of a higher availability and the contract readjustment. Even though wind is still a little bit lower than the accumulated in last year. Now the net profit increased 43.7 percent or BRL 826 million. This result was very much favored by the lower CDI and the drop in the cost of the debt, which zeroed the gain of EUR 321,000,000.
Besides, a positive effect of MTM with EUR 198,000,000. Up to now, we have a gain of BRL420,000,000 in the financial results if we compare to the last year. We also have a positive effect in taxes due to the extraordinary gain accounted for in the Q3 due to the reasons that I've already mentioned. In Slide 13, you will notice we have the CapEx. In this period, we carried out an investment of BRL 770,000,000, an increase of 25% in relation to the same period last year.
In division per segment, we had, in distribution, a total investment of BRL 601,000,000 to improve, modernize and maintain the electrical system. For Generation and Transmission, we had BRL 98,000,000 for Renewables, giving continuity to the projects of Gamelera and Cherubim, BRL 54,000,000 for transmission for the projects Maracanao, Sol 1 and Sol 2 and EUR 1,000,000 for conventional generation. Finally, for the segment of service, we destined EUR 16,000,000. Now let's move to the next slide. We have here the indebtedness of the company.
The first chart shows the net debt BRL 13,300,000,000. The EBITDA of the last 12 months reached EUR 6,900,000,000. The leverage measured by the net debt and the EBITDA was 1.93 times in the chart. Beside this, we have the cost of the debt during the last years, real and nominal. The drop in the Q3 is due to the lower costs of the debt according to our liability management plan, where we finalize the prepayment of the loans of the BMDS and also the drop on the interest rate and the Seliki.
The variation of the IPCA affected the nominal cost. However, the real cost is only 0 point 5% in September. Now in the composition of the gross debt, we see that the higher exposure is indexed to the CDI with 77%. The rest would be 21% IPCA and 2% TJLP. The cash at the end of the semester was close to BRL 7,000,000,000 with a coverage index of 1.92 percent times the amortization short term, the average time for amortization is 2.68 years.
Well, that's what I had to say. Thank you very much. And now I give the floor back to Gustavo Estrella. Well, we have the last slide here. We're going to talk about what we've been done socially.
We've engaged the company a lot in the topic of sustainability. We have these pillars of ESG more and more incorporated to our business strategy. I think that our intention is that we have a sustainability plan, which is sustainable and long term. So our idea is that this be more and more incorporated to our business strategy, and this has been our strategy. So as I mentioned here, I think this is one of our big highlights of the program of energetic efficiency.
So CFFL in the hospital, it's BRL 150,000,000, 200 hospitals. We were able to advance this year with a project investing BRL 50,000,000 and this is part of our 11th commitment with a sustainability plan. So I think all the actions and initiatives, they are somehow linked and incorporated to our sustainability plan. CPF Young Generation, that's the 3rd 13th commitment in our sustainability plan. We have a series of partnerships with Institut Vander Le Corteres Lima, Instituto Aneelo, the SEMIA program, which will be translated as Harvest Program.
It's focused on volunteers. This is very important. Our idea is to bring collaborators to participate and to engage more and more in these topics and these programs that our company has. And a short term action, Lars, is our program of donations focused on the pandemic, EUR 5,000,000 donated to 20 public hospitals and EUR 1,000,000 for the another program. We also made a donation to the state of Sao Paulo.
The idea is to look at the sustainability plan with a profile long term, but also paying attention to the short term necessities, and that's what we did with this donation program. Well, having said that, I end my presentation. I thank you for your participation, for your presence, and I'm available here with my team. And we can start then our Q and A session. Thank you very much.
Thank you, Gustavo. Thank you, Mr. Pan, for your excellent presentation. So we're now going to start the next step. We're going to open the session for questions and answers, and we're going to obviously follow the order in which they were made.
To ask the question, we're going to have the questions will be live. There's a little button at the bottom. You should raise your hand. This is in the bottom part of the screen and then we'll go in sequence. So I can see that we have already questions.
The first question is Marcelo Sa from Itau Bank. Thank you, Marcelo, for your participation. You can then ask your question. Hi, guys. Thank you for the call.
I have two questions, and they're more in the regulatory side. The first question, I would like to know if you have any vision about the new technique of operational costs that Enel applied last week. They've changed the criteria to define average efficiency instead of being the database reported, it's a target. And then you have to reach this 83.8%. I'd like to know what you know about what you think about this change?
Another point is they have also labor issues. I want to know what you think of this. It calls my attention. For example, when I look at the spreadsheets, a negative effect, especially in this the labor part for CBFL, this reduces the final efficiency and the loss ends up by helping in the efficiency. I'd like you to comment that this is the first question I have about operational costs.
And the second is if you could give us an update about the discussions of Arnel about the PiscoFINS. They were actually to have a public hearing in September. This didn't happen. And I want to know if there's any plan for this. Thank you very much.
Thank you, Marcelo, for your question. Well, starting your first question, operational costs, as you said yourself, it's a technical dense notification. We're having the opportunity to analyze all the details, all the spreadsheets that were given. It's a consultation that will have 2 phases. Enel itself has already announced this.
So there's going to be a lot of work moving forward. About the first target, efficiency, it's a way of doing it before Anel used to use as efficiency, the efficiency of the company is above 50% efficiency and now they're using the average efficiency as a reference. So you would have the companies with 100 percent reaching a maximum of 120% passover. This is not that different from before. There were few companies that were over 125%.
But really, it is a change. And of course, we have to analyze in detail the reasons why this has been done and obviously analyze the argument used by Anel. So we're in the phase of understanding these arguments for the change of the reference, okay, Marcelo. It is a change. It's a difference in terms of concept, methodology.
There had quite a lot of changes. So that's why I said that we're analyzing this very detailed way. The inputs and products had several changes. So the labor issues is now part of the panel of the day around. So we have to evaluate the impact of this.
And more than this, the standardization and because the condemnations, they have a certain we have to see if all the companies are doing it the same way. So I think this is the first point for us to evaluate how they're standardizing this type of issue. Quality, as you said, it has also changed. But in general, I'm trying to summarize things. It's a technical notification that does change the modeling.
Anel itself is forecasting 2 phases of discussion. And we are actually all our specialists evaluating all the details and the concept. I think what's interesting in the day of modeling is to check the arguments used and the robustness of this modeling to see if it's the necessary for the results. As for PISCONFINS, we have nothing new to add. I think it's more or less in the same point that it was before.
I think there's so many events in the middle of the way here that I think that it's an issue of prioritizing an issue of this short time. So we don't really have any news in terms of this subject. What we're expecting is that there is a public consultation that will be opened in relation to this term for a final solution. So if you remember, there was subsidies. There were questions that were answered by all society.
And then we were talking about a second phase with the public consultation. So we're waiting to see what is going to happen with this public consultation of Arnel. I don't know if I was clear. Do you have any other question, Marcelo? Did you understand?
No, you were very clear, Andre, about the operational cost. There's something else that called my attention in the current methodology. And now the data is every 2 years when you're nearer to the revision, you have a more updated number. The way that they're proposing it now is that the data actually will be churned at the same time as the methodology, so once every 4 years. So if a distributor is very far from the revision, the cost that's going to be used as a reference to the efficiency analysis is the cost way back.
And this actually can impact the company in the process because it's not being used across 2018 or 2019, which will probably be the case. And when this methodology is closed, so it won't get the best number of these companies. Do you think there can be any different deal for companies that are being privatized? Because this ends up by being not good for the companies, right? Marcelo, I think for all of them because the 4 year update is very distant even for companies that in quest of this efficiency.
To be honest with you now, the data update with the distance that we have between tariff revisions is already something extremely complex. You have revisions 5, 4 years unmatched. This already happens naturally, this process of you having comparisons that are not the fairest possible. So when one is doing a revision in 2022, the other one in 2023, there's 1 year of difference, which can be this update of a window of 2 years. So I think in general, we have to contribute to the update as a whole, Marcelo.
Independent of the 4 years, this was already a point that we were mentioning. It was already something that had to be dealt with because the difference in tariff cycles was already putting this in check because even the main group, different years. So you say, well, what year will it be for efficiency? What year will it be for updating? So I think there's a space for this.
And I agree, companies in a situation such as this will be much more penalized if this update takes 4 years for sure. Thank you. Thank you very much. Thank you, Marcelo, for your question. Thank you, Andre, for your very clear response.
I'm going to reinforce here to ask the questions. These are live questions. You have to click on the little button that's below the monitor, raise hands. And I'll be asking for questions in the order. We have another question here, Andre Sampaio from Santander Bank.
I'm opening here for Andre. Andre, thank you very much for participation. Please go ahead with your question. Good morning, folks. First of all, I have some construction work here in the building.
So if there's noise, I apologize. But Andre talked about the subject, I would like to think that SAAR didn't go into the methodology pack. It's the factor T and the migration for the band of regulatory costs. If you could comment a bit about this decision of accelerating the migration for the band of regulatory costs. And the second question in relation to renewables, I think that's what most called our attention in the recovery of the results of the Q3, availability and generation of wind.
What would be the forecast for the future? Do you think this availability will remain in the future? And how is this generation coming in the 4th quarter? Well, Andre, in relation to the ban in UP, I think that this really is a change that we have to analyze with care the criteria, the bans, the limits, the lower and higher minutes. It's another discussion about updating.
It's an old discussion. Look, I'm going to reach the minimum. And way back, Enel established the XT factor and some had the maximum and you want to reach the minimum. So once again, I don't want to run away from the question. But these are things that we're still trying we have to do simulations.
Of course, there are results to analyze. But right now, we are internalizing the models because what we do with the technical nodes of Arnel is transform our internal models to verify if everything is okay. And once more, in the line of the target efficiency, I think we have to reach this conceptually, this T band. The difficulty when we carry out a methodological change is to verify if there's safety that this treatment will I don't like to use the word isonomy, but it's something long time. The worry is that you carry out a change, you do some simulations, it seems to have stability, but then medium term, it's not stable and you start identifying this like the companies way they didn't have the minimal limit and they couldn't reach the minimum that they had the right to.
So we have to be very careful with this. And based on the discussion of the methodology way back, I can't tell if it's good or bad. What we're doing is evaluate this. We're doing this with a lot of care. And the second question is not for me to answer.
Well, I think about availability, for sure, our expectation is to preserve this availability. I think this is a fruit of everything that we've done this year, especially in the biggest challenge in the past when we did the prioritization of the OEM service, I think the results are already showing up in a positive way. So the idea is that we preserve this availability given our new form of operating. In relation to the wind performance, as you know, it's difficult for us to forecast. We had, in fact, an important improvement during the last month.
The expectation is to keep up this wind performance in about 90% of P50. It's more or less what we have today. So the expectation for this quarter is to maintain the performance, which was a little bit lower than the Q3. I think in general, the expectation is positive and especially when you compare the 1st semester of this year, we had a low wind performance. So the expectation is to get closer to the P50.
This is already happening. So it's much more similar to the Q3 than the first and second one. So I think it's a more positive perspective in relation to wind as well. Thank you very much for your responses. Thank you, Andre, for your question.
I have another question from Ana Tereza from SMB. Thank you very much for your participation, Ana. You can move ahead with your question. Hello. And can you I think we don't have any more questions.
So we're going to end our Q and A. If there's any doubt or any question or anyone wants to ask a question later, our team of relationship with the investors, we're here to clarify your doubts. Before giving the floor to Gustavo for his final considerations, I'd like to remind you that on the 2nd December, we will be doing a CPFL Investor Day and we count with on your participation. You've probably received the Save the Date, and we'll be sending the official invitation next week. Well, I'm going to give Gustavo Estrella the floor for his final considerations.
Once more, thank you for the participation in our call. In general, what we said here, we clearly can see that the market is recovering. And I think this gives us an important sign for the future and also the default, everything is more sort of under control. I think with the cuts, we have something also, which is a positive perspective to control the default. What we've done is to preserve our investment plan.
So all the goals and the long term efficiency productivity, everything has been preserved to the maintenance of our CapEx program, a robust CapEx of about over BRL 2,000,000 that we should realize that guarantees the sustainability of the company medium and long term. The optimization movement of our debt stock, I think, is also extremely important with a higher reduction of our financing costs, not only for the low levels of CDI, but also search of efficiency in the resources of the market that we're able to do successfully. The volume of debts. And this gives us this perspective of a positive view in the next quarters. Of course, we have a series of variables, the pandemic itself, even though the numbers of infections and deaths are decreasing, there's always a risk of a second wave.
And this always makes us tense. We have to monitor things. Besides all this economical recovery, fiscal issues, it brings us external variables to our business. But in general, I believe that we're after having a challenging time, I think the Q3 is bringing more hope for our businesses and for the company. I thank you all for your participation and have a wonderful We're now ending our call for the Q3 of 2020 CPFL Energy, and we thank you all for your participation.
Have a wonderful afternoon, a good weekend, and see you soon.