Good afternoon, ladies and gentlemen. Welcome to the conference call for the earnings release of the 1st part of 2020 of Energita. We would like to inform you that our participants will be in listen only mode during the presentation. Next, we'll have a Q and A session and further instructions will be then given. We would also like to inform that the conference call will be held in Portuguese by the company's management, and the English conference will be provided by simultaneous translation.
This event is also being broadcast simultaneously on the financial webcast. I would like now to turn the conference over to Mr. Ricardo Boteya. Thank you very much. Good afternoon, everyone.
I would like to thank you for participating in our conference call for the earnings release of the Q1 2020. I have here with me Mauricio Gutierrez, Investors IRO and VP of Finance Chorelli de Toza, VP of Distribution Alicia Gutierrez, VP of Regulatory Affairs Daniela Arauje, VP of People and Management Fernando Maier, Regulatory Affairs Officer Antonio Carlos Tobar, our new CFO and finally, our team on the Investors Relations. I'm going to start my presentation by describing our actions and the contingency plan for the pandemic, something which has impacted strongly in our country and has had its impact on the company. In addition, we mentioned some subsequent events. On Slide 57, I'll present to you our satisfactory results of operating improvement of the quarter and also Cairi and Saipem.
Mauricio, our Investor Relations Officer and Financial VP, will speak from Slides 8 to 12, making the financial highlights, investments and the objectives we've had in the area of transmission. Next, we are going to open for our Q and A session. I'm going to start, as you can see on Slide 3, as a response to the situation of crisis. We created a governance committee of the crisis so that we could make our strategic decision involving the top management of the company and creating a number of topics that are part of our contingency plan, which had to be expanded. Our routine was modified because today we have 2 weekly meetings for checkpointing, where we cover all the topics of the company.
These workbooks are focused on society, people and our businesses. Focusing on society and the community, we prioritize relief actions, social movement actions involving agricultural and economic issues, interacting with the communities where we are based. We've prioritized reliability of electrical energy services for critical areas such as hospitals and medical centers and the population in general. We started movement in the Rio de good energy, which is a set of measures that you can check-in our portal moving into Energia Dubain. And I'm very proud of the military work that we've been performing in this moment of difficulty.
We've been providing platforms of access to culture, professional capacity building to young people, social initiatives to support the elderly, also guidance for health care, donation of mechanical ventilators and surgical masks to hospitals. We've been providing support in electrical energy installation of some emergency department units with the donated food, the encouraging donation by our own staff members. So each one deal which is donated by the staff member, Energica doubled the same amount in BRL. And a number of other actions that really make a difference in the day to day practice of our community. Focus on people.
It has always been one of our priorities, and it has gained even more attention, especially in the safety and protection of our staff and maintaining our work position. We have to bear in mind that a significant number of our staff members are out in the street to make sure that everyone else is kept at home. I would like to show our gratitude and pay really tribute to the great contribution they've made in the country. As part of the contingency plan, which was activated in the beginning of March, we have adopted actions to maintain the critical activities of the company, primarily in resetting our operation centers in many different sites, in allocating 2,000 people to work from home, promoting greater social distancing in all the activities that have to be done on-site. We also have health teleconsultations, which is one of the measures for protection and care that we have offered to staff members and their family members, those that need any kind of help support related to COVID-nineteen infection, We've suspended all trips except for those which are absolutely required because of service needs.
We have reinforced housekeeping. We have provided protection gear to all staff, change our routines of cleaning, the cars, etcetera. We have applied everything, which is recommended as general guidance according to the World Health Organization. In light critical areas of essential services, Law MC 936 was applied for 90 days. The main purpose was to reduce expenses during difficult times and also to avoid laying off people without compromising the net compensation of our employees.
The compensation of our executives and board members have been cut by 25% during the same period. Finally, but not least important, focus on businesses. We have worked in different fronts to minimize the effects of the credit in our economic financial balance of the group, without which it wouldn't be possible to carry on with our operations, which employed over 14,000 of our own employees and 6,000 outsourcing rates. Among the implemented measures, we have been reducing management expenses between 7% 12% compared over the previous year. We have renegotiated 80% of our debt that were due in the short term, we have postponed investments, which were expected for 2020 amounting to BRL557 1,000,000.
And we've maintained the deadlines of our ongoing projects for distribution and transmission projects. As they turn by contract, we are really working hard so that we can even anticipate the deliverables. These measures were required to sustain our business and mitigate loss of cash resulting from strong margin drop and delinquency. In Slide 4, I would like to highlight some economic and financial effects of this crisis, at least at the preliminary basis, such as increase in delinquency in April, measured by the indicator of now in a movable average of 30 days, which on April 30 amounted to 7.3%. This is a number that varies widely, which is a maximum of 16% throughout the month of April.
All of that compared to our historical average of 1.6%, which is the period between January 2019 to February 2020. The metrics that I have just described is exactly the same metrics that has been used by Enel. There has also been a reduction in consumption of energy at Energica by 6.3% in April over 13% in Brazil. I would also like to say that we have ongoing negotiations, as you know, together with Enel and Ministry of Energy to maintain the flow of payment of relaxed facilities by creating regulatory assets, which will serve as a buffer to fund the operation of CCE and then a distribution through CDE. In April, distributors have already received all the surplus of the reserve energy account, called CONER, CONER, considering the last account made.
Referring to it, Energies had received a total of BRL 131,000,000 in April. Perion, Enel had a tariff readjustment of fees concession. And it has authorized postponement of the price readjustment through July 1, 2020. At the same time, we have to have monthly dispositions of TDS of the amount that will be applicable to the same price adjustment. To conclude this slide, it's important to mention that on April 28, we suffered a cyber attack in our computing system with immediate reaction by the company.
For precaution, we temporarily shut off some systems but maintained the continuity of our operations and all its components. Our systems of supervision and control of the electrical systems were not affected during any moment. We've already resumed 100% of our main systems without an indication of data loss, no leaks of commercial or third party data. And there has been no impact on our billing processes. We have already adopted a number of measures against this criminal invasion and we have reinforced our safety system and are running an investigation right now.
Now let's go into Slide 5. I would like to highlight that for the 4th consecutive year, we've shown market growth in the Q1 of the year. The performance in 2020 was positive by 2.5% over 0.9% that Brazil experienced. Our results compared to the country may be explained by regional adversity and the presence that we have in very dynamic regions of the country. In this quarter, we highlight the month of March plus 4.1 percent with the highest growth since 2014, which was 4.9% at that time, despite the effects of COVID crisis in the second portion of the month of March.
Had it been for us, it would certainly be a record month. All classes grew in March except in the quarter, they are saying except for industrial clients, which experienced 0.4% readscratches and household clients that had greater growth and better performance since 2012, plus 8.2% in the Q1 2019 and 9.4%, which was the case in 2012. As you can see in the chart, our 4 concessions, Aque, Mato Grosso, Bongoni and Paraiba, had a positive impact of high temperature rate and also the calendar effect. And the concessions of Marcelo and Paraiba has been showing a good performance thanks to agribusiness. Conversely, owing to weather effect and lower temperature and higher rainfall index, concessions of Naogerebros and Minas Gerais have presented reduction in consumption.
Energous de Saoirse has been affected by the exclusion of a large industrial client in June 20 19 with a reduction of 3.4% in the total consumption of this market. The distributors that contributed the most to the growth of the marketing in the group were market growth of 55% share Paraiba 26% share and Rondono 19% share. Those categories that had greater share in market growth were urban households and rural households in 73% 23% respectively. Now moving on to Slide 6. We have total losses of the group, which have proved to be stable for the past 5 quarters.
In March 2020, our losses amounted to 13.52% of the total injected energy, somewhat above the regulatory loss of 13.06%. If we exclude Energia Rondonia, a distributor with a greater deviation in terms of reference, the losses would have been 11.60%, 0.19 percentage points below the regulatory number of 11.82%. Orders of a total of 11 distributors, only 3 are above the regulatory growth, Minas Gerais, Paraiba and Longonia. For Minas Gerais, total loss was 10.06%, a small deviation from the regulatory goal of 9.64%, which indicates non technical losses, which are more preponderant in debt concession. Paraiba is currently above its regulatory goal of 0.43%, but it does present a reduction in total percentage loss over December 2019.
The reversion of the trend of growth of losses in 2019 resulted from the actions that we have adopted to fight against losses in critical areas showing more assertiveness. In Rondonia, our concession still has a relevant deviation from its regulatory goal with greater impact on non technical losses. Therefore, since the beginning of 2019, the company has adopted the plan of measures associated with capacity building, reinforcing the team, which had contributed to the changing this journey since the Q3 last year. Concerning the other 8 concession, which has presented better performance than regulatory goal, we would like to highlight Marto Bros. Because it's presented losses below the regulatory limit for the 3rd consecutive quarter.
The next slide, Slide 7. We can see the results of quality of service. The Q1 2020 was exceptional in terms of quality of service. All our distributors, except for Gondoni, presented the quality indicator, SAID and SAIF, below regulatory limits. And 5 of these companies have presented in this quarter the fastest vertical performance.
Canal published in April, IDG ranking referring to 2019. IDG indicator measures the relative performance of quality considering the regulatory goals. Energica classified 6 of its company among the top 10 in the ranking of large size companies. This consistent operational performance results from appropriate allocation of investments to our peers and I guess I'll have to reconnect. Can you hear me now?
[SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] We can hear you now. We were just close to the end of this slide. Please tell me where to resume. Last paragraph, you can go to Slide 8. You were coming close to the completion of the slide.
I apologize. We had a technical problem. I don't know exactly how far you heard me. I was talking about Slide 7, where we talked about the quality of service. Let's see if you can hear me.
I can hear you. Let's see if you can hear me. Yes, now we can hear you back. Now we can hear you back. Yes, absolutely.
I'm using my mobile phone here. It was I was just talking about the last slide, Slide 7. Performance of quality of service. All our distributors, except for Londonian, presented the quality indicators below regulatory limit, 5 of which presented their best historical performance ever. I was just saying that Enel in April published IBD ranking referring to 2019, thus indicator measures performance and quality according to regulatory growth.
And Neuritas got 6 of its company among the top ten ranking, including those large pipe companies. This means we've been making investments for the recent years and a number of actions focused on improving risk indicators. This was the last slide, ma'am. I'm going to hand it over to Mauricio. Good afternoon, everyone.
We apologize for the technical problem. Now let's see Slide 8. Here on the left, we have manageable cost of PMSO in the Q1 20 20 amounting to BRL648 1,000,000 with 3.8% increase over the Q1 2019. But aligned with inflation rate, IPCA 2019, which was 3 point 30%, but still below IGPM, which was 6.82%. This increase of BRL 24,000,000 in the MSO is basically explained by expenses made with maintenance to improve our quality indicators.
Our personnel expenses had 5.1% decrease, translated into BRL 17,400,000, partially compensating the increase of other expenses. On the right of the chart, we can see accounting EBITDA. In this quarter, there was a growth of 2.5% over the Q1 2019. If we exclude nonrecurring impact of both quarters, we would have growth of 11.6 percent or equivalent to a growth of Parcel B of BRL111.7 million. Let's now see Slide 9.
Slide 9, we can see company's profit. The profit of the quarter increased 3.52% over the Q1 2019, variation of BRL 153,000,000, which portrays primarily mark to market of subscription bonus, which in this quarter showed a positive result of BRL 441,000,000. With a negative effect in the Q1 2019 of BRL 118,000,000. If we exclude the mark to market effect and some non recurring events of less relevant, the net profit of the quarter would be BRL150.6 million and a reduction of 19.7 percent or BRL 36,400,000 of difference period over period. It's important to emphasize that here, the financial results, we had some additional expenses, such as financial effect on financial operations due to additional resources that we had to obtain from the market to face the pandemic and also lower profitability of financial investments due to the decrease in the interest rate.
Net indebtedness, the due from capital credit in the quarter amounted to BRL 13.7 billion, with increase of BRL 21,900,000 over December 2019. The average term of the net debt is 5.3 years, average cost of 6.18%, a reduction of 0.42 percentage point over 6.60% in December 2019. Our main index is CDI, which represents 72% of our debt. In terms of net debt over EBITDA, adjusted EBITDA as leverage, we finished supporting 3.5 times over 3.6 times at the end of last quarter. It's also important to mention that the company, since the beginning of the year, has made a number of fundraisings and along the other side of this debt amounting to BRL 2,400,000,000 out of which BRL 1,200,000,000 was used to reinforce working capital and the remaining portion was used for postponing the deadlines to 2020, 2021 and part of it in 2023.
This initiative is focused on reinforcing our liquidity position of Grupo Energiza, anticipating difficulties that would come from the pandemic. This is why in March, we have very robust cash amounting to BRL 4,200,000,000 with an increase of BRL 1,200,000,000 over December 2019. Now on Slide 10. We can see the investments of the group totaling BRL714,000,000 growth of 31% over the Q3 2019. Out of the total, the segment of distribution absorbed 89% and transmission had 10% of its use, BRL 59,000,000 the quarter over BRL 50,000,000 last quarter.
Slide 11, we can see our plan of investments for 2020, fully reviewed. You can see the reduction pointed out by Ricardo of BRL 567,000,000 to protect our cash position, considering the moment of crisis. We've maintained our plan of essential investments to maintain and to have continuity of our operations. It's important to point out that out of the total reduced amount, 55% concerns special obligations. The estimates of investments we reviewed amounting to BRL3.4 billion, which are still very relevant to our group.
85% of this amount will be concentrated on distributors and 13% on transmission operations. Now Slide 12, concerning transmission. Energita Goya with 136 kilometers, which was obtained in the auction in April 2017. This is Dienergia on March 15 this year, 17 months in advance. And this project will have an annual permitted revenue of $40,700,000 There are still 3 more projects, Energizer Para 1, which started its construction in 2018 with a physical event of 83%.
We have Energiesapara 2. It was something that we got in an auction in June 2018, And we have covered already 30% of the Cielo. And Energies that will contain Transnistora, purchased in December 2018 with a coverage of 12% of the price. We have some interruptions of constructions with COVID-nineteen because of some specific cases of obstruction, but we have been successfully negotiating on a case to case basis. Concerning the schedule, we are confident that despite minor interruptions, we are not going to affect any of our anticipated delivery plan.
Together, these four projects amount to submitted annual revenue of approximately BRL 193 1,000,000 and estimated CapEx of BRL 1,600,000,000. Since the beginning of the construction of transition lines from 2017 up to March 30, we have already invested BRL 123,000,000, to which BRL 245,000,000 were invested at Energia Agua. With this, I conclude my presentation. And now we'll be glad to answer your questions. Operator, please?
Thank you. We are now going to start our Q and A session. If you have any questions, please type by 1. If your question is answered, you can remove it from the waiting line by pressing star 2. Questions will be answered on a first come, first answer basis.
Please remove the heads up answer the question. Carolina Carrelo from Credit Suisse has a question. Please. [SPEAKER CANDIDO BOTELHO BRACHER:] Good afternoon, everyone. Thank you for the call.
I have two questions. First, would you please make some comments about the following? In the Q1, we've seen good volume of operations in your concession provisions for delinquency has gone up, but still not much affected by the crisis yet. So I would like you to share with us some more details about the progression in April and beginning of May. What have you been observing in terms of delinquency in your concession?
Secondly, we would like to ask you to tell us something about the Commedia account, especially 2 points. Some news, incorrect news, saying that maybe companies will have to pay for part of the financial costs resulting from the loans that have been made. We've heard some news that there might be some additional requirements should the companies accept to use the resources. So then they wouldn't be free to ask for any competition data. So I'd like to hear your take on it.
Thank you very much. Let me share my answer here with colleagues here. In terms of load, there was a decrease in April of 6.3% over the load of the national system. Just so you have an idea about our drop. Concerning regulatory affairs, I would like to ask Ricardo and Alexandre to help me answer.
How are we doing with our discussions with the Ministry of Energy and Enero? Can you all hear me? Yes? I'm going to start and then Alexandre can complement. Good afternoon, Carolina.
I'm going to start with the second question about asking reasons of MTEs and something along those lines. While it does not exist, Nothing will be done throughout this line because of COVID. Everyone can still order an RT to rebalance this parcel of the distributor. There is no correlation there whatsoever. What we cannot find are objective criteria though.
It's been just an annual resolution for all the requests of economic repassing can be submitted and distributors will have to confirm there has been an imbalance. Everything will be done once we know of the impact, permanent impact. We've already been suffering the impact. But since we know the permanent impact we've had, we will be able to request that according to the criteria that have been set by the agency. But there is no prohibition of asking for rebalancing.
That is part of concession contract and also according to the regulations of operation. We would just have to have specific criteria by cases, which will be provided by the regulatory agency. Considering financial funds, our selection needs to help me. At first, all costs through COVID should be on consumers. Consumers should be responsible for paying them.
What we have to see is, if you have got an amount higher than what had been required to have your immediate liquidity and if the resources are additional cost may be transferred to the distributor. But if there were anything in excess, do what is your parcel area? This is how I see it. Right now, consumers are responsible for covering it. As Ricardo has pointed out, Carolina versus Alejandro, the cost would be spread cost, but this is all going to be still discussed.
We really don't know how the process will be held. We still have to work on having the regulation. [SPEAKER CANDIDO BOTELHO BRACHER:] Great. Thank you very much. Thank you for your answers.
The next question comes from Marcelo Saenz from Itau. Marcelo, please? Good afternoon, Marcelo. The technique has had a number of possibilities and it has a broader reach and different solution. COVID account is a very short term solution.
We have to come up with different mechanisms for the short and midterm for the unit. This is our interpretation. There is a menu of options. Right now, we're just thinking about it as a very short term solution, which is the COVID account. Great.
Thank you. If there are no further questions, I would like now to hand it over to Mauricio Bockel for his closing remarks. Thank you all very much for being with us during the conference call. Thank you. Stay safe.
We'll carry on paying close attention and focusing on doing our best to deal with COVID. Thank you all very much and have a nice afternoon. Thank you. The conference call for Lierros Solizio of Energizer is finished now. Thank you.
You may disconnect now.