Good afternoon, ladies and gentlemen. You're welcome to the teleconference for the Q2 of 2019 results. The only place this conference is being broadcast simultaneously through the Internet and the website www.energiza.com.br. In that address, you can also find the presentation available for download. We would like to inform that during the company's presentation, all participants will only be able to listen to the call.
We will then begin the Q and A session when further instructions will be given. In case you need any assistance during the conference, We would also like to inform that the conference call is in Portuguese and will be presented by the company's management. And for the English conference, there will be simultaneous translation available. This conference call contains forward looking statements that are subject to known and unknown risks and uncertainties that could cause the company's actual results to differ materially from those in the forward looking statements. Such statements speak only as of the date they are made, and the company is under no obligation to update them in light of new information or future developments.
They depend on circumstances that may take place or not. Investors should understand that the industry conditions and operational factors may have an impact on the future results of the company leading to results that are materially different. I will now turn the conference over to Mr. Mauricio Botelho, who will start the presentation. Please, Mr.
Mauricio, you may proceed. Thank you very much, operator. Good afternoon, everyone. I would like to thank you for your participation in this conference call for the Q2 results. We have Ricardo Gozelio, President of the Energizes Group Alexandre Nogueira, who is Regulation Vice President Fernando Maia, Regulation Vice President and we also have Claudio Brandao, Director of Corporate Finances and also Mariana Racha and Bruno Varenga with the Investor Relations team.
I will present some slides on the results and then we'll open for the Q and A session. I would like to remind you that as done in the previous quarters, in the last two quarters, in the case of operational items, we have included the companies that were recently purchased. Also for the financial aspect, we're going to present the pro form a values, which do not take into account the acquisition of these 2 companies. So now moving on to Slide 3, I will go directly to the highlights, which is the adjusted EBITDA totaling BRL 899,000,000 for the quarter, BRL 1.8 1,000,000,000 in the first half. Regarding the results, even though the profit was BRL119,900,000 in the first half.
In the second quarter, we had losses of BRL 80,900,000. This negative result include recent results of the acquisitions of Seran and Eleto Acre. These companies negatively contributed with BRL 153,000,000 in the quarter. But in terms of the pro form a assets taking into not taking into account these 2 companies, we had a net profit of BRL 1,000,000 to BRL 1,500,000. Later during this presentation, we will provide details of other effects, which had an impact on the group's results.
And so moving on to Slide 4, we're going to talk about the energy market. Sales had an increase of 3.5% and Brazil only grew 0.3%. For the Q1, we grew 4% compared to 1.7% for Brazil in general. In this first half. All of our distributors, I'm sorry, had a positive growth.
The highlights for this quarter were Inagizamato Grosso, EMT, with a growth of 6 0.5% influenced by the Residential segment. And market. And the distribution was greater because of the industrial factor with a reduction of 0.5%, which was caused by some technical shutdowns in the cement and fertilizer industries. We're now moving on to Slide 5, and we will talk about some of the highlights, which were our efforts in the low income sector. In 2014, we started demanding more information from benefited consumers, and we observed that some of them were discontinued and there was a potential to expand default payments.
And so because of this and in addition to the campaigns, to the re registration campaigns we had, we started using analytical tools, crossing public data and we're able to expand the number of eligible consumers. You can see in the graph slide that we had an increment of 92,000 clients reported as low income between June 2018 June 2019, with a highlight to the recently acquired concessions with an increment of 67% in Iran and 43% in Electrode Acre. And then in the next slide, Slide 6, on the left side, you can see the electric losses and you can see that this indicator was 13.55%, considering all of the group's distributors and 0.45 percentage points above the regulatory target. If we do not take these 2 into account, then this would be 11.50%. In other words, 0.25 percentage points below the regulatory target.
The highlight was for EMT. Even though there was a slight reduction in the quarter, it had the 2nd largest reduction when compared to June 2018, which was 0.82 percentage points. This, Eucidore in Mato Grosso continues meeting the regulatory target and we are actually 0.16 percentage points above the target. Eneliza Paraiba had a slight decrease when compared to March 2019, and there was an increment of 0 point 45 percentage points when compared to June 2018. And this is explained by increment in nontechnical losses.
We are trying to overcome this with an additional plan to fight theft and was implemented at the end of last year and intensified in 2019. Energia Sergipe was once again below the regulatory target because of all of these actions to fight energy test. And Metro Equity follows below the flexible regulatory target with Serum is approximately 6 percentage points above the regulatory target. We adopted different measures to overcome the situation. Since these utilities had an increasing losses since August 2018.
And then in June 2019, there was a decrease when compared to May, indicating the first outcomes of these measures in the region. And we are now going on to Slide number 7 with the service quality indicators. So you can see that except for Seron, all of the distributors were below the quality regulatory targets. Many of them continue breaking their own historical records in terms of quality indicators. As it was the case of Energiza Amato Grosso EMT and Energiza Paraiba, EPB in DEC and Energiza Serjepp and Energiza Paraiba in FEC.
Energiza Mato Grosso had the best performance of the group in terms of quality with a reduction of 4.8 hours in DEC and 3.04 times in FEC. And exisotoken genes was ranked as number 2 with improvements of 4 point 16 hours in DUC and 3.02 in FEC. In Syrah, there was an increase in DUC DEC when compared to June 2018. And after the acquisition, Energiza prepared an indicator reversal plan and the fact that the DTC in May June presented a significant reduction when compared to January April reinforces the trust in the measures that were adopted. And now we will focus on the explanations about the company.
It's not taking into account Sedalia and Eberlache results. And we had an increment of 0.4 percentage points in the quarter and 2.2% in the first half, both below the inflation rates for this period. A large part of the increment in personnel is explained by the salary readjustments and increase in the number of companies in the group, especially in the holding as a result of incorporation of new activities to the shared services center, such as invoicing and the activities of IT system development. On the other hand, we had a decrease in labor expenses, labor penalties, especially in Mato Grosso do Sul, there was the service line reduction was impacted mainly by expenses with M and A and the holding energies as I say and also by the reduction in energies, which is explained by the inclusion of technical teams. And now we're going to move on to Slide 9 and talk a little bit about pro form a consolidated EBITDA.
Without taking into account Cerrone and AIG, it was $15,000,000 in the 2nd quarter and $1,873,000,000 I'm sorry, dollars 1 point 873,000,000 in the first half with increases of 40.2% and 30 0.4%, respectively. And if we do not take into account the EBITDA increases, there was an increment of 43.9% in the quarter and 32.8% in the quarter. And I would also like to highlight that except for the nonrecurring impacts detailed in the attachment of this presentation, the EBITDA for the quarter would have grown 51.4% in the quarter as a result mainly of the increase of BRL289.8 million in Part B of the distributors in the first half, this would be corresponding to 42.7% improvement. Also in Slide 10, we compare the regulatory EBITDA and the reported actual EBITDA in the last 12 months. And the highlight here would be the approximation of Grupo Ready, which currently is 37% above the regulatory target.
And now we're moving on to Slide 11, and we'll talk about the net profit in the quarter, you can see that there was a growth of 46.5%. Within the nonrecurring effects also mentioned in the announcement of this presentation, we had the mark to market for the impact of BRL 194,000,000 without any impact for the company's cash. And if we exclude these extraordinary impacts, we pro form net profit in the 2nd quarter would have been BRL 316,400,000 which is 213.8 percent above what was recorded for the 2nd quarter in 2018. And then for the year, the consolidated net profit totaled BRL 4 64,700,000 with an increment of 89.1% when compared to the first half of twenty eighteen or BRL 219,000,000 higher. And if we do not take into account the EBITDA effects and the mark to market of our net profit in the quarter would have been 192% higher than the first half of twenty eighteen.
In other words, BRL 671,000,000. Now we'll talk about debt and the net debt includes the debt acquired with Siron and Eletro Arte totaling BRL 11,900,000,000, which includes the sum of BRL 336,000,000 regarding the mark to market of the debentures of Energiza S. A. And also the debt balance associated to this bonus of approximately BRL620,000,000, we believe that there will be a conversion or some effect of this broadness, which would lead to a reduction of 0.3 times the indicator in the net debt per EBITDA. This covenant indicator was stable in 2.7x.
And as mentioned in the past quarter, this indicator takes into account approximately $1,200,000,000 resulting from the combination of businesses for the purchase of Syron and Enerto Agricri, which were taken into account for the Q4 of 2018. And if we do not take into account these amounts, the indicator would have been 3.6 percent, which is pretty comfortable according to what was negotiated for this year, which would be in the order of 4.5x. And then on the next slide, we're going to talk about investments. We have closed the quarter with BRL759 1,000,000 and the first half was BRL 1,304,000 in the transition segment. We invested approximately BRL70 1,000,000 in the quarter and BRL120 1,000,000 in the first half.
In this next slide, we're going to talk about the transition projects. So ones that were included in April 2017, in this case, we have Energiza Corias and Energiza Para 1, which started operating in September October of 2018, respectively. Both projects have progressed 71% for Energiza Goyas and 48% for Energiza Para. The negotiations with the owners have been almost concluded. And regarding Enesia Para 2, which is the lot purchased in June 2018, the construction started last month, actually the month before last, in June 2019, and the physical advancement of this block is up 10%.
In Energiza Tucantene transmitter, which was purchased last year, We have filed a basic project in July 2019 and part of the study to obtain a prior license were also obtained in the same environmental license. Together, these 4 blocks add an ARFP of approximately BRL 188,000,000 with an estimated CapEx of BRL 1,500,000,000. So I would like to conclude and I'm available to answer eventual questions and answers. If you're not going to ask any questions anymore, so please remove your question from the queue so that we can have better sound quality. Maria Carolina Carneiro from Credit Suisse would like to ask a question.
Well, thank you for the call. I have two questions. The first one is you included the pro form a PMSO for Acre. But I would like you to share with us how the integration is going for the ACRE regarding the immunization of labor and all of the liabilities so that we can have an idea what the management course would be for these new utilities? And also, the second question is that you shared very interesting numbers on the number of clients, which qualified as low income clients and have been registered.
I would like to know exactly what is the potential of this registry because there are more clients that may be reclassified for the next quarters in Rondonia and Acre? Or if this process of identifying clients has already been concluded? Thank you very much. Carole, Ricardo will answer you. Thank you, Carole.
So in response to your question, advanced the pro form PMSO and the measures regarding Akeri and Rondonia. What we have nowadays and we have different marks for the future, but regarding the indominations from the beginning of the year, we had 30% of the labors and companies joining these plants, and they are going to leave the company by December. We also internalized inspection and activities or the quality improvement plans. We have different implementations in place. So all of these measures are ongoing.
And we're probably going to have a better picture for the whole year that it will be better at the end of the year and early next year when we will be able to see all of the ePlex in terms of EBITDA. So to evaluate performance, the best time would be around the Q1 of next year. There's a natural curve of implementation and also when all of the personnel leave the company. I hope I have answered your question on low income re registration. Good afternoon, Aurelio.
How are you doing? This is a dynamic process as demonstrated, and we're always comparing the list of re registration. And based on our planning, if we take into account the new registries and the ones that have been canceled by the end of the year, we will have 80 or 90 tailgens that may be registered. This is an estimate for the purpose of planning, but our expectation is that we'll be able to double it. Thank you very much.
It's clear now. The next question is from Andres Sanpaio from Santander Bank. Good afternoon. I would like to ask 2 questions. The first one has to do with the tariffs, and I would like you to give us a little bit more details of how the asset base is going?
And I would also like to you to talk a little bit about the negotiation between Tocantins and NIL. In response to your question, Andre and Alejandra Nogueira. Good afternoon, Andre. Good afternoon, everyone. Regarding your first question for Akri and Rondrona, in June, we concluded the inventory and the assets that were included and we're now in the process of preparing the reports, which will be delivered on August 29.
There are no problems regarding this process. About your second question, the 2 continues renewal, the process is ongoing. EBITDA was chosen at Enel. The process is ongoing and there are some steps to be developed this year, but there are no risks. I would like to ask one additional question.
So do you understand that the renewal will be just like it was for the other assets? Yes, exactly. The next question is from Luisa Krause from Banco Safra. Good afternoon. Thank you for the call.
I'd like to know about the payment of the BRL 500,000,000. And even so, you had a negative fee adjustment in May 2019. There was a reduction of 7.4%. Was that done to compensate anything? Alexandre Nogueira will answer your And in March, along with the review of other companies because of our senior adjustments, we also included part of the readjustments of 7.4%.
And so of course, that this will be readjusted in the next readjustment. So it was just a delayed readjustment, yes. Part of the adjustment was not approved and there was a reduction because of CR. And so whatever was deducted will be taken into account next December. Do you have what will happen in the next readjustment I'm sorry, in the next reduction in terms of Sedan and Acre?
Well, it will depend on what will be approved and it's directly related to that. So you don't have an estimate yet? No, we do not have an estimate available yet. Okay. Thank you very much.
Thank you. I would now like to turn over to Mr. Ricardo for his final remarks. Mr. Ricardo, please move on with your final remarks.
Good afternoon. I would like to share with you another year of good results for Eneliza. And on July 3, of the 11 categories was over 1500,000. We were finalizing 8 and won 4. Of the 4 categories that were analyzed for companies with up to 500 consumers, We won 2 awards.
Enelgisa Nava Frigorgo was considered and won the award of best distributor in Brazil once again for the category of up to 500,000 consumers. And then the other companies awarded the group where Niziza, Paraivato Continues and Sue Sebastian. I would also like to give you some more information about the integration plan for Serrano and Esdracon. And as explained by Aleksandri, we have achieved results on the inventory of the assets of all of the companies, including a large mobilization, we were able to carry out 100% of our inventory and provided will provide by the end of the month a full report to NIL. Everything has been taken into account, registered and will be included in the most modern platform available for this segment, which will enable us to be able to reduce drastically the number of hours.
In September, we will conclude the inspection by NIL. And in December, we will have a restructuring. And as we mentioned, the intervention plan is ongoing. Regarding transmission, we are very happy with the advance of the construction as mentioned by Mauricio. And we also anticipated the entry and operation.
If we keep the same construction rates, we have some lots, which will be made available in December. And due to strategic regions, we do not know exactly where and how. We wish you all a good afternoon and a nice weekend. Thank you for your attention. Thank you.
The teleconference is now concluded. Please hang up now.