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Brazil: privatizing energy companies or not?

There is a natural inclination to take a position of "protecting our national companies."  So the potential privatization of Eletrobrás - a huge power company - is making a lot of people in Brazil really angry.

Privatization of energy companies should be a technical decision.
Healthy companies (financially and economically), with a consistent strategic plan of short, medium and long term and well-managed are characterized mainly, by two aspects:

1) Dividends: They distribute dividends to their shareholders because they are profitable.

2) Appreciation: With business growth and profits there is an increase in the share's value

The practical result is that the shareholder get a valuation on the investment and the annual dividends.

For years, our state-controlled energy companies do not distribute dividends and do not show consistent appreciation.

If these companies "belong" to the Brazilian people, worse still because there was in fact a devaluation. Poor management, corruption, political patronage, executives and even managers appointed by partisan interests are the trademark of these companies.

Just compare these energy companies with similar (eg North American, European, Japanese and Australian) to find out if our superbad results make any sense.


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