Release Date: July 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Injected energy in concession areas grew by 8.2% in the second quarter, driven by higher temperatures and increased economic activity.
- Cash EBITDA surpassed BRL2.4 billion, showing a growth of 3% in the quarter.
- Net income for the quarter was BRL815 million, reflecting a 12% growth compared to the same period last year.
- Realized CapEx reached BRL2.3 billion in the quarter, contributing to a significant net base of distribution assets.
- The company is on track to conclude 2024 with an annualized RAP of BRL1.2 billion, marking progress in the transmission investment cycle.
Negative Points
- Operating expenses grew by 4% compared to the previous year, indicating rising costs.
- The end of the Termopernambuco contract negatively impacted financial results.
- Transmission EBITDA decreased by 17% due to the sale of assets to GIC.
- Loan loss provision reached BRL130 million, although it was an improvement from the previous year.
- The company decided not to participate in the upcoming September transmission auction due to competitiveness issues in small lots.
Q & A Highlights
Q: Will Neoenergia participate in the upcoming transmission auction in September?
A: Eduardo Capelastegui Saiz, CEO, stated that Neoenergia assessed the auction but decided not to participate due to the small size of the lots and existing land issues. The company is not competitive in small lots, which are more suited for construction companies.
Q: Can you provide an update on the new Termopernambuco contract and its revenue anticipation?
A: Eduardo Capelastegui Saiz, CEO, explained that the previous contract ended in May, and the new contract will start in June 2026. Neoenergia is working on an availability contract and expects to formalize gas supply contracts by the fourth quarter of this year, potentially anticipating the contract by 18 months.
Q: Are there plans to transfer more assets to the JV with GIC this year?
A: Eduardo Capelastegui Saiz, CEO, confirmed plans to transfer three lots (Itabapoana, Paraiso, and Estreito) to the JV with GIC this year. These lots are in operation, and the transfer aligns with Neoenergia's strategy.
Q: How is Neoenergia managing its debt and capital structure?
A: Leonardo Pimenta Gadelha, CFO, reported that Neoenergia's net debt is BRL41 billion, with a net debt-EBITDA ratio of 3.27 times. The company maintains a diversified debt structure with competitive costs and has secured over BRL9 billion in funding for 2024.
Q: What are Neoenergia's strategic priorities moving forward?
A: Eduardo Capelastegui Saiz, CEO, emphasized Neoenergia's focus on efficiency, value creation, and sustainable results. The company is committed to completing its transmission investment cycle by 2025 and continues to invest in distribution networks to serve nearly 17 million customers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
