Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ENGIE Brasil Energia SA (EGIEY, Financial) successfully authorized 15 units for commercial operations at the Assuruá Wind Complex, with an additional 36 units in test mode.
- The company fully energized the Gavião Real Transmission System, enhancing synergy with its portfolio.
- ENGIE Brasil Energia SA (EGIEY) won the Energy category in Exame's Best of ESG ranking and received the Great Place to Work Brazil certification.
- The company approved the distribution of interim dividends amounting to BRL932.8 million.
- Adjusted EBITDA increased by 8.6% from BRL1.710 billion in Q2 '23 to BRL1.96 billion in Q2 '24, driven by indemnity from Santo Agostinho and improved hydro performance.
Negative Points
- The company faced financial impacts due to incidents at the Santo Agostinho project, resulting in a BRL262 million indemnity.
- Net income was affected by increased income tax payments, with BRL46 million more paid compared to the previous year.
- There was a 2.6% negative variation in the last six months compared to the previous year.
- The company's ROIC decreased from 20.3% to 18.3%, attributed to income retention.
- ENGIE Brasil Energia SA (EGIEY) experienced a reduction in sales during Q2, as part of a strategic decision due to market volatility.
Q & A Highlights
Q: Can you comment on the expectation to bring forward the date for Asa Branca and any impact from the permitting authorities' halt? Also, what is the company's interest in the next transmission auction?
A: We are monitoring the permitting agencies' strike but remain hopeful about securing our license without major delays. The project involves multiple phases and permits from different states, which could impact timelines. Regarding the next transmission auction, ENGIE is very interested and sees energy transmission as a key investment pillar in Brazil.
Q: How does ENGIE view the data center market in Brazil, and are there any opportunities being explored in this sector?
A: ENGIE sees the data center market in Brazil as promising due to competitive energy prices. While specific actions cannot be detailed, ENGIE is interested in supplying energy to data centers and AI training centers, viewing this as a strategic opportunity for Brazil.
Q: Are new generation projects in the pipeline still on hold, or are there new prospects?
A: Current market conditions and energy supply uncertainties make it a cautious time for new investments. ENGIE continues to refine projects in the pipeline but has no immediate plans to start any new projects in the short or medium term.
Q: What are the financial highlights for ENGIE Brasil Energia in Q2 2024?
A: The adjusted EBITDA increased by 8.6% to BRL1.96 billion, driven by indemnity from Santo Agostinho and strong hydro performance. Net income rose by 18.8% to BRL871 million, reflecting improved EBITDA and financial results.
Q: Can you provide an update on the progress of the Assuruá Wind Complex and other projects?
A: The Assuruá Wind Complex has 15 units authorized for commercial operations, with 36 units in test mode. The Gavião Real Transmission System is fully energized, and Santo Agostinho is nearing full commercial operation. Progress continues on other projects like Assú Sol Photovoltaic Complex and Asa Branca Power Transmission.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
