Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Energisa Mato Grosso Distribuidora de Energia SA (BSP:ENMT3, Financial) reported a 13% growth in adjusted EBITDA and a 16.6% increase in net income compared to the same quarter last year.
- The company achieved the highest growth rate in energy distribution in the last 23 years, with an 11.2% increase in consumption.
- Energisa Mato Grosso Distribuidora de Energia SA successfully completed the acquisition of Infra Gas, expanding its presence in the gas distribution segment.
- The company was recognized by Valor Economico as one of the top innovative energy companies in Brazil.
- Energisa Mato Grosso Distribuidora de Energia SA announced the payment of BRL157 million in dividends, reflecting a payout of 34.2% of the distributable result for the semester.
Negative Points
- The company faced a negative impact of BRL317.8 million in non-factored income due to seasonal changes affecting energy consumption.
- There was a negative non-cash flow impact of BRL51.8 million from the Energisa commercializer, ECOM.
- Energy losses reached 12.94%, showing a slight increase compared to the previous quarter, attributed to heat waves affecting the group's concessions.
- The automotive segment in the gas distribution was impacted by incentives for liquid fuels, leading to a reduction in demand for natural gas.
- The company experienced an increase in expected losses with credit, with a BRL28.3 million rise in the second quarter of 2024 compared to the same period in 2023.
Q & A Highlights
Q: Can you provide insights on the acquisition of Infra Gas and its potential impacts, especially regarding the regulatory environment in Sergipe?
A: Fernando Maia, Regulatory Affairs and Strategy Director, explained that the contract with Sergipe is a long-term agreement and should remain unchanged. The state is expected to maintain a favorable investment environment, and the impact on rates is minimal. The company is awaiting further developments to finalize the acquisition.
Q: What is Energisa's strategy for capital allocation in the coming years, particularly in terms of portfolio expansion?
A: CEO Ricardo Botelho stated that the focus remains on expanding existing portfolios, particularly in transmission and distributed generation. The company is open to opportunities that offer adequate returns and is keen on organic and inorganic growth in the natural gas segment.
Q: How does the company plan to manage potential changes in Infra Gas contracts and their impact on cash flows?
A: CFO Mauricio Botelho explained that non-factored impacts are managed through provisions and projections. Fernando Maia added that there are no significant risks to the Infra Gas operation from current discussions in Sergipe.
Q: What are the expectations for improving expenses to meet quality levels?
A: Gioreli de Sousa Filho, Vice President of Networks, assured that resource allocation is well-calibrated to meet regulatory goals, with most companies already aligned with established targets.
Q: Are there any updates on regulatory measures to reduce energy rates and the renewal of concessions?
A: Fernando Maia mentioned ongoing discussions with the ministry and regulatory bodies. While no specific timelines are set, there is optimism about structural rate reductions and concession renewals expected by September or October.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
