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AES Brasil Energia (AESB3) investor relations material

AES Brasil Energia has been delisted

AES Brasil Energia Q3 2024 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2024 earnings summary31 Oct, 2024

Executive summary

  • Cajuína 2 wind complex (370 MW) and AGV VII solar plant reached full commercial operation, completing all expansion obligations in São Paulo state.

  • Wind portfolio availability improved by 5 percentage points year-over-year, driven by asset turnaround and operational recovery.

  • Business combination with Auren completed, with share exchange and transaction closing in late October/early November 2024.

  • Disciplined cost management reduced recurring expenses.

  • Net revenue rose 21.3% in 3Q24 year-over-year, but adjusted net income swung to a loss of R$72 million from a R$119 million profit in 3Q23, mainly due to higher energy costs and financial expenses.

Financial highlights

  • Adjusted EBITDA for 3Q24 was R$378 million, down from R$422 million in 3Q23; 9M24 EBITDA was R$1,119 million.

  • Net margin for 3Q24 was R$566 million, a 4% decrease year-over-year.

  • Adjusted net income was -R$72 million in 3Q24, compared to R$119 million in 3Q23; 9M24 net income was -R$260 million.

  • Financial expenses rose due to lower interest capitalization post-project completion and higher depreciation from a larger asset base.

  • Investments totaled R$125.7 million in 3Q24, down 82.2% year-over-year, reflecting project completion.

Outlook and guidance

  • Portfolio is 99% contracted for 2024 and 97% for 2025, with only a small volume of incentivized energy uncontracted.

  • Hydropower contracts intentionally left 15% open annually to hedge against GSF risk.

  • Average sales price for contracts ranges from R$183 to R$206/MWh (September base).

  • Debt strategy focuses on extending average maturity and reducing CDI exposure, with new long-term financings replacing bridge loans.

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Frequently asked questions

AES Brasil Energia S.A. is a leading renewable energy company based in Brazil, focused on the generation and distribution of electricity through hydroelectric, wind, and solar power sources. The company is part of the AES Corporation group and operates a diverse portfolio that includes hydroelectric power plants, wind power complexes, and solar power complexes. The company is headquartered in São Paulo, Brazil, and its shares are listed on the B3.

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