Alupar Investimento (ALUP11) Q3 2024 earnings summary

Executive summary

• Net revenues reached R$928.6 million in 3Q24, up 43.1% year-over-year, driven by strong transmission segment performance and inflation adjustments in concession assets.

• Net income surged to R$363.8 million, a 263.7% increase from 3Q23, mainly due to EBITDA growth, lower financial expenses, and significant tax benefits in the transmission segment.

• Consolidated EBITDA rose 52.2% to R$692.8 million, with adjusted EBITDA margin at 85.9%, reflecting higher revenues and improved operational efficiency.

• Investments totaled R$121.1 million in 3Q24, primarily allocated to transmission projects, supporting the company's largest growth cycle.

• Interim dividends of R$76.1 million (R$0.24 per unit) were approved, reinforcing the commitment to shareholder returns.

Financial highlights

• Transmission segment net revenues (IFRS) rose 63.6% to R$743.0 million, mainly from higher concession asset remuneration and inflation indexation.

• Generation segment net revenues fell 4.2% to R$187.8 million, impacted by higher energy purchase costs and lower spot prices.

• Regulatory net revenues grew 2.9% to R$820.3 million; regulatory net income up 11.9% to R$182.9 million.

• Net debt stood at R$8,761.7 million, with net debt/EBITDA at 3.0x, indicating a stable leverage profile.

• Net income per unit (IFRS) was R$1.15, up 249.7% year-over-year.

Outlook and guidance

• Ongoing implementation of major transmission projects in Brazil and Latin America, with R$8 billion in investments and consistent returns expected through 2029.

• New projects in Peru, Chile, and Colombia are advancing, with regulatory approvals and construction milestones achieved.

• Concession terms for new projects extend up to 30 years, with COD targeted for 2029.

• Ongoing analysis of new auction opportunities in Brazil and abroad, with a cautious approach due to market competitiveness.