Alupar Investimento (ALUP11) Q4 2023 earnings summary

Executive summary

• 4Q23 IFRS revenue rose 19.9% to R$878.3m and EBITDA rose 16.3% to R$608.9m; attributable net income fell 26.4% to R$141.2m.

• FY23 IFRS revenue declined 13.6% to R$3,311.4m, EBITDA fell 16.7% to R$2,511.6m and attributable net income fell 24.4% to R$694.1m.

• FY23 regulatory revenue rose 8.8% to R$3,189.2m, EBITDA rose 7.0% to R$2,635.8m and attributable net income rose 27.7% to R$668.0m.

• Growth-cycle plans highlighted R$3.1bn CAPEX, including R$2.5bn in Brazil and R$602m in Latam; anticipated COD timing shifted from 2026 to 2028.

Financial highlights

• IFRS 4Q23 consolidated net income was R$256.9m, down 16.3% YoY; attributable net income was R$141.2m, down 26.4%.

• IFRS EBITDA margin was 69.3% in 4Q23 and 75.8% for FY23; adjusted EBITDA margin was 76.1% and 82.6%, respectively.

• Regulatory 4Q23 revenue was R$787.5m, up 3.6% YoY; EBITDA was R$620.2m, up 0.5%, and attributable net income was R$157.4m, down 1.3%.

• Financial result was an expense of R$183.9m in 4Q23, 15.3% lower YoY; FY23 expense narrowed 9.2% to R$877.4m.

• Regulatory FY23 EBITDA margin was 82.6%; net income per unit was R$2.19, up 22.8% YoY.

Outlook and guidance

• Growth-cycle outlook highlighted R$388m in revenues: R$309.0m in Brazil and R$78.8m in Latam.

• RAP/CAPEX ratio is projected to increase from 11.9% to 13.7%.

• Eight transmission assets were under implementation, with estimated CODs spanning 2024–2029.

• Block 2, awarded in ANEEL Auction 02/2023, was expected to have its concession contract signed in 2Q24; planned scope includes 551 km of transmission lines.