Auren Energia (AURE3) Q4 2024 earnings summary

Executive summary

• Completed acquisition of AES Brasil on October 31, 2024, creating Brazil's third largest energy generator with 8.8 GW installed capacity and a diversified hydro, wind, and solar portfolio.

• Captured BRL 43.5 million in synergies within two months post-acquisition, with annualized potential of BRL 250 million and ongoing integration and asset performance recovery plans.

• Achieved leadership in energy trading with 6.2 GW average traded in 2024, generating BRL 202 million EBITDA and BRL 302 million in mark-to-market margin.

• Pro forma Adjusted EBITDA reached BRL 3.3 billion in 2024, with a cash conversion ratio of 59% in Q4.

• Integration milestones achieved ahead of schedule, with operational improvements in acquired wind assets and accelerated system/process migration.

Financial highlights

• Net revenue grew to BRL 11.3 billion in 2024, up 35% year-over-year, driven by higher trading volumes and new asset operations.

• Adjusted EBITDA for 2024 was BRL 3.31 billion, down 5% year-over-year; Q4 EBITDA was BRL 889.8 million, down 12.7% year-over-year.

• Net income for 2024 was BRL 272 million; net margin declined to 38.1%.

• Net debt increased to BRL 18.9 billion, with leverage at 5.7x EBITDA and average debt maturity of six years.

• Cash conversion ratio at 59% in Q4; cash position at BRL 8.1 billion at year-end.

Outlook and guidance

• Targeting leverage reduction from 5.7x to 3.3–3.5x EBITDA within 3–4 years, supported by contracted energy sales and new capacity coming online.

• Focus on operational excellence, capital allocation discipline, and capturing value from synergies in 2025.

• Committed to reaching 95% wind asset availability by end of 2025, two years ahead of original plan.

• Additional 1.5 GW of installed capacity operational in early 2025 expected to support deleveraging.

• Cajuína 3 project to start operations in 2026, with CapEx of BRL 150 million split over 2025–2026.