Centrais Elétricas de Santa Catarina (CLSC4) Q2 2024 earnings summary

Executive summary

• 2Q24 consolidated EBITDA rose 34.8% YoY to R$529.1m and net income increased 29.1% to R$277.6m.

• 6M24 EBITDA increased 20.5% to R$986.6m and net income rose 17.7% to R$509.6m.

• Higher electricity consumption and lower operating expenses supported results; 6M24 investment declined 17.8% YoY to R$531.5m.

Financial highlights

• Consolidated net operating revenue was R$2.62bn in 2Q24, up 2.5%, and R$5.22bn in 6M24, up 1.7%; 6M growth excluding construction revenue was 4.3%.

• Operating costs and expenses fell 2.9% YoY to R$2.19bn in 2Q24 and 1.4% to R$4.43bn in 6M24.

• 6M24 adjusted EBITDA, excluding non-recurring items, was R$1.206bn versus R$879.2m, up 37.2%; adjusted margin increased to 25.0% from 19.0%.

• 2Q24 distribution net revenue was R$2.58bn, up 2.5%; EBITDA rose 35.2% to R$491.6m.

Outlook and guidance

• Solar distributed-generation projects totaling 8.5 MW were under construction, with planned commissioning from August 2024 to March 2025.

• Generation expansion and reactivation pipeline totals 83.78 MW across projects at varying stages.

• Retail energy-trading qualification enables service to eligible Group A customers migrating to the free contracting market.