Centrais Elétricas de Santa Catarina (CLSC4) Q4 2024 earnings summary

Executive summary

• FY24 consolidated revenue was R$10.66bn (+2.46% YoY), net income R$715.8m (+28.5%) and EBITDA R$1.567bn (+37.51%).

• Adjusted FY24 EBITDA was R$1.50bn (+10.6%); adjusted net income was R$673.8m (-4.0%).

• Higher electricity demand and infrastructure investment supported results; the financial result weakened as debt costs and debenture expenses increased.

Financial highlights

• 4Q24 consolidated revenue was R$2.81bn (+3.4% YoY), EBITDA R$327.9m (+174.7%) and net income R$130.1m (+46.2%).

• FY24 operating costs and expenses fell 1.3% to R$9.50bn; net operating revenue excluding construction revenue rose 2.8% to R$9.67bn.

• Construction revenue was R$985.7m in FY24 (-1.2%); adjusted EBITDA excluding construction revenue was R$1.50bn.

• Gross profit reached R$1.81bn vs. R$1.66bn in 2023; EBIT was R$1.22bn, up 47.83%.

• Financial result was a R$287.4m loss vs. a R$141.8m loss; operating cash flow was R$281.7m vs. R$450.3m.

Outlook and guidance

• Approved retail energy-market plan includes an AI-based simulator to identify customer profiles, potential margins and savings.

• 2025 electric-vehicle charging rollout targets 100 municipalities, with more than R$5M planned investment and stations targeted at intervals up to 50 km where feasible.

• Approved 2025 consolidated investment budget totals R$1.448bn, including R$1.326bn for distribution and R$122.5m for generation; a further R$262.3m in distribution investment is planned using ICMS Agreement funds.

• Planned system improvements are expected to reach R$4.5bn by end-2026; 2025 generation plans include Caveiras and Salto Weissbach expansion projects.

• Commercial-system issues affecting collections are expected to be resolved by mid-2025; corrective measures are underway.