Compass Gas e Energia (PASS3) Q1 2025 earnings summary

Executive summary

• Net revenue for 1Q25 reached R$4.21 billion, up 2% year-over-year, with EBITDA rising 45% to R$1.3 billion, driven by LNG cargo optimization and improved distribution margins.

• Net income increased 32% to R$420 million, reflecting higher EBITDA partially offset by increased financial expenses.

• Investments totaled R$366 million, mainly for distribution expansion and Edge projects.

• Expanded client base and network extension in gas distribution, supporting higher distributed volumes.

Financial highlights

• Gross profit grew 5% year-over-year to R$814 million, with a stable gross margin of 19%.

• Distributed gas volume reached 13.8 MMm³/d, up 4% from 1Q24.

• Marketing & Services EBITDA grew 45% to R$364 million in 1Q25, mainly from LNG cargo optimization.

• Normalized EBITDA (excluding deferred load optimization) was R$1.06 billion, up 20% from 1Q24.

Outlook and guidance

• Management highlighted future growth opportunities but cautioned about risks related to macroeconomic and regulatory factors.

• Continued focus on expanding gas distribution and marketing, with investments aligned to regulatory cycles and infrastructure projects.

• Strategic emphasis on ESG, aiming for carbon neutrality in distribution and leadership in renewable gas by 2030.