Compass Gas e Energia (PASS3) Q2 2024 earnings summary

Executive summary

• Served 2.7 million clients with a 25,000 km network, distributing 13.8 million m³/day in Q2 2024.

• EBITDA rose 44% to R$1.38 billion in Q2 2024, driven by Edge operations, non-recurring effects, and operational milestones like the São Paulo LNG terminal launch.

• Net income surged 73% to R$599 million in Q2 2024, reversing the prior year's loss.

• Achieved significant milestones including TRSP operations, new client connections, and the acquisition of a controlling stake in Compagas.

• Investments totaled R$474 million in Q2 2024, focused on gas distribution and Edge projects.

Financial highlights

• Q2 2024 EBITDA: R$1.38–1.4 billion (+44% YoY); adjusted EBITDA up 16%.

• Net income: R$599–600 million in Q2 2024 (+73% YoY); 6M24 net income R$917–970 million, reversing prior losses.

• CapEx: R$474 million in Q2 2024 (-15% YoY); 6M24 CapEx R$919 million (-12% YoY).

• Net debt: R$6.88–6.9 billion; leverage at 1.55–1.6x net debt/EBITDA.

• EBITDA margin improved to 31% in Q2 2024 from 21% in Q2 2023.

Outlook and guidance

• Focus on organic growth, operational improvements, and market selection, with inorganic growth via acquisitions like Compagas.

• Continued expansion in biomethane, LNG, and diversification of supply sources.

• Ongoing tariff review and regulatory cycles expected to support growth.

• Management confident in operational continuity, with no material uncertainties regarding going concern.