Compass Gas e Energia (PASS3) Q3 2024 earnings summary

Executive summary

• Served 2.8 million clients and operated a 27,000 km network with 15.1 million m³/day distributed volume in 3Q24.

• Net revenue grew 13% year-over-year in 3Q24 to R$4.95 billion, with gross profit up 16% to R$1.03 billion.

• Achieved adjusted EBITDA of R$1.27 billion and recurring net profit of R$470 million in 3Q24; 9M24 EBITDA was R$3.54 billion.

• Net income for 9M24 was R$1,383.6 million, up from R$420.1 million in 9M23; 3Q24 net income was R$466.2 million.

• Major milestones include the start of TRSP operations and the acquisition of a controlling stake in Compagas.

Financial highlights

• Adjusted EBITDA reached R$1,270 million in 3Q24 (flat YoY); 9M24 EBITDA rose 11% to R$3,539 million.

• Recurring net profit was R$470 million in 3Q24, down 24% YoY; 9M24 net profit totaled R$1,375 million, down 3%.

• Net sales for 9M24 reached R$13,484.9 million; 3Q24 net sales were R$4,947.4 million.

• CAPEX for 3Q24 was R$535 million, down 8% YoY; 9M24 CAPEX was R$1,624 million, down 10%.

• Gross margin was 21% in 3Q24; EBITDA margin at 26%.

Outlook and guidance

• 2024 EBITDA guidance set at R$4,400–R$4,700 million; CAPEX guidance at R$2,000–R$2,300 million.

• Guidance reflects updated project pipeline, capital discipline, and regulatory investment plans.

• Management sees no material uncertainties regarding going concern and remains confident in operational continuity.

• Compagas acquisition and TRSP operationalization expected to strengthen market position.