Energisa (ENGI3) Q2 2024 earnings summary

Executive summary

• Adjusted recurring EBITDA rose 13.2% to R$1,658.3 million in Q2 2024, with adjusted net income up 16.6% to R$377.6 million; consolidated net income was R$655 million, stable year-over-year.

• Energy sales grew 11.2% year-over-year, the highest Q2 rate in 23 years, with all nine concessions reporting growth and strong demand across residential and industrial classes.

• Strategic expansion included the acquisition of Infra Gás (pending closing), new distributed generation plants, and early completion of key transmission projects.

• Investments in Q2 2024 totaled R$1,591.7 million, down 8.1% year-over-year, mainly due to lower transmission and distributed generation capex.

• Recognized for innovation and employee empowerment, ranking among Brazil's most innovative companies for 10 consecutive years.

Financial highlights

• Net operating revenue (excluding construction) reached R$6,038.2 million in Q2 2024, up 14.3% year-over-year.

• Adjusted recurring EBITDA was R$1,658.3 million (+13.2% YoY); adjusted net income was R$377.6 million (+16.6% YoY); consolidated net income was R$655 million (-0.3% YoY).

• Dividend payout for Q2 2024 was R$457.1 million (32.5% payout ratio); interim dividends approved for August 2024.

• Net debt stood at R$23,447.8 million as of June 2024, with a net debt/EBITDA ratio of 2.7x.

• Operating cash flow in H1 2024 was R$3,892.6 million, up 31.5% year-over-year.

Outlook and guidance

• Management expects continued growth in energy demand, supported by economic activity and higher temperatures.

• Ongoing focus on operational efficiency, digitalization, and expansion in distributed generation and gas businesses.

• Targeting BRL 6 billion in investments for 2024, with guidance and ESG commitments on track for 2026.

• RAP for transmission concessions adjusted by 3.92% from July 2024 to June 2025.

• ANEEL triggered the Yellow Flag Tier for July and Green Flag for August 2024, reflecting hydrological conditions.