Energisa (ENGI3) Q3 2024 earnings summary

Executive summary

• Net operating revenue excluding construction grew 10.6% year-over-year to R$6,919.3 million in 3Q24, with consolidated net income up 5.6% to R$727.1 million and adjusted recurrent net income up 2.3% to R$542.5 million.

• Achieved highest electricity market growth in 11 years, with Q3 2024 up 5.9% year-over-year and 8.7 million customers served.

• Expanded natural gas distribution, with a 108.7% increase in investments and completion of Infra Gás and Norgás acquisitions, reinforcing presence in Northeast Brazil.

• Investments rose 18.2% to R$1,827.3 million in 3Q24, focused on energy and gas distribution.

• Recognized as a top employer, with high workplace rankings and focus on cost efficiency, workforce engagement, and sustainability.

Financial highlights

• Adjusted recurring EBITDA reached R$1,830.9 million in 3Q24, down 13.5% year-over-year, mainly due to non-recurring and non-cash effects.

• Net income rose 5.6% year-over-year to R$727.1 million in 3Q24; adjusted recurring net income increased 2.3% to R$542.5 million.

• Net revenue (ex-construction) was R$6,919.3 million in 3Q24 (+10.6% YoY); R$19,587.2 million in 9M24 (+15.8% YoY).

• Net debt reached R$23,707.0 million as of September 2024; net debt/EBITDA (covenants) at 2.8x.

• Cash and equivalents stood at R$9,275.8 million at quarter-end.

Outlook and guidance

• Targeting R$24 billion in investments by 2026, with R$17.3 billion already invested by September 2024.

• Plans to reach 530 MWp in distributed generation and expand gas and biosolutions businesses.

• Ongoing efforts to renew distribution concessions and participate in new transmission auctions.

• Focus on operational efficiency, digitalization, and ESG commitments.

• ANEEL set Red Flag Level 2 for October and Yellow Flag for November 2024 due to hydrological conditions.