Energisa (ENGI3) Q4 2024 earnings summary

Executive summary

• Celebrated 120 years of operations, emphasizing resilience, innovation, and long-term value creation, with a focus on energy transition and diversification into natural gas and biomethane markets.

• Achieved record parent company net income of R$3.789.7 million in 2024, up 100.1% year-over-year, and consolidated net income of R$4.636.3 million, up 79.5%.

• Recurrent adjusted consolidated EBITDA reached R$7.631.5 million in 2024, up 8.1% year-over-year.

• Investments totaled R$6.772 billion in 2024, up 12.5%, with a focus on distribution, transmission, and gas expansion.

• Energy sales grew 7.6% year-over-year, the highest rate in 12 years, driven by high temperatures and industrial demand.

Financial highlights

• Gross operating revenue reached R$46.250.9 million, up 15.8% year-over-year.

• Adjusted recurring EBITDA for 2024 was R$7.631.5 million (+8.1% YoY); Q4 2024 EBITDA was R$1.905.4 million, down 7.9% due to non-recurring effects.

• Net debt stood at R$24.99 billion, with a net debt/EBITDA ratio of 3.0x at year-end.

• Dividend distribution of R$2.90 per Unit for 2024, with R$868.5 million approved for payment in March 2025.

• Non-recurring items included R$1.1 billion positive from deferred assets, R$458 million from tax credits, and R$430 million negative from distributed generation provisions.

Outlook and guidance

• Early renewal of distribution concessions expected to be finalized in 2025, extending contracts by 30 years and securing long-term regulatory stability.

• Continued focus on diversification, with expansion in gas, renewables, and digital energy solutions, including biomethane operations (AGRIC) to commence by mid-2025.

• Investment guidance remains robust, with R$19.3 billion invested by end-2024 toward a R$24 billion target by 2026.

• ESG commitments on track, with early completion of thermal plant decommissioning and renewable capacity expansion.