Energisa (ENGI3) Q4 2024 earnings summary

Executive summary

• Celebrated 120 years with record results, robust diversification, and expansion in energy and gas sectors, emphasizing innovation, resilience, and stakeholder value.

• Achieved a 10-year net income CAGR of ~30% and a 526% increase in net income from 2014 to 2024.

• Recurrent adjusted consolidated EBITDA reached R$7.6 billion in 2024, up 8.1% year-over-year.

• Net income for 2024 was R$3.8 billion, a 100.1% increase compared to 2023.

• Investments reached R$6.8 billion, with strong operational performance in electricity distribution and significant growth in energy sales.

Financial highlights

• Recurring EBITDA grew 8.1% year-over-year to R$7.6 billion in 2024.

• Adjusted net income for 2024 reached R$2 billion, up 22.6% from 2023; unadjusted net income was R$3.8 billion, up 100% due to non-recurring items.

• Dividends distributed increased by 91.6% to R$1,325.7 million, with a payout ratio of 36.8%.

• Distributed generation arm reached 441 MWp capacity, with R$351.3 million invested in 2024.

• Non-recurring effects included a R$430.2 million negative impact from non-compensated distributed generation energy and R$458.2 million in positive tax credits.

Outlook and guidance

• Expects to complete early renewal of distribution concessions expiring 2028–2031 for an additional 30 years, supporting a new growth cycle.

• Strategic investments are focused on maximizing growth, with a 29% increase in power distribution investments and a 116% increase in holding company and other investments for 2024.

• Biometano plant (AGRIC) to begin commercial operations mid-2025, reinforcing commitment to sustainable solutions.

• Ongoing investments above regulatory depreciation to maintain operational excellence and support growth.

• Anticipates further expansion in distributed generation and gas segments.