Eneva (ENEV3) Q4 2024 earnings summary

Executive summary

• Achieved record adjusted EBITDA of R$1,243 million in 4Q24, up 20% year-over-year, driven by higher thermal dispatch, new asset contributions, and strong operational execution.

• Gross generation from thermal plants grew 98% compared to 4Q23, reflecting full dispatch and M&A activity.

• Completed major M&A, acquiring BTG's thermal assets and adding 859 MW capacity, with a successful follow-on raising R$3.2 billion to strengthen the balance sheet.

• Commissioned Parnaíba VI and expanded gas liquefaction capacity, with all-time best health and safety performance.

• Share buyback program approved to enhance shareholder value and efficient capital allocation.

Financial highlights

• Adjusted EBITDA reached a record R$1,243 million in 4Q24, a 20% increase over 4Q23, excluding coal impairment.

• Net loss of R$962.6 million in 4Q24, mainly due to a R$634.7 million impairment on coal assets and exchange rate variation; underlying net income would have been positive after adjusting for one-offs.

• Operating cash flow was R$1,139.9 million, with investment cash flow at R$1,124 million and financing inflow of R$3.2 billion, resulting in a robust cash position of R$3,866 million at year-end.

• Net debt reduced to R$13.5 billion, with net debt/EBITDA at 2.42x (2.18x ex-impairment), and average debt maturity of six years.

• EBITDA margin (ex-impairment) at 25.5% in 4Q24, down from 38.0% in 4Q23.

Outlook and guidance

• EBITDA expected to increase in 2025 with full-year contribution from acquired assets, Parnaíba VI, and SSLNG plant ramp-up.

• Market conditions in early 2025 indicate rising energy prices due to unfavorable hydrology, supporting higher thermal generation and trading margins.

• Ongoing expansion projects, including Azulão 950 and new gas hubs, are progressing on schedule, with commissioning milestones set for 2026 and 2027.

• LRCAP 2025 process underway, presenting significant opportunities for thermal and renewable assets.

• Share buyback program for up to 50 million shares approved in January 2025.