Eneva (ENEV3) Q4 2024 earnings summary

Executive summary

• Achieved record adjusted EBITDA of R$1,243 million in Q4 2024, up 20% year-over-year, driven by strong operational performance, higher thermal dispatch, and new asset contributions.

• Completed major M&A, acquiring BTG's 859 MW thermal portfolio, and raised R$3.2 billion via follow-on, strengthening the balance sheet and reducing leverage.

• Commissioned Parnaíba VI, expanded gas liquefaction capacity, and launched SSLNG operations, enhancing long-term regulated revenue streams.

• Corporate structure simplified through mergers and integration of new assets, with a share buyback program approved to enhance shareholder value.

• Achieved best health and safety performance in a decade, with a >50% reduction in accident rates year-over-year.

Financial highlights

• Net operating revenue grew 12.8% year-over-year to R$11,387.5 million, driven by higher trading volumes, new gas sales, and asset acquisitions.

• Adjusted EBITDA (excluding impairment) reached R$1,243 million in Q4 2024, up 20% year-over-year; full-year adjusted EBITDA was R$4,536.3 million, up 5.9%.

• Net loss of R$963 million in Q4 2024, mainly due to a R$634.7 million non-cash impairment on coal assets and exchange rate variation.

• Operating cash flow was R$1,140 million in Q4 2024, with investment cash flow at R$1,583 million and financing inflow of R$2,186 million.

• Cash and equivalents at year-end were R$3.87 billion, up R$1.27 billion year-over-year.

Outlook and guidance

• Expecting improved results in 2025 with full contributions from Parnaíba VI, SSLNG plant, and new asset acquisitions.

• Focus on filling Sergipe Hub's capacity, expanding the thermal park, and developing a second gas hub.

• Ongoing investments in project execution, O&M excellence, and leadership development to support growth.

• LRCAP 2025 process and regulatory milestones underway, with expansion projects like Azulão 950 progressing.

• Studies in battery storage, CCUS, and biogas/biomethane to support energy transition.