Engie Brasil Energia (EGIE3) Q4 2024 earnings summary

Executive summary

• Achieved strong operational and financial results in 2024, with early entry into new projects such as Assú Sol and Serra do Assuruá, expanding renewable capacity and installed base to 9.6 GW.

• Gross energy production increased 24% year-over-year, mainly from hydropower and wind, despite curtailment impacts.

• Recognized for sustainability, joining the Dow Jones Sustainability Emerging Markets Index and Corporate Knights Global 100 ranking.

• Fitch reaffirmed national AAA and international BB+/BBB- ratings, all with stable outlook.

Financial highlights

• Net operating revenue rose 4.4% year-over-year to R$11,219 million in 2024.

• Adjusted EBITDA grew 1.3% to R$7,367 million, with a margin of 65.7%.

• Net income for 2024 reached R$4,303 million, up 25.5% year-over-year, mainly due to non-recurring gains from the sale of a TAG stake.

• Adjusted net income was R$3,372 million, down 1.4% from 2023.

• Net debt rose 31.2% to R$20,126 million, with net debt/EBITDA at 2.7x.

Outlook and guidance

• R$8.5 billion in investments committed for 2025-2027, focused on renewable generation and transmission expansion.

• Full commercial operation of Serra do Assuruá and Assú Sol expected in 2025, further increasing renewable capacity.

• Maintains a minimum dividend payout policy of 55%, with 2024 dividend yield at 5.6%.

• Expects leverage to temporarily exceed 3x net debt/EBITDA but remain below 3.5x, in line with growth strategy.