ISA Energía Brasil (ISAE4) Q4 2024 earnings summary

Executive summary

• Celebrated 25th anniversary, unified brand and ticker to ISAE3/ISAE4, and expanded to 18 states with 35 concessions.

• Achieved record net revenue of R$7,966.6 million (+28.2%) and consolidated profit of R$3,552.7 million (+22.8%), driven by RTP impact and operational performance.

• Record investments in modernization, retrofitting, and greenfield projects, with R$3,634.5 million CapEx in 2024 (+75.8%).

• Energized the Minuano project and advanced six major projects under construction, with R$8 billion in remaining investments and expected RAP of R$978.7 million for 2024/2025.

• Maintained robust shareholder remuneration, with a 75% payout ratio and 10.3% dividend yield.

Financial highlights

• Net operating revenue rose 28.2% to R$7,966.6 million; regulatory net revenue was R$4,557.0 million (+14.3%).

• Consolidated profit reached R$3,552.7 million (+22.8%); regulatory net income was R$2,076.6 million (+6.9%).

• EBITDA (IFRS) was R$5,168.7 million; regulatory EBITDA was R$3,541.0 million (+13.2%).

• Investments totaled R$3,634.5 million (+75.8%), with R$2,263.2 million in greenfield and R$1,371.4 million in retrofitting.

• Dividend payout was 75% of regulatory profit, totaling R$1,555.5 million.

Outlook and guidance

• Plans to invest R$13 billion in new transmission projects by 2029, with R$8 billion in greenfield and R$5.5 billion in retrofitting.

• Six major projects under construction to be energized by 2028, adding significant RAP and supporting grid expansion.

• Permitted Annual Revenue (RAP) for 2024/2025 cycle set at R$6,288.9 million, with 57% from renewed contracts.

• Dividend payout policy to maintain at least 75% of regulatory net income.