Transmissora Aliança de Energia Elétrica (TAEE11) Q3 2024 earnings summary

Executive summary

• Strategic focus on growth, operational efficiency, and sustainability, with robust cost control and investments aligned to long-term planning.

• Stable operational performance in 3Q24, with high line availability and ongoing expansion, including four large projects under construction and new reinforcements.

• Key acquisition of Lot 3 (Juruá) in ANEEL's 2024 auction, with contract signing expected by December 2024, supporting future revenue and operational synergies.

• Major incorporations and project completions (Sant'Ana, Saíra, ATE III, Miracema) contributed to operational and financial results.

• Ongoing commitment to high dividend payouts, with BRL 600 million distributed YTD and BRL 230.5 million approved for Q3, payout scheduled for January 2025.

Financial highlights

• Q3 2024 regulatory net income down 5.9% YoY to BRL 307.3 million; nine-month cumulative up 2.2% to BRL 790.8 million.

• Q3 regulatory EBITDA down 1.2% YoY to BRL 486.7 million; margin at 82.3%.

• IFRS net income up 45% YoY in Q3 to BRL 409.3 million; nine-month IFRS net income up 34% YoY to BRL 1.2 billion.

• Adjusted regulatory EBITDA up 5.3% YoY in Q3, with margin at 84.1%.

• CAPEX for 9M24 was BRL 683.5 million, a 53.9% decrease YoY, reflecting project completions and lower indemnity payments.

Outlook and guidance

• CapEx for 2024 expected between BRL 900 million and BRL 1 billion; 2025 guidance at BRL 1.6–1.8 billion, with BRL 300–500 million for 2026.

• Dividend payout policy for 2024 at 75% of net regulatory income, with potential increase to 90–100% in 2025, subject to market conditions.

• Early completion and CAPEX efficiency expected for projects under construction, with several progressing ahead of ANEEL deadlines.

• Juruá project expected to achieve EBITDA margin above 90% and CAPEX efficiency greater than 25%.

• Ongoing focus on new growth opportunities, including capacity reserve biddings for battery storage.