Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Energisa SA (BSP:ENGI11, Financial) reported a 13% growth in adjusted EBITDA and a 16.6% increase in net income compared to the same quarter last year.
- The company achieved its highest growth rate in energy distribution in 23 years, with an 11.2% increase.
- Energisa SA was recognized as one of the most innovative companies in Brazil by Valor Economico.
- The acquisition of Infra Gas, which holds a significant share in Norgas, is expected to enhance the company's presence in the gas distribution sector.
- The company announced a dividend payment of BRL157 million, representing a payout of 34.2% for the semester.
Negative Points
- The company faced a negative impact of BRL317.8 million on non-factor income due to seasonal behavior and temperature variations.
- Energy losses reached 12.94%, showing a slight increase compared to the previous quarter.
- The automotive segment in gas distribution was negatively impacted by incentives for liquid fuels.
- There was a negative BRL51.8 million non-cash flow effect from the commercializer e-com market.
- The company experienced an increase in expected losses with credit of liquidity doubtful, rising by BRL28.3 million compared to the previous year.
Q & A Highlights
Q: How will the potential changes in Infra Gas contracts affect the closing of the acquisition?
A: Fernando Maia, CEO, explained that the contract is legally binding and should not be altered. The company expects the state to maintain a favorable investment environment. The impact on rates is minimal, and the company is awaiting the state's decision to proceed with the closing.
Q: Can you discuss Energisa's capital allocation strategy for the coming years?
A: Ricardo Perez Botelho, CEO, stated that the focus remains on existing portfolio activities, with potential investments in expansion and acquisitions. The company is open to opportunities in transmission and distributed generation, with a keen interest in natural gas distribution.
Q: How does the company plan to manage the impact of manufacturing on cash flows?
A: Ricardo Perez Botelho explained that manufacturing impacts are due to provision effects and temperature variations. The company manages these impacts by looking at annual trends rather than quarterly fluctuations.
Q: What are the expectations for improving expenses to meet DEC and FEC quality levels?
A: Ricardo Perez Botelho mentioned that the resource allocation plan is well-calibrated to meet quality goals, with most companies already achieving targets.
Q: Are there any updates on regulatory measures to reduce rates and the renewal of concessions?
A: Ricardo Perez Botelho noted ongoing discussions with ANEEL and other entities. The company expects structural reductions to benefit distributors and anticipates further details on concession renewals by September or October.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
