Q2 2024 CTEEP - Companhia de Transmissao de Energia Eletrica Paulista Earnings Call (English, Portuguese) Transcript
Key Points
- Cia de Transmissao de Energia Eletrica Paulista (BSP:TRPL10.PFD) reported a significant increase in financial performance, with net revenue growing by 24.7%, EBITDA by 29.7%, and net income by 62.9% in the second quarter of 2024.
- The company successfully raised BRL1 billion through its 16th issuance of debentures at a competitive cost, supporting its growth strategy.
- Investments in greenfield projects and retrofitting have been substantial, with a 69.6% increase in investments, ensuring long-term company longevity and asset reliability.
- The company maintains a strong credit rating, with Fitch reaffirming its AAA rating on a local scale, highlighting its predictable and inflation-protected revenue streams.
- Cia de Transmissao de Energia Eletrica Paulista (BSP:TRPL10.PFD) continues to focus on sustainable growth, balancing financial discipline with environmental and social impacts, and maintaining a minimum dividend payout of 75% of regulatory net income.
- The reduction in the economic component of the RBSE is expected to decrease revenues, with a 9% reduction in total RAP for Contract 059.
- The company faces challenges with the periodic tariff review process, which has led to adjustments and potential revenue reductions.
- There is uncertainty regarding the future financial impact of the RBSE, which is expected to end by 2029, necessitating strategic adjustments.
- The company decided not to participate in the September transmission auction, potentially missing out on new opportunities due to a focus on existing projects.
- The ongoing regulatory discussions and potential changes in indemnification values related to RBSE create uncertainty in future financial planning.
Good morning. Thank you very much for holding. Welcome to the earnings release call of the second quarter of 2024 for ISA CTEEP.
(Operator Instructions) We would like to let you know that we are being recorded and it will be provided in the IR company, www.isacteep.com.br/ri, where you can find the complete material of our earnings release. (Operator Instructions)
We would like to clarify that statements that may be made during this conference call, business prospects, forecasts, operational and financial goals are simply predictions based on the beliefs and assumptions of the executive company. These expectations highly depend on market characteristics, general economic status of the country, the industry and all international markets which are subject to changes.
Forward-looking statements are no guarantee of performance. They involve risks, uncertainties, and different assumptions because they refer to future events, therefore, depend on circumstances which may or may not occur. Investors should
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