Release Date: March 19, 2025
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 recurring EBITDA growth of 8% for the year, totaling BRL 7.6 million.
- The company successfully completed the acquisition of Norgas, contributing positively to the financial results.
- Energisa SA (BSP:ENGI11) achieved a significant increase in residential customer consumption, marking the highest rate in the last 18 years.
- The company has extended the average debt term to 5.7 years, showcasing effective debt management strategies.
- Energisa SA (BSP:ENGI11) continues to invest in sustainable energy solutions, expanding its portfolio in distributed generation and renewable sources.
Negative Points
- The company faced a negative impact of BRL 430.2 million due to non-compensated energy expenses.
- There was a decrease in EBITDA in the transmission segment due to reduced revenue and increased expenses.
- Energisa SA (BSP:ENGI11) experienced an increase in delinquency rates, with expected loss from doubtful accounts rising significantly.
- The company had to account for nonrecurring and non-cash effects, impacting the comparability of results.
- There was a reduction in revenue from termination charges and an increase in PMSO expenses, affecting overall financial performance.
Q & A Highlights
Q: Can you explain the provision of BRL 430 million related to distribution segments and how it affects future quarters?
A: Ricardo Perez Botelho, CEO: The provision relates to accumulated energy and low credit on distributed generation (GD). We don't have a detailed breakdown for each quarter, but most of it is recurring. Future provisions will be automatically adjusted in the tariff process, reflecting in future tariffs without additional provisions needed.
Q: How will future tariff processes work, and what should we expect regarding profit distributions?
A: Ricardo Perez Botelho, CEO: We maintain a minimum payout of 35%, and historically, it's been around 36.8%. We expect larger distributions due to proposed investments, but currently, distributions occur semi-annually. Future tariff adjustments will consider energy balance, reducing the need for additional resources.
Q: What is the perspective on new contracts and potential regulatory changes in the distribution segment?
A: Ricardo Perez Botelho, CEO: We are working on contract adjustments post-climate events in Sao Paulo, focusing on modernization and efficiency. Regulatory discussions are ongoing, and while no immediate changes are expected, we anticipate starting work on these adjustments soon.
Q: Can you elaborate on the regulatory changes regarding technical losses and their impact on Energisa's concessions?
A: Ricardo Perez Botelho, CEO: We previously adjusted technical loss calculations, but non-technical losses remain calculated as a percentage. We are working on incorporating energy transiting the network into these calculations. While we don't have exact figures yet, adjustments will be made retroactively to 2023.
Q: What are the expectations for future energy contracts and their impact on the company's operations?
A: Ricardo Perez Botelho, CEO: We are ready to sign new deals for the next 30 years, focusing on efficiency and modernization. We believe these contracts will enhance operational performance and align with regulatory requirements.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
