Release Date: March 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Light SA (LGSXY, Financial) successfully approved a court-mandated reorganization plan with the support of over 99% of creditors, leading to debt restructuring and cost reduction.
- The company reported a consolidated net income of BRL1.6 billion in 2024, reflecting significant financial recovery.
- Operational improvements led to a 40% increase in productivity among internalized field teams.
- The DEC and FEC indexes, measuring power interruption duration and frequency, remained below regulatory limits, indicating strong service quality.
- Light SA's cash position grew by 47% year-over-year, reaching BRL3.1 billion, strengthening its financial health.
Negative Points
- The energy generation and commercialization segment experienced a 14% decline in EBITDA due to reduced margins from less profitable contracts.
- The company faces challenges in addressing high levels of losses in its concession area, requiring structural solutions beyond current operational actions.
- Despite market growth, distributed generation captured part of the potential increase, limiting overall consumption growth.
- The company is still in the process of completing its judicial reorganization plan, with several steps pending, including a reverse auction and capital increase.
- Light SA's debt restructuring, while beneficial, still leaves the company with a significant net debt of BRL4.5 billion.
Q & A Highlights
Q: Can you provide details on the buyback process for Light Energia?
A: We are currently finalizing the documentation for what we refer to as a reverse auction. We aim to launch this process in April, shortly after publishing our results.
Q: Could you explain the adjustments made to reduce the debt from BRL7.4 billion to BRL6 billion? Were convertible debentures considered?
A: The reduction is due to an adjustment to the fair value, detailed in our financial statement with the rates. This is not related to the convertible debentures, which are valued at BRL2.3 billion in our presentation.
Q: What changes can we expect from the renewal contract in non-technical and risk areas?
A: The new contract includes guidelines from the Ministry of Mines and Energy, treating risk areas differently from non-risk areas. This change is significant for Light, providing more financial and economic sustainability and enabling investments in modernization and network renewal.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
