Good afternoon, ladies and gentlemen. Welcome to the conference call of Alupar to discuss the results for the first quarter of 2026. Audio and slides of this conference call are streamed simultaneously on our audio channel. The presentation is also available for download. We also inform that all participants will only be listening to the conference during presentations, and then we'll start a Q&A session.
Any predictions about future events are subject to risk and uncertainties, and therefore expectations may not come true, and they may be different from expected. These forecasts are the opinion for the date when they are made. The company is not obliged to update them. Present at this conference are Mr. José Luiz de Godoy Pereira, CFO of Alupar, and Mr. Luiz Coimbra, a customer relations officer of Alupar.
Now, I would like to give the floor to Mr. Luiz Coimbra, who will start the presentation. Please, Mr. Luiz, you can start.
Good afternoon, everyone. Thank you for being here in our conference call. We have prepared a presentation, highlighting five points. The first are the highlights for the first quarter of 2026, then we'll start about the evolution of our projects.
We'll talk about results for the first quarters, also talk about regulatory results, then results allocation, and finally, we will review the company's performance in the capital markets in the year- to- date. First highlight is approval of dividends that we had recommended at the AGM of the 5th of March. We have approved additional dividends as opposed to 2025, in the amount of BRL 0.03 per unit.
Now we had in our General Meeting approval of those dividends. Then we have a perspective showing how dividends will be distributed in 2025, and that was BRL 1.08 per unit. We had a payout above 50%, 50.8%. When you compare those dividends to the ones distributed in 2024, we can see an expressive growth.
We had distributed BRL 275 million, BRL 0.87 per unit. Now we're paying 29% more as compared to 2024 in 2025. Next slide, we highlight something we mentioned in the conference for the fourth quarter, but the financial settlement happened in February this year, and this, that is in our balance sheet. Just to remind, we have three projects ongoing in Brazil: TAPT, TAP, and TPC. TAPT was incorporated into TAPTIS.
This is for the funding of TAPT and TAP. BRL 2.45 billion were raised. The cost was NTN-B, 2040 minus 0.40%. We have raised in a very custom fashion with an amortization towards the end of the period. It was custom-made. Basically, it's important to highlight that in the debt market is complicated at this moment.
It had problems at the end of last year. It has improved a little now, so this fundraising we had gives us more security, and we have the TPC fundraising to do along this year because we don't have time to wait for the market to see how the market behaves. Next slide, we highlight our sustainability report for 2025. This was the sixth report published by the company.
The first was published in 2021. This is the second report where we bring external auditing, independent external auditing, reviewing the document. What's different about this one is that it had its matrix reviewed. We had a contribution of more than 250 stakeholders, including sector agents, suppliers, collaborators, and investors.
The report has four main highlights. First, the delivery of strategic assets in 2025. Just to remind you, we have delivered the TCA, our first asset in Colombia for transmission. We delivered TNE, a very strategic asset, and also out in the Baixada Santista region. That's very important for the company as well. The report also brings some of the expansion of our generation portfolio and projects in both Brazil and Latin America. It shows the financial evolution for 2025.
Finally, it shows, it has an agenda showing advancements in governance, risk management, and ESG practices. In the next slide, we have a different session where we talk about the evolution of our project implementation. There are four axes we are working in. Regarding land, we have advancements, especially in TPC.
It has advanced 65% of contracts, and now we reached 91%. In licensing, we didn't have significant advances, but everything is advancing according to our schedule. Also, we have license issued for TAPT and TCN. Everything within our schedule, but also didn't have many improvements in contracting. Finally, we have specific construction progress. We have advanced in TCN.
In the 4th trimester of 2025, we had 28%, and the other project that advanced significantly was TECP, which has 31.6% of advancement. We had 28% in the previous quarter, so we have a significant advance in the second phase. We are at 28.6% concluded, and the project is phased.
Every time a phase is completed, we have the right to receive revenue. When we complete phase II, we will have the right to receive 22% of the project proceeds, totaling around BRL 18 million. Just to remind you, phase I, we advanced and anticipated it in 11 months. We delivered in the 3rd quarter of 2025. It had a revenue of BRL 16.9 million.
With that money, we had an improvement above what was expected in our planning. Next slide, we have the evolution of regulatory results. Revenue grows 16.3%. We leave BRL 857.5 million in the first quarter of 2025 to BRL 996.8 in the first quarter of 2026.
The three main impacts was a variation in the transmission industry with BRL 102 million in the sector. We had a readjustment of 5.32% of VCA contracts and 7.02% in contracts with IGP-M. We also had the commercial operation of TCN and also the start of commercial operations of ELTE, the north sector starting July 2025 and R&B in May 2025.
Besides above, revenue, there was also a growth in revenue in about BRL 145 million in Brazil and in Peru. There was an increase in price in the spot market. We had an average in the quarter of BRL 310 per megawatt hour and BRL 160 megawatt hour for the same period last year.
We settled a great part of that at those price levels. In Peru, the same movement happened. The price in the spot market there is $35-$40. Now talking about EBITDA, it was BRL 794.7 billion this year, this quarter, sorry. Variations, the first is evidence. It's BRL 102 million in the transmission and BRL 44 million in energy supply.
There was an increase of 17.2% in general and administrative account. We had two impacts here. The first, TCE, with the asset in operation, we have expenses now. We have BRL 5.2 million due to the start of operations of TCE, we have BRL 9 million in Alupar Holding, which was non-recurrent in the first quarter of 2025.
We had an accounting low of things that were closed that period, we had a positive of BRL 2 million the first quarter of 2025, and now we have an expense around BRL 7 million. If you look at the personnel and administrators account, we had the start of operations of TCE.
We also had incorporation since the third quarter last year of TBO, an asset we bought from Rialma and also we had an increase in south side Brazil , due to demand in this current growth cycle we're going through. Finally, I'd like to highlight the variation in the account of other revenues and expenses we had in the first quarter of last year.
A low accounting for last year. We had expenses there, we didn't have this quarter. The total was BRL 148.9 million of net income against BRL 140.1 million we had for the first quarter of 2025. That's a growth of 6.3%. Both ends I'd like to highlight here. There was a depreciation that grew due to the start of operations of some assets.
The financial results, it's important to highlight we had an increase of BRL 28 million in this account. As we have some projects outside Brazil, we have a currency exchange variation also in our expenses. In this quarter, we accounted a negative amount of BRL 20 million because the Peruvian currency lost value against the dollar.
In the first quarter last year, we had a positive amount of almost BRL 18 million because there was a valuation of the Peruvian currency as against the dollar. We have BRL 28 million variation in financial results, BRL 28 million due to currency exchange variations. In taxes, we also had an increase from BRL 35.7 million we had along last year, some financial benefits in TAPT and TPIN. This first quarter, we have higher tax burden than last year.
Now talking about company corporate results. Besides the specific issue of IRS in revenue, just the big difference we have here, when we look at revenue, it grew a lot less than in regulatory numbers from BRL 1,223- BRL 1,225. What we had here in monetary correction of concession asset is a sub-account for monetary correction of the asset.
As in this tri-trimester, we had negative IGP-M of 0.33% and positive IGP-M of 29% in the first quarter last year. The account is reverted. That's the third column here. This is the impact on EBITDA, a number we carry to our profit and reduces the level therefore. Next slide, we have debt profile for the holding company. We still have the same debt. It's our eighth debenture issuance.
It is due 2034. It's a long debt. 3% only will be due in the short term. The cost is IPCA plus 3%. We have hedged it. The total for this quarter was BRL 915 million. We closed cash and cash equivalents at BRL 1.116 Billion . We have more cash than debt here of BRL 202 million.
This number is a little lower as compared to the fourth quarter. We had relevant dividend payment in the beginning of this year. Next slide, you can see debt profile of the consolidated debt. It was a total of BRL 14.549 billion . Our cash and position was BRL 5.246 million . We have a debt of BRL 9.304 billion .
Basically, this is in the debt profile. When we look at the indexing of the debt in IPCA, we had about 50%-52% of debt in IPCA and about 30% of the debt in CDI. As we had that fundraising in the beginning of the year, we had something in IPCA. The volume was drawn there.
We have 64% of the debt in IPCA and 21.4% in CDI. Another important point when we talk about leveraging for this trimester, it was 3.2% of net debt. That's a reduction as compared to the same period last year, where we had 3.4%. Now, results allocation.
We had our board meeting, and it was recommended and approved to distribute interim dividends for the first quarter of 2026. We will be paying BRL 69.2 million, about BRL 0.21 per unit. These dividends will be received by shareholders that are on our bases on the 14th of May.
Our policy for payment is within 60 days of approval. The deadline was yesterday for that. Now showing the company performance against key market indices. Along the year, our shares have had an appreciation of 920.26%. I would highlight here an average of daily volume for this year. It reached BRL 32.9 billion for 2026, a growth at 19.7% as compared to the BRL 27.5 billion last year.
With that, I close my presentation, and we can continue to the Q&A session. Thank you.
Now we will start our Q&A session for investors and analysts. To ask a question by audio, click Raise Hand. If your question is answered or you wish to leave the queue, just lower your hand. Also, you can send written questions in the Q&A icon below. Please wait while we collect your questions. Our first question is from Ricardo Bello from Safra.
Good afternoon. I'd like to ask a question about what you see about the public audience of CVaR, risk behaviors, and how you see the impact, potential impact in the price curve, and effects for the marketer. Also about the 2Q, what are your perspectives, the prospects you can share with us?
Good afternoon. Thank you for your question. About CEVA, there's pressure on the part of some marketers that were at a short position, betting on a low price for the long run, and great pressure to change the CEVA rules.
It's hard to say what's going to happen, but I think if we analyze the current setting of reservoirs and we look at CEVA the way it was, we would be in a very critical situation nowadays considering the possibility that's very, very likely that El Niño will come very strongly in the second semester. You can imagine the situation of our reservoirs in this period. I think changing CEVA would be running unnecessary risks and that if it's kept the way it's calculated today, I think there's a trend for higher prices, surely, because of the structure of this system.
You can see that in our CapEx auction, the cheapest CVaR is BRL 800. This is the cheapest there is. We will have lots of changes in the future. We also evaluated the costs of wind energy to create a wind plant. Nowadays, costs have raised a lot, I think prices will just go up, this is still a very punctual perception without knowing exactly what's going to be decided.
Second question, you asked about curtailment. It's very hard to predict that. There are many variations. Theoretically, the second quarter, if you look at retrospect of curtailment, it's slower, basically because there's a reduction in the generation in the north market, which will allow for a greater supply of energy from the northeast.
That will reduce a lot in the second semester, but that's very regional. You have a general thing, but each locality and point of access may have higher or lower curtailment depending on the electricity status at that point in time.
Okay, thank you.
Next question is from Lorena Fernandes from Itaú.
Congratulations on your solid results. What's the strategy for auctions outside Brazil, such as in Peru and Chile this year, considering the company's moment? Is there an interest in looking at the battery auction?
Yes, there is interest. There's a lot of synergy with our strategy. Auctions outside Brazil, it's hard to know because we must see what actually will come out, what will interest us. I still don't have that vision nowadays.
We have many projects to put in practice to execute, so we have to be careful about leveraging vis-à-vis our return. That's both for foreign and Brazilian auctions.
Again, to ask questions, please click raise hand. If you wish to send a written question, click on the Q&A icon and type your name and company along with the question. Please wait while we get your questions. The next question is from Felipe Tobias.
Good afternoon. Recent drops in the USD against the BRL, do they influence the company's capital expenditure or investments in Chile, Colombia, and Peru, or will the CapEx be financed by debt in foreign currency?
Well, we are a very conservative company, so we don't work with that marriage of indexing. If our revenue is dollarized, we will raise funds in USD.
If our revenue is in reais, we will fundraise in reais. That's both for CapEx in US dollars and cost of debt as well. We see some of our competitors, sometimes they consider reductions in debt, betting in interest rates and sometimes currency as well. We don't work like that.
We are a fund, hedge fund that operates short and long in currency, inflation, interest rates. We always work everything together. If it's in dollars, revenue in dollars, debt in dollars. In reais, debt in reais, revenue in PEN, debt in PEN, and so on.
Thank you. We're ending now our Q&A session, and we give the floor to Mr. José Luiz for his final remarks of the company.
I'd like to thank everyone for participating in another earnings call of our company. We are at your disposal. If you are interested, we are always open to welcome you and talk to you. Good afternoon. See you next time.
The conference call of Alupar is closed. I thank everyone for your participation and wish you a good afternoon.