Good afternoon, ladies and gentlemen. Welcome to Alupar's conference call to discuss the results for the third quarter of 2026. The audio and slides for this conference are being broadcast simultaneously with live interpretation service, which can be accessed via the interpretation icon below. To follow in English, please click the interpretation icon in the bottom menu of your screen and select English. If you prefer to hear only the interpreter, please select the option to mute original audio. The presentation is also available for download. Please note that all participants will be in listen-only mode during the presentation, followed by a Q&A session. Please be advised that forward-looking statements regarding future events are subject to risk and uncertainties, which may cause actual results to differ from those expected.
These statements reflect the company's views only as of the date they are made, and the company assumes no obligation to update them. Joining us for this conference call are Mr. José Luiz Godoy Pereira, CFO of Alupar, and Mr. Luiz Coimbra, Director of Investor Relations at Alupar. I would now like to hand the floor over to Mr. Luiz Coimbra to begin the presentation. Please, Mr. Luiz, you have the floor.
Good afternoon, everyone. Thank you for being in our conference call for the third quarter of this year. We have an agenda here with five different topics. I'll start with the highlights of our quarter, the third quarter, then I'll talk about project status, and then we are going to analyze regulatory and company framework. Later, we are going to talk about results allocation and also review company performance in capital markets.
In the next slide, you can see our first highlight is an auction we won in the latest auction in Chile. We announced it on Tuesday this week. It contemplates two new substations with 21 km of extension located in the south of Santiago. This project is $11.9 million in CAPEX of $85 million, and energization predicted for 2031. With this project, now we have three projects under implementation in Chile. The following slide, I show another highlight, our advancements in the implementation of another project, a project in Peru called Puno Sur. We had environmental license issued in September. It is equivalent to our installation license, so now we can start implementing the project. The project includes a new substation and 9.5 km of line extension, $1.9 million of RAP, and CAPEX at $11.5 million.
This project is part of a lot we won, including also Maravilla, which is a substation. So both projects together in this lot have a CAPEX of $20 million and associated RAP of $32 million. The following slide, you can see the dividends approved for the second quarter this year. We pay around 60 days after approval, so we paid this interim dividends on the October 2nd. We paid BRL 69.2 million, equivalent to BRL 0.21 per unit. The shareholders who received these dividends were the ones registered in the company's database on the August 13th. Going on, the next session, we have a little of the evolution, the status of our projects under construction now. Starting with land, we had two projects with advancements. The first of them is the TCN. It had 85% of the areas acquired, and now we are at 94%.
The areas of the substation we have had since the previous quarter, 100% acquired. Another project with advancement is TEP, Palca, advancing at 25% in substation land. When we look at our advances in the Puno Sur project, the one I mentioned before in Peru, it is one of our highlights for September. If we talk about construction projects, the most significant advancement was in three projects. The first is TCN, which was at 79% in the second quarter, and now we are at 85%. We also advanced in TEP, which had installation license issued in July. We started implementing this project, and it is at 13% advancement. Finally, Maravilla, which is part of the Puno Sur lot. We received the installation license in May, and the project closed the trimester now with 15% of advancement. We are also opening three RBNIs, reinforcing existing projects.
One is EATE, the other in ENTE and ETVG. The three RBNIs total a CAPEX around BRL 480 million, with associated RAP of BRL 74 million. Some projects are going to start operating at the end of the year, and the others during next year. The following slide, you are going to see regulatory numbers starting with revenue. It increased 9.2%, highlighting two main points. The first of them is a readjustment of RAPs. in 2026, we had an adjustment of 472 for index contracts in IPCA, and an adjustment of 95 for contracts index in IGP-M, and it is valid starting in July. Another important point here is the start of commercial operations of TCE. It is our first transmission asset in Colombia, and it started operating in October last year, adding BRL 45 million to our revenue.
When we look at EBITDA, I am going to highlight here that it goes from BRL 743 million- BRL 773 million. The main highlights is that the first increase by BRL 92 million that I just mentioned, and another impact important is the reduction in BRL 37 million in our equity equivalence. The only one that is not consolidated by the company is TNE. It started operating on the September 16th last year, and we had 14 days last year, and now in this quarter, it has been operating. So we transited all financial expenses to this quarter and had a lower result as compared to the same period last year. Profit went from BRL 219.8 million- BRL 214 million. We had an improvement in financial results from BRL 31.8 million.
62% of our debt is indexed by the IPCA, and IPCA had deflation this quarter of 0.9%, and the same period last year, we had inflation of 0.39%, so we had a reduction in our financial expenses in this quarter. I will also talk about income taxes. We had an increase of BRL 41.5 million in our income tax with a general improvement in the results of our transmitters. It was larger than the numbers for the third quarter last year, and we also had the due date, the expiration of our tax benefit of two transmitters in the group in the fourth quarter last year, and we had a rate that was higher for taxes in this quarter as compared to the same period last year. The following slide, you will see corporate results in IFRS.
Revenue increased by 22.1%, an increase in infrastructure revenue of BRL 242 million, BRL 153 million due to investments in Brazilian projects, BRL 69 million due to investments in foreign projects, especially Peru, and BRL 28 million in the implementation of reinforcements of the three assets I mentioned before. Also, we had the start of operations of TCE, which contributed with BRL 45 million in this account. When we look at EBITDA, it goes from BRL 984 million- BRL 527.3 million. The main highlights here is an increase in revenue, as explained. Also, an increase of BRL 334 million in infrastructure costs due to investments in implementation projects and reinforcements. The most important account here is this reduction of BRL 317.9 million in equity equivalence. The only asset we consolidate is TNE, and in the third quarter last year, it had a non-recurrent effect.
We had the results of arbitration, defining a new revenue, an extension of the concession term, and our result, our revenue in that third quarter last year was higher, so it is a non-recurrent event. This year, it is stabilized. When we look at profit, it goes from BRL 489 million- BRL 133 million, basically a reduction due to the reduction in the EBITDA of BRL 457 million. Also, we have the debt profile of our holding company, no changes. We still have the eighth issuing of debentures, balance of BRL 930 million. The holding closed the quarter with cash at BRL 424 million net debt. Next slide, we have consolidated debt. The profile compared to the second quarter of this year, most of our debt is indexed by IPCA.
We have 62% of our debt indexed by this number, by IPCA, with 22% and 14% of the debt indexed in foreign currency in the projects we are executing. We close with a total debt consolidated at BRL 15 billion and BRL 168 million, and cash portion of BRL 5,467 million. Our net debt. Yesterday, we have approved the interim dividends allocation. For this quarter, BRL 69.2 million, the same amount paid in the interim dividends of the second quarter. We will be paying within 60 days to shareholders who are on our database on November 12th this year. Finally, we have the evolution of company performance in the capital markets. The year-to-date, Alupar's shares are valued by 2.64%, and the IEE, Electric Energy Index, is devaluated at 3.24%. Another point I highlight is the increase we have been able to achieve in average financial volume for negotiations.
Comparing this year to last year, we have an increase by 29.5%, an average daily negotiation of BRL 36.4 million. Thus, I close my presentation, and we can continue to the Q&A session. Thank you.
We will now start our Q&A session for investors and analysts. If you wish to ask any questions, please press the button "raise hand." If your question is answered, you may leave the queue by clicking "lower hand." To submit questions in writing, please use the Q&A icon and provide your name, company, and question. Our first question is from Mr. Ricardo Bello from Safra. Please, Ricardo, you may proceed.
Good afternoon. Thank you for answering my question. I have three points to highlight here. First, can you talk a little more about the asset you acquired in the Chilean auction? Also, potential optimizations in the CAPEX and possible potential synergies. If you are looking at this, how do you see competitive environment in Latin America if you are participating in other auctions in Latin America, and how your appetite is for the battery auction next month?
A specific return rate, we do not usually give this guidance to the market, but I think each of you can calculate. We have shown the data about the auction, the main CAPEX, and our RAP numbers, so you can calculate based on that. Also about Latin America, what happens is, I think this auction in Chile is an example of what happens. The lots are very small there, very different from here, where we have great scale. Since we have many assets in all these countries, we reach great synergies and can be competitive.
But if we were to bid on this lot only, 10 lots were auctioned, and we won just one. So competition is even higher than here. Companies such as ACCIONA, ACS also is participating there for a long time. Ferrovial, Transelec as well is the greatest transmitter in Chile. So competition is very similar and even a little greater because you have more international players' participation, and the players that we have here as well. ENGIE is All these players sent bids. So if we had not had some scale in these countries and infrastructure, especially because we are executing several EPCs, several constructions at the same time, we can dilute the construction costs for those assets, and that allowed us to be more competitive in this project.
Next question is from Mr. Vitor Sousa from Genial. Vitor, you may proceed. Our next question is in writing from Ms. Lorena Fernandez from Itaú. "Given the Brazilian macroeconomic scenario and greater competitivity in transmission auctions, does the company see opportunities in Latin America as more attractive, also because of potential revenues indexed by the U.S. dollar?"
If you consider revenues indexed by U.S. dollar, you calculate the capital cost to the country as well. In Brazil, we have cost of revenues indexed by the Brazilian real. We never run risk in terms of currency. It is always indexed in capital costs in the given currency. So I think there is not a great difference. Here, we bid, and capital cost tends to be higher. You also asked about the auction here specifically. The companies that won the last auction here, more relevantly, were Spanish companies, Cymi and Celeo, and also ENGIE. I think ENGIE also won a lot. So companies from Europe bidded. All of them bidded in the same auctions we bidded. So they also calculate their capital costs for each country indexed by the capital cost and the current cost of debt in each country indexed by local currency.
Please wait. We are collecting more questions. The Q&A session is closed. We would like to hand over to Mr. José Luiz for the company's closing remarks.
Well, again, I would like to thank you all for participating in our results call, and also, again, saying that the company is at your disposal if you would like to know more about the company and understand our strategies, our business. Our team is at your disposal. Have a good afternoon and see you next time.
Alupar conference call is closed. Thank you all for participating and have a good afternoon.