Good morning, ladies and gentlemen. Please welcome all to the call on results regarding the Q4 2024. This conference is being recorded, and the replay will be accessed through our website. The presentation is also available for download on the company's website. We inform all participants that after the presentation, we will start the Q&A session. More information will be given in the beginning of the Q&A. Before we proceed, we would like to reinforce that any forward-looking statements are based on the current information that is available to the company. These statements might involve risks and uncertainties. They are related to future events. Therefore, they will depend on circumstances and might happen or not.
Investors, analysts, and journalists should take into consideration that any kind of macroeconomic environment understanding to the segment and other factors might impact the results than what is expressed in the presentation. In this teleconference, we have Mr. Fabio Zanfelice, CEO from Auren, and Mr. Mateus Ferreira, CFO and Investor Relations. The Investor Relations team is also present. I would now like to pass the floor to Mr. Fabio Zanfelice, who will begin our presentation. Mr. Zanfelice, you may start.
Thank you. Good morning, ladies and gentlemen. I thank you all for participation and your availability for our results call. It is important for all of us, after closing our Q4 2024, to present our results to you. This is today's agenda, a different topic that we will discuss so let us start with the 4Q24 highlights.
We, of course, will start with a quarter that has closed the year of 2024. The main news is the beginning of a new chapter for the company after we completed the acquisition of AES Brasil, the third largest generation company in Brazil with an installed capacity of 8.8 gigawatts and a balanced portfolio. In these last two months, in 2024, given that the conclusion of a transaction happened on October 31st, 2024, in these last two months, November and December, we were already able to capture BRL 43.5 million in synergies in this transaction. Considering these values, we reached BRL 250 million in values, and the company therefore continues to advance in capturing and optimizing resources in 2025.
Also important in these last two months of the year, we had a great dedication of our team in operations to recover the improvement of the acquired assets, especially from Eólico Brasil, as we had highlighted when we did the acquisition of AES, so this is an important part, which is the performance recovery plan of our wind assets, and this was in a short period of time of only two months. Another important highlight is the successful management of our capital structure management. We have reached important economies with BRL 2.5 billion in the debentures and a competitive all-in, with a CDI plus 0.6%. We have also renegotiated a structure that we had with AES had with Itaú in terms of a remuneration of the second part with a CDI without spread, and I guess Matheus will give you more details on this transaction.
We also reinforced our position in the leadership with 6.2 average gigawatts of energy traded in all different market segments, especially in retail, with the acquisition of AES and Esfera, with our initiative of a joint venture with Global Energia, with an important result in the segment with BRL 202 million EBITDA in 2024. And in the same year, throughout 2024, we negotiated energy for future delivery, reaching a market value of BRL 302 million. Therefore, this trading activity in 2024, for the year and for the following years, BRL 500 million in EBITDA. The financial highlights, therefore, adjusted EBITDA of BRL 889.8 million, closing with BRL 3.3 billion, with a very important cash conversion of 59% of the quarter, reinforcing the company's cash generation and delivery capacity, with a very important leveraging for the future end of the company. We have BRL 272 million of net income.
On the next slide, we will talk a little bit about the energy market. We always talk about our reservoirs. I'm sure you follow this throughout 2024. In the first three quarters, we had an important hydro recession. 2024, it was the worst hydro generation. That was the greatest hydro crisis we had in the electric market. We have almost 17% gigawatts below our production, and in 2023, it was 1 gigawatt above the average, the annual average, showing how important it is, the power or hydro generation in 2024, so then in December 2023, we had a storage level of 67%. We reached 75% in May, and we reached a strong reduction throughout the year, and with an improvement of our hydro power in 2024, we reached 53% at a storage level in December 2024, so it was a challenging year in terms of hydro generation.
On the next slide, we'll talk a little bit about our energy load. It's very important in terms of consumption. The average was in the interconnected system. Highlight here for the residential area was 7.1%, and this, of course, is the gross residential consumption. Most of this consumption was met by distributed energy. The last quarter showing an increase of 1% with regards to the Q4 of 2023, reflecting the lower temperature that in November-December was less warm than in the last months of 2023. On the next slide, a little bit about the generation performance and the PLD evolution. As I said, in 2024, we had an unfavorable hydrological scenario throughout 2024, with an increase of the PLD in the Q4. This started in August, gaining traction in September, and in the last quarter, we reached approximately with a PLD of BRL 270 per megawatt hour.
The dispatch was higher than what we observed in the previous year, or in the quarter closed with a thermal power dispatch against nine gigawatts in the previous year. This had a hydro power decrease, impacting the curtailment of the quarter due to the competition with other renewable source energy generation. In time, you can see three points that we believe are the main reasons for the curtailment that is a bit different than what we saw in the previous years. As you can probably understand, and this is something that is discussed in the media, the Q4 was highlighted by a delay in the commissioning of transmission lines, also an increase in wind and solar capacity entering operation. All this has impacted the performance of wind and solar, and the curtailment was a bit higher than what we observed in 2023.
However, as we can see here in this chart, the greatest impact happened on the Q3 of 2024. The detail here of the Q4 is that with the increase of PLD, the wholesale price of electricity, which sells energy in the free market or in the free energy market, part of the energy that was curtailed by the operation of the system will have to be acquired at another period than in the previous months. On the next slide, with regards to our operational performance, we are now presenting our general portfolio with now 8.8 gigawatts of installed capacity, 54% in hydro assets, 33% in wind, and 10% in solar and photovoltaic assets.
These assets are distributed in 39 sites and nine states of Brazil, very well distributed with a concentration of the hydro power in the southeast part of Brazil and wind more in the northeastern part, as you all very know. On the following slide, we will talk about the performance of hydroelectric assets. As we said previously, it was a challenging year in terms of the hydrology, and this impacted in one way or the other our generation here at GSF, closing with 80% of the physical guarantee. It would be in 2023, a comparison with 2023. We had a better performance than the rest of the sector in terms of our physical guarantee and with an availability of 96% against 93% in the NEO reference. On the following slide, we present the wind assets performance, and here in detail, there's lots of information here on this page.
On the last quarter, we had a generation of 1.2 gigawatts in average, with a growth of 15% with regards to the same quarter in 2023, due to the fact that we entered into operation with the wind farms or complex of Tupi and Cajuí. And as you see here on this chart, we can see an average availability compared with comparison between the two semesters. This is a consolidated portfolio that are the original Auren plus the assets that we received from AES. And our generation, our verified generation, excluding the curtailment, is in 90% in P90. We also can show here in this chart the vision of what will be the generation if we did not have a curtailment.
So we are able to show that the potential generation that we have, which is the executed plus what was curtailed, we would reach more than 100% of the P90 on the Q4. So this would be the same figure if we observed the same generation for the year of 2024. Therefore, if we didn't have a curtailment, we would have performed very close or with the same number as the physical guarantee of all its assets, consolidated assets. On the following slide, we have the improvement of our operational performance and that we're even improved with AES, an important advancement in the availability. We have increased at 2.5 percentage points with regards to the same quarter of 2023. And the highlight here for the greatest assets that had a greater availability with a better availability.
You can see here in terms of TETS. Mandacaru is an asset that allowed us to have a preventive management of some of the generators in the last quarter of 2024, specifically in these last two months for some of the adjustments. This was already a program maintenance when we performed the transition. And also in the other assets, we have improvements. We here have considered an investment of BRL 200 million for the recovery of the asset performance. These investments will be from the acquisition of spare parts and of the assets and also the deployment of the monitoring system and data acquisition for the generators, which will allow us to continue with the performance. The performance of these assets are targeted for 2025 to reach 95% of availability, as you can see here on the chart.
This is actually the availability when we prepared the business plan for AES. We imagined we would reach this in 2027. We will anticipate in two years our target of improving the performance of our wind assets throughout 2025. On the following slide, we have the solar assets performance impact by the ramp-up of Jaíba, our largest asset, with 500 megawatts AC. We have a total generation of 77% average on the Q4 of 2023 and an availability of 98% of all the assets consolidated here, the ones that were AES plus the Auren assets. On the following slide, we present the benefits of a diversified portfolio. I'm sure you have kept up with the company performance. This was already tackled throughout our year with this wonderful, resilient, and very well-balanced portfolio. We can see our modulation gains. We have our generation profile.
As observed, Auren standalone with the assets that are originally from Auren, we would have a modulation of BRL 10 million. With the assets incorporated by AES, we reach BRL 58 million a year in terms of benefits for our flexibility in our portfolio. We can also see the modulation from the portfolio management aspect. We can see the modulation, and we also compared with the curtailment we had throughout 2024. The value, as reported, was BRL 202 million for the year. Of these 202 million, BRL 22 million would be reimbursed, our relation related to the electric power recession, as you well know. Then added to this, the positive effects of modulation, we can see that the net curtailment impact for Auren's portfolio is BRL 102 million. When we look into the recession, the REL plus the allocation of our profile given the short-term prices.
On the next slide, we will talk a little bit about our commercial performance. As I said, we have truly consolidated our leadership position in trading. We've reached 6.2 gigawatts in average of traded energy in 2024, well above the second place, and with an interesting distribution in all segments, both corporate going through self-generation and also wholesale, retail, as well as important sales in the regulated market, and this was increased in the last quarter of 2024 when we saw the 127 megawatts average in the regulated market in the last energy auction. On the next slide, we have the energy balance, consolidated energy balance for the company. The company has closed the year with 8.3 gigawatts average, more than twice the Auren's physical guarantee, an important advance in energy sales in this quarter.
We had sales in January 2025 to December 2028 in terms of BRL 150 per megawatt hour, and as usual, we maintain a high contracting level in the short term, bringing a better availability for the company or consolidation. Also, a highlight here for value aggregation, as I said in our highlights, all the negotiations that took place throughout 2024 have generated BRL 302 million in our market and contracts and future contracts of energy. Adding to the BRL 200 million of EBITDA, which were executed in 2024, we reach a value added of BRL 500 million. On the next slide, our financial performance, and I will pass the floor to Mr. Ferreira, Mateus Ferreira.
Thank you. Good morning, everyone. On this slide, we have our financial performance. The first slide, we have the net revenue in EBITDA. The company has presented in the quarter a growth of 35% of its revenues and the year a growth of 18% of the revenues. And this is due to the greater volume of transaction and traded energy. And as Fabio said, the entrance of certain complexes, both wind and solar in our company portfolio. On the EBITDA side, we had a drop of 5% in the year of the consolidated EBITDA, reaching BRL 3.3 billion. On the quarter, we had a drop of 13%. This drop happened both in generation as well as on trade due to a higher cost of energy, purchased energy, both to face the energy frustration due to the curtailment in the greater GSF, but also to deal with the contracts of the projects that were entering in a ramp-up phase.
The company also received dividends of the minority of participations of BRL 230 million in line with what we received in 2023. On the following slide, now considering the PMSO, the company has already showed, as Fabio presented in the beginning of the presentation, an important reduction in its expense costs. We have a reduction of BRL 43 million in the months of November and December, and this is translated in a result of around BRL 250 million per year, so on the Q4 of 2023, we had a PMSO of BRL 358 million. And when we reduce and make the adjustments for non-recurrent, we have a BRL 360 million with a non-recurrent, and when we consider the inflation and take out the recurring synergies, we have a reduction of 7% of our PMSO with a total of BRL 333 million on the Q4 of 2024.
This figure, of course, we have to be added with a PMSO related to the projects that started operation in 2024. Here we have Jaíba, Tucano, Cajuína, one and two, Agude, GUD, and Estrada. So this is already 42 million BRL, reaching a total PMSO of 370 million BRL on the Q4 of 2024. As Mr. Zanfelice said, the company is very well positioned to have the synergies of 250 million BRL a year, more than twice what we have announced on the acquisition. On the next slide, considering capital structure, we finished the quarter with a 27 billion BRL gross debt, with 8 billion BRL in cash, with a net debt of 18.9 billion BRL. We will transition a leverage of 5.7 times the EBITDA.
The cash is a bit higher than what we call a normalized cash because many of the payments to the BRL 200 million we see on the lower chart will be due in January, February, and March. We have the due dates of most part of these BRL 200 million. This is why we finished our year with a higher cash. We have a very adequate debt profile with an average term of six years, no other due dates until 2028, when we have BRL 5.4 billion of the acquisition finance. This was hired in October to purchase AES, and this will be the main target of our treasury in these next few months to do the takeout of these BRL 5.4 billion.
When we look into the profile on the right side, upper right side, a good part of our debt is related to IPCA, and we have a lower one, 13% to TJLP and only 20% to CDI, with a very competitive cost. An average competitive cost of the company debt is below CDI. It's a CDI minus 0.7%. On the next page, considering cash position or cash generation, also mentioned by Mr. Zanfelice, we see a strong cash generation, a strong cash conversion of the 190 EBITDA presented. BRL 533 million became operational cash flow after the payment of taxes, CapEx, working capital, and debt service. On the next page, I will pass the floor back to Mr. Zanfelice to talk about our integration.
Thank you, Mateus. Now, AES integration, there are two main blocks we need to refer to that are part of our strategy for 2025. The first one is the review of processes and systems. The company has established during our planning phase that we will have an integration of AES, and more than 2,000 activities were identified, and we concluded all the different actions or activities on the first, as we have planned during the signing period, already anticipating the number of synergies of BRL 350 million, as Mateus said. In February, we completed what we call the D100 after the acquisition and also meeting the targets that the plan had established for this period, and among them, almost 65% of the systems that were mapped, reaching almost 200, they were already conditioned or decommissioned, and our focus now is dedicated to the SAP migration, and we hope to have the completion up to July this year and the decommissioning of redundant systems throughout 2025.
With regards to value capture and also aligned to our transition plan, we have a methodology that is quite detailed and well-defined to capture value of these. We have the whole company management, a good part of the remuneration on the short-term management for the company managers will be associated to value capture, which was defined on our business plan. Of course, it's not limited to that, but we have already identified a value capture higher than what we had on our business plan, and also, there is important work, as we have heard, in terms of recovering our performance of the wind complexes or assets with the availability, reliability, and the recovery of the generation potential of these assets.
So in a nutshell, this value capture is going very well already, anticipating some of the movements or activities we expected that would still happen in 2026, and we are anticipating now for 2025. On the following slide, a little bit of this summary. We have the synergy of almost BRL 43 million, 250 for the year, a very important new insurance up to BRL 25 million per year. In the IT systems, we have a saving of almost BRL 21 million per year. As I said, we already had the availability reaching 92% by the end of the Q4, and it's already improved in March this year. But our target is to reach 95%. So the detailed plan, the team here for Danielle, our Superintendent for Operations, is a detailed plan. And as I said, it's around BRL 200 million investment for our turnaround in terms of capital management.
Also, as we said, we have captured BRL 2.5 billion up to now with a very competitive cost in order to pay AES with a saving of already BRL 25 million per year. Mateus did this negotiation with Itaú, reducing our spread for remuneration, which we had in terms of our outstanding structure. And now we have important work here at the company in terms of improving our capital or cash generation. This will be focused in the reduction of our debt, especially with acquisition finance, which we did in order to purchase AES. On this next slide, we have our growth projects. You probably have seen by the results release, we have built Cajuína 3, Cajuína 3. This was already defined when we built the business plan for the purchasing of AES. We had two projects that would be built.
One would be Cajuína 3, and the other one, Cajuína 3, was very interesting in terms of returns. This is a project that already has all the infrastructure in terms of connection. It's an extension of Cajuína 1 and 2, as you can see here on the chart, with a capacity factor, one of the best in the power industry, with 64.4% in terms of capacity, and this is already recertified by us, confirmed by us, which will allow us to have the Cajuína complex reaching a capacity, a total capacity of almost 800 MW, so it has these synergies, both from the standpoint of construction and all the structure, and also in operations and maintenance. We already have a team that is ready to deal with the maintenance of Cajuína 1 and 2. These are complexes that are side by side.
So therefore, there is a marginal increase of expenses with Cajuína 3. Our forecast is to start the operation in 2026, and it is already a complex that already has operations in the flow. We have 19 generators, so it is a relatively small, simple asset. But however, within our expertise in terms of construction, it is part of what we have seen throughout the company history. There are no big challenges here in terms of the expansion of Cajuína. On the next slide, these are our closing remarks. The main points that we would like to call your attention to in terms of the company's future. The company already has the scale. It is totally different from what we had before the acquisition of AES, 8.8 gigawatts, allowing us to have a better system management. A diversificada e equilibrada, a gente já demonstrou aqui os benefícios.
We have a diversified and balanced portfolio, and this is something that we have already in a period, and there was a huge volatility. So the portfolio has been with opportunities to capture value. And we also see the same report at 70%. We can see the volatility of price. So this is the new tonic of the sector, and it's something that we've already seen the consolidation as the company working in all fronts, in all the spectrums of clients, whether it be the regulated or the free market. And as I said, we also still have capture of synergies in 2025. So it is a company that will have in all items due to the quality of its portfolio, due to the size of the company. It's one of the most efficient companies in the electrical sector.
We will leverage rapidly generation of cash capital, and also because our portfolio of sales of energy is already contracted. So our oscillation in revenue is very small. And here we have a strong cash generation, which will allow us to leverage a scenario of short and midterm. And in relation to the perspective of the market, I think that we've done interesting movements in 2024 with the association of the AES, also with retail, the acquisition of Esfera. We have a portfolio which is quite resilient, and we have perspectives looking forward, more demand with sustainable clean energy. We're very, very well positioned to benefit from the opportunities that will come in the future. This, for example, of all the points, is the high point of the company, and it's difficult to build such a company today. We think that our Auren has all these attributes.
I'm now going to end my presentation, and I am going to open for questions. Iniciaremos agora a sessão de perguntas.
Now we will start the question and answers. If you wish to ask any questions, please press the button, raise your hand. If your question has been responded, you can lower your hand. The first question comes from Mr. Filipe Andrade from Itaú BBA. Filipe, you can proceed with your question.
Good morning. Thank you very much for accepting my question. I'd like to listen a bit more about the balance. First of all, the arm of generation, if we continue what we've observed in the last years, 2025, 2026. First of all, I'd like you to share a little bit more.
If there's a specific strategy, or if it's more a reflex of the incorporation of AES, and if we can expect differences of positioning, I would like to know about the prices, and then also an update about this impact of BRL 49 million for the default, considering this volatility that was observed in the price of energy and the fact of you having more conservative parameters. If you're restricting the number of companies where the energy is traded,
well, in relation to generation, our portfolio as a whole of trading, this is the photo of 2024, and we've participated in the auction of energy, where we saw about 127 megawatts. It captures a little bit of that sale. It shows in short, in this scenario, if we look at the position of the company currently, the portfolio is balanced.
Obviously, there are ups and downs during the year where our trading team adopted a strategy of positioning due to the evolution of prices. But if we look at the consolidated today, the balance is well balanced. So this is the first consideration. The second one you observed, we had an adjustment here of about BRL 50 million. And I would like to highlight that a good part of this negative result, in reference to the traders, we inherited with the acquisitions, our policy of credit risk. It really, we had exposures in Auren as well. So with the policy of credit, it was very good in relation to Auren standalone and in relation to our positioning in the market.
Currently, we've restricted a little bit more the accounts, and now we are working and waiting for a bit of the movement of the market to improve the methodologies of the market, which is a topic which has already been discussed by the sector due to other events that took place in the past, and now we are observing. It is a fact. We've increased our degree of being conservative due to what happened last year, so that affected the credit.
Perfect. Thank you very much. Well, the next question comes from Mr. Guilherme Lima from Santander. Mr. Guilherme, please proceed. Bom dia, pessoal.
Good morning, everyone. I have two questions. First, about the revision of the assets that belong to AES. There was a decline of 6% in relation to the prior certification. But here, it's more about the number that was disclosed by AES as a physical guarantee, which is what we use as a reference. So this number was a bit higher than what you showed for the old certification. I'd also like to know if there's any difference, anything that we should have implemented, because we end up by seeing a drop in physical guarantee in relation to the name of AES. We see a drop of 3%, and here there's a drop of 6%, which you showed on the release. If you could comment a bit about this topic and the numbers that AES shows. And another question, we've seen that the energy prices have gone up a lot. Yesterday, we saw a curve for 2025 going up a lot. Could you comment a bit? What is your perspective for this growth of the price of energy?b What has caused this growth? If you could comment a little bit, please.
Thank you, Guilherme. What about this in relation to the recertification? We've reevaluated everything from the wind resource and also the parameters of each one of the projects. When we talk about the availability and the characteristics of the equipment, it is expected there is a difference in relation to the certification of projects and what the equipment does, in fact, in the field. So when we did the recertification, we got the parameters in the field. These were already equipment that had been in the field for quite a long time. So it's a more precise certification. So this is a difference that we found. It takes into consideration the characteristics, installations of the machine. So since how this machine has performed, given the wind speed that it observed during its history.
So this is much more than we do the certification of projects, which is based on theoretical values. The difference here, and I'm actually going to suggest to our people to get in contact with you for you to see the difference part to part. But basically, we haven't done anything different from what I just mentioned. As for the price, I'm going to ask Marco Bertoncini what he thinks of the price of the market for energy in 2025. So complementing, if we look short-term for what happened up to now in the beginning of this year and the perspectives for the future months, we can see the rain, even though it's what has been forecasted. They are lower in volume than we had forecasted in the beginning, what the market had forecast.
So there you have a storage, which is going sideways, which doesn't have much effect in relation to the historical curve. And parallel to this, the consumption of energy is higher due to seasonality periods, carnival, etc. But the consumption is higher. As of February and March this year. And what we forecast basically at this time is a more hike of prices. This has all the agents that think on this line. We have to be very agile in our positions. Today, our positions reflect this hike of prices for the next month, so the next few months at least.
That's clear. Thank you very much. Nossa próxima pergunta vem do senhor Daniel Travitzky.
The next question comes from Daniel Travitzky from Safra Bank. Mr. Daniel, please proceed.
Hello everyone. Thank you for the opportunity. I would like you to comment a little bit more in detail on the leverage issue that you mentioned, that it should be fast. But just for us to understand what the speed would be, in fact, what the speed you expect it to go. And if you can also comment on two topics. How does this go together with the investments that you are going to carry out in the project number three? And also, if you can comment on the opportunity of the Capacity Reserve Auction that is going to be held in the midyear and how this inserts into this leverage strategy of the company. Thank you.
Perfect. Daniel, thank you for the question. I'm going to talk about leveraging, and then I'll give it the floor to Fabio to talk about the auction of capacity reserve. Well, it continues the same. The goal is to go back to 3.3-3.5 in a timeframe of three, four years. Important to mention that we have 5.7 times when we start, but in 2025, we are aggregating 1.5 GW capacity, which was not full in 2024. Here are the parks one, two of the Jaíba, which are already 100% in commercial operation, which obviously is going to contribute a lot to the EBITDA of the company in 2025, besides the synergies that we've already mentioned. Another important topic that Fabio mentioned during the meeting is that we have a lot of energy already contracted for the next three years. This gives us a lot of security about the safety of the cash of the company during this leveraging time. Our perspective is to go back to 3-3.5 times in three or four years.
As for Cajuína 3, the CapEx is about BRL 150 million. It is done during the year of 2025 and 2026, half and half. So obviously, it impacts the leveraging, but given the size of the company today, it's not something that is relevant. We're talking about BRL 350-400 million per year. So the balance can absorb this money with ease. Daniel, só complementando aqui em relação a... Daniel, adding in relation to the capacity, obviously, we are engaged and paying attention. So we have a regulatory financial team. Everyone's involved to evaluate this opportunity. Our guidance here is to make an investment if it makes sense in the strategy of the company, taking into consideration the timeframe. This has already been considered in our model when we acquired AES, that we would have this opportunity to participate in the Capacity Reserve Auction.
So this is within the plans of the company, and we will do it if the return is positive.
Thank you. Excellent. Nossa próxima pergunta vem do senhor...
Our next question comes from Mr. Gustavo Faria, from the Bank of America. Please, Mr. Gustavo, proceed with your question.
Thank you for the possibility of asking questions. I'd just like two follow-ups here. The first one is the MTM negative during the quarter. If you can explain a bit more about the main reason of this MTM, if it would be the hike of prices of the concessionaires. And also to comment, please, on the topic of the prices of 2025 in the second semester. Some players that we talk about comment about the lack of liquidity of the market, especially after the situation of the traders last year.
And I'd like to know, in your vision, part of this hike in prices for 2025 is due to the lack of liquidity of the market. And I also I'd like to know about the financial results of the quarter. If there was some incorporation of costs of the AES Brasil, what are you expecting as a financial result for the next quarters? Already thinking about the upside of the liability management. Thank you.
Well, let me start answering, and then Mario, we'll talk about the prices in the second semester. Well, about MTM, if you remember, in the Q3 of 2024, we had a positive MTM of BRL 296 million, a fruit of positions, long positions that we had, and the increase of prices.
With the return of the prices at the end of the year, it's natural that we returned part of this positive MTM in this quarter. So a large part of this is a result of the price return. Now I'm going to give the floor to Marco to comment about the second semester.
Well, adding in relation to prices for this year, I think, first of all, we see a standard of a growing volatility. This is nothing new for 2025. We have followed this. You will remember our discussions. This already has been occurring and intensifying during the last years. At this moment, everything in 2025 is pressured up in relation to prices, prices that often are there orbiting around BRL 300, some months over that.
Now, it still depends because especially the second semester, it depends on a transition of hydrology from the drought and the winter and to the next humid period it starts as of October next year. Sorry, October this year. It also depends on this hydrology, which is something difficult to forecast in Brazilian reality. So I believe even though the prices are pressured up, we should see huge volatility, which has to do with the hydrology and the transition of these periods, especially at the end of the year, the last quarter, November, December, even more volatile. Com relação à tua última pergunta, na minha definição. About your last question, there's nothing very extraordinary. The issuance of the debentures that we did in October, BRL 2.5 billion and also BRL 5.4 billion, but outside, this is financial expenses, in fact. Perfect.
Thank you very much. Nossa próxima pergunta vem do senhor.
Our next question comes from Vladimir of XP. Please, Mr. Vladimir, proceed with your questions.
Hello, good morning. I'd like to thank you for the opportunity of being able to ask questions. I do have two questions. One is about the synergies. You mentioned a lot about what you captured and this analysis about BRL 250 million. There is also some type of operation synergy that you're looking for. Is there some target for this? And the second question is about curtailment. What is the position of the company? What are you expecting? What do you believe will be the regulatory solution if part of this is going to be reimbursed by the system? And if so, what part? Electric and energy, etc.
Sobre as sinergias, óbvio que nós temos ainda 25. About synergies, of course, we still have synergies to capture. We have a target, but we've already gone over, as we said in the transaction, 128 million BRL a year, and this number will be higher, as we've demonstrated here, but there's still work to be done, and this work is ongoing. So what we've done in the closing of the transaction and now the work continues. In relation to curtailment, I think there's been a large discussion in this sector, I think, of the events that took place in 2024 and the need of adjustments in transmission and in the sector as a whole. So there is a discussion about expansion, the risk of that the expansion might not develop if these topics are not solved or not clarified. In our point of view, I think that what the energy curtailment, I think, is a risk of the entrepreneur. It's a part of the game.
If there's no demand, it has to be paid for. We always have, we're always observing is the curtailment and due to electric reasons, this is already known as a liability. What calls our attention is the reliability, perhaps higher, because when you have a restriction because the equipment failed, and these are restrictions because the system is not reliable for the generation that is being produced, so our focus is to understand very well what is the curtailment due to reliability. It should be very marginal. There could have been one adjustment with expansion, but in time, the transmission becoming adequate to what is being offered. There should be something with a very low probability. So this is what the company is focused on. We have participated in the discussions with the regulatory side and also the ONS to solve this. I think the whole sector is paying attention on this theme, and we will see what happens in the next few months.
Thank you. A sessão de perguntas e respostas está encerrada. Our questions and answers have finished. Now we're going to give the floor to Fabio for his final considerations.
I'd like to thank you all. I'd like to thank you for your availability for the results of the last quarter of 2024, reinforcing that the company follows, you know, continues very much working very hard in this transition so that it happens quickly. We believe that to the end of 2025, this will be a topic that has been solved in the company. We're very happy with the results that we are reaching. Just reinforcing, I think it's another important topic. You had the opportunity of reading our release.
We always try to give a detailed release, things that we judge that are necessary to understand the moment of the company. And our team is totally available to clarify any question you might have in relation to how this process is moving forward on the side of the transition and the side of the trading and of the operation. So we count on you, and if you have any questions, we are at your disposal. Once more, thank you very much for your availability, and we will see you in the disclosure of the Q1 of 2025. Thank you, everyone. Agradecemos.
We have now ended this conference. We thank you all for your participation, and we wish you a very good.