Brazil · Delayed Price · Currency is BRL Engie Brasil Energia Earnings Call Transcripts
Fiscal Year 2025
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Full operation of new wind and solar assets drove revenue growth, but EBITDA and net income were impacted by the absence of one-time gains and higher leverage. Curtailment and hydrology remain key risks, with a continued focus on transmission and selective M&A for growth.
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EBITDA grew 12.54% quarter-over-quarter, driven by new asset integration and organic growth, while net income declined 8.4% year-to-date due to higher depreciation and financial expenses. Regulatory uncertainty around curtailment and high interest rates remain key risks.
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EBITDA and operating revenue grew year-over-year, driven by new assets and transmission projects, though net profit declined due to high interest rates and investment lag. Renewables faced curtailment, but portfolio diversification mitigated impact. Dividend payout remains at 55%.
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Installed capacity neared 10 GW with major wind and solar projects advancing, while adjusted EBITDA and net income grew year-over-year. High curtailment and rising leverage are expected to persist amid ongoing expansion, with innovative carbon credit financing and a 55% dividend payout maintained.
Fiscal Year 2024
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Strong financial and operational performance in 2024, with EBITDA and net profit rising year-over-year, driven by new project completions and portfolio growth. Leverage increased to support investments, while a 55% dividend payout policy is maintained.
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Adjusted EBITDA declined 7% and net income dropped 30% year-over-year, mainly due to lower TAG participation and higher financial costs. Strategic project wins, early renewable operations, and robust transmission growth offset high curtailment and challenging hydrology.
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Q2 2024 saw strong financial results with adjusted EBITDA up 8.6% and net income rising 18.8% year-over-year, driven by project progress and a BRL 262 million indemnity. Portfolio diversification and cautious investment strategy continue amid market volatility.