Good morning. We're going to start the earnings results video conference for the first quarter of 2026. I'm Adriana Wagner, Investor Relations Analyst of ENGIE Brasil Energia, and I would like to make a few announcements before we start the video conference. Right now, you are connected in listener mode. Later, when we open the Q&A session, participants will be able to send them through the Zoom and Q&A option. It is worth reminding you that this video conference is being recorded. It is available at our website at www.engie.com.br/investidores. The results presentations and the earnings release, in addition to a complete financial statements and other documents. The detailed analysis are available, ESG indicators and progress in implementation of new projects, including other highlights of the period.
Before proceeding, I would like to clarify that all statements made during this video conference regarding business outlook of the company should be treated as forecasts, depending on the country's macroeconomic conditions, the performance and regulation of the electric sector, in addition to other variables, and therefore are subject to changes. We remind that journalists who wish to ask questions can do so by email, sending them to the company's press office. To present ENGIE Brasil Energia performance in the first quarter of 2026, we have here with us Mr. Eduardo Sattamini, CEO, Pierre Leblanc, Chief Financial and Investor Relations Officer. Mr. Guilherme Ferrari, Managing Director, Renewables and Batteries, and Mr. Leonardo Depiné, Investor Relations Manager. I now turn over to Mr. Sattamini to begin his presentation.
Good morning, everyone. We're here for another quarter with a sustainable and resilient result, showing that we have an intensified portfolio. All of this provides very good resilience to the company. Of course, it has shown its value in the long run for the company. I will start with the highlights showing exactly this, our sustainable growth. We have an expansion in Jaguara with 195.78 MW for 15 years. We already had two turbines in the plant, and we will have a CapEx of BRL 1.2 billion. This only shows that we are pursuing opportunities to generate flexibility in the system by adding these two turbines in Jaguara. We also had ANEEL's bid, a successful bid. We secured lot two and sub-lot three. These are two projects with guaranteed revenue.
We will have annual contracted RAP in the order of BRL 122.8 million. They are located in the states of Santa Catarina in Paraná. We also have stations in Ceará, in Rio Grande do Norte, where we can expand our operation. Now, moving on to the board of directors, where we approved the adherence to the mechanism for renegotiation of the liability recorded as public assets use. This will lead to very good results for the company. We also had Fitch Ratings. These are all very positive results. Also, we had the approval of distribution dividends in the order of BRL 557.8 million for the FY 2025. Another important celebration for us is that we remain in Dow Jones for the 21st consecutive year. We're very proud of this.
We have a problem with Sattamini's connection. Please move on.
I had a connection problem. Now we're going to talk about the financial results. As we mentioned before, we had sustainable growth with a 10% increase in the adjusted EBITDA. That has an impact on our new plants in Assuruá and Jari and Cachoeira Caldeirão, in the state of Amapá. Therefore, our profit was as expected. We have high interest rates which affect our financial results. In the long run, this will be adjusted and profits will overcome our expectations. The main drivers of our results are the generation segment. With the acquisition of new plants, BRL 265 million. In the transmission segment, we had a very slight reduction. These are factors that have a certain degree of volatility. In the long run, it is also adjusted during constructions.
We also have CapEx adjustments. We have the result of equity income, which was a bit down as well. The financial results, as I mentioned, high interest rates, are depreciation and amortization also had a reduction as well as the financial results. As a result, we have income taxes that increased to BRL 28 million. In the next slide, we've shown these indicators on a constant basis, but I would like to call your attention to an indicator that has worsened as a function of the number of our works. In the first quarter of 20 25, we had a lot of people working, when you have two events, on the result, the impact was very little. The denominator is lower and therefore there is some relevance. We had two events with accidents and leave.
They were not significant, but it is a liability. Our idea is to reduce the number of accidents as much as possible, even if these accidents are not very severe, because we want to preserve the health of our employees. Moving on with our strategy, focusing on investments, innovation, social responsibility and engagement with the communities. Our company needs to be strong in these concepts, these principles of sustainability and governance as well. We try to show you these indicators. I will now turn over to Guilherme. He will talk about something very important. Our results are supported by the availability of our assets, and Guilherme will talk about this in detail.
Thank you very much, Satta. Good morning, everyone. Quickly going through our assets, comparing to the first quarter of last year's, we had a significant improvement, this was basically due to the Salto Osório unit, which was being modernized last year. Other assets also recovered, an important factor is the Assuruá project with 800 MW. Therefore, the performance of this asset has improved. We also have continuous improvement in Santo Agostinho. This is something we are pursuing along with our teams, so that we can recover the availability of these assets. We mentioned this in our last presentation. We had a recovery plan, and we have had good results in the latest reports for this factor. Some of our assets have a greater capacity. This is constant work by our whole engineering team, so that our assets will have better performance. We had a problem in [Sahapnada].
It wasn't significant. Next slide. Now regarding curtailment, this is our main problem. We have a significant benefit, which is our portfolio. Sattamini has mentioned it. Despite the significant impact of curtailment in our assets, in our hydroelectric power plants, and this is very specific, but we compare it with our portfolio, and the curtailment has an impact of 4% in our total generation. Curtailment is aligned, as we can see here in the first quarter. It's aligned with wind and solar energy, but the amounts are well-aligned with the curtailment. An important aspect, if we compare it to last year's result, is due to the new assets, Assuruá and Assú Sol, which increase our basis in absolute figures, and that has an impact. Energy generation.
When we compare it to the first quarter of last year, we have new assets in Serra do Assuruá and Assú Sol, along with the improved performance demonstrated in the previous slide. Regarding the hydropower plants, we have a slight change compared to last year. This is because of the problems in the south and the reservoirs. It wasn't relevant, and it was not impactful in terms of our operational results. I would now like to invite Keller to talk a little bit about our business strategy.
Good morning. Well, regarding the business area, we do not have any relevant highlights. We maintain our strategy to hire gradually, and we can see on the graph above on the right side our availability year-over-year, and we can see that it goes down quarter- after- quarter.
We have contracts that are more prolonged, some of them to 2030, and even beyond that. On the left side, we can see our availability and our hedge, which has been trying to be adequate for our weather conditions. The market is constant. In the free market, you can see the future availability. That's where we apply our strategy to contract gradual sales. Maybe the most significant highlight here is a significant increase in the number of consumers. We had an increase of over 34% when compared to the first quarter of 2025. In terms of consumer units, we also had over 29% of increase with almost 5,000 additional consumer units. This is what I wanted to share. I turn over back to you.
Well, thank you very much, Keller. Now we'll talk about the financial performance. Going through our revenue, we had a significant revenue increase of 13%. The main highlight is the sales volume in Sudoeste, which is operational now, and Castelo de Veiga, which was also not included in the 1st quarter of last year. We had significant changes in price this year. Prices in the Northeast are higher than last year, which turns our energy more valuable in that market. That has an impact on sales volume and CCEE's result. Other aspects were not as relevant. Transmission had a IFRIC 12 result in the beginning of last year. Asa Branca had a very strong CapEx, and in this first quarter, it was very low. This leads to a 13% increase in our revenue.
Now, we have a tab with an important contribution, and we delivered BRL 133 million in the Northeast mesh. We are reviewing it, conservatively, they only took into account the energy that was in fact transported. When we have the review, this will be adjusted and will generate a better effect in the upcoming quarters. The EBITDA. We can see an accounting EBITDA with an increase of 10%. Also the adjusted EBITDA and the regulatory EBITDA, as the market likes to see, had an increase of almost 16%. In the operational results, we can see more favorable prices among other factors, which led to an increase of over BRL 300 million. We have four important additional assets.
From a regulatory point of view, we had an additional BRL 32 million in EBITDA because of these new assets, especially Asa Branca. BRL 30 million less TAG. Comparing quarter-over-quarter and in net income, the EBITDA had an important contribution. We also had a decrease because of the new assets. In the financial results, our leverage is a bit higher than it was last year. We have BRL 5 billion of net debt this quarter. Last year we had higher amounts, and that has an impact. We had a 4% decrease in the net income. Now, going through our balance debt. It is as expected. We had a decrease comparing to the end of 2025. Our cash was robust in the quarter. In the end of March, we had good results.
Our debt closed at BRL 5 billion. It was BRL 5.5 billion, and therefore, our leverage has improved in this quarter. In this next slide, we can see the debt profile and composition. We pay about BRL 2 billion per year after 2026, where we have a higher concentration. The composition remains diversified. IPCA 53%, CDI about 40%, and TJLP 6.2%. Our investment flow for 2024 and 2025, it was very robust because of the M&As and the large projects which were being developed. From now on, we will focus on the three large transmitters, which will still demand some CapEx, especially in Asa Branca. We also have new assets that were acquired in the bid and Jaguara's expansion, which is already taken into account here.
Also, assets from the Colibri project, BRL 1.5 billion for Colibri and then Jaguara, but they were already distributed over time. In Jaguara, we go all the way to 2030, we can see the results demonstrated on the slide. Last important financial highlight that Sattamini has already mentioned, we have the UBP renegotiation. We have 30 days to sign a contract and then another 30 days to pay. If we follow this schedule, this will happen at the end of June. The accounting values between December, with the new agreement, we have a little bit less than BRL 4 billion in the balance. The balance will be corrected according to the CDI, and we will discount payments from December until now.
We do not know what the exact gain is going to be, but it will be accounted in the end, or during the second quarter. Closing the presentation and moving on to expansion, I will quickly talk about Asa Branca and Graúna, the two large implementation projects. We have good news from them this quarter. Asa Branca had a license to install B, C and D segments, we now have a normal implementation flow. In Graúna, we had a prior license, and therefore it is all according to plan. This is the first presentation of Colibri. This is the asset we acquired in the latest ANEEL bid. The south lot, which we call Colibri Sul, in the state of Santa Catarina and between Graúna and Gralha Azul.
We also have A, B, C and D sub-lots, which are part of lot three. Which are located in Ceará and Rio Grande do Norte. As Sattamini mentioned, the RAP is of almost BRL 3 billion. It was a significant victory in the second bid. To detail this, I will turn over to Guilherme.
We had a successful expansion of Jaguara. It was an opportunity that our team has been developing in the last two years. The developing team, the implementation team. It is an asset which is well-aligned with our strategy. It is important to have flexible plants. We are still negotiating the provider. We hope to conclude this in the near future. To reinforce, it is an asset that we hired. It is a 15-year contract term. Moving on to the next slide, talking about Jirau.
A quick update. I would like to mention two important facts about Jirau. Number one, we have an average generation that is higher in the first quarter as a result of the expanded quota. We have been working with a higher rate since the beginning of the year, and as of 2028, it will be fixed. In the last weeks, we received information about the extension of Jirau with additional 600 MW, we moved to 2,257 MW from 2,182 MW. Transfer process, we do not have much news about this. This was closed at the end of last year. We continue working with this process, and we expect that in the near future, we will be able to have an update on this process.
Thank you very much. We're now going to start the Q&A session. To ask a question, please submit it to the video conference Q&A app. We have a question from Safra's associate analyst. First, could you update us on the process for the acquisition of Jirau? Number two, we've seen a mismatch of prices in some markets with higher frequency. How is the company dealing with this phenomenon, taking into account the location of your assets?
I can answer this. Well, I will talk about Jirau initially. As I mentioned, we are discussing the alternatives. In due time, it will be shared with the board of IBs, and we will communicate it to the market, and therefore, we're still analyzing Jirau's incorporation. Regarding the submarket price difference, this is something that is of course, mapped in our risk management. We've been dealing with this forever.
Of course, the frequency of these events has intensified, and they are correct. How do we deal with them? Definitely, this has an impact on future decisions of the pipelines, the company's pipeline. In the short term, we have business strategies. When we say that we have a hedge, this hedge is segregated according to the different submarkets, and so are the rules. All of this is taken into account. Sattamini has already mentioned this during this conference. The geographic distribution and technological distribution also provides a little bit more resilience to us. This is done by means of business management, portfolio management, adjusting our sales, our resources, our hedges, and looking at the portfolio as a whole.
Perfect. Thank you very much, Keller. I would like to remind you that to submit a question, you should send it to Zoom's Q&A tool. Right now, we only have this question, and therefore, I would like to turn over to the speakers. We have another question. Good morning. Could you comment about the market perception of energy contracts and the expectation of El Niño for the second quarter of 2026 and possible changes in CVaR? The question is from Maria Carolina Carneiro.
In fact, this perspective of a strong El Niño in the upcoming weeks and months, and it will continue until next year. As you know, El Niño will lead to more rain in the south and less rain in the north and northeast of Brazil. The impact in terms of physical operation of the system depends highly on what we call the south. The El Niño in Rio Grande do Sul has less impact on our system because we have less reservoirs.
In Santa Catarina and Paraná. The relevance is a little bit more significant, also in the South and Southeast. The fine adjustments of El Niño will make a difference. How has the market reacted? There is a trend towards a reduction in the future, but it won't be significant. In the third a nd fourth quarter, we have other factors. Because of our profile, there might be a price implication. Regarding CVaR, this is a relevant regulatory discussion. You can see there are two very different opinions on the model, but this is our vision that the model is good as it is with these parameters, because we can see very little, almost nothing. In the price model, we have the risk for the operator. We have more adequate pricing for the system. Of course, this includes volatility.
We depend on volatile parameters, or we might have risk. Volatility may be exaggerated. This is what some segments of the market see. They believe that the price is too high. If we decrease risk aversion, we will have secondary effects on what we have to pay that will have an impact on the consumer. Therefore, the CVaR as it is should be the option that we use. This is our chosen option, our preferred option. I turn over back to you.
Thank you, Keller. We now have a next question from Rafael Oliveira and Matheus Oliveira. The questions are related. Taking into account the payout of 56% in the pipeline with new projects, what are the conditions for the company to have distribution without compromising future investments?
I think I can answer this. Two or three years ago, when we reduced the payout to 55%, we had investments to make. Because our leverage is between 3x and 3.5x, for now, it makes sense to keep the 55%. We will analyze it on a case-by-case basis and reevaluate things as new facts arise. For now, it is as it is. I will complement. As the leverage goes down, we tend to increase payout. This is only normal. What makes that leverage not go down? It is when we identify investment opportunities with that will add value to the company. This is what we've been doing. The company has offered reasonable dividends. 55% is higher than the usual payout in utility companies in the electric sector. That happens at the same time we're growing.
This is very positive for our investors. We will keep this. We'll continue identifying opportunities, and then we will pay more dividends as the market allows. As the market has better result perspectives, we will contain our debts, and the payout will be lower. I'd like to remind you that 55% of payout is a good one, and it's a little bit above the market average.
Perfect. Thank you very much. Our next question is also from Maria Carolina Carneiro from Safra. She asked about future bids, if you know whether we will have another bid for this year and whether you would be interested in participating.
Yes, definitely. We do have projects that we're developing. A lot is still not clearly defined, but I think that we'll probably have five auctions this year with two volumes between 2 GW and 5 GW. We still have some regulatory issues to be defined. We believe that in the upcoming months, we'll be able to sort this out. Have more auctions this year.
Perfect. Thank you, Guilherme. Our next question is from Antonio Luis Rizo, buy-side analyst of Inter-Ação. He asked about Jirau. Will the company's debt increase?
I can answer this one. This is what the committee is discussing, how we can bring this asset into ENGIE brasil Energia, and that may lead to an increase of our debt or not. We're still discussing this. We must preserve the company's debt balance based on manageable amount, which will not put the company's rate at risk, because this is one important competitiveness aspect of the company. Our related party committee is discussing this. The discussion is not over, and we hope to conclude it in the near future. When we have a definition, we will share with all of the stakeholders via our official channels. Thank you.
Perfect. Thank you, Sattamini. We now end our Q&A session, and I would like to turn over back to Sattamini and other participants for their final considerations.
Well, I would like to thank you all for your presence here today and to highlight that we are a company that looks ahead in the long term. Of course, the market has variations, volatility, and this increases as the number of new technologies increase. We deal with them on a base by basis, managing our risk very professionally. Today, as we mentioned before, we have a diversified portfolio in terms of generation and transmission.
We have, in the area of generation, we have a technology portfolio with an adequate balance of technologies to face challenges in the market, which is increasingly more volatile. We are very responsible with the future development of the company, always trying to pursue opportunities. This is the message I would like to leave you with at the end of our call.
Well, I thank you all for your participation. The video conference is now over.