• Adjusted EBITDA Growth: 13% increase in the second quarter of 2024.

• Net Income Growth: 16.6% increase compared to the second quarter of the previous year.

• Adjusted EBIT: BRL 1.8 billion, a 25% increase from the previous year.

• Energy Distribution Growth: 11.2% growth, the highest in 23 years.

• Recurring Adjusted EBITDA: BRL 1.7 billion for the quarter.

• Recurring Adjusted Net Income: BRL 377 million, nearly 70% higher than the same quarter last year.

• Debt and Dividends Payment: BRL 157 million announced, representing a payout of 34.2%.

• Investments: 8.1% decrease compared to 2023, totaling BRL 2.9 billion for the first six months of 2024.

• Net Debt to EBITDA Ratio: 2.7 times.

• Energy Consumption Growth: 11.2% increase in the second quarter of 2024.

• Energy Losses: 12.94%, a variation of 0.21 percentage points from the first quarter of 2024.

• Delinquency Rate: 1.07%, an improvement of 0.08 percentage points from the previous year.

• Gas Distribution Customer Base: Surpassed 82,000 customers.

• Transmission Revenue: BRL 962.7 million for the cycle 24/25.

• Distributed Generation Capacity: 369 megawatts peak, with 6.78 megawatts peak added in the second quarter of 2024.

• Warning! GuruFocus has detected 5 Warning Signs with BSP:ENMT3.

Release Date: August 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Energisa Mato Grosso Distribuidora de Energia SA (BSP:ENMT3) reported a 13% growth in adjusted EBITDA and a 16.6% increase in net income compared to the same quarter last year.

• The company achieved the highest growth rate in energy distribution in the last 23 years, with an 11.2% increase in consumption.

• Energisa Mato Grosso Distribuidora de Energia SA successfully completed the acquisition of Infra Gas, expanding its presence in the gas distribution segment.

• The company was recognized by Valor Economico as one of the top innovative energy companies in Brazil.

• Energisa Mato Grosso Distribuidora de Energia SA announced the payment of BRL157 million in dividends, reflecting a payout of 34.2% of the distributable result for the semester.

Negative Points

• The company faced a negative impact of BRL317.8 million in non-factored income due to seasonal changes affecting energy consumption.

• There was a negative non-cash flow impact of BRL51.8 million from the Energisa commercializer, ECOM.

• Energy losses reached 12.94%, showing a slight increase compared to the previous quarter, attributed to heat waves affecting the group's concessions.

• The automotive segment in the gas distribution was impacted by incentives for liquid fuels, leading to a reduction in demand for natural gas.

• The company experienced an increase in expected losses with credit, with a BRL28.3 million rise in the second quarter of 2024 compared to the same period in 2023.