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

• Net Income: Increased by 16.6% compared to the second quarter of the previous year.

• Recurring Adjusted EBITDA Growth: 13.2%, reaching almost BRL 1.7 billion in the quarter.

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

• Net Debt to EBITDA Ratio: 2.7 times.

• Energy Distribution Growth: 11.2% increase in energy consumption, the highest rate in 23 years.

• Investment: Totaled BRL 2.9 billion, an 8.1% decrease from 2023.

• Dividend Payment: BRL 157 million, representing a payout of 34.2%.

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

• Distributed Generation Capacity: 369 megawatts peak, with an addition of 6.78 megawatts peak in the quarter.

• Warning! GuruFocus has detected 3 Warning Signs with BSP:ENGI11.

Release Date: August 08, 2024

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

Positive Points

• Energisa SA (BSP:ENGI11) 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 its highest growth rate in energy distribution in 23 years, with an 11.2% increase.

• Energisa SA was recognized as one of the most innovative companies in Brazil by Valor Economico.

• The acquisition of Infra Gas, which holds a significant share in Norgas, is expected to enhance the company's presence in the gas distribution sector.

• The company announced a dividend payment of BRL157 million, representing a payout of 34.2% for the semester.

Negative Points

• The company faced a negative impact of BRL317.8 million on non-factor income due to seasonal behavior and temperature variations.

• Energy losses reached 12.94%, showing a slight increase compared to the previous quarter.

• The automotive segment in gas distribution was negatively impacted by incentives for liquid fuels.

• There was a negative BRL51.8 million non-cash flow effect from the commercializer e-com market.

• The company experienced an increase in expected losses with credit of liquidity doubtful, rising by BRL28.3 million compared to the previous year.

Q & A Highlights

Q: How will the potential changes in Infra Gas contracts affect the closing of the acquisition? A: Fernando Maia, CEO, explained that the contract is legally binding and should not be altered. The company expects the state to maintain a favorable investment environment. The impact on rates is minimal, and the company is awaiting the state's decision to proceed with the closing.