In This Article:
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Consolidated EBITDA: BRL1.134 billion, a 27% increase compared to Q3 2023.
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Leverage: Reduced from 4.4 times in June 2024 to 3.5 times at the end of Q3 2024.
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Operating Cash Flow: Reached a record BRL1.3 billion in the quarter.
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Follow-on Offering: Raised BRL3.2 billion through the issuance of approximately 229 million shares.
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Net Debt: BRL15 billion with a net debt-to-EBITDA ratio of 3.5 times.
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Investments: Totaled BRL960 million in the quarter, with significant allocations to projects under construction.
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Capital Expenditure (CapEx): BRL100 million expected for riser replacement activities, potentially reimbursable through insurance.
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Corporate Rating: Raised to AAA by Fitch with a Stable Outlook.
Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Eneva SA (BSP:ENEV3) reported a consolidated EBITDA of BRL1.134 billion, marking a 27% increase compared to the third quarter of 2023.
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The company's leverage decreased significantly from 4.4 times to 3.5 times within the quarter, indicating improved financial health.
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Eneva achieved a record operating cash flow of BRL1.3 billion, driven by asset availability, dispatch, and positive working capital variations.
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The company successfully started contracts on its on-grid and off-grid gas monetization fronts, enhancing its commercial operations.
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Eneva's corporate rating was upgraded to the highest local level by Fitch, reflecting a stable outlook and robust operating cash generation prospects.
Negative Points
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The company faced a riser leak issue in the FSRU, temporarily halting gas movement to the Porto do Sergipe TPP, requiring a costly replacement.
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Eneva's contingency plan for the riser issue is expected to cost between BRL60 million and BRL120 million, depending on LNG load sales and energy prices.
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There was a reduction in EBITDA from the solar segment due to higher energy purchase costs and adverse hydrological conditions.
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The coal segment experienced a BRL132 million EBITDA reduction due to a mismatch between inventory costs and the medium CVU of the period.
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The company will not certify new reserves at the beginning of next year due to the lack of a drilling campaign this year, potentially impacting future resource assessments.
Q & A Highlights
Q: Could you comment on the contract established with Vale and the small-scale business operation? A: The gas supply to Vale will be through the Sergipe Hub or other origin contracts in our grid. Details on margins are confidential. The small-scale business is currently in the testing phase, and we expect it to reach rated capacity by the end of the week. Initial costs are due to commissioning processes, which will decrease as operations stabilize. - Lino Lopes Cancado, CEO