In This Article:
Release Date: March 21, 2025
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) achieved a record quarterly adjusted EBITDA of 1.2 billion reais, marking a 20% increase compared to Q4 2023.
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The company's leverage ratio significantly improved, decreasing from 4.4 times in June to 2.4 times by the end of 2024.
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Successful completion of the riser replacement at the CEGP hub minimized financial impacts and resumed operations efficiently.
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The start of commercial operations at Parnaba 6 and the gas liquefaction plant enhances generation capacity without increasing gas consumption.
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Eneva SA (BSP:ENEV3) has a robust cash position of 38,866 million reais, providing a strong financial foundation for future growth.
Negative Points
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The company recognized an impairment in its coal-fired power plants due to changes in assumptions for asset renewal, impacting financial results.
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Energy trading segment experienced a reduction in EBITDA by 62 million reais due to lower commercial margins.
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The solar segment faced a negative impact of 59 million reais due to partial unavailability and higher energy purchase costs.
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Net financial results were negatively impacted by non-cash items, including exchange rate variations and mark-to-market swaps.
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The company faced a net loss of 963 million reais in Q4 2024, influenced by one-off accounting effects and exchange rate fluctuations.
Q & A Highlights
Q: Could you provide more details about the results of the trading company and the operations carried out in Q4 2024 in terms of market to market? A: In Q4 2024, we initially saw prices trending upwards due to below-average rains. However, this trend reversed in November and December, leading to lower prices and impacting our results. We believe in a recovery in 2025, as prices have started to rise again, indicating that the conditions in November, December, and January were atypical.
Q: What are your expectations for prices and dispatch in 2025, particularly concerning Futura and energy trading? A: We expect prices to rise in 2025 due to unfavorable hydrology and changes in the ONS model. This will likely impact thermal generation, especially after the rainy season. For Futura, higher prices may be offset by transmission limits, but we anticipate a normalization of results as curtailment issues decrease.
Q: How exposed is the company to price differences between submarkets? A: We have some exposure to submarkets, but it is managed within approved risk limits. We actively manage these exposures, and while there are differences in volumes sold and generated across markets, they are not significant enough to cause concern.