In This Article:
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Gross Energy Production: Increased by 24% compared to 2023.
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Adjusted EBITDA (Q4 2024): Increased by over 18%.
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Adjusted EBITDA (12 months): Increased by approximately 20%.
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Net Profit: Increased by BRL 4.3 billion.
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Net Operating Revenue: Increased by 4.4%.
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Net Debt: BRL 20 million.
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Leverage: Increased from 2.7% to 3.2% of adjusted EBITDA.
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Cash and Equivalents: Maintained at approximately the same level as last year.
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Dividend Payout: 55%.
Release Date: February 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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ENGIE Brasil Energia SA (EGIEY) achieved an early entry into operation for several projects, reaching 25% of installed capacity in the Photovoltaic Complex.
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Gross energy production increased by 24% compared to 2023, demonstrating strong operational performance.
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Fitch Ratings reaffirmed the company's long-term national rating at AAA for Brazil, supporting future project pursuits.
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ENGIE Brasil Energia SA (EGIEY) became a component of the Dow Jones Sustainability Emerging Markets Index, highlighting its commitment to sustainability.
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The company reported a significant increase in adjusted EBITDA for the fourth quarter of 2024, with a growth of over 18%.
Negative Points
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Curtailment affected approximately 9% of solar generation in 2024, impacting the total portfolio.
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There was a decrease in biomass generation due to a higher penalty, leading to a significant decrease in solar energy output.
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The company experienced a modest increase in adjusted EBITDA and margin compression, raising concerns about profitability.
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ENGIE Brasil Energia SA (EGIEY) faced challenges with high volatility in energy prices, impacting market liquidity.
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The company anticipates leveraging to surpass 3 times the net debt to EBITDA ratio, which could be affected by rising interest rates.
Q & A Highlights
Q: What is the company's guidance on dividend payouts for 2025? A: Eduardo Takamori, Chief Financial Officer, stated that while specific dates are not yet available, the company maintains a minimum payout policy of 55%, which has been respected for over a decade. The payout depends on market evolution and opportunities, but the company aims to distribute over half of the generated amount to shareholders.
Q: Can you provide more details on the costs associated with materials from third parties? A: Eduardo Takamori explained that the variations in costs are due to the inclusion of new assets in the M&A portfolio and non-recurring maintenance actions in hydropower plants. These factors have contributed to the cost variations observed.