Release Date: November 14, 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, Financial) reported a 5.9% market growth compared to the third quarter of 2023, marking the highest rate in the last 11 years.
- The company completed the acquisition of 100% of shares in Infras, enhancing its presence in the natural gas distribution market.
- Energisa achieved a significant milestone in distributed generation, reaching 420 megawatt peak in installed capacity.
- The company maintained a strong financial discipline, with a debt-to-EBITDA ratio of 2.8 times, indicating sound financial management.
- Energisa was recognized as a great place to work, achieving high rankings in both national and state levels, reinforcing its commitment to employee satisfaction.
Negative Points
- The recurring EBITDA fell by 13.5% to 1.8 billion in the quarter, impacted by tariff adjustments and other factors.
- The company faced challenges with overcontracting, which required provisions impacting regulatory assets and liabilities.
- There was a notable increase in the provision for profit sharing and bonuses, negatively affecting the quarter's financial results.
- Energisa experienced a reduction in investments in distributed generation due to the completion of several power plants in 2023.
- The company is dealing with the impact of heat waves and high temperatures, which have influenced energy losses and operational dynamics.
Q & A Highlights
Q: Can you comment on the cost dynamics for the distributor in 2025, especially regarding the renewal of concession contracts?
A: CFO: After significant adjustments in 2023 to meet new quality standards, most adjustments have been made. Moving forward, costs should align with inflation.
Q: Regarding the recurring P MS O in Q4 2024, should we expect any impact from leveling with inflation or is it already reflected in the results?
A: CFO: The structure is set, and we expect no significant changes. The goal is to maintain stability, with no major deviations anticipated.
Q: Can you discuss the loss dynamics and PDD this quarter and the actions to combat them?
A: Vice President of Networks: We had positive impacts from weather and technical losses. We are using intelligence models and centralized measurement systems to combat losses, especially in areas with higher loss rates.
Q: Could you provide more details on the Infras acquisition and when the cash flow will start?
A: CFO: Payments have been made, with the first installment at approximately 109 million and the second at 121 million. Cash flow is expected to start by the end of December.
Q: Can you explain the dynamics of the raw margin and megawatt-hour parcels, especially with the recent changes?
A: Vice President of Regulation: The third quarter was impacted by tariff readjustments and negative results from EG PM. However, average consumption per customer remains strong, and we expect alignment in the fourth quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
