Q2 2024 Light SA Earnings Call Transcript
Key Points
- Light SA (LGSXY) successfully approved a recovery plan with 99.41% and 99.12% creditor support, indicating strong backing for the company's future.
- The company achieved a significant reduction in debt by converting BRL2.2 billion in credits into shares and plans a private capital increase of up to BRL1.5 billion.
- Light SA (LGSXY) reported a consolidated cash position of BRL2.8 billion, an increase of over EUR600 million compared to December 2023.
- The collection rate improved to 98.6% for the 12 months ending June 2024, showing enhanced financial discipline.
- Adjusted EBITDA for the distribution company increased by 23.9% year-over-year, driven by a significant growth in consumption and market invoicing.
- The company continues to face challenges with rising losses in risk areas, impacting overall operational efficiency.
- Quality of supply issues were reported, particularly in Ilha do Governador, requiring urgent attention and investment.
- The energy generation and trading segment experienced a 17.7% decline in EBITDA due to expiring contracts with higher past energy sales prices.
- DEC (Duration of Equivalent Interruption per Consumer Unit) levels have been above regulatory limits for two consecutive quarters, raising concerns about service reliability.
- The concession renewal process is still pending, creating uncertainty about future operations and investments.
Good morning, everyone, and welcome to Light's second quarter 2024 results webinar. This call will be held in Portuguese and simultaneously translated into English. To change your audio, you can select the desired language from the interpretation button at the bottom of the screen.
We would like to inform you that this event is being recorded. The audio will be available on the investor relations website as well as the material used in this presentation, which is already available for download.
(Operator Instructions) Before we continue, I would like to emphasize that any statements made during this presentation regarding the company's business prospects, projections, operational and financial targets are only the beliefs and assumptions of the company's management based on the information that is currently available to them.
Forward-looking statements are not a guarantee of performance. They involve risks, uncertainties and assumptions. They refer to future events and therefore depend on circumstances that may or may not occur. Investors should understand that general economic
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