Alupar Investimento (ALUP11) Q3 2024 earnings summary

Executive summary

• Achieved strong first quarter and 3Q24 performance with project auctions in Peru totaling $443 million in investments and $66.1 million in new revenues, and a robust investment cycle in Latin America projected at $732.6 million through 2029.

• Net revenues reached R$928.6 million in 3Q24, up 43.1% year-over-year, driven by strong transmission segment performance and inflation adjustments in concession assets.

• Net income surged to R$363.8 million, a 263.7% increase from 3Q23, mainly due to EBITDA growth, lower financial expenses, and a significant tax benefit in the transmission segment.

• Dividends increased to BRL 0.18 per unit, with total payments rising from BRL 36.6 million to BRL 76.1 million, and interim dividends of R$76.1 million (R$0.24 per unit) approved.

• Significant progress in key implementation projects in Colombia, Brazil, Peru, and Chile, with major transmission lines nearing completion and new projects in early or pre-construction phases.

Financial highlights

• IFRS net revenues rose 43.1% year-over-year to R$928.6 million, with transmission segment net revenues (IFRS) up 63.6% to R$743.0 million.

• IFRS EBITDA increased 52.2% to R$692.8 million, with adjusted EBITDA margin at 85.9% and regulatory EBITDA margin at 79.9%.

• IFRS net income surged 263.7% to R$363.8 million, aided by higher EBITDA and a significant tax benefit.

• Net debt stood at R$8,761.7 million, with net debt/EBITDA at 3.0x, and consolidated gross debt at R$12,270.8 million.

• Regulatory net revenues grew 2.9% to R$820.3 million; regulatory net income up 11.9% to R$182.9 million.

Outlook and guidance

• Ongoing implementation of major transmission projects in Brazil and Latin America, with R$8 billion in investments and consistent returns expected through 2029.

• New projects in Peru, Chile, and Colombia are advancing, with regulatory approvals and construction milestones achieved, and concession terms for new projects extend up to 30 years.

• Ongoing analysis of participation in future auctions, both domestic and international, with a focus on attractive opportunities and competitive positioning.