Auren Energia (AURE3) Q3 2024 earnings summary

Executive summary

• Completed business combination with AES Brasil, creating Brazil's third largest energy company with 8.8 GW installed capacity and fully defined integration plans for synergy capture and business continuity.

• Sol de Jaíba solar complex began full commercial operation, adding 500 MWac to the portfolio and completed ahead of schedule and under budget.

• Adjusted EBITDA reached R$484 million in 3Q24, up 6.9% year-over-year, driven by trading, new solar parks, and higher dividends from hydro assets.

• Net income for Q3 was R$270.8 million, reversing a net loss of R$838.1 million in 3Q23, mainly due to the absence of one-off tax effects.

• Auren became a component of the Ibovespa index, reflecting increased market relevance.

Financial highlights

• Net revenue grew 26% year-over-year to R$2,047 million in 3Q24, driven by a 37% increase in traded energy and new solar park operations.

• Adjusted EBITDA margin was 23.7% in 3Q24, down 4.2 p.p. from 3Q23 due to higher energy purchase costs.

• Trading segment contributed nearly R$270 million and delivered a positive mark-to-market aggregation of R$296.9 million.

• Free cash flow was R$283.8 million, up from negative R$1,380.6 million in 3Q23, with cash conversion rate at 84%.

• Net debt/EBITDA ratio at 1.6x; gross debt at R$8.3 billion, average maturity 7.3 years, and cash position of R$5.5 billion.

Outlook and guidance

• 95% of the portfolio is contracted for 2024–2026, ensuring high revenue visibility, with long-term contracting at 62% up to 2023.

• Integration with AES Brasil expected to drive operational efficiency and value creation through synergy capture.

• Ongoing focus on market opportunities, including capacity and transmission auctions, and maintaining high cash conversion and disciplined debt management.