Auren Energia (AURE3) Q4 2024 earnings summary

Executive summary

• Completed acquisition of AES Brasil, adding 8.8 GW of installed capacity and becoming Brazil's 3rd largest generation company, with significant portfolio diversification.

• Captured BRL 43.5 million in synergies in two months post-acquisition, with annualized potential of BRL 250 million and ongoing integration and asset performance recovery plans.

• Achieved leadership in energy trading with 6.2 GW average traded in 2024, generating BRL 202 million EBITDA and BRL 302 million in mark-to-market margin.

• Focused on operational recovery of acquired wind assets and accelerated integration of AES systems and processes, with 65% of mapped systems decommissioned and SAP migration targeted for July 2025.

• Reported adjusted EBITDA of BRL 3.3 billion in 2024 and net income of BRL 272 million.

Financial highlights

• Adjusted EBITDA for 2024 reached BRL 3.3 billion, with a 5% year-over-year decline; Q4 EBITDA down 13% due to higher energy purchase costs and curtailment.

• Net revenue grew 35% year-over-year to BRL 11.3 billion in 2024, driven by higher transaction volumes and new asset operations.

• Cash conversion rate of 59% in Q4, with BRL 533 million operational cash flow.

• Net income for 2024 was BRL 272 million.

• R$230 million in dividends received from minority hydro stakes in 2024.

Outlook and guidance

• Targeting leverage reduction from 5.7x to 3.3–3.5x EBITDA within 3–4 years, supported by contracted energy sales and new capacity coming online.

• Anticipating further synergy capture in 2025, with integration and operational improvements ahead of schedule.

• Cajuína 3 project to start operations in 2026, with CapEx of BRL 150 million split over 2025–2026.

• Committed to reaching 95% wind asset availability by end of 2025.

• Additional 1.5 GW of capacity in 2025 already in commercial operation, supporting robust and predictable cash generation.