Eletrobrás (ELET3) Q3 2024 earnings summary

Executive summary

• Achieved significant operational efficiency and full cost management autonomy, with 2025 marking the end of major budget adjustments for the first time in 60 years.

• Regulatory net operating revenue rose 8.2% YoY to R$10.6 billion, driven by a R$1.3 billion boost from the Tucuruí hydrological risk renegotiation, partially offset by lower transmission revenue due to RAP revision.

• Adjusted IFRS net income surged 588% YoY to R$7.6 billion, reflecting higher EBITDA and a R$5.4 billion positive impact from transmission asset remeasurement.

• Solid cash position, with R$28.4 billion as of 3Q24, sufficient to cover four years of debt repayments.

• Completed merger of Furnas, concluded Reserve Energy Contracts, and sold CTEEP shares.

Financial highlights

• Gross revenue grew 22.9% YoY to R$12.96 billion; net operating revenue rose 26.9% YoY to R$11.04 billion.

• Net income was R$7.2 billion; adjusted net income was R$7.6 billion, up 588.3% YoY.

• Regulatory EBITDA was R$6.97 billion, up 7% YoY; adjusted regulatory EBITDA was R$6.78 billion, up 8.7% YoY.

• Raised R$22.1 billion in 2024, ending the quarter with approximately R$28.4 billion in cash, providing four to five years of debt amortization coverage.

• Reduced compulsory loan liabilities by R$945 million versus 2Q24.

Outlook and guidance

• Ongoing investments in asset modernization and expansion, with 245 transmission projects expected to add R$1.8 billion in RAP by 2029.

• Committed to maintaining PMSO below R$7 billion in 2024, below R$6 billion in 2025, and around R$5.5 billion in 2026.

• Energy sales expected to remain robust, with 38.7 TWh sold in 3Q24, up 18% YoY.

• Anticipate ongoing price volatility in the energy market, with a positive position for Q4 2024 and 2025.

• Positioned to invest in modernization, participate in transmission auctions, and manage liabilities.