Eneva (ENEV3) Q4 2024 earnings summary

Executive summary

• Achieved record adjusted EBITDA of R$1,243 million in 4Q24, up 20% year-over-year, driven by higher thermal dispatch, new asset contributions, and strategic execution.

• Gross generation from thermal plants grew 98% compared to 4Q23, reflecting full dispatch and M&A activity.

• Successful R$3.2 billion follow-on equity offering and acquisition of 859 MW in new capacity strengthened cash generation and reduced leverage.

• Commercial operation of Parnaíba VI and full contracting of the SSLNG plant enhance long-term regulated revenue streams.

• Corporate structure simplified through mergers, and a new share buyback program was approved to enhance shareholder value.

Financial highlights

• Net revenue reached R$4,882.6 million in 4Q24, up 79% year-over-year; full-year 2024 revenue was R$11,387.5 million (+12.8%).

• Adjusted EBITDA (ex-Impairment) was R$1,243 million in 4Q24 (+20% YoY); full-year adjusted EBITDA was R$4,536.3 million (+5.9%).

• Net loss of R$963 million in 4Q24, mainly due to a R$634.7 million non-cash impairment on coal assets and exchange rate variation.

• Operating cash flow was R$1,140 million in 4Q24 (+22.2% YoY); free cash flow at R$3,866 million at year-end.

• Net debt reduced to R$13.5 billion (-21% YoY); net debt/EBITDA at 2.42x (2.18x ex-Impairment), with average debt maturity of six years.

Outlook and guidance

• EBITDA expected to increase in 2025 with full-year contribution from acquired assets and ramp-up of Parnaíba VI and SSLNG plant.

• Market conditions in early 2025 indicate rising energy prices due to unfavorable hydrology, supporting higher thermal generation and trading margins.

• Ongoing expansion projects, including Azulão 950 and Parnaíba gas reserves, are progressing on schedule, with commissioning milestones set for 2026 and 2027.

• Focus on expanding flexible thermal generation for the 2025 Capacity Reserve Auction (LRCAP 2025).

• Strategic positioning to capture opportunities in gas monetization, renewable integration, and energy export.