ISA Energía Brasil (ISAE4) Q3 2024 earnings summary

Executive summary

• Net revenue reached R$1,179.9 million in 3Q24, up 8% year-over-year, and R$3,400.5 million in 9M24, up 18.2% from 9M23.

• EBITDA for 3Q24 was R$958.7 million (+9.4% YoY), with a margin of 81.3%; 9M24 EBITDA was R$2,746.7 million (+19.3% YoY).

• Net income in 3Q24 was R$431.6 million, down 9% YoY; 9M24 net income was R$1,266.4 million, up 21.6% YoY.

• Significant progress in investment plan, including greenfield and retrofitting projects such as Piraquê, Riacho Grande, and Minuano.

• Strategy focused on sustainable value creation, balanced investment, dividends, and positive social/environmental impact, especially in energy transition.

Financial highlights

• Net revenue in 3Q24 rose by R$87.5 million (+8% YoY), driven by tariff review, new projects, and inflation adjustments.

• Net revenue ex-RBSE for 3Q24 increased 21.2% YoY, mainly due to retrofitting and greenfield project integration.

• Investments totaled R$868 million in 3Q24, a 64.3% increase over 3Q23, with record CapEx in greenfield and retrofitting projects.

• Sale of land in Jundiaí generated R$20–22 million in net revenue.

• Financial expenses rose 37.9% in 3Q24 due to higher debt and interest rates.

Outlook and guidance

• Seven greenfield projects under construction, with remaining ANEEL investment of ~R$10 billion and RAP of R$1,028.9 million for 2024/2025.

• Retrofitting investments of R$5 billion authorized by ANEEL to be executed by 2028.

• Confident that new project revenues will offset the end of RBSE revenues by 2028.

• Continued commitment to distributing at least 75% of regulatory net income as dividends.

• RAP/CapEx ratio expected between 12% and 17% for upcoming projects.