Light (LIGT3) Q2 2024 earnings summary

Executive summary

• Judicial Reorganization Plan approved and ratified in June 2024, with capital raise, debt restructuring, and payment options for creditors; effects expected in 3Q24.

• Second quarter of 2024 marked a milestone in restructuring, focusing on capital structure, operational efficiency, and concession renewal.

• Distribution business saw strong operational and financial recovery, with Adjusted EBITDA up 135.2% YoY in 2Q24 and 23.9% for 6M24.

• Generation and Trading segments faced margin pressure due to lower prices and higher costs, with EBITDA down 20.6% YoY in 2Q24 and 17.7% for 6M24.

• Consolidated cash position reached R$2.8 billion at June 2024, up R$672 million from December 2023.

Financial highlights

• Distribution Adjusted EBITDA reached R$623.6 million in 2Q24 (+135.2% YoY); 6M24 Adjusted EBITDA at R$754.9 million (+23.9% YoY).

• Adjusted billed sales grew 8.7% YoY in 2Q24, driven by higher residential and commercial consumption due to elevated temperatures.

• Collection rate improved to 98.6% in June 2024, up 0.8 p.p. YoY, supporting lower provision for doubtful accounts.

• Adjusted EBITDA minus CapEx for the first six months was R$371 million, up over 60% YoY.

• Distribution net profit of R$119.2 million in 2Q24, reversing a loss in 2Q23; 6M24 net loss of R$310.5 million due to financial expenses and tax impairments.

Outlook and guidance

• Effects of Judicial Reorganization Plan to be recognized in 3Q24; capital increase and debt conversion expected post-concession renewal.

• Expectation to reach regulatory levels for DEC and FEC by year-end, with reinforced operational teams.

• Ongoing investments in network modernization and operational quality, with focus on loss reduction and customer service improvements.