ENGIE Brasil Energia reports 20% growth in second quarter profits
Despite the continuing instability in the economy, there were several positive aspects to ENGIE Brasil Energia’s second quarter 2018 earnings. The Company reported a net income of R$ 589.2 million (R$ 0.9026/share), a 20% improvement over the same quarter in 2017. Another indicator reporting favorable growth was Ebitda (earnings before interest, taxes, depreciation and amortization) at R$ 1,217.9 million, an increase of 42.4% compared with the same period in 2017.
“The good results are a reflection of the capacity to manage the portfolio and also the contribution from recently acquired assets – the Jaguara and Miranda hydroelectric plants – and the improvement in operating efficiency”, declares ENGIE Brasil Energia’s Chief Executive Officer, Eduardo Sattamini. “We expect to maintain our good commercial, financial and operational performance in the second half as well as expanding the contribution from new assets and the client portfolio”. Sattamini adds that over the long run, it is the Company’s intention to invest in retail trading, digitization of processes and in the lengthening of average concession duration through the medium of new plants and transmission lines. “We are looking into the future to anticipate, adapt and lead the energy transition”.
In the second quarter 2018, ENGIE Brasil Energia’s net operating revenue was R$ 2,135 million, an increase of 26.9% (R$ 453.1 million) compared with the same quarter in 2017. Sales in the quarter were 9,582 Gigawatts/hour (GWh), or 4,388 average Megawatts (MW), 7.9% more than was sold in the same period last year. The average price of energy sales agreements in the quarter was R$ 181.56 per MWh, 1.7% higher year-on-year.
INFRASTRUCTURE DEBENTURES
During the quarter, the Company replaced its bridging loan used to acquire the Jaguara and Miranda plants by issuing R$ 1.8 billion in debentures in order to lengthen its debt profile through the intermediary of its Jaguara and Miranda subsidiaries. In July, the Company concluded a further issue of R$ 746 million in infrastructure debentures in two series, with seven and ten year terms, the resources being allocated to the Campo Largo, Jaguara and Miranda operations. “The market response to these issues reflects recognition of the quality of the finance that was structured for the acquisition of the plants, the debenture issue for Jaguara and Miranda being two times oversubscribed while the ENGIE Brasil Energia issue was 1.7 times oversubscribed”, Sattamini said.
WIND FARMS
The Trairi Wind Complex (CE) began operating on a fully remote basis out of the Generation Operations Center at the Company’s head office in Florianópolis during the second quarter. On July 4, the Campo Largo VII Wind Farm in the state of Bahia went into commercial operations, adding a further 29.7 MW of renewable, non-conventional energy to the generator complex. Umburanas, where construction work is in progress, will start operations in 2019. The Campo Largo I and Umburanas I wind complexes, in their initial phases and with capacities of 326.7 MW and 360 MW, respectively, absorbed R$ 766.7 million in investments alone in just the first half of 2018. ENGIE’s wind farm cluster in the region has a total potential capacity of 1.5 GW.
SOLAR GENERATION
ENGIE Brasil Energia took a further strategic step forward in the context of the energy transition with the acquisition of all the remaining shares of ENGIE Geração Solar Distribuída, worth R$ 35.1 million.
DIVIDENDS
The Board of Directors approved the payout of R$ 1,146.0 million to shareholders as interim dividends corresponding to R$ 1.7557267392/share and representing 100% of distributable net income for the first half of 2018. The dividend payout will be made according to cash availability and investments scheduled for the year.
ABOUT ENGIE
ENGIE is a global reference in low-carbon energy and services. With its 97,000 employees, its customers, partners and stakeholders, the Group is committed to accelerate the transition towards a carbon-neutral world, through reduced energy consumption and more environmentally-friendly solutions. Inspired by its purpose (“raison d’être”), ENGIE reconciles economic performance with a positive impact on people and the planet, building on its key businesses (gas, renewable energy, services) to offer competitive solutions to its customers. Turnover in 2022: 82.6 billion Euros.
In Brazil, ENGIE, leader in 100% renewable power generation in the country, operates in generation, commercialization and transmission of electric power, gas transport and energy solutions. The Company
has in the country an installed capacity of 12,5 GW, originated from renewable sources and with low GHG emissions, such as hydro, solar and biomass power plants, and windfarms.
With the acquisition of Transportadora Associada de Gás – TAG, ENGIE now also owns the largest natural gas transportation network in the country, at 4,500 km and transecting 10 states and 191 cities.
The Group has a complete portfolio of integrated solutions focused on reducing costs and improving the infrastructure for companies and cities, such as energy efficiency, public lighting, energy monitoring and management.
With 2,800 employees, ENGIE’s turnover in Brazil in 2023 was of R$ 11.7 billion. ENGIE trades on the B3 through its energy generation and trading company, ENGIE Brasil Energia, under the ticker EGIE3. In addition to being a B3 Novo Mercado component, the Company is one of the very few companies that have been listed in the Business Sustainability Index since its creation in 2005. In 2021, ENGIE Brasil Energia was included in the Carbon-Efficient Index (ICO2), made up of IBrX 100 companies that are most transparent in terms of GHG emissions reporting and how they are preparing for a low-carbon economy.
The company also received in May 2024 the certification Great Place to Work, a recognition which validates the continuous commitment of the company to create a positive and inclusive work environment for all.
The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, Euronext 100, FTSE Euro 100, MSCI Europe) and non-financial indices (DJSI World, Euronext Vigeo Eiris – Europe 120/France 20, MSCI EMU ESG screened, MSCI EUROPE ESG Universal Select, Stoxx Europe 600 ESG-X).