ENGIE reports third quarter net earnings of R$ 742.7 million
ENGIE Brasil Energia’s third quarter 2019 results were marked by positive indicators, the company reporting a net income of R$ 742.7 million (R$ 0.9099/share), 56.2% higher than reported for the same period in 2018. Ebitda (earnings before interest, taxes, depreciation and amortization) in 3Q19 amounted to R$ 1.58 billion, an increase of 55.1% compared with 3Q18. Net operating revenue was R$ 2.49 billion, 0.2% higher than recorded for the same period last year.
“Results reflect the recent expansion in our installed capacity, the first full quarter with a positive contribution from TAG to Ebitda, as well as the efficient management of the company’s portfolio and good control over costs”, explains ENGIE Brasil Energia’s chief executive officer, Eduardo Sattamini. “The entry into commercial operations of three new plants – the Campo Largo (Phase I) and Umburanas (Phase I) wind complexes – and the Pampa Sul Thermoelectric Power Plant represented a contribution of 10,5% of the value of the EBITDA in the third quarter. Considering the costs of the new plants starting operations, the company reported a 10.2% reduction in total costs, evidencing the increase in operational efficiency”, he adds.
Another positive impact was the receipt of R$ 321 million in the period with the execution of a performance bond as indemnification for a delay in the delivery of work on the Pampa Sul plant. “Even if this were excluded, our Ebitda would have been about 25% higher year-on-year”, the executive points out. “These results are reason to remain excited about future prospects and proceed with our strategy of seeking leadership in the energy transition process”.
Issue of Debentures – In August, ENGIE Brasil Energia concluded its ninth debenture issue in four series in the amount of R$ 1.6 billion and supporting investments in the Assu V (solar), Umburanas (wind), Jaguara and Miranda (hydro power) projects. At the time, this was the largest infrastructure debenture issue in Brazil.
Financing – On October 29, the company finalized a financing agreement with the National Development Bank – Banco Nacional de Desenvolvimento Econômico e Social (BNDES) for R$ 1.26 billion, to be allocated for the implementation of the Umburanas Wind Complex with an installed capacity of 360 MW and commercially operational since April.
Important Events – In 3Q19, licenses for installation of the Ponta Grossa substation and for the first transmission lines of the Gralha Azul Transmission System in the state of Paraná were issued. The Gralha Azul project involves more than 1,000 km of lines and five substations. Another highlight of the period was the award to the company for the tenth time of the Transparency Trophy, sponsored by the National Association of Finance, Administration and Accounting Executives (Anefac), the Financial, Experian.
In October, ENGIE was elected Company of the Year and ENGIE Brasil Energia as the best company in the energy sector in the Época Negócios 360° 2019 yearbook.
Dividends – The Board of Directors has approved the distribution of R$ 893.4 million in the form of intermediate dividends (R$ 1.0949497919/share), equivalent to 100% of the registered distributable net income for the first half of 2019. In addition, approval was given for the credit of R$ 354 million (R$ 0.4338619496/share) as interest on equity capital for fiscal year 2019. Payouts will be made on a date to be decided in due course by the Management Board.
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).