Neoenergia announces profit of BRL 4.7 billion in 2022
The result is 20% up on 2021. Capex is BRL 9.9 billion in the year, up by 6%, driven by the expansion of new wind, solar, and transmission projects, in addition to the expansion and improvement of networks
On Wednesday (Feb. 15) Neoenergia posted its financial and operating results for 2022 and consolidated figures for the fourth quarter of the year. The company filed a profit of BRL 4.7 billion in 2022, and BRL 936 million from October to December, up by 20% and 47%, respectively, year on year. Cash EBITDA was up by 32% in 2022, to BRL 9.7 billion; and 16% in the last quarter, to BRL 2.5 billion.
Last year, Neoenergia invested BRL 9.9 billion, up by 6% on 2021. The investments were mainly driven by the expansion of the renewable business, with new wind and solar generation projects, and in transmission. In 2022, the company began commercial operations at Neoenergia Oitis, a wind complex in Piauí and Bahia States; and at Neoenergia Luzia, the company's first solar park complex, in Paraíba State. Investment was also made in the expansion and improvement of the network for the five distributors – Neoenergia Coelba (Bahia state), Neoenergia Pernambuco (Pernambuco state), Neoenergia Cosern (Rio Grande do Norte state), Neoenergia Brasília (DF), and Neoenergia Elektro (Sao Paulo and Mato Grosso do Sul states).
The statements consider BRL 201 million adjustment at fair value related to the Teles Pires and Baguari hydroelectric plants, within the scope of the asset exchange operation with Eletrobras. With the operation, the company will receive 49% of the common shares in the Dardanelos hydroelectric power plant (MT), going on to hold 100% of the share capital, and a 0.04% stake in Neoenergia Coelba, Neoenergia Cosern, and Afluente T. Eletrobras will receive 51% of the shares in the Teles Pires hydroelectric power plant and 51% of the shares in Baguari I. Note that at the close of the operation, there will be a positive value adjustment related to the Dardanelos hydroelectric plant, which will be accounted for in 2023, with a positive net effect for the company.
Neoenergia's results underscore its consistent growth and financial discipline with the responsible allocation of capital. "We are prepared for the transformation that the energy sector in Brazil will soon undergo with the liberalization of the market. The investments in the expansion of assets, above all renewable generation projects, reflect the clear vision of the future to consolidate ourselves as the best energy company in the country", said Eduardo Capelastegui, Neoenergia CEO.
According to the executive, the plans also include a digital marketing strategy for the company to build closer relationships with consumers. "We are committed to millions of people and work daily to make sure Neoenergia is recognized as a strong, modern brand, capable of offering the best energy solutions in the Brazilian market," he added.
The first results for the environmental, social, and governance (ESG) targets for 2025 and 2030, announced last year, have been published, with an emphasis on the digitalization of networks (74.5%); women in leadership positions (28.8%); racial diversity (30%); and suppliers with sustainable practices (75%).
With these commitments, the company specifies its commitment to transparency in relevant and measurable objectives, which are priorities in its contribution to sustainable development. The ESG dimensions are part of the company's Governance and Sustainability System, coherent with a fair transition for the energy sector. The goals are also aligned with the Ten Principles of the Global Compact and the United Nations Sustainable Development Goals (SDGs).
Neoenergia ended 2022 with assets in operation and construction totaling 44 wind farms, seven hydroelectric plants, and two solar parks. The installed capacity verified at the end of the year was 4,473.3 MW.
Regarding wind farms, the company ended last year with 42 plants in operation, with an installed capacity of 1,345 MW. The portfolio of wind assets is expected to reach 1.6 GW in the coming months, of which 51% will be allocated to the Regulated Contracting Environment (RCE) and 49% to the Free Contracting Environment (FTA), aligned with the positioning strategy in the liberalization of the Brazilian energy market.
The wind and solar energy generated in the year was 3,934 GWh, 70.07% up on 2021. Of special note, Neoenergia Oitis and Neoenergia Luzia entered partial commercial operation in the third quarter of 2022, and Neoenergia Chafariz has been in full operation since the end of 2021. In the fourth quarter, generation was 1,072 GWh, 41.46% up year on year. Availability in the quarter was above 97%, as planned.
Investments in the distributors totaled BRL 5.5 billion, of which BRL 3.2 billion was allocated to the expansion of networks. In 2022, active consumers reached 16 million, up by 295,000 customers. Neoenergia ended the year with a default indicator (PECLD/ROB) of 0.32%, below the regulatory limit of 0.57%.
Regarding the quality of supply, the highlight was Neoenergia Brasília, incorporated in March 2021, which complied with DEC and FEC in 2022, one year ahead of the business plan's goal for 2023. All the distributors are below the regulatory threshold for both the Equivalent Duration of Interruption per Consumer (DEC) and the Equivalent Frequency of Interruption per Consumer (FEC). The indexes monitor failures occurring in the distribution network.
Neoenergia Brasília was also outstanding in total losses. The distributor has complied with the regulatory limit two years ahead of the stipulations in the acquisition business plan. Neoenergia Elektro and Cosern comply, while Neoenergia Coelba and Neoenergia Pernambuco continue to pursue regulatory compliance.
Impacted by the weather in the concession areas, with lower temperatures and higher volumes of rain, 76,107 GWh of energy were injected in the accumulated year, and 19,350 GWh in the fourth quarter.
Net profit was BRL 714 million, up by 58% year on year. EBITDA was BRL 1 billion in 2022, up by 52% in the period. To anticipate demand foreseen with the free market, Neoenergia continues to consolidate its brand in the Brazilian energy sector and offer new services and products.
ABOUT NEOENERGIA: A publicly traded company with shares (NEOE3) traded on the São Paulo Stock Exchange. Part of the Spanish group Iberdrola, the company has been operating in Brazil since 1997, currently being one of the leaders in the country's electricity sector. Present in 18 states and the Federal District, its business is divided into the areas of generation, transmission, distribution, and commercialization. Its distributors, Neoenergia Coelba (BA), Neoenergia Pernambuco (PE), Neoenergia Cosern (RN), Neoenergia Elektro (SP/MS) and Neoenergia Brasília (DF) serve more than 16 million customers, equivalent to a population of more than 37 million people.
Neoenergia has 5 GW of installed capacity in generation, 89% being renewable energy, and is implementing an additional 0.3 GW with the construction of new wind and solar farms. In transmission, there are 2,500 km of lines in operation and 6,100 km under construction. Through the Neoenergia Institute, it promotes sustainable development through social and environmental actions and so contributes to improving the quality of life of the communities where the company operates, especially, the most vulnerable people, always pursuing sustainable development. As part of the commitment to expanding women's participation in society, the company supports the Brazilian women's soccer teams and the Brasileirão Feminino Neoenergia championship. Since January 2021, it has been part of B3's Corporate Sustainability Index portfolio – Brazil, Bolsa, Balcão – which brings together companies that have the best corporate governance and sustainability practices.