Neoenergia reports a profit of BRL 1.1 billion in the 2nd quarter of 2022
The company maintained sustainable financial growth with an increase in EBITDA and Cash EBITDA. Investments in the first half of the year amount to BRL 4.6 billion, with a focus on renewables generation and grid expansion
Neoenergia released this Tuesday (July 26th) the financial and operating results for the second quarter of 2022 and the consolidated results for the first half of the year. The profit was of BRL 1.1 billion in the quarter and BRL 2.3 billion in the semester, up 7% and 14%, respectively, against the same periods in 2021.
In the quarter, EBITDA was of BRL 3.2 billion, and of BRL 6.4 billion in the first half, up 40% versus each period in 2021. Cash EBITDA grew 32% in the quarter, reaching BRL 2.3 billion; and the positive variation in the year-to-date was of 45% at BRL 4.7 billion.
"Our trajectory is being built with solid financial discipline, investments in innovation, and sustainable development. In the second quarter of this year, we managed to keep growth below inflation rate. The results are also supported by our performance in the areas of concession and profitability of our projects", says Neoenergia CEO Eduardo Capelastegui.
The executive states that the expansion of investments has been maintained, with a focus on the development of the renewable energy generation and grids portfolio. The CAPEX in the first half of 2022 was 30% higher than between January and June 2021, reaching BRL 4.6 billion.
The evolution of renewable energy projects is part of the strategy to expand generation from clean sources. In Renewables, results were enhanced by the start of operations of Neoenergia Chafariz in the second half of 2021, a wind farm in Paraíba state with an installed capacity of 471 MW. Wind energy generation grew 123.77% in the second quarter of 2022, compared to the same period last year, reaching 917 GWh. The company currently has 32 wind farms in operation with a total installed capacity of 987MW.
Neoenergia invested BRL 693.4 million in wind farms in the first half of 2022. Highlight to the progress achieved in the construction of Neoenergia Oitis, a complex between Piauí and Bahia states that will be the company's most prominent in the segment, with an installed capacity of 566.5 MW. In June this year, Neoenergia Oitis entered the test operations phase, one month ahead of the business plan. The wind farm currently has 126MW both in commercial and test operation.
Investments made in Neoenergia Luzia, a solar complex in Paraíba state, totaled BRL 436.4 million in the first six months of 2022. The venture represents the company's debut in centralized photovoltaic generation and partially went into operation on July 6th, with 25 MW, in line with the business plan. The solar plant's total installed capacity is of 149 MWp, entirely destined for the Free Contracting Environment (ACL, in Portuguese). The entire production until 2026 has already been sold.
In the second quarter, the generation of Neoenergia Luzia started as a test operation, and from July commercial operation of part of the complex began. The start of the operation is in line with the business plan and full-fledged commercial operations will start on the second half of 2022.
In Networks, in the first six months of the year Neoenergia allocated investments of BRL 2.5 billion to the five distributors — Neoenergia Coelba (BA), Neoenergia Pernambuco (PE), Neoenergia Cosern (RN), Neoenergia Elektro (SP and MS) and Neoenergia Brasília (DF). From that amount, BRL 1.5 billion were allocated to expand the grids.
The distributors ended the second quarter with 15.9 million active consumers, up 309,000 against the same period last year. The energy injected was 18,822 GWh in the quarter (+0.8% vs. 2Q21), driven by Neoenergia Coelba and Neoenergia Elektro. Regarding the quality of the supplied product, the distributors maintained better results than the limits set for the regulatory indicator FEC (Equivalent Frequency of Interruption per Consumer Unit). More specifically, Neoenergia Brasília was compliant with the FEC this quarter. It is worth mentioning that, in the business plan for the acquisition of this distributor, this indicator was scheduled for 2023.
Among the loss indicators, the highlight was Neoenergia Brasília, which registered a percentage of 12.40%, which represents the sixth consecutive quarter with drops in the indicator. Neoenergia Elektro and Neoenergia Cosern remain within the regulatory target, and all five distributors indicate a downward trend. The consolidated collection rate in the second quarter was of 98.18%.
In liberalized businesses, net income increased 120% against to the first half of 2021 and reached BRL 357 million. The EBITDA was of BRL 519 million, 109% higher than what was registered between January and June last year. Neoenergia remains attentive to anticipate the needs of the future and the free market. The company has technology as a great ally to offer services and products that provide the best customer experience.
Neoenergia's activities have been focusing on the best environmental, social and governance practices for many years. The results report for the second quarter of 2022 informs that, on July 19th, the company's Board of Directors approved the ESG (environmental, social and governance) goals with targets to be achieved by 2025 and 2030. The company confirmed its commitment to reducing emissions in power generation, electrification of the fleet, digitalization of networks, gender equity, racial diversity, safety, and best corporate governance practices, among other topics.
By 2030, Neoenergia expects to place the intensity of emissions below 20 grams of CO2 per kWh generated, aiming to achieve carbon neutrality by 2050. Another goal in the environmental dimension is to have 90% of high and medium voltage networks digitized by 2030. In the social aspect, one of the goals is for women to occupy 35% of leadership positions by 2030 and to represent at least 35% of the individuals trained by the School of Electricians in that period. The best governance practices are demonstrated in indicators such as the number of people trained in anti-corruption training and incidents related to customer privacy. Neoenergia still aims to reach 2030 with more than 85% of large suppliers categorized as sustainable.