Neoenergia files BRL 2.5 billion in Cash EBITDA in Q3
Cash EBITDA was up by 28% in the quarter, and by 39%, to BRL 7.2 billion, year to date; profit was driven by the expansion of Renewable projects, and good performance by distributors
Neoenergia reported on Tuesday (October 25th) its financial and operating results for the third quarter of 2022 and the consolidated results for the first nine months of the year. Cash EBITDA was up by 28% in the quarter, to BRL 2.5 billion, and by 39% in 2022, to BRL 7.2 billion.
The company filed a profit of BRL 1.5 billion in the quarter, and BRL 3.8 billion from January to September, up by 17% and 15%, respectively, year on year. This result was driven by the progress of Renewable projects, in addition to the good performance of distributors. The company started the commercial operation in Neoenergia Oitis, a wind complex between Piauí and Bahia states, and Neoenergia Luzia, the company's first solar park complex, in Paraíba state. This adds to increased generation by Neoenergia Chafariz, a complex of wind farms in Paraíba state, which has been in full operation since last year.
Profit was also impacted by the recognition of a BRL 678 million with the effective merger and transfer of direct corporate control of Neoenergia Brasília da Bahia PCH III to Neoenergia S.A.
"Neoenergia's path has remained consistent, reflecting our financial robustness, excellence in asset operation, the correct allocation of capital in new investments, and our commitment to the energy transition. We always want to go further, as a sustainable company, digitally connected to people and companies, to improve their lives", says Neoenergia CEO Eduardo Capelastegui.
Capex was BRL 7.1 billion between January and September of this year, up by 12% year on year. In addition to the expansion of Renewable projects, the company's investments were also focused on improvements and the expansion of networks at the five distributors, as well as transmission projects.
With a strategy to expand energy generation from clean sources, Neoenergia invested about BRL 1.5 billion in the Renewables business in the first nine months of the year, and BRL 354 million in the quarter. The company ended the third quarter of 2022 with 44 wind farms and two solar farms in operation and under construction.
In the third quarter, 1,434 GWh of wind and solar energy were generated, up by 91.69% year on year. In the first nine months of the year, generation was 2,861 GWh, up by 84% year on year, mainly due to the increased generation by Neoenergia Chafariz. Availability in the quarter was above 97%, as planned.
There are 37 wind parks in operation, with an installed capacity of 1,163 MW. This portfolio is expected to reach 1.6 GW in the coming months, 51% of which will go to the Regulated Contracting Environment (ACR, in Portuguese), and 49% to the Free Contracting Environment (ACL, in Portuguese), aligned with the positioning strategy in the liberalization of the Brazilian energy market.
Investments in turbines have been made In Neoenergia Oitis. Installed wind capacity is 176 MW, with 47 wind turbines in operation.
Investment in Neoenergia Luzia has reached BRL 454.2 million in the year. 124 MWp are already in operation (commercial and being tested), and the rest is expected to enter in the coming months.
In the first nine months of the year, Neoenergia invested BRL 4 billion in the five distributors — Neoenergia Coelba (BA), Neoenergia Pernambuco (PE), Neoenergia Cosern (RN), Neoenergia Elektro (SP and MS) and Neoenergia Brasília (DF). Of this total, BRL 2.4 billion were invested in network expansion.
The concessionaires ended the third quarter with 15.9 million active consumers, up by 294,000 year on year. As a result of the weather in the concession regions, with milder temperature and a higher volume of rain, 18,458 GWh were injected in the quarter, and 56,756 GWh in the accumulated year.
Regarding the quality of supply, Neoenergia Coelba, Neoenergia Pernambuco, Neoenergia Cosern, and Neoenergia Elektro performed better than the limits stipulated by the regulatory indicators, Equivalent Frequency of Interruption per Consumer Unit (FEC, in Portuguese) and Equivalent Duration of Interruption per Consumer (DEC, in Portuguese). Neoenergia Brasília has been part of the FEC since Q1 2022. Note that, in the business plan for the acquisition of this distributor, this indicator covered 2023.
Regarding total losses, the indicators continue to improve, falling in four of the five distributors compared with the second quarter of this year. Neoenergia continues to pursue regulatory levels. Neoenergia Brasília filed 12.18%, which was the seventh consecutive quarter of reductions in the indicator. Neoenergia Elektro and Neoenergia Cosern remain within the regulatory limit. The consolidated collection rate in the third quarter was 99.20%.
Net income was up by 98% on the first nine months of 2021, to BRL 589 million; and up by 72% on the same quarter last year, to BRL 232 million. EBITDA was BRL 848 million, 86% up on January to September last year; and up by BRL 329 million, 59% up on the same quarter in 2021. Neoenergia focuses on customers, anticipating future demand with the transition to the open energy market. The company expects to expand the offer of its services and products, to provide experiences for customers and consolidate its brand in the Brazilian energy sector.
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, and is one of the leaders in the country's electricity market. 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 15.9 million customers, totaling more than 37 million people.
Neoenergia has 4.8 GW of installed capacity in generation, of which 89% is renewable energy, and is implementing an additional 0.4 GW with the construction of new wind and solar farms. In transmission, there are 2,300 km of lines in operation and 6,300 km under construction. Through the Neoenergia Institute, it promotes sustainable development through social and environmental actions and so contributes to improving quality of life for the communities where the company operates, especially, the most vulnerable people, always aiming for sustainable development. As part of its commitment to expanding women's participation in society, the company supports the Brazilian women's soccer teams and the Neoenergia Brazilian Women's Soccer championship. Since January 2021, it has been part of B3's Corporate Sustainability Index portfolio – Brazil, Bolsa, Balcão – for companies that have the best corporate governance and sustainability practices.