The following is a summary of the Engie Brasil Energia S.A. (EGIEY) Q4 2023 Earnings Call Transcript:
Financial Performance:
Engie Brasil reported a high mean energy price maintenance, with improved financial balance of the Jirau project.
Leverage increased to 2.1 times and there was growth of 4.7% from 2022 to 2023.
Net profit was reported to increase almost 24% facilitated by low inflation.
The company completed their energy transition, becoming the largest 100% renewable electricity generator.
Engie Brasil saw significant investments, hitting R$28.5 billion, with high leverage of 84%.
Net operating revenue had a slight decrease in revenue generation by R$250 million YoY and the net profit increased by nearly 29%.
Debt reduction efforts were successful as the debt increased from R$18 billion to almost R$21 billion in 2023, but kept net debt at a level of R$15 billion.
Business Progress:
The company saw significant growth in number of clients which increased by 66% over the past three years.
Santo Agostinho Wind Complex project is nearing completion adding renewable capacity contracted in the free market.
Assu Sol, photovoltaic project, is expected to be operational by 2026.
Engie Brasil aims to expand on energy generation and participation in the transmission segment.
The company was included in the S&P Global Sustainability Year Book and its CDP Climate Change rating improved to an A- rating.
Future plans include high levels of decarbonization, renewal of thermoelectric generation by 2026, and product diversification.
Over R$9.6 billion is set to be invested in the development of new assets, balancing it with an anticipated increase in debt.
More details: ENGIE BRASIL ENERGIA SA SPON ADR EACH REP 1 ORD SHS IR
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