Eneva (ENEV3) Q3 2024 earnings summary

Executive summary

• Consolidated EBITDA reached R$1,134 million in 3Q24, up 27% year-over-year, driven by strong thermal dispatch and record exports to Argentina.

• Record operating cash flow of R$1.3 billion in 3Q24, surpassing the full-year 2023 figure, supported by asset availability, dispatch, and working capital improvements.

• Net income for the nine months ended September 2024 reached R$1.50 billion, up from R$543 million year-over-year.

• Major follow-on share offering raised R$3.2 billion, funding acquisitions and strengthening the capital structure.

• Fitch Ratings upgraded the corporate rating to 'AAA (bra)' with a stable outlook.

Financial highlights

• Net operating revenues for 3Q24 were R$2,581.2 million, up 8.4% year-over-year; EBITDA margin improved to 43.9%.

• Net debt/EBITDA ratio improved to 3.5x in 3Q24, expected to reach 2.1x post-M&A and follow-on.

• Net financial result improved to negative R$478 million from negative R$636 million year-over-year, mainly due to exchange rate effects.

• Cash position at quarter-end was R$2,123 million.

• Investments in 3Q24 totaled R$966.9 million, with 73% allocated to projects under construction.

Outlook and guidance

• Leverage is expected to further decrease in 4Q24 after the follow-on and full completion of the BTG asset acquisition.

• Riser replacement at Sergipe Hub is expected to restore supply by end of 4Q24, with costs estimated at R$60–120 million.

• Proceeds from the follow-on will accelerate the business plan, including greenfield and brownfield projects, E&P investments, and M&A.

• Dividend payments possible for 2024, but extraordinary dividends unlikely due to investment plans.

• Exploration program to resume in 2025–26 in Parnaíba and Amazonas basins, with new proprietary rig and reserves certification in Dec/25.