Transmissora Aliança de Energia Elétrica (TAEE11) Q3 2024 earnings summary

Executive summary

• IFRS net income surged 45% year-over-year in 3Q24 to R$409.3 million, driven by higher inflation adjustments, infrastructure revenue, and project completions.

• Regulatory net income for 9M24 grew 2.2% to R$790.8 million, with stable operational performance and high line availability.

• Strategic focus on growth, operational efficiency, and sustainability, with robust cost control and investments aligned to long-term planning.

• Key acquisition of Lot 3 (Juruá) in ANEEL's 2024 auction, supporting future revenue and operational synergies.

• BRL 600 million in dividends distributed YTD, with R$230.5 million approved for Q3 and scheduled for payment in January 2025.

Financial highlights

• Regulatory net revenues for 3Q24 were R$592.5 million, down 1.0% year-over-year; 9M24 net revenues reached R$1,748.1 million, down 3.5%.

• Regulatory EBITDA for 3Q24 was R$487.6 million (-1.2% y.o.y.), with an EBITDA margin of 82.3%; adjusted regulatory EBITDA up 5.3% year-over-year.

• IFRS net revenues in 3Q24 reached R$991.0 million (+43.8% y.o.y.), with net operating revenue for 9M24 at R$2.63 billion (+27.6%).

• Net cash from operating activities totaled R$1.04 billion in 9M24, with net debt at R$10.96 billion and average debt cost at 5.04% over 4.8 years.

• Earnings per share for 9M24 were R$1.14864, up from R$0.85852 in 9M23.

Outlook and guidance

• CapEx for 2024 expected between BRL 900 million and BRL 1 billion; 2025 guidance at BRL 1.6–1.8 billion, with BRL 300–500 million for 2026.

• Early completion and CAPEX efficiency expected for projects under construction, with several progressing ahead of ANEEL deadlines.

• Dividend payout policy for 2024 at 75% of net regulatory income, with potential increase to 90–100% in 2025, subject to market conditions.

• Ongoing focus on new growth opportunities, including capacity reserve biddings for battery storage.

• Juruá project expected to achieve EBITDA margin above 90% and CAPEX efficiency greater than 25%.