ISA Cteep reported a 33.7% higher profit in the 1st quarter

Energy transmitter ISA Cteep reported this Monday a net profit of 409.2 million reais for the first quarter, up 33.7% in the annual comparison, a performance that reflects the growth strategy with new assets and investments for increase revenue, company executives said.

Between January and March, the broadcaster’s operating result measured in terms of Ebitda amounted to 896.9 million reais, an increase of 21.4% compared to the same period in 2023, while net revenues increased by 24%, 3%, to 1.1 billion reais.

“Results are growing… Very much in line with what we are aiming for, which is to seek business longevity for the company, at the same time we increase our asset base while respecting social and environmental impact,” said CEO, Rui Chammas.

He also highlighted ISA Cteep’s more than 50% increase in investments compared to the first quarter of 2023, as new “greenfield” projects begin to take off.

One process that could unlock more value for ISA Cteep shares is the sale of Eletrobras’ stake in the company, said chief financial officer, Carisa Portela.

Owner of 35.74% of Cteep’s capital, Eletrobras launched an offer to sell its stake last year, but withdrew it from the market. This month, the electricity company obtained a “waiver” from bondholders to proceed with various types of operations, such as transfers of assets and changes of control of subsidiaries, which should allow this process to resume.

“We see it very favorably… Eletrobras is an excellent shareholder, it always supports us a lot… But it would give more liquidity to our shares, today we only have a third of the real shares traded on the stock exchange”, underlined the director of the financial department of ‘ISA Cteep, Carisa Portela.

“This increases the (trading) volume, we stay on the Ibovespa and we automatically become more liquid, we attract more attention, we tend to increase the value of the company’s shares even more,” he added.

The broadcaster’s general director, Rui Chammas, stressed that the company is not involved in this process led by Eletrobras and that it has no information on when it might take place.

“RBSE” AND AUCTIONS

The company is also awaiting a result from regulatory agency Aneel regarding compensation paid to transmitters who renewed contracts in 2012, a billion-dollar process that is under questioning due to an alleged miscalculation and whose revision could reduce payments to Eletrobras and Cteep.

The trial is stalled at Aneel, but there are rumors that it could be discussed soon by the council, given the approaching departure from Aneel of Hélvio Guerra, director responsible for the trial, whose mandate expires in May.

“We don’t know what the solution will be, whether there will be a review or not… In our opinion it is a question already judged in second instance by Aneel, we don’t see why there would be room for a review at administrative level”, said Chammas.

The impact of correcting this compensation, paid through charges included in the electricity bill, is estimated at approximately 16 billion reais and would primarily benefit producers and consumers.

Regarding the second transmission auction scheduled for 2024, he said the company will analyze opportunities, but that it will be responsible not to acquire projects that could increase its leverage to the point of putting the company’s investment grade at risk.

ISA Cteep was one of the main winners of the competitions organized last year, winning three large projects, which are expected to be completed starting from 2026. Given the commitments made, the company has decided not to participate in this year’s March auction year.

The company ended the first quarter with a net debt-to-EBITDA ratio of 2.29 times, a “comfortable” level, the CFO said, and slightly lower than the 2.39 times recorded in the immediately preceding quarter.

Source: Terra

Rose

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