Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Cajuina 2 wind complex with 370 megawatts of installed capacity is now 100% operational, contributing to increased energy generation.
- Significant improvement in asset availability, with a 5 percentage point increase compared to the third quarter of 2023.
- Completion of AES Brasil's growth cycle with the fulfillment of expansion obligations and successful completion of wind and solar projects.
- Operational excellence in solar complexes, maintaining 99% availability despite lower irradiance.
- Implementation of a new methodology by ONS for generation restriction, leading to a decrease in curtailment and improved energy generation.
Negative Points
- Net operating margin decreased by 4% compared to Q3 2023, primarily due to curtailment issues.
- High curtailment levels in wind farms, particularly in the Cajuina complex, impacting potential generation.
- Financial results affected by lower cash balances and reduced interest rates, leading to decreased financial revenue.
- Increased financial expenses due to reduced capacity to capitalize interest on projects now operational.
- Adjusted EBITDA decreased by BRL44 million in the quarter, largely due to curtailment and higher energy purchase costs.
Q & A Highlights
Q: Can you provide an update on the operational status of the Cajuina 2 wind complex?
A: Rogerio Jorge, CEO, stated that the Cajuina 2 wind complex, with 370 megawatts of installed capacity, is now 100% operational. All 65 wind turbines are generating energy, marking a significant milestone for the company.
Q: What were the main financial highlights for AES Brasil in Q3 2024?
A: Jose Simao, CFO, highlighted that the net margin was BRL566 million, and adjusted EBITDA, excluding nonrecurring effects, was BRL378 million. The financial performance was impacted by curtailment issues but showed stability in net margin year-to-date.
Q: How has the new ONS methodology affected wind generation curtailment?
A: Rogerio Jorge explained that the new methodology, implemented on September 17, led to a significant reduction in curtailment, particularly in the Cajuina complex. This change improved the reliability of the interconnected system and balanced curtailments more effectively.
Q: What is the status of the business combination with Auren?
A: Rogerio Jorge confirmed that all conditions precedent for the transaction have been met or waived. The final transaction value was adjusted to BRL11.84 per share, with the closing date set for October 31, 2024, and new shares available from November 5, 2024.
Q: Can you elaborate on the impact of curtailment on financial results?
A: Jose Simao noted that curtailment had a direct impact on EBITDA, estimated at around BRL70 million for the year. This also led to a need for more expensive energy purchases, affecting the overall financial performance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
