Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Alupar Investimento SA (BSP:ALUP3, Financial) successfully participated in 12 auctions in Peru, totaling $443 million in investments with an additional revenue of $66.1 million.
- The company has a significant investment cycle in water projects, with $732 million in investments expected to generate more than $100 million in additional revenue by the end of 2029.
- Alupar Investimento SA (BSP:ALUP3) reported a substantial increase in quarterly revenue, reaching $928 million, a growth of almost $280 million compared to the same quarter last year.
- The company's EBITDA increased by $238 million, totaling $693 million, reflecting strong operational performance.
- The company has a robust pipeline of projects in Latin America, with a CapEx of $500 million in Peru, $200 million in Chile, and $200 million in Colombia, all indexed in dollars and expected to enter operation in about 60 months.
Negative Points
- The company faced significant costs due to energy purchase restrictions, impacting financial performance.
- There are ongoing challenges with project delays, particularly in transmission lines, which have affected operations and increased costs.
- Alupar Investimento SA (BSP:ALUP3) is involved in confidential arbitration processes, which could pose financial and operational uncertainties.
- The company has experienced a 1% devaluation in its share price accumulated over the year, indicating potential market challenges.
- There are concerns about the competitive landscape in international markets, with similar players competing in Latin America, potentially affecting future growth opportunities.
Q & A Highlights
Q: What are your thoughts on the transition auction next year and opportunities outside of Brazil?
A: It's difficult to predict the competition level for next year's auction. We are considering participation but will evaluate the returns from the last auction. We are also exploring opportunities abroad and will analyze them to choose the most attractive ones. - Jose Luiz de Godoy Pereira, Chairman of the Board, Deputy CEO, CFO, Investor Relations Officer
Q: How are the discussions regarding the containment issues and the costs incurred due to energy purchasing?
A: We were impacted by containment issues, particularly in the assets. The situation improved in October with the operation of the Pa Toa line. The containment issues are mainly due to transmission delays, and we are discussing solutions with sector agents. - Jose Luiz de Godoy Pereira, Chairman of the Board, Deputy CEO, CFO, Investor Relations Officer
Q: Can you provide an update on the arbitration process of the RTs?
A: The arbitration process is confidential, but we expect a resolution within 24 months, with the first semester of next year being a likely timeframe for defining the general scope. - Jose Luiz de Godoy Pereira, Chairman of the Board, Deputy CEO, CFO, Investor Relations Officer
Q: What is the company's competitive advantage in international markets like Chile and Colombia?
A: Each project is unique, and while we have advantages, other players do too. Our historical ability to execute projects below initial CapEx expectations is a strength. - Jose Luiz de Godoy Pereira, Chairman of the Board, Deputy CEO, CFO, Investor Relations Officer
Q: Are the revenues from projects abroad fixed in dollars or local currency?
A: The backlog is fixed in dollars, with revenues received in local currency converted at the previous day's exchange rate to dollars, and updated annually by PP core inflation. - Jose Luiz de Godoy Pereira, Chairman of the Board, Deputy CEO, CFO, Investor Relations Officer
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
