AES BRASIL ENERGIA S.A. 2Q22 Results
Code: AES Brasil | |
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São Paulo, August 4, 2022 - AES Brasil Energia S.A. ("AES Brasil Energia" and "Company") (B3: AESB3) announces today its results for the second quarter of 2022 ("2Q22") and first six months of 2022 ("1H22") compared to the results of the second quarter of 2021 ("2Q21") and first six months of 2021 ("1H21"). Except where stated otherwise, the operational and financial information of the Company is presented on a consolidated basis in millions of Brazilian real, in accordance with Brazilian Corporation Law. For comparison purposes, given the incorporation and listing of AES Brasil Energia S.A. on March 29, 2021, the information presented in this document includes the financial results of AES Brasil Energia for 2Q22, 2Q21 and 1H22 and the pro forma net financial result of AES Tietê Energia for 1Q21 to represent 1H21.
MESSAGE FROM MANAGEMENT
"It is with great pride that I share the results of yet another quarter of many achievements and challenges on this journey of transformation and growth of AES Brasil.
Our strategic positioning stands apart from that of other generators by constituting a vehicle for growth in 100% renewable energy supported by constant investments in expanding our generation base and in developing new technologies and innovative products. Our goal is to be the client's best choice in the free market by offering resilient, competitive and responsible solutions. Our market positioning focuses on finding the best opportunities in the market today to benefit from the market trends of tomorrow in Brazil's power industry.
Our agenda of priorities includes the construction of two wind power complexes, Tucano and Cajuína, with combined installed capacity of 1,017 GW contracted under long-term power purchase agreements (PPAs), with startup expected within the next 18 months.
Construction of over 77% of the 322.4 MW of the Tucano Wind Complex already has been concluded. Another highlight is the startup of the first wind power turbines in July. The asset should be fully operational by the end of this year.
The construction of the first 695.0 MW of the Cajuína Wind Complex is advancing as planned, with startup expected during 2023. The first phase of the Complex, with 324.5 MW divided among 55 wind turbines, is already 19% concluded. The second phase, with 370.5 MW of installed capacity, has already registered significant progress in construction, of 14%.
As part of the funding strategy for Cajuína, we announced, in June, the issue of BRL 950 million in infrastructure debentures, inaugurating the term of 22 years for generation projects in the market.
Our outlook for the second half of the year is highly positive. With the National Interconnected System (SIN) registering reservoir levels above the average of the last 10 years, we are optimistic about the margins of hydroelectric plants for the coming months. We continue to work on turning around the wind assets acquired via M&A and on the operational excellence of our solar plants, which should translate into even stronger results over the coming quarters.
Lastly, we announced the distribution of BRL 53 million in dividends for the first half of the year, which corresponds to 100% payout of adjusted net income."
Clarissa Sadock, CEO
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CONTENTS | |
PORTFOLIO......................................................................................................................................................................... | 6 |
CONSOLIDATED GENERATION................................................................................................................................... | 8 |
HYDROPOWER GENERATION ..................................................................................................................................... | 9 |
WIND POWER GENERATION .................................................................................................................................... | 10 |
SOLAR POWER GENERATION................................................................................................................................... | 11 |
COMMERCIAL PERFORMANCE..................................................................................................................... | 12 |
ENERGY MARKET.......................................................................................................................................................... | 12 |
COMMERCIAL MANAGEMENT OF ENERGY PORTFOLIO ............................................................................... | 14 |
ENERGY BALANCE MANAGEMENT........................................................................................................................ | 15 |
CONSOLIDATED FINANCIAL PERFORMANCE.......................................................................................... | 16 |
NET REVENUE AND NET MARGIN .......................................................................................................................... | 16 |
OPERATING COSTS AND EXPENSES....................................................................................................................... | 18 |
EBITDA .............................................................................................................................................................................. | 20 |
FINANCIAL INCOME (EXPENSE) ............................................................................................................................. | 21 |
EQUITY INCOME ............................................................................................................................................................ | 22 |
INCOME TAX AND SOCIAL CONTRIBUTION PAYABLE ................................................................................... | 22 |
NET INCOME ................................................................................................................................................................... | 22 |
SHAREHOLDER REMUNERATION .......................................................................................................................... | 22 |
DEBT................................................................................................................................................................................... | 23 |
INVESTMENTS................................................................................................................................................................ | 25 |
MANAGERIAL CASH FLOW........................................................................................................................................ | 26 |
CAPITAL MARKETS ...................................................................................................................................................... | 27 |
ESG PERFORMANCE......................................................................................................................................... | 27 |
GUIDELINES AND COMMITMENTS ........................................................................................................................ | 27 |
APPENDICES....................................................................................................................................................... | 29 |
OPERATIONAL INDICATORS IN PERIOD.............................................................................................................. | 29 |
AES BRASIL ENERGIA - BALANCE SHEET AND INCOME STATEMENT.................................................... | 30 |
RESULTS BY SOURCE - INCOME STATEMENT................................................................................................... | 31 |
GENERATION PERFORMANCE BY SOURCE ........................................................................................................ | 31 |
DEBT................................................................................................................................................................................... | 33 |
ESG INDICATORS ........................................................................................................................................................... | 35 |
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2Q22 HIGHLIGHTS
- On July 8, the Ministry of Mines and Energy (MME) issued an order authorizing the commercial startup of the first four wind turbines of the Tucano Wind Complex. The corresponding revenue will be booked as from July 2022.
- AES Brasil sold, for the first time, 465,807 carbon credits, from the Mandacaru and Salinas wind complexes, corresponding to USD 2.3 million in revenue to be recognized in 3Q22. The Company is studying the possibility of selling other 2.8 million credits from wind and solar complexes with COD as from 2016.
- In June, AES Brasil carried out the issue of BRL 950 million in Debentures, with a cost of IPCA + 7.07% p.a. and due in 22 years. The proceeds will be used for construction of the Cajuína Wind Complex.
- The Board of Directors of the Company approved the payment of BRL 53 million as interim dividends for the first half of 2022, or BRL 0.1074 per share, which corresponds to 100% payout of adjusted net income1.
CONSOLIDATED FINANCIAL HIGHLIGHTS - AES BRASIL2
Financial Indicators (BRL million) | 2Q21 | 2Q22 | Var | 1H21 | 1H22 | Var | ||||||||||||||
Net Revenue | 561.4 | 620.9 | 10.6% | 1,118.1 | 1,297.7 | 16.1% | ||||||||||||||
Energy Purchase¹ | (208.3) | (266.9) | 28.1% | (353.1) | (512.1) | 45.0% | ||||||||||||||
Operating Cost and Operating Expenses² | (97.5) | (114.6) | 17.5% | (196.2) | (245.6) | 25.2% | ||||||||||||||
EBITDA | 255.6 | 239.4 | -6.3% | 604.7 | 540.0 | -10.7% | ||||||||||||||
Adjusted EBITDA³ | 255.6 | 239.4 | -6.3% | 568.8 | 540.0 | -5.1% | ||||||||||||||
Adjusted EBITDA Margin³ (%) | 45.5% | 38.6% | 6.9 p.p. | 50.9% | 41.6% | -9.3 p.p. | ||||||||||||||
Adjusted Net Income4 | 26.6 | 9.3 | -65.0% | 95.8 | 80.2 | -16.3% | ||||||||||||||
Dividends5 | 24.2 | 52.9 | 118.6% | 92.1 | 52.9 | -42.6% |
- Includes industry and transmission charges and excludes the GSF reimbursement in 1Q21. / ² Excludes depreciation and amortization. / ³ Excludes the GSF reimbursement in 1Q21. / 4 Excludes the effect of GSF reimbursement, net of income tax. / 5 Dividends deliberated based on the adjusted net income of the parent company.
In addition, the Company provides an Excel file with historical financial and operational data. For access, click here. For a table with the other operational indicators for the period, click here.
EVENTS AFTER THE REPORTING PERIOD
- AES Comercializadora: On July 7, 2022, under ANEEL Order 1,824 da ANEEL, AES Comercializadora de Energia Ltda. was authorized to act as energy trading agent in connection with the Electric Power Trading Chamber (CCEE). The Company will operate as a Term Trading agent, focusing primarily on ensuring its
- Considers adjustments in equity valuation.
- Given the incorporation and listing of AES Brasil Energia S.A. on March 29, 2021, the information presented herein includes the financial results of AES Operações (formerly AES Tietê) for 1Q21.
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strategic presence in Brazil's energy market, actively managing the positions transferred and managing price, market and portfolio risks.
- Acquisition of Cordilheira dos Ventos: On July 26, 2022, a Closing Agreement was executed between AES GF1 Holding S.A., Cordilheira dos Ventos Centrais Eólicas Ltda. and Renova Energia S.A. The Cordilheira dos Ventos Isolated Production Unit is formed by part of the projects Facheiro II, Facheiro III and Labocó, which are located in the state of Rio Grande do Norte, near the Cajuína Complex, and have wind generation capacity of up to 305 MW.
AES BRASIL
CORPORATE PROFILE
Investing in Brazil for over 20 years, AES Brasil ("Company") is a 100% renewable power generator and the only energy company in Latin America with an ESG level rating of "AAA" on the MSCI3, a leading global ranking for assessing a company's resilience to ESG risks.
The Company has a diversified generation portfolio (hydropower, wind and solar) with installed capacity of 3.7 GW in operation and 1.0 GW under construction for a total of 4.7 GW of exclusively renewable installed capacity, with plants located in the states of São Paulo, Bahia, Rio Grande do Norte and Ceará. The Company has 2.7 MW of installed hydropower capacity, 1.7 GW of wind power capacity (1.0 GW under construction) and 295.1 MW of solar power capacity in operation.
The Company's goal is to expand its generation capacity by diversifying its portfolio with non-hydropower energy sources and long-term agreements. The central pillar of this goal is diligently assessing growth opportunities, while always striving to create value for shareholders.
Our strategy is to be the client's best choice in the free market by offering resilient, competitive and responsible solutions.
To learn more about AES Brasil's portfolio of products and solutions, visit aesbrasil.com.br.
OWNERSHIP STRUCTURE
Controlling | BNDESPar | Eletrobras | Outros | ||||||
Company¹ | |||||||||
46.71% | 8.04% | 6.13% | 39.12% | ||||||
AES | AES | Greenfield |
Operações | Comercializadora | Projects |
¹ Indirect interest held by The AES Corp through AES Holdings Brasil S.A. and AES Holdings Brasil II S.A.
Greenfield projects currently are allocated to the subsidiaries of AES Operações. The Company is working on a strategy to change the ownership structure to transform these projects into direct subsidiaries of AES Brasil during 2022.
3 In 2021, AES Brasil received an ESG rating of "AAA" from MSCI.
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AES Brasil Energia SA published this content on 04 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2022 22:03:54 UTC.
