Eletrobras(EBR)2025-03-14 20:49Financial Data and Key Metrics Changes - The company reported a reduction in financial liabilities, decreasing from BRL 26 billion to BRL 13.6 billion since privatization, representing a 50% reduction [21] - The gross debt stands at BRL 75.6 billion, which represents four years of funding [24] - The company declared BRL 4 billion in dividends for 2024, reflecting a strong financial performance [24][48] Business Line Data and Key Metrics Changes - The operational costs have decreased to BRL 6.784 billion in 2024, with a consistent trend of reduction in PMSO costs [19] - The company has reached 700 free energy customers, indicating growth in its trading area [18] - Investments in generation and transmission have increased significantly, with BRL 6 billion invested in both segments combined [26] Market Data and Key Metrics Changes - The average energy spot price reached BRL 330 per megawatt hour, with significant fluctuations observed due to the hydroelectric nature of the market [34][36] - The company noted a decrease in reservoir levels, impacting energy price volatility, with a current level of 3.7% in demand compared to 5.2% in 2010 [39] Company Strategy and Development Direction - The company is focusing on a transformation agenda that includes prudent financial management and capital allocation, with an emphasis on ESG initiatives [17][30] - The strategy includes optimizing the portfolio and investing in greenfield projects, with several auctions planned for the coming years [114] - The management aims to maintain a balance between shareholder remuneration and future investments, ensuring sustainable growth [101] Management Comments on Operating Environment and Future Outlook - The management highlighted the increasing volatility in the energy market due to intermittent renewable sources and shrinking reservoirs, necessitating a conservative approach [42][46] - The company is preparing for a more volatile environment in the coming years, particularly in the generation segment [45] - Management expressed confidence in the trajectory of costs and the potential for improved pricing in the short term [48] Other Important Information - The company has implemented a new policy for liability management, enhancing governance and professional standards within the executive board [11] - A significant cultural transformation is underway, including the unification of collective bargaining agreements across the company [19] Q&A Session Summary Question: Inquiry about the agreement with the federal government and energy trading liquidity - The company is currently finalizing the wording of the conciliation term and plans to hold an extraordinary assembly for shareholder approval [61] - Market liquidity was good in the last quarter, with a successful auction of 350 megawatts [62] Question: Expectations for future investments and PMSO levels - The company has a significant backlog of investments, with a focus on quality over quantity to mitigate execution risks [74] - A recurrent PMSO level below BRL 6 million is anticipated for 2025, with a downward trend expected [76] Question: Price expectations for 2025 and risk management - The company is closely monitoring market volatility and has implemented a robust risk analysis methodology to protect its portfolio [82] - Efficient portfolio management is crucial to maximize results amid expected price fluctuations [85] Question: Long-term strategy for cost reduction and thermal plant operations - Seasonality in costs is acknowledged, with efforts to mitigate its impact moving forward [89] - The closing of thermal plant operations is anticipated to occur in the second quarter, pending ongoing negotiations [90] Question: Dividend methodology and future projections - The company aims for quarterly remuneration, balancing shareholder returns with future investment needs [94] - A conservative approach to leverage in the generation segment is emphasized, with a focus on maintaining financial stability [98] Question: Transmission revenue recovery and cash availability for negotiations - The company is focused on simplifying its assets and participating in auctions for growth opportunities [114] - Flexibility in cash availability is recognized, but global solutions for compulsory loans are not anticipated [112]