Eletrobras(EBR) - 2025 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported a decrease in revenue, influenced by regulatory changes and capital impacts [8] - Net income was significantly lower than Q3 of the previous year, primarily due to provisions related to nuclear contracts [10] - The adjusted net income showed a 68% decrease due to asset sales affecting total results [10] Business Line Data and Key Metrics Changes - Transmission revenue increased following a tariff review, while generation revenue was impacted by previous contract extensions [9] - The company is focusing on operational efficiency and has achieved record investments between BRL 2.5 billion and BRL 3 billion, aiming for a total of BRL 10 billion this year [7][12] Market Data and Key Metrics Changes - The company is actively participating in energy trading across various regions, with an increase in the number of customers expected [11] - The energy balance indicates a boost in hiring for 2026 and 2027, reflecting a strategic focus on end-user engagement [11] Company Strategy and Development Direction - The company is divesting from nuclear power plants and focusing on clean and renewable energy generation, aiming for a net-zero goal by 2030 [16] - A capital allocation strategy has been established, with a record dividend payout of BRL 4.3 billion announced for December, totaling BRL 8.3 billion for the fiscal year [15][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in price resilience for 2026, citing a favorable rainfall season and a flexible pricing model [21][22] - The company is focused on reducing legacy risks and enhancing operational efficiency, with plans for active participation in upcoming auctions [25][26] Other Important Information - The company has partnered with Google Cloud to develop an AI-based weather forecasting system to improve operational resilience [15] - The company has completed the sale of its last thermal power plant, now generating 100% clean energy [16] Q&A Session Summary Question: Price resilience for 2026 - Management indicated that prices are expected to be around BRL 240, with a wet season positively impacting supply [21][22] Question: Strategic steps post-privatization - Management highlighted the focus on managing legacy contracts and preparing for future growth through active auction participation [25][26] Question: Capital allocation focus - The company is prioritizing dividends and improvements, with a conservative approach to asset sales influencing dividend decisions [29][30] Question: Expected EBITDA margin and maintenance CapEx - Higher margins are anticipated for newly awarded lots, with ongoing efforts to optimize CapEx [82][84] Question: Investments in Eletronuclear - Management is monitoring Eletronuclear's needs but did not commit to additional investments at this time [87] Question: Price dynamics and competition - The company noted that its hydroelectric pricing is competitive, with a growing trading margin expected [88][89]