Transmissora Alianca de Energia Eletrica SA
BOVESPA:TAEE3
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
11.01
12.8
|
| Price Target |
|
We'll email you a reminder when the closing price reaches BRL.
Choose the stock you wish to monitor with a price alert.
This alert will be permanently deleted.
Transmissora Alianca de Energia Eletrica SA
You don't have any saved screeners yet
Good morning, everyone, and thank you for waiting. Welcome to the video conference of the publication of the third quarter of Taesa results. Those who need simultaneous translation, we have this tool available on the platform. [Operator Instructions] We inform you that this is being recorded, and it will be available on the RI site of the company, where the complete material of our publication of results is available. You can also download the presentation on the chat icon. [Operator Instructions] The questions can be also sent during the presentation, and they will be read live by Cristiano Grangeiro, IR manager and answered.
The information in this presentation and the declarations that might be made during this conference as for perspectives of the business, projections, operational targets and financial goals are beliefs of the administration of the company and information which is currently available. Future considerations are not a guarantee. They involve risks, uncertainties and premises because they are related to future events, and they depend on circumstances that might or not occur. Investors should understand that economical conditions, market conditions can affect the performance of Taesa and go to results that are different to those that expressed in the future considerations.
Now I will give the word to Andre Moreira, who is the CEO of Taesa.
Good morning. Good morning, everyone. Thank you for participating. We had a technical problem here, but we're already going to start presenting the results of Taesa. Also with me, we have the Financial Director, Erik Breyer; the Business Director in participation, Fabio Fernandes; and the implementation and also team of relationship with investors.
Well, an important point that I would like to make is that you can send your questions using the Q&A button of the platform at any moment during our presentation. So -- also, before talking about the results, which were very optimistic, I would like to highlight some points, and I'd like to take this -- a moment to give you some important information.
Well, first of all, I'd like to say that we're confident that we are on the right way, and we are very happy to deliver our projects and to make Taesa better and better, more agile, more competitive and with all of this, without opening -- without giving up to have a safe place of work in the transmission with high quality, with a lot of discipline and responsibility. We also continue with the focus on this mission of our strategic plan that we want to consolidate our position in the Brazilian market. We know that this is a huge challenge, and we are transforming -- this transformation is happening in all the processes and also with this look and this ambition long term.
Looking to our strategic pillars, we -- next month, we are totally dedicated to -- according to the last date of ANEEL, this will be an auction of about BRL 2.9 billion of investment, and it will be a RAP of over BRL 400 million, which was divided in 5 lots we have in Minas, Amapá, Bahia, Paraná and São Paulo. And we have another. We're having an investment of BRL 6.7 million.
Well, as for the secondary market, we have a relatively hot market, and we've been evaluating everything that's possible. So we have been -- the basic premise of our decision, we'll only join this when we understand that the returns are attractive and will remunerate our business. We're also concluding a part, which -- the regulatory part this next year. I think the most important thing is Janaúba, but I'm going to leave -- let my director talk about this important achievement.
I would also like to congratulate the whole Taesa team publicly for us to be able to deliver these results. We have to celebrate this moment. We have to recognize all the dedication, the hard work for this very important work and in a critical moment for our country. This is Taesa. And finally, as we have done every single time, I'd like to talk about our sustainability agenda, which is one of the important vectors of our strategic planning. And the success is intimately linked to this agenda. In other words, the execution of our strategy and the decision taking has sustainability as a focal point. Today, we're going to talk about the environment. And we're also going to link this to the Glasgow Climate Forum. So let's go to Slide #3 of our presentation. And we're then going to talk a bit about these topics. One of the very important topics is the fighting the climate change, and we've done several actions in relation to this. This year, for example, we have our first inventory of gas emissions based on the protocol of the greenhouse gas and with the implementation of the concessions, which are 100% controlled by the country. Our goal here is to optimize the consumption of natural resources, eco-efficiency, also work responsibly and reduce the quantity of emissions.
In this first inventory, we've identified sources of emissions that we call [ Scopus ] 1. Those come from these emissions that are controlled by the organization, and Scope 2 are the ones that are relative and have to do with our business, especially linked to the loss of energy during the process of transmission of energy in our assets. Well, all of this, we end up by converting in equivalent tons of carbon and the results that we've obtained are absolutely compatible with the energy sector, especially transmission sector. And you can see in the chart here, the big sources of emissions are recurrent in this sector when we look at the [ Scopus ] -- Scope 1, where we have immediate action, and this is linked to the suppression of vegetation linked to the -- to transport and also the management and maintenance of assets with the use of [ CF6 ].
Continuing then with [indiscernible] talk, we have an agenda, which is very -- an activity that we've been doing, and you can see that the slide is integrated management system, which we call [ SBT ] and we are going to structure the management of safety in our company. So we have ISO norms, which is quality management, the [ 14 ]. We have occupational health and the asset management as well. So this is a certification in 2023. And in these topics, we will have mitigation of the utilization of gas and also the maintenance of the corridors.
When we talk about the reduction of this, it's the first one that we were able to reduce. And this is also part of the goals of all the executives for this year. We increased the participation in the consumption of ethanol with our fleet of cars in relation to 2019 and '20 in 400%. So we use all the flex vehicles, ethanol vehicles and no longer gas. So it's something that we do to -- we have social environmental campaigns about how to use the soil with the communities close.
We also fight burning and also the reduction of forest areas and maintenance of the lines and also we plant in several locations in the country, and we're also elaborating the commitment to fight climate changes. This will guide us, and this will define the commitments of Taesa when we talk about climate change.
And then last but not least, we're also part of the platform of an action, which is an initiative that integrates all the companies that emit gases. And the ideal is 1.5 degrees Celsius, and this is the Paris Agreement and to zero emissions up to 2050. That is the goal.
Now knowing that the Scope 2 is a more complex topic. It involves the electric system as a whole. We're talking about losses in all the transmission lines. And in this platform, there is a group in the electric sector, which is Taesa's part, where we discuss how to establish actions and goals, considering all the characteristics of the sector.
Now I am going to Slide 4. And as we mentioned in our last call, we're going to talk about this new cycle of RAP 2021-2022, which started in the first of July, and it ends on the 30th of June next year. So if you notice here, this affected directly our results. We had an inflation readjustment for the contracts Category II of 37%, more or less indexed by IGP-M and then the other contracts, which, in our index by the IPCA, [ 3% ]. We had an incremental BRL 638 million RAP by the IGP-M, plus BRL 37 million IPCA. This difference between the different rate indexes is because the IGP-M had a strong hike in the last 2 months; and two, because we have more concessions in Category II than Category I. In other words, more or less 80% of our RAP is the results of the IGP-M. This is the allowed annual revenue.
We also have a reduction of 7 concessions, which was already expected by our contracts, which had an impact of [ BRL 160 million ] in the next cycle. As I've already highlighted, Janaúba started 6 months before the regulatory time frame, and it had an increment of BRL 178 million in the revenue considered a pro rata of 10 months. Therefore, the operational RAP that goes from June to July 2022 is BRL 2.9 billion, representing an increase of 32.5%, that is BRL 708 million more than the previous cycle. Having said this, and thank you -- thanking you. I give the floor to Luis, who's going to talk a bit more about the success of Janaúba and the importance for the success.
[Interpreted] Thank you very much. Good morning to everyone. Janaúba is an important -- was energized on the first of September on 2021, about 6 months before, and with the revenue of BRL 240 million, and we had an investment of BRL 1 billion, which is an economy of the ANEEL CapEx.
In the next slide, we're going to talk about the characteristics and we're going to talk about this -- the extension, the line of transmission, composed of 3 substations, 26 crossings, 881 people employed per month. And just for you to have an idea of the magnitude of the business, we use more than 12,000 tons of structure over 30,000 cubic meters of concrete and 12,500 tons of cables, an expressive amount all around.
Now we're going to understand the importance of Janaúba in this scenario. This is part of the interlinked and interlinks 2 systems of subtransmission. So it also is Bahia and Minas Gerais. The main idea is the energy of renewable sources of the south and southeast. So it has gone in very favorable moment for the national scenario, where we need to conduct the energy generated from renewable sources from the northeast to the southeast and the south, which is a big center of consumption. The capacity of this project is of 1,600 megawatts. And this transmission has the capacity to attend 5 million people.
So it is a very, very important -- it is part of the mines and energy -- the [ IP ], one of the corridors that is going to link the northeast Brazil to the southeast, and it is also going to generate energy with renewable sources, especially in the northeast of Brazil. Here we have a photograph of the inauguration with the presence of the Ministry of ANEEL and due to the importance of this business in the national scenery.
In the next slide, which is Slide 8, we have a general vision of everything that we have. We have 6 in the last publication, Janaúba first of September. And the other -- all have the characteristic of -- they're being built and put together. ESTE with a participation of 50% of Taesa, Paraguaçu, Aimorés and Ivaí and also Sant’Ana. They also now are in the phase of being put together. All these have materials and equipment that have already been supplied. And they all have the construction processes that -- and everything has been contracted and the -- it is all underway.
The investments up to September this year, BRL 819 million versus BRL 1 million, a drop of 26%, which is expected because the volume of investment reduces itself, especially, as I mentioned just now, BRL 1.1 million reduction, with the supply of the materials, equipment and installations, especially in last year. And this year, we have a gradual reduction or decrease in investments until the operations begins.
That's what I had to say. I want to thank you for your opportunity. I'll give the floor to Erik. Thank you very much.
[Interpreted] Good morning to everyone. We're going to start with Slide 9, showing the -- as the results, they reflect a new cycle, and it's -- we can see a growth of 29.8% of the net revenue compared to the third quarter due to the inflation readjustment in Janaúba area of operation at the end of the quarter. These effects were compensated in part by the drop of the RAP. The EBITDA reached 32.6% higher than registered in the first quarter with a margin of 84.6%, showing the recovery close to levels observed in prior years.
In the operational part, these 9 months we have a rate of 99%, very much in line with showing strong and consistent performance in operations. And finally, the net profit grew 16%, totalizing BRL 192 million in the quarter, even though the good performance of the revenue of the EBITDA registered in the vision and the accumulated of the year. The regulatory was -- the profit was affected negatively the financial results. And I'm going to explain this in detail further on. As we can see on the right-hand side below, the financial result was the main responsible of the variation of the net accumulated profit.
Now we're going to move to Slide 10, where we're going to talk about the net profit. This was BRL 536 million and with a reduction of 18.3% in the national comparison, due to the macroeconomical rates, lower IGP-M, 6.7% to 2% in the third quarter, and this affected this with a monetary correction. And this last one reflects all of this in our participations.
On the other hand, the other components were positively impacted by the revenue, the readjustments and the revenues, which were affected by higher inflation than expected in the quarter. And this impacted all the concessions. Therefore, the effect on the net profit. We also had a drop in the operational cost. We had lower investments in the projects of the construction because we are in the final phase of a lot of this.
And we also had an increase. I'm going to highlight the next slide. Here, it's important to say that the accumulated of the year, the IFRS had a yearly growth of over 18%. It's a very positive result during this period.
Now we're going to move to Slide 11, and we're going to talk a bit more about the financial results. We had a reduction of 18.6%, due basically to the lower volume of cash and a payment of BRL 1 million of dividends in the first semester of this year. I know that we're going to have questions about dividends. We will be talking a bit more about this in Q&A.
And the financial expenses had an increase of 84% [ doing ] to the CDI and [ 0.5 to 1.5 ] in the third quarter and due to the height the IPCA. This varies, but there is the other side of the coin, which is an increase of financial expenses. This is indexed to the IPCA. So the financial result is negative BRL 230 million, almost double of which was registered in the third quarter of 2020 because of the increase of the IPCA and the CDI. Even though we had a benefit, we were penalized by the debt advancing. I'm going to talk a bit more about the debts with the consolidation view, and this is what affects our value. Different -- we have BRL 7.6 billion at the end of September 2021. And we have leveraged [ 4.3 ], as expected. We are going over the peak, the investments in the project -- ongoing projects. And as they are delivered, they become operational. And obviously, this level will decrease.
The profile of our debt continues extremely adequate and competitive. Even with this level of debt, we have a low cost. And also, we have a long term up to 5 years. So we have, therefore, the access to the marketing, which is well established. So we have a favorable position in Moody's and in Fitch to be able to invest in our scenario. Our leverage drops a bit due to the cash generation. This is a very differential because we can maximize the optimization with cheaper capital to finance our growth. And obviously, as Andre mentioned in the beginning, maintaining a balance with the allocation of capital, discipline and financial management, which are the characteristics of Taesa. That is what I wanted to present to you today.
And I want to also invite you all for our Investor Day, which is going to be -- was going to happen on the 3rd of December. It's good to be virtual, but it's going to be very interesting. And I recommend you all to schedule these 2 hours, and we will be working to give you a vision of really what happens in our day to day and show you who makes Taesa who it is. You're going to hear from our front collaborators, we're going to have economies talking about inflation, which is so important. Due to the IPCA role invited, we're going to talk about strategies. We're going to talk about the future of the company. It's going to be 2.5 hours with a lot of content. And all you have to do is access the QR code for you to register. That's what I had to say. Thank you very much to all of you.
[Interpreted] Thank you. Thank you for your presentation. Now we're going to start here with a Q&A session. [Operator Instructions]
Some questions are here -- if we're going to pay dividends. So these are several questions, and I'm going to give the floor to Erik to answer these questions.
[Interpreted] Well, what I'm going to do is I'm going to try to address all the different angles of this question. So we're not going to disappoint anyone in the payment of dividends. We are a company that pays dividends in our statute. We have the -- we pay 50%, but when we start discussing about this payment this year, we've already paid BRL 1 billion more than any other before. And now our payment has the possibility of taking place during the year. It's not a statutory obligation. It's not a necessity. .
I am going to try to respond for those who are interested about this topic. So every year, it's a question about the payment of dividends. Taesa is never going to disappoint anyone in the payment of dividends. We are naturally a company that pays dividends and our statutes recognize the payment of -- a minimum payment of 50% of the profit and discussion is always over 50%. We have the possibility. It's not obligatory, but the possibility of payment -- of alternate payments to maximize the cash in what we have. So we're always going to -- the payment -- strong payment of dividends will always be present, and we can use these intermediary payments during the year. Our decision is always going to be based on what maximizes the value and the value on the stock exchange always considering the opportunities of leveraging the access we have to capital and the opportunities of investment.
This year, we've already paid BRL 1 billion. And up to now, we don't have any idea of payment this year, but we're not going to disappoint anyone. And we're going to benefit from all the opportunities and taking into consideration all the opportunities that we have, and in the opportunities of capital and investment, we always do a fine adjustment, and we might pay during the year.
So this is something that is always present for us. Even though we do not have any decision right now due to the situation and the opportunities that we have of investment, leverage, access to capital, but, folks, we start paying 50%, and this is a significant amount. And remember that we've already paid BRL 1 billion, and we're still studying as soon as we have some opportunity.
[Interpreted] Thank you, Erik. We have a question, which is from [ Eduardo Lowell ]. In stagnation scenario, what would be the scenario? What is the guideline? Are you going to invest in project Category III? I'd like to know about this, looking at our business.
[Interpreted] But this question is a very good question, and I'm going to try to give you a story. We're going to have an economist talking on our investment there, especially the inflation [ GP-M ] and IPCA are very important aspects.
So I invite you all to be present on our Investor Day when we're going to be talking about this topic. I don't believe in high stability of levels of these indexes. But this situation if the IPCA is high, we're going to have a high financial expense, but our revenue doesn't increase with the delta of the increase of the IGP-M, but the absolute number of the IPCA and the -- of these rates. We had -- if this number of the last cycle repeats itself, we will have more -- this is not going to happen. I don't think anyone should have this expectation, but the revenue is accumulated inflation.
So if I have 10% one year, then the next year, I'll have -- I'm not going to have a stagnated, I put 10% -- plus 10% over that. So it will be 20%. So this maintenance of the high inflation level, it is favorable in the level that impacts Taesa and the impact it has on financial expenses. This is favorable for us because our revenue will be accumulated -- will go up in an accumulated way. And when we talk about the IGP-M, the IPCA and these rates, it's extremely favorable to us as it has been during the last 2 cycles, the stability and even though based on the result. But if this happens, it is favorable because the revenues are 100% protected. So it's a protected result, but the financial expenses increased. Yes, this is bad, but increase is less, and it will have a low impact. So the inflation -- high inflation is favorable to Taesa in the level of the accumulated revenue, independent of the impact and the delta remains. So that is what I had to say.
[Interpreted] Thank you, Erik. Now I'm also going to take the opportunity, and I think that we have an interesting question. It's about leveraging. And perhaps you talked about the level of leverage, but we have an investor question saying that as this level, when we talk about dividends, investments, he asks if the future of the company would be at a risk to have to put these 3 things combined as level of leveraging is [ 4.3 ]. So would the future of the company be at risk based on this?
[Interpreted] Well, this question is excellent. Thank you very much because I spent half of the day talking about this subject. And what I can say in relation to the leveraging of Taesa is to tranquilize it because we have a very comfortable level for our business up, but the debt isn't that high. It's high for a company that has constancy of existing in the business and you don't have a concession contract for determined time. We have a contract for determined time. So we have an investment, which is an expense which is very high. Janaúba today has an EBITDA therefore, but the EBITDA over the last 12 months is [ 1 ] and the debt is the maximum. So during the next 12 months, this drops. And during the years, if you amortize your investments, the net debt drops drastically. So in these cycles that have as [indiscernible] assets and for a stable revenue and for long-term 5 years.
We're extremely competitive. Our leverage level is absolutely comfortable, and we have no difficulty to access the market due to this. So our challenge is actually -- is that this leverage drops during the years because EBITDA in investments and amortization happens and then it drops. So my challenge here in Taesa is not to access the capital market, it's not to decrease. This is to defend it. It's to maintain a leverage in time that can maximize the value of the shareholder and we do this with investments. So if we're not able to be successful with the investments is that it drops so quickly and we don't have any problem over 4% is totally temporary due to the investment curve that we have in the operation of the business. So the current level of leveraging does not compromise much to the country, the challenges to defend and maintain a leveraging of the new investments with the financial discipline and we have no difficulty to access the markets due to this leveraging.
[Interpreted] The next question we have here is from [ Marcos Mathus ] and he says the following. You have 3 projects to end up in February 2022. Will this time frame be maintained? Or will you be delivering this before the time frame?
[Interpreted] Yes, we have in ESTE the concession for February 22, Paraguaçu and another one on the same day. When we look at the physical advances, they're all 90% to 93%. So in relation to the specific date, we will not be able to give this information, but we're going to follow the same model of Janaúba. So to deliver everything the quickest possible and with the best efficiency of execution because these 5 new projects that we're implementing, they are RAP of BRL 400 million in the participation of Taesa. So it's a very important addition to the results of the company. And we hope that they will be working as soon as possible.
[Interpreted] Thank you very much. Thank you for the answer. We have another one here. It's a question from [ Fred ] on what measures are being taken -- when will these actions bring results. Andre will be answering this question, our CEO.
[Interpreted] Thank you for the question. It's also very important for us. We have had events in our concession area. Recently, we had 5 towers that fell to damage. We recovered from these events. We also had a balloon drop in 1 of our lines, vandalism, sabotage in 1 of the lines. And if we remove these 3 events, I would say that our level of availability goes back to these events, which are absolutely outside the scope of the transmission sector. So together with the regulating agents [ CNES ] and ANEEL trying to justify and obtain resources so that we don't have this impact that we had recently with these 3 different cases.
So the level of availability and the maintenance plan continues to be followed. We are more and more with improvements, with new investments. So you can know that this will continue being high, and we have invested a lot to give tranquility, especially now when we are living -- the moment that we're going through here in Brazil. So this is extremely important. Thank you for the question.
[Interpreted] Thank you, Andre. We have a question from Bruno [ Texeira ]. And the question is the information that the materials that are necessary -- the materials for this construction, will -- have they been delivered? So will this not be impacted by currency movements and by the cost of construction materials. So I'm going to give this question to Luis.
[Interpreted] Thank you, Bruno, for the question. Well, precisely that during the -- in the planning of the building of -- we have all the equipment, which is linked to dollar. These already have been delivered and also the cables, which also have a huge impact in the currency variation. So right now, we are in the phase of this building and the foundations of the buildings also have been concluded. So right now, we are basically executing the services, and we have all the material, which has already been delivered. .
[Interpreted] Thank you, Luis. Well, I have a question here, and I'm going to give this question to Andre. This question talks about -- this is about strategy.
Bruno, Congratulations the assets index to the IGP. How is the company's structuring itself for new concessions, especially in a business that is more and more competitive. This is a question from Bruno [ Texeira ] and the question is for Andre.
[Interpreted] It is totally aligned with our strategic planning. We have some remembering that our strategic plan is growth, efficiency in OpEx and CapEx, regulatory management, sustainability and governance. And the regulatory management is totally linked to this concern that you have, which is ours as well. And we know that in Taesa, from [ 230, 231 ], some concessions expire. This is not going to happen short term, but we already are preparing to -- for the necessary measures to evaluate and study very carefully and follow these expirations of Category II, which will happen in the middle of 2026, 2027 to follow and see how this renovation is going to be, or we don't know exactly what's going to happen, but we do have this concern. And parallel to this, what are we doing? We have an ambitious growth plan. We are investing, as I've already said, for the next bidding processes, and we are also evaluating mergers and acquisitions. So within the strategic planning, we contemplate all these concerns that you are sharing with us and they are absolutely aligned in this aspect. Thank you, Bruno, for the question.
[Interpreted] Thank you, Andre. We have another 2 questions for you. One is about the Andre Sampaio asking about any evolution in the assets. How does the company see this discussion.
[Interpreted] Well, Andre, my namesake, this is a discussion that we've had with our partners, the -- about assets. We've had these conversations ever since the beginning of -- the end of last year, and we've kept this. It is in our interest, if it makes sense to everyone, the partners and us. We would like to continue deepening to have 100% of the management of the assets and have a better management of the company as a whole. So the response is, yes. We continue to evaluate, study and deepen our evaluation in all the assets to be able to give continuity to this process. Thank you for the question.
[Interpreted] Well, great, Andre. Now we have a question, which I think is important for us to answer, which is about if there's any new evolution about the CEMIG announcement of its participation in Taesa.
[Interpreted] Well, this also -- we have -- were involved in this -- the system linked to our controller, and we don't have any influence in this type of decision for us here in Taesa to calm everyone. It doesn't make much difference the type of controller that we have. We work with strategic planning to make the company grow and be more efficient, safer and to be a cool company to work. And so nothing changes in our strategic plan, our day-to-day. And these discussions of changes, of control do not alter our rhythm, and we also don't comment this because we don't have any control over this. So I think it's important to clarify this to everyone.
[Interpreted] We have dealt with all the questions. So I tried to sort of accumulate. We also received a series of congratulations for our excellent work. Not having any more questions, I am going to finalize this call. And remembering that Investor Day on the 3rd of December, as Erik said, it's going to be an event to talk about who Taesa is because you know Taesa in the stock exchange. And we want to show you that it's a different company and it makes transmission look easier. So we want to show a bit this. We have good news to tell you. We're expecting you all. And please register. Thank you very much to everyone, and we wish you all a wonderful day.
[Statements in English on this transcript were spoken by an interpreter present on the live call.]