On Tuesday, Neoenergia announced its financial and operating results for the second quarter and 2023 so far. Cash EBITDA was around BRL 2.4 billion in the second quarter, and approximately BRL 4.97 billion in the first half, up by 5% and 6% year on year, respectively. Net profit was BRL 728 million from April to June, and BRL 1.9 billion from January to June.

Capex

Neoenergia’s Capex was BRL 4.3 billion in the first half, and BRL 2.2 billion in the second quarter. Of the total investment in the year so far, BRL 2.4 billion went into distribution, with BRL 1.5 billion exclusively earmarked for the expansion of networks in the company's five concessionaires in the states of Bahia, Mato Grosso do Sul, Pernambuco, Rio Grande do Norte, and São Paulo, and the Federal District.

“Investment went chiefly into expanding the networks, supporting the organic growth of our five distributors, advancing transmission projects and completing work on the wind farm, Neoenergia Oitis, and solar complex, Neoenergia Luzia,” says Eduardo Capelastegui, CEO of Neoenergia.

Neoenergia Luzia is part of the Neoenergia Renewable Complex in Paraíba state, with an installed capacity of 149MWp. Neoenergia Oitis, in the states of Bahia and Piauí, has 12 wind farms with almost 567 MW of installed power, enough to supply a city of 2.7 million people. It comprises 103 completed wind turbines.

The execution of the wind farm is in line with Neoenergia's strategy to liberate the Brazilian energy market. The company trusts that clean energy is the way to decarbonize the economy. The company ended the second quarter with 44 wind farms in operation, with an installed capacity of 1,520MW.

Renewables

Neoenergia’s net profit from its Renewable businesses was BRL 110 million in the second quarter, and BRL 185 million in the first half. This was up by 25% and 23% year on year, respectively.

Energy balance

Energy injected, including distributed generation, was 19,873GWh in the second quarter, up by 2.7% year on year, and 40,382 GWh in the first half, up by 2.6% year on year. The distribution companies in Bahia (Neoenergia Coelba), in Pernambuco (Neoenergia Pernambuco), and in Rio Grande do Norte (Neoenergia Cosern) stand out, offsetting the impacts of heavier rainfall in the other concessionaires.

Networks

The highlight in the period is Neoenergia Coelba’s classification within the regulatory limit of losses approved in the tariff review of April this year by the National Electrical Energy Agency (Aneel). The concessionaire presented total losses over 12 months of 14.6% in the second quarter. So, four of the five Neoenergia distributors are within the regulatory limit.

Customers 

The five concessionaires ended the second quarter with an increase of 316,000 new customers, totaling 16.2 million active customers.

Quality

Regarding the quality of energy supply, four distributors – Neoenergia Coelba, Neoenergia Cosern, Neoenergia Elektro, and Neoenergia Pernambuco – were below the regulatory limit for both Equivalent Duration of Interruption per Consumer (EDIC) and Equivalent Frequency of Interruption per Consumer (EFIC). Neoenergia Brasília, which was within EDIC limits in the fourth quarter of 2022, was below the limit set in its energy concession contract of 6.43 times for EFIC.

Transmission

In the first half, Capex for the transmitters was BRL 1.6 billion, 78% up year on year, and dedicated to the construction of lines and substations for lots.

It is also worth noting the Aneel auction on June 30. Neoenergia made its first joint bids with the Singapore Sovereign Fund (GIC), a partner in the Transmission business since April this year. “Although the company did not purchase any lots, we are convinced that it was a responsible and wise participation, which reinforces our commitment to the allocation of capital. This attitude was positively recognized by the market with a 7% increase in the share value on the day of the auction,” said CEO Eduardo Capelastegui.

Marketing

In addition to the financial and operational results, Neoenergia expanded the brand's presence by reinforcing its connection with Brazilians both in the digital world and through music and women's sports. The Neoenergia Pays Your Bill campaign, which offers discounts on tariffs, rewarded new customers. The company partnered with Rock in Rio, one of the largest music festivals in the world, to work towards decarbonization. The arrival of athlete Mirelle Leite reinforced Team Neoenergia. For the 2023 Women's World Cup, the #OurTime campaign was launched to celebrate women on and off the field and reinforce support for the Brazil Women's Soccer Team sponsored by the company.