Financial Highlights:
• The Company’s adjusted net income in the period was R$ 928 million, 30.9% (R$ 219 million) more than the third quarter 2022.
• The adjusted Ebitda was R$ 1.8 billion, an increase of 23.5% (R$ 336 million) compared to the same period in 2022. Adjusted Ebitda margin was 70.3% in 3Q23, an increase of 18.2 p.p. compared to the third quarter 2022.
• Formalized, the closing of the operations for the acquisition by the Company and other consortium members of CEEE-G’s stake in the Machadinho Consortium, increasing ENGIE Brasil Energia’s commercial portfolio capacity by 5.3 average MW.
Other highlights:
• The Santo Agostinho Wind Complex in the state of Rio Grande do Norte, reached 87.5% completion in terms of the general work on the project. Nineteen of the 70 wind turbines which make up the project are already in commercial operation with a further 22 authorized to begin operations on a test basis.
ENGIE Brasil Energia (EGIE3) reported adjusted net income of R$ 928 million in the third quarter 2023, a year-on-year growth of 30.9%. Adjusted Ebitda amounted to R$ 1.8 billion, an increase of 23.5% (R$336 million). The adjusted Ebitda margin reported an 18.2 percentage point improvement to 70.3%, positively impacted by the transmission segment and results from Transportadora Associada de Gás (TAG).
The Company reported net operating revenue of R$ 2.5 billion, a decrease of 8.5% relative to the third quarter 2022, driven mainly by the sale of the Pampa Sul subsidiary and reduced construction revenue from transmission assets. For Eduardo Sattamini, ENGIE Brasil Energia’s Chief Executive Officer, “we maintain our commercial strategy of protecting future cash generation through the medium of anticipated contracting. In the period, we contracted about 74 average MW of energy for delivery between 2025 and 2028, maintaining the level of our portfolio’s net average selling price”.
Among the key events subsequent to the close of the third quarter, was the announcement of the signature on October 30 of a R$ 3.2 billion binding agreement for the acquisition of assets from Atlas in Brazil totaling 545 MW in installed capacity of photovoltaic energy in the states of Bahia, Ceará and Minas Gerais.
“The consistence of our strategy, business model resilience, efficacy in the management of risks, long-term vision and guaranteed robustness in the diversification of our portfolio, provides us with the necessary qualification for studying and capturing good projects and opportunities in the market”, Sattamini points out.
Transmission segment
During the third quarter, the basic substation and sectioning projects were concluded together with earthmoving and the 230kV equipment foundations for the Gavião Real Transmissora de Energia project. Fruit of a successful bid at Aneel’s 01/2020 Transmission Auction, the purpose of the project is to attend the energy distribution network in the state of Pará.
In line with the Company’s growth strategy, on September 27, the concession contract for the Asa Branca project was signed, the outcome to another successful bid by the Company at Aneel’s 01/2023 Transmission Auction. The project, to traverse the states of Bahia, Minas Gerais and Espírito Santo, will extend a length of 1,006 kilometers and consist of four 500 kV simple circuit transmission lines.
The energy transmission segment posted a positive gross result of R$ 205 million in the quarter, an increase of R$ 314 million (288.1%) compared with the same quarter in 2022. The variation is due to a growth of R$ 195 million (1,083.3%) in the remuneration of concession assets – particularly a reflection of the increase in inflationary indices and balances in contractual assets – and the positive effect of R$ 134 million (100.0%) in the variation of the net result of construction revenues and costs (reduction of R$ 176 million and R$ 310 million, respectively), largely stemming from the conclusion of work on the Gralha Azul and Novo Estado transmission systems.
Investments and expansion in renewable energy in the Northeast
ENGIE Brasil Energia’s total third quarter investments were R$ 741 million, R$ 650 million being allocated to the construction of new renewable energy projects in the Brazilian Northeast: R$ 370 million in the Santo Agostinho Wind Complex – Phase I; R$ 186 million in the Serra do Assuruá Wind Complex; R$ 95 million in the Assú Sol Photovoltaic Complex.
Particular mention should be made of the start on the Serra do Assuruá Wind Complex in Gentio do Ouro, a city located 600 kilometers from the state capital Salvador (BA). The project is made up of 24 wind farms with 188 turbines, to be implemented in a single phase, totaling 846 MW of installed capacity when concluded. Earthmoving and surfacing of access roadways are already underway together with the concreting and backfilling of wind turbine foundations.
Another milestone during the quarter was reached with progress of work at the Santo Agostinho Wind Complex in the state of Rio Grande do Norte, general work on the project already 87.5% complete. Nineteen of the 70 wind turbines making up the project are already in commercial operations and a further 22 authorized to begin operations on a test basis. When concluded, the Complex will add 434 MW of installed capacity to ENGIE’s portfolio in Brazil.
Trairi concludes its first carbon credits issue
During the third quarter 2023, the Trairi Wind Complex in the state of Ceará, successfully concluded its first issue of carbon credits from four of the eight wind farms comprising the Complex. The issue totaled 1,238,487 credits and generated over the 2013 to 2020 period. Each credit is equivalent to a ton of carbon dioxide not released into the atmosphere.

“This achievement will allow us to continue adding value to our customers, offering green products which will contribute to the decarbonization of their businesses”, says Sattamini. “Since 2016, we have already allocated more than R$ 20 billion to investments for expanding diversified sources of clean energy and transmission infrastructure. Between 2023 and 2025, more than R$ 14 billion will be committed to our growth strategy in renewables and transmission”, Sattamini concludes.

ENGIE Brasil Energia has 8,194,0 MW of installed capacity, all of it renewable, operating in a generator park of 9,903.8 MW, made up of 76 plants, 11 hydropower and 65 complementary — biomass, small hydropower (SHPs), wind and solar energy plants —, of which 72 are wholly owned by the Company and four (the hydropower plants of Itá, Machadinho and Estreito, and the cogeneration biomass Ibitiúva Bioenergética plant) are commercially operated through partnerships with other companies.

Summary of financial and operational indicators

Consolidado (Valores em R$ milhões)

Receita Operacional Líquida (ROL)
3T23: 2.514
3T22: 2.747
Variação: -8,5%
9M23: 8.037
9M22: 8.805
Variação: -8,7%

Resultado do Serviço (EBIT)
3T23: 1.475
3T22: 1.216
Variação: 21,3%
9M23: 4.790
9M22: 4.314
Variação: 11,0%

Ebitda¹
3T23: 1.707
3T22: 1.469
Variação: 16,2%
9M23: 5.480
9M22: 5.076
Variação: 8,0%

Ebitda ajustado²
3T23: 1.768
3T22: 1.432
Variação: 23,5%
9M23: 5.629
9M22: 5.205
Variação: 8,1%

Ebitda ajustado por efeitos de transmissão³
3T23: 1.729
3T22: 1.661
Variação: 4,1%
9M23: 5.529
9M22: 5.038
Variação: 9,7%

Ebitda / ROL – (%)¹
3T23: 67,9
3T22: 53,5
Variação: 14,4 p.p
9M23: 68,2
9M22: 57,6
Variação: 10,6 p.p

Ebitda / ROL – (%) ajustada²
3T23: 70,3
3T22: 52,1
Variação: 18,2 p.p
9M23: 70,0
9M22: 59,1
Variação: 10,9 p.p

Lucro Líquido
3T23: 867
3T22: 734
Variação: 18,1%
9M23: 2.482
9M22: 1.774
Variação: 39,9%

Lucro Líquido ajustado
3T23: 928
3T22: 709
Variação: 30,9%
9M23: 2.615
9M22: 1.860
Variação: 40,6%

Retorno Sobre Patrimônio (ROE) Ajustado ⁴
3T23: 37,0
3T22: 33,2
Variação: 3,8 p.p
9M23: 37,0
9M22: 33,2
Variação: 3,8 p.p

Retorno Sobre Capital Investido (ROIC) Ajustado ⁵
3T23: 21,0
3T22: 22,0
Variação: -1,0 p.p
9M23: 21,0
9M22: 22,0
Variação: -1,0 p.p

Dívida Líquida ⁶
3T23: 15.335
3T22: 14.980
Variação: 2,4%
9M23: 15.335
9M22: 14.980
Variação: 2,4%

Produção Bruta de Energia Elétrica (MW médios)⁷
3T23: 5.597
3T22: 6.111
Variação: -8,4%
9M23: 4.408
9M22: 4.653
Variação: -5.3%

Energia Vendida (MW médios)⁸
3T23: 3.883
3T22: 4.285
Variação: -9,4%
9M23: 4.138
9M22: 4.288
Variação: -3,5%

Preço Líquido Médio de Venda(R$/MWh)⁹
3T23: 223,97
3T22: 224,41
Variação: -0,2%
9M23: 225,49
9M22: 223,76
Variação: 0,8%

Número de Empregados – Total
3T23: 1.137
3T22: 1.253
Variação: -9,3%
9M23: 1.137
9M22: 1.253
Variação: -9,3%

Número de Empregados – EBE
3T23: 1.116
3T22: 1.185
Variação: -5,8%
9M23: 1.116
9M22: 1.185
Variação: -5,8%

Número de Empregados – em Projetos em Construção
3T23: 21
3T22: 68
Variação: -69,1%
9M23: 21
9M22: 68
Variação: -69,1%

¹ Ebitda: lucro líquido + imposto de renda e contribuição social + resultado financeiro + depreciação e amortização.
² Ebitda ajustado: lucro líquido + imposto de renda e contribuição social + resultado financeiro + depreciação e amortização + impaiment + não recorrentes.
³ Ebitda ajustado, deduzindo os efeitos do IFRS do segmento de transmissão.
⁴ ROE: lucro líquido ajustado dos últimos 4 trimestres / patrimônio líquido.
⁵ ROIC: taxa efetiva x EBIT ajustado / capital investido (capital investido: dívida – caixa e eq. caixa – depósitos vinculados ao servido da dívida + PL)
⁶ Valor ajustado, líquido de ganhos de operação de hedge.
⁷ Produção total bruta das usinas operadas pela ENGIE Brasil Energia.
⁸ Desconsidera venda por regime de cotas (UHEs Jaguara e Miranda)
⁹ Líquido de impostos sobre a venda e operações de trading.