July 21, 2024

Taesa (TAEE11) Dividends Fall, But Stocks Rise With Dividend

3 min read
Taesa (TAEE11) Dividends Fall, But Stocks Rise With Dividend
Taesa (TAEE11) Dividends Fall, But Stocks Rise With Dividend

Taissa (Tai 11) reported a consolidated net income of R$423.1 million in the fourth quarter of 2021 (Q4 of 21), which is a decrease of 43.6% compared to the same period in 2020. In the year, the electricity company generated R$2.213 billion, down of 2.2%. compared to 2020.

According to Taesa, the result shows a decrease in investments in projects under construction with a negative impact on the company’s infrastructure implementation margin; increase in net financial expenses; and lower IGP-M recorded between the comparative periods (0.02% in Q421 vs. 11.24% in Q4 2020), which negatively impacted income from cash restatements and equity in earnings.

Besides the result, the company’s board of directors approved a proposal to allocate a profit for 2021, which includes a dividend distribution of R$ 800.3 million, equivalent to R$ 2.32 for each unitswhich will remain subject to the decision of the shareholders meeting.

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If approved, the distribute profits 80.9% of net income – and 99.1%, excluding 47 CPC effects – and a total distribution of R$5.20 lonliness Referring to fiscal year 2021. On December 29, the company paid R$523 million in dividends and interest on equity, totaling R$1.6 billion in dividends paid in the year.

Around 12:00 noon, shares of Taesa (TAEE11) were up 1.9%, at R$38.07.

Analysts highlight Taisa’s earnings

For Itaú BBA, balance sheet numbers were considered positive, with frequent Ebitda showing strong growth, to R$447 million and within expectations. In addition, the company proposed a distribution of R$1.8 billion for 2021, “well above expectations,” with R$5.20 per share and a return of 14%.

According to Credit Suisse, Taesa delivered organizational results in line with expectations (better than consensus), benefiting from Janauba’s revenue and startup adjustments, despite the higher manageable expenses. The bottom line has missed estimates due to poor financial results and poor capital income.

However, IFRS results remained strong with IGP-M rising and the company reported a dividend of R$800.3 million (6.2% dividend yield), above expectations, as of May 10. Furthermore, Credit Suisse does not see these earnings as sustainable in the long run (especially with higher interest rates).

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More data from Taesa’s balance sheet (TAEE11)

Total IFRS net revenue was R$717 million in Q421, down 38.7% from the same period a year earlier.

The company explains that the performance was “due to a lower cash correction of the contractual asset and infrastructure implementation, which was partially offset by higher operating and maintenance revenue and contract asset reward.”

Regulatory net revenue was R$550.9 million between October and December of last year, an increase of 43.8% year-on-year.

EBITDA grew 55.8% compared to the same period in 2020, totaling R$447 million.

Ebitda’s margin was 81.1% in the fourth quarter of 2021, an increase of 6.2 percentage points compared to the same quarter of 2020.

Total regulatory equity income in the fourth quarter of this year was R$26.0 million, 18.8% lower than that recorded in the fourth quarter of 2020.

According to Taesa, the performance is mainly explained by higher fiscal expenditures related to the first bond issuance by Ivaí, as a result of higher IPCA, but partly offset by the inflation adjustment for the 2021-2022 RAP cycle.

Total net financial expenses in accordance with International Financial Reporting Standards (IFRS) amounted to R$223.5 million in the fourth quarter of 21, an increase of 15.9% over that recorded in the fourth quarter of 2020.

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Taisa records debt growth

Regarding net debt, the company stated that there was an increase of 29.1% to R$8.025 billion.

Thus, the leverage ratio, measured in relation to net debt and adjusted Ebitda, was 4.2 times, an increase of 0.4 times compared to the fourth quarter of 2020.

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