June 27, 2022

Taesa (TAEE11) posted 18.3% lower profit in the third quarter; Ebitda rises 32%

Sao Paulo – Taissa (Tai 11) reported a consolidated IFRS net income of R$536.889 million in the third quarter, a performance that is 18.3% lower than that recorded in the same period in 2020.

According to the company, the decrease in profit is due to a decrease in IGP-M, in the comparison of periods, which negatively affected the income from the cash correction and equity equation.

In addition, the company reported an increase of R$111.1 million in net financial expenses as a result of the increase in IPCA and CDI and a decrease in average cash volume between the comparative periods.

In contrast to these effects, the company reports a 34.7% increase in operating and maintenance revenue, due to inflation-adjusted for the new RAP cycle (2021-2022); And the increase in the infrastructure implementation margin and contractual asset reward, as a result of inflation recorded above expectations in the quarter, which positively affected the balance of these contractual assets. These effects also contributed to the expansion of earnings before interest, taxes, depreciation, and amortization (Ebitda).

Taesa’s balance sheet income

On a consolidated basis under IFRS, net revenue decreased 0.2% to R$942.3 million, due to an increase in operation and maintenance, contract asset rewards and infrastructure implementation, but was offset by lower revenue from the cash correction.

Total costs, expenses, depreciation and amortization amounted to R$234.5 million, down 18.5% year-on-year.

In contrast, the regulatory net revenue increased by 29.8%, to reach R$497.5 million, which is explained by the inflation adjustment for the new resettlement plan cycle (2021-2022) and the entry into operation of Janeuba. “These effects compensated for the loss of some privileges in the resettlement plan,” he added.

Beginning and indebtedness of Taissa

Taesa’s regulatory Ebitda total reached R$421.0 million, year-over-year increase of 32.6% and EBITDA margin
84.6% (+1.8 percentage points).

On September 30, 2021, the company’s total debt ended at R$6.827 billion, a sequential increase of 2.4%.

The company’s cash was R$977.7 million, an increase of 34.1% compared to Q221, resulting in a net debt of R$5.850 billion (-1.5% in the quarter).

Thus, the ratio between Taesa’s net debt and earnings before interest, tax, depreciation and amortization (EBITDA), which relatively incorporates jointly controlled companies and associated companies, was 4.3 times versus 4.6 times in Q221.

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