ISA CTEEP earns R$ 474.5 million in the third quarter (+23%) and sets a new record for investments in reinforcements and improvements in the period

• Financial contribution of R$ 307.1 million to the revamping of the installed park represents the highest investment made in a single quarter since 2020
• During the period, the company was consolidated as the big winner of Auction No. 01/2023, with three lots awarded that will promote the flow of renewable energy.
  

São Paulo, October 30. 2023 – ISA CTEEP (B3: TRPL3; TRPL4), leader in the energy transmission sector in the country, closed the third quarter of 2023 with regulatory net income of R$ 474.5 million, representing 22.7% increase as compared to the same period of 2022. In the period from January to September, the amount reached R$ 1 billion, up 81.7% as compared to the nine months of last year.

Net revenue amounted to R$ 1 billion in the last quarter, with 18.8% increase when compared to the same period in 2022. Over the nine months, the volume reached R$ 2.9 billion, representing a 21.5% increase compared to the previous year.

Regulatory EBITDA amounted to R$ 876.6 million in the last quarter, 17.9% higher than the same period of previous year. From January to September, the amount reached R$ 2.3 billion, up 25.8%.

Among the main factors that positively impacted the company's quarterly results are the start of operations of 67 reinforcement and improvement projects in the last 12 months, 13 of which in the last quarter alone, and the energization of three greenfield projects (awarded at auction) – Biguaçu, Itaúnas and Triângulo Mineiro – between the periods. In addition, a positive effect was the full recovery of the revenue from the RBSE's financial component, whose payment flow was reprofiled in 2021, and the RAP adjustment by the Broad National Consumer Price Index (IPCA) for the period.

Investments

In the last quarter, the company invested R$ 528.4 million, 12.2% higher as compared to the same period in 2022, with R$ 307.1 million in revamping the installed park (reinforcements and improvements) and R$ 221.2 million in projects won at auctions (greenfield). Over the nine months, the total amount invested was R$ 1.45 billion, flat compared to the same period of the previous year.

The investment in reinforcements and improvements marks a new record for contributions made, with the replacement of 1,407 pieces of equipment in 9M23, compared to 546 replaced in the same period last year, which represents a growth of 257.7%. It is expected that 1,500 items will be replaced by the end of 2023.

Between 2019 and 2022, investment in reinforcement and improvement projects showed a compound annual growth rate (CAGR) of 83.7%. Currently, the Company has approximately R$ 5 billion in investments in projects already authorized by the National Electric Energy Agency and which will be executed between 2023 and 2027.

Investments in projects under construction (greenfield) totaled R$ 221.2 million in the last quarter, a slight drop compared to the same period in 2022, as there were more projects in the final stages of construction that year and, therefore, more funds were invested.

“The company has reached a new level in terms of investments and revenue, based on our commitment to discipline in the allocation of resources and the balance between growth and the generation of value for shareholders, maintaining the current dividend practice of a minimum payout of 75%. The results and cash generation recorded materialize our commitment to delivering sustainable value and reinforce the good prospects with the energization of greenfield projects and reinforcements and improvements," says Carisa Cristal, chief financial and investor relations officer at ISA CTEEP.

Highlights: focus on energy transition

In August, the company became aware of its qualification for Lot 1 under the terms offered by it under Transmission Auction No. 01/2023 and confirmed its participation to the National Electric Energy Agency (Aneel), consolidating itself as the big winner of the competition, with a total of three auctioned lots: 1 (Serra Dourada Project), 7 (Itatiaia Project) and 9 (Água Vermelha Project), which add up to a total investment of R$ 5.6 billion and RAP of R$ 510 million for the three projects, which collaborate with the energy transition in the country by promoting the flow of renewable energy from the Northeast to the Southeast.

In the same month, Triângulo Mineiro Project entered commercial operation, 20 months ahead of the schedule established by Aneel. The investment made was approximately R$ 480 million and the RAP of the project is R$ 42 million (2023/2024 tariff cycle).

"With the total investment in the new lots, ISA CTEEP will materialize around 35% of the investments planned by the regulator in this auction, which was the second largest in the history of the Brazilian transmission sector. This result strengthens the company's commitment to society and to generating shareholder value thanks to our discipline and our ability to implement major projects to ensure corporate longevity. Considering investments in other greenfield projects and reinforcements and improvements, a total of R$ 15.6 billion will be invested over the next five years," says Rui Chammas, CEO of ISA CTEEP.

In addition to the three lots we won at the last auction, the company's portfolio also includes four other projects in the construction phase. When completed, the seven projects will enable the receipt of an additional R$ 972 million in RAP.

Sustainability

For the second year in a row, the company is listed in the FTSE4Good portfolio, one of the most important sustainability indexes in the world. Measured by Financial Times Stock Exchange Russell, a division of the London Stock Exchange, FTSE4Good uses more than 300 indicators to evaluate the performance of companies committed to environmental, social and corporate governance (ESG) practices. In Brazil, only 49 companies are in the portfolio and ISA CTEEP is one of them.

About ISA CTEEP

With a staff comprising over 1,600 employees, ISA CTEEP operates in 18 States, operating a transmission network, responsible for the flowing of 30% of all electricity consumed in the country, and 94% of the State of São Paulo. Its electrical system comprises more than 31,000 km of circuits (about 28,000 in operation and 3,400 under construction), including owned and jointly controlled assets, and 137 owned substations (129 in operation and eight under construction) with voltage up to 550 kV. Its controlling shareholder is the Colombian company ISA, holder of 35.82% of the total capital.


Information for the press

ISA CTEEP – RPMA Comunicação
Kelly Queiroz – (11) 94216-3176
Sara Saar – (11) 97566-2433
[email protected]