CTEEP Companhia de Transmissão de Energia Eletrica Paulista S A : ISA CTEEP sets a new investment record in the first half of the year and has a 21% increase in adjusted EBITDA

ISA CTEEP sets a new investment record in the first half of the year and has a 21% increase in adjusted EBITDA

• Investments reach the mark of R$ 635 million, an increase of 13% compared to the first half of 2020

• 76.5% increase in investments in reinforcements and improvements with more than 40 projects delivered, which contributes to the country's energy supply, especially at a time of water crisis
  

São Paulo, July 29, 2021 - The results of ISA CTEEP, the largest private power transmission company in the country, for the second quarter of 2021, show the escalation of investments - R$ 343.3 million, a new record for the company - showing growth of 21% compared to the second quarter of 2020, which drive the modernization, safety and expansion of the national transmission system. Of the total, R$ 265 million were allocated to new projects (greenfield) and R$ 78.3 million to reinforcements and improvements.

INVESTMENTS (R$ million)

In the first half of 2021, the company invested R$ 635 million, an increase of 13% over the same period last year. Of these, R$ 498 million were allocated to new projects (greenfield). The investment forecast for the year is over R$ 1 billion. In the last 6 years, the Company has won 14 lots in transmission auctions carried out by the National Electric Energy Agency (ANEEL) and has already energized 4 of these projects (Itapura Bauru, Itaquerê, Tibagi and Aguapeí).

In reinforcements and improvements, the company contributed around R$ 137.4 million in the period with the implementation of 45 projects, versus R$ 77.8 million in the first half of 2020, an increase of 76.5%. The Company already has authorizations from ANEEL to carry out more than R$ 1.8 billion in investments on this front over the next four years.

'We have the potential to double the level of investments in reinforcements and improvements, to be delivered gradually. In a context of water crisis, in which society demands energy security and robustness of the system, these projects become even more important and essential to guarantee the country's supply', says Rui Chammas, CEO of ISA CTEEP.

Financial results

The quarter's result was positively affected, mainly, by the conclusion of the acquisition of Piratininga - Bandeirantes Transmissora de Energia (PBTE). Adjusted EBITDA continues to rise when compared to the same period in 2020. In the second quarter, it had an increase of 18% - R$ 739 million - while in the first half, EBITDA increased by 21%, totaling R$ 1.58 billion.

Adjusted EBITDA (R$ million)

In the second quarter, the company's net revenue totaled more than R$ 792 million. In the semester, net revenue was R$ 1.6 billion, a 26.3% reduction compared to 2020 due to the application of the Periodic Tariff Review (RTP) of renewed contracts and compensation of the financial component (RBSE) in 2020. The net income recorded between April and June was above R$ 248 million and R$ 556 million in the year.

According to the executive officer of finance and investor relations at ISA CTEEP, Carisa Cristal, 'the rescheduling of payment of the Basic Network Existing System (RBSE) will be recognized as of July with an immediate reduction in the company's Allowed Annual Revenue (RAP), which will be offset from 2023, positively impacting RAP and increasing generation long-term cash flow'.

Operational performance

ISA CTEEP is compensated for the availability of its assets and, in recent years, it has become a reference company in the sector in terms of performance. The Company performs constant and meticulous management of its operating indicators, among which the Energy Not Supplied Index ('IENS') stands out, obtained by the ratio between the total energy not supplied during all occurrences in the year and the total demand of energy supplied by the company.

In the second quarter of the year, the Company's Energy Not Supplied Index (IENS) was highlighted and totaled 0.000244% versus 0.000681% recorded in the same period of 2020. As a reference, for the National Interconnected System (SIN), the IENS totaled 0.0024% in May 2021.

Sustainability

The company raised R$ 672.5 million in green bonds (10^th issue of debentures) in the first half of the year. Also, with the commitment to increasingly act in the generation of sustainable value to the business, in May, ISA CTEEP joined the Green Bond Transparency Platform (GBTP), developed by the Inter-American Development Bank (IDB), for the dissemination of standardized information about the use of proceeds, impacts, methodologies and standards used in the issue of green bonds.

Press information
RPMA Comunicação
Pedro Henrique Santos - (11) 96513-0069
[e-mail]
Kelly Queiroz - (11) 94216-3176
[e-mail]

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