Highlights:

  • Adjusted net income in 2022 was R$ 2,764 million, 16.7% more than 2021.Excluding the renegotiation of hydrological risk in 2021, the increase was 109.6%.
  • Adjusted Ebitda reported in 2022 was R$ 6,941 million, a decline of 3.8% (R$ 276 million) compared with 2021. The adjusted Ebitda margin was 58.3% in 2022, a growth of 0.8 p.p. in relation to 2021. The adjusted Ebitda in 2022, net of the effects of renegotiation of hydrological risk finalized in 2021, posted growth of 23.4%.
  • Net operational revenue of the Company reached R$ 11,907 million in the year 2022, 5.1% lower than the amount recorded in 2021.
  • The Board of Directors approved the proposal for distribution of complementary dividends worth R$ 1,455.2 million (R$ 1.7834/share).Total shareholder remuneration relative to 2022 will reach R$ 2,705.9 million (3.3163/share), equivalent to 100% of the adjusted net income for 2022.
  • ENGIE Brasil Energia was awarded a "B" classification, the third best score, in the first report on its carbon management to the CDP (formerly Carbon Disclosure Project), published in December..

ENGIE Brasil Energia (EGIE3) reported an adjusted net income in 2022 of R$ 2.8 billion, 16.7% (R$ 395 million) more than reported for 2021. Adjusted Ebitda was 3.8% lower than the preceding year, reaching R$ 6.9 billion in 2022. Excluding the booking of the renegotiated amount for hydrological risk in 2021, the increase in net income was 109.6% and the increase in Ebitda was 23.4%.

"In 2022, of particular importance was the favorable hydrological scenario, allowing us to synchronize hydropower generation, which is the battery of our system, with the intermittence of wind and solar sources - this undergoing accelerated expansion in capacity in Brazil due to the subsidies still in use in these alternative sources of energy. Although good hydrology leads to lower energy settlement prices in the short-term, we are very well positioned in the management of our portfolio contracting, this translating into stability of our results," points out Eduardo Sattamini, Chief Executive and Investor Relations Officer at ENGIE Brasil Energia.

The Company's net operating revenue exceeded R$ 11.9 billion for the fiscal year, 5.1% lower than reported for 2021, the result of reduced revenue from transmission line construction due to the advance in work on the projects, and a decrease in revenue from trading operations. These effects were attenuated by the increase of 4.3% in energy sales volume (37,932 GWh, 4,330 average MW), excluding trading operations, and also due to higher average selling prices at R$ 222.85/MWh in 2022, 11.5% greater year-on-year.

The increase was driven by monetary restatement of existing contracts, by reduced reimbursements enshrined in the contracts conducted through the regulatory contracting environment and by the acquisition of the Floresta and Paracatu photovoltaic complexes, the latter assets with energy contracted at prices higher than the average for the remainder of the Company's portfolio. These effects were partially offset by the reduction in prices on the short-term market, again a reflection of improved hydrology.

Investments

In 2022, ENGIE invested R$ 3.1 billion, involving the acquisition of renewable generation projects, construction of new transmission and generation projects, and maintenance, revitalization and modernization of the generator park.

In the generation segment, the implementation of the Santo Agostinho Wind Complex in Rio Grande do Norte, was concluded in late 2022 already at an advanced stage and is scheduled to gradually enter into operation as from 1Q23. Growth in renewables was further accelerated with ENGIE Brasil Energia's announcement of a start on the installation of a further two projects in Brazil. The first is the Serra do Assuruá Wind Complex, located in Gentio do Ouro (BA) with 846 MW of installed capacity at an investment of approximately R$ 6 billion. The second is the Assú Sol Photovoltaic Complex in Assú (RN), this with 752 MW of installed capacity and an investment of R$ 3.3 billion, situated in the area adjacent to the photovoltaic plants the Company is already operating in the municipality.

"These two new operations represent the largest wind and photovoltaic projects, respectively, ever to be implemented by the ENGIE Group in Brazil. Over the short-term, considering Santo Agostinho, Serra do Assuruá and Assu Sol, we will surpass 2 GW of installed renewable capacity in the process of implementation, a reflection of the development of our competences and the total trust in the capacity of our teams to execute the projects with excellence, combining technical qualification with good socio-environmental practices", adds Sattamini.

In northern Brazil, the Novo Estado Transmission System is in the final phase of construction before entering full operation in 1Q23, with the total energization of the 1.8 thousand kilometers of power lines and the operation of substations in the states of Tocantins and Pará.

In 1Q23, a start will also be made on the implementation of the Gavião Real project, integrated into the Novo Estado system, consisting of the expanded Itacaiúnas Substation, with the installation of two 230/138kV transformers and a new 138 kV switchyard for attending the power distribution network in the state of Pará. The final cutoff date for the start of transmission line operations is March 30, 2026, but ENGIE expects to anticipate this period in less than 24 months, as well as reducing the capex Aneel envisaged by approximately 30%.

Operational Performance

In the Generation segment, including all scheduled and forced stoppages, the plant operated by ENGIE Brasil Energia recorded an uptime ratio of 92.5%, being 95.2% at the hydropower plants, 88.4% of the plants fired by complementary sources and 48.3% in the case of the Pampa Sul Thermoelectric Plant.

The global generation of the plants operated by the Company in 2022 was 43,912 GWh (5,013 average MW), resulting in a production 28.3% greater than 2021, when the total generated was 34,217 GWh (3,906 average MW), and in the light of its sale in October 2021, excluding generation from the Jorge Lacerda Thermoelectric Plant.

In Transmission, the Gralha Azul and Novo Estado systems also presented strong operational performance in 2022 with a total uptime ratio of 99.97%. The assets have gone into commercial operation in a gradual manner over the course of 2021 and 2022, with their integration to be concluded in early 2023, when the remainder of the transmission lines and substations go into operation.

A component of the ISE for the 18th consecutive year

In 2022, for the 18th consecutive year, ENGIE Brasil Energia's shares were included in B3 - Brasil, Bolsa, Balcão S.A.'s Corporate Sustainability Indexes (ISE). The Company was allocated a weighting of 2.3% of the portfolio and listed in 10th position overall among 70 components, and the representative of the electric power sector with the greatest share of the Index.

ISE also includes in its composition the CDP (formerly the Carbon Disclosure Project) performance score and incorporating information relating to the analysis of the climate change dimension. In 2022, ENGIE Brasil Energia, obtained a "B" classification - the third best score - in its first carbon management report to the CDP published in December.

The Company was also selected to comprise B3's new Carbon Efficient Index (ICO2) for the third year. The purpose behind the Index is to drive discussions on climate change in Brazil. The companies included in the ICO2 are participants of the IBrX 100 and are an example of their commitment to the environment and transparency in emissions as well as the vision as to how they are preparing for a low carbon economy.

"To be part of the ICO2 shows our proactivity and transparency on the theme are on the right track. In 2023, we expect to achieve an important landmark in our low carbon trajectory by becoming a generator 100% renewable. We intend to continue the commitment of involving suppliers and society as a whole on this journey", Sattamini concludes.

With the signature of the disposal agreement for Pampa Sul Thermoelectric Plant, in September 2022, the Company took an important step towards exiting coal operations in Brazil. As from the conclusion of the transaction, expected for the first half of 2023, ENGIE will guarantee a generator park which is 100% renewable in Brazil and playing an important role in the group's global strategy.

Since it took the decision to decarbonize its portfolio in Brazil in 2016, the Company has already allocated more than R$ 20 billion in investments to expanding diversified sources of clean energy and in the transmission infrastructure.

Dividends and interest on shareholders' equity

The Board of Directors has approved the distribution of complementary dividends of R$ 1.455 billion. Total payout for 2022 will be equivalent to 100% of adjusted net income for 2022.

Share performance.

For the full fiscal year 2022, ENGIE Brasil Energia's shares posted an appreciation of 6.1%, while the Electric Energy Stock Index (IEEX) and the Ibovespa recorded an appreciation of 3.1% and 4.7%, respectively. For the full year 2022, the daily average trading volume was R$ 66.8 million, a year-on-year increase of 10.9%.

About ENGIE

Our group is a global reference in low-carbon energy and services. Together with our 101,500 employees, our customers, partners and stakeholders, we are committed to accelerate the transition towards a carbon-neutral world, through reduced energy consumption and more environmentally-friendly solutions. Inspired by our purpose ("raison d'être"), we reconcile economic performance with a positive impact on people and the planet, building on our key businesses (gas, renewable energy, services) to offer competitive solutions to our customers.

In Brazil, ENGIE, leader in renewable power generation in the country, operates in generation, commercialization and transmission of electric power, gas transport and energy solutions. With 3,500 employees, ENGIE has an installed capacity of approximately 10 GW, of which 100%* is from renewable sources.

*Considering the selling of the Thermal Power Plant Pampa Sul, signed on September 15, which closing is subject to fulfillment of certain conditions precedent in the agreement.

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ENGIE Brasil Energia SA published this content on 16 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 February 2023 09:05:02 UTC.