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- Load Performance: 7.3% and 6.3% growth in the concession area, driven by residential consumption.
- EBITDA: Decreased by 7.1%, reaching BRL8 billion and EUR6.7 million.
- Profit: Dropped by 11%, totaling BRL1.2 billion.
- Debt: BRL2.8 billion with a leverage of 2.01.
- CapEx: Increased by 12%, reaching BRL1.4 billion and EUR2.4 million.
- Market Growth: 6.1% overall, with residential and commercial areas growing by 11%.
- Delinquency Rate: 1.8%, with an average ticket increase of 13% over the last year.
- Distribution Losses: Increased due to low-tension class growth and fraud stimulation.
- Generation: Decrease in generation by 11% due to wind turbine availability and restrictions.
- Leverage: BRL26.2 million with a leverage ratio of 2.01.
- Debt Issuance: BRL1.6 billion in debentures with a competitive rate of 0.19.
- Average Debt Cost: Reduced from 11.1% to 10.9%.
- CapEx Plan: Expected to close the year with BRL5.9 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CPFL Energia SA (BSP:CPFE3) reported a strong performance in residential and commercial consumption, with growth rates of 7.3% and 6.3% respectively.
- The company celebrated significant milestones, including the 5-year anniversary of its IPO and 20 years since listing on the stock exchange.
- CPFL Energia SA received important recognitions for corporate governance and customer focus, highlighting its operational quality.
- The company demonstrated resilience in recovering from the impacts of floods in Rio Grande do Sul, with operations largely restored.
- CPFL Energia SA showed a positive outlook for market growth, particularly in the industrial sector, with faster-than-expected recovery post-crisis.
- EBITDA dropped by 7.1%, with a corresponding 11% decline in profit, attributed to various impacts including those from 2023 and 2024.
- The company faced significant operational disruptions due to floods, affecting 100% of its concession area and disconnecting 350,000 customers.
- There was an increase in delinquency rates to 1.8%, posing challenges in bill payments and recovery of power cuts.
- Distribution losses increased across all concession areas, driven by higher low-tension class growth and increased fraud stimulation.
- The company experienced a decrease in wind generation by 11% due to restrictions and low wind performance, impacting overall generation results.
A: The process is currently with ANEEL, and the auction process is delayed. The conclusion and the opening of the auction have not yet occurred. Considering a public bidding process of 45 days, the expectation is that this process will be delayed, but it's difficult to specify when it will take place. - Gustavo Estrella, CEO
Q: What are the impacts of the floods in Rio Grande do Sul on CPFL's operations?
A: The floods had a significant impact, with BRL112 million in losses across three businesses. Distribution was heavily affected, with 350,000 customers disconnected at the peak. The company is still in the rebuilding phase, especially in the distribution area. - Gustavo Estrella, CEO
Q: How is CPFL addressing the increase in delinquency and power cuts?
A: Delinquency has increased to 1.8% due to higher average ticket prices and storm impacts. CPFL is working to accelerate its Power Cup program to recover from delinquency and aims to reduce it gradually. - Gustavo Estrella, CEO
Q: Can you elaborate on the company's financial performance and challenges?
A: The EBITDA dropped by 7.1%, and profit decreased by 11%, mainly due to the impacts of the floods and other non-recurrent effects. The company is focusing on recovery and rebuilding efforts, particularly in Rio Grande do Sul. - Gustavo Estrella, CEO
Q: What is the outlook for CPFL's market growth and recovery?
A: The market showed a growth of 6.1%, driven by residential and commercial areas. The industrial sector is recovering faster than expected, with a positive performance in June. The company is optimistic about continued growth and recovery. - Gustavo Estrella, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.