Investor’s day eneva This Tuesday 8, it will be more than a meeting to discuss the outlook for 2022. Close to reaching the promised target for 2023, an installed capacity of 4.7 GW, the company has decided that it is time to afford a longer-term horizon. for investors regarding the company and a new strategic positioning.
“At the time, many people in the market thought that Eneva was an opportunistically positioned company. But it’s not that. We have a long-term project and our goal is to be the first value-creating integrated energy company,” said pedro zinnerpresident of the company, in an interview with REVIEW IN.
Sign up for EXAME IN and find out today what will be in the news tomorrow. Receive news alerts and links to videos from the bi-weekly talk show via email.
The 2023 commitment was given to investors in 2017 when the company made a stock offering on B3 which marked its re-listing and its capacity was 2.1 GW. At the time, it was valued at 4.4 billion reais on the stock market and today its market value is close to 17 billion reais. Meanwhile, the company, reborn from a debt restructuring, has sharply reduced the cost of money: the cost of capital has fallen from IPCA plus 9% to IPCA plus 3.8%. Ebitda, in turn, increased from R$1.4 billion to R$2 billion, over a cumulative period of 12 months.
Achieving leadership in value creation will require moving away from new investments in coal power – which will dilute its share in the mix over time – and increasing its positioning in renewables. The company, which acquired the Focus Energy for R$920 million in December, is aware of the need for a transition of its matrix, even if coal was the origin of everything, with the thermoelectric plants built by Eike Batista, when the company was MPX.
“Coal was not the cause of our debate now. On the contrary, it was coal that allowed us to get here and achieve our goals of transformation and renewal, ”emphasizes the executive. Since when have you tried to acquire AES Tietethe company has already demonstrated its desire to position itself in clean energies and to diversify the mix of its capacities.
In announcing this new positioning, Eneva will not yet publish a capacity target for 2030, its next horizon, nor a percentage of its capacity composition. One of the pillars of its strategy is discipline in capital allocation. After the purchase of Focus, the country’s largest solar energy company, the company’s capacity will reach 3.7 GW, taking into account the Futura 1 park, which should be ready by the middle of this year. “Everything indicates that we will achieve what we promised for 2023 on schedule,” he said.
The sum of the acquisition of Focus (75% paid in cash and the rest in shares) and the investments necessary for the commissioning of the park will require this year 2.8 billion reais from Eneva – entirely dedicated to renewable energies, so. To get an idea of what this means, just look at the total invested by the company between 2017 and 2021 totaling BRL 5.3 billion. And we know that the development of the other two solar parks designed by Focus could require investments of around R$10 billion.
In a few months, Eneva’s plan is to provide more details for the period up to 2025, according to Zinner. “Setting a very specific target now for capacity sources by 2030 might not be effective. Everything will depend on price competitiveness, ”explains the executive, who recalls that if gas is at an excellent time, renewables depreciate to the detriment of investments. To the extent possible, the executive reinforces the issue of investment discipline.
Eneva will formally commit to reducing its emissions by 24% by 2030 and to being “net zero” in carbon by 2050. in technologies focused on reducing emissions.
Although he did not provide further details, Zinner insists that the future lies in the use of gas, in addition to renewable sources. Planning to 2030 even considers blue, coal-derived and more controversial, and green hydrogen. And on the pace of expansion, he warns: “I can’t speak yet, but we’ll keep the same momentum from 2017 until now.”
When it comes to gas, Eneva insists that one of the pillars of the new positioning is inclusive supply. The projects in this matrix are intended for use and thermal production near onshore producing fields, that is to say on land.
In 2022, the Azulão-Jaguatirica and Parnaíba projects should start generating cash for the company and help with future investments. The first entered commercial operation in the fourth quarter of last year and the second should start at the end of June. “This is how we recycle our capital, to increase business value generation,” Zinner concludes. The company ended September with net debt of R$5.9 billion, approximately 3x 12-month EBITDA, with R$2 billion in cash.
On a scale of 1 to 5, what is your reading experience on the exam?
1 being the lowest rating and 5 the highest rating.
Your feedback is very important to build an even better EXAME.