THE Auren (AURE3), which generates energy for the controlling partners Votorantim and CPP Investments, which has undergone extensive restructuring, is working to capture the benefits of integrating sources of generation in financial results while pursuing acquisitions to expand its asset portfolio, executives said.
The company announced on Friday a pro forma net profit of 17.8 million reais in the first quarter, a drop of 86.9% in the annual comparison.
The profit before fees, taxesadjusted pro forma depreciation and amortization (EBITDA) fell 4.4% to 340 million reais.
The financial performance was prepared by the group on a pro forma basis to reflect the effects of Auren’s corporate reorganization, which started to incorporate the energy generation and commercialization assets of the former Votorantim Energia and Cesp.
To Reuters, the company’s CFO, Mario Bertoncini, explained that the worsening in Ebitda stems from a reduction in energy prices after the improvement in hydrology, which impacted the market marking of the trading portfolio and the balance sheet balancing strategy. energetic.
In the case of net income, Bertoncini pointed out two non-recurring effects that hampered the numbers: a reversal of provisions carried out by the former Cesp in the first quarter of 2021, which helped profits in that period, and a higher expense this year due to corporate restructuring costs.
For the next few months, the expectation is that Auren will begin to reap more benefits from the combination of hydroelectric and wind sources, mainly helping to mitigate the effects of hydrological risk (GSF) in the dry period, said generator executives.
“An asset like wind generation has a seasonality that is very complementary to hydroelectricity, we have almost a ‘natural hedge’ for this GSF effect,” Fabio Zanfelice, CEO of Auren, told Reuters.
According to him, this complementarity of sources will also be fundamental for the company’s performance in the commercialization of energy to smaller consumers, who demand products and services with more flexible clauses.
“We need to build this over time, our entire generation portfolio, well in advance, for when the (free) market is fully open.”
New Projects and Acquisitions
Auren has been advancing with the construction of wind projects in Piauí and is “very active” in the search for acquisition opportunities, the executives highlighted.
The generator currently has approximately 3.0 gigawatts (GW) of operational installed capacity, in addition to 400 MW under construction and a portfolio of solar and wind projects and a PCH under development.
Zanfelice noted that after the completion of the Ventos do Piauí complex, scheduled for November, the company has a window into its next project, a solar complex expected in 2024.
“We are in the design phase of the projects, and now throughout 2022 we begin to assess the moment of contracting and implementation”, he said.
Bertoncini highlighted that Auren is evaluating acquisition opportunities and indicated that he sees the moment as propitious for a move by the company.
“We are preparing for growth, the company is now well capitalized, we have 3.3 billion reais in cash, with a low leverage of 2.5 times,” he said.
“The macroeconomic moment, in Brazil and around the world, is a little more unstable, with rising capital costs, (this) may even contribute and help us to better allocate capital. It is at these times that those who are prepared can reap the best opportunities.”
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